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  • Pakistan reaffirms commitment to complete IMF program

    Pakistan reaffirms commitment to complete IMF program

    ISLAMABAD: Pakistan on Thursday reaffirmed commitment to complete the loan program under International Monetary Fund (IMF).

    The resolve has been expressed at an online meeting of Finance Minister Ishaq Dar with Nathan Porter, IMF Mission Chief for Pakistan.

    The two sides discussed the progress made with the ongoing IMF program, particularly the impact of floods on macroeconomic framework and targets for the current year.

    IMF indicated its willingness to sympathetically view the targeted assistance for poor and vulnerable, especially flood affectees.

    It was agreed that expenditure estimates for flood related humanitarian assistance during the current year will be firmed up alongwith estimates of priority rehabilitation expenditure.

    In this regard engagement at the technical level shall be expeditiously concluded for proceeding with the 9th Review. Finance Minister Senator Ishaq Dar reiterated GOP’s commitment to successfully completing the IMF program.

  • Pakistan forex reserves inch up to $13.796 billion

    Pakistan forex reserves inch up to $13.796 billion

    KARACHI: Foreign exchange (forex) reserves of Pakistan inched up by $75 million to $13.796 billion by week ended November 11, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $13.721 billion a week ago i.e. November 04, 2022.

    READ MORE: Pakistan FX reserves slip sharply by $958 mn on external payments

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.432 billion.

    The official foreign exchange reserves of the State Bank nominally increased by $3 million to 7.96 billion by week ended November 11, 2022 as compared with $7.957 billion a week ago.

    READ MORE: SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.185 billion.

    READ MORE: Pakistan’s weekly forex reserves increase nominally

    It is pertinent to mention that the SBP’s reserves witnessed sizeable increase a week ago after the Asian Development Bank (ADB) released the fund amounting $1.5 billion to Pakistan on October 26, 2022.

    The foreign exchange reserves held by commercial banks recorded an increase of $72 million to $5.836 billion by week ended November 11, 2022 as compared with $5.764 billion a week ago.

    READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion

  • Pakistan FX reserves slip sharply by $958 mn on external payments

    Pakistan FX reserves slip sharply by $958 mn on external payments

    KARACHI: Pakistan foreign exchange reserves slipped sharply by $958 million by week ended November 08, 2022 owing to external payments, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country have been recorded at $13.721 billion by week ended November 04, 2022 as compared with $14.679 billion a week ago i.e. October 28, 2022.

    READ MORE: Pakistan FX reserves rise to $14.69 billion after ADB transfer

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.507 billion.

    The official foreign exchange reserves of the State Bank plunged by $958 million to $7.957 billion by week ended November 04, 2022 as compared with $8.913 billion a week ago.

    READ MORE: SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    The SBP attributed the decline to external debt servicing. “Major external debt repayments executed during the week includes repayment of government commercial loans. Refinancing of these loans is in process which will improve foreign exchange reserves in coming weeks,” the central bank added.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.189 billion.

    READ MORE: Pakistan’s weekly forex reserves increase nominally

    It is pertinent to mention that the SBP’s reserves witnessed sizeable increase a week ago after the Asian Development Bank (ADB) released the fund amounting $1.5 billion to Pakistan on October 26, 2022.

    The foreign exchange reserves held by commercial banks flat at $5.764 billion by week ended November 04, 2022 when compared with $5.766 billion a week ago.

    READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion

  • China continues to help Pakistan stabilize financial situation

    China continues to help Pakistan stabilize financial situation

    BEIJING: China has done its utmost to help Pakistan stabilize financial situation, said Chinese Foreign Ministry Spokesperson, Zhao Lijian on Monday and added his country will continue to do so in the future.

    “China and Pakistan are all-weather strategic cooperative partners. We have been supporting each other for common development and in joint efforts to overcome difficulties,” he said during his regular briefing in response to a question about the debt assistance provided by China and other financial assistance.

    “China has done its utmost to help Pakistan stabilize its financial situation. We have been doing so, and we will continue to do so,” he said.

    As per media reports, during Prime Minister Shehbaz Sharif’s recent official visit to Beijing, the Chinese leadership promised to roll out $4 billion in sovereign loans, refinance $3.3 billion commercial bank loans and increase currency swept by about $1.45 billion.

    To a question about Pakistan’s current political situation, he said that China had noted the relevant reports.

  • ECC approves raising petroleum levy to Rs50 per liter on RON 95

    ECC approves raising petroleum levy to Rs50 per liter on RON 95

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved increasing petroleum levy to Rs50 per liter on RON 95.

    Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC at Finance Division.

    READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023

    Federal Board of Revenue (FBR) presented a summary on increase in rate of Sales Tax on HOBC. It was conveyed that the rates of Sales Tax on POL products were reduced to zero from February 01, 2022, that put pressure on FBR’s efforts to achieve its revenue targets.

