Business

Finance ministry readies itself for upcoming IMF review

Published

1 year ago

Farwa

IMF team is scheduled to arrive in Islamabad on Nov 2 and is expected to stay in Pakistan till Nov 16.

IMF team is scheduled to arrive in Islamabad on Nov 2.
It is expected to stay in Pakistan till Nov 16.
Real bone of contention to be external financing needs.

ISLAMABAD: The Ministry of Finance has started preparing for the upcoming review talks with the International Monetary Fund (IMF) that expected to are expected to begin this week, reported The News on Tuesday.

According to the publication, the ministry has evaluated the progress on key targets, including achieving the disbursement of Rs87.5 billion in cash transfers to beneficiaries under the Benazir Income Support Programme (BISP).

IMF, under the quantitative performance criteria, had set the ceiling on the amount of government guarantees related target at Rs4,000 billion but the ministry was able to confine total guarantees to Rs3,853 billion till the end of September 2023. But the real bone of contention in the review talks would be the external financing needs of Pakistan.

The forex market functioning may also become a problematic issue as the IMF had placed the withdrawal of the circular on prioritisation in providing forex for certain types of imports introduced in December 2022 under a structural benchmark. It was placed under structural benchmark as the IMF wanted to ensure “full market determination of the exchange rate”.

The finance ministry in its meeting took note of the progress on quantitative performance criteria, continuous performance criteria, indicative target, and structural benchmark conditions agreed with the IMF for the end of September 2023 under the $3 billion standby arrangement (SBA) programme.

The IMF team is scheduled to arrive in Islamabad on November 2 and is expected to stay in the country till November 16.

The government has also kept the circular debt of the power sector within the envisaged limits as it went up by Rs227 billion in the first quarter and touched Rs2.5 trillion by the end of September 2023.

“The target of increasing circular debt has been achieved successfully which was agreed with the IMF under revised circular debt management plan (CDMP),” an official told The News on Monday.

Regarding cash transfer to the beneficiaries under BISP, the official said that the government has so far disbursed Rs89 billion till September 2023 against the envisaged target of Rs87.5 billion. He added that the unconditional and conditional cash transfer was “well within the desired target”.

The official said that the next installment would be disbursed under BISP in November 2023, after which the cumulative disbursement under the programme would touch Rs185 billion. The government has allocated a disbursement target of Rs460 billion for BISP in the ongoing fiscal year.

Meanwhile, State Bank of Pakistan (SBP) officials said that they are on track to meet the floor on net international reserves (NIR) which they said would stand at negative $14.5 billion till the end of September 2023.

The ceiling on net government budgetary borrowing from the SBP stood at Rs4,078 billion for the end of September 2023 as the government’s borrowing from the central bank remained zero.

The indicative target of FBR’s collection has been achieved as the floor on net tax revenues collected by the FBR was envisaged at Rs1,977 billion till the end of September 2023. The ceiling on net accumulation of tax refund arrears stood at Rs32 billion.

Business

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

Published

4 hours 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.