What's new

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

Pakistan chalks out initial plan for new IMF loan agreement

The federal government has chalked out an initial plan to secure a fresh International Monetary Fund (IMF) programme, ARY News reported, citing sources in the Finance Ministry.

While the exact details have not been finalished yet, the new programme is likely to span three or more years and will be worth around $6 billion to $8 billion, sources claimed.

The major reforms for securing the programme include bringing around 3.1 million retailers into the tax net to further expand the country’s tax framework. Moreover, reforms will also be introduced in the Federal Board of Revenue.

The government will prioritize collecting taxes from the real estate, and agriculture sector while sectors not included in the tax net will be documented for revenue collection.

The government’s plan also includes increasing revenue collection by bringing two million tax evaders into the tax net, increasing the Tax-to-GDP ratio and investing in technology to expand the tax net of Pakistan.

Aiming to secure a long-term IMF program, the government is also working to reform the gas sector along with a cheap energy plan in which Pakistan will invest in the energy sector, prioritize local resources for energy generation and minimize its reliance on imported fuel and resources.

In the energy sector, the government is working to increase generation from local oil refineries. An upgrade drive of the local refineries will also bring in a $6 billion investment to the country.

Meanwhile, the government will ensure managing the circular debt in the energy sector.

The power distribution companies will be handed over to the private sector while the loss-making state-owned enterprises will be privatized according to the plan that is aimed at signing a fresh IMF program.

Earlier today, the IMF staff and Pakistan reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement.

According to the official statement issued by an International Monetary Fund team led by Nathan Porter, IMF reached a staff-level agreement with Pakistan on the second and final review of the country's stabilization program supported by the IMF's US$3 billion (SDR2,250 million) SBA approved.

“Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,” Porter said.

arynews.tv

Pakistan chalks out initial plan for new IMF loan agreement

The federal government has chalked out an initial plan to secure a fresh International Monetary Fund (IMF) programme, ARY News reported, citing sources in
arynews.tv arynews.tv
 
I worry about who will bear the burden of the new IMF loan and how it will be repaid.
 
FearlessRoar said:
I worry about who will bear the burden of the new IMF loan and how it will be repaid.
Click to expand...
The burden has to be spread. Pakistan's tax collection as a percentage of GDP is just too low. It's unsustainable

2024-03-20_22-01-19.png

I suspect the main way to solve it is Property Tax and bringing more of the unorganised sector into the tax net since tax rates both direct and indirect seem on par with similar countries.
 
FM underlines significance of economic-diplomacy

Foreign Minister Ishaq Dar on Wednesday stressed that in addition to conventional diplomacy, Pakistan needed to prioritize economic-diplomacy in the current circumstances.

In this regard, he said all missions of Pakistan abroad should focus on attracting investments, the foreign minister said while interacting with officers of Pakistan High Commission in London, a press release said.

The foreign minister said that Pakistan was blessed with significant natural as well as high quality human resources.

The country had all the potential to become a great economy provided a coherent approach was adopted to bring fiscal discipline and curtail external deficit, he added.

“The only requirement of the day is to manage these resources in an effective manner,” he stressed.

The foreign minister said that all stakeholders, including line ministries, needed to work hand-in-hand with a team spirit to strengthen Pakistan both internally and externally.

Dar said that Pakistan was undergoing challenging times, however, the incumbent government was committed to provide relief to the common man, adding moreover, on international fronts, Pakistan was engaging with partners for mutual cooperation.

On the occasion, the foreign minister advised the officers to work hard and diligently to bring long-term investments in the country and enhancement of trade.

The foreign minister will be representing Pakistan in the First Nuclear Energy Summit, scheduled to be held in Brussels on March 21.

SOURCE: EXPRESS TRIBUNE
 
Pakistan’s foreign exchange reserves stand at US$ 13,390.7mn: SBP

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $ US$ 105 million to US$ 8,017.9 million as of 15th March 2024, ARY News reported on Thursday citing SBP

The central bank’s spokesman stated in a statement that the country’s total liquid foreign reserves stood at US$ 13,390.7 million in the week ended March 15, 2024.

Giving a breakup, the SBP maintained that Pakistan’s net foreign reserves held by commercial banks stood at US$ 5,372.8 million.

“During the week ended on 15-Mar-2024, SBP’s reserves increased by US$ 105 million to US$ 8,017.9 million,” the central bank added.

Earlier on March it was reported that Pakitan’s foreign exchange reserves held by the SBP increased by $17 million on a weekly basis, reaching a total of $7.91 billion as of March 8.

According to the data released by the SBP, total liquid foreign reserves held by the country stood at $13.15 billion. Net foreign reserves held by commercial banks stood at $5.24 billion.

The central bank did not specify a reason for the increase in the reserves.

“During the week ended on 08-Mar-2024, SBP’s reserves increased by US$ 17 million to US$ 7,912.9 million,” it said.

arynews.tv

Pakistan’s foreign exchange reserves stand at US$ 13,390.7mn: SBP

KARACHI: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $ US$ 105 million to US$ 8,017.9 million as of 15th
arynews.tv arynews.tv
 
The reason for the increase was not specified by the central bank, and it is concerning why they are not informing us about what is going on.
 
Pakistan, Turkiye agree to increase bilateral trade to $5billion

Pakistan and Turkiye have reaffirmed the resolve to utilize the optimum potential of their bilateral trade and increase it to five billion dollars.

The commitment was expressed during meeting between Foreign Minister Ishaq Dar and his Turkish counterpart Fidan Hakan on the margins of Nuclear Energy Summit in Brussels today.

The two sides also vowed to further enhance cooperation in defence, strategic and civil aviation sectors.

Ishaq Dar reiterated Pakistan's readiness to share experience and expertise in nuclear energy and applications.

He appreciated Turkiye's principled stance on Kashmir dispute and its unflinching support for the oppressed people of Indian Illegally occupied Jammu and Kashmir.

Deliberating upon the humanitarian crisis in Gaza, the two foreign ministers also reaffirmed unflinching support to the people of Palestine.

Ishaq Dar extended invitation to his Turkish counterpart to visit Pakistan which he gladly accepted.

The Turkish Foreign Minister conveyed felicitations on behalf of the President of Turkiye to Prime Minister Shehbaz Sharif on successful elections.

He highlighted that the two countries have immense potential given their strategic and geographic locations and underlined the importance of synchronizing their actions and policies for cooperation at global and regional level.

The two Foreign Ministers noted with satisfaction the upwards trajectory of bilateral relations between Pakistan and Turkiye.

www.radio.gov.pk

Pakistan, Turkiye agree to increase bilateral trade to $5billion

Pakistan, Turkiye agree to increase bilateral trade to $5billion
www.radio.gov.pk www.radio.gov.pk
 
What a pity Pakistan still after IMF for its stability
=====
Prime Minister Shehbaz Sharif on Thursday said that macroeconomic stability in the country needed to be advanced further, which he said would not be possible without another bailout programme with the International Monetary Fund (IMF).

A day ago, while announcing the staff-level agreement (SLA) on the successful completion of an existing short-term facility, the IMF had confirmed that Pakistan was seeking a 24th medium-term bailout package for a permanent push towards longstanding structural reforms.

In its end-of-mission statement, the IMF had said that subject to the approval of its executive board, the staff-level agreement would enable Pakistan to access about $1.1 billion — 828 million special drawing rights (SDR) — by late April.

While addressing a meeting of the Special Investment and Facilitation Council’s (SIFC) Apex committee today, PM Shehbaz congratulated the finance ministry for closing the SLA with the IMF, and expressed hope that the $1.1bn tranche would arrive next month.

“[However], is this our ultimate achievement? The answer is a big no. We have to bring economic stability at the macro-level and we have to progress it for which it is decided that we cannot survive without another [IMF] agreement.”

The prime minister questioned whether another programme would be able to bring economic stability, increase the growth trajectory and bring prosperity.

He stressed that the newly elected government would have to work towards a medium-term programme which would have the duration of two-to-three years. “And during those years, the government will have to undertake deep rooted structural reforms,” the premier added.

He further said: “To think that the economy will stop bleeding without undertaking those steps is a dream.”

PM Shehbaz gave the example of the Federal Board of Revenue (FBR), citing the need to reform and digitise the institution.

The prime minister also credited the political parties for their role in the successful negotiations with the IMF.

“When Pakistan came to close to being a brink of bankruptcy, the political parties set aside their differences to work for the country,” he said, adding that the reforms taken up the the interim government helped achieve the successful IMF reviews.

He also expressed his gratitude toward the SIFC, stating that it had helped overcome bureaucratic hurdles without going into details.

The prime minister ended the meeting on emphasising the importance of political parties setting aside their differences to work towards the wellbeing of the country, highlighting that politics should be secondary to the state’s interests.

Source: Dawn News
 
“Government shall provide all the resources required for ensuring operational readiness of the Armed Forces,” PM Shehbaz said during his first visit to the General Headquarters after assuming office, where he was accompanied by some of his key ministers.

—— ——-
Lol how is this even possible.

It’s insane Pakistan is entirely dependent upon Americans, Chinese and Arabs for financial stability, the more I read about it the more shocking history becomes.
 

Pakistan to discuss Extended Fund Facility with IMF next month, says finance minister​

Finance Minister Muhammad Aurangzeb said on Friday that the matter of an Extended Fund Facility (EFF) with the International Monetary Fund (IMF) will be discussed in Washington next month as the country looks to alleviate a full-scale economic crisis.

The standby $3 billion arrangement with the global lender expires on April 11, and the two sides reached a staff-level agreement regarding the disbursal of the final tranche of $1.1bn earlier this week.

“We have expressed our strong interests in an EFF with the IMF, but the quantum is not clear yet,” Aurangzeb said at a media briefing, adding that the lender was “very receptive” to the request.

The US has also been “very supportive” in the matter, the minister said.

Prime Minister Shehbaz Sharif, after being sworn in for a second time, had directed his finance team to begin work on seeking an EFF from the IMF.

A day ago, he had said that Islamabad needed another bailout package from the Fund, which he had linked to across-the-board structural and economic reforms.

“We have to bring economic stability at the macro-level and we have to progress it for which it is decided that we cannot survive without another [IMF] agreement,” Shehbaz had said.

He is stressed that the newly elected government would have to work towards a medium-term program which would have a duration of two-to-three years.

The IMF had also said it would support formulating a new economic program for the country if it asked for one.

The global lender’s package last summer had helped Pakistan avert a sovereign default but, to secure it, the country had to revise its budget, and raise interest rates, rescue taxes, and electricity and gas prices.

As a result, during the period, the country struggled through inflation as high as 38 per cent, historic depreciation in its currency and contraction of the economy.

Pakistan will also look to bonds in the international market to help stabilize its economy, Aurangzeb said at today’s briefing, adding that, in the meantime, work is being done on Panda bonds.

“Once our credit rating improves, we will be going to the international market for bonds,” he said.

The finance minister has been keen to capitalize on Pakistan’s relationship with China and had earlier also expressed his intention to tap into the Chinese bond market.

In an interview to Bloomberg today, he said Pakistan plans to sell as much as $300 million in Panda bonds this year.

www.dawn.com

Pakistan to discuss Extended Fund Facility with IMF next month, says finance minister

Muhammad Aurangzeb says the Fund is “very receptive” to the request, says Pakistan plans to sell as much as $300m in Panda bonds this year.
www.dawn.com
 
Jamaat-e-Islami (JI) Emir Sirajul Haq on Friday assailed the incumbent government, saying it only knows to kowtow to the International Monetary Fund (IMF).

Expressing his thoughts in Lahore, Haq said: "The premier has united the chief ministers of the four provinces and decided to kowtow to the international lender."

Sirajul Haq accuses govt of 'kowtowing to IMF'​

Haq said: "The upcoming four months will be even more challenging."

"We will show resistance if the burden of inflation is put on the masses," he added.

Taking a swipe at the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP), Haq said: "The PML-N and PPP had vowed during the election campaign to provide 300 units of free electricity to the masses. But contrary, the price of power further witnessed a hike."

– Siraj warns against privatisation of state institutions –

Few days back, Haq warned against the privatisation of state institutions.

Expressing his thoughts, Haq took a jibe at the incumbent government, saying, “The government is holding talks with the International Monetary Fund (IMF) on more slavery rather than securing the next tranche.”

“The privatisation of state institutions is unfair to the masses. The country’s economy cannot afford the privatisation,” Haq said.

He urged the global community to play a role in the Gaza ceasefire.

Source: Samaa News
 
PM sets up seven cabinet panels; to lead ECC, CCoE

Prime Minister Shehbaz Sharif on Friday formed seven cabinet committees, including the Economic Coordination Committee (ECC) and the Cabinet Committee on Energy (CCoE).

According to separate notifications issued by the cabinet division, the prime minister will now chair meetings of the ECC and the CCoE. Earlier, the finance minister used to head the ECC.

According to a notification, the ECC now comprises the prime minister and federal ministers for finance, economic affairs, commerce, power, petroleum and planning and development.

Under its Terms of Reference, the ECC will consider all urgent economic matters and coordination of economic policies initiated by various divisions of government, identify and propose measures for the gradual attainment of the status of a welfare state, maintain vigilance on the monetary and credit situation and make proposals for the regulation of credit to maximise production and exports and to prevent inflation.

It will also determine the future pattern of growth of agriculture and industries and review the country’s import policy periodically and its effect on production and investment.

The CCoE now comprises the prime minister and the ministers for economic affairs, finance, petroleum, planning and development and power.

Similarly, a committee has been formed to speed up the process of outsourcing the country’s major airports and privatising Pakistan International Airlines (PIA).

This committee will act under the chairmanship of the defence minister. Other members of the committee are ministers for privatisation/BOI, foreign affairs, planning and development, aviation and privatisation.

The committee will review outsourcing of the management of major airports of the country and will also monitor matters related to PIA’s privatisation.

Another body, the Cabinet Committee on State-Owned Enterprises (SOEs), will be headed by the finance minister. Other members include ministers for maritime affairs, economic affairs, science and technology and housing and works.

Similarly, the Cabinet Committee on Privatisation will be headed by the minister for foreign affairs to formulate policy for privatisation of SOEs. Other members of the committee are ministers for finance, commerce, power, industries and production, and privatisation.

The minister for law and justice will head the Cabinet Committee on Disposal of Legislative Cases (CCLC). Its other members will be ministers for information, overseas Pakistanis, commerce and economic affairs, industries and production.

Another cabinet committee on Chinese Investment Projects (CCCIP) will be headed by the minister for planning and development. Its other members will be ministers for foreign affairs, interior, finance, commerce, petroleum, power, railways and science and technology.

The CCCIP will oversee the progress of investment projects executed by Chinese companies, expeditiously resolve issues faced by Chinese investors, facilitate Chinese investment, reactivate slow-moving projects, and review measures for the security of Chinese workers in Pakistan.

Reko Diq

Separately, in a meeting with a delegation of Barrick Gold, the Canadian company working on the Reko Diq copper and gold mining project, PM Shehbaz described the project as a game changer for the country and the region.

He was informed that the project feasibility would be completed by the end of the year.

“The Reko Diq project will prove to be a game changer for the development of Balochistan and the region. This project will usher in a new era of development of the province and prosperity of the people,” the prime minister said.

He said planning would be made regarding communication infrastructure, especially railway lines, to take full advantage of minerals in Balochistan.

The prime minister asked the Barrick Gold’s delegation, led by its CEO Mark Bristow, to also invest in other mineral projects in Balochistan.

He also proposed that the government and Barrick Gold could jointly establish a technical university in the Chagai district.

“The government is taking all possible measures to facilitate investors, especially in the fields of road and communication systems,” he added.

Briefing on the progress of Reko Diq project, the Barrick Gold delegation informed the meeting that the project feasibility would be completed by the end of the current year.

The prime minister was told that preference was being given to local and Balochistan-domiciled people to work on the Reko Diq project.

Barrick Gold officials noted that the company had set up three schools near Reko Diq and had also imparted technical training to 100 people, including women.

Saudi delegation

Later, a delegation of the Saudi Fund for Development (SFD), led by its CEO Sultan Bin Abdul Rehman Al Marshad, met the prime minister and assured early processing of the shared projects and also reiterated that Saudi Arabia would extend all possible assistance and continued support to Pakistan.

The premier thanked Mr Al Marshad and members of the delegation, who are on a visit to Pakistan from March 22 to 24, and conveyed his best wishes to all the members of the Saudi royal family.

The prime minister appreciated the long-standing friendship between Saudi Arabia and Pakistan and the SFD’s efforts to provide financing to Pakistan in the fields of health, energy, infrastructure and education, as well as during the recent floods.

