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  • Annual foreign direct investment grows by 88 percent

    Annual foreign direct investment grows by 88 percent

    KARACHI: Foreign Direct Investment (FDI) into the country registered 88 percent growth to $2.56 billion during fiscal year 2019/2020, State Bank of Pakistan (SBP) said on Friday.

    The FDI posted $1.198 billion increase during the fiscal year under review as compared with $1.36 billion in the preceding fiscal year i.e. 2018/2019.

    The inflows under the head of FDI grew by 18 percent to $3.285 billion during fiscal year 2019/2020 as compared with $2.78 billion in the preceding fiscal year. However, outflows recorded 49 percent decline to $724 million as against outflow of $1.42 billion in the preceding fiscal year.

    The portfolio investment registered 32 percent contraction in outflows during the period under review. The outflows from the capital market recorded $281.7 million during fiscal year 2019/2020 as compared with the outflow of $415 million in the preceding fiscal year.

    The total foreign private investment posted 140.7 percent growth to $2.279 billion during July-June 2019/2020 as compared with $947.2 million in the preceding fiscal year.

    The foreign public investment in debt securities witnessed outflow of 241.3 million during fiscal year 2019/2020 as compared with $1 billion in the preceding fiscal year.

    The total foreign investment including public and private rose to $2.038 billion during fiscal year 2019/2020 as compared with outflow of $54.8 million in the preceding fiscal year.

  • Foreign exchange reserves up by $163 million to $18.953 billion

    Foreign exchange reserves up by $163 million to $18.953 billion

    KARACHI: The liquid foreign exchange reserves of the country increased by $163 million to $18.953 billion by week ended July 10, 2020, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $18.79 billion by week ended July 03, 2020.

    The official reserves of the SBP increased by $13 million to $12.055 billion by week ended July 10, 2020 as against $12.042 billion a week ago.

    The reserves held by commercial banks witnessed growth of $150 million to $6.898 billion by week ended July 10, 2020 as against $6.748 billion a week ago.

  • Pakistan allows Afghan transit trade through Wagah from July 15

    Pakistan allows Afghan transit trade through Wagah from July 15

    ISLAMABAD: Pakistan has allowed Afghan exports through Wagah border crossing from July 15, 2020, said a statement on Monday.

    At the special request of the Government of Afghanistan and with a view to facilitating Afghanistan’s transit trade, Pakistan has decided to resume Afghan exports through Wagah border crossing from July 15, 2020, after implementing COVID-19 related protocols.

    With this step, Pakistan has fulfilled its commitments under Pakistan-Afghanistan Transit Trade Agreement (APTTA).

    Pakistan has restored bilateral trade and Afghan transit trade at all border crossing terminals to pre-COVID-19 status.

    Pakistan remains fully committed to further strengthening its bilateral relations with Afghanistan in all areas including trade, and to facilitate Afghanistan’s transit trade under APTTA.

  • Prime Minister emphasizes out-of-box solution for economic growth amid COVID

    Prime Minister emphasizes out-of-box solution for economic growth amid COVID

    ISLAMABAD: Prime Minister Imran Khan has emphasized out-of-the-box solutions are required for economic growth in these crucial times.

    “COVID-19 has adversely impacted the world economy and of Pakistan too,” he said while chairing a meeting of the Finance and Economy Think-Tank on Saturday.

    He stated that from day one, the government adopted a strategy to maintain a balance between sustaining economic activity and protecting the masses from infectious disease of Covid-19.

    Imran Khan emphasized that prime focus is on providing relief to the poor segment of society through targeted subsidies.

    He stated that Ehsaas is the flagship program of the government to alleviate poverty and requires expansion along with a strategy to reach the needy people.

    The prime minister highlighted that a substantive package has been announced for the construction and housing sector that aims at increasing much needed employment opportunities and economic stimulus as well as adding to the inventory of affordable housing for the poor.

    The prime minister highly appreciated the proposals presented by the Think-Tank regarding banking and finance, further improving the Ehsaas program and facilitating SMEs.

    He directed that regular feedback of the Think-Tank be provided to him on various ongoing initiatives, policies and programs of the government.

    Advisor on Finance Dr. Abdul Hafeez Sheikh, Advisor on Institutional Reforms Dr. Ishrat Hussain, Governor State Bank of Pakistan Raza Baqir and Former Finance Secretary Dr. Waqar Masood Khan were present.

    Advisor on Commerce Abdul Razaq Dawood, Shaukat Tareen, Sultan Alana, Dr. Ijaz Nabi and Arif Habib participated via Video-Link.

    Advisor on Finance briefed about the objectives and focus areas of this Think-Tank on Finance and Economy.

  • Pakistan makes substantial progress in completing remaining FATF Action Plan: Hafeez Shaikh

    Pakistan makes substantial progress in completing remaining FATF Action Plan: Hafeez Shaikh

    ISLAMABAD: Pakistan has made substantial progress towards completing remaining action plan of Financial Action Task Force (FATF) through increasing the effectiveness of its AML/ CFT Regime, Dr Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue told International Financial Accountability.

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  • Pakistan’s foreign exchange reserves increase by $819 million

    Pakistan’s foreign exchange reserves increase by $819 million

    KARACHI: The liquid foreign exchange of the country increased by $819 million to $18.79 billion by week ended July 03, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $17.971 billion a week ago ended on June 26, 2020.

