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Finance Minister PM VOWS ABOLITION OF MINISTRIES, removed as Ecnec DEPARTMENTS BECAME ‘WHITE ELEPHANT’ chairman Sunday, 16 June, 2024 I |9 Zil-Hajj, 1445
GIVES CREDIT TO PDM’S TOP LEADERS, INCLUDING JUI-F CHIEF FOR SAVING COUNTRY FROM DEFAULT
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ISLAMABAD
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SAYS INTEREST RATE SLASHED TO 20.5% FROM PREVIOUS 22%, POL PRICES CUT AS A ‘RELIEF’ TO INFLATION-HIT MASSES
STAFF REPORT
RIME Minister Shehbaz Sharif on Saturday vowed to abolish all institutions, ministries and departments that have become a burden on the exchequer, saying that this move alone will save tax payers’ billions of rupees and put the country on the path of prosperity. “The abolition of all ministries and department which, instead of serving [nation], have become a burden on the masses is indispensable,” the premier stated while addressing the nation on Saturday. “When we came to power, the economic conditions at that time were evident to everyone, and we saved the country from default,” the premier said. The PM gave credit to the last Pakistan Democratic Movement (PDM) alliance and the top leaders of Pakistan
People’s Party (PPP) including President Asif Ali Zardari, Bilawal Bhutto Zardari, and JUI-F Chief Maulana Fazlur Rehman for pulling the country out of difficult economic situation.
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Appreciating his government’s prudent economic policies, PM Shehbaz said the country was now moving on a path to progress after coming out of economic difficulties.
“However, this way is not only difficult and long but also requires sacrifice from higher-ups in the government and the elite. The entire nation’s eyes are set on the government to see how it steers Pakistan out of the economic crisis and brings about a revolution of prosperity in the country,” he added. PM Shehbaz said that since he retook the reins of the country with the help of people’s support in form of votes and trust, inflation had dropped to 12% from 38% as a result of the government’s policies. Similarly, he said, that the interest rate on loans had been slashed to 20.5% from previous 22%. “This would promote investment and the country would walk down the path of prosperity at a greater pace,” PM Shehbaz said. PM Shehbaz then referred to the latest petrol and diesel price cuts as a “relief” to the inflation-hit masses.
Budget approval to pave way for IMF program, expected to be major market catalyst: report g
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POST-BUDGET MARKET GAINS A SENSE OF CERTAINTY, PARTICULARLY IN SECTORS BENEFITING FROM BUDGETARY MEASURES, SAYS AKD RESEARCH PROFIT
NEWS DESK
The approval of the budget will pave the way for the upcoming IMF program, which will likely become a significant market catalyst going forward, according to a note by AKD Research. The brokerage firm said in its note that the post-budget market has gained a sense of
certainty, particularly in sectors benefiting from budgetary measures. With the start of monetary easing, optimism is expected to rise, especially in cyclical sectors. The Pakistan Stock Exchange (PSX) experienced a turbulent start to the week, with the KSE-100 index dropping to 72,589 points amid rumors of potential increases in the Capital Gains Tax (CGT). However, the market swiftly rebounded after the an-
nouncement of the Federal Budget 2024-25, which introduced less severe taxation measures than anticipated. On Thursday, the KSE-100 index surged by 3,410 points, marking the largest single-day gain, and closed the week at an all-time high of 76,706 points on Friday, with a weekly gain of 2,952 points or 4%. This recovery reflects investor confidence despite initial pre-budget jitters.
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PM SHEHBAZ TAKES OVER KEY ECONOMIC COMMITTEE PROFIT
MONITORING DESK
Prime Minister Shehbaz Sharif has removed Finance Minister Muhammad Aurangzeb from the chairmanship of the Executive Committee of the National Economic Council (Ecnec), taking over the leadership of the crucial economic decision-making body himself. According to a news report, this is the second time Aurangzeb has been removed from chairing a major economic body. He was previously replaced by Dar as chairman of the Cabinet Committee on Privatisation. The Prime Minister will now head Ecnec, with Deputy Prime Minister and Foreign Minister Ishaq Dar included as a member. Ecnec has a total of eight members, with four from the centre and one each from the four provinces. To accommodate the new members, the Minister for Communication and the Minister for Commerce have been excluded from the committee. The Cabinet Division has notified the new composition of Ecnec, which is responsible for decisions on economic and development plans. The committee will now comprise Prime Minister Sharif as chairman, with members including Ishaq Dar, Finance Minister Muhammad Aurangzeb, and Planning Minister Ahsan Iqbal. Although the finance minister will remain a member of Ecnec, he will not have the final say in budgetary decisions. As per the news report, the prime minister had also wanted Dar to join the economic team briefing military authorities on the budget and the IMF program, but Dar did not attend. The Cabinet Division has also notified the four provincial members of Ecnec: Marriyum Aurangzeb from Punjab, Jam Khan Shoro from Sindh, Adviser to Chief Minister Muzammil Aslam from KhyberPakhtunkhwa, and Finance Minister Shoaib Nosherwani from Balochistan. Ecnec is tasked with approving mega development projects worth Rs10 billion or more. In its first meeting, the committee is expected to consider several significant projects, including the $6.7 billion Mainline-I railway project and the $2 billion Karakoram Highway project.