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PAKISTAN ‘VERY HOPEFUL’ OF SEALING IMF DEAL THIS MONTH: PM SHEHBAZ
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Tuesday, 6 June, 2023 I 16 Zilqad, 1444
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WE HAVE ALREADY MET ALL IMF CONDITIONS, SAYS PM
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CLAIMS PAKISTANIS WILL 'TIGHTEN THEIR BELTS' AND RISE AGAIN
ANADOLU AGENCY
RIME Minister Shehbaz Sharif has said Pakistan is “very hopeful” of finalising a deal with the International Monetary Fund (IMF) this month. “We are still very hopeful that the IMF program will materialise. Our ninth review by the IMF will match all terms and conditions and, hopefully, we’ll have some good news this month,” he told Anadolu in an exclusive interview in the Turkish capital Ankara. The premier was in Ankara for President Recep Tayyip Erdogan’s inauguration, one of dozens of heads of state and government who attended Saturday’s ceremony. Islamabad has been negotiating with the IMF since early February for the release of $1.1 billion, part of a $6.5bn bailout package inked in 2019 by the previous government of former prime minister Imran Khan. The staff-level agreement for the tranche’s release has been delayed since November, with more than 100 days gone since the last staff-level mission to Pakistan, the longest such delay since at least 2008. In total, about $2.7bn are left to be
disbursed from the package, which is scheduled to expire this month. At the end of May, PM Shehbaz requested IMF Managing Director Kristalina Georgieva to help revive the stalled facility, but asserted that Pakistan does have a backup plan in place. Meanwhile, Finance Minister Ishaq Dar said last week that Pakistan will share its budget details with the Fund. He added that he would like the IMF to clear its 9th review before the budget, which is due to be presented in early June, as all the conditions for that had already been met.
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For its part, the IMF has said it remains in touch with Pakistan’s authorities in order to pave the way for a board meeting before the financing programme expires at the end of June. Ordinarily, a board meeting on a review of the programme would require a prior staff-level agreement. During his interview with Anadolu, PM Shehbaz said, “We have met all conditionalities. I repeat, each and every requirement of the IMF as prior actions has been met. “Some of those actions are usually met after the board’s approval, but this
time the IMF required that those actions be met before the board’s approval, so we have met them.” On contingency plans in case the IMF talks fall through, PM Shehbaz emphasised the resilience and fortitude of the Pakistani nation. He said the people of Pakistan had faced challenges in the past, and if needed, will “tighten our belt” and rise again. According to the premier, Pakistan has been facing a plethora of problems since April 2022, when the current government took over after Imran was ousted in a no-trust vote. The issues are the result of the previous government’s policies, the deadly floods in August, and the inflation problem, he said. “Pakistan, in April 2022, was on the verge of default because the government of the day had violated the IMF agreement and the economy was in tatters,” Shehbaz said. “Then we had devastating floods in August 2022. Combined with that we are facing galloping inflation, because of the international situation.” He asserted that his government has been able to navigate the challenges “in the best possible fashion with the help of the people of Pakistan” and “brotherly and friendly countries.”
