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Business Recorder
2 days ago
- Business
- Business Recorder
Power sector debt: Govt secures historic Rs1.275trn loan deal from banks
ISLAMABAD: After months of negotiations on term sheets and legal formalities, the government has finalized agreements for a historic loan package of Rs 1.275 trillion with approximately 18 commercial banks to address the growing circular debt in the power sector. According to sources, the draft agreements are now ready for final approval by the Federal Cabinet. The loan aims to offset a portion of the circular debt, which currently stands at approximately Rs 2.3 trillion. The government has already secured the International Monetary Fund's (IMF) endorsement for its circular debt reduction plan, which includes borrowing from commercial banks. Of the total debt, around Rs 700 billion is currently held on the books of the Power Holding Company Limited (PHL) on behalf of the power distribution companies (Discos). Rs1.275trn loan to tackle circular debt: CPPA-G likely to sign term sheets with 18 banks During ongoing discussions with the IMF Review Mission, both the Finance Division and the Power Division briefed the mission on the status of negotiations with commercial banks and the terms outlined in the draft agreements. Under the deal, commercial banks will extend fresh loans amounting to Rs 617 billion at an interest rate of 10.50–11 percent, pegged to the Karachi Interbank Offered Rate (KIBOR) minus 0.2 percent. Repayments will be made over six years through the Debt Service Surcharge (DSS), which is currently charged to consumers at Rs 3.23 per unit in electricity bills. To meet IMF structural benchmarks, the government also plans to uncap the DSS, which currently represents 10 percent of the total revenue of power companies. This will be done through a legislative amendment, enabling the payment of interest and partial repayments of loans raised by PHL that appear on Discos' balance sheets. 'We have finalized all necessary documentation and term sheets with the banks, and these are expected to be approved before Eid (this week),' a source confirmed. Earlier reports suggested that commercial banks had requested guarantees from the State Bank of Pakistan in case of government default. However, sources indicated that government negotiators emphasized the systemic risk to banks' investments if the power sector were to collapse—an implied warning rather than a direct threat. A government official denied any coercion, stating that banks were merely urged to recognize the severity of the situation. 'This is a massive, unprecedented transaction in Pakistan, so naturally, many aspects needed to be carefully finalized,' the official said. Another senior official involved in the initiative confirmed that all outstanding matters with the banks have been resolved. 'The indicative term sheet was signed by all banks last week. It now awaits approvals from the federal cabinet and the CPPA-G Board. A summary will be submitted to the cabinet next week, after which the loan documentation will be completed within three to four weeks,' he explained. Loan disbursements are expected before the end of the current month so that reduced figures of circular debts are shown in the budget documents. According to official documents, the government has committed to borrowing Rs 1.252 trillion from commercial banks to repay all outstanding PHL loans (Rs 683 billion) and settle the remaining interest-bearing arrears owed to power producers (Rs 569 billion). The loan is expected to be secured at more favourable terms than those currently applied to the existing circular debt—one of the primary factors contributing to its accumulation. Repayments will be made over six years through DSS collections. Copyright Business Recorder, 2025
CBS News
5 days ago
- General
- CBS News
Post-WWII Germany's first Jewish cabinet member on embracing her roots, countering rising antisemitism