The PM appreciated the signing of financial agreements on Friday between SFD and the government of Pakistan worth $107m for the construction of hydropower stations in Azad Jammu and Kashmir, which would not only provide clean energy but would also help eradicate the menace of deforestation, besides providing job opportunities to the local population.

The SFD CEO shared updates with the premier about the ongoing projects, including Mohmand Multi-Purpose Hydropower Project, Golen Gol Hydropower Project, Malakand Regional Development Project, and other projects funded through Saudi grants.

SOURCE: DAWN
 

Dar is back. Congratulations to all PDM fans and sympathizers.​

=====================================================​

​

Prime Minister Shehbaz Sharif has initiated a shake-up within the cabinet, redistributing important roles among top officials mainly to Pakistan Muslim League-N (PMLN) leaders​


Finance Minister Muhammad Aurangzeb finds himself removed from chairmanships in two crucial committees, while Foreign Minister Ishaq Dar takes on a prominent role in financial affairs.

Under the prime minister’s directive, four cabinet committees have been reconstituted. Finance Minister Aurangzeb now chairs only one committee, a departure from previous norms where finance ministers typically led three out of four committees.

The cabinet division has officially announced the reconstitution of these committees.

PM Shehbaz has retained leadership of the vital Economic Coordination Committee (ECC) instead of appointing Muhammad Aurangzeb as its head.

However, Aurangzeb will chair ECC meetings in the prime minister’s absence.

Insiders within the PML-N suggest resistance to appointing the finance minister as ECC chairman, indicating a shift in dynamics within the party.

Furthermore, PM Shehbaz has appointed Foreign Minister Ishaq Dar as chairman of the Cabinet Committee on Privatisation (CCOP), a position previously held by the finance minister.

Amid discussions within the PML-N about appointing a new finance minister, it was decided that Dar would remain involved in economic matters but in a different capacity.

Aurangzeb retains the chairmanship of the Cabinet Committee on State-owned Enterprises (CCoSOEs), while Planning Minister Ahsan Iqbal heads the Cabinet Committee on Chinese Investment Projects.

Additionally, new responsibilities have been delegated regarding the outsourcing of airports and privatisation of Pakistan International Airlines, with Minister for Defense and Aviation Khawaja Asif assuming chairmanship of the relevant committee.

profit.pakistantoday.com.pk

Aurangzeb ousted from key committees as Dar assumes prominent financial role

Finance Minister now chairs only one committee, a departure from three out of four committees
profit.pakistantoday.com.pk profit.pakistantoday.com.pk
 
Last edited by a moderator:

Finance minister to visit US on April 14 for talks with IMF​


Finance Minister Muhammad Aurangzeb will visit Washington on April 14 and 15 for meetings with officials of the World Bank and the International Monetary Fund (IMF).

The finance minister, speaking at a ceremony at the Karachi Stock Exchange, said the country needs a new IMF programme that should last for at least three years.

Aurangzeb stressed the importance of the talks with the Fund and outlined plans for further discussions within Pakistan. He emphasized the need to focus on effective policies to address economic challenges.

The finance czar credited the recent agreement with the IMF to measures taken during the caretaker government's tenure, which helped stabilize the economy.

PIA privatisation

The minister mentioned efforts to privatize struggling enterprises, such as Pakistan International Airlines (PIA), and to improve airport operations. He expressed his determination to complete the privatization of PIA by June, along with efforts to reduce circular debt and boost exports.

On March 27, the board of directors of Pakistan International Airlines (PIA) approved the government’s plan to privatise the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimated to fetch $250-300 million through the sell-off likely to a Middle Eastern country

Economy

Aurangzeb said a decrease in the inflation rate has been observed and credited the reduction to agreements made during Shehbaz’s previous administration.

"Five per cent growth in agriculture is significant, but we anticipate further growth in this sector,” said the finance minister and affirmed that the growth of the agriculture sector is independent of IMF interventions.

The finance minister also emphasized decreasing circular debt and boosting exports. "At this time, we must work diligently. If any obstacles arise during implementation, we will address them accordingly."

On March 20, the IMF announced a preliminary agreement with Pakistan for the release of $1.1 billion last tranche of a $3 billion bailout after Islamabad committed to roll out a compulsory tax registration scheme for retailers and further increase gas and electricity prices on the basis of need.

The announcement was made at the end of the six-day visit of the IMF mission to Pakistan that -- as anticipated -- conclusively ended without any hiccups.

tribune.com.pk

Finance minister to visit US on April 14 for talks with IMF | The Express Tribune

Pakistan needs new IMF programme for at least three years, says minister
tribune.com.pk tribune.com.pk
 
Incompetent governance, the reason behind this mess
=====
Inflation in Pakistan is expected to hover between 22.5 per cent and 23.5pc in March and to further ease in April, the finance ministry said on Friday in its monthly economic update.

The country has been struggling with high inflation and stunted growth for over a year, and in 2023 narrowly staved off default with a last-gasp, short-term International Monetary Fund (IMF) bailout programme.

The ministry’s report said the March inflation outlook was moderate despite a hike in fuel prices and the influence of the month of Ramazan, a traditional time for bulk buying by consumers and a spike in demand.

It also cited the high base effect for falling inflation numbers. In February, monthly inflation was recorded at 23.1pc, the lowest since June 2022.

Inflation had hovered around 30pc for over a year and hit a monthly high of 38pc in 2023.

The report projected that inflation would ease gradually in April to between 21-22pc, saying headline inflation would moderate in the last quarter of the financial year 2024, which ends in June, on account of favourable domestic and global factors.

The economy shrank by 0.17pc in the last financial year, but the report said that there were signals of growth prospects in the current year on the back of strong expansion in the agriculture sector.

The report added that a sustainable economic recovery required continued fiscal consolidation and a flow of foreign investment and remittances to meet external financing needs.

The government has indicated that it will approach the IMF again shortly for a longer-term programme after reaching a staff-level agreement for the second and final review of its nine-month, $3bn programme earlier this month.

Source: Dawn News
 
Inflation to ease in April 2024: finance ministry

The finance ministry on Friday issued its monthly economic update for March, projecting that inflation in Pakistan is expected to hover around 22.5-23.5 percent and to further ease in April 2024, ARY News reported.

According to the monthly Economic Update and Outlook, the March inflation is seen at a moderate level, despite the upward revision of petrol prices and the influence of the Ramadan “which historically leads to bulk buying by consumers and stringing up the demand supply gap”.

It also cited the government’s Ramadan Relief Package with increased allocation from earlier Rs 7.5 billion to Rs 12.5 billion, will according to the ministry will provide relief to the masses and cushion the impact of heightened demand during the religious festival.

The report also cited the high base effect for falling inflation numbers. In February, monthly inflation was recorded at 23.1pc, the lowest since June 2022.

The report projected that inflation would ease gradually in April to between 21-22pc, saying headline inflation would moderate in the last quarter of the financial year 2024, which ends in June, on account of favourable domestic and global factors.

Meanwhile, the finance ministry – in its report – stated that the country’s economic and financial position continues to improve with each passing month of the current fiscal year, attributed to prudent policy management and the resumption of inflows from multilateral and bilateral partners.

The report noted that Pakistan reached a Staff-Level Agreement in its final review successfully concluding the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA) program and securing a disbursement of $1.1 billion.

The ongoing efforts in policy and reform are easing out pressures on the gross financing needs, which has been intensified by increased external and domestic financing demands and an uncertain external environment. These positive developments have led to a sustained economic recovery and an uplift in the country’s overall economic confidence.

In real sector, agriculture outlook is promising, it says adding in Rabi season 2023-24, the wheat sowing has surpassed the target of 8.998 million hectare. The farm inputs also showcased an impressive growth in FY2024 with tractor production and sales up by 68.6 percent and 67.6 percent, respectively. Agriculture credit disbursement also rose by 34.7 percent to Rs 1,279.4 billion.

The Large Scale Manufacturing (LSM), observed a marginal decline of 0.5 percent during July-January FY2024, compared to a contraction of 2.7 percent last year. However, LSM output increased YoY by 1.84 percent in January 2024 when compared with January 2023. During July-January FY2024, 12 out of 22 sectors witnessed positive growth.

On the fiscal front, the primary surplus increased to Rs 1939 billion during July-January FY2024 from Rs 945 billion last year. The fiscal deficit during July-January FY2024, however increased to 2.6 percent of GDP as compared to 2.3 percent recorded last year.

The government is putting all its efforts to ensure prudent fiscal management through cautious expenditure and effective resource mobilization.

Current Account posted a deficit of $1.0 billion for July-February FY2024 as against a deficit of $ 3.9 billion last year, with largely reflecting an improvement in trade balance. In February 2024 current account posted a surplus of $ 128 million as against a deficit of $ 50 million same period last year.

Year-on-Year Exports increased by 16.2 percent to $ 2.6 billion in February 2024 as compared to $ 2.2 billion in February 2023 owing to ease in imports restriction and exchange rate stability which resulted in smooth supply of raw material for export-oriented industries.

The YoY imports also increased by 10.2 percent to $4.3 billion in February 2024 as compared to $3.9 billion same month last year.

The Foreign Direct Investment (FDI) witnessed an inflow of $ 131.2 million in February 2024 compared to an outflow of $ 173 million in last month. Remittances also show an upward trend, it increased by 13.0 percent in February 2024 ($ 2.2 billion) as compared to February 2023 ($ 1.9 billion).

SBP has maintained the policy rate at 22 percent on 18th March, 2024 – due to susceptible inflation outlook to risks amidst elevated inflation expectations. During 01st July–01st March, FY24 money supply (M2) registered growth of 3.8 percent (Rs 1192.1 billion) compared 1.14 percent growth (Rs 313.9 billion) in last year.

To maintain the policy and reforms, efforts are vital to entrench economic and financial stability during last quarter of on-going fiscal year. Moreover, sustaining the pace of external inflows to meet upcoming gross financing needs and external sector stability is inevitable.

arynews.tv

Inflation to ease in April 2024: finance ministry

ISLAMABAD: The finance ministry on Friday issued its monthly economic update for March, projecting that inflation in Pakistan is expected to hover around
arynews.tv arynews.tv
 
PM Shehbaz chairs federal cabinet meeting to assign clear targets for ministries

Prime Minister Shehbaz Sharif is chairing a federal cabinet meeting on Saturday. The meeting, to be held in Lahore virtually through a video link, is expected to lay out clear targets and objectives for ministries across various sectors, including the economy, agriculture, industry and trade, minerals, IT, and education.

Sources suggest that Prime Minister Sharif may outline the points of his five-year national agenda during the meeting, highlighting the government's priorities and vision for the nation's development.

The PM is anticipated to assign short- and long-term goals to ministries, with a focus on achieving tangible outcomes within specified timeframes.

Sources say that for the first time in Pakistan's history, ministries have been provided with clear targets and objectives, which they would have to achieve within a certain timeframe. Each ministry will be held accountable for its performance and the attainment of set targets, reflecting a commitment to transparency and accountability in governance.

Ahead of the meeting, a comprehensive document outlining the targets for ministries was circulated, providing clear instructions and resource allocations. Prime Minister Sharif is expected to discuss this document with cabinet members, emphasizing the importance of achieving set targets to drive progress and development in the country.

In addition to setting targets for ministries, the federal cabinet meeting will also address issues related to the letter from six judges of the Islamabad High Court. The PM will consult the cabinet members on the establishment of an inquiry commission to address the concerns raised and decide on the matter.

SAMAA
 

Pakistan wants to further enhance cooperation with Russia in diverse fields — PM Sharif​


Prime Minister Shehbaz Sharif said on Saturday his country wanted to enhance bilateral cooperation with Russia in a number of areas, particularly energy, trade and investment, Pakistani state media reported.

The prime minister said this during his meeting with Ambassador of the Russian Federation, Albert P. Khorev, in Islamabad, the state-run APP news agency reported, citing Sharif’s office.

He stressed the need for early convening of the 9th session of the Inter-governmental Commission (IGC), due to be hosted by Russia later this year.

“He also urged the Russian side to send a delegation to Pakistan to hold discussions with their counterparts to identify ways to enhance the existing level of trade and investment ties between the two countries,” the report read.

“While fondly recalling their meeting on the sidelines of the Shanghai Cooperation Organization (SCO) Summit in Samarkand in 2022, the prime minister reiterated his invitation to President [Vladimir] Putin to undertake an official visit to Pakistan at his earliest convenience.”

He thanked President Putin for the congratulatory message sent to him on his re-election.

The Russian ambassador assured the prime minister that Russia wanted to build stronger ties with Pakistan, according to the report.

In addition to energy, trade and investment, Ambassador Khorev said, Russia was also keen to enhance cooperation with Pakistan in education and culture.

Pakistan, faced with an economic slowdown for the last two years, is currently making efforts to expand bilateral trade with several countries, including Russia.

In November, Islamabad achieved a milestone in regional trade by beginning the transportation of fruit to Russia via land.

Pakistan notified a mechanism for barter trade with Russia, Iran and Afghanistan in February 2023, allowing state -owned enterprises and private sector entities to engage both in imports and export of goods.

 
Now, the US might also threaten Pakistan with sanctions over this matter.
 
PM Shehbaz vows to transform Pakistan’s economic landscape

Addressing a meeting of the cabinet, the prime minister said that he had shared broad parameters of five-year plan with the relevant ministries by setting various targets to be achieved immediately without wasting time.

Under the parameters, he said the ministries concerned should evolve mechanism, hire human resources and formulate strategies to meet the set targets, he added.

“Responsibility with accountability will be the hallmark of the five-year roadmap as no system in the world can progress without it,” he opined.

PM Shehbaz Sharif said that for the purpose, all the available resources and tools should be explored besides, those not available immediately be procured.

He said that for overcoming delays and red tape, the forum like Special Investment Facilitation Council (SIFC) was available, adding for hiring of global consultants, the relevant rules should also be followed.

The prime minister stressed for utilization of country’s talented human resource for achieving the targets. He also urged the ministries to adopt innovative tools and thinking, besides, reducing the file work burden.

“We have five-year term to transform the economic situation of the country, but for that purpose, we have to commence our respective work immediately,” he emphasised.

For achieving self-sufficiency, the prime minister said that they had to reduce the burden of foreign debts, increase GDP, create jobs, develop agriculture and IT sectors, bring reforms in energy sector and end smuggling.

When the wheel of economy moved on, the country would achieve progress, he said, adding that for the economic stability, they have to take the required initiatives themselves.

The prime minister said that Federal Bureau of Revenue (FBR) digitalisation plan was underway. About Rs27 billion were stuck in the appellate courts and for expeditious disposal of these cases, they would bring competent judges with enhanced incentives, he added.

He said the Chief Justice of Pakistan, during a recent meeting with him, had also assured of complete support in this regard.

The prime minister noted that efforts should be made for reducing the official expenditures. He said achieving $25 billion IT export target was not unfeasible.

PM Shehbaz also appreciated the interim government for recovering Rs58 billion rupees in power sector and said that for the first time in the country’s history, such a target was achieved in the shortest term.

The prime minister also assured to provide all possible resources for the defence of the country, adding that shaheed officers and personnel of the armed forces and security forces were the heroes of the nation.

The prime minister said on 26 March, an unfortunate horrifying incident occurred in Bisham in which five Chinese and one local were killed.

He said the enemies of Pakistan that did not want that Pak-China friendship should progress, adding that the bilateral cooperation between the two countries in different fields was exemplary.

The prime minister said that they stood with the Chinese government and the people over the tragic incident.

He recounted that he had visited the Chinese embassy and conveyed to the Chinese President, Premier and the Chinese people their condolences on behalf of the entire Pakistani nation.

The Chinese leadership was assured that the investigation would be carried out immediately and the responsible would get exemplary punishment, he added. The prime minister reiterated that they would not rest till elimination of terrorism.

arynews.tv

PM Shehbaz vows to transform Pakistan’s economic landscape

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Saturday expressed the firm resolve to transform the country's economic landscape, urging cabinet members
arynews.tv arynews.tv
 
Pakistan's economy with a five-year plan !!!! I am sure he will not complete his 5-year term
 
Prime Minister Shehbaz Sharif urged his cabinet members to immediately commence work towards achieving the targets set in a five-year roadmap he shared with all the relevant ministries on Saturday.

Addressing a cabinet meeting, the prime minister said he shared broad parameters of the five-year plan with the relevant ministries and set various targets. He added these ministries must form strategies immediately to resolve the litany of issues plaguing the country.

“We have to come together and use the resources and tools at our disposal without wasting time,” PM Shehbaz said. “We will procure whatever tools we don’t have.”

Under the shared parameters, he said the ministries concerned should evolve mechanisms, hire human resources and formulate strategies to meet their targets within the five-year period.

He said that to overcome delays and red tape, a forum like the Special Investment Facilitation Council (SIFC) was available to hire consultants and experts. However, the premier maintained that the relevant rules must be adhered to.

