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

[Cricket Warrior]

PM Shehbaz announces 100MW electricity for GB

Prime Minister Shehbaz Sharif has announced immediate supply of 100 megawatts of electricity to Gilgit-Baltistan.

Chairing a special meeting of the Gilgit-Baltistan cabinet in Gilgit on Wednesday, he also announced the establishment of an endowment fund of one billion rupees for the talented students of Baltistan and Karakoram universities on merit.

The prime minister expressed satisfaction over the timely completion and high quality of houses, specifically constructed for the 2022 flood victims in Buber village of Ghizer district.

He instructed the Gilgit-Baltistan administration to ensure provision of educational institutions, playgrounds, electricity, and other facilities in District Ghizer.

Shehbaz Sharif said Daanish Schools are being introduced for the development of the education sector in Gilgit-Baltistan. He said the federal government is actively working day and night for the welfare of the people of the area.

PM Shehbaz announces 100MW electricity for GB

Daanish Schools are also being introduced in GB

dunyanews.tv

 

[Bewal Express]

 

[FearlessRoar]

Tarar shares economic growth, foreign investments despite PTI's disruptive tactics​

Information Minister Attaullah Tarar stated on Friday that Pakistan's economy is not only stabilised but also on a growth trajectory, despite attempts by Pakistan Tehreek-e-Insaf (PTI) to create disorder. He pointed out that foreign exchange reserves have crossed the $11 billion mark.

Speaking at a press conference in Islamabad, he highlighted that the economic recovery has already started benefiting the common man, with significant reductions in wheat and flour prices, petroleum products, and electricity tariffs.

Tarar credited Prime Minister Shehbaz Sharif for his relentless efforts to improve the economy, noting that these positive developments are a direct result of his work.

He also revealed that a UAE delegation is visiting Pakistan to discuss potential investment opportunities. Additionally, countries such as Saudi Arabia, UAE, and Qatar are investing in Pakistan, with Azerbaijan announcing a $2 billion investment.

He further disclosed that the PM will attend the Riyadh Summit on November 10 to discuss the Palestine issue, alongside other Middle Eastern matters.

He emphasised that PM Shehbaz has consistently raised the Palestinian cause at global forums, including the United Nations General Assembly, where his speech received widespread attention.

Tarar also mentioned that the PM will participate in COP 29 in Baku, Azerbaijan, focusing on climate change issues.

Addressing PTI’s ongoing efforts to disrupt the nation’s peace, Tarar accused the party of staging public rallies to seek leniency for its jailed leader, Imran Khan, in the form of a National Reconciliation Ordinance (NRO).

He asserted that there would be no concessions for Khan, who faces corruption charges. He also criticised PTI's plans to hold a public rally in Swabi, pointing out that past rallies had been failures and some were even cancelled.

On provincial matters, Tarar condemned the Khyber-Pakhtunkhwa (K-P) government for suppressing teachers' rights and neglecting the education system in the province. He also noted that the youth in KP, including talented sports stars and innovators, were being ignored.

He accused K-P Chief Minister Ali Amin Gandapur of focusing solely on protests for the release of Imran Khan, instead of working on development issues. In contrast, PM Shehbaz is focused on the country's development and prosperity, while PTI continues to work against national interests, he added.

Tarar also touched upon the aftermath of the May 9 attacks on national institutions, asserting that PTI’s agenda to weaken these institutions had failed. He praised Pakistan’s successful agreement with the International Monetary Fund (IMF), despite PTI's efforts to push the country toward default.

On judicial matters, Tarar interpreted the recent Supreme Court Bar Association election results as supporting the 26th Constitutional Amendment, part of the government’s judicial reforms.

Furthermore, he celebrated Pakistan’s historic cricket win against Australia in Adelaide on Friday, expressing hope that the national team would soon return to its former glory.

In conclusion, the minister reiterated the strong friendship between Pakistan and China, particularly in the context of the China-Pakistan Economic Corridor (CPEC), which he described as the country’s lifeline.

He stressed that with the completion of CPEC’s second phase, bilateral relations between Pakistan and China would enter a new phase of growth.

Economy strengthens as foreign investment flows in: Tarar | The Express Tribune

Information minister also says a UAE delegation is visiting Pakistan to discuss potential investment opportunities

tribune.com.pk

 

[FearlessRoar]

UAE seeks to expand investment in Pakistan​

The United Arab Emirates (UAE) has expressed a strong interest in expanding its investments in Pakistan, specifically in shipping, port efficiency, logistics, and customs digitisation.

