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Tag: IMF

  • ‘Pakistan is still under influence of the US’: Moeed Yusuf

    ‘Pakistan is still under influence of the US’: Moeed Yusuf

    National Security Adviser (NSA) Dr Moeed Yusuf has made a statement that Pakistan’s foreign policy is still not free from the influence of the United States (US).

    In Geo News programme “Jirga”, the advisor said, “It [Pakistan] is still not [free from US influence] and I doubt that there is any country which is free from it.” He added that Pakistan does not have financial and economic independence as it does not have enough assets to meet the requirements of the increase in population.

    “When we cannot fulfill the demands, we seek foreign loans. When you procure loans, your economic sovereignty is compromised,” the national security adviser said.

    Moreover, he said that this affects a country’s foreign policy and when foreign policy is affected, you cannot run the affairs of the country properly.

    Responding to a query about Pakistan-India relations, he said that Islamabad wants to improve ties with New Delhi, but had to halt diplomatic contacts due to India’s on-seriousness and extremist attitude.

  • America forced IMF to impose strict conditions on Pakistan: Shaukat Tarin

    America forced IMF to impose strict conditions on Pakistan: Shaukat Tarin

    Federal Minister for Finance Shaukat Tarin termed the geo-political situation of the region as a reason for the International Monetary Fund’s (IMF) to impose strict conditions on Pakistan.

    The finance minister spoke about a number of issues, including the Supplementary Finance Bill 2021, inflation, State Bank Amendment Bill, prior actions demanded by IMF, and other core issues related to finance on Geo News‘ programme ‘Naya Pakistan’.

    The minister, terming the geo-political situation of the region as a reason for the IMF being forceful, said that the talks with the lender aiming to restore the United States (US) $6 billion Extended Fund Facility (EFF) were not a piece of cake after the US pullout of Afghanistan.

    Tarin admitted that America was behind IMF to impose strict conditions on Pakistan.

    The finance minister said that the petroleum levy in fuel prices has been increased as per the IMF’s demand.

    “We had cut down the sales tax on petroleum products to zero but were compelled to apply the petroleum levy due to IMF’s strict behaviour,” said Tarin, adding that the IMF had lent the country some money back in March 2021 on account of an increase in the petroleum levy.

  • Federal government to present mini-budget of Rs350 billion today

    The federal government will present the mini-budget worth Rs350 billion today.

    Prime Minister (PM) Imran Khan summoned a meeting of the federal cabinet that will approve the mini-budget at noon today. The federal cabinet, with PM Khan in the chair, will give a go-ahead to the Finance (Supplementary) Bill 2021.

    The Finance Amendment Bill 2021 will directly be presented in the National Assembly (NA) as part of the government’s effort to get the IMF package worth $6 billion.

    Finance Minister Shaukat Tarin will introduce the bill in the house to amend certain laws relating to taxes and duties.

    The Opposition has already vowed to block the passage of the bill during the NA session. The opposition has claimed that the bill will further increase inflation and add to people’s misery.

  • ‘Stationery, makeup, mobiles’, mega price hikes set through mini-budget

    Through the mini-budget, the government plans to roll back tax exemptions worth Rs350 billion which will result in several items getting expensive, reports Samaa.

    The budget and the State Bank of Pakistan (SBP) Autonomy Bill are set to be tabled on Thursday in Parliament. According to officials, these changes are being done at the demands of the International Monetary Fund (IMF).

    Mobile phones, stationery items, packaged foods and makeup items are likely to get expensive as tax exemptions would be withdrawn after almost two months of its implementation.

    The tax on the import of luxury items will also be raised. However, prices of several items are likely to remain unchanged i.e. food items and medicine. A temporary or permanent ban or hiking sales tax from 12.5 percent to 17 percent on imported vehicles is also proposed.

    The tax collections target for the coming year is also being raised to Rs6100 billion from Rs5829 billion.

    Earlier, it was reported that government might pass the budget through a presidential ordinance. But IMF rejected this government’s proposal and insisted on legislation through the Parliament. 

    The exemptions need to be reverted before the IMF’s executive board meeting on January 12.

  • CM Buzdar cancels overseas convention over differences with Governor Punjab

    Chief Minister (CM) Punjab Usman Buzdar has reportedly ordered to cancel the first ‘Overseas Global Convention’ of nearly 1,000 overseas Pakistanis living around the world, reports Murtaza Ali Shah for Geo News.

    The media outlet report states that CM Punjab has said that affairs related to the event were being used for the projection of a “few groups” and that many who had travelled to Pakistan were considered close to Governor Punjab Muhammad Sarwar.