Shehbaz said that a fully automated accountability mechanism would be implemented to ensure the relevant ministries meet their goals. “Responsibility, with authority and accountability, will be the hallmark of the five-year roadmap. No system in the world can progress without it,” he said.

“We will sit with ministers and see why no progress was made,” PM Shehbaz added. “Without accountability and proactive supervision, the dream of progress will always remain distant.”

The prime minister stressed using the country’s talented human resources to achieve the targets and urged the ministries to adopt innovative tools and thinking, besides reducing the backlog of work files.

“We have a five-year term to transform the economic situation of the country, but for that purpose, we have to commence our work immediately,” he emphasised.

To achieve self-sufficiency, the prime minister said that the cabinet had to reduce the burden of foreign debts, increase GDP, create jobs, develop agriculture and IT sectors, bring reforms in the energy sector and end smuggling and leakages in revenue collection.

He gave the example of using low-quality seeds in agriculture, saying, “If we use high-quality seeds, agriculture will thrive and the economy will thrive. If we don’t invest in the youth, then we cannot reap the benefits.”

He expressed confidence in his cabinet, saying that it was a combination of youth and experience. “New and old staff can bring about change if they work together.

“When the wheels of the economy move, the country will progress,” he added, further saying that the cabinet members must complete the required initiatives themselves to achieve economic stability. “We have to make this progress ourselves, IMF (International Monetary Fund) or no IMF.”

Source: Dawn News
 

Pakistan cuts down on pomp at public events amid economic crisis​


As Pakistan gets more and more caught up in an ever worsening economic crisis, the ruling elite of the troubled South Asian nation - normally used to a luxurious lifestyle - are being forced to cut down on wasteful expenses.

As part of these efforts, Pakistan Prime Minister Shehbaz Sharif has banned the use of red carpets at government events, reserving them exclusively for diplomatic receptions.

This order by the newly installed government is part of austerity measures aimed at cutting down on unnecessary expenditures in the cash-strapped nation.

Sharif expressed annoyance over the use of red carpets during the visits of federal ministers and senior authorities at government functions.

According to the Cabinet Division, a ban has been imposed on the use of red carpet on the prime minister’s directives.

According to a notification issued by the Cabinet division, the prime minister has instructed that the red carpet will not be used for federal ministers and government figures at official events in the future. However, it could be used as a protocol only for foreign diplomats, The Express Tribune newspaper reported.

The decision to ban red carpets is more than just a symbolic gesture. It represents a tangible effort to curb unnecessary expenditures and redirect resources to more critical areas of governance.

By eliminating the use of red carpets, the government aims to save funds and promote a more responsible and prudent approach to public finances.

Last week, Prime Minister Sharif and members of the Cabinet decided to voluntarily forego their salaries and perks as part of the government’s efforts to promote austerity.

Last month, the prime minister stated that austerity measures were the government’s top priority.

Earlier, President of Pakistan Asif Ali Zardari decided against taking salary and perks, owing to economic challenges being faced by the country.

Sharif earlier this month took oath as the prime minister for a second time since 2022 amidst staggering economic and security challenges.

Sharif on Tuesday said his government is planning to approach the International Monetary Fund for “another programme”, days after the country struck a staff-level agreement with the global lender regarding the disbursal of the final tranche of USD 1.1 billion.

www.firstpost.com

Pakistan cuts down on pomp at public events amid economic crisis

This order by the newly installed government is part of austerity measures aimed at cutting down on unnecessary expenditures in the cash-strapped nation
www.firstpost.com www.firstpost.com
 
A muchneeded action. Red carpets are for countries enjoying good economic stability.
 
Pity for our beloved nation
====
Pakistan ‘unlikely to break free from IMF support, incomplete PM terms’, says IIF

On its way to missing targets in the current financial year, Pakistan’s biggest challenge now is fiscal consolidation and reforms amid a weak coalition government and political instability stemming from accusations of electoral fraud, the Washington-based Institute of International Finance (IIF) has said.

On the other hand, exchange rate, monetary policy, energy subsidies and state-owned enterprises (SOE) reforms are unlikely to be a barrier to the new IMF programme on the back of good progress on all these fronts over the past year, said the IIF, a global association of financial institutions comprising the world’s largest commercial and investment banks, insurance companies and investment management firms.

“The biggest challenge will come from fiscal consolidation,” the IIF said, noting that this was an area of particular importance, as large fiscal deficits have led to public debt increasing from 55pc of GDP in the fiscal year 2009-10 to 79pc in 2022-23.

“New estimates now show an overall fiscal deficit of 8.1pc of GDP and a primary deficit of 0.2pc of GDP,” the IIF said. This coincided with a Ministry of Finance report stating that the seven-month fiscal deficit increased to 2.6pc of GDP (Rs2.721 trillion) from 2.3pc of GDP (Rs1.974tr) last year, although the contained primary expenditures helped in improving the primary surplus to Rs1.939tr from Rs945 billion last year.

Global financial body calls fiscal consolidation, reforms amid weak coalition, political instability ‘biggest challenges’
Click to expand...
The IIF noted that historical precedence, along with a politically weak government, meant that risks were tilted to the downside. There is a high chance that the Rs9.4tr tax-revenue target will be missed, while further expenditure and significant subsidy cuts will be difficult, the IIF said. The IIF forecasted “a primary deficit of 0.3pc.

Source: Dawn News
 

Pakistan’s headline inflation reading slows further to 20.7% in March​


Pakistan’s headline inflation clocked in at 20.7% on a year-on-year basis in March, the Pakistan Bureau of Statistics (PBS) said on Monday, lower than the reading in February when it stood at 23.1%. On a month-on-month basis, the reading was up 1.7%.

This is the lowest inflation reading since May 2022 when it stood at 13.8%, shared JS Global. It is also the first time in over three years that the CPI-based inflation figure has gone below the key policy rate, which currently stands at 22%.

The latest CPI figure takes July-March average inflation to 27.22% compared to 27.19% in the same period of the previous year.

The inflation reading is lower than the government’s expectations, and adds credence to the wider impression that the key interest rate will now begin to reduce.

On Friday, the Ministry of Finance, in its ‘Monthly Economic Update and Outlook’ report, projected CPI-based inflation in Pakistan to hover around 22.5-23.5% in March 2024.

In its monthly report, the ministry said inflation in March is being seen at a moderate level despite the upward revision of petrol prices and the influence of Ramadan.

It cited that the government had announced a relief package for Ramadan with increased allocation from earlier Rs7.5 billion to Rs12.5 billion.

“This will provide relief to the masses and cushion the impact of heightened demand during the religious festival. Furthermore, the phenomenon of the high base effect is also contributing to the moderation of inflationary pressures,” the outlook report said.

Additionally, the report continued, the global context played a role in shaping inflation dynamics.

Brokerage house Arif Habib Limited (AHL), in a report released last week, had said the inflation is expected to decline further and may clock in at around 20% level on a year-on-year (YoY) basis in March, lower than 23.1% recorded in February.

“The projected YoY headline inflation rate for March 2024 is expected to be 20.2%, reflecting a decline from the previous month, February 2024, which reported a YoY inflation rate of 23.1%,” said AHL in a report on Thursday.

Meanwhile, IGI Securities, another brokerage house, estimated national CPI to clock in at 20.3% year-on-year growth.

“On a monthly scale, March 2024 is estimated to show a +1.4% month-on-month growth compared to +0.0% month-on-month in February 24,” it noted.

Urban, rural inflation

The PBS said CPI urban inflation increased to 21.9% on year-on-year basis in March 2024 as compared to an increase of 24.9% in the previous month and 33.0% in March 2023.

On a month-on-month basis, it increased to 1.4% in March 2024 as compared to an increase of 0.2% in the previous month and an increase of 3.9% in March 2023.

CPI rural inflation stood at 19.0% on year-on-year basis in March 2024 as compared to an increase of 20.5% in the previous month and 38.9% in March 2023.

On month-on-month basis, increased to 2.1% in March 2024 as compared to a decrease of 0.3% in the previous month and an increase of 3.5% in March 2023.

SBP expectations

In its last meeting, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) maintained the key policy rate at 22%, its sixth successful decision to maintain the status quo.

“In approaching the decision, the MPC noted that inflation, in line with earlier expectations, has begun to decline noticeably from H2-FY24,” read the statement.

“It is, however, observed that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations. This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5–7% by September 2025.”

The SBP’s MPC is currently scheduled to meet on April 29.

www.brecorder.com

Pakistan’s headline inflation reading slows further to 20.7% in March

CPI-inflation reading drops to lowest level since May 2022, is now below key policy rate after over three years
www.brecorder.com
 
The World Bank on Tuesday said that it expected economic activity in the country to remain subdued, adding that the GDP was expected to grow at 1.8 per cent in the current fiscal year.

“Pakistan is expected to continue facing foreign exchange liquidity issues due to the persistent trade deficit and limited access to external financing,” said the World Bank’s latest “Pakistan Development Update: Fiscal Impact of Federal State-Owned Enterprises” report.

“Even with the recent successful completion of the International Monetary Fund (IMF)’s Stand-By Arrangement (SBA) and continued rollovers, reserves are projected to remain low,” it said.

The Bank warned that import management measures were expected to continue disturbing domestic supply chain, in addition to tight macroeconomic policies subduing the aggregate consumption and investment.

“In the absence of a credible and ambitious economic reform agenda, uncertainty is expected to linger, affecting confidence and growth,” it said.

“Economic activity is therefore expected to remain subdued with real GDP projected to grow at 1.8pc in fiscal year (FY) 2024,” it added.

The bank estimated output growth to recover at an average of 2.5pc over the next two years as confidence improved “remaining below potential in the medium term”.

Furthermore, the report said, “Inflation is projected to remain elevated at 26pc in FY24 due to higher domestic energy prices. With high base effects and lower projected global commodity prices, inflation is expected to moderate over the medium term.”

With regards to the current account deficit (CAD), the report said that due to lower domestic demand and continued import management measures, it was expected to remain low at 0.7pc of the GDP in the current fiscal year, adding expectations of it narrowing to 0.6pc of GDP in the next two years.

The report pointed out that multiple factors posed risks to the the country’s economic outlook, adding that Pakistan engaged in heavy domestic borrowing for fiscal financing, with a tax-to-GDP ratio of 10pc to the GDP, leading to exposure of the banking sector to risks.

Source: Dawn News
 
PM Shehbaz seeks five-year plan to double exports

In a move aimed at revitalising the economy, Prime Minister Shehbaz Sharif has called for the creation of a comprehensive five-year strategy to double the country’s exports.

The ambitious initiative seeks to empower exporters through maximum facilities, leveraging the insights of successful entrepreneurs and key stakeholders.

During a high-level meeting focused on the export sector, Mr Sharif underscored the importance of a collaborative approach, asking the Ministry of Trade to devise the exports strategy in consultation with successful entrepreneurs and stakeholders.

The meeting was attended by ministers Jam Kamal, Rana Tanveer Hussain, and prominent e-commerce entrepreneurs like Utopia Deals CEO Jabran Niaz, Zeeshan Shah, Salman Ahmed and other relevant officials, Prime Minister Office said in a statement.

During the meeting, the prime minister issued directives for facilitating exporters in the e-commerce sector who are exporting the country’s products to the world and are promoting the “Made in Pakistan” brand.

Mr Sharif highlighted the critical role of the IT, domestic goods, textiles, and other key sectors in the export drive, advocating for stakeholder engagement to ensure their maximum contribution.

The meeting was apprised of proposals and recommendations for developing the export sector and the strategy in this regard.

The prime minister underlined the submission of recommendations regarding promoting industries that export items that had been part of the global value chains.

Attracting FDI ‘top priority’

Chairing another meeting to review progress on foreign investment, the prime minister highlighted that promoting foreign direct investment (FDI) in the country to transform challenges into opportunities was a top priority of the government, as per APP.

The meeting reviewed the progress on the memorandums of understanding (MoUs) and agreements with the Gulf countries under the SIFC.

Talking to participants of the meeting, the PM said all possible facilities would be given to the investors and special cells in federal ministries would be established to promote innovation and research in the investment sector.

He directed that a feasibility study should be conducted for such projects that could attract investors and the services of internationally recognised experts should be obtained in this regard.

He emphasised that there should be no compromise on the quality of the projects presented for investment.

The premier also directed all ministries to improve their relations with the Gulf countries regarding the progress on their respective MoUs.

He said all the requirements should be fulfilled concerning the foreign investment in the solar energy projects in Muzaffargarh, Layyah and Jhang.

Mr Sharif stressed the need for conducting a feasibility study for railway connectivity from Reko Diq to Gwadar seaport, adding that work should also be started on the railway line to access the power plants of Thar Coal.

He also directed that steps should be taken regarding foreign investment in the Chiniot Iron project.

The meeting was informed that the dredging work of Gwadar Port had been completed, after which big ships could now be anchored there.

The meeting was told that the Gulf nations were expected to invest in renewable energy, oil refining, mining, food security, banking and financial services, logistics, water supply, and waste management sectors.

Iranian envoy meets PM

In a separate engagement, Iranian Ambassador Reza Amiri Moghadam met with Prime Minister Sharif, reaffirming the deep-rooted and fraternal ties between Iran and Pakistan.

The premier thanked Iranian President Ebrahim Raisi for his congratulatory message and telephone call on his re-election. The premier recalled his meeting with the Iranian president when they jointly inaugurated a border market and an electricity transmission line in May last year. The two leaders also met on the sidelines of the SCO Summit in 2022.

Mr Sharif stressed the need for both sides to work together to enhance trade, energy cooperation, road and rail connectivity, cultural exchanges, counterterrorism efforts and security cooperation.

He appreciated Iran’s support on the issue of Jammu and Kashmir. The situation in Palestine was also discussed.

The Iranian ambassador thanked the prime minister for receiving him and shared an overview of the current state of bilateral relations.

Source: Dawn News
 
PM Shehbaz invites French companies to invest in Pakistan

During a courtesy call of the French Ambassador to Islamabad Nicolas Galey, the prime minister also extended an invitation to French businesses to invest in Pakistan. The French side’s idea to send business executives from leading French companies on a quick visit to Pakistan was warmly received by Prime Minister Shehbaz. The prime minister also stated economic stabilization is the government’s priority.

The ambassador handed over a congratulatory letter from French Prime Minister Gabriel Attal, addressed to Prime Minister Shehbaz on his re-election.

PM Shehbaz expressed gratitude to the French leadership for the message of greetings. He said that Pakistan enjoyed friendly and cordial ties with France and, although the relationship had undergone a difficult phase a few years ago, the two countries are now working together to further strengthen bilateral cooperation.

Prime Minister Shehbaz fondly recalled his numerous interactions with French President Emmanuel Macron, in particular their meetings on the sidelines of UNGA Session in 2022, as well as on the margins of the Paris Conference on New Financing Pact on Climate Change in June 2023.

PM Shehbaz once again extended an invitation to President Macron to visit Pakistan as soon as it is convenient for him.

During the meeting, the prime minister expressed his appreciation for French peace efforts in the region and touched on the situation in Gaza. There was also talk on the situation in Afghanistan.

The French ambassador thanked Prime Minister Shehbaz for receiving him and briefed him on the latest developments on the bilateral front. He said a French delegation was expected to visit Pakistan for discussions on bilateral cooperation.

He stated that France was eager to collaborate closely with Pakistan in multilateral venues, such as the UN, in addition to fortifying bilateral ties.

Earlier on Tuesday, Shehbaz Sharif has termed promotion of foreign investment as top priority of the government in order to turn challenges into opportunities.

Chairing a high-level meeting on foreign investment in Islamabad today, he assured investors of providing every possible facility and emphasized the establishment of special cells in federal ministries for innovation and research related to investment.

The session reviewed agreements and memoranda of understanding with Gulf countries under the Special Investment Facilitation Council.

arynews.tv

PM Shehbaz invites French companies to invest in Pakistan

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif said that Pakistan and France are working together to further strengthen bilateral cooperation, especially
arynews.tv arynews.tv
 
Some good news finally
====
During March, textile products exports recorded a growth of 3.2 percent on monthly basis.
According to the statistics released by the Pakistan Bureau of Statistics, the export of textile products earned the country $1.30 billion in March 2024, which is 3.2 percent higher than the same month last year.

In March last year, the export volume of textile products was recorded at 1.26 billion dollars.

The data stated that, there was a 7.8% monthly decline in textile product exports in March compared to February. The value of textile exports was $1.41 billion in February.

In the first three quarters of the current fiscal year, the country received 12.44 billion dollars in foreign exchange from the export of textile products, which is 0.3 percent less than the same period of the previous fiscal year.

In the same period of the previous financial year, the export volume of textile products was recorded at 12.48 billion dollars.

