ISLAMABAD, March 26: Pakistan’s Economic Coordination Committee (ECC) has officially approved $6.77 billion in funding for the first phase of the Reko Diq copper and gold mining project in Balochistan, marking a critical milestone for one of the country’s largest and most significant mining ventures. This funding decision is set to advance the development of the project, which has faced several years of delays due to complex legal and financial challenges. The financing plan for Phase 1 includes $5.57 billion allocated for capital expenditure, focusing on mine development and infrastructure. An additional $1.2 billion is earmarked for interest payments on…
Author: Ahmad Mukhtar
ISLAMABAD, March 26: A formal feasibility study has confirmed that the Reko Diq project in Balochistan holds over $60 billion worth of copper and gold reserves at current market prices. As a result, three state-owned energy companies have significantly increased their financial commitments to the project, now totaling nearly $1.9 billion. The three state-owned enterprises (SOEs) involved—Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Government Holdings (Pvt) Ltd (GHPL)—had initially pledged about $300 million each. This amount has now been raised to $627 million each, with the total combined funding rising to around $1.88 billion from…
ISLAMABAD, March 26: The International Monetary Fund (IMF) has successfully reached a staff-level agreement with the Pakistani authorities on the first review of the 37-month Extended Fund Facility (EFF) and on a new 28-month arrangement under the Resilience and Sustainability Facility (RSF). This agreement highlights Pakistan’s continued efforts to stabilize its economy, reduce public debt, and address its vulnerabilities, particularly those related to climate change. Economic Stabilization Progress: Pakistan has made significant advancements in stabilizing its macroeconomic situation over the past 18 months, managing to reduce inflation to its lowest level since 2015, improving financial conditions, and narrowing sovereign spreads.…
ISLAMABAD, March 25: Pakistan’s trade deficit with nine of its neighboring countries has widened by 36.09% during the first eight months of fiscal year 2025 (FY25), reaching $7.36 billion, compared to $5.41 billion during the same period last year. The trade gap with China, India, and Bangladesh has notably expanded. Higher imports from these countries have been a significant contributor to the rising deficit. Despite growth in exports to Afghanistan, Bangladesh, and Sri Lanka, the overall trade balance with these countries worsened. Exports and Imports Overview: Pakistan’s total exports to the nine countries, including Afghanistan, China, Bangladesh, Sri Lanka, India,…
ISLAMABAD, March 25: Ministry of Finance is recruiting six professionals to help operationalize the newly established Tax Policy Office (TPO), which will directly report to the finance minister. This move is in line with Pakistan’s commitments under the $7 billion Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF). Pakistan government is taking step toward Tax Policy Separation with creation of TPO. After years of delays, the Pakistani government has initiated the separation of tax policy from revenue administration by establishing the Tax Policy Office (TPO), which will report directly to Federal Minister for Finance and Revenue Muhammad…
ISLAMABAD, March 25: However, high frequency indicators—such as positive growth in cement sales, increased automobile production, and higher imports—along with an easy monetary policy, suggest a potential uptick in production if demand conditions remain supportive. Inflation is anticipated to remain within the range of 1.0-1.5 percent for March 2025 and inching up to 2.0-3.0 percent in April 2025. This is anticipated in the Finance Ministry released Tuesday, monthly, Economic Update and Outlook for March 2025. It further states, that the recent MoM growth in LSM signals resilience, while the YoY decline highlights underlying weaknesses that may continue to weigh on industrial performance.…
Islamabad, March 25: The Pakistan Meteorological Department (PMD) has issued a drought alert for Sindh, Balochistan, and Punjab due to a significant shortage of rainfall, exacerbating drought conditions in these areas. Key Points from the Drought Alert: Drought Conditions: The drought conditions are expected to persist in Sindh, southern parts of Balochistan, and the lower eastern plain areas of Punjab. While central and upper parts of the country have benefited from recent rainfall spells, the affected areas in the southern and eastern regions continue to suffer from a lack of precipitation. Temperature Anomaly: The average temperature in the lower half of…
Islamabad, March 25: The National Electric Power Regulatory Authority (Nepra) has formally launched hearings to approve the revised agreements between Independent Power Producers (IPPs) and the Government of Pakistan (GoP). These agreements are expected to lead to a reduction in consumer tariffs, benefiting the public with a potential decrease in electricity rates. Key Points from the Nepra Hearing: Hearing Session Details: The hearing was led by Nepra Chairman Chaudhry Waseem Mukhtar, with participation from other board members including Member (Tech) Rafique Ahmad Shaikh, Member (KPK) Maqsood Anwar Khan, and Amina Ahmed. The session began with a briefing from the Central Power…
ISLAMABAD, March 25: Deputy Prime Minister and Foreign Minister Ishaq Dar expressed strong support for continuing diplomatic engagement with Afghanistan to resolve outstanding issues, particularly those related to security and trade. Dar emphasized the importance of sustained dialogue between Pakistan and the interim Afghan government to address Pakistan’s concerns and foster better bilateral relations. Key Points from the Meeting: Sustained Dialogue: Ishaq Dar highlighted the need for ongoing talks with the Afghan government, focusing on addressing Pakistan’s security concerns and enhancing bilateral relations. The meeting was attended by senior foreign ministry officials, including Foreign Secretary Amina Baloch. Talks with Kabul on…
Islamabad, March 25: Mari Energies Limited, previously known as Mari Petroleum Company Limited (MARI), has officially commenced hydrocarbon production from its Shewa discovery in the Waziristan Block, located in Khyber Pakhtunkhwa (KP). This announcement was made via a notice to the Pakistan Stock Exchange (PSX) on Tuesday. Key highlights of the development: Production Details: The gas and condensate production has started under the Extended Well Testing (EWT) phase, following the completion of the gas transmission pipeline by Sui Northern Gas Pipelines Limited (SNGPL). Current production levels include 26 million standard cubic feet per day (MMSCFD) of gas and 244 barrels…
