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  • ECC approves clearance of banned items landed till August 18, 2022

    ECC approves clearance of banned items landed till August 18, 2022

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the customs clearance of banned items, which landed till August 18, 2022.

    Federal Minister for Finance and Revenue Miftah Ismail virtually presided over the meeting of the ECC. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmmod, Federal Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel, MNA/ex-PM Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Coordinator to the PM on Economy Bilal Azhar Kayani, Chairman NDMA, Chairman FBR, Federal Secretaries and senior officers attended the meeting.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    The ECC considered a summary of Ministry of Commerce on clearance of stuck up consignments in light of office memorandum dated 22 July, 2022, 19 August, 2022 and 23 August, 2022 issued by Ministry of Commerce.

    The ECC approved the proposal and directed that the consignments of previously banned items that landed in Pakistan till August 18, 2022 may be released at the rate of surcharge.

    Ministry of National Health Services, Regulations and Coordination presented a summary for exemption of Active Pharmaceutical Ingredients (APIs) from Custom Duty and Additional Custom Duty.

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    The ECC after discussion directed Ministry of National Health Services, Regulations and Coordination to withdraw the summary and submit a fresh summary to rationalize price of paracetamol to ensure its availability.

    The summary presented by Ministry of National Food Security and Research regarding import of Wheat through Gwadar sea port was deferred by ECC.

    National Disaster Management Authority (NDMA) presented a summary for allocation of funds for procurement and logistics of relief items for flood affectees and apprised about devastation caused by the recent floods in Pakistan. In order to provide immediate relief to the flood affectees, NDMA started procurement on emergency basis costing Rs. 2.4 billion.

    READ MORE: Pakistan decides to lift ban on imported goods

    Due to colossal damages, the already procured items are not sufficient viz-a-viz relief requirement in the flood affected areas.

    Therefore, NDMA placed orders for procurement of more items at cumulative cost of Rs. 7.113 billion, which are being procured in emergency to provide relief to affectees. Previously, NDMA was allocated Rs. 8 billion for procurement and logistics cost of relief items to the flood affectees.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The amount was insufficient as the cost of only procurement has surpassed Rs. 9.5 billion. Besides procurement, NDMA is also undertaking logistics of all relief goods and materials provided by friendly countries.

    Foregoing in view, the ECC approved allocation of Rs. 10 billion to National Disaster Management Authority (NDMA) with direction to the Finance Division to immediately release Rs. 5 billion to NDMA.

  • Pakistan FX reserves slip to $14.32 billion

    Pakistan FX reserves slip to $14.32 billion

    KARACHI: The foreign exchange (FX) reserves of Pakistan have slipped by $156 million to $14.32 billion by week ended September 09, 2022, according to data released by the State Bank of Pakistan (SBP) on Thursday.

    Total foreign exchange reserves of the country were at $14.473 billion a week ago i.e. September 02, 2022.

    READ MORE: Pakistan’s FX reserves increase by $1.07bn after IMF inflows

    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 $12.911 billion.

    The official reserves of State Bank of Pakistan (SBP) also fell by $176 million to $8.624 billion by week ended September 9, 2022 as compared with $8.8 billion a week ago.

    READ MORE: Pakistan FX reserves drop to $13.4 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 $12.522 billion.

    Earlier this month, SBP received US$ 1,166 million from IMF under EFF program, which increased the official reserves to $8.8 billion

    READ MORE: Pakistan’s forex reserves fall to $13.52 billion

    The foreign exchange reserves held by commercial banks however increased by $20 million to $5.693 billion by week ended September 09, 2022 as compared with $5.673 billion a week ago.

    READ MORE: Pakistan’s forex reserves increase by $52 million

  • Pakistan raises petroleum prices by 100% in one year

    Pakistan raises petroleum prices by 100% in one year

    ISLAMABAD: Pakistan has increased prices of petroleum products by around 100 per cent during past one year, according to official data released on Friday.

    According to data released by Pakistan Bureau of Statistics (PBS), the price of petrol was increased by 99 per cent to Rs236.98 per liter by week ended September 08, 2022 as compared with Rs119.25 per liter by week ended September 09, 2021.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Similarly, the price of high speed diesel (HSD) recorded a massive increase of 114 per cent to Rs248.40 per liter by week ended September 08, 2022 when compared with Rs116 per liter by week ended September 09, 2021.

    The PBS issued weekly Sensitive Price Indicator (SPI) based inflation details.

