Tag: loans

  • Aanay waalay dinon mein koyi barra toofaan barpa ho sakta hai: Hamid Mir

    Aanay waalay dinon mein koyi barra toofaan barpa ho sakta hai: Hamid Mir

    Senior journalist Hamid Mir has warned that all is not well in Islamabad and a big storm may hit the corridors of power in the near future.

    While speaking on Geo News’ programme Geo Pakistan, Mir said, “Maujooda haqoomti ittehaad mein sab kuch acha nahin hai aur Islamabad mein honay waali siyaasi garma garmi aanay waalay dinon mein koyi barra toofaan barpa kar sakti hai” (All is not well within the incumbent coalition government. The political heat in Islamabad could create a big storm in the coming days).

    Mir said that if Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan dissolves the Khyber Pakhtunkhwa (KP) and Punjab Assembly, then the heat in Islamabad can create a huge storm.

    He was of the view that junior coalition parties could also force Prime Minister (PM) Shehbaz Sharif’s government to hold general elections.

    Separately, differences can also be seen within Pakistan Muslim League-Nawaz (PML-N) as Finance Minister Ishaq Dar and his predecessor Miftah Ismail put forward their conflicting views on the state of Pakistan’s economy.

    While Dar argued that the country’s performance criteria are up to the mark and “complete” for the International Mone­tary Fund’s (IMF) ninth review, Ismail insisted that the default risk wouldn’t subside unless the Fund came to the table.

    Mulk mein default ka khatra hai, says Miftah Ismail

    Miftah Ismail said on Tuesday that there is still a threat of the country defaulting until the government completes the IMF ninth review. On the contrary, Dar said that he was not concerned whether the IMF team arrived or not for the ninth review, asserting that the IMF could “not dictate” the government.

    Appearing on Geo News’ programme ‘Aaj Shahzeb Khanzada Kay Saath”, Miftah rang alarm bells, stating that Pakistan is in jeopardy. “It has gone back in jeopardy and as long as IMF is not back on the table, the threat of default will remain high,” he emphasised.

    Moreover, he believed that the path Pakistan is on might take the country toward default urging the incumbent government to take steps to prevent that from happening.

    On the show, the former minister blamed Khan for the ongoing economic crisis. He said, “Khan is responsible for pushing Pakistan towards default; he is the one who broke his promise with the IMF; Khan is the one who wanted to derail the IMF programme when we tried to revive it under PM Shehbaz Sharif’s leadership.”

    When asked that the incumbent finance minister Ishaq Dar has said several times that IMF is being unreasonable, Miftah responded that first we need to take a good look at ourselves.

    “When the IMF gives you a loan, this means they are helping you out. We need to look at ourselves, why did we go to the IMF previously. Dealing with the IMF is not an easy task,” Miftah said. He reiterated that if the IMF didn’t come to the table, “It will be very difficult to save Pakistan from a default”.

    He stressed that the country needed to take action on certain matters to bring the IMF mission to Pakistan, saying that funds from neighbouring countries could only last the country for weeks.

    Earlier this month, Pakistan ended its immediate default risk when the State Bank of Pakistan (SBP) made a payment of $1 billion for sukuk bond.

  • ‘September sitamgar hoga’: Sheikh Rasheed announces Khan’s march in Islamabad

    ‘September sitamgar hoga’: Sheikh Rasheed announces Khan’s march in Islamabad

    Former interior minister and Awami Muslim League chief Sheikh Rasheed said on Sunday that Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan will give a call to his supporters to march towards Islamabad once the flood situation eases down.

    Rasheed took to his Twitter handle and warned: “Sitambar Sitamgar ho ga (September will be cruel)”.

    The former federal minister pointed out that the International Monetary Fund (IMF) has made yet another agreement of Rs608 billion with the government. “First they robbed the treasury and now the people’s pockets”, he said.

    “Floods have opened the eyes of the people of Sindh, the floods have destroyed the Pakistan Democratic Movement’s (PDM) reputation. How will other countries give aid when the people of the country refuse to give money to money launderers?”

    He said that the people can not bear the burden of increasing petrol and power prices, yet the “government continues to raise them”.

