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LOL Govt eyes $11bn aid from China, Saudi Arabia amid crunch

Dalit

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• Shamshad says caretaker govt prioritises tax net expansion, targets retail and real estate sectors
• Insists subsidies not viable, urges exporters to shift business model
• Says economic revival plan to be unveiled soon
• BISP to be partially transferred to provinces


ISLAMABAD: Pakistan is seeking around $11bn in bilateral support from China and Saudi Arabia as the caretakers push for expanding the tax net effectively to retail, agricultural and real estate sectors while continuing a crackdown on illegal currency movements to fill external and domestic resource gaps so that the IMF programme remains on track to ensure economic stability until an elected government takes power.

This was part of a detailed policy statement issued by caretaker Finance Minister Dr Shamshad Akhtar before the Senate Standing Committee on Finance and Revenue, presided over by Senator Saleem Mandviwalla in Islamabad on Thursday.

Dr Akhtar also talked about partially transferring the Benazir Income Support Programme to provinces under an IMF requirement. She lamented that exporters were still seeking subsidies despite economic challenges and strongly ruled out the possibility of such freebies.

She said the government was currently working on an economic revival plan that would be presented to the caretaker prime minister shortly and shared with the Senate Standing Committee on Finance.

She said the caretaker government had a limited scope to undertake deep-rooted structural reforms but promised to deliver on reforms that were part of the IMF programme to ensure the disbursement of a $700 million loan instalment. Talks with the IMF would begin by the end of October in this regard.

The finance minister said it was the government’s priority to deliver on the Fund programme to ensure economic stability and continuity.

‘Financing needs still higher’

On the external financing gap, Dr Akhtar said the country’s financing needs were still higher, but with the joint efforts of all stakeholders, the government would be able to secure disbursements from the project pipeline and also revive some policy-based financing from multilaterals.

External flows would improve with the $700m flows from the IMF. For net bilateral financing of $11bn, China and Saudi Arabia had been requested along with a request for a Saudi oil facility, she said.

“To meet the external financing requirements, we are working to secure concessional funding from multilaterals (World Bank, Asian Development Bank, Islamic Development Bank) of $6.3bn,” she said in her written statement, adding that the IMF had already approved $3bn and bilateral assistance of around $10bn was also expected.

She explained that under the current IMF loan deal, the authorities were committed to increasing State Bank’s reserves to $9bn (2.3 months of import cover) shortly and to $12bn (three months of import cover) by June 2024 based on higher official inflows and pick-up in Foreign Direct Investment (FDI) under the Special Investment Facilitation Council (SIFC).

side included about Rs3.2tr power circular debt and an almost similar gap in the gas sector and the ever-bleeding Pakistan International Airlines.

She said Pakistan was not in a position to provide subsidies and duty drawbacks to industries and exporters, who would have to change their business models to invest in exports themselves. Only countries having $400bn in foreign exchange reserves could afford that, she said.

She said the gap between the demand and supply of dollars was reflected in the current account deficit, which declined $2.4bn (0.7pc of GDP) in FY23 from $17.5bn (4.7pc of GDP) in FY22 and further dropped by 54pc in the first two months of this fiscal year to $900m.

Last year, there was a 14pc decline in workers’ remittances, which fell to $ 27bn from $31.3bn a year ago. During the first two months of the current year, remittances have dropped by 8.5pc.

When the caretaker government took office in mid-August, the dollar was trading at 295 to the rupee in the interbank market, a decline of 45pc since June 2022. The open market rate was even higher at 304, with spreads of around 3pc to 7pc.

The rupee’s devaluation was a major driver of record-high inflation last year, Dr Akhtar said, adding the government had taken action against the speculative activity of the exchange companies, resulting in a stronger local currency.

 
50obh9.jpg
 
Looks like the Pak Deep State is using its Deep Reserves, stacked in "brotherly" countries, to lubricate the economy. Uneasy lies the head that wears the crown....

The Pak Deep State never fails to leverage the existential wars of the West. Thanks to Putin, another window of opportunity has opened. The longer this war continues the better for the Pak Deep State.....

The Pentagon Boys can't live without wars, and neither are the Pindi Boys....

*Even the ultra clever Hindutva has failed to take the heat of the war. Once a darling and now a downtrodden for it has chosen the wrong side in the Pentagon wars.
 