    The year on year trend depicts an increase of 42.70 per cent. The items have witnessed increase in prices are included: Tomatoes (144.25 per cent), Diesel (114.08 per cent), Petrol (98.73 per cent), Pulse Masoor (76.34 per cent), Cooking Oil 5 litre (67.99 per cent), Mustard Oil (66.53 per cent), LPG (64.98 per cent), Washing Soap (64.50 per cent), Electricity for Q1 (63.03 per cent), Vegetable Ghee 2.5 Kg (62.53 per cent), Pulse Gram (61.02 per cent), Onions (59.97 per cent) and Vegetable Ghee 1 Kg (58.19 per cent).

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

    While a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (18.07 per cent) and Gur (2.08 per cent).

    The SPI for the current week ended on September 08, 2022 recorded a decrease of 0.58 per cent. Decrease is observed in the prices of food items, Onions (41.99 per cent), Tomatoes (8.11 per cent), Bananas (2.51 per cent), Pulse Masoor (1.37 per cent), Vegetable Ghee 1Kg (0.55 per cent), Cooking Oil 5 litre (0.33 per cent), Mustard Oil (0.16 per cent) and Vegetable Ghee 2.5Kg & Sugar (0.11 per cent) each.

    READ MORE: Pakistan’s sensitive price inflation surges by 45%

    On the other hand, an increase observed in the prices of LPG (10.66 per cent), Wheat Flour (4.15 per cent), Eggs (3.96 per cent), Bread (3.27 per cent), Pulse Moong (2.74 per cent), Curd (2.72 per cent), Tea Lipton (2.50 per cent), Pulse Gram (1.65 per cent), Chicken (1.58 per cent), Milk Fresh (1.57 per cent), Fire wood (1.54 per cent) and Potatoes (1.02 per cent).

    During the week, out of 51 items, prices of 26 (50.98 per cent) items increased, 09 (17.65 per cent) items decreased and 16 (31.37 per cent) items remained stable.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

  • USC to disburse ration bags worth Rs540 million to flood victims

    USC to disburse ration bags worth Rs540 million to flood victims

    ISLAMABAD: Utility Stores Corporation (USC) will disburse 113,700 ration bags worth Rs540 million to the flood affected people across the country.

    In this regard the Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the grant in favor of the USC.

    Ministry of Industries and Production presented a summary for release of funds for Utility Stores Corporation for provision of essential commodities in flood affected areas.

    READ MORE: OTP requirement abolished for USC purchases

    The meeting was apprised that the Utility Stores Corporation, in collaboration with provincial governments, is actively participating in relief operation for supply of essential food items in flood affected areas across Pakistan.

    Due to emergency situation and based on the preliminary need assessment, 113,700 ration bags amounting to Rs. 540 million would be disbursed. Considering emergency situation, the ECC approved Supplementary/ Technical Supplementary Grant of Rs. 540 million in favour of Utility Stores Corporation (USC).

    READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

    Finance Mnister Miftah Ismail chaired the ECC meeting. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Shahid Khaqan Abbasi, MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Dr. Muhammad Jehanzeb Khan, Special Assistant to the Prime Minister on Government Effectiveness, MD USC, MD PASSCO, Federal Secretaries and senior officers attended the meeting.

    Ministry of National Food Security & Research tabled a summary for allocation of PASSCO’s local and imported wheat sock among recipient agencies.

    READ MORE: USC, NBP complete integration for Ehsaas Rashan

    It was briefed that PASSCO serves as a strategic organization to procure wheat from Punjab, Sindh and Baluchistan to build strategic reserves and to supply wheat to recipient agencies in case of emergency.

    Every year, on the request of recipient agencies, PASSCO makes allocation of wheat from its stocks. PASSCO held wheat stock of 2.499 MMT, including 1.232 MMT carry forward stocks.

    In view of above, the ECC allowed to supply PASSCO’s wheat among all recipients at 50 per cent local and 50 per cent imported.

    However, USC will be provided wheat at 75 per cent local and 25 per cent imported.

    All recipients including USC would pay full cost of wheat (local + imported) and incidental charges to PASSCO.

    READ MORE: USC automation to ease provision of targeted subsidy

    Ministry of Industries and Production presented a summary on Urea Fertilizer requirement for Rabi season 2022-23. The meeting was briefed on the demand and supply situation of Urea fertilizer for the Rabi season 2022-23.

    After detailed deliberation, the ECC allowed Trading Corporation of Pakistan (TCP) to initiate the process for import of 300,000 MT of Urea on G2G basis and decided the provinces to bear their subsidy share.