    The official reserves held by the SBP increased by $811 million to $12.042 billion by week ended July 03, 2020 as compared with $11.231 billion a week ago.

    The SBP attributed the increase in reserves to proceeds of $1,000 million as GOP loan disbursement from China.

    During the week, SBP also made government external debt payments of $ 231.2 million.

    The foreign exchange reserves held by commercial bank witnessed nominal growth of $8 million to $6.748 billion by week ended July 03, 2020 as compared with $6.74 billion a week ago.

  • Finance ministry issues strategy for release of funds for development budget

    Finance ministry issues strategy for release of funds for development budget

    ISLAMABAD: The finance ministry on Wednesday issued strategy for release of funds for development budget during fiscal year 2020/2021.

    The undersigned is directed to refer to the subject mentioned above and to state that keeping in view the Public Finance Management Act (PFM) Act, 2019, the following strategy for release of funds relating to Development Budget for Financial Year 2020-21 shall be followed with immediate effect and until further orders:-

    a) Funds for Development Budget shall be released by Finance Division at the level of 20 percent for the 1st Quarter, 30 percent each for 2nd and 3rd Quarter and 20 percent for 4th Quarter.

    b) Ministry of Planning, Development and Special Initiative s shall devise project-wise/Division-wise strategy for release of funds for Public Sector Development Program (PSDP) within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure in terms of Article 83 of the Constitution.

    c) All payments shall be made through the pre-audit system of the Accountant General Pakistan Revenue (AGPR)/ Military Accountant General (MAG)/ Accounting Offices/ Sub-Offices, or through Assignment Account procedure issued by the Finance Division. No direct payment through the State Bank of Pakistan shall be made, except with the prior approval of the Finance Secretary.

    d) No authority shall incur or commit any expenditure from the “Federal Consolidated Fund” until the same has been sanctioned by the National Assembly and the expenditure has been provided for the financial year through (a) schedule of authorized of expenditure in terms of Article 83 of the Constitution, or (b) supplementary grant or technical supplementary grant as per Article 84 of the Constitution has been approved by the Federal Government, or (c) re-appropriation as per Sections 2(u) and 11 of the Public Finance Management Act, 2019.

    e) There shall be no requirement of ways and means clearance from Budget Wing and endorsement of sanction letters by Expenditure Wing, Finance Division for the fund releases for PSDP approved projects.

    f) All the sanctions for expenditure (in all forms) shall be issued and entered into SAP system by the Principle Accounting Officers (PAOs) before making payment by the Accounting Offices.

    g) AGPR and other Accounting Offices shall not enter the sanction letters issued by the PAO into the SAP system and shall process the payments on verification of budget, fund release and sanction letter.

    h) The provisions of Public Finance Management Act, 2019 shall be strictly adhered to by all the PAOs and the Accounting Offices.

    i) The instructions with regard to all forms of supplementary grants shall be issued by the Budget Wing, Finance Division, separately.

    j) The Development Wing of Finance Division shall coordinate and oversee the matters relating to release of funds for development of budget and other ancillary matters.

  • Government borrowing from commercial banks rises to Rs2,413 billion in 2019/2020

    Government borrowing from commercial banks rises to Rs2,413 billion in 2019/2020

    KARACHI: The federal government has borrowed Rs2,413 billion from commercial banks during fiscal year 2019/2020 as against retirement of Rs771.6 billion in the preceding fiscal year, according to statistics released by State Bank of Pakistan (SBP) on Monday.

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  • Trade deficit narrows by 27pc in 2019/2020

    Trade deficit narrows by 27pc in 2019/2020

    ISLAMABAD: Pakistan’s trade deficit narrowed by 27 percent to $23.18 billion in fiscal year 2019/2020 as against the deficit of $31.8 billion in the preceding fiscal year, Pakistan Bureau of Statistics (PBS) said on Friday.

    The import bill of the country significantly declined by 18.61 percent to $44.57 billion during July – June 2019/2020 as compared with $54.76 billion in the same period of the preceding year.

    The exports also fell by 6.84 percent to $21.38 billion in the fiscal year 2019/2020 as compared with $22.95 billion in the preceding fiscal year.

    The fall in import bill and export receipts may be attributed to COVID-19 which adversely affected the international trade and lower forecast the global economic growth.

  • National Savings raises profit rates

    National Savings raises profit rates

    ISLAMABAD: The Central Directorate of National Savings (CDNS) on Thursday raised profit rates of saving schemes.

    A statement issued by the CDNS stated that all the profit rates of bearer certificates had been increased.

    However, profit rates of registered saving certificates have been reduced.

    As per the decision of the CDNS the profit rates have been increased as: Behbood Saving Certificates, Pensioner Benefit Accounts and Shuhda Family Welfare Account from 9.84 percent to 9.96 percent; Defence Saving Certificates from 8.05 percent to 8.11 percent; Regular Income Certificates from 7.44 percent to 7.608 percent.

    The CDNS reduced the average profit rate of special saving certificates (registered)/accounts to 7.05 percent from 7.15 percent.

    Similarly, short term savings certificates for 3-, 6- and 12-month have been reduced to 6.80 percent, 6.76 percent and 6.66 percent from 7.72 percent, 7.36 percent and 7.30 percent respectively.