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Express Tribune
7 hours ago
- Business
- Express Tribune
SBP injects Rs12.38 trillion
Listen to article The State Bank of Pakistan (SBP) injected Rs12.38 trillion into the financial system through two separate Open Market Operations (OMOs) on June 27, 2025, to manage the liquidity vacuum caused by Eid-related cash demand and fiscal needs of the government constrained by International Monetary Fund (IMF) conditions. The larger of the two was a conventional reverse repo OMO, in which SBP accepted Rs12.20 trillion out of Rs12.42 trillion offered by banks at a rate of 11.07% for a seven-day tenor. A total of 34 bids were accepted out of 36 received, with rates ranging between 11.20% and 11.04%. Additionally, a Shariah-compliant Mudarabah-based OMO saw the SBP accept Rs178 billion out of Rs326 billion offered at a slightly higher rate of 11.13% for the same tenor. Only two bids were received and accepted, showing limited participation from Islamic financial institutions. Analysts attributed the rise in OMO stock to higher currency in circulation during Eid (a temporary effect) and a lag between debt repayments and incoming inflows. They expect OMO levels to ease as inflows materialise in the coming weeks. In the currency market, the Pakistani rupee slightly weakened against the US dollar on Friday, falling by 0.02% in the interbank market. By day's end, the rupee closed at 283.72, down five paisas from Thursday's close of 283.67. Meanwhile, gold prices in Pakistan also saw a steep decline, mirroring a global drop of nearly 2% after confirmation of a US-China trade agreement boosted investor risk appetite and reduced demand for safe-haven assets. According to the All-Pakistan Gems and Jewellers Sarafa Association, the per tola gold price dropped by Rs5,000 to Rs351,000, while the 10-gram price fell Rs4,287 to Rs300,925. This came after gold gained Rs1,335 per tola the previous day, reaching Rs356,000. Adnan Agar, Director at Interactive Commodities, said gold hit a new intra-day low on Friday. "Gold touched a low of $3,255 and is now trading around $3,276 after opening at $3,320," he said, adding that, "The trend remains bearish, with potential downside targets near $3,213 before any short-term rebound." He added that confirmation of a US-China trade deal has dampened gold's momentum, and if similar agreements emerge with other major economies like the European Union, gold could revisit levels between $3,000 and $2,800 in the medium term. "Sentiment is currently tilted towards the downside, and the market may continue to face pressure into next week," Agar said.
Business Recorder
7 hours ago
- Business
- Business Recorder
Fulfilling IMF conditions was no easy task, says CM Maryam
LAHORE: Punjab Chief Minister Maryam Nawaz stated that the Punjab government's decision not to impose a single new tax in the provincial budget is nothing short of a miracle. She emphasized that instead of introducing new taxes, the government expanded the tax net. She also announced that Punjab's domestic debt, which had persisted for the last 30 years, had been reduced to zero. Addressing the Punjab Assembly, CM Maryam Nawaz said fulfilling the International Monetary Fund's (IMF) conditions while meeting the province's constitutional responsibilities was no easy task. She remarked that running over 150 development projects and allocating Punjab's resources for public welfare made achieving the IMF's stringent surplus target extremely challenging—yet her administration succeeded. Maryam Nawaz highlighted that unlike previous governments, her administration did not merely announce projects but also implemented Punjab's largest-ever annual cash-backed development program. She revealed that last year's Annual Development Program (ADP) was worth Rs. 840 billion, but due to successful project execution and public demand, it was increased to over Rs. 1 trillion. Out of this, Rs. 1.013 trillion had already been spent on public welfare, marking the highest allocation in Punjab's development history. She noted that Punjab's fund utilization, previously at Rs. 585 billion, had now reached Rs. 1,100 billion. The Chief Minister also expressed gratitude to the Members of the Provincial Assembly (MPAs), acknowledging that their support was instrumental in these achievements. Chief Minister Maryam Nawaz added that those who once called for the political ouster of former Prime Minister Nawaz Sharif had now been sidelined themselves—not by others, but by their own poor performance. 'Those who chanted 'minus Nawaz' are now themselves 'minus.' Even Aleema Khan has acknowledged this,' she said, referring to recent remarks by Khan's sister. Taking a firm stance against her opponents, the CM stated that false promises to South Punjab had long been a political tactic to form and dismantle governments. 