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Pakistan economy under the PDM government & now the caretaker administration

Another shock of inflation to the public, the government has increased the price of LPG.

The Oil and Gas Regulatory Authority (Ogra) has issued a LPG price notification for the month of October 2023, according to which the price of LPG per kg has been increased by Rs 21 and the price of a domestic cylinder has been increased by Rs 246.

According to Ogra, the price of a domestic cylinder has increased from Rs 2,833 to Rs 3,800. The price of commercial cylinder has been increased by Rs 947 after which the price of commercial cylinder has increased from Rs 10 thousand 902 to Rs 11 thousand 849.

Source: Express News
 
German Consul General in Karachi Dr Rudiger Lotz said that Germany will provide €2 million in aid to Pakistan till 2027 under the World Food Program.

He said this during a book launch event organized by German-Pakistan Chamber of Commerce & Industry (GPCCI) here in Karachi.

The book launch event titled, Landmarks of Pakistan contained pen and ink drawings of historical places of Pakistan by a German Painter, Ms. Ute Elpers.

German Consul General in Karachi Dr Rudiger Lotz said, tonight it is an event where we do not talk politics or business but about culture. The book has landmarks covering the country, all four provinces of Pakistan. We have in the book the Faisal Mosque in Islamabad and the Quaid-i-Azam Mausoleum in Karachi and so on. What I found particularly charming is the old who loved this country, its people and culture and started to take her ink and pen to draw these buildings and the love of the country which she had never seen.

Speaking at the event, caretaker Tourism Minister Arshad Wali Mohammad said, today we have gathered to celebrate a remarkable fusion of art, culture and international cooperation exemplified by this coffee table book, an initiative of the German Pakistan Chamber of Commerce and Industry (GPCCI). This project underscores the enduring ties between Germany and Pakistan highlighting cultural exchange and fostering mutual understanding.
Who was Ute Elpers?

Ute Elpers (1935-2019) was a highly gifted artist trained as a porcelain and ceramic painter who worked as a technical drawer in road and bridge construction. She also learned the art of using special ink pens. In 2003 Ute became a member of the Humanity Care Foundation based in Muenster, Germany. She was encouraged by Col Folker Flasse (retd), President of Humanity Care Foundation, a charitable organization registered in Germany and Pakistan, to support its humanitarian work in Pakistan. In 2005 Ute started her pen and ink drawings of historic buildings, monuments, mausoleums, shrines and landscapes. She portrayed through her pen and ink drawings the rich and diverse architectural and cultural heritage of Pakistan.

Source: ARY News
 
The Pakistani Rupee continues to strengthen against the US dollar, reaching Rs285.75 in interbank trading, thanks to crackdowns on dollar hoarding and illegal currency markets.
 
The value of the Pakistani rupee is continuously improving against the US dollar. Even today, the value of the dollar has decreased by more than 1 rupee in the interbank.

In interbank dollar price has recorded a decrease of 1 rupee 2 paise, the dollar is trading at 284 rupees 70 paisa in interbank, the total price of dollar has decreased by 22 rupees 40 paise in a month.

On the other hand, the price of dollar has decreased by 1 rupee 50 paisa in the open market, the dollar is selling at 284 rupees 50 paisa in the open market, the dollar has decreased by 48 rupees 50 paisa from the highest level in the open market.

Pakistan Stock Exchange also got a positive start where the 100 index rose by 250 points and recovered to the 47000 mark.

Source: Dunya News
 
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Pain is coming

Pakistan’s most important decision-makers are now facing a dire and extreme choice. They can either choose to inflict some long overdue pain on elite rent seekers, or they can choose to...
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Pakistan’s most important decision-makers are now facing a dire and extreme choice. They can either choose to inflict some long overdue pain on elite rent seekers, or they can choose to inflict even more pain on the already long suffering middle class and the poor.

That is the clear economic choice that now confronts Pakistani decision-makers. Continue the existing elite consensus of high subsidy-low tax for the rich, and runaway inflation, dysfunctional public services and misery for the poor. Or stop the bleeding by ending the subsidies raj, ending amnesties, ending low or no tax wealth and asset accumulation. Pain (or rather, more pain) is coming. Pakistan’s decision-makers just have to choose who will feel it. The rich? Or the poor?

Last fiscal year, government expenditure was Rs16.1 trillion, whilst government revenue was Rs9.6 trillion. Some people say that this is an indicator that Pakistan spends too much money. It isn’t. It is an indicator that Pakistan does not collect enough money or revenue. It does not have enough revenue because Pakistan is a high subsidy and low tax zone for the rich and super rich. When the most capable in a society refuse to pay into the system, the system gets stretched.

Last year, this stretch was a mean one. Pakistan had to find Rs6.5 trillion from somewhere. It found it through borrowing money – mostly from Pakistani banks. Where do the banks get that money? They get it from the State Bank of Pakistan. Where does the State Bank get this money? It just prints it. Khurram Husain estimates that in the past three months alone, somewhere to the tune of Rs10 trillion in new rupees have been added to our economy. Mostly so that Pakistani elites can continue living in the magical world of high subsidies (for the elite) and low taxes (for the elite).

What happens when a country keeps borrowing money without collecting some of that money in the form of taxes? Well, the future of that country becomes more and more bleak with each additional rupee borrowed, especially in a world of high interest rates or markups. More urgently, all this borrowing is taking place not from within a given stock of money, but from a constantly and rapidly expanding stock of money. The printing of money is dangerous. To understand how dangerous this is, we must simplify a little. Imagine it is the beginning of time, and there is only one hundred dollars out there in the universe, and only one hundred rupees. Then, all other things equal, the rupee to dollar exchange rate in this imaginary world would be Re1 to $1.

Now imagine that someone goes out and decides to start printing rupees. They go and print an extra hundred rupees. The rupee to dollar rate would then just straight up double to Rs2 to $1. You print another hundred and the rupee to dollar rate would rise to Rs3 to $1. Last month, the rupee to dollar rate crossed the Rs300 to $1 barrier – so you can imagine just how many rupees have been printed.

Of course, in this scenario, we have been a bit unfair. All other things are not equal. The dollar is the most powerful fiat currency on the planet. The Pakistani rupee has had to carry the burdens of wars, poverty, post-colonial baggage, a partition in 1971, constant geopolitical gamesmanship, terrorism and an unrelenting existential adversary. So if you were a Pakistani decision-maker – in charge of directing or governing the economy – the question would be simple. Knowing that all other things are not equal, would you be more careful (red pill) about how many rupees you print and how rapidly you cheapen your currency, or would you be less careful (blue pill) and continue undermining your currency?

The Pakistani decision-maker has, so far, kept on choosing the blue pill. This is how, broadly, we went from one dollar costing Rs100, then Rs200, and then Rs300. Then, last month, a bunch of phone calls were made, people were threatened, and the fear of the Lord Almighty was restored among ‘rogue’ speculators and ‘illegal’ hoarding outfits. And ‘abracadabra’: like magic, our poor old rupee started to stand up to the great US dollar.

In a short period of time, the rupee has gained 6.0 per cent against the dollar. And just like that, the sense of panic and urgency for meaningful and serious changes to how the economy is governed has been replaced by a familiar smugness in Islamabad and Rawalpindi: “experts and naysayers are always too pessimistic, but look, Pakistan is back, baby!” Decision-makers are awash in the afterglow of a successful effort to reign in the rate of the rupee to the US dollar. The sycophants and charlatans that whisper economic alchemy waswasa into the ears of decision-makers are buzzing with excitement.

Do the remarkable gains of the rupee against the dollar merit mockery? Absolutely not. But they should not be celebrated either. Any gains in the value of the rupee – whilst the country’s poorest and most vulnerable buckle under inflationary pressures – are welcome. But we should ask ourselves more about these gains. How were such gains achieved so swiftly?

If all it takes to wipe out twenty rupees per dollar is a crackdown on hoarding and smuggling, curious minds and sharp intellects should be less focused on buying mithai, and more focused on asking why such a crackdown requires the leadership of the military to intervene. In what kind of a country is it the job of a military (in the midst of a new war on terror) to have to force speculators and hoarders to take a break from their loot and plunder? And does anyone seriously believe that this loot and plunder won’t be renewed as soon as Pakistani decision-makers are distracted by the next major crisis?

All countries borrow money to supplement their tax collection. Pakistan taxes the poor and the working class to supplement its borrowing. Both the overarching economic crisis in Pakistan and the metastasizing problem of a cheapening rupee are anchored in the absence of a reasonable fiscal equation in the country.

In European Union countries, almost all of whom carry a much larger stock of both domestic and external debt than Pakistan, the fiscal deficit is on average about 3.0 per cent of GDP. Traditionally, international financial institutions expect countries like Pakistan to run fiscal deficits of roughly 4.0 per cent. Last year, Pakistan’s fiscal deficit was 7.7 per cent. That 3.7 per cent difference isn’t small. It comes to around Rs3.4 trillion. If Pakistan was generating an extra Rs3.4 trillion in taxes, it would neither need to print so many rupees and watch the rupee fall against the dollar, nor need to borrow so much money at historically high interest rates that its debt servicing bills keep ballooning. Where can Pakistan find Rs3.4 trillion in taxes?

There are 37.5 million households in Pakistan. The only segment of the population that should be the focus of taxation is the highest income bracket. So let’s focus only on the top 10 per cent, or about 3.75 million households. If we were to split the burden of Rs3.4 trillion upon these top 10 per cent of households, we would need each household to pay roughly Rs76,000 each month (around $250), or a total of around Rs907,000 per annum.

When this data is presented to decision-makers, the super-rich will scream bloody murder. In part they will be equipped with data about average income levels of the highest income quintile. But this should only serve to whet the appetite of decision-makers to ensure equity and fairness in taxation – and to engineer a nuanced, focused and targeted tax collection exercise in which the richest and most able carry the largest share of this Rs3.4 trillion tax vacuum.

Ultimately Pakistani decision-makers must realize that the countries they constantly seek bailouts from, like the Kingdom of Saudi Arabia and the People’s Republic of China, have all already gone through this exercise of learning how to collect revenue from their rich and super rich.

Saudi Arabia is an economic juggernaut today in part because it has learnt to have ambitions that are far grander than its oil wealth. Non-oil revenue in Saudi Arabia in the second quarter of 2023 surged to 43 per cent of total revenue. Of this non-oil revenue, the vast majority came from taxes on income, profit, capital gains, goods and services. In short, Saudi Arabia has chosen to be a country where the most able carry the biggest burden.

The world awaits Pakistan to make a similar choice. The signals from Pakistani decision-makers so far are not encouraging. A rising rupee can delay the dawn of reality for a short while, but it cannot evade the inevitable. Pain is coming.
 
The weekly inflation, measured by the Sensitive Price Indicator (SPI), witnessed an increase of 0.11 per cent during the week ended on October 5, the Pakistan Bureau of Statistics (PBS) report showed Friday.

During the week, out of 51 items, prices of 19 (37.26%) items increased, 16 (31.37%) items decreased, and 16 (31.37%) items remained stable.

Major increase is observed in the prices of food items, Tomatoes (12.45%), Onions (11.96%), Garlic (2.59%), Potatoes (1.81%), Cooked Daal (1.27%), Eggs (0.84%), Beef (0.53%) and Bread (0.52%) non-food item, LPG (3.11%), Firewood (0.76%) and Long Cloth (0.51%).

On the other hand major decrease is observed in the prices of Diesel (3.33%), Chicken (2.78%), Petrol (2.40%), Pulse Masoor (1.80%), Pulse Gram (1.73%), Gur (1.14%), Pulse Moong (0.58%), Pulse Mash (0.33%), Wheat Flour (0.32%) and Vegetable Ghee (0.20%).

The year on year trend depicts increase of 37.07%, Electricity Charges for Q1 (118.16%), Gas Charges for Q1 (108.38%), Cigarettes (94.69%), Rice Basmati Broken (87.60%), Chilies Powder (84.84%), Sugar (79.55%), Rice Irri-6/9 (78.69%), Wheat Flour (77.91%), Gur (67.68%), Tea Lipton (60.72%), Gents Sponge Chappal (58.05%), Salt Powdered (56.48%), Garlic (54.78%), Gents Sandal (53.37%), Petrol (43.70%) and Potatoes (42.99%), while decrease is observed in the prices of Tomatoes (54.05%), Onions (18.21%), Pulse Gram (2.67%) and Mustard Oil (0.16%).

Source: ARY
 

‘Internet shutdowns cost Pakistan Rs1.3b in direct loss’​


In a recent study conducted by the Pakistan Institute of Development Economics (PIDE), alarming findings have surfaced, shedding light on the profound economic consequences of internet shutdowns in Pakistan.

The study, titled "The Economic Cost of Internet Closure," reveals the toll such disruptions take on the nation's economy.

PIDE estimates indicate that a 24-hour closure of internet services results in a direct loss of Rs1.3 billion, equivalent to a 0.57 per cent of the daily GDP average for the country.

According to Dr Nadeemul Haque, Vice Chancellor of PIDE and Mohammad Shaaf Najib, Research Fellow at PIDE, the internet has become a fundamental necessity in modern times. However, despite its growing importance, Pakistan's internet infrastructure lags behind in terms of both quality and coverage, highlighting the need for substantial improvements.

Key findings of the study

Online cab services, a cornerstone of modern transportation, experience a staggering 97 per cent reduction in the number of rides on days when the internet is shut down. This downturn translates into a substantial daily loss of Rs29 to 32 million for the industry.

Online food delivery services suffer a 75 per cent reduction in the number of orders during internet shutdowns, resulting in a significant daily loss of Rs135 million.

The freelance community, a vital contributor to the nation's economy, bears the significant losses due to internet disruptions. Denial of orders to freelance workers leads to over $1.3 million in lost revenue, equivalent to Rs390 million. These disruptions impact both individual livelihoods and the national economy as a whole.

The suspension of 3G/4G services for a single day causes a loss of Rs450 million to the telecommunication sector alone.

Dr Nadeemul Haque, Vice Chancellor of PIDE, emphasises that access to high-quality internet not only opens up opportunities for the youth, particularly in remote areas, but also plays a pivotal role in bridging the gap between the privileged and the common public.

The use of online tools for education and professional purposes empowers youth from rural regions to compete on a national and international level, he added.

Internet shutdowns not only disrupt daily life but also have severe economic repercussions, affecting various sectors and the livelihoods of individuals.

tribune.com.pk

‘Internet shutdowns cost Pakistan Rs1.3b in direct loss’ | The Express Tribune

PIDE study reveals 24-hour closure of internet services results in loss equivalent to 0.57% of daily GDP average
tribune.com.pk tribune.com.pk
 
The World Bank (WB) has called for pakistan to gradually end funding of dissolved ministries.

According to details, the World Bank expressed reservations over Pakistan's expenditure of Rs 1124 billion and gave Pakistan a formula to reduce expenditure.

Sources said that the federal government can save by reducing various expenses, rs 167 billion can be saved by eliminating tariff differential subsidy and Rs 20 billion can be saved by eliminating or reducing tubewells subsidy.

