In partnership with
Profit
PM SHEHBAZ ASSURES EASE OF DOING BUSINESS, FACILITATION TO BUSINESSMEN, INVESTORS Tuesday, 28 January, 2025 I 27 Rajabul Murajjab, 1446
P
g
PM INAUGURATES SIX-STAR MOVENPICK HOTEL IN FEDERAL CAPITAL
g
HIGHLIGHTS GOVERNMENT’S EFFORTS TO STABILIZE THE ECONOMY
to high power tariffs, the Prime Minister assured participants that the government
was working tirelessly to bring substantial reductions in energy costs in the
coming months. “A competitive industrial sector is essential for economic growth, and we are committed to easing the cost of doing business,” he said. PM Shehbaz reaffirmed the government’s stance on downsizing and rightsizing public entities to reduce government expenses. Announcing a new initiative for the privatization of Pakistan International Airlines (PIA), he invited Pakistani investors to participate in a transparent bidding process. “Just as banks were successfully privatized during the 1990s under Prime Minister Nawaz Sharif and are now thriving, PIA too will be transformed into a world-class airline, just as it was in the 1960s,” he stated.
PROFIT
government plans to secure Rs 2 per unit relief through revised IPP agreements, Rs 3 per unit from the removal of federal and provincial taxes, and additional savings by lowering the Return on Equity (RoE) for government-owned power projects. Currently, taxes and surcharges account for approximately Rs 9 per unit on electricity bills, contributing to a total tax burden of Rs 964 billion annually. The Finance Division, however, raised concerns that removing these taxes could affect fiscal targets outlined in the Extended
Fund Facility (EFF) agreement with the IMF. Of the total tax burden, Rs 391 billion is attributed to federal taxes, while Rs 563 billion goes to provinces. Sales tax alone contributes Rs 708 billion, with income tax accounting for Rs 98 billion. Officials estimate that eliminating taxes could reduce electricity bills by up to 40%, offering substantial financial relief to both households and businesses. The Prime Minister expressed optimism that the plan would be implemented smoothly with IMF coordination.
ISLAMABAD
STAFF REPORT
RIME Minister Shehbaz Sharif on Monday assured extensive efforts of the incumbent government to ensure ease of doing business and trade facilitation to businessmen for reviving economic growth. The prime minister, addressing the inauguration of six-star Movenpick Hotel in the federal capital, expressed optimism about the country’s economic revival and reiterated the government’s commitment to fostering progress across various sectors. “It is a proud moment for Pakistan that a state-of-the-art international hotel has been launched. I commend the Centaurus Group for their nation-building efforts and thank the Movenpick management for bringing world-class hospitality to our country,” said the Prime Minister. He highlighted the government’s efforts to stabilize the economy, noting that inflation has reduced below five per cent, and the banking policy rate was under 13 per cent. He revealed that further reductions are expected following the State Bank of Pakistan’s (SBP) meeting. He emphasized the growth in exports, particularly in the IT sector, and outlined the government’s vision for economic development in agriculture, industry, IT, mining, and minerals. Addressing the challenges faced by the industrial and agricultural sectors due
Rs 50.00 | Vol XV No 203 I 40 Pages I Lahore Edition
PM directs Power Division to reduce electricity tariffs by Rs 7 per unit MONITORING DESK
Prime Minister Shehbaz Sharif has instructed the Power Division to reduce electricity tariffs by Rs 7 per unit for all consumer categories, including industrial users, following consultations with the International Monetary Fund (IMF). The decision comes as an IMF team is scheduled to visit Islamabad next month. BR reported, citing sources, that as part of the tariff reduction strategy, the
SBP cuts key policy rate by 100bps to 12% g
DECISION MARKS SIXTH RATE CUT SINCE JUNE 2024, BRINGING POLICY RATE DOWN BY A CUMULATIVE 1,000 BASIS POINTS FROM 22% PROFIT REPORT
The State Bank of Pakistan (SBP) announced on Monday that it had reduced the key policy rate by 100 basis points to 12 percent, effective January 28, 2025. This marks the sixth rate cut since June 2024, bringing the policy rate down by a cumulative 1,000 basis points from 22 percent. In a press conference, SBP Governor Jameel Ahmed explained the decision taken by the Monetary Policy Committee (MPC) earlier in the day. He said the reduction was made with the inflation outlook in mind and noted several positive trends in the economy. “The current inflation numbers are encouraging, and we expect further declines in January,” the governor said. However, he cautioned that core inflation remains high. He also highlighted a positive trend
in remittances and foreign exchange reserves, saying, “We maintain our outlook to achieve $13 billion in reserves by June.” Ahmed noted an improvement in exports and remittances, which had kept the current account in a positive position. “The trend in remittances is good, and so are export numbers, which is important for maintaining the current account surplus,” he stated. What does it mean for the economy? A lower borrowing costs can stimulate investment and consumption, driving economic recovery and supporting high-leverage and consumerfocused industries. For the common man, such decisions have a ripple effect on everyday life. A reduction in interest rates, as seen with a cumulative 1000 basis point cut this fiscal year, offers relief for borrowers. Lower borrowing costs make it eas-
Interior Minister meets US Congressman to enhance Pak-US relations HOUSTON
STAFF REPORT
