Business

Cabinet committee develops plan to trim Rs1.4 trillion expenditures

Published

1 year ago

Farwa

CCER to ask govts to reduce officer-to-staff ratio to 1:3 in gradual manner.
It is unclear how much time frame has been calculated to implement reforms.
Govt has decided to focus on feasible public private partnership projects.

ISLAMABAD: The Cabinet Committee on Economic Revival (CCER) has sought a roadmap that includes a detailed plan for the freezing of salaries, pensions and allowances as well as reducing officer-to-staff ratios as it looks to cut down expenditures by Rs1.4 trillion, reported The News on Monday.

According to the publication, the Anwaar-ul-Haq Kakar-led caretaker government has finalised a number of recommendations under an ambitious austerity plan. The CCER is expected to ask the federal and provincial governments to reduce the officer-to-staff ratio to 1:3 in a gradual manner.

However, it is unclear how much time frame the CCER will be giving to the federal and provincial governments for the implementation of the plan.

“The caretaker government has sought plans to freeze salaries, allowances, and pensions during the current financial year,” showed the CCER deliberations.

The publication reported that the government seeks to review untargeted subsidies and grants to cut down expenditures.

There are accumulated bills of subsidies amounting to Rs1.064 trillion sought in the last budget for the current fiscal year. Out of this, the power sector subsidies are going to consume a major chunk to the tune of Rs0.97 trillion. The government has sought funding of Rs1.4 trillion in the shape of grants to different institutions and departments in the budget, so all this massive funding needs to be reviewed in detail.

The committee has also suggested that the federal government let go of unnecessary or untargeted dole-outs.

Furthermore, it has been recommended that the Public Sector Development Program (PSDP) at the federal level and Annual Development Plans (ADPs) at the provincial level be curtailed by putting an end to new schemes and transferring all provincial nature schemes to the federating units.

In the work done by the Ministry of Finance, it has been estimated that the re-focusing of PSDP schemes on account of the federal mandate could save Rs315 billion for the federal government for the current fiscal year.

The caretaker government also plans to phase out federal expenditure on devolved subjects. The reduction in operational spending on account of devolved ministries could save Rs328 billion.

However, it is unclear if the caretaker government will be able to abolish all the politically motivated or provincial nature development projects from the PSDP before handing the reins of government.

The government has decided to focus on feasible public-private partnership (PPP) projects. It is estimated at the federal level, 50% of the PSDP portfolio would be shifted to the Public Private Partnership (PPP) Authority, known as the P3A pipeline.

It seeks credit guarantees from Infrazamin, an innovative for-profit credit enhancement facility, to enhance private sector investment in infrastructure, enhance allocation to the Viability Gap Fund (VGF) for undertaking infrastructure projects in PPP mode, climate-resilient infrastructure through green bonds and debt swaps, and Sustainable Finance Bureau to assist corporates and public organisations to tap Environment Sustainability Gap (ESG) funds.

The government wants to stick to the condition of the IMF under which no supplementary grants will be allowed for the current fiscal year.

Under the $3 billion standby arrangement (SBA) programme of the IMF, the Fund has slapped a ban on supplementary grants during the programme period. So it will continue to persist in the current fiscal year.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

3 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

2 weeks ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.