The World Bank has called for a gradual end to funding of dissolved ministries, saying the move could save the federal government Rs328 billion.

The World Bank demanded that the provinces' share be included in the bisp's expenditure and the inclusion of the provinces in the funds could save the federation Rs217 billion.

The federal government is funding service programs in the provinces, it is possible to save Rs 315 billion by allocating expenditure and Rs 7 billion by eliminating wet sport price subsidy.

Source: ARY
 
Crude oil prices have increased in the international market due to the increase in intense tension between Israel and Palestine.

Brent crude rose $4.18, or 4.94 percent, to $88.76 a barrel in Asian trade, while U.S. West Texas Intermediate crude rose $3.40, or about 4.1 percent, to $86.19 a barrel on fears of possible supply disruptions from Iran due to increased tensions.

It should be noted that during the last two weeks, the price of crude oil in the global market has been continuously declining and its price has decreased by more than 2.5 percent.

According to experts, the fall in the price of crude oil is due to fears of a slowdown in the global economy and low demand. On the other hand, OPEC is unlikely to reduce oil production further.

The rise in oil prices compensated for some of the damage last week as military clashes between Israel and the Palestinian group Hamas raised fears that the conflict could affect oil supplies from the Middle East.

Source: ARY
 
Drastic pension reforms proposed for public sector retirees
Ministry of Finance has proposed some drastic changes for pension for retired public sector employees in a summary forwarded to the prime minister

While granting an exemption to the defence and armed forces personnel, the Ministry of Finance has proposed some drastic changes for pension for retired public sector employees in a summary forwarded to the prime minister.

It also recommended the adoption of calculation of pension on the basis of the last three years’ drawn salary against the existing formula for granting pension on the last drawn pay. It also recommended changing the commutation formula for payment of lump sum upfront amount at the time of retirement and proposed to be slashed to 25 percent and 75 percent payment in monthly instalments in subsequent years, instead of the existing formula of 35 percent at the time of retirement and then 65 percent in subsequent years of retirement.

Similarly, the pension to 3rd tier, such as unmarried/ divorced and widow daughters, was restricted to only 10 years instead of the existing practice of lifetime but the exemption will be available for Shuhada families up to 20 years and to disabled sons/ daughters for a lifetime.

In future, an increase in pension would be indexed with CPI (80 percent of the last three years) with a maximum 10 percent increase per annum. Early retirement will be discouraged and a minimum three percent and maximum 10 percent penalty will be admissible to the retiring individuals.

A top official of the Finance Ministry on Tuesday night told this correspondent that the pension reforms have not yet been notified. Under the titled “Pension Reforms” summary forwarded to the prime minister during the last PDM-led regime, only one pension is entitled. There will be an option available to select a higher one and surrender all others. Under the existing rules, multiple pensions are authorised to individuals in case of the death of a spouse/ children and father, if applicable. The families of Shuhada and those in service will not be affected.

For individuals if re-employed in the public sector, both the benefits including salary and pension will not be authorised by the federal government. The re-hired person will have to choose either salary or the pension. For Armed Forces personnel, both pension and pay will be admissible till the age of 60 years in case of re-employment in the public sector. The average retirement age in the armed forces are as under as for Grade 20, is around 50-52 years, for Grade 19, the retiring age is 46/48 years, for Grade 18 42/44 years and for soldiers, the retiring age is 38/40 years on average.

At the moment, every year the increase in pension is authorised on compounding effect, which means percentage increases are given on the last drawn pension. Now the ministry has proposed that an increase in pension will be given at the time of retirement.

The pension will be calculated on the basis of the last three years’ pay against the existing practice of granting pension on the basis of the last drawn salary at the time of retirement.

www.thenews.com.pk

Drastic pension reforms proposed for public sector retirees

ISLAMABAD: While granting an exemption to the defence and armed forces personnel, the Ministry of Finance has proposed some drastic changes for pension for retired public sector employees in a...
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Ministry cracks down on daily allowance abuses by bureaucrats
In a move to curb widespread misuse of the daily allowance facility at the taxpayers’ expense, the Ministry of Finance has restricted payments for senior bureaucrats travelling overseas on foreign invitations.

The civil servants are reported to have been claiming daily allowances in hundreds of dollars, even though they are being paid for or looked after by international agencies, foreign governments, lenders or non-governmental organisations.

The practice has led to a significant drain on public funds.

The finance ministry has also directed the Accountant General Pakistan Revenue and Military Accountant General Offices to direct all account officers to scrutinise the bills in light of the new instructions before making payments.

“It has been observed that government officers are drawing Daily Allowance (DA) and other allowances from the public exchequer even for foreign tours/visits and short courses, which are fully funded by foreign governments or international agencies,” said an order issued by the Ministry of Finance, warning that this was “misinterpretation or incorrect application of the applicable rules”.

The ministry’s directive further elaborated that only 30pc of the DA would be permissible for government officials given “state guest” status by their host nation and are provided boarding and lodging.

Government officials attending fully sponsored seminars or training programmes do not qualify as state guests unless expressly declared by the host country, it said.

Secondly, officials travelling abroad to participate in events like training, seminars, international conferences, visits and programmes, where donor agencies or countries cover return air ticket, boarding, lodging and accommodation, are not eligible for the DA under the rules, irrespective of the duration of their stay.

The Ministry of Finance cited regulations from 2005, which permitted partial subsidies for specific short-term obligatory seminars, international conferences and symposiums.

However, “fully funded programmes by the donor agencies and countries are not covered under this policy”, it said.

It explained that government officials were entitled to full DA during the first week, followed by a fixed subsistence allowance for the rest of the training period, where the entire expenses of the training are borne by the government of Pakistan, excluding foreign technical assistance programmes.

The ministry stressed that “where the visit is fully funded, in each case while authorising visits and courses abroad, the relevant ministries and divisions should clearly mention in the notification of approval that the visit will be ‘at no cost to the government’.”

The notification reminded that cases seeking permission to travel abroad to attend trainings, meetings, seminars, etc., be processed by the cabinet division, adhering strictly to existing rules.


DAWN
 
The government’s recent decision to approve a substantial increase in gas tariffs, set to take effect from November 1, 2023, has significant implications for the public and the country’s economic situation.

This decision was made during a meeting of the Economic Coordination Committee (ECC) of the Cabinet, led by Finance Minister Dr Shamshad Akhtar. The gas tariff increase, reaching up to 193 per cent, will have a profound impact on the already inflation-weary masses.

This decision comes in anticipation of an impending review by the International Monetary Fund (IMF), scheduled for later in the month, which had urged Pakistan to address the escalating circular debt in the energy sector.

The approved plan involves various changes to gas tariffs. For protected consumers, the fixed monthly charges will increase from Rs10 to Rs400, while non-protected consumers will witness a rise from Rs460 to Rs1,000, with higher slabs potentially reaching up to Rs2,000.

Additionally, the government has raised local gas tariffs for different consumer groups, with non-protected domestic consumers facing a 173 per cent increase, commercial users a 136.4 per cent hike, exports an 86.4 per cent increase, and non-export industries a 117 per cent tariff rise.

Exporters will experience an 86 per cent tariff increase, effective November 1, 2023. It’s worth noting that the tariff hike was initially proposed to begin on October 1, 2023, but it has now been scheduled for implementation in November 2023.

The meeting also addressed other significant issues. The Ministry of Industries and Production presented a proposal to meet urea requirements for the Rabi season 2023–24, which was approved by the ECC. The committee also emphasised the need for uninterrupted gas supply to the fertiliser industry and urged provinces to play a more proactive role in sharing the importation cost.

Additionally, the ECC reviewed a summary from the Earthquake Reconstruction and Rehabilitation Authority (ERRA), which sought approval for a Technical supplementary grant of Rs484 million.

This grant aims to cover pay and allowances for 415 contract and project employees from July 2023 onwards. The ECC directed the Ministry of Planning, Development, and Special Initiatives to identify sources for financing ERRA employees’ salaries.

Lastly, the ECC approved a summary from the Ministry of Finance regarding the establishment of the National Credit Guarantee Company Limited.

This company will play a crucial role in supporting credit enhancement for Small and Medium Enterprises (SMEs), contributing to the development of these businesses.

In summary, the government’s decision to increase gas tariffs significantly will impact various consumer groups and is a response to economic challenges, especially the circular debt issue.

The ECC meeting covered multiple important topics, including measures to address urea requirements, financial support for earthquake reconstruction, and initiatives to boost SMEs through the National Credit Guarantee Company.

Source: The Current
 
Pak Suzuki Motor Company Ltd (PSMCL) has once again announced automobile and motorbike plant shutdown due to low inventory supply, ARY News reported on Tuesday.

According to Pak Suzuki’s announcement, due to a shortage of inventory level, the management of the company has decided to shut down motorcycle and automobile plants from November 1 to 3 and October 30 to November 3, respectively.

In the filing, Pak Suzuki said that the company’s imports adversely impacted clearance of import consignment which consequently affected inventory levels.

In the fiscal year 2022-2023, due to a challenging environment, low consumer purchasing power, and an increase in duties and taxes by the government, the demand for the auto sector has continuously declined.

It is pertinent to mention here that Pakistan’s auto sector remains engulfed in various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons.

Source: ARY
 
Federal Board of Revenue (FBR) Chairman Malik Amjad Zubair Towana says that FBR is not giving any tax exemption to anyone.

The meeting of the Senate Standing Committee on Finance was chaired by the Chairman of the Committee, Senator Mohsin Aziz, in which the Chairman FBR gave a briefing.

Malik Amjad Zubair Towana said that the World Bank might have mentioned the tax exemption in terms of agricultural tax or retailers. On this Senator Mohsin Aziz said that retailers are not paying tax at all. Senator Kamil Ali Agha, a member of the committee, asked what was done with the data that FBR had to increase the tax net.

Chairman FBR said that during the last fiscal year there was an increase of 12 lakh taxpayers, 50 lakh people out of 25 crore population are taxpayers, most of Pakistan's population consists of youth who have no income of their own.

He said that 40 percent of the population is related to agricultural taxes who are not paying taxes, there are a large number of housewives in Pakistan who are not included in the tax net.

Malik Amjad Zubair Towana said in the briefing that if 15 percent of people pay tax, it will look like everyone is paying tax, the World Bank has not shared anything with us, taxing agriculture is not the authority of FBR.

Source: ARY
 
The masses in the country have been grappling with economic hardships for the last one year or so.

Amid the trying times, the news about further cut in the prices of petroleum products offers some relief.

Reports do the rounds that petroleum prices may be slashed by up to Rs18 a litre due to exchange rate gains. This will be the third time in a row the caretaker government will slash the POL prices.

Rs40 cut on Oct 15

A fortnight ago, the government slashed the prices of petroleum products by Rs40.

After a significant drop from the rate of Rs323.38 per litre, the new price of petrol was Rs283.38 per litre.

Similarly, high-speed diesel (HSD) price was reduced to Rs15 per litre for two weeks. The new price was Rs291.18 per litre.

Previously, on Oct 1, the petrol price in Pakistan had been lowered by Rs8 per litre following a two-month increase, settling at Rs323.38 per litre.

During the same period, the price of high-speed diesel (HSD) had decreased by Rs11 per litre to Rs318.18, while kerosene oil prices had seen a reduction of Rs7.53 per litre, bringing it to Rs237.28.

Caretaker Minister for Information and Broadcasting Murtaza Solangi said the transport operators were bound to reduce fares and freight charges as the government had significantly decreased prices of petroleum products.

The minister urged the provincial and district administrations to play their role to pass on relief to the masses.

In a post on X, Solangi said the government had reduced petrol and diesel prices by Rs40 and Rs15, respectively.

“Whenever prices of these products rise, the transport sector increases freight charges and transportation fares. Now, they (transporters) are bound to provide relief to the masses by reducing them,” the minister said in his post.

Prime Minister Anwaarul Haq Kakar also promised relief to the masses after drastic cut in petrol rates.

Source: Dunya News
 
FBR tax collection in October reaches Rs707 bn
KARACHI: The Federal Board of Revenue (FBR) announced tax collection of Rs 2748 billion from July till October, surpassing the collection target, ARY NEWS reported.

According to the FBR, the tax collection target for October was Rs 707 billion, which was also 37 percent more than the last month of October.

The FBR officials said that the tax collection last year in October was Rs 516 billion whereas the refund tax from July to October was Rs 158 billion.

On October 28, the Federal Board of Revenue (FBR) finalized its tax recommendations to be presented before the International Monetary Fund (IMF) during the lender’s upcoming visit to Pakistan, ARY News reported on Saturday.

FBR officials have made it clear that the discussions with the IMF will not include the consideration of imposing new taxes and taxes on lower-income individuals. Adding that those earning a monthly income of Rs 50,000 will continue to be granted exemption from income tax.

The FBR officials confirmed that those earning more than Rs 600,000 per annum are not exempted from paying the taxes imposed by the government, as there is no current policies or proposal under consideration to withdraw tax exemptions.

The FBR further clarified that the World Bank has not recommended reducing the tax on the existing threshold of 600,000.

The imposition of taxes on income derived from the agricultural sector was underscored as a provincial matter.

ARY
 
Top bureaucrats get hefty pay raise

ISLAMABAD: The caretaker government has increased salaries and perks of top bureaucrats in management positions — commonly described as management position (MP) scales — by a flat 45 per cent with effect from Oct 1.

The increase would apply to all MP-I, MP-II and MP-III positions, including basic salaries, house rents and utilities as approved by the caretaker prime minister, the Ministry of Finance said in a notification. These officers, distinct from career bureaucrats, are typically drawn from the private sector due to their expertise in relevant fields.

The ministry said the monthly remuneration of officers on the MP-I scale used to begin from Rs554,600, including basic salaries, house rent and utilities with a terminal amount of Rs699,250 per month. The minimum and maximum remunerations would now be Rs804,180 and Rs1,013,920 per month, respectively.

The officers in this grade would also be drawing Rs95,910 per month for transport monetisation allowance, taking the revised monthly package to between Rs900,090 and Rs1,109,830.

...

www.dawn.com

Top bureaucrats get hefty pay raise

The minimum and maximum remunerations would now be Rs804,180 and Rs1,013,920 per month, respectively.
www.dawn.com
 
Raza Rabbani says pay raise for top bureaucrats should be ‘withdrawn immediately’

PPP Senator Mian Raza Rabbani on Thursday “strongly condemned” the interim government’s decision to increase the salaries and perks of top bureaucrats and said that it should be “withdrawn immediately”.

The caretaker government has increased salaries and perks of top bureaucrats in management positions — commonly described as management position (MP) scales — by a flat 45 per cent with effect from Oct 1.

The increase would apply to all MP-I, MP-II and MP-III positions, including basic salaries, house rents and utilities as approved by the caretaker prime minister, the Ministry of Finance said in a notification. These officers, distinct from career bureaucrats, are typically drawn from the private sector due to their expertise in relevant fields.

In a press release issued on Thursday, Rabbani said that the country was in the grip of a “severe economic crunch” and there was a need to reduce government expenditure.

He said that the salaries and the house rent and utility charges of the bureaucrats had also been increased.

