ECC accepts $3bn loan guarantee for n-plant
Pakistan on Tuesday approved issuing $3 billion worth sovereign guarantees against a Chinese loan for a nuclear power plant and also stamped an operator-favoured State Support Agreement for the outsourcing of the Islamabad International Airport.
The Economic Coordination Committee (ECC) of the outgoing cabinet took these decisions but left a decision for the import of at least one million metric tons of wheat for the caretaker government.
Finance Minister Ishaq Dar, who may have some role in the interim setup, chaired the ECC meeting. After the meeting, the Ministry of Finance stated that the Pakistan Atomic Energy Commission submitted a summary regarding the issuance of government’s guarantees for Chashma Nuclear Power Project Unit -5 (C-5).
“The ECC decided to allow the issuance of gradual sovereign Guarantee for the Chasma C-5 project within the IMF programme”.
Coalition Govt’s tenure marked through unrelenting inflation
If there is one thing that stands out in the outgoing government’s seemingly bad report card, it is the massive increase in prices of almost everything that’s sold on the market and outside it. Analysts agree that the 16 months of the coalition government’s rule have left an unbearable burden on consumers on the back of whopping price hikes in food items, transport charges and power and gas utility bills. There have been many factors behind this unrelenting inflation, including higher global commodity prices and the rupee’s free fall against the dollar that further escalated the cost of imported goods. Besides, the government caved into almost all demands of the International Monetary Fund to secure loan installments, adding to the miseries of citizens.
Govt to generate PKR721 bn by raising energy tariff
The federal government has formulated a strategy to collect an additional Rs721 billion from electricity consumers during the current financial year as per the conditions agreed with the International Monetary Fund (IMF).
According to the finance ministry sources, the government has shared its plan with the IMF, aimed at increasing the electricity tariff and reducing the power sector’s circular debt.
The sources said that electricity rate would be increased by Rs1.25 per unit till September in terms of quarterly adjustment in electricity tariff. This, they added, would likely generate Rs39 billion in revenues.
During the September-December quarter, the sources continued, electricity likely to become further expensive by Rs4.37 per unit due to fuel adjustment, which would general another Rs122 billion till the end of 2023.
NGC set up for steady development
Minister of Planning, Development and Special Initiatives Ahsan Iqbal on Tuesday launched the National Growth Centre (NGC) – a project designed to put the country on a steady path of economic development, innovation and prosperity.
Speaking at the launching ceremony, Iqbal highlighted the importance of fostering an environment of sustainable development for creating jobs, empowering communities and stimulating economic diversification.
“Our goal is nothing short of positioning Pakistan as a hub of innovation and progress on the global stage,” he remarked.
The main NGC will be based in the planning ministry while its units will also be set up in universities across the country.
“NGC is not merely a physical space but a symbol of commitment to the future and a testament to the unwavering belief in the potential of people and national resources,” Iqbal said.
TCP to buy 1mn bales of cotton as prices decline
The Trading Corporation of Pakistan (TCP) has decided to purchase one million bales of cotton following the fall in its prices in open market below the intervention threshold.
It has invited bids from cotton procurement agents, cotton procurement firms and labour contractors. Any surge in cotton prices in the wake of procurement by the TCP will spark optimism among crop growers.
Cotton Ginners Forum Chairman Ihsanul Haq said that during the current year, the federal government, in response to Prime Minister Shehbaz Sharif’s directives, initially set the intervention price of cotton at Rs8,500 per 40 kg.
The government stipulated that if cotton prices dipped below the intervention level in the open market, the TCP, on behalf of the government, would commence the purchase of one million bales from ginners to stabilise prices.
He pointed out that the subsidised rates for electricity and gas supply to textile mills had been withdrawn owing to the pressure from the International Monetary Fund (IMF). Coupled with a record hike in production costs, an unusual decline was observed in cotton purchases by the textile mills.
Pakistani exhibits reach 7th China-South Asia expo
The 7th China-South Asia Exposition will be held in Kunming, China from August 16 to 20, with the theme of “Solidarity and Coordination for Common Development”.
Last week, the first batch of 59 exhibits from Pakistan and other countries entered the exhibition hall under the supervision of Kunming Customs.
“The exhibits include clothing, money clips, and leather hats, transported to Kunming Airport by air. All exhibits of the expo can be declared through the nationwide integration of customs clearance procedures, which can help reduce logistics costs and ensure that the exhibits are cleared quickly and displayed on time,” said Fu Yu, Customs Manager of Yunnan Easy-Trans International Freight Forwarder Co, Ltd.
“Sixty countries and regions have signed up for the expo, including all South Asian and Southeast Asian countries and RCEP (Regional Comprehensive Economic Partnership) member states. Around 1,000 enterprises signed up to participate in the exhibition, among which 50 are from among the Global 500 companies,” said Li Chenyang, Director of the Department of Commerce of Yunnan province, China.