Pakistan’s debt servicing heads towards record PKR 8 trillion as interest rate hike looms



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Pakistan">Pakistan’s entire debt servicing is on track to reach a historic high of pakistan">Pakistan Rupee (PKR) 8 trillion, with the prospect of a minor increase in the policy rate in the region of 1 per cent against the anticipated allocation of PKR 7.3 trillion for the current fiscal year, The News International reported.

The fiscal year 2023–24 will mark the first time when practically every month of the current fiscal year, federal revenue receipts will be less than what is needed to pay for servicing domestic and international debt. Since the fiscal position will only become worse, there will be more serious risks, so the Ministry of Finance genuinely wants the policy rate to stay at 22 per cent or less.

The News International reported citing top official sources that in the last auction of generating through T-bills (Treasury-bills) and PIBs (pakistan">Pakistan Investment Bond), the government has raised PKR 1.4 trillion at a mark-up rate of slightly above 23 per cent on weighted average so the stage was set to witness a little spike in the policy rate in the ensuing monetary policy committee (MPC) scheduled to meet on September 14.

The government has repaid PKR 2 trillion upon the maturity of outstanding domestic debt.

“Now we are making efforts for staggering of our debt market whereby efforts will be made to shift the debt from short term to long term,” said official sources quoted by The News International but a few independent economists argued that the re-profiling of domestic debt could only be done where there would be reduced interest rate environment achieved after receding of inflationary pressures.

“In the wake of recent developments whereby strict administrative measures against smuggling of dollars have paved the way for improving the exchange rate as the rupee in interbank and open market strengthened against the dollar. It has resulted in evaporating the possibility of hiking the policy rate by 2 per cent in the MPC meeting,” said official sources.

The policy rate is now anticipated to increase by a maximum of 1.25 per cent, while it may be preferable to remain steady in order to indicate support for the investment climate. However, since the rates on T-bills and PIBs have already increased, the cost of debt servicing would go up even more and could surpass PKR 8 trillion for the current fiscal year.

However, the revenue of the federal government would be on the lesser side. The Centre will have resources totalling PKR 4 trillion after allocating resources to the provinces under the NFC

Award and the FBR, assuming that the latter meets its yearly tax collection target of PKR 9.4 trillion without any slippages.

The federal government's net revenue receipts could reach PKR 7 trillion with the non-tax collection objective of PKR 2.9 trillion. In order to meet the demand of PKR 1 trillion for debt servicing, which would entail additional borrowing from the government, the sole head of spending for debt servicing would now be increasing to PKR 8 trillion, The News International reported. (ANI)

   

Netanyahu in fear of ICC arrest



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Israel's attack on Gaza did not stop. The death procession is increasing every day under the orders of Israeli Prime Minister Benjamin Netanyahu. The Israeli army is not paying attention to the ongoing movement around the world. On the other hand, Tel Aviv is listening to the calls of pro-Palestinian world leaders.

Killing, torture and destruction are being carried out indiscriminately in violation of international law. The blockaded area is being gradually completed, including women and children. On the other hand, the world is not able to do anything about such activities in Israel.

But now it is known that the International Criminal Court (ICC) may issue an arrest warrant against the Prime Minister of Israel.

This is what the country's local media reported on Saturday (April 27). According to The New Arab, citing unnamed sources, Maariv newspaper reported that Netanyahu is under stress and panic over the threat of an ICC arrest warrant.

Not only Netanyahu, but also some of his prominent officials may receive this arrest notice, according to reports in the Israeli media.

According to Israeli media reports, the names of the country's Defense Minister Yoav Galant and Army Chief of Staff Herzi Halevi will be included in the list. Senior government officials held an emergency meeting in Tel Aviv this week to discuss that possibility.

In the meantime, Netanyahu has spoken on the phone with international friends, especially US President Joe Biden, to prevent the arrest warrant. It is not clear when an arrest warrant may be issued, and it is not standard for courts to disclose such information.

But fears of an arrest warrant against Netanyahu were first aired on Thursday by British-pro-Israel commentator Douglas Murray in an opinion piece in the US tabloid New York Post.

