Friday, 9 December, 2022 I 15 Jamadi Awwal, 1444 I rs 15.00 | Vol XIII no 160 I 12 Pages I Islamabad edition
Daily Mail apology ‘VinDicates’ pM shehbaz of corruption allegations g
Pm SlAmS ImrAN, ‘mINIoNS’ For ruNNING SmEAr CAmPAIGN AGAINST HIm
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NEWSPAPEr SAyS: ‘WE ACCEPT mr SHArIF NEvEr ACCuSED By NAB IN rElATIoN To DFID GrANT AID’
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Staff RepoRt
rImE minister Shehbaz Sharif Thursday denounced Tehreeke-Insaf (PTI) Chairman Imran Khan and his “minions” for running a smear campaign against him as, after more than three years, British Newspaper Daily mail publicly tendered an apology to Pm Shehbaz Sharif for publishing a defamatory article against him. “I bow my head in humility before Allah (SWT) for my vindication. For [three] long years, Imran [and] his minions went to any limit to assassinate my character,” the prime minister said in a tweet hours after the publication published an apol-
ogy note on its website. The premier, who was the leader of the opposition in the National Assembly when the article was published, said in their smear campaign, the PTI did not bother if their actions brought a bad
name to Pakistan and damaged its relations with a friendly country. Pm Shehbaz said his critics mocked and ridiculed him and his family through their baseless allegations, but “I had my unwavering faith in Allah, for only He could expose their brazen lies”. “Disinformation [and] fake news have limited shelf life [and] truth is the ultimate victor. After NCA, Daily mail story has proven it,” the prime minister tweeted. BrITIsh neWsPAPer DAIly MAIl TenDers An APology: British newspaper Daily mail on Thursday tendered an apology to Prime minister Shehbaz Sharif for an “error” in its article published on July 14, 2009, accusing him of wrongdoings in a DFID grant aid to Pakistan.
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$8.3bn rollover for maturing obligations expected: sBP governor profit report In a podcast hosted by the State Bank of Pakistan (SBP), the central bank’s governor Jameel Babar stated that Pakistan expects another $8.3 billion rollover for maturing obligations as discussions are underway. The governor stated that the Government is also in talks with a friendly country for the disbursement of a $3 billion loan and negotiations with multilateral agencies are progressing, for further financial support. He did not mention the name of the country. Babar further explains that due to the war in ukraine, international commodity prices, and monetary tightening by central banks; Pakistan is having trouble in raising funds from international fi-
nancial markets. He said that Pakistan has to repay $17 billion more in loan payments during Fy23 in addition to the $6 billion already paid. In addition, Pakistan got a $4 billion rollover and expects another $8.3 billion in rollover. The remaining outstanding repayment stands at around $4.7 billion for the remainder of this fiscal year which includes $1.1 billion in commercial loans that have to be paid to foreign banks and $3.6 billion in multilateral loans. Babar adds that Pakistan received FX inflows of $4 billion in addition to the rollovers to help Pakistan timely repay loans. The governor expects inflows to increase significantly in the second half of the current fiscal year. Pakistan’s ForEX reserves clocked in at $6.7 billion as of December 2 following a $1 billion payment against
maturing Pakistan International Sukuk and other external debt repayments. The Central Banker added that the SBP repaid two commercial loans totaling $1.2 billion. “These banks are expected to refinance the same amount, in coming days, helping to raise the country’s foreign exchange reserves,” he adds. Babar says the SBP expects the Current Account Deficit (CAD) to remain below $10 billion for Fy 23 due to policy interventions by the SBP. He adds that the SBP placed restrictions on imports mentioned in chapters 84, 85, and certain items of 87. These restrictions covered about 15 percent of Pakistan’s total imports whereas no restrictions have been placed on 85 percent of imports. He also claims that less than 10% of the country’s imports are currently subject to administrative controls.
Pakistan allegedly restricting foreign airlines from converting currency in a bid to keep rupee afloat g
INTErNATIoNAl AIr TrANSPorT ASSoCIATIoN AllEGED THAT THE GovErNmENT oF PAKISTAN HAS BloCKED ForEIGN AIrlINES From rEPATrIATING $225 mIllIoN IN FuNDS profit report Daniyal ahmaD
The International Air Transport Association (IATA) warned that airline funds for repatriation blocked by governments have risen by more than 25% ($394 million) in the last six months. IATA claims that total funds blocked now tally at close to $2.0 billion across 27 countries and territories, of which Pakistan is alleged to have blocked $225 million. The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 300 airlines or 83% of total air traffic. It has deemed Pakistan to be the second largest market, after Nigeria ($551 million) and before Bangladesh ($208 million), to withhold funds. What does repatriating funds mean? Airlines typically price and sell tickets in the currency of the country in which they are being sold. The local currencies are then converted into their main operating currencies before it can be repatriated. Funds become ‘blocked’ overseas when in certain markets airlines are unable to source the foreign exchange they need to convert their local currency revenues. Why does IATA allege their members’ funds are being blocked? “Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted
treasuries, but ultimately the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is critical for any economy to remain globally connected to markets and supply chains,” said Willie Walsh, IATA’s Director General. What does a prolonged block mean? IATA’s member airlines incur unnecessary costs when they are unable to freely (or in a timely fashion) repatriate their overseas sales funds. Inability to access and use overseas revenues often makes it unsustainable for airlines to maintain service to such countries. “If we do not clear amounts then airlines may reduce the number of flights, and eventually stop operations thereby affecting our passenger and trade connectivity with the world,” mentioned Ammar H. Khan, an independent macroeconomist, to Profit. “This also sends a negative signal to new investors, and aviation players looking to integrate with Pakistan,” Khan continued Profit reached out to the Pakistan Civil Aviation Authority which was unaware of the matter entirely, and stated that it was not within their purview. Profit is still awaiting a response from the State Bank of Pakistan regarding the matter.