Day: April 24, 2024

In a momentous development, EduFi Financial Services Private Limited, a pioneering education lending FinTech company, has been granted its Non-Banking Financial Company (NBFC) license by the Securities and Exchange Commission of Pakistan (SECP).

This landmark achievement propels them into an exciting phase as EduFi formally launches its operations in the Pakistani market.

EduFi is at the forefront with its groundbreaking education lending app. Harnessing the power of artificial intelligence (AI), the app revolutionizes the process that not only streamlines the application process but also ensures fairness and objectivity in lending decisions. The app provides tailored financial offerings that align with the individual’s educational aspirations and capacity to repay.

As a result, students gain access to necessary funds, empowering them to pursue their academic goals without the burden of financial uncertainty.

This innovative solution is set to transform the education finance sector, making it more access
ible, efficient, and responsive to the needs of a diverse student population.

‘Our vision has always been to revolutionize the educational landscape of Pakistan to enhance our adult literacy rate and provide accessible and innovative financial solutions to a deprived sector of our economy. With the NBFC license in hand, we are now fully equipped to turn this vision into reality. We are set to embark on a mission to empower students, educators, and institutions with the financial tools they need to succeed. Education is the cornerstone of progress, and we believe that financial constraints should never be a barrier to learning. Our suite of products is designed to bridge the gap between ambition and opportunity, offering tailored financial solutions packages that will open doors for countless learners across Pakistan. We invite all Pakistani students to join us on this journey and fund their future with EduFi.’ said company CEO and founder Aleena Nadeem.

Source: Pro Pakistani

Federal Minister of Industries and Production and National Food Security Rana Tanveer Hussain has said the government is committed to increasing the export of livestock from Pakistan since this sector contributes around 62 percent of the agricultural GDP of the country.

Addressing a briefing on the livestock sector, Federal Minister Rana Tanveer Hussain said the livestock sector is very important in the agriculture economy of Pakistan as around 8 million families are connected to this sector. He said there is a lot of potential to earn foreign exchange from the livestock sector.

He said Pakistan is the fourth largest milk-producing country and all necessary steps will have to be taken to meet the requirements of meat and milk across the country.

Rana Tanveer said the development of the agricultural sector is the mission of the current government which is also determined to increase the export of livestock. He said for the first time in the history of Pakistan, a bill has been drafted to regulate veterinar
y sciences and animal welfare. He said the bill will soon be sent to the cabinet for approval.

The federal minister said practical measures are being taken to protect livestock from diseases. ‘Strengthening the surveillance system to protect animals from diseases is a need of the time,’ he said. He said concrete measures are being taken to create real-time data on animal diseases in the country. He said a track and trace system for the animals is also being devised which will help control the movement of animals.

Commissioner Livestock Dr Akram gave a briefing to the federal minister about the challenges faced by livestock as well as the functioning of the department. Federal Secretary Food Security Capt (r) Muhammad Asif was also present at the briefing.

Source: Pro Pakistani

The price of gold in Pakistan rose slightly on Wednesday after losing over Rs. 11,000 per tola in the previous two days.

According to data issued by the Karachi Sarafa Association, the price of gold (24 carats) increased by Rs. 1,100 per tola to Rs. 242,000, while the price of 10 grams registered an increase of Rs. 943 to Rs. 207,476.

It is pertinent to mention here that the price of gold had fallen by Rs. 3,500 per tola on Monday before posting another decline of Rs. 7,800 per tola on Tuesday, taking the two-day losses to Rs. 11,300 per tola.

The fall in the price of gold was mainly due to a decline in international gold prices that went down over easing tensions in the Middle East.

International gold prices also fell for a third consecutive day today with spot gold down 0.3 percent to $2,314.95 per ounce by 1001 GMT, while the US gold futures fell 0.6 percent to $2,328.40.

Source: Pro Pakistani

Pakistan has formally requested $3.5 billion funds from Saudi Arabia for the Diamer-Bhasha Dam.

Saudis will respond to this request after consulting with their financial advisor for the dam project. Pakistan’s financial advisor will engage with an advisor from Riyadh to ensure coordination on the project’s financial aspects. The formal request from KSA is expected within 1.5 to 2 months, reported a national daily.

The total cost of the Diamer-Bhasha Dam is estimated at $8 billion, with a significant foreign component of $4 billion.

Of the requested $3.5 billion from KSA, WAPDA has asked for a concessional loan of $2.3 billion at a 2.25 percent interest rate for 25 years and a 6-year grace period.

Pakistan also wants $1.2 billion as equity investment in the project at a rate equivalent to the interest cost of US 10-year Treasury Bonds, which currently stands at 4.45 percent.

The Diamer-Bhasha Dam is being constructed with a 30 percent equity and 70 percent debt financing model and is touted as the larges
t dam in Pakistan.

When completed, the dam is projected to generate 18 billion GWh of electricity per year. Once completed, it will have a gross storage capacity of 8.10 million acre-feet (MAF) of water and a live storage capacity of 6.4 million MAF.

Source: Pro Pakistani

MCB Bank Limited (PSX: MCB) has approved the Scheme of Compromises, Arrangements and Reconstruction for converting 39 branches into Islamic banking entities, the bank informed the main bourse on Wednesday.

According to stock filing, the scheme has essentially greenlit demerging the existing business, assets, liabilities, and operations of 39 branches of the bank for conversion into Islamic banking branches and the same shall be merged with and into MCB Islamic Bank Limited (‘MIB’) on the Effective Date against payment of cash consideration.

