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‘BACKBONE OF ECONOMY’: PM ORDERS IMMEDIATE CONSTITUTION OF SMEDA BOARD Saturday, 24 August, 2024 I | 18 Safar, 1446
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DIRECTS BOARDS OF ALL INSTITUTIONS VITAL FOR COUNTRY’S ECONOMY BE MADE FUNCTIONAL WITHOUT DELAY
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DIRECTS ALL POSSIBLE MEASURES TO INTEGRATE PAKISTANI INDUSTRIES INTO GLOBAL SUPPLY CHAIN
PM Shehbaz offers aid to Bangladesh amid severe floods ISLAMABAD
STAFF REPORT
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ISLAMABAD STAFF REPORT
RIME Minister Muhammad Shehbaz Sharif on Friday emphasized that small and medium enterprises (SMEs) act as the backbone of the country’s economy and expressed dismay over the non-functioning of the SMEDA Board, directing for its immediate constitution. Chaired a meeting on matters related to the Small and Medium Enterprises Development Authority (SMEDA), the premier emphasized the crucial role of SMEs in Pakistan’s economy, saying that small and medium enterprises (SMEs) act as the backbone of the country’s economy.
PM Shehbaz directed that the SMEDA Board should be immediately constituted, stressing that boards of all institutions vital for the country’s economy, should be established without delay. He also called for promoting subcontracting in industries and taking all possible measures to integrate Pakistani industries into the global supply chain. The prime minister also ordered to take necessary steps to ensure the appointment of the SMEDA’s Chief Executive Officer. Additionally, he also directed to include the people from the private sector in the steering committee. During the briefing, the prime minister was informed that for the first time, SMEDA Development Fund had been
Second mpox case detected in Peshawar: Health Ministry ISLAMABAD
NEWS DESK
Pakistan has reported its second case of mpox (formerly known as monkeypox) at Peshawar airport, as confirmed by the national health coordinator on Friday. This comes shortly after the World Health Organisation (WHO) declared the recent outbreak of the Clade 1b variant of the virus a public health emergency of international concern. The Clade 1b variant has raised global alarm due to its rapid transmission through close contact. Despite the concern, the WHO has emphasized that the mpox outbreak is not on the scale of Covid-19, as much is already known about the virus and how to control it. Dr. Malik Mukhtar Ahmad, the Prime Minister’s coordinator for health, confirmed the latest case in Pakistan, stating that it originated from a Gulf country. He added that the patient was transferred to a hospital after being identified by the health desk at Peshawar airport. Dr. Mukhtar did not specify whether the strain of the virus in this case had been identified. Earlier in the week, the health ministry clarified that the first mpox case in Pakistan was of the Clade 2 variety, with no cases of the Clade 1b strain reported in the country. Dr. Mukhtar also assured that the health ministry is maintaining rigorous monitoring through effective screening and surveillance systems at all airports.
Prime Minister Mohammad Shehbaz Sharif, expressing profound sorrow and grief over recent devastating floods, on Friday offered assistance to Bangladesh to help cope with the situation. In a letter to Chief Advisor of Bangladesh, Dr Muhammad Yunus, Prime Minister Muhammad Shehbaz Sharif expressed Pakistan’s solidarity with Bangladesh during this challenging time, stating that the Pakistani nation stood with those who have lost loved ones, homes, and livelihoods in the floods, said a press release issued by the PM’s Office. He lauded the people of Bangladesh for their renowned bravery and courage, particularly in the face of adversity.
launched for which an amount of Rs 30 billion had been allocated for 6 years. Out of the total, Rs 5 billion have already been provided for the year 2024-25, the meeting was told. It was informed in the meeting that,
The prime minister expressed confidence that Bangladesh’s leadership will guide the country through this challenging period. He also affirmed Pakistan’s readiness to offer any assistance, needed by Bangladesh. Flash floods wrought havoc in Bangladesh with the death toll rising to 13 and millions more caught in the deluge. Much of Bangladesh is made up of deltas where Himalayan rivers, the Ganges and the Brahmaputra, wind towards the sea after coursing through India. All major tributaries of the two transnational rivers were overflowing, according to local media reports. The Bangladesh’s disaster management ministry said in a bulletin that its latest toll of 13 deaths included fatalities in cities along the country’s southeastern coast.
there were currently 5.2 million small and medium enterprises in Pakistan, which account for 40 percent of the country’s GDP whereas 31% of country’s exports depend on the SMEs.
