PM HOPES FOR BAILOUT APPROVAL FROM IMF BOARD ON JULY 12 In partnership with
Profit
thursday, 6 July, 2023 i 17 zil hajj, 1444
Thanks China, KSA and UAE for support while govt was in negotiations with IMF
P
g
ISLAMABAD
g
Dar says Pakistan will receive a first instalment of $1.1b
StAff RepoRt
RIME Minister Shehbaz Sharif said on Wednesday that he hoped the $3 billion short-term bailout for Pakistan would be given final approval by the International Monetary Fund (IMF) board when it meets on July 12. After eight months of negotiations, both sides signed a staff-level agreement on Friday, to avert a imminent default on sovereign debt. Finance Minister Ishaq Dar has said Pakistan will receive a first instalment of $1.1 billion, but the IMF board’s approval is needed before funds can be disbursed. “The agreement will go through, God willing,” Shehbaz said during a ceremony in Islamabad. Shehbaz also thanked long-time allies China, Saudi Arabia and United
Arab Emirates for their support while his government was in negotiations with the IMF. The allies had pledged bilateral financing or rolled over debts to help slow the drain on Pakistan’s foreign currency reserves, which by the end of last month were down to
GB speaker faces no-confidence motion amidst political unrest GILGIT
StAff RepoRt
In the aftermath of Gilgit-Baltistan Chief Minister Khalid Khurshid Khan’s disqualification, political tensions surge as a no-confidence motion is lodged against house speaker Nazir Ahmed. Amjad Hussain, the opposition leader, has submitted the motion to the assembly. The secretary of the Gilgit-Baltistan Assembly, Abdur Razzak, has promptly issued notices to all lawmakers, summoning them to a special session to discuss and vote on the motion. Simultaneously, the Pakistan Tehreek-i-Insaf (PTI) party has officially nominated Raja Azam Khan Amacha as the new chief minister of Gilgit-Baltistan. The parliamentary party of PTI has proposed his name, which received unanimous support from party members, demonstrating their strong endorsement of his capabilities and leadership, according to a PTI spokesperson.
FM Bilawal Bhutto arrives in US on ‘private visit’ NEW YORK
StAff RepoRt
After concluding his maiden Japan visit, Pakistan Peoples Party (PPP) Chairman and Foreign Minister Bilawal Bhutto-Zardari on Wednesday reached USA on a private visit, sources said on Wednesday. Sources privy to the matter said that the foreign minister will stay in the USA for a period of one week where he will hold important conferences being arranged by the US think tank. The foreign office is also making efforts to arrange between FM Bilawal Bhutto and US diplomatic officials, say sources. The foreign minister is visiting USA on a special invitation from US think tank, they say. It is pertinent to mention here that Foreign Minister Bilawal Bhutto Zardari recently visited Japan on a four-day visit where he held meetings with Japanese leadership, business executives and the Pakistani diaspora. During the meetings, the matters related to bilateral cooperation in trade and investment came under discussion. He also addressed a function organized by the Pakistani diaspora in Tokyo. FM Bilawal said Pakistan and Japan have the potential to increase bilateral trade in diverse sectors for mutual benefit. The foreign minister said both countries can benefit from investment in agriculture and livestock.
Rs 15.00 | Vol XIV No 6 I 8 Pages I Islamabad Edition
just a little below $4 billion, barely enough to pay for a month of controlled imports. Dar said on Friday that the IMF deal would unlock bilateral lending from friendly governments and other multilateral lenders, and Pakistan’s reserves could rise up to $15 billion
by the end of this month. Pakistan is due to hold a general election by early October, though Shehbaz’s coalition government only came to power in April last year, after former prime minister Imran Khan lost a confidence vote in parliament. The government desperately needed the IMF bailout to avoid the deepening balance of payments crisis, while dealing with an economy suffering record high inflation, running at 38% annually in May. Shehbaz has had to take unpopular policy decisions demanded by the IMF since February. It has already announced an increase in the petroleum levy, and it will be raising electricity prices too. The government has also committed to raise more than 385 billion rupee ($1.34 billion) in new taxation, and in recent days the central bank raised the policy interest rate 22%.
