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  • Headline inflation growth slows in February 2020

    Headline inflation growth slows in February 2020

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has contracted at 12.4 percent in February 2020 as compared with 14.6 percent in January 2020.

    According Pakistan Bureau of Statistics (PBS), the headline inflation base-year 2015-16 increased by 12.4 percent on year-on-year basis in February2020 as compared to an increase of14.6 percent in the previous month and 6.8 percent in February2019.

    On month-on-month basis, it decreased by 1.0 percent in February 2020 as compared to an increase of 2.0 percent in the previous month and an increase of 0.9 percent in February2019.2.

    The CPI inflation Urban increased by 11.2 percent on year-on-year basis in February2020 as compared to an increase of 13.4 percent in the previous month and 7.2 percent in February 2019.

    On month-on-month basis, it decreased by 1.1 percent in February 2020 as compared to an increase of 1.7 percent in the previous month and an increase of 0.9 percent in February2019.

    CPI inflation Rural increased by 14.2 percent on year-on-year basis in February 2020 as compared to an increase of 16.3 percent in the previous month and 6.0 percent in February 2019.

    On month-on-month basis, it decreased by 1.0 percent in February 2020 as compared to an increase of 2.4 percent in the previous month and an increase of 0.9 percent in February2019.

    SPI inflation on YoY increased by14.5 percent in February2020 as compared to an increase of 18.3 percent a month earlier and an increase of 7.2 percent in February2019.

    On MoM basis, it decreased by 0.8 percent in February2020 as compared to an increase of 0.5 percent a month earlier and an increase of 2.4 percent in February2019.

    WPI inflation on YoY basis increased by 12.6 percent in February2020as compared to an increase of 15.4 percent a month earlier and an increase of 13.9 percent in February2019.

    WPI inflation on MoM basis it decreased by 0.8 percent in February 2020 as compared to an increase of 1.8 percent a month earlier and an increase of 1.6 percent in corresponding month of last year i.e. February 2019.

  • IMF board to decide $450 million disbursement to Pakistan in April

    IMF board to decide $450 million disbursement to Pakistan in April

    KARACHI: The Executive Board of the International Monetary Fund (IMF) will decide disbursement of $450 million in early April 2020, a statement said on Thursday.

    The IMF issued the press release stating:

    “Following discussions between International Monetary Fund (IMF) staff and the Pakistani authorities in Islamabad from February 3-13, which continued from the IMF headquarters in recent days, IMF staff and the Pakistani authorities have reached a staff-level agreement on policies and reforms needed to complete the second review of the authorities reform program supported under the EFF.

    “The agreement is subject to approval by the IMF management and consideration by the Executive Board, which is expected in early April. Completion of the review will enable disbursement of SDR 328 million (around US$450 million).”

    Earlier on February 14, 2020, the IMF issued the following press release:

    “An International Monetary Fund (IMF) mission, led by Ernesto Ramirez Rigo, visited Islamabad during February 3-13, to initiate discussions on the second review of the authorities’ economic reform program supported under the Extended Fund Facility (EFF) arrangement.

    “At the conclusion of the visit, Mr. Ramirez Rigo made the following statement:

    “The IMF staff team had constructive and productive discussions with the Pakistani authorities and commended them on the considerable progress made during the last few months in advancing reforms and continuing with sound economic policies. The mission and the authorities made significant progress in the discussions on policies and reforms. In the coming days progress will continue to pave the way for the IMF Executive Board’s consideration of the review.

    “The macroeconomic outlook remains broadly as expected at the time of the first review. Economic activity has stabilized and remains on the path of gradual recovery. The current account deficit has declined, helped by the real exchange rate that is now broadly in line with fundamentals, while international reserves continue to rebuild at a pace considerably faster than anticipated. Inflation should start to see a declining trend as the pass-through of exchange rate depreciation has been absorbed and supply-side constraints appear to be temporary. Fiscal performance in the first half of the fiscal year remained strong, with the general government registering a primary surplus of 0.7 percent of GDP on the back of strong domestic tax revenue growth. Development and social spending have been accelerated.”

  • Pakistan’s foreign exchange reserves flat at $18.743 billion

    Pakistan’s foreign exchange reserves flat at $18.743 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves were flat at $18.743 billion by week ended February 21, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $18.747 billion by week ended on February 14, 2020.

    The official reserves of the central bank increased by $87 million to $12.592 billion by week ended February 21, 2020 as compared with $12.505 billion a week ago.

    However, reserves held by commercial banks fell by $91 million to $6.151 billion by week ended February 21, 2020 as compared with $6.242 billion a week ago.

  • FBR advised to enhance monitoring, enforcement for achieving annual targets

    FBR advised to enhance monitoring, enforcement for achieving annual targets

    ISLAMABAD: The ministry of finance has advised Federal Board of Revenue (FBR) to enhance monitoring and enforcement in order to achieve annual targets.

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  • FATF maintains Pakistan’s grey list status till June 2020

    FATF maintains Pakistan’s grey list status till June 2020

    KARACHI: Financial Action Task Force (FATF) on Friday maintained Pakistan’s status of grey list till June 2020 and asked the country to complete its full action plan.