The two countries signed four Memorandums of Understanding (MoUs) focused on cooperation across several sectors. These MoUs, signed with the Abu Dhabi Ports Group, cover partnerships with Pakistan's Ministries of Maritime Affairs, Aviation, Railways, and the Federal Board of Revenue.

This was announced during a high-profile meeting in Islamabad on Friday, where UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi, led a delegation of UAE investors to meet with Prime Minister Shehbaz Sharif.

The agreements aim to explore opportunities in customs modernisation, freight rail corridors, maritime shipping, and airport infrastructure.

Specifically, the partnerships target improvements in digital customs controls, the development of dedicated freight rail lines, and the enhancement of Pakistan's maritime fleet and international airport services.

The PM welcomed the delegation, extending his appreciation to UAE President Sheikh Mohamed bin Zayed and Prime Minister Mohammed bin Rashid Al Maktoum for their continued support of Pakistan. He stated that Pakistan and the UAE share a deep, fraternal bond rooted in common history and cultural values.

Highlighting the existing economic partnership between the two nations, PM Shehbaz pointed to the collaborative progress made in trade, energy, and investment, which he said has driven growth and prosperity for both countries.

"The UAE's commitment to increasing its investment footprint in Pakistan is a testament to the strength of our bilateral relations," he noted, underscoring the potential for UAE investments to contribute significantly to Pakistan's economic stability.

The UAE delegation included Sheikh Ahmed Dalmook Al Maktoum, Chairman of the Kaheel Group; Capt. Mohamed Al Shamisi, Managing Director and Group CEO of Abu Dhabi Ports Group; UAE Ambassador to Pakistan Hamad Obaid Ibrahim Salem Al-Zaabi; and senior officials from AD Ports.

On the Pakistani side, key attendees included Deputy Prime Minister and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, Commerce Minister Jam Kamal Khan, Finance Minister Muhammad Aurangzeb, Minister for Maritime Affairs Qaiser Ahmed Sheikh, Special Assistant to the Prime Minister Tariq Fatemi, and other senior government officials.

UAE seeks to expand investment in Pakistan in meeting with PM Shehbaz | The Express Tribune

Both countries signed four Memorandums of Understanding (MoUs) focused on cooperation across several sectors.

tribune.com.pk

 

[FearlessRoar]

Japan approves $18.5m grant for flood management project in Pakistan​

Japan has committed an $18.5 million grant to support Pakistan’s flood management initiatives, aimed at enhancing flood forecasting accuracy and reducing disaster risks.

The grant will be executed through the Japan International Cooperation Agency (JICA) under the project "Flood Management Enhancement in the Indus Basin."

A formal signing ceremony took place in Islamabad on Wednesday, with Secretary of Economic Affairs Dr Kazim Niaz and Japan’s Ambassador to Pakistan Wada Mitsuhiro signing on behalf of their respective governments.

The project’s scope includes establishing a hydrological and hydraulic observation network and rehabilitating river structures damaged during the 2022 floods in the Indus River basin and its tributaries. Japan's support will also aid in capacity building for Pakistan’s flood management institutions.

“The project will help accumulate essential data that contributes to disaster risk reduction,” said a statement from the Japanese government. This initiative aims to safeguard human lives, infrastructure, and the economy from future flood impacts.

Japan approves $18.5 million grant for Pakistan flood management project | The Express Tribune

The grant will be executed through the JICA under the project Flood Management Enhancement in the Indus Basin

tribune.com.pk

 

[Kianig89]

Amid the hollow wonders of SiFc and KSE, the country is still in turmoil due to shortfall in achieving IMF tgts resulting in an IMF team visit, where a mini budget might be floated and more misery for salaried class in shape of increased taxation.

It is pertinent to note that the governing officials in the country have given them extensions and created constitutional karts to give them stability

 

[BouncerGuy]

Mini-budget unlikely as IMF satisfied with tax steps

The International Monetary Fund (IMF) is reported to have expressed satisfaction over the increase in the tax-to-GDP ratio by nearly 1.5 percentage points, relieving the authorities from any push for additional tax measures through a mini-budget.

According to sources closely involved in ongoing discussions with the visiting IMF mission, the Federal Board of Revenue’s (FBR) revenue collection target for the current fiscal year will remain unchanged at Rs12.97 trillion. Authorities have ruled out the need for additional taxes or a mini-budget, citing the IMF’s positive response.