    “The Punjab Chief Minister gets intelligence reports from various sources. Evidence was shown to him that many people who were invited as main guests of the event defamed Buzdar in WhatsApp groups and social media,” revealed the source.

    “They belong to a particular group which doesn’t align ideologically with the Pakistan Tehreek-e-Insaf (PTI) and criticises Usman Buzdar’s policies, who has the full trust of Prime Minister (PM) Imran Khan. The governor’s remarks in London about the International Monetary Fund (IMF) taking over Pakistan have not gone down well with the power circles.”

    However, according to the organisers, the convention which has cost tens of thousands of dollars was cancelled due to “security reasons”. On the contrary, a source close to Governor Punjab has rejected the allegations that the event is not an initiative of the Governor House and said, “The Governor House is one of the most secure places in the country, we have no idea what the security issue was. A dinner event at the Governor House will be organised for those who have travelled to Pakistan from overseas as the convention has been cancelled.”

    PM Khan’s involvement:

    According to the details in the report, PM Khan had accepted the invitation by the Overseas Pakistani Commission Punjab Vice Chairman Syed Makhdoom Tariq Ul Hassan. The premier was also expected to address the convention.

    Upon asking, whether PM Khan was aware or not that the convention had been cancelled at the last minute, the Punjab government source said that the CM takes decisions on his own and later takes the premier into confidence when needed.

  • ‘Aag laga de gaye’: PML-N Rana Sanaullah warns government

    Pakistan Muslim League-Nawaz’s (PML-N) Punjab President Rana Sanaullah said if the government tries to hold the upcoming elections using Electronic Voting Machines (EVMs) he will burn them.

    In a press conference on Friday, Sanaullah while talking about foreign loans stated, “Pakistan has gone bankrupt. The entire economy including the State Bank of Pakistan (SBP) has been handed over to International Monetary Fund (IMF).”

    He said, “Electronic machine par intekhaab hua toh machino ko polling station se nikal kar aag laga de gaye” (We will try every strategy against EVMs. If the election is held through this [EVMs], we will take out the machines from polling stations and set them on fire.)

    Talking about PML-N Vice President Maryam Nawaz’s leaked audio, he claimed that the government is exaggerating about the relevance of the audio.

    Prior to this, Rana talked about EVMs in a show and said if the government tries to force the elections through EVMs, the party would be left with no option but to follow the TLP way of protesting.

  • ‘I am not making any profit’, food-price inflation is crushing Pakistan’s poorest

    The New York Times (NYT), in an article has documented the lives of the public in the wake of high inflation in Pakistan.

    Pakistan, which is already under heavy debt has recently reached an agreement with the International Monetary Fund (IMF) for the first one billion dollars of what is expected to be a 6 billion dollars rescue package announced by the government earlier this week. Last month, Saudi crown prince, Mohammed bin Salman, pledged 4.2 billion in cash assistance to Pakistan.

    “The economy is the biggest threat that the government is in fact facing right now. This is basically eroding the very basis of their public support, said Khurram Husain, a business journalist in Karachi.

    Journalists Emily Schmall and Salman Masood reported on the life of 66-year-old Muhammad Nazir, a shopkeeper who canceled his daughter’s wedding and despite having a motorcycle at home, walks to his shop. Many of his shelves are empty because he can’t afford to stock the same supply of candy, soft drinks, and cookies that he once did.

    “I am not making any profit these days. Still, I come here every day, open the shop and wait for customers,” Nazir said.

    Saleem Shahzad, a plumber who recently moved his six-year-old son to a less expensive school said, “[The Prime Minister] Imran Khan is a good person and is still liked by many, but his team is not performing. It is incompetent.”

    According to government data, inflation in Pakistan surged 9.2 per cent in October from the year 2020. The cost of basic food items this month increased by 17 per cent. Pakistan’s biggest food import is palm oil, which has also jumped in price. Moreover, in recent months Pakistanis have seen standard gas prices jump to 34 per cent.

  • ‘Three sugar mills in Sindh were shut down, leading to an increase in the price of sugar to Rs140 per kg’: PM Khan

    ‘Three sugar mills in Sindh were shut down, leading to an increase in the price of sugar to Rs140 per kg’: PM Khan

    Prime Minister (PM) Imran Khan during an address at a ceremony in Attock on Friday said that Sindh shut down three operational sugar mills, which contributed to an increase in the price of sugar.

    “The price of sugar in Pakistan has hit Rs140 per kg. I inquired why this was so. I learned that three sugar mills in Sindh, which were operational, were shut down,” the prime minister said.

