In partnership with
Profit
PM ASKS NATION TO DECIDE ITS FUTURE COURSE SANS FOREIGN DEBTS Sunday, 16 April, 2023 I 25 Ramzan, 1444
g
SAYS COUNTRY WAS NOT CREATED TO MOVE ON DEBTS AND ACT LIKE BEGGAR
P
g
LAHORE
sacrifices for the motherland, he added. The prime minister referred to the terms of International Monetary Fund (IMF) for seeking loan agreement and said that they did every effort to implement them. Even, they sought bilateral financial support from the friendly nations including China that realized their problems and provided a rollover of $2 billion loan besides, returning back previous debt
Govt jacks up petrol price by Rs10 per litre ISLAMABAD
Staff RepoRt
The Federal government Saturday night announced an increase of Rs10 per litre in the price of petrol fro next 15 days, taking the price to Rs282 per litre. Finance Minister Ishaq Dar announced the increase of Rs10 per litre in the price of petrol. In a televised address late Saturday night, the finance minister said the “rationale behind the hike in the price of petroleum products is the increase in petroleum prices in the international market and exchange rate variation”. The minister also announced that the prices of diesel and light diesel oil would remain unchanged at Rs293 and Rs174.68, respectively. He, however, added, that the price of kerosene was being increased by Rs5.78 to Rs186.07. The minister said the new prices will be effective from 12am on Sunday. At the outset of his address, the minister said the prices of petroleum products had increased in the international market in the past 15 days. As a result, price of petrol has been increased to Rs282 per litre, while high-speed diesel (HSD) and light diesel oil rates will remain stable at Rs293 per litre and Rs174.68 per litre, respectively. Earlier on March 31, Finance Minister Ishaq Dar announced that the prices of petrol and diesel will remain unchanged for the next 15 days. The federal government decided to maintain the petroleum products prices for the next 15 days. On March 15, the government increased the prices of petrol and high-speed diesel (HSD) by Rs5 and Rs13 per litre. Meanwhile, Pakistan tehreek-i-Insaf rejected the hike in the petrol price, saying it would further add to the miseries of the common man already sobbing under the burden of inflation.
amount paid back by Pakistan. The prime minister also expressed his gratitude to Saudi Arabia and the United Arab Emirates. The UAE had committed a loan of $3 billion. He lauded the efforts of Foreign Minister Bilawal Bhutto, Finance Minister Ishaq Dar and the chief of army staff for making efforts in this regard. The ceremony was attended by Caretaker Punjab Chief Minister Mohsin
Naqvi, parliamentarians, Chief Secretary, Chairman National Highway Authority and concerned authorities. The prime minister said that inflation and price hike, no doubt, had made the lives of ordinary people difficult, but the coalition government was cognizant of these affects. He urged the nation to work hard by day and night to transform the country into the visions of Quaid and Allama Iqbal. The prime minister cited the pace of development and uplift projects across Punjab province during Nawaz Sharif’s tenure, regretting that during the last four years of PTI’s tenure, brakes were applied, ending a number of public welfare-oriented projects, besides putting other vital projects into the cold storage. Recounting the public welfare projects initiated during Nawaz Sharif’s tenure in the province, he said, some of them included the greater Iqbal park, metro bus service, cricket ground, power projects to overcome 20 hours loadshedding which was ended in 2018 and that was a huge achievement. But during 2018, he said through ‘a fraud and fake election’, polling results were rigged and the results were changed.
