Pakistan's economic turmoil under Shehbaz Sharif's second term as Prime Minister of Pakistan

[Kianig89]

Ogra making a summary for recommendation to increase petrol by Rs.80, we know these fools have lost their mind but these kinds of decision will lead to a hasty end, why ñot the down on fuel subsidy offered to Elite and govt officials

 

[BouncerGuy]

Business leaders in Karachi give PM food for thought

As Prime Minister Shehbaz Sharif sat down with the business community to find ways to uplift the economy through exports, his resolve was met with apprehensions from industry leaders who said it was “almost impossible” to do business under the current circumstances, particularly with high energy costs and inconsistent government policies.

Posing tough questions during an hour-long meeting at the CM House, Karachi’s business community appreciated the PM’s “determination”, but advised him to focus on bringing about political stability to “turn around” the economy.

Appreciating the newly-installed government for moving forward with the International Monetary Fund (IMF) that brought some consistency to the money market and contained inflation, they suggested PM Shehbaz initiate trade talks with India and “shake hands” with imprisoned PTI founding chairman Imran Khan — apparently for political stability.

PM Shehbaz, who had arrived in the port city on his maiden visit after his election, said the meeting was an attempt to listen to the “brilliant minds of business, absorb what they say and put it into action” for a comprehensive economic growth roadmap.

“You all are great minds of business… Today we need you to take a step forward and bring this rental business to an end. Let’s focus on genuine industrial and agricultural growth and double the exports in the next five years. It’s difficult but not impossible. It’s an article of faith for me. I would listen to you and make a plan to put that into action.”

In a veiled reference to the booming economy of Bangladesh, he recalled ‘East Pakistan’, which was “once considered” a burden on the country, but had made tremendous strides in industrial growth.

“I was quite young when … we were told that it’s a burden on our shoulders… Today you all know where that ‘burden’ has reached [in terms of economic growth]. And we feel ashamed when we look towards them,” said PM Shehbaz.

Trade ties with India

After the PM’s brief speech, the house was opened for a question and answer session, where business leaders voiced their appreciation for the government’s recent moves, but made more demands.

They also shared proposals for economic policies to achieve desired results.

There was a sense of concern among the business leaders over the political instability in the country for which they even advised the PM to take initiative as the head of the government. “You have made a few handshakes after taking the charge that has produced good results and progress on the IMF deal is one of them,” said Arif Habib, the chief of Arif Habib Group – a capital market giant.

“I suggest you do a few more handshakes. One of them is regarding trade with India, which would greatly benefit our economy. Secondly, you should also [patch up] with a resident of Adiala Jail (a reference to jailed PTI leader Imran Khan). Try to fix things at that level as well and I believe that you can do it.”

The PM avoided responding directly to the questions aimed at political stability, but claimed to have noted down his proposals for economic growth and assured him that he would soon invite businessmen from all across the country to Islamabad and sit with them “till all the issues aren’t resolved”.

Then came a presentation from Zubair Motiwala, a prominent industrialist and chief of the Trade Development Authority of Pakistan (TDAP), who heads the Karachi businessmen’s body called Businessmen Group (BMG).

In his presentation, he questioned the government’s ambitious plan amid the existing business regime. “The prime minister is keen to support the industry by doubling exports and reducing business costs but it seems impossible in the current situation,” said a point of his presentation shared by the Karachi Chamber of Commerce and Industry (KCCI).

“Due to the increasing cost of doing business with these gas and electricity prices, our competitors would soon take us over and get Pakistan’s export orders. It is surprising that we want to increase exports and local manufacturing, but we are increasing energy prices by including cross-subsidies, which has resulted in a gas tariff of Rs2,600 per unit for industrial heating and Rs3,100 per unit for captive power.”

‘Fair gas price’

He referred to the gas prices six months ago when they were charged at Rs1,150 and Rs1,350 per unit respectively and asked “if any business can survive with such an increase in the current international market situation”.

“The industry is willing to pay 100 per cent of the gas price without any subsidy. We don’t want any subsidy. We just want the industry to get a fair gas price,” said Mr Motiwala. In his presentation, he pointed out that the “unnecessary capacity” of power plants had put a burden on Pakistan in the form of capacity charges, resulting in a situation where surplus electricity was neither sold nor provided to industries at lower rates.

“This unnecessary capacity is also increasing the circular debt issue in the power sector. Therefore, it is necessary to introduce a scheme to reduce the flat tariff for industrial consumers, which will increase electricity consumption and also help reduce the circular debt issue,” he added.

Earlier, the premier was received by Sindh Governor Kamran Tessori, CM Murad Ali Shah, Sindh ministers and senior officials at Karachi airport. The PM also went to the Quaid-i-Azam’s mausoleum to pay his respects.

SOURCE: DAWN

 

[FearlessRoar]

IMF executive board to meet April 29 on $1.1 bln Pakistan disbursement: report

The executive board of the International Monetary Fund (IMF) will meet on April 29 to discuss the approval of $1.1 billion funding for Pakistan, the fund said on Wednesday.

The funding is the second and last tranche of a $3 billion standby arrangement with the IMF, which it secured last summer to avert a sovereign default and which runs out this month.

The South Asian nation is seeking a new long-term, larger IMF loan. Pakistan’s Finance Minister, Muhammad Aurangzeb, has said Islamabad could secure a staff-level agreement on the new program by early July.

Islamabad says it is seeking a loan over at least three years to help macroeconomic stability and execute a long-due and painful structural reforms, though Aurangzeb has declined to detail what seize of programme the country seeks.

Pakistan is yet to make a formal request, but the Fund and the government are already in discussions.

If secured, it would be the 24th IMF bailout for Pakistan.

The $350 billion economy faces a chronic balance of payment crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year – three-time more than its central bank’s foreign currency reserves.

Pakistan’s finance ministry expect the economy to grow by 2.6% in the current fiscal year ending June, while average inflation is projected to stand at 24%, down from 29.2% in fiscal year 2023/2024. Inflation soared to a record high of 38% last May.

IMF executive board to meet April 29 on $1.1 bln Pakistan disbursement: report

The executive board of the International Monetary Fund (IMF) will meet on April 29 to discuss the approval of $1.1 billion funding for Pakistan, the fund

arynews.tv

 

[BouncerGuy]

PM seeks ‘cheap power’ plan for industries

Prime Minister Shehbaz Sharif on Thursday accorded formal approval to reform the National Transmission and Dispatch Company (NTDC) and formed a “special cell” to ensure their implementation.

In a meeting on the reforms in the electricity sector, the premier also directed the authorities to chalk up a comprehensive plan for the provision of power-efficient fans to the needy at affordable prices, according to a statement issued by the PM’s Office.

The meeting was informed in detail about issues and reforms and recommendations were also presented regarding the power distribution companies, their losses, privatisation, and outsourcing.

It was also informed about tariff rationalisation and power tariffs for industries and domestic consumers.

PM Shehbaz also asked the authorities to prepare a comprehensive plan to supply electricity to the industrial sector at a low cost to improve the performance and efficiency of industries. He said that industries should be provided electricity at lower tariffs to ensure economic progress and increase exports.

In a separate event, PM Shehbaz expressed the government’s commitment to empowering the youth with modern knowledge and vocational training to make them a valuable asset for the country.

The prime minister also met a delegation led by APM Terminals CEO Keith Svendsen. During the meeting, Mr Svendsen expressed interest in the first green transhipment terminal of Pakistan in Karachi.

