Latest news with #HBL
Zawya
9 hours ago
- Business
- Zawya
Pakistan signs $4.5bln loans with local banks to ease power sector debt
Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupee ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, government officials said on Friday. The government, which owns or controls much of the power infrastructure, is grappling with ballooning 'circular debt', unpaid bills and subsidies, that has choked the sector and weighed on the economy. The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan's $7 billion IMF programme. Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult. 'Eighteen commercial banks will provide the loans through Islamic financing,' Khurram Schehzad, adviser to the finance minister, told Reuters. The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9%, a formula agreed on by the IMF. "It will be repaid in 24 quarterly instalments over six years," and will not add to public debt, Power Minister Awais Leghari said. Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5%, and older loans ranging slightly above benchmark rates. Meezan Bank, HBL, National Bank of Pakistan and UBL were among the banks participating in the deal. The government expects to allocate 323 billion rupees annually to repay the loan, capped at 1.938 trillion rupees over six years. The agreement also aligns with Pakistan's target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets. ($1 = 283.5000 Pakistani rupees)
Reuters
10 hours ago
- Business
- Reuters
Pakistan signs $4.5 billion loans with local banks to ease power sector debt
KARACHI, June 20 (Reuters) - Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupee ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, the power minister said on Friday. The government, which owns or controls much of the power infrastructure, is grappling with ballooning 'circular debt', unpaid bills and subsidies, that has choked the sector and weighed on the economy. The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan's $7 billion IMF programme. Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult. 'Eighteen commercial banks will provide these loans through Islamic financing,' Power Minister Awais Leghari told Reuters. 'It will be repaid in 24 quarterly instalments over six years.' The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9%, a formula agreed on by the IMF. Leghari said it will not add to public debt. Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5%, and older loans ranging slightly above benchmark rates. Meezan Bank ( opens new tab, HBL ( opens new tab, National Bank of Pakistan ( opens new tab and UBL ( opens new tab were among the banks participating in the deal, he said. The government expects to allocate 323 billion rupees annually to repay the loan, capped at 1.938 trillion rupees over six years. The agreement also aligns with Pakistan's target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets. ($1 = 283.5000 Pakistani rupees)
Business Recorder
5 days ago
- Business
- Business Recorder
HBL's ‘Agahi Program' drives agricultural progress in Pakpattan
KARACHI: HBL held the 'Agahi Program' for farmers in Pakpattan, Punjab. The event took place at the Dera of HBL Zarai. State Bank of Pakistan (SBP) also collaborated in the event. Through this initiative, HBL provided farmers with Agri-finance options, advanced agronomy practices, and efficient farm management techniques. Since 2018, over 30,000 farmers have benefited from the program. Through this event, the Bank aims to promote sustainable farming practices and financial inclusion, thereby contributing to Pakistan's economic growth. The Bank continues to build a stronger, more resilient farming community and their agricultural livelihoods. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
Pakistan's manufacturing PMI falls amid geopolitical unrest & supply disruptions
KARACHI: The headline HBL Pakistan Manufacturing PMI fell to an 8-month low of 51.1 in May from 51.9 in April, reflecting a notable slowdown in business activity from the series peak in December. Analysts attribute the decline to disruptions caused by the recent geopolitical unrest and raw material shortages linked to road closures. The HBL S&P Manufacturing PMI, serves as a key economic indicator, offering a clearer & timely signal of business conditions compared to traditional GDP data. Unlike GDP, which is published quarterly and often revised, the PMI delivers real-time economic signals, showing a stronger correlation with equity markets. The exclusion of public sector activities partially helps explain why the PMI survey's global output index exhibits a higher correlation with equities. Humaira Qamar, Head of Equities & Research - HBL, commented on the latest report, stating 'The moderation in business activity was driven by a contraction in new orders—the most forward-looking subindex—emanating from geopolitical unrest and logistical disruptions. Export orders declined for a second consecutive month, further dampening business sentiment. While output expanded, it was mainly driven by the completion of existing orders. Despite temporary headwinds, including tariffs & geopolitical unrest, the outlook for the manufacturing sector remains optimistic. The survey indicates strong business confidence in production growth over the next year, fueled by expectations of improving demand.' Humaira mentioned that although interest rates are at their lowest in 3 years, the government's contractionary fiscal stance continues to keep growth prospects in check. Provisional estimates showed GDP growing at a modest 2.7% in FY25, up only slightly from 2.5% last year. This year's Federal budget is set for release on June 10 in close coordination with the IMF, where the authorities are expected to continue strong consolidation efforts, targeting a primary budget surplus of 1.6% of GDP, the third consecutive surplus. According to Humaira, FBR tax revenues are expected to rise 16%, outpacing nominal GDP growth, pointing to the limited scope for tax relief in the upcoming budget. She further stated 'To uphold fiscal discipline & offset potential tax shortfalls, the government will likely bolster non-tax revenues—through higher levies on petroleum products—and tighten development expenditures. However, defense spending may remain insulated from cuts, given the prevailing geopolitical landscape.' Copyright Business Recorder, 2025
Yahoo
04-06-2025
- Health
- Yahoo
Local organization hosts World Bicycle Day celebration in Hawaii
HONOLULU (KHON2) — Gov. Josh Green has proclaimed that June 3 is World Bicycling Day in Hawaii. Here's a look at how it was being honored. In recognition of a half-century of work to motivate more people to ride bicycles, WakeUp2Day's Chris Latronic went live on the Ala Moana pedestrian bridge to learn more and ride with Hawaii Bicycling League's Advocacy Director, Eduardo Hernandez. In April 2018, the United Nations General Assembly declared June 3 as World Bicycle Day. The resolution for World Bicycle Day recognizes 'the uniqueness, longevity and versatility of the bicycle, which has been in use for two centuries, and that is a simple, affordable, reliable, clean and environmentally fit sustainable means of transport.' In April 2025, the office of Gov. Josh Green presented Hawai'i Bicycling League (HBL) with a proclamation declaring June 3, 2025, to be World Bicycle Day in Hawai'i in recognition of the organization's half-century of work to motivate more people to ride bicycles for recreation, health, and transportation. In doing so, Hawai'i became the first state in the nation to recognize World Bicycle Day at the state level. 'At HBL, we celebrate bicycles every day, but officially being part of a global movement for sustainability helps us to elevate the public conversation about how bicycles are a solution to so many challenges facing individuals and communities across the islands and around the world,' said HBL advocacy director Eduardo Hernandez. HBL's networks for promoting the economic, health and environmental benefits of bicycling include individuals and organizations on every island and at every level of Hawaiʻi government, from local to state to national. For World Bicycle Day in Hawai'i, HBL will be celebrating with a potluck bicycle pa'aina gathering at Kolowalu Park Makai in Honolulu, with brief remarks from executive director Travis Counsell and other colleagues. The organization will also be celebrating the day with a group ride in protected bicycle lanes to and over a newly opened bridge over Ala Moana Blvd. HBL said that type of infrastructure helps create safer experiences for all people, whether they walk, ride, roll, or drive a car. Learn more about how HBL is celebrating World Bicycle Day . Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
