PM vows to transform rural livelihoods
In a message on the occasion of World Day for Rural Development observed on July 6, he said, "In line with the Sustainable Development Goals, we are focusing on transforming rural livelihoods through targeted investments in agriculture, education, healthcare, infrastructure, and skills training."
"We take this opportunity to acknowledge the invaluable contributions of our rural population and reaffirm our commitment to their well-being and development," he remarked.
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Express Tribune
13 hours ago
- Express Tribune
CPEC power dues rise to Rs423b
Listen to article The government managed to restrict the outstanding dues of China-Pakistan Economic Corridor (CPEC) power projects to Rs423 billion by June this year, which might also be settled soon, subject to early resolution of the issue of interest on late payments. The official documents showed that as of the end of fiscal year 2024-25, the outstanding energy payments to Chinese power plants amounted to Rs423 billion. These were Rs22 billion, or 5.5%, more than the preceding fiscal year. The details showed that since 2017, the country has paid Rs5.1 trillion in energy costs to the 18 Chinese power plants, which were equal to 92.3% of the billed amount, including interest. The Pakistani authorities believe that the actual remaining cost of energy was less than Rs300 billion and the rest of the amount was due to late payment surcharges. The government is in the process of taking nearly Rs1.3 trillion in fresh loans from the local commercial banks to retire the circular debt that it owes to the state-owned power plants, nuclear power plants, privately owned plants, and the Chinese plants. According to one of the conditions set by the federal cabinet, the authorities will negotiate with the power producers to waive off the interest payments in return for taking upfront full payments, said a government functionary who is part of these discussions. The Chinese might not waive off the interest cost due to their internal requirements, which would leave the government with the option of either making full payments in one go or clearing the dues as the fiscal space is created. The Rs423 billion unpaid debts are in violation of the 2015 CPEC Energy Framework Agreement, which binds the government to fully clear the dues irrespective of whether the authorities can recover the amounts from the end consumers. Along with security, the non-fulfilment of CPEC contracts is one of the reasons for slow progress in financial and commercial relations between the two nations. Prime Minister Shehbaz Sharif is expected to visit China next month, and one of the agenda items is luring Chinese investors to Pakistan by addressing their concerns. Under the CPEC Energy Framework Agreement, Pakistan was required to create a revolving fund with 21% of the power invoices to protect Chinese firms from the circular debt crisis. However, the previous government opened a Pakistan Energy Revolving Account at the State Bank of Pakistan in October 2022 with Rs48 billion in annual allocations. But it limited the withdrawals to Rs4 billion per month, leading to the current Rs423 billion debt stock. The documents show Pakistan owed Rs87 billion to the imported coal-fired Sahiwal power plant, while the company received Rs1.14 trillion in the past eight years of its operations. The country also owed Rs69 billion to the coal-fired Hub power project, compared to the Rs834 billion worth of total claims. The outstanding remaining dues of the coal-fired Port Qasim power plant were Rs85.5 billion, as against the total bills of over Rs1 trillion. The Port Qasim plant's dues were roughly Rs15 billion higher than the preceding fiscal year. The Thar Coal project dues remained at Rs55.5 billion. It had claimed Rs566 billion worth of dues. The outstanding dues of Karo power company were Rs11 billion, Engro Powergen Thar Coal Rs38 billion, Matiari Lahore Transmission Line Rs28.5 billion, and Thar Energy Limited Rs8.3 billion. The Chinese government has repeatedly raised this issue with Pakistan through diplomatic channels, including Pakistan's embassy in Beijing and its own embassy in Islamabad. It is expected that once the procedural formalities are completed by the commercial banks and the federal government's entities, the circular debt amounts would start going down. The government had reached a deal with commercial banks to borrow Rs1.25 trillion at less than an 11% interest rate as part of its three-pronged strategy to eliminate the circular debt and restore power sector viability. The banks are expected to disburse the loans soon after fulfilment of the procedural requirements. The deal is said to be about 3% to 5% cheaper than the interest on the existing facilities and the penalties that the government pays for not making timely payments of the energy purchases. The Rs1.25 trillion debt is being taken on the books of the Central Power Purchasing Agency (CPPA), and it would not be part of the overall public debt. The government was paying up to 14% cost to the commercial banks on the loans that it had taken in the past to retire the circular debt, and up to 16% price to the Independent Power Producers (IPPs) for not making timely payments to them. Out of the total Rs2.4 trillion existing circular debt stock, there is a need to resettle the Rs1.5 trillion principal amounts to eliminate the debt stock. Out of the Rs1.25 trillion, about Rs660 billion will be settled against the Power Holding Limited debt. This debt had been obtained in the past at a rate of KIBOR plus up to 2%. The nuclear plant powers will get around Rs280 billion, while the LNG power plants are expected to receive Rs220 billion. Pakistan's earlier efforts to get the energy debt rescheduled have not succeeded, according to the government sources. Finance Minister Muhammad Aurangzeb and Energy Minister Sardar Awais Laghari were leading these efforts. The Pakistani officials had requested a five to eight-year extension for repaying energy debt, converting US dollar-based interest payments to Chinese currency, and reducing overall interest rates for both CPEC and non-CPEC Chinese-funded projects.
