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Express Tribune
24-05-2025
- Business
- Express Tribune
SBP injects record Rs12.82 trillion
Listen to article In an unprecedented move to help fund the government's fiscal deficit, the State Bank of Pakistan (SBP) injected a record-breaking Rs12.82 trillion into the banking system on Thursday through Open Market Operations (OMOs), marking one of the largest liquidity injections in recent history. Of the total injection, Rs12.42 trillion was provided via conventional reverse repo OMOs. This included Rs11.9 trillion through 21-day loans at an interest rate of 11.03%, and Rs521.1 billion through 7-day loans at 11.10%. An additional Rs396 billion was injected using Shariah-compliant Mudarabah-based OMOs, reflecting the SBP's strategy to cater to liquidity needs in both conventional and Islamic banking sectors. Since the International Monetary Fund (IMF) restricts the government from borrowing directly from the central bank, SBP injects liquidity into commercial banks, which then invest this capital into government treasury instruments, effectively financing the fiscal deficit indirectly, according to sources familiar with the matter. A revenue shortfall by the Federal Board of Revenue (FBR) is contributing to the funding gap, with actual collections hovering around Rs11.8 trillion against the FY2025 target of Rs12.3 trillion, said Sana Tawfik, Head of Research at Arif Habib Limited (AHL). She added that SBP profits of Rs2.5 trillion have already been transferred to the Ministry of Finance in the first nine months of FY2025 as non-tax revenue, while the petroleum levy brought in Rs833 billion during the same period. Meanwhile, the Pakistani rupee gained marginally against the US dollar on Friday, appreciating 0.03% to close at 281.97 in the inter-bank market, up from 282.06 a day earlier. Gold prices surged in domestic markets in line with global trends as geopolitical risks increased. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold per tola jumped Rs3,500 to Rs351,000, while the 10-gram rate increased by Rs3,000 to Rs300,925. Globally, gold prices rallied 2% on Friday, heading for their best weekly performance in six weeks. This rise was triggered by investor anxiety following US President Donald Trump's renewed threats of imposing steep tariffs, including a 50% levy on European goods, and warning Apple Inc. of further tariffs unless it shifted manufacturing to the US. "Gold is up today due to strong safe-haven demand," said Adnan Agar, Director at Interactive Commodities. He noted international gold prices hit a high of $3,364 and hovered around $3,361 per ounce during trading. The market opened at $3,300 and touched a low of $3,286 earlier in the session.
Express Tribune
26-03-2025
- Health
- Express Tribune
K-P hospital renovation project stalls
Despite an advance payment of a significant sum to the Infrastructure Development Authority Punjab (IDAP), the renovation and improvement of infrastructure at district headquarters hospitals in Khyber-Pakhtunkhwa have remained stalled for the past three and a half years. As a result, over Rs1 billion from the Health Department remains tied up due to the delay. The K-P Auditor General has recommended an inquiry and action against the officials responsible for the project's failure. Official sources informed The Express Tribune an agreement was signed between K-P's Health Department and IDAP on June 30, 2021, under which the project was to be executed in two phases. Phase I involved the renovation and repair of 13 DHQ hospitals, while Phase II covered non-teaching hospitals. For this purpose, Rs4.37 billion was allocated for Phase I and Rs11.9 billion for Phase II. Under the agreement, IDAP was required to begin work immediately after receiving 25% of the advance funds. However, despite the Health Department paying Rs1.80 billion, no progress has been made in 3.5 years. The Health Department's financial report for 2023-24 confirmed that the advance payment had been made. In response to the prolonged delay, the Project Steering Committee recommended terminating the project in its meeting on May 3, 2024. Sources cited government disinterest, financial crises in recent years, and poor planning by health department officials as key reasons for the project's failure. Meanwhile, IDAP has refused to return the allocated funds. The Auditor General has urged strict action against those responsible. In a related development, the K-P government has decided to audit the funds of all Medical Teaching Institute (MTI) hospitals and has requested detailed expense reports from them. Officials revealed that preparations are underway to review the accounts, expenses, and financial matters of MTI hospitals since 2018. Once completed, the audit findings will be presented before the cabinet. Additionally, a review of amendments to the MTI Reforms Act 2015 is expected. This will include an assessment of recruitments, funds, vacancies, and projects under the act. Last year, The Express Tribune reported that the health department was facing a severe shortage of doctors and had decided to recall all civil servant medics from the MTIs. Official sources informed The Express Tribune that the health department had solicited information from ten MTI hospitals, including Lady Reading Hospital Peshawar (LRH) regarding this matter.
