Pakistan finmin to discuss global finance challenges at international conference in Spain this week
KARACHI: Pakistan's Finance Minister Muhammad Aurangzeb will discuss global finance challenges and meet policymakers from other countries at the Fourth International Conference on Financing for Development (FFD4) being held in Spain this week, the finance ministry said on Monday.
The conference, which is being held from July 1 to 3 in Seville, will bring together leaders, policymakers and international development experts to explore innovative and sustainable financing strategies to accelerate progress toward Sustainable Development Goals (SDGs), particularly for developing and emerging economies, the finance ministry said.
Aurangzeb is scheduled to take part in several key conferences and high-level side events, where he will present Pakistan's take on the prevalent global finance issues and greater cooperation among nations.
'The Finance Minister's participation at FFD4 underscores Pakistan's commitment to promoting innovative financing solutions, strengthening international cooperation, and enhancing the country's voice in global development discourse,' the finance ministry said.
Sharing details of the finance minister's engagements at the conference, the ministry said he will co-chair the multi-stakeholder roundtable on 'Leveraging Private Business and Finance' on July 1 and deliver a keynote address at the International Business Forum Policy Dialogue on 'Accelerating EMDEs Investment: The Role of Credit Ratings.'
The minister is also scheduled to address the General Debate of the conference and participate in the roundtable discussion on 'Revitalizing International Development Cooperation,' the ministry said.
It added that as part of a UNICEF-hosted side event, Aurangzeb will speak on 'Driving Capital Towards Children and Young People: A Dialogue on Innovative and Sustainable Financing for Children.'
It said the finance minister will also attend and speak as the chief guest at a special session titled 'Swapping Out Debt for Development: The DCS Financing Approach,' where he will highlight Pakistan's perspectives on debt transformation and the potential of deposit protection mechanisms to support development finance.
He will also participate as a panelist at the International Business Forum's side event on 'Scaling Up SME Finance,' focusing on enhanced financial inclusion for small and medium-sized enterprises, the ministry added.
'In addition to his conference engagements, the Finance Minister will hold bilateral meetings with key international figures, including Mr. John W.H. Denton AO, Secretary-General of the International Chamber of Commerce, and H.E. Mr. Steven Collet, Vice Minister for Development of the Kingdom of the Netherlands,' the finance ministry said.
Pakistan has been navigating a tricky path to recovery from a prolonged macroeconomic crisis that has weakened its foreign exchange reserves, drained its resources and triggered a balance of payments crisis.
The government says it is committed to the reforms course, which includes privatizing state-owned enterprises incurring losses, widening the tax base and improving its energy sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Pakistan stock market surged by 60 percent year-on-year in FY25— report
ISLAMABAD: Pakistan's benchmark KSE-100 Index rose by 60 percent during the outgoing fiscal year, a top brokerage firm said in its report this week, crediting the stock market's impressive performance to macroeconomic stability, improved credit ratings and 'aggressive' easing of the monetary policy. Pakistan has undertaken a series of International Monetary Fund-recommended structural reforms and fiscal adjustments aimed at stabilizing the economy since it came to the brink of a sovereign default in 2023. These measures have led to increasing macroeconomic stability, reduced inflation and improved ratings from international credit agencies. 'Pakistan's benchmark KSE-100 index is up 60 percent YoY in PKR terms and 57 percent in USD terms in FY25,' Topline Securities, a Karachi-based top brokerage firm, said on Monday. The report said that over the past two fiscal years (FY24 and FY25), the PSX has recorded a total gain of 203 percent in terms of the Pakistani rupee and 206 percent in terms of the US dollar. It credited the Pakistan Stock Exchange's (PSX) rise to macroeconomic stability achieved by the country after it secured a $7 billion International Monetary Fund's (IMF) loan program. Topline Securities said other factors contributing to the 'remarkable rally' at the stock market are the completion of the IMF's first review by Pakistan in March, the central bank's 'aggressive' monetary easing from 20.5 percent to 11 percent, and improvement in the country's credit rating by Fitch from CCC+ to B-. 'As per Bloomberg data, Pakistan's market was the 8th best performer in FY25 with a total USD return of 57 percent,' the report said. 'However, over the cumulative two-year period (FY24 and FY25), it ranked as the best-performing market in the world.' The report noted that average traded volumes in the cash/ready market increased by 37 percent YoY to an average of 631 million shares per day during FY25, adding that the average traded value also jumped by 80 percent YoY to Rs28 billion per day. The report warned Pakistan may face pressure in achieving its revenue targets for FY26 but said it expected the government to pass the IMF's program reviews in a timely manner by meeting the lender's objectives. This, the report said, Islamabad would achieve through cutting development and other non-essential expenditures. Topline Securities said it also expected a credit rating upgrade for Pakistan in the current fiscal year. 'The rating upgrade in our view is quite likely as debt ratios and FX reserves are showing improvements,' the report said. 'With the credit rating upgrade to 'B' category, Pakistan may resort to the international bond market by issuing Eurobond and Sukuks which will further support FX reserves and strengthen the debt maturity profile of the country,' it added. The report pointed out that any developments in Pakistan–US relations under President Donald Trump's administration, along with regional tensions, could 'significantly influence market sentiment.' 'Currently, a ceasefire is in place between India and Pakistan; however, any escalation could negatively affect investor confidence,' it said. It also warned that any further conflict in the Middle East is likely to have broader macroeconomic implications for Pakistan amidst its dependency on oil imports, which could then weigh on the stock market's performance.
