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ISLAMABAD: The economic outlook is not very clear as well as doesn’t seem promising as COVID may dampen exports demand besides expectations of capital flight, according to the Pakistan Economic Survey 2019/2020 released on Thursday.
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KARACHI: Pakistan’s foreign exchange reserves have declined by $215 million to $16.705 billion by week ended June 05, 2020, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at $16.92 billion by week ended May 29, 2020.
The foreign exchange reserves held by the SBP fell by $266 million to $10.096 billion by week ended June 05, 2020 as compared with $10.362 billion a week ago.
The central bank attributed the decline to the government external debt repayments of $301 million during the week.
The foreign exchange reserves held by commercial banks however increased by $51 million to $6.609 billion by week ended June 05, 2020 as compared with $6.558 billion a week ago.
ISLAMABAD: The GDP growth for current fiscal year has been estimated negative 0.38 percent, according to Pakistan Economic Survey for 2019/2020 released on Thursday.
The survey stated that although, provisional GDP growth rate for FY2020 is estimated at negative 0.38 percent, however, macroeconomic stabilization measures undertaken by the government over the past year resulted in significant reduction in Saving-Investment Gap which was mainly driven by reduction in trade deficit and increase in workers’ remittances.
It is also mentionable that fiscal deficit remained contained in first three quarters of FY2020.
Historically, Private Consumption had significantly contributed in Pakistan’s economic growth.
The pattern was likely to continue, however, due to COVID-19, private consumption suffered significantly.
In percentage of GDP, it dropped to 78.5 percent in FY2020 compared to 82.9 percent in FY2019.
Private Investment as a percentage of GDP dropped to 9.98 percent from 10.29 percent in FY2019 while Public Investment (including General Government investment) has shown improvement as it remained 3.8 percent compared to 3.7 percent last year.
However, there was 13.2 percent growth in Public Investment (including General Government investment) during FY2020, while it declined by 21.6 percent last year.
The economy of Pakistan like other economies has a diverse structure with three main sectors -agriculture, industry and services.
The agriculture sector, as mentioned earlier, grew by 2.67 percent.
The crops sector has witnessed positive growth of 2.98 percent during FY2020 mainly due to positive growth of 2.90 percent in important crops.
According to Pakistan Bureau of Statistics, fourth quarter has been estimated by keeping in view the lockdown situation faced by the industrial sector due to COVID-19.
Significant impact has been observed in the manufacturing sector, particularly Large-Scale manufacturing and Small-Scale Manufacturing.
The provisional growth in industrial sector has been estimated at -2.64 percent mainly due to a negative growth of 8.82 percent in mining and quarrying sector and decline of 7.78 percent in large-scale manufacturing sector.
Due to lock down situation in the country, the growth estimates of Small-Scale Industry for FY2020 are 1.52 percent.
Similar to the industrial sector, services sector of the economy has also witnessed significant impact of the lock down situation in the country due to COVID-19, particularly in Wholesale and Retail Trade and Transport Sectors.
The services sector has declined provisionally at 0.59 percent mainly due to 3.42 percent decline in Wholesale and Retail Trade sector and 7.13 percent decline in Transport, Storage and Communication sectors.
Finance and insurance sector witnessed a slight increase of 0.79 percent.
The Housing Services, General Government Services and Other private services have contributed positively at 4.02, 3.92 and 5.39 percent respectively.
KARACHI: The liquid foreign exchange reserves of the country fell by $1.68 billion to $16.92 billion by week ended May 29, 2020, State Bank of Pakistan (SBP) said on Thursday.
The total foreign exchange reserves of the country were $18.599 billion a week ago.
The foreign exchange held by the central bank fell by $1.712 billion to $10.362 billion by week ended May 29, 2020 as compared with official reserves of $12.074 billion.
This decline is primarily attributed to the government external debt repayments of $1.669 billion.
The foreign exchange held by commercial banks however increased by $34 million to $6.558 billion by week ended May 29, 2020 as compared with $6.524 billion a week ago.
ISLAMABAD: The profit rate on saving certificates have been reduced up to 100 basis points due to sharp cut in key policy rate by the State Bank of Pakistan (SBP). The new rate of return on national saving certificates are applicable from June 02, 2020.
According to Central Directorate of National Savings (CDNS), the interest rate by one percent on the savings certificates investment due to lower rates of Pakistan Investment Bonds (PIB) applicable from June 02, 2020.
“The CDNS interest rates are linked with the policy of Pakistan Investment Bonds (PIBs), set the SBP,” an official of CDNS told state-run media.
The rate of return on ‘Behbood Savings Certificates’ (BSC) reduced from 10.32 to 9.84 percent and as similarly Pensioner Benefit Accounts (PBA) recorded downwards from 10.32 to 9.84 percent.
The profit rates on ‘Shuhada Family Welfare Account’ also reduced from 10.32 to new rates of 9.84 percent applicable from June 02 of this year.
The profit rates on ‘Defense Savings Certificates’ (DSC) was also reduced from 8.54 to 8.05 percent and interest rates on ‘Regular Income Certificates’ also downwards 8.28 to 7.44 percent according to the current market situation.
The profit rates on Special Savings Certificates (Registered)/Accounts was also reduced on all three categories of certificates from 1-5 Profit 8.00 to 7.10 percent, 6th Profit 8.60 percent 7.40 percent and Average 8.10 to 7.15 percent by June 02, 2020.
The Short Term Savings Certificates profit rates also reduced on different categories on months on month bases by 3- Months from 7.80 to 7.72 , on 6- Months certificates 7.50 to 7.36 percent and on 12-Months slightly increased from 6.95 to 7.30 percent.
The profit rates on Savings Account (SA) has also been reduced from 7.00 to 6.50 percent decided by last meeting held in Ministry of Finance.
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.
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.
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.
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.
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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