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Geneva flood pledges: Pakistan receives only $1.48bn of $10.9bn

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  • Only $780m disbursed in project financing as of Sep 2023.
  • Govt receives roughly $700m in oil and commodity financing.
  • Saudi Arabia so far disbursed $600 million as an oil facility.

ISLAMABAD: Pakistan has, to date, received only $1.48 billion in funding from both multilateral and bilateral creditors as part of the Geneva pledges totaling $10.9 billion designated for the reconstruction of areas affected by devastating floods last year, The News reported on Wednesday.

The progress of project financing, however, has been alarmingly slow, with just $780 million disbursed as of September 2023. Pakistan endured severe flooding in the previous fiscal year, resulting in extensive human and financial hardships, but there was hope for rehabilitation, as donors committed $10.9 billion in the form of loans to support the reconstruction endeavors.

Islamabad, too, has successfully obtained approximately $700 million in oil and commodity financing. Nevertheless, it is an undeniable fact that the distribution of project loans has remained frustratingly sluggish, necessitating swift action from all federal and provincial agencies responsible for pulling off flood-related projects in their respective regions. Therefore, accelerating these efforts is imperative.

“The caretaker prime minister has also taken notice of this slow disbursement of committed pledges as the project loan acceleration depends upon the executing agencies’ ability to implement the projects on a fast-track basis,” a top official of the government confided to The News here on Tuesday.

The Islamic Development Bank (IsDB) had committed $3.6 billion on account of commodity financing, out of which $1.1 billion was planned to be disbursed on an annual basis over a year. Out of $3.6 billion, there was a planned disbursement of $300 million, which was underway during the current fiscal year.

However, the remaining $3.3 billion was still problematic because it was syndicated financing, which the IsDB planned to secure from other commercial banks. So far, there are indications that its interest rate might exceed and fall into a range of over 10%.

However, the oil-exporting giants argued before the government that if they secured local funding, it would be on the much higher side, keeping in view the higher interest rates in the domestic market.

The Kingdom of Saudi Arabia has so far disbursed $600 million as an oil facility out of total financing committed for commodities and oil financing. The government has heavily relied on the disbursements of project loans from the World Bank and Asian Development Bank. From the World Bank loans, there are projects going to be executed in Sindh and Balochistan for the construction of housing and agriculture sectors.

The premier is expected to chair an important meeting to review progress on donor-funded projects for flood-affected areas after his return from abroad, as one of such important meetings got postponed last week before his recent departure to the USA.

The implementation of flood-affected area projects needs acceleration in order to materialise maximum disbursements from the pledged loans, but without improving bottlenecks at execution levels, this wish will remain just a pipe dream.

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Pilgrims, good news! Applications for the Hajj are reopening.

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On Thursday, the Ministry of Religious Affairs declared that applications for the government Hajj program’s remaining quota will once again be accepted.

The ministry made this choice in an effort to guarantee that the entire quota is used and to prevent sending any seats back to Saudi Arabia that are not used.

On a first-come, first-served basis, an extra 5,000 pilgrims will be allowed to apply starting next week.

These applications will be accepted during a designated timeframe; the ministry is now considering a proposal to restrict the submission period to five days.

Under the Hajj program, the government had previously received 81,500 applications; the decision to accept additional pilgrims is intended to provide those who were unable to reserve a seat in the first round of applications a chance.

To further streamline the procedure and guarantee efficiency and justice, no lottery will be held for the new applications, in contrast to the previous one.

Officials stressed that this action is meant to guarantee that no chance to bring pilgrims to the Holy Land is missed, in addition to optimizing the quota distribution.

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FBR begins working on the fiscal year 2025–2026 budget.

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The budget for the next fiscal year 2025–2026 is being prepared by the Federal Board of Revenue (FBR), and stakeholders are being requested to submit their ideas by January 31.

All pertinent parties have received a formal letter from the FBR asking for their comments on the budget for the upcoming fiscal year.

Income tax, sales tax, federal excise duty, and revenue-raising ideas are among the particular proposals that stakeholders are asked to submit. The board is also seeking suggestions for expanding the scope of current taxes and widening the tax base.

Along with proposals pertaining to taxes, the FBR has requested feedback on general sales tax for all companies as well as ideas for phasing away tax exemptions gradually. The FBR has underlined how important it is to simplify tax processes and make rules more understandable for taxpayers.

The American Business Council of Pakistan, DHA Karachi, the Pakistan Small Chambers of Commerce and Cottage Industry, the Pakistan Business Council, the Pakistan Stock Exchange, and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) are among the business and trade associations that have been contacted for their suggestions.

In addition, the FBR has requested ideas from a wide range of organizations, such as the Pakistan Vanaspati Manufacturers Association, the All Pakistan United Retailers Association Karachi, the All Pakistan Bar Association, ICAP, the Pakistan Tax Bar Association, and tax advisory businesses.

Based on these stakeholders’ comments and ideas, the FBR will finalize its recommendations for the next finance bill.

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Pakistanis travel to India to attend Hazrat Khawaja Moinuddin Chishti Urs.

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In Ajmer Sharif, a group of pilgrims from Pakistan laid a traditional chaddar before the shrine of Hazrat Khawaja Syed Moinuddin Hasan Chishti.

Today, the traditional Chaddar was deposited at the Shrine of Hazrat Khwaja Syed Moinuddin Hasan Chishti (RA) in Ajmer Sharif by Pakistani Zaireen, accompanied by Mr. Tariq Masroof, Second Secretary, Pakistan High Commission, New Delhi.

A group of 89 Pakistani Zaireen are in Ajmeer Sharif from January 7–9, 2025, to help celebrate Hazrat Khwaja Syed Moinuddin Hasan Chishti’s (RA) 813th annual Urs Mubarak.

Following the traditional chaddar’s placement on behalf of the Pakistani people and government, the delegation prayed for Pakistan’s development and well-being.

The delegation was greeted by notable members of the Anjuman Moinia Fakhria Chishtia Khuddam Khwaja Sahib upon their arrival at the Dargah.

The annual Urs Mubarak of Hazrat Khwaja Syed Moinuddin Hasan Chishti (RA) is attended by Pakistani Zaireen in accordance with the 1974 India-Pakistan protocol for religious shrine visits.

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