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SC ORDERS SBP TO ‘MAKE AVAILABLE’ ELECTIONS FUNDS TO ECP ‘IMMEDIATELY’ Saturday, 15 April, 2023 I 24 Ramzan, 1444
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NOTES THERE’S ‘ABSOLUTELY NO DIFFICULTY OR HITCH, EITHER FINANCIALLY OR PROCEDURALLY IN IMMEDIATE RELEASE OF FUNDS
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ASKS CENTRAL BANK TO SEND AN ‘APPROPRIATE COMMUNICATION’ TO THIS EFFECT TO FINANCE MINISTRY BY MONDAY
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ISLAMABAD
staff RepoRt
HE Supreme Court on Friday directed the State Bank of Pakistan (SBP) to release Rs21 billion in funds to the Election Commission of Pakistan (ECP) for the conduct of elections to the Punjab and KP assemblies and send an “appropriate communication” to this effect to the finance ministry by Monday (April 17). During an in-chamber hearing headed by Chief Justice of Pakistan (CJP) Umar Ata Bandial, the top court judges informed Attorney General for Pakistan (AGP) Mansoor Awan that the court orders must be followed in the suo motu notice regarding the postponement of Punjab polls. During in-chamber proceedings on Friday, the AGP presented the government’s stance and faced tough questions. The judges expressed their anger regarding the non-disbursement of funds. Before the hearing, the AGP had a meeting with officials from the finance ministry and Prime Minister Shehbaz Sharif also called on the AGP for consultation. Special Secretary Finance Owais
Manzoor Samra, Additional Secretary Finance Amar Mehmood and Additional Secretary Finance Tanveer Butt were present at the hearing. Acting Governor State Bank Seema Kamil, Deputy Governor State Bank Inayat Hussain Chaudhry, Director State Bank Qadir Baksh and Protocol Officer State Bank Mohsin Afzal were also present at the hearing. The ECP secretary, additional secretary and director general of Law ECP
UAE confirms bilateral support of $1 billion PROFIT
IsLaMaBad
Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Friday said that UAE authorities have confirmed to International Monetary Fund (IMF) for their bilateral support of US$ one billion to Pakistan. “UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan,” he said in a tweet. “State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities”, he tweeted. The finance minister added that the State Bank of Pakistan (SBP) is now engaged in needful documentation for taking the said deposit from the UAE authorities. Following up with another tweet, Dar also revealed that the Industrial and Commercial Bank of China (ICBC) is set to give Pakistan $300 million today in a move that will boost the country’s foreign exchange reserves further. “State Bank of Pakistan would receive back third and last disbursement today in its account amounting to $300 million,” the finance czar wrote on his official Twitter handle. “It will shore up forex reserves of Pakistan.” Last week, the Washington-based Fund conveyed to Pakistan that it had received confirmation from Saudi Arabia on $2 billion in additional deposits. “The IMF has indicated it has received the assurance from Riyadh”, State Minister for Finance Aisha Ghaus Pasha told reporters in Islamabad last week. Saudi Arabia’s $2 billion and UAE’s $1 billion pledged in external financing support to Pakistan is one of the final conditions for an IMF deal that Islamabad needs to avert a default. Last month, the Chinese lender approved a rollover of a $1.3 billion loan for Pakistan. Following the announcement, the Chinese bank deposited $500 million — the first disbursement — on March 4 and then the second tranche of an equivalent amount was released on March 17. A day earlier, IMF Managing Director Kristalina Georgieva said that Pakistan had not reached the default level yet. Georgieva, while addressing a news conference on the spring meeting of Breton Wood Institutions at the Washington-based Fund headquarters, said the Fund was securing confirmation from international partners to meet the financing gap requirements of Pakistan. In response to a question regarding the looming default risk facing Pakistan, she said: “Pakistan had not yet reached that level and it would not but the country required a sustainable policy framework to avert such risks”.
