Central bank Governor Jameel Ahmad said on Wednesday that staff-level agreement (SLA) with the International Monetary Fund (IMF) was “close to finalisation” but shied away from giving a date amid his forecast of a reduction in non-debt creating inflows. The head of the State Bank of Pakistan (SBP) made a policy statement about the external sector outlook, inflation and economic growth during a
Commercial banks have increased their cost of financing to the cash-strapped government by a fresh 1 percentage point (ppt) to a record high of 21% on Wednesday, signalling that the finance market anticipates a further hike in the central bank’s key policy rate next month. The government raised debt worth Rs1.57 trillion, through auctioning three 12-month T-bills to commercial banks against its
The government has planned to place assets of Nandipur power plant (NPP) in a separate entity in order to hand over its controlling interest to Pakistan State Oil (PSO) for paying some of its outstanding dues. This will help the cash-starved PSO, the country’s largest oil marketing company, to reduce its huge circular debt receivables. Finance Division, in an office memorandum, said that it
Honda Atlas Cars Pakistan Limited (HCAR) has decided to temporarily close its plant from March 9 to 31 due to supply chain disruptions. In a notice to the Pakistan Stock Exchange (PSX), the auto giant announced that government’s restrictions on importing completely knocked down (CKD) kits, raw material and the halt to foreign payments had disrupted the supply chain and it was unable to continue
Restrictions on opening Letters of Credit (LC) to import raw materials essential for operations has put Pakistan’s leading producer of innovative home appliances in a crux with the company’s management urging the government to offer support. Dawlance Chief Executive Officer, Umar Ahsan Khan held a meeting with a Senate Finance Committee on Wednesday to highlight the adverse economic impact of t