thursday, 3 february, 2022 I 1 rajab, 1443 I rs 15.00 I vol XII no 216 I 12 Pages I Karachi edition
IMF board approves 6th tranche oF loan prograM For pakIstan
ISLAMABAD
t
Shahzad paracha
HE International Monetary Fund (IMF) board has approved the 6th tranche of their six billion dollar Extended Fund Facility program for Pakistan. Federal Minister for Finance and Revenue Shaukat Tarin late Wednesday night took to social media site, Twitter, to make the announcement. “I am pleased to announce that the IMF Board has approved the 6th tranche of their programme for Pakistan”. The IMF will now transfer a one billion dollar amount to Pakistan under the EFF program, bringing the total disbursements to about US$3.02 billion. It is pertinent to note that the IMF had set two prior conditions, approval of the Finance supplementary bill, the State Bank Amendment bill, from parliament. After dragging feet for eight months, the government of Prime
Minister Imran Khan signed off all the conditions that it tried to resist first in June and then in October last year. The government agreed to take Rs800 billion measures through a combination of cut in expenditures and imposition of about Rs500 billion in taxes, including Rs20 per litre fuel tax, to revive the stalled $6 billion IMF programme. The Pakistan Tehreek-i-Insaf government managed to approve both bills from both houses of the parliament last week. Under the Finance supplementary bill, the government, withdrawing the Rs343 billion exemptions, has imposed 17 percent sales tax on around 144 items on the instruction of IMF. On the other hand, the government has also given complete autonomy to the State bank of Pakistan under the SBP Amendment Bill, 2021. The Federal government cannot borrow money from the Central bank However, the government now can borrow at a market rate from commercial banks, which will benefit pri-
coronavIrus In
pakIstan
CONFIRMED CASES:
1,436,413
LAST UPDATED AT 9:56 AM ON FEBRUARY 2, 2022
DAY'S DEATH TOLL:
NEW CASES:
29
6,047
RECOVERED:
DEATHS:
1,304,980 29,330 SINDH:
PUNJAB:
544,722
482,316
KPK:
BALOCHISTAN:
196,328
34,501
AJK/GB:
ISLAMABAD:
38,805/10,737
129,004
vate banks owned by business elites. Earlier, the government had decided to keep the Covid-19 expenditures audit report confidential in violation of the IMF agreement. The report has disclosed Rs40 billion irregularities in the PM’s Covid relief package. In November last year, Tarin had admitted that as a result of the IMF’s condition, “difficulties of the lower income groups will increase marginally but targeted subsidies will be given”. The inflation rate in January skyrocketed to 13% -the highest in two years. To qualify for the tranche, the Public Sector Development Programme was cut by Rs200 billion or 22% and the “contingency grants” were reduced by Rs50 billion, Tarin had said in November. The tax collection target of the Federal Board of Revenue (FBR) has been increased to over Rs6.1 trillion – an addition of roughly Rs350 billion The revised petroleum development levy target is now Rs356 billion – down from Rs610 billion that the government had set in the budget. Pakistan will have to ensure a primary budget surplus after paying the cost of debt servicing against the budget target of Rs376 billion deficit, requiring strict fiscal discipline that would have severe implications for the economy. It is worth mentioning that the IMF and Pakistan on November 21, 2021, had reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF but the agreement was subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms.
PM Imran Khan set to embark upon historic China trip today ISLAMABAD Mian abrar
Prime Minister Imran Khan is all set to meet Chinese President Xi Jinping with a list of measures aimed at seeking China’s support in stabilisation of Pakistan’s ailing economy. Economic agenda would be at top of Khan’s priorities as Khan would sit down with the political elite of China. Khan Wednesday chaired a preparatory meeting to give final touches to his upcoming visit to Beijing here at the Prime Minister’s House. ChInese CoMPanIes ready to Invest BIllIons of dollars: Sources privy to the details told Pakistan Today that two consortium and 17 companies have been identified who are interested to investing in ten sectors in Pakistan. “At least one investment has been identified as ready to execute with US$ 250 million while 6 MoUs are ready to be signed with a cost of US$ 10.4 billion,” the sources said. The source said a company has purchased 100 acres of additional land to establish a Special Economic Zone of world standard with investment of US$ 250. Meanwhile, a major fashion company has invited fellow textile companies to invest in Pakistan a cluster of textile companies. “They plan to have exports of US$ 400 million and employ 20,000 Pakistani youth within two years,” the sources said.