“The common man can not have two meals a day, is forced to remove his children from school and has to take loan to pay the utility bills [while] the elite is adding cream to its cake,” he said.

He said that if the government had surplus funds, it could increase the salaries of employees of Grade 1 to 15. He further said that the government had claimed to not have funds for Pakistan International Airlines (PIA) yet they were available to increase the salaries of bureaucrats in management positions.

“Such steps of the caretaker government are increasing the class difference between the common man and the ruling elite,” he said, adding that such a move went beyond the ambit of the interim set-up.

“The law and judgements of the superior courts restrict them to looking after day-to-day affairs rather than adding to [the] burden of the national expenditure” he said.

“This salary increase should be withdrawn immediately,” it added.

www.dawn.com

Raza Rabbani says pay raise for top bureaucrats should be ‘withdrawn immediately’

Says govt can increase the salaries of employees of Grade 1 to 15 if it has surplus funds.
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KSA asks Pakistan to make China Sinopec part of $10bn green refinery project
Kingdom of Saudi Arabia (KSA) has asked Pakistan authorities to approach China’s Sinopec and also make it part of a $10 billion green refinery that is to be established in Pakistan

ISLAMABAD: The Kingdom of Saudi Arabia (KSA) has asked Pakistan authorities to approach China’s Sinopec and also make it part of a $10 billion green refinery that is to be established in Pakistan.

“We have announced and notified the new green refinery policy with incentives of 7.5 per cent deemed duty for 25 years and a tax holiday of 20 years as per wishes of the KSA, but the required pace of progress needs some stimulation,” said sources.

The KSA also wants the engineering, procurement, and construction (EPC) contract to be awarded to China Sinopec, and to this effect, the Pakistan State Oil, nominated by the Government of Pakistan, is in contact with the Bank of China and China Sinopec.

Sinopec is also providing services to Saudi Arabia (rigs, well-service, geophysical exploration), pipeline, road and bridge, and other EPC projects. Sinopec has been serving Aramco, SWCC, RC, and many Saudi local cities, and has earned a good reputation among clients, as well as Saudi people.

Meanwhile, authorities in the Petroleum Division have been asked by the Special Investment Facilitation Council (SIFC) to assess investment interest by Chinese company, Sinopec, in the green refinery alongside Saudi Aramco, and facilitate the company in case of an affirmation of its interests by expediting the necessary approvals.

The Petroleum Division has also been asked to identify other interested credible parties for investment in the refinery and the SIFC has also asked the Petroleum Division to update on the particular issue of paramount importance in the next Apex Committee, to be headed by prime minister and attended by chief of army staff (COAS), along with other cabinet members and senior government officials.

Once the mega refinery is established at Hub, Balochistan, it will produce 8 million tonnes of diesel and 6 million tonnes of gasoline with 5-euro specifications per year.

It may not be out of place to mention that earlier on July 27, 2023, the China Road and Bridge Corporation (CRBC) signed an MoU with the government to construct the mega Saudi-backed refinery of $10 billion in Pakistan based on the CPC-F model. Now the government is trying to allure Sinopec on the desire of KSA.

The refinery is to be constructed based on a 30:70 equity-loan ratio. The equity would be $3 billion and loans $7 billion. Saudi Aramco would share 50 per cent equity of $1.5 billion and the same 50 per cent equity will be shared by Pakistan in the project.

The remaining amount of $7 billion loans, the official said, would be arranged by Saudi Aramco through international financial institutions (IFIs). Besides, the CRBC under the MoU signed on July 27, 2023, would also arrange loans from Chinese banks under the Engineering, Procurement, and Construction (EPC-F) model. Out of the remaining 50pc on behalf of Pakistan, PSO will be having a share of 25-30 per cent, and OGDCL, PPL, and GHPL will have a 5 per cent share each. However, Pak Arab Refinery Company (PARCO) did not sign the MoU.

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KSA asks Pakistan to make China Sinopec part of $10bn green refinery project

ISLAMABAD: The Kingdom of Saudi Arabia has asked Pakistan authorities to approach China’s Sinopec and also make it part of a $10 billion green refinery that is to be established in...
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After $18bn loss, govt to reassess Pakistan Steel Mills liabilities

ISLAMABAD: After removing Pakistan Steel Mills (PSM) from the privatisation list, the government has assigned its management consulting to Pakistan Institute of Management (PIM) to re-evaluate core and non-core assets along with legal, fiscal and human resource liabilities, but not before losing more than $18 billion in over eight years of closure.

“The purpose of this (Management Consulting) assignment is to assess and report on various aspects of PSM’s operation including housing societies, contractual agreements, legal matters, human resources, assets and inventory,” said an office order issued by the Ministry of Industries and Production (MOIP). Under the terms of reference (TOR), the PIM, an organisation under the MOIP, is required to cover at least seven critical areas, including assets, liabilities and legal and fiscal challenges.

The PML-N government closed PSM in June 2015, except for keeping the main plant on heat mode. It was removed from the privatisation list by the caretaker government last month. Since PSM’s closure in June 2015, the country has lost an estimated $18 billion in foreign exchange for import of steel products that were once produced by PSM.

While PIM claims to be providing consulting services in many areas, this would be its first such an assignment to provide a 360-degree view of PSM-like mammoth organisation. The MOIP’s top delegation would be rushing to Karachi to identify problems and address them as the PIM had reportedly been given “a very short time window and too big an assignment,” said a senior government official.

For example, PIM is required to conduct an extensive review of PSM’s real estate properties, including Steel Town and Gulshan-i-Hadeed to list total number of houses, categorising their sizes, identifying their occupants assessing utility consumption such as electricity, water and gas, and evaluating their costs and liabilities.

In addition, TORs also include appraisal of all assets of PSM Corporation, including physical assets, equipment details, and infrastructure information. This is in addition to inventory management, including the current level and types of materials, as well as the types and quantities of supplies and products in stock, is also required.

Additionally, the institute is tasked with conducting a detailed examination of the current collective bargaining agent (CBA) contract between PSM and its labour force and evaluation of their terms and conditions besides analysing the implications of the CBA on the organidation’s operations.

The PIM is also required to investigate the legal aspects of PSM, including a comprehensive account of the nature and status of legal cases, categorised by the relevant courts and offering insights into potential legal obligations and liabilities. Despite having less than 600 staff members at present, another TOR required it to assess human resources function, including determining the total strength, categorised with their employment status like permanent, daily wage and contingent along with department-wise distribution.

On top of this is the financial statement analysis to provide insights into the financial health and performance of the organisations. Interestingly, the latest financial statement, finalised in May this year showed that PSM earned about Rs7.45bn net profit after tax in fiscal year 2021-22 ending June 30, 2022 despite the fact that its accumulated losses of Rs206bn exceeded its assets worth Rs195.5bn.

Yet, the total assets of the country’s largest industrial unit have been valued at about Rs839bn as of June 30, 2022, up 65pc over Rs549bn a year earlier, according to the company’s audited accounts for fiscal year ending June 30, 2022. Based on audited accounts, the company paid the salaries for April of its employees from its own resources.

In a qualified opinion on financial statements, the independent auditors, Crowe Hussain Chaudhry & Co, said that PSM fully disclosed its gas payables at about Rs59.7bn.

The audited accounts put the company as a ‘going concern’ as the management believed that even after transfer of its core assets to its corporate entity — Steel Corp — will still be left with assets worth over Rs700bn that would be more than sufficient to meet all its expenses. PSM’s total assets valued at Rs838.66bn included Rs751bn worth of property, including over 17,000 acres of land, thousands of houses, many hospitals, educational facilities etc, plant and machinery and Rs71bn worth of investment property besides other current assets in the shape of stocks, receivables etc.

DAWN
 
Strange coincidence?: PDM, caretaker, next govt get one IMF tranche each
Debate triggered as IMF’s mission arrived in Pakistan and ECP announced exact schedule for holding polls on Feb 8

ISLAMABAD: The $3 billion IMF Standby Arrangement (SBA) has been co-incidentally so designed that each government during its tenure of transition is supposed to get one tranche.

Initially, the IMF had proposed an SBA programme of 15 months for Pakistan’s struggling economy. Later, the program period of 12 months came under discussion but finally both sides agreed to a nine-month program from July 2023 through March 2024 during the PDM govt’s tenure.

This debate was triggered again as the IMF’s mission arrived in Pakistan and then the Election Commission of Pakistan (ECP) announced the exact schedule for holding the next general elections on February 8, 2024. This reporter contacted former minister for finance Ishaq Dar to inquire whether the IMF program of $3 billion was supposed to provide one tranche each to the PDM-led government, the caretaker government and the upcoming government through a well-thought-out strategy. Dar replied that it was coincidental as he always wanted that a medium-term program should be the prerogative of the elected government.

He said when the SBA agreement was struck, no one knew that the elections would be held in seven months instead of 90 days.

He reminded that at the time of the signing of IMF program, it was not known that the population census would be completed and then endorsed by the constitutional forum that bound the ECP for undertaking the delimitation exercise.

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Strange coincidence?: PDM, caretaker, next govt get one IMF tranche each

ISLAMABAD: The $3 billion IMF Standby Arrangement has been co-incidentally so designed that each government during its tenure of transition is supposed to get one tranche.Initially, the IMF had...
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The Pakistan Stock Exchange (PSX) hit a new all-time high and surpassed the psychological barrier of 54,000 during the early hours of trading on Tuesday amid the ongoing 'timely' IMF review of the domestic economy under its $3 billion loan programme.

However, later in the day, it receded below the barrier on profit-selling.

The domestic currency, however, slumped to a five-week low at Rs287 against the US dollar in the inter-bank market in the wake of rising demand for the foreign currency, as Pakistan and IMF discussed options to raise new foreign financing to overcome the shortfall in the ongoing fiscal year 2023-24.

The PSX benchmark KSE-100 Index hit a record high of 54,313 points, surging by over 450 points or nearly one percent. The index had closed at 53,860 points on Monday.

The intra-day high gains, however, reduced to 133 points with the benchmark index receding below 54,000 points at around 1:55pm. The correction was seen on intra-day profit selling.

Before the intraday correction, former Ministry of Finance official Dr. Khaqan Haasan Najeeb said in a brief comment "IMF talks and early signs of growth in agriculture and large scale manufacturing (LSM) helped to maintain the momentum at PSX, as the index takes above 54,000 points."

Topline Securities CEO Muhammad Sohail said that due to the timely IMF review, it is highly expected that the international body would approve the release of the next loan tranche of $700 million soon.

The tranche would improve the country's foreign exchange reserves and partly address the rising demand for the greenback.

Sohail said stock valuation remained attractive despite the index shooting to a new high, as share prices are trading at a price-to-earnings (PE) ratio of four these days compared to the usual seven to eight multiples. The lucrative share prices encourage many investors to buy stocks.

On the other hand, the rupee maintained its downward trend on the twelfth consecutive working day and reached a five-week low at Rs287 against the greenback around mid-day due to a surge in demand for the foreign currency.

The local currency reduced significantly by Rs1.71 in intra-day trading to Rs287 compared to Monday's close at Rs285.29/$

Source: Express Tribune
 
The Pakistani rupee continued to depreciate against the US dollar on Wednesday, losing another Rs0.51 in the interbank market, SBP said.

According to the State Bank of Pakistan, the dollar traded for Rs286.90 in the interbank at the day’s end. It had closed yesterday at Rs286.39.

In the open market, the dollar was changing hands for Rs289, according to the Exchange Companies Association of Pakistan (ECAP).

This is the 13th straight session in which the rupee trended downward.

Source: ARY
 
Minimum wage set at Rs32,000 for civil servants
The government raises the minimum monthly wage to Rs32,000 for civil servants, effective from July 1, 2023

The federal government has announced a special allowance for civil servants, setting the minimum monthly wage at Rs32,000.

The new wage rate will be effective from July 1, 2023, according to a notification issued by the Ministry of Finance.

According to the notification, the minimum wage rate would be subject to income tax and would be admissible during leave and the entire period of LPR except during extraordinary leave.

However, it would not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent.

Meanwhile, it would not be admissible to the employees during the tenure of their posting/deputation abroad. It will be admissible to the employees on their repatriation from posting/ deputation abroad at the rate and amount which would have been admissible to them had they not been posted abroad.

Express Tribune
 
PSX extends gains, crosses 55,000 milestone in intraday trade

The benchmark index of the Pakistan Stock Exchange (PSX) continued to extend gains on Friday and crossed the 55,000 barrier.

According to the PSX website, the KSE-100 index struck a high of 55,081.56 at 10am, rising 800 points or 1.51 per cent from the previous close of 54,261.42.

In a post on X (formerly Twitter), Arif Habib Limited said the index was trading at an “all-time high”.

Head of equity at Intermarket Securities, Raza Jafri, attributed the rally to strong domestic institutional buying and reducing Pakistan Investment Bonds (PIBs) yields.

He further stated that expectations of higher weight for Pakistan in the upcoming review of global index provider MSCI was combining to push up the benchmark index, especially in high dividend yielding stocks.

Meanwhile, FRIM Ventures Chief Investment Officer Shahbaz Ashraf said the main reason for the gains was that yields were coming down which had prompted domestic buying.

“Besides this, the technical reason is that State Life is the main market buyer. I think majorly, the market is trading at very attractive valuations,” he added.

On the other hand, Topline Securities CEO Mohammad Sohail said the KSE-30 index — a benchmark by which the stock price performance can be compared to over a period of time — was still down by 35pc and stood at 18,500 points.
​
DAWN
 
Three key SOEs being moved out of govt control

ISLAMABAD: The caretaker government, which is in loan review talks with the IMF, has decided to finalise a climate financing policy at the earliest and place three more crucial state-owned enterprises (SOEs) under the financial surveillance of the Ministry of Finance’s Central Monitoring Unit (CMU), which is yet to become operational.

The entities slated for enhanced oversight include the Pakistan National Shipping Corporation (PNSC), Pakistan Post, and Pakistan Broadcasting Corporation (PBC).

The decision emerged after comprehensive discussions between the visiting IMF mission and the finance, planning and energy ministries, Nepra, FBR and the SBP.

Sources told Dawn that the IMF team completed the technical round on Friday. The policy-level talks, to be led by Caretaker Finance Minister Dr Shamshad Akhtar, will begin on Monday and is expected to be concluded before the following weekend.

The two sides have agreed to roll out the SOE policy and update the financial performance of all these entities by the first half of December and bring three more state firms under corporate governance rules and direct monitoring of the finance ministry. Both sides have also recognised the urgency of finalising a climate financing policy, which is crucial for accessing international aid and loans related to climate change and greenhouse emission initiatives.

On the CMU, the government informed the IMF team that its launch has been delayed due to recruitment challenges, as the unit struggles to attract qualified experts. However, the hiring process has been restarted with improved terms to address this issue.

The revised SOE policy draft with minimal changes has also been finalised and is expected to be cleared by the relevant cabinet committee and the subsequent approval by the federal cabinet.

Interestingly, the SOEs (Governance and Operations) Act of 2023, passed in February, has also remained unimplemented even though the performance of state-owned firms deteriorated because of a lack of autonomy, external interference, and the appointment of inappropriate boards of directors and CEOs.

