Tag: deal

  • Arif Alvi, establishment strike deal?

    Arif Alvi, establishment strike deal?

    Senior analyst Muzamil Suharwardy has alleged that President Arif Alvi will announce the election date very soon as part of a deal he has striken with the establishment.

    During a programme on Naya Daur TV, the analyst said that Chief of Army Staff (COAS) General Asim Munir and Inter-Services Intelligence (ISI) Director General Lt Gen Nadeem Anjum met with President Alvi to finalize a deal between both parties. President Alvi will not voice any objections regarding the Official Secret Act and Army Act, Suharwardy narrated.

    The analyst also said that the President asked the establishment to provide a smooth path so that he could face the public with dignity. Not objecting to the Official Secret Act and Army Act will be part of the agreement.

    According to Suharwardy, the Election Commission of Pakistan (ECP) will file a plea stating that the president has no right to announce the election date. The matter will then shift to the Supreme Court (SC), where the upcoming chief justice, Qazi Faez Esa has already said that no such case can be heard until the Supreme Court Practice and Procedure Bill case is finalized.

    Chief Justice Umar Atta Bandial will consequently face criticism from both the Pakistan Tehreek-e-Insaf (PTI) and the Pakistan Democratic Movement (PDM).

    “A fixed match will be played between President Alvi and the establishment,” Suharwardy said.

  • Pakistan’s forex reserves decline to $4.31 billion, covering less than a month’s worth of imports

    Pakistan’s forex reserves decline to $4.31 billion, covering less than a month’s worth of imports

    The State Bank of Pakistan (SBP) has experienced a continuous decline in foreign exchange reserves for the third consecutive week. This decline is attributed to the country’s ongoing struggle to secure a deal with the International Monetary Fund (IMF).

    The central bank’s statement indicates that the reserves decreased by $72 million to reach $4.31 billion as of May 12, primarily due to external debt payments. This amount is sufficient for less than a month’s worth of imports.

    In contrast, commercial banks in Pakistan hold net foreign reserves amounting to $5.62 billion, which is $1.01 billion higher than the central bank’s reserves. Therefore, the country’s total liquid foreign reserves amount to $9.93 billion.

    Pakistan’s economy is currently facing significant challenges, exacerbated by financial difficulties and the delay in reaching an agreement with the IMF. Such an agreement is crucial as it would provide much-needed funding to mitigate the risk of default.

    Earlier, on May 11, the State Bank of Pakistan (SBP) witnessed a decline of $74 million in foreign exchange reserves within a week, resulting in reserves amounting to $4.38 billion. Additionally, commercial banks held net foreign reserves of $5.6 billion.

    Reports indicate that the IMF remains skeptical and is urging Islamabad to take further actions to unlock the loan program, despite assurances from friendly countries regarding external funds for Pakistan.

    Pakistan has been asked to present a repayment plan for a $3.7 billion loan to the IMF in June and demonstrate stronger support from friendly nations to fulfill its commitments.

  • Pakistan places first order for discounted Russian crude oil

    Pakistan places first order for discounted Russian crude oil

    Pakistan has placed its first order for discounted Russian crude oil under a new deal negotiated between Pakistan and Russia, following months of discussions.

    State Minister for Petroleum, Musadik Malik, confirmed that one cargo will dock at Karachi port in May.

    Pakistan will only purchase crude oil, not refined oil, and imports are expected to reach 100,000 barrels per day if the initial transaction goes smoothly. Pakistan’s Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included after a trial run.

    A delegation from Russia arrived in Pakistan earlier this month to discuss the payment mode. During these talks, the Russian side requested that the deal with Moscow be kept secret as they do not want the disclosure to other Russian crude buyer countries.

    Consequently, Pakistan’s top officials decided not to disclose the mode of payment and the exact discount. Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March.

  • Pakistan to receive first-ever shipment of low-cost oil from Russia in May

    Pakistan to receive first-ever shipment of low-cost oil from Russia in May

    Minister of State for Petroleum, Musadik Malik, announced on Sunday that Pakistan will receive its first-ever shipment of low-cost oil from Russia next month, which is expected to benefit the general public.

    In an interview with a private news channel, the minister confirmed that the government had finalised a deal with Russian authorities following successful dialogues. The shipment is expected to arrive in May via cargo. The minister also ensured that the government will pass on the cost savings to consumers.

    Regarding power and gas tariffs, Malik stated that the government is planning to introduce different tariffs for the poor and elite classes. He stated that the government has already made progress in this regard and hopes to issue separate billing for the underprivileged and elite class. The new tariff structure is expected to provide relief to the poor segment of society.

    Last month, officials from the Petroleum Division had disclosed that Pakistan was in talks with Russia to procure crude oil at around $50 per barrel, which is $10 per barrel lower than the price cap imposed by the G7 countries on oil imports from Russia due to its conflict with Ukraine.

    The officials had shared that Moscow was keen on completing all the prerequisites, such as the mode of payment, shipping cost with premium, and insurance cost, before signing the agreement with Pakistan.

