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PAKISTAN, IMF REACH STAFF-LEVEL AGREEMENT ON CRUCIAL STANDBY-BAILOUT REVIEW thursday, 16 november, 2023 i 1 Jamada al-awal, 1445

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Upon approval, Pakistan will have access to around $700m

‘Tranche to help Pakistan unlock more funding from other donors’

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ISLAMABAD

Staff RepoRt

AKISTAN reached a staff-level agreement with the International Monetary Fund (IMF) on the first review of a $3 billion bailout, wherein the country will receive $700 million after approval from the lender’s Executive Board. Upon approval, Pakistan will have access to around $700 million, bringing total disbursements under the programme to almost $1.9 billion, the IMF announced in a statement on Wednesday. Ministry of Finance’s former adviser Dr Khaqan Hassan Najeeb told media that the board’s approval will help Pakistan unlock more funding from other multilateral and bilateral donors. “That is a good development and a satisfying one for Pakistan indeed,” he said, noting that inflation should steadily decline “is the thought process moving forward”. The IMF said the agreement supports the Pakistani authorities’ commitment to ad-

vance the planned fiscal consolidation and accelerate cost-reducing reforms in the energy sector. The short-term deal also envisages a complete return to a market-determined exchange rate, and pursues state-owned enterprise and governance reforms to attract investment and support job creation while continuing to strengthen social assistance. “Anchored by the stabilisation policies

under the SBA, a nascent recovery is underway, buoyed by international partners’ support and signs of improved confidence,” the statement added. The Washington-based lender said steadfast execution of the FY24 budget, continued adjustment of energy prices, and renewed flows into the foreign exchange market have lessened fiscal and external pressures. It further said inflation is expected to decline over the coming months amid receding supply constraints and modest demand. However, Pakistan remains susceptible to significant external risks, including the intensification of geopolitical tensions, resurgent commodity prices, and the further tightening in global financial conditions, as per the IMF. “EFFORTS TO BUILD RESILIENCE NEED TO CONTINUE.” Pakistan clinched the deal with the IMF for the $3 billion short-term loan agreement in June this year, averting the looming default threat, and undertook painful economic reforms including hiking electricity and gas tariffs in line with the Lender’s conditions.

Cabinet thumbs up for 40pc tax on banks’ profit during 2021-22 g

Rs 15.00 | Vol XIV No 137 I 8 Pages I Lahore Edition

Govt committed to economic reform efforts: Caretaker PM ISLAMABAD

Staff RepoRt

Caretaker Prime Minister Anwaar-ul-Haq Kakar reaffirmed the government’s enduring commitment to the reform efforts agreed with the International Monetary Fund (IMF) as these were aimed at stabilizing the Pakistan’s economy in the long run. IMF Mission Chief for Pakistan Nathan Porter and IMF Resident Representative for Pakistan Esther Perez Tuiz called on the prime minister and apprised him of the status of the negotiations held at the technical levels with the team of government of Pakistan under the First Review of the Stand-By Arrangement (SBA). Premier Anwaar-ul-Haq Kakar thanked the IMF team for its ongoing work with the Pakistan and praised the leadership of the minister for finance and revenue and the contribution of her team in taking the program forward. He also appreciated the role of Governor, State Bank of Pakistan. Caretaker minister for finance, governor State Bank of Pakistan, chairman Federal Board of Revenue, and senior government officials also attended the meeting. Nathan Porter acknowledged the efforts made by the Government of Pakistan in meeting the various program quarterly targets. He stated that these efforts have resulted in positive conclusion of the technical level talks. He said that both the teams had extensive talks on various aspects of the SBA and appreciated the role played by the finance minister and her team and the governor SBP along with his team in technical level talks. An IMF mission has been in Pakistan for the last two weeks for technical- and policy-level talks to review whether the government was on track to meet benchmarks set under the $3 billion standby

NEPRA delays decision on transferring above Rs 22b burden to power consumers

Okays amends to Hajj Policy 2024 to allow return of unutilized sponsorship schemes quota to Saudi govt ISLAMABAD