Source: Samaa News
 
IMF board expected to approve $1.1b disbursement for Pakistan by end of April

In a press briefing in Washington, Kozack said: “Pakistan and the IMF reached a staff-level deal on March 19. The economic situation in Pakistan has improved”.

She maintained: “Pakistan will be granted an overall $3 billion in line with the standby arrangement.”

“The country has already secured $1.9 billion,” Kozack added.

Last month, the International Monetary Fund (IMF) reached a staff-level agreement with Pakistan on the final review of a $3 billion bailout package.

The announcement came after the IMF team’s week-long visit to Islamabad concluded on March 19.

The global lender praised Pakistan’s central bank and outgoing caretaker government for “strong program implementation” and hoped the new government would continue its efforts for the stabilization of its economy.

The IMF official added that the new government is committed to continuing the policy efforts that started under the current Stand-By Arrangement to entrench economic and financial stability for the remainder of this year.

Last June, the IMF approved a crucial nine-month arrangement with Pakistan to aid its economic stabilization program.

arynews.tv

IMF board expected to approve $1.1b disbursement for Pakistan by end of April

ISLAMABAD: International Monetary Fund's (IMF) Director of Communications Julie Kozack said on Thursday that the Executive Board Meeting of the global
arynews.tv arynews.tv
 
Provinces to get devolved ministries

Prime Minister Shehbaz Sharif on Thursday directed that a comprehensive plan for increase in revenue should be prepared without putting burden on the common man.

While chairing a meeting on the Ministry of Finance, he said in the next five years the tax-to-GDP ratio would be taken to 15 per cent.

He said the federal government would strengthen the provinces and would hand over all the relevant ministries and departments to the provinces under the 18th amendment, adding expenditure would be reduced to decrease fiscal deficit.

He directed to speed up the process of reforms and privatisation of the state-owned institutions, especially those which were running in losses.

He said the public-private partnership should be initiated with private operators to improve the services at all the large airports of the country.

The prime minister said the government was fully focused on gradually decreasing the public debt, pension and subsidy reforms and reforms and privatisation of the state-owned entities.

He said the conclusion of the standby programme with the International Monetary Fund was a positive development, adding the government would make full effort for the next programme with the IMF.

He said a detailed plan should also be presented for decrease in external debt. The services of international experts should be hired for achieving economic progress, he added.

The meeting was briefed about revenue, taxes, fiscal deficit, foreign exchange reserves, remittances and current account.

The participants of the meeting were also informed about the progress on the implementation on issues of revenue, subsidies, power sector reforms and on the instructions of the prime minister to reduce government expenditure.

Federal ministers Muhammad Aurangzeb, Ahad Khan Cheema, Dr Musadiq Malik, Ahsan Iqbal, Deputy Chairman Planning Commission Jehanzeb Khan, Coordinator of Prime Minister Rana Ihsaan Afzal and relevant officers attended the meeting.

SOURCE: EXPRESS TRIBUNE
 
Pakistan's economy is going down the drain and this guy is busy granting bonuses to government officials. What else can we expect from these people? LOot loot and more loot.

----------------------

PM grants bonuses amid financial woes

Just days before leaving for Washington to request the International Monetary Fund for a new bailout package to avoid a default, Finance Minister Muhammad Aurangzeb has approved four salaries in reward for officers working in the Prime Minister’s office.

The decision belies the claim of austerity and is tantamount to rubbing salt into the wounds of people bearing 27% hike in overall prices and multiple increases in their utility bills.

The honorariums have been approved for the officers for making extra efforts in completion of the official tasks, said the sources. The government approved the rewards just after one month in office.
The sources said that no extraordinary job has been completed by these officers that could have made them eligible for such rewards.

The rewards will be paid by taking loans from the banks at 23% interest rate.

Last week, the prime minister said every cup of tea that is offered in his office is also bought with borrowed money. Yet, he not only approved the proposal to give up to four salaries in reward but also asked his finance minister to concur with it.

The Prime Minister Office’s employees are already getting higher than the standard pay packages.
The finance minister also approved two salaries in reward to the officials of the PM’s office - from grade-1 to -16 - taking their total reward to five salaries in just two months, according to the sources.

Former prime minister Anwaarul Haq Kakar had also granted three salaries in reward to the employees of the PM Office. Aurangzeb took these decisions as the chairman of the Economic Coordination Committee (ECC) of the Cabinet.

The Express Tribune requested the finance minister for his comments on the development. He was also asked whether his action would bode well for a government that is going to request the IMF for another bailout package to avoid the sovereign default.

The minister did not respond till the filing of the story.

Aurangzeb and Secretary Finance Imdad Ullah Bosal are set to depart for Washington to attend the Spring Meetings of the IMF and also formally request the IMF management for a new bailout package.
Pakistan remains afloat only because of dole-outs by regional countries, the IMF, the World Bank, the Asian Development Bank and the domestic commercial banks.

The country is adding on an average Rs48 billion per day in its already unsustainable debt pile. This debt consumes Rs8.5 trillion per annum in interest payments –equal to 90% of the Federal Board of Revenue’s (FBR) tax collection.

The decisions of generously giving rewards to the bureaucrats indicate a lack of appreciation of the grave economic situation.

The doling out of honorariums is also contrary to the austerity policy announced by Prime Minister Shehbaz Sharif during his second cabinet meeting.

The sources said a proposal for offering additional salaries had been initiated by the PM’s Office and was first approved by Shehbaz himself.

They said the PM approved a fresh one-month salary in honorarium for his grade-17 to -21 officers.
Shehbaz Sharif also restored three salaries in honorariums for the officers, which the former caretaker PM first approved and then withheld after The Express Tribune approached the PM office for a version.
The secretary to the PM did not respond to a request for comments.

In his capacity as ECC chairman, the finance minister gave approval to grant four salaries in honorariums to grade-17 to -21 officers, including three that were restored by the PM. The total impact of the fresh decision would be around Rs51 million, said the sources.

The ECC chairman also gave two salaries as reward to grade-1 to -16 officials of the PM Office. Earlier, the former PM had given three salaries to all the officials (from grade-1 to -16) as a departing gift, which cost another Rs51 million. This brings the total honorarium awarded to the officials of the PM’s Office to five salaries.

The federal government’s budget deficit widened more than 50% during the first half of this fiscal year, requiring prudent fiscal management and leaving no room for any kind of rewards.

Compared to the private sector, the low-paid employees are getting higher salaries and enjoying job security. In the first half, the federal government’s total expenditures surged by 58% compared to the same period of the previous year.

The total expenses amounted to Rs6.7 trillion – higher by Rs2.5 trillion. There was also a 50% increase in the current expenditures that amounted to Rs6.6 trillion in six months.

Reward programme

According to sources, Prime Minister Shahbaz Sharif in a recent meeting of his cabinet indicated initiating a “reward programme” for high-performer bureaucrats in ministries by making a 100 per cent increase in salaries.

The PM appreciated the role of proactive secretaries heading divisions for their depth of sector-specific knowledge and professional calibres.

He said high performers would get suitable rewards while the underperformers would be answerable for their inefficiency. The premier urged civil servants to do away with the attitude of red-tapism and to work on simplifying processes.

The role of the Special Investment Facilitation Council (SIFC) was applauded in this regard, which he said provided a robust mechanism to address hurdles in implementation effectively and to facilitate the ease of doing business.

The premier also observed that there was too much emphasis on paperwork-driven processes in the ministries and that out-of-the-box problem resolution was only marginal.

He emphasized the need to develop mechanisms that encouraged creative thinking to achieve targets and new tools and strategies focused on outcomes. Automation across all Government departments was also stressed.

SOURCE: EXPRESS TRIBUNE
 
Economy waiting for a push

Some 40 per cent of Pakistanis continue to live below the poverty line with little in sight to hope for better days. The country’s economic growth of 2.5pc recorded in July-September 2023 faltered to just 1pc in the next quarter. Overall growth in the current fiscal year (July 2023-June 2024) may hardly hit the 2pc mark amid persisting political instability, deteriorating security environment, rising energy prices and forex crisis.

The World Bank’s latest forecast says Pakistan’s GDP may grow only by 1.8pc-2.5pc in the next fiscal year starting from July. Meanwhile, around 10 million employable people are still jobless, and the number may rise in the coming months even if the recessionary trend seen in industrial output during the first seven months of the fiscal year is reversed.

At best, the output of large-scale manufacturing (LSM) for a full year may rise to 1.8pc, according to the World Bank estimates. LSM production rather declined by 0.5pc on a year-on-year basis in seven months.

An estimated 1.8pc growth in LSM is too small to affect joblessness, particularly because in the current economic environment of ever-rising energy prices, high-interest rates and import controls, even this much growth is only possible if industries become more efficient and cut production costs — which, in the case of labour-intensive industries like textiles and food, means ‘right sizing’ their employees.

Source: Dawn News
 
The Bald Eagle said:
Economy waiting for a push

Some 40 per cent of Pakistanis continue to live below the poverty line with little in sight to hope for better days. The country’s economic growth of 2.5pc recorded in July-September 2023 faltered to just 1pc in the next quarter. Overall growth in the current fiscal year (July 2023-June 2024) may hardly hit the 2pc mark amid persisting political instability, deteriorating security environment, rising energy prices and forex crisis.

The World Bank’s latest forecast says Pakistan’s GDP may grow only by 1.8pc-2.5pc in the next fiscal year starting from July. Meanwhile, around 10 million employable people are still jobless, and the number may rise in the coming months even if the recessionary trend seen in industrial output during the first seven months of the fiscal year is reversed.

At best, the output of large-scale manufacturing (LSM) for a full year may rise to 1.8pc, according to the World Bank estimates. LSM production rather declined by 0.5pc on a year-on-year basis in seven months.

An estimated 1.8pc growth in LSM is too small to affect joblessness, particularly because in the current economic environment of ever-rising energy prices, high-interest rates and import controls, even this much growth is only possible if industries become more efficient and cut production costs — which, in the case of labour-intensive industries like textiles and food, means ‘right sizing’ their employees.

Source: Dawn News
Click to expand...
40% under poverty line? And here on PP I was told by British Pakistanis that 600 million Indians are starving.
 
Hitman said:
40% under poverty line? And here on PP I was told by British Pakistanis that 600 million Indians are starving.
Click to expand...

Both can be true.

But British Pakistanis shouldn't worry about Indians in India or Pakistanis in Pakistan. They should compare themselves to British Indians, British Bangladeshis, etc.
 
Govt set to borrow from banks in last quarter of FY 2023-24

The State Bank of Pakistan (SBP) has released the auction schedule of T-bills and bonds till April 2024. In the last quarter of the current financial year (April-June), the government will borrow about Rs5 trillion from the banks.

The experts said that the government will cover the budget deficit by selling investment bonds and the MTBs, also commonly known as T-bills to commercial banks.

The SBP maintained that Pakistan investment bonds worth Rs 2490 billion rupees will be sold in April and the government will borrow Rs 2475 billion from the auction of T-bills from April to June.

“From April to June 2024, the government will sell T-bills and bonds worth Rs 4965 billion,” it added.

On the other hand, the financial experts said that Pakistan’s local debt is increasing continuously. “Pakistan’s debt increased by 6.51 percent to Rs 64,805 billion in eight months of the current financial year,” they said.

The experts added that Pakistan’s debt increased by 19 percent in February 2024 compared to February 2023.

arynews.tv

Govt set to borrow from banks in last quarter of FY 2023-24

ISLAMABAD: The federal government has planned to borrow around Rs 5 trillion from banks in the last quarter of the current fiscal year (2023-24),
arynews.tv arynews.tv
 

PM Shehbaz, Crown Prince Salman agree to expedite $5bn Saudi investment in Pakistan​

Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman have agreed to expedite the first wave of a planned $5 billion Saudi investment package for Pakistan, according to the joint statement issued by both countries.

The two leaders had held a meeting a day ago during the prime minister’s visit to Saudi Arabia in his first foreign trip since his election.

In January last year, the crown prince had directed the Saudi Development Fund (SDF) to study increasing the deposit amount in the State of Bank of Pakistan (SBP) to $5bn.

The move, according to the Saudi Press Agency, confirmed Saudi Arabia’s position on supporting the economy of Pakistan and its “sisterly people”.

In September 2023, then-caretaker prime minister Anwaarul Haq Kakar had said Saudi Arabia would invest up to $25 billion in Pakistan over the next two to five years in various sectors.

Kakar, speaking to journalists at his official residence, said Saudi Arabia’s investment would come in the mining, agriculture and information technology sectors, and was part of a push to increase foreign direct investment in Pakistan.

A joint statement issued today said that the premier and the crown prince’s discussions had centred on fortifying the fraternal relations between the two nations and exploring avenues for enhanced collaboration across various sectors.

“Emphasis was placed on the kingdom’s supportive role in Pakistan’s economy and the mutual desire to strengthen trade and investment ties. Both parties affirmed their commitment to expediting the first wave of [an] investment package worth $5bn which was discussed previously,” it said.

It said that both leaders also exchanged views on regional and global developments of mutual interest, including the situation in Gaza.

PM Shehbaz and the Saudi crown prince called for international efforts to halt Israeli military operations in Gaza and mitigate the humanitarian impact. They also underscored the need for the international community to pressure Israel to cease hostilities, adhere to international law and facilitate unhindered humanitarian aid access to Gaza, the statement said.

“They discussed the need for advancing the peace process in accordance with relevant resolutions of the [United Nations] Security Council and the General Assembly as well as the Arab Peace Initiative aimed at finding a just and comprehensive solution for the establishment of an independent Palestinian state with East Jerusalem as its capital,” the statement said.

The two sides also stressed the importance of dialogue between Pakistan and India to resolve the outstanding issues between the two countries, especially the Kashmir issue to ensure peace and stability in the region.

PM Shehbaz invited the crown prince to undertake an official visit to Pakistan at his earliest convenience, which was accepted by the Saudi leader.

The crown prince also extended his congratulations to Shehbaz on assuming office and “expressed warm wishes for his tenure”.

The statement said that the premier in turn conveyed gratitude for the “kingdom’s steadfast support and hospitality, and reaffirmed Pakistan’s commitment to bolstering bilateral ties and economic cooperation”.

Pakistan’s delegation to Saudi Arabia included Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, Information Minister Ataullah Tarar, Finance Minister Muhammad Aurangzeb and Punjab Chief Minister Maryam Nawaz Sharif.

www.dawn.com

PM Shehbaz, Crown Prince Salman agree to expedite $5bn Saudi investment in Pakistan

Both leaders emphasise kingdom’s "supportive role in Pakistan’s economy and the mutual desire to strengthen trade, investment ties".
www.dawn.com
 
FearlessRoar said:

PM Shehbaz, Crown Prince Salman agree to expedite $5bn Saudi investment in Pakistan​

Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman have agreed to expedite the first wave of a planned $5 billion Saudi investment package for Pakistan, according to the joint statement issued by both countries.

The two leaders had held a meeting a day ago during the prime minister’s visit to Saudi Arabia in his first foreign trip since his election.

In January last year, the crown prince had directed the Saudi Development Fund (SDF) to study increasing the deposit amount in the State of Bank of Pakistan (SBP) to $5bn.

The move, according to the Saudi Press Agency, confirmed Saudi Arabia’s position on supporting the economy of Pakistan and its “sisterly people”.

In September 2023, then-caretaker prime minister Anwaarul Haq Kakar had said Saudi Arabia would invest up to $25 billion in Pakistan over the next two to five years in various sectors.

Kakar, speaking to journalists at his official residence, said Saudi Arabia’s investment would come in the mining, agriculture and information technology sectors, and was part of a push to increase foreign direct investment in Pakistan.

A joint statement issued today said that the premier and the crown prince’s discussions had centred on fortifying the fraternal relations between the two nations and exploring avenues for enhanced collaboration across various sectors.

“Emphasis was placed on the kingdom’s supportive role in Pakistan’s economy and the mutual desire to strengthen trade and investment ties. Both parties affirmed their commitment to expediting the first wave of [an] investment package worth $5bn which was discussed previously,” it said.

It said that both leaders also exchanged views on regional and global developments of mutual interest, including the situation in Gaza.

PM Shehbaz and the Saudi crown prince called for international efforts to halt Israeli military operations in Gaza and mitigate the humanitarian impact. They also underscored the need for the international community to pressure Israel to cease hostilities, adhere to international law and facilitate unhindered humanitarian aid access to Gaza, the statement said.

“They discussed the need for advancing the peace process in accordance with relevant resolutions of the [United Nations] Security Council and the General Assembly as well as the Arab Peace Initiative aimed at finding a just and comprehensive solution for the establishment of an independent Palestinian state with East Jerusalem as its capital,” the statement said.

