Day: May 20, 2024

The banking deposits increased by over 21 percent to Rs. 28.4 trillion as of April 2024 compared to Rs. 23.4 trillion as of April 2023. According to data released by the State Bank of Pakistan (SBP), advances decreased by 0.7 percent year-over-year to Rs. 12 trillion during the same period as compared to Rs. 12.1 trillion as of April 2023. Investments also witnessed a significant increase of 38.5 percent year-over-year to Rs. 27.3 trillion compared to Rs. 19.7 trillion as of April 2023. The advance-to-deposit ratio stood at 42.3 percent in April 2023, down 936bps year-over-year while up 9bps on a month-over-month basis. The investment-to-deposit ratio clocked in at 96 percent in April 2024, up 1,194bps year-over-year and up 325bps month-over-month. Source: Pro Pakistani

Energy Minister Awais Leghari said the federal government had no plans to end solar net-metering next fiscal year. Addressing reporters at LESCO headquarters, Leghari denied recent reports of quashing solar net-metering, arguing that the scheme still remains a priority for the government. Last week it was reported that the government wanted to end solar net metering and replace it with a gross metering system to discourage solar use and to force consumers to switch back to drastically unaffordable grid electricity. But Leghari assured that any new policy on the matter won't affect consumers who have already installed solar power and have net-metering contracts. He also stated that any future modifications to the policy would involve consultations with all stakeholders. Since its launch, net metering has increased significantly. In the current fiscal year to date, applications for net-metering licenses rose by 125 percent. Currently, 113,000 households, have solar net-metering connections. Source: Pro P akistani

The federal government has decided to start an inquiry against the former Secretary in-charge of National Food Security and Research in connection with the wheat scam. Sources told ProPakistani that the Establishment Division has forwarded a summary to Prime Minister Shahbaz Sharif seeking approval of starting an inquiry against former Secretary in charge of National Food Security and Research Cap retired Asif Tamman. Captain (R) Asif remained in the position from January 25 to May 2, 2024. The PM has removed him from position once it emerged that Pakistan is still importing Wheat. Earlier, Cap retired Muhammad Mahmood was heading the National Food Security and he remained in the position till January 2024. Generally, the Ministry of Food and the Ministry of Commerce deal with wheat crops as well as import-related matters. However, the Establishment Division only asked the PM to start an inquiry against Cap (r) Asif, sources added. It merits mention here that Punjab is currently facing a wheat abundan ce crisis this crop season due to the heavy import of grain by the caretaker set close to the local harvesting time. Usually, the provincial government procures over four million tonnes of wheat annually. How­ever, this season, it has not bou­ght any wheat despite running a 'grow more wheat' drive at the onset of the sowing season last October and November. Growers, reaping a bumper crop, are now at the mercy of free market forces, selling their produce at Rs. 1,000 per 40kg, way below the official minimum support price of Rs. 3,900 per 40 kg. Source: Pro Pakistani

Federal Minister for Finance Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOE) at the Finance Division today. The committee approved the proposal of the Power Division for the nomination of independent directors for certain electricity distribution companies for onward submission to the cabinet. The committee didn't approve the proposal presented by the Ministry of Railways to categorize four Railway companies as strategic and essential and directed to submit a transformation plan for these four companies before the CCoSOEs. The proposal of the Ministry of Science and Technology was deferred with the direction to submit a business plan to the committee regarding the reforms planned by the Ministry of Science and Technology for STEDEC. While approving the proposal of the Ministry of Information and Broadcasting, the CCoSOEs recognized the strategic nature of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC) and directed the Ministry of Information and Broadcasting (MoIB) to present a viable business plan to the committee for efficient management of these enterprises. The meeting was attended by Minister for Housing and Works Mian Riaz Hussain Pirzada, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Maritime Affairs Qaiser Ahmed Sheikh, Minister for Economic Affairs Ahad Khan Cheema, Chairman SECP, Federal Secretaries and other senior officers of the relevant ministries. Source: Pro Pakistani

International investors want Pakistan to remit dividends owed to their shareholders in power plants under the China-Pakistan Economic Corridor (CPEC). The pending dues for CPEC power projects are around Rs. 550 billion. This was a key issue raised by China when Foreign Minister Ishaq Dar and Planning Minister Ahsan Iqbal recently visited Beijing, reported Business Recorder. The Private Power Infrastructure Board (PPIB) has asked the State Bank of Pakistan (SBP) to expedite the remittance of shareholder dividends but the regulator itself is helpless due to dollar shortage. Recently Qatar's Sheikh Hamad Bin Jasim Bin Jaber Al Thani wrote to Prime Minister Shehbaz Sharif requesting payment of $450 million in receivables for the Port Qasim Electric Power Company (PQEPC). His letter revealed that the project has not paid out any dividends to investors and now totaled $558 million. PQEPC has warned of a potential default on loan agreements and government guarantees if dues are not settled. A settlement agreem ent to resolve the issue of foreign exchange availability has been preliminarily approved and may increase the owed amount to Rs. 13.6 billion. PQEPC has indicated that it could suspend operations without incurring liquidated damages if payments are not made. At a recent meeting of the Board of Investment (BoI), Additional Director SBP Muhammad Tahir said there were issues in the past related to foreign exchange reserves but things were improving since then. He mentioned that now, there is a queue system for dividend repatriation and a Local Deployment Policy that allows companies to earn interest on idle dividends until they can be repatriated as reserves improve. Source: Pro Pakistani

The federal government has shared a plan with the International Monetary Fund (IMF) to reduce federal expenses by Rs. 300 billion, well-informed sources told ProPakistani. This plan involves several key measures aimed at cutting costs and streamlining operations. Sources said one step involves eliminating vacant positions in grades 1-16 over the next year. Additionally, the government will restrict the purchase of new vehicles for federal ministries. Sources said the federal government will no longer provide funds for provincial development schemes and instead allocate funds to essential and national projects. Infrastructure projects will increasingly rely on private partnerships. This will reduce the burden on federal resources, sources added. The center will not fund new university projects next year while provincial governments will be responsible for funding institutes with their own money. Sources said a voluntary pension scheme for new recruits was on the cards, excluding armed forces and police, n ext fiscal year. This would help fulfill another IMF agenda to streamline the government's outdated pension system. A total ban on funding for development schemes by members of parliament next fiscal year, sources added. Source: Pro Pakistani