Epaper – April 17 LHR 2020

Page 1

CMYK

Friday, 17 April, 2020 I 23 Shaban, 1441 I Rs 15.00 I Vol X No 289 I 12 Pages I Lahore Edition

Govt cuts interest rate to 9pc to stimulate economy g

Central bank says DeCIsIOn tO reDuCe POlICy rate taken In lIght OF reDuCtIOn In grOwth anD InFlatIOn exPeCtatIOns

KARACHI staff report

t

he state bank of Pakistan (sbP) on thursday slashed its key interest rate by 2 per cent, bringing it down to 9 per cent from 11 per cent. this move, the third cut since March 17 when the rate was 13.25 per cent, is aimed at stimulating economic activity after global financial institutions warned the world is heading towards a recession feared to be deeper than the 2009 financial crisis. In a statement, sbP’s Monetary Policy Committee (MPC) announced that the decision was taken in light of reduction in growth and inflation expectations. “the MPC decided at its emergency meeting today, to cut the policy rate by a further 200 basis points to 9 per cent. this reduces forward looking real interest rates (defined as the policy rate less expected inflation) to around zero, which is about

g

InFlatIOn Is exPeCteD tO be ClOse tO lOwer enD OF 11-12 Per Cent thIs FIsCal year

the middle of the range across most emerging markets,” the statement read. “the MPC was of the view that this action would cushion the impact of the coronavirus shock on growth and employment, including by easing borrowing costs and the debt service burden of households and firms, while also maintaining financial stability. It would also help ensure that economic activity is better placed to recover when the pandemic subsides,” it added. according to the statement, in its meeting on March 24, the MPC had noted the worsening outlook for global and domestic economic activity in the wake of the coronavirus pandemic and had reaffirmed that it was ready to take whatever further actions become necessary in response to the evolving economic impact of the pandemic. however, MPC stated, since the last meeting, the global and domestic outlook has further deteriorated. “the world

coronavirus in

pakistan

economy is expected to enter into the sharpest downturn since the great Depression, contracting by as much as 3 per cent in 2020, according to projections released this week by the IMF. this is a much deeper recession than the 0.07 per cent contraction during the global financial crisis in 2009,” it stated. “Moreover, there are severe risks of a worse outcome. In addition, global oil prices have plummeted further, with futures markets suggesting low prices will persist. Domestically, high-frequency indicators of activity―including retail sales, credit card spending, cement production, export orders, tax collections, and mobility data from google’s recently introduced Community Mobility reports―suggest a significant slowdown in most parts of the economy in recent weeks. On the inflation front, both the March CPI out-turn and more recent weekly sPI releases in april also show a marked reduction in inflation momentum,” it added. the MPC stated that while there is exceptionally high uncertainty about the severity and duration of the coronavirus shock, the developments discussed above imply further downward revision in the outlook for growth and inflation.

CONTINUED ON PAGE 05

Govt assures businesses of complete support amid corona crisis STORY ON PAGE 09

Pakistan among 76 countries to get debt relief from May 1 g

FM QureshI says DeVelOPIng COuntrIes wOulD get relIeF On bOth the PrInCIPal anD Interest aMOunts ISLAMABAD staff report

Foreign Minister shah Mahmood Qureshi on thursday said that on Prime Minister Imran khan’s appeal, the g20 countries have decided to provide debt relief to 76 developing countries, including Pakistan, and this decision will be effective from May 1. addressing a press conference in the federal capital, he said that this is a very timely decision and will give developing countries a fiscal space to make spending on their worst-hit segments of population amid the coronavirus pandemic. he said that despite many cautious voices, the prime minister had launched an appeal to the world community on april 12, calling for debt restructuring for the developing world as the extraordinary spending by them had shrunk their fiscal space badly impacting the revenue generation and exports. he added that after scraping, Pakistan could only manage an economic stimulus package of $8 billion though it was unprecedented. FM Qureshi said that the developing world faced difficulties of no fiscal space and a fragile health

Sugar millers term probe report ‘onesided’, won’t accept forensic report either LAHORE staff report

CONFIRMED CASES:

6,929

RECOVERED:

DEATHS:

SINDH:

PUNJAB:

1,645 2,008

131

3,276

KP:

BALOCHISTAN:

AJK/GB:

ISLAMABAD:

912 46/237

305 145

the Pakistan sugar Mills association (PsMa) on thursday submitted a detailed response to the Federal Investigation agency (FIa) over the sugar crises probe report, terming it as “propaganda” and “one-sided”. In a 45-page letter to the FIa director general (Dg), the PsMa said that allegations levelled against sugar mill owners were false and that the investigative agency had not included their view in the report following a probe into the recent sugar crisis. the body rejected the probe report as “propaganda” and claimed it was “one-sided”, adding that it would not accept a forensic report either. the association also raised objections against the investigative committee officers, saying that the FIa report was based on misleading assumptions. It said that the officers on the investigation committee did not have any experience in the field of business or any knowledge of market-related facts and the investigation committee was not even aware of the fact that the sugar business is the only business in Pakistan in which the price of sugarcane is fixed but not of sugar. the reply stated that often, the government allows exports in case of excessive domestic production of sugarcane; export of sugar is absolutely not unheard of. the PsMa said that there was no shortage of sugar during the period being investigated by the committee, something which the committee itself acknowledged in the report. the report mentions the rate of sugar as rs51 per kilogram in December 2018 but not that the sugar was produced in the 2017-18 season, it added. the response also stated that sugarcane was at its highest production level in recent history, bringing

system. On one side, their revenue and exports are under bad impact, while on the other, there expenses are on increase as they need more hospitals, ventilators and other equipment, he added. however, he said, the prime minister told the world that the immediate response from the world could be a debt relief which would have its spin-off impact on the developed world too. he said that following the PM Imran’s call, the united nations (un) and International Monetary Fund (IMF) chiefs endorsed the proposal and thus prompting the g20 countries to make a “historic decision”. “behind the prime minister’s appeal, there was a threadbare discussion at Foreign Office (FO), government’s economic team, with Pakistan’s permanent representatives at new york and geneva, his letters and discussions with around 30 foreign ministers and heads of the international financial institutions,” he said.

CONTINUED ON PAGE 05

ALSO SEE EDITORIAL PAGE 06

more inside

Pakistan records 20 COVID-19 deaths in 24 hours STORY ON PAGE 03

prices down and resulting in cheap sugar reaching the masses. with the end of the overproduction season and the arrival of new crop, sugarcane prices have returned to their original level, which has led to an increase in sugar prices, it added. the association said that the report acknowledges, on factual basis, that there is stiff competition among all sugar mills yet at the same time calls it a cartel, which is a laughable notion. the reply said that the investigative committee was unable to understand that forward contracts were considered a normal part of trade around the world and the PsMa has nothing to do with gambling. the reply implicates brokers as solely responsible for this, whose actions have had a negative impact on the sugar business. It further said that a letter was written to the inquiry commission asking to allow a clarification of its position, but to no avail, therefore, in light of all the facts, it has become clear that the FIa report was misleading and false. the association warned that if they were not provided justice, they would approach the courts. Copies of the reply were sent to Prime Minister Imran khan, all four chief ministers and special assistant to Prime Minister on accountability barrister shahzad akbar.

CMYK

Govt backtracks on KPT chief’s removal STORY ON PAGE 02

Pakistan to export sanitisers, masks in wake of COVID-19 STORY ON PAGE 02

Coronavirus to bring Asia’s economic growth to halt for first time in 60 years STORY ON PAGE 10


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
Epaper – April 17 LHR 2020 by Pakistan Today - Issuu