The two sides also stressed the importance of dialogue between Pakistan and India to resolve the outstanding issues between the two countries, especially the Kashmir issue to ensure peace and stability in the region.

PM Shehbaz invited the crown prince to undertake an official visit to Pakistan at his earliest convenience, which was accepted by the Saudi leader.

The crown prince also extended his congratulations to Shehbaz on assuming office and “expressed warm wishes for his tenure”.

The statement said that the premier in turn conveyed gratitude for the “kingdom’s steadfast support and hospitality, and reaffirmed Pakistan’s commitment to bolstering bilateral ties and economic cooperation”.

Pakistan’s delegation to Saudi Arabia included Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, Information Minister Ataullah Tarar, Finance Minister Muhammad Aurangzeb and Punjab Chief Minister Maryam Nawaz Sharif.

www.dawn.com

PM Shehbaz, Crown Prince Salman agree to expedite $5bn Saudi investment in Pakistan

Both leaders emphasise kingdom’s "supportive role in Pakistan’s economy and the mutual desire to strengthen trade, investment ties".
www.dawn.com
Click to expand...

Nothing is going to happen. Everytime one of our leaders goes to Saudi a statement like this is issued. We’re still waiting for the Gwadar refinery to get built with Aramco. At the most the Saudis will work a couple of billion in the state coffers so Pakistan doesn’t go belly up. No one will touch that money.
 
PM inducts industries minister in ECC

Prime Minister Shehbaz Sharif has reconstituted the Economic Coordination Committee (ECC) of the Cabinet and appointed the federal minister for industries and production, Rana Tanveer Hussain, as its member. After the inclusion of Hussain, the number of ECC members has increased to 7.

According to the announcement, Finance Minister Muhammad Aurangzeb will continue to chair the committee, which also includes federal ministers for commerce, energy, and petroleum, economic affairs and planning

Interestingly, the prime minister had earlier removed the finance minister from the committee and decided to chair himself. He later retracted this decision and reappointed Augranzeb as its head.

SOURCE: Express Tribune
 
Pakistan’s economic outlook uncertain with high risks on the downside: ADB report

The Asian Development Bank (ADB) on Thursday said Pakistan’s economic outlook was uncertain, with high risks on the downside, as political uncertainty would remain a key risk to the sustainability of stabilisation and reform efforts.

In its April 2024 ‘Asian Development Outlook’, the Manila-based lending agency said potential supply chain disruptions from the escalation of the conflict in the Middle East would weigh on the economy.

With Pakistan’s large external financing requirements and weak external buffers, disbursement from multilateral and bilateral partners remains crucial, it said, adding that these inflows could be hampered by lapses in policy implementation.

The ADB highlighted that support from the International Monetary Fund (IMF) for a medium-term reform agenda would considerably improve market sentiment and catalyse affordable external financing from other sources.

The report projected that economic growth in Pakistan for the FY2025 would reach 2.8 per cent, driven by higher confidence, reduced macro-economic imbalances, adequate progress on structural reforms, greater political stability, and improved external conditions.

Growth was estimated to remain subdued during FY24 and pick up next year, provided economic reforms take effect, it said.

Meanwhile, real gross domestic product (GDP) was expected to grow by 1.9pc in 2024, driven by a rebound in private sector investment linked to progress on reform measures and transition to a new and more stable government.

The report further forecast that inflation will remain at about 25pc this year, driven by higher energy prices, but was expected to ease in 2025.

While improvement in food supplies and moderation of inflation expectations would likely ease inflationary pressures, further increases in energy prices envisaged under the IMF Stand-By Agreement were projected to keep inflation high, it observed.

Although improved supplies tempered food inflation, it remained high, driven largely by rising prices for energy and inputs to agriculture. Core inflation also remains elevated, reflecting domestic recovery and the pass-through of upward adjustments in energy prices, the ADB said.

On the supply side, it noted growth would be led by post-flood recovery in agriculture. The report said output would rise from a low base on improved weather conditions and a government package of subsidised credit and farm inputs supporting expanded area under cultivation and improved yields.

Higher farm output would help expand manufacturing, which would also benefit from the increased availability of critical imported inputs. Large-scale manufacturing expanded in three of the first six months of 2024, the report highlighted.

According to the report, the relaxation of import restrictions, coupled with economic recovery, was expected to widen the current account deficit.

However, imports were expected to expand during the year as domestic demand strengthened and the stabilisation of the currency market made it easier for firms to import inputs. Thus, the current account deficit was projected to widen to 1.5pc of GDP in 2024.

The report pointed out that Pakistan would continue to face challenges from substantial new external financing requirements and the rollover of old debt, exacerbated by tight global financial conditions.

The ADB said tax collection increased by 29.5pc, as reforms in the personal income tax, higher taxes on property transfers, and the reintroduction of taxes on cash withdrawals from banks and the issuance of bonus shares raised direct tax collections.

Revenue mobilisation was expected to strengthen in the medium term, reflecting planned reforms to broaden the tax base, it added.

SOURCE: DAWN
 
Inflation results in business decline during Eid-ul-Fitr: Atiq Mir

Chairman of the All Karachi Tajir Ittehad Atiq Mir said that despite the bustling market activity, the level of shopping remained limited to a mere 40 percent of what was anticipated.

He said that Eid-ul-Fitr season 2024 remained more ‘disappointing’ for the traders as compared to the previous year.

Atiq Mir highlighted that Karachi, being the largest city in the country, witnessed immense difficulty for millions of people in purchasing new clothes for the festive occasion.

The All Karachi Tajir Ittehad chairman revealed that city traders were able to conduct business worth Rs 15 to 18 with a significant decrease from the previous year’s business of more than Rs 20 billion.

“Warehouses are reported to have accumulated 70 percent of the stock for sale on Eid-ul-Fitr,” Atiq Mir added.

He said that 90 percent of buyers were interested in buying cheap goods. He was of the view that 80 percent of purchases were made for women’s and children’s clothes and shoes.

Atiq Mir said that the purchasing power of buyers has been severely impacted by the alarming inflation rates, causing a significant decline in sales.

“The relentless inflation has taken a toll on the happiness of the people, casting a shadow over the festive season. Both big and small markets in Karachi kept eagerly awaiting buyers, hoping for a much-needed boost in business,” he added.

“As a result of these economic hardships, businessmen are finding it increasingly difficult to meet their business and household expenses,” Atiq Mir said

arynews.tv

Inflation results in business decline during Eid-ul-Fitr: Atiq Mir

Karachi: Traders in Karachi have termed the Eid-ul-Fitr season of 2024 as the most disappointing year in the city's 75-year history, blaming the rocketry
arynews.tv arynews.tv
 
Of course, the situation is already bad due to inflation. During Eid and Ramadan prices tend to double even more.
 
IMF chief says very important issues to be solved in Pakistan ahead of new programme

Pakistan is in discussions with the International Monetary Fund on a potential follow-up program to its nine-month, $3 billion stand-by arrangement, IMF chief Kristalina Georgieva said on Thursday, adding that it had important issues to solve.

Georgieva told an event at the Atlantic Council think tank, that Pakistan was successfully completing its existing program with the IMF and its economy was performing somewhat better, with reserves now being built up.

“There is a commitment to continue on this path, and the country is turning to the fund for potentially having a follow-up program,” Georgieva said, flagging issues that the struggling South Asian nation still needed to address.

“There are very important issues to be solved in Pakistan: the tax base, how the richer part of society contributes to the economy, the way public spending is being directed and of course, creating … a more transparent environment.”

Pakistan and the IMF last month reached a staff-level agreement on the second and last review of the $3 billion stand-by arrangement, which, if cleared by the global lender’s board, will release about $1.1 billion to the struggling South Asian nation. The IMF’s board is expected to review the matter in late April, but no firm date has been set, a spokesperson said.

Both sides have also spoken about negotiating a longer-term bailout and continuing with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.

Pakistan will discuss an Extended Fund Facility with the IMF in Washington this month, Finance Minister Muhammad Aurangzeb said in March.

Cash-strapped Pakistan’s standby $3 billion arrangement with the global lender expires on April 11, and the two sides reached a staff-level agreement regarding the disbursal of the final tranche of $1.1 billion earlier this week.

Pakistan plans to seek a new loan of at least $6 billion from the International Monetary Fund to help the incoming government repay billions in debt due this year, Bloomberg News reported in February, citing a Pakistani official.

The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expected to start in March or April.

Pakistan averted default last summer thanks to a short-term International Monetary Fund bailout, but the programme expires next month and a new government will have to negotiate a long-term arrangement to keep the $350 billion economy stable.



AAJ News
 

Pakistan repays US$1 billion in Eurobonds, says central bank​


Pakistan's central bank has repaid US$1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund.

The bond, launched in 2014 and repaid on Friday, was maturing this month.

"The payment was made to the agent bank for onward distribution to the bond holders," the central bank said in a statement.

Islamabad has been struggling with a balance of payments crisis, record inflation and steep currency devaluation since an IMF standby arrangement averted a sovereign default.

Finance Minister Muhammad Aurangzeb is due to leave on Sunday for Washington to attend the IMF-World Bank spring meeting, where he will start negotiations for Pakistan's 24th long-term IMF bailout.

Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF programme on Friday, the government said in a statement.

The IMF standby arrangement of US$3 billion Islamabad secured last summer expired on Thursday. Its final tranche of US$1.1 billion is expected to be released after the multilateral lender's board meets later this month.

The two sides have spoken in recent weeks about negotiating the longer-term bailout to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.

Pakistan is in discussions with the IMF for a potential follow-up programme, the IMF chief Kristalina Georgieva said on Thursday.

www.channelnewsasia.com

Pakistan repays US$1 billion in Eurobonds, says central bank

ISLAMABAD: Pakistan's central bank has repaid US$1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund. The bond, launched in 2014 and repaid on Friday, was maturing this month. "The paymen
www.channelnewsasia.com www.channelnewsasia.com
 
This Country Has Highest Living Cost In All Of Asia. Inflation Rate At 25%

Pakistan has the highest living cost in all of Asia with a 25 per cent inflation rate and its economy may grow at the fourth lowest pace of 1.9 per cent in the region, according to a new Asian Development Bank (ADB) report.

The report was released on Thursday in Philippines's capital Manila.

Pakistan's Express Tribune reported that, the Asian Development Outlook also painted a gloomy picture for the next fiscal year as well, projecting 15 per cent inflation rate for the next fiscal year - again the highest among 46 countries and a 2.8 per cent growth rate - the fifth lowest for FY 2024-25.

The Manila-based lending agency stated that the inflation rate in Pakistan is expected to be 25 per cent in the current fiscal year - the highest in all of Asia. This makes Pakistan the most expensive nation in Asia. Earlier, the cost of living in Pakistan used to be the highest in South Asia.

The State Bank of Pakistan (SBP) and federal government had set the inflation target at 21 per cent for this fiscal year but they are going to miss it despite inflicting huge losses in the shape of a 22 per cent interest rate.

The ADB said during the current fiscal year, the country's economic growth rate might remain at 1.9 per cent -- the fourth lowest after Myanmar, Azerbaijan and Nauru.

Pakistan is in a stagflation phase for a prolonged period and the World Bank too said last week that another 10 million more people might fall into the poverty trap because of any adverse shocks. About 98 million people are already living a poor life in Pakistan.

In the past, the ADB gave a rather optimistic economic scenario close to Pakistan's official forecasts.

However, the latest ADB report stated that Pakistan would continue to face challenges from substantial new external financing requirements and the rollover of old debt, exacerbated by tight global monetary conditions.

The Manila-based lender said political uncertainty that affected macroeconomic policy making would remain a key risk to the sustainability of stabilisation and reform efforts. It said with Pakistan's large external financing requirements and weak external buffers, disbursement from multilateral and bilateral partners remained crucial.

"Further IMF support for a medium-term reform agenda would considerably improve market sentiment and catalyse affordable external financing from other sources," the report added.

Finance Minister Muhammad Aurangzeb is set to meet the IMF Managing Director Kristalina Georgieva next week in Washington to request a new bailout package. The IMF MD said this week that Pakistan was in discussions for a potential follow up programme.

However, she said that there are "very important issues" to be solved in Pakistan: the tax base, how the richer part of the society contributed to the economy, the way public spending is being directed, and creating a more transparent environment.

The ADB said low confidence, a surge in living costs, and the implementation of tighter macroeconomic policies under the IMF programme would restrain domestic demand in Pakistan.

It said the government's goal was to achieve a primary surplus of 0.4per cent and an overall deficit of 7.5per cent of GDP in FY2024, with both declining gradually in subsequent years. However, the World Bank said last week that Pakistan would miss both these budget targets, reported The Express Tribune.

www.ndtv.com

This Country Has Highest Living Cost In All Of Asia. Inflation Rate At 25%

This country has the highest living cost in all of Asia with a 25 per cent inflation rate and its economy may grow at the fourth lowest pace of 1.9 per cent in the region, according to a new Asian Development Bank (ADB) report.
www.ndtv.com www.ndtv.com
 
PM Shehbaz lauds Saudi help in times of need

Prime Minister Shehbaz Sharif has lauded Saudi Arabia’s help for Pakistan in times of need, saying it was a testament to the kingdom’s deep love and affection.

While addressing a ceremony to lay the foundation stone of the Seerat Museum in Islamabad on Saturday, the PM said during his visit to the kingdom earlier this month, Crown Prince Mohammed bin Salman agreed to extend cooperation with Pakistan in the fields of trade, investment, agriculture and industry.

PM Shehbaz said a high-level Saudi Arabian delegation would visit Pakistan soon, adding that the kingdom’s leadership “exhibited deep love and affection for Pakistan”.

He thanked Saudi Arabia’s King Salman bin Abdul Aziz and the crown prince for extending support for the Seerat Museum.

“People of Pakistan would never forget the adoration of Saudi Arabia’s leadership,” the PM said, adding that landmarks like the Faisal Mosque in Islamabad were a testament to the friendship.

While talking about the Seerat Museum, the PM said it would help counter adverse effects of Islamophobia and spread knowledge about the teachings and life of the Holy Prophet (Peace Be Upon Him).

The prime minister said ideological divides had been created in the world, resulting in negative propaganda against Islam and the Holy Prophet (PBUH).

“This negative attitude had created hate and divisions,” he remarked, adding that the museum would raise awareness about the life, character and teachings of the Holy Prophet (PBUH) and educate people on how to live their lives.

During his address, the PM surprised the audience by delivering part of his speech in Arabic. He welcomed the visiting delegation and said Pakistan was “their second home”.

Earlier, the PM lauded Muslim World League (MWL) Secretary General Sheikh Dr Mohammad bin Abdul Karim Al-Issa for his guidance and support for the Seerat Museum project.

While welcoming the Saudi delegation led by Dr Al-Issa, the prime minister reiterated Pakistan’s continued support for and partnership with the MWL.

Dr Al-Issa had called on Mr Sharif at the Prime Minister’s House on Saturday and discussed matters of mutual interest.

PM Sharif also appreciated the International Islamic Relief Organisation — a charity founded by the MWL — for its welfare work around the world.

He appreciated the valuable contributions and services of Dr Al-Issa for promoting the true image of Islam around the world.

He also acknowledged the critical role of MWL in developing unity among the Ummah, advocating for Muslim causes around the world, and spreading the message of peace, tolerance, and interfaith harmony.

The MWL secretary general praised the prime minister for his commitment and efforts to further strengthen ties between Pakistan and Saudi Arabia. He congratulated the prime minister on the success of his recent visit to Saudi Arabia.

SOURCE: DAWN
 
FearlessRoar said:

Pakistan repays US$1 billion in Eurobonds, says central bank​


Pakistan's central bank has repaid US$1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund.

The bond, launched in 2014 and repaid on Friday, was maturing this month.

"The payment was made to the agent bank for onward distribution to the bond holders," the central bank said in a statement.

Islamabad has been struggling with a balance of payments crisis, record inflation and steep currency devaluation since an IMF standby arrangement averted a sovereign default.

Finance Minister Muhammad Aurangzeb is due to leave on Sunday for Washington to attend the IMF-World Bank spring meeting, where he will start negotiations for Pakistan's 24th long-term IMF bailout.

Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF programme on Friday, the government said in a statement.

The IMF standby arrangement of US$3 billion Islamabad secured last summer expired on Thursday. Its final tranche of US$1.1 billion is expected to be released after the multilateral lender's board meets later this month.

The two sides have spoken in recent weeks about negotiating the longer-term bailout to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.

Pakistan is in discussions with the IMF for a potential follow-up programme, the IMF chief Kristalina Georgieva said on Thursday.

www.channelnewsasia.com

Pakistan repays US$1 billion in Eurobonds, says central bank

ISLAMABAD: Pakistan's central bank has repaid US$1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund. The bond, launched in 2014 and repaid on Friday, was maturing this month. "The paymen
www.channelnewsasia.com www.channelnewsasia.com
Click to expand...
This was trading at 40-45 cents on the dollar just 6 months ago. Folks who dared to buy in then would've more than doubled their money. Wonder if the likes of the Sharifs cashed in. They would know Pakistan didn't intend to default.

