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  • Pakistan foreign exchange reserves rise to $23.72 billion

    Pakistan foreign exchange reserves rise to $23.72 billion

    KARACHI: Pakistan’s foreign exchange reserves increased significantly to $23.72 billion owing to inflows from International Monetary Fund (IMF) and Sukuk proceeds.

    The total liquid foreign exchange reserves of the country rose by $1.637 billion to $23.721 billion by week ended February 04, 2022.

    The foreign exchange reserves of the country were $22.084 billion by week ended January 28, 2022, the State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the State Bank increased by $1.61 billion to $17.337 billion by week ended February 04, 2022 as compared with $15.727 billion a week ago.

    The SBP said that the rise in foreign exchange reserves due to inflows of $ 1,053 million received from IMF under EFF program and proceeds against Pakistan International Sukuk Bond issuance of $1,000 million.

    The foreign exchange held by commercial banks also increased by $25 million to $6.384 billion by week ended February 04, 2022 as compared with $6.357 billion a week ago.

    Pakistan’s forex reserves decline to $22.085 billion
  • Federal government announces 15% increase in salaries

    Federal government announces 15% increase in salaries

    ISLAMABAD: The federal government on Wednesday announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.

    A statement issued by the Finance Division, an arm of the Finance Ministry, said that the government had decided to give 15 per cent disparity allowance on running basic pay to less privileged employees from BS-1 to BS-19 with effect from March 01, 2022. The above package is also recommended to the provinces for adoption from their own funds.

    READ MORE: Withholding tax rates on salary income for 2021-2022

    Further, a summary for timescale promotion has been initiated by the Finance Division to mitigate the hardship being faced by employees stuck in the same grade for a long time.

    READ MORE: Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22

    The matter of upgradation of posts on the analogy of Khyber Pakhtunkhwa will be decided based on the findings of the study being conducted by MS Wing of the Establishment Division by end April 2022.

    READ MORE: Employers to deduct tax on salary income

    Further, the merger of Adhoc Relief/Allowances into pay will be decided on report of pay and pension commission and will be merged in basic pay as per agreement.

    READ MORE: Tax on salary income of earlier year

  • List of goods export to Afghanistan in PKR, no E-form

    List of goods export to Afghanistan in PKR, no E-form

    ISLAMABAD: The federal government has expanded the list of goods for export to Afghanistan and through Afghanistan to Central Asian Republics without requirement of E-form and against Pakistan Rupee (PKR).

    In this regard the ministry of commerce issued SRO176(I)/2022 dated February 04, 2022 to amend Export Policy Order 2020.

    READ MORE: Pakistan establishes Afghanistan relief fund

    As per the export policy order, export goods to Afghanistan and through Afghanistan to Central Asian Republics are allowed against Pakistan currency on filing of regular shipping bills without the requirement of E-form.

    READ MORE: Pakistan donates 50,000MT wheat to Afghanistan

    Prior to the amendment, the allowed goods are included: fruits; vegetables; dairy products; and meat. However, after the amendment more number of goods have been added to the list, which included: rice; fish and fish products; poultry, meat and products; sugar confectionary and bakery products; fruits, nuts and other edible parts of plants; oilcake and other solid residues; vegetable materials and vegetable waste; salt; cement; pharmaceuticals; matches; textile and textile articles; building stone; and surgical instruments.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    As per the Export Policy Order, 2021, the goods are not entitled to: zero rating of sales tax on taxable goods; rebate of central excise duty; and payment of drawback of customs duty.

    READ MORE: Index gains 346 points on better Afghanistan situation

  • Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22

    Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22

    ISLAMABAD: Pakistan’s fiscal deficit during the first half (July – December) of 2021/2022 has contracted at 2.1 per cent as compared with 2.5 per cent in the same half of the last fiscal year, the finance ministry said on Wednesday.

    The reduction in deficit mainly contraction in expenditure during the half.

    READ MORE: Pakistan, China discuss bilateral economic, trade ties

    The revenue to the GDP ratio fell to 6.2 per cent during the first half of the current fiscal year as compared with 7.4 per cent in the same half of the last fiscal year.

    The expenditure to the GDP ratio also declined to 8.2 per cent during the first half of the current fiscal year as compared with 9.9 per cent in the same half of the last fiscal year.

    READ MORE: PM Imran invites Chinese companies to invest in Pakistan

    The GDP size during the first half of the current fiscal year has been measured at Rs63.978 trillion as compared with Rs45.567 trillion in the same half of the last fiscal year.

    According to the fiscal operation for first half (July – December) 2021/2022 released by the finance ministry, the total revenue was recorded at Rs3.95 trillion, out of which, the tax revenue was at Rs3.19 trillion and non-tax revenue was Rs764.93 billion.

    READ MORE: Prime Minister Imran kicks off visit to China

    Total expenditure during the first half of the current fiscal year has been recorded at Rs5.32 trillion. The current expenditure has been recorded at Rs4.67 trillion, out of which Rs520 billion was spend on defence. An amount of Rs571 billion was spent for development expenditure and net lending.

    To meet the budget deficit of Rs1.372 trillion, the government borrowed Rs 1.025 trillion from external sources and remaining Rs346 billion arranged from domestic sources.

    READ MORE: PM Imran terms exports, tax collection must for growth

  • Pakistan, China discuss bilateral economic, trade ties

    Pakistan, China discuss bilateral economic, trade ties

    BEIJING: Pakistan Prime Minister Imran Khan held wide-ranging talks with Li Keqiang, Premier of the State Council of the People’s Republic of China on Saturday.