Express Tribune
16 hours ago
- Express Tribune
PM approves creation of digital ecosystem at FBR
Prime Minister Shehbaz Sharif on Saturday granted approval for the formation of a modern and globally standard digital ecosystem in the Federal Board of Revenue (FBR), besides directed hiring of internationally renowned experts. During a meeting to review progress on the ongoing reforms in the FBR, the prime minister observed that the economy was moving in a positive direction due to the recent reforms in FBR. Ministers Muhammad Aurangzeb, Ahsad Khan Cheema, Minister of State Bilal Azhar Kayani, FBR Chairman, Chief Coordinator Musharraf Zaidi, economic experts and other senior officials attended the meeting, PM Office Media Wing said in a press release. The meeting was briefed on the progress regarding the formation of a modern digital ecosystem aimed at centralizing FBR's data and enabling real-time monitoring of the entire value chain. The prime minister, while chairing the meeting, emphasized that not only digitization, but a comprehensive digital ecosystem should be established to strengthen the new system and directed that all the relevant data, from raw material production and import, to manufacturing of goods and the final consumers' purchase, should be integrated into a single system. The prime minister said the system should be made so effective that the entire value chain could be monitored digitally in real time. He further opined that the centralized data collected under this system should be utilized for the economic strategic decision-making. The prime minister stressed that the goal of reducing taxes for the common man could only be achieved by increasing the tax base and ending the informal economy. Incentive scheme Prime Minister Shehbaz Sharif has decided to continue the incentive scheme for the remittances of overseas Pakistanis to Pakistan. He directed the Ministry of Finance to immediately release funds for the Workers' Remittances Incentive Scheme on priority basis. He said, "Overseas Pakistanis are our strength and a valuable asset of Pakistan." "The hard-earned remittances of overseas Pakistanis play an important role in the development of Pakistan, which the entire nation, including me, values," he added. In the fiscal year 2025, he said overseas Pakistanis played a key role in achieving the target of current account surplus for the first time in 14 years by sending a record high of $38.3 billion in remittances. These remittances not only helped pay the rising import bill but also helped increase foreign exchange reserves, he noted. He said "Overseas workers and businessmen play a crucial role in the country's development and progress by sending remittances to their homeland."
Express Tribune
a day ago
- Express Tribune
PM to continue remittance scheme for overseas Pakistanis amid record inflows
Increase in manpower export should improve workers' remittances to around $32 billion in current fiscal year, compared to the record high of $31 billion in previous year. photo: file Listen to article Prime Minister Shehbaz Sharif has decided to continue Pakistan's facilitation scheme aimed at encouraging overseas Pakistanis to send remittances through formal channels, the Prime Minister's Office said Saturday. According to the official statement, the prime minister directed the Ministry of Finance to immediately release funds on a priority basis under the Workers' Remittances Incentive Scheme. 'Overseas Pakistanis are a vital asset and strength of the country,' said Prime Minister Shehbaz. 'The hard-earned remittances sent by them play a significant role in Pakistan's development — a contribution valued by the entire nation, including myself.' وزیرِ اعظم شہباز شریف کا بیرون ملک مقیم پاکستانیوں کی ترسیلات زر پاکستان بھیجنے کی سہولت اسکیم کو جاری رکھنے کا فیصلہ@CMShehbaz — PTV News (@PTVNewsOfficial) July 26, 2025 The premier highlighted that in the fiscal year 2025, overseas Pakistanis sent a record-high $38.3 billion in remittances. He noted this was instrumental in securing a current account surplus — Pakistan's first in 14 years — and helped meet the import bill while boosting foreign exchange reserves. Shehbaz Sharif also emphasised that contributions come from all sectors of the diaspora — from labourers to business professionals — and underscored the need to remove barriers to remittance flows. 'Efforts are ongoing to make the remittance system more efficient, effective, and user-friendly for our hardworking overseas community,' he added. The incentive scheme aims to channel more remittances through formal banking channels, a crucial factor for Pakistan's economic stability.