Officials said that economic activity is expected to pick up by December in view of a stable exchange rate and a reduction in the State Bank’s policy rate, likely offsetting a tax shortfall of around Rs190 billion recorded in the first four months (July to October) of the fiscal year.

There would neither be any increase in the petroleum levy nor would general sales tax (GST) be imposed on petroleum products, the sources said after a meeting of the Senate Standing Committee on Finance and Revenue presided over by PPP Senator Salim Mandviwalla.

They said the tax-to-GDP ratio had increased from 8.8pc to 10.3pc and the IMF was satisfied with this 1.5 percentage point improvement.

The sources reiterated the commitment given to the IMF that tax collection on agriculture income would start from the next fiscal year. They said that tax reforms were progressing and the draft Tax Laws Amendment Ordinance 2024 had been presented to the prime minister for approval. The ordinance contains a new family income tax return system and abolishes the concepts of non-filers and late filers.

The sources, however, hinted at tinkering with the Tajir Dost Scheme to effectively bring in traders into the tax net and said these were being discussed with the IMF mission during the ongoing meetings.

The IMF has been told that the FBR collected Rs12bn from retailers during the first quarter of 2024-25, although only 500,000 potential retailers were the target out of three million small shopkeepers.

‘Slow progress on Islamic banking’

Earlier, the Senate panel decided to call scholars of the Council of Islamic Ideology to have input on the working of Islamic banking operations in Pakistan, for which a special session would be arranged.

The central bank’s deputy governor told the panel that Riba was the main difference between conventional banking and Islamic banking.

Senator Farooq H. Naek pointed out that full implementation of Islamic banking was committed for 2027, but progress had been very slow. The SBP’s deputy governor emphasised the need for continued deliberation on Islamic banking and assured the committee that several banks were actively working towards compliance.

FBR Chairman Rashid Mehmood Langrial told the panel that FBR’s enforcement would be improved in the coming months after approval of a transformation plan, including enhancing the board’s operational expertise, organisational capacities and anti-smuggling measures.

Key discussions during the meeting included the contentious 10pc levy on transport and businesses between Pakistan and Iran, raised by Senator Manzoor Ahmad Kakar in a Senate session. The committee resolved to report to the house that the issue may be referred to the Standing Committee on Communications, noting that the levy, imposed with the federal government’s approval, did not pertain to the Federal Board of Revenue.

While FBR officials emphasised that this specific tax was not their responsibility, Senator Kakar raised concerns that Pakistani trucks were being unfairly taxed, with over 600 trucks currently parked due to the levy. The committee agreed to forward the matter to the Communications Committee for further deliberation.

The committee also discussed concerns raised by Senator Mohsin Aziz regarding the fee collected by FBR for point of sale (POS) services and its utilisation. The FBR chairman confirmed the introduction of a policy to penalise businesses that are issuing fake POS receipts, imposing fines of Rs500,000 and shutting down shops involved in such practices.

Senator Aziz highlighted weaknesses in enforcement, with some fake receipts circulating in the market, including a bill in Islamabad marked “tentative”. The FBR chairman acknowledged the issue and assured that enforcement measures would be strengthened soon.

A key briefing by the SBP highlighted the performance of banking branches in smaller provinces, revealing that as of June 30, 2024, there were 3,334 banking branches operating in Balochistan, Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Gilgit-Baltistan, accounting for 20pc of the total nationwide branches. Additionally, 199 branches of microfinance banks were serving these regions, representing 13pc of the country’s total microfinance network.

Another pressing issue discussed was the problem of counterfeit currency dispensed from ATMs. Senator Kakar cited a case where a young man received fake Rs5,000 notes from an ATM. The CEO of a commercial bank assured the committee that security measures were being enhanced to address this issue.

DAWN NEWS

 

[FearlessRoar]

FinMin dismisses mini-budget rumours after 'constructive' IMF talk​

Finance Minister Muhammad Aurangzeb has assured that no mini-budget is forthcoming, describing recent talks with the International Monetary Fund (IMF) as "constructive and purposeful."

In an interview with a private television channel, Aurangzeb emphasised Pakistan’s commitment to achieving its ambitious tax collection target of Rs12.97 trillion through improved enforcement and administrative measures.

He highlighted the government’s successful attainment of the primary surplus target as a key milestone in the country’s economic stability efforts.

