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  • Pakistan’s fiscal deficit lowers by 9.5% in first quarter

    Pakistan’s fiscal deficit lowers by 9.5% in first quarter

    KARACHI: Pakistan’s fiscal balance in the outgoing first quarter of 2021/2022 posted a deficit of PKR 438 billion, -9.5 per cent YoY lower than prior year’s deficit, according to data released by the finance ministry on Tuesday.

    In terms of per cent GDP, the deficit arrived at 0.8 per cent in 1QFY22 compared to 1.1 per cent recorded in 1QFY21 (PKR 484 billion), said analysts at Arif Habib Limited.

    However, the primary surplus during the period stood at PKR 184 billion (0.3 per cent of GDP in 1QFY22) , down 29 per cent YoY, compared to a primary surplus of PKR 258 billion witnessed same period last year (0.6 per cent of GDP).

    Primarily, total revenue growth of 22 per cent in 1QFY22 to PKR 1.8 trillion (1QFY21: PKR 1.5 trillion) aided the fiscal balance, translating into 3.4 per cent of GDP vs. 3.2 per cent same period last year.

    The total tax revenue collection was up by 37 per cent YoY to PKR 1.5 trillion. Indirect taxes (+42 per cent YoY to PKR 917 billion) mainly on the back of higher sales tax (+43 per cent YoY to PKR 264 billion), and direct taxes (+32 per cent YoY to PKR 481 billion amid higher number of tax payers), contributed to the overall collection.

    In addition, the government collected PKR 276 billion in non-tax revenues, displaying a decline of 23 per cent YoY. This was particularly owed to lower Petroleum Levy (-90 per cent YoY | PKR 13 billion). On the flipside, the surplus profit of State Bank of Pakistan and Pakistan Telecommunication Authority increased during 1QFY22 to PKR 109 billion (+4 per cent YoY) and PKR 30 billion (+269 per cent YoY), respectively.

    In addition, total expenditures went up by 14 per cent YoY to PKR 2.3 trillion (4.2 per cent of GDP vs. 4.3 per cent of GDP in 1QFY21).

    Further breakup revealed that current expenditure underwent an uptick of 9 per cent YoY of which defence rose by 17 per cent YoY.

    However, the markup expenses went down by 16 per cent YoY to PKR 623 billion. Moreover, development expenditure and net lending undertaken by the government increased by 38 per cent YoY to PKR 180 billion.

    Total PSDP expenditure in 1QFY22 arrived at PKR 262 billion (+63 per cent YoY) with provincial expenditure at PKR 154 billion (+71 per cent YoY), outdoing federal disbursement of PKR 108 billion (+53 per cent YoY).

    Pakistan’s fiscal deficit narrows in nine months
  • Inflation is core issue in Pakistan: PM Imran

    Inflation is core issue in Pakistan: PM Imran

    ISLAMABAD: Prime Minister Imran Khan on Monday said that currently inflation is the core issue in Pakistan. The prime minister said that due to recent inflationary trend in international commodity market, inflation is the core issue in Pakistan currently.

    “We are working hard to ensure effective monitoring of prices of essential commodities through good governance and better price control mechanism.”

    Ensuring a proper control on supply chain, effective price enforcement and a strict check on hoarding are being made more effective for this purpose, he added.

    The prime minister directed the authorities concerned to take all necessary measures to provide maximum relief to common man by making the Market Committees at district and tehsil levels more effective.

    Earlier the Prime Minister was apprised that a successful pilot project was launched in Rawalpindi/Islamabad by PTIs Good Governance Team which resulted in substantial drop in prices of essential commodities by ensuring strict enforcement of Government notified rates.

    The prime minister was also informed that stay orders secured by the ineffective market committees need to be vacated at the earliest to reconstitute robust price monitoring mechanism at district and tehsil levels.

    The meeting was attended by Advisor on Finance Shaukat Fayyaz Tarin, Senator Saifullah Niazi and other officers concerned.

    Pakistan to emerge as food surplus country: PM Imran
  • Consumer confidence declines sharply on high inflation

    Consumer confidence declines sharply on high inflation

    KARACHI: The Consumer Confidence Index (CCI) has declined sharply to 70.8 points in the third quarter of 2021, compared to 88.0 points in the second quarter of 2021, translating into 19.6 per cent decrease.

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  • Pakistan to emerge as food surplus country: PM Imran

    Pakistan to emerge as food surplus country: PM Imran

    ISLAMABAD: Prime Minister Imran Khan has said that Pakistan will emerge from a food deficit to a food surplus country.