'Unlike previous governments, we have moved beyond slogans. We are delivering on our promises,' she declared, announcing the launch of the province's largest clean drinking water project, starting in South Punjab. Her remarks were met with protests and noise from the opposition benches. Responding calmly, she said, 'Let them protest. I respect their democratic right.' Maryam also presented what she termed a 'historic' and 'tax-free' provincial budget of Rs. 5,335 billion, praising Finance Minister Mujtaba Shuja-ur-Rehman and Finance Secretary Mujahid Sherdil for crafting a budget aligned with Nawaz Sharif's economic vision. Referencing military and diplomatic achievements, she congratulated the nation on 'the victory over India' and commended the armed forces and Prime Minister Shehbaz Sharif for their leadership. She also condemned Israel's recent strikes on Iran, reaffirming Pakistan's commitment to peace and solidarity with the Iranian people. Maryam Nawaz underscored her administration's equitable development efforts, stating, 'Every district—whether Bhakkar, Layyah, Rajanpur, D.G. Khan, or Rahim Yar Khan—has the same share in development as Lahore.' She clarified that her competition was not with political rivals but with her own family's legacy. 'My benchmark is Nawaz Sharif and Shehbaz Sharif—I aim to surpass their record of public service.' The Chief Minister also acknowledged the Mines and Minerals Department's contributions, citing Rs. 30 billion in savings, and noted that public spending had risen by only 3%, including pay and pension increases. Opposition members in the Punjab Assembly may be barred from entering the premises following their misconduct during Chief Minister Maryam Nawaz's speech. They created chaos, hurled abusive slogans, and tore copies of the agenda, throwing them toward the Chief Minister and Speaker Malik Muhammad Ahmad Khan. During her address, opposition members attempted to approach the Speaker's chair, shouting slogans and disrupting proceedings. Government members intervened to restrain them. Sources indicate the opposition could face entry restrictions due to their actions, including storming the Speaker's podium, using inappropriate language, and throwing documents. It may be recalled that Speaker Malik Muhammad Ahmad Khan had issued a ruling the previous day outlining a code of conduct for assembly sessions. The ruling prohibits reading books/newspapers or bringing them into the house. It also prohibits passing between a speaking member and the chair. Additionally, eating, drinking, chewing, or smoking inside the assembly is not allowed. Damaging furniture or electronic equipment is strictly prohibited, and carrying sticks or rods without the Speaker's permission is forbidden. Copyright Business Recorder, 2025
Reuters
9 hours ago
- Business
- Reuters
IMF disburses about $448 million to Tanzania under two arrangements
June 27 (Reuters) - The International Monetary Fund has approved an immediate disbursement of approximately $448.4 million (SDR 326.47 million) to Tanzania under the Extended Credit Facility and Resilience and Sustainability Facility arrangements, the IMF said on Friday.
The Mainichi
16 hours ago
- Business
- The Mainichi
U.S. tariff rate hits historic level of 25.9%: Japan trade report
TOKYO (Kyodo) -- The effective U.S. tariff rate on all imports rose to as high as 25.9 percent under President Donald Trump, surpassing levels not seen since the protectionist policies of the Great Depression, the Japanese government's annual trade report showed Friday. The U.S. tariff measures as of early April, including an increase in the levies on China to 145 percent, reached a "historic scale," the Japanese trade ministry said, adding that frequent changes in Trump's trade policy are creating "heightened uncertainty." According to the ministry, the effective tariff rate -- the actual rate applied to imports -- was 19.8 percent in 1933, after the United States enacted the Smoot-Hawley Tariff Act in 1930 to protect American businesses and farmers from foreign competition by significantly raising tariffs on imported goods. The report by the Japanese Ministry of Economy, Trade and Industry cited data from the International Monetary Fund as a reference. The April rate also reflected new tariffs on the auto sector. The U.S. effective tariff rate has since declined after Washington and Beijing agreed in May to roll back a significant portion of each other's steep tariffs, marking a de-escalation of their tit-for-tat trade war. Japan's simple average tariff rate stood at 3.7 percent in 2023, according to data from the World Trade Organization.
