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Govt plans to launch $2bn bonds in upcoming budget

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1 year ago

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  • Govt plans to generate over $22bn through foreign loans in budget.
  • It failed to launch bonds in outgoing year because of poor credit rating.
  • It plans to increase salaries and pensions of govt employees.

ISLAMABAD: The government plans to generate $2 billion through the launching of Eurobonds in the upcoming budget for 2023-24. 

The budget makers are finding numbers crunching hard for the upcoming budget on account of dollar inflows through foreign loans at a time when the International Monetary Fund (IMF) programme has not been revived.

However, the government plans to generate over $22 billion through foreign loans in the upcoming budget, and numbers crunching is still underway with expectations that Islamabad will be able to generate $2 billion through the launching of Eurobonds in the next fiscal. 

The government had planned to launch international bonds in the outgoing fiscal year as well but failed to do so mainly because of the non-revival of the IMF programme, poor credit rating and increased bond rates and risks.

The government has also proposed an income levy on all kinds of assets and increasing withholding taxes on cash withdrawals and registration of motor vehicles in the upcoming budget for 2023-24. 

The government also plans to increase salaries and pensions of government employees from grade 1 to 16 and also for employees from 17 to 22 in the range of 30% and 20%, respectively. 

The pension bill would be more than the salary bill of the federal government. The total budget outlay has been envisaged over Rs14.2 trillion for the upcoming budget whereby the Federal Board of Revenue’s (FBR) tax collection is fixed at Rs9.2 to Rs9.5 trillion and the non-tax revenue target at Rs2.5 trillion. 

In order to achieve a primary balance of 0.1% of GDP, the provinces are expected to generate a 1% revenue surplus in order to achieve the primary balance into a slightly positive range in the next budget. The debt servicing is going to consume a major chunk of Rs7.5 trillion in the next budget.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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2 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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2 days ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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