SOURCE: DAWN

 

[BouncerGuy]

PM to attend World Economic Forum, Gaza meetings in Riyadh

As top Arab and European diplomats are expected to begin arriving in the Saudi capital this weekend for an economic summit and meetings on Gaza, Prime Minister Shehbaz Sharif is scheduled to participate in a special session on “Global Collaboration, Growth and Energy for Development”.

The special meeting of the World Economic Forum (WEF) on “Global Collaboration, Growth and Energy for Development” in Riyadh is scheduled for April 28 and 29.

The prime minister, accompanied by Foreign Minister Ishaq Dar, would travel to Saudi Arabia at the invitation of Crown Prince Mohammed bin Salman and WEF Founder and Executive Chairman Klaus Schwab, Foreign Office spokesperson Mumtaz Zahra Baloch told the media on Friday.

According to FO spokesperson, the high-level participation in the WEF would provide an opportunity to highlight Pakistan’s priorities in global health architecture, inclusive growth, regional collaboration and balance between growth and energy consumption, besides interacting with the participating world leaders and heads of international organisations.

Also, a Gaza-focused session in Riyadh on Monday is set to feature newly appointed Palestinian PM Mohammed Mustafa, Egyptian PM Mostafa Madbouly and Sigrid Kaag, the United Nations aid coordinator for the Gaza Strip.

Besides the Turkish, Jordanian and Egyptian foreign ministers, French Foreign Minister Stephane Sejourne and German Foreign Minister Annalena Baerbock are among the foreign diplomats travelling to Riyadh during the summit for talks on Gaza.

The prime minister would also attend the 15th session of the Islamic Summit Conference under the slogan Enhancing Unity and Solidarity through Dialogue for Sustainable Development, on May 4 and 5 in Gambia, after Foreign Minister Ishaq Dar’s participation in the preparatory meeting of the Council of Foreign Ministers on May 2-3.

The FO spokesperson said the PM would express Pakistan’s grave concern on genocide in Gaza, advocate for their right to self-determination, the imperative of solidarity, besides deliberating on Islamophobia, terrorism, and the challenges faced by the world, particularly the Muslim world. She added that the prime minister would also hold bilateral meetings with the Muslim world leaders.

SOURCE: DAWN

 

[FearlessRoar]

Govt forms committee for revival of Pakistan Steel Mills

According to the official notification, the committee headed by the Federal Secretary of Industry and Production include the Additional Secretary of Industry and Production, Senior Member of the Board of Revenue Sindh, Joint Secretary of Finance, CEO of PIDC, and representatives of the Worker Union of Steel Mills and two independent board members of the steel mills, including the Director Technical and Corporate Secretary.

The committee will review the plan to shut down the steel mills and auction off its plants and machinery.

The committee will also explore options to revive Pakistan steel mills with the cooperation of the private sector.

It is pertinent to mention here that the then-caretaker government removed Pakistan Steel Mills from its privatization list of state-owned entities.

The government issued a new list of state-owned entities (SOEs) that was handed over to the private sector under its privatization program.

Overall, 26 SoE will be privatized under the ongoing government program including four institutions each in the financial and real estate sectors.

In a statement the then Caretaker Minister for Privatisation Fawad Hasan Fawad had said that the Pakistan Steel Mills (PSM) is a dead horse that cannot be privatised.

“The amount of Rs2,542 billion was spent on the state-owned entities from 2018 to 2019, whereas, the financial losses to the institutions in 2020 were equivalent to 7% of GDP. The financial losses of the state-owned entities have further increased now” he added.

Govt forms committee for revival of Pakistan Steel Mills

KARACHI: The Federal Ministry of Industry and Production on Saturday constituted an 8-member committee to revive the Pakistan Steel Mills, ARY News

arynews.tv

 

[BouncerGuy]

Farmers’ outcry compels PM Shehbaz to hike wheat target

Prime Minister Shehbaz Sharif has ordered an increase in the wheat procurement target from 1.4 million tonnes to 1.8 million tonnes after protests by farmers over delays in the grain’s buying process.

PM Shehbaz has also directed the Pakistan Agricultural Storage and Services Corporation Limited (Passco) — the national grain procurement and storage agency — to ensure swift buying to help growers.

According to a statement issued by the Prime Minister’s Office (PMO), Mr Sharif gave the directives on Saturday before leaving for Saudi Arabia to participate in the World Economic Forum’s meeting.

The official press release called the decision “a big relief” for farmers, adding that it was taken following complaints from wheat growers.

“The prime minister has taken the initiative keeping in view the problems confronting the growers regarding the sale of wheat,” it said.

Besides increasing the wheat procurement target, the prime minister also directed Passco to ensure transparency and facilitate the growers on a priority basis.

The delay

A bumper crop output has been projected for this season and wheat threshing has already begun in most parts of Punjab, the largest wheat producing province in the county.

However, farmers complained that Passco was not purchasing wheat and flour mills were “exploiting them” by offering rates lower than the government-mandated support price for their crops.

The Sindh and Balochistan governments have set the support price at Rs4,000 per 40kg, while the Khyber Pakhtunkhwa and Punjab governments Rs3,900 per 40kg.

The farmers lament that their production costs have more than doubled in the last one year but they were being forced to sell their produce at the last year’s rates and even lower than that.

The issue also resulted in heated discussions in the National and Punjab Assembly this week.

The National Assembly was told that official procurement has slowed as the caretaker government imported wheat despite having a bumper crop.

National Food Security Minister Rana Tanveer admitted the decision was “wrong”, and the prime minister has already ordered an inquiry into it.

He added that the ministry would write letters to provincial governments to procure maximum wheat from the farmers.

Opposition member Sheikh Waqas Akram warned the government that farmers would be on the streets soon and “the rulers would not be able to face the brunt”.

In the Punjab Assembly, Food Minister Bilal Yasin reasoned that the moisture level in wheat was quite high, up to 18 per cent, because of which his department could not buy the produce as after drying, its weight would reduce, causing a loss to the government.

Punjab Assembly Speaker Malik Muhammad Ahmad Khan also conceded that even though the minimum support price was Rs3,900 per 40kg, the crop was being sold at Rs3,200 in the open market because growers were not sure whether the food department would buy their produce.

Farmers’ protests

The growers have staged protests in several areas and demanded the government increase the support price.

While addressing a press conference earlier this month, the Kisan Board Pakistan president, Sardar Zafar Hussain, urged the government to procure at least five million tonnes of wheat in the current season and raise the support to Rs5,000 per 40kg.

He alleged that the government was “deliberately delaying” the procurement campaign because of which the prices in the open market were declining.

KP govt to buy ‘local’ wheat

In a related development, the provincial food minister, Zahir Shah Toru, announced that the KP government would buy 600,000 tonnes of wheat at the rate of Rs3,900 per 40 kg.

Mr Toru made the announcement on Saturday during a visit to a wheat godown in Nowshera district. The minister was briefed on the wheat procurement process and the measures taken for its safe storage in warehouses.

He said the provincial cabinet has decided to purchase wheat from local farmers at the same rate as the Punjab government.

The decision will not only result in the procurement of quality wheat but yield significant financial benefits to the province’s growers, he said.

Regarding the welfare of KP’s farmers, Mr Toru assured that their interests would be “safeguarded at all costs”.

The minister emphasised his government’s commitment toward transparency, highlighting ongoing efforts to digitise the food department’s administrative affairs to ensure accountability.

He said a five-member committee, comprising officials from the agriculture department, administration and NAB, has been constituted to oversee procurement, transportation and quality control process and prevent malpractice.

SOURCE: DAWN

 

[FearlessRoar]

Undocumented economy has been biggest challenge: Aurangzeb​

Speaking at the World Economic Forum special meeting at Riyadh on Sunday, finance minister said that around 10 trillion tax circulating in the market. “We are considering over moving to digital currency,” Aurangzeb further said.