I think Pakistan's slowly winning back the confidence of the markets with this year and a half of stability and adherence to the IMF program. They should be able to borrow from the market again once interest rates start dropping soon which even if very burdensome on the tax payers will give the economy some breathing space.
 
Finance Minister Muhammad Aurangzeb arrived in Washington on Sunday with his team to participate in the IMF and World Bank’s spring meetings and initiate talks on a new financial package ranging from $6 billion to $8 billion.

The IMF ministerial meetings and events are scheduled for April 17-19, with additional activities planned from April 15-20.

Mr Aurangzeb and his team have a packed schedule, including bilateral meetings with IMF and World Bank leaders, as well as senior officials from various international financial institutions. They will also hold discussions with finance ministers from China, Saudi Arabia, UAE, Turkiye, and other friendly nations attending the event.

Representing Pakistan at multilateral meetings, they are also expected to meet US officials, given the meetings are held in Washington.

Meanwhile, IMF Managing Director Kristalina Georgieva mentioned that Pakistan still has crucial issues to resolve, acknowledging the country’s interest in a new loan arrangement.

This signifies the potential for a follow-up programme with the Fund after completing the current $3 billion stand-by arrangement later this month, as prime minister previously indicated the necessity for another deal with the IMF to stabilise Pakistan’s economy.

Earlier this month, IMF’s Director of Communications Julie Kozack noted Pakistan’s interest in securing its largest loan facility yet and expressed readiness to engage in programme discussions in the coming months.

The IMF is also expected to finalise the disbursement of the last tranche of $1.1 billion from the existing arrangement during the spring meetings.

Pakistan’s Ambassador Masood Khan and officials from the Pakistan embassy welcomed the finance minister at the airport.

Source: Dawn News
 
Foreign suppliers allowed to register businesses in Pakistan

After certain amendments in the Customs Rules 2001, the FBR issued a notification allowing foreign suppliers to register their businesses in the country.

As per the FBR’s notification, the foreign supplier will have the opportunity to establish their registered business and also have the option to set up a subsidiary company in Pakistan.

The suppliers will be authorized to import crude oil and other petroleum products as well for sale in both the local and international markets.

The authorities in Pakistan will also provide the services – including customs-bonded storage facilities, and warehouses for imported goods across the country – aiming to facilitate foreign suppliers and ensure the smooth flow of business operations.

The document further stipulated that the dues for warehouse rent, port fees, and other related services would be charged in dollars through official banking channels. It also instructed that Foreign Supplies Subsidiaries must adhere to the guidelines provided by the State Bank and Customs authorities.

Earlier in the day, the FBR has announced extension in deadline for filing income tax returns till April 22, 2024.

The FBR in a notification announced that April 18 deadline has been extended up to April 22, 2024 “in view of demands of trade bodies”.

The bureau urged citizens, who had not yet filed their income tax returns, to take advantage of this opportunity.

The extension aims to streamline the tax filing process and provide individuals and businesses with ample opportunity to fulfill their tax obligations without facing undue pressure.

The tax has completed preparations for action against tax evaders, it emerged earlier.

According to FBR sources, within a few days, final notices will be issued to tax evaders, traders, and industrialists, who will also be sent notices.

arynews.tv

Foreign suppliers allowed to register businesses in Pakistan

In a move for additional revenue in the national exchequer, the Federal Bureau of Revenue (FBR) allowed foreign suppliers to register businesses in
arynews.tv arynews.tv
 
These won't be European companies, they must be Chinese or Saudi Arabian.
 
Pakistan, IMF discussing new multi-billion-dollar programme, says finance czar

Pakistan has initiated discussions with the International Monetary Fund (IMF) over a new multi-billion dollar loan agreement to support its economic reform program, said Finance Minister Muhammad Aurangzeb.

The country is nearing the end of a nine-month, $3 billion loan programme with the IMF designed to tackle a balance-of-payments crisis which brought it to the brink of default last summer.

With the final $1.1 billion tranche of that deal likely to be approved later this month, Pakistan has begun negotiations for a new multi-year IMF loan programme worth "billions" of dollars, Aurangzeb said during an interview in Washington.

"The market confidence, the market sentiment is in much, much better shape this fiscal year," said the minister, a former banker who took up his post last month.

"It's really for that purpose that, during the course of this week, we have initiated the discussion with the Fund to get into a larger and an extended programme," he added.

An IMF spokesperson told AFP that the Fund is "currently focused on the completion of the current Stand-by Agreement programme," referring to the ongoing nine-month program scheduled for completion shortly.

"The new government has expressed interest in a new programme, and Fund staff stands ready to engage in initial discussions on a successor programme," the spokesperson added.

During his visit to Washington, Aurangzeb will also attend the spring meetings organised by the IMF and World Bank, which kick off in earnest Tuesday, with two clear objectives: to help countries combat climate change, and to assist the world's most indebted nations.

The meetings -- which bring central bankers together with finance and development ministers, academics, and representatives from the private sector and civil society to discuss the state of the global economy -- will kick off with the IMF's publication of its updated World Economic Outlook.

Pakistan held elections in February this year which were marred by allegations of rigging, with PTI chief Imran Khan jailed and barred from running, and his party subject to a crackdown.

The shaky coalition that emerged, led by Shehbaz Sharif, is now tasked with engineering an economic turnaround by implementing a raft of unpopular belt-tightening measures.

"I do think that we will at least be requesting for a three-year programme," Aurangzeb said. "Because that's what we need, as I see it, to help execute the structural reform agenda."

"By the time we get to the second or third week of May, I do think we'll start getting into the contours of that discussion," he added.

Pakistan has close economic ties to both the United States and China, which has put it in a tricky position as the two countries have embarked upon a costly trade war.

"From our perspective it has to be an and-and discussion," Aurangzeb said when asked how the Shehbaz government plans to conduct its trading relationships with the world's two largest economies.

"[The] US is our largest trading partner, and it has always supported us, always helped us in terms of the investments," he said. "So that is always going to be a very, very critical relationship for Pakistan."

"On the other side, a lot of investment, especially in infrastructure, came through CPEC," he said, referring to the roughly 1,860-mile-long China-Pakistan Economic Corridor designed to give China access to the Arabian Sea.

Aurangzeb said there was a "very good opportunity" for Pakistan to play a similar role in the trade war as countries like Vietnam, which has been able to dramatically boost its exports to the US following the imposition of tariffs on some Chinese goods.

"We have already a few examples of that already working," he said. "But what we need to do is to really scale it up."

As part of the structural reform programme agreed to by the previous government, Pakistan is in the middle of a privatization drive to sell off its poorly performing state-owned enterprises (SOEs).

The first SOE on the list is Pakistan International Airlines (PIA), the country's flag carrier.

"We will get to know in the next month or so with respect to interest from prospective bidders," Aurangzeb said.

"Our desire is to go through with that privatization and take it through the finishing line by the end of June," he added. If the PIA privatization goes well for the government, other companies could soon follow.

"We're creating an entire pipeline," he said, adding: "Over the next couple of years we want to really accelerate that."

At the same time, the IMF Managing Director Kristalina Georgieva listed tax base, more contributions from the rich, and transparency in public spending among the important issues to be solved by Pakistan to boost its economy for a follow-up programme.

“There are very important issues to be solved in Pakistan: the tax base, how the richer part of society contributes to the economy, the way public spending is being directed and of course, creating ... a more transparent environment,” she said.

“The country is turning to the fund for potentially having a follow-up programme and there is a commitment to continue on this path,” Georgieva added.

Last month, Pakistan and the IMF reached a staff-level agreement on the second and last review of the SBA, which, if cleared by the IMF board, would release about $1.1 billion to Islamabad.

Pakistan’s external financing requirements for the next fiscal year would hover above $25 billion, which the country plans to bridge with the help of all the multilateral and some bilateral creditors.

SOURCE: EXPRESS TRIBUNE
 
Telenor’s Norwegian CEO Sigve Brekke has said that the business environment in Pakistan poses significant challenges and that is one of the reasons behind the company’s decision to exit the market.

In a recent interview, Brekke highlighted the difficulties of repatriating profits as a critical factor influencing investor decisions to leave the country. However, he contrasted this with Telenor’s situation in Bangladesh, where the company continues to repatriate dividends successfully.

In the past two decades, Telenor invested in Pakistan, India, Bangladesh, and Myanmar.

However, it merged its business in India with Airtel due to several reasons and sold its Myanmar unit after the military junta took over. It also merged its businesses in Thailand and Malaysia.

In December 2023, Telenor announced the sale of its Pakistan operations to Pakistan Telecommunication Company Limited (PTCL).

In contrast, the Telenor CEO said that the company has no plans to pull investment from Bangladesh or merge its Bangladesh unit Grameenphone with others.

“It’s very challenging to do business in Pakistan right now. That’s one of the reasons why we have decided to exit,” Brekke said.

“If an investor cannot repatriate profit from a country, then the investor probably will, over time, leave. But that’s not the case for us in Bangladesh. We are taking out dividends,” he added.

Source : Profit
 
World Bank demands tax reforms from Pakistan

The World Bank released its report on Pakistan and suggested the government of the urgent need for tax system reforms and the elimination of sales tax exemptions to promote economic and social improvement.

The report calls upon the government of Pakistan to establish a national policy for the child development and advocates for reducing subsidies on energy and other commodities, while suggested to reallocate these funds towards public welfare initiatives.

“Government should implement austerity measures and promote public-private partnership in govt owned companies,” the report suggested.

The report of World Bank suggested the Pakistani government to restructure the tax system and abolish the exemptions of duty and sales tax and hinted to impose new taxes on real estate and agriculture industry.

Apart from this, it is also suggested to formulate a long-term commercial tariff strategy and align the gas tariff for consumers with the cost of supply.

Last year, the World Bank revealed that Pakistan is collecting lesser tax than its actual capacity.

Pakistan is falling short of Rs737 billion in tax collection, the World Bank said in its report and urged Islamabad to close all tax exemptions to release the burden of debts.

The WB has suggested Pakistan to increase tax incomes from agriculture, properties and retail businesses to generate additional revenue. Two major areas in the provincial jurisdiction — real estate and agriculture — had most of the untaxed wealth, which should be taxed by the provincial governments, the international lender said.

The real estate sector is also paying Rs402 billion tax in Pakistan than its actual capacity, the report said.

arynews.tv

World Bank demands tax reforms from Pakistan

ISLAMABAD: The World Bank has put forth major demands for tax reforms from the Pakistani government and eliminating the exemptions on duties and sales
arynews.tv arynews.tv
 

IMF says ready to support Pakistan, reforms package more important than size of programme​


The International Monetary Fund (IMF) is ready to support Pakistan and the package of reforms is now more important than the size of a new programme, the fund’s Middle East and Central Asia director said on Thursday.

“I think what is important at this stage is to accelerate the reforms, double down on the structure of reforms in order to provide Pakistan with its full potential of growth,” Jihad Azour told a press conference on the sidelines of the IMF 2024 Spring Meetings.

Finance Minister Muhammad Aurangzeb is currently in Washington to attend the spring meetings organised by the IMF and the World Bank (WB).

Aurangzeb stated earlier that Pakistan had initiated discussions with the Fund over a new multi-billion dollar loan agreement to support its economic reform programme, adding that the country will at least be requesting a three-year programme.

Significant rupee devaluation not expected in IMF negotiations
Aurangzeb has stated that the government does not expect significant rupee devaluation as part of negotiations with the IMF, according to a report by Bloomberg.

In an interview with Bloomberg published today, the minister said there would be no reason for the rupee to depreciate more than the range of about 6 per cent to 8pc seen in a typical year.

“Pakistan last devalued its currency in January 2023,” the report noted.

He said that while massive devaluations had accompanied some of Pakistan’s previous IMF loans and are often a condition of the crisis lender’s programmes around the world, nothing comparable should be necessary this time around.

“I don’t see the need for any step change,” Aurangzeb said, citing solid foreign exchange reserves, a stable currency, rising remittances and steady exports. “The only thing which can be a wild card, although in our projections we should be okay, is the oil price,” he said.

He said that the government was looking to bolster industries, including agriculture and information technology, hoping it would help push the nation’s growth above 4pc in the coming years.

The report further said that Pakistan faced about $24 billion in external financing needs in the fiscal year starting July, adding that Aurangzeb said Pakistan was in a “relatively good shape” to make those payments.

He further said that Pakistan expected an IMF mission to visit in May and would like to reach a staff-level agreement on the next loan by the end of June or early July, without specifying how much the country was seeking.

US diplomats reaffirm commitment to bolster ties with Pakistan​

Earlier, Aurangzeb also held a meeting with US State Department officials Donald Lu and Elizabeth Horst, during which the latter reaffirmed Washington’s commitment to bolster ties between the two countries.

A statement issued by the finance ministry early on Wednesday said US Assistant Secretary of State Lu, and US Principal Deputy Assistant Secretary and Deputy Assistant Secretary for Pakistan Horst met the finance minister at the WB headquarters in the US capital, “reaffirming Washington’s commitment to bolster Pak-US ties”.

The ministry said that the meeting focused on upgrading economic partnerships, with an emphasis on alternate energy, agriculture, climate resilience and the tech industry.

Aurangzeb briefed the US diplomats about Pakistan’s reform agenda, which includes broadening the tax base, streamlining the energy sector and privatisation.

“Identified American investment opportunities in information technology, renewables, agriculture and minerals extraction. Pakistan pledges close collaboration with US International Development Finance Corporation & Exim Bank for mutual development,” the finance ministry said.

Earlier, the finance minister also met with the WB-IMF Pakistan Staff Association and briefed them about the country’s reform agenda.

The finance ministry said the meeting focused on the expansion of the tax base, energy sector reforms, digitalisation, privatisation, promotion of public-private partnerships, and strict adherence to fiscal discipline to “revive Pakistan’s economy and drive sustainable growth”.

Aurangzeb pledges aggressive reforms at IMF meeting
In a meeting with the IMF chief and some members of its board of governors, the finance minister had reaffirmed Pakistan’s resolve to carry out “aggressive reforms” to stabilise its economy.

These discussions were part of a meeting of Middle East and North Africa (MENAP) ministers and governors with IMF Managing Director Kristalina Georgieva held on Tuesday.

Aurangzeb “underscored aggressive reforms, including broadening the tax net, privatising loss-making SOEs, expanding social safety nets and facilitating the private sector,” his team said in a statement issued a day after the meeting.

The minister underscored the implications of geo-economic fragmentation on Pakistan and expressed gratitude to the IMF, multilateral development banks, and “time-tested sincere bilateral partners” for their unwavering support during these trying times.

He stressed the significance of reallocating a nation’s special drawing rights (SDRs) within the IMF to tackle economic hurdles effectively. Additionally, he highlighted the necessity of reassessing surcharge policies and giving precedence to the IMF’s Resilience and Sustainability Trust (RST) to address climate vulnerabilities.

The IMF’s RST has been in operation for more than a year, with the initial 17 countries securing commitments of financial assistance. Pakistan, identified as a low emitter yet severely impacted by climate change, is also seeking aid from this fund.

Advocating for a more proactive and responsive Global Financial Safety Net to address heightened risks, the minister applauded the IMF’s renewed focus on Capacity Building through Regional Capacity Development Centres (RCDCs).

The minister advocated for a proactive global financial safety net to address heightened risks and appreciated the IMF’s renewed emphasis on capacity-building through regional capacity development centres. He also stressed the importance of collaborative efforts for sustainable economic development.

Pakistan, in pursuit of another long-term package — its 24th thus far — from the IMF, has formulated a comprehensive economic recovery plan. This plan encompasses three primary components: taxation, energy, and streamlining the privatisation of state-owned enterprises (SOEs), including PIA.

The IMF board is scheduled to convene on April 29 to deliberate on releasing the final tranche of its current programme with Pakistan. Subsequently, discussions between IMF staff and Islamabad regarding the new package are anticipated to commence.

During Tuesday’s meeting, the IMF acknowledged Pakistan’s progress in meeting its conditions, while Pakistani officials advocated for a new plan tailored more specifically to Pakistan’s needs.
www.dawn.com

IMF says ready to support Pakistan, reforms package more important than size of programme

Fund's Middle East and Central Asia director says it is important to accelerate reforms and double down on their structure.
www.dawn.com
 
Will personally monitor Saudi investment projects, no laxity to be tolerated: PM Shehbaz

Prime Minister Shehbaz Sharif on Thursday said he would personally monitor the completion of projects with Saudi investment, adding that negligence regarding these ventures was not acceptable.

