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PAKISTAN TO DISCUSS EXTENDED FUND FACILITY WITH IMF NEXT MONTH: FINANCE MINISTER Saturday, 23 March, 2024 I 12 Ramazan, 1445
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US HAS ALSO BEEN ‘VERY SUPPORTIVE’ IN MATTER, SAYS AURANGZEB
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Rs 20.00 | Vol XIV No 265 I 12 Pages I Islamabad Edition
TERMS A LONG-TERM BAILOUT FROM GLOBAL LENDER ‘INEVITABLE’
Pakistan plans $300m Panda Bond issuance to boost foreign exchange reserves PROFIT
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AKISTAN will discuss an Extended Fund Facility (EFF) with the International Monetary Fund (IMF) in Washington next month, Finance Minister Muhammad Aurangzeb said on Friday, as the country looks to alleviate a full-scale economic crisis. Cash-strapped Pakistan’s standby $3 billion arrangement with the global lender expires on April 11, and the two sides reached a stafflevel agreement regarding the disbursal of the final tranche of $1.1 billion earlier this week. “We have expressed our strong interests in an Extended Fund Facility with the IMF, but the quantum is not clear yet,” Aurangzeb said at a media briefing, adding that the lender was “very receptive” to the request. The US has also been “very supportive” in the matter, the minister said. Prime Minister Shehbaz Sharif, after he was sworn in for his second consecutive term
following a national election marred by allegations of rigging, had directed his finance team to begin work on seeking an extended fund facility from the IMF. He termed a long-term bailout from the IMF “inevitable” on Thursday. The IMF had also said it would support formulating a new economic program for the country if it asks for one. The global lender’s rescue package last summer had helped Pakistan avert a sovereign default but, to secure it, the country had to revise its budget, and raise interest rates, taxes, and electricity and gas prices. As a result, during the period, Pakistan struggled through inflation as high as 38%, historic depreciation in its currency, and contraction of the economy. Pakistan will also look to bonds in the international market to help stabilise its economy, Aurangzeb said at Friday’s briefing, adding that, in the meantime, work is being done on panda bonds. “Once our credit rating improves, we will be going to the international
To bolster its foreign exchange reserves, Pakistan is seeking to issue up to $300 million in Panda Bonds, targeting Chinese investors for the first time, according to Finance Minister Muhammad Aurangzeb. The initiative was reported by Bloomberg, highlighting Pakistan’s strategy to diversify its funding sources by tapping into the Chinese bond market, considered the second-largest globally. Aurangzeb emphasized the significance of accessing China’s bond market, noting that Pakistan has previously issued dollar and Eurobonds. The move to issue yuan-denominated debt aims to engage with a new investor base, enhancing the country’s financial resilience. The initial issuance is projected to range between $250 million to $300 million, with plans for subsequent offerings in the future. Panda bonds, which are yuan-denominated securities sold in China by foreign entities, offer Pakistan an opportunity to strengthen its financial position amid challenges such as high inflation, rising interest rates, and declining for-
eign exchange reserves. These factors have collectively hampered the country’s economic growth prospects. The decision follows directions from Prime Minister Shehbaz Sharif to the Ministry of Finance to explore the potential of Panda Bonds as a means to improve liquidity. Despite current economic pressures, Aurangzeb remains optimistic about Pakistan’s capacity to fulfill its debt obligations without adversely affecting the national currency. He anticipates the rupee will maintain stability, though he acknowledges the unpredictability of oil prices as a potential risk factor.
market for bonds,” he said. The finance minister has been keen to capitalise on Pakistan’s relationship with China and had earlier also expressed his intention to
tap into the Chinese bond market. In an interview with Bloomberg on Friday, he said Pakistan plans to sell as much as $300 million in panda bonds this year.
PM Shehabz Sharif to chair first ECC meeting g
TO FORM AND CHAIR ECC OF CABINET HIMSELF; ADDITIONAL STAKEHOLDERS TO BE ADDED TO COMMITTEE PROFIT
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Prime Minister Shehabz Sharif has announced his decision to personally preside over the upcoming meeting of the Economic Coordination Committee (ECC) of the Cabinet, marking a significant shift in leadership dynamics within the economic decision-making process. A notification issued by the Cabinet Division confirmed that, in accordance with Rule 17(2) of the Rules of Business, 1973, Prime Minister Shehabz Sharif has taken the initiative to constitute the Economic Coordination Committee
(ECC) of the Cabinet. Under this arrangement, Prime Minister Shehabz Sharif will serve as the chairman of the ECC, with key ministerial representatives including those from Finance, Economic Affairs Division, Commerce, Power, Petroleum, and Planning, Development & Special Initiatives being appointed as its members. Moreover, the ECC, through special invitation, may include additional stakeholders to enrich discussions and ensure comprehensive decision-making. This roster of potential invitees encompasses prominent figures such as the Deputy Chairman
of the Planning Commission, Governor of the State Bank of Pakistan, Chairman of the Securities Exchange Commission of Pakistan, and Secretaries from various pertinent divisions including Power, Commerce, Finance, Industries & Production, Economic Affairs, Petroleum, Planning, Development & Special Initiatives, National Food Security & Research, Privatization, Railways, Revenue, Poverty Alleviation & Social Safety, and Water Resources. Additionally, the Chairman of the Board of Investment may also be called upon to contribute to deliberations.
PM invites Barrick Gold to invest in other mineral projects in Balochistan g
PROPOSES COLLABORATION TO ESTABLISH A TECHNICAL UNIVERSITY IN CHAGAI DISTRICT PROFIT
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Prime Minister Shehbaz Sharif on Friday invited Barrick Gold to invest in other mineral projects of Balochistan, proposing the government’s collaboration to establish a technical university in Chagai district. State-run news agency APP reported that the premier made this offer during a meeting with Barrick Gold Corporation’s delegation at the Prime Minister’s House. The delegation, led by Chief Executive Officer (CEO) of the company Mark Bristow, informed the prime minister that the feasibility of the Reko Diq project would be completed by the end of the current year. The prime minister was informed that preference was being given to local and Balochistandomiciled persons to work on the Reko Diq project. PM Shehbaz said that the Reko Diq project would prove to be a game changer for the development of Balochistan and the region. “This project will usher in a new era of development of the province and prosperity of the people,” he added.
He said planning would be made regarding communication infrastructure, especially railway lines, to take full advantage of minerals in Balochistan. He also proposed that the government and Barrick Gold could collaborate to establish a technical university in the Chagai district of the province. The government is taking all possible measures to facilitate investors, especially in the fields of road and communication systems, he remarked.
Barrick Gold CEO said that they had set up three schools near Reko Diq under Corporate Social Responsibility, while so far, the company had also imparted technical training to 100 people including women. Federal Minister for Petroleum Minister Musadik Malik, Minister for Law and Justice Azam Nazir Tarar, Deputy Chairman Planning Commission Muhammad Jehanzeb, and relevant senior government officials participated in the meeting.
Islamabad urges Afghanistan to tackle terrorism through ‘collective efforts’ ISLAMABAD
STAFF REPORT
Day after a suicide bombing in Kandahar, Pakistan urged Afghanistan to tackle the issue of terrorism through “collective efforts,” reiterating strong condemnation of terrorism in all forms and manifestations.
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