Pakistan has
asked China to
raise the investment ceiling
up to $10
billion from $3
billion through the
EXIM bank and
China Development Bank
for undertaking crucial projects.
Islamabad also asked Beijing
to treat trade corridor as linkage point among different regions such as the Central Asian Republics Pakistan and China but also
to the rest of the world. We are keen to have Chinese investment in energy and
infrastructure. We are already working with Chinese companies in Gaddani
coastal energy park and in solar energy projects. He said
that main challenge
is to make
translate the vision of
the present leadership
of Pakistan and
China into reality
as early as possible relations are.
Consumers to
remain deprived of relief in gas price
Since the Lahore High Court (LHC)
had suspended a decision of Oil and Gas Regulatory Authority (OGRA) pertaining
reduction in gas tariff by 45/mmbtu so
the over burdened
consumers would remain
deprived of relief
in gas price. the
over burdened gas
consumers already bearing
high tariff have been
deprived of a
sigh of relief
once again only
because of strategy
of SNGPL. Earlier, the
OGRA had rejected
the request of
Sui Northern Gas Pipeline Limited (SNGPL) on June 1
regarding charging the consumers with 7 per
cent on account
of Unaccounted for
Gas (UfG) and
also approved decrease in gas tariff by Rs45/mmbtu. The matter
of fleecing the gas consumers with 7per
cent of UfG
was continuing since
2011 between OGRA
and SNGPL, as the former did not allow
the later to charge the consumers with said rate of stolen gas. However, the
LHC had given decision in the favor of public during February 2013. But, SNGPL,
in its plea to the LHC, had raised a point
to get OGRA’s
decision suspended that
two members of
regulatory authority (OGRA) are
inactive, while both
chairman and vice
chairman of OGRA are
not authorized to
approve Rs45/mmbtu reduction
in the gas price.
So, the honorable
court should suspend
the order of
the authority. Interestingly, SNGPL
had accepted the
gas tariff of
previous financial year (2012-13), which
was also approved
by both chairman
and vice chairman OGRA.
Debt
servicing eats up Rs900 billion in FY13
Debt servicing
of domestic and
external liabilities has
become the single largest component of the country’s
expenditures, as it consumed Rs990 billion during the last financial year ended
on June 30. According to
Fiscal Operation 2012-13
released by the
Finance Division on
Tuesday, the debt
servicing outpaced de-fence, as well as development
expenditures, indicating that the debt servicing will again become a major
challenge for the struggling economy of the country on the same pattern of 90s
when a major chunk of resources was consumed by debt servicing, leaving no
fiscal space to look after areas of the much-needed area of development.
According to official figures, the expenditure on defense and federal
development stood at Rs. 540 billion and Rs. 348 billion, respectively. A joint
calculation of both defense and federal development budgets showed that these
heads consumed Rs. 888 billion, while debt serving alone had eaten away Rs. 992
billion. Pakistan’s budget revolves
around three Ds, including debt servicing,
defense and development, as
the debt servicing
has been again
surfaced the single
largest head of
expenditure component. The
country’s budget deficit stood
at eight percent
of GDP with
the total revenues
of Rs. 2,982 billion
against the total
expenditures of Rs. 4,816
billion, resulting in a financing gap of Rs. 1,833 billion in the last
financial year. Although, the budget deficit of eight percent of GDP is lower than
the expectation of 8.8 percent of GDP, as the government managed savings of 0.8
percent of GDP, and the provinces posted 0.2 percent revenue surplus.
SBP
governor for developing Islamic microfinance
State Bank of Pakistan
Governor Yaseen Anwar has stressed upon the Islamic finance industry to make
individual as well as collaborative efforts to develop Islamic microfinance in
the country. Addressing opening session of the Islamic Finance News Pakistan
Road show on Islamic Banking held at the State Bank of Pakistan, Karachi on
Tuesday, he said Islamic microfinance, a confluence of two industries; Islamic
finance and microfinance, can not only be an efficient tool for financial
inclusion by catering to both voluntary and involuntary financially excluded
but also towards poverty reduction due to its inherent characteristic of being
prudent and asset based. He said that financial inclusion is one of the key
strategic objectives of SBP and emphasized the industry to develop capacity to
tap strategically important sectors of agriculture and SMEs and create value for
shareholders, depositors, and the country’s economy as a whole. He assured SBP
will provide every support and facilitation to the industry in efforts to build
and expand its portfolio in these sectors.
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