“We have 9.4 trillion annual revenues and half of our economy has been undocumented,” Finance Minister said.

He said that the government providing cash assistance to entitled women as income support. Beneficiary women want to get the cash by digital vault, he added.

IMF Managing Director Kristalina Georgieva speaking at the World Economic Forum special meeting said some countries including Pakistan facing economic hardships.

The IMF chief said some countries are doing well, but others are “falling behind,” without providing further clarification.

IMF chief said that Covid-19 pandemic hit hard to the economies of low-income countries. “The global economic suffered 3.3 trillion dollars loss during the pandemic Kristalina Georgieva said.

Undocumented economy has been biggest challenge: Aurangzeb

RIYADH: Pakistan's Finance Minister Muhammad Aurangzeb has said that the undocumented economy has been the biggest challenge for the country, ARY News

arynews.tv

 

[FearlessRoar]

IDB vows to expedite work on different projects in Pakistan​

The prime minister thanked the IDB for its $1 billion worth of investment in different uplift projects in Pakistan during his previous tenure in office. The president of IDB called on the prime minister on the sidelines of the special meeting of the World Economic Forum (WEF), PM Office Media Wing said in a press release.

The meeting was attended by Minister for Foreign Affairs Ishaq Dar, Minister for Finance and Revenues Muhammad Aurangzeb, Minister for Information and Broadcasting Attaullah Tarar, Minister for Petroleum Dr Musadik Malik, Minister for Commerce Jam Kamal Khan and Minister for Power Awais Ahmed Khan Leghari.

During the meeting, progress on different projects in Pakistan was reviewed and both sides discussed ways to explore further avenues for cooperation. The prime minister also lauded the IDP’s assistance in the rehabilitation of flood-affected people and commended the personal cooperation and leadership role of Dr Al Jasser.

He observed that IDB’s beneficial partnership with Pakistan was not only providing job opportunities and assisting in reconstruction efforts but also supporting the government’s endeavours for the achievement of objectives of sustainable progress.

The prime minister informed that for fast-tracking foreign investment, removing all concerns of foreign investors and provision of one window operation, the Special Investment Facilitation Council (SIFC) was fully functional.

The IDB president said that Pakistan was a founding and the most important member of the Bank. He observed that the country was blessed with abundant natural and water resources and its huge manpower could be fully utilized. Dr Al Jasser also prayed for the progress and prosperity of Pakistan.

IDB vows to expedite work on different projects in Pakistan

Prime Minister Shehbaz Sharif and President of Islamic Development Bank (IDB) Dr. Muhammad Sulaiman Al Jasser on Sunday agreed to the early completion of

arynews.tv

 

[FearlessRoar]

Many news of investments are coming, but I can't see any improvement yet.

 

[FearlessRoar]

PM discusses new loan programme with IMF chief on WEF sidelines​

Prime Minister Shehbaz Sharif on Sunday met Managing Director (MD) of the International Monetary Fund (IMF) Kristalina Georgieva on the sidelines of the World Economic Forum (WEF) special meeting in Riyadh, a statement from the Prime Minister’s Office (PMO) said.

This was the first meeting between the prime minister and the IMF chief since his re-election. They last met in Paris in June 2023 on the margins of the Summit for New Global Financial Pact.

The premier thanked Georgieva for her support to Pakistan in securing the $3 billion Standby Arrangement (SBA) from IMF last year that was now nearing its completion. The IMF executive board is expected to meet tomorrow to decide on the final tranche of USD 1.1 billion under SBA.

The IMF MD appreciated the leadership of PM Shehbaz for timely securing SBA last year.

The prime minister informed the IMF chief that his government was fully committed to put Pakistan’s economy back on track. He had directed his financial team, led by Finance Minister Muhammad Aurangzeb, to carry out structural reforms, ensure strict fiscal discipline and pursue prudent policies that would ensure macro-economic stability and sustained economic growth.

Both sides also discussed Pakistan entering into another IMF programme to ensure that the gains made in the past year are consolidated and its economic growth trajectory remains positive.

IMF MD shared her institution’s perspective on the ongoing programme with Pakistan, including the review process. The premier also extended a cordial invitation to the IMF chief to visit Pakistan at her convenience.

Finance Minister Muhammad Aurangzeb, earlier, said that Islamabad could secure a staff-level agreement on the new program by early July.

Islamabad says it is seeking a loan over at least three years to help achieve macroeconomic stability and execute long-overdue and painful structural reforms, though Aurangzeb has declined to detail what size of the programme the country seeks.

The country was yet to make a formal request, but the fund and the government are already in discussions. If secured, it would be Pakistan's 24th IMF bailout.

Pakistan faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year - three-time more than its central bank's foreign currency reserves.

The country's finance ministry expects the economy to grow by 2.6% in the fiscal year ending in June, while average inflation for the year is projected to stand at 24%, down from 29.2% the previous fiscal year.

PM calls upon bridging gap in health sector

Earlier in the day, PM Shehbaz called for bridging the widening gap between the Global South and the Global North while expressing his views during a session of the WEF on global health.

The prime minister stated that the Covid-19 pandemic had exposed significant gaps between the Global North and Global South regarding health facilities provision and vaccine distribution.

He highlighted that the issue of climate change had also fundamentally altered the landscape. Pakistan, he asserted, bore no responsibility for global emissions; however, in 2022, it experienced severe climate-induced floods, causing extensive damage to infrastructure and buildings. Consequently, he added, the country had to allocate billions of rupees to rehabilitate the affected people.

PM Shehbaz questioned whether a developing country like Pakistan could afford such costly loans and stressed that resources were required for providing health facilities.

Sharing his personal experiences, the premier said that treatment for fatal diseases like cancer was too costly for the poor population of Pakistan.

He said that as a chief minister of Punjab, he had provided about 130 million inhabitants of the province with the best medical treatment initiatives like screening and treatment facilities for Hepatitis in the remotest and backward areas of the province where the poor people had been in dire need of basic facilities like education and health.

Meeting with IDB president

During his meeting with the president of the Islamic Development Bank (IDB) earlier in the day, the premier was assured that the bank would complete its pending development projects in Pakistan at the earliest.

The meeting also reviewed progress on ongoing projects and deliberated upon opportunities for future cooperation between Pakistan and the IDB.

PM Shehbaz thanked the bank for its investments in Pakistan and appreciated its assistance in rehabilitation after the 2022 floods.

He said the IDB’s fruitful partnership with Pakistan is instrumental in helping to achieve the government's sustainable development goals along with providing support for reconstruction and employment.

The premier highlighted that the SIFC is fully functional to channel foreign investment in the country, addressing all concerns of foreign investors and providing a one-window operation.

The IDB president said Pakistan is an important member of the bank and is blessed with rich natural and water resources. He stated that Pakistan's large manpower is an asset to be utilized optimally.

PM discusses new loan programme with IMF chief on WEF sidelines | The Express Tribune

Shehbaz informs Kristalina his govt was fully committed to put Pakistan’s economy back on track

tribune.com.pk

 

[The Bald Eagle]

PM Shehbaz secures more investment assurances from Riyadh

Over a hectic working weekend, Prime Minister Shehbaz Sharif on Sunday secured assurances on investment from Saudi Arabia and won plaudits from his hosts, who dubbed him ‘a man of action’.

The premier, who was in Riyadh to attend a special meeting of the World Economic Forum (WEF), also met Crown Prince Mohammed Bin Salman, Minister for Investment Khalid Al-Falih, Minister for Finance Mohammad Al Jadaan and Minister for Industry Bandar bin Ibrahim Alkhourayef in separate engagements, on Sunday.

