Thursday, 14 July, 2022 I 14 Zil Hajj, 1443 I Rs 15.00 I Vol XII No 373 I 12 Pages I Karachi Edition
Pakistan, iMF reach staFF-level agreeMent For loan resuMPtion g
PROGRAMME SIzE INCREASED By $1B TO TOTAL $7B
LAHORE
i
Staff RepoRt
N a breakthrough, Pakistan and the International Monetary Fund (IMF) on Wednesday reached a staff-level agreement over the revival of the Extended Fund Facility (EFF) programme. Although officials from the Ministry of Finance confirmed the same to the local media, a confirmation from the IMF side was not available; however, the fund does not comment on talks with countries before a formal statement has been released. The statement which was expected to be released Wednesday night had not
been released til the publishing of this news. Government sources connected with the talks had informed Profit that an agreement has finally been reached and the fund will issue a statement during working hours in Washington DC on Wednesday. The first tranche is expected to be SDR894 million, equal to $1.2 billion. The program has been extended till July 2023, and total program size increased by $1bn to reach $7bn. “Pakistan has met all prior actions for the IMF board approval already” the same source told Profit. The talks had dragged on over questions on the revenue plan, power tariff adjustments, the question of those Independent Power Producers
(IPPs) whose tariff has not been renegotiated, the fiscal surplus that the provinces are expected to run, and the quarterly fiscal targets. “The MOU with the provinces has been signed and shared with the fund” the source tells Profit. Agreement on all the other issues was clinched last night. The government is now expecting an announcement from the IMF by later tonight. Earlier in June, Pakistan had received the Memorandum of Economic and Financial Policies (MEFP), a document that contains details regarding striking a staff-level agreement, from the IMF for the seventh and eighth reviews.This was confirmed by Finance Minister Miftah Ismail on his official Twitter handle. Pakistan unveiled a 9.5 trillion rupee ($47 billion) budget for 2022-23 last month aimed at tight fiscal consolidation in a bid to convince the IMF to restart much-needed bailout payments. However, the lender later said additional measures were needed to bring Pakistan’s budget in line with the key objectives of the IMF programme. The two sides held several meetings and agreed on the budget and fiscal measures. Pakistan had sought an increase in the size and duration of the programme when Ismail met with IMF officials in Washington in April. Pakistan entered the IMF programme in 2019, but only half the funds have been disbursed to date as Islamabad has struggled to keep targets on track. The last disbursement was in February and the next tranche was to follow a review in March, but the government of ousted prime minister Imran Khan introduced costly fuel price caps which threw fiscal targets and the programme off track. Pakistan’s new government has removed the price caps, with fuel prices going up at the pump by up to 70% in a matter of three weeks.
IHC declares Navy Golf Course construction as illegal ISLAMABAD Staff RepoRt
The Islamabad High Court (IHC) declared Wednesday the construction of Navy Golf Course in the Margalla Hills National Park illegal and ordered the Defense Ministry to inquire into the illegal construction of the golf course. In a detailed 108-page verdict, the IHC also directed the defence secretary to conduct a forensic audit to assess the damage to the national exchequer. “Since the command and control of the Armed Forces vests in the Federal Government, therefore, no branch can undertake any activity or perform functions outside their respective establishments unless expressly directed or called upon to do so. The unique responsibilities have been prescribed under the Constitution and, therefore, obedi-
ence to the provisions ibid and law is an inviolable obligation of every branch and member of the Armed Forces as provided under Article 5,” the detailed judgment reads. The court also rejected the ownership claim of the Pakistan Army Directorate on 8,068 acres of land in the National Park. The court also rejected the
claim of the Remount, Veterinary and Farms Directorate of Pakistan Army about the ownership of 8068 acres of land in the national park. The lease agreement of the Remount, Veterinary and Farms Directorate of Pakistan Army with Monal Restaurant was also declared illegal by the court. IHC Chief Justice Athar Minallah
wrote and signed the verdict before leaving for the Eid holidays, and it was released on Wednesday (today). The report of the Islamabad Environmental Commission was also included in the 108-page verdict. “The state and the government officials are bound to protect the Margalla Hills,” the court said. “The state has the responsibility to take action against those who violate the fundamental rights of the people,” it added. “Ironically, the state institutions are also involved in the desecration of the notified protected area of the Margalla Hills,” it stated. “The Pakistan Navy and the Pakistan Army took the law into their own hands and violated the enforced laws,” the court declared. “It was an ideal case of the power of elite and undermining the rule of law,” it pointed out. The court further said that the state had the duty to take steps to lessen damages to the Margalla Hills to prevent further destruction. It merits a mention here that the court had earlier issued a summary judgment in the case on January 11, 2022.
Bani Gala had become ‘Money Gala’ during Imran’s rule: Maryam Nawaz LAYYAH Staff RepoRt
Pakistan Muslim League-Nawaz (PML-N) vice president Maryam Nawaz has said that Bani Gala had become “Money Gala” during the rule of former prime minister and Pakistan Tehreek-e-Insaf (PTI) Imran Khan. Addressing a rally here in Layyah on Wednesday ahead of July 17 by-elec-
tions in Punjab, Maryam Nawaz contended that her party will defeat incompetence, inflation and corruption and the PML-N has already won. On July 17, there will be a competition with Punjab s enemy Imran Khan and “Fitna Khan” is another name of anarchy. She also claimed that the petrol and diesel prices will come down in the next 24 to 48 hours. The PML-N vice president further said
that her party will be contesting on July 17 against inflation, corruption, incompetence and unemployment brought by the previous rulers. “Imran Khan is the biggest plan of destruction of Punjab, while Nawaz Sharif started projects for the prosperity of the country,” she said. “The lion’s fight is with corruption, incompetence and unemployment,” she said. “July 17 is the main battle with Punjab’s enemy Imran Khan,” she concluded.
saudi crown prince ‘accepts’ invitation to visit Pakistan ISLAMABAD Staff RepoRt
The crown prince of Saudi Arabia, Mohammed bin Salman, “accepted” on Wednesday the invitation from Prime Minister Shehbaz Sharif to visit Pakistan. Sharif extended the invitation during a telephonic call with the prince wherein he also conveyed warm greetings to the petro-rich nation’s head on the eve of Eid ul-Adha. He expressed good wishes to the Prince and the people of Saudi Arabia. Sharif also felicitated him on the successful Hajj and thanked the Saudi government for taking care of the pilgrims, particularly those from Pakistan. Pakistan and Saudi Arabia have also agreed to pursue a joint strategy for the execution of the decisions taken during Prime Minister Sharif’s visit to the kingdom in April. Both leaders also discussed the ongoing bilateral projects and agreed to further strengthen cooperation in the fields of trade and investment. On July 9, Sharif also invited the president of the United Arab Emirates (UAE), Mohammed bin zayed Al Nahyan, to visit Pakistan which the latter “accepted with great pleasure”. A statement issued by the Prime Minister’s Office said the invitation was extended during a telephone call from Al Nahyan. Sharif had called the UAE leader to convey warm greetings to him on Eid ul-Adha.
more inside
On Martyrs’ Day, Sharif reaffirms commitment to Kashmir cause STORY ON BACK PAGE
Gulf based crypto trading company aims to enter Pakistan STORY ON BACK PAGE