Epaper – June 3-2022 LHR

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Friday, 3 June, 2022 I 3 Dhul-Qadah, 1443 I Rs 15.00 I Vol XII No 334 I 12 Pages I Lahore Edition

‘Iron-clad FrIendshIp’: chIna agrees to reFInance $2.3 bIllIon Fund g

tors for refinAncing Agreed, cAsh inflow expected ‘shortly’ islamabad

p

Staff rePort

AKistAn’s ‘iron-clad friend’ china thursday came to its rescue with the chinese banks agreeing to refinance pakistan with $2.3 billion worth of funds which finance Minister Miftah ismail said will “shore up pakistan’s foreign exchange reserves.” taking to social media blogging site, twitter, finance Minister Miftah ismail tweeted: “good news. the terms and conditions for refinancing of rMB 15 billion deposit by chinese banks (about $2.3 billion) have been agreed.” the finance minister added that inflow is expected “shortly” after some routine approvals from both sides, adding that this will help shore up the country’s foreign exchange reserves. the news comes as a lifeline as the country is already facing an uncertain economic situation due to a delay in the revival of the stalled multibilliondollar international Monetary fund (iMf) programme. the development comes as a massive relief to economic policymakers that saw foreign exchange reserves held by the state Bank of pakistan (sBp) fall to $10.09 billion, with the level staying at less than 1.5 months of import cover. the agreement with chinese banks

is expected to bolster the reserves and enable the country to make import payments while lending some support to the rupee as well which has lost over 25% since the start of the outgoing fiscal year 2021-22. the restoration of pakistan’s delayed iMf programme rests on the government’s capacity to make fiscal adjustments of about 2.5 percent percent percent of the gross domestic product (gdp) by increasing revenues and reducing expenditures in the upcoming budget 2022-23. earlier on saturday last, Miftah ismail said that pakistan is expected to reach an agreement with the iMf in June to resurrect an enhanced bailout package to support the cash-strapped country’s sagging economy. he said that the country is projected to need usd 36-37 billion in foreign financing in the next fiscal year. speaking at a webinar, ismail revealed that at present, the government was not considering raising fresh foreign debt from the global capital market and commercial banks after the country’s international bonds lost almost onethird of their value, while their yields went up significantly. he said that instead of economic growth, controlling inflation was the top priority of the government. Miftah for fast edible oil import process, increase in jewelry exports

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AssistAnce to help shore up foreign exchAnge reserves

Miftah ismail has directed to expedite the process for import of edible oil from Malaysia and indonesia to ensure smooth supply to the consumers and stabilise the price hike of edible oil. while presiding over a meeting of the committee on edible oil availability on thursday, the minister was informed that the price of edible oil is rising globally which would have a significant impact on the trade bill of pakistan. federal Minister rana tanveer hus-

sain also gave a workable option to enhance local production of canola oil seeds for import substitution and to ensure availability of the commodity in the wake of global pressure on supply chain. he further directed that required steps should be undertaken to enhance the local production, so that its impact on foreign exchange reserves could be minimised. separately, Miftah ismail empha-

sised Jewellers Association to play its due role in strengthening the national economy by enhancing the export of Jewellery. the finance minister held a meeting with a delegation of All pakistan Jewellers Association led by its president Mr. shehzad iqbal at the finance division, today. chairman fBr and senior officers from finance and commerce Ministries attended the meeting. the delegation gave an overview of the jewellery sector in pakistan and its contribution in the economy. they also highlighted the issues being faced by the Jewellers community regarding taxation and sought government’s support to address their issues and provide relief in taxation. it was apprised that these issues are proving as a great hindrance in the development of this sector. Miftah ismail highlighted the commitment of the present government to provide a conducive and friendly environment to the business community in pakistan. he acknowledged the contribution of the jewellery sector in the economic development and assured the delegation to provide maximum relief in taxation to this sector. the delegation thanked the finance minister for addressing their issues and assured the finance minister about growth of this sector with cooperation of the present government.

2ND AZADI MARCH

SC returns PTI plea with objections

islamabad Staff rePort

the supreme court of pakistan on thursday returned the constitutional petition of the pakistan tehreek-e-insaf (pti), seeking directions for the federal and punjab governments to allow the party to hold a peaceful protest in islamabad. the apex court’s registrar office noted that the petitioner did not approach the appropriate forum to redress the grievances. the sc’s registrar office returned the petition after raising objections that a similar issue

had already been decided in the islamabad high court Bar Association case. the registrar office said the supreme court has already given a verdict on the point raised in the petition. the top court’s registrar objected that the supreme court cannot take up the matter that has been already decided. it also raised the objection the petition contained scandalous matter in certain paras. the pti filed the petition, seeking to bar the incumbent government from using force, coercive measures or ‘intimidation tactics’

such as raiding homes of party workers, unlawful restrictions and blocking entry points. the constitutional petition, filed under Article 184(3) through Ali Zafar, termed the recent arrests a breach of fundamental rights of free movement, peaceful protest, association, assembly and freedom of speech. the pti in its plea asked the apex court to direct federal and provincial governments against violent measures against the peaceful marchers in future besides also issuing directives to the inspector generals of police (igs) against the arrest of leaders and activists of the pti. in earlier verdict, the top court allowed pti to stage a protest at islamabad’s h-9 and stopped the government from carrying out raids on houses and offices when imran Khan led his long march towards islamabad on May 25. in its orders, the apex court also stated that pti supporters “have demonstrated from their past conduct that they will be peaceful in the exercise of their constitutional rights”. the order maintained that the recent and ongoing actions of the government “are arbitrary, illegal, discriminatory, unlawful, and in violation of law as well as the letter and spirit of the constitution”.

Rush of motorists at a filling station in Lahore ahead of POL price hike Thursday night. Photo by Zubair MehfooZ

Govt jacks up petrol price by another Rs 30 islamabad ShahZad Paracha

the federal government has decided to raise the price of petrol by another rs30, taking it to highest ever rs209 per litre, to meet the international Monetary fund (iMf) demands. the federal finance minister Miftah ismail on thursday night announced that the federal government has decided to raise the prices of petroleum besides ending the tax amnesty for construction sector announced by last pti government. the new price of petrol, after the latest hike, will be at rs209.86, diesel at rs204.15, kerosene oil at rs181.94 and light diesel at rs178.31, he announced and the new prices will come into effect from midnight tonight. the finance minister said that the government is still facing a loss of around rs9 in petrol despite a hike of rs30 as we are not collecting any tax on the fuel. he said that government will reach an agreement with iMf in June and we are making negotiations with lender on daily basis.

iMf had demanded to withdraw subsidies on petrol and electricity, he added. Miftah also said that government will have to end the subsidies announced by last government however he claimed that government will not impose any new tax in next year budget. Miftah also said that pti government took huge loan in last four years comparable to loan taken by successive governments in last 71 years. he also said that government will not increase tax on salaried class in next budget. finance minister said that pakistan has also requested to iMf for extension in program and the lender is agreed as pakistan will start repaying the iMf loan from next year so it’s important to us to be in program. in one question, he said that the one month expenditure of government is rs40 billion and if we minimized the expenditure then we can reduce just rs4 billion. he again reiterated that government will not impose any new tax in June and government of pakistan cannot sell the petrol in loss.

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