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were also in attendance. The court, in its order released later after Jumma prayers, sad: “The sum of Rs21bn shall be and become available to and with the election commission in immediately releasable and utilisable funds for the purposes of holding the general elections to the Punjab and KP assemblies.” The court also observed that the required funds could be made available to the Election Commission of Pakistan
(ECP) “immediately and within a matter of a day”. It also noted that there was “absolutely no difficulty or hitch, either financially or procedurally or in terms of the relevant authorisation by and under the Constitution” in the immediate release of the funds in question. The directives for the release of the said funds were earlier issued by a threemember SC bench, comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijazul Ahsan and Justice Munib Akhtar, in an April 4 verdict. The government was directed to provide Rs21bn to the ECP to conduct elections in Punjab and Khyber Pakhtunkhwa by April 10, and directed the ECP to provide a report to the court on whether or not the government complied with the order on April 11. The ECP, in a one-page report submitted earlier this week, informed the court about the government’s reluctance to issue the amount needed for elections. The government, meanwhile, had referred the matter to Parliament to decide. A day earlier, the parliament defied the SC order and refused to issue the elections funds.
Public representatives to determine country’s destiny, says COAS
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ISLAMABAD
staff RepoRt
Chief of Army Staff (COAS) Syed Asim Munir on Friday declared that the Constitution of Pakistan and the Parliament reflect the opinion of Pakistanis who are the centre of gravity for the state of Pakistan. “The nation exercises its opinions through the Constitution and the Parliament and Allah Almighty is the supreme power. According to the Constitution, the powers will be exercised through the representatives elected by the nation,” COAS Gen Asim Munir said during an incamera session of the National Security Committee on Friday. Gen Asim Munir reiterated that the elected representatives of the people should determine the country’s destiny and the Army will fully support them in the journey towards development and success of Pakistan. The COAS congratulated the Parliament and lawmakers on the completion of 50 years of the 1973 Constitution of Pakistan and said the nation is the centre of powers and the Constitution and the Parliament reflect their opinions. Prime Minister Shahbaz Sharif, the DG ISI, DG Military Operations and top military officials, IG Punjab, Chief Secretary Punjab, Federal Secretaries Interior, Foreign, Finance, Defense, and Broadcasting, the four provincial chief ministers, four provincial chief secretaries, and IGs of police attended the in-camera meeting. “This campaign is an approved strategy before the establishment of the state of Pakistan. In this campaign, all necessary el-
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PM terms telephonic conversation with Iranian President as productive ISLAMABAD
staff RepoRt
Prime Minister Shehbaz Sharif has termed his recent telephonic conversation with Iranian President Ebrahim Raisi as productive. In a tweet on Friday, he said we discussed various facets of bilateral relations and Israel’s human rights violations. The Prime Minister said he congratulated the Iranian President on historic Iran-KSA deal that augurs well for regional stability. He also invited the Iranian President to visit Pakistan.
Govt not to allow anyone breach parliament’s jurisdiction: Kh Asif ISLAMABAD
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ements including law, economy, social, and foreign affairs of the government alongside the security institutions will be included.” “This is not a new operation but it reflects the unshakeable confidence of the nation. There is no no-go area existing in Pakistan at this time. We achieved this success through a large number of shuhadah and ghazis,” said the army chief. In view of the deepening political crisis, General Asim coined a new term. “We should leave the discussion of ‘Naya’ (new) and ‘Purana’ (old) Pakistan and talk about “our Pakistan,” he said with thunderous applause from the lawmakers. The Army chief also said that Pakistan had no dearth of resources and manpower. In response to questions asked by the members of the national assembly, Gen Asim said that talk with the banned TTP was a mistake. After the Taliban takeover, Pakistan initiated talks with the
TTP. Initially talks made progress as the two sides entered a ceasefire and Pakistan allowed hundreds of TTP fighters to return as a confidence building measure. But the move quickly backfired as the returning terrorists started challenging the writ of the state. The government and the establishment no longer are following the policy of the previous government. Gen Asim explained that the current campaign against terrorists was part of the already approved and ongoing strategy of the State of Pakistan. This campaign will include all the necessary components of government like legal, economic, social, and foreign besides security institutions,” he maintained. “This is not a new operation but a whole of nation approach that reflects the unwavering confidence of the people, and which includes all elements of the state,” he clarified.