Pakistan seeks $4bn loans from two Middle Eastern banks as IMF approval delayed g
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FINANCE MINISTRY ENGAGES DUBAI ISLAMIC BANK AND MASHREQ BANK TO SECURE FUNDING PROFIT
STAFF REPORT
Pakistan is negotiating with Middle Eastern banks to secure approximately $4 billion in loans necessary to meet its external financial requirements for FY 2024-25. This effort is part of a broader $7 billion Extended Fund Facility (EFF) awaiting approval from the International Monetary Fund (IMF). According to media reports, Finance Minister Muhammad Aurangzeb, along with Minister of State for Finance, Revenue and Power Ali Pervaiz Malik, Finance Secretary Imdadullah Bosal, and Additional Secretary Sara Najeeb, held a virtual meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank. The discussion focused on the economic out-
Govt plans nationwide closure of utility stores amid subsidy cuts g
Rs 20.00 | Vol XV No 55 I 8 Pages I Islamabad Edition
Millions of low-income families to lose access to discounted essential goods
PROFIT: The federal government is planning to close utility stores across the country, a move that will seriously impact millions of low-income families who have depended on these stores for discounted essential goods. According to a news report, this decision follows the government’s halt of a Rs50 billion subsidy, which had provided crucial relief to approximately 26 million households. In a recent Senate Standing Committee meeting on Industry and Production, the Secretary of Industry confirmed that the government was considering the closure of utility stores as part of a right-sizing initiative. The Secretary of Industry added that an action plan for the stores’ closure is being developed, with a package for affected employees under consideration. Due to financial constraints, the plan involves redirecting funds initially allocated for the utility stores subsidy to address the energy crisis, specifically to provide relief on electricity bills. The subsidy, which had offered up to 25% discounts on essential items like flour, ghee, rice, sugar, and pulses, has already been discontinued. These goods will now be sold at regular market prices, removing the savings that low-income families once relied on. STAFF REPORT
look and potential investment opportunities in Pakistan. A similar meeting was conducted on Wednesday with Mashreq Bank President and GCEO Ahmed Abdelaal. Both meetings were organized to discuss economic cooperation and explore avenues for investment in Pakistan. The finance minister invited Dubai Islamic Bank to enhance its investments in Pakistan and reaffirmed the government’s commitment to maintaining a stable macroeconomic environment and implementing all necessary measures to facilitate foreign investment, according to the finance ministry. Following these initial meetings, finance ministry officials are scheduled to meet with foreign bankers next week to discuss loan
amounts and interest rates. Aurangzeb had earlier disclosed that the government received a commercial loan offer from a European bank but was awaiting IMF board approval to secure lower interest rates. The European bank had offered double-digit interest rates, which were considered politically and economically unfeasible. However, the IMF indefinitely postponed the approval of the $7 billion EFF this week after Pakistan failed to secure an additional $2 billion in financing and the rollover of $12 billion in cash deposits from Saudi Arabia, China, and the UAE. The finance minister now hopes that the IMF may approve the new EFF in September.
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‘Not held discussions with govt’: ‘fearing unrest’ PTI decided to call off rally: Imran RAWALPINDI
STAFF REPORT
Pakistan Tehreek-e-Insaf (PTI) Founder and former Prime Minister Imran Khan on Friday disclosed that while in jail, he was informed that going ahead with scheduled rally in Islamabad could lead to national unrest, which prompted him to call of the event, clarifying that he had not held discussions with the government regarding the Islamabad rally. Yesterday, the PTI announced the postponement of its planned rally in Islamabad’s Tarnol Chowk until September 8. In an informal conversation with journalists at Adiala Jail on Friday, the former PM explained that the rally, initially planned around the Khatm-e-Nubuwwat issue, was postponed after he was advised that it could escalate tensions. He stated, “I was told that the Khatm-e-Nubuwwat is a sensitive matter, with religious groups already protesting in Islamabad”. He explained that “fearing unrest,” the party decided to call off the rally. “If we had proceeded with the event, there was a risk of a repeat of the May 9 events, and the previous judicial inquiry into 9 May hasn’t been conducted yet.” Imran issued a stern warning, stating, “If you grant permission and then attempt to stop the rally, the government will be fully responsible”. “This time, it’s a matter of the judiciary’s credibility—whether the court grants us permission or the administration cancels it”. Imran stated that he had directed the party not to tolerate any obstacles on 8 September. He mentioned that the Islamabad rally had been postponed for the last time. He added that the party leadership had been instructed to meet before September 8 to decide when to protest if the Supreme Court’s decision was not implemented. The PTI founder also warned that if anyone tried to stop them, “this time, they would not back down”. When asked about the trial of General (Retd) Faiz, and the response from the other side questioning who Imran Khan is to demand an open trial, Khan responded, “I am the head of the country’s largest party, and I’m calling for an open trial. You are making a grave accusation that Faiz and I conspired on 9 May”. “I started my party from scratch and have struggled within the constitution for 28 years. If Faiz is involved in May 9 events, then conduct an open trial. “This is not a military or secret issue.” Imran Khan demanded an open trial of former InterServices Intelligence (ISI) chief Lt-Gen (retd) Faiz Hameed who was taken into custody by the military on charges of abuse of power and violating the Army Act. “I demand that the army chief conduct the trial of General Faiz in an open court,” the former prime minister said during an informal interaction with journalists in Rawalpindi’s Adiala Jail where he has been incarcerated for over a year in different cases ranging from corruption to terrorism.
