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  • Foreign investment increases to $1.1 billion owing to debt securities attraction

    Foreign investment increases to $1.1 billion owing to debt securities attraction

    KARACHI: Pakistan’s total inflow of foreign investment has increased to $1.1 billion during first four months (July – October) 2019/2020 as compared with outflow of $77.5 million in the corresponding months of the last fiscal year, State Bank of Pakistan (SBP) said on Monday.

    The inflows can be attributed to attractive avenue in the debt securities for foreign participants.

    The total portfolio investment has been recorded at $436.7 million during first four months of the current fiscal year as compared to a negligible amount in the same period of the last fiscal year.

    The total inflow of foreign private investment was at $665.7 million during first four months of the current fiscal year as compared with $77.6 million outflow in the corresponding months of the last fiscal year.

    The foreign direct investment also grew by 238.7 percent to $650 million during period under review as compared with $192 million in the same period of the last fiscal year.

    The inflow of portfolio investment in capital market was recorded at $15.6 million as compared with outflow of $269.5 million.

  • Pakistan’s foreign exchange reserves fall to $15.5 billion

    Pakistan’s foreign exchange reserves fall to $15.5 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves fell by $16 million to $15.502 billion by week ended November 08, 2019 as compared with $15.518 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves held by State Bank increased by $40 million to $8.397 billion by week ended on November 08, 2019 as compared with $8.357 billion a week ago.

    However, the reserves held by commercial banks fell by $56 million to $7.104 billion as compared with $7.16 billion a week ago.

  • Pakistan’s trade deficit narrows by 33.52 percent in July – October

    Pakistan’s trade deficit narrows by 33.52 percent in July – October

    ISLAMABAD: Pakistan’s trade deficit has narrowed by 33.52 percent during first four months (July – October) of current fiscal year owing to improving exports.

    According to data released by Pakistan Bureau of Statistics (PBS) on Thursday, the trade deficit reduced to $7.77 billion during July – October of current fiscal year as compared with the deficit of 11.7 billion in the corresponding period of the last fiscal year.

    The country’s exports registered four percent growth during the period under review. The exports grew to $7.54 billion during first four months of the current fiscal year as compared with $7.27 billion in the same period of the last fiscal year.

    However, the import bill of the country sharply fell by 19.21 percent during the period. The import bill declined to $15.32 billion during July – October of the current fiscal year as compared with $18.96 billion in the corresponding period of the last fiscal year.

  • Overseas Pakistanis send $7.48 billion in four months

    Overseas Pakistanis send $7.48 billion in four months

    KARACHI: Overseas Pakistanis have remitted $7.48 billion during first four months of current fiscal year, which is 1.8 percent lower when compared with $7.62 billion in the corresponding period of the last fiscal year.

    During October 2019, the inflow of workers remittances amounted to US$ 2,000.80 million, which is 14.46 percent higher than September 2019 and 2.88 percent lower than October 2018.

    The country wise details for the month of October 2019 show that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to US$ 468.18 million, US$ 398.96 million, US$ 322.38 million, US$ 328.69 million, US$ 191.77 million and US$ 60.94 million respectively compared with the inflow of US$ 494.53 million, US$ 419.41 million, US$ 325.19 million, US$ 322.29 million, US$ 200.87 million and US$ 57.42 million respectively in October 2018. Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during October 2019 amounted to US$ 229.88 million together as against US$ 240.57 million received in October 2018.

  • Pakistan’s foreign exchange reserves increase to $15.518 billion

    Pakistan’s foreign exchange reserves increase to $15.518 billion

    KARACHI: The liquid foreign exchange reserves of Pakistan have increased by $428 million to $15.518 billion by week ended November 01, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $15.089 billion by week ended October 25, 2019.

    The reserves held by SBP increased by $443 million to $8.357 billion by week ended November 01, 2019 as compared with $7.914 billion in the preceding week.

    The reserves held by commercial banks decreased by $15 million to $7.16 billion by week ended November 01, 2019 as compared with $7.715 billion a week ago.

  • Headline inflation increases by 11 percent in October

    Headline inflation increases by 11 percent in October

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 11 percent in October 2019 while calculating on the base year 2015-2016.

    According to inflation data released by Pakistan Bureau of Statistics (PBS) on Wednesday, the inflation general increased by 11.0 percent on year-on-year basis in October 2019 as compared to an increase of 11.4 percent in the previous month and 6.5 percent in October 2018.

    On month-on-month basis, it increased by 1.8 percent in October 2019 as compared to an increase of 0.8 percent in the previous month and 2.1 percent in October 2018, the PBS said.

    CPI inflation Urban, increased by 10.9 percent on year-on-year basis in October 2019 as compared to an increase of 11.6 percent in the previous month and 7.0 percent in October 2018.

    On month-on-month basis, it increased by 1.6 percent in October 2019 as compared to an increase of 0.7 percent in the previous month and an increase of 2.2 percent in October 2018.

    CPI inflation Rural, increased by 11.3 percent on year-on-year basis in October 2019 as compared to an increase of 11.1 percent in the previous month and 5.7 percent in October 2018.

    On month-on-month basis, it increased by 2.2 percent in October 2019 as compared to an increase of 0.8 percent in the previous month and an increase of 2.0 percent in October 2018.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 15.1 percent in October 2019 as compared to an increase of 14.7 percent a month earlier and an increase of 1.7 percent in October 2018.