    In a series of tweets, he said that IMF knows that there is a weak majority of the government and people can come to the streets.

    “The time is not far when factories and shops will be closed, people will be on the streets”, he warned again while adding that floods have become a matter of “political point scoring”.

    Rasheed’s statement came a day after Imran Khan warned the government to stop the “persecution” of his party workers otherwise he will again march on Islamabad.

    He said the government would have “no place to hide” in the event he comes to Islamabad.

  • ‘Pakistan is not going to default’: Miftah Ismail

    ‘Pakistan is not going to default’: Miftah Ismail

    The pressure on the Pakistani rupee will “vanish” in a few weeks, according to Finance Minister Miftah Ismail, who also stated that Pakistan is not going to default.

    He predicted that dollar inflows into Pakistan will exceed dollar outflows soon, creating a “stable exchange rate”. Additionally, he said that within three months, imports will “organically” decline, and exports will soar as a result of the government’s impending strategic plan.

    “It’s no fun going to the world, to the International Monetary Fund (IMF), to the Chinese, to the Saudis, asking for money,” said Miftah Ismail in an interview with Mosharraf Zaidi, CEO of advisory services firm Tabadlab.

    According to Miftah, the IMF loan influx will be completed within weeks.

    “The only thing is that from August 1 to August 15, the directors of the IMF are on vacation. That’s why the meeting is starting a little later than I’d prefer,” he added.

    The finance minister defended the government’s policy of limiting imports to stop the dollar from leaving the country during the discussion. “Nobody is happy with the surgery, but sometimes it’s necessary,” he added.

    Without mentioning the country, Miftah stated that Pakistani authorities had requested a “friendly country” to shore up foreign exchange reserves through dollar-denominated deposits but it turned down Islamabad’s request, saying the latter never returned the deposits.

    The friendly nation subsequently expressed interest in purchasing shares of publicly traded government-owned companies under a buyback arrangement, giving Islamabad the option — but not the obligation — to repurchase the same ownership at a 5 per cent higher price.

    In addition to stating that “there’s not even (a question of) price discovery,” the minister stated that the country “tried to help Pakistan and is giving a great deal”.

    =Earlier today, the Pakistani rupee again fell to a record low versus the US dollar. During intraday trading on Wednesday at 1:00pm, the US dollar reached Rs239.

  • Economic crisis: Finance minister in Doha to hold talks with IMF

    Economic crisis: Finance minister in Doha to hold talks with IMF

    Finance Minister Miftah Ismail along with his team left for Doha on Tuesday to hold talks with the International Monetary Fund (IMF).

    The ministry said that talks with the IMF mission started today (May 18).

    The review talks are expected to continue for a week and will focus on striking a staff-level agreement for the release of a $1 billion tranche under the Extended Fund Facility (EFF).

    It has been reported that Pakistan will have to convince the IMF to revive the stalled $6 billion programme at a time when the government had not started eliminating the unfunded fuel subsidy after making a commitment with the forum.

    The dollar rate is at its peak in the country. Currently, the rupee touched 200 against the US dollar in the open market. This spell of the dollar’s persistent rise against the rupee began last week.

  • New bank timings announced by SBP, Saturday will now be observed as a working day

    New bank timings announced by SBP, Saturday will now be observed as a working day

    Pursuant to the federal government’s directive issued on April 13, the State Bank of Pakistan (SBP) would observe a six-day work week with amended timings.

    During Ramzan, working hours for the central bank, development finance institutions (DFIs), microfinance banks (MFBs), and all commercial banks, are as follows:

    Monday to Thursday and Saturday from 8:00 am to 3:00 pm with a prayer break from 1:00 pm to 1:30 pm.

    Fridays: from 8:00 am to 1:00 pm without a break, according to a notification from SBP.

    Public dealing hours

    Banks and MFBs have been advised to adhere to the following public dealing business hours:

    Monday through Thursday and Saturday from 8:00 am to 1:00 pm (no break).

    Fridays from 8:00 am to 12:00 pm (no break).

    Banks and MFBs may observe longer business (banking) hours for public dealing from 8:00 am to 2:00 pm (without break) on weekdays excluding Fridays, depending on their business needs.