Berlin — When Karin Prien's mother brought her to Germany as a little girl in the late 1960s, she gave her one urgent warning: "Don't tell anyone you're Jewish." Nearly six decades later, Prien is now post World War II Germany's first Jewish federal cabinet member, having been selected as the Minister for Education, Family Affairs, Senior Citizens, Women and Youth. Prien told CBS News she intends to use her platform to confront the rise of antisemitism in Germany and further afield, and the fragility of democracy in a country still reckoning with its past. "Well, in a way, I'm proud," the minister told CBS News in a candid interview. "Proud to be a minister in the federal government, but also that I'm recognized as Jewish and that German society is now so far [advanced] as to accept that Jewish people have a right to be a self-conscious part of this society." Prien's political career, and her personal story, represent an arc of conflict, tension and reconciliation that echoes that of post-Holocaust Germany itself. Karin Prien, Germany's federal minister for Education, Family Affairs, Senior Citizens, Women and Youth. Christoph Soeder/picture alliance via Getty Images "A question of responsibility" Born in the Netherlands to Holocaust survivors, Prien moved to Germany at the age of 4. Even as a child, she was heavily aware of the silence surrounding her family's identity. Her mother's warning that it was still too dangerous to talk about being Jewish — more than two decades after the war ended — shaped her early years. "There was always fear. My mother was afraid that there were too many Nazis still around," Prien said. "It wasn't taken for granted that you could talk about being Jewish. It was something you kept inside the home." But that silence eventually became intolerable. As a young teen, she said she began to understand that the democratic values she cherished — freedom, human dignity, anti-discrimination—- required defending. "I decided, 'I have to do something about it. Democracy is not something you can take for granted,'" she said. But Prien still waited decades before publicly acknowledging her Jewish identity. The turning point came in the early 2010s, when she was already a member of state parliament in Hamburg. Prien began pushing for systematic documentation of antisemitic incidents in schools. When a journalist asked why the issue mattered so much to her, she paused and then told him: "Because I'm Jewish." "That was the moment I realized I had a political voice," she recalled. "I had some kind of influence. And for me, it was a question of responsibility." Lessons from the past for the threats of today That sense of responsibility weighs heavily on Prien in today's Germany, where she said antisemitism is no longer confined to the political fringes. "We see rising antisemitism all over the world," Prien said. "They dare to be openly antisemitic. I think it's now more than after the end of World War II. They dare to be openly antisemitic, and that's also in Germany getting stronger and stronger. That has changed. And so we have antisemitic tendencies on the margins, but we also have it in the middle of society." While Germany once appeared to be a model of historical reckoning, Prien said she fears complacency is setting in. After some "honest decades," during which Prien says Germans confronted themselves with the stark realities of their country's history, "now, people are dying. And now we have to find new ways to talk about that." Prien thinks that should include a shift in Holocaust education. She wants German schools to expand from their current focus on the atrocities of World War II to also teach the history of Israel, the cultural contributions of Jewish Germans, and the origins of antisemitism. "Jewish identity is part of German identity," she told CBS News. "Young people need to know that Jews are not only victims. Jewish people are diverse. They have a voice. They are part of this society." Prien said she draws inspiration from figures including Margot Friedländer, a Holocaust survivor who famously coined the phrase: "Be Human." That, Prien said, should be the foundation of any education system in a democracy: teaching empathy and human dignity. But it's not only historical facts and universal dignity that need defending, she said, it's also Germany's democratic fabric. "We are an immigration society," Prien said. "But we're not very good at having fair and equal chances for children who start with more difficult conditions." She sees educational equity and national democratic resilience as intrinsically linked. Prien is now leading efforts to limit mobile phone use in German elementary schools, warning that parents and policymakers have been too naive about the risks of digital exposure for young people. "We are anxious about the real world. We drive our kids to school and into the classrooms but we are not anxious about the stuff online," she said. "That has to change." Asked what message she has for young Jews with political ambitions in Germany today, Prien didn't hesitate: "Stay. Don't pack your luggage. This is a different Germany. This is a country where you can live safely. And it's our job to make that promise true every day."