Staff RepoRt

The federal cabinet in its meeting chaired by Caretaker Prime Minister Anwaarul Haq on Wednesday accorded approval, upon the recommendation of Federal Board of Revenue (FBR), to impose 40 percent tax on windfall profit earned by banks on the foreign exchange transactions during the calendar year of 2021-22. The Finance Act, 2023 introduced a new section 99D in the Income Tax Ordinance 20121 which would enforce the imposition of tax on windfall income profits and gains of the banks. The cabinet also approved amendments to Hajj Policy 2024 under which the government and private unutilized sponsorship schemes quota would be returned to the Saudi government, PM Office Media Wing said in a press release. Besides, in accordance with the Saudi government’s laws, a foolproof monitoring system over the financial arrangements of Hajj groups organizers

would be enforced whereas under the new Hajj policy, the children below the age of 10 years would be able to perform the religious obligation. For the pilgrims above the age of 80 years, conditions for keeping an assistant/helper would be relaxed. However, Hajj group organizers would enter into agreements with the Hujjaj in this regard, enabling them to enlist services of local supporters during their stay in Saudi Arabia. This condition would be inserted in the agreement for provision of services and its violation would lead to imposition of fine and blacklisting of relevant Hajj group organizer, it was added. The meeting also sanctioned reduction in the hardship Hajj quota. A total of 50 percent quota of hiring the local supporters would be dedicated to those Pakistani students who are studying in different universities of the Kingdom of Saudi Arabia and their deployment would be made as welfare staff. The cabinet in its previous meeting had constituted a committee to bring improvement in the Hajj policy 2024 and under its recommendations the above mentioned

ISLAMABAD

ahmad ahmadani

amendments were made. The meeting also approved holding of negotiations on Bilateral Investment Treaties with Saudi Arabia and Qatar on the recommendation of the Investment Board. Upon the proposal of Ministry of Trade, the cabinet sanctioned constitution of a committee with regard to hearing of appeals against orders of Trade Organizations Regulators, exemption and flexibility in the provisions of Import Policy Order 2022 and Export Policy Order 2022. The minister for trade would act as convener of the committee whereas ministers for law and planning would be the other members. The federal cabinet, upon the recommendation of the interior ministry, also approved inclusion of Democratic Republic of Congo, Malawi, Zambia, Zimbabwe and Kyrgyz Democrat in the business visa list. It also allowed removal of the names of 18 persons from the Exit Control List (ECL) whereas placing of 9 other names in the list on the advice of the interior ministry.

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Fact-finding panel probing Faizabad sit-in mandated to grill ex-PM, COAS or CJP: CJP Isa ISLAMABAD

Staff RepoRt

Chief Justice of Pakistan Qazi Faez Isa on Wednesday said the government’s fact-finding commission, constituted to probe into the 2017 Faizabad sit-in, was empowered to summon the former prime minister, ex-army chief and thenCJP for ‘questioning.’ “The no one is exempt and the commission have the mandate to call anyone for investigation,” CJP Qazi Faez Isa observed while heading a three-member Supreme Court bench hearing a set of review petitions filed against the SC’s 2019 judgement in the Faizabad sit-in case. The bench, headed by CJP Qazi Faez Isa, comprises Justice Athar Minallah and Justice Aminuddin Khan. Authored by Justice Isa years before he took oath as the chief justice, the verdict had instructed the De-

fence Ministry and the tri-services chiefs to penalise personnel under their command who were found to have violated their oath. It had also directed the federal government to monitor those advocating hate, extremism and terrorism and prosecute them in accordance with the law. Adverse observations were also made against sev-

arrangement agreed in July. The IMF team led by Nathan Porter visited Islamabad from November 2-15, and held discussions with the authorities on the implementation of the SBA conditions.