Under the draft SOE policy, the CMU would collect and update the financial results of all state firms by December to the satisfaction of the IMF and act as a hub for coordination with line ministries and boards of directors. However, the unit will not interfere in the day-to-day affairs of the SOEs.

Under the SOEs Act, most board members will be appointed on independent nominations and given security of tenure. The board will select CEOs without any government interference, though the federal cabinet will still approve policy guidelines.

The government will retain strategic state-owned enterprises but phase out non-strategic ones. It will not set up any new SOE in future unless required for strategic reasons or under an agreement with any country and gradually off-load most of the existing 200 entities.

For existing SOEs, the government will devise a mechanism to gradually privatise or divest these firms as private-public partnerships. Each government division responsible for SOEs must develop a reform plan, including proposals such as listings, restructuring, mergers, public-private partnerships, and asset sales.

This comprehensive approach, required under the IMF programme, aims to reform the SOE sector, enhancing efficiency, financial stability, and accountability in the country’s public sector enterprises.
​
DAWN
 
PSX continues record-breaking streak

KARACHI: The local bourse hit a significant milestone in the outgoing week as its benchmark surpassed the 55,506-point mark.

Arif Habib Ltd said the stock market continued its bullish run in the four-day week fuelled by the first loan review by the International Monetary Fund (IMF).

The Oil and Gas Regulatory Authority notified a substantial increase in the prices of natural gas from November 1, a prerequisite for the ongoing IMF review.

Moreover, cut off yields for the three-, five- and 10-year Pakistan Investment Bonds (PIBs) recorded a decrease of 180 basis points, 100 basis points and 15 basis points, respectively. The drop indicates that interest rates have peaked and will come down in the near future.

Workers’ remittances also rose 10 per cent year-on-year and 12pc month-on-month to $2.46 billion. The rupee closed at 287.03 against the greenback after depreciating 0.95pc on a weekly basis.

As a result, the KSE-100 index closed at 55,391 points after adding 2,268 points or 4.3pc week-on-week.

Sector-wise, positive contributions came from commercial banking (447 points), cement (409 points), fertiliser (362 points), power generation and distribution (345 points) and exploration and production (147 points).

Meanwhile, sectors that contributed negatively were close-end mutual funds (four points) and cable and electrical goods (two points).

Scrip-wise positive contributors were the Hub Power Company Ltd (282 points), Lucky Cement Ltd (159 points), Engro Fertilisers Ltd (151 points), Colgate-Palmolive Pakistan Ltd (122 points) and Engro Corporation (122 points).

Meanwhile, negative contributions came from Unity Foods Ltd (15 points), Abbott Laboratories Ltd (eight points), Pakistan State Oil Company Ltd (eight points), National Refinery Ltd (six points) and HBL Growth Fund (four points).

Foreign buying clocked in at $1.3m versus a net sale of $1.4m a week ago. Major buying was witnessed in banking ($1.4m) and power ($1.2m) sectors. On the local front, selling was reported by banks ($16.3m) and individuals ($7.2m).

According to AKD Securities Ltd, the present rally is likely to continue, albeit with episodes of profit-taking. “Our stance stems from an expected positive conclusion to the IMF’s review amidst improving macro indicators and fading uncertainty over the upcoming elections, even though the country faces tough economic decisions in the near future,” it said.

DAWN​
 
Anti-power theft drive: Govt recovers Rs46bn in just 53 days: power secretary

ISLAMABAD: The government has recovered Rs46 billion in just 53 days during its anti-electricity theft drive, tweeted Secretary Power Division Rashid Langrial.

“We are working on the remaining problem space of Rs390 billion of which we are able to recover Rs46 billion in 53 days i.e. Rs867 million per day. We started our anti-power theft campaign on the 7th of September. Today, results till 31st October have been collated. That day, we promised that no one would be spared, high or mighty, sacred or not-so-sacred,” he said.

“The Power Division has reshuffled, suspended, prosecuted even arrested DISCOs’ own staff at a scale never seen before; put thieves behind the bars at a rate never observed before i.e. roughly 470 persons per day; have shunned extraneous influence with the full support of the prime minister, minister-in-charge and other quadrants of state power.” He said, “In the process we have erred, learned, and corrected our course where needed.” He maintained that officers and staff have suffered at the hands of little mafias: they were thrashed, injured, made hostage, and fired upon.

“We have not relented and shall not. Period. Today as the results for the first two months (53 days to be exact) are out, I must put things in perspective. Our estimated annual losses across the national grid for the current year are Rs589 billion. Of these Rs589 billion, roughly Rs199 billion comes from ex-Fata, Balochistan tube wells, and AJK. These areas are not the focus of this campaign because of their own peculiarities: AJK collects its own bills but does not pay us at the same rate because it sees it as a contractually disputed payment; ex-Fata because they are exempted from meters due to a policy of appeasement in the wake of integration and Balochistan tube-wells on account of various factors, least of which is not the enforcement challenge.”

“If the same level of state support and field effort can be maintained (and that is a big if, I must admit), 80 percent of the problem space gets resolved. We are conscious of the challenge of sustaining the drive beyond the campaign but we have demonstrated beyond doubt that there is nothing that cannot be resolved with the right mix of state’s will and field effort.”
​
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Anti-power theft drive: Govt recovers Rs46bn in just 53 days: power secretary

Power Division has reshuffled, suspended, prosecuted even arrested DISCOs’ own staff at a scale never seen before, he says
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In a significant shift, Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto-Zardari implicated the Pakistan Muslim League-Nawaz (PML-N) for the ongoing inflationary challenges in the country.

Speaking at a political gathering in Mitthi, Tharparkar district on Monday, Bhutto coined a new term for the PML-N, dubbing it the "Pakistan Mehngai Leeague," roughly translated as the "Inflation League."

Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari on Monday pointed fingers at the Pakistan Muslim League-Nawaz (PML-N) for the ongoing inflationary challenges in the country, marking for the first time the PPP leader directly implicating the rival party allegedly responsible for the economic woes Pakistan is currently facing.

Speaking at a political gathering in Mitthi in Tharparkar district, Bilawal coined a new term for the PML-N, dubbing it the "Pakistan Mehngai League”, roughly translated as the "inflation league."

It is worth noting that PPP was among the coalition partners in the Pakistan Democratic Movement (PDM) government led by Shehbaz Sharif — the president of PML-N.

Bilawal's criticism comes amid PML-N's attempts to form alliances in Sindh ahead of the upcoming general elections, where PML-N and Muttahida Qaumi Movement-Pakistan (MQM-P) are seen as potential threats to the PPP.

Leaders of the PML-N and MQM-P, forging ties in Lahore and Karachi, discussed core issues of Karachi and Sindh, suggesting a potential coalition against the PPP if PML-N secures victory.

Bilawal, in his address today, accused “certain elements” on fostering divisive politics in the country to prevent the unity of the people.

He declared that the public will respond to the “Pakistan Inflation League,” accusing them of orchestrating election outcomes behind closed doors and dreaming of triumph akin to the Pakistan Tehreek-e-Insaf (PTI) in 2018 elections.

Bilawal stated that the PPP was combating forces engaged in divisive politics.

He emphasised the party's commitment to inclusive politics, transcending colour and race barriers, with the assurance that, "Inshallah, the people's government will be formed in the general elections, and we will take steps to provide relief to the people, not to the elite,” he maintained.

Anticipating a potential victory in the general elections slated on February 8, Bilawal outlined plans for initiatives such as the introduction of a Haari Card, akin to the Benazir Income Support Programme, aimed at assisting farmers with fertilisers and seeds.

Addressing the people of Tharparkar, the former foreign minister asserted their capability to counter the Modi government and anti-Pakistan propagandists worldwide, highlighting the PPP's adept handling of such challenges.

Bilawal expressed confidence that the enthusiasm witnessed in the rally had already determined Tharparkar's stance in favour of the PPP.

Reiterating the party's commitment to former prime minister Benazir Bhutto’s vision, he pledged to eradicate poverty, unemployment, and inflation from the country.

Bilawal attributed Tharparkar's development to the PPP's performance, challenging critics to evaluate the progress made in the region under their governance, including improvements in communication systems, the airport, and healthcare.

The PPP chairman dismissed the notion of any political opponents, asserting that the party's true adversaries are unemployment, inflation, and poverty.

He affirmed the party's commitment to fight these issues collectively and restore the people's rights.

Addressing potential election challenges, Bilawal declared that the PPP would accept the elections results, even if they were against them. However, in case they win they would continue serving the public.

Expressing discontent with what he termed "selected rule" over the past five years, Bilawal vowed that the people would no longer tolerate such governance.

In conclusion, Bilawal extended warm Diwali greetings to the people of Mithi, encapsulating a spirit of cultural inclusivity in the political discourse.

Source: Express Tribune

tribune.com.pk

Bilawal accuses PML-N of fuelling inflation crisis | The Express Tribune

Says ex-coalition partner ‘dreaming’ election victory akin to PTI by orchestrating poll outcomes behind 'closed doors'
tribune.com.pk tribune.com.pk
 
Stock market hits new peak above 56,500 level

KARACHI: Bulls dominated the trading floor at the Pakistan Stock Exchange (PSX) for the third consecutive session on Monday, leading the benchmark index to hit another all-time high.

Arif Habib Corporation analyst Ahsan Mehanti said upbeat data on exports and home remittances, along with a fall in bond yields in the latest auction of Pakistan Investment Bonds, triggered the rally that culminated in share prices rising to a record high.

Speaking to Dawn, Alpha Beta Core Ltd CEO Khurram Schehzad said the continuous rise in the KSE-100 index is likely to endure at least in the near future unless a surprise event sets the share price surge back.

Unlikely events that may derail the north-bound journey of the KSE-100 index include the Election Commission of Pakistan failing to hold the general election in February 2024 — a move that’ll surely create uncertainty among investors, said Mr Schehzad.

He attributed the short-term recovery in share prices to the “on track” review of the Stand-by Arrangement (SBA) with the International Monetary Fund (IMF), even though technical and policy level talks have yet to take place. In addition, the announcement of the election date and the expected cuts in the interest rates 2024 onwards have also contributed to positive market sentiments, he said.

However, sustainability in the medium to long term still depends on structural reforms in energy, debt, state-owned enterprises and taxation, he added.

Topline Securities Ltd CEO Mohammed Sohail said the benchmark index crossing the 56,000-point milestone represents a “fast recovery” in the total value of shares from $20 billion to $28bn in less than six months. Yet the PSX remains “one of the smallest markets” with a market capitalisation-to-GDP ratio of less than 10 per cent, he wrote in a social media post.

According to JS Global Capital Ltd, the driving force behind the stock market’s momentum going forward will be the IMF agreement as well as a shift in the holdings from fixed-income funds to equity-based funds by asset management companies, which constitute one of the biggest groups of investors on the PSX.

“We recommend investors should adopt a buy-on-dips strategy in technology, exploration and production and cement sectors,” it added.

The KSE-100 index closed at 56,523.58 points after gaining 1,132.21 points or 2.04pc from the preceding session.

The overall trading volume increased 3pc to 660.6 million shares. The traded value increased 5.9pc to Rs22.4bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (100.7m shares), Cnergyico PK Ltd (60.7m shares), Hum Network Ltd (32.4m shares), Pakistan Refinery Ltd (23.8m shares) and the Searle Company Ltd (21.8m shares).

Companies registering the biggest increases in their share prices in absolute terms were Rafhan Maize Products Company Ltd (Rs594.75), Nestle Pakistan Ltd (Rs547.50), Colgate-Palmolive Pakistan Ltd (Rs84.01), Millat Tractors Ltd (Rs36.46) and Pakistan Hotels Developers Ltd (Rs34.83).

Companies registering the biggest decreases in their share prices in absolute terms were Unilever Pakistan Foods Ltd (Rs1,400), Sapphire Fibres Ltd (Rs30), Premier Sugar Mills Ltd (Rs20), ZIL Ltd (Rs19.19) and Pak Suzuki Motor Company Ltd (Rs10.81).

DAWN​
 

Caretaker cabinet approves levy of 40% tax on banks windfall profit of 2021-22​

The federal cabinet on Wednesday approved a 40% tax on windfall profit earned by banks on foreign exchange transactions during the years 2021 and 2022.

The imposition of 40% was recommended by the Federal Board of Revenue (FBR) to the cabinet meeting headed by Caretaker Prime Minister Anwaar-ul-Haq Kakar.

The new section 99D in the Income Tax Ordinance 2012 — introduced by the Finance Act, 2023 — will enforce the imposition of tax on windfall income profits and gains of the banks.

The development came ahead of the agreement between Pakistani authorities and the International Monetary Fund's (IMF) staff on the first review for the second tranche of the staff-level agreement under the $3 billion loan programme.

The IMF mission — led by Nathan Porter — and the Pakistani economic team completed discussions on all sectors.

The Pakistani delegation was led by Caretaker Finance Minister Shamshad Akhtar and comprised State Bank of Pakistan (SBP) Governor Jameel Ahmad, FBR Chairman Malik Amjed Zubair Tiwan, and officials from the finance and energy ministries.

Sources said that windfall taxes of up to Rs55 billion will be levied for the financial years 2021 and 2022. The taxes on the profits earned by the banks will be collected in the month of December.

According to the sources within the finance ministry, the Finance Bill does not require any amendments for the imposition of windfall tax on the banking sector.

"However, approval from the federal cabinet will have to be sought for the windfall tax," they added.

Moreover, the IMF delegation and the economic team are likely to prepare the Memorandum of Economic and Financial Policies (MEFP) draft today, said the sources.

The parties have also agreed to not increase the interest rate further, added the sources.

Source: Geo News
 
Six hospitals face ‘shutdown’ after fund request denied

ISLAMABAD: All five public sector hospitals in the federal capital and Lahore’s Shaikh Zayed Hospital may be staring at a virtual standstill after the Finance Division rejected a request by the federal health ministry to provide a supplementary Rs11 billion for the smooth functioning of these hospitals.

Salaries for a number of employees have already been stopped, and nurses at the Pakistan Institute of Medical Sciences (Pims) have been protesting for over a week now.

The labs of these hospitals will also soon stop functioning completely, as testing kits are running out of stock. Radiology tests are also being refused because films are not available, and medicines are being denied to patients as the tender amount has not been paid to companies.

The hospitals and departments that will be affected because of the decision include five hospitals in the federal capital: Pims, Polyclinic, Federal General Hospital, National Institute of Rehabilitation Medicine (NIRM), dispensaries, basic health units, ancillary departments of the health ministry, and institutes.

Moreover, Shaikh Zayed Hospital Lahore will also be affected as it is run with the funding of the federal health ministry.

On the other hand, the Finance Division has informed the health ministry in writing that, as per the preconditions of the International Monetary Fund (IMF), funds can only be released in case of a disaster.

Last month, the health ministry had requested the finance ministry to release a supplementary grant of Rs11.096bn for the smooth functioning of hospitals, organisations, and ancillary departments of the ministry.

