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Chinese bank rolls over $600m loan to Pakistan: PM Shehbaz

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  • Rollover boosts cash-strapped country’s foreign exchange reserves.
  • Friendly countries’ assistance improving economic indicators, PM says.
  • Exim Bank of China latest institution to roll over Pakistan’s loan.

Prime Minister Shehbaz Sharif said Tuesday that a bank in China rolled over a $600 million loan to Pakistan, boosting the cash-strapped country’s forex reserves.

The premier was addressing the launching ceremony of the Prime Minister’s Youth Sports Initiative in Islamabad, where he announced to allocate more funds for the development of the youth if he comes into power again.

“Yesterday, Exim Bank of China rolled over $600 million to Pakistan, which increased our foreign currency reserves,” PM Shehbaz Sharif said and added that assistance from friendly countries is improving economic indicators.

However, he didn’t elaborate further on when this payment was due.

The country is showing signs of economic stability after the International Monetary Fund (IMF) approved a $3 billion bailout programme and transferred the first tranche of $1.2 billion under a nine-month stand-by arrangement.

Having teetered on the brink of a sovereign debt default, Pakistan earlier this month also received $1 billion from the United Arab Emirates and $2 billion from Saudi Arabia, as both were reassured by the agreement struck between Islamabad and the IMF at the end of June.

Pakistan’s foreign exchange reserves held by the central bank slightly increased by $61 million to stand at $4.524 billion in the week ending July 7, the State Bank of Pakistan said last Thursday.

IMF projections

An IMF statement said the bailout programme would focus on an appropriately tight monetary policy aimed at curbing price pressures in the South Asian country of 220 million people.

The IMF expects inflation to average 25.9% in fiscal year 2024, though it anticipates a substantial moderation to around 16% towards the end of that period.

With the key policy rate at 22%, the government has projected inflation at 21% for fiscal 2024.

“A continued tight, proactive and data-driven monetary policy is warranted going forward,” the IMF statement said.

The ailing Pakistani economy has faced an acute balance of payments crisis with only enough central bank reserves to cover barely a month of controlled imports. The IMF projects it will have an import cover of 1.4 months in fiscal 2024.

The IMF deal, a lifeline for Pakistan after it was on the cusp of default, came after eight months of tough negotiations over fiscal discipline.

“A market-determined exchange rate is also critical to absorbing external shocks, reducing external imbalances, and restoring growth, competitiveness, and buffers,” the IMF said.

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Reaction to the PTI protest call by Fazlur Rehman

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Maulana Fazlur Rehman, speaking on a private television station, said that the PTI is always coming to the streets, which really lessens the impact of a protest.

He also suggested to the PTI leadership that rather than carrying on with the agitation, it should finally put a hard hand down, which would be the final nail in the coffin.

He continued, citing the JUI protests as an example, saying, “We had a strong grip over our protesters and workers, so neither road was closed nor any property damage occurred during protests.”

The PTI has the right to protest, but Maulana Fazlur Rehman described the party’s agitation strategy as insufficient, stating that it is currently being “exposed which maynot be a good sign’.

Ali Amin Gandapur, the chief minister of Khyber Pakhtunkhwa, promised not to go back home unless the PTI founder was freed. During their demonstration, Imran Khan’s wife, Bushra Bibi, encouraged the party officials to come up with strategies to avoid being arrested.

According to an alleged audio recording, she stated that November 24 will be a loyalty test for PTI members.

Additionally, the government of Islamabad has enforced section 144 for a period of two months, which prohibits processions, rallies, demonstrations, and meetings of five or more individuals in the city.

As per the notification, the prohibition forbade meetings in any public space inside the boundaries of Islamabad, including the Red Zone, which encompasses important government buildings, diplomatic missions, and other sensitive sites.

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PTI representatives conjecture in the media over Imran’s approval of bail: FIA investigator

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The hearing on the PTI founder’s bail application in the Toshakhana-2 case has resumed at the Islamabad High Court (IHC), with Justice Mian Gul Hasan Aurangzeb serving as the presider.

The hearing was attended by the defense attorney, Barrister Salman Safdar, and FIA prosecutor Zulfiqar Abbas Naqvi.

Judge Mian Gul Hasan Aurangzeb told the FIA prosecutor to “leave the media alone and exempt yourself from them” in order to avoid commenting on the media. The statement followed the prosecutor’s assertion that the bail would be granted, which had previously been reported by media sources.

In addition, the court questioned whether the receipts in question were issued in the name of Bushra Bibi or the PTI founder itself. Bushra Bibi’s name was on the receipts listed in the challan, according to Barrister Salman Safdar.

Defense arguments
The defense expressed displeasure about the case’s 3.5-year registration wait. The prosecution has swore in Sohaib Abbasi and made Inamullah Shah a crucial witness without requiring them to take an oath.

Barrister Salman Safdar highlighted that multiple agencies, including NAB, FIA, Police, and the Election Commission, have initiated actions related to the Toshakhana case, suggesting procedural redundancy.

Regarding a phony Toshakhana receipt, he contended, the Kohsar Police Station has also filed a case.

Position of the prosecution
The FIA prosecutor, Umair Majeed Malik, maintained that the valuation of the jewelry set mentioned in the case would be explained in the prosecution’s evidence.Justice Mian Gul Hasan Aurangzeb remarked, “If the media does not spread sensationalism, how will they conduct their business?” He dismissed rumors about his health, stating that he was present and hearing the case despite such reports.

Status of Co-Accused
The court was informed that Bushra Bibi, a co-accused in the case, is currently on interim bail and awaiting a decision by Judge Afzal Majuka. Barrister Salman Safdar expressed hope that Judge Majuka would soon announce his verdict.

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Naqvi visits Fazl to express gratitude for contributions to the 26th amendment.

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Federal Interior Minister Mohsin Naqvi convened with Jamiat Ulema-e-Islam Fazl (JUI-F) leader Maulana Fazlur Rehman to deliberate on issues of shared concern and the current political landscape in the nation.

In today’s meeting in Islamabad, Mr. Naqvi asked about Maulana Fazlur Rehman’s health and sent his best wishes for the JUI chief’s well-being and future pursuits.

Naqvi extended his appreciation to Maulana Fazlur Rehman for his crucial contribution to the enactment of the 26th Constitutional Amendment, which he characterised as a significant milestone in Pakistan’s legislative history.

Following the meeting, Naqvi commended Mr. Fazlur Rehman’s commitment to the nation, asserting, “Maulana Fazlur Rehman has consistently prioritised Pakistan’s interests, and his contributions to the country are indispensable.”

The experienced politician reaffirmed his dedication to Pakistan and its populace, stating, “Our priority has consistently been Pakistan and the well-being of its citizens.”

Senator Kamran Murtaza attended the meeting.

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