June 21, 2020 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.
Events of Importance through the Week:
On Friday, Fitch Ratings in its report said that Pakistan’s fiscal consolidation targets presented its FY21 budget on 12 June will be challenging to meet amid the economic shock and health crisis associated with the coronavirus pandemic.
Besides, the cabinet committee on energy approved the proposals relating to supply of additional power to Karachi Electric (KE) from the national grid and directed that the technical details may be finalized between the parties by August 15.
Meanwhile, Privatization Commission in its meeting said that it is fully committed and endeavored towards timely achieving the target set by the government in the Finance Bill for the FY 2020-21, as it incorporated Rs. 100 Billion Privatization proceeds as part of the ‘Non-Tax Revenue Receipts’ for the FY 2020-21.
Furthermore, the Petroleum Division on Saturday vehemently rejected a news item appearing in a section of print media regarding the case between Pakistan LNG Terminal Limited (PLTL) and Pakistan Gas Port Consortium Limited (PGPCL) in London Court of International Arbitration (LCIA).
The Cabinet Committee on Energy (CCOE) on Saturday approved in principle the proposal of HSFO Demand for Power Plants.
Furthermore, the Asian Development Bank (ADB) and the Government of Pakistan on Friday, signed 3 loan agreements, for $235 million, $500 million, and $75 million, respectively.
On Thursday, the Beijing-backed Asian Infrastructure Investment Bank (AIIB) approved a loan of $500 million to help Pakistan battle the coronavirus pandemic, the bank said on Thursday.
The same day, Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the of the Cabinet Economic Coordination Committee (ECC) (in which the committee approved Rs 3.2 billion for PIA to discharge the obligations against GOP guaranteed loans.
According to a schedule issued by the State Bank of Pakistan (SBP), the Government aims to shift debt profile to longer term Bonds as it sets auction target of Rs.2.445 trillion for next three months, as it will be auctioning Market Treasury Bills (MTB), Fixed and Floating Rate Pakistan Investment Bonds (PIB) and Variable Rental Rate GOP Ijara Sukuks (GIS) to raise the required amount.
On Monday, the State Bank of Pakistan (SBP) issued its flagship annual publication, the Financial Stability Review (FSR) for CY19. The Review presents performance and risk assessment of various segments of the financial sector including banks, non-banking financial institutions, financial markets, non-financial corporates and financial market infrastructures.
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