Local Germany
6 days ago
- Politics
- Local Germany
Germany moves to end family reunification for refugees
Germany's Federal Cabinet in Berlin passed two bills that aim to tighten the country's migration policies on Wednesday – one of which would scrap family reunification for a particular group of migrants. It comes as one of the first bills introduced by Germany's new black-red government to make good on campaign promises to bring about a 'migration turnaround' – essentially a tightening of immigration policies. READ ALSO: Who will be most affected by move to end fast-track German citizenship? The conservative Christian Union parties (CDU/CSU) and the centre-left Social Democrats (SPD) had previously agreed in their coalition agreement to the reform. Specifically, the reform would affect people with subsidiary protection status – this applies to people who do not receive asylum or refugee protection in Germany, but are allowed to stay because they are threatened with political persecution, torture or death in their home countries. Civil war refugees, for example, often fall into this group. DPA reported that according to the draft law, 388,074 people with subsidiary protection were living in Germany at the end of March. About three-quarters came from Syria. Existing family reunification rules have allowed this group to bring close relatives, i.e. married couples, registered civil partners and minor children, to Germany. Since August 2018, approximately 1,000 people per month have entered the country as relatives of people with this protection status, according to government figures. So, in total that amounts to about 12,000 people per year. In comparison, a total of 229,751 people applied for asylum in Germany for the first time last year. Advertisement Justifying the policy change, the interior minister, Alexander Dobrindt (CSU), told Bild, "We have to significantly reduce the pull factors to Germany. This also shows that migration policy has changed." READ ALSO: How long can Germany keep its tighter border controls in place? But migration experts contacted by the Rheinische Post were not convinced. Herbert Brücker from the Institute for Employment Research (IAB) told the Post , "We know from studies that separation from one's own family is psychologically very stressful for refugees and thus also hinders their integration." He added that in terms of reducing the number of migrants coming into Germany, the impact of suspending these reunifications would be minimal.
Local Germany
6 days ago
- Politics
- Local Germany
Who will be most affected by move to end fast-track German citizenship?
Germany's Federal Cabinet in Berlin passed two bills that aim to tighten the country's migration policies around family reunification and citizenship requirements on Wednesday. The bills, which still need to be passed by the Bundestag before becoming law, were put forward by Interior Minister Alexander Dobrindt (CSU). One would end the possibility that highly integrated foreigners can naturalise as German after just three years - instead of the standard five. The conservative Christian Union parties (CDU/CSU) and the centre-left Social Democrats (SPD) had already agreed the reform in their coalition deal. So who will be affected if the bill become law? Then CDU leader, and now Chancellor, Friedrich Merz had announced at the beginning of April that his conservative-led government intended to end the fast track to German citizenship. "The so-called 'turbo naturalisation' after three years won't be taking place anymore," Merz said. "Naturalisation will only be possible after five years," he said. The three-year track for well-integrated immigrants was introduced in mid-2024 as part of a sweeping reform of Germany's citizenship rules. Those reforms also introduced the possibility for non-EU nationals to get German citizenship and become dual nationals - previously this was only available to those with an EU nationality. It also reduced the standard residence requirement for citizenship for non-EU nationals from eight years to five. READ ALSO: Who qualifies for 'special integration' status under Germany's citizenship law? Under those 2024 rules immigrants who had achieved 'special integration status' could apply for German citizenship after living in the country for three years. Essentially to qualify for the fast track process, applicants needed to prove C1 level German language skills, a high level of performance in their studies or work, and that they have contributed to German society with volunteer work. In a previous explainer The Local looked at what was meant by "special integration status" and what applicants needed to do to achieve it. Advertisement We wrote: "In addition to language proficiency, applicants may need to complete German integration courses to qualify. Demonstrating certain work achievements, such as holding full time employment in Germany for some time, may also help. "Ultimately, whether or not you qualify for a fast-tracked citizenship application will likely come down to a decision by Germany's Immigration Office ( Landesamt für Einwanderung). But completing an integration course or education program, achieving a higher German language proficiency level, and securing stable employment will all improve your chances. "Regular volunteering with German charity organisations or exceptional professional achievements will also help your case." 'Reduces the incentive for high skilled migrants to come to Germany' READ ALSO: Who is the new German minister in charge of immigration? Advertisement Critics of the coalition government's move to scrap the turbo naturalisation process say it will only affect the most qualified applicants – in other words a group of immigrants that German politicians claim to want to attract to the country. Herbert Brücker from the Institute for Employment Research (IAB) told The Rheinische Post that the scrapping of the fast track process would "r educe the incentive for highly qualified people to come to Germany." "Naturalisation after three years mainly applies to highly qualified migrants with high incomes," he said. The black-red coalition has said that it wants to continue to encourage skilled labour immigration, which is seen by most political parties as a necessity given Germany's severe and growing shortage of skilled workers . But much of the conservative leaders' rhetoric on immigration has focused on tightening immigration policies in general rather than encouraging new workers to move to, or integrate in, the country. "The withdrawal of accelerated naturalisation negatively affects precisely the group of people we want in Germany," Brücker added. However, Winfried Kluth, the chairman of the Expert Council on Integration and Migration (SVR) believes the withdrawal of the fast track to naturalisation was a sensible move. "It corrects the impression of too easy access to German citizenship," Kluth said. He said that with the three-year path in place some people qualified for citizenship before they qualified for permanent residence.