Chairing a meeting in Islamabad to review matters related to the visit of a recent high-powered Saudi delegation and Saudi investment in different sectors, the premier said the trip under the leadership of the Saudi foreign minister was the beginning of a “new era of commercial and strategic partnership” between the two countries, according to a statement from the Prime Minister’s Office.

The meeting’s participants were briefed that the Saudi delegation discussed investment in mining and minerals, agriculture, energy, information technology and infrastructure development.

They were also told that both sides had deliberated on making Pakistan a part of the global supply and value chain while the Saudi delegation had also praised Pakistan’s preparedness.

The participants termed the arrival of delegations of friendly countries for foreign investment as a “positive development” for the current government’s diplomatic front.

The prime minister directed all the concerned ministries and departments to pay special attention to government-to-government agreements and business-to-business projects, adding that the local business community should be taken into confidence regarding the matters.

He thanked Saudi Arabian Crown Prince Mohammed bin Salman for his “special attention that would usher in a new era of Saudi investment in Pakistan, trade partnership and business ties”.

PM Shehbaz lauded the relevant federal ministers, Special Investment Facilitation Council (SIFC) and relevant senior officers for their efforts to convert the Saudi delegation’s visit into a mutually beneficial partnership.

He instructed that the services of world-renowned experts should be taken to complete the international investment projects.

The prime minister warned that any negligence regarding international investment projects would not be accepted, adding that outdated procedures and red tape would “not work at all”.

He said that the SIFC, the investment board and relevant ministries should formulate a plan of action for the completion of the projects.

The premier said that the expected arrival of a delegation of well-known businessmen from Saudi Arabia was a welcome development, adding that more investment opportunities were to be finalised during his visit to Saudi Arabia to attend the World Economic Forum.

He added that the two countries enjoyed cordial brotherly ties, adding that Saudi Arabia had always helped Pakistan when needed.

PM Shehbaz said that Pakistan would take all possible measures to achieve the goal of national development and prosperity.

Meeting with EU ambassador

In a separate meeting held today, the premier met the Ambassador of the European Union in Pakistan Riina Kionka in the capital and discussed matters of mutual concern.

The prime minister thanked the EU leaders for their congratulatory messages on his re-election and said he looked forward to working closely with the EU.

He said Pakistan enjoyed friendly and cordial ties with the EU and expressed satisfaction at the existing institutional mechanisms that were meeting regularly to exchange views on further strengthening cooperation.

The prime minister appreciated, in particular, the EU’s continued support to Pakistan through the GSP Plus scheme, which has now been renewed till 2027.

He also expressed Pakistan’s interest in engaging constructively with the EU Global Gateway Strategy through the European Investment Bank.

The prime minister sought EU support in providing consultancy and expertise to help Pakistan carry out important reforms in various sectors.

The EU ambassador briefed the prime minister on various cooperation initiatives, including the ongoing dialogue on migration and mobility issues between the two sides, as well as facilitating European businesses operating in Pakistan.

Progress on resumption of flights from Pakistan to EU countries was also discussed.

Defence, information minister criticise PTI for Saudi remarks

Meanwhile, Defence Minister Khawaja Asif said that it was unfortunate that parties attempted to disrupt Pakistan’s foreign relations for political gain, especially with a country that holds “religious and economic importance”, referring to Saudi Arabia.

He said that such remarks were given by the parties to spread anarchy for personal political motives of dissuading investment in Pakistan.

Separately, Information Minister Attaullah Tarar said that anyone who talked against these investment efforts was an “enemy of the state”, adding that the country was moving towards development.

He stated that it was not appropriate to go against Pakistan while opposing a party for political reasons.

“Criticise us, criticise us on our politics, criticise the party, criticise me but criticism on Pakistan is intolerable,” he said.

Their remarks came a day after the PTI censured and distanced itself from remarks by party leader Sher Afzal Marwat regarding Saudi Arabia’s alleged involvement in the toppling of former prime minister Imran Khan’s government in 2022.

In an interview on GTV news programme G for Gharidah on Tuesday, Marwat had said: “These are the two countries, Saudi Arabia and the United States, with whose cooperation the regime change operation took place.”

SOURCE: DAWN
 
Pakistan’s weekly inflation dips by 0.79 percent

The weekly inflation measured by the Sensitive Price Indicator (SPI), witnessed a decrease of 0.79 percent for the combined consumption groups during the week ended on April 18, the Pakistan Bureau of Statistics (PBS) reported on Friday.

According to the PBS data, during the week, out of 51 items, prices of 22 items increased, 11 items decreased and 18 items remained stable.

The items that recorded an increase in their average prices on a week-on-week basis included potatoes (17.07 %), tomatoes (12.67%), chicken (11.60%), diesel (2.87%), Sugar (1.10%), Garlic (2.88%), Beef (2.56%).

The items, which recorded a decrease in their average prices on a week-on-week basis included Flour (8.97%), bananas (8.67%), eggs (6.67%), onions (1.40%), cooking oil (0.45%), Ghee (0.34%), and LPG (2.84%).

It is worth mentioning here that the foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by 14.4 million to $8.055 billion in the week ending April 12, the State Bank of Pakistan said.

“During the week, SBP has executed the repayment of US$ 1 billion maturing Pakistan’s International Bond (principal plus interest),” it said in a weekly statement.

However, the country’s total reserves fell by $68 million to $13.374 billion. Similarly, the reserves of commercial banks decreased by $82 million to $5.319 billion.

Pakistan and the IMF last month reached a staff-level agreement on the second and last review of the $3 billion stand-by arrangement, which, if cleared by the global lender’s board, will release about $1.1 billion to the country.

arynews.tv

Pakistan's weekly inflation dips by 0.79 percent

ISLAMABAD: The weekly inflation measured by the Sensitive Price Indicator (SPI), witnessed a decrease of 0.79 percent for the combined consumption groups
arynews.tv arynews.tv
 
This Ramadan, I remember I went out to bring some food items for iftar. Outside a big shopping mall, there was a stall, and they were selling pakoras for 700 Rs per kg.
 
Pakistan aims to agree outline of new IMF loan in May: Aurangzeb

According to the finance minister, the government has kicked off talks with ratings agencies to lay the groundwork for a return to international debt markets.

The country’s current $3 billion arrangement with the fund runs out in late April and the government is seeking a longer and bigger loan to help bring permanence to macroeconomic stability as well as an umbrella under which the country can execute much needed structural reforms, the minister said.

“We expect the IMF mission to be in Islamabad around the middle of May – and that is when some of these contours will start developing,” said Aurangzeb, who met with the Fund’s Managing Director Kristalina Georgieva on Wednesday during the International Monetary Fund and World Bank Spring Meetings.

He declined to outline what size programme the government hoped to secure, though Pakistan is expected to seek at least $6 billion.

Aurangzeb added that once the IMF loan was agreed, Pakistan would also request additional financing from the Fund under the Resilience and Sustainability Trust.

The country had managed to accumulate foreign exchange reserves in recent months and was on track for its war chest to hit $10 billion – or roughly two months import cover – by end-June.

The debt situation also looked more benign, Aurangzeb said.

“The bulk of our bilateral debt – including our China debt – is being rolled over, so in that sense I think we are in good shape and I don’t see a big issue during this fiscal year nor next fiscal year, cause we need to repay roughly $25 billion dollars every fiscal year.”

Pakistan also hopes to come back to international capital markets, possibly with a green bond. However, there was some more work to be done before that happens, said Muhammad Aurangzeb.

“We have to come back into a certain ratings environment,” he said, having kicked off talks with ratings agencies, adding the government was hoping to get an improvement in its sovereign rating in the next fiscal year.

“In all likelihood, any international capital markets issuance will likely be in the 2025/2026 fiscal year.”

arynews.tv

Pakistan aims to agree outline of new IMF loan in May: FinMin Aurangzeb

WASHINGTON: Pakistan hopes to agree the contours of a new International Monetary Fund (IMF) loan in May, Finance Minister Muhammad Aurangzeb told Reuters.
arynews.tv arynews.tv
 
The World Bank has put forth major demands for tax reforms from the Pakistani government and eliminating the exemptions on duties and sales tax, ARY News reported on Thursday.

The World Bank released its report on Pakistan and suggested the government of the urgent need for tax system reforms and the elimination of sales tax exemptions to promote economic and social improvement.

The report calls upon the government of Pakistan to establish a national policy for the child development and advocates for reducing subsidies on energy and other commodities, while suggested to reallocate these funds towards public welfare initiatives.

“Government should implement austerity measures and promote public-private partnership in govt owned companies,” the report suggested.

The report of World Bank suggested the Pakistani government to restructure the tax system and abolish the exemptions of duty and sales tax and hinted to impose new taxes on real estate and agriculture industry.

Apart from this, it is also suggested to formulate a long-term commercial tariff strategy and align the gas tariff for consumers with the cost of supply.

Last year, the World Bank revealed that Pakistan is collecting lesser tax than its actual capacity.

Pakistan is falling short of Rs737 billion in tax collection, the World Bank said in its report and urged Islamabad to close all tax exemptions to release the burden of debts.

The WB has suggested Pakistan to increase tax incomes from agriculture, properties and retail businesses to generate additional revenue. Two major areas in the provincial jurisdiction — real estate and agriculture — had most of the untaxed wealth, which should be taxed by the provincial governments, the international lender said.

The real estate sector is also paying Rs402 billion tax in Pakistan than its actual capacity, the report said.

Source: Ary News
 
Pakistan sweetens terms to lure Saudi investment

Pakistan has presented the enticing prospect of highly profitable returns to attract Saudi investment, with projected rates ranging from an appealing 14% to an astounding 50%. Additionally, Pakistan has assured priority in the repatriation of profits without any hindrances.

According to government sources involved in these discussions, the indicated returns on Saudi investment are expected to allow the Kingdom to recoup its invested capital within a period of three to nine years, depending on the nature of the project.

Pakistan aims to advance the Saudi Arabia investment initiative during the April 27-28 visit of Prime Minister Shehbaz Sharif, who will be accompanied by a team from the Special Investment Facilitation Council (SIFC).

During their two-day visit to Pakistan, the Saudi delegation asked maximum questions about projects in the areas of agriculture, mining and Diamer Basha dam, said the sources. These are the areas where the government has indicated maximum returns on the investment.

Although initially eying on a $25 billion bonanza, Pakistan has now adjusted its expectations to a $5 billion investment by June 2025.

One of the concerns of Saudi Arabia was that Pakistan was withholding the repatriation of profits due to external sector liquidity constraints. However, Pakistan assured that Saudi investors would get priority in repatriation of profits, said the sources.

Prime Minister Shehbaz Sharif has already given instructions to the State Bank of Pakistan (SBP) to give Saudi Arabian companies preference in repatriation of the profits.

Pakistan allowed $694 million repatriation of the profits during the first eight months of this fiscal year, which was more than double compared to the previous fiscal year but it was still $900 million less than the pre-crisis period.

Despite a liberal and attractive investment regime, Pakistan’s annual foreign direct investment has remained in the range of $1.5 billion to $2 billion. It had earlier offered special incentives to Beijing under the China-Pakistan Economic Corridor (CPEC) that resulted in a total of $25 billion Chinese inflow, mostly in the shape of loans and a component of investment

While appearing at Express News programme The Review –Pakistan’s only dedicated show on economic affairs – Bilal Azhar Kayani the Member National Assembly of the PML-N, said that the indicated Internal Rate of Returns (IRR) are based on the assumption of the potential investments.
He said that these indicative numbers should not be construed as offers, as the actual returns on the investments would be decided during the technical negotiations.

The maximum 50% return on the investment has been indicated for the Greenfield Mine Development, Khuzdar, project, which is said to be the third largest mining project after Reko Diq and Thar coal, according to the sources.

The government has estimated an initial investment of $154 million and with the 50% IRR, the payback period is projected at five years.

Pakistan has also indicated higher returns on investment in the agriculture sector. It has offered Saudi Arabia to set up a cattle farm in Punjab for 30,000 animals with an annual production of six thousand tons of meat. The initial indicated size of investment is over $25 million and the payback period is just three years with a 34% return on the investment.

The sources said that Saudi Arabia was also interested in getting agricultural land on lease but the details have yet to be finalized. Pakistan pitched Saudi Arabia to acquire 50,000 acres of land on lease for corporate farming.

A government official said that the Saudi Agricultural and Livestock Investment Company (SALIC) showed interest in the project and a memorandum of understanding could be signed during the next week's visit of Prime Minister Shehbaz Sharif to the Kingdom.

The government has indicated a 22% return on the investment in corporate farming with a payback period of only six years, said the sources. The sources said that due to the lack of availability of water corporate farming cannot begin for at least one and a half year.

The profitability for the majority of the projects is estimated in the range of 14% to 15% with some falling in the profitability of 19-20%, said the sources.

The semiconductor development and Chip packaging project is also pitched for Saudi investment of $270 million with an indicated profitability of 17%, said the sources. This project will have a payback period of seven years, they added.

The sources said that Pakistan has indicated that it would dilute 25% shares of the Reko Diq project to Saudi Arabia, which are currently held by three federal government-owned companies. The project is highly capital-intensive.

A $2 billion project for a strategic rail link development connecting Reko Diq mines with Gwadar port has also been offered to Saudi Arabia.

Pakistan has indicated a 20% return on around $1.5 billion investment in the development of the Iron Ore Mining and Steel Mills Complex at Chiniot, Punjab. The project will have a payback period of 9 years, said the sources.

Despite surplus electricity, the government has offered Saudi Arabia to set up a 600MW Solar Park at Kot Adu, Punjab with a $300 million equity investment. The indicated return on the investment is 13-14%, which Pakistani authorities said can be further negotiated.

The government also wants Saudi investment in a 1320 MW Thar Coal power project on a cost-plus tariff basis despite the country not needing any new investment in the power sector. There will be guaranteed dispatch and a 14% return over the investment cost, said the sources. The project will also get tax exemption and protection from political force majeure.

A $680 million transmission line project has also been offered to Saudi Arabia with a 14% return on investment and a payback period of seven years, said the sources.

SOURCE: EXPRESS TRIBUNE
 
Pakistan spends one billion US$ on wheat import this year

The country has imported 3.4 million tonnes of wheat from July to March during the ongoing fiscal year, Pakistan Bureau of Statistics (PBS) sources said.

The Economic Coordination Committee (ECC) had allowed the government in July 2023 to import wheat to fill likely shortfall of the grain.

Pakistan, an agro-based economy produced 27 million tonnes of wheat for domestic consumption in current year, while it was required 31 million tonnes of the grain to feed its population.

The country was facing an estimated shortfall of 2.5 million tonnes of wheat, which is staple food of most of the countrymen.

Earlier, a report of the Auditor General pointed out that the Trading Corporation of Pakistan (TCP) and the PASSCO imported expensive wheat resulting in billions of rupees losses to the national exchequer.

The people had to purchase the wheat flour on very expensive price, the Auditor General disclosed in the annual report.

The report also pointed out that the private sector imported wheat on cheaper price than the TCP and the PASSCO.

According to the report the national exchequer suffered 31.32 million US dollars loss owing to wheat import on inflated rates.

The audit report focussed on the import data of wheat from Year 2017 to 2022.

arynews.tv

Pakistan spends one billion US$ on wheat import this year

ISLAMABAD: Pakistan imported one billion US dollars' wheat in first nine months of the current financial year, citing PBS sources, ARY News reported on
arynews.tv arynews.tv
 
Being an agricultural country, we have been importing wheat. What will be the consequences of this now?
 

Aurangzeb optimistic about larger bailout program from IMF​


Federal Minister for Finance and Revenue Muhammad Aurangzeb on Saturday expressed the expectation of larger bailout programme from the International Monetary Fund (IMF) and considered improving the revenue distribution between the provinces and the Center.

Speaking to a group of journalists and think-tanks in Washington, the minister said, if the loan is approved, Islamabad would revisit its NFC award that allocates revenues between the federation and the provinces. He said that some of the sectors which need to be brought in a much bigger way into the tax net were provincial markets.

Pakistan is requesting a “larger and longer” multi-billion-dollar loan programme from the IMF and discussions are underway with the Fund’s officials, the finance minister said, without specifying how much the nation was trying to secure.

Aurangzeb, who is in the US capital with his team to participate in the IMF and World Bank’s meetings and request new financial package, said once the mission is back in Islamabad, we are going to agree on the priorities and the principles.

“I believe it is Pakistan’s programme. It is not an IMF programme. It is a Pakistan’s programme and it is supported, assisted and funded by the IMF. What’s the size, and the reality and where we are, it’s premature to talk about that. We have our own views and we’ll share it with IMF. But I would rather leave it to the joint meetings in terms of the size and the duration of the programme,” Aurangzeb said.

