Cash-strapped Pakistan Cabinet on Saturday approved an ordinance to bypass all procedures for emergency sale of country’s assets abroad. According to media reports, the regulatory scrutiny for the emergency sale of the country’s assets abroad has been scrapped. Through this ordinance, Pakistan has tried to avert the economic crisis looming over the country.
The Express Tribune newspaper reported that the Inter-Governmental Commercial Transactions Ordinance-2022 was approved by the federal cabinet on Thursday. According to this ordinance, the government has also barred the courts of the country from considering any petition against the sale of property and shares of government companies abroad.
The President has not yet signed the ordinance:
The decision has been taken to sell stake in oil and gas companies and the state-owned power company to the United Arab Emirates (UAE) for US$2.5 billion to avoid the risk of bankruptcy. Media reports citing the ordinance said that through the ordinance, the Center has also empowered the provincial governments to issue binding directions for land acquisition. However, President Arif Alvi is yet to sign the ordinance.
UAE refused to give cash to Pakistan:
According to the report, in May the UAE refused to deposit cash in Pakistan’s banks and instead asked them to open their companies for investment after Islamabad expressed its inability to pay back a previous loan. Pakistan’s Finance Minister Mifta Ismail said this week that it usually takes 471 days to complete a privatization transaction. He had said that the government will have to end deals with foreign countries to raise funds immediately.
The report said that the International Monetary Fund (IMF) has placed a condition that Pakistan’s case cannot be taken to the board unless it receives four billion US dollars to bridge the funding gap from friendly countries. Doesn’t provide dollars. Pakistan recently inked an employee-level agreement with the IMF for the payment of USD 1.17 billion under the bailout package.
Pakistani rupee fell 8.3%
The Pakistani rupee has fallen 8.3 per cent of its value this week, the highest since November 1998. This shows the seriousness of the challenges facing the government of Prime Minister Shahbaz Sharif.
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