ECC accords approval for issuing Rs9.5b guarantee for Hyderabad-Sukkur motorway g
TSG OF RS402B IN FAVOR OF MINISTRY OF ECONOMIC AFFAIRS FOR DEBT SERVICING ALSO APPROVED PROFIT
SHAHZAD PARACHA
The Economic Coordination Committee of the Cabinet has agreed to approve the issuance of Rs 9.5 billion GoP guarantee, for the construction of project HyderabadSukkur motorway on a build-operate-transfer basis. Finance Minister Ishaq Dar chaired the meeting of ECC on Monday. As per the details, Communication division informed the ECC that the Executive Committee of the National Economic Council (ECNEC), in its meeting held on 06-07-2022, approved the project ‘Construction o Hyderabad – Sukkur Motorway Project, on Build – Operate Transfer (‘BOT’) basis at a cost of Rs 308 billion without Foreign Exchange Component (‘FEC”). This included the Government of Pakistan (“GOP”) share of PKR 10 billion and concessionaire share of RS 307 billion. National Highway Authority (NHA) initiated the procurement of the approved project through a competitive bidding. A joint venture (JV) of M/s Techno Engineering Services (Pvt.) Ltd, M/s Cooperativa Muratori Cementisti (CMC), and M/s Associated Consultancy Centre (Pot.) Ltd. (ACC) were declared as successful bidders. The JV registered M/s TECMC (Pvt) Ltd a Special purpose Vehicle Company (“SPVC”) with Securities & Exchange Commission of Pakistan (“SECP’) for implementing the Project Public Private Partnership Authority (“P3A”) in its 22nd Board meeting convened on March 31, 2022. The meeting approved the PPP Agreement negotiated between the NHA and M/s TECMC. PPP Agreement further stipulates in section 6.5.5 that, “NHA shall establish and deliver to the Concessionaire the GOP Guarantee of financials close to the
tune of Rs 9,500 million, backed by Sovereign Guarantee and acceptable to the financiers, on a prior basis. In order to initiate the requisite process, ECC is requested to accord approval for issuance of the co Guarantee amounting to PKR 9,500 million to be issued by the Ministry of Finance for the comfort of commercial Lenders of the project so that concessionaire may achieve financial close on time. The committee also deliberated on the subject of the Fixation of Maximum Retail Prices of 49 new drugs. ECC approved the fixation of Maximum Retail Prices (MRPs) of 49 new drugs on the basis of being on the lower side as compared to their prices in the neighboring countries. These are drugs that are being introduced in Pakistan for the first time mostly at prices considerably lower than the region. The Drug Regulatory Authority of Pakistan (DRAP) submitted recommendations of the 52nd meeting of the Drug Pricing Committee (DPC) of the fixation of MRPs of 54 new drugs before the federal cabinet on January 3, 2023. The federal cabinet directed to place the cases for the fixation of MRPs of 54 new drugs before the ECC for detailed discussion. While talking about the servicing of loans, the ECC also approved a technical supplementary grant (TSG) of Rs 402 billion in favor of the Ministry of Economic Affairs for debt servicing for foreign loans and credits. EAD informed the ECC that the budget estimated for year 2022-23 was prepared on the basis of parity exchange rate of Rs186 per USD whereas actual payments have been made at average exchange rate of Rs 235 per USD due to the change in dollar prices. Even though $7 billion for China SAFE deposit and Saudi Time deposit were also rolled over in recent months.
The ECC also approved Rs 839.129 million TSG for “New Gwadar International Airport (NIGA), Rs 120.450 million TSG to meet shortfall of ERE and Non-ERE components, Rs 140 million TSG for Payment to Govt Departments for Services Rendered from various sources, Rs. 116.499 TSG million for meeting the shortfall in essential expenditures in different organizations working under the Ministry, Rs 700 million TSG to pay the salaries of APP and Radio Pakistan employees, Rs 48 million TSG for release of funds to HQ Frontier Corps (North) KP, for construction of FATA Levies Centre at Shakas Peshawar and Rs 470.827 million TSG for the payment of troops cost/subsistence allowance to personnel of Civil Armed Forces deployed in UN Peacekeeping Missions. ECC also approved summary of Ministry of Interior for release of funds of Rs. 66.336 million as TSG for the construction of Frontier Constabulary Training Center, Michni, Khyber Pakhtunkhwa. The funds have been granted in aid to Pakistan by the USA for capacity building of Civil Armed forces. It also approved a Rs. 347.99 million TSG to complete the raising process of 6th Battalion of Pakistan Post Guards for anti-smuggling purpose, RS 1.25 billion TSG for FATA Temporary Displaced Persons Emergency Recovery Project (TDP-ERP) of NADRA to serve the vulnerable families affected by military operations, Rs. 49.5 million as TSG for further disbursement of amount as financial assistance for the families of Shuhada and injured persons of Swat terrorism incident, Rs 9,145 million TSG for execution of 2×660 MW Coal fired Power project Jamshoro, Rs 110.653 million TSG to strengthen NACTA within its current mandate and Rs. 5,252 million as TSG in the favour of Ministry of Defence for meeting its ERE shortfall.
