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Pakistan Surviving On IMF Reviews But Economy Remains Vulnerable As Ever: Report

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Pakistan Surviving On IMF Reviews But Economy Remains Vulnerable As Ever: Report


New Delhi: Pakistan is witnessing the institutionalisation of a “survivalist” economy where every policy choice is dictated by the need to pass the next International Monetary Fund (IMF) review, regardless of whether that policy erodes the tax base for the next decade, while the economy remains vulnerable as ever — headed nowhere except, most likely, into another IMF programme, as per a news report. 

The report in Business Recorder by Shahid Sattar reveals that Pakistan suffers from a chronic twin deficit: a fiscal gap (spending more than it collects) and a balance of payments crisis (consuming more foreign exchange than it earns).

“For fifty years, our imports have hovered at double the rate of our exports as a percentage of GDP. Simply, Pakistan is a country that has failed to produce,” it added.

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The report argued that the fundamental flaw in the IMF’s approach is a “dogmatic adherence to revenue extraction at the cost of value creation”.

“By forcing the government to meet rigid fiscal targets, and through any means necessary at this point, the Fund has encouraged policies that stifle the very export-led growth required to break the debt cycle,” it further stated.

The historic economic model of state patronage was flawed and resulted in suboptimal allocation of resources.

“But there is a difference between weaning an addict off drugs and starving a healthy person. The IMF programme appears unable to distinguish between withdrawing support and subsidies, and actively destroying the ecosystem required for legitimate businesses to function,” the report further argued.

On paper, the IMF deals with the Finance Minister and the Governor of the State Bank. Technically, all policies within the Letter of Intent are the government’s own ideas.

“In reality, the programme reflects the behest of those holding the greatest political and economic leverage. When policies fail, the IMF claims the government designed them; the government claims the IMF demanded them. This ambiguity serves everyone but the country and its citizens,” the report lamented.

“Unless we reclaim our policymaking from the narrow, revenue-centric confines of IMF programmes, we are not just managing a crisis but rather our own decline,” it added.



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RIL, banks lift Sensex even as FPIs sell – The Times of India

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RIL, banks lift Sensex even as FPIs sell – The Times of India


MUMBAI: Strong buying in a host of bank stocks and Reliance Industries lifted the Sensex by 650 points on Monday to close at 83,277 points. However, nearly a Rs 1,000-crore net selling by foreign funds raised doubts about the sustainability of the rally. IT stocks had been under pressure over the past few sessions amid doubts surrounding their business models in the age of AI, but their losses were contained on Monday. The session also saw a host of stock of companies that have their businesses closely linked to the stock exchange slide on the back of RBI’s recent rule changes that made it stricter for banks to lend for stock-related usage. This led to sharp fall in stock prices of BSE, MCX, Angel One and Groww in early trades but closed mixed.



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Investment in subsea cable network to create thousands of green jobs

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Investment in subsea cable network to create thousands of green jobs



A power firm has announced a multimillion-pound investment in the subsea cable network serving Scotland’s islands, in a move expected to create “thousands of high-quality green jobs”.

SSEN Distribution is set to upgrade its network of 113 subsea electricity cables, which provide power to 60 islands, saying it will improve resilience and increasing capacity to meet growing demand.

The work is set to support more than 450 specialised jobs each year for up to eight years – which the company said equates to or more than 3,500 fixed-term roles in and around installation sites and at company bases.

SSEN said the investment – worth up to £950 million – will enable islanders to connect new technologies like electric vehicle (EV) chargers, solar panels and heat pumps to the network.

It is also expected to benefit local energy generators looking to produce and export green power, and to support the decarbonisation of island-based industries such as distilleries.

The announcement was welcomed by Energy Secretary Gillian Martin, who said it would help the country achieve its net zero target.

“This welcome investment by SSEN Distribution will help upgrade the subsea network serving Scotland’s islands, improving its resilience and supporting Scotland’s net zero ambitions,” she said.

“It will also support thousands of high-quality green jobs and drive new growth across the local, regional and national economies as part of our net zero transformation.”

Kevin Galbraith, SSEN Distribution’s subsea project director (large capital delivery), said: “Subsea connections are becoming ever more important as Scotland’s island communities seek to invest in EV charging, heat pumps, and the decarbonisation of their industries.

“In addition to providing the networks fit for supporting this growth in the use of clean power, these framework agreements will also underpin the ambitions of islanders to generate, store, and export more renewable energy.”

The work of upgrading the network will be delivered by five “contract partner” companies, with a “strong focus” on using locally-based supply chains.

The firms are Burntisland-based Briggs Marine; DOF Subsea UK and N-Sea, both of which have bases in Aberdeen; and Enshore Subsea and Jan De Nul.

Specific projects will be allocated according to each contract partner’s specialisms and resources.

SSEN said working with multiple companies will enable multiple subsea cables to be upgraded at the same time during the relatively narrow summer window, when weather conditions are more favourable.

Mr Galbraith went on: “The agreements themselves will ensure delivery of this investment will be rolled out in a seamless, co-ordinated way, and this will provide both customers and supply chains with the certainty they’re looking for.

“This multi-year investment will also provide greater job security and new opportunities for employment in this growing sector.”



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Six of Sarah Ferguson’s companies are being dissolved

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Six of Sarah Ferguson’s companies are being dissolved


Ferguson is listed as an active director for three other businesses registered with Companies House: Ginger and Moss, set up as a lifestyle brand to sell tea, jewellery and housewares, a “motion picture production activities” business called Coat, and Librasol, classified under “artistic creation” on the official register for private companies.



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