    The abovementioned schedule will take effect immediately and will not be changed or withdrawn unless it is amended or canceled.

  • SBP determined to curb inflation, improve foreign exchange reserves

    SBP determined to curb inflation, improve foreign exchange reserves

    In a recent interview, the Governor of the State Bank of Pakistan (SBP), Dr. Reza Baqir expressed concern over the continuous deterioration in foreign exchange reserves but remained optimistic that a renewal of loans will be witnessed in the near future, which, coupled with SBP’s initiatives, will enhance market confidence.

    He claimed that the decline in reserves is “clearly alarming, but we are convinced that the central bank’s initiatives will prevent further deterioration”.

    According to data issued by the central bank on April 7, the reserves massively declined by $728 million to $11.32 billion as of April 1.

    The decline, according to SBP, is primarily attributable to debt repayment and government payments linked to the settling of an arbitration judgment.

    In addition to this, the currency even hit new lows in the week, forcing the SBP to intervene by boosting the policy rate, declaring a 100 per cent cash margin on 177 commodities with instant effect, and hiking the markup percentage by 2.5 per cent for borrowing under the Export Finance Scheme (EFS).

    In response to the Monetary Policy Committee’s (MPC) recent rate hike, Baqir stated that the move was made to tackle growing inflation and lessen external pressures. “The foreign exchange market has been under a lot of pressure for more than a month. A number of factors contributed to it: first, there was political uncertainty; second, our reserves were drained due to debt payments”.

    Consequently, the Pakistani rupee ended its devaluation run on April 8, and the KSE-100 Index witnessed positive sentiment, ending the day with an impressive gain of 658 points.

    The SBP Governor also discussed the skyrocketing petrol prices, which remain elevated because of the Russia-Ukraine conflict, adding more pressure on the local currency.

    The central bank made a determined decision after analyzing the statistics to lower inflation, improve foreign exchange reserves, and boost business confidence.

  • Pakistan to import 32.7 million barrels of oil to cover petroleum needs

    Under a deferred payment agreement with the Saudi Fund for Development (SFD), Pakistan would acquire roughly 32.7 million barrels (MBL) of crude oil in 2022 to cover its petroleum product needs.

    The Pak-Arab Refinery Company Limited (PARCO) and National Refinery Limited (NRL) plan to import 16.89 and 15.81 million barrels of oil in the ongoing year, respectively.

    Crude oil worth $100 million per month may be imported under the terms of the arrangement, with payment deferred for a year. The price will be set in accordance with the existing long-term agreement between Saudi Aramco, PARCO, and NRL.

    The facility will be available for a 12-month period, which may be increased for one year. The withdrawn funds, plus the margin of 3.8 per cent, will be repaid in one annual installment in US dollars.

    Previously, In June 2021, the Saudi government agreed to pay $4.2 billion in providing economic aid to Pakistan, which was legally formalised in November. While the SFD programme has been in effect since March 7, 2022, and oil purchase has now already begun.

  • PM Khan launches Kamyab Pakistan Programme for low sectors

    PM Khan launches Kamyab Pakistan Programme for low sectors

    Prime Minister (PM) Imran Khan has inaugurated a Rs1400 billion worth Kamyab Pakistan Programme in order to facilitate the underprivileged sector in Pakistan, reports Radio Pakistan.

    According to PM Khan, this initiative will bring improvement in the living standards of the public and his government is trying to change priorities to uplift unprivileged families.

    While talking about the previous governments, he said that they had flawed policies which left behind the marginalized segments of the society and said that this project should have been launched 74 years ago.

    “We made a huge mistake 74 years ago. We believed that we would make Pakistan a welfare state after there was prosperity and wealth in the country. The thought — that there needs to be surplus first and then we (government) will invest in the poor — I believe these were fundamentally wrong decisions,” said the premier.

    Referring to China’s ideology, the PM said that Beijing took measures to facilitate the low sectors of people and became a developed country within 35 years.

    The programme will be rolled out in phases. During the first phase, the loans will be provided to the deserving families in Gilgit-Baltistan, Azad Jammu Kashmir (AJK), Balochistan, Khyber Pakhtunkhwa (KP) and the underprivileged areas of Punjab and Sindh.

