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  • Reduced rates of electricity, gas: ECC approves procedure for registration

    Reduced rates of electricity, gas: ECC approves procedure for registration

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the procedure of registration for availing reduced rate of electricity, RLNG and gas by manufacturers and industries.

    Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of ECC at the Cabinet Division.

    The ECC approved in principle, the procedure for registration under the concessionary regime of electricity, RLNG and gas under the export oriented sectors (erstwhile zero-rated sectors) with instructions to ensure better targeting of the recipients of this subsidy.

    The ECC decided that the previous list of manufacturers or exporters declared zero-rated by FBR (under condition (xii) of the SRO 1125) may be adopted in export oriented sectors. FBR may register new manufacturers or exporters of five export oriented sectors (erstwhile five zero rated sectors), in accordance with past precedents of STGO-117, under Commerce Division’s O.M No.1 (18)/2019 in manner specified by the FBR.

    The FBR, Petroleum Division and Power Division may formulate periodic rechecking/monitoring/withdrawal strategy for previous and newly registered units along with procedure to penalize in case of misrepresentation and misuse.

    The ECC discussed in detail on the Minimum Support Price (MSP) of Wheat in today’s session. The Ministry of National Food Security and Research briefed the ECC on different estimates gathered from Punjab, KP, Balcohistan and the Federal Capital.

    During the discussion, it also came to the fore that there was a need to increase the MSP to support the farmer and to grow enough quantities in the next sowing season.

    The forum also discussed the need to rationalize the prices of inputs for making them more affordable to the farmers, to support the rural economy through various measures and to increase the supply of wheat in the market so that the flour prices are brought down. It was also discussed to have a better system for gathering data regarding the agriculture sector.

    ECC decided to form a committee with Syed Fakhar Imam, Dr. Hafeez Shaikh, Dr. Ishrat Hussain.Dr. Waqar Masood, Nadeem Baber, Abdul Razzaq Dawood, Asad Umar and Khusroo Bakhtiar as members, to thoroughly evaluate the proposal for the increase in the Minimum Support Price of wheat for the 20-21 crops.

    The committee shall also prepare a proposal on subsidy on fertilizers mainly DAP which may be offered as a part of the package for the farmers so that their input cost is reasonable/ reduced.

    It was also decided that the provinces should increase the wheat releases to stabilize/reduce the price of flour in the market. It was decided that the local governments will also be directed to specially monitor the prices of wheat and flour in the markets so that its prices may not be allowed to escalate for the common man. The committee shall present its proposal in the next meeting of ECC.

  • FDI falls by 24 percent in July – September

    FDI falls by 24 percent in July – September

    KARACHI: The flow of foreign direct investment (FDI) into the country has declined by 24 percent to $416 million during first quarter (July – September) of current fiscal year, State Bank of Pakistan (SBP) said on Friday.

    The FDI was $545 million in the same quarter of the last fiscal year.

    The inflow under this head fell by 17.5 percent to $621 million during first quarter of the current fiscal year as compared with $753 million in the same quarter of the last fiscal year.

    Similarly, the outflows of FDI recorded $205 million during July – September of 2020/2021 million as compared with $207 million in the same period of the last fiscal year.

    The inflows in the stock market witnessed sharp decline during the period. The portfolio investment witnessed 578 percent decline when compared with outflow of $108.5 million during the first quarter of the current fiscal year as compared with inflows of $22.7 million in the same period of the last fiscal year.

    The net inflows of foreign private investment fell by 46 percent to $307 million during July – September 2020/2021 as compared with $586 million in the same period of the last fiscal year.

  • Foreign exchange reserves decline to $19.015 billion

    Foreign exchange reserves decline to $19.015 billion

    KARACHI: The liquid foreign exchange reserves of the country have declined by $336 million to $19.015 billion by week ended October 09, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.351 billion by week ended October 02, 2020.

    The official reserves of SBP fell by $357 million to $11.798 billion by week ended October 09, 2020 as against $7.196 billion a week ago.

    The SBP attributed the decline in foreign exchange reserves to external debt repayment of $507 million during the week.

  • Remittances grow 31.2 percent in September: SBP

    Remittances grow 31.2 percent in September: SBP

    KARACHI: The inflow of workers’ remittances has registered sharp increase of 31.2 percent after making fourth consecutive month of over $2 billion received in September 2020.

    The State Bank of Pakistan (SBP) on Monday said that the remittances increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August 2020.

    Workers’ remittances remained above $2 billion for the fourth consecutive month in September, the central bank said.

    On a cumulative basis, remittances rose to a record $ 7.1 billion in first quarter of current fiscal year, 31.1 higher than the same period last year.

    The level of remittances in September was slightly higher than SBP’s projections of $2 billion.

    Efforts under the Pakistan Remittances Initiative (PRI) and the gradual re-opening of major host destinations such as Middle East, Europe and United States contributed to the sustained increase in workers’ remittances.

    Prime Minister Imran Khan earlier in his tweet said: “Despite COVID more good news for our economy. Alhamdulillah, remittances from our hardworking overseas Pakistanis rose to $2.3 billion in September 2020, 31 percent higher than last September and 9 percent higher than August 2020. This marks the fourth consecutive month that remittances have remained above $2 billion.”