  • Pakistani rupee bounces back after steep decline against dollar

    Pakistani rupee bounces back after steep decline against dollar

    During the early hours of trading on Friday, the Pakistani rupee (PKR) saw a significant recovery against the US dollar, with an increase of 4.51 per cent. The inter-bank market quoted the PKR at Rs272.78 by 11:50 am, representing an increase of Rs12.31 against the US dollar.

    This follows a steep decline of 6.66 per cent or nearly Rs19 to settle at an all-time low of Rs285.09 against the US dollar on Thursday.

    On Thursday, the State Bank of Pakistan’s Monetary Policy Committee (MPC) raised the key policy rate by 300 basis points (bps) to 20 per cent, aiming to curb inflation.

    The committee also emphasized the need for energy conservation measures to ease pressure on the external account and meet import requirements. The MPC expects this decision to stabilize inflation expectations and bring it to a medium-term target of 5 per cent-7 per cent by end-FY25.

    Globally, the US dollar eased back from a 2-1/2-month high against the yen on Friday, and weakened toward its first weekly loss since January against major peers. This comes as traders tried to gauge the path for Federal Reserve policy.

    According to Geo, the dollar index, which measures the currency against the yen, euro, and four other major peers, fell 0.11 per cent to 104.85, from its peak of 105.36 earlier this week. The index has decreased by 0.36 per cent since last Friday.

    Meanwhile, oil prices, a critical currency parity indicator, dropped on Friday, but remained poised for a weekly gain due to renewed optimism regarding China’s demand recovery, outweighing concerns over growing crude inventories in the US and tighter monetary policy in Europe.

    This is an intraday update.

  • Pakistan will start importing crude oil from Russia in March

    Pakistan will start importing crude oil from Russia in March

    Pakistan and Russia have decided on the deadline for crude oil exports in late March after the conclusion of the annual inter-governmental commission between the two countries concluded.

    The Minister of State for Petroleum, Musadik Malik, said that Pakistan intends to import 35 per cent of its entire crude oil needs from Russia. He added that Russia does not have liquefied natural gas (LNG) for Pakistan currently.

    Russian Energy Minister Nikolay Shulginov also stated that Pakistan will pay for its energy purchases from Russia in the currencies of friendly nations when they begin in late March.

    Last year, the government of Pakistan sent representatives to Russia, and as a result, the state minister for petroleum of Pakistan announced that Russia would supply crude oil at a reduced price.

    Russian oil and gas have not historically been widely imported by Pakistan.

    Islamabad and Moscow agreed during the negotiations that the oil and gas trading transaction will be set up such that both nations can profit economically after reaching an agreement on the technical details.

    The leaders also decided to expand energy infrastructure investment, improve energy trade, and strengthen energy cooperation under advantageous strategic and commercial circumstances.

    A “Comprehensive Plan for Energy Cooperation” that will serve as the framework for future work and be completed in 2023 has been agreed to by both parties.

    The federal and provincial governments of Pakistan welcomed the Russian side to consider prospective initiatives, including those involving public-private partnerships and asked the Russian businesses to investigate these options.

    “Both sides have resolved the pending issues related to the exchange of information on certificates of origin of goods with the use of an electronic verification system and shall endeavour to finalise the above-mentioned protocols by the end of May 2023,” the joint statement issued in this regard read.

    In order to improve their mutual collaboration and talk about issues pertaining to connectivity and logistics in Central and South Asia, the authorities decided to designate focus points for each side.

    It was also resolved at the talks held over the last three days that creative business practises, such as bartering, would be used. They also agreed to further investigate the possibility.

    “In the context of the desire of both parties to promote regional integration and Eurasian connectivity, the two sides agreed to share information towards developing and improving rail and road infrastructure,” the statement read.

    The documents signed during the session included an “Agreement regarding cooperation and mutual assistance in customs matters,” a “Protocol on the Exchange of Documents and Data on the Customs Value of Goods Transported,”  and a “Working Agreement on the Airworthiness of Aeronautical Products.”

    The seventh IGC’s debates and choices served as the foundation for the eighth session, which moved the process ahead and looked at new possibilities for collaboration.

    Additionally, Pakistan and Russia decided to extend their cooperation in the areas of commerce and investment, energy, communication, transportation, higher education, industry, railroads, banking, finance, customs, agriculture, science, and technology.

  • Pakistani delegation leaves for Russia to hold discussions on cheaper oil

    Pakistani delegation leaves for Russia to hold discussions on cheaper oil

    Minister of State for Petroleum Dr Musadik Malik and the petroleum secretary have flown to Russia to hold talks over oil and gas, a source with knowledge of the situation said on Monday on the condition of anonymity.

    The trip comes as the country struggles to meet domestic gas supply demands as winter approaches while battling to contain a current account deficit swelled by energy payments, mostly for oil.

    Ishaq Dar, the federal minister of finance, had already stated that the delegation will discuss an oil contract with Moscow.

    “We should pray the visit is successful and the government manages to secure a deal on favourable terms and conditions,” Dar said during an interview.

