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Pakistan trade deficit to increase by over $4.16bn in 2024-25: IMF

Pakistan trade deficit to increase by over $4.16bn in 2024-25: IMF

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Pakistan trade deficit to increase by over $4.16bn in 2024-25: IMF

The International Monetary Fund (IMF) has predicted an increase in Pakistan’s trade deficit during the next fiscal year, sources say, as Finance Minister Muhammad Aurangzeb is set to present the 2024-25 budget next week.

Pakistan will see the trade deficit jumping by $4.165 billion in FY25, says the Washington-based lender at a time when two sides held talks in Islamabad for another IMF programme.

Read more: Pakistan sees 2024-25 inflation at 11.8pc, IMF thinks it will be 12.7pc

Although the dialogue did not produce a staff-level agreement, the IMF noted that a significant progress had been made towards reaching a deal for an Extended Fund Facility (EFF).

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The statement was issued after an IMF team, led by mission chief Nathan Porter, concluded discussions with the authorities after arriving in Pakistan on May 13.

“The mission and the authorities will continue policy discussions virtually over the coming days aiming to finalise discussions, including the financial support needed to underpin the authorities’ reform efforts from the IMF and Pakistan’s bilateral and multilateral partners,” Porter said.

Pakistan is likely to seek at least $6b under the new programme and request additional financing from the IMF under the Resilience and Sustainability Trust, which covers climate funding.

Read more: Federal development budget Rs1,200bn, tax collection target Rs12,500bn

Ahead of the discussions, the IMF had warned that downside risks for the Pakistani economy remained exceptionally high.

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“The authorities’ reform program aims to move Pakistan from economic stabilization to strong, inclusive, and resilient growth,” Porter added.

Coming back to the trade deficit, the IMF has estimated that Pakistan’s imports will increase by $5.517bn and the exports by $1.352bn.

As far as the overall figures are concerned, the IMF says Pakistan is likely to have imports worth $60.48bn against the exports of $32.76bn, which translates into a trade deficit of around $27.72bn.

On the other hand, sources in finance ministry revealed that Pakistan was likely to witness a trade deficit of $23.76bn during the outgoing fiscal year, with the country exports projected to reach $31.20bn.

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Various schemes launched to boost agri, livestock sectors: minister

Various schemes launched to boost agri, livestock sectors: minister

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Various schemes launched to boost agri, livestock sectors: minister

 Punjab Minister for Agriculture and Livestock Syed Ashiq Hussain Kirmani said the livestock sector is a top priority of the government, and practical steps are being taken for its development.

He expressed these views during his visit to the sub-campus of the University of Veterinary and Animal Sciences and the Buffalo Research Institute in Pattoki on Saturday.

The provincial minister inspected various departments of the institute, including the calves rearing centre, dairy section, and research laboratories.

The minister on this occasion said that institutions like the University of Veterinary and Animal Sciences are providing such education and training to our youth that they can play their role in the livestock sector in their practical life.

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He said under the leadership of Punjab Chief Minister Maryam Nawaz, the government’s focus is on small farmers with land holdings ranging from one to twelve and a half acres, for whom various schemes are being launched in the agriculture and livestock sectors.

He said according to the vision of the CM, the Livestock Department is paying full attention to increasing milk and meat production and implementing body fattening programmes for livestock.

The minister said that for the first time in Punjab, a scheme called the Chief Minister Punjab Livestock Card has been introduced for small farmers, benefiting 80,000 farmers over two years.

Four lakh animals will be prepared for export through feed and fattening. Kirmani said that the Nili-Ravi breed is the pride of Punjab. The Livestock Department is striving to improve the Nili-Ravi breed of buffaloes in Punjab.

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Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

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Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Former Caretaker Federal Minister for Commerce Gohar Ejaz has said the government has been purchasing electricity from a specific power plant at the rate of Rs750 per unit under IPPs contract deal.

“We have been paying Rs60 per unit due to these corrupt contracts. Out of total IPPs, 52 per cent belongs to the government while 28 per cent is being run by the private people of Pakistan,” Gohar disclosed.

“I have raised my voice against 40 families  and shared the data to save the country from them. It is surprising the government is paying Rs150 billion to a specific power plant which is generating merely less than 15 per cent of its capacity,” he said.

“Most IPPs are running at less than 20 per cent of their capacity while payments of Rs1.95 trillion have been made to these IPPs which have been confirmed.

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The former commerce minister reveled the government had been paying Rs370 billion to three IPPs which were generating less than 15 per cent of their capacity.

He says the solution to the problem is to pay to the IPPs ‘no capacity charges.

Read only: Gohar Ejaz urges Leghari to make IPP payment record public

“The IPPs must be paid for what they generate,” he highlighted.

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Nigeria’s Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery in talks with Libya to secure oil

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Nigeria's Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery is in talks with Libya to secure crude for the 650,000 barrels per day (bpd) plant and will also seek Angolan oil, a senior executive said, as it seeks to overcome problems with domestic supplies.

The $20 billion refinery, built by Africa’s richest man Aliko Dangote on the outskirts of Lagos is Africa’s largest, and is designed to end Nigeria’s dependence on imported fuels because of insufficient refining capacity.

Since Dangote began operations in January, it has been unable to get adequate crude supplies in Nigeria, which, although Africa’s biggest oil producer, is struggling with theft, pipeline vandalism and low investment.

Dangote has resorted to importing crude from as far as Brazil and the United States.

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“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters late on Saturday. “We will talk to Angola as well and some other countries in Africa.”

He declined to give detail about the talks, but said international traders and oil companies were among the biggest buyers of Dangote’s gasoil, much of which was being exported.

“The biggest offtakers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.

Traders and shipping data have shown that Dangote is increasing gasoil exports to West Africa, taking market share from European refiners.

Edwin said Dangote’s oil trading arm was operational, with staff in London and Lagos, to help manage supplies and sell products. Reuters first reported the planned trading arm in March.

Nigeria’s upstream regulator has clashed with Dangote, saying the sulphur content in its gasoil was above the required limits of 200 parts per million (ppm).

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Aliko Dangote has denied that, saying the sulphur level was higher when production started, but had fallen to 88 ppm and would sink to 10 ppm in early August as output rises.

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