Defence Minister Khawaja Asif Friday warned state institutions to stay within their constitutional limits and stressed that the government would not allow anyone to interfere with the parliament’s affairs. “We will not allow anyone to breach the parliament’s jurisdiction,” the Pakistan Muslim League-Nawaz (PML-N) stalwart told Geo News as the country faces one of its worst economic and political turmoils. The defense minister’s comments came as the federal government is in a virtual standoff with the Supreme Court over the issue of the Punjab and Khyber Pakhtunkhwa general elections and a bill that seeks to curtail the chief justice’s suo motu powers. The defence minister said the government wants to strengthen the judiciary as it would help the masses in availing justice. “The background needs to be examined of the ongoing issues in the Supreme Court.” Asif said parliament is the “mother of democracy”, but due to the ongoing situation in the country, the legislative is less involved in politics compared to the apex court. “The institutions should respect their constitutional limits,” he said, asking them not to breach their jurisdiction. The apex court while exercising ‘anticipatory injunction’, a day earlier stayed the operation on the Supreme Court (Practice and Procedure Bill) 2023 aimed at curtailing the powers of the chief justice to take suo motu notice and constitute benches. The National Assembly today unanimously passed a resolution stating in categorical terms that the parliament’s prerogative of legislation can neither be usurped nor can be interfered into. Talking about Chief of Army Staff (COAS) General Asim Munir’s in-camera briefing to the National Assembly’s National Security Committee, Asif said the top military leader’s comments on parliament’s supremacy were welcoming. “The army chief’s comments on the parliament and the Constitution are of extreme importance as people run the institutions,” the minister added.
Pakistan hopes to ‘seal key IMF bailout agreement soon’ PROFIT
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Pakistan’s debt continues to be sustainable, International Monetary Fund (IMF) managing director Kristalina Georgieva said on Thursday, after the government reiterated it had completed all requirements to receive a critical bailout from the IMF. Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments. The funds, which can only be released after signing a staff level agreement (SLA), are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations. Pakistan’s finance ministry on Thursday said IMF deputy managing director An-
toinette Moniso Sayeh was confident of signing the staff level agreement very soon. Asked what Pakistan needed to do to avoid reaching the unsustainable debt positions faced by countries like Sri Lanka, Georgieva said: “We are not there yet, and it is better not to get there.” She said the lender has been working very hard with the authorities in Pakistan within the context of the current programme to make sure the country has the policy framework in place to prevent reaching the point of unsustainable debt. “My hope is that with the goodwill of everyone, and the implementation of what has been already agreed by the Pakistan authorities, we can complete our current programme successfully,” Georgieva told reporters at a briefing in Washington. The fund is also in talks asking friendly countries of Pakistan to provide financial assurances so it can complete the pro-
gramme, she said. Pakistan is required to give an assurance that its balance of payments deficit is fully financed for the fiscal year ending in June to unlock the next tranche of IMF funding. Pakistan’s government reiterated on Thursday it has completed all requirements
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to receive the critical bailout money from the fund following a meeting with Sayeh. “The finance minister also shared that all the international obligations have been addressed in time,” the finance ministry said in a news release. On Wednesday, Pakistan’s finance min-
istry release a statement following talks with the IMF’s Middle East and Central Asia Director Jihad Azour. “Mr. Jihad Azour expressed confidence that SLA expected to be signed soon which to be followed by the Board’s approval for the 9th Review,” the ministry said in a tweet.
Fund’s MD states Pakistan has not yet reached default level
PROFIT: The Finance Minister of Pakistan, Ishaq Dar, announced that the United Arab Emirates has informed the International Monetary Fund (IMF) that they will provide $1 billion in support to Pakistan. This support will enable Pakistan to unlock a critical $1.1 billion loan tranche from the IMF. The State Bank of Pakistan is currently working on the necessary documentation to receive the deposit from the UAE authorities. The IMF has also received confirmation from Saudi Arabia on $2 billion in additional deposits. These deposits from Saudi Arabia and the UAE are necessary for an IMF deal that Islamabad needs to avoid defaulting. Despite the looming risk of default, the IMF Managing Director stated that Pakistan has not yet reached that level, but the country requires a sustainable policy framework to prevent such risks. news desk