“M/O National Health Services’ proposal for supplementary/technical supplementary grant for Rs11.096 billion has been considered in Finance Division. As per commitment with the IMF, no supplementary grant for any additional unbudgeted spending over the parliamentary approved level in FY 2023-24 may be allowed until the formation of new Government (except if needed to respond to severe national disaster),” the letter written by Finance Division and available with Dawn stated.

According to sources privy to developments, the refusal by the Finance Division will trigger a virtual disaster in hospitals run by the federal ministry and patients may not even get a single rupee’s worth of medicines.

“We currently foresee a severe shortage of medicines as we don’t have the amount to pay for the tenders and get the pending stocks released. Moreover, there is also a severe shortage of testing kits in labs, and X-ray films and other radiology tests are also in short supply,” a hospital source told Dawn.

www.dawn.com

Six hospitals face ‘shutdown’ after fund request denied

Finance Division cites IMF preconditions, says more money can only be released in event of ‘disaster’.
www.dawn.com
 
PSX records modest gains, up nearly 300 points in intraday trade

The benchmark index of the Pakistan Stock Exchange (PSX) recorded gains on Tuesday, staying above the 57,000-point level.

According to the PSX website, KSE-100 index closed at 57,371.58 points, up 293.62 or 0.51 per cent from the previous close of 57,077.96 points.

Last week, the benchmark of representative shares hit an all-time high and crossed 57,000 points on the back of the staff-level agreement reached between Pakistan and the International Monetary Fund (IMF).

The signing of the staff-level agreement paves the way for the disbursement of the second loan tranche amounting to $700 million, subject to the approval of the IMF’s Executive Board — which is tentatively scheduled for Dec 7.

Speaking to Dawn.com today, Intermarket Securities’ head of equity Raza Jafri said valuations remained cheap despite the market’s recent rally.

“Given the top-down outlook is reasonably sanguine, the outlook on Pakistan equities remains positive,” he added.

Meanwhile, First National Equity chief executive Ali Malik attributed today’s rally to a positive economic outlook in the near future. He said there were high expectations regarding the IMF board’s approval for the second loan tranche.

“Numbers show Pakistan’s trade deficit has decreased, which means that exports have increased,” Malik said, adding that shares were trading at a very low price-to-earnings ratio.

“On top of that, asset replacement value has tremendously risen … so the market is very cheap, especially big industries,” he added.
​
DAWN
 
Pakistan Stock Exchange has been performing well in recent times. Still no reasonable decrease in inflation in Pakistan. I wonder why?
 
Sugar price: Caretaker commerce minister hints at strict measures

Caretaker Minister of Commerce and Industries Dr Gohar Ejaz hinted at strict measures to provide sugar at low prices to the nationals.

Dr Gohar Ejaz said in a statement that the caretaker government is making efforts to provide low-cost sugar to the nationals.

“We cannot continue the previous policies. We cannot allow the export of sugar stocks and later its imports,” he added.

The caretaker commerce minister said that a key session would be held at the earliest to implement the track and trace system in the sugar sector.



arynews.tv

Sugar price: Caretaker commerce minister hints at strict measures

ISLAMABAD: Caretaker Minister of Commerce and Industries Dr Gohar Ejaz hinted at strict measures to provide sugar at low prices to the nationals. Dr Gohar
arynews.tv arynews.tv
 

Investment worth $10b on the cards​

ISLAMABAD: The interim federal cabinet on Friday gave the nod to seven memorandum of understanding (MoUs) with Kuwait for an investment worth $10 billion that would be signed by caretaker Prime Minister Anwaarul Haq Kakar during his upcoming visit to the Middle Eastern country.

The MoUs will be inked for projects in various fields, including expansion of water reservoirs, mining facilities, protection and expansion of mangrove forests for coastal areas, investment in IT sector and food security.

The expected MoUs between the two countries became possible due to the efforts made by the Special Investment Facilitation Council (SIFC), according to a statement issued by the PM Office.

It added that the interim premier, who chaired the meeting in the federal capital, and his cabinet members appreciated the efforts of the SIFC and the relevant ministries.

The caretaker prime minister issued directions to the federal authorities concerned to ensure cooperation with the provinces for early and fair execution of the projects.

The statement read that the participants of the huddle endorsed the decisions of the Cabinet Committee for Disposal of Legislative Cases it had made in its meeting on Nov 14.

They also gave the nod to the decisions made during the Economic Coordination Committee meeting on Nov 15.

In a related development, Kakar, while appreciating the efforts of relevant ministries for identifying prospective areas of collaboration under the SIFC, directed all the stakeholders to make efforts to realise the envisioned long-term economic dividends.

According to another news statement issued by the PM Office, the interim premier was chairing a special session of the apex committee of the SIFC held in Islamabad to foster strategic partnerships with friendly countries.

The statement added that the meeting was attended by Chief of Army Staff (COAS) Gen Asim Munir, ministers and high-level government officials.

The apex committee reviewed the existing level of collaboration and unanimously approved various initiatives to be launched with friendly countries.

It directed to step up the implementation of various projects conceived under these initiatives.

The COAS assured the unwavering resolve of Pakistan Army to support the economic initiatives being undertaken by the government, the statement concluded. (With input from APP)

Source: The Express Tribune
 
All these investments must make a positive impact in making the lives of common people of Pakistan better.
 
Record-breaking streak continues at PSX

KARACHI: The KSE-100 index maintained its upward journey on Friday to close at yet another record peak.

Topline Securities Ltd said the index gathered pace initially and hit an intraday high of 660 points.

However, fear kicked in afterwards as investors preferred to book some of their gains before the end of trading.

According to Arif Habib Ltd, the index saw a balanced advance-to-decline ratio of stocks (45/52), which led to another strong week for the Pakistan Stock Exchange in the shape of a 3.63 per cent increase in the benchmark on a week-on-week basis.

The focus next week will remain on the KSE-100 index achieving the 60,000-point level, with activity expected to stay more sector-specific, it added.

JS Global Capital said investors should take advantage of any opportunity to buy stocks in banking, technology and exploration and production sectors.

As a result, the KSE-100 index closed at 59,086.35 points after gaining 186.51 points or 0.32 per cent from the preceding session.

The overall trading volume decreased 1.6pc to 658.4 million shares. The traded value decreased 12.7pc to Rs22 billion on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (66.8m shares), Pakistan International Bulk Terminal Ltd (38.9m shares), TPL Properties Ltd (27.4m shares), Symmetry Group Ltd (18.6m shares) and K-Electric Ltd (16.7m shares).

Companies registering the biggest increases in their share prices in absolute terms were Rafhan Maize Products Company Ltd (Rs161.30), Hoechst Pakistan Ltd (Rs81.97), Ismail Industries Ltd (Rs69.88), Nestle Pakistan Ltd (Rs67.50) and Pakistan Services Ltd (Rs60.43).

Companies registering the biggest decreases in their share prices in absolute terms were Unilever Pakistan Foods Ltd (Rs500), Premium Textile Mills Ltd (Rs24), Indus Motor Company Ltd (Rs20.31), Blessed Textiles Ltd (Rs13.05) and Highnoon Laboratories Ltd (Rs10.84).

Foreign investors were net buyers as they purchased shares worth $2.63m.
​
SOURCE: DAWN
 
Inflation stays above 40pc for second straight week

Annual short-term inflation remained above 40 per cent for the second week in a row, mainly driven by a massive increase in gas prices, official data showed on Friday.

The inflation reading was 41.13pc for the week ending Nov 23, the Pakistan Bureau of Statistics (PBS) said, as gas prices stood over 1,100pc higher than a year ago.

After gas, other items whose prices increased the most included cigarettes (94pc), wheat flour (88.2pc), chilli powder (81.7pc), broken basmati rice (76.6pc), garlic (71pc), Irri-6/9 rice (62.3pc), gents’ sponge chappal (58pc), gents’ sandal (53.37pc), branded tea (53pc), gur (50.8pc), and potatoes (47.9pc).

In contrast, the prices of onions dropped 36.2pc year-on-year, followed by tomatoes (-18.1pc), mustard oil (-4pc) and vegetable ghee (-2.9pc).



www.dawn.com

Inflation stays above 40pc for second straight week

Inflation reading is 41.13pc for the week ending Nov 23, as gas prices stand over 1,100pc higher than a year ago.
www.dawn.com
 
Caretaker Chief Minister Maqbool Baqar has taken notice of irregularities in Gorakh Hill Development project, citing a spokesperson ARY News reported on Sunday.

Caretaker CM of Sindh has expressed resentment over blatant misuse of funds and assets of Gorakh Hill project.

The chief minister has said that the project has 140 employees on payroll but none of them performing their duties.

Caretaker chief minister has also summoned explanation from Project Director of the development project.

“The misuse of funds will not be tolerated at any cost,” chief minister said.

Caretaker chief minister has directed the chief secretary to conduct an inquiry of the project.

It is to be mentioned here that the National Accountability Bureau had initiated investigation into alleged corruption in Gorakh Hill Development Authority (GHDA) in 2019.

The anti-graft watchdog had also conducted raid at the office of the GHDA and had seized record of alleged corruption worth Rs seven billion.

Gorakh Hill Station

Gorakh is located in Kirthar mountain range at an elevation of 1734m, along the border of Sindh and Baluchistan.

Gorakh is situated on one of the highest plateaus of Sindh, spread over 2,500 acres of land, and due to its surroundings, it is a unique adventure point for nature lovers.

It is about 423 km distance from Karachi. The Hill station attracts large number of tourists from the city due to its pristine environs.

Source: ARY

arynews.tv

Caretaker CM orders inquiry into Gorakh Hill Project irregularities

KARACHI: Caretaker Chief Minister Maqbool Baqar has taken notice of irregularities in Gorakh Hill Development project, citing a spokesperson ARY News
arynews.tv arynews.tv
 

Investment worth billions of dollars unlocked as Pakistan, UAE sign key deals​

The door to multi-billion dollars worth of investment was unlocked on Monday as Pakistan signed key deals with the United Arab Emirates during the two-day visit of Caretaker Prime Minister Anwaarul Haq Kakar to the brotherly country, his office said.

According to a statement issued by the PM’s Office (PMO), the interim PM held a bilateral meeting with the President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi today. Chief of Army Staff (COAS) General Syed Asim Munir was also present on the occasion.

The leaders underlined that Pakistan and the UAE have historic and deep-rooted fraternal ties which have stood the test of time. They reaffirmed the resolve to further strengthen bilateral strategic cooperation and dialogue between Pakistan and the UAE.

PM Kakar expressed profound gratitude for the UAE’s firm support of Pakistan in the economic and financial domains. The UAE is home to 1.8 million Pakistanis, contributing to the progress, prosperity and economic development of the two brotherly countries, he added.

During the meeting, regional and global developments were also discussed with particular reference to the deteriorating human rights and humanitarian situation in occupied Palestine.

The interim prime minister expressed Pakistan’s support for a just and durable solution to the Palestinian question anchored in international law and in line with relevant United Nations and OIC resolutions.

He reiterated Pakistan’s full support to the UAE’s presidency for COP 28, underlining its importance as an opportunity for meaningful progress towards effective and result-oriented global actions in key areas to mitigate climate impact including the establishment of the loss and damage fund.

The two leaders witnessed the signing of MoUs between Pakistan and the UAE pertaining to investment cooperation in the sectors of energy, port operations projects, wastewater treatment, food security, logistics, minerals, and banking and financial services.

The PMO statement said that these MoUs will unlock multi-billion dollars of investment from the UAE into Pakistan and will help realise various initiatives envisioned under the Special Investment Facilitation Council (SIFC).

The prime minister termed the signing of MoUs as a historic event that will usher in a new era of Pak-UAE economic partnership.

Source: The Express Tribune
 
All these deals and agreements must make the lives of common people of Pakistan better.
 
hassan918 said:
All these deals and agreements must make the lives of common people of Pakistan better.
Click to expand...
Remember the $10bn Billo brought after the floods. Whatever happened to it. This is a piece of paper worth less the Rp these days. Which country will invest where there is no law and order, people are murdered by the Police, its most popular leader is in jail on fake charges and a guy that can't win his own seat will be made PM based on the wishes of Foreign powers and local mafia
 
PML-N blames PTI govt for rupee devaluation

ISLAMABAD: As barbs flew in the Senate over the issue of rupee devaluation, the PML-N blasted the previous PTI government for giving absolute autonomy to the State Bank of Pakistan (SBP).

Leader of the House in the Senate Ishaq Dar not only criticised the PTI’s decision to make SBP unanswerable to the government but also blamed a handful of speculators for the economic mess.

He said there were individuals who caused a loss of trillions to the country for their “small gains”. He, however, said the country’s currency remained stable for four years from 2014 to 2017.

Senator Dar claimed that till December 2017, the Pakistani rupee was the most stable currency in Asia while when Nawaz Sharif left the government the dollar was at Rs104 and when former prime minister Shahid Khaqan Abbasi took office the dollar rate was at Rs124.

Speaking on his motion about the devaluation of rupee, Kamran Murtaza said the value of dollar in 1947 was Rs3.31 and there had been steady increase over the years in its value but it increased tremendously in recent years, as it rose to Rs335.

He insisted that dollar could not be controlled by holding a two-minute meeting and using force and that instead adopting a scientific method was imperative to achieve the desired results.

PTI Senator Mohsin Aziz regretted that dollar used to be bought at Rs172 before the (PDM) coalition government assumed power, but within a year, its value shot up to Rs335.

He said there were several factors behind this increase in the value of dollar and devaluation of Pakistani currency and so a serious study should be done to fix the problem.

He alleged the flight of the dollar from the country was not controlled, adding that the State Bank of Pakistan, despite having been given autonomy, had failed to play its role to control the flight of dollar from the country.

PML-N Senator Dr Afnanullah Khan said that over the last 75 years, the country witnessed three PML-N and PPP governments each, three or four martial laws, floods, earthquakes and disintegration of the country, but dollar was valued at Rs110 in 2018, but then the ‘government of change’ came and the dollar value reached Rs184 and when the PDM formed its government, the former prime minister started making statements that Pakistan was going to be bankrupt soon.
​
www.dawn.com

PML-N blames PTI govt for rupee devaluation

Ishaq Dar says there were individuals who caused a loss of trillions to the country for their “small gains”.
www.dawn.com
 
The blame game has been going on for ages in Pakistan. No government has done any good for the Pakistani people, they would rather sit on their chairs and blame each other for the past instead of trying to make any progress.
 
BouncerGuy said:
PML-N blames PTI govt for rupee devaluation

ISLAMABAD: As barbs flew in the Senate over the issue of rupee devaluation, the PML-N blasted the previous PTI government for giving absolute autonomy to the State Bank of Pakistan (SBP).

Leader of the House in the Senate Ishaq Dar not only criticised the PTI’s decision to make SBP unanswerable to the government but also blamed a handful of speculators for the economic mess.

He said there were individuals who caused a loss of trillions to the country for their “small gains”. He, however, said the country’s currency remained stable for four years from 2014 to 2017.