    The prime minister on Sunday said that the prices of oil, gas and edible oil were not in the government’s control. “However the owing to the record crops this year, Pakistan would emerge from a food deficit to a food surplus country.”

    He said that Pakistan had comparatively managed “much better” than other countries amidst unprecedented price hike of commodities caused by the COVID lockdown.

    In a Tweet, the prime minister said that an unprecedented rise in commodity prices internationally had adversely affected most countries in the world as a result of the COVID lockdowns.

    However, he said, “Pakistan MashaAllah has fared relatively much better.”

    Quoting the data of Food and Agriculture Organization, he said from September to October this year, food prices increased by 1.9 per cent, World Cereal Index by 3.2 per cent, edible oil prices by 9.6 per cent, and dairy products by 2.6 per cent.

    However, he said despite the worldwide inflation trend, Pakistan’s exports recorded an increase of 17 per cent in October and are likely to touch $30 billion mark this year. Textile exports are expected to reach $22 billion this year.

    He said consequent to the government’s timely measures, the non-oil imports of the country reduced by 12.5 per cent last month making a difference of $750 million.

    He said due to increasing income, tax collection also surged with 32 per cent increase in four months making the government to receive additional Rs 151 billion compared to last year.

    He said according to the latest data, country’s cotton crop increased by 81 per cent during the last four months. In August, the industry recorded a growth of over 12 per cent and companies’ profits by 21 per cent.

    “All this shows that the country’s economy is heading fast and employment would be required in the coming days,” the spokesperson commented.

    Addressing a question about any relief for the middle class in PM’s recently announced Rs 120 billion relief package, he said the government had already announced a concession of Rs5-7 on every electricity unit to be consumed more than the previous year’s consumption during November to February.

    Moreover, he said the sugar prices would fall in the near future owing to record sugarcane crop.

    “All these things will appear on the ground in coming days,” he remarked.

  • Pakistan, Iran discuss promoting agriculture cooperation

    Pakistan, Iran discuss promoting agriculture cooperation

    ISLAMABAD: Pakistan and Iran have engaged in extensive discussions aimed at enhancing agricultural cooperation between the two neighboring countries.

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  • Wheat support price increases to Rs1,950/40kg

    Wheat support price increases to Rs1,950/40kg

    ISLAMABAD: The federal government has increased the minimum support price for wheat to Rs1,950 per 40 kilograms from Rs1,800/40kg.

    A statement issued on Saturday said that to achieve self-sufficiency in wheat, the government has decided to increase the minimum support price for wheat to Rs 1,950/40 kg compared to Rs. 1,800/40 kg last year.

    The government believes that increase in support price will incentivise farmers to grow sufficient wheat to meet the national production target of 28.90 million metric tons.

    It is also hoped that availability of irrigation water and weather conditions will be conducive during rabi season to achieve this target.

    Due to much higher international prices of DAP fertilizer and shipping cost, the domestic price (Rs. 7,300/bag) has also increased significantly. But thankfully, the price of urea (Rs. 1,850/bag) is stable and significantly lower than the international price (Rs. 5,400/bag) because government provide Rs. 126 billion annual subsidy for natural gas.

    The government is working closely with the fertilizer companies to ensure adequate availability of both key fertilizers during this rabi season.

    Moreover, the government has provided over Rs. 16 billion for fertilizer, seed, pesticide, agricultural loan markup subsidies. These timely initiatives have helped generate record production of many commodities.

    “Our hardworking farmers have produced record crops this year. Pakistan has achieved the highest ever production of wheat (27.5 million mt), rice (8.4 million mt), maize (8.5 million mt), mung beans (0.275 million mt), onion (2.3 million mt), and potato (5.7 million mt). And sugarcane achieved the second-highest production (81 million mt).”

    In 2021-22 … Sugarcane production is estimated at 87.67 million tons; 8 per cent higher than that of last year. Rice production is estimated at 8.84 million tons which is 5 per cent higher than that of last year. Maize production is estimated at 9.0 million tons which is 8.5 per cent higher than that of last year. Cotton production as of November 01, 2021 is 6.2 million bales compared to 3.4 million bales (82 per cent higher) at the same date last year.

    ECC approves import of 550,000MT wheat
  • Full plan pivotal to regain economic glory: Tarin

    Full plan pivotal to regain economic glory: Tarin

    KARACHI: Shaukat Tarin, Advisor to Prime Minister on Finance and Revenue, on Friday said that comprehensive economic plan is pivotal to regain Pakistan’s economic glory.

    “Comprehensive economic plan and political will was pivotal in order to regain country’s lost economic glory,” he said.

