Latest news with #Rs282
News18
5 hours ago
- Business
- News18
IMF asks Pakistan to remove finance secretary from central banks board
Agency: PTI Last Updated: Islamabad, Aug 19 (PTI) The IMF has asked Pakistan to remove the finance secretary from the central bank's board and also recommended amending another law to revoke the federal government's authority to order inspections of commercial banks, a media report said on Tuesday. The global lender has further asked Islamabad to immediately fill two vacant positions of deputy governors at the State Bank of Pakistan (SBP). The International Monetary Fund (IMF) has recommended an amendment to the SBP Act to remove the finance secretary from the board of directors, The Express Tribune newspaper reported, quoting sources. This would be the second attempt to exclude the federal secretary in the past three years, according to the paper. The IMF's recommendations, part of the Governance and Corruption Diagnosis Mission report, appear aimed at completely ending federal government oversight, despite the government being the 100 per cent shareholder of the SBP, the paper said. In 2022, under IMF pressure, the government gave absolute autonomy to the SBP and removed the finance secretary's voting rights on the board. According to the existing law, the finance secretary is a board member 'without the right to vote." Key decisions such as exchange rate determination or interest rate setting are not made by the SBP board but by the monetary policy committee. On Monday, Finance Minister Muhammad Aurangzeb said that the government has no role in setting interest rates, which fall under SBP's mandate. He added that the exchange rate would continue to be determined by the market. The rupee further appreciated on Monday to Rs282 per dollar. Aurangzeb said the IMF's review mission would soon arrive under the ongoing 37-month programme. The mission is expected in the third week of September for talks on the third loan tranche of $1 billion. The IMF has argued that removing the vote-less secretary from the SBP board would further strengthen independence at an already highly autonomous central bank. However, sources said the government has not yet accepted the IMF's recommendation, and discussions remain open. The SBP board includes the governor and eight non-executive directors, with at least one from each province. The board oversees SBP operations, administration, and management and has full access to the bank's activities. The IMF has also recommended that Pakistan publish the reasons for the removal of governors, deputy governors, non-executive directors, and monetary policy committee members, sources added. The lender has also pressed for immediately filling the two vacant deputy governor posts to ensure collective decision-making at the central bank. Of three sanctioned positions, only one is filled, as Saleem Ullah is currently deputy governor for finance, inclusion, and innovation. No regular deputy governor is in place for the most important matters, including banking, exchange rate, and monetary policy, etc. Former deputy governor Inayat Husain has been serving in an acting capacity since his tenure ended in November last year. His dual nationality has created hurdles in his reappointment. The prime minister has already constituted a committee to explore amending the law to allow dual nationals to serve as deputy governors. The finance ministry had earlier suggested several amendments to the SBP Act, including one allowing dual nationals to be appointed deputy governors. The law ministry has already vetted the proposals. By law, deputy governors must be appointed by the federal government after consultation between the finance minister and the SBP governor, from a panel of three candidates recommended by the governor in order of merit. Sources said the name of Nadeem Lodhi had been finalised for one of the two vacant posts, but cabinet approval has not yet been secured. The SBP law requires that vacancies for governor, deputy governors, non-executive directors, and external members of the monetary policy committee be filled within 30 days. The federal government violates this requirement. The IMF has now recommended that such positions should never remain vacant for extended periods. Sources said the IMF has also suggested amending the Banking Companies Ordinance of 1962 to end the federal government's power to instruct the SBP to inspect commercial banks. The proposal is aimed at ensuring further independence for the central bank. Pakistan is currently implementing a $7 billion IMF loan package, and the payment of each instalment of about $1 billion requires fulfilment of conditions agreed with the lender. The loan was agreed last year for a period of 39 months for its complete disbursement to Pakistan. PTI SH ZH ZH First Published: August 19, 2025, 16:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments...