The minister further shared that the National Fiscal Pact had received cabinet approval, ruling out the need for revisions to the National Finance Commission (NFC) framework.

He expressed gratitude towards Sindh’s Chief Minister for supporting the fiscal pact, acknowledging the positive role of Khyber- Pakhtunkhwa (K-P) in matters of national interest.

Aurangzeb also addressed the recent setback in the privatisation process of Pakistan International Airlines (PIA), noting that while the failed bid was disappointing, efforts to advance privatisation will continue.

IMF board to decide on Pakistan case

Meanwhile, the International Monetary Fund has decided to place the findings of an unplanned visit to Pakistan before the executive board for a decision after it observed that the $7 billion programme implementation was lagging behind on many counts.

In an official announcement at the end of the five-day visit to Pakistan, the IMF said that “based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision”.

The issues highlighted by the IMF in its statement suggests that the three-year Extended Fund Facility took a bumpy start soon after beginning of the journey on September 25th when the board approved the package.

Led by Mission Chief Nathan Porter, the IMF team visited Pakistan from November 11th to 15th to review implementation on about 40 conditions that the government had accepted.

The IMF shared its “preliminary findings” through the press release and stated that the detailed findings in the shape of the report would be presented before the Executive Board.

The IMF’s Mission Chief stated that Pakistan and the IMF staff “agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces”.

The issues that Nathan mentioned after the emergency visit are the ones where Pakistan is lagging behind the commitments, said the sources.

In order to meet the IMF’s condition to sign a National Fiscal Pact by four provinces and the Centre till September 30th, the signatories agreed to a muted version that excluded transfer of Benazir Income Support Programme (BISP) to the provinces. The agreement also allowed exception to the condition of handing over the province-specific development project to the respective federating unit.

Now the IMF has emphasized in its press statement about the need for “transferring greater social and development responsibilities to provinces”.

The fiscal pact had been conceived to transfer the expenditure responsibilities that the Center has unconstitutionally taken on its shoulders despite not having fiscal space. The signed version did not achieve this objective.

The Federal Board of Revenue also could not meet its overall tax collection targets and failed to collect due taxes from the traders. The IMF has now pressed in the statement to ensure continued implementation of “prudent fiscal policies (and) revenue mobilization from untapped tax bases”.

The sources said that once the IMF gives its detailed report to management and the board only then the situation on the amount and the timing of the mini-budget would be decided. Punjab has also passed the Agriculture Income Tax law but the enactment gives the authority to set the rates to the government through notification.

Nathan Porter said that there was also a need for structural energy reforms and constructive efforts are critical to restore the sector’s viability.

The sources said that the discussions were held around how to encourage the use of electricity from the national grid and reduce the cost –in a situation that is the direct outcome of the wrong IMF policies under the previous and the current programmes.

Porter said that “Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector”.

To achieve the objective of decreasing the state intervention in the economy, the IMF has already placed conditions related to the functioning of the Special Economic Zones and drastic changes in the Pakistan Sovereign Wealth Fund Act.

“Strong programme implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis”, said Nathan Porter.

“We had constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth”, said Porter.

He said that the IMF was encouraged by the authorities’ reaffirmed commitment to the economic reforms supported by the 2024 Extended Fund Facility (EFF). The next mission associated with the first EFF review is expected in the first quarter of 2025, he added.

During the five-day visit, the IMF team engaged with the federal and provincial governments, the State Bank, as well as representatives from the private sector on economic developments and policies.

The IMF said that the staff visits are a standard practice for countries with semi-annual programme reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.

However, the sources said that no one in Pakistan anticipated and expected the IMF to come only after six weeks of the programme approval.

FinMin dismisses mini-budget after 'constructive' IMF talks | The Express Tribune

Aurangzeb called the primary surplus target a significant milestone in Pakistan's economic stability efforts

tribune.com.pk

 

[BouncerGuy]

PM Shehbaz eyes $25bn IT exports in five years

Prime Minister Shehbaz Sharif has set an ambitious $25 billion IT export target in five years amid better utilisation of resources and provision of training and education to the workforce.

The premier, who chaired a review meeting on IT sector reforms, expressed hope that the estimated target will be met.

An official announcement of the PMO said that the Ministry of Information Technology (IT) presented the prime minister with an action plan to reform and address issues in the IT sector.

The IT ministry informed that the five-year action plan envisages $15bn in IT exports, $1bn for telecom, and $10bn in digitisation.

