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  • Rules notified for issuance of Naya Pakistan Certificates for overseas, resident Pakistanis

    Rules notified for issuance of Naya Pakistan Certificates for overseas, resident Pakistanis

    ISLAMABAD: The ministry of finance has notified rules for issuance of Naya Pakistan Certificates (NPC) at for overseas Pakistanis at an attractive rate of return against dollar denomination bills.

    According to the rules notified on Tuesday, every non-resident Pakistani having national identity card for overseas Pakistanis, foreigners having Pakistan origin card, members of overseas Pakistanis foundation, an employee or official of the federal government or a provincial government posted abroad who are eligible to open FCVA or NRVA as per the relevant regulations shall be eligible either individually or jointly to purchase the certificates.

    The certificates are also available for resident Pakistanis having assets abroad, duly declared in latest tax return filed with the Federal Board of Revenue, may also invest in the certificate through their FCVA in Pakistan subject to such controls, conditions and operational procedure as may be notified by the State Bank of Pakistan under these rules.

    The details obtained from SBP website revealed that the investors shall only pay 10 percent withholding tax, which will be final tax liability. Further, investors will also not be required to file income tax return for their investment.

    Naya Pakistan Certificate which will be offered to both residents and overseas Pakistanis at annualized return up to 11 percent in rupee and up to 7 percent in dollar denomination bills.

    The SBP said that Naya Pakistan Certificates are sovereign instruments being issued by the government for overseas Pakistanis as well as resident Pakistanis who have declared assets abroad.

    The bills will be available at 3-, 6- and 12-month and 3- and 5-year tenors. The government will allow early enacashment.

    According to the SBP, the certificates are available at very attractive and risk-free returns. In dollar denomination bills the return shall be at 5.5 percent, 6 percent and 6.5 percent for 3-, 6- and 12-month tenors. While for 3- and 5-year bills will attract 6.75 percent and 7 percent.

    The rupee denomination bills shall be available at 9.5 percent, 10 percent and 10.5 percent for 3-, 6- and 12 months tenor. While, the certificates of 3- and 5-year tenors certificate shall attract 10.75 percent and 11 percent, respectively.

    Pakistani tax authorities will not ask the source of investment to be made in these certificates. However, 10 percent withholding tax shall be applicable and it will be final tax liability. Further, investors will not be asked to file income tax return.

    The SBP said that the certificates are fully repatriable and no approvals will be required for remitting funds abroad.

  • Trade deficit narrows by 8.32 percent in July – August

    Trade deficit narrows by 8.32 percent in July – August

    ISLAMABAD: The trade deficit of the country has narrowed by 8.32 percent in the first two months of the current fiscal year owing to decline in import bill during the period under review.

    According to the data released by Pakistan Bureau of Statistics (PBS) on Friday, the trade deficit narrowed to $3.38 billion during July – August of 2020 as compared with $3.69 billion in the same period of the last year.

    The import bill of the country has declined by 6.28 percent to $6.96 billion during the first two months of the current fiscal year as compared with $7.43 billion in the same months of the last fiscal year.

    However, exports have also declined by 4.27 percent to $3.58 billion during the period under review as compared with $3.74 billion in July – August of 2019.

    The torrential rains and urban flooding during the last few days of August 2020 has adversely affected the supply chain, which affected the exports of the country.

    Due to this reason the exports fell by 21 percent to $1.58 billion in August 2020 when compared with $2 billion in previous month.

    In the month under review the imports have also fell by 11 percent to $3.28 billion as against $3.68 billion in July 2020.

    Meanwhile, the exports fell by 15 percent to $1.58 billion in August 2020 when compared with $1.85 billion in August 2019. On the other hand the imports fell by 12 percent to $3.28 billion as compared with $3.72 billion in August 2019.

  • Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    ISLAMABAD: The exports have registered 19.5 percent decline in August 2020 owing to torrential rains and significant urban flooding in Karachi.

    The exports for the month of August 2020, have recorded a downfall of 19.5 percent, in dollar value terms, as compared to the same period last year.

    This was discussed in an internal review meeting at Ministry of Commerce on Thursday, chaired by the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood.

    During the same month, the imports have also dropped by 20 percent, in dollar value terms, as compared to August 2019.

    However, the overall trade balance has improved by 20.6 percent in August 2020, as compared to same month last year.

    Despite the decline in August, some of the products, like tractors, iron and steel, chemicals and cement have posted a growth of 186 percent, 100 percent, 90 percent and 30 percent respectively, in dollar value terms, as compared to August 2019.

    It was told in the meeting that due to heavy rains in the country, there were some delays in obtaining and analyzing the data.

    It was further discussed in the meeting that the rains and consequential urban flooding, particularly in Karachi, caused significant problems in the existing infrastructure, disrupting the supply chains and affecting the exports for the month of August.

    Power outages, slowdown in business activities, delays in transportation and hampering of port operations are some of the issues faced by the exporters due to unprecedented monsoon rains in the country.

    Talking in the meeting, the Advisor hoped that the exports would begin to recover in September as normalcy should return to Karachi.

    The advisor noted that although exports have temporarily fallen, the trade balance continues to improve.

    “Exporters are encouraged that despite the calamity of rain and flooding, we must pursue ‘Make in Pakistan’ and export led growth,” the advisor said.

    “I have every confidence in our exporters that they will make up for the loss in the subsequent months”, he added.

    Dawood directed that the Ministry of Commerce must resolve the issues of the exporters on war-footings in these unprecedented times.