Sharif: A decade of CPEC reshaped Pakistan’s development scenario ISLAMABAD
Prime Minister Shehbaz Sharif praised the China-Pakistan Economic Corridor (CPEC) for its significant contribution to the development of Pakistan during a ceremony commemorating a decade since its signing. He emphasized that CPEC had transformed the country’s development landscape through the implementation of numerous multi-billion dollar projects. The prime minister acknowledged the efforts of both Pakistani and Chinese leadership in making the project a success, highlighting the long-term plan for CPEC that was signed by then-prime minister Nawaz Sharif and President Xi Jinping in July 2013. Sharif commended the transparency of the CPEC project and the $25.4 billion investment made by the Chinese government and companies. He acknowledged the dedication of Chinese and Pakistani workers who worked tirelessly to ensure the success of the projects. The prime minister expressed gratitude to President Xi for his unwavering support of CPEC and also recognized the contributions of various Pakistani officials and leaders, including Finance Minister Ishaq Dar, Planning Minister Ahsan Iqbal, entrepreneurs, and workers.
Seven die as 291mm record-breaking rainfall batters Lahore, surroundings g
PM directs Punjab govt to mobilise rescuers as province braces for more rains LAHORE/PESHAWAR
g
SAleem JAdoon
The 10-hour-long record-breaking rain spell of monsoon on Wednesday wrecked havoc in the provincial metropolis, leaving most parts of the city submerged in rainwater while seven persons died and several others injured in different rain-related incidents. The PDMA claimed that the city received 291 mm rain – heaviest rainfall in 30 years during 10 hours long first spell of monsoon rains. Prime Minister Shehbaz Sharif directed the Punjab government to take immediate measures and mobilise the rescue teams across the province. Coordinated efforts by the district administration, Rescue 1122, Provincial Disaster Management Authority, municipal and other departments should be ensured, he said adding that all possible measures should be taken to protect the citizens’ lives, ac-
cording to a PM Office statement. Premier Shehbaz Sharif instructed the National Disaster Management Authority (NDMA) and other federal departments to extend maximum support to the Punjab government, if required. All necessary steps must be taken to
aware the citizens of any emergency situation, chalk out alternate traffic plans and make arrangements for proper drainage, he maintained. The prime minister also instructed to take preventive measures in wake of the monsoon rains in other parts of the coun-
ISLAMABAD
The National Accountability Bureau (NAB) has once again initiated an inquiry into an alleged high-value scam, delving into the payment of a substantial sum of Rs 500 billion to Independent Power Producers (IPPs) amid concerns of irregularities. The inquiry was prompted by the recently amended NAB Act of 2022 and may once again result in a delay in payments. According to sources, the Secretary of the Power Division has been directed to pro-
try, besides asking the NDMA and PDMAs to coordinate for necessary arrangements. He said the all possible steps should be taken to relocate the people from villages to safe locations besides saving their cattle. Similarly, he said all necessary measures should be taken to prevent the urban flooding. PM Shehbaz also directed to mobilise the respective administrations of Gilgit Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa and other hilly areas, besides instructing to keep the PM Office updated on all the measures taken. According to the PDMA and rescue sources, a couple and their minor child died when roof of a house caved-in due to heavy rain in Misri Shah area while a youth was electrocuted to death when high voltage power line fell into rainwater due to strong wind in Chungi Amar Sidhu area of the city.