Bandial sworn in as chief justice
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more inside
Covid-19 spread remains under key threshold for second day
ISLAMABAD Staff report
Justice Umar Ata Bandial was sworn in as the nation’s 28th chief justice during a ceremony held at the presidency on Wednesday. President Dr Arif Alvi administered the oath to Justice Bandial. The event was attended by Prime Minister Imran Khan, Senate Chairman Sadiq Sanjrani, National Assembly Speaker Asad Qaiser, Army Chief Gen Qamar Javed Bajwa, Foreign Minister Shah Mehmood Qureshi, Minister for Information Fawad Chaudhry, judges of the Supreme Court and lawyers. Elevated to the top judicial office, Justice Bandial will now face a veritable mountain of 51,766 cases pending before the Supreme Court alone. The total backlog of cases in the national judiciary, including the superior courts as well as district courts, stands at a whopping 2.1 million. The judge will serve in the office until September 16, 2023, before being replaced by Justice Qazi Faez Isa who has recently been at the centre of criticism for failing to disclose information about his family’s foreign assets. Justice Bandial served as chief justice of the Lahore High
The sources said that expression of interest has been identified by 12 companies with US$ 21.52 billion. foreIgn dIreCt InvestMent: The source said that Pakistan is looking at integrating Pakistan into the Chinese industry and technology supply chains. The source added that Pakistan is offering regionally competitive incentives to foreign investors in SEZs and STZs seeking Chinese investment in textile, recycling, agriculture, technology, auto industry and infrastructure. The source added that Pakistan specifically needs Chinese support to establish Cotton Processing Free Zone in Balochistan. Khan, who is visiting Beijing after a twoyear-gap, is set to attend the opening ceremony of Winter Olympics being held in Beijing on February 4. The premier would also hold very important meetings with Chinese President Xi Jinping, Prime Minister Li keqiang and other key officials of the CPC during the four-day visit. The premier may also ask his Chinese counterpart to roll over the loans taken by Pakistan for different projects including the energy sector under CPEC. The government of Pakistan has already settled its issues with the independent power producers (IPPs) by reducing the rate of return. Khan also may hold meetings with the Russian President Vladimir Putin and the heads of state of five central Asian states in Beijing.
STORY ON PAGE 02
Court (LHC) between 2012 and 2014. Out of the total strength of 17 justices, seven will have the opportunity to become the chief justice while the remaining 10 will retire as Supreme Court judges. As per the scheme of seniority, Justice Isa would retire on October 25, 2024, and be replaced by Justice Ijaz ul-Ahsan who would assume the office for 282 days. Then, on August 4, 2025, the post would go to Justice Syed Mansoor Ali Shah who would remain in office until November 27, 2027, before being succeeded by Justice Munib Akhtar. Justice Yahya Afridi would be the nation’s next top judge from December 14, 2028, until January 22, 2030.
The newly-elevated Justice Ayesha A. Malik will become Pakistan’s first female chief justice on January 23, 2030. She would keep the office until June 2, 2031. Who Is JUstICe BandIal?: Born on September 17, 1958, in Lahore, Justice Bandial received his elementary and secondary education in Lahore, Kohat, Rawalpindi and Peshawar. “He secured his B.A. (Economics) degree from Columbia University followed by a Law Tripos degree from Cambridge University and qualified as Barrister-at-Law from Lincoln’s Inn,” the Supreme Court’s website read. In 1983, Justice Bandial enrolled as an advocate of the LHC and later, as an advocate of the Supreme Court.
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Widespread rain wind-thunderstorm with snowfall over hills expected in country STORY ON PAGE 03
trade deficit decreases by 30pc in January: Muzammil STORY ON BACK PAGE
‘Hapless’ Nawaz Sharif wants to stay in London based on fake report: Sheikh Rasheed STORY ON BACK PAGE