Asked by TRT World if Islamabad would revisit its National Finance Commission (NFC) award for the allocation of revenues between the federation and the provinces once IMF approves the new loan programme, Aurangzeb said, Pakistan needs to review it in the context of 18th Amendment where a lot of stuff has been devolved to the provinces.

“It is a discussion which we will have with the provinces in terms of either expenditure sharing or requesting them to incentivise to bring up the tax base, because the reality is, after the 18th Amendment and the NFC award, some of the sectors which need to be brought in a much bigger way into the tax net are actually provincial markets,” he said.

“Whether it is agriculture, real estate or property construction, we can help support systems, but it is for them to actually go ahead and do it,” he said, adding that he has already engaged with the chief ministers of Punjab and Sind provinces with respect to starting the dialogue. “Pakistan signed a short-term agreement with IMF in 2023. Pakistan is seeking a new bailout of up to $8 billion when the current one of $3 billion expires,” he added.

The finance minister’s visit to US comes as IMF published its updated World Economic Outlook that shows Pakistan will grow at 2 per cent. The IMF has kept the country’s growth rate at 3.5 per cent for the next fiscal year.

Meanwhile, Aurangzeb has ruled out any further significant rupee devaluation.

Speaking at a round table meeting with Bloomberg team in Washington, he said Pakistan’s solid reserves, stable currency, and growing exports support against rupee devaluation. The finance minister said that his country was ramping up support for industries, agriculture and IT to boost national growth above four per cent in the coming years.

tribune.com.pk

Aurangzeb optimistic about larger bailout program from IMF | The Express Tribune

It is Pakistan’s programme and it is supported, assisted and funded by the IMF, says finance minister
tribune.com.pk tribune.com.pk
 
No matter how many billions they get for arguments sake lets say the next 50 years, they're still not going to be doing anything to the economy as most of it will be going in their pockets.
 
IMF team expected next month for new loan talks

Finance Minister Muhammad Aurangzeb revealed on Saturday that an IMF team is anticipated to visit Pakistan by mid-May to negotiate a new long-term process, aiming to secure a staff-level agreement by mid-July.

Speaking to US-Pakistani media at the conclusion of his week-long visit, the minister mentioned the Fund’s intention to expedite the process. “The contours of the new programme will shape up later. We will start getting into granularity of the programme by mid-May,” he added.

Addressing journalists at the Pakistan Embassy, Mr Aurangzeb expressed the hope that the IMF’s board of governors would convene to consider the last tranche of the current programme by the end of this month, with the final installment released shortly thereafter.

Pakistan is seeking a $6-8 billion new loan package from the end. In earlier statements, he said Pakistan would prefer a long-term, preferably a three-year programme.

But when asked at Saturday’s briefing, Mr Aurangzeb said he would not speculate the size or the duration of the programme yet.

Second phase of CPEC

Earlier, Mr Aurangzeb informed a Chinese television audience that Pakistan can repay its debt to China only after completing the second phase of CPEC.

The minister’s candid remarks followed discussions with key financial institutions like the IMF and World Bank, alongside senior US officials in Washington this week.

Explaining his stance on this sensitive issue, Mr Aurangzeb said: “CPEC was a champion project for Pakistan, and a lot of infrastructure was created during its first phase. Now, what’s supposed to happen was for us to go into CPEC Phase 2, which was and remains the way we monetise that infrastructure because that’s where the special economic zones come in.”

The minister elaborated that through these special economic zones, Pakistan was to attract further Chinese investment.

Emphasising the necessity of completing this process, the minister stated: “There’s a lot of discussion about how you are going to repay the debt, that’s how it was supposed to happen.”

He expressed gratitude to the Chinese government and banks for their assistance in debt servicing, noting, “But ultimately, these debts have to be paid. And that’s only going to be there when we get phase 2 going in real earnestness.”

In an earlier meeting with Chinese Finance Minister Lan Fo’an in Washington, Mr Aurangzeb commended China’s invaluable contribution to Pakistan’s development through initiatives like CPEC.

He discussed Phase-I’s focus on infrastructure-building and Phase-II’s emphasis on special economic zones and relocation of Chinese private-owned companies, as per a statement issued by his office.

Mr Aurangzeb expressed gratitude for Chinese support, particularly its SAFE deposits. He informed his Chinese counterpart about Pakistan’s broader IMF programme and its interest in accessing the Chinese bond market with a Panda Bond.

On Saturday, the finance minister met representatives from S&P Global and Fitch Ratings, sharing the country’s positive indicators under the IMF’s SBA.

He also highlighted the ongoing reforms in taxation, energy, and privatisation across short-, medium-, and long-term horizons.

Additionally, the minister discussed the alignment of the World Bank’s agenda with government priorities, including climate change and digitalisation.

He mentioned potential Saudi investments and addressed concerns from rating agencies regarding the external side, inflation, primary balance, and interest rates.

SOURCE: DAWN
 

Revival of Pakistan’s economy towards right direction: Aurangzeb​


Addressing a news conference in Washington along with Pakistan Ambassador to the United States Masood Khan, he said that the mechanism regarding tax collection is being improved through reforms.

The Finance Minister said that despite difficulties and challenges, we have to move forward. Muhammad Aurangzeb said his negotiations with international financial institutions remained positive.

He said Pakistan’s Stock Market also witnessed a historical bullish trend in recent days due to positive indicators of our economy. The Minister said access to the Chinese market is being gained. He also stressed the need for concrete measures to reduce expenditures.

Speaking on the occasion, Pakistan’s Ambassador to the United States Masood Khan said he witnessed a change in attitudes of international financial institutions towards Pakistan as compared to last year.

He expressed the hope that good news will be shared soon with the nation regarding the IMF and World Bank.

arynews.tv

Revival of Pakistan's economy towards right direction: Aurangzeb

WASHINGTON: Minister for Finance Muhammad Aurangzeb has said that our direction regarding revival of Pakistan's economy is quite clear, ARY News reported.
arynews.tv arynews.tv
 

FinMin vows to continue anti-smuggling operations​

Finance Minister Muhammad Aurangzeb said on Sunday Federal Board of Revenue (FBR) and the Pakistan Customs were undeterred by the killing to two officials in Dera Ismail Khan and would continue their anti-smuggling operations for the elimination of this menace from the country.

According to a statement issued by the finance ministry, the minister, who is currently in Washington for talks with the International Monetary Fund (IMF) on a fresh package for Pakistan, strongly condemned the firing incident of on Customs Officials, while performing anti-smuggling duties.

He expressed deep grief and sorrow over the martyrdom of two officials of the Customs Department. He said that the sacrifices of these martyrs would not go in vain and expressed resolve that the smugglers will be dealt with iron hands.

Aurangzeb is in Washington on the occasion of the spring meetings of the IMF-World Bank. During the past week he held bilateral talks with senior officials of IMF, World Bank, international financial institutions (IFCs), rating agencies as well as the US administration.

Addressing a news conference along with Pakistan Ambassador to the United States Masood Khan on Saturday, Aurangzeb said that Pakistan was looking to enter into a larger and extended programme with the IMF and that his negotiations with international financial institutions in Washington were positive.

He said that Pakistan’s stock market witnessed a historical bullish trend in recent days due to positive indicators of economy. He emphasised Pakistan was heading towards financial stability, adding that the mechanism regarding tax collection was also being improved through reforms.

Earlier, talking to Asia Infrastructure Investment Bank (AIIB) President Jin Liqun, Aurangzeb identified broadening of the tax base, fixing the energy sector, and undertaking state-owned enterprise (SOE) reforms as key priorities of the government.

The finance minister briefed the AIIB president about Pakistan’s positive economic indicators, including improvement in foreign exchange reserves, a stable currency, declining inflation rates, and a surging stock market.

The minister also met with International Finance Corporation Managing Director Makhtar Diop. He noted an uptick in IFC activities in the country and sought the corporation’s support in shifting the government’s Public Sector Development Programme (PSDP) into the Public-Private Partnerships.

The minister also met with Deputy Under Secretary for International Finance at the US Department of Treasury Brent Neiman and briefed him on Pakistan’s positive economic indicators in the wake of the Stand-By Arrangement (SBA) signed with the IMF last year.

Source: The Express Tribune
 
Sustainable Infrastructure Investment urged

Pakistan has called for the development of infrastructure connectivity to fortify global resilience and promote sustainable development, especially in developing countries.

Ambassador Munir Akram made the call in his capacity as co-chair of the Group of Friends of Sustainable Infrastructure Investment while delivering a statement during the UN, General Assembly’s Sustainability Week in New York, on the theme: “Informal dialogue on building global resilience and promoting sustainable development through infrastructure connectivity.”

“The achievement of the 17 Sustainable Development Goals (SDGs) by 2030 and our climate goals requires a major transition to sustainable infrastructure – in energy, transport, housing, communications and industrial and agricultural production and consumption,” the Pakistani envoy said, noting that this was recognized in the ‘Just Energy Transition’ document adopted at COP-28.

“Yet,” he said, “public and private investments in sustainable infrastructure are not commensurate to realize either the SDGs or the climate goals, pointing out that a majority of developing countries do not have the public resources to finance infrastructure investments nor are they able to secure sufficient private investment.

To achieve a ‘just transition’, he called for mobilizing significantly larger concessional finance to mitigate country and project risks, enhance credit quality, improve financing terms and thus incentivize private infrastructure investment in the developing countries.

In this regard, Ambassador Akram cited the United Nations Conference on Trade and Development (UNCTAD), which said there was a funding gap of $2.5 trillion annually in infrastructure, two-thirds of which is in developing countries.

“Cumulatively, for a 1. 5°C Scenario, financing needs for clean energy are estimated to be about USD 4.3 trillion per year up until 2030, increasing thereafter to USD 5 trillion per year up until 2050,” he said, pointing out that investment in renewable energy only reached USD 0.5 trillion in 2022, the majority concentrated in developed countries.

The Pakistani envoy also underscored the need to create a pipeline of viable and bankable projects in developing countries which can attract public and private investments.

Pakistan, he said, advocates the establishment of a public-private entity under UN auspices to help developing countries formulate and structure such a pipeline of viable infrastructure projects utilizing the UN country offices.

“Such a public-private entity could bring together all stakeholders – recipient and donor countries, development institutions and the private sector; develop a template for national and international regulatory frameworks and develop de-risking measures to incentivize private investment in developing countries and present the projects for financing to the appropriate public and private sources of investment capital.”

Source: The Express Tribune
 
Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan’s foreign exchange reserves would reach “anywhere between $9 to $10 billion” by the end of June.

Addressing the inaugural session of the seventh ‘Leaders in Islamic Business Summit’ in Islamabad, he said the expected position in June would be a “much better position in terms of where we were [in the previous year]”.

Pakistan’s forex reserves crossed the $8bn mark again last month after they fell below it in late February.

The minister further said the International Monetary Fund (IMF) should not be seen as “an end, but a means to an end”.

Regarding the current Stand-By Agreement (SBA), Aurangzeb deemed it important to have entered the programme: “That was absolutely critical that we did that as a country for a reason. There is no plan B. Plan B is unimaginable when you are in a situation where I said you are down to 15 days of import cover.”

The finance minister also recalled that the country was praised during his recent visit to Washington for showing the “necessary discipline needed to go through the programme”.

He stated that they initiated discussions with the Fund for a longer and larger programme for two reasons: to “bring permanence in this macroeconomic stability” and execute the economic structural reform agenda.

“I’ve kept saying that the country doesn’t need policy prescriptions; we know the what and why for the longest time, we just don’t do it,” Aurangzeb said, adding that the country needed to get into an “execution mode”.

“We need to move towards sustainability,” he stressed, warning that otherwise, reforms could not be implemented.

Source: Dawn News
 
Forex reserves to reach $9-10bn by end of June, says finance minister

Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan’s foreign exchange reserves would reach “anywhere between $9 to $10 billion” by the end of June.

Addressing the inaugural session of the seventh ‘Leaders in Islamic Business Summit’ in Islamabad, he said the expected position in June would be a “much better position in terms of where we were [in the previous year]”.

Pakistan’s forex reserves crossed the $8bn mark again last month after they fell below it in late February.

The minister further said the International Monetary Fund (IMF) should not be seen as “an end, but a means to an end”.


www.dawn.com

Forex reserves to reach $9-10bn by end of June, says finance minister

Says he has "no reason to believe" that IMF will not agree to privatisation agenda.
www.dawn.com
 
PM seeks UK’s help to improve education sector

Prime Minister Shehbaz Sharif on Tuesday said his government wants to work with the UK to improve the quality of education and promote higher studies in Pakistan.

Mr Sharif made these remarks during a meeting with the representatives of leading UK universities at the PM House.

The prime minister welcomed the delegation and emphasised the importance of promoting quality education, saying it was his government’s top priority.

He expressed his commitment to ensuring every child’s access to education and said the federal government was working with the provinces to achieve the goal.

Australian envoy praises bravery of Pakistani guards in Sydney

He praised the UK’s support for Pakistan’s education sector and expressed hope for strengthening bilateral cooperation in the fields of education and trade.

PM Sharif also welcomed the launch of reciprocal degree programmes in UK universities of both countries.

The PM said Pakistan’s bilateral relations with the UK “spanned over decades” and called for more collaboration in the fields of research and technology between the universities of the two countries.

Envoy meets PM

In a separate meeting with the PM, Australian High Commissioner Neil Hawkins praised the bravery of Pakistani security guards who attempted to tackle the man who fatally stabbed six people in a busy Sydney shopping centre earlier this month.

One Pakistani security guard lost his life, while another was injured during the attack.

The prime minister also invited Australian companies to train their Pakistani counterparts and acknowledged the Pakistani diaspora’s contribution to Australia.

A delegation of the Chinese International Development Cooperation Agency, led by its Chairman, Luo Zhaohui, also called on the PM on Tuesday.

The PM acknowledged the agency’s “pivotal role” in bolstering Pakistan’s economic development and commended its “vital support” during the 2022 floods and later for relief, rehabilitation, and reconstruction.

SOURCE: DAWN
 
BouncerGuy said:
PM seeks UK’s help to improve education sector

Prime Minister Shehbaz Sharif on Tuesday said his government wants to work with the UK to improve the quality of education and promote higher studies in Pakistan.

Mr Sharif made these remarks during a meeting with the representatives of leading UK universities at the PM House.

The prime minister welcomed the delegation and emphasised the importance of promoting quality education, saying it was his government’s top priority.

He expressed his commitment to ensuring every child’s access to education and said the federal government was working with the provinces to achieve the goal.

Australian envoy praises bravery of Pakistani guards in Sydney

He praised the UK’s support for Pakistan’s education sector and expressed hope for strengthening bilateral cooperation in the fields of education and trade.

PM Sharif also welcomed the launch of reciprocal degree programmes in UK universities of both countries.

The PM said Pakistan’s bilateral relations with the UK “spanned over decades” and called for more collaboration in the fields of research and technology between the universities of the two countries.

Envoy meets PM

In a separate meeting with the PM, Australian High Commissioner Neil Hawkins praised the bravery of Pakistani security guards who attempted to tackle the man who fatally stabbed six people in a busy Sydney shopping centre earlier this month.

One Pakistani security guard lost his life, while another was injured during the attack.

The prime minister also invited Australian companies to train their Pakistani counterparts and acknowledged the Pakistani diaspora’s contribution to Australia.

A delegation of the Chinese International Development Cooperation Agency, led by its Chairman, Luo Zhaohui, also called on the PM on Tuesday.

The PM acknowledged the agency’s “pivotal role” in bolstering Pakistan’s economic development and commended its “vital support” during the 2022 floods and later for relief, rehabilitation, and reconstruction.

SOURCE: DAWN
Click to expand...

This idiot.. you need to review your whole system dumbo..it doesn't just become great over night...this moron still thinks he is running a small municipality..hell I wouldn't even let him do that..
 
You must log in or register to reply here.

Similar threads

Bhaag Viru Bhaag
‘Feel ashamed looking towards Bangladesh’: PM Shehbaz Sharif laments Pakistan's condition
Replies
3
Views
176
deltexas
D
B
Imran Khan's rivals, Shehbaz Sharif and Asif Ali Zardari, form the Pakistan government
2
Replies
128
Views
4K
FearlessRoar
FearlessRoar
FearlessRoar
  • Poll
Asif Ali Zardari elected for second term as the 14th President of Pakistan [Updated Post #11]
Replies
71
Views
1K
BouncerGuy
B
MenInG
  • Poll
Shehbaz Sharif elected as 24th Prime Minister of Pakistan [Update on Post#58]
2
Replies
159
Views
4K
Bewal Express
B
Major
180 MNAs have voted in favor of current Prime Minister Shehbaz Sharif
Replies
53
Views
2K
Major
Major
Back
Top