A warrant could be issued within days, Murray wrote. Netanyahu will not immediately face trial. But it would be a major blow to the prime minister on the world stage and put pressure on Israel's allies and ICC members to act.

Earlier in an interview on Friday, Netanyahu wrote, "Israel's natural and self-defense rights are undermined, and this country will not accept any such efforts by the ICC under my leadership." Threats to seize military officers of the Middle East's only democracy and the world's only Jewish state are outrageous. We will never bow down to it.'

Senior Israeli officials are said to be concerned about what such a warrant would mean for military operations against Hamas in Gaza.

Israel's Channel 13 broadcaster quoted officials as saying they believed the tribunal would target policy makers rather than junior soldiers.

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20 soldiers were killed in an explosion at an army base in Cambodia



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An ammunition explosion at a military base on Cambodia's western border has killed 20 soldiers. Prime Minister Hun Manet said the explosion happened on Saturday afternoon.

Cambodian Prime Minister Hun Manet said on Facebook that the explosion occurred at a military base in Kampong Speu province in western Cambodia.

He said, we are deeply shocked by this. However, the cause of the explosion is not yet known.

Expressing his condolences to the families of the slain soldiers, he said that the funeral expenses of the deceased would be paid.

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Endangered hippos stranded in dry rivers in Botswana amid severe drought



International Desk, Barta24.com , Dhaka
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African countries are suffering from severe drought. A herd of endangered hippos trapped in the mud of a dry reservoir in the drought-stricken African country of Botswana is at risk of dying.

South Africa has been hit by severe drought due to El Nino weather, AFP reported. Crops in the region are under threat, millions of people are starving. Several countries in the region have recently declared national disasters.

Herds of hippos become trapped in dried-up rivers near the vast wetlands of the Okavango Delta in northern Botswana.

Lesego Moseki, spokesman for the Department of Wildlife and National Parks (DWNP) in Botswana's capital Gaborone, said the river system had dried up and the animals were in a compromised situation.

Botswana is home to the world's largest population of hippos living in the wild. According to the International Union for Conservation of Nature (IUCN), there are approximately 2,000 to 4,000 hippos.

Moseki said hippos in Ngamiland (North West District) depend on water flowing through the Okavango Delta system. They are still investigating how many hippos died in the pools.

Hippos have thick but sensitive skin. They need to bathe regularly in water to avoid sunburn and they usually live in humid areas.

Without water they can become aggressive and approach villages. Local authorities have called for the hippos to be relocated to protected areas to avoid conflict with humans.

El Niño is a naturally occurring climate pattern usually associated with global warming, leading to drought in some parts of the world and heavy rainfall in others.

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India has allowed onion export to 6 countries including Bangladesh



International Desk, Barta24.com, Dhaka
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India has approved the export of 99 thousand 150 tons of onions to 6 countries including Bangladesh. Other countries are - United Arab Emirates, Bhutan, Bahrain, Mauritius and Sri Lanka.

This information was given on the website of the Government of India on Saturday (April 27).

It said onion exports were banned to ensure domestic supply due to lower kharif and rabi seasons in the country in 2023-24 compared to the previous year. This increases the demand in the international market. Indian agency National Cooperation Exports Limited (NCEL) exports onions to these countries. They procure onions from internal sources through e-platform at lowest price (L1). Then, on a 100% advance payment basis, the rates are negotiated and supplied to the agencies or government-designated agencies in the destination countries.

NCEL fixes the prices with the buyers taking into consideration the prices of the countries where onion is bought, international and domestic prices. Now the quotas are allocated according to the demand of the countries where onion export is allowed.

Maharashtra is the largest onion producer in India. They are the largest supplier of onions to NCEL for export.

Earlier, Bangladesh had sent a formal letter to the Indian government to allow the export of certain quantities of onion to reduce the price of onion in the country's market during the holy month of Ramadan.

In addition, the country's government has allowed the export of additional 2000 metric tons of white onion. These onions are mainly exported to Middle East and some European countries. Due to the high production cost of white onion, its price is relatively high.

India is the world's largest onion exporter. The country's government had imposed a ban on onion exports till March 31, 2024 in December last year to maintain supply in the domestic market. Later it was extended indefinitely. The new decision to export onions is good news for India's friendly countries.

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