These nations and international creditors are now dictating their terms due to their unending dependency on them | Photo: Shutterstock
Pakistan has planned to borrow a minimum of $23 billion in the next fiscal year, including the rollover of a bilateral debt of $12 billion, to finance its development plans and meet its external financing requirement which will keep the cash-strapped country’s foreign and economic policies dependent on global financial institutions like the IMF, according to a media report on Thursday.
Budget documents for fiscal year 2024-25 showed that Pakistan would borrow at least $23.2 billion, or Rs 5.9 trillion, which did not include any loan from the International Monetary Fund (IMF), The Express Tribune newspaper reported, adding that the International Monetary Fund’s loan will be for balance of payments support.
Out of the $23 billion, the government has included $20 billion in budget documents. It has not made the rollover of $3 billion by the United Arab Emirates (UAE) part of federal books as it is also meant for balance of payments support.
Details showed that Pakistan would take $19 billion in loans for budget financing and building its foreign exchange reserves. The amount appears colossal, which will keep the country’s foreign and economic policies dependent on the IMF, the World Bank, Saudi Arabia, China, the UAE and the Islamic Development Bank.
These nations and international creditors are now dictating their terms due to their unending dependency on them.
Prime Minister Shehbaz Sharif has claimed that he has received investment pledges of $15 billion from Saudi Arabia and the UAE but so far these promises have not translated into concrete agreements.
After being unable to acquire new debt from foreign commercial banks, the government has once again budgeted $3.9 billion worth of foreign commercial loans in the new fiscal year. However, in the outgoing year, China rolled over $1 billion of commercial debt.
There was hope that the international credit rating agencies would improve Pakistan’s junk rating under the $3 billion IMF’s standby arrangement. However, political and economic vulnerabilities prevented them from improving Pakistan’s standing.
Finance Minister Muhammad Aurangzeb said on Tuesday that the rating agencies were waiting for approval of the new Extended Fund Facility of the IMF. In case of further delay in the improvement of the ratings, the government’s plan of raising $4.9 billion through Eurobond and foreign commercial loans would not materialise.
The government had estimated the receipt of $6 billion from sovereign bonds and foreign commercial loans in the current fiscal year. After such deals could not be clinched, the State Bank of Pakistan bought an equal amount from the Pakistani markets.
The government has once again included the rollover of $5 billion in cash deposits from Saudi Arabia. This shows that the country will not be able to return the money out of which $3 billion had been taken in 2019 for just one year.
However, Saudi Arabia has not agreed to extend the oil facility of $1 billion to the next fiscal year, prompting the government to exclude it from the projection of external loan receipts. Similarly, the government has not included any new loan from Saudi Arabia for the import of petrol.
China’s $4 billion in cash deposit has again been added to the rollover queue, of which $2 billion is maturing next month.
The UAE’s financing has not been added to the federal borrowing plan since the money has been given for the balance of payments support, which will be serviced by the central bank from its profits. Out of the $3 billion, $1 billion is maturing next month.
The government has also estimated a new loan of $500 million from the Islamic Development Bank and $465 million on account of Naya Pakistan Certificates. Around $1.1 billion will be borrowed to finance the federal Public Sector Development Programme, according to the paper.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jun 13 2024 | 2:19 PM IST
Egypt’s Finance Minister Mohamed Maait announced the successful delivery of over 28,000 new, eco-friendly cars under a presidential initiative to replace older vehicles.
Despite economic challenges including supply chain disruptions and inflation, the initiative has provided beneficiaries with current-year models at below-market prices and with 7 or 10-year installment plans.
Launched in March 2021, the initiative allows recipients to replace vehicles that are 20 years or older.
The government has demonstrated its commitment to promoting eco-friendly transportation by allocating EGP 718m in green incentives for these cars. Participants also benefit from a 3% flat annual interest rate, reduced insurance costs, and a complimentary EGP 100,000 personal accident insurance policy for the driver.
The initiative has expanded to numerous governorates, including Cairo, Giza, and Alexandria, reflecting the government’s goal of broadening the program’s reach and promoting green transportation nationwide. This effort aligns with fostering a green transition, increasing the prevalence of eco-friendly vehicles, and localizing the automotive industry.
The Minister emphasized ongoing efforts to develop Egypt’s automotive sector, with the aim of establishing the country as a regional hub for car manufacturing and export.
The government envisions a future where electric vehicles gradually replace traditional cars, contributing to the expansion of clean energy, reducing reliance on petroleum products, and easing the financial burden on citizens.
Congratulations to recent college graduates. Many graduates have already landed a job. Others may still be looking for an offer or waiting until summer’s end before job hunting. Whatever path you’re on, once you’re earning an income it’s critical to establish a solid financial foundation.
That’s always been true. But the changing nature of work — likely defined by multiple jobs and fluid careers — increases the need for embracing sound personal finance.
Three quick points. First, you’ll make mistakes with money. Everyone does. That’s how we learn. Second, keep your money management simple. Life is busy enough without falling into financial complexity. Finally, doing well with money isn’t rocket science. Good money management mostly involves developing a few good spending and savings habits. Here are several suggestions:
Concentrate on your career. Your most important financial investment is in your career(s). The big return on investment comes from the income you earn from your knowledge. Plan on continuously investing in your skills.
Create a budget. A budget lets you know where your money is going, and where you might want to make some adjustments. The information is vital.
Start saving with your first paycheck. This is true even if it’s a miniscule amount (which is likely). Put your savings on autopilot and adjust the sum upward when your pay increases. Savings is both your emergency fund and your opportunity fund.
Embrace frugality. There is a wide range of frugal behaviors, and you should find the thrifty habits that work for you. The frugal path means being cautious with debt. Frugality leads to greater freedom of choice. (Most college graduates owe on their student loans; research your repayment options and pick the best choice for your circumstances.)
Start the habit of giving money away. The thoughtfulness that comes from deciding where to give money creates strong connections to our community. The act of giving is a powerful reminder of what matters.
Invest in your financial education. There is no shortage of good resources, ranging from your employer to community organizations that promote financial literacy. Looking over my bookshelves, I’d highlight “Get a Financial Life: Personal Finance in Your Twenties and Thirties” by Beth Kobliner.
That’s enough to get started. Good luck on the next stage of life!
Chris Farrell is senior economics contributor, “Marketplace”; commentator, Minnesota Public Radio.
MOUNT VERNON, Ill. — The Mount Vernon Township High School finance committee and school board will meet Monday, June 24. The finance committee will meet at 5:30 p.m. and the board will meet at 6 p.m.
The finance committee meeting agenda is as follows:
Mt. Vernon Township High School
FINANCE COMMITTEE MEETING
Monday, June 24, 2024
5:30 p.m.
The agenda for the board meeting is attached:
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