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Roya News
4 days ago
- Business
- Roya News
World Bank approves $146 million grant to rebuild Syria's power sector
The World Bank on Wednesday approved a USD 146 million grant to Syria aimed at rehabilitating the war-torn country's electricity sector and supporting its economic recovery after years of conflict. According to a statement by the Bank, the funding comes from the International Development Association (IDA) and will be used to implement the Syria Emergency Electricity Project (SEEP), which seeks to repair damaged infrastructure and improve the stability of the national power grid. The project includes the rehabilitation of high-voltage transmission lines and substations, particularly those connecting Syria regionally with Jordan and Turkey. It will also provide technical assistance for power sector development and support institutional reforms and investment planning. The project will be implemented by Syria's General Electricity Transmission and Distribution Corporation in coordination with an international consultancy, while the World Bank will oversee the process through an external monitoring body 'to ensure compliance with environmental and financial standards,' the statement said. Commenting on the grant, Syrian Finance Minister Yasar Barnieh said electricity is a 'key investment for economic growth, service delivery, and improving livelihoods.' 'This project marks Syria's first cooperation with the World Bank in nearly four decades, and we hope it will pave the way for a broader support program to aid Syria's path toward recovery and sustainable development,' he added, according to the statement. Syria faces a severe electricity crisis as a result of the war, with daily supply limited to two to four hours. Most power stations have been damaged, and production has fallen to around 1,300 megawatts—far below the pre-war capacity of 9,000 megawatts. On May 29, Syria signed a USD 7 billion agreement and memorandum of understanding with a consortium of international companies to develop its energy sector. The deal includes plans to generate 5,000 megawatts of electricity through four gas-fired power plants.
Express Tribune
15-06-2025
- Business
- Express Tribune
K-P's debt surges over Rs43b in one year
Khyber-Pakhtunkhwa's total debt burden has increased by Rs43.59 billion over the past year, official data reveals. At the beginning of the current fiscal year, the province's total debt stood at Rs679.54 billion. However, by July 1, 2025, it is projected to rise to Rs723.13 billion. As of July 1, 2024, the province had no domestic debt, and it remains free from internal borrowing to this day. The entire debt consists of external loans. At the start of the current fiscal year, the external debt was Rs679.54 billion, which is now expected to reach Rs723.13 billion by the beginning of the next fiscal year. Despite the rising debt, the provincial government has repaid Rs30.70 billion in loans during the ongoing fiscal year. Originally, the government had planned to repay Rs67 billion — Rs40 billion in principal and Rs27 billion in interest. However, revised estimates indicate that only Rs55 billion was paid, comprising Rs35 billion in principal and Rs20 billion in interest. For the upcoming fiscal year, the government has planned debt repayments totaling Rs65 billion — Rs40 billion in principal and Rs25 billion in interest. The largest portion of the province's debt is owed to the Asian Development Bank (ADB), totaling Rs323.63 billion, followed by Rs307 billion owed to the International Development Association (IDA). The remaining debt is owed to other international financial institutions. It may be recalled that in 2021, the province's debt stood at Rs295.96 billion. It rose to Rs359.33 billion in 2022, jumped to Rs530.72 billion in 2023, and has now reached Rs723.13 billion — a more than doubling of the debt burden in just four years.
Yahoo
04-06-2025
- Business
- Yahoo
World Bank approves funding for Inga 3 development programme
The World Bank has approved a US$250 million credit from the International Development Association that will help the Democratic Republic of Congo lay the foundations for the sustainable development of Inga 3.
Business Recorder
26-05-2025
- Business
- Business Recorder
Taxation system needs fundamental reform
EDITORIAL: Reportedly, the World Bank (WB) deferred the approval of additional International Development Association (IDA) credit equivalent to $70 million for the Pakistan Raises Revenue (PRR) project. It is concerning that official documents reveal Pakistan's tax system raises little revenue, creates economic distortions, and imposes a disproportionate burden on the poor — largely due to systemic inefficiencies. Alarmingly, the World Bank's analysis shows that Pakistan's fiscal policies have a more pronounced effect on increasing poverty and a weaker impact on reducing inequality compared to other lower-middle-income countries. The WB analysis reflects ground realities. Pakistan's taxation system is heavily skewed towards indirect taxes, while even a significant portion of direct taxes is collected through indirect mechanisms. The result is: even the direct taxes levied in this manner get priced in similar to indirect prices that are passed on and exacerbate the burden of high rates of indirect taxes on the people with disproportionately higher onus on the poor, while the wealthy remain immensely undertaxed. A major share of taxes is collected at the import stage — on average, around 60 percent of GST during FY19–FY24. Additionally, a sizable portion of direct taxes is collected at the import stage. Compliant businesses adjust this against their income tax liabilities, but informal players simply pass the cost on to consumers. Even within the domestic supply chain, taxes intended to target traders and retailers are eventually transferred to the end consumer. These tax inefficiencies are embedded in domestic goods, making them more expensive and reducing the competitiveness of local firms. This is a key reason why Pakistan's