At a gala dinner hosted by the Saudi crown prince, the PM thanked MBS for sending a high-powered delegation to Pakistan led by Foreign Minister Faisal bin Farhan bin Abdullah.

To continue discussions, the prime minister said that he had brought a high-powered delegation to Riyadh, including key ministers responsible for investment, so that follow-up meetings could take place between the relevant officials.

Earlier, Saudi Minister for Investment Khalid Al-Falih praised the PM as being ‘a man of action’, saying: “We are all aware of your performance and speed of work… Your mission is our mission.”

Meanwhile, Finance Minister Mohammad Al Jadaan said that a delegation of Saudi investors would soon visit Pakistan.

Pakistan was a priority for their investment and Saudi Arabia would continue to fully cooperate in the fields of agriculture, information technology and energy, he said.

The prime minister also met the Saudi minister for industry, who expressed keen interest in collaborating with Pakistan in the fields of agriculture, mining, information technology and other areas.

The minister said he was in contact with the private Saudi companies regarding investment in Pakistan and the representatives of these companies would soon visit Pakistan.

Source: Dawn News

 

[FearlessRoar]

SBP holds key policy rate at 22%​

In line with market expectations, Pakistan's central bank has left its key policy rate unchanged at a record high of 22% for the seventh consecutive time in the past 10 months, ahead of the IMF executive board's final approval for the release of the last tranche of $1.1 billion on Monday.

The country has also initiated negotiations to secure a new IMF loan package of $6-8 billion for three years after the completion of the current one in April 2024.

Additionally, the crisis in the Middle East has the potential to cause a spike in energy prices in global markets. This may lead to a resurgence of imported inflation in the country, nullifying the recent efforts to decelerate inflation through maintaining a tight monetary policy for over three years now.

It is anticipated that the inflation rate will decrease to around 17% for April 2024 from 20.7% in the previous month of March, having peaked at 38% in May 2023. Consequently, the real interest rate turned positive in March by 1.3 percentage points, with further improvement expected in April.

"The MPC (monetary policy committee) observed that the level of inflation remains high. Simultaneously, global commodity prices seem to have bottomed out amidst resilient global growth. Recent geopolitical events have also introduced uncertainty regarding their outlook. Furthermore, upcoming budgetary measures may impact the near-term inflation outlook,” State Bank of Pakistan (SBP) stated in its monetary policy statement

Since its last meeting held in mid-March 2024, the MPC noted key developments. First, data for the first half of FY24 suggests that economic activity is recovering at a moderate pace, led by a strong rebound in the agriculture sector.

Second, the current account recorded a significant surplus in March 2024, which helped to stabilise the SBP’s foreign exchange reserves despite substantial debt repayments and weak financial inflows.

Third, inflation expectations of consumers increased slightly in April 2024, while those for businesses declined. Lastly, leading central banks, particularly in advanced economies, have adopted a cautious policy stance after noticing some slowdown in the pace of disinflation in recent months.

Incoming data continues to support the MPC’s earlier expectation of a moderate recovery in this fiscal year, with real GDP growth projected to remain in the range of 2 to 3%.

The agriculture sector remains the key driver, with robust growth of 6.8% in the first half of FY24, supported by a significant increase in rice, cotton, maize, and wheat harvests, according to the latest official estimates.

In the industrial sector, large-scale manufacturing reported a 0.5% decline in July-February FY24 compared to a 4% contraction recorded in the same period last year.

Regarding the services sector, the committee noted that growth in the first half of the year was slightly lower than expected, reflecting the impact of subdued demand.

Based on relatively improved capacity utilisation and business sentiments, as well as a low base effect from last year, the MPC expects value addition from the manufacturing and services sectors to recover in the coming months.

SBP holds key policy rate at 22% | The Express Tribune

Key rate was last raised in June to fight persistent inflationary pressures

tribune.com.pk

 

[BouncerGuy]

IMF okays release of final $1.1bn SBA tranche

The Executive Board of the International Monetary Fund (IMF) on Monday approved the immediate disbursement of approximately $1.1 billion to Pakistan.

The board met in Washington on Monday and completed the second review under the Stand-By Arrangement (SBA) for Pakistan, allowing for bringing total disbursements under the arrangement to about $3 billion.

All board members favoured releasing the last installment except India, which abstained.

“The completion of the second and final review reflects the authorities’ stronger policy efforts under the SBA, which have supported the stabilisation of the economy and the return of modest growth,” the IMF said in a statement.

“To move Pakistan from stabilization to a strong and sustainable recovery the authorities need to continue their policy and reform efforts, including strict adherence to fiscal targets,” the statement added.

The Fund also reminded Pakistan that while doing so, it also needs to protect the vulnerable from the possible impact of such reforms.

The IMF also emphasised the need to adhere to “a market-determined exchange rate to absorb external shocks; and broadening of structural reforms to support stronger and more inclusive growth.

Following the Executive Board’s discussion, Deputy Managing Director Antoinette Sayeh made the following statement:

“Pakistan’s determined policy efforts under the 2023 Stand‑By Arrangement (SBA) have brought progress in restoring economic stability. Moderate growth has returned; external pressures have eased; and while still elevated, inflation has begun to decline. Given the significant challenges ahead, Pakistan should capitalize on this hard‑won stability, persevering—beyond the current arrangement—with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth. Continued external support will also be critical.

“The authorities’ revenue performance, as well as federal spending restraint, helped achieve a sizeable primary surplus in the first half of FY2024, in line with program targets. Continued revenue mobilization efforts and spending discipline at both federal and provincial levels remain critical to ensure that the primary surplus target is achieved. Beyond FY2024, continued fiscal sustainability and additional space for social and development spending depend on further mobilizing revenues, especially from non‑filers and undertaxed sectors, and on improving public financial management.”

“The authorities have stabilized the energy sector’s circular debt over the course of the SBA through timely tariff adjustments and enhanced collection efforts. While these actions need to continue, it is also critical that the authorities undertake cost‑side reforms to address the sector’s underlying issues and viability.

“The State Bank of Pakistan’s tight monetary policy stance remains appropriate until inflation returns to more moderate levels. Further improvements in the functioning of the foreign exchange (FX) market, together with a market‑determined exchange rate, will help buffer external shocks and attract financing, thereby supporting competitiveness and growth. The significant rebuilding of FX reserves under the SBA needs to continue. Moreover, stronger action to address undercapitalized financial institutions and, more broadly, vigilance over the financial sector are needed to ensure financial stability.

“Achieving strong, long‑term inclusive growth and creating jobs require accelerating structural reforms and continued protection of the most vulnerable through an adequately‑financed Benazir Income Support Program. Priorities include advancing the reform of state-owned enterprises (SOEs), including to ensure that all SOEs fall under the new policy framework; strengthening governance and anti‑corruption institutions; and continuing to build climate resilience.”

SOURCE: DAWN

 

[BouncerGuy]

Astonishing figures. more than 26 BILLIONS USD in debt from CHINA. Doomed.

 

[The Bald Eagle]

Uber said on Tuesday that it had made the decision to cease operating its ride-hailing app in Pakistan.

“We’ve made the decision to cease operating the Uber app in Pakistan,” a spokesperson for Uber told Dawn.com.

“Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan and earning opportunities for drivers,” the spokesperson added.

In 2019, Uber had acquired its rival Careem for $3.1 billion. The two companies had said they would continue to operate their respective regional services and independent brands.

In October 2022, Uber had ceased operations in Karachi, Multan, Faisalabad, Peshawar and Islamabad. It had decided to operate in the five cities through Careem and through the Uber app in Lahore.