Indian Express
18 hours ago
- Business
- Indian Express
India-Africa partnership for agricultural development and food security
— Samir Bhattacharya Amid rising challenges such as food insecurity, climate change, and the urgent need for agricultural transformation, the India-Africa partnership in agriculture and food security has become increasingly vital. The two countries have a long history of collaboration in this sector. Although agriculture is a backbone for industrialisation and poverty alleviation in Africa, it remains highly vulnerable to climate risks, weak infrastructure and limited access to finance and technology. Over the past decades, extreme weather events, including droughts, erratic rainfall, heat waves, and storms, have severely affected African agriculture. Between 1970 and 2020, droughts and heavy rain were the most frequent climatic threats, especially as much of Africa's agriculture depends on rainfall rather than irrigation. These unpredictable weather patterns cause sharp declines in productivity. Compounding this, farmers often lack access to modern infrastructure, reliable market data, financial services, and agricultural extension support. The consequences of climate change extend beyond farmers to the entire agricultural value chain, including processors, distributors, and consumers. Addressing these challenges requires an integrated, value chain–based approach that supports climate adaptation and mitigation to ensure competitiveness and sustainability. Africa faces a paradox. While agriculture employs nearly 65 per cent of the workforce, its contribution to the continent's GDP remains low, about 15 per cent. Additionally, Africa heavily depends on food imports. Since 2000, food imports in Sub-Saharan Africa have surged relative to domestic production. Until last year, the continent imported around $50 billion worth of food each year, and with conflicts across the world, this figure is poised to reach $90-$110 billion by the end of this year. Africa's dependence on food imports renders the continent particularly susceptible to external shocks. For example, the COVID-19 pandemic and the Russia-Ukraine conflict severely disrupted Africa's food supply chains. The Russia-Ukraine war, which interrupted global exports of wheat and fertilisers, led to a substantial increase in food prices across African markets. According to the International Monetary Fund (IMF), between 2020 and 2022, food prices in sub-Saharan Africa surged by nearly 24 per cent. Consequently, addressing post-harvest losses that frequently exceed 30 per cent and advancing climate-smart agricultural practices are essential to revitalise the sector and create sustainable employment opportunities for Africa's expanding youth population. Recognising the importance of agriculture, the African Union (AU) and the African Development Bank (AfDB) have prioritised agricultural development through flagship initiatives. One of AU's 'High-5' agenda, the 'Feed Africa' initiative aims to transform agriculture into a business by adding value to commodities. The initiative also seeks to lift 320 million people out of hunger while unlocking Africa's agribusiness potential, estimated to exceed $100 billion by the end of this year. Similarly, the Comprehensive Africa Agriculture Development Programme (CAADP), under Agenda 2063, targets hunger elimination and poverty reduction by promoting sustainable land and water management, improving market access, increasing food availability, and advancing agricultural research and technology transfer. India has become a strategic partner for Africa in its agricultural transformation. Although the partnership evolved gradually, significant growth has been witnessed in cooperation in recent years in areas such as agricultural development, food processing, training, technology transfer, and private investment. This collaboration functions primarily through bilateral government cooperation and engagement with the private sector. On the government-to-government front, India has extended soft loans, training programmes, and technology assistance to many African countries. These efforts aim to improve farming practices, irrigation systems, soil quality, and mechanisation. For example, Angola received a $23 million Line of Credit (LoC) from India's EXIM Bank to purchase tractors and farm machinery, alongside plans to establish a Food Processing Business Incubation Centre. Zimbabwe has benefited from support in establishing a Rural Technology Park, a Food Testing Laboratory, and a Vocational Training Centre. Similarly, Lesotho secured a $5 million LoC for agricultural equipment, while Malawi received $1 million to develop a Business Incubation Centre offering short-term training in crop processing, composting, and briquette production. India's private sector has also been pivotal in strengthening India-Africa agricultural cooperation. Several Indian companies have invested in food processing