  • Foreign exchange reserves increase to $19.84 billion

    Foreign exchange reserves increase to $19.84 billion

    KARACHI: The liquid foreign exchange of the country has increased by $121 million to $19.843 billion by week ended August 28, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $19.722 billion by week ended August 21.2020.

    The official foreign exchange reserves of the SBP increased by $72 million to $12.713 billion by week ended August 28, 2020 as compared with $12.641 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks also increased by $49 million to $7.13 billion by week ended August 28, 2020 as compared with $7.081 billion a week ago.

  • Headline inflation increases by 8.2pc in August

    Headline inflation increases by 8.2pc in August

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on Year on Year (YoY) basis in August 2020 as compared to an increase in 9.3 percent in the previous month, Pakistan Bureau of Statistics (PBS) said on Tuesday.

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  • Pakistan records current account surplus of 1.9pc to GDP in July

    Pakistan records current account surplus of 1.9pc to GDP in July

    KARACHI: The balance of payment of the country registered current account surplus i.e. 1.9 percent of the GDP during the first month of the current fiscal year, according to statistics released by State Bank of Pakistan (SBP) on Monday.

    The BOP witnessed a current account deficit of 2.8 percent of the GDP in July 2019.

    The statistics revealed that the current account surplus stood at $424 million in July 2020 as compared with current account deficit of $613 million in the same month of the last year.

    The current account surplus may be attributed to record inflows of workers’ remittances in July 2020. In the month under review the workers’ remittances rose to $2.77 billion. This is the highest ever level of remittances in a single month in Pakistan, according to the SBP.

    The exports also exhibited 6.1 percent growth to $2 billion in July 2020 as compared with $1.88 billion in the same month of the last year. On the other hand the import bill of the country declined by 0.7 percent to $3.68 billion in July 2020 as compared with $3.71 in the same month of the last year.

    The trade deficit narrowed by 7.7 percent to $1.68 billion in July 2020 as compared with the deficit of $1.83 billion in the same month of the last year.

  • Inflation increases more for persons with lower buying power

    Inflation increases more for persons with lower buying power

    ISLAMABAD: Persons with lower buying power have witnessed sharp increase in inflation for week ended August 20, 2020 as compared with the same week a year ago.

    According to data of Sensitive Price Indicator (SPI) issued by Pakistan Bureau of Statistics (PBS), the inflation increased more for persons having less buying powers and the inflation is lower for those persons have sufficient money to buy essential items.

    The PBS categorized five expenditure groups to assess the price movement of essential items on weekly basis.

    The data shows the trend of inflation amongst the expenditure groups as:

    For expenditure group up to Rs17,732: inflation increased by 11.49 percent by the week ended August 20, 2020 when compared with week ended August 22, 2019.

    For expenditure group between Rs17,733 and Rs22,888: inflation increased by 11.22 percent by the week ended August 20, 2020 when compared with week ended August 22, 2019.

    For expenditure group between Rs22,889 and Rs29,517: inflation increased by 10.05 percent by the week ended August 20, 2020 when compared with week ended August 22, 2019.

    For expenditure group between Rs29,518 and Rs44,175: inflation increased by 9.20 percent by the week ended August 20, 2020 when compared with week ended August 22, 2019.

    For expenditure group above Rs44,175: inflation increased by 6.98 percent by the week ended August 20, 2020 when compared with week ended August 22, 2019.

  • Foreign exchange reserves increase to $19.655 billion

    Foreign exchange reserves increase to $19.655 billion

    KARACHI: The liquid foreign exchange reserves of the country increased by $137 million to $19.655 billion by week ended August 13, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.518 billion by week ended August 07, 2020.

    The foreign exchange reserves held by the central bank also increased by $139 million to $12.608 billion by week ended August 13, 2020 as compared with $12.469 billion a week ago.

    The SBP attributed the increase in reserves to proceeds of $249.4 million from Asian Infrastructure Investment Bank (AIIB). Meanwhile, during the week, SBP also made government external debt repayments of $151.0 million.

    The foreign exchange reserves held by commercial banks slightly down by $2 million to $7.047 billion by week ended August 13, 2020 as compared with $7.049 billion a week ago.

  • Mark-up rate for general provident fund announced

    Mark-up rate for general provident fund announced

    ISLAMABAD: The ministry of finance on Tuesday announced 12 percent mark-up rate on State Provident Fund i.e. General Provident Fund (GP Fund) for fiscal year 2019/2020.

    The mark-up rate has been reduced to 12 percent for fiscal year 2019/2020 as against 14.35 percent for the fiscal year 2018/2019.

    The mark-up rate for GP Fund for fiscal year 2017/2018 was 11.70 percent and for fiscal year 2016/2017 the rate was 11.3 percent.

  • Foreign exchange reserves eases to $19.518 billion

    Foreign exchange reserves eases to $19.518 billion

    KARACHI: The liquid foreign exchange reserves of the country have declined by $45 million to $19.518 billion by week ended August 07, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.563 billion by week ended July 30, 2020.

    The official reserves of the SBP slipped by $73 million to $12.469 billion by week ended August 07, 2020 as compared with $12.542 billion a week ago.

    The central bank attributed the decline in foreign exchange reserves to scheduled payment of external debt.

    However, the foreign exchange reserves held by commercial banks increased by $28 million to $7.049 billion by week ended August 07, 2020 as compared with $7.021 billion a week ago.