In an email sent to users in Lahore today, Uber said it had made the “difficult decision to no longer offer the Uber app services in Lahore as of April 30”.

“Ride-hailing services will continue to be offered through our subsidiary brand Careem and you will have the option to sign up and request a trip on Careem to have a seamless experience,” the email read.

“In light of this, Careem Rides may reach out to you to check in and sign up. Please fill the form provided below by May 3, 2024 if you do not want your details to be shared with Careem.

“If you currently hold Uber Cash balance in your Uber Wallet, we will be communicating with you in due course on the process for reclaiming your Uber Cash balance,” it said as users were also offered a 50 per cent discount on five rides with Careem.

Users in Lahore who tried to access the app were met with the message: “Uber no longer in Lahore”. They were also told they could use Careem to avail 50 per cent off on five rides with code LHR50.

Source: Dawn News

 

[FearlessRoar]

PM hails govt efforts as inflation plummets to two-year low of 17.3%​

Prime Minister Shehbaz Sharif hailed the recent downturn in inflation as a boon for the populace, deeming it a tangible sign of economic progress, as per a statement released by the Prime Minister’s Office on Thursday.

According to the Pakistan Bureau of Statistics (PBS), the pace of price increases decelerated to 17.3% in April compared to the same period the previous year, marking the lowest rate in two years and nearing the point from which prices initially surged.

Moreover, the decline in inflation surpassed projections from the Ministry of Finance, which had estimated a range of 18.5 to 19.5 per cent. This marked the fourth consecutive month of downward trajectory in inflation rates.

Prime Minister Shehbaz attributed these developments to the collective efforts spanning his previous 16-month-long tenure and continuing under the caretaker government.

He was quoted in the statement, saying, “Reduction of inflation is the first goal, with the grace of Allah, people will get more relief in economic activities.”

The recent reduction in petrol prices will also give relief to the people, he said, adding that the prices of oil have come down in the global market. Shehbaz directed provincial governments to ensure reduction in petroleum prices and enforce official food item prices.

“By the grace of Allah, by continuing in this direction, the lives of the people will improve further,” he maintained, adding that his government is leaving no stone unturned in trying to get maximum relief to the people at the earliest.

Notably, food inflation decelerated in both urban and rural areas, with urban centers experiencing a notable slowdown to 11.3 per cent and rural areas dipping below the single-digit mark to 9.7 per cent, according to the PBS.

However, core inflation, excluding energy and food items, marginally increased to 13.1 per cent in urban areas but dropped below 20 per cent in rural regions. This represents an approximate 6 per cent reduction compared to policy rates.

Despite these developments, double-digit price hikes persisted across all commodity groups except for alcoholic beverages, tobacco, and perishable foods. Non-perishable goods saw a single-digit increase at 9.7 per cent, while perishable goods inflation remained below 7 per cent.

The decline in wheat product prices by 10.5 per cent and wheat by 9.7 per cent in April was attributed to sales below the minimum wheat support price of Rs3,900 per 40 kg. However, the decision to allow wheat imports by the caretaker government was criticised for benefiting urban consumers while disadvantaging farmers.

Until the end of May, the private sector imported 3.5 million metric tons of wheat amounting to $1.1 billion.

Despite the overall decrease, the average inflation rate remained slightly below 26 per cent, surpassing the annual inflation target of 21 per cent. The IMF, in response to the slowing inflation rate projected at 12.7 per cent for the next fiscal year, continues to advocate for high interest rates in Pakistan.

PM hails govt efforts as inflation plummets to two-year low of 17.3% | The Express Tribune

Shehbaz directs provincial govts to ensure reduction in petroleum prices and enforce official food item prices

tribune.com.pk

 

[FearlessRoar]

Pakistan among recipients as ADB, donors pledge $5b replenishment​

Donors and the Asian Development Bank (ADB) have agreed to a replenishment of $5 billion for ADB’s Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8, with Pakistan emerging as a recipient of the grants.

The commitment was made during ADB’s 57th annual meeting held in Tbilisi, Georgia, said a press release on Friday.

The ADF is ADB’s largest source of grants for operations in its poorest and most vulnerable developing member countries and is replenished every four years.

ADF 14—marking the 13th replenishment since the fund’s establishment—will support grant operations during the 2025-2028 cycle.

The statement said that the ADF 14 replenishment is about 22% higher than the $4.1 billion available in ADF 13, and will provide eligible ADB members with the largest-ever volume of ADF grants. TASF 8 will provide grants that help prepare projects, build capacity, and provide technical or policy advice.

“Grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and take urgent action to combat the climate crisis,” said ADB President Masatsugu Asakawa.

“This remarkable replenishment demonstrates ADF donors’ continued partnership with ADB to address the pressing development challenges of those most in need.”

ADF 14 prioritises dedicated assistance to small island developing states that are particularly vulnerable—especially to climate change—and to countries in fragile and conflict-affected situations.

ADF 14 will continue to play a critical role in supporting climate change adaptation and disaster risk reduction. It will enable expanded assistance for regional cooperation and regional public goods, and for transformative gender action. It will also provide agile assistance in the event of emergencies through its crisis response window.

The press release said that more than $2.5 billion, or 51%, of the replenishment will be funded by contributions from donors including two new countries: Armenia and Georgia.

ADB will significantly increase its net income transfers to ADF, from just under $1.2 billion in ADF 13 to almost $1.6 billion in ADF 14, an increase of 35%.

The remaining $0.9 billion will comprise transfers from earlier ADF cycles and income from liquidity investments. In parallel, ADB intends to provide $16.7 billion in concessional loans, which have very low-interest rates over long repayment periods, during the ADF 14 period. Overall, ADB will be able to provide more than $8 in grants and concessional loans for every $1 in donor contributions.

The following donors announced contributions to ADF 14: Armenia; Australia; Austria; Canada; Denmark; Finland; France; Georgia; Germany; Hong Kong, China; India; Indonesia; Ireland; Italy; Japan; Luxembourg; Malaysia; Netherlands; New Zealand; Norway; People’s Republic of China; Philippines; Portugal; Republic of Korea; Spain; Sweden; Switzerland; Taipei, China; Turkiye; United Kingdom; and United States.

The following developing member countries are the primary recipients of grants from ADF 14: Federated States of Micronesia; Kiribati; Kyrgyz Republic; Maldives; Marshall Islands; Nauru; Samoa; Solomon Islands; Tajikistan; Tonga; Tuvalu; and Vanuatu.

Grants will also be available to support the people of Afghanistan and Myanmar and for transformative projects in Bangladesh; Bhutan; Cambodia; Cook Islands; Fiji; Lao People’s Democratic Republic; Mongolia; Nepal; Niue; Pakistan; Palau; Papua New Guinea; Sri Lanka; Timor-Leste; and Uzbekistan.

Pakistan among recipients as ADB, donors pledge $5b replenishment | The Express Tribune

Grants more important than ever as our most vulnerable members seek to reverse recent development setbacks, says ADB president

tribune.com.pk

 

[FearlessRoar]

Pakistan, Saudi Arabia reaffirm resolve to further enhance economic ties

Deputy Prime Minister (PM) and Foreign Minister Ishaq Dar and Saudi Arabia counterpart Prince Faisal bin Farhan Al Saud reaffirmed the resolve to further enhance economic cooperation between the two countries.

The two leaders held a bilateral meeting with the Saudi counterpart Prince Faisal bin Farhan Al Saud on the sidelines of the 15th OIC Islamic Summit Conference, in Banjul, The Gambia.

