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  • Pakistan’s foreign investment surges by 73% in 5 months

    Pakistan’s foreign investment surges by 73% in 5 months

    KARACHI: Pakistan’s total foreign investment surged by 73 per cent during the first five months of the current fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The total foreign investment increased to $455.5 million during July – November 2021/2022 as compared with $263.4 million in the same period of the last fiscal year.

    The total foreign private investment registered a growth of 1.8 per cent to $534 million during the first five months of the current fiscal year as compared with Rs525 million in the same period of the last fiscal year.

    Out of total foreign private investment, the Foreign Direct Investment (FDI) registered a growth of 12.3 per cent to $797.7 million during the first five months of the current fiscal year as compared with $710 million in the corresponding period of the last fiscal year.

    The other component of the foreign investment, the portfolio investment registered a decline of 42 per cent. The portfolio investment recorded an outflow of $263 million during the first five months of the current fiscal year as compared with the outflow of $185.5 million in the corresponding period of the last fiscal year.

    The foreign public investment recorded an increase of 70 per cent due to decline in outflow of investment against debt securities. The outflow in debt securities recorded $79 million during July – November of fiscal year 2021/2022 as compared with the outflow of $261 million in the same period of the last fiscal year.

    Total foreign investment surges by over 98pc in 10 months
  • Pakistan’s forex reserves fall to $25.028 billion

    Pakistan’s forex reserves fall to $25.028 billion

    KARACHI: Pakistan’s foreign exchange reserves declined by $123 million to $25.028 billion by the week ended on December 10, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were $25.151 billion by the week ended December 03, 2021.

    The official reserves of the State Bank came down by $90 million to $18.568 billion by the week ended December 10, 2021 as compared with $18.658 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks fell by $33 million to $6.46 billion by the week ended December 10, 2021 as compared with $6.493 billion a week ago.

    SBP’s forex reserves increase to $18.658 billion
  • Old currency notes can be exchanged till December 2022

    Old currency notes can be exchanged till December 2022

    ISLAMABAD: The federal cabinet chaired by Prime Minister Imran Khan on Tuesday approved the extension in exchanging old Pakistani currency notes.

    The cabinet approved the extension of the period for the exchange of old Pakistani 10, 50, 100, and 1000 currency notes till 31st December 2022.

    At the meeting, Special Assistant to the Prime Minister Dr. Faisal Sultan gave a briefing on the preventive measures regarding the new type of Corona variant, Omicron.

    The cabinet emphasized the need to increase vaccinations, maintain social distance, and wearing masks.

    It was informed that at present 20 million people in Pakistan have not been vaccinated with the second dose of Corona Vaccine.

    READ MORE: Cabinet renews aviation licenses of four airlines

    The cabinet appealed to all such citizens to take the second dose as soon as possible to prevent the spread of COVID.

    The meeting was also informed that Immunity increases 17-folds after the second dose of the vaccine.

    The Prime Minister directed the Federal Ministers Asad Umar and Ms. Zubeida Jalal to visit Gwadar as soon as possible so that recommendations could be formulated for quick resolution of the problems of the people of Gwadar.

    The meeting was briefed regarding the introduction of electronic voting machines and voting rights for overseas Pakistanis. The Cabinet welcomed the ECP’s decision to use an electronic voting machine in the local body elections in Islamabad. The Cabinet was given a detailed briefing on the schedule regarding delivery and use of electronic voting machines at all polling stations in the country and training of staff.

    READ MORE: Pakistan abolishes visa fee for Afghans

    The Cabinet expressed its firm resolve to hold the next elections through electronic voting machines after the implementation of laws regarding electronic voting machines and voting rights for overseas Pakistanis.

    Advisor Finance presented a comparative review of the prices of essential commodities to the Federal Cabinet. The weekly inflation rate has come down by 0.07 per cent. Prices of Sugar, flour and household items have decreased. Collectively, prices of 09 items decreased. Prices of 23 items remained stable. The Cabinet was informed that apart from the prices of Banaspati Ghee and tea leaves in the region, prices of all other essential items are lower in Pakistan.

    These items include flour, grams, dal mash, dal mung, tomato, onion, chicken, and petrol. Concerns were raised over higher prices of essential commodities in Sindh including flour, sugar, milk, ghee, and pulses.

    The Cabinet approved the amendment in the bilateral air route between Pakistan and Tajikistan. This decision will reduce both air distance and travel costs.

    The Cabinet allowed Kazakh Air Company (SCAT) to operate in Pakistan to start air travel between Pakistan and Kazakhstan. The decision will enable direct air travel between Pakistan and Kazakhstan and help boost bilateral trade.

