Business

Pakistan, IMF discuss energy sector losses in virtual talks

Published

1 year ago

Farwa

Govt shares new Circular Debt Management Plan with IMF.
FPA and quarterly tariff adjustment to be revised upward.
IMF asks govt to chalk out effective strategy to tackle this issue.

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) discussed the energy sector losses in the context of a cut in the circular debt during the current fiscal year in a virtual meeting on Wednesday, The News reported.

With the goal of eliminating the accumulation of circular debt, the government showed its commitment to adjusting the fuel prices and the quarterly tariff.

The government also shared a new Circular Debt Management Plan (CDMP) with the lender for which the baseline tariff was previously increased.

Now the fuel price adjustment (FPA) and quarterly tariff adjustment would be revised upward in order to reduce accumulation of the circular debt. The IMF team raised the issue of the sustainability of the CDMP as the pace of recoveries declined.

The government was asked to chalk out an effective strategy to tackle this issue. This meeting was held virtually at the technical level and it was expected that the newly inducted Minister for Finance Dr Shamshad Akhtar might hold a meeting with the IMF team virtually in the coming weeks.

The IMF mission is expected to hold the first review in October or November on the basis of official macroeconomic figures for the first quarter (July-Sept) period of the current fiscal year.

Pakistan and the IMF struck $3 billion bailout package under Standby Arrangement (SBA) in July 2023, out of which Islamabad so far secured $1.2 billion as upfront installment.

Now, two reviews would be done to release the remaining $1.8 billion till the end of March/April 2024.

Business

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

Published

8 hours 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

8 hours 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.