Arab News
2 hours ago
- Arab News
Pakistan hikes petrol price by Rs8.36 per liter till next fortnight
ISLAMABAD: Pakistan's government has increased the price of petrol by Rs8.36 per liter and the price of high-speed diesel (HSD) by Rs10.39 per liter till the next fortnight, a notification by the Finance Division said on Monday. The new prices of petroleum products became effective from July 1. As per the notification, the price of petrol has surged from Rs258.43 to Rs266.79 per liter while the price of HSD has increased from Rs262.59 to Rs272.98 per liter after the hike. 'The Government has decided to revise the prices of petroleum products for the fortnight starting today, based on the recommendations of OGRA & the relevant Ministries,' the notification said. The government did not provide a specific explanation for the hike, however, fuel prices in Pakistan are generally influenced by global oil market trends, currency fluctuations and changes in domestic taxes. Fuel costs are revised every two weeks and have a direct impact on inflation. Rising fuel prices increase production and transportation costs, leading to higher prices for goods and services across the board in Pakistan, including food and other essential items. This direct relationship is further amplified by the country's dependence on imported fuel. This is the second consecutive time the government has hiked prices of petroleum products. On June 16, the Finance Division announced increasing fuel prices by raising HSD's rate by Rs7.95 per liter and petrol by Rs4.80 per liter. The development takes place after Pakistan last week approved a 10 percent increase in natural gas prices for industrial users and power plants from July, in line with reforms mandated by the International Monetary Fund (IMF) to ensure cost recovery and tariff rationalization, the Finance Division said.
Saudi Gazette
3 hours ago
- Saudi Gazette
US skips global UN meeting in Spain aimed at raising trillions to combat poverty
SEVILLE — Many of the world's countries gathered in Spain on Monday, with the notable exception of the United States, in a bid to tackle the growing gap between rich and poor nations and try to drum up trillions of dollars needed to close it. "Financing is the engine of development. And right now, this engine is sputtering," United Nations Secretary General Antonio Guterres said in his opening comments at the four-day Financing for Development meeting in Seville. Many countries face escalating debt burdens, declining investments, decreasing international aid and growing trade barriers. Co-hosts the UN and Spain believe the four-day meeting is an opportunity to close the staggering $4 trillion (€3.4 trillion) annual financing gap to promote development, bring millions of people out of poverty and help achieve the UN's badly lagging Sustainable Development Goals for 2030. Even though the gathering comes amid global economic uncertainty and geopolitical tensions, there is hope that the world can address one of the most important global challenges: ensuring all people have access to food, healthcare, education and water. More than 70 world leaders attended, the UN said, along with representatives of international financial institutions, development banks, philanthropic organisations, the private sector and civil society. Spanish Prime Minister Pedro Sánchez told the delegates that the summit is an opportunity "for us to raise our voice in the face of those who seek to convince us that rivalry and competition will set the tone for humanity and for its future." At the last preparatory meeting on 17 June, the United States rejected the outcome document that had been negotiated for months by the UN's 193 member nations and announced its withdrawal from the process and the Seville conference. The Seville Commitment document, approved by consensus, will be adopted by conference participants without changes. It says delegates have agreed to launch "an ambitious package of reforms and actions to close the financing gap with urgency." It calls for a minimum tax revenue of 15% of a country's gross domestic product to increase government resources, a tripling of lending by multilateral development banks and scaling up of private financing by providing incentives for investing in critical areas like infrastructure. It also calls for reforms to help countries deal with rising debt. UN trade chief Rebeca Grynspan recently said "development is going backward" and the global debt crisis has worsened. Last year, 3.3 billion people were living in countries that pay more interest on their debts than they spend on health or education and the number will increase to 3.4 billion people this year, according to Grynspan. And developing countries will pay $947 billion (€805 billion) to service debts this year, up from $847 billion (€720 billion) last year. Angolan President Joao Lourenco, speaking for the African Group at the conference, said debt payment 'consumes more resources than those allocated to health and education combined' for many countries. While US diplomat Jonathan Shrier told the 17 June meeting that "our commitment to international cooperation and long-term economic development remains steadfast," he said the text "crosses many of our red lines." He said those include interfering with the governance of international financial institutions, tripling the annual lending capacity of multilateral development banks and proposals envisioning a role for the UN in the global debt architecture. Shrier also objected to proposals on trade, tax and innovation that are not in line with US policy, as well as language on a UN framework convention on international tax cooperation. The United States was the world's largest single founder of foreign aid before the Trump administration dismantled its main aid agency, the US Agency for International Development (USAID). It drastically slashed foreign assistance funding, calling it wasteful and contrary to the Republican president's agenda. Other Western donors also have cut back international aid. UN Deputy Secretary General Amina Mohammed last week called the US withdrawal from the conference 'unfortunate,' adding that after Seville, "we will engage again with the US and hope that we can make the case that they be part of the success of pulling millions of people out of poverty." On Monday, European Commission President Ursula von der Leyen reaffirmed the bloc's commitment to development financing, saying, "Our commitment is here to stay." — Euronews