PM Shehbaz said Pakistan has no shortage of talented manpower and resources. He directed to ensure the implementation of the action plan and asked all institutions to cooperate to address the challenges hindering the IT sector reforms.

“I will personally monitor the implementation of IT sector reforms,” the premier remarked. He directed the Higher Education Commission (HEC) to prepare a plan of action to provide international standard education, training and skills to youth.

“There is a demand for Pakistani IT experts in the Gulf countries, and suggestions should also be implemented soon,” the premier asked the IT ministry.

PM Shehbaz directed the IT ministry to set clear targets for increasing IT exports and a specific timeframe for each step.

He further directed establishing a committee to implement IT sector reforms and promote cooperation with various institutions.

The meeting was informed that IT sector exports increased by 34pc in the first four months of the current fiscal year.

It was noted that Pakistan improved its global ranking by 14 places in terms of e-governance, 2,500 new IT companies were registered, while Pakistan’s IT ranking improved from 79 to 40.

The meeting also reviewed the proposed labour management system, under which employment will be ensured by increasing the workforce’s capacity with the cooperation of educational institutions.

The meeting also discussed the proposed plan to facilitate remittances for young people associated with the IT sector, especially freelancers. The Prime Minister praised this initiative regarding international payment gateways and issued instructions for its swift implementation.

The meeting was attended by Federal Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Information Technology Shaza Fatima Khawaja and relevant senior officials.

DAWN NEWS

 

[Kianig89]

A big Chinese giant is mulling over withdrawing its investment from Pakistan, if that happens will be a big blow to the country.

Apart from Stock Exchange, economy is in complete turmoil. Investor confidence at its lowest due to political instability and ease of corruption

 

[BouncerGuy]

PM Shehbaz seeks steps to boost exports

Prime Minister Shehbaz Sharif has directed the commerce ministry to convene a National Export Development Board meeting next week to explore ways to increase exports, especially manufactured products.

The directive came from the premier at a meeting on Thursday to examine the progress of several projects within the ministry.

The premier was briefed that manufactured goods, particularly engineering items, had negative growth in November, while textile and garment exports slowed. Raw agricultural food goods were the only products to grow in November.

Mr Shehbaz directed steps to increase the export of rice. He recalled that it was agreed to increase the export of Pakistani rice to Malaysia during the recent visit of Malaysian Prime Minister Dato’ Seri Anwar Ibrahim to Pakistan.

An official announcement from the Prime Minister Secretariat said Mr Shehbaz was briefed on measures to increase agricultural exports. It was told that two memorandums of understanding had been signed with Russia for barter trade of agricultural commodities.

Mr Shehbaz said that Special Economic Zones would be functionalised by providing hotels, hospitals, business schools, and other services to boost national exports.

The premier directed forming a special cabinet committee to identify ways and measures in consultation with the exporters to increase the production of major crops such as wheat, cotton, sugarcane, rice, edible oil, and others. Based on expert opinions, the committee would present recommendations to increase the production of major crops.

The premier was informed that Tajikistan has expressed interest in cooperation with Pakistan in the textile sector. He has directed immediate measures to create sustainable employment opportunities in the border districts of Balochistan.

Ahead of the briefing, Commerce Minister Jam Kamal chaired an internal review meeting to assess the performance of various wings and attached departments under the ministry. The minister emphasised the need to capitalise on emerging opportunities to boost Pakistan’s trade and export potential.

An official announcement of the commerce ministry said that during the meeting, the minister directed officials to prioritise the facilitation of exporters to maximise their productivity.

DAWN NEWS

 

[Cricket Warrior]

FBR imposes 10% withholding tax on marriage halls

The Federal Board of Revenue (FBR) has imposed a 10% withholding tax on marriage halls, which according to the Marriage Hall Association, would be born by the event organisers.

In a statement issued on Friday, association president Rana Raees said that the tax will be collected from the party organising the event, separate from the hall's rental charges.

He clarified that marriage hall owners have "nothing to do with the withholding tax".

The decision was made following FBR directives to streamline tax collection in the sector, the association's president added.

The tax collection body faced a massive revenue shortfall in achieving the assigned target of Rs1,003 billion, as the total collection so far stands at around Rs855 billion for November 2024, reflecting a gap of Rs149 billion.

The FBR had made internal projections that it might face a shortfall of Rs321 billion for the first half (July-Dec) period, but the shortfall already exceeded this and stood at Rs338 billion in five months.