    “To date, Pakistan has largely addressed 14 of 27 action items, with varying levels of progress made on the rest of the action plan. The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020,” a statement received from Paris, France after conclusion of FATF plenary meeting (February 19-21, 2020).

    The statement said:

    “Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its strategic counter-terrorist financing-related deficiencies, Pakistan’s political commitment has led to progress in a number of areas in its action plan, including risk-based supervision and pursuing domestic and international cooperation to identify cash couriers. Pakistan should continue to work on implementing its action plan to address its strategic deficiencies, including by:

    (1) demonstrating that remedial actions and sanctions are applied in cases of AML/CFT violations, relating to TF risk management and TFS obligations;

    (2) demonstrating that competent authorities are cooperating and taking action to identify and take enforcement action against illegal money or value transfer services (MVTS);

    (3) demonstrating the implementation of cross-border currency and BNI controls at all ports of entry, including applying effective, proportionate and dissuasive sanctions;

    (4) demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity and that TF investigations and prosecutions target designated persons and entities, and those acting on behalf or at the direction of the designated persons or entities;

    (5) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions

    (6) demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) against all 1267 and 1373 designated terrorists and those acting for or on their behalf, including preventing the raising and moving of funds, identifying and freezing assets (movable and immovable), and prohibiting access to funds and financial services;

    (7) demonstrating enforcement against TFS violations including administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases;

    (8) demonstrating that facilities and services owned or controlled by designated person are deprived of their resources and the usage of the resources.

    “All deadlines in the action plan have expired. While noting recent and notable improvements, the FATF again expresses concerns given Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the TF risks emanating from the jurisdiction.

    The statement said that in case the country failed to comply the FATF will take action, which could include the FATF calling on its members and urging all jurisdiction to advise their FIs to give special attention to business relations and transactions with Pakistan.

  • Foreign exchange reserves up by $12 million

    Foreign exchange reserves up by $12 million

    KARACHI: The liquid foreign exchange reserves of the country increased by $12 million to $18.747 billion by week ended February 14, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $18.735 billion by week ended February 7, 2020.

    The official foreign exchange reserves of the SBP increased by $74 million to $12.505 billion by week ended February 14, 2020 as against $12.431 billion a week ago.

    The foreign exchange reserves held by commercial banks however fell by $62 million to $6.242 billion by week ended February 14, 2020 as against $6.304 billion a week ago.

  • ECC allows import of controlled chemicals through commercial importers

    ECC allows import of controlled chemicals through commercial importers

    The Economic Coordination Committee (ECC) of the Cabinet, under the chairmanship of Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh, has permitted the import of controlled chemicals through commercial importers. This decision, made on Wednesday, is aimed at easing the availability of essential chemicals for various industrial applications.

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  • Foreign direct investment increases by 66% in July – January

    Foreign direct investment increases by 66% in July – January

    KARACHI: The inflows of foreign direct investment (FDI) into Pakistan has increased by 66 percent during first seven months (July – January) of 2019/2020, State Bank of Pakistan (SBP) said on Tuesday.

    The inflows of FDI during the period under review increased to $1.56 billion as compared with $944 million in the corresponding period of the last fiscal year.

    The total foreign private investment during July – January 2019/2020 registered 196 percent growth. The foreign private investment increased to $1.58 billion as compared with $535 million in the same period of the last fiscal year.

    The flow of portfolio investment into the capital market increased by 105 percent during the period under review. The capital market witnessed inflows of $21.5 million during July – January 2019/2020 as compared with outflow of $409 million in the corresponding period of the last fiscal year.

    The total inflows of foreign investment has been recorded at $3.42 billion during the period under review. The main source of this investment can be attributed to foreign investment in debt securities.

    The inflow of debt securities during first seven months of current fiscal year was at $1.84 billion.

  • Textile exports increase by 3.68% in seven months

    Textile exports increase by 3.68% in seven months

    KARACHI: The exports of textile products have recorded increase of 3.68 percent during first seven months (July – January) 2019/2020 on the back of improvement in readymade garments and knitwear.

    The exports of textile group were at $8.1 billion during first seven months of current fiscal year as compared with 7.81 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The textile sector was facing several issues pertaining to fuel prices and payment of tax refunds.

    On the other hand the government allowed many incentives to export sector for encouraging the exporters. The government allowed zero rated of sales tax which is only available to the exporters.

    The exports of readymade garments recorded 11 percent increase during the period under review. The exports readymade garments increased to $1.68 billion during first seven months of the current fiscal year as compared with $1.516 billion in the same period of the last fiscal year.

    The exports of knitwear recorded 6.27 percent increase to $1.83 billion during July – January 2019/2020 as compared with $1.72 billion in the corresponding period of the last fiscal year.

    The exports of bed wear recorded 2.77 percent growth to $1.39 billion during first seven months of the current fiscal year as compared with $1.35 billion in the same period of the last fiscal year.

    However, the exports of cotton cloths fell by 3.62 percent to $1.19 billion during the period under review as compared with $1.23 billion in the corresponding period of the last fiscal year.

    The exports of towels registered nominal decline to $444 million during first seven months of the current fiscal year as compared with $446.45 million in the corresponding period of the last fiscal year.

    The export of cotton yarn was also registered flat growth to $640 million during first seven months of the current fiscal year as compared with $635 million in the same period of the last fiscal year.