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Bilateral debt restructuring not under consideration: SBP governor

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  • SBP Governor Ahmad says restructuring not under consideration.
  • $0.4bn paid out of $3.6bn for this month, says Governor Ahmad.
  • Govt to decide appropriate time to issue Eurobond, governor adds.

KARACHI/ISLAMABAD: State Bank of Pakistan (SBP) Governor Jameel Ahmad clarified Monday that Pakistan was not considering a bilateral debt restructuring that Finance Minister Ishaq Dar had mentioned earlier.

“As of now there is no plan to enter into any debt restructuring. Absolutely no doubt about it. We are not considering any such plan; so there is no question of what will be the haircut,” he said during a briefing to analysts, according to The News.

After presenting the federal budget for FY2024, FinMin Dar said that the government was working on possibly restructuring its bilateral debt regardless of whether it completes its IMF review.

The SBP governor said most of the debt is bilateral and multilateral as they have paid large amounts of commercial debt and will pay Eurobonds when due, said Topline Securities, citing the governor.

The governor said that out of the total external repayment amount of $3.6 billion due this month, $0.4 billion has already been paid. The remaining balance of $2.3 billion will be rolled over, while $0.9 billion needs to be financed.

The total debt requirements for FY2024 will amount to approximately $23 billion, according to the SBP, which will be evenly distributed across four quarters.

In the next monetary policy statement, the SBP will come up with how to fund this depending upon IMF and other factors.

The governor highlighted that discussions are ongoing with IMF and hopeful that the review will conclude soon.

He expected that Rs1 trillion would be transferred to the government due to the profit earned by the SBP after retaining a specific portion during FY2024.

The SBP expects the current account deficit (CAD) for FY2023 will close to $3.5 billion (worst case $4 billion) due to policy induce import restrictions and available liquidity (exports and remittances).

The CAD for FY2024 will also be below $4 billion.

According to Ahmad, the government will decide the appropriate time to issue Eurobond, keeping market fundamentals and credit rating in mind.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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