The FBR has collected Rs4.3 trillion in five months of FY2024-25. Now, it will have to fetch revenues of Rs1.71 trillion this month to achieve an indicative target of Rs6.009 trillion by December 31, 2024, under the IMF programme.

FBR imposes 10% withholding tax on marriage halls

KARACHI: The Federal Board of Revenue has imposed a 10% withholding tax on marriage halls, which according to the Marriage Hall Association, would be born by the event organisers.In a statement issued on Friday, association president...

www.geo.tv

 

[FearlessRoar]

Aurangzeb urges continuity in economic policy regardless of govt in power

Finance Minister Muhammad Aurangzeb on Saturday stressed the importance of continuity in the country’s economic policy, saying it should be consistent regardless of the government in power.

Last month, the business community, including the Pakistan Business Council and Islamabad Chamber of Commerce and Industry, also highlighted the need for long-term economic policies, linking them with political stability.

Speaking to reporters at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi today, Aurangzeb said, “When we talk about the charter of economy, it does not matter which administration comes in … the government’s role is policy framework but even more important is policy continuity.”

He said more investment was coming into the country and the existing level of investment was “fantastic”. He said that the economy was moving in the right direction.

The finance minister also urged shifting the economy to an export-led one, stating that every investment and action must be driven by exports.

“We have an import-led economy […] We face a balance of payment problem and run into a boom-and-bust cycle. If we want economic growth, then it has to be export-led growth,” Aurangzeb asserted.

According to the finance minister, $2.2 billion of dividends and profits, which had been held back, were repatriated between May and June.

“We started on a clean slate this fiscal year,” Aurangzeb said.

Planning Minister Ahsan Iqbal has also repeatedly stressed the need for consistent policies to set Pakistan back on the path of growth, lamenting that despite abundant resources, the lack of stability hindered the country’s progress.

In May this year, the State Bank of Pakistan noted that despite improvements in macroeconomic indicators, political uncertainties and inconsistent policies exacerbate the economy.

‘Private sector has to lead country’

The finance minister also highlighted the need to privatise loss-making state-owned enterprises (SOEs), saying, “Private sector has to lead this country.”

Aurangzeb said SOEs “cost Rs2.2bn per day” and Rs6 trillion in losses in the last 10 years, adding: “If the private sector runs them, our fiscal balance or imbalance will improve.”

As part of the SOEs’ policy 2023 introduced on the directives of the International Monetary Fund (IMF), the federal government is required to categorise all SOEs into four categories to reduce their footprint on the economy and reduce financial losses.

For this, each relevant ministry is tasked with presenting its rationale to the committee for assigning the SOEs to a specific category.

These categories include “strategic” or “essential” SOEs, which are critical for the execution of government policies and where the private sector is unable to assume those functions due to various reasons and hence should be kept in the government’s hands.

In August, the Cabinet Committee on Privatisation (CCOP) approved the privatisation of 24 public sector entities under the government’s new phased privatisation programme for the period 2024-29.

The next month, the Cabinet Committee on SOEs decided to keep three federal entities in the public sector by declaring them as “essential” SOEs — namely the Trading Corporation of Pakistan (TCP), Small and Medium Enterprise Development Authority (Smeda), and Pakistan National Shipping Corporation.

Aurangzeb urges continuity in economic policy regardless of govt in power

Highlights the urgent need for privatisation, export-led growth.

www.dawn.com

 

[Aang_The_last_airbender]

A big Chinese giant is mulling over withdrawing its investment from Pakistan, if that happens will be a big blow to the country.

Apart from Stock Exchange, economy is in complete turmoil. Investor confidence at its lowest due to political instability and ease of corruption

Stock market is at all time high and best performing in the world but somehow investor confidence at its lowest?? Maths is not Mathing..

 

[FearlessRoar]

Eighty-four textile mills declared defaulter​

The International Cotton Association (ICA) has declared 84 textile mills of Pakistan as defaulter.

Cotton Ginners Forum chairman Ahsanul Haq told The Express Tribune that the International Cotton Association (ICA) took the decision over Pakistan textile mills' failure to honour their procuring agreements. After this development, the defaulter mills will not be able to import cotton from any part of the world.