‘The Scheme shall inter alia be subject to the No Objection. Certificates of the State Bank of Pakistan (‘SBP’), approval of the shareholders of MCB and MIB, sanction by the Honorable Lahore High Court, Lahore (the ‘Court’) and other consents as may be directed by the Court and conditions attached thereto,’ the filing added.

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in commercial banking and related services.

Source: Pro Pakistani

Non-performing loans (NPLs) disbursed by the banking industry surged by more than Rs. 70 billion in 2023, the latest data by the State Bank of Pakistan (SBP) showed.

In 2023, bad loans by the sector surged to Rs. 1.009 trillion, up by Rs. 71.3 billion compared to Rs. 938 billion in the same period last year.

Commercial banks dominated the space with most bad loans released to defaulters during the previous calendar year. Data showed NPLs by commercial banks increased by 8 percent to Rs. 956 billion compared to Rs. 883 billion in 2022.

Local private banks came in second with bad loans of Rs. 634 billion, up 16.5 percent compared to Rs. 545 billion in the same period last year. Meanwhile, public sector banks disbursed Rs. 320 billion in bad loans, which have decreased slightly from Rs. 336 billion reported in 2022.

Foreign banking operations in Pakistan played it safe in 2023, having disbursed just Rs. 633 million in bad loans, down by 66 percent compared to Rs. 1.86 billion in the previous year.

Developm
ent Finance Institutions (DFIs) attributed Rs. 15 billion to bad loans in 2023, Rs. 510 million more than in 2022.

SBP data showed cash recovery against non-performing loans clocked in at Rs. 33 billion for the quarter that ended on December 31, 2023, roughly the same compared to recoveries in the same period last year.

In light of this, Pakistan’s hopes for a rapid economic recovery remain futile as banks struggle with bad debt. While controllable, this surge is limiting their capacity to extend loans and support economic growth at current lending rates.

SBP’s steep interest rate, which has remained at 22 percent since June 2023, worsens the problem as it undermines borrowers’ ability to repay loans. As a result, loan repayment concerns loom large.

Source: Pro Pakistani

The government has requested the World Bank for restructuring of Higher Education Development in Pakistan (HEDP) project of worth $400 million for third time to allow for the completion of critical IT and IT-related activities and the full achievement of Performance Based Condition (PBCs).

Official documents revealed that the project is in its fifth year of implementation and its objective is to support research excellence in strategic sectors of the economy, improve teaching and learning and strengthen governance, in the higher education sector.

The government requested an extension with the revised closing date of June 30, 2025. This extension will help HEC achieve a strengthened digital learning infrastructure contributing to a more resilient higher education system in Pakistan.

The overall project implementation progress is rated moderately satisfactory. Of the 13 intermediate results indicators, 02 have already been met, 09 are likely to be met, and 02 are unlikely to be met. The project has made imp
lementation significant progress. The disbursement from IDA Credit as of February 29, 2024, is $278.30 million, including $258.19 million against PBCs and $20 million for the Investment Project Financing (IPF) component.

Despite the overall reasonable implementation progress, the IT-related procurements under Component 3 had been taking longer than anticipated because of: (i) delayed hiring of IT staff and initiation of IT-related activities, (ii) approvals and completion cycle of several procurements taking longer than anticipated and, (iii) need for revision of the procurement strategy to address capacity challenges of the local IT market. Procurements valuing $50.5 million are under implementation or have been advertised, and another $14.5 million are in the pipeline.

The restructuring also entails changes in four PBCs, whereby (a) PBC 1 Year 4 (iii) target to be shifted to year 6 due to the delay in the completion of the Sustainable Development Goal (SDG) dashboard; (b) PBC 1 year 5 (iii) target to be d
ropped as development of the portal and allied procurement took longer than anticipated; (c) PBC 11 year 3 (i) target to be shifted to Year 5 as the draft Open and Distance Learning Policy (ODLP) is expected to be approved by February 2024, and subsequently implemented; (d) revise the wording of PBC 5 to apply to both Affiliated Colleges and Affiliating Universities, including retroactive revision of the target for PBC 5 year 3 (iii) and; (e) PBC 11 year 5 (i) target to be shifted to year 6 as with the ODLP approved in year 5, HEC will implement the framework for one year and will hold stakeholder consultations for feedback collection. The dropped PBC 1 Year 5 (iii) target and PBC 11 Year 4 target do not constitute a risk to achieving the PDO.

The project has been restructured twice. The first restructuring was approved on June 14, 2021, to respond to the COVID-19 pandemic impacts and involved: (a) introduction of Component 6 to support continued learning for all in case of unpredicted crises and university
lockdowns and provision of special funds to universities to increase their financial autonomy, (b) reallocation of funds between Components to better address ongoing needs, and (c) revision of the Results Framework to reflect the changes in activities.

The second project restructuring was approved on June 15, 2023, to repurpose the unutilized funds from lapsed targets under PBC 1 and PBC 2 toward: (i) a new round of Rapid Technology Transfer Grants (RTTGs) focused on topics related to emergency response, climate change, extreme weather event preparedness and import replacement research (PBC 1, Component 1); (ii) a new target to track RTTG outcomes (PBC 2, Component 1); and (iii) an increased target for universities participating in the framework for improvement in financial autonomy (PBC 10, Component 6).

Source: Pro Pakistani