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Pakistan, IMF will start talks to secure $1.2 billion finance

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The government and the staff mission of the International Monetary Fund (IMF) will today (Monday) kick-off formal talks for the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).

The IMF mission, led by Iva Petrova, is set to stay in Pakistan for roughly two weeks, until the first week of October, to carry out the two reviews.

Pakistan is on a 37-month IMF program aimed at stabilising the economy through fiscal discipline, structural reforms and steps to foster long-term growth.

With the reviews completed successfully, Pakistan will become eligible to receive around $1 billion under the EFF and another $200 million under the RSF, bringing the total planned financing to $1.2 billion by the end of November or early December.

The discussions will review Pakistan’s economic performance and program targets for the period up to June 30 based on data available up to June 30. The Pakistani authorities will also brief the IMF on the Sovereign Wealth Fund, the measures to eliminate circular debt, and the rationale behind not deregulating the sugar business.

The IMF will also be briefed on the current account deficit, primary surplus, foreign currency reserves and exchange rate. Expansion of tax base and reforms will be the focus of talks with the Federal Board of Revenue (FBR).

IMF to provide Pakistan $3.6 billion more in next 14 months

The Ministry of Energy will update the IMF on circular debt and reforms, while the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) will give updates on actions to fight money laundering and terrorist funding.

The IMF will also have discussions with the governments of Punjab and Khyber Pakhtunkhwa to strengthen tax and non-tax revenue collection, particularly measures to boost agricultural tax collection.

He claimed the government had neither issued any sovereign guarantee for a taxpayer-funded loan to buy aircraft for PIA nor was it buying aircraft for the privatised airline.

The clarification follows reports on social media that a minister was involved in negotiations for sovereign-backed finance for PIA jets.

The claims came after a meeting between Finance Minister Muhammad Aurangzeb and US Export-Import Bank Chairman John Jovanovich on the sidelines of the 81st session of the United Nations General Assembly in New York.

The conference was held to discuss the Reko Diq mining project and finance options for the purchase of planes for PIA, the Finance Ministry stated. Aurangzeb also talked about PIA’s interest in Boeing 787 Dreamliners and asked support for a finance package for aircraft and engines.

“Typically US Exim financing is used to finance US exports and may be used for asset-backed aircraft financing, meaning that a sovereign guarantee is not automatically required,” Schehzad said.

Talks with US Exim were not confined to PIA and included prospective finance in aviation, refinery projects and Reko Diq as part of larger Pakistan-US economic cooperation, he said.

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Saudi delegation eyes Karachi port investments as Pakistan expands maritime trade

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A Saudi business delegation led by Prince Mansoor bin Mohammed Al Saud has expressed interest in investing in Karachi’s port infrastructure, logistics links and green initiatives, Pakistani authorities said Monday, as Islamabad seeks to expand maritime cooperation with its longtime Gulf ally.

The visit comes amid efforts by Pakistan and Saudi Arabia to expand economic partnership from traditional trade, remittances and financial support to investment-based cooperation in infrastructure, energy and other areas. Pakistan is also seeking to modernize its ports, improve connections with land transport networks and expand transshipment operations to strengthen its position in regional trade.

Prince Mansoor, Chairman of the Saudi Arabian Chapter of the Saudi-Pakistan Joint Business Council, led a high-level corporate delegation to Karachi Port Trust (KPT), Port Qasim and South Asia Pakistan Terminals Limited, where officials were briefed on investment opportunities and ongoing modernization projects.

The briefings focused on the proposed 140-acre Maritime Business District in Karachi and the development of Manora Shipyard.

“Prince Mansour expressed keen interest in KPT’s Maritime Business District, Green port initiatives, terminal infrastructure expansion and connectivity initiatives, recognizing their scope for mutually beneficial Saudi investment and joint ventures,” the KPT said in a statement. The Saudi-Pakistan Joint Business Council serves as a platform for companies and investors from both countries to identify commercial opportunities, develop partnerships and form joint ventures. Prince Mansour has led several delegations to Pakistan as the two governments seek to translate their long-standing political and defense ties into greater private sector investment. In June, KPT signed a memorandum of understanding with its Saudi Arabian and Pakistani partners to explore the development of a maritime business zone on MT Khan Road in Karachi.

The proposed development involves the Saudi Arabian Business Council – Najd Gateway Holding Company, Arif Habib Dolmen REIT Management Limited and a consortium of Pakistani companies and is intended to accommodate commercial and maritime businesses.

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Bullish momentum continues as PSX gains over 300 points

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The Pakistan Stock Exchange (PSX) opened in positive territory on Wednesday with the benchmark KSE-100 gaining 309 points in early trade.

The index rose to 179,600 points, continuing the upward momentum in the market at the start of the third trading day of the business week.

The latest gains follow a strong performance in the previous session, when the stock market maintained its upward trend throughout trading.

At the close of Tuesday’s session, the KSE-100 Index had surged by 5,448 points to settle at 179,335 points.

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Pakistan, Saudi Arabia investors launch fund to boost trade, investment

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A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the countries’ broader push to deepen two-way trade and private sector investment.

The Saudi-Pakistan Joint Business Council, formed by the governments of both countries, said the fund’s initial size is “multi hundred million”, which is expected to expand based on opportunities across sectors.

Three-fourths of the fund will be invested in Pakistan, while the rest will be invested in Saudi Arabian projects, the council said in a statement.

The launch of ⁠the ⁠fund comes at a time when Islamabad and Riyadh are deepening longstanding ties, especially in defense, amid few signs of a breakthrough in the months-long US-Iran conflict.

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