AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: In a significant boost to Pakistan’s economy, the International Finance Corporation (IFC) has announced plans to invest $2 billion annually in the country’s infrastructure and key sectors. The announcement comes amid a flurry of economic developments, including adjustments in fuel prices and discussions on energy reforms.
According to a statement by Taurus Securities Limited, the government has reduced the price of petrol by Re1 and high-speed diesel by Rs4. These changes are part of a broader strategy to stabilize the economy, which includes potential power tariff cuts by the end of June and discussions between the International Monetary Fund (IMF) and government teams on energy reform mechanisms.
The Economic Coordination Committee (ECC) has also made significant decisions, such as approving the transfer of Discos shares to the president and granting membership to the New Development Bank. Additionally, the finance minister will lead the newly established Tax Policy Office as the domestic debt continues to rise, increasing by Rs2.5 trillion over the past six months.
Despite these challenges, there are positive signals for trade, with efforts to upgrade preferential tariffs with Turkiye aiming for a $5 billion trade target. The weekly inflation rate has slowed to 0.98%, providing some relief to consumers.
In the manufacturing sector, HBL and S and P Global have collaborated to launch Pakistan’s first manufacturing Purchasing Managers’ Index (PMI), marking a significant milestone. Meanwhile, Islamabad and Riyadh are working to enhance trade ties, and Aurangzeb has joined global leaders at an IMF-Saudi co-hosted conference focusing on emerging economies.
However, the real estate sector faces delays in revival due to disputes over tax incentives, and the cost of sugar is expected to rise to Rs130 per kilogram during Ramazan. Additionally, there is an ongoing disagreement between the Power Division (PD) and the Central Power Purchasing Agency-Guarantee (CPPA-G) over the gas pricing mechanism for the Engro Powergen plant.
In the stock market, the KSE-100 index experienced a decline, closing 479 points lower at 112,085 with 457 million shares traded. The top performers in terms of price change were LUCK, LCI, and PKGS, while SHEL, HGFA, and PGLC were the top decliners. Trading activity was primarily concentrated in banks, cement, and oil marketing companies (OMCs).
The post IFC to Invest $2 Billion Annually in Pakistan Infrastructure appeared first on Pakistan Business News.