Noting the importance of the long-standing strategic and economic relations between Pakistan and Saudi Arabia, the Deputy Prime Minister and the Saudi Foreign Minister reaffirmed the resolve further to enhance economic ties and Saudi investments in Pakistan.

The Deputy Prime Minister lauded the “Vision 2030”, which aimed at socio-economic transformation of the Kingdom in the 21st century.

He stated that the recently held visit of the Saudi Foreign Minister to Pakistan, who was leading a high-powered delegation, represented a new momentum in economic collaboration between Pakistan and the Kingdom, according to a press release.

Deputy PM Dar and the Saudi Foreign Minister expressed deep concern over the recent developments in the Middle East and called for an immediate ceasefire in Gaza.

They also noted the important role of the Organization of Islamic Cooperation (OIC) on issues concerning the Muslim Ummah including the situations in Palestine and Kashmir.

The meeting came as a high-level trade delegation from Saudi Arabia is scheduled to arrive in Pakistan on Sunday (tomorrow) to explore investment opportunities in different sectors as well as to forge strong bonds with local entrepreneurs.

According to Petroleum Minister Musadiq Malik, the 50-member delegation includes representatives of about 35 companies in the Kingdom representing various economic sectors.

The minister said 76 Pakistani business companies have been shortlisted in this regard, adding that cooperation between Islamabad and Riyadh will be increased at the government and private levels.

The ministry had selected a large number of Pakistani companies in the respective sectors whose officials would have business-to-business meetings with their Saudi counterparts, and would hopefully enter into business and investment deals, he added.

Pakistan, Saudi Arabia reaffirm resolve to further enhance economic ties

ISLAMABAD: Deputy Prime Minister (PM) and Foreign Minister Ishaq Dar and Saudi Arabia counterpart Prince Faisal bin Farhan Al Saud reaffirmed the resolve

arynews.tv

 

[FearlessRoar]

If I am not wrong, Saudi Arabia can stop all these investments if Pakistan goes against USA policies.

 

[hassan918]

PM on wheat import scandal: Fix the responsibility, furnish a report by Monday​

ISLAMABAD (Dunya News/Web Desk) – Prime Minister Shehbaz Sharif on Saturday ordered a comprehensive and transparent probe into the caretaker government’s decision concerning wheat import scandal – a move that has triggered a full-blown crisis in the country as farmers are now forced to sell their produce at cheaper rates.

It was the caretaker government which allowed the grain imports notwithstanding the fact that the imminent wheat crop harvest and ample stocks available in Pakistan, especially in Punjab – the country’s food basket.

As Cabinet Secretary Kamran Ali Agha – who is heading the second inquiry committee to investigate scandal – reached the PM Office, sources say Shehbaz directed him to fix the responsibility in unambiguous terms and furnish the report by Monday.

In this regard, the prime minister ordered the federal secretary to use the available record and documents while also presenting recommendations on the subject.

On the other hand, the sources say a committee meeting is in the session despite Saturday being a weekly holiday, which will go through a report filed by a panel formed earlier to ascertain the facts.

The move coincides with a PML-N gathering to be held at the party’s Model Town headquarters in Lahore to define a strategy to deal with the prevailing wheat procurement crisis.

PM on wheat import scandal: Fix the responsibility, furnish a report by Monday

Orders cabinet secretary to submit findings in unambiguous terms

dunyanews.tv

 

[BouncerGuy]

Won’t tolerate corruption in FBR: Shehbaz

Prime Minister Shehbaz Sharif, while acknowledging the possibility of inadvertently removing some honest officers during a recent purge in the Federal Board of Revenue (FBR), stated on Saturday that his government would not tolerate any corrupt officers within the tax authority.

"We might have made an honest mistake in removing some upright officers; if so, we will rectify the matter," Shehbaz said on Saturday while addressing a ceremony in Lahore held to honor honest and hardworking FBR officers.

The prime minister emphasized that the time had come "to separate the wheat from the chaff" and to base decisions of reward and punishment purely on merit.

This ceremony appeared to have been organized to alleviate fears and concerns among FBR officers following the purge, during which eleven of their most senior officers were removed based on adverse reports prepared by intelligence agencies.

The move was met with disapproval by members of the Pakistan Customs Groups, who reportedly passed a resolution demanding that details of the investigations be made public.

The PM highlighted that the biggest challenge facing the country is the low revenue collection in relation to the tax-to-GDP ratio. He stated that, by conservative estimates, Pakistan's revenue generation should be three to four times its current level.

Adding a rough estimate, he said that if revenue collection currently stands at Rs9 trillion, and the lowest end of the conservative estimate, which is three times, is employed, then our revenue generation should be '21 trillion' (27 trillion).

He remarked that this untaxed revenue was being siphoned off due to greed, fraud, and corruption—a situation that compels Pakistan to seek assistance from lenders.

"This is a promise I made when I was elected as the PM two months ago, that step by step we would begin to distinguish between right and wrong in all major departments."

He said a new crop of officers would be elevated in the FBR purely on merit.

He regretted that Rs2.7 trillion was under litigation for over a decade at Appellate Tribunal Inland Revenue. He said a new law has been made to help expedite these cases.

Shehbaz said new officers would be inducted through tests while their viva would be taken by people of impeccable repute.

He was referring to Appellate Tribunal Inland Revenue (ATIR) members, who would be appointed through an open competition under the new scheme.

The PM said he had proposed a salary of Rs3 million for the ATIR members but the attorney general suggested keeping it on a par with the pay of high court judges to avoid any discrepancy.

He cited a case of tax fraud in which the national kitty was deprived of Rs750 billion via fake tax receipts. “This amount is just tip of the iceberg as only tax books of three years have been reviewed.”

He also termed the track and trace system introduced by the PTI government as the biggest fraud committed in the national history. He warned that if this system does not deliver, they will outsource it. “It is a point of introspection,” he said.

Earlier, the prime minister gave away the shields to the honest and hardworking officers of the FBR and said that he was feeling proud that the country had plenty of such honest officers which could play their due role in development and prosperity of the country.

SOURCE: EXPRESS TRIBUNE

 

[Bewal Express]

Won’t tolerate corruption in FBR: Shehbaz

Prime Minister Shehbaz Sharif, while acknowledging the possibility of inadvertently removing some honest officers during a recent purge in the Federal Board of Revenue (FBR), stated on Saturday that his government would not tolerate any corrupt officers within the tax authority.

"We might have made an honest mistake in removing some upright officers; if so, we will rectify the matter," Shehbaz said on Saturday while addressing a ceremony in Lahore held to honor honest and hardworking FBR officers.

The prime minister emphasized that the time had come "to separate the wheat from the chaff" and to base decisions of reward and punishment purely on merit.

This ceremony appeared to have been organized to alleviate fears and concerns among FBR officers following the purge, during which eleven of their most senior officers were removed based on adverse reports prepared by intelligence agencies.

The move was met with disapproval by members of the Pakistan Customs Groups, who reportedly passed a resolution demanding that details of the investigations be made public.

The PM highlighted that the biggest challenge facing the country is the low revenue collection in relation to the tax-to-GDP ratio. He stated that, by conservative estimates, Pakistan's revenue generation should be three to four times its current level.

Adding a rough estimate, he said that if revenue collection currently stands at Rs9 trillion, and the lowest end of the conservative estimate, which is three times, is employed, then our revenue generation should be '21 trillion' (27 trillion).

He remarked that this untaxed revenue was being siphoned off due to greed, fraud, and corruption—a situation that compels Pakistan to seek assistance from lenders.

"This is a promise I made when I was elected as the PM two months ago, that step by step we would begin to distinguish between right and wrong in all major departments."

