May 15, 2022 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.

Events of Importance through the week:

June 18, 2022: State Bank of Pakistan (SBP) Friday extended the validity period of the renewable energy financing scheme and Islamic financing facility for two years, up to June 30, 2024.

According to a circular issued by SBP’s Infrastructure, Housing and SME Finance Department, Revised SBP Financing Scheme for Renewable Energy was launched in June 2016 to lend support in addressing the dual challenge of energy shortage and climate change through the promotion of renewable energy.

The central bank, later on, based on stakeholders’ feedback, extended the expiry period of the scheme to June 30, 2022.

The Mudarabah-based Islamic financing facility for renewable energy (IFRE) was introduced in February 2019 for the Islamic Banking Institutions (IBIs) and DFIs.

The SBP financing scheme and Islamic financing facility for renewable energy were available to prospective sponsors, vendors and suppliers in three different categories encompassing renewable energy projects with a capacity of below 1 megawatt and more than 1 MW and up to 50 MW.

Loans amounting from Rs 400 million to 6 billion could have been availed depending on the category under the financing facility with up to 100% refinance by SBP for a period of 10 to 12 year.

Jun 18, 2022: Prime Minister Shehbaz Sharif Friday felicitated the nation and welcomed the announcement of Financial Action Task Force (FATF) that Pakistan had met all its conditions for exclusion from the Grey List.

In a statement, he said, “Praise be to Allah, return of Pakistan to the white list is a big success of Pakistan.”

He congratulated the government institutions, personalities and relevant team and said their joint efforts brought fruit.

He appreciated the performance of Minister of State for Foreign Affairs Hina Rabbani Khar and team of the Foreign Ministry.

The PM said the efforts of the basic cell related to FATF and of military and civil leadership included in it, were praise worthy and credit went to them for their work in this national endeavor.

“I pay tribute to the whole team working for the success of Pakistan,” he said adding the statement of FATF was recognition of the restoration of the international reputation of Pakistan.

“More such good news will be destiny of Pakistan in future,” he said adding the return of Pakistan to the white list would help in improving the economic and financial situation of Pakistan.

“We are working with the same determination for the economic revival of Pakistan,” he concluded.

Jun 18, 2022: Federal Minister for Water Resources Syed Khursheed Ahmad Shah on Friday said the government had allocated Rs 105 billion in the federal budget 2022-23 for the construction of dams, and the amount would be increased by Rs 25 billion, if needed.

Talking to PTV news, he said the government had expedited the construction work on Dasu, Diamer-Bhasha and Mohmand dams with the aim to complete them at earliest for conserving water.

The minister said he will visit every under-construction dam four times in a year to ensure the quality of work as well as to resolve the grievances of the local community.

The construction of new dams would not only help address water and energy crisis rather but also generate jobs, and tourism and business opportunities, he added.

Shah said the rivers need dredging and lining to enhance the water storage capacity and that he would raise this issue in the cabinet meetings. "The government should ensure the provision of irrigation water to the agriculture sector for protecting our food basket."

He said, the government was working to strengthen the national economy besides providing relief to the farmers and government servants. In the budget, the government had taken revolutionary steps for the agriculture sector which had been the backbone of the economy, he said, adding, the provincial governments should launch awareness programmes to impart knowledge to farmers about certified seeds for boosting their produce.

June 18, 2022: Like many other governmental organizations, FBR has played a key role in completing the FATF actions related to DNFBPs, cash smuggling, investigating tax crimes for money laundering, and confiscating the proceeds of tax crimes. In the 34 actions of the FATF action plans, FBR has directly dealt with at least 8 actions and spearheaded the process of implementation.   

In order to ensure compliance with regard to DNFBPs, FBR has issued AML/CFT regulations, conducted extensive outreach to educate DNFBPs, established a dedicated IT based DNFBP Management System, launched customized mobile App for registrations and screening purposes, conducted a large number of onsite inspections, and imposed a wide range of penalties for non compliance.

Similarly, in the area of cash smuggling, FBR Customs has fortified cross-border controls and implemented a comprehensive mechanism to combat cash smuggling, by all means possible. Likewise, FBR has also undertaken a large number of money laundering investigations against the tax crimes and has also made significant confiscations in this regard.

Mr. Asim Ahmad, Chairman FBR/ Secretary Revenue Division, has felicitated all the government organizations and their key personnel including the relevant officers of Inland Revenue Service and Pakistan Customs who have worked tirelessly to complete the FATF actions. The Chairman FBR reiterated FBR’s unflinching resolve and an unwavering commitment to continue with implementing the anti-money laundering and countering financing of terrorism regime in the areas supervised by FBR.