Senator Dar claimed that till December 2017, the Pakistani rupee was the most stable currency in Asia while when Nawaz Sharif left the government the dollar was at Rs104 and when former prime minister Shahid Khaqan Abbasi took office the dollar rate was at Rs124.

Speaking on his motion about the devaluation of rupee, Kamran Murtaza said the value of dollar in 1947 was Rs3.31 and there had been steady increase over the years in its value but it increased tremendously in recent years, as it rose to Rs335.

He insisted that dollar could not be controlled by holding a two-minute meeting and using force and that instead adopting a scientific method was imperative to achieve the desired results.

PTI Senator Mohsin Aziz regretted that dollar used to be bought at Rs172 before the (PDM) coalition government assumed power, but within a year, its value shot up to Rs335.

He said there were several factors behind this increase in the value of dollar and devaluation of Pakistani currency and so a serious study should be done to fix the problem.

He alleged the flight of the dollar from the country was not controlled, adding that the State Bank of Pakistan, despite having been given autonomy, had failed to play its role to control the flight of dollar from the country.

PML-N Senator Dr Afnanullah Khan said that over the last 75 years, the country witnessed three PML-N and PPP governments each, three or four martial laws, floods, earthquakes and disintegration of the country, but dollar was valued at Rs110 in 2018, but then the ‘government of change’ came and the dollar value reached Rs184 and when the PDM formed its government, the former prime minister started making statements that Pakistan was going to be bankrupt soon.
​
www.dawn.com

PML-N blames PTI govt for rupee devaluation

Ishaq Dar says there were individuals who caused a loss of trillions to the country for their “small gains”.
www.dawn.com
Click to expand...
The beghairat destroyed PK economy with his fixed exchange rate, whilst the international commodity cycle was going through a bear phase. It destroyed our exports and made us import reliant. We wasted billions of precious foreign exchange to make these buffoons look good. By 2017, when Dar was still in charge we were heading for the IMF.
 

Pakistan’s economy stuck in ‘low-growth trap’: WB​

ISLAMABAD: Martin Raiser, the World Bank’s Regional Vice-President for South Asia, has warned that Pakistan’s economy is stuck in a “low-growth trap” with poor human development outcomes and increasing poverty.

Raiser reaffirmed the bank’s commitment to support the people of Pakistan in his address during a ceremony in Islamabad.

In his address, Raiser delivered a stark assessment of the nation's economic landscape.

"Pakistan’s economy is stuck in a low-growth trap with poor human development outcomes and increasing poverty. Economic conditions leave Pakistan highly vulnerable to climate shocks, with insufficient public resources to finance development and climate adaptation," warned Raiser.

"It is now time for Pakistan to decide whether to maintain the patterns of the past or take difficult but crucial steps towards a brighter future."

Raiser's remarks underscore the urgency of the significant policy initiatives he unveiled during his visit. These initiatives, encapsulated in a series of policy notes, highlighted the critical policy shifts required for fostering a more productive, sustainable, resilient, and healthier Pakistan.

The policy notes—focusing on child stunting, fiscal sustainability, private sector growth, energy, learning poverty, agriculture, and climate change—are the culmination of several months of outreach and engagements conducted across the country under the “Reforms for a Brighter Future – Time to Decide” banner.

They are intended to help inform the public policy dialogue in the context of the upcoming elections.

The policy notes advocated that Pakistan needs to address its acute human capital crisis—including the high prevalence of stunting and learning poverty—by adopting a coordinated and coherent cross-sectoral approach to basic services involving both provincial and federal governments.

They suggested that Pakistan should improve the quality of public spending and take serious measures to expand the revenue base, ensuring that the better off pay their share.

They also stated that the country should pursue business regulatory and trade reforms and reduce the presence of the state in the economy to increase productivity, competitiveness, and exports.

He said that Pakistan should remove distortions that undermine the performance of the agricultural and energy sectors, including through subsidy reform and privatisation of electricity distribution companies.

Highlighting Pakistan's acute human capital crisis he said: “Almost 40% of children in Pakistan suffer from stunted growth, more than 78% of Pakistan’s children cannot read and understand a simple text by the age of 10. These are stark indicators of a silent human capital crisis that needs priority attention,” said Martin Raiser.

“With additional spending on water and sanitation of around 1% of GDP per year and better coordination at the local level, stunting could be halved over a decade with significant positive impacts on growth and incomes. This is just one example of the huge economic benefits a coherent and decisive reform strategy could have”.

During his visit, Raiser will meet government officials at the federal and provincial levels, and representatives from the private sector and academia.

He will also visit the Dasu and Tarbela hydropower projects, as well as project sites in Sindh and Punjab.

Source: The Express Tribune
 
As long as we are depending on the likes of IMF, our economy isn't likely to get better.
 
Only way for economy to get better is for Pakistani citizens to grow, produce, manufacture and offer services other countries want/need and it has to happen at a rate much higher than pakstani citizens consume.

Years of neglect, living on friendly countries combined with population explosion has been a recipe for disaster. no easy outs.
 
It’s official: GDP growth turned negative under PDM coalition govt
Data shows growth rate under PDM was claimed to remain slightly positive at 0.29% by provisional released number

ISLAMABAD: To meet the IMF conditions, the caretaker government has revised the GDP growth rate downward from a slight positive of 0.29 percent to a negative -0.17 percent for the last financial year that ended on June 30, 2023.

It was the second lowest growth ever witnessed by the country in the last 50 years, as the highest negative growth achieved by the country stood at -1 percent on the eve of the COVID-19 pandemic. However, the GDP growth rate has turned into a positive trajectory and stood at 2.13 percent for the first quarter (July-September) period of the current fiscal year 2023-24 against a negative growth of -2.7 percent in the last quarter (April-June) the financial year 2022-23.

This data shows that the growth rate under the PDM-led regime was claimed to remain slightly positive at 0.29 percent by the provisional released number, but now, in the finalised figure, it landed in the negative zone of -0.17 percent for the whole financial year 2022-23. According to an official statement issued by the Pakistan Bureau of Statistics (PBS), the National Accounts Committee (NAC) approves the introduction of Quarterly National Accounts in the Statistical System of the Country. The economy witnessed recovery in Q1 2023-24 by posting a growth of 2.13%, as compared to 0.96% in Q1 2022-23. The GDP growth for 2022-23 revised slightly downward from positive 0.29% to negative -0.17%. The 107th meeting of the National Accounts Committee (NAC) to review the annual estimates of Gross Domestic Product (GDP) for the years 2021-22 (Final), 2022-23 (Revised), and quarterly estimates from Q1 2016-17 to Q1 2023-24 was held on Tuesday in the Ministry of Planning, Development, and Special Initiatives (M/o PD&SI). The Secretary, M/o PD&SI, chaired the meeting.

www.thenews.com.pk

It’s official: GDP growth turned negative under PDM govt

ISLAMABAD: To meet the IMF conditions, the caretaker government has revised the GDP growth rate downward from a slight positive of 0.29 percent to a negative -0.17 percent for the last financial...
www.thenews.com.pk www.thenews.com.pk
 
Saudi Arabia extends term of $3b deposit for another year

Pakistan's central bank on Wednesday reported that Saudi Arabia had extended the period of its deposits worth $3 billion for another year, a move that would help the country maintain its foreign exchange reserves and strengthen its domestic economy.

“The Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term for the deposit of USD 3 billion maturing on 05 December 2023 for another one year,” the State Bank of Pakistan (SBP) said in a statement.

It added that the said amount has been placed with SBP on behalf of Islamic Republic of Pakistan. “The extension of the term of the deposit is a continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help to maintain the foreign currency reserves of Pakistan and contribute to the economic growth of the country,” the statement added.

It is worth noting that the USD3 billion-deposit agreement was initially signed through the SFD with the SBP in the year 2021 and rolled over subsequently in 2022, after the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries.

The development comes as Caretaker Prime Minister Anwaarul Haq Kakar signed multibillion-dollar investment plans with UAE. He is currently visiting Kuwait, where inking further mega deals were on the cards.

Sindh Governor Kamran Tessori stated on Tuesday that Pakistan is expected to sign investment agreements worth $100 billion with China, Kuwait, UAE, and Turkey over the next six months. The flow of investment would support the rupee's recovery to Rs180-200/$, he claimed.

Pakistan is projected to receive the IMF loan's next tranche of $700 million in December after the Fund's executive board gives its final approval soon.

The approval would unlock another $1.5-2 billion in financing from other multilateral and bilateral creditors, including the World Bank (WB) and Asian Development Bank (ADB).

A leading financial expert stated that the inflows are expected within a couple of months, which would not only boost the country's foreign exchange reserves (held by SBP) but also support the rupee against foreign currencies.

The development would also create some financial space to liberalise imports and support economic activities in the country.



tribune.com.pk

Saudi Arabia extends term of $3b deposit for another year | The Express Tribune

Move will help maintain foreign currency reserves and contribute to economic growth, says SBP
tribune.com.pk tribune.com.pk
 
The Senate Standing Committee on Housing and Works has sought a report about Rs500 million in funds that were released for development schemes to the ministry and the status of work on these projects.

The panel, headed by Senator Haji Hidayatullah, also reprimanded officials, including the housing secretary, over illegal appointments and corrupt practices. The panel noted that other than causing losses to the exchequer, it would also impact those government employees who were allotted residences in the housing projects developed under the Federal Government Employees Housing Authority (FGEHA).

It was also revealed that provincial quota was ignored in recruitment, with Khyber Pakhtunkhwa given more seats.

FGEHA Director General Captain (retired) Zafar Iqbal said that four projects were started by the authority, which include Kashmir Heights, Chaklala Heights, Skyline Apartments and Lifestyle Residency.

The panel was informed that the contract awarded for the construction of one of the projects, Lifestyle Residency, was given to a company that lack the requisite expertise and certification. The company that was awarded the project also did not have the funds to execute it, the panel was told.

Meanwhile, construction on Chaklala Heights started in 2020 but had to be stopped due to the pandemic and the ensuing inflation. It brought other projects to a standstill as well, Iqbal said.

Panel members pointed out that they had been previously given dates regarding the start of work but it was yet to happen, wasting resources and driving up costs.

Dr. Shahzad Khan Bangash, the secretary of the housing department, responded that contractors had refused to work at the old prices after which they had reached a settlement.

Source: Express Tribune

tribune.com.pk

Housing ministry under fire over FGEHA projects | The Express Tribune

Senate body slams officials over improper inductions, corruption
tribune.com.pk tribune.com.pk
 
The total liquid foreign reserves of Pakistan reached $12,392.8 million while the central bank held the reserves of $7,257 million.

The State Bank of Pakistan, in a statement issued here on Thursday, informed that SBP’s reserves increased by $77 million to $7,257 million during the week ended on November 24, 2023.

Meanwhile, net foreign reserves held by commercial banks stood at $5,135.8 million, it added.

Total liquid foreign reserves held by the country, in the previous week ended on November 17, 2023, were $12.302 billion.

Among them, foreign reserves held by the central bank were $7.18 billion while net foreign reserves held by commercial banks were $5.122 billion.


BOL News
 
In a major policy decision, the caretaker government decided on Thursday to make all the new appointments in the government institutions on contract basis, while all the commercial government institutions would be privatised gradually.

The finance ministry issued a notification titled ‘Ownership and Management Policy of Government Institutions 2023, which would apply to all government-owned enterprises (GOEs). It said that a cabinet committee would be established to implement the new policy.

According to the new policy, the government would retain the control of “sensitive institutions of strategic nature” while the commercial enterprises would be privatised. However, it added some institutions would be restructured and their future would be decided soon.

The policy, which would be updated and issued once in every five years, envisaged that financially or operationally failing entities would be declared a sick company and a plan for their rehabilitation and reorganisation would be prepared.

It has been decided that in future new recruitments in government institutions would be made on contract basis. However, Strict criteria would be applied for hiring of senior management officials, including chief financial executive officers (CEOs), chief financial officers (CFOs) and secretaries.

Similarly, according to the notification, the decision to retain or terminate the job of officials would be taken on the basis of the performance of those officers. In case of dismissal over unsatisfactory performance, the policy said that one month's notice would be given.

According to the document, categories of GOEs will be prepared within six months of the policy implementation. All GOEs would develop an effective internal audit procedure; and their performance would be monitored by a central monitoring unit.

The proposed unit would analyse business plan for the government agencies and make recommendations. According to the policy, a database of the independent board of directors of these institutions would also be prepared.

Source: Express Tribune

tribune.com.pk

Govt to privatise all its commercial entities | The Express Tribune

New policy envisages future recruitment on contract basis
tribune.com.pk tribune.com.pk
 
Caretaker govt privatizing everything is a bad idea. Big decisions like this should wait for a real government with proper approval.
 
Annual inflation rises to 29.2pc in November

Annual inflation clocked in at 29.2 per cent in November, data from the Pakistan Bureau of Statistics (PBS) showed on Friday, a slight increase from October but well below a peak of 38pc in May.

Compared with the previous month, inflation was 2.7pc.

The country is embarking on a tricky path to economic recovery under the caretaker government after a $3 billion loan programme approved by the International Monetary Fund (IMF) in July averted a sovereign debt default.

Measures demanded by the IMF include revising the country’s budget, hiking the policy rate, and increasing electricity and natural gas prices and taxes.




www.dawn.com

Annual inflation rises to 29.2pc in November

Compared with the previous month, inflation came in at 2.7pc.
www.dawn.com
 
Third monthly rise in goods exports

ISLAMABAD: Merchandise exports continued upward trend for the third consecutive month in November marking a potential shift in the economic landscape.

In absolute terms, the export proceeds were recorded at $2.57 billion in November against $2.38bn over the corresponding month last year, indicating a growth of 7.66 per cent. However, on a month-on-month basis, the export proceeds decreased 4.39pc.

The export of goods in the first five months of FY24 increased by 1.93pc to $12.17bn against $11.94bn in the corresponding period last year.

The uptick in export proceeds in November suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn. However, the full scale of the export resurgence will become apparent in the forthcoming months.

According to a preliminary report, the increase in overall export value was mostly driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. Furthermore, in the non-textile sector, the export earnings of food goods, particularly rice and beef, have posted unprecedented increases in recent months.

The commerce ministry reported that over 1,600 textile units had closed down in the PDM government. However, the ministry has yet to announce the strategic framework to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products.

However, the imports declined by 13.47pc to $4.46bn in November from $5.15bn in the same month last year. On a month-on-month basis, the imports increased by 8.31pc. The import bill fell 17.32pc to $21.55bn in July-November FY24 from $26.06bn over the corresponding months last year.

The imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22. The government has projected an import target of $58.69bn for FY24 against $55.29bn in FY23, an increase of $3.4bn or 8.14pc.

The trade deficit narrowed 33.59pc to $9.37bn in July-November FY24 from $14.12bn over the corresponding months of last year. The trade deficit contracted 31.72pc to $1.88n in November from $2.76bn over the corresponding month last year.

www.dawn.com

Third monthly rise in goods exports

Increase mostly driven by semi-finished goods in textile sector while value-added garment exports remained negative.
www.dawn.com
 
Dr. Gohar Ejaz, Pakistan’s Commerce and Industries Minister, led an official delegation in Saudi Arabia comprising Secretaries of the Ministry of Commerce and Board of Investment (BOI) and officials from the Attorney General’s Office.

