EX-SBP: Chief fear of debt restructuring needs to be overcome
Rescuing countries from disorderly defaults “hinges on increasing fiscal space by restructuring their debt”, Murtaza Syed, a former acting governor of the State Bank of Pakistan (SBP), wrote in The Economist yesterday, recalling his previous article where he said the International Monetary Fund (IMF) and Pakistani policymakers were “flirting with disaster by pretending that the country’s public debt was sustainable”. Pakistan and the IMF signed a 37-month staff-level agreement in July for $7 billion with the approval of the new loan tied to firm commitments from China, Saudi Arabia, and the UAE that they would roll over their combined debt of $12bn.
Cabinet defers decision on bidding method
The Cabinet has raised questions over the proposed revised bidding procedure for the award of contract for the outsourcing of Islamabad International Airport under the public-private partnership mode and has constituted a committee to examine the matter.
The Committee has been tasked with reviewing all aspects of the proposal presented by the Aviation Division for the revised bidding structure for the award of concession for running the Islamabad International Airport, specifically with regard to legal position under the Public Private Partnership Authority (P3A) and the Public Procurement Regulatory Authority (PPRA) rules. Following the assessment, it will submit a report to the cabinet.
Government to overhaul nepotism-hit fis
The Government has decided to revamp bilateral development financial institutions, which have become breeding grounds for nepotism due to the appointment of favoured bureaucrats to their boards. These board members receive up to $5,000 (Rs1.4 million) per meeting in fees.
Instead of focusing on their primary role of lending to the industry and promoting foreign investment, these financial institutions have been heavily investing in government debt, using loans from the State Bank of Pakistan (SBP). These boards, often filled with individuals lacking relevant expertise, have overlooked violations of the Articles of Association.
Moody’s improves Pakistan’s rating
Moody’s Ratings has upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt rating to ‘Caa2’ from ‘Caa3,’ raising the outlook to positive from stable. This upgrade comes just weeks ahead of Pakistan’s expected $7 billion International Monetary Fund (IMF) loan programme, signalling that the country’s risk of default on foreign debt repayments has lessened despite ongoing governance issues and political instability. This move by one of the world’s top three rating agencies has renewed foreign investor confidence in Pakistan’s economy, potentially opening the door for the country to return to global capital markets.
For economic growth government to boost it ecosystem
Minister of State for IT and Telecommunication, Shaza Fatima Khawaja, reiterated the government’s commitment to rapidly building a robust digital ecosystem to drive socio-economic progress, expand the knowledge economy, and stimulate economic growth. Speaking at the inauguration of the 25th ITCN Asia 2024 exhibition at the Karachi Expo Centre on Tuesday, she underscored the importance of adopting information and communication technology (ICT) as a key component of Pakistan’s socio-economic advancement. The three-day exhibition, organised by Ecommerce Gateway Pakistan Pvt Ltd, attracted over 300 speakers, 70,000 industry participants, and 350 foreign delegates from 17 countries, reflecting global interest in Pakistan’s IT sector.
NTDC: consumers overpay for energy
The Officials of the National Transmission and Despatch Company (NTDC) made a shocking disclosure on Wednesday that consumers were paying a capacity of 40,000 megawatts (MW) despite utilizing less electricity. “The consumers use 12,000-13,000MW of electricity but have to pay for a capacity of 40,000 MW,” NTDC officials said during the National Electric Power Regulatory Authority (Nepra) public hearing in the federal capital. The consumers are set to receive a nominal reduction in electricity prices of up to 31 paisa per unit on account of fuel adjustment for month of July 2024.
KPK governor urges unity across sectors
Governor Khyber-Pakhtunkhwa Faisal Karim Kundi highlighted Pakistan’s vast potential and called for unity across all sectors to advance the nation’s development. Speaking at the Lahore Chamber of Commerce and Industry (LCCI), he urged collaboration for prosperity despite ongoing challenges. LCCI President Kashif Anwar highlighted numerous issues plaguing businesses, including currency depreciation, rising energy costs, and high-interest rates. He stressed the need for consistent policies to ensure stability in the business sector. Kundi lamented the electricity crisis in Khyber-Pakhtunkhwa, noting that the province endures up to 18 hours of load shedding.
Shehbaz beams at Moody’s credit rating upgrade
Prime Minister Shehbaz Sharif on Wednesday expressed satisfaction with Moody’s upgrade of Pakistan’s credit rating and attributed the achievement to the hard work of the economic team and the blessings of the Almighty. Moody’s has upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3 owing to improvement in macroeconomic conditions, it said in a release on Tuesday. “We have also upgraded the rating for the senior unsecured MTN programme to (P)Caa2 from (P)Caa3.
Regenerative agriculture in Pakistan
Regenerative agriculture (RA) — a current buzzword in Pakistan’s agricultural communities — is part of a global movement towards sustainable agriculture. This approach, comprising a set of principles and practices, primarily revolves around soil health, crop diversification, water stewardship and biodiversity. In Pakistan, excessive tillage practices have led to soil degradation and loss of biodiversity. Recurrent planting of the same crops on the same piece of land year after year has depleted specific soil nutrients so farmers must apply more chemical fertilisers to get a better yield.