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Initiatives to Raise the Tax-to-GDP Ratio: Aurangzeb

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Pakistan is beginning discussions with the IMF for Climate Resiliency Funding, and the Finance Minister has stated that reprofiled talks with China are positive as the country attempts to extend payment times.

China has responded positively to Pakistan’s request to extend the maturities of debt related to the Belt and Road program, the Finance Minister stated in a Bloomberg interview.

The nation wants to “create enough space” to reduce electricity, according to Muhammad Aurangzeb, by lengthening the maturities of debt taken out for power plants.

“These are the early stages of those negotiations,” he stated. The former banker for JPMorgan Chase & Co. visited China in July and spoke with Chinese officials about debt.

To avoid having to borrow from the IMF again, he said, the nation must continue to exercise self-control in order to raise the tax-to-GDP ratio from below 10% to 13.5%.

With 25 IMF programs, he said, Pakistan is one of the most frequent borrowers. While the Pakistani delegation is attending the conference in Washington, the government hopes to start talking about asking the IMF for more funding through its Climate Resiliency Fund.

Pakistan would target industries like retail and agriculture that have resisted past taxation initiatives in order to achieve its objective, he added. By January, the provinces of the country will begin working on agriculture-related laws, with the goal of beginning collection by July.

The central bank of Pakistan has lowered its benchmark interest rate by 450 basis points, from a record 22% to 17.5%, for three consecutive meetings, he added. The policy rate may be lowered by the Central Bank during its upcoming meeting on November 4.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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