He said a new crop of officers would be elevated in the FBR purely on merit.

He regretted that Rs2.7 trillion was under litigation for over a decade at Appellate Tribunal Inland Revenue. He said a new law has been made to help expedite these cases.

Shehbaz said new officers would be inducted through tests while their viva would be taken by people of impeccable repute.

He was referring to Appellate Tribunal Inland Revenue (ATIR) members, who would be appointed through an open competition under the new scheme.

The PM said he had proposed a salary of Rs3 million for the ATIR members but the attorney general suggested keeping it on a par with the pay of high court judges to avoid any discrepancy.

He cited a case of tax fraud in which the national kitty was deprived of Rs750 billion via fake tax receipts. “This amount is just tip of the iceberg as only tax books of three years have been reviewed.”

He also termed the track and trace system introduced by the PTI government as the biggest fraud committed in the national history. He warned that if this system does not deliver, they will outsource it. “It is a point of introspection,” he said.

Earlier, the prime minister gave away the shields to the honest and hardworking officers of the FBR and said that he was feeling proud that the country had plenty of such honest officers which could play their due role in development and prosperity of the country.

SOURCE: EXPRESS TRIBUNE

You are the corrupt,you and your family are the corrupt, your form 47 handlers are the corrupt. So loser, who will you not tolerate.

 

[Cricket Warrior]

Farmers body announces countrywide protests from May 10

Farmers body Kissan Ittehad on Sunday announced to begin countrywide protests from May 10 amid the wheat crisis in the country, ARY News reported.

Speaking at a press conference, Kissan Ittehad Chairman Khalid Khokhar said that the farmers will take to the streets on May 10 against the government’s decision to import the commodity instead of procuring it from local farmers.

While alleging corruption in the import of wheat, Khokar said that those involved in corruption in wheat imports should be hanged to death.

He claimed that the “wheat mafia” earned Rs100 billion from the imports while Pakistan faced a loss of around $1 billion.

Farmers body announces countrywide protests from May 10

MULTAN: Farmers body Kissan Ittehad on Sunday announced to begin countrywide protests from May 10 amid the wheat crisis in the country, ARY News reported.

arynews.tv

 

[hassan918]

PM Shehbaz assures all-out support to Saudi investment​

ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif on Monday assured his government’s blanket support to the Saudi investment, enabling the investors and businessmen to accomplish their future projects in Pakistan expeditiously with joint ventures and replicate them within short time for the mutual benefits of the people of both countries.

Addressing a dinner gathering hosted in the honour of visiting delegation of the Kingdom of Saudi Arabia, the prime minister said that time waited for none and stressed that they should overcome the challenges if they really wanted to make use of this opportunity as the Saudi leadership and their leading investors and business people wanted to help Pakistan.

The prime minister reiterated that it was not the government’s job to do businesses but it had to offer policy frameworks, act like a catalysts and remove all the hurdles for speedy achievement of economic targets.

He said that the government had resolved and was committed to remove all the bureaucratic hurdles and red tape in the way of foreign investment.

Chief of Army Staff General Syed Asim Munir, federal ministers, Saudi ambassador in Pakistan, members of the delegation and senior officials were present during the event.

The prime minister said that Special Investment Facilitation Council (SIFC) was the very robust and all encompassing vehicle to attain all those projects in the interest of people of Pakistan and the Saudi investors, leading to further strengthening of mutual cooperation and partnership.

The SIFC was a model acceptable to the Saudi delegation and they were fully satisfied over the existing opportunities, he observed. The prime minister said that from diverse projects, the Saudi investors could earn profits and if they provided them a mechanism free of troubles, bureaucratic hurdles and red tape, then the sky would be the limit.

The prime minister expressed his satisfaction over the solid and tangible progress achieved during the delegation’s interaction with the Pakistani counterparts. He said that shortly, they would witness solid agreements worth billions of dollars investment. Recollecting his visit to the Kingdom of Saudi Arabia during Ramzan ul Mubarak, the prime minister termed his meeting with the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia Mohammed bin Salman as ‘a wonderful interaction and he was extremely encouraged and deeply impressed with his forward looking vision that transformed KSA in many ways to come, whether it was in agriculture, education, IT, communication and infrastructure, youth empowerment and all inclusive policies’.

Crown Prince’s dynamic and visionary leadership had placed KSA among the most progressive societies in the world, the fastest growing economy with the latest infrastructure, transport facilities, provision of jobs and progress in every sphere of life which was phenomenal, he added.

The prime minister said that the Saudi delegation interacted with the Pakistani counterparts which would further enhance the bonds of brotherhood and friendship and transform into new heights.

“The KSA always stood with Pakistan through thick and thin and in different times. If we thank them, we can’t for their generosity for the last seven decades,” he added.

He said that some thirty years back, Pakistan was able to offer their Saudi brothers training in different walks of life, but today, KSA was far more experienced and had immense potential to train Pakistanis.

Saudi Assistant Minister for Investment Ibrahim Al Mubarak, on the occasion, thanked the prime minister for warmly hosting them. He said that their visit was a testimony to their deep friendship and strategic partnership which was very important, adding under their leadership’s directives, they moved swiftly to explore partnership with Pakistan.

He also lauded response of the private sector that interacted with them, adding that the relationship between the two brotherly countries was very strong and the both countries could achieve shared economic objectives together.

Source: Dunya News

 

[Cricket Warrior]

Pakistan loses over Rs700bn annually to illegal trade: Report

Pakistan suffered a staggering annual loss of more than Rs700 billion due to illicit trade activities, ARY News reported, quoting a report released by a renowned international research organization.

Collaborating with economic research firm Prime, Director General (DG) Trace It Geoffrey Hardy unveiled the findings of the report, highlighting the significant impact of undocumented and illegal trade practices on Pakistan’s economy.

According to the report, a staggering 40 percent of Pakistan’s economy is affected by illicit activities such as smuggling and counterfeit goods, resulting in an annual loss of Rs700 billion.

Hardy pointed out that Pakistan’s high inflation rate, currently at 25 percent, serves as a lucrative incentive for smuggling operations, particularly in counterfeit agricultural and food products, posing threats to both public health and economic stability.

He said that the smuggling of fake medicines, identified as the most perilous aspect of trafficking, alongside tire smuggling, which alone accounts for an annual loss of Rs40 billion to the economy.

The report further reveals that cigarette smuggling and counterfeit manufacturing contribute to an annual loss of Rs240 billion, while tea smuggling accounts for a loss of Rs45 billion.

Moreover, an alarming statistic indicates that 60 percent of Mobil oil sold in Pakistan is smuggled and counterfeit.

Dr. Ali Salman, executive director of the economic research institute, emphasized that the proliferation of smuggling is exacerbated by the government’s increase in taxes and tariffs, creating an environment conducive to illicit trade practices.

Despite government efforts to curb smuggling, challenges persist. Dr. Ali Salman highlighted the inadequacy of customs officials, with only 400 officials deployed along the 1600 km border, further underscoring the need for enhanced measures to combat trafficking and protect Pakistan’s economy.


ARY News

 

[BouncerGuy]

Saudi Crown Prince MBS expected to arrive within days to seal investment deals

Against a flurry of activities between Pakistan and Saudi Arabia to boost trade ties, Crown Prince Mohammed Bin Salman is expected to arrive in Pakistan this month to conclude deals being negotiated between Islamabad and Riyadh.

According to Foreign Minister Ishaq Dar, dates for the visit had not been communicated to Pakistan, but media reports claimed that the visit was likely on May 10-15.

