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  • PM directs providing all possible incentives in budget 2020/2021

    PM directs providing all possible incentives in budget 2020/2021

    ISLAMABAD: Prime Minister Imran Khan on Monday directed the authorities to provide all possible incentives in budget 2020/2021 to industry for job creations and moving the wheels of the economy.

    The prime minister chaired a meeting to discuss the objectives and considerations for the forthcoming budget 2020/2021.

    The meeting was attended by Foreign Minister Shah Mehmood Qureshi, Minister for Industries and Production Muhammad Hammad Azhar, Planning Minister Asad Umar, Finance Adviser Dr. Abdul Hafeez Sheikh, Adviser Commerce Abdur Razzaq Dawood, Adviser Institutional Reform Dr. Ishrat Hussain and senior officials.

    Discussing priorities for the forthcoming budget, the prime minister said that every effort should be made to provide all possible incentives to the industry, create jobs for the youth and moving the wheels of economy.

    The prime minister stated that the corona pandemic has severely affected upward trajectory of economy towards stabilization and strengthening.

    He said that the government, despite its financial constraints, provided unprecedented stimulus economic package to support businesses and industry and to minimize the impact of corona.

    He said that the most affected sectors be identified so as to provide those with maximum possible support in the forthcoming budget.

    The prime minister directed that the process of cutting unnecessary government expenditure should be expedited at all levels including the federal government as well as provincial governments.

    Prime Minister Imran Khan stressed upon the need for reviewing the existing system of provision of subsidies to make them target-oriented and ensuring their optimum utilization.

    He said that the present situation calls for expediting reform process in critical sectors so as to reduce burden on national exchequer and provide relief to the masses.

    The prime minister also directed adviser finance to apprise the people of Pakistan about the current economic situation and the strategy being followed by the government to cope with the challenges.

    Finance Adviser Dr. Abdul Hafeez Sheikh apprised the meeting about the overall state of economy and the philosophy, objectives and considerations for the next budget 2020-2021.

    Dr. Hafeez Sheikh also dilated upon various constraints of economy, especially in wake of corona pandemic, that has obliged the government to further focus on providing incentives to the industry for its revival and growth, cutting unnecessary government expenditure, rationalize subsidies and expedite reform process in critical sectors.

    Various proposals were discussed in detail to stimulate corona-affected economy, especially ensuring greater participation of the private sector in the development process and promoting public-private partnership to complement public sector development program.

  • Headline inflation increases by 8.2 percent in May

    Headline inflation increases by 8.2 percent in May

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on year-on-year basis in May 2020 as compared to an increase of 8.5 percent in the previous month and 8.4 percent in May 2019, said Pakistan Bureau of Statistics (PBS) on Monday.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.8 percent in the previous month and an increase of 0.6 percent in May 2019.

    CPI inflation Urban, increased by 7.3 percent on year-on-year basis in May 2020 as compared to an increase of 7.7 percent in the previous month and 8.5 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.7 percent in the previous month and an increase of 0.7 percent in May 2019.

    CPI inflation Rural, increased by 9.7 percent on year-on-year basis in May 2020 as compared to an increase of 9.8 percent in the previous month and 8.3 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 1.1 percent in the previous month and an increase of 0.5 percent in May 2019.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 11.0 percent in May 2020 as compared to an increase of 9.3 percent a month earlier and an increase of 9.9 percent in May 2019.

    On MoM basis, it increased by 2.2 percent in May 2020 as compared to a decrease of 1.8 percent a month earlier and an increase of 0.6 percent in May 2019.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 1.5 percent in May 2020 as compared to an increase of 4.9 percent a month earlier and an increase of 16.5 percent in May 2019.

    WPI inflation on MoM basis decreased by 2.1 percent in May 2020 as compared to a decrease of 2.0 percent a month earlier and an increase of 1.2 percent in corresponding month of last year i.e. May 2019.

  • Foreign exchange reserves slip by $20 million

    Foreign exchange reserves slip by $20 million

    KARACHI: The liquid foreign exchange reserves of the country have slipped by $20 million to $18.598 billion by week ended May 21, 2020.

    The total foreign exchange reserves of the country were at $18.618 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the central bank fell by $55 million to $12.074 billion by week ended May 21, 2020 as compared with $12.129 billion a week ago.

    The SBP attributed the decline to external debt repayment.

    The foreign exchange reserves held by commercial banks however increased by $35 million to $6.524 billion by week ended May 21, 2020 as against $6.489 billion a week ago.

  • World Bank approves $500 million to help Pakistan’s COVID-19 emergency response

    World Bank approves $500 million to help Pakistan’s COVID-19 emergency response

    WASHINGTON: The World Bank’s Board of Executive Directors approved today a $500 million program to help Pakistan improve access to quality healthcare and education, support economic opportunities for women, and strengthen social safety nets as the country braces to limit the impact of the COVID-19 pandemic.

