In partnership with
Profit
PM, SAUDI CROWN PRINCE REAFFIRM COMMON RESOLVE TO STRENGTHEN BILATERAL TIES FURTHER Monday, 8 April, 2024 I 28 Ramazan, 1445
P g
Shehbaz Sharif meets Mohammed bin Salman during an Iftar dinner in Makkah
g
MAKKAH/ISLAMABAD
Bilateral meeting was followed by a one-on-one discussion between the two heads of states
staff RepoRt
RIME Minister Shehbaz Sharif had a significant encounter with Saudi Crown Prince and Prime Minister, His Royal Highness Mohammed bin Salman bin Abdulaziz Al Saud, during an Iftar dinner in Makkah on Sunday. The prime minister, accompanied by a delegation including Punjab Chief Minister Maryam Nawaz, was invited to the Iftar dinner by the crown prince, as confirmed by a statement issued by the Prime Minister’s Office. During the gathering, Prime Minister Shehbaz conveyed prayers and best wishes for the health and well-being of the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz. Additionally, he expressed gratitude for the warm welcome accorded to him and his delegation by the Saudi authorities. Both leaders took note of the upward trajectory of the longstanding fraternal relations between the two nations and reaffirmed their common resolve to further strengthen bilateral ties. Following the Iftar, a bilateral meeting was convened, followed by a one-on-one discussion between the prime minister and the Saudi crown prince. Arab News reported that Saudi Arabia’s Crown Prince Mohammed bin Salman received Pakistan’s Prime Minister Shehbaz Sharif at the Al-Safa Palace in Makkah on Sunday. The meeting was held in the presence of Bahrain’s Crown Prince Salman bin Hamad AlKhalifa, and both officials had iftar with the Kingdom’s crown prince. The crown prince and Shehbaz reviewed relations between the Kingdom and Pakistan, aspects of cooperation and ways to develop them, and discussed regional and international developments. Prime Minister Shehbaz’s visit to Makkah commenced with the purpose of offering Umrah. Upon his arrival at the Makkah railway station, he was received by Saudi ambassador to Pak-
istan, Nawaf Bin Saeed Al-Malkiy, along with high-level officials. The trip, scheduled from April 6 to 8, marks a significant diplomatic engagement for Pakistan. The prime minister is accompanied by federal ministers including Ishaq Dar, Khawaja Muhammad Asif, Muhammad Aurangzeb, Abdul Aleem Khan, Attaullah Tarar, and Ahad Khan
Cheema. Punjab Chief Minister Maryam Nawaz also accompanied the premier. The longstanding fraternal relations between Pakistan and the Kingdom of Saudi Arabia are deeply rooted in religious and cultural affinity. The people of Pakistan hold the deepest respect and regard for the Custodian of the Two Holy Mosques, King Salman bin
ISLAMABAD
bers of the Committee. The committee will be chaired by the Deputy Chairman Planning Commission that comprised of government officials, parliamentarians, representatives from civil society and environment NGOs, private sector, research institutes, and expert/advisors with knowledge on specific topics. The members are Deputy Chairman Planning Commission, Mohammad Jehanzeb Khan (chair), Coordinator to PM on Climate Change, Roinina Khurshid Alam, Senator Ayesha Raza Farooq, MNA Bilal Kiyani, Executive Director, SDPI, Dr Abid Suleri, Kashmala Kakakhel Climate Finance Expert, Rizwan Mehboob, Cli-
staff RepoRt
Prime Minister Shehbaz Sharif has constituted a high-level committee to review Climate Change Governance and Mechanisms to access Climate Funds and nominated Climate Change Minister, Romina Khursheed Alam and Executive Director, Sustainable Development Policy Institute (SDPI), Dr Abid Suleri as its members along with other senior members. The Minister of Climate Change and Environmental Coordination has issued a detailed notification explaining the context, mandate, terms of reference (TORs) and list of the mem-
SBP Governor assures that Pakistan has arranged for its debt repayment during FY2023-24 PROFIT
News Desk
In a significant move towards fulfilling its international financial commitments, Pakistan is set to repay a $1 billion Eurobond due mid-April 2024. This repayment will mark a decrease in the country’s Eurobond and Sukuk debt below the $7 billion threshold. The State Bank of Pakistan (SBP) has confirmed its readiness to proceed with the repayment, pending instructions from the finance ministry. The decision comes at a time when the Eurobond, maturing on April 15, 2024, reached a record high in value, propelled by investor confidence in Pakistan’s ability to meet its obligations following a notable improvement in its foreign exchange reserves, which recently exceeded $8 billion. Ad powered by advergic.com This increase in reserves is
seen as a crucial factor in Pakistan’s capacity to manage upcoming foreign debt repayments. Pakistan’s history of timely Eurobond repayments, including a $1 billion pre-mature repayment last December, has been highlighted as a testament to its fiscal management, even amid previous foreign exchange crises. The success in managing these repayments has been attributed in part to securing a $3 billion loan from the International Monetary Fund (IMF) in June 2023, which played a pivotal role in stabilizing the economy. Looking ahead, the SBP Governor has assured that Pakistan has fully arranged for its debt repayments for the fiscal year 2023-24, indicating a robust plan for financial management. Despite an expected dip in foreign exchange reserves following the April repayment, an anticipated $1.1 billion tranche from the IMF,
due by the end of April, is projected to replenish these reserves. The enhancement of Pakistan’s financial position is also supported by increased inflows from foreign portfolio investments and strategic currency management by the SBP. Moreover, the country is exploring additional avenues for raising funds, such as issuing a Panda bond in the Chinese market to garner an additional $300 million, aimed at further stabilizing foreign exchange reserves. As Pakistan navigates its financial commitments, the stability and performance of the Pakistani rupee, which has shown remarkable resilience and appreciation against the dollar, remain critical factors in attracting foreign investment and maintaining economic stability. The finance ministry, along with the SBP, continues to monitor and implement strategies to ensure the country remains on a path of sustainable financial health.