exports have failed to diversify beyond traditional sectors. Large exporters with access to FBR (Federal Board of Revenue) officials and the PMO (Prime Minister's Office) get their tax refunds, while smaller or newer players struggle to achieve the same. You cannot export inefficiencies — this is why exports have stagnated, while distortions remain priced into domestic goods and services. The lower the income, the higher the burden — especially when essentials like milk are taxed at one of the highest GST rates in the world. The government has also imposed Super Tax on corporates, which in some cases — particularly in relation to FMCGs — has been passed on to consumers. This is evident from the fact that net margins for these companies have remained stable, while gross margins have increased. Higher income taxes are, in effect, also being passed on through price hikes. Higher taxation partly explains the unprecedented inflation witnessed over the past couple of years. This has pushed poverty levels up — now estimated at a staggering 44 percent. The poor are being strangled while the middle class is sliding into poverty. Meanwhile, the wealthy continue to enjoy rising incomes and pay a far smaller share of taxes leading to widening of the already yawning inequality. Another structural issue is tariff protection, which allows big businesses to protect their margins while raising prices for consumers — placing a heavier burden on low-income segments. Under the current tax structure, achieving productive growth and export expansion is nearly impossible. The system needs fundamental reform. All income — regardless of source — should be treated equally in both letter and spirit. Reliance on indirect taxes must be reduced. Corporate income tax rates should be lowered, and, most importantly, GST rate should be slashed. However, these goals remain pipe dreams without political will and enforcement. There must be a starting point. The government should capitalise on falling inflation, subdued global commodity prices, and improving economic sentiment to initiate long-overdue tax reforms in the FY26 budget. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
Q3 FY25: Punjab's total debt portfolio surges 12pc
LAHORE: The Punjab government's total debt portfolio surged by Rs 20 billion, an increase of 1.2 percent, during the third quarter of the current fiscal year (FY) owing to a forex loss of Rs 17.5 billion and an increase in net debt position amounting to Rs 2.5 billion. As per a report released by the Punjab Finance Ministry for the period between January 1, 2025, and March 30, 2025, at the end of the third quarter, debt stock stood at Rs 1,674.0 billion, out of which Rs 1,672.7 billion is from external lenders and Rs 1.3 billion is from domestic sources. These loans collectively are 2.5 percent of Punjab's Gross State Domestic Product (GSDP). The report observed that Punjab's total debt stock surged from Rs 1,654 billion to Rs 1,674 billion in three months. However, the domestic loans showed a decline from Rs 1.5 billion (reported in December 2024) to Rs 1.3 billion. In contrast, external loans witnessed a gain from Rs 1,652.5 billion (reported in December 2024) to Rs 1,672.7 billion. The report noted that the outstanding debt stock at the end of March 2025 excludes provincial guarantees (awarded to various Punjab government entities) and commodity debt. The outstanding commodity debt stood at Rs 16 billion at the end of March 2025 which is mostly secured by wheat stock procured by the government for commodity operation along with a Federal government guarantee in the form of a Cash Credit Limit (CCL). The debt portfolio predominantly comprises borrowing from external sources with 99.9 percent coming from multilateral agencies and bilateral loans contracted mostly on concessional terms (low cost and longer tenor), procured mainly for infrastructure development and reform support whereas only 0.1 percent of the debt portfolio is domestically borrowed from the federal government, the report stated. Moreover, the report highlighted that the government's external debt is derived mainly from three key sources, with around 55 percent coming from the International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD), 21 percent from the Asian Development Bank, 20 percent from China and 4 percent from other sources. As per the report, the agriculture, irrigation and livestock sector remained the major recipient of government borrowing, as its share constitutes 25 percent of the total outstanding followed by transport and communication 20 percent, education 20 percent, urban and community development at 16 percent, governance 10 percent, health 5 percent and others 4 percent. Moreover, it pointed out that the government's debt portfolio is dominated by foreign currency borrowings, with total exposure residing at 99.9 percent of the debt portfolio. Currency-wise exposure is denominated in USD (69 percent), followed by Special Drawing Rights (23 percent), Japanese Yen (5 percent) and Chinese Yuan (2 percent). Hence, the report noted, the government's debt by its composition remains exposed to foreign exchange risk; owing to this, any change in parity of the dollar and other foreign currencies with the rupee has a pronounced impact on the valuation of Punjab's debt portfolio when translated into rupee terms. The report also noted that overall, a significant portion (73 percent) of the debt portfolio comprises loans contracted at fixed interest rates and is not exposed to changes in international interest rates. However, the floating rate portion (27 percent) remains subject to periodic revision of interest rates since these loans attract floating reference rates (ie, SOFR, TONA, EURIBOR, etc). On debt servicing, it noted that by the end of FY 2024-25, the government is expected to pay Rs 161 billion to service its foreign debts which includes principal and interest due on outstanding debt; out of the projected debt servicing, Rs 120.8 billion was paid during the three quarters of the current fiscal year. Copyright Business Recorder, 2025
