KARACHI: Prime Minister Imran Khan is working on another mini-budget, this time with an eye on increasing energy and power rates, ahead of Pakistan’s final round of negotiations with the International Monetary Fund (IMF), officials said on Thursday.
Finance Minister Asad Umar said on Wednesday that the government had assured the IMF that it will continue to reform its financial system by implementing policies across all departments.
Umar briefed the IMF officials through a video call from Islamabad about the prices of gas and electricity and the government’s efforts to limit power theft.
Earlier, while updating members of the Senate’s Standing Committee on finance and revenue about the negotiations with the IMF, Umar hinted at the possibility of introducing another mini-budget in the parliament next month reasoning that the “fiscal deficit at the current levels is not sustainable”.
He told committee members that while a proposal to increase taxes and tariffs exists, a final decision on the matter has not been taken yet.
If present, it will be the second mini-budget to be presented by the incumbent Pakistan Tehreek-e-Insaaf government after assuming office in August this year. The first was introduced in September.
The minister added that Pakistan will pay 3.18 percent interest on the $3-billion loan extended by Saudi Arabia, in addition to the $274 million worth of oil on deferred payments which the country is expected to receive from the Kingdom.
He said that Pakistan is expecting a commercial loan from China as well.
Without divulging any further details, Umar said that the mini-budget would be based on the recommendations forwarded by the Economic Advisory Council (EAC).
“Government may take measures to fix the problems which the country’s exports are facing, including tariff, duties, and rebate issues. Imports of raw materials for exportable goods may be duty free,” Dr. Abid Qaiyum Suleri, member of the EAC, told Arab News, adding that “there will be major positive change”.
“There is clarity on the policy makers’ side that Pakistan’s fundamental challenges, including tax revenue, direct taxes, public sector improvement, energy circular debt, rupee overvalue, and foreign exchange reserves must be corrected.”
“One thing may be problematic and I hope the finance ministry would be mindful. The energy prices should not be increased beyond certain level,” Dr. Suleri said, warning that “the energy inflation would be very dangerous.”
“The first mini-budget had cut development spending and increased tax rates. The second mini-budget should focus on revenue measures. The government should consider creating a digital record of all assets owned by Pakistanis and then force non-filers to become tax filers,” Dr. Mushtaq Khan, a senior economist, said.
However, some economists believe that apart from the conditions set by the IMF, the PTI government is working on its manifesto of increasing revenue collection as well.
“PTI has claimed to increase the revenue collection to Rs8 trillion in five years term...it could be a step toward that direction apart from the fund’s condition which the government is imposing,” Dr. Ayub Mehar, a Research Economist at the Asian Development Bank Institute, told Arab News.
Commenting on the government’s decision to avail the IMF program, Dr. Suleri said that “there is a state of uncertainty from the people’s perspective but from the government’s point of view, the program would impact the livelihood of people in a short span of time due to fast-paced implementation”.
Pakistan has devalued its currency six times since December 2017, even as it increased key interest rates and gas tariffs. It also increased electricity rates by an average of Rs 1.27 per unit on Wednesday as part of prior actions to avail the IMF program.
“The steps that have already been taken (rupee devalue and interest rate hike) are not the end. We expect more prior actions (on the rupee and interest rates) just before the start of the program, which is expected sometime in February 2019,” Dr. Mushtaq Khan said.
“Going to the IMF for the first time may be the compulsion of the incumbent government but if they go again for the program it would be their incompetence,” Dr. Mehar said.
Dr. Mushtaq Khan added that the government “appeared unprepared when it took power.”
“The economic direction was announced in mid-September, when the country was already facing a foreign exchange crisis. The IMF or no-IMF comments by the Finance Minister have not been helpful,” he said.
“The fact that six months into the fiscal year (FY)19, the central bank/finance ministry has not announced a balance of payment picture for the full year is unprecedented – this does not help instill confidence in the markets. I assume that the second mini-budget will be a revival strategy for the country, but announcing it in January 2019 when the year started in July 2018, is disappointing,” he added.