  • SPI inflation rises by 11.28 percent YoY basis

    SPI inflation rises by 11.28 percent YoY basis

    ISLAMABAD: The inflation based on sensitive price indicator (SPI) has increased by 11.28 percent Year on Year by week ended October 08, 2020, Pakistan Bureau of Statistics (PBS) said on Friday.

    The PBS computes SPI on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country.

    The SPI comprises of 51 essential items and the prices are being collected from 50 markets in 17 cities of the country.

    The SPI for the week under review over corresponding week October 10, 2019 has shown 11.28 percent increase

    The YoY increase in prices of essential items is as: tomatoes 117 percent; chilies powder 86.31 percent, potatoes 64.75 percent, pulse moong 41.13 percent, eggs 40.82 percent, pulse mash 34.66 percent, sugar 32.08 percent, pulse masoor 25.72 percent, bread plain 19.41 percent, gur (raw sugar) 19.34 percent, wheat flour bag 18.32 percent, vegetable ghee 1kg pouch 17.43 percent, mustart oil 16.32 percent.

    The YoY price increase of non-food items is: sufi washing soap 250 grams 17.49 percent match box 17.07 percent.

    The items which registered decline in price YoY basis are: garlic 9.91 percent, onions 1.50 percent, hi-speed diesel 18.03 percent, LPG 11.67kg cylinder 13.53 percent, petrol super 8.11 percent.

    The SPI has been increased by 1.24 percent by week ended October 08, 2020 over previous week October 01, 2020.

    The prices of following items increased on WoW basis: tomatoes 16.39 percent, onions 12.78 percent, eggs 10.78 percent, chicken 5.34 percent, wheat flour bag 2.78 percent, potatoes 2.64 percent, pulse masoor 1.21 percent, sugar 1.03 percent.

    Prices of essential items that registered decline on WoW basis are: Bananas 2.17 percent, pulse moong 0.4 percent, pulse mash 0.13 percent, gur (raw sugar) 0.04 percent.

  • Trade deficit increases by 2 percent in first quarter

    Trade deficit increases by 2 percent in first quarter

    Pakistan’s trade deficit has expanded by 2 percent in the first quarter (July – September) of the fiscal year 2020/2021, primarily driven by a notable increase in the import bill.

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  • Headline inflation increases by 9 percent in September

    Headline inflation increases by 9 percent in September

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 9.0 percent on year-on-year basis in September 2020 as compared to an increase of 8.2 percent in the previous month and 11.4 percent in September 2019, Pakistan Bureau of Statistics (PBS) said on Friday.

    On month-on-month basis, it increased by 1.5 percent in September 2020 as compared to an increase of 0.6 percent in the previous month and an increase of 0.8 percent in September 2019.

    CPI inflation Urban, increased by 7.7 percent on year-on-year basis in September 2020 as compared to an increase of 7.1 percent in the previous month and 11.6 percent in September 2019. On month-on-month basis, it increased by 1.3 percent in September 2020 as compared to an increase of 0.8 percent in the previous month and an increase of 0.7 percent in September 2019.

    CPI inflation Rural, increased by 11.1  percent on year-on-year basis in September 2020 as compared to an increase of 9.9 percent in the previous month and 11.1 percent in September 2019. On month-on-month basis, it increased by 2.0  percent in September 2020 as compared to an increase of 0.4 percent in the previous month and an increase of 0.8 percent in September 2019.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 12.0 percent in September 2020 as compared to an increase of 11.7 percent a month earlier and an increase of 14.7 percent in September 2019. On MoM basis, it increased by 2.1 percent in September 2020 as compared to an increase of 0.9 percent a month earlier and an increase of 1.9 percent in September 2019.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 4.3 percent in September 2020 as compared to an increase of 3.3 percent a month earlier and an increase of 15.9 percent in September 2019. WPI inflation on MoM basis increased by 1.0 percent in September 2020 as compared to a decrease of 1.3 percent a month earlier and an increase of 0.1 percent in corresponding month of last year i.e. September 2019.

  • Foreign exchange reserves dip by $369 million

    Foreign exchange reserves dip by $369 million

    KARACHI: The liquid foreign exchange reserves of the country fell by $369 million to $19.535 billion by week ended September 25, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.904 billion by week ended September 18, 2020.

    The official reserves of the SBP have come down by $342 million to $12.36 billion by week ended September 25, 2020 as compared with $12.702 billion a week ago.

    The central bank attributed the decline to the government external debt payments amounting to $311 million, and other official payments.

    The foreign exchange reserves held by commercial banks fell by $27 million to $7.175 billion by week ended September 25, 2020 as compared with $7.202 billion a week ago.

  • ECC approves retrenchment plan of Pakistan Steel Mills

    ECC approves retrenchment plan of Pakistan Steel Mills

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the retrenchment plan of Pakistan Steel Mills (PSM). Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the ECC meeting at the Cabinet Division.

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  • ADB approves $300 million to strengthen Pakistan’s capital market

    ADB approves $300 million to strengthen Pakistan’s capital market

    The Asian Development Bank (ADB) has granted approval for a $300 million policy-based loan aimed at fortifying Pakistan’s finance sector.

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