    The prime minister went on to say that he subsequently learnt that due to the reduced supply, the sugar mills in Punjab began to hoard the commodity.

    “I told the chief secretary that our law forbids hoarding and so if the sugar mills are doing so, we must retrieve the stock and bring it out to the market so the price drops.”

    “We found out that since July, the sugar mills have obtained a stay order against the rule. And so our government was unable to do anything,” PM Imran Khan said.

    “This is a gross injustice that the sugar mafia earns billions after having broken the backs of our people. And when the government moves to do something, they obtain stay orders,” he remarked.

    PM Khan claimed that there was uproar in India as well over high petrol prices and Pakistan still had the cheapest petrol prices in the region.

    “In India today, there is uproar as well [over petrol prices] and the petrol price per litre is Rs150 while it is Rs200 in Bangladesh. [On the other hand] it is the lowest in Pakistan at Rs146,” the premier said.

    “The biggest [impact] of what happened was that the oil price first decreased and now in the last three months it has doubled […] when oil becomes expensive, then everything becomes expensive.”

    “When there was inflation in the whole world then obviously Pakistan is in this same world and not in the heavens so we also had to be affected. As a result, we fully tried and are still trying to protect our people from this inflation.”

    The prime minister’s comments come the same day as the government increased petroleum prices by up to Rs8.14 per litre with immediate effect to ensure the revival of the International Monetary Fund (IMF) programme.

  • ‘Agreement will be signed this week with IMF’ : Shaukat Tarin

    ‘Agreement will be signed this week with IMF’ : Shaukat Tarin

    Advisor to the Prime Minister on Finance and Revenue Shaukat Tarin has stated that all issues have been settled with the International Monetary Fund (IMF) and an agreement will be signed this week.

    While addressing the launch ceremony of the Pakistan Single Window (PSW) Tarin said, “We are giving targeted subsidies to control inflation. It is a global problem and prices in the international market are out of my control,” assuring that there will be no delay in the salaries of government employees.

    He said that the world economy is recovering and business activities would not only resume but also grow at a much faster pace.

    “The worst seems to be over and as economies begin to recover globally, we expect business activity to resume and in fact grow at a much faster pace. Pakistan and Pakistani businesses have to be ready to take advantage of new opportunities,” he added.

    According to the advisor, PSW would help accelerate the digital transformation of the public sector agencies connected to international trade.

    Moreover, he said that it is a priority of the government to facilitate businesses, including small and medium-sized ones, by providing a suitable enabling environment for growth and innovation.

    Talking about the recent cyberattack on the National Bank server, he said that the enemy is ‘sitting in our neighbourhood’.

    Earlier, it was reported that an official said the government was considering an increase of petroleum levy by Rs4 per litre. This would depend on its engagements with the IMF for the revival of its programme.

    Last month, Saudi Arabia agreed to revive its financial support to Pakistan which includes about three billion dollars in safe deposits.

    Tarin was in Washington last month to lead the Pakistani delegation in talks with the IMF for the revival of the 6 billion dollars Extended Fund Facility (EFF).

  • Another Rs8 hike in petroleum prices on the cards, again

    The government is likely to increase petroleum prices by up to Rs8 per litre for the next 15 days if it decides not to increase existing tax rates, reports Dawn.

    On the basis of existing tax rates, the Oil & Gas Regulatory Authority (OGRA) and Petroleum Division have worked out about Rs6 per litre increase in the price of petrol and of high speed diesel (HSD) by about Rs8 per litre. The increase for other products, which includes kerosene and light diesel oil, was also estimated to be in the same range.

    An official said the government was considering an increase of petroleum levy by Rs4 per litre, either on Sunday or November 16. This would depend on its engagements with the International Monetary Fund (IMF) for the revival of its programme.

    However, no official decision has been made yet. The official announcement would be made after consultations with Prime Minister (PM) Imran Khan on Sunday.

    Currently, the government is charging about Rs5.62 per litre petroleum levy on petrol and Rs5.14 per litre on HSD. In addition, it is also charging about Rs9.29 per litre and Rs8.81 per litre customs duty on petrol and HSD respectively besides Rs9 and Rs13 per litre GST on these two products.

    Energy Minister Hammad Azhar had said that the government was coming under pressure for giving up taxes on petroleum products.

    At present, the price of petrol stands at Rs137.79 per litre and the price of HSD is at Rs134.48 per litre.

    Earlier, the Finance Ministry of Pakistan warned the public about increasing the prices and transportation costs in the country.