Pakistan raises power tariffs ahead of final talks with IMF
Pakistan raises power tariffs ahead of final talks with IMF
- Will pay 3.18% interest on $3bn loan extended by Saudi Arabia, Finance Minister says
- Further fiscal and monetary measures expected before start of bailout program, experts say
Pakistan to build its first indigenously designed and built frigate-sized warship — naval chief
- Frigates are designed for surface warfare, anti-submarine warfare and have air defense capabilities
- Pakistan has been actively working to bolster its naval capabilities by inducting advanced warships
ISLAMABAD: Pakistan Naval Chief Admiral Naveed Ashraf said this week that the country is building its first indigenously designed frigate-sized warship called “Jinnah Class Frigates” to address the challenges presented by the prevalent multi-threat maritime environment.
A frigate-sized warship is a multi-mission naval vessel, typically 100-150 meters in length, with a displacement of 2,000-4,000 tons. Frigates are designed for surface warfare, anti-submarine warfare, and have air defense capabilities. They are equipped with a mix of guns, missiles, torpedoes, and anti-submarine rockets.
Pakistan has been attempting to bolster its naval capabilities through the induction of advanced warships. Recently, it inducted PNS Babur and PNS Hunain, two state-of-the-art vessels, into its fleet. These warships are part of a broader effort to enhance the country’s maritime security and operational readiness.
In an interview with Naval News website on Monday, which covers naval defense and technology, Pakistan Navy chief Admiral Ashraf highlighted that the Pakistan was focusing on inducting modern platforms, force multipliers, and indigenization apart from ensuring a variety of options to reduce reliance on external sources.
“Based on experience gained during the construction of MILGEM Class Ships, the Pakistan Navy is planning to build JINNAH Class Frigates which will be our first ever indigenously designed and built frigate-sized warship,” he said.
The report said Pakistan inducted Type 054 A/P Frigates from China, OPVs Batch-1 and Batch-II from Romania, and MILGEM Class Corvette from Turkiye, adding that these will add to the navy’s existing defense capabilities.
PNS Babur, constructed in Turkiye and PNS Hunain, an offshore patrol vessel from Romania, are equipped with cutting-edge technology to address both surface and air threats.
“Pakistan Navy is in the process of inducting the remaining MILGEM class ships as two of these ships are being constructed indigenously in Pakistan (KS&EW),” the naval chief was quoted as saying.
“Our development strategy is based on ‘progressive capability enhancement’ to create a balanced, potent, and combat-ready force to deal with the evolving threats through the acquisition of force multipliers, and indigenous and innovative technical solutions.”
Zimbabwe win toss and elect to bat in 2nd ODI against Pakistan
- Pakistan suffered 80-run humiliating loss to Zimbabwe in first ODI on Sunday
- Tayyab Tahir and leg-spinner Abrar Ahmed debut for Pakistan in second ODI
BULAWAYO: Zimbabwe won the toss and elected to bat in the second one-day international against Pakistan on Tuesday.
Pakistan made two changes after Zimbabwe recorded a stunning 80-run win on DLS method in the rain-affected first match to lead the three-game series 1-0 on Monday.
Middle-order batter Tayyab Tahir and leg-spinner Abrar Ahmed were awarded ODI debuts in place of Haseebullah Khan and fast bowler Mohammad Hasnain.
Haseebullah got dropped after making 0 in his debut ODI while Hasnain made way for Abrar with the wicket expecting to slow bowlers.
Zimbabwe didn’t tinker with its winning combination after Pakistan struggled against both pace and spin in the first game.
Pakistan have rested its frontline white-ball players Shaheen Shah Afridi, Naseem Shah and Babar Azam as they tested bench strength ahead of next year’s Champions Trophy.
Bulawayo will host the third and final ODI on Thursday and will also host both teams in the three-match T20 series.
Belarus offers to share technology with Pakistan, import textiles in bid to enhance trade
- Belarus president is in Pakistan on three-day visit to discuss bilateral trade, investment
- Both sides discussed investment, tourism and defense cooperation, says Shehbaz Sharif
ISLAMABAD: Belarus President Aleksander Lukashenko on Tuesday offered to share technology with Pakistan and buy the country’s textile products, with the two states reaffirming their resolve to turn bilateral agreements into “practical steps.”
Lukashenko arrived in Islamabad on Monday evening, a day after a 68-member delegation of his country reached Pakistan to hold discussions on bilateral trade and investment. The Belarusian president is in Islamabad as Pakistan pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the International Monetary Fund (IMF).
Lukashenko arrived at the Prime Minister House on Tuesday morning where he was received by PM Shehbaz Sharif and accorded a guard of honor. He held one-on-one talks with Sharif before the two sides also held delegation-level talks in the Pakistani capital.