He held parleys with the GCC’s Chief Negotiator to finalize the investment-related part of the GCC Free Trade Agreement (FTA), said a press release issued here on Sunday.

The technical teams from the two sides held extensive discussions on the remaining details of the investment chapter, including investment protection and facilitation.

They also discussed the potential impact of the FTA on bilateral trade and investment flows. “This is a major step forward in our efforts to strengthen economic ties between Pakistan and the GCC.” said Ejaz.

The investment chapter is an important part of the agreement, and we are confident that we can reach an agreement soon.

The GCC FTA is expected to boost trade and investment between Pakistan and the GCC.
The agreement is also expected to create new jobs and opportunities for businesses in both regions.

The two sides also discussed the possibility of holding a joint business forum shortly and to promote trade and investment between Pakistan and the GCC.
Mr. Gohar Ejaz thanked the GCC for its warm hospitality.

Source: ARY

arynews.tv

Gohar Ejaz visits KSA to finalize trade agreement with Gulf countries

Dr. Gohar Ejaz, Pakistan’s Commerce and Industries Minister, led an official delegation in Saudi Arabia comprising Secretaries of the Ministry of Commerce
arynews.tv arynews.tv
 
BouncerGuy said:
Third monthly rise in goods exports

ISLAMABAD: Merchandise exports continued upward trend for the third consecutive month in November marking a potential shift in the economic landscape.

In absolute terms, the export proceeds were recorded at $2.57 billion in November against $2.38bn over the corresponding month last year, indicating a growth of 7.66 per cent. However, on a month-on-month basis, the export proceeds decreased 4.39pc.

The export of goods in the first five months of FY24 increased by 1.93pc to $12.17bn against $11.94bn in the corresponding period last year.

The uptick in export proceeds in November suggests that the textile and clothing sectors are beginning to secure orders from global clients following a year of downturn. However, the full scale of the export resurgence will become apparent in the forthcoming months.

According to a preliminary report, the increase in overall export value was mostly driven by semi-finished goods in the textile sector, while value-added garment exports remained negative. Furthermore, in the non-textile sector, the export earnings of food goods, particularly rice and beef, have posted unprecedented increases in recent months.

The commerce ministry reported that over 1,600 textile units had closed down in the PDM government. However, the ministry has yet to announce the strategic framework to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products.

However, the imports declined by 13.47pc to $4.46bn in November from $5.15bn in the same month last year. On a month-on-month basis, the imports increased by 8.31pc. The import bill fell 17.32pc to $21.55bn in July-November FY24 from $26.06bn over the corresponding months last year.

The imports fell 31pc to $55.29bn in FY23 from $80.13bn in FY22. The government has projected an import target of $58.69bn for FY24 against $55.29bn in FY23, an increase of $3.4bn or 8.14pc.

The trade deficit narrowed 33.59pc to $9.37bn in July-November FY24 from $14.12bn over the corresponding months of last year. The trade deficit contracted 31.72pc to $1.88n in November from $2.76bn over the corresponding month last year.

www.dawn.com

Third monthly rise in goods exports

Increase mostly driven by semi-finished goods in textile sector while value-added garment exports remained negative.
www.dawn.com
Click to expand...
We don't import too much, we just don't export enough. And because of instability,we won't get the stability in currency and people won't invest. The drop in oil prices is temporary and they will sooner or later go up to 110,and in the long term upto 150-180, if not higher
 
Interest payments remain a challenge as govt paints rosy economic picture

ISLAMABAD: Painting a positive overall macroeconomic picture, the caretaker government is now hoping for a downhill journey from the painful inflation rate and a further increase in economic activities over the coming months.

“Pakistan’s economy is on a gradual but promising path to recovery. The stride of economic revival initiatives is driving a surge in economic activity,” said the Economic Advisers’ Wing of the Ministry of Finance in its monthly Economic Update & Outlook, but warned that higher mark-up payments could put significant pressure on expenditures.

It said the positive economic signals and recovery indicators had triggered market sentiment, propelling the Karachi Stock Exchange Index by over 33pc in November and surpassing the 60,000-point mark for the first time in history.

It attributed the market sentiment to a sustained monetary policy stance and successful IMF staff review in November and noted that the exchange rate remained stable, owing to reforms in exchange companies and a reduction in illicit transactions, which exerted a positive impact on overall economic activity.

Surprisingly, the Ministry of Finance refrained from utilising the economic performance data, approved last week by the National Accounts Committee (NAC), that put the gross domestic product growth rate at 2.13pc for the first quarter of the current fiscal year, and continued to flag higher mark-up payments as major challenges to the fiscal position, albeit in a sugarcoated manner.

“Despite better fiscal accounts during the first quarter of the current fiscal year, higher mark-up payments may put significant pressure on the expenditure side. However, it is expected that effective fiscal management through robust growth in revenues and a cautious expenditure approach will navigate potential challenges and maintain positive momentum in the fiscal sector”, it said.

Similarly, although the Ministry of Finance released its monthly report in December, most of the data it used for economic performance pertained to October, although a lot of the data for November is now publicly available – particularly relating to inflation, imports, exports, foreign exchange position, revenues and so on.

During the first four months of FY2024, the overall performance of the economy is encouraging as the monthly economic indicator (MEI) continued to be positive in October 2023, driven by a notable improvement in key indicators of economic activity.

The outlook report said the better performance of the large-scale manufacturing (LSM) sector, fueled by positive trends in high frequency data, a steady uptick in imports, and improvement in composite leading indicator (CLI) of Pakistan’s major export markets were providing impetus to overall economic activity.

“All these gains are also reflected in improved fiscal and external accounts position”, it said, also noting the positive impact of the staff-level agreement reached with the IMF on November 15 on the feel-good environment.

The ministry said the IMF programme supported the government’s commitment to advance planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, pursue SOEs and governance reforms to attract investment and support job creation while continuing to strengthen social assistance.

At the same time, the execution of the FY2024 budget with continued adjustment of energy prices, and renewed flows into the foreign exchange (FX) market have lessened fiscal and external pressures.

...
www.dawn.com

Interest payments remain a challenge as govt paints rosy economic picture

Monthly report warns that higher mark-up payments could put significant pressure on expenditures.
www.dawn.com
 
Bulls take PSX to another peak above 63,000 level

Bulls maintained their dominance on the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday and crossed the 63,000 milestone.

According to the PSX website, the KSE-100 index struck 63,299.97 points at 10am, up by 343.95 or 0.55 per cent from the previous close of 62,956.02.

The benchmark of representative shares has seen a record-breaking streak in recent days. Analysts predict the bullish momentum would continue well into 2024, driven by optimistic expectations of an improved economic landscape going forward.

Additionally, there’s speculation about a likely reduction in the benchmark interest rate, currently at 22 per cent, in the upcoming meeting of the Monetary Policy Committee (MPC) of the State Bank of Pakistan.

Sana Tawkfik, deputy head of research at Arif Habib Limited, attributed today’s rally to a spike in foreign buying.

She noted that the year-on-year decline in trade deficit by 32pc in November was a positive development for investors who were looking for a sign of improving economic outlook.
​
www.dawn.com

Bulls take PSX to another peak above 63,000 level

Analysts paint happy picture for PSX, expect momentum to continue well into 2024.
www.dawn.com
 
ADB approves $659m financing for Pakistan
Funds allocated for resource mobilization, school rehabilitation, and agricultural productivity enhancement

Days after Finance Minister Shamshad Akhtar declared public debt as “unsustainable”, Pakistan secured an expensive $300 million loan at market rates from the Asian Development Bank to improve tax compliance, showing a glaring contrast between the government’s actions and words.

The loan has not been obtained for any development purposes; rather the proceeds would be utilised for budget financing purposes in the name of bringing reforms in Pakistan’s revenue and expenditure frameworks.

The Manila-based lending agency on Wednesday approved a $659 million financing package for Pakistan under three different loans. These include $300 million for improving domestic resource mobilisation; $275 million for rehabilitating schools damaged by the devastating August 2022 floods; and $80 million for enhancing agricultural productivity to improve food security, according to an announcement by the ADB on Wednesday.

The ADB announcement came as a World Bank’s Debt Management and Sustainability Mission met with the finance minister to review the debt management of the country.

Last week, Dr Akhtar announced that Pakistan’s debt burden has become “unsustainable” -- a notion to which World Bank’s Vice President for South Asia Martin Raiser did not agree. In an interview, Raiser described the country’s debt as “sustainable”.

The ADB is already paying salaries of half of the staff of Pakistan’s Debt Management Office, which should ideally be paid by the finance ministry.


...
tribune.com.pk

ADB approves $659m financing for Pakistan | The Express Tribune

Funds allocated for resource mobilization, school rehabilitation, and agricultural productivity enhancement
tribune.com.pk tribune.com.pk
 
Pakistan’s central bank reserves decrease $237mn, now stand at $7.02bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $237 million on a weekly basis, clocking in at $7.02 billion as of December 1, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $12.1 billion. Net foreign reserves held by commercial banks stood at $5.08 billion.

The central bank attributed decline in the reserves to debt repayments.

“During the week ended on 01-Dec-2023, SBP’s reserves decreased by US$ 237 million to US$ 7,020.2 million due to debt repayments,” it said.

Last week, Pakistan’s central bank reserves had increased by $77 million.

In July this year, reserves held by the central bank got a boost as Pakistan received the first tranche of around $1.2 billion from the International Monetary Fund (IMF) after the lender approved a new $3-billion Stand-By Arrangement (SBA). It also got inflows from Saudi Arabia and the UAE.

However, the SBP reserves have been under pressure due to debt repayments, rise in import payments after easing restrictions, and a lack of fresh inflows.



www.brecorder.com

Pakistan’s central bank reserves decrease $237mn, now stand at $7.02bn

Total liquid foreign reserves held by country stand at $12.1 billion as of December 1
www.brecorder.com
 
Pakistan opens up Islamic bond market to retail investors with first listed sukuk

KARACHI: The Pakistan Stock Exchange (PSX) will host its first-ever auction of a one-year listed local currency sukuk on December 8 (Friday) to diversify government funding sources, boost Islamic finance, and develop a Shariah-compliant capital market.

The government plans to raise a total of Rs90 billion through three government Ijarah sukuk auctions between December 2023 and February 2024, according to the dates and target size released by the exchange. On Friday, there will be the first auction.

The sovereign sukuk will be backed by Islamabad Metro (Islamabad Portion) and use the Ijarah structure, a sharia-compliant sale and lease-back of underlying assets. The joint financial and Shariah advisors for the issuance are Meezan Bank Limited, Dubai Islamic Bank (Pakistan) Limited, BankIslami Pakistan Limited, and Bank Alfalah Limited.

According to information provided by PSX, all eligible investors are those who meet the requirements outlined in the Government of Pakistan Sukuk Rules 2008 (amended in 2023) and as announced by the Ministry of Finance on November 17, 2023. These include individuals, institutions, trusts, funds of all kinds, corporate bodies such as banks and non-banking finance companies, insurance, and Takaful companies, regardless of their residential status.

International Islamic banks and financial institutions, foreign investors, non-resident Pakistanis, and Roshan digital account holders are all eligible to bid in the auction.


www.thenews.com.pk

Pakistan opens up Islamic bond market to retail investors with first listed sukuk

KARACHI: The Pakistan Stock Exchange will host its first-ever auction of a one-year listed local currency sukuk on December 8 to diversify government funding sources, boost Islamic finance, and...
www.thenews.com.pk www.thenews.com.pk
 
Pakistan’s remittances clock in at $2.3bn in November, down 8.6% on monthly basis

Inflow of overseas workers’ remittances clocked in at $2.3 billion in November 2023, 8.6% lower on a month-on-month basis when compared to $2.5 billion in October 2023, showed data released on Friday by the State Bank of Pakistan (SBP).

On a yearly basis, the monthly inflow registered an increase of 3.6% as compared to the remittances registered in the same month of the previous year, data showed.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.

Remittances witnessed an increase last month when experts attributed the rise in the inflows to an improvement in the exchange rate, amid a crackdown against currency smugglers and hoarders, which led to a reduction of the rate gap between the open and inter-bank markets.

However, the inflow has declined on monthly basis again this month.

In first five months of FY24, remittances inflow of $11 billion has been recorded as compared to $12.3 billion in the same period last year.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in November 2023 as they sent $540.3 million during the month. The amount declined by 12.5% on a monthly basis, and was 5.5% up than the $512 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) also declined 13.6 on a monthly basis, from $473.9 million in October to $409.4 million in November. On a yearly basis, remittances improved by 7.6%, as compared to $380.4 million reported in same month last year.

Remittances from the United Kingdom amounted to $341.7 million during the month, an increase of 3.5% compared to $330.3 million in October 2023.

Meanwhile, remittances from the European Union declined nearly 10% month-on-month as they amounted to $268.3 million in November 2023. Overseas Pakistanis in the US sent $261.5 million in November 2023, a month-on-month decrease of 7.7%.

Source: Business Recorder
 
There has been a decline in the remittances since the Imran Khan government was changed.
 
hassan918 said:
There has been a decline in the remittances since the Imran Khan government was changed.
Click to expand...
I swap money but I am not sending money. I give money here and get them to give Rps there. This evil mafia must fund the regime through their stolen billions. The other noticeable thing is that to a person, no one wants to invest in PK. No one is building kotis in Islamabad anymore.
 
SBP holds key rate for fourth time in a row

KARACHI: The State Bank kept the interest rate unchanged at a record 22 per cent on Tuesday for the fourth consecutive meeting, hoping to see a significant decline in inflation in the second half of the fiscal year.

Most independent economists and analysts expected the central bank to hold the rate steady due to a surge in the November inflation.

The bank’s monetary policy committee (MPC) said that an increase in gas prices last month could affect the inflation outlook.

“The decision does take into account the impact of the recent hike in gas prices … the Committee viewed that this may have implications for the inflation outlook, albeit in the presence of some offsetting developments,” it said in a statement.

MPC takes decision given surge in inflation due to hike in gas prices

In an off-cycle meeting on June 26, the SBP raised the policy rate to 22pc as a last-gasp attempt to secure a $3 billion bailout from the International Monetary Fund (IMF) as part of a reforms programme aimed at bringing stability to the economy.

The country’s economy has been beset by high price pressures, with monthly consumer price index-based inflation remaining above 20pc since June 2022, and hitting a record high of 38pc in May this year.

The bank and the IMF both say they expect inflation to ease in the current financial year, but inflation remained at 29.2pc in November after the government increased energy prices to meet reform targets.

“The MPC noted that the higher-than-expected increase in gas prices contributed 3.2 percentage points to the 29.2pc y/y (year-on-year) inflation in November 2023,” the bank said.

“Further, core inflation remained sticky at 21.5pc during the month, only slightly lower from its peak of 22.7pc in May 2023. Inflation expectations of both consumers and businesses, though improving in recent months, remain at an elevated level.