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Braindead exporters can't figure out how to cut down costs, increase sales, improve efficiency? No. They just ask for subsidies so they don't have to work hard to provide better products, but can have all their expenses taken care of by the taxpayer! While they invest their money not into increasing factories, but the real estate they own or foreign bank accounts.
 
1- stop massive infrastructure funding decrease it.
2- privatize or close everything you can because we are too corrupt
Pia and desco at all costs as soon as possible
3- turn all Diesel plants into coal plants especially the jamshoro one
4- renegotiate power IPPs. It has to be mutual, you can't strong arm then. May be given a 10yr extension to IPP hydros to bring down the upfront tarrif
No more Cpec non feasible projects, do open bidding
5- import gas from Iran, figure it out!!
6- talk to Taliban and America get the TPI gas pipeline rolling
7- talk to countries who have surplus locked gas for long term contracts e.g like baku
8-decrease govt size
9- increase taxation on retail
10- abolish pension create a vested fund instead
11- subsidize exports
12- abolish 5000 note.
13- penalize cash economy incentive cashless economy
14- do third party audit for assets of all govt employees arrest those with assets beyond means
 
• Shamshad says caretaker govt prioritises tax net expansion, targets retail and real estate sectors
• Insists subsidies not viable, urges exporters to shift business model
• Says economic revival plan to be unveiled soon
• BISP to be partially transferred to provinces


ISLAMABAD: Pakistan is seeking around $11bn in bilateral support from China and Saudi Arabia as the caretakers push for expanding the tax net effectively to retail, agricultural and real estate sectors while continuing a crackdown on illegal currency movements to fill external and domestic resource gaps so that the IMF programme remains on track to ensure economic stability until an elected government takes power.

This was part of a detailed policy statement issued by caretaker Finance Minister Dr Shamshad Akhtar before the Senate Standing Committee on Finance and Revenue, presided over by Senator Saleem Mandviwalla in Islamabad on Thursday.

Dr Akhtar also talked about partially transferring the Benazir Income Support Programme to provinces under an IMF requirement. She lamented that exporters were still seeking subsidies despite economic challenges and strongly ruled out the possibility of such freebies.

She said the government was currently working on an economic revival plan that would be presented to the caretaker prime minister shortly and shared with the Senate Standing Committee on Finance.

She said the caretaker government had a limited scope to undertake deep-rooted structural reforms but promised to deliver on reforms that were part of the IMF programme to ensure the disbursement of a $700 million loan instalment. Talks with the IMF would begin by the end of October in this regard.

The finance minister said it was the government’s priority to deliver on the Fund programme to ensure economic stability and continuity.

‘Financing needs still higher’

On the external financing gap, Dr Akhtar said the country’s financing needs were still higher, but with the joint efforts of all stakeholders, the government would be able to secure disbursements from the project pipeline and also revive some policy-based financing from multilaterals.

External flows would improve with the $700m flows from the IMF. For net bilateral financing of $11bn, China and Saudi Arabia had been requested along with a request for a Saudi oil facility, she said.

“To meet the external financing requirements, we are working to secure concessional funding from multilaterals (World Bank, Asian Development Bank, Islamic Development Bank) of $6.3bn,” she said in her written statement, adding that the IMF had already approved $3bn and bilateral assistance of around $10bn was also expected.

She explained that under the current IMF loan deal, the authorities were committed to increasing State Bank’s reserves to $9bn (2.3 months of import cover) shortly and to $12bn (three months of import cover) by June 2024 based on higher official inflows and pick-up in Foreign Direct Investment (FDI) under the Special Investment Facilitation Council (SIFC).

side included about Rs3.2tr power circular debt and an almost similar gap in the gas sector and the ever-bleeding Pakistan International Airlines.

She said Pakistan was not in a position to provide subsidies and duty drawbacks to industries and exporters, who would have to change their business models to invest in exports themselves. Only countries having $400bn in foreign exchange reserves could afford that, she said.

She said the gap between the demand and supply of dollars was reflected in the current account deficit, which declined $2.4bn (0.7pc of GDP) in FY23 from $17.5bn (4.7pc of GDP) in FY22 and further dropped by 54pc in the first two months of this fiscal year to $900m.

Last year, there was a 14pc decline in workers’ remittances, which fell to $ 27bn from $31.3bn a year ago. During the first two months of the current year, remittances have dropped by 8.5pc.