    The Securing Human Investments to Foster Transformation (SHIFT) program will support policy reforms to help Pakistan’s COVID-19 emergency response and protect human capital investments, a statement said.

    It will support greater coordination between provinces and federal authorities to immunize millions of children and reduce their risks of contracting polio and other diseases.

    SHIFT also improves targeted safety net programs that will benefit 12 million people impacted by the COVID-19 crisis, both at the federal and provincial levels.

    “The global COVID-19 pandemic is impacting day-to-day life in Pakistan – not solely from economic disruptions but also additional stress on public services that jeopardize human capital accumulation,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

    “This program underscores the criticality of universal healthcare and social protection services that are durable to exogenous shocks such as Pakistan is facing now.”

    SHIFT supports three policy reforms aimed at building Pakistan’s workforce and improving social safety-net programs, which are:

    (i) increase the quality of essential services, especially primary health care and equitable access to basic education, and civil registration and vital statistics,

    (ii) recognize women’s economic contributions and support participation in the labor force through appropriate working conditions, and

    (iii) improve efficiencies in safety nets for COVID-19 response, and strengthen the effectiveness national and federal safety net programs in the short to medium term.

    “Pakistan’s ability to mitigate socio-economic impacts of COVID-19 depends on how quickly and efficiently social safety net programs can reach those most in need,” said Cristina Panasco Santos, Task Team Leader for the program.

    “This program supports alignment efforts between Ehsaas, safety nets provincial programs to ensure that the most vulnerable and affected populations are identified and receive assistance.”

    The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response.

  • Foreign exchange reserves decrease by $126 million

    Foreign exchange reserves decrease by $126 million

    KARACHI, May 18, 2020 – The foreign exchange reserves of Pakistan have experienced a decline of $126 million, reaching $18.618 billion by the week ending May 15, 2020, according to a report released by the State Bank of Pakistan (SBP) on Thursday.

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  • Foreign direct investment surges 127 percent in ten months

    Foreign direct investment surges 127 percent in ten months

    KARACHI: The inflow of Foreign Direct Investment (FDI) posted significant increase of 127 percent during first ten months of current fiscal year, State Bank of Pakistan (SBP) said on Monday.

    The FDI was recorded $2.28 billion during July – April 2019/2020 as compared with $1 billion in the corresponding period of the last fiscal year.

    The inflow under FDI was at $2.87 billion as compare during first ten months of current fiscal year as compared with $2.31 billion in the corresponding period of the last fiscal year.

    Similarly, the outflows under the FDI was recorded 55 percent decrease to $590 million during the period under review as compared with $1.31 billion in the same period of the last fiscal year.

    The portfolio investment posted 55 percent growth. The portfolio investment recorded outflow of $182 million during July – April 2019/2020 as compared with outflow of $408 million.

    Total foreign private investment including FDI and portfolio investment urged 251 percent to $2.1 billion during first ten months of current fiscal year as compared with $598 million in the same period of the last fiscal year.

  • Coronavirus may deeply distort economic fabric of Pakistan: Hafeez Shaikh

    Coronavirus may deeply distort economic fabric of Pakistan: Hafeez Shaikh

    ISLAMABAD: Coronavirus led impacts are expected to deeply distort economic fabric of Pakistan, said Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance and Revenue.

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  • Foreign exchange reserves ease to $18.74 billion

    Foreign exchange reserves ease to $18.74 billion

    KARACHI: The foreign exchange reserves of the country eased by $10 million to $18.745 billion by week ended May 02, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $18.755 billion a week ago i.e. April 30, 2020.

    The official reserves of the central bank fell by $58 million to $12.271 billion by week ended May 08, 2020 as compared with $12.329 billion a week ago.

    The SBP said that the official reserves of the central bank fell due to external debt repayment.

    The reserves held by commercial bank increased by $48 million to $6.474 billion by week ended May 08, 2020 as compared with $6.426 billion a week ago.

  • Textile exports post sharp 64 percent decline in April

    Textile exports post sharp 64 percent decline in April

    ISLAMABAD: The textile exports have witnessed massive 64 percent decline in April 2020 due to lower demand in foreign markets and cancellation of orders due to coronavirus outbreak.

    According to data released by Pakistan Bureau of Statistics (PBS) on Wednesday, the textile exports recorded $403 million dollars in April 2020 as compared with $1.14 billion in the same month of the last year.

    The exports in April 2020 were also registered decline of 61 percent when compared with $1.04 billion in March 2020.

    The textile exports however registered 2.79 percent decline to $10.81 billion in first ten months (July – April) 2019/2020 as compared with $11.12 billion in the corresponding months of the last fiscal year.

    State Bank of Pakistan (SBP) in its second quarterly report on Pakistan Economy, stated that the outbreak of the virus in Europe and North America and the ensuing lockdowns may have an adverse impact on Pakistan’s exports.

    Further, domestic exporters have already warned of cancellation of orders as retail sales in destination markets weaken and port and shipping activities are restricted, the SBP noted.