Time of India
23-07-2025
- Business
- Time of India
Tilaknagar Industries acquires Imperial Blue from Pernod Ricard
Tilaknagar Industries has signed an agreement to acquire the Imperial Blue whisky brand in India from France's Pernod Ricard for about Rs4150 crore in an all-cash deal, entering the whiskey segment which accounts for about two-thirds of India's spirits market. Tilaknagar, which sells Mansion House brandy, said the deal includes Rs282 crore which will be paid in four years after completion of the transaction. It also said it will raise upto Rs6500 crore, including upto Rs2,500 crores in equity or equity linked securities and the remaining in debt securities in one or more tranches. Explore courses from Top Institutes in Please select course: Select a Course Category Cybersecurity Degree Design Thinking Product Management healthcare Data Science others CXO Healthcare Others PGDM Data Science Data Analytics Digital Marketing Technology Public Policy Artificial Intelligence Management Operations Management Finance MBA MCA Leadership Project Management Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details Pernod said the transaction to part with India's third biggest whiskey brand is due to its continuous assessment of its strategic opportunities, and the sale will enable the business to fully tap into premiumization trends and support sustained, profitable growth. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Morocco: Unsold Sofas Prices May Surprise You (Prices May Surprise You) Sofas | Search Ads Search Now Undo 'By exiting the admix value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumization and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands," said Jean Touboul, CEO of Pernod Ricard India. The proposed sale by the world's second biggest distiller is part of a broader global restructuring exercise initiated by Pernod Ricard—owner of best-selling brands like Absolut vodka and Jameson whisky—since last year. This includes a portfolio reshuffle, job cuts, and splitting its global brands into two blocks. Imperial Blue's sales have lagged in recent years as many Indian consumers moved to upgrade to premium brands over mass or prestige offerings. Live Events "With the acquisition, the company will become one of the leading players in brandy and whiskey, the two largest IMFL categories. Imperial Blue shall serve as a base for the company's premium portfolio strategy. This acquisition would also strengthen the distribution network of the company," said Tilaknagar in a statement. Imperial Blue operates in the 78-million-case per year deluxe whisky category, a bridge between the mass and premium segments. It sold 22.2 million cases in 2024, a meagre 0.5% from the year before with revenues of Rs3067 crore. A blend of Indian grain spirits and imported Scotch malts, the brand was launched in India in 1997 by Seagram, which was acquired by Pernod in 2002. With a market share of 8.6%, Imperial Blue trails McDowell's and Royal Stag in 2024, as per latest IWSR report. For Pernod, it accounts for one-third of its total whisky sales by volume globally even though sales have been declining steadily over the past few years, falling 4% between 2019 and 2024. With annual sales of 260 million cases in 2024, India is the largest whisky market in the world by volume. "This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India's outstanding growth," said Alexandre Ricard, Chairman and CEO of Pernod Ricard. The company's Indian business also outpaced that of China to be the parent's second-largest market globally after the US. Founded in 1933 as Maharashtra Sugar Mills, Amit Dahanukar-led Tilaknagar is among India's ten largest distillers. Earlier this week, the company was named in a chargesheet filed by the Andhra Pradesh police in an ongoing inquiry into alleged malpractices and kickbacks of estimated Rs 218 crore.
Time of India
23-07-2025
- Business
- Time of India
Tilaknagar acquire Imperial Blue from Pernod Ricard
Tilaknagar Industries has signed an agreement to acquire the Imperial Blue whisky brand in India from France's Pernod Ricard for about Rs4150 crore in an all-cash deal, entering the whiskey segment which accounts for about two-thirds of India's spirits market. Tilaknagar, which sells Mansion House brandy, said the deal includes Rs282 crore which will be paid in four years after completion of the transaction. It also said it will raise upto Rs6500 crore, including upto Rs2,500 crores in equity or equity linked securities and the remaining in debt securities in one or more tranches. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM Public Policy others Healthcare Data Science MBA Degree Operations Management Cybersecurity Digital Marketing Management Others Data Science Technology Project Management MCA CXO Product Management Leadership Design Thinking healthcare Data Analytics Finance Artificial Intelligence Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details Pernod said the transaction to part with India's third biggest whiskey brand is due to its continuous assessment of its strategic opportunities, and the sale will enable the business to fully tap into premiumization trends and support sustained, profitable growth. 