News
Pakistan reaches agreement with IMF to resume loan
Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF), a milestone that would pave the way for the release of an additional $1.2 billion in loans and unlock more funding, news agencies reported.
The IMF will also consider an extension of the facility to end-June 2023, it said in a statement. The accord will make additional funds available once the board approves, taking the extended loan facility with Pakistan to about $7 billion, it said.
Funds from the IMF will help avert a potential default, and pave the way for more aid from other multilateral institutions and friendly nations. Pakistan needs at least $41 billion in the next 12 months to repay debt and fund imports as foreign-exchange reserves shrink to a level that could only cover less than two months of imports.
Pakistan’s rupee, dollar bonds and stocks rose as investors cheered the prospect of a bailout. The country requires at least $41 billion through June next year to keep the foreign-exchange stock at a “respectable” level and repay debts, the finance minister has said.The nation’s dollar bonds due in December was indicated 2.2 cents higher at 90.04 per dollar, while debt due in April 2031 was quoted 0.2 cents higher.
Pakistan’s rupee strengthened as much as 1% to 208.2 a dollar, while the benchmark KSE-100 Index of stocks gained 0.9%.Nomura is overweight Pakistan’s 2022 Islamic bond, which has a high likelihood of being redeemed at par in December, according to the note.To win IMF’s accord, Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months even as inflation has accelerated to a 13-year-high.The $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, according to a government official familiar with the matter.
Among the policy priorities for the IMF are: Enabling a proactive monetary policy to slow inflation to 5%-7% over the medium term and greater exchange rate flexibility to rebuild reservesTargeting an underlying primary surplus of 0.4% of gross domestic product by restraining spending and boosting revenue Resuming reforms including timely adjustment of power tariffReducing poverty levels, strengthening governance and social safety
SOURCE: BLOOMBERG
News
Pakistan naval trio leaves Colombo after goodwill visit
Wrapping up their goodwill and replenishment visit, the Pakistan Navy ships ‘PNS Taimur’ and ‘PNS Aslat’, along with the submarine ‘PNS/M Hangor’, departed the island on 04 Jun 26. The naval units, which arrived in Sri Lanka on 01 June, were accorded a traditional naval send-off by the Sri Lanka Navy at the Port of Colombo, upon their departure.
During their stay, the Commanding Officers of Pakistan Navy ships and submarine called on the Commander Western Naval Area and the Flag Officer Commanding Naval Fleet at the Western Naval Command Headquarters, where discussions were held on several matters of mutual interest.
Meanwhile, Sri Lanka Navy personnel had the opportunity to visit the visiting Pakistan Navy ships and submarine. Furthermore, the crews of the visiting vessels explored the rich heritage of Sri Lanka, taking time to tour several culturally significant landmarks across the island.
News
China, Lanka intensify cooperation to fight cross-border crimes spreading across Asia and beyond
China and Sri Lanka have intensified joint law enforcement efforts to combat cross-border online gambling and telecom fraud, crimes that authorities warn are increasingly spreading across Asia and beyond.
The Chinese Embassy in Colombo said both countries are working closely to dismantle scam centres and fraud networks that have relocated to Sri Lanka from other parts of Southeast Asia. The Embassy noted that such operations often intertwine with human trafficking and other serious crimes, posing grave risks to public security and social stability.
China’s position on cross-border gambling remains firm: Chinese capital is prohibited from investing in overseas casinos, citizens are barred from operating them, and foreign casinos are forbidden from soliciting Chinese nationals. The Embassy stressed that gambling “almost invariably leads to financial ruin,” with tens of thousands of Chinese citizens suffering losses and harm. Recent amendments to China’s Criminal Law have criminalised cross-border gambling activities.
The Embassy pointed out that Sri Lankan authorities have carried out multiple raids in recent months, dismantling gambling and fraud dens and arresting suspects from several countries. Several Chinese nationals, involved in fraud-related crimes, have been handed over to Chinese authorities, producing what officials described as a strong deterrent effect.
The Chinese Embassy praised the efforts of Sri Lanka’s ministries of Foreign Affairs, Finance, and Public Security, particularly immigration and police officials, for their cooperation.
It warned that without firm and immediate measures, the spread of illegal gambling and fraud could damage Sri Lanka’s international image, undermine social stability, and harm the safety and security of its people.
China has already conducted similar law enforcement cooperation with countries including Spain, the UAE, Myanmar, and Cambodia, leading to arrests and repatriations of overseas fraud suspects. It has also proposed the creation of an international alliance against telecom and online fraud to coordinate global efforts, it said.
Going forward, China pledged to actively implement the Global Security Initiative and Global Civilization Initiative, while continuing to deepen law enforcement and security cooperation with Sri Lanka.
The Embassy said these efforts aim to safeguard lives and property, protect financial security, and build a “clean, safe, and beautiful Sri Lanka,” while contributing to a new global framework for combating transnational crime.
News
Asst. Manager, security officer arrested over Rs 30 mn snatch at Horana PB branch
An assistant manager and a security officer, attached to a state bank branch in Horana, have been arrested in connection with the robbery of more than Rs. 30 million that was being transported to replenish automated teller machines (ATMs), Police said.
The two suspects were taken into custody on Friday after statements were recorded from them regarding the incident, which occurred on Wednesday afternoon at the Horana branch of the People’s Bank.
According to Police, a bank employee was carrying two bags containing cash through the rear entrance of the bank at around 2.45 p.m. when an individual, who had arrived on foot, allegedly snatched the bags and fled the scene.
The stolen money, amounting to approximately Rs. 30.5 million, had been prepared for distribution to ATM machines and transportation to other bank branches. Earlier reports had estimated the loss at around Rs. 35 million.
Investigators subsequently arrested a suspect believed to have been directly involved in the robbery and recovered Rs. 17 million of the stolen cash.
Police have not disclosed the exact circumstances that led to the arrest of the assistant manager and security officer but said investigations uncovered information linking them to the incident.
The Western Province North Crime Division is conducting further investigations to determine whether additional suspects were involved and to recover the remaining stolen money.
The daring daylight robbery has raised concerns over security procedures employed during transportation of large sums of cash to/from banking institutions.Further investigations are continuing.
by Norman Palihawadane
-
News4 days agoLankan duo emerge winners in Latin dance championship held in Blackpool, UK
-
Business5 days agoIMF’s unstated rate:Sri Lanka’s $695m loan costs about 5.33% per annum
-
Latest News2 days agoKusal Mendis, Pathum Nissanka, bowlers put Sri Lanka 1-0 up
-
News2 days agoNew US tariffs proposed on 60 countries, including Sri Lanka
-
Business5 days agoSri Lankan scientist-innovator Milinda Edirisinghe introduces AI-integrated gem testing system to gemological world
-
Features6 days agoAre threats to Buddha Sasana external or from within?
-
News5 days agoUNP challenges NPP move to amend Vihara – Devalagam Act
-
News4 days agoSri Lankan teen killed in Chennai clash; three arrested