    Therefore, the ECC after deliberation allowed to increase petroleum levy from Rs 30 up to Rs. 50/Liter on RON 95 and above with effect from November 16, 2022, which is a luxury good being consumed by wealthy consumers in expensive vehicles.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Federal Minister of Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, Chairman FBR and other senior officers attended the meeting.

    READ MORE: OGDCL announces huge oil discovery at Attock

    Ministry of energy (Petroleum Division) submitted a summary on High Speed Diesel/ Gas oil premium and informed that due to difference of premium on import of HSD for importing OMCs and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country. In order to ensure sustained supply/import security, the ECC after detailed discussion allowed premium on HSD subject to maximum capping at US$ 15/BBL for importing OMCs other than PSO for the months of November and December, 2022.

    The ECC also approved Technical Supplementary Grants of Rs. 5 billion for conduct of 7th population census.

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

  • Pakistan budget deficit widens by 43% in first quarter of 2022-2023

    Pakistan budget deficit widens by 43% in first quarter of 2022-2023

    ISLAMABAD: Pakistan budget deficit has widened by 43 per cent in the first quarter (July – September) of current fiscal year 2022-2023, according to official data released by the ministry of finance on Friday.

    The budget deficit of the country was 1 per cent of the GDP during the first quarter of the current fiscal year as compared with the deficit of 0.7 per cent in the corresponding quarter of the preceding fiscal year.

    READ MORE: Pakistan FX reserves rise to $14.69 billion after ADB transfer

    According to data the total revenue increased to Rs2.02 trillion during the quarter under review as compared with Rs1.81 trillion in the same quarter of the last year.

    The tax revenue rose to Rs1.78 trillion during July – September of the current fiscal year as compared with Rs1.53 trillion in the same period of the last year.

    READ MORE: Pakistan’s import restrictions help narrowing trade deficit by 27%

    Non-tax revenue however fell to Rs235 billion during the first quarter of the current fiscal year when compared with Rs276 billion in the same period of the last fiscal year.

    During the period under review expenditures of the country rose significantly to Rs2.83 trillion as compared with Rs2.25 trillion in the corresponding period of the last fiscal year.

    Out of total expenditures, the current expenditures grew sharply to Rs2.54 trillion during first quarter of the current fiscal year as compared with Rs1.97 trillion in the same quarter of the last fiscal year. The mark-up payment during the quarter under review also surged to Rs954 billion when compared with Rs623 billion in the corresponding quarter of the last year.

    READ MORE: Threshold of letter of credit payment increased to $100,000

    Defence spending increased to Rs313 billion during the first quarter of the current fiscal year as compared with Rs262 billion in the same period of the last fiscal year.

    The present government spent an amount of Rs220 billion on development projects during the quarter under review, which fell from Rs265 billion in the corresponding quarter of the last year.

    READ MORE: Headline inflation surges by 26.6% in October 2022

    Overall budget deficit recorded at Rs809 billion during the first quarter of fiscal year 2022-2023 when compared with the deficit of Rs438 billion in the same quarter of the last fiscal year.

    The size of GDP has been recorded at Rs78.197 trillion in July – September of the current fiscal year as compared with Rs66.95 trillion in the same period of the last fiscal year.

  • Pakistan FX reserves rise to $14.69 billion after ADB transfer

    Pakistan FX reserves rise to $14.69 billion after ADB transfer

    KARACHI: Pakistan foreign exchange reserves have increased by $1.527 billion to $14.69 billion by week ended October 28, 2022 after transfer of funds from Asian Development Bank (ADB).

    The country’s foreign exchange reserves increased to $14.689 billion by week ended October 28, 2022 as compared with $13.162 billion a week ago i.e. October 21, 2022, State Bank of Pakistan (SBP) said on Thursday.

    READ MORE: SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    The ADB released the fund amounting $1.5 billion to Pakistan on October 26, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.539 billion.

    The official foreign exchange reserves of the State Bank also increased by $1.473 billion to $8.913 billion by week ended October 28, 2022 when compared with $7.44 billion a week ago.

    READ MORE: Pakistan’s weekly forex reserves increase nominally

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $11.233 billion.

    READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion

    Previously, the central bank received $1.16 billion from the International Monetary Fund (IMF) under Extended Fund Facility (EFF) program, which increased the official reserves to $8.8 billion. But scheduled repayment gradually depleted the official reserves of the central bank.

    READ MORE: Pakistan’s forex reserves decline to $13.59 billion

    The foreign exchange held by commercial banks witnessed an increase of $44 million to $5.766 billion by week ended October 28, 2022 as against $5.722 billion a week ago.

  • Pakistan’s import restrictions help narrowing trade deficit by 27%

    Pakistan’s import restrictions help narrowing trade deficit by 27%

    ISLAMABAD: Import restrictions imposed by Pakistan resulted in massive 27 per cent contractions in trade deficit during first four months (July – October) 2022/2023, according to official data released on Wednesday.

    The trade deficit narrowed to $11.47 billion during first four months of the current fiscal year as compared with the deficit of $15.62 billion in the corresponding months of the last fiscal year, Pakistan Bureau of Statistics (PBS) said.

