Business

Pakistan, Saudi Arabia ink agreement to finance $1bn oil derivatives

Published

1 year ago

Farwa

Pakistan and the Kingdom of Saudi Arabia inked an agreement on Thursday to finance oil derivatives worth $1 billion, Economic Affairs Ministry confirmed.

The development comes amid news reports that Saudi Arabia is augmenting plans to increase the amount of investment and deposit in cash-strapped Pakistan which is struggling with a worsening currency crisis.

According to an official statement, the agreement was inked by Economic Affairs Secretary Dr Kazem Niaz, and Saudi Fund for Development (SFD) Chief Executive Officer (CEO) Sultan bin Abdulrahman Al-Murshed.

Secretary Ministry of Economic Affairs Dr. Kazim Niaz and CEO of the Saudi Fund for Development (SFD) Sultan Abdulrahman Al-Marshad signed an agreement to finance oil derivatives worth USD 1 billion to Pakistan – 12-01-2022. pic.twitter.com/0VjJgHEAvz
— Economic Affairs Division, Government of Pakistan (@eadgop) January 12, 2023

Dr Niaz, speaking on the occasion, revealed that the pact was an extension of previously signed agreements in 2019 and 2021 valued at $4.44 billion to finance oil derivatives in Pakistan.

Since its establishment, he said, the SFD had supported more than 40 projects and programmes in different development sectors valued at approximately $1.4 billion.

‘All the programmes were aimed at helping the country achieve its sustainable development goals and build a prosperous future,” he added.

For his part, SFD CEO said that the agreement emphasised the Kingdom of Saudi Arabia’s commitment to continue supporting the brotherly Islamic Republic of Pakistan.

Saudi Arabia mulls increasing Pakistan deposit

Islamabad’s efforts to shore up the country’s forex reserves with the help of Saudi Arabia — amid a worsening currency crisis — have started paying off as Riyadh is considering ‘beefing up’ its deposit in the State Bank of Pakistan (SBP) from $3 billion to $5 billion.

According to Saudi media, Crown Prince Mohammad Bin Salman earlier this week directed his financial officials to study increasing the Pakistan deposit by $2 billion.

The development came after the Saudi crown prince’s meeting with Chief of Army Staff General Asim Munir, who was on his first overseas official visit to the kingdom.

Last month, the SFD extended its term for the $3 billion deposit in the SBP which was set to mature on December 5.

The SBP had signed an agreement with the SFD in November 2022 to receive $3 billion, to be placed in the central bank’s account with an aim to improve its foreign exchange reserves.

Business

Pakistan’s gold prices continue to decline.

Published

13 hours ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

13 hours ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

13 hours ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.