Business

Pakistan’s seeks $4 billion in approval from the IMF from Gulf countries.

Published

6 months ago

Farwa

The government is reportedly looking into other options to meet its needs for outside cash, including speaking with Mashreq Bank and Dubai Islamic Bank.

The CEO of Dubai Islamic Bank and Minister of Finance Muhammad Aurangzeb met virtually to talk about investment prospects, according to sources.

To meet its needs for outside funding, Pakistan is looking to banks in the Gulf to provide $4 billion in commercial loans. There are $26.4 billion in debt repayments that are due in the current fiscal year, which presents significant issues for the nation in terms of external finance. Moreover, Pakistan wants to repay $12 billion in loans from Saudi Arabia and China.

This is a good time to point out that Pakistan and the IMF signed a $7 billion, three-year aid package agreement on July 13.

As per the statement, Pakistan should be able to establish stronger, more inclusive, and resilient growth and consolidate macroeconomic stability with the help of the new program, which is subject to approval by the Fund’s Executive Board.

The IMF’s executive board must approve the agreement.

Nathan Porter, the head of the Fund’s mission to Pakistan, was quoted in the IMF statement as saying, “The program aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers, and remove economic distortions to spur private sector-led growth.”

Business

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

Published

4 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

4 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.