IPP’s warn of impending power crisis due to forex shortfall g
ISLAMABAD
ahmad ahmadani
The country’s power sector is facing a potential crisis due to a shortage of foreign exchange, with Independent Power Producers (IPPs) warning of potential power plant shutdowns in the near future due to non-payment of approximately $710 million. According to sources in the power sector, IPPs have sent letters to the federal government, expressing their concerns about outstanding payment issues and the risk of severe financial loss if these issues are not addressed. Adding to the problems facing IPPs, their power engines require overhauls, and spare parts have not been delivered due to non-payment. As a result, the production of electricity has come to a halt, resulting in significant losses for the companies. IPPs have warned that non-payment through the State Bank of Pakistan is a breach of contract and that they will take strict action if the situation does not improve. IPPs have requested the federal government to address their issues with the delay in dividend remittances to foreign shareholders, nonpayment by banks to foreign suppliers against Letters of Credit (LCs), and the availability of foreign exchange through the State Bank of Pakistan. As per sources, Atlas Power CEO, Razi ur Rehman, has written to the MD of Private Power and Infrastructure Board (PPIB) requesting urgent intervention, while Attock Gen Limited CFO, Adil Farooq
Qureshi, has highlighted the GoP’s obligation to make foreign exchange available through the SBP. Orient Power Company CEO, Kashif Bashir Rana, has requested that the matter be taken up with the State Bank of Pakistan to expedite the resolution of pending dividend payments, restore the confidence of foreign investors, and attract much-needed foreign investment to the country. In response, the MD of PPIB has asked the State Bank of Pakistan to facilitate IPPs with their foreign payments to fulfill their contractual obligations and prevent potential breaches of commitments and obligations made under Implementation Agreements/Power Purchase Agreements, said the sources. Available correspondence of IPPs with Managing Director (MD) of Private Power and Infrastructure Board (PPIB) disclosed that country’s power sector might face a worst crisis in the near future due to shortage of foreign exchange as power plants of IPPs are about to stop power production as overhauling of their power engines has been not made despite passing many days to the due date in this regard. And, in this regard the IPPs named as Attock Gen Limited, Atlas Power Limited, and Orient Power Company (Private) Limited have asked the federal government to take immediate notice of non-payment of $710 million as the situation has gone from bad to worse and IPPs have not been able to remit their profits abroad for the past ten months to their shareholders due to which IPPs are facing severe financial loss.
IMF LOOKS FORWARD TO OBTAIN NECESSARY ASSURANCES TO PAVE WAY FOR COMPLETION OF 9TH EFF REVIEW PROFIT REPORT iSlamabad
No matter what the current government tells people, the IMF mission is still waiting for confirmations of necessary bilateral and external financing sources, as per the IMF mission chief. The International Monetary Fund (IMF) said on Saturday that it is “looking forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th EFF review.” IMF Mission Chief to Pakistan Nathan Porter through his representative in Pakistan in a statement said that “We welcome the recent announcement of important financial support to Pakistan from key bilateral partners”, During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts. “The IMF is supporting these efforts and looks forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th EFF review”, the statement added. IMF’s 9th review in retrospect: The IMF delegation came to Pakistan on the 1st of February, which was already pretty late in the context of the 9th review of its Extended Fund Facility (EFF). The visit was a
CONTINUED ON PAGE 02
COUNTRY’S POWER SECTOR IS ON BRINK OF CRISIS WITH PAYMENTS WORTH $710M DUE
Staff level agreement with IMF still awaited g
Q l P
SAYS THEY MET HARSH CONDITIONS, MADE EVERY EFFORT FOR LOAN AGREEMENT WITH IMF
Staff RepoRt
RIME Minister Muhammad Shehbaz Sharif on Saturday said that there existed economic challenges but the nation would have to decide whether they would live on foreign debts or to stand on its feet by carving a niche among the comity of nations with honesty, dedication and hard work. The prime minister expressed the optimism that despite different challenges, Pakistan would be soon out of all difficulties. “If the chronic issue of load-shedding, the scourge of terrorism could end, free medicines could be provided to the poor, road infrastructure could be laid, then surely, the country could move on the path of progress and prosperity, he added. The prime minister was addressing a ceremony after reviewing the construction work on six-lane overhead bridge of Imamia Colony railways crossing – Shahdra N-5. He said that those nations always achieved milestones that took lead with definite decisions over their future. “The country was not created to move on debts and act like beggar because their forefathers and different generations had given
