Category: Finance

Explore finance-related stories with Pakistan Revenue, your source for the latest updates on Pakistan’s economy, financial trends, and market insights. Stay informed with real-time economic developments.

Trade financing facility of $551 million signed for import oil, LNG

ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs witnessed the signing a trade financing facility amounting to US$ 551 million with the International Islamic Trade Finance Corporation(ITFC), a subsidiary of Islamic Development Bank (IsDB) Group, for import of oil and LNG, a statement said on Monday.

This facility will be utilized by Pakistan State Oil Company Limited, Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL).

The Agreement was signed among the Economic Affairs Division and ITFC and the representatives of PSO, PARCO and Pakistan LNG Limited.

The financing Agreement provides trade financing amounting to US $ 551 million for a period of one year for import of oil and LNG. ITFC has agreed to provide trade financing of US$ 1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and Pakistan LNG Limited.

It may be recalled that this facility is a part of Framework Agreement signed with ITFC in April 2018 for a total envelop of US$ 4.5 billion over for a period of three years (2018-2020).

Signing of this financing facility will be helpful in financing oil and gas import bill of the country and easing of pressure on foreign exchange reserves of the country.

This agreement also reflects confidence of international financial institutions in Pakistan’s economy and its future. Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue & Economic Affairs thanked and appreciated ITFC support for Pakistan.

April 22, 2019
Hafeez Shaikh, Illangovan discuss World Bank funded projects

ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs and the World Bank Country Director Patchamuthu Illangovan met on Monday to discuss ongoing projects funded by the World Bank.

Patchamuthu Illangovan was called on the Adviser to PM on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh. They discussed the ongoing projects being supported by the World Bank, a statement said.

The adviser emphasized the need to expedite the finalization of the new financing in the pipeline before the end of FY 2019.

He assured the Country Director that all approvals will be expedited to ensure timely disbursement.

It was also agreed that Chief Executive Officer, World Bank, Kristalina Georgieva, would meet the Prime Minister of Pakistan in China during his visit later this month there.

April 22, 2019
Car import plunges by 80 percent on payment in foreign exchange condition

KARACHI: The import of completely built unit (CBU) cars has sharply declined by 80 percent in March 2019 owing to mandatory requirement of paying duty and taxes through foreign exchange.

According to Pakistan Bureau of Statistics (PBS) the import of motor cars fell 80 percent to $6.14 million in March 2019 when compared with $30.5 million in the same month of last year.

It is worth mentioning here that the ministry of commerce issued SRO 52(I)/2019 dated January 15, 2019 which stated that all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipient supported by bank enchashment certificate showing conversion of foreign remittances to local currency.

The payment through foreign exchange should be:

a. The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

b. The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.

The import data of motor vehicles issued by Pakistan Bureau of Statistics (PBS) revealed that motor cars worth $209 million were brought into the country during July – March 2018/2019 as compared with $359.56 million in the same period of the last fiscal year.

The car import also fell due restrictions on non-filers for registering the imported vehicles.

April 21, 2019
Essential items’ prices inflate for three consecutive weeks in April

The prices of essential commodities have risen for the third consecutive week this month, signaling high headline inflation for April 2019. According to data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) has consistently increased in the weeks ending April 4, 11, and 18, reflecting a challenging trend for consumers.
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April 21, 2019
Official website still showing Asad Umar as finance minister

The official website of Pakistan’s Ministry of Finance continues to show Asad Umar as the Finance Minister, despite Dr. Abdul Hafeez Shaikh assuming the role of Adviser to the Prime Minister on Finance and Revenue.
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April 21, 2019
Instructions issued for moving public money to treasury single account

ISLAMABAD: The ministry of finance said that the State Bank of Pakistan (SBP) has been directed to design procedure for bringing back public money from commercial banks to Treasury Single Account (TSA).

‘A Roadmap for Stability and Growth’ issued by the ministry of finance this month, said that the central bank had been instructed to design administrative procedures, and an IT system, for rolling back public monies from commercial banks to TSA.

The ministry highlighted the weakness in fiscal management that many public sector agencies park unspent monies outside the TSA.

“By end 2018 there was an estimated Rs1.4 trillion in these accounts,” the ministry said.

This reflects a clear case of lack of oversight of public finances, it added.