“Nevertheless, barring a further sizable increase in administered prices, the MPC continues to expect that headline inflation will decline significantly in the second half of FY24 due to contained aggregate demand, easing supply constraints, moderation in international commodity prices and favourable base effect.”

Several economists have criticised the central bank for keeping the interest rate pegged with core inflation, which they say is against the norms prevailing in other economies.

In the statement, the SBP said that its committee assessed that the real interest rate continues to be positive on a 12-month forward-looking basis and inflation is expected to remain on a downward path.

It said the current monetary policy stance is appropriate to achieve the inflation target of 5pc-7pc by the end of the 2024-25 fiscal year.

The SBP said that the recovery in real GDP during the current fiscal year (FY24) is expected to remain moderate. According to the first estimates, real GDP grew by 2.1pc year-on-year in the first quarter (July-September) of this fiscal year compared to 1pc a year ago.
​
www.dawn.com

SBP holds key rate for fourth time in a row

The monetary policy committee takes the decision given surge in inflation due to hike in gas prices.
www.dawn.com
 
China prefers elected govt for ML-1 project
Caretaker government eyes project launch amidst tenure

ISLAMABAD:
The Chinese authorities have displayed a preference to collaborate with the elected government rather than the current caretaker administration on the multi-billion-dollar Mainline-1 (ML-1) project, sources within the planning ministry revealed on Tuesday.

Despite the caretaker government's inclination towards initiating the project during its tenure, there appears to be a diplomatic protocol at play.

The Chinese authorities, in adherence to diplomatic norms, have expressed a desire to engage with the forthcoming elected government for the project, the sources said.

It is pertinent to note that this comes as recently Caretaker Prime Minister Anwaar-ul-Haq Kakar’s directives prompted the ministry of railways to submit the revised PC-1 of the ML-1 project to the planning ministry.

The estimated overall project cost stands at $6.67 billion, to be executed in two phases. The revised PC-1 outlines the construction of an initial phase covering a 930-kilometre track to be completed within five years, costing $3159.7 million.

In the first phase, a track of 930 kilometres will be built. The cost of the track built in the first phase is $3159.7 million.

Package One consists of a 397-kilometre track, encompassing Nowshera, Rohri, Khanpur, and PR Walton, while Package Two extends for 533 kilometres

Package Two includes tracks from Karachi to Nawabshah (296 kilometres) and from Khanpur to Multan (237 kilometres), with a total expenditure of $3,159 million.

The second phase of ML-1 incurs a cost of $3,518.8 million, covering a track length of 796 kilometres. Package Three links Multan to Lahore (334 kilometres) with an expenditure of $799 million.

...
tribune.com.pk

China prefers elected govt for ML-1 project | The Express Tribune

Caretaker government eyes project launch amidst tenure
tribune.com.pk tribune.com.pk
 
Textile sector faces worrying decline

LAHORE: The textile sector of Pakistan is losing its momentum in global export markets, as November 2023 data suggests another 3.45% drop in export revenues. Despite being considered the backbone of the country’s industrial sector, lacklustre performance throughout this calendar year has initiated a debate within economic circles regarding the future of this crucial industry in Pakistan.

As per data released by the State Bank of Pakistan (SBP), textile sector export revenues in November 2023 stood at $1.37 billion against $1.5 billion in October this year. On a year-on-year basis, the sector has once again posted negative growth of 3.51%, with figures in November 2022 recorded at $1.42 billion. From July to November of FY2023-24, the sector’s performance was recorded at $6.9 billion against $7.7 billion during the same period of FY-23, showing a decline of 10.14%.

Textile exporters already fear a minimum loss of $2 billion in this fiscal year, attributing the negative trend to the government’s lack of interest in the textile sector. They blame below average performance of key trade institutions in providing opportunities in export markets and finding new markets.

While subsidised energy tariffs have been a consistent demand from textile exporters, their enjoyment of these benefits has failed to yield the desired results of greater exports, focusing on value addition of textile products as per the demand of new generations in export markets.

Further details of the data released on Monday indicates that out of 24 sub-sectors of the textile group, only six managed to remain positive on a month-on-month basis. The rest of the important sub-sectors remain in a negative trajectory. Cotton yarn and cotton cloth month-on-month exports in November declined by 0.66% and 7.5%, respectively. Other important sub-sectors like knitwear, bedwear, and towels registered negative growth of 5.95%, 10%, and 9.1%, respectively, in November 2023.

Similarly, the readymade garments sub-sector, which previously showed some promising results, also remains in the negative zone, dipping by 3.6% in November 2023. The recently established Special Investment Facilitation Council (SIFC), according to industry stakeholders, is also not focusing on the textile sector. Commerce Minister and Industries, Dr Gohar Ejaz, also plan to enhance overall export sector revenues to $100 billion, which currently stands at $30 billion. Nevertheless, economists suggest that it would not be an easy task to do, and given the current state of affairs of the Pakistani economy, the interim commerce minister’s desire appears to be a distant dream.
​
tribune.com.pk

Textile sector faces worrying decline | The Express Tribune

November 2023 records another 3.45% drop in export revenues
tribune.com.pk tribune.com.pk
 
Current Account Deficit declines to $1.6bln in 5 months: SBP

The Current Account Deficit (CAD) has significantly slid down to $1.16 billion during the first five months of the current fiscal year as compared to the deficit of $3.26 billion during the same period of last year, State Bank of Pakistan (SBP reported Monday.

“Current Account Deficit improved significantly to $1.16 billion in July-November FY24, from $3.26 billion in July-November FY23,” SBP posted on the social media website X (formerly Twitter). On year-on-year basis, the CAD witnessed a surplus of $9 million in November 2022 compared to a deficit of $157 million in November 2023.

According to the latest SBP figures, the merchandize trade deficit during July-November (2023-24) was recorded at $8770 million as compared to the deficit of $13,427 million in July-November (2022-23). Likewise, the services’ trade deficit was recorded at $1,124 million during FY2023-24 compared to the deficit of $317 million during the corresponding period of last year. The overall trade deficit in goods and services was recorded at $9,894 million during the current fiscal year compared to the deficit of $13,744 million during last year. Meanwhile, the balance on primary income stood at negative 2,957 million against $1,951 million last year, according to the SBP data.

Source : Daily Times
 
PKR improves by 5 paisas for 5th session to 283.21 vs USD

Rupee improved by 5 paisas (+0.02 percent) against the US dollar in the inter-bank market for the fifth straight session on Monday while it remained unchanged in the open market.

The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 283.26 against the dollar in the interbank market and closed at 283.21.

The local unit improved by 61 paisas against the greenback last week while it has gained Rs3.77 during the previous five weeks. Similarly, the rupee improved by Rs5.08 during the current fiscal year 2023-24. However, the rupee depreciated by Rs52.37 in the current year. The rupee shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October. The currency surged more than 6 percent in September to become the top performer in the world.

On the other hand, the local unit remained unchanged for the third straight day against the greenback in the open market. The rupee was quoted at 281.50 for buying and 284.50 for selling as compared to the same rates in the previous sessions, according to data provided by the Exchange Companies Association of Pakistan (ECAP). The rupee gained 50 paisas against the greenback last week.

Source : Daily Times
 
World Bank approves $350m in financing to support fiscal, competitive reforms in Pakistan

The World Bank’s board of executive directors approved $350 million in financing for the Second Resilient Institutions for Sustainable Economy (RISE-II) operation in Pakistan on Tuesday.

Najy Benhassine, World Bank’s country director for Pakistan, in a statement highlighted that this project completes the initial phase of “tax, energy and business climate reforms” aimed at improving fiscal revenues and stimulating competition and investment.

RISE-II aims to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth in the country whose economy is struggling to grow, with persistently high inflation and foreign reserves running low.

"Based on the foundations laid through RISE II and parallel support by other IFIs, Pakistan has the opportunity to tackle long-standing structural distortions in its economy after the upcoming general elections,” Derek H. C. Chen, task team leader of the operation said in a statement.

“Failing to use this opportunity would risk plunging the country back into stop-and-go economic cycles,” Chen added.

The operation also aims to foster growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, encouraging the use of digital payments and promoting exports by lowering import tariffs, the World Bank said in its statement.

Source : Dawn News
 
2023, the year of crisis for Pakistan's economy

Economic crisis: In 2023, Pakistan saw new lows. The Pakistani rupee hit an all-time low, crossing the PKR 300 mark against the US dollar in August 2023. The country's foreign reserves with the State Bank of Pakistan (SPB) also dropped to an alarming level — at $3.1 billion in January 2023.

The cash-strapped country struggled to unlock funding from the International Monetary Fund (IMF). In a bid to secure one, the SBP hiked interest rate by 300 basis points (bps) to 20 per cent — the highest level since October 1996. The country introduced taxes after raising gas and electricity prices.

Pakistan Consumer Price Index (CPI) growth reached an all-time high of 38.0 per cent YoY in May 2023, as per the CEIC database. It was measured at 26.9 per cent YoY in October 2023, compared with a rate of 31.4 per cent in September. The inflation rose so much so that a litre of milk was being sold at over ₹200 in Pakistan.

In a bid to tackle inflation, a free flour scheme was launched in Pakistan, especially for the poor in the Punjab province under the Ramzan package. Around April-March, a deadly stampede in Pakistan's Karachi killed over 10 people at a free food distribution centre in Pakistan's Karachi.

Pakistan finally reached a staff-level agreement with the IMF on a $3 billion "nine-month Stand-by Arrangement (SBA)". The executive board of the IMF will finally meet on January 11, 2024, to consider the final approval to hand out to Pakistan the next $700 million tranche of its loan program.

Source : The Mint
 
Pakistan’s foreign reserves rise to $ 12.855 billion

The total liquid foreign reserves of Pakistan increased to US$ 12,855.7 million while the reserves held by the central bank reached at $ 7,757.1 million in the week ended on December 22, 2023.

The State Bank of Pakistan, in a statement issued here on Thursday, informed that SBP’s reserves increased by $ 852 million to $ 7,757.1 million mainly due to receipt of official Government of Pakistan inflows during the week under review.

Meanwhile, net foreign reserves held by commercial banks stood at $ 5,098.6 million, it added.

Total liquid foreign reserves held by the country, in the previous week ended on December 15, 2023, were $ 12,068.4 million. Among them foreign reserves held by the central bank were $ 6,904.8 million while net foreign reserves held by commercial banks were $ 5,163.6 million.

Source : Samaa News
 
Inflation projected to ease to 20-22pc for FY24: SBP

State Bank of Pakistan (SBP) on Friday said the inflation rate will ease to around 20-22 per cent in the 2024 financial year, according to a report issued weeks ahead of the February 8 general elections.

According to the SBP governor’s annual report on the past fiscal year, the bank will continue to make decisions to prevent high inflation from becoming entrenched.

The report added that the economy missed its fiscal and primary surplus targets in FY23 by a large margin, with real GDP contracting to 0.2pc.

Pakistan experienced its highest-ever inflation in FY23 with the rupee dipping to historic lows until a $3 billion bailout from the International Monetary Fund averted an imminent sovereign default in July.

SBP Governor Jameel Ahmed also said in his report that average inflation, measured by the consumer price index, surged to 29.2pc in FY23, which was around the upper bound of the bank’s revised projections.

Ahmed added that the central bank would keep inflation expectations anchored to achieve its medium-term target of 5-7pc.

Fiscal and policy measures taken before and after the bailout are stabilising the $350bn economy as Pakistan approaches the national election.

Source : Dawn News
 
Weekly inflation up by 0.37pc

The weekly inflation, measured by the Sensitive Price Indicator (SPI), witnessed an increase of 0.37 percent for the combined consumption groups during the week ended on December 28, the Pakistan Bureau of Statistics (PBS) reported on Friday.

The SPI for the week under review in the above-mentioned group was recorded at 311.14 points as compared to 310.00 points during the past week, according to the PBS data.

As compared to the corresponding week of last year, the SPI for the combined consumption group in the week under review witnessed an increase of 43.25 percent.

The weekly SPI with the base year 2015-16 =100 covers 17 urban centers and 51 essential items for all expenditure groups.

The SPI for the lowest consumption group up to Rs 17,732, increased by 0.40 percent and went up to 306.04 points from last week’s 304.83 points.

The SPI for consumption groups from Rs 17,732-22,888, Rs 22,889-29,517; Rs 29,518-44,175 and above Rs 44,175 it increased by 0.41 percent, 0.38 percent, 0.39 and 0.35 percent respectively.

During the week, out of 51 items, prices of 15 (29.41 percent) items increased, 09 (17.65 percent) items decreased and 27 (52.94 percent) items remained stable.

The items, which recorded a decrease in their average prices on a week-on-week (WoW) included potatoes (8.66 percent), tomatoes (1.01 percent), vegetable ghee 2.5 kg (0.61 percent), cooking oil 5 litre (0.44 percent), eggs (0.40 percent), mustard oil (0.24 percent), gurr (0.19 percent) and garlic (0.15 percent).

The items that recorded an increase in their average prices on a week-on-week (wow) basis included onions (15.21%), chicken (4.76%), pulse moong (2.90%), pulse gram (2.89%), sugar (1.35%), bananas (1.05%), pulse masoor (0.78%) and pulse mash (0.54%).

On a Year-on-Year (YoY) basis, the items that witnessed decrease in prices included onions (12.57%), mustard oil (5.16%), vegetable ghee 1 kg (1.14%) and bananas (0.20%).

The commodities which recorded an increase in their average prices on YOY basis included gas charges for Q1 (1108.59%), cigarettes (93.22%), chilies powder (81.74%), wheat flour bag (73.81%), garlic (70.67%), tomatoes (65.26%), rice irri-6/9 (58.49%), rice basmati broken (58.47%), gents sponge chappal (58.05%) and sugar (54.25%).



Source: ARY News
 
The illegal mining of gold in the Indus River in Khyber Pakhtunkhwa’s Nowshera district is causing huge losses to the national and provincial exchequers as the authorities failed to take action against the perpetrators.

Several excavators were busy in the illegal extraction of gold at various points of Indus River at Nizampur town while heavy machinery has also been deployed by the mining mafia to illegally extract gold from sediments and sands.

However, the locals said that the district administration, police and the Mines and Minerals Department had failed to control the illegal mining which has been going on for around two years.

They said that an excavator, rented on Rs1.8 million, can extract gold to the tune of Rs10 million per month.

When asked by Aaj News correspondent, the additional director of the Mines & Minerals Department refused to take action against the mafia which according to him comprises influential people.

Earlier, Deputy Commissioner of Nowshera Khalid Kattak told BBC that the authorities have banned gold mining, however, people were still extracting the precious metal illegally.

While the mining has been going on for years in Nizampur, heavy machinery was introduced in 2022 which has gained pace during the outgoing year, he added.

DC Khattak said that a joint check post of police and the Mineral Department has been established in the area to combat the illegal mining and arrest those involved.

Source: AAJ News

www.aajenglish.tv

Illegal gold mining in KP’s Nowshera causing huge losses to national exchequer

Locals say an excavator can extract Rs10 million worth gold per month
www.aajenglish.tv
 
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