As per statistics issued by Pakistan Cotton Ginners Association, Pakistan produced 5.2 million cotton bales till the end of November 2024, which was 33 percent less than the bales production during the corresponding period of the last year. In view of low production, it was estimated that the rate of cotton and bales would increase in the local market. In contrast to expectation, the prices went down as the textile mills preferred to import cotton and thread from international market after 18 percent sales tax was imposed on textile mills.

The decline in the cotton and bales prices is causing concern among ginners and growers that may further decrease the cotton production in the country.

Ahsanul Haq advised the government to withdraw 18 percent sales tax on the purchase of cotton and thread to support local cotton industry and prevent transfer of foreign exchange in the shape of import.

Eighty-fourtextile millsdeclared defaulter | The Express Tribune

Eighty-four textile mills declared defaulter

tribune.com.pk

 

[BouncerGuy]

PM Shehbaz orders tariff cuts, fast-tracking of power projects

Prime Minister Shehbaz Sharif on Friday directed the authorities concerned to reduce power tariffs and accelerate the implementation of the action plan for future power generation projects.

Presiding over a meeting to review and discuss future electricity and power plans, he emphasised the need to prioritise low-cost power projects based on local resources.

During the meeting, the prime minister was briefed on the progress of the ongoing hydropower projects across the country.

PM Shehbaz said the low-cost power projects produce environment-friendly and affordable electricity. He directed that the current electricity generation capacity be also shifted to solar energy.

Globally, electricity is being produced from environment-friendly, low-cost solar energy, he noted, adding that Pakistan is fortunate in this regard as the country had vast potential for solar energy.

The prime minister was also briefed on the progress of phasing out inefficient power plants that consume more fuel but produce less electricity. He ordered the immediate closure of such outdated power plants and said that closing these plants would not only save valuable foreign exchange, but also reduce electricity costs for consumers.

The prime minister instructed that immediate action be taken against the officials deliberately obstructing reforms in the power sector. He also directed that reforms in the electricity transmission system be expedited. The power transmission system should be upgraded according to international standards, he added.

PM Shehbaz ordered swift implementation of a system based on modern technology for the selection and transmission of low-cost electricity. He issued instructions to complete all measures for the power sector reform within the specified timeline.

The meeting was attended by federal ministers Ahad Khan Cheema, Sardar Awais Khan Leghari and Dr Musadik Malik, minister of state Ali Pervaiz Malik and other relevant officials.

Tajik energy minister

Pakistan and Tajikistan on Friday agreed to further promote cooperation in sectors such as communication, particularly land-based connectivity, energy, education, and agriculture.

The understanding was reached during a meeting between Prime Minister Shehbaz Sharif and Energy Minister of Tajikistan Daler Jumma who called on the former at the PM House. Regional connectivity projects, including CASA-1000, were also discussed during the meeting.

Daler Jumma is visiting Pakistan to participate in the Pakistan-Tajikistan Joint Commission.

The prime minister expressed satisfaction with the progress made in cooperation between the two countries in various sectors during the Joint Commission.

Recalling his visit to Tajikistan and recent meetings with Tajik President Emomali Rahmon in Riyadh and Baku, the prime minister expressed the hope that the Tajik president would soon visit Pakistan.

PM Shehbaz expressed satisfaction with the memorandums of understanding and agreements reached during his visit and emphasised that timely implementation of these agreements would further strengthen bilateral relations.

The Tajik minister thanked PM Shehbaz for the warm welcome and hospitality and emphasised the importance of enhancing relations and cooperation between the two countries.

DAWN NEWS

 

[BouncerGuy]

$300m ADB loan secured to strengthen social protection

The government has signed a $330 million loan agreement with the Asian Development Bank (ADB) to support the Integrated Social Protection Development Programme (ISPDP).

The agreement, signed here on Saturday, aims to scale up poverty reduction and human development initiatives while strengthening climate change responsiveness.

Economic Affairs Secretary Dr Kazim Niaz and ADB Country Director Emma Fan signed the agreement on behalf of their respective sides.

The programme builds on the ongoing ADB-funded programme for strengthening and expanding social protection systems in the country through the Benazir Income Support Programme (BISP).

The institutional capacity of BISP, the country’s flagship social protection agency, will be enhanced to transition to adaptive and climate-resilient social protection. This will include improving access to education pathways for children and youth from low-income families and increasing access to health services and nutrition supplies for beneficiaries who are in disaster-prone areas.

Speaking at the signing ceremony, Mr Niaz highlighted the importance of the additional financing from concessional lending agency for enhancing institutional capacity and improving access to education and healthcare, particularly among women, adolescent girls and children from low-income families.