    On MoM basis, it increased by 2.7 percent in October 2019 as compared to an increase of 1.9 percent a month earlier and an increase of 2.3 percent in October 2018.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 13.2 percent in October 2019 as compared to an increase of 15.9 percent a month earlier and an increase of 18.6 percent in October 2018.

    WPI inflation on MoM basis increased by 2.0 percent in October 2019 as compared to an increase of 0.1 percent a month earlier and an increase of 4.4 percent in corresponding month of last year i.e. October 2018.

  • Investment in premium prize bonds surges by 157 percent

    Investment in premium prize bonds surges by 157 percent

    KARACHI: The investment in premium prize bonds of Rs40,000 denomination has witnessed unprecedented growth of 157 percent after the government announcement to discontinue bearer prize bonds of same denomination.

    According to official documents, the investment in premium prize bonds of Rs40,000 denomination surged by 157 percent to Rs15.86 billion by September 2019 as compared with Rs6.17 billion as of May 2019.

    The government on June 24, 2019 announced to discontinue the circulation of Rs40,000 denomination bearer prize bond.

    After the decision of the government people have surrendered Rs222 billion bearer bonds of Rs40,000 denomination by September 2019, which is around 86 percent of the total invested amount till May 2019.

    The State Bank of Pakistan (SBP) following the announcement issued procedure for the banks to facilitate general public in exchanging the unregistered prize bonds through three different modes.

    The SBP has barred the exchange of bearer prize bonds against cash.

    However, it can be redeemed against registered or premium prize bonds or can be converted into national saving schemes or face value (direct transfer to the bank account of bond bolder).

    The bearer instruments have been known as parking lot for undocumented economy. Therefore, the government launched registered prize bonds of Rs40,000 denomination in March 2017 which could be purchased against certain requirements including Computerized National Identity Card (CNIC) and valid bank account.

    According to the SBP the bearer instrument can also be exchanged in savings schemes such as Special Saving Certificates (SSC) or Defence Saving Certificates (DSC).

    The total investment into the saving certificates increased to Rs2.317 trillion by September 2019 as compared with Rs2.2 trillion by May 2019.

    The government is intended to transform all the bearer prize bonds into to registered securities. In this regard the Central Directorate of National Savings in collaboration with SBP is planning to issue scripless registered prize bonds amongst all denominations with objective to document the economy.

  • Profit rates on saving schemes reduced

    Profit rates on saving schemes reduced

    KARACHI: The government has reduced the profit rates on saving certificates effect from November 01, 2019.

    According to notifications issued by Central Directorate of National Savings (CDNS) on Tuesday, the profit rate on Defence Saving Certificate reduced by 2.33 percent to 10.68 percent.

    The profit rate on Pension Behbood has been slashed by 2.28 percent to 12.48 percent.

    The profit rate on Regular Income Certificate has been cut by 2.04 percent to 10.92 percent.

    Similarly, the profit rate on Special Saving Certificate has been cut by 1.70 percent to 11 percent.

    The profit rate on saving accounts has been slashed by 2.05 percent to 8.20 percent.

    Khurram Schehzad, CEO, Alpha Beta Core said that the reduction in profit rate had been done in line with declining secondary market yields on bonds.

    “Decline in fixed income profit rates is going to be positive for equities/stock market,” he added.

  • Proposals for establishment of Pakistan Revenue Authority to be finalized by June 2020

    Proposals for establishment of Pakistan Revenue Authority to be finalized by June 2020

    ISLAMABAD: The ministry of finance has been directed to finalize proposals for establishment of Pakistan Revenue Authority (PRA) by June 30, 2020.

    The directives have been issued at a meeting chaired by the prime minister on restructuring of FBR held last month.

    It is decided that the ministry of finance (Revenue Division) to formulate comprehensive proposals for establishment of PRA and centralized collection of General Sales Tax (Goods and Services) by PRA under the ambit of World Bank’s “Pakistan Raises Revenue Project” by June 30, 2020.

    The meeting discussed the current structure of the FBR that it is archaic and highly bureaucratic, which does not commensurate with technology driven tax administration in vogue around the world.

    There is need to establish legislative empowered, tailored to task (lean organization) and technology driven PRA.

    In the interim period, the FBR headquarters needs to be reorganized /articulated on functional lines segregating Inland Revenue and Customs Operations into North and South Zones.

    Deputy Chairman (2) of FBR need to be appointed to effectively coordinate and supervise segregated functions of Inland Revenue and Customs.

    The meeting approved to appoint deputy chairmen for Inland Revenue and Customs by November 30, 2019.

    Following is the proposed mandate to PRA:

    • Constitutionally empowered and autonomous authority with ‘lean organization’, structured along functional lines.
    • Tax policy entrusted to Ministry of Finance (Revenue Division); guided by political leadership and informed by Tax Policy Board and PRA Board.
    • Disparate provincial revenue authorities should be consolidated into a single authority for each province under the overall coordinated, facilitation, guidance and oversight by PRA (through integrated process).
    • Establishment of Directorate General of Revenue Coordination & Oversight (headed by Director General –Grade 21) at PRA for ensuring fiscal discipline, enhance flexibility and responsiveness of fiscal framework.
    • To address collection, jurisdiction and double taxation issues, GST (including services) be adopted as PRA’s responsibility.
    • Conditional vertical resource distribution formula linked to revenue collection performance under PRA’s coordination / oversight.

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