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

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.
It was people of Pakistan who said
"Khata hey tu lagata be hey"
And
" Pakistan per Allah ka fazal hey jitna be log Khatey kuch nahi huta"

Only Ml-1, transmission lines,
Stop everything else - period
No ifs and buts

💯

💯

Easier said than done

Easier said than done

Don't hand out your balls to the frickin Taliban

💯 if they really want to that - it's possible

💯

💯

Not a fan of"subsidizing" exports especially dead end textiles

Already happening

Not that hard to do if you REALLY want to

Lol I wish

15- privatise discos
What other options do you have in short term apart from subsidizing textiles.. NOTHING
Textile export is the only thing that can give your untrained uneducated labor jobs

Textiles industry isn't asking for something extra. They are asking for regionally competitive rates of power and gas which are abnormally high in Pakistan due to nawaz sharif contracts even though 1/3 power is generated free of cost from legacy hydro plants

What else option do you have apart from TPI and talking to Taliban

You don't have gas

You will need to excert pressure on Taliban to get cheaper coal from them and get gas pipeline through

Iran gas pipeline is feasible if private sector is involved via barter trade

Private sector is already smuggling large amount of oil

The gas imported can be used by just CNG companies if nothing else

They proposed funding the pipeline but gop refused due to Saudis concern

If you can't negotiate contracts with IPPs better to just default..there is no point going back and forth
 
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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.

Dreaming
 
• 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.


Let me be frank..

For instance, if there are two brothers and one is working hard every day to provide for his family, while the other is doing nothing or asking for help on a monthly basis for rupees,

Even while he might be of assistance for the first six months or even a year, he won't continue to be a burden and will completely ignore him after that.

he will prefer someone to give and take, who can also help him during his crises.
 
They are still continuing to beg for more money.

I wonder what happened to the supposedly 80 billion dollar investments from gulf countries, but end of the day no body is going to invest in a lawless banana republic full of ping pong establishment.
 
None of this is ever going to happen. The biggest benefactors of all these subsidies are those the fauji's are protecting and working on behalf of.
 
Heard the same thing 5 years ago, 10 years ago etc etc. Only one thing has stayed constant in that time.
 
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.

I mean the above bolded part is unbelievable !!!!!!!!!!!!!!!!!!!!!!!!

Like the people in power are telling everyone, we can't get the necessary funds required, from inside our own country due to inefficiency or corruption (whichever it is doesn't matter, at this point) -- So let us budget loans again??

Like for how long will this even work? One debt payment or second or? Its hard to wrap ones mind around. Its like we don't even want to hide our inefficiency anymore , damn !!!!!!
 
Where is that illegal Army Thief who was talking about $25 billion
coming from Saudi Arabia. lol. He won't even get 25 rupees from them.
 
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

Let's start with the basics first.

1. Abolish DHA Housing Schemes
2. Stop giving retired generals 1000s of acres of agricultural land.
3. Stop supporting corrupt political dynasty's.
4. Become the servant of the people of Pakistan, instead of her owners.
5. Stop making retired generals as CEO's and Owners of every organisation there is within Pakistan.
6. Stop being a mercenary army.
7. Remove all cantonment boards within cities, establish them outside of the cities of Pakistan
8. Stop buying out or arm handling judiciary and media houses, let them do their jobs in fairness.
9. Pay taxes and stop thinking that you are above the law.
10. Stop killing, imprisoning innocent Pakistani patriots.
11. Stop selling out Pakistan's interest to the enemies of Pakistan for monetary gains.
12. and the most important of them all, fear Allah and remember your grave.
 
There is only one way for Pakistan to prosper and progress and that is the rule of law. Having an elite class (i.e. mafias of different colors) is by itself unconstitutional. These mafias produce nothing for Pakistan but eat up almost all our resources. For example, signing the IPP agreements was a criminal act but renewing those agreements was even bigger crime. Why in world some one would pay for the electricity that was never produced? That is what is happening in Pakistan for decades now. These IPPs produce electericity by using may be 50%-60% of their full capacity but the nation is paying for 100% of their capacity. Like any other power plant, even if they want they cannot achieve 100% capacity production round the year. How the heck our successive governments have been paying these IPP for their full capacity? It's just because we as a nation are overtaken by mafias.

Then look at these idiot judges. They get 1.5 million monthly salary and still act as mafia heads. There are so many court stays and other court orders that these some of these judges have issued in the favor of other mafias (sugar mafia, cement mafia, IPPs, etc.) And look at their perks and pension that each of them gets after their retirement. Same is true for our generals. Look at the civilian employees (i.e. civil-SERVANTS or bureaucracy) who enjoy similar perks. All that haram-khori is at the cost of us poor tax payers. In developed countries, no perks are given to any judge, general, or other civil-servent. They just get the salary and then manage their life accordingly. They get no houses, furnitures, house-maids, cooks, servents, free elecricity, free gas, official cars and petrol, air travel tickets, guest houses, and so on for themselves and their families too. These mafias have turned the law of the land into a puppet that dances on their wishes. These employees of the state have turned into monstrous mafias and are sucking nation's blood without a shame or a pause.
 
None of this is ever going to happen. The biggest benefactors of all these subsidies are those the fauji's are protecting and working on behalf of.
I think she is breaking the glass that default is likely in the coming year. By saying we need $11 Billion without which we can't survive, she is telling everybody the end is near.
 

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