May 10, 2020 (MLN): The highlights of the important economic and business events witnessed during the last week are in order to provide the information regarding recent developments in Pakistan’s economic and public policy.
On Friday, the State Bank of Pakistan (SBP) opened up it subsidized Temporary Economic Relief Facility (TERF) for Balancing, Modernization and Replacement (BMR) and expansion of existing projects to provide further stimulus to the economy in the context of COVID-19’s impact on the economy, to support investment in the country for modernizing or expanding manufacturing/production units, and in response from feedback from stakeholders.
May 08, 2020: Adviser to the Prime Minister for Commerce and Investment Abdul Razak Dawood Friday said the recent amendment in the Secured Transaction Act-2016 would help in operationalizing e-registry of movable and immovable assets which would, in turn, enhance easy access to credit particularly by Small and Medium Enterprises (SMEs).
Meanwhile, during the briefing to the media, the International Monetary Fund (IMF) informed that it has doubled access to its emergency facilities. Under the Rapid credit financing instrument, it said it plans to meet the demand of about $100 billion as over 100 countries have approached it for financial assistance to combat COVID-19.
On Thursday, Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh chaired a meeting to deliberate on the contours of a financial assistance package for the Small and Medium enterprises in the wake of the Corona Virus pandemic.
Furthermore, the Economic Coordination Committee (ECC) of the Cabinet asked the Ministry of National Food Security and Research to closely monitor the wheat procurement process and actively engage with the food departments and PASSCO to ensure procurement of wheat as per 8.25 million tonnes target set for procurement by the public sector this year.
On Wednesday, the Ministry of Finance and State Bank of Pakistan introduced a risk-sharing mechanism to support bank lending to SMEs and small businesses to avail SBP’s Refinance Facility to Support Employment.
The same day, an online Zoom session was held between PBC and IMF teams wherein both discussed the macroeconomic indicators and their projections as the COVID-19 related shock has altered the economic outlook. Pakistan Business Council (PBC) alarmed a sharp 34% rise in tax revenues projected by IMF for FY21 will throttle an economy that was barely stabilizing prior to the onset of Covid-19.
Besides, the Power Holding Company Limited (PHL) decided to revise bid registration dates and bidding dates for Pakistan Energy Sukuk-II of up to PKR 200 billion. As per the new dates, the bids registration process shall take place between May 11, 2020, up till May 15, 2020 (both dates inclusive and within banking hours) and bidding process shall take place from 18th to 19th May 2020.
Earlier, PHL announced to issue a debt instrument to address the liquidity constraints being faced by Pakistan’s power sector.
On Tuesday, a meeting of the Cabinet Committee on Energy was held with Minister for Planning, Development and Special Initiatives Asad Umar in the chair to review the progress on the formulation and approval of the Renewable Energy Policy and the introduction of the competitive bidding process for the entry of new producers in the renewable energy sector of Pakistan.
On Monday, President Dr Arif Alvi approved amendments in Companies Act 2017 to provide an enabling regulatory framework to facilitate startups in Pakistan.
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