The National Electric Power Regulatory Authority (NEPRA) on Tuesday reserved its decision on shifting a burden exceeding Rs 22 billion to all the electricity consumers of the country. Earlier, power distribution companies (XWDISCOs) filed request with NEPRA for adjustments on account of capacity charges, transmission charges & market operator fee, the impact of incremental units and impact of T & D losses on FCA and variables operation & maintenance charges for the 1st quarter of FY 2023-24 i-e July to September 2023, in line with the notified mechanism in this regard. And, the NEPRA on Tuesday conducted hearing on the application of XWDISCOs under the chairmanship of NEPRA chairman Waseem Mukhtar and announced that it would issue final decision later. NEPRA officials, during the course of hearing, said that XWDISCOs have sought a total increase of more than Rs22 billion and 56 crore and its impact will come depending on which month this quarterly adjustment is received from the consumers. They said if the increase in power tariff is approved then the power tariff hike in the next three months will be around Rs 1.25 per unit.

Govt slashes petrol price by Rs2.04, HSD by Rs6.47

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ISLAMABAD

Staff RepoRt

eral government departments for causing inconvenience to the public as the 20-day sit-in paralysed life in the twin cities. Subsequently, the Ministry of Defence, the Intelligence Bureau, the PTI, Pemra, the Election Commission of Pakistan (ECP), the Muttahida Qaumi Movement (MQM), AML chief Sheikh Rashid and Ijazul Haq filed petitions against the verdict. Most of the petitioners, however, withdrew their pleas, prompting the CJP to ask “why is everyone so afraid of speaking the truth”. During proceedings on Wednesday, Attorney General for Pakistan (AGP) Mansoor Usman Awan informed the bench that the federal government had formed a new fact-finding commission to probe into the sit-in. “Comprising three members, the fact-finding committee is tasked with investigation and fixing responsibility for the sit-in besides recommending legal action against them.

The federal government on Wednesday reduced the prices of petrol and high-speed diesel (HSD) by Rs2.04 and Rs6.47 per litre, respectively, for the next fortnight. According to a notification from the Ministry of Finance, the new prices of petrol and HSD are Rs281.34 and Rs296.71. Meanwhile, the prices of kerosene oil and light-diesel oil were reduced by Rs6.05 and Rs9.01 per litre, respectively, to Rs204.98 and Rs180.45. Informed officials had earlier predicted that the prices of petrol and HSD would decline by Rs8 to Rs10 per litre each, mainly due to lower prices in the international market. The officials had said that the international prices of both HSD and petrol had fallen over the past two weeks. However, the rupee had depreciated against the dollar during the same period, reducing the benefit of lower international prices for consumers. For price calculations, officials said that HSD had become about $9 per barrel cheaper on average, down from about $113 to $104, during the week, while the price of petrol had dropped by a dollar from $91 to $90. The rupee, on the other hand, lost Rs6 in value against the dollar, declining from Rs280 to Rs286.

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PM Kakar envisages ML-1 as most favourable transit route for region ISLAMABAD

Staff RepoRt

Caretaker Prime Minister Anwaarul Haq Kakar on Wednesday vowed to complete Main Line-1 (ML-1) project on a priority basis as it would improve connectivity between the country’s seaports with its economic zones, describing the ML-1 railway project under CPEC as most favourable transit route for the regional countries. While chairing a meeting held to discuss ML-1 railway project here at the PM House, PM Anwaarul Haq Kakar said the project would contribute to the improvement of communication network in the country.

The prime minister said there existed huge potential for foreign investment in Pakistan Railways and stressed the need for early materialization of its projects. He stressed meeting the targets of the project within stipulated time and directed the formulation of a comprehensive reform strategy for Pakistan Railways to maximize the benefits of the ML-1. Emphasizing transparency in the implementation of ML-1, he said the project would result in the creation of new employment opportunities and reduced travel time and freight rates. The meeting was told that the ML-1 project was in its final stage of modalities and its ground-breaking would be performed by early next year.

The project will be completed in two phases. In the first phase, a 930-kilometre-long rail track will be laid from Karachi to Multan. Also, the railway infrastructure damaged by the 2022 flood will be upgraded as per international standards. In the next phase, the 796-kilometrelong rail track from Multan to Peshawar will be laid in line with the requirements of the future. The meeting was attended by caretaker federal ministers including Shamshad Akhtar and Sami Saeed, PM’s Adviser Ahad Khan, PM’s Special Assistant Jahanzeb Khan, and senior officials of the ministries concerned.


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