When the caretaker government took office in mid-August, the dollar was trading at 295 to the rupee in the interbank market, a decline of 45pc since June 2022. The open market rate was even higher at 304, with spreads of around 3pc to 7pc.

The rupee’s devaluation was a major driver of record-high inflation last year, Dr Akhtar said, adding the government had taken action against the speculative activity of the exchange companies, resulting in a stronger local currency.

The finance minister is an intelligent woman, but she should know better than to expect $11 billion from China and Saudi Arabia. She should know that you should cut your coat according to your cloth.
 
Braindead exporters can't figure out how to cut down costs, increase sales, improve efficiency? No. They just ask for subsidies so they don't have to work hard to provide better products, but can have all their expenses taken care of by the taxpayer! While they invest their money not into increasing factories, but the real estate they own or foreign bank accounts.
Actually they are just asking to be provides regional prices of electricity
 
1- stop massive infrastructure funding decrease it.
Only Ml-1, transmission lines,
Stop everything else - period
No ifs and buts
2- privatize or close everything you can because we are too corrupt
💯
Pia and desco at all costs as soon as possible
3- turn all Diesel plants into coal plants especially the jamshoro one
💯
4- renegotiate power IPPs. It has to be mutual, you can't strong arm then. May be given a 10yr extension to IPP hydros to bring down the upfront tarrif
Easier said than done
No more Cpec non feasible projects, do open bidding
5- import gas from Iran, figure it out!!
Easier said than done
6- talk to Taliban and America get the TPI gas pipeline rolling
Don't hand out your balls to the frickin Taliban
7- talk to countries who have surplus locked gas for long term contracts e.g like baku
8-decrease govt size
💯 if they really want to that - it's possible
9- increase taxation on retail
💯
10- abolish pension create a vested fund instead
💯
11- subsidize exports
Not a fan of"subsidizing" exports especially dead end textiles
12- abolish 5000 note.
Already happening
13- penalize cash economy incentive cashless economy
Not that hard to do if you REALLY want to
14- do third party audit for assets of all govt employees arrest those with assets beyond means
Lol I wish

15- privatise discos
 
1- stop massive infrastructure funding decrease it.
2- privatize or close everything you can because we are too corrupt
Pia and desco at all costs as soon as possible
3- turn all Diesel plants into coal plants especially the jamshoro one
4- renegotiate power IPPs. It has to be mutual, you can't strong arm then. May be given a 10yr extension to IPP hydros to bring down the upfront tarrif
No more Cpec non feasible projects, do open bidding
5- import gas from Iran, figure it out!!
6- talk to Taliban and America get the TPI gas pipeline rolling
7- talk to countries who have surplus locked gas for long term contracts e.g like baku
8-decrease govt size
9- increase taxation on retail
10- abolish pension create a vested fund instead
11- subsidize exports
12- abolish 5000 note.
13- penalize cash economy incentive cashless economy
14- do third party audit for assets of all govt employees arrest those with assets beyond means
Spoken like a true enemy of the people
 
1- stop massive infrastructure funding decrease it.
2- privatize or close everything you can because we are too corrupt
Pia and desco at all costs as soon as possible
3- turn all Diesel plants into coal plants especially the jamshoro one
4- renegotiate power IPPs. It has to be mutual, you can't strong arm then. May be given a 10yr extension to IPP hydros to bring down the upfront tarrif
No more Cpec non feasible projects, do open bidding
5- import gas from Iran, figure it out!!
6- talk to Taliban and America get the TPI gas pipeline rolling
7- talk to countries who have surplus locked gas for long term contracts e.g like baku
8-decrease govt size
9- increase taxation on retail
10- abolish pension create a vested fund instead
11- subsidize exports
12- abolish 5000 note.
13- penalize cash economy incentive cashless economy
14- do third party audit for assets of all govt employees arryouest those with assets beyond means
IPP are tax free, move the wealth outside Pak is tax free, import machinery is tax free, import fuel for the plant is tax free, land is tax free...and income is untaxable , all transaction in dollars. ...read the IPP contract ,,,,,,you will realize Nawaz is genius ...and now more contract to Mariam Nawaz in law in Qatar...Uncle Saif ur rahman ....who made billion under REDCO with Nawaz uncle joint consortium , company registered in Qatar .... if you read the corruption of Nawaz ...its beyond the imagination of human being .....may be Allah deploy investigation committee of few farishta when he die ..... A man who made millions of pounds of transactions in 2008 to 2009.
 

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