    READ MORE: Pakistan import bill falls by 12.72% in 1QFY23

    The trade deficit contraction is largely sharp decrease in import bill of the country during the period under review. Import payment of the country were at $21.02 billion during July – October 2022/2023 as compared with $25.08 billion in the same period of the last fiscal year.

    The fall in import bill may be attributed to restrictions imposed by the government regarding opening of letter of credit. Recently, Finance Minister Ishaq Dar had announced to increase the threshold payment for LCs from $50,000 to $100,000. Industry sources said that due to scarcity of dollars in the market, most of the banks were not opening LCs for import payments.

    READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23

    Exports of the country, however, grew with a small margin during the period. The exports recorded increase to $9.55 billion during first four months of the current fiscal year as compared with $9.46 billion in the same months of the last fiscal year.

    The trade deficit recorded a contraction of 42 per cent in the month of October 2022 when compared with same month of the last year. The trade deficit fell to $2.26 billion in October 2022 when compared with the deficit of $3.9 billion in the same month of the last year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    The import bill plummeted by 27 per cent to $4.63 billion in the month of October 2022 when compared with $6.37 billion in the same month of the last year.

    On the other hand, exports also fell by 3.77 per cent to $2.37 billion in the month under review as compared with $2.46 billion in the corresponding month of the last year.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

  • Headline inflation surges by 26.6% in October 2022

    Headline inflation surges by 26.6% in October 2022

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) registered an increase of 26.6 per cent in the month of October 2022, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    The details showed that CPI inflation general increased to 26.6 per cent on a year-on-year basis in October 2022 as compared to an increase of 23.2 per cent in the previous month and 9.2 per cent in October 2021. On a month-on-month basis, it increased to 4.7 per cent in October 2022 as compared to a decrease of 1.2 per cent in the previous month and an increase of 1.9 per cent in October 2021.

    READ MORE: Pakistan’s headline inflation rises 23.2% in September 2022

    CPI inflation Urban, increased to 24.6 per cent on year-on-year basis in October 2022 as compared to an increase of 21.2 per cent in the previous month and 9.6 per cent in October 2021. On month-on-month basis, it increased to 4.5 per cent in October 2022 as compared to a decrease of 2.1 per cent in the previous month and an increase of 1.7 per cent in October 2021.

    CPI inflation Rural, increased to 29.5 per cent on year-on-year basis in October 2022 as compared to an increase of 26.1 per cent in the previous month and 8.7 per cent in October 2021. On month-on-month basis, it increased to 5.0 per cent in October 2022 as compared to an increase of 0.2 per cent in the previous month and an increase of 2.2 per cent in October 2021.

    READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022

    Sensitive Price Indicator (SPI) inflation on YoY increased to 24.0 per cent in October 2022 as compared to an increase of 28.6 per cent a month earlier and an increase of 15.3 per cent in October 2021. On MoM basis, it decreased by 1.5 per cent in October 2022 as compared to a decrease of 1.4 per cent a month earlier and an increase of 2.1 per cent in October 2021.

    READ MORE: Pakistan inflation hits 14-year high at 25% in July

    Wholesale Price Index (WPI) inflation on YoY basis increased to 32.6 per cent in October 2022 as compared to an increase of 38.9 per cent a month earlier and an increase of 21.2 per cent in October 2021. On MoM basis, it decreased by 0.5 per cent in October 2022 as compared to an increase of 1.4 per cent a month earlier and an increase of 4.2 per cent in corresponding month i.e. October 2021.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

  • Threshold of letter of credit payment increased to $100,000

    Threshold of letter of credit payment increased to $100,000

    ISLAMABAD: The government has increased payment threshold of letter of credits from present $50,000 to $100,000, Finance Minister Ishaq Dar said on Monday.

    Briefing media here on Monday, Minister for Finance Senator Ishaq Dar announced the government’s decision to increase the threshold of letters of credits (LCs) payments from $50,000 to $100,000.

    With respect to pending cases of LCs, Ishaq Dar said that last month there were about 8,000 pending payments of LCs, out of which 4,400 cases of up to $50,000 had already been cleared while now after the government’s decision of increasing the threshold up to $100,000, 1,365 more cases would be cleared.

    “I met with the Governor Sate Bank of Pakistan (SBP) in Karachi on Sunday, and with the consent of SBP, the government has approved increase of the threshold up to $100,000”, he added.

    He said the decision would be implemented from November 1, 2022.

    The government has also decided to keep the prices of petroleum products unchanged for first half of November 2022 besides extending the last date for filing of tax returns.

    “The government has decided to keep the prices of Petrol, High Speed Diesel, Light Diesel, and Kerosene Oil unchanged for for next 15 days”, Ishaq Dar said.

    Further the minister said that today [October 31] was the last date for filing income tax returns, however on the request of representations of tax bar association and the business community, the government has decided to extend the date for one month up to November 30.