    The ECC approved funds amounting to Rs. 3 billion to NDMA to meet its growing expenditure on account of procurement of rescue, relief and rehabilitation of the calamity stricken population across Pakistan.

    NDMA briefed the meeting that in the aftermath of devastation caused by floods across the country, millions of people have suffered in terms of loss of life, property, livestock and standing crops.

    NDMA was tasked by the Prime Minister to coordinate with PDMAs and to proactively undertake rescue and relief operation in the affected areas.

    The ECC also approved funds requirement of Rs. 1,009,480,191/- in favour of Ministry of National Health Services, Regulation & coordination for further transfer to Government of Afghanistan through approved mechanism for running cost/salary of the staff of three Pakistani hospitals in Afghanistan.

  • Pakistan’s FX reserves increase by $1.07bn after IMF inflows

    Pakistan’s FX reserves increase by $1.07bn after IMF inflows

    KARACHI: Pakistan’s foreign exchange reserves have increased by $1.07 billion after the country received inflows from International Monetary Fund (IMF), a statement said on Thursday.

    The foreign exchange reserves of Pakistan increased to $14.473 billion by week ended September 02, 2022 as compared with reserves position of $13.403 billion a week ago i.e. August 26, 2022.

    READ MORE: Pakistan FX reserves drop to $13.4 billion

    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 $12.755 billion.

    The official reserves of State Bank of Pakistan (SBP) also recorded an increase of $1.103 billion to $8.8 billion by week ended September 02, 2022 as compared with $7.697 billion a week ago.

    READ MORE: Pakistan’s forex reserves fall to $13.52 billion

    During the week ended, SBP received US$ 1,166 million from IMF under EFF program. After accounting for external debt and other payments, SBP reserves increased by US$ 1,103 million to US$ 8,799.9 million.

    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 $11.346 billion.

    READ MORE: Pakistan’s forex reserves increase by $52 million

    Previously, the SBP stated that it had received proceeds of $1.16 billion (equivalent of SDR 894 million) from IMF under the Extended Fund Facility (EFF) on August 31, 2022 which would be included in SBP’s foreign exchange reserve position for the week ending on September 02, 2022.

    The foreign exchange reserves held by commercial banks fell by $33 million to $5.673 billion by week ended September 02, 2022 as compared with $5.706 billion a week ago.

    READ MORE: Pakistan’s reserves plunge 43-month low to $13.56 billion

  • Pakistan cotton prices surge due to flood devastations

    Pakistan cotton prices surge due to flood devastations

    KARACHI: Cotton prices in Pakistan have surged sharply over the past few days because floods destroyed the cotton crop.

    According to analysts of AKD Research issued on Thursday, local cotton prices have traded up over the past month, increased by 24 per cent to Rs22,506 per 40-kg, having reached a recent high of as much as Rs24,649/40-kg on August 27, 2022.

    READ MORE: PYMA demands cotton import through land routes

    The sharp uptick in prices was driven by expectations of supply-side constraints in the cotton market in the aftermath of the floods that left one-third of the country submerged in water.

    According to latest estimates from the UN, about 3.6 million acres of crop land has been destroyed in the floods, with the majority of the devastation concentrated in Sindh (2.9 million acres affected).

    In a recent address, Finance Minister Miftah Ismail pointed towards all of the cotton crop in the province of Sindh having been damaged by the floods – indicating that about 30 per cent of the national cotton crop has been lost.

    READ MORE: Textile exporters urge allowing cotton import from India

    Resultantly, Pakistan is expected to meet the supply shortfall by importing cotton of $1.5-2 billion,

    Latest data released by Pakistan Cotton Ginners Association (PCGA) showed that cotton arrivals in the ginners were down by 0.25 million bales when compared to the same period last year, with 1.54 million bales having reached by September 2022. The slump was largely driven by a shortfall in Sindh, where 0.84 million bales arrived at the ginners, lower by 0.4 million bales or 33 per cent year on year.

    The COTLOOK A Index is currently trading at USc122/lb, compared to USc104/lb on September 06, 2021 and FY21 average of USc82/lb.

    READ MORE: FBR notifies duty exemption on cotton yarn import

    The prices have, however, eased from a high of USc173/lb reached in May 2022. Higher prices in the international arena are being driven by adverse climate conditions across the globe, with India suffering from heavy rains and pest attacks, while the US has experienced a drought in the cotton-growing region of Texas (the state has experienced the second driest year in 128 years so far this year).

    To note, the US accounted for 33 per cent of total cotton shipments in FY22, and the US Department of Agriculture estimates 66 per cent of the cotton producing area has been experiencing a drought.

