Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Wednesday reaffirmed the government’s commitment to implementing its reform agenda and meeting structural benchmarks to lend permanence to macroeconomic stability, promote inclusive, sustainable growth and end Pakistan’s reliance on external borrowing.

He made it clear that the only way this goal could be successfully achieved, was by changing the DNA of the economy by moving it away from its usual boom-and-bust cycles and leading it to a sustained export-led growth, encouraging investment and FDI flows into export-oriented sectors and getting access back to the international capital market.

He made this observation during a meeting with a high-level delegation from the Asian Development Bank that called on the Minister at Finance Division, according to press release issued by Finance Ministry.

The visiting delegation was led by Donald Bobiash, Executive Director of Asian Development Bank and Shigeo Shimizu, Executive Director Asian Development Bank while Yong Ye, Country Director Asian Development Bank and other senior officers from the ADB and Finance Division were also present.

Auragzeb shared with them a roundup of ongoing structural reforms and the resultant growth trajectory and improvement in key economic indicators. He particularly highlighted an efficient management of twin deficits backed by buoyant remittances and healthy exports, a steep fall in inflation from a 38 percent high of last year to a 44-month low of 6.9 percent in September last, and reduction in the policy rate by 450 bps with expectations of more cuts in upcoming months.

The Minister also mentioned the stability in exchange rate, growth in forex reserves to $10.7 billion after the signing of the IMF accord and the stock exchange index crossing 85,000 figure to indicate a growing business confidence and favourable investment climate leading to further institutional flows into the country. He credited Prime Minister Shehbaz Sharif with personally overseeing and spearheading the implementation of wide-ranging structural reforms in key sectors, including taxation, energy, SOEs, privatization, rightsizing of government and pension reforms.

He called the recent signing of a National Fiscal Pact between Federation and the provinces a milestone in achieving harmony in driving the pace of structural reforms and incentivizing the provinces to mobilise greater tax resources, rationalize their development expenditures and improve their governance to meet the development goals. The minister thanked ADB for its continued support to Pakistan’s development agenda and its assistance provided in key sectors. He said Pakistan looked forward to further deepen its partnership with the ADB through enhanced assistance and support for its reform programme.

On the occasion, Donald Bobiash, Executive Director of Asian Development Bank, Shigeo Shimizu, Executive Director Asian Development Bank and other ADB officials expressed their appreciation for the bold reforms undertaken by Pakistan for stabilizing its economy and achieving sustainable growth. They reaffirmed ADB’s support for ongoing reforms and strengthening the country’s fiscal framework. They also assured the bank’s support for Pakistan’s development goals and its efforts for inclusive growth, innovation, and climate action.—APP

Ijaz Kakakhel
Islamabad

Targeted solutions for power generation issues, based on case-by-case evaluations and audits of independent power producers (IPPs), along with strategic efforts to optimize the use of the country’s installed generation capacity and stimulate electricity demand through special economic zones (SEZs), can lead to more equitable and efficient outcomes for both producers and consumers.

To achieve targeted solutions, a more transparent and tailored approach is essential. A case-by-case evaluation of IPPs is crucial, as each operates under distinct financial and operational conditions. Similarly, conducting phase-wise, priority-based audits of individual IPPs would more effectively address contractual and operational challenges by focusing on their specific issues.

Moreover, efforts should prioritize increasing electricity demand, particularly by accelerating the development of SEZs, which offer a strategic opportunity to boost power consumption and improve sectoral efficiency.

This was discussed during a consultative meeting on “Unpacking the Issues in IPP Contracts: Insight from Experience and Emerging Scenarios,” held at the Institute of Policy Studies (IPS), Islamabad. The insights were shared by NaveedSiddique, a consultanting Engineer with diversified experience in various subsector of power sector of Pakistan. including Ministry, regulatory authority, vertically integrated utility, and IPPs, Khalid Rahman, chairman IPS, Mirza Hamid Hassan, former federal secretary, water and power, and AsadMahmood, a renewable energy expert.

In a decisive move to intensify the government’s ongoing anti-smuggling campaign, Prime Minister Muhammad Shehbaz Sharif directed all relevant government bodies, particularly the Federal Board of Revenue (FBR) and Pakistan Customs, to take stringent measures to combat smuggling across the country.

One of the key amendments reinforcing these efforts is the recent change to S.R.O.499(I)/2009 dated 13-06-2009, introduced via SRO 1619(I)/2024 dated 03-10-2024, which empowers authorities to confiscate vehicles and other conveyances used in transporting smuggled goods.

This amendment, announced earlier this month, is a reflection of the government’s firm resolve to eradicate smuggling, which has long plagued the nation’s economy, depriving it of critical revenue while encouraging the informal market.

Under the amendment, all conveyances involved in the transportation of smuggled goods are now subject to immediate confiscation without the option for redemption fine.

KARACHI – Bulls continue to rule the trade floor as Pakistan Stock Exchange (PSX) breached 86000 points level in intraday trading on Wednesday.

The KSE-100 index benchmark has climbed 477.14 points to reach 86,141 milestone with experts anticipating further gains.

The growing optimism, in the market due to the impending arrival of international guests for the Shanghai Cooperation Organization (SCO) Summit to be hosted by Pakistan, also became another major factor behind the situation at PSX.

A temporary easing of political tensions, combined with the economic stability following the IMF’s first tranche on September 30, allowed the Pakistan Stock Market to maintain upward momentum during the first half of the week. However, shares began to fall after a brief period of gains.

More to follow…