Government unveils climate finance strategy
Pakistan introduced its first National Climate Finance Strategy (NCFS) at the COP29 conference in Baku, on Thursday, outlining a framework to mobilise climate finance for adaptation and mitigation. Federal Finance Minister Muhammad Aurangzeb and Romina Khurshid Alam, Prime Minister’s Climate Change Coordinator, unveiled the strategy, which aims to scale climate-related investments, attract international finance, and enhance domestic financial systems, according to a press statement released by the Ministry of Climate Change & Environmental Coordination.
Aurangzeb described NCFS as a roadmap to secure climate funding and said it is built on principles of transparency, accountability, and inclusivity. “It leverages international, domestic, and private finance,” he noted, adding that the strategy is pivotal to Pakistan’s commitment to the Paris Agreement by engaging the private sector, climate finance, and carbon markets. Aurangzeb also highlighted that NCFS identifies sectoral priorities and financing tools to support climate resilience.
Government awaits IMF stance on mini-budget
As the government awaits the International Monetary Fund’s (IMF) position on the mini-budget, the Minister of State for Finance, Ali Pervaiz Malik, announced on Thursday that tax notices are being sent to Pakistan’s wealthiest 5,000 non-filers, with an expected revenue collection of Rs7 billion.
Following a desk audit of transaction data for 200,000 non-filers, the top 5,000 high-net-worth individuals will receive notices within two weeks, Malik shared at an event hosted by the Policy Research Institute of Market Economy (PRIME). These individuals reportedly own at least three cars, earn Rs100 million in bank account profits, pay over Rs200,000 monthly on credit card bills, and send their children to private schools.
Petroleum sector deregulation fast-tracked
The government has expedited the consultation process for deregulating the petroleum sector and setting uniform gas prices for the processing industry along with wellhead, piped gas and liquefied natural gas (LNG).
Prime Minister Shehbaz Sharif has directed the Petroleum Division to work out proposals for deregulating the petroleum sector and fixing uniform prices for locally produced and imported gas.
Sources told that the Prime Minister’s Office had called a high-level meeting to review a host of critical issues related to the country’s petroleum sector.
Islamabad high court grants temporary relief to banks
A court of law has temporarily barred the government from collecting an additional tax of up to 15 percent from banks, as about a dozen financial institutions approached the court to suspend the tax they were liable to pay after failing to meet the mandatory private sector lending targets in the outgoing year 2024.
Citing the Pakistan Banks’ Association, the global media outlet Bloomberg reported on Thursday “About a dozen banks in Pakistan have secured temporary relief from the Islamabad High Court against a government tax on the lenders if their borrowing to the private sector was lower than the target.”
China-Pak trade conference spurs latest partnerships
The Department of Commerce of Shandong Province (China) recently hosted the China (Shandong)-Pakistan Economic and Trade Matchmaking Conference to strengthen exchanges and cooperation between the two sides in trade cooperation, technology transfer, investment, and factory construction.
The matchmaking conference was held on the side-lines of the Pakistan Industrial Exhibition. Representatives from over 40 enterprises in Shandong Province and more than 100 Pakistani business people gathered to engage in in-depth discussions on multiple topics.
Representatives of enterprises in Shandong Province provided a detailed introduction to their respective advantageous products and technologies, showcasing Shandong’s strong strength in manufacturing, high-tech industries, and other fields. Pakistani business people have shown strong interest in the products and technologies of Shandong enterprises, and the two sides have conducted preliminary negotiations on multiple projects and reached multiple cooperation intentions.
In Pakistan forex reserves surpass 31-month high
Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), increased $84 million, reaching over 31-month high at $11.26 billion in the week ended November 8, 2024.
The foreign currency deposits rose for the 16th successive week, according to the central bank’s weekly update released on Thursday.
The persistent growth in reserves supported the Pakistani rupee in extending gains by Rs0.11 to Rs277.74 against the US dollar in the inter-bank market. The local currency continued its uptrend for the second consecutive day, the SBP reported.
Gold, however, dropped Rs5,500 to a two-month low at Rs266,400 per tola (11.66 grams) in line with the decline in global markets.
The foreign exchange reserves have cumulatively increased over $2.23 billion in the past four months, of which less than half ($1.03 billion) came as a first loan tranche from the International Monetary Fund (IMF) in late September.
FPCCI urges fair access to winter energy relief
Acting president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Qurrat Ul Ain, has called for the government’s recently announced winter electricity relief package to include small and medium enterprises (SMEs) without imposing the requirement of 100,000 units of consumption during the same period last year.
She suggested that the Rs26/kWh tariff should apply to all incremental units consumed beyond that threshold.
She noted that SMEs and newer industries, in particular, cannot meet this consumption condition and will thus remain at a disadvantage compared to larger industrial units.