Business

IMF team to visit Pakistan for first review talks on Nov 2

Published

1 year ago

Farwa

IMF Mission Chief to Pakistan Nathan Porter will lead delegation.
Finance ministry has started preparations for talks with IMF.
Ministry met to get updates on all structural benchmarks, criteria.

An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan for talks regarding the initial assessment of the country’s $3 billion standby arrangement (SBA) on November 2.

The finance ministry, too, has started preparing for the upcoming talks with the global lending institution.

The development was confirmed by the IMF’s resident representative, Esther Perez Ruiz, as the cash-strapped nation, currently functioning under a caretaker administration, endeavours to steer towards economic revival after the IMF approved its loan programme in July this year.

The loan programme averted a sovereign debt default with Pakistan receiving its first $1.2 billion tranche from the Washington-based lender soon after the approval.

“An International Monetary Fund team led by Mr Nathan Porter will field a mission to Pakistan starting in November 2 on the first review under the current Stand-By Arrangement,” Ruiz told Reuters.

Meanwhile, the finance secretary has convened an important meeting of all ministries, divisions, and departments for tomorrow (Thursday) to get an update on all structural benchmarks, indicative criteria and performance criteria agreed with the IMF for the end of September 2023.

As per The News, the finance ministry has made all-out efforts to restrict the budget deficit target within limits agreed with the lender.

It had warned the provinces to trip down spending, and the latest provisional estimates suggest that Punjab and Sindh had made significant progress on it.

Another challenge for restricting the overall fiscal deficit is the rising debt servicing requirements that would, of course, balloon and stand beyond Rs8.3 trillion to Rs8.5 trillion for the current fiscal year 2023–24 against the initially envisaged target of Rs7.3 trillion in the wake of surged policy rate of the central bank.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

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1 hour ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

1 hour ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.