Rs 15.00 | Vol XIII No 288 I 8 Pages I Islamabad Edition
long anticipated one by the government at that time, and the government reassured the people, time and again about the arrival of the said visit. Weeks turned into months, days turned into weeks, but when the IMF team finally arrived, on the 1st of February, Pakistan was still not able to secure the Staff Level agreement. The two week long visit was followed by negotiations that were supposed to happen virtually. Since the IMF team has left Pakistan, Pakistan has made a considerable number of changes in its tax collection targets, its exchange rate and trade policies and expenditures. In lieu of the IMF agreement, the government has been able to impose Rs. 170 billion in additional taxes. The exchange rate has dropped to a historic low, levy on petroleum products and electricity tariffs have been increased and subsequently the interest rate and inflation are at also at a historically highest level. But still, the IMF agreement seems far away. What is the delay? According to media reports, the IMF wants an external financing assurance of around $6 billion dollars from Pakistan which is necessary to bridge Pakistan’s external financing needs. It is reported that the government is still trying to secure the remaining $3 billion. Recently, the Finance minister Ishaq dar claimed that UAE has given assurance to the IMF for a $1 billion loan to Islamabad, similarly, State Minister for Finance and Revenue
Ayesha Pasha informed the Parliamentary committee last week that Saudi Arabia has already given assurance for a $2 billion loan. Sources said that the Finance minister on Friday requested the World Bank to disburse loan under the RISE program as the federal and provincial government has met the conditions related to sales tax. Pakistan is expected to receive an estimated amount of $600 million from the world bank and other multilateral flood-relief commitments. Earlier, Pakistan was banking on a higher commitment from its bilateral partners. However, as of now, the government is once again looking at commercial loans for the remaining amounts. It is also important to note that once the SLA is reached, Pakistan will also receive a tranche of $1.1 billion from the IMF. It is pertinent to note that the Pakistani delegation under the supervision of the Finance Secretary is meeting with heads of International Financial organizations in the US as part of the IMF/World Bank Spring meetings 2023. Meeting with AIIB President on the sidelines: According to the Finance ministry, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Saturday held a meeting with Jin Liqun, President Asian Infrastructure and Investment Bank (AIIB) virtually, through video link, from Islamabad as part of the IMF/World Bank Spring meetings 2023.
CONTINUED ON PAGE 02
CONTINUED ON PAGE 02
fiqah-e-hanfia lahore sehr: 4:09 aM iftar: 6:34 PM
islaMabad sehr: 4:08 aM iftar: 6:43 PM
karachi sehr: 4:50 aM iftar: 6:55 PM
fiqah-e-jafaria lahore sehr: 3:59 aM iftar: 6:44 PM
islaMabad sehr: 3:58 aM iftar: 6:53 PM
karachi sehr: 4:40 aM iftar: 7:05 PM
Army top brass vows to pursue goals set by NSC to eliminate terrorism ISLAMABAD
Staff RepoRt
A conference of corps commanders on Saturday expressed Pakistan Army’s determination to eliminate terrorism, extremism, and instability in the country, said the Inter-Services Public Relations (ISPR) in a statement. The 257th Corps Commanders’ Conference in Rawalpindi reviewed the nation’s internal and regional environment, including its external and internal security challenges. Under the leadership of the army chief, Gen. Asim Munir, the forum reiterated its commitment to shoulder its constitutionally mandated responsibilities with the support of the resilient people of Pakistan, reported the military’s media wing. According to the statement, the conference “affirmed that the military leadership is cognisant of the full spectrum of the challenges” and it resolved to “shoulder its constitutionally mandated responsibilities with [the] support of the resilient people of Pakistan”. The meeting also emphasised the need for a “whole-of-the-nation and whole-of-the-government approach to eradicate the menace of terrorism on a long-term basis.” It further expressed its assurance to pursue the objectives set by the National Security Committee (NSC) through the coordinated application of all elements of national power. The forum also highlighted the intelligence-based operations (IBOs) undertaken by the security forces in areas along the western border and reiterated the security forces’ commitment to “fully support national responses against internal and external threats.” The conference to discuss Pakistan’s security challenges came after the army chief gave an in-camera briefing to the parliament on Friday. Gen. Munir acknowledged during the briefing that the strategy of engaging with terrorists had enabled them to regroup in the tribal areas. This observation was made in response to a surge in attacks by the proscribed Afghanistan-based Tehreek-i-Taliban Pakistan (TTP) militant group. The authorities have yet to disclose any further details on their plans to combat the growing threat of terrorism in the region. Following the briefing, no statement was issued regarding the plans to combat terrorism and militant groups in the country.