Pakistan has signed seven agreements and three Memorandums of Understanding with Kuwait to attract huge investment in various sectors. According to a press release issued by the PM Office’s Media Wing, the agreements were signed after talks between Caretaker Prime Minister Anwaar-ul-Haq Kakar and First Deputy Prime Minister and Minister for Interior of Kuwait, Sheikh Talal Al-Khaled Al-Ahmad Al Sabah in Kuwait City on 29th November. The leaders also witnessed the signing of seven agreements concluded to attract multi-billion dollars investment from the State of Kuwait in various sectors of Pakistan including Food Security/ Agriculture, Hydel Power, Water Supplies (safe drinking water and supporting mining activities), establishment of Mining Fund to support mineral industry, Technology Zones Development and Mangrove Preservation.

A Financial Services Agreement (FASA) was signed between Privatisation Commission and the Financial Advisor for Divestment of Pakistan International Airlines Corporation (PIACL) in the presence of Minister for Privatisation. The consortium led by Earnest & Young were invited for contract negotiations as Financial Advisor after approval by the Privatisation Commission Board in its meeting on 10th November, 2023. The financial advisor will be responsible for restructuring and carrying out legal, technical and financial due diligence for the proposed divestment together with fair valuation of PIACL. The Minister expressed the hope and desire that the transaction will be carried out successfully despite the challenging economic environment. He assured the Financial Advisor of complete support of all institutions involved in the process to facilitate their work with a view to perform their task seamlessly in best possible interest.

An inquiry by the Competition Commission of Pakistan (CCP) into consumer exploitation by the automobile sector regarding premium payments (on-money), delayed deliveries, increased car prices after booking, etc has come to a standstill. The investigations have been hindered by a court order and non-cooperation of a manufacturer that has not responded to the request for information since November 2018. The objective of the CCP’s inquiry is to determine whether these practices distort competition. The CCP has actively intervened in the automobile sector in the past to safeguard consumer interests and in 2015 the commission imposed heavy fines of Rs140 million on the Pakistan Automobile Manufacturers Authorised Dealers Association (Pamada) for exploiting consumers by manipulating the prices of their products and services.

The International Monetary Fund (IMF) has projected that Pakistan’s external debt may remain around $131 billion by June 2025 – about $8 billion less than the previous forecasts – due to reduced needs for money for debt repayments and a relatively lower current account deficit. The global lender has downwardly revised its external debt projections for two financial years – the ongoing fiscal year 2023-24 and the next financial year 2024-25. These revisions were made at the time of the first programme and are subject to vetting by the IMF management. These estimates would be further reviewed during the next round of talks, likely to take place in February or March next year, depending on the timing of the formation of the next government after the February 8th elections. As opposed to the four-month-old projection of $131 billion external debt by June 2024, the IMF now sees the stocks nearly at $124 billion, said the sources. However, the IMF’s projection seems on the lower end, as Pakistan’s external debt has already increased to $128 billion by September this year, according to the central bank’s data. The reduction in the projected stock of debt is the result of the relatively lower current account deficit and lower repayments of foreign debt due to restructuring by China. The sources said that another key factor behind the lower-than-earlier-projected external debt was that the State Bank of Pakistan (SBP) was now purchasing dollars from the open market, which would lessen the need for foreign loans by the same amount. The central bank has informed the IMF about its purchases of foreign currency from the local market.

The caretaker Federal Minister for Finance, Revenue and Economic Affairs, Dr Shamshad Akhtar, reported positive signs of economic recovery, expecting GDP growth between 2 to 2.5 percent in the fiscal year 2024. She convened a meeting of the Donor Coordination Committee (DCC) at the Ministry of Economic Affairs on Nov 21. The minister highlighted the steadfast and critical support of development partners in supporting Pakistan. Despite external factors impacting Pakistan’s economy, including tightening global financial conditions and rising commodity prices, the successful review of the IMF staff-level agreement was a significant achievement. She emphasized the government’s commitment to macroeconomic adjustment and welcomed ongoing support from development partners. The minister reported positive signs of economic recovery, expecting GDP growth between 2 to 2.5 percent in the fiscal year 2024, up from 0.5 percent in fiscal year 2023. She stated that the government is actively pursuing reforms in fiscal consolidation, monetary policy, currency market sustainability, energy, business environment, and social safety nets. She acknowledged the challenges faced by vulnerable households due to fiscal belt-tightening and highlighted the government’s commitment to addressing poverty and improving economic conditions. Representatives from the World Bank, EU, ADB, USAID, UNDP, Germany, Japan, WFP, IsDB, IFAD, and others expressed congratulations on the successful IMF review. The development partners pledged continued support to the Government of Pakistan and acknowledged the importance of transparency, alignment with government priorities, and the need for timely disbursement of Committed support.

Pakistan Refinery Limited (PRL), one of the country’s largest oil refineries, has signed pivotal license agreements with Honeywell UOP and Axens, global technology providers, for its Refinery Expansion and Upgrade Project (REUP). “Our partnership with Honeywell UOP and Axens marks a significant milestone in our journey towards refinery modernization,” said Managing Director and CEO of PRL. “We believe that these collaborations will play a crucial role in shaping the future of Pakistan’s energy landscape,” he added.

Doubling capacity:
The company shared that the REUP project aims to double PRL’s refining capacity from the current 50kbpd (thousand barrels per day) to 100kbpd and upgrade the existing configuration from hydro skimming to a deep conversion refinery. PRL said that the conversion would enable it to produce value-added products and Euro V-compliant (European emission standards) fuels that are environmentally preferable to legacy automotive fuels.