    The two leaders reviewed the entire gamut of bilateral ties including discussions on the bilateral economic and trade relations, onward march of CPEC and important issues of regional and global concern.

    READ MORE: PM Imran invites Chinese companies to invest in Pakistan

    Prime Minister Imran Khan was accompanied by the Foreign Minister; Minister for Finance; Minister for Planning, Reform and Special Initiatives; Minister for Information and Broadcasting and senior officials.

    Congratulating Premier Li for organizing Beijing Winter Olympics, the Prime Minister highlighted that strategic ties between Pakistan and China served the fundamental interests of the two countries and were a factor of peace and stability in the region. He added that successful celebrations of the 70th anniversary of the establishment of diplomatic relations held last year injected a new impetus to bilateral friendship.

    READ MORE: Prime Minister Imran kicks off visit to China

    The Prime Minister thanked the Chinese government for support and assistance to Pakistan in dealing with the COVID-19 pandemic and timely supply of vaccines.

    The Prime Minister appreciated the transformational impact of CPEC on Pakistan’s infrastructure, energy, socio-economic development and improvement in livelihoods of the people. He underlined that Pakistan was committed to high quality development of CPEC through its mutually reinforcing industrial, trade, health, digital and green corridors.

    READ MORE: PM Imran terms exports, tax collection must for growth

    The Prime Minister shared with Premier Li the measures taken by the government to provide policy guidance and support for enhanced Chinese investments in the CPEC SEZs and Special Technology Zones, and for safety and security of Chinese nationals, projects and institutions in Pakistan.

    Exchanging views on the regional security situation, the Prime Minister highlighted the serious situation in IIOJK as well as the importance of urgent action by the international community to alleviate sufferings of the Kashmiri people. He also underscored the importance of Pakistan and China working together to promote shared objectives of peace, stability and development in Afghanistan and regional connectivity.

    READ MORE: Timelines for CPEC projects should be adhered to: PM

    The two leaders agreed to work closely on further deepening bilateral economic engagement and reaffirmed their commitment to further advance the multifaceted strategic cooperative ties and building the Pakistan-China Community of Shared Future in the New Era.

  • PM Imran invites Chinese companies to invest in Pakistan

    PM Imran invites Chinese companies to invest in Pakistan

    BEIJING (China): Prime Minister Imran Khan on Friday invited Chinese companies to invest in Pakistan and take benefit from the business-friendly policies of the government.

    The prime minister, who held a series of meetings with the executives of Chinese State-owned and private corporate sectors, said Pakistan was offering conducive environment for investment in Special Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC).

    READ MORE: Prime Minister Imran kicks off visit to China

    In his remarks, the prime minister appreciated the keen interest of the Chinese companies to invest in Pakistan.

    The executives who met the prime minister included leadership of China Communication Construction Company (CCCC), Huazhong Technology, Zhejiang Seaport Group, Challenge Apparel, Hunan Sunwalk Group, Royal Group, China Road and Bridge Corporation (CRBC), Zhengbang Group and China Machinery Engineering Corporation (CMEC).

    READ MORE: PM Imran terms exports, tax collection must for growth

    The corporate leaders briefed the prime minister on the progress of their on-going projects in Pakistan.

    They evinced keen interest in expanding investments in Pakistan in projects related to recycling of metals and paper, energy, textile, fibre-optics networks, housing, dairy and water management.

    READ MORE: Timelines for CPEC projects should be adhered to: PM

    The CCCC is a leading global construction and infrastructure development company; Huazhong Technology, specialises in integrated papermaking equipment; Zhejiang Seaport Group is one of China’s largest port operator; Challenge Fashions is a leading textile company; Hunan Sunwalk’s core business is in communications, 3D printing and construction; Royal Group is China’s largest buffalo milk producer; CRBC focuses in civil engineering and construction projects; Zhengbang Group is Jiangxi Province’s largest agricultural enterprise; and CMEC is one of Chinese top agro-industrial machinery company.

    The prime minister was joined in the meetings by federal ministers, advisers and senior officials.

    READ MORE: Work on CPEC projects in full swing: Asad Umar

  • Saudi oil facility for Pakistan to start soon

    Saudi oil facility for Pakistan to start soon

    ISLAMABAD: Saudi Arabia to operationalize soon the oil facility to Pakistan, it was agreed at a meeting on Thursday.

    Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office on Thursday.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    During the meeting, it was agreed to operationalize the Saudi Oil Facility at the earliest.

    The Financing Agreement worth $ 1.2 billion for import for petroleum products was signed on November 29, 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan.

    As per Financing Agreement, the SFD will extend financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis.

    Both the sides discussed ongoing development projects and new initiatives.

    READ MORE: SBP signs $3bn deposit agreement with Saudi Fund

    The Minister for Economic Affairs appreciated the Saudi support in the priority development areas, said a press release received here today.

    They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP).

    Saudi Fund for Development (SFD) is providing financial assistance for various development projects in the areas of Energy, Health, Education and Infrastructure.

    Most recently, the SFD has committed to provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project.

    The Saudi Ambassador assured of continued support at all level to further strengthen the bilateral economic cooperation between the two brotherly countries.

    The Saudi Ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.

  • Pakistan’s forex reserves decline to $22.085 billion

    Pakistan’s forex reserves decline to $22.085 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves declined by $397