Punjab announces Rs10m bounties for Katcha bandits as main suspect killed LAHORE
SALEEM JADOON
A day after the martyrdom of 12 policemen by katcha bandits, the Punjab government on Friday announced Rs10 million in bounties on the heads of the most dangerous katcha dacoits to eliminate the persistent threat posed by these criminals. According to a government notification issued on Friday, high-value targets are subject to a Rs10 million bounty, while Rs5 million and Rs2.5 million rewards are being offered for other dangerous bandits in lower categories. The decision is part of a broader strategy to restore peace in the region, following decades of costly and largely unsuccessful operations against the dacoits. On the other hand, the Punjab government replaced the top police command in Rahim Yar
Khan following the yesterday’s ambush on police vehicles with rockets that claimed the lives of 12 policemen and left several others injured. According to a notification issued from the Central Police Office, DPO Imran Ahmed Malik, SP Muhammad Javed Akhtar Jatoi, and DSP Kaleem Ahmad have been ordered to report to the CPO. Similarly, former Punjab CTD SSP Rizwan Omer Gondal has been appointed the new DPO of Rahim Yar Khan. Meanwhile, funeral for the police officials martyred in yesterday’s attack in Machhka area of Kacha, was offered, which was attended by high-ranking officials, including Federal Interior Minister Mohsin Naqvi, Punjab Home Secretary Noorul Amin Mengal, and Punjab Inspector General (IG) of Police Dr Usman Anwar. ‘Govt reaffirms commitment to eliminate
menace of the outlaws’ Addressing those gathered, Home Secretary Noorul Amin Mengal reaffirmed the government's commitment to eliminate the menace of the outlaws from the katcha area. "The sacrifices of our martyrs will not go in vain," Mengal stated. "The operation against the Katcha bandits will continue until the area is completely rid of these criminals." Mengal assured the public that the government, in collaboration with the police and the Counter-Terrorism Department (CTD), is determined to restore the rule of law in the region. Following the funeral, Mengal visited the site of the attack and held a meeting to discuss the future course of action. He also visited Sheikh Zayed Hospital in Rahim Yar Khan, where he met with injured police officers, offering support and ensuring they receive the best possible care.
Cost of borrowing from IMF now exceeds 5%, Senate panel told g
INTEREST RATES ON LOANS FROM GLOBAL LENDERS HAVE RISEN DUE TO PAKISTAN’S INCREASING BORROWING NEEDS AND LIMITED CAPACITY TO SUSTAIN SUCH DEBTS, STANDING COMMITTEE ON ECONOMIC AFFAIRS BRIEFED PROFIT
STAFF REPORT
Pakistan borrowed from the International Monetary Fund (IMF) at a high interest rate of 5.09% in 2023 under the Stand-By Arrangement (SBA). This was informed by representatives of the Ministry of Finance and the State Bank of Pakistan (SBP) to the Senate Standing Committee on Economic Affairs while briefing on details on Pakistan’s financial
engagements with the IMF since 1958. The SBP representative explained that the recent IMF loan carried an average interest rate of 5.1%, making it an expensive option. He noted that future IMF loans are expected to have similar rates unless global interest rates decline. The IMF’s interest rate is determined by the Special Drawing Rights (SDR) basket price, plus a 1% base rate, with additional surcharges based on the loan volume and duration. The SBP officials further clarified
that if a country borrows more than 187.5% of its IMF quota, a 2% surcharge applies, along with an additional 1% surcharge for borrowing periods exceeding three years. Historically, lending from the World Bank, the Asian Development Bank, and the IMF was considered affordable. However, due to Pakistan’s increasing borrowing needs and limited capacity to sustain such debt, interest rates from these institutions have also risen. The finance ministry shared
data indicating that Pakistan’s interest costs on IMF loans have steadily increased since 2008. In that year, Pakistan borrowed at an interest rate of 1.6%, which rose to 2.4% by 2013. The 2019 IMF program was secured at an average interest rate of 3.41%. Maryum Kayani, Joint Secretary at the Ministry of Finance responsible for IMF affairs, informed the committee that since 1958, Pakistan has entered into 24 IMF programs and four special one-time facilities. Out of these 28 agreements, loans
worth 28.3 billion SDRs (approximately $40.5 billion) were signed, with Pakistan receiving 21.3 billion SDRs (about $28.6 billion), while the remaining amounts were undisbursed. Contrary to the belief that Pakistan has only completed two of its 24 IMF programs, the finance ministry clarified that the country has actually completed nine programs, including those from 1965-66, 1968-69, 1973-74, 1974-75, 1977-78, 1988-90, 200001, 2013-16, and 2023-24.