Business

Pakistan vows to fulfill IMF promises after averting default threat

Published

2 years ago

Farwa

PM Shehbaz hopes IMF board will approve $3 billion bailout.
“The agreement will go through, God willing,” premier says.
IMF executive baord will meet on July 12 to approve loan.

Prime Minister Shehbaz Sharif said Wednesday that Pakistan would fulfill its commitments made to the International Monetary Fund (IMF) to secure a short-term financing deal, helping the cash-strapped nation avert a default in the near future.

A staff-level agreement on the $3 billion stand-by agreement (SBA) was reached between the local authorities and the IMF team, with the lender’s executive board to give final approval on July 12.

The economy has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt, while months of political chaos have scared off foreign investment.

Inflation has rocketed, the rupee has reached a record low against the dollar, and the country is struggling to afford imports, causing a severe decline in industrial output.

“The agreement will go through, God willing,” PM Shehbaz said during a ceremony to mark a decade since the China-Pakistan Economic Corridor (CPEC) signing in Islamabad.

Finance Minister Ishaq Dar has said Pakistan stands to receive a first installment of $1.1 billion, which will come only after the board’s approval.

Pakistan has averted the threat of default, the premier said, noting that the IMF deal has given the country an opportunity to move towards development.

“We need to work hard and save the poor people from inflation. The elite (or those with money) need to play a role in this regard,” he said.

The prime minister thanked President Xi and the Chinese government for supporting Pakistan, especially when it awaited the staff-level agreement with the IMF.

He also acknowledged the assurances from Saudi Arabia, the United Arab Emirates, and Islamic Development Fund, which helped Pakistan overcome its financial crisis.

In his address to the ceremony, the premier termed CPEC a “very transparent” project and said the Chinese government and companies made investments of $25.4 billion investment in various projects.

He said thousands of Chinese workers and their Pakistani counterparts worked day and night to create a history of commitment and vitality of goodwill between the two sides.

Business

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

Published

7 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

7 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.