“As I already said to my dear friend, the prime minister, that in the modern world not just big countries possess high technologies, sometimes mid-range or smaller countries also do just like Belarus,” Lukashenko said during a joint news conference with Sharif.
“We have those technologies and I think Pakistan should develop relations with smaller countries which are ready to share their technologies and on the other hand, we would be very happy to buy from Pakistan what it has to offer to us, including textile and many other things,” he added.
Sharif said he was encouraged by Lukashenko’s “very inspiring” statements on putting agreements on trade and investment into action. He said both sides covered commerce, investment, tourism, defense cooperation and other important issues in the discussions.
“All these areas will be discussed today immediately after this press conference between the two sides,” Sharif said. “And then they will depart to meet again in two weeks’ time in Minsk where the two teams will meet again and finalize and convert all these discussions into practical steps, arrangements ready for agreements.”
Sharif said in February 2025, he and the Belarusian president will sign the agreements to ensure practical work on them begins.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.
Pakistan eyes enhanced trade and connectivity with Belarus amid investment push
- Belarus President Aleksandr Lukashenko is in Pakistan on three-day visit for investment, trade talks
- Islamabad is pushing for foreign investment from allies in a bid to shore up $350 billion economy
ISLAMABAD: Pakistan Privatization and Communications Minister Abdul Aleem Khan stressed launching direct flights to Belarus and enhancing trade with the eastern European country, state-run media reported this week, as its president arrived in Islamabad for a three-day trip to hold talks on bilateral trade and investment.
Belarus President Aleksandr Lukashenko arrived in Pakistan on Monday following the arrival of his 68-member delegation, as Islamabad pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the IMF.
Khan met Belarusian Transport Minister Alexei Lyakhnovich with senior communication in the presence of sector officials from both countries on Monday to discuss the importance of enhancing connectivity through roads and railways, the Associated Press of Pakistan said.
“Federal Minister for Communications, Privatization and Board of Investment Abdul Aleem Khan on Monday emphasized Pakistan’s commitment to enhancing connectivity through the launch of direct flights to Moscow and Belarus, alongside the development of trade corridors linking China, Afghanistan, Central Asia, and Belarus,” the APP reported.
The Belarusian transport minister described cross-border trade as “pivotal” for strengthening the economy and promoting bilateral relations, adding it was a significant step toward collaboration between both countries.
The pending construction of different motorways and highways also came under discussion with both sides agreeing to take steps in this regard, APP said.
Emphasizing the communication sector’s importance, Khan said Pakistan wanted a trade corridor to Central Asia along the Karakoram Highway and China-Pakistan Economic Corridor lines to promote business activities.
“We want to further enhance G2G and B2B activities with Belarus in the future for which both the countries will make serious efforts,” Khan said.
“Like Azerbaijan and Turkiye, we also want to make Belarus an investment partner with our country as Pakistan is rich in natural resources and blessings of Allah Almighty while positive results can be achieved with our skilled workforce.”
On Tuesday, Lukashenko arrived at the Prime Minister House where he was welcomed by PM Shehbaz Sharif and presented with a guard of honor.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
The First Pakistan-Belarus Joint Economic Commission (JEC) was held in 2015 in which the two countries agreed to initiate joint ventures in the textile, pharmaceutical and lighting solution industries and share technological expertise.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.
After humiliating loss, Pakistan face Zimbabwe in second ODI today
- Zimbabwe stunned Pakistan by 80-run win on Duckworth-Lewis Stern (DLS) method in first ODI
- Skipper Mohammad Rizwan’s side will play three ODIs and three T20Is against Zimbabwe
ISLAMABAD: Pakistan will take on hosts Zimbabwe in the second ODI today, Tuesday, at the Queens Sports Club in Bulawayo, after reeling from an embarrassing defeat in the first match last week.
All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method on Sunday against a new-look Pakistan team.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.
“The second One-Day International of three match series between Pakistan and Zimbabwe will be played in Bulawayo on Tuesday,” state broadcaster Radio Pakistan reported.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
In the 15-member squad Arafat Minhas, Babar Azam, Naseem Shah and Shaheen Shah Afridi have been replaced with the uncapped duo of Abrar Ahmed and Ahmed Daniyal along with pacer Shahnawaz Dahani and Tayyab Tahir.
The match is scheduled to begin at 12:30 p.m. Pakistan Standard Time.