These accounts of the public agencies are not linked to the Treasury Single Account (TSA) and while these amounts are reflected in SBP reports, they remain outside the fiscal reporting framework of the government.

Some of the monies are due to ‘leakages’ from the fiscal management system and are reported as expenditure in the past fiscal reports.

Thus, showing a larger than actual fiscal deficit.

Moreover, these accounts adversely impact government’s cash management and audits of public expenditure.

The government has introduced an enabling provision for Treasury Single Account (TSA) regime for Government’ cash management system has been incorporated in the draft Public Finance Management and Administration Bill.

This provision gives a rule-based regime of cash management through the TSA.

Simultaneously a policy for TSA is being drafted in consultation with stakeholders and expected to be ready soon for submission to the Federal Cabinet for approval.

April 21, 2019
Hafeez Shaikh holds phone discussion with IMF Mission chief

ISLAMABAD: Dr Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance, Revenue and Economic Affairs held a phone discussion with Ernesto Ramirez-Rigo, IMF Mission Chief to Pakistan, after talking with Jihad Azour, IMF Director, earlier on Saturday.

They discussed the progress of negotiations for an IMF-supported program for Pakistan.

Both sides expressed their commitment for moving the discussions forward.

It was agreed that an IMF mission will visit Pakistan by the end of April 2019.

April 20, 2019
Notification to appoint Hafeez Shaikh as finance advisor issued

ISLAMABAD: Prime Minister Imran Khan on Friday appointed Dr. Abdul Hafeez Shaikh as Advisor to the Prime Minister on Finance, Revenue and Economic Affairs with the status of federal minister with immediate effect, said a statement.

The prime minister office issued notification in this regard.

In order to take the charge of the portfolio, Dr. Hafeez Shaikh has reached Pakistan. Dr. Shaikh prepared roadmap for economic policies.

Sources said that adviser would soon to meet Prime Minister Imran Khan. The new finance incharge wanted independence on economic policy framework.

April 19, 2019
Forex exchange reserves fall to $16.19 billion on sovereign bond repayment

KARACHI: The foreign exchange reserves of the country fell by $1.03 billion during a week owing to huge repayment made against Pakistan Sovereign Bond.

The total foreign exchange reserves of the country fell to $16.196 billon by week ended April 12, 2019 as against the reserves level of $17.228 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

The central bank said that during the week ending April 12, 2019, SBP’s reserves decreased by US$1,028 million to US$9,243.7 million.

The official reserves of the central bank were decreased due to payments on account of external debt servicing, including principal repayment of US$1,000 million against Pakistan Sovereign Bond.

The reserves held by commercial banks were flat at $6.952 billion from previous week’s level of $6.956 billion.

April 18, 2019
Pakistan current account deficit narrows by 29.44 percent in July – March

KARACHI: Pakistan’s current account deficit narrowed by 29.44 percent during first nine-months (July-March) of current fiscal year owing to falling imports and improved foreign remittances.

The current account deficit narrowed to $9.58 billion during first nine months of current fiscal year as compared with deficit of $13.589 billion in the corresponding period of the last fiscal year, according to Balance of Payment (BOP) details issued by State Bank of Pakistan (SBP) on Thursday

Pakistan’s trade deficit was contracted by 13.02 percent during first nine months (July – March) 2018/2019 due to significant decline in import bill in the same period.

The trade deficit shrank to $23.67 billion during first nine months of current fiscal year as compared with the deficit of $27.21 billion in the corresponding period of the last fiscal year.

The import bill during the first nine months was declined by 8 percent to $40.75 billion as compared with $44.28 billion in the same period of the last fiscal year.

However, growth in exports was remained flat. The exports were at $17.08 billion during the period under review as compared with $17.06 billion in the same period of the last fiscal year.

The import bill sharply declined by 21 percent in the month of March 2019 to $4.15 billion as compared with $5.25 billion in the same month of the last fiscal year.

On the other hand overseas Pakistani workers have remitted $16.1 billion during first nine months (July – March) 2018/2019 as compared with $14.8 billion in the same period of the last fiscal year, showing 8.74 percent growth.

During March 2019, the inflow of worker’s remittances amounted to US $1745.80 million, which is 10.73 percent higher than February 2019 and 3.20 percent lower than March 2018.

April 18, 2019