“The crown prince had accepted Prime Minister Shehbaz Sharif’s invitation. The visit is on the cards, but no dates have been communicated to us as yet,” FM Dar said at a briefing on his participation in the World Economic Forum (WEF) in Saudi Arabia and Organisation of Islamic Cooperation meetings in Gambia.

He explained that the initial understanding was for discussions to commence at the government level after MBS committed to invest $5 billion in Pakistan, followed by subsequent talks between business executives. Saudi Foreign Minister Faisal bin Farhan Al Saud led a ministerial delegation to Islamabad on April 15-16. Later, FM Dar and PM Shehbaz held meetings with Saudi leadership on the sidelines of the WEF and over the past few days a delegation of Saudi businessmen led by the Saudi deputy minister for investment visited Islamabad.

FM Dar said discussions with the Saudi business executives were “elaborate and the group left very impressed” with the way Pakistan was proceeding on the issue.

He said large projects like Reko Diq and petrochemicals would be undertaken at the government level, but the private sector would collaborate on increasing trade volume and joint ventures.

Pak-Iran gas pipeline

Speaking about the long-stalled project, the foreign minister said Islamabad would decide on this issue in light of its national interest and commitments it had made.

Referring to the external pressure, especially from the US, the minister said, “We can’t allow anyone to dictate to us or use the veto.”

He said Pakistan expected other countries to respect its sovereignty, much like it respected theirs.

At the conclusion of the Iranian president’s visit to Pakistan last month, both countries called for closer cooperation in the energy sector and the gas pipeline was mentioned as one of the projects. Both sides, however, did not say how they planned to move ahead in light of the US sanctions against Iran.

Furthermore, Ishaq Dar said he would visit China on a three-day trip from May 13 to May 15 for the strategic dialogue with his Chinese counterpart Wang Yi. This would be the foreign minister’s first visit to Beijing after the installation of the new government. His visit is likely to be preceded by Planning Minister Ahsan Iqbal’s trip to China.

About the current wheat crisis, Ishaq Dar clarified that during the last tenure of the PML-N government, which ended last August, he did not approve a summary for the import of wheat that had been presented to him. He was the head of the of the Economic Coordination Committee. “The relevant ministry could not satisfy me about the need for importing wheat,” he said while clarifying his decision on not approving the summary.

PTI-US envoy meeting

The foreign minister confirmed that the Foreign Office had facilitated a meeting between US envoy Donald Blome and Opposition Leader Omar Ayub at the request of the US embassy.

This was part of a broader series of engagements that the US embassy sought with various Pakistani political figures, both from the government and opposition, in March.

This was part of a broader series of engagements that the US embassy sought with various Pakistani political figures, both from the government and opposition, in March.

“It was the initiative of the US envoy,” Mr Dar emphasised.

The PTI was chided by its opponents for engaging with the US envoy, given its past allegations that the US conspired to oust PTI leader Imran Khan as prime minister. The party, however, clarified that the meeting was facilitated by the FO and not sought by the PTI.

SOURCE: DAWN

 

[The Bald Eagle]

PM Shehbaz orders formation of Pakistan Skill Company to train overseas Pakistanis

Prime Minister Shehbaz Sharif on Wednesday ordered the establishment the Pakistan Skill Company and Pakistan Skill Development Fund to unify technical and vocational education countrywide and provide better employment to the country’s workers abroad.

The prime minister, chairing a high-level meeting reviewing the matters of the Ministry of Overseas Pakistanis and Human Resource Development and National Vocational and Technical Training Commission (NAVTTC), decided to introduce reforms within both organisations.

Shehbaz also ordered the immediate establishment of the Pakistan Skill Development Fund, according to a federal government post on X.

The premier said NAVTTC should be further enhanced to provide world-class technical and vocational training to the young workforce abroad. He added that “globally renowned and international certifications should be ensured in all fields”.

The prime minister emphasised the importance of greater cooperation between the federal institutions, adding that the “technical training plan should be implemented in line with international standards”.

Similarly, he stressed collaboration between the centre and provinces to elevate the quality of Pakistan’s technical manpower and human resource development.

He also called for a coordinated and organised database of Pakistani workers in collaboration with Nadra, NAVTTC and provincial institutions, and the establishment of an integrated system to regulate manpower equipped with world-class professional technical skills.

Stressing the need for implementing the technical and vocational training plans, the prime minister also ordered reforms to the licensing regime of companies employing skilled Pakistanis abroad.

PM Shehbaz said individuals and companies involved in defrauding the people and inflicting financial losses should be identified.

He instructed authorities to ensure meritocracy and transparency in the posting of community welfare attaches in Pakistani missions abroad.

The prime minister was briefed about the steps taken by NAVTTC regarding the vocational and technical training of the workforce in Pakistan.

He was told that NAVTTC would provide vocational and technical training to 60,000 people in 2024, while the figure would rise to 0.6 million in the next three years following the reforms.

The meeting’s participants were told that the exchange of information about employment opportunities and required skills from foreign countries was being ensured and that data on manpower consumption was also being obtained from local industries.

Source: Dawn News

 

[FearlessRoar]

Pakistan, World Bank agree on New Partnership Framework for reforms

The agreement was reached during a meeting between Prime Minister (PM) Shehbaz Sharif and a delegation led by Regional Vice President of the World Bank for South Asia Martin Raiser.

Welcoming Martin Raiser, Prime Minister Shehbaz lauded the contribution of the World Bank to the development of Pakistan.

The prime minister appreciated the support extended by the Bank for building the climate resilient infrastructure in the wake of 2022 floods in Pakistan. He briefed the delegation on the reform agenda of the government including digitization of the entire tax system, power sector reforms, enhancing per acre yield in the agriculture sector, addressing the issue of child stunting, etc.

Appreciating Pakistan’s aggressive reforms agenda, Martin Raiser said the World Bank was ready to collaborate with the country in its journey of transformation of the economy aimed at sustainable development.

Both sides agreed to engage in a long-term, focused partnership under a new Country Partnership Framework with an annual review mechanism to assess progress and ensure that results are achieved.

The strategy will include flexibility for future course correction. The new partnership will have the ambition to achieve transformational impacts over a decade on a selective set of critical development priorities for Pakistan.

The initial set of priorities that were discussed in the meeting included structural economic reforms including domestic resource mobilization, particularly via digitalization and tax policy reforms.

Human capital development, specifically addressing child stunting and improving foundational learning was also discussed.

Likewise, the energy sector reforms, including increased participation of the private sector in transmission and distribution, and transition to green energy to make energy cheaper, cleaner and financially sustainable also came under discussion.

In order to better cope with the increased water scarcity and climate-related shocks, both sides emphasized collaboration in climate adaptation.

For increasing economic opportunities, including in the agriculture sector, Pakistan will benefit from the Bank’s expertise in mobilizing global expertise and best practices, institutional capacity building, leveraging digital transformation and private sector participation, including via the World Bank’s private sector arm, the International Finance Corporation and the Multilateral Investment Guarantee Agency.

The two sides agreed that the process for preparation of the new Country Partnership Framework will consist of consultations with the federal and provincial governments as well as academia, parliamentarians, civil society, development partners and the private sector.

The World Bank will coordinate with stakeholders to discuss the partnership priorities duly aligned with the key development priorities and strategy of the Government of Pakistan.

The prime minister witnessed the signing of a joint communique in this respect by the World Bank’s Country Representative Najy Benhassine and Secretary of Economic Affairs Division Dr. Kazim Niaz.

Pakistan, World Bank agree on New Partnership Framework for reforms

ISLAMABAD: Pakistan and the World Bank on Wednesday agreed to collaborate on a new, robust and ambitious Country Partnership Framework (CPF) to carry

arynews.tv