    READ MORE: Pandora papers: PM says returning taxpayers’ money

    To promote trade between Pakistan and Central Asian countries, the Cabinet directed the Aviation Division to start work on finalizing air travel agreements with all Central Asian countries.

    The Cabinet approved an amendment to the air travel agreement between Pakistan and Iraq. This decision will increase the number of commercial flights between Pakistan and Iraq.

    The Cabinet was informed that there is no shortage of urea in the country at present. However, to ensure the supply of urea fertilizer for the Rabi crop in the country, the following approvals were given.

    Sui Northern Gas Company will supply gas to urea plants by January 2022. Gas supply to Pak Arab and Fatima Fertilizer Plants will be ensured. The process of importing additional 50,000 tons of urea should be completed expeditiously. The cabinet was also informed that the price of urea per sack in Pakistan is about Rs. 1864 while in other countries it is being sold at Rs. 10,000 per sack.

    The present government has taken huge and significant steps for the development of agriculture in the country and the welfare of farmers.

    READ MORE: Prime Minister issues directives for reducing burden of indirect taxes

    The Cabinet was given a detailed briefing on sugar production and sugar prices in the country. The Cabinet expressed satisfaction over the current stock and price of sugar. The Prime Minister directed that the strategic reserves of sugar be maintained so that prices remain stable. The Cabinet also approved the issuance of the recommendations of the report of the Special Committee on Sugar Sector Reforms for public opinion.

    On the basis of humanitarian grounds, the process of obtaining Pakistani visas for Afghans has been further eased. After this decision, the security clearance required for obtaining a visa has been reduced from 30 days to 15 days.

    It was also decided to further facilitate the registration process of international NGOs working for the welfare and assistance of the Afghan people.

    This decision has been made on humanitarian grounds and to aid the people of Afghanistan.

    The facility for Afghans immigrating to other countries through Pakistan has been extended for another 60 days. This facility includes travel by land and air routes.

    It was also decided to make the process of obtaining a Pakistani visa easier for the officials of international NGOs working for the welfare of the Afghan people.

    READ MORE: Authorities seal 192 illegal pumps selling smuggled petroleum products

    This decision has been made on humanitarian grounds and for helping the people of Afghanistan. OGRA’s annual report for the year 2019-20 was presented to the Cabinet.

    The report comprises recommendations regarding the performance of Pakistan’s petroleum industry, production, supply and demand, and improvement of the petroleum industry.

    The Cabinet was informed that at present there is a 27-days stock of petrol and diesel. About 75 Exploration licenses generated revenue of Rs. 29 billion. Safety standards for LPG cylinders are being improved and a public awareness campaign is underway. 10 licenses were issued to LPG companies. An audit is being carried out to prevent gas theft. Action is being taken against those selling petrol at illegal petrol pumps and in plastic containers.

    The Cabinet endorsed the decisions taken at the meeting of the Committee on Institutional Reforms held on November 24, 2021.

    CCIR Decisions – Merger of National Research Institute for Fertility Care Karachi with National Institute of Population Studies, Islamabad.

    The Cabinet ratified the decisions taken in the meeting of the Committee on Energy held on 02 December 2021.

    CCOE Decision – Tariff Protection (Deemed Duty) for Refineries – Report by Implementation Committee for renegotiation with IPPs under 2002 Power Policy (Rs. 134 billion paid to IPPs) The Cabinet ratified the decisions taken at the meeting of the Economic Coordination Committee (ECC) held on December 10, 2021.

    ECC decisions

    Small and Medium Enterprises (SMEs) Policy 2021-25

    Commercial Gas allocation from M/S United Energy Pakistan’s Fields.

    The mechanism for Granting Concessionary Tariff to the eligible Consumers of Zero-Rated Industrial Consumers of Lahore and Sundar Industrial Estate and for prospective Industrial Estates.

    Cabinet approved giving the additional charge of CEO, Central Power Purchasing Agency to Chief Financial Officer, CPPA.

    Cabinet approved NDMA’s assistance to Afghanistan on humanitarian grounds. The government of Pakistan has already provided 200,000 tons of wheat under the World Food Program and has provided an additional 50,000 tons of wheat as aid to the Afghan people.

  • Pakistan’s remittances fall by 6.6% in November 2021

    Pakistan’s remittances fall by 6.6% in November 2021

    KARACHI: The inflows of foreign remittances sent Pakistan’s workers have registered a decline of 6.6 per cent Month on Month (MOM) to $2.352 billion in November 2021 when compared with $2.518 billion in October 2021.