    Under this, the government will provide Rs1.4 trillion micro-loans to 3.7 million households across the country.

    This scheme has five components Kamyab Kissan, Kamyab Karobar, Naya Pakistan low-cost housing, Kamyab Hunarmand and Sehatmand Pakistan.

    It also includes a user-friendly portal called Kamyab Pakistan Information System (KPIS). The portal will be integrated with Ehsaas and National Database and Registration Authority (NADRA) databases for verification of beneficiaries’ eligibility.

  • PM carries the ‘begging bowl’ with him everywhere

    PM carries the ‘begging bowl’ with him everywhere

    Pakistan People’s Party (PPP) chairperson Bilawal Bhutto-Zardari on Monday chastised Prime Minister Imran Khan, blaming him for not caring about the common man’s problems in Pakistan.

    In a statement, Bilawal held PM Khan responsible for the dreadful economic situation of the country, adding that “every Pakistani is paying the price of Imran Khan’s ‘Change Tsunami’”

    Speaking about PM’s recent trip to Saudi Arabia, Bilawal said it was unfortunate how the same prime minister, who used to talk about not obtaining loans from other countries, was carrying the “begging bowl” with him everywhere in the world.

    “Mr Prime Minister, surely you hold vast experience in collecting donations. However, countries do not run on donations alone,” said the PPP chairperson.

    “If the money we receive from loans continues to get wasted in corruption, the common man will continue to bear the burden of inflation,” he said, adding: “Imran Khan, you should come out of your palace in Bani Gala.”

    “The Chinese government’s hesitancy [in issuing the funds] is in fact an expression of their lack of confidence in the PTI government,” he said, adding that foreign investors were afraid of investing in Pakistan. 

    The PPP chairperson’s criticism comes after the prime minister returned from the Saudi Arabia visit aimed at strengthening ties between the two countries.

  • ‘Imran govt received loans worth Rs15,000 Arab’

    ‘Imran govt received loans worth Rs15,000 Arab’

    Pakistan Muslim League-Nawaz (PML-N) leader Maryam Nawaz has accused the Prime Minister (PM) Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government of seeking whopping Rs15,000 Arab (Rs15,000 billion) in loans while “not laying down a single brick, and launching only failed projects”.

    “The [government] took loans of Rs15,000 billion but did not lay a single brick,” Maryam reportedly said while addressing a rally in Wazirabad as part of the election campaign for PP-51.

    Alleging that the metro bus project started by the PTI government had also failed, she asked the crowd whether any of them had gotten a job from the 10 million jobs promised by the government or a house from the 5 million houses pledged at the start of its regime.

    She said the government had accused her of playing the “Punjabi card” after she raised her voice for the province, but said she would continue to speak for Punjab as well as other provinces being “the daughter of Pakistan”.

    “But when it comes to snatching Punjab’s bread and aata and rise in the price of Punjab’s sugar, Maryam will stand with Punjabis with her heart and soul,” she said.

    WATCH VIDEO:

    Maryam, speaking in Urdu interspersed with Punjabi, said farmers, labourers, daily wage workers, traders and businessmen were all frustrated today and could not afford basic utilities and food items.

    She called upon the “selectors” not to “make the mistake” of helping to bring the PTI into power again, saying: “I feel bad when people bad-mouth the selectors because after all, the institution is ours.”

    “The country has been worn out but my dear selectors, don’t do this with Pakistan again,” she said, referring to the PTI coming into power. “Do your own work that the Constitution has assigned to you, don’t interfere with people’s work.”

    Although things are broken, Maryam said, “Nawaz Sharif will come and everything will be fixed.”

    The PML-N leader alleged that electricity in the country was expensive because “those financing Imran Khan’s expenses deliberately imported expensive LNG”.

    The PML-N leader asked the administration of Daska and Wazirabad to serve the people and the law instead of the premier.

    “I say to Wazirabad police and administration […] I know that you yourself are frustrated [but] the nation is looking at you; if you instead of serving the country and the people try to serve anyone else, try to steal the vote and make a lost person win, then remember, Imran Khan came once but now at least Punjab won’t let him come [to power] again.”

    She said the next government in Pakistan and Punjab will be “of Nawaz Sharif”.