infrastructure across Africa. For instance, Surface Wilmar, a joint venture between Zimbabwe's Industrial Development Corporation and India's Midex Global Pvt. Ltd., invested about $1.5 million to build an edible oil production facility near Harare, which has become the largest cooking oil manufacturer in Southern Africa. Other notable Indian firms active in Africa's agricultural sector include ETG (Export Trading Group), one of the largest integrated agricultural conglomerates operating in countries such as Tanzania, Kenya, Malawi, Mozambique, Nigeria, and South Africa. The African Development Bank recently approved a $1.4 million grant to support ETG's Women Entrepreneurship and Employability project, empowering 600 women-led businesses across Mozambique, Tanzania, and Zambia. ZimGold invested $40 million in Zimbabwe's edible oil and margarine production, employing over 500 people. Varun Beverages committed $250 million towards bottling plants and puree processing facilities in Zimbabwe. Raha Cooking Oil opened a processing plant in Norton, Zimbabwe. Indian firms like the Asian Tea Company, Pure Diets, Rajarambapu Group, and HK Jalan Group are exploring further investments in commercial agriculture in the region. Further, India's agricultural engagement in Africa increasingly involves trilateral cooperation with international agencies such as USAID, the UK's Department for International Development (DFID), and the Supporting India's Trade Preferences for Africa (SITA) programme. For example, through a tripartite agreement with the Food and Agriculture Organization (FAO), India sent agricultural experts to Lesotho to support improvements in food security and irrigation planning. Beyond economic cooperation, India contributes humanitarian assistance and capacity building. During the drought in Zimbabwe, India sent food aid, including rice donations of 50,000 tonnes in 2003 and 500 tonnes in 2015. Similarly, Malawi was supported with agricultural equipment worth $1 million and 1,000 metric tonnes of rice during a crop failure crisis in 2020. The Democratic Republic of the Congo also benefited from India's donation of tractors and accessories. Non-governmental organisations (NGOs) such as India's Self-Employed Women's Association (SEWA) have further deepened India-Africa engagement through grassroots knowledge exchange. SEWA's women-to-women empowerment initiatives adapt successful rural Indian models to promote resilience and self-reliance among African women, strengthening community-based agricultural development. Both India and Africa face similar challenges in managing climate change impacts, demographic growth, and geopolitical instability. Africa's food market is expected to grow to $1 trillion by 2030, with food demand projected to double by 2050, presenting enormous opportunities for sustainable investment in farm mechanisation, irrigation, food processing, nutrient management, and agricultural research and development. India's experience in integrating smallholder farmers into modern value chains, reducing post-harvest losses, and raising farm incomes offers a valuable model for Africa. India's '3A' framework – promoting affordable, appropriate, and adaptable technologies – provides scalable, cost-effective solutions tailored to African realities. Nonetheless, strengthening India-Africa agriculture ties will require deepened bilateral and trilateral partnerships, expanded private sector involvement, and robust knowledge-sharing platforms. Such collaboration can ensure food security, foster inclusive growth and build resilient, sustainable agri-food systems across the continent. By combining India's agricultural expertise with Africa's vast natural and human resources, this partnership can become a cornerstone for feeding the future, reducing hunger, and advancing economic prosperity in both continents. Why has the India-Africa partnership in agriculture and food security gained greater significance in recent years? How do shared challenges like climate change and food insecurity shape the strategic importance of India-Africa cooperation? How have Indian Lines of Credit (LoCs) been used to build agricultural infrastructure and capacity in Africa? What is the significance of India's private sector investment in food processing and agri-business in Africa? How has grassroots collaboration, such as SEWA's women-to-women empowerment programs, contributed to rural development in Africa? Read other articles from the series Conflicts in Africa Conflicts in Africa | The Sahel crisis and implications for India Conflicts in Africa | India's growing role in Africa's development Conflicts in Africa | Rising tensions in the Great Lakes Region Conflicts in Africa | Instability in Great Lakes region and implications for India Conflicts in Africa | Sahel's strategic drift towards Russia (Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.) Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