Globe and Mail
18-05-2025
- Politics
- Globe and Mail
Northern representation in federal cabinet could lead to better outcomes, two territorial premiers say
Two premiers of Canada's territories say they are optimistic that the three ministers who mark significant Northern representation in the new federal cabinet might lead to better co-operation and significant projects being completed. Yukon Premier Ranj Pillai said it will make 'a world of difference' not to have to explain the opportunities and challenges of the North to federal counterparts. Northwest Territories Premier R.J. Simpson agreed, saying they will be able to get right to the issues at hand during meetings. 'The fact that we're going to have people at the cabinet table who have that knowledge and have that background and are able to educate their federal colleagues, is going to go a long way to ensuring that the decisions that are made about Canada and about the North are actually informed,' Mr. Simpson said in an interview Friday. 'To me, that's the most exciting part.' Prime Minister Mark Carney's cabinet, unveiled last week, includes Indigenous Services Minister Mandy Gull-Masty, whose riding includes Northern Quebec; Crown-Indigenous Relations Minister Rebecca Alty, who represents the Northwest Territories; and Northern and Arctic Affairs Minister Rebecca Chartrand, whose riding is in Northern Manitoba. Buckley Belanger, named the secretary of state for rural development, represents Northern Saskatchewan. Mr. Carney was born in Fort Smith, NWT. The Liberal platform in the federal election outlined a number of priorities around Canada's North, including strengthening the presence of Canadian Armed Forces and creating a new Canada-Europe Arctic security co-operation agreement. It also promised to build more northern infrastructure, including energy projects, housing and ports. The cabinet representation is a good first step, Mr. Pillai said, but he is waiting to hear the May 27 Speech from the Throne to hear what the federal government plans for the North. 'The Throne Speech will be incredibly important to see if the platform commitments translate into the key priorities of this government as they start to work,' he said in an interview Friday. The federal government at first opted against a spring budget in favour of what it called a substantive early fall economic statement. On Sunday, Mr. Carney said there will be a full budget this fall. Mr. Pillai – who announced earlier this month that he plans to step down after a new Yukon Liberal leader is chosen – said he would like to see the federal government streamline the environmental assessment process. He is also looking to see what the Throne Speech says about Arctic security and defence, he said. The Premier said he and Mr. Carney spoke Wednesday about the need for bail reform and more health care infrastructure funding. Mr. Simpson also has a list of priorities he would like to see the federal government move forward with, including projects such as the Mackenzie Valley Highway, the Slave Geological Province Road and the Taltson Hydro Expansion Project. He said he would like to see land claims settled and self-government agreements advanced, as doing so would provide more certainty to natural resources companies looking to do business in the territory. Nunavut Premier P.J. Akeeagok has also been posting on X about his recent meetings with federal ministers. He has spoken with Finance Minister François-Philippe Champagne, Ms. Chartrand and Ms. Alty, he said, where he spoke about housing, infrastructure and projects that support Arctic security and sovereignty.