    Moreover, the US has downward revised the global output for FY23 by around 3 million bales in recent WASDE reports, with the output now expected at 117 million bales.

    READ MORE: Exporters welcome duty withdrawal on cotton, yarn import

    The analysts said that textile players in Pakistan build the majority of their inventories during the December Quarter, although the damage to local crop may hinder local procurement. However, the analysts expect the companies to meet this shortfall through imports.

  • Pakistan trade deficit narrows by 17% in 2MFY23

    Pakistan trade deficit narrows by 17% in 2MFY23

    ISLAMABAD: Trade deficit fell by 17.13 per cent during first two months (July – August) 2022/2023 2MFY23, owing to fall in import bill, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The statistics revealed that the trade deficit for the period July – August 2022/2023 was at $6.27 billion as compared with the deficit of $7.56 billion in the same period of the last fiscal year.

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

    Pakistan’s exports increased by 3.75 per cent to $4.76 billion during July – August 2022/2023 as compared with $4.58 billion in the corresponding period of the last fiscal year.

    On the other hand, import bill of the country fell to $11.03 billion during the first two months of the current fiscal year as compared with $12.15 billion in the same period of the last fiscal year, showing a decline of nine per cent.

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

    However, trade deficit surged by 29 per cent to $3.53 billion in August 2022 when compared with the deficit of $2.74 billion in the month of July 2022.

    The exports recorded 11 per cent increased to $2.50 billion in August 2022 when compared with $2.25 billion in July 2022.

    READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

    Meanwhile, the import bill also climbed up by 21 per cent to $6.03 billion in August 2022 when compared with $4.99 billion in the month of July 2022.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

  • Pakistan estimates flood devastation to cost $10 billion

    Pakistan estimates flood devastation to cost $10 billion

    ISLAMABAD: The torrential rains and flash floods across Pakistan have inflicted an estimated loss of $10 billion to the national economy.

    Federal Minister for Finance and Revenue Miftah Ismail on Thursday said the current devastation of flood in Pakistan is estimated to cost $10 billion.

    READ MORE: Pakistan allows tax exemption on tomato, onion imports

    During flood, railway lines, roads, bridges, grid stations, power lines and houses etc. were badly damaged, which has to be rehabilitated, the minister added.

    The minister said that the United Nation has made a commitment of $160 million and USAID has announced the provision of 30 million dollars.

    Miftah added that in addition to this, friendly countries including the United Kingdom, European countries, Australia and Arab countries has provided financial support and also delivered aid materials.

    READ MORE: FBR announces tax exemptions for flood relief operation

    He said that rehabilitation is a long process which Pakistan will try to complete with the help of its own resources and friendly countries.

    The Minister said that the devastating magnitude of the flood was very high and it is a big challenge for us which “we will try our best to tackle.”

    In response to a question, he said that the federal and provincial governments are helping the flood victims and adding that the central government is disbursing money, for which a woman in every house is being given an amount of up to Rs 2500.

    He said that this amount will be disbursed to 4.2 million women across the country.

    READ MORE: Complaints against banks for refusing flood donations

    Miftah said that the federal and provincial governments and National Disaster Management Authority are currently busy helping the flood victims and the government is delivering food packets, mosquito nets, tents and medicines to the flood affected areas.

    He said that there is no shortage of food, but there is a shortage of onions and tomatoes.

    He said that “we are importing tomatoes and onions by reducing the import duty.”

    The Minister said that apart from this, several million tons of wheat are being imported and the duties on it are being reduced and are being ordered at subsidy rates.

    He said that the goods which will have shortages will be imported so that there is no shortage of essential goods.

    READ MORE: US provides Rs6.65 billion for Pakistan flood relief

    He said that this is a very challenging situation, crops have been damaged due to flood in Sindh province.

    Miftah said that cotton crops have been damaged up to 30% in Sindh province and sugarcane crop has been damaged up to 20 per cent.

    He said that wheat will be sown in the next two months and water draining out is a big challenge but it will be resolved so that the farmers can sow their crops.

    In response to a question, he said that the government is considering giving incentives to farmers and banks will relax the loans of farmers so that they can cover their losses.

  • Pakistan FX reserves drop to $13.4 billion

    Pakistan FX reserves drop to $13.4 billion

    KARACHI: The foreign exchange (FX) reserves of Pakistan have declined by $119 million to $13.40 billion by week ended August 26, 2022, the State Bank of Pakistan (SBP) said on Thursday.

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