ISLAMABAD: Pakistan and the International Monetary Fund began talks on Monday for the second review of a $7 billion Extended Fund Facility programme and the first review of a $1.1 billion Resilience and Sustainability Facility, with discussions focusing on mixed fiscal performance, revenue shortfalls and the impact of recent floods.
Energy
Pakistan secures power sector financing, but dollar-linked debt looms large
ISLAMABAD: The power sector secured a lifeline with Rs1.225 trillion in fresh financing from commercial banks to tackle its chronic circular debt, but the industry remains tethered to exchange rate risks for nearly a decade due to dollar-indexed investments, particularly those tied to Chinese power projects, power minister said.
Govt inks Rs1.225 trillion loan pact with banks to tackle power sector debt
The government has signed loan agreements worth about Rs1.225 trillion with 18 local banks to clear outstanding dues to independent power producers trapped in the nation’s chronic circular debt, officials said.
Govt to seal Rs1.225 trillion bank deal to ease energy debts strain
ISLAMABAD: The government will sign a Rs1.225 trillion financing agreement with 18 domestic banks on Wednesday, a critical move to pare down the power sector’s crippling circular debt, which has choked utilities and weighed heavily on the nation’s economy.
Pakistan launches competitive electricity market to stabilise prices, boost industry
ISLAMABAD: The Power Division on Friday launched the Competitive Trading Bilateral Contract Market (CTBCM), a long-delayed reform aimed at creating a transparent electricity market and addressing decades of structural inefficiencies.
Pakistan, Iran sign trade pacts targeting $10 billion in bilateral commerce
ISLAMABAD: Pakistan and Iran signed a raft of protocols on Wednesday aimed at enhancing bilateral trade to $10 billion annually, a near tripling of current levels.
Inflation set to surge to 6.5 percent in September on flood-hit food prices
KARACHI: The headline inflation is poised for a sharp rebound to 6.5% year-on-year in September after edging up to 3% in August, driven by flood-related spikes in food prices, brokerage Topline Securities said in a report on Wednesday.
Govt hikes diesel price by Rs2.78/liter, holds petrol steady
ISLAMABAD: The government on Monday increased high-speed diesel prices by Rs2.78 a liter to Rs272.77 for the next fortnight, a move likely to stoke inflationary pressures across transport and food costs.
Zardari looks to revive ties with Shanghai Electric after abandoned K-Electric takeover
ISLAMABAD: President Asif Ali Zardari sought to revive ties with Shanghai Electric Power Co. after the Chinese company scrapped its long-stalled $1.77 billion bid for a controlling stake in K-Electric Ltd., assuring executives that any lingering issues would be addressed as he invited fresh investment in the nation’s power grid.
SBP set to hold rate at 11 percent as floods stoke inflation risks
KARACHI: The central bank is set to keep its benchmark interest rate on hold at 11 percent when its Monetary Policy Committee convenes on Monday, as fresh flooding threatens to stoke inflation in a fragile economy already strained by energy costs.