    According to statistics released by the State Bank of Pakistan (SBP), the remittances, however, grow 0.6 per cent in November 2021 when compared with $2.339 billion in November 2020.

    The SBP said: “With $2.4 billion of inflows during November 2021, workers’ remittances continued their strong streak of remaining above $2 billion since June 2020.”

    READ MORE: ECC approves loyalty program for home remittances

    Remittances inflows during November 2021 were mainly sourced from Saudi Arabia ($590 million), United Arab Emirates ($452.5 million), United Kingdom ($305.8 million) and the United States of America ($237.8 million).

    Cumulatively, the remittances grew by 9.7 per cent to $12.9 billion during first five months (July – November) 2021/2022 of the current fiscal year as compared with $11.77 billion in the corresponding period of the last fiscal year.

    READ MORE: FBR not to ask source of remittances sent through ECs

    The SBP said that the proactive policy measures by the government and SBP to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have contributed towards the sustained inflows of remittances since last year.

    PM Imran launches incentive program for remittances
  • SBP’s forex reserves increase to $18.658 billion

    SBP’s forex reserves increase to $18.658 billion

    KARACHI: The foreign exchange reserves of the State Bank of Pakistan (SBP) have increased to $18.658 billion after a deposit of $3 billion from Saudi Fund for Development (SFD).

    READ MORE: Pakistan’s import cover reduces to two months

    The SBP on Thursday said during the week ended December 03, 2021a deposit of US$ 3,000.0 million was received from Saudi Fund for Development. After accounting for external debt and other official payments, SBP reserves increased by $2.648 billion to $18.658 billion, the SBP added.

    The total foreign exchange reserves of the country have increased by $2.652 billion to $25.151 billion by week ended December 03, 2021. The foreign exchange reserves were at $22.499 billion by week ended November 26, 2021.

    The foreign exchange reserves held by commercial banks registered a nominal increase by $4 million to $6.493 billion when compared with $6.489 billion a week ago.

  • Prudent reforms helped improve tax-to-GDP ratio: Tarin

    Prudent reforms helped improve tax-to-GDP ratio: Tarin

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, Thursday said prudent fiscal reforms have helped in improving the tax-to-GDP ratio.

    He said this while addressing at an event organized by Pakistan Business Council.

    READ MORE: Tax to GDP ratio at 20% prime objective: Tarin

    The adviser highlighted the economic priorities of the government and said that the government is committed to introducing growth-oriented measures to stimulate economic growth, with a clear roadmap of strategic priorities, business facilitation, investment opportunities, revenue, and expenditure plans.

    The aspiration was to lay the foundation of higher inclusive and sustainable growth so that the economy withstands any shock. These policies stabilized the economy while simultaneously improving the growth prospects.

    READ MORE: FBR projects 12 percent tax to GDP ratio in three years

    He said that prudent fiscal reforms have helped in improving the tax-to-GDP ratio and improving revenue generation. Increasing tax collection and expanding the tax base were key objectives of the government’s financial agenda.

    The adviser identified priority sectors such as agriculture, IT, and industry modernization to boost exports and said special economic zones have been set up to attract foreign investment.

    READ MORE: Tax to GDP ratio slips to 11.4 percent in FY20

    The government is vigorously pursuing a “Make in Pakistan” policy to promote export-oriented industrialization in the country. The government’s efforts had been to further the investment climate and attract FDIs in the country.

    The Adviser also shared the steps taken to help the underprivileged through the social protection programs to improve the living standard of vulnerable segments of the society by empowering them.

    READ MORE:

  • Profit rates on saving schemes sharply increased

    Profit rates on saving schemes sharply increased

    ISLAMABAD: The government has announce sharp increase in profit rates for national saving scheme following the significant rise in key policy rate announced last month by the State Bank of Pakistan (SBP).

    The Central Directorate of National Savings (CDNS) on Thursday notified increase in profit rates of saving schemes. The CDNS increased the profit rate up to 240 basis points with effect from December 10, 2021.

    READ MORE: SBP increases policy rate by 150 basis points to 8.75%

    The profit rate on special saving account has been increased by 240 basis points to 10.6 per cent from 8.20 per cent.

    The profit rate on regular income certificate has been increased by 204 basis points to 10.8 per cent from 8.76 per cent.

    The profit rate on pension and Behbood certificates have been increased by 192 basis points to 12.96 per cent from 11.04 per cent.

    The profit rate has been increased by 175 basis points to 7.25 per cent from 5.5 per cent on saving accounts.

    Similarly, the profit rate on defence saving certificates has been increased by 161 basis points to 10.98 per cent from 9.37 per cent.

