Worldwide bond prices double
Pakistan US dollar-denominated global Eurobonds and Sukuk have staged a powerful rally in recent days, suggesting the country has left behind the worst-case scenario of potential default on foreign debt repayments after achieving the International Monetary Fund (IMF) $3 billion loan programme in June 2023.
Global media outlet, Bloomberg, reported Pakistan’s international bonds would continue to hover high in 2024 ahead of the next IMF loan programme acquisition by the country after the current one completes in March 2024.
It is reported the 10-year Pakistan Government International Bond worth $1 billion, maturing in April 2024, ended the trade at 94.7 cents/unit on Wednesday, which is more than double its price below 50 cents before the IMF programme in June 2023.
Special investment facilitation council set to take on smugglers, hoarders
The Apex Committee of the Special Investment Facilitation Council (SIFC) expressed firm resolve to take action against smugglers, hoarders, and market manipulators, who have impacted the economic trajectory, and provide immediate relief to common citizens.
The SIFC convened the 8th meeting of its Apex Committee on Wednesday to review various projects and initiatives being pursued through the platform of the council.
Interim government violates a decision
The Interim Government has violated a decision of the federal cabinet, failing to recover approximately Rs95 billion from publicly-owned power sector companies. Instead, it released Rs131 billion without first deducting its receivables.
This Failure by two ministries to implement the cabinet’s decision has resulted in a higher level of budget deficit for the first half of the fiscal year. Recovering loans and cash dividends could have helped maintain a marginally lower overall budget deficit.
Sources revealed that neither the Ministry of Finance nor the Ministry of Energy recovered cash loans and dividends while settling the Rs131 billion circular debt of government-owned power sector firms. It was estimated that the government might recover Rs78 billion in the form of old loans and another approximately Rs15 billion in dividend receipts.
Three weeks ago, the Economic Coordination Committee (ECC) of the Cabinet instructed the government to prioritise the recovery of government loans while settling the circular debt of four power sector firms. The ECC decision was subsequently vetted by the federal cabinet. Both ministries are in violation of the cabinet decision.
Why isn’t organic fertiliser being used?
Addressing the shortage of inorganic fertilisers, agricultural experts and researchers stressed the need for the inclusion of organic fertilisers with soil chemical nutrition. This integration could reverse the degradation process and enhance crop yield in a sustainable way.
They said that growers avoid using organic fertilisers because the nutrient concentration of indigenous/organic fertiliser is low. To fulfil the nutrient requirements of current high-yield varieties, these fertilisers would be needed in bulk quantity. Additionally, the release of nutrients from organic fertilisers upon decomposition is a slow and time-dependent process.
Pakistani traders ride Chinese county’s boom
More Pakistani traders are settling in the Tashikurgan Tajik autonomous county of Kashgar in China’s Xinjiang Uygur autonomous region to tap the business potential.
As the county is close to their homes, they said it was easy to commute and interact with the local community. A booming tourism is benefitting their businesses.
Pakistani jeweller Murad Shah said his gemstone store in the county “welcomes about 100 to 200 tourists a day after it resumed operations in April”.
He stressed that his business had started to recover after China successfully implemented its Covid-19 policies. “There are a lot of tourists. The county has a diverse culture and landscape, and so many good attractions to see,” he said, adding that he was hopeful about the future, China Daily reported.
Nepra accepts second tariff hike for Karachiites
The National Electric Power Regulatory Authority (Nepra) on Wednesday approved a second increase in power tariff within a week for the consumers of K-Electric.
The Regulator, on a request by the Karachi-based power utility, gave the approval of Rs2.87 per unit hike, which comes as part of a quarterly tariff adjustment (QTA) from January to March 2023. The decision has been forwarded to the federal government for notification.
This is the second time Nepra has hiked power tariff under the quarterly adjustment, the first one at the request of the federal government.
Cotton output totals 8.5mn bales on Sindh’s record contribution
Domestic Cotton Production will remain drastically lower than projected for the crop year 2023-24 as the total output will be hardly 8.5 million bales against the initial target of 12.8m, a loss of 4.3m bales, reveals the data released by the Pakistan Cotton Ginners AssocÂiation on Wednesday.
The PCGA data up to Dec 31 shows that 8.17m bales of cotton have reached the ginning factories across the country which is higher by 3.5m bales over 4.6m bales produced in the same period last year. Ginners say that hardly 0.5m more bales may be produced during the rest of the crop year.
State Bank’s predictions
The State Bank Governor’s Annual Report for FY2023 is “cautiously optimistic” about the economy. It projects headline price inflation to drop, the current account deficit to narrow, and GDP to expand during the ongoing fiscal year.
However, the report warns, this outlook hinges on the absence of adverse shocks stemming from geopolitical tensions, unforeseen climate events and unfavourable movements in global commodity prices.
That Aside, the bank expects inflation to slow down to 20 to 22 percent, the current account gap to narrow to 0.5 to 1.5 percent of GDP, and the economy to grow by 2 to 3 percent.