Business

Bilateral debt restructuring not under consideration: SBP governor

Published

2 years ago

Farwa

SBP Governor Ahmad says restructuring not under consideration.
$0.4bn paid out of $3.6bn for this month, says Governor Ahmad.
Govt to decide appropriate time to issue Eurobond, governor adds.

KARACHI/ISLAMABAD: State Bank of Pakistan (SBP) Governor Jameel Ahmad clarified Monday that Pakistan was not considering a bilateral debt restructuring that Finance Minister Ishaq Dar had mentioned earlier.

“As of now there is no plan to enter into any debt restructuring. Absolutely no doubt about it. We are not considering any such plan; so there is no question of what will be the haircut,” he said during a briefing to analysts, according to The News.

After presenting the federal budget for FY2024, FinMin Dar said that the government was working on possibly restructuring its bilateral debt regardless of whether it completes its IMF review.

The SBP governor said most of the debt is bilateral and multilateral as they have paid large amounts of commercial debt and will pay Eurobonds when due, said Topline Securities, citing the governor.

The governor said that out of the total external repayment amount of $3.6 billion due this month, $0.4 billion has already been paid. The remaining balance of $2.3 billion will be rolled over, while $0.9 billion needs to be financed.

The total debt requirements for FY2024 will amount to approximately $23 billion, according to the SBP, which will be evenly distributed across four quarters.

In the next monetary policy statement, the SBP will come up with how to fund this depending upon IMF and other factors.

The governor highlighted that discussions are ongoing with IMF and hopeful that the review will conclude soon.

He expected that Rs1 trillion would be transferred to the government due to the profit earned by the SBP after retaining a specific portion during FY2024.

The SBP expects the current account deficit (CAD) for FY2023 will close to $3.5 billion (worst case $4 billion) due to policy induce import restrictions and available liquidity (exports and remittances).

The CAD for FY2024 will also be below $4 billion.

According to Ahmad, the government will decide the appropriate time to issue Eurobond, keeping market fundamentals and credit rating in mind.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.