    READ MORE: CDNS decides screening all customers of national saving schemes

  • Mandatory biometric verification restored for pensioners

    Mandatory biometric verification restored for pensioners

    ISLAMABAD: The government has made mandatory the biometric verification for pensioners to make withdrawal of their pension amount from banking system.

    In an office memo, the Finance Division said that the mandatory requirement of biometric verification has been restored for the pensioners, which was suspended due to COVID-19.

    READ MORE: Grant of 10% increase in pension notified

    The finance division on January 28, 2021 has made it mandatory for direct credit system (DCS) pensioners to undergo biometric verification on National Database and Registration Authority (NADRA) system through any branch of a bank every year in the months of March and October. However, the same was held in abeyance through office memo dated May 6, 2021 due to COVID-19.

    Since the normal working has been restored, therefore, it has been decided to operationalize the biometric verification for federal government pensioners with immediate effect who were issued pension from AGPR Islamabad (for military pensioner, and those who were issued pension from AGPR sub-offices and District Account Offices will be communicated separately), according to the finance division.

    READ MORE: Pensioners living abroad require presenting life certificate

    Pensioners to undergo biometric verification twice a year; rules amended
  • ICIJ shares Pandora Papers information with PMIC

    ICIJ shares Pandora Papers information with PMIC

    ISLAMABAD: The International Consortium of Investigative Journalists (ICIJ) has shared information related to the Pandora Papers with the Prime Minister’s Inspection Commission (PMIC), a statement said on Wednesday.

    It said that the investigation into Pandora Papers is now at a fairly advanced stage.

    In the first phase, PMIC collated information regarding the individuals and entities named in the Pandora Papers followed by a process of verification of details through the concerned governmental agencies and regulatory bodies.

    READ MORE: Pandora papers: PM says returning taxpayers’ money

    “During this process, contact was also established with the ICIJ, and the concerned journalists. They shared the information which was available with them,” it added.

    It is relevant to mention that, as opposed to the initial media reports that more than 700 individuals of Pakistan origin were linked with Pandora Papers; the number revealed to PMIC so far is considerably less. PMIC is now focusing on these persons and undertaking necessary assessment as per its Terms of Reference.

    READ MORE: PM task force initiates proceedings in Pandora papers

    Relevant information regarding the individuals, their financial interests and transactions is being thoroughly examined. In order to ensure impartiality and completeness of exercise in all respects, it has been decided not to place information regarding any individual in public domain before concluding the investigation.

    It has further been decided to allow sufficient opportunity to the individuals concerned to clarify their position. All persons, including present and past holders of public office who have been named in the Pandora Papers, are being formally contacted for their version and contention.

    READ MORE: PMIC initiates action against 50 individuals, entities

    The proceedings are being conducted in a manner so as to avoid speculation, media hype and possibility of harassment especially in the case of private persons and businessmen.

    PMIC is satisfied that the task is being completed in an objective manner and a comprehensive report substantiated through data and documents would be completed soon.

    It is reiterated that no adverse inference will be drawn against any individual or entity without first formally placing on record their version or clarification.

    The final report will include a way forward and preferred actions for different categories and sets of persons besides recommendations for system improvement through enhanced transparency and accountability.

    PMIC acknowledges the cooperation and assistance extended by all concerned which helped in streamlining the information gathering, compilation, verification and the evaluation.

  • Pakistan establishes Afghanistan relief fund

    Pakistan establishes Afghanistan relief fund

    ISLAMABAD: Pakistan on Wednesday established a fund namely ‘Afghanistan Relief Fund’ to provide humanitarian assistance to Afghanistan.

    According to a notification issued by the Finance Division, all proceeds on account of ‘Afghanistan Relief Fund’ and payment into the aforesaid fund will be received at all branches of State Bank of Pakistan, all treasuries and branches of National Bank of Pakistan and all other scheduled banks.

    READ MORE: Pakistan donates 50,000MT wheat to Afghanistan

    The finance division said that the fund may receive donations from both domestic, international donors and contributions from aboard which will be received at all the branches of above referred banks where such branches are existing. “In other foreign countries contributions will be received at Pakistan missions and remitted to the State Bank of Pakistan, which would prescribe necessary procedure for their accounting.”

    All proceeds received in the name of the fund will be credited to the public account of the federal government under following head of account:

    Major object: G12: Special deposit fund

    Minor Object: G121: relief fund

    Detailed Object (New): G12163: Afghanistan Relief Fund

    The finance division said that accounts of the fund would be maintained by Accountant General of Pakistan Revenue, Islamabad and Fund will be administered by the ministry of economic affairs in consultation with the finance division.

    READ MORE: FBR rebuts currency smuggling to Afghanistan