    He stated this while addressing as a chief guest at 18th Annual Excellence Award ceremony of Chartered Financial Analysts (CFA) Society at a local hotel.

    He said almost all economic indicators were showing positive growth.

    Shaukat Tarin said when the PTI government came into power there was large current account deficit and devalued rupee. The government entered into a tough IMF program with many conditions which initially led to slowing down the economy.

    Then came the COVID-19 pandemic which also damaged our economy to some extent.

    However, he said, Prime Minister Imran Khan’s visionary idea to impose smart lockdown which was recognized globally saved the country from further economic crisis.

    Shoukat Tarin said PM concurrently invested in agriculture, housing, industrial and exports sectors. All those areas which promoted employment in the country and resulted in 3.94 growth last year.

    He said the government to strengthen industry and exports the government gave incentives to both sectors with prime focus on IT industry and its related exports.

    Besides, the government also was going to give subsidies to energy sector for its uplifting.

    Advisor to PM also shed light on economic crisis caused by the improper plannings and no execution of policies of previous governments.

    Shaukat Tarin for finalizing tax harmonization at earliest
  • First consignment from Uzbekistan arrives in Pakistan

    First consignment from Uzbekistan arrives in Pakistan

    A consignment of four cargo trucks from Uzbekistan arrived at the Torkham border, marking the commencement of trade between Uzbekistan and Pakistan.

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  • Pakistan’s import bill surges by 65% in four months

    Pakistan’s import bill surges by 65% in four months

    ISLAMABAD: The import bill of Pakistan surged by 65.15 per cent during the first four months (July – October) of 2021/2022, according to official statistics released on Tuesday.

    The import bill increased to $25.06 billion during the first four months of the current fiscal year as compared with $15.17 billion in the same period of the last fiscal year, according to data of Pakistan Bureau of Statistics (PBS).

    On the other hand, exports of the country registered a growth of 24.71 per cent to $9.44 billion during the first four months of the current fiscal year as compared with $7.57 billion in the corresponding months of the last year.

    The trade deficit of the country swelled by 105.43 per cent to $15.62 billion during July – October of the current fiscal year as compared with the deficit of $7.60 billion in the same period of the last fiscal year.

    The trade deficit widened by 117 per cent to $3.88 billion in October 2021 when compared with the deficit of 1.789 billion in the same month of the last year.

    The import bill during the month of October 2021 increased by 63 per cent to $6.334 billion as against $3.89 billion in the same month of the last year.

    Similarly, the exports exhibited a growth of 16.52 per cent to $2.45 billion in October 2021 as compared with $2.1 billion in the same month of the last year.

    Headline inflation increases by 9.2% in October
  • Headline inflation increases by 9.2% in October

    Headline inflation increases by 9.2% in October

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 9.2 per cent on Year on Year (YoY) basis in October.

    The CPI inflation was 9.0 per cent in the previous month and 8.9 per cent in October 2020, the Pakistan Bureau of Statistics (PBS) said on Monday.

    On month-on-month (MoM0 basis, it increased by 1.9 per cent in October 2021 as compared to increase of 2.1 per cent in the previous month and an increase of 1.7 per cent in October 2020.

    CPI inflation Urban, increased by 9.6 per cent on year-on-year basis in October 2021 as compared to an increase of 9.1 per cent in the previous month and 7.3 per cent in October 2020. On month-on-month basis, it increased by 1.7 per cent in October 2021 as compared to increase of 2.0 per cent in the previous month and an increase of 1.3 per cent in October 2020.

    CPI inflation Rural, increased by 8.7 per cent on year-on-year basis in October 2021 as compared to an increase of 8.8 per cent in the previous month and 11.3 per cent in October 2020. On month-on-month basis, it increased by 2.2 per cent in October 2021 as compared to increase of 2.3 per cent in the previous month and an increase of 2.4 per cent in October 2020.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 15.2 per cent in October 2021 as compared to an increase of 16.6 per cent a month earlier and an increase of 12.3 per cent in October 2020. On MoM basis, it increased by 2.1 per cent in October 2021 as compared to increase of 2.7 per cent a month earlier and an increase of 3.0 per cent in October 2020.

    Wholesale Price Index (WPI) based inflation on YoY increased by 21.2 per cent in October 2021 as compared to an increase of 19.6 per cent a month earlier and an increase of 5.1 per cent in October 2020. WPI inflation on MoM basis increased by 4.2 per cent in October 2021 as compared to an increase of 3.2 per cent a month earlier and an increase of 2.9 per cent in corresponding month i.e. October 2020.

    Pakistan’s September inflation moves up by 9%