CONTINUED ON PAGE 03
Kashf Foundation issues first ‘Gender Bond’ to empower women-led businesses
g
Bond, guaranteed by InfraZamin Pakistan, expected to raise Rs2.5b PROFIT
ShAhnAwAz Ali
When we think of Bonds, the first thing that comes to mind is the cut-throat business of Investment Banking. Where yields reign supreme and ratings determine fates. But what if the same bond was used to serve a cause and do some good in the society? Much like countries, companies also issue bonds to raise debt. This debt is then used to run any and all operations that the company has and is eventually
paid off after a stipulated time (maturity), along with a specific annual return (yield). How much a bond is worth in the market is dependent upon the company’s or the bond issuer’s credibility, also known as their rating. In a significant development for social and economic empowerment of women, Kashf Foundation, Pakistan’s leading non-profit, with the facilitation of InfraZamin Pakistan (IZP) has carried out the issuance of a pioneering genderbased bond. The bond is aimed at expanding Kashf’s micro-loan portfolio
Inquiry was prompted by recently amended NAB Act of 2022,could once again result in delay of payments AhmAd AhmAdAni
CONTINUED ON PAGE 03
Three people die in various rain-related incidents across KP
and promoting gender equality in Pakistan. The bond issuance, classified as a ‘Gender Bond,’ will be the first of its kind in the country and follows the guidelines prescribed by the Securities and Exchange Commission of Pakistan (SECP). Arif Habib Limited, a leading brokerage house, is acting as Financial Advisor & Arranger for the said bond. What purpose does the Bond serve? Talking to Profit on the subject, the CEO of IZP, Maheen Rehman says that, “Fundamentally, it is like any other commercial bond. It is issued in the
NAB relaunches probe into alleged Rs500b scam involving payments to ‘favoured’ IPPs
g
StAff RepoRt
vide the required information by July 11th. As part of its renewed inquiry, NAB has specifically requested details regarding the assets declared by the officials involved in the disbursement of funds to the IPPs. BACKGROUND The scandal dates back to 2013 and revolves around the borrowing of a substantial Rs 500 billion from various banks to settle outstanding dues owed to the IPPs. The Power Division, in conjunction with Power Holding Private Limited (PHPL), facilitated the loan and played a significant role in distributing the funds to the favoured IPPs.
NAB’s relaunched inquiry aims to shed light on the potential irregularities that may have occurred during this process, focusing on both the IPPs and the officials within the Power Division. The issue has particularly been in limbo since March 2021, when the NAB investigation into IPPs reportedly put the first instalment of 40 percent of agreed amount of over Rs 400 billion in limbo. In April that same year, NAB had written to the power division saying that the government has the full authority to execute their altered agreements with 47 IPPs in a
bid to provide relief to those officials who are hesitant to implement the new agreements because of fears of possible action against them in future. The decision to relaunch the inquiry demonstrates NAB’s unwavering commitment to addressing large-scale financial misconduct. By revisiting this investigation, the bureau seeks to ensure transparency, accountability, and responsible use of public funds. The relaunch of this inquiry has sent shockwaves throughout the power sector and the wider business community, sparking concerns about fair competition and the integrity of the industry. Stakeholders eagerly await the outcome of NAB’s efforts, as the investigation is expected to have significant implications for the energy sector.
market, and has an annual rate of return, which is Karachi Interbank Offered Rate (KIBOR)+1.5%”. “What is different in this bond,” she explains, ”Is that, compared to other commercial bonds, is that we have limited the scope of the capital raised as a result, in terms of how it can be spent. The funds raised will go towards strengthening Kashf’s Balance sheet, which in turn provides micro loans to women and women led businesses.”
CONTINUED ON PAGE 03 INVESTIGATION IN LIMBO As the inquiry progresses, NAB is expected to meticulously scrutinise financial records, contracts, and relevant documents to build a compelling case against those involved. While the outcome of this high-profile investigation remains uncertain, NAB’s decision to relaunch the inquiry instils hope for a more transparent and corruption-free society. Citizens eagerly anticipate justice, with expectations that this investigation will serve as a strong message, deterring potential financial misconduct. In conclusion, NAB’s relaunch of the inquiry into the alleged Rs 500 billion scam involving favoured IPPs marks a significant step in the fight against corruption and the pursuit of accountability in Pakistan. This renewed investigation aims to uncover potential fraudulent disbursements to select IPPs, involving officials from the Power Division. As NAB intensifies its efforts to unveil the truth, the nation awaits with anticipation, hopeful that this endeavour will restore faith in governance and financial systems while reinforcing the values of transparency and integrity.