Energy Ministry seeks Rs48b to tackle CPEC dues
g
China has conditioned provision of $600m in new loans on Pakistan's commitment to settle energy dues PROFIT
News Desk
Abdulaziz Al-Saud. The leadership of both countries remains committed to advancing fraternal ties and fostering mutually rewarding economic and investment relations. Apart from financial support, Pakistan has been actively seeking Saudi investment across various sectors including agriculture, mining, minerals, and aviation. Islamabad has revealed that Riyadh has expressed interest in acquiring government stakes in the Reko Diq gold and copper mine, which holds immense potential for Pakistan’s economy. PM ARRIVES IN MAKKAH FOR UMRAH Earlier in the day, Prime Minister Shehbaz Sharif arrived in Makkah Mukarmah for offering Umrah. At the Makkah railway station, Saudi ambassador to Pakistan Nawaf Bin Saeed AlMalkiy and high level officials received the prime minister. The PM left Madina Munawarah for Makkah where he had arrived a day earlier, along with his cabinet members, PM Office Media Wing said in a press release.
PM constitutes body to review climate change governance, funds
Pakistan to repay $1b Eurobond to strengthen financial stability g
Rs 50.00 | Vol XIV No 280 I 36 Pages I Islamabad Edition
The Ministry of Energy has requested Rs48 billion from the national budget to address the overdue payments for the China-Pakistan Economic Corridor (CPEC) energy projects. Despite this request, the outstanding dues have escalated to Rs487 billion. This request is a segment of the Ministry’s total demand for Rs1.234 trillion in subsidies for the fiscal year 2024-25, with the allocation for CPEC energy projects constituting only 4% of the overall subsidies. According to sources within the finance sector, the Economic Coordination Committee of the Cabinet and the federal cabinet will decide the annual funding for the CPEC energy dues based on the Energy Ministry’s requisition. The Pakistan Energy Revolving Account (PERA), activated in December 2022, receives an annual funding of Rs48 billion for this purpose. Chinese officials have voiced concerns regarding the non-fulfillment of CPEC agreements, particularly highlighting the delay in energy payments. China has conditioned the provision of $600 million in new loans on Pakistan’s commitment to settle
the energy dues. The ongoing financial strategy, allocating Rs48 billion yearly with a monthly withdrawal limit of Rs4 billion, is in conflict with the 2015 Energy Framework Agreement, which necessitates adequate fund allocation to shield Chinese investors from the impacts of circular debt. As of February’s end, the power projects’ accumulated dues soared to Rs487 billion. The significant rise in CPEC-related circular debt was noted during the tenure of the interim government, which failed to make timely payments, exacerbating the financial strain. In the recent review discussions with the International Monetary Fund (IMF), Pakistan confirmed its decision not to increase the budget allocation for clearing the existing energy sector dues within the current fiscal year. To maintain the arrears at the current level, the government would need to allocate between Rs10 billion to Rs15 billion monthly from the budget. However, fiscal limitations hinder these payments. Chinese authorities are skeptical about the PERA serving as a substitute for the Revolving Fund agreed upon in the CPEC contracts, which required maintaining a balance equal to 21% of monthly invoiced amounts.
mate Expert, Ali Tauqir Sheikh Climate Expert, Ahsan Kamran Climate Finance Expert, Nadia Rehman, Member CC PC, Secretary MoCC&EC (Secretary of the Committee), Secretary Ministry of Commerce, Secretary MoPDSI and Secretary Ministry of EA and Additional Secretary (EF) Ministry of Finance. The Committee will suggest approach that involves mainstreaming climate considerations across all government organizations and operations, as well as integrating them into the development agenda and Sustainable Development Goals (SDGs).
CONTINUED ON PAGE 03
President Zardari pledges to enchance bilateral ties with Turkiye ISLAMABAD
staff RepoRt
In a diplomatic exchange underscoring the longstanding ties between Pakistan and Turkey, President Asif Ali Zardari and Turkish President Recep Tayyip Erdogan engaged in a constructive phone conversation today. The leaders deliberated on enhancing bilateral relations across multiple sectors, marking yet another step towards bolstering the bond between the two nations. During the call, President Zardari extended warm greetings to President Erdogan ahead of the forthcoming Eid-ul-Fitr, a significant occasion in the Muslim calendar marking the end of Ramadan.
CONTINUED ON PAGE 03