Pakistan Eyes $4 Billion from Middle East Banks

Laborers busy in unloading fruits from truck at market in Peshawar (AFP)
Laborers busy in unloading fruits from truck at market in Peshawar (AFP)
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Pakistan Eyes $4 Billion from Middle East Banks

Laborers busy in unloading fruits from truck at market in Peshawar (AFP)
Laborers busy in unloading fruits from truck at market in Peshawar (AFP)

State Bank of Pakistan Governor Jameel Ahmad said his country aims to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year, as the country looks to plug its external financing gap.

In a wide-ranging interview with Reuters, Ahmad said Pakistan was also in the “advanced stages” of securing $2 billion in additional external financing required for International Monetary Fund approval of a $7 billion bailout program.

This came as Pakistan is making good progress with the International Monetary Fund and hopes to get board approval in September for a new $7 billion loan program, Pakistan's Finance Minister Muhammad Aurangzeb said last Wednesday.

Pakistan and the IMF reached an agreement on the 37-month loan program in July. The IMF said the program was subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan's development and bilateral partners.”

In his interview with Reuters on Tuesday, Ahmad said he expected the country's gross financing needs would be smoothly met - both over the next fiscal year and in the medium term.

In addition, Ahmad said the central bank reckoned Pakistan's gross financing needs for the coming years would be lower than the 5.5% of gross domestic product projected by the IMF in its latest country report in May.

Asked about monetary policy, Ahmad said recent interest rate cuts in Pakistan have had the desired effect, with inflation continuing to slow and the current account remaining under control, despite the cuts.

Pakistan's annual consumer price index inflation was 11.1% in July, having fallen from highs of over 30% in 2023.

“The Monetary Policy Committee will review all these developments,” Ahmad said, adding that future rate decisions could not be pre-determined.

Pakistan's central bank cut rates for two straight meetings from a historic high of 22% to 19.5%, and will meet again to review monetary policy on September 12.

There have been some concerns in markets that the government might take advantage of lower interest rates to borrow more, but the central bank chief said this was not his expectation.

“We understand that the government will continue on the path of fiscal consolidation, notwithstanding the reduction in interest rates,” said Ahmad.



Saudi Arabia to Host 4th Future Minerals Forum in January

Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud. (SPA)
Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud. (SPA)
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Saudi Arabia to Host 4th Future Minerals Forum in January

Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud. (SPA)
Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud. (SPA)

Under the Patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, Saudi Arabia is set to host the fourth edition of the world’s leading platform on minerals, the Future Minerals Forum (FMF), from January 14 to 16, 2025.

Held in Riyadh, the FMF, convened by the Ministry of Industry and Mineral Resources, is a unique government-led platform and an inclusive multi-stakeholder conference where the world’s top decision makers come together to drive action on tough challenges, where minerals are placed at the top of the global agenda as key to development, global prosperity, and the energy transition.

Since 2022, FMF has focused on fostering collaboration amongst minerals-producing nations, promoting sustainability initiatives to build trust, and creating a resilient supply chain of critical minerals that the world needs. Building on these successes, FMF 2025 will focus on “Delivering Impact”, the theme of this fourth edition.

Minister of Industry and Mineral Resources Bandar Alkhorayef said that next year’s FMF is focused on creating and driving investment opportunities in the mining and mineral sector.

He said that FMF has become a prominent global forum for all stakeholders in the mineral sector, from governments to mining companies, financial institutions, service companies, research centers, and academic institutions.

He further pointed out that the conference provides a platform to discuss the challenges facing the mining and minerals sector, with opportunities to proffer concrete solutions, at regional and international levels, to tackle these challenges.

“The upcoming Ministerial Roundtable will engage participation from 100 countries. This extensive collaboration will include working groups comprising government bodies and 40 organizations, including international organizations, NGOs and trade associations. These groups will collaborate to implement the initiatives and strategies established during the last MRT, driving forward the shared goals of sustainable development and innovation in the global mineral sector,” the minister added.

FMF will kick off on January 14, with a government-led Ministerial Roundtable, which will be followed by the Conference and Exhibition (January 15-16), where participants will learn from experts who will speak about important topics.

The program this year will focus on new voices on critical minerals, highlighting downstream perspectives and new regional perspectives, including the Super Region spanning Africa, Western and Central Asia, and Latin America; delivering investment partnerships in supplier countries that will include the entire mineral value chain; minerals’ contribution to society; green technology and AI revolution; and country and project showcase.

While preparations are in top gear for FMF 2025, some notable figures in the mining, mineral and industrial sectors have already been confirmed to speak at the forum. They include Tom Palmer, CEO of Newmont Corporation, the world's largest gold mining company; Jonathan Price, president and CEO of Teck Resources, one of Canada's leading mining companies; Dominic Barton, chairman of Rio Tinto, one of the world's largest mining companies; and Mark Cutifani, chairman of Vale Base Metals.

Robert Friedland, founder and co-CEO of Ivanhoe Mines; Bob Wilt, CEO of Maaden; Jeremy Weir, chairman and CEO of Trafigura; Duncan Wanblad, CEO of Anglo American; and Rohitesh Dhawan, CEO of the International Council on Mining and Metals, will also feature among other distinguished personalities.

Since its inception in 2022, FMF has charted many progressive initiatives, such as being a voice for the Super Region and other supplier countries.

In 2023, the Ministerial Roundtable participants agreed to collaborate on four initiatives: development of a regional critical minerals framework to promote global collaboration and maximize the creation of value in supplier countries; creation of green metals hubs in the Super Region enabled by new technologies and powered by renewable energy; development of a framework setting our regional expectations for the responsible production of minerals based on transparency of supply chains; and creation of centers of excellence in the Super Region covering Africa, Western, and Central Asia as foundational pillars for capacity building across mineral value chains.

The third edition of FMF brought together over 14,000 participants from 133 countries, including ministers, senior government officials, leaders of international organizations, and C-level executives from global mining and mineral companies. The forum also saw the signing of 75 minerals deals worth around SAR75 billion.