    Given the sharp rise in the cost of energy commodities in recent months, buying Russian oil at lower prices has gained popularity. This has been difficult, especially for emerging economies like Pakistan, whose energy requirements are mostly met by imports of petroleum.

    The State Bank of Pakistan (SBP) said that during the first four months of the current fiscal year, Pakistan imported petroleum products worth $7.547 billion.

    Dar had earlier stated, speaking to a crowd in Dubai on November 13, that Islamabad hoped to clinch an import pact with Moscow on conditions comparable to those of New Delhi. He said that Pakistan could purchase oil from Russia since India was doing the same, and the US had been informed of this.

  • US firm to buy Pakistan’s Cloudways for $350 million

    US firm to buy Pakistan’s Cloudways for $350 million

    Cloudways, a Pakistani company that offers small and medium-sized businesses cloud hosting and software as a service (SaaS) capabilities, will be acquired by New York Stock Exchange-listed company DigitalOcean Holdings for $350 million.

    A large amount of the consideration, according to a business statement posted on Wednesday, would be paid over a 30-month period after the transaction closes in September.

    According to DAWN, this will be one of the largest acquisitions in Pakistan’s history due to the hefty amount of the transaction. According to the company, this deal will make workflows simpler for small and medium-sized companies that are seeking less complicated ways to develop and grow their digital operations.

    The projected revenue for Cloudways in fiscal 2022 is more than $52 million, which would indicate a three-year compound annual growth rate of more than 50 per cent.

    Since 2014, DigitalOcean and Cloudways have been strong collaborators. About 50 per cent of Cloudways’ clients are currently powered by DigitalOcean infrastructure.

    Serving a clientele that is both global and expanding, both companies will service more than 124,000 clients who make monthly payments of over $50, or around 84 per cent of the pro forma company’s total revenue.

    For specific small and medium-sized enterprises wishing to outsource their on-ramp to the internet, Cloudways offers straightforward on-boarding and day-to-day management.

    The company assists such organisations in offloading the challenges of cloud infrastructure so they may focus more on managing and growing their operations.

  • ‘Nawaz Sharif satisfied with script’: Is Nawaz Sharif coming back to Pakistan in 2022?

    ‘Nawaz Sharif satisfied with script’: Is Nawaz Sharif coming back to Pakistan in 2022?

    Speculations are rife that Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif is returning to Pakistan.

    Senior journalist Saleem Safi took to Twitter and hinted at Nawaz Sharif’s return from London. Safi tweeted, “Mian Nawaz Sharif is planning to come back to Pakistan in January. According to the plan, he will go to jail on his return. Then he will appeal the courts for relief and removal of previous sentences.”

    “The transfer of DG NAB Lahore is linked to this chain of events while Nawaz Sharif is satisfied with the script,” tweeted Safi.

    Federal Minister for Information and Broadcasting Fawad Chaudhry, without taking any names, took a jibe at the return of Nawaz.

    The minister tweeted, “Those who wait for deals to return home will always be dwarfs in politics.”

    “The PML-N should get ready to polish the boots, but the only difference is no one is putting the foot forward to get the boots polished,” tweeted Fawad.

    Fawad further said, “You are a reminder of the dark age of Pakistan. The direction of the winds is not on your side anymore. When there is light, the darkness disappears and this is what happened in Pakistan.”

    Special Assistant to Prime Minister Dr Shahbaz Gill tweeted, “Nawaz Sharif’s visa extension in the United Kingdom (UK) has been rejected – currently on appeal but he knows visa will be rejected and he will be deported. This is being presented as a political decision – cowards are never brave.”

    Prime Minister (PM) Imran Khan during a meeting of the party spokespersons held in Islamabad on Friday questioned how a plan could be hatched to bring PML-N supremo Nawaz Sharif back to the country.

    Talking about the Opposition parties, the premier said there have been rumours of ending former prime minister Nawaz Sharif’s sentence. “How can the sentence of a convicted person be overturned?”

    The premier recalled that the court had disqualified Nawaz in the Panama Leaks case, and to date, he was unable to provide a money trail for his assets.

  • Taliban secretly escorted Americans to Kabul Airport in deal with US

    Taliban secretly escorted Americans to Kabul Airport in deal with US

    The US military negotiated a secret arrangement with the Taliban that resulted in members of the militant group escorting clusters of Americans to the gates of the Kabul airport as they sought to escape Afghanistan, two defence officials told CNN.

    One of the officials also revealed that US special operations forces set up a “secret gate” at the airport and established “call centres” to guide Americans through the evacuation process. One of the military officials said the arrangement with the Taliban “worked beautifully”.

    Americans involved in an unofficial network dedicated to helping Americans and vulnerable Afghans said there were problems — particularly in the beginning — as the Taliban turned away US citizens and legal permanent residents the militant group was supposed to allow through.

    The two US defence officials said Americans were notified to gather at pre-set “muster points” close to the airport where the Taliban would check their credentials and take them a short distance to a gate manned by American forces who were standing by to let them inside amid huge crowds of Afghans seeking to flee. The US troops were able to see the Americans approach with their Taliban escorts as they progressed through the crowds, presumably ready to intervene in case anything happened.