Pakistan’s Interior Minister Mohsin Naqvi on Monday met with US Congressman Alexander Green in Houston to discuss ways to enhance Pakistan-US relations and address key regional issues. The two leaders focused on a wide range of topics, including Pakistan’s security concerns and the future of bilateral ties between the two nations. During the meeting, Naqvi briefed Congressman Green on the recent surge in terrorist infiltration from Afghanistan into Pakistan, stressing the importance of cooperation between both countries to combat these challenges. The Interior Minister emphasized that Pakistan remains committed to addressing the security concerns arising from cross-border terrorism, which continues to destabilize the region. Naqvi also took the opportunity to express his appreciation for Congressman Green’s consistent support for Pakistan’s people, particularly in the aftermath of recent natural disasters. Green had been instrumental in rallying support for the victims of the devastating floods and earthquakes that had ravaged parts of Pakistan. Naqvi thanked Green for his humanitarian efforts and for championing Pakistan’s cause. In addition to security matters, the conversation also touched upon the Palestinian issue, with Naqvi praising Green for his principled stance. The US Congressman has been vocal in advocating for Palestinian rights, and Naqvi commended his position on the issue. Looking ahead, both Naqvi and Green expressed optimism for further strengthening ties between Pakistan and the United States. Naqvi noted that the relationship between the two countries has already shown signs of deepening and expanding, and he assured Green that cooperation would continue to grow in the coming months.
ier for individuals to finance homes, vehicles, or education while enabling businesses to expand. However, for savers, the returns on deposits may decline, prompting shifts toward alternative investments, seeing a rise in economic activity. This, in fact, was one of the main reasons for the increase in PSX investing in the last couple of months. In its analyst briefing, the SBP also highlighted that external debt repayment pressures will ease in the second half of FY25. With $6.4 billion already repaid and net repayments reduced to $3.6 billion, there’s less strain on foreign exchange reserves. Expected inflows from commercial banks and bilateral arrangements are projected to offset these outflows, ensuring stability in the country’s foreign exchange reserves. This stability is crucial for import-dependent sectors and impacts the prices of fuel, electronics, and other imported goods that affect
household budgets. Sectoral impacts of monetary policy cuts are particularly pronounced. High-leverage industries like textiles, steel, and cement stand to gain from lower financing costs, potentially boosting economic activity and employment. Consumer-focused industries, such as autos, may benefit from improved consumer financing options, translating to greater accessibility for middle-class buyers. Meanwhile central bank profits may dip due to falling interest rates, better yields on foreign exchange portfolios could cushion some of the impact. Ultimately, cautious monetary policy aims to strike a balance between economic growth, inflation control, and financial stability, all of which directly affect the quality of life for citizens.
CONTINUED ON PAGE 03
IN TODAY’S ISSUE
ATTENTION Some readers have complained that they are not getting the magazine with their newspaper copy. Please call or WhatsApp us at the following number to register a complaint. Contact: 0307-7338168
Irfan Siddiqui criticizes opposition’s inconsistency in PTI-govt talks
irfan.farooq@pakistantoday.com.pk
ISLAMABAD
STAFF REPORT
Irfan Siddiqui, spokesperson for the government’s negotiation committee, criticized the opposition on Monday for what he called inconsistent and contradictory behavior in the ongoing talks between the government and PTI representatives. Speaking to the media on Monday, Siddiqui accused the opposition of violating the terms of negotiations and failing to honor commitments. Siddiqui revealed that the opposition had been given a written seven-day deadline to finalize their stance and join the discussions. However, with the deadline nearly expired, their positions remain unclear. “Different individuals bring different news,” Siddiqui remarked, referring to conflicting messages from opposition representatives. He elaborated that while the opposition initially appeared to agree on certain terms, they had since backtracked. “At times they say they won’t form a commission, then they say they will—but only under specific conditions. One day we hear about terms of reference (TORs), and the next we hear excuses about raids at someone’s house,” he said. Siddiqui also accused the opposition of lacking the expertise needed for meaningful negotiations. “Their skills lie elsewhere, not in dialogue,” he commented.
Al-Qadir Trust case: Imran Khan, Bushra Bibi challenge their conviction in IHC ISLAMABAD
STAFF REPORT
Former prime minister and PTI founder Imran Khan and his wife Bushra Bibi on Monday filed appeals in the Islamabad High Court (IHC) against their conviction in the 190 million Pound case (Al-Qadir Trust case). In their appeals, Imran and Bushra said that the National Accountability Bureau (NAB) misused its powers, and the trial court handed them prison terms in a rush, on the basis of an incomplete investigation. They said the fact that neither the text of the agreement signed with the UK’s National Crime Agency (NCA) was obtained nor the Agency officials were asked to cooperate with the investigators proved their point that the probe was incomplete. “The prosecution also failed to present proof against both of us,” Imran and Bushra said.