Maryam says Imran is now ‘isolated and shedding tears alone’ BAGH
AGENCIES
Maryam Nawaz, the senior vice president and chief organiser of the Pakistan Muslim League-Nawaz (PML-N), asserted on Monday that the person who once boasted about invincibility and promised to bring tears to other people’s eyes, was now isolated and shedding tears alone, referring to former prime minister Imran Khan who is under fire following the event that transpired following his May 9 arrest. “Anyone who disrespects the martyrs sets their memorials on fire, or sets ablaze the fighter jets that destroyed enemy jets cannot be one of us. They cannot be Pakistani either,” she said while addressing a public gathering in Azad Jammu and Kashmir’s (AJK) Bagh area. She emphasised that those who disrespect and burn down memorials of the martyrs cannot be respected. “They dreamed of breaking the PML-N, but today, the PTI itself has fallen into disarray. Those who used to claim they were invincible and vowed to make others cry are now sitting alone and weeping. Even their own prime minister of AJK is testifying against them,” she added. “Whoever acted in such a manner towards the martyrs and their memorials on May 9, listen carefully, the Pakistani nation and the people of Kashmir will never forgive you. We will make an example out of it,” she concluded.
Apex Court won’t interfere in economic affairs, says CJP Bandial ISLAMABAD
NEWS DESK
Chief Justice of Pakistan (CJP) Umar Ata Bandial has said that the Supreme Court will not interfere in economic affairs as it has no expertise in the domain. The CJP’s remarks came while hearing the petition filed by Jamaat-e-Islami (JI) against the privatisation of K-Electric — the sole private power utility company in Karachi. Three-member bench led by CJP Bandial and comprising Justice Athar Minallah and Justice Ayesha A Malik heard the plea. The CJP told the petitioner’s counsel Rashid Rizvi that he could approach the relevant high court for the matter. “Parliament has made two laws related to clause 3 of Article 184,” he remarked. Advocate Salahuddin told the apex court that an application was also filed against the power utility’s labour union. To which, Justice Malik responded that the court was not hearing the matter of labour union. The petitioner’s counsel requested the top court to adjourn the hearing on the matter till next week. “Holidays are starting next week, judges will not be available on the principal seat,” the chief justice remarked. He said judges will be in their respective registries from next week. CJ Bandial asked advocate Rizvi to take instructions from his client regarding the case and fixed the hearing of the case for tomorrow (Tuesday). The company formerly known as Karachi Electric Supply Corporation (KESC) was privatised in 2005 for a sum of Rs16 billion to a Saudi-Kuwaiti group. In those days, the US dollar was valued at Rs59.75 in the inter-bank market. Going by those rates, the company was privatised for $270 million. The general perception was that privatisation will improve the financial condition of the company. In 2009, the company was sold to private equity firm Abraj Group with management control for Rs361 million.
Amid rumours of more defections, Umar, Qaisar say no contact with Jahangir Tareen ISLAMABAD
STAFF REPORT
With Imran Khan’s Pakistan Tehreek-i-Insaf (PTI) is facing a new challenge every day, party’s two senior leaders have clarified they have no contact with Jahangir Tareen’s group who is planning to launch a new party. PTI’s former secretary-general Asad Umar on Monday told media he had no contact with Jahangir Khan Tareen, who used to be a close aide of PTI chief Imran Khan before heading a group of dissidents in the party. The PTI leader, who had quit his party positions on May 24 but had not resigned from the party altogether, made the remarks outside an Islamabad court where he appeared in a case pertaining to violent protests in the country on May 9. Umar’s remarks come amid reports of the Tareen group which had emerged as a faction in the PTI comprising the party’s dissident parliamentarians stepping up efforts to poach as many PTI defectors as it can to swell its ranks ahead of general elections. In recent days, several PTI members, including prominent leaders, have parted ways with the party following a state crackdown on it over allegations of their involvement in
vandalism during May 9 protests following the arrest of the PTI chief. On May 29, Tareen held a meeting with former PTI leader Abdul Aleem Khan at his residence in the provincial capital. The meeting was also attended by former minister Ishaq Khakwani, PM’s aide Aown Chaudhry, Saeed Akbar Niwani and Shoaib Siddiqui. Though there has been no word from the Tareen group regarding their re-entry to the political arena, reports suggest that the former PTI leader and financier would relaunch his political career with a new political party. On Saturday, the Tareen-led group held a meeting in Lahore in which PTI defector Sardar Tanveer Ilyas, the former prime minister of Azad Jammu and Kashmir, participated and announced that he would be moving forward with the group. “Our understanding with Jahangir Tareen is that we will move forward together. The work regarding forming a new party is also underway,” Ilyas said. Nauman Langrial, another member of the Tareen group, said the association was seriously considering forming a new party. “Although no final decision has yet been made, we will likely form a new party. We
are in contact with the former PTI leaders. Big names will join us soon,” he said. He said that after the May 9 riots, things had changed and the people were not with “Imran Khan’s PTI”, adding that “we will welcome anyone who is ready to leave the PTI and its narrative”. During today’s court appearance, Umar was hounded by reporters who asked him about joining Tareen. “What connection do I have with Jahangir Tareen?” Umar responded to the queries. Another reporter then asked the PTI leader whether Tareen had been in contact with him, to which Umar shook his head in denial. However, he did state that Fawad Chaudhry — who had resigned from the party last month — remained in touch from “time to time”. Umar was also asked whether he was facing any “pressure”. He promptly replied that the only “pressure” he was facing was appearing before different courts every day. “Since my release from Adiala Jail, I have attended more than eight court hearings,” he said. Meanwhile, a district and sessions court in Islamabad extended Umar’s bail in a case registered at the Tarnol police station in con-
nection with May 9 riots till June 10. Additional sessions judge Tahir Abbas Supra presided over the hearing during which the associate prosecutor said that the prosecutor’s father had passed away. He requested the court to adjourn the hearing. The court extended the PTI leader’s bail for five more days without conducting any proceedings. I STAND BY PTI, SAYS ASAD QAISER: At a time when many of the PTI leaders and former lawmakers are dissociating themselves from the party, Asad Qaiser the National Assembly speaker on Monday made it clear that he had not switched sides. He was standing by the party and in contact with the PTI chief, Qaiser told reporters
outside a local court where he attended the hearing of a case pertaining to the vandalism outside the federal capital’s judicial complex. “I am with [Pakistan] Tehreek-i-Insaf and in touch with the PTI chairman.” The latest assertion is in complete contrast with what the people had seen last week when Pervez Khattak, addressing a presser in Islamabad along with Qaiser, had announced his decision to quit as the PTI president. However, Qaiser remained silent during the event where Khattak had condemned the May 9 mayhem and said it wasn’t possible for him to continue as a PTI office holder, adding that he would announce his future plan later after consulting his friends and party colleagues. And on Monday, Qaiser said he wasn’t in contact with Jahangir Tareen. He was replying to a question about whether Tareen had contacted him as the influential politician from Lodharan is currently busy in forming a new political party mostly comprising the PTI defectors.
PTI wickets continue to fall, ex MNA Rana Nazir quits party
ISLAMABAD: More wickets of Pakistan Tehreek-e-Insaf (PTI) continue to falls as former Member of the National Assembly (MNA) from Gujranwala Rana Nazir Ahmad Khan quit the PTI. The announcement to leave party was made by him while addressing a news conference in Islamabad on Monday. Speaking on the occasion, Rana Nazir Ahmad Khan also condemned the May 9 violent incidents. He was of the view that the national stability and interests superior of the party affiliations. STAFF REPORT