'By exiting the admix value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumization and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands," said Jean Touboul, CEO of Pernod Ricard India. The proposed sale by the world's second biggest distiller is part of a broader global restructuring exercise initiated by Pernod Ricard—owner of best-selling brands like Absolut vodka and Jameson whisky—since last year. This includes a portfolio reshuffle, job cuts, and splitting its global brands into two blocks. Imperial Blue's sales have lagged in recent years as many Indian consumers moved to upgrade to premium brands over mass or prestige offerings. "With the acquisition, the company will become one of the leading players in brandy and whiskey, the two largest IMFL categories. Imperial Blue shall serve as a base for the company's premium portfolio strategy. This acquisition would also strengthen the distribution network of the company," said Tilaknagar in a statement. Imperial Blue operates in the 78-million-case per year deluxe whisky category, a bridge between the mass and premium segments. It sold 22.2 million cases in 2024, a meagre 0.5% from the year before with revenues of Rs3067 crore. A blend of Indian grain spirits and imported Scotch malts, the brand was launched in India in 1997 by Seagram, which was acquired by Pernod in 2002. With a market share of 8.6%, Imperial Blue trails McDowell's and Royal Stag in 2024, as per latest IWSR report. For Pernod, it accounts for one-third of its total whisky sales by volume globally even though sales have been declining steadily over the past few years, falling 4% between 2019 and 2024. With annual sales of 260 million cases in 2024, India is the largest whisky market in the world by volume. "This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India's outstanding growth," said Alexandre Ricard, Chairman and CEO of Pernod Ricard. The company's Indian business also outpaced that of China to be the parent's second-largest market globally after the US. Founded in 1933 as Maharashtra Sugar Mills, Amit Dahanukar-led Tilaknagar is among India's ten largest distillers. Earlier this week, the company was named in a chargesheet filed by the Andhra Pradesh police in an ongoing inquiry into alleged malpractices and kickbacks of estimated Rs 218 crore.
Express Tribune
06-06-2025
- Business
- Express Tribune
Caution urged on foreign advice
Listen to article Amid Pakistan's heavy reliance on foreign consultants to run its economy, an independent think tank has advised the government to choose a path between a truly home-grown economic model and a foreign lender-driven policy agenda. The Tola Associates policy advice came in the middle of a major shift in national tariff policy, where foreign consultants are advising a complete opening of the economy. However, the concerned economic ministries oppose this due to potential adverse implications for businesses and jobs. Pakistan's economy is currently bipolar, and policymakers must choose between home-grown recipes and the International Monetary Fund's (IMF) policy prescriptions, according to the report released on Thursday. The report suggests that home-grown policies should aim to keep policy rates closer to the inflation rate to reduce debt servicing, maintain the currency at its true value, stimulate growth, and reduce the fiscal deficit. In contrast, the IMF's policies focus on monetary tightening, import-led growth, and tariff reduction, which have consequently led to high inflation and suppressed economic growth, the report stated. The government has agreed on a plan to lower import tariffs by almost half over the next five years. In the first year alone, this would result in a Rs200 billion negative impact on revenues. While the IMF has no objection to the steep reduction in import revenues, it is unwilling to allow much-needed relief to all segments of the salaried class. The relief for the salaried class may not even cost Rs100 billion, nearly half the fiscal cost of liberalising the economy — a move that also carries employment risks. The Tola Associates report stressed that next year's economic strategy must prioritise introducing targeted policy measures for industrial development. These include rationalising interest rates for industrial borrowers, reducing electricity tariffs, abolishing export financing schemes on semi-finished and finished goods, and implementing a balanced tariff structure on raw materials. Encouraging import substitution and offering performance-based subsidies — particularly in key sectors such as textiles, leather, and engineering goods - is critical, the report added. However, past experiences suggest that import substitution policies have shown limited results, and the country must shift toward implementing export-focused policies. The report also highlights how efficient crop production could enhance exports by an estimated $2.2 billion. Increasing cotton yields, boosting rice exports, and reducing input costs to return to wheat surplus status were among the key recommendations. Based on its estimates, the report stated that if the current account deficit stays within the government's FY25 target of 0.4% of GDP, the exchange rate should ideally stabilise around Rs272 per US dollar. Including incorporated valuation adjustments for FY25, the rate should not exceed Rs282, it added. However, market fundamentals indicate that the rupee is under pressure, with importers struggling to find adequate dollar liquidity at reasonable rates. Major players like Pakistan State Oil (PSO) and Pak Arab Refinery Company (PARCO) are being forced to pay higher interbank rates. According to Tola Associates' estimates, Pakistan can achieve a current account surplus of 0.1% of GDP by improving cash crop yields in the next fiscal year. If that surplus is realised, the currency could appreciate by up to Rs23, leading to a 4.6% drop in inflation. This, in turn, would create room to reduce interest rates, cut debt servicing costs, and open up significant fiscal space, the report added. Pakistan can substantially bring down interest rates in the next fiscal year to single digits. A 1% reduction in the policy rate could lower the debt servicing cost by Rs515 billion. Aligning interest rates with inflation could allow for a 4.6% rate cut, saving up to Rs2.4 trillion in interest expenses, according to the report.
Express Tribune
01-06-2025
- Business
- Express Tribune
Banks delay import payments
The price of local currency has started increasing gradually in both open and interbank markets Listen to article Commercial banks have once again started delaying import-related payments due to the limited availability of foreign currency, caused by major foreign debt repayments due before the end of June and the need to meet the reserves-related condition set by the International Monetary Fund (IMF). The situation warrants that the central bank either completely stop purchasing foreign currency from the markets or drastically reduce it to improve the supply of dollars, according to background discussions with multiple bankers. The State Bank of Pakistan (SBP) on Saturday did not provide an official version on the matter. Banking and market sources told The Express Tribune that some major and small banks were delaying import-related payments by two to three weeks, particularly in cases of open-account and contractual imports. The banks were also providing dollars for the clearance of letters of credit (LCs) to some major importers at rates higher than the interbank rate, they added. Because of the situation, the spread between the interbank and open market has started widening, and a few banks have again been compelled to ration the provisioning of dollars. The interbank rate was over Rs282 to a dollar, while in the open market the dollar was available close to Rs285, said banking and currency market sources. The situation is not as bad as the 2022 crisis, and it is high time that the central bank took notice to avoid any speculation in the market, said a senior executive of a private bank whose institution was also facing the challenge of ensuring sufficient dollar provision for import payments. Concerned authorities said on condition of anonymity that the local currency did come under pressure in both open and interbank markets. However, they said that it was a temporary phenomenon and would end soon. Pakistan State Oil (PSO) and Pak Arab Refinery Limited (PARCO) were also facing issues in getting the right price of the dollar for making payments against their imports. The sources said that PSO paid about Rs3 higher for its latest import payment compared to the previous contract. This would translate into a higher petrol price for consumers. Pakistan is scheduled to make $2.4 billion in foreign commercial debt repayments to China next month, in addition to payments to some other multilateral lenders. The foreign exchange reserves stand at $11.5 billion, which is not enough to make these payments and at the same time retain reserves in double digits. The IMF has also further tightened the end-June Net International Reserves (NIR) target to negative $7.5 billiona further tightening of $1.1 billion compared to the target agreed upon in September last year. To meet these targets and foreign debt repayments, the central bank is still purchasing dollars from the market. The end-March negative NIR target was $10.2 billion, which means the central bank needs an additional $2.7 billion cushion just to meet the end-June target, according to the IMF report. Another senior executive at a bank said that export and remittance proceeds were sufficient to cover imports, but the challenge lay with the financial account, which was putting pressure on the exchange rate. He said the central bank should refrain from buying dollars for a few weeks to ease market conditions. Representatives of the banking industry have already brought the issue of the emerging shortage of foreign currency to the attention of the central bank, according to those privy to the discussions. Despite the IMF programme, Pakistan has not received enough foreign loans this time. Central Bank Governor Jameel Ahmad said a few months ago that the SBP had bought over $9 billion from the local market in 2024 to build reserves. The SBP spokesperson did not respond to questions about the reasons behind the recent pressure on the rupee-dollar parity, or whether there was a backlog of about $1 billion in deferred import-related payments due to the dollar shortage. He also did not respond to questions regarding the increasing spread between the interbank and open market rates or the strategy the central bank is adopting to address the situation. The buying of dollars from the market has helped reduce foreign debt by $800 million during the first nine months of this fiscal year. A stable rupee has also played a major role in bringing down the inflation rate to low single digits. However, exporters complain that tight control over the dollar price is eroding their competitive edge, and they argue that market forces should be allowed to play their role. There is also a seasonal increase in demand for foreign currency due to Hajj, which central bank authorities expect will now subside.