He expressed gratitude for ADB’s continued support in this regard.

Ms Fan reaffirmed the bank’s commitment to supporting the government’s objectives in strengthening social safety nets. She stated that the additional financing would help achieve the programme’s objectives of inclusive growth, poverty reduction skills development, and healthcare access for vulnerable populations.

The signing of the loan agreement marks a significant step forward in enhancing social protection systems in Pakistan.

The 2025 fiscal budget allocates additional resources to expand social protection, including a higher budget for the flagship social protection programme.

The government’s commitment to targeted subsidy reforms and replacing cross-subsidies with direct BISP support are crucial steps to improve the efficiency and effectiveness of social safety nets in Pakistan.

Despite these accelerated investments in social protection, constraints remain in policy and administrative coordination between federal and provincial governments, institutional capacity, data and delivery systems in provinces, and the limited benefit level of social protection programmes, the ADB has pointed out in a report.

The Ministry of Poverty Alleviation and Social Safety provides an opportunity to streamline social protection scheme across the government’s different programmes.

However, the leading social protection programmes continue to operate through federal mechanisms, notwithstanding the Constitution’s provincial mandate for social protection.

Only two provinces, Punjab and Sindh, have started implementing social protection programmes through the established social protection authorities.

However, the ADB said that institutional capacity in poverty targeting and service delivery needs to be strengthened to achieve transformative change in human capital and productivity.

The report said the country required adaptive and shock-responsive social protection, with data systems, financing mechanisms, and a portfolio of programmes to increase the capacity of vulnerable households to cope with and recover from disasters and climatic shocks.

DAWN NEWS

 

[FearlessRoar]

Aurangzeb praises formal sector

Finance Minister Muhammad Aurangzeb has said the government is taking measures to ensure the current IMF prgoramme becomes the last bailout.

During a wide-ranging discussion on the economy during a visit to the Pakistan Business Council (PBC) on Monday, the finance minister appreciated the sacrifices that the formal sector had to make in the front-loaded tax measures under the IMF programme and assured them as and when the fiscal space permits, this burden would be eased.

On import substitution, the minister lauded the progress made by the fast-moving consumer goods (FMCG) sector on indigenising inputs. However, he opposed protection without a sunset clause and favoured supporting those that achieved a certain percentage of export sales.

On taxation, the unlevel playing field versus the informal sector was highlighted by PBC members. The federal minister requested support from the formal sector to identify such evaders. He also shared the progress on transforming the Federal Board of Revenue (FBR) and infusing it with technology to broaden the tax base.

PBC chief executive Ehsan Malik told Dawn, “The finance minister wants to start the budgetary process in February/March instead of May/June and also wants to separate fiscal policy-making from the collection of tax as PBC has been recommending.”

The PBC members proposed recommendations on promoting exports, especially non-traditional goods, by encouraging the unleashing of the significant under-utilised capacity.

On textiles, PBC urged the government to negotiate lower tariffs on exporting apparel made from US cotton to the US, of which Pakistan is now the largest customer. A review of the EFS to allow domestic industry to supply exporters without GST was recommended, as was the reduction in the 2pc WHT on proceeds on exports of low-margin items.

Aurangzeb praises formal sector

PBC chief says minister wants to separate fiscal policy-making from tax collection.

www.dawn.com

 

[The Bald Eagle]

Middlemen blamed for public failing to reap benefits of low prices​

Finance Minister Muhammad Aurangzeb on Wednesday called the current account surplus after a decade an encouraging development and expressed optimism over remittances reaching $35 billion.

Speaking during the ECC meeting, Aurangzeb emphasised the continued journey of economic stability. He criticised middlemen for not reducing the prices of essential goods despite a decline in inflation.

Aurangzeb underlined a paradox in the prices of commodities like chicken, gram, and mash lentils, which dropped globally but surged in the domestic market.

He attributed this discrepancy to profiteering and blamed middlemen for failing to pass on the benefits of lower global prices to the public.

The finance minister stated that November witnessed a surplus in the current account deficit for the first time in ten years, with remittances increasing by 35 per cent. The finance minister highlighted that Roshan Digital Accounts have now reached $9 billion, indicating growing confidence in the economy.

Aurangzeb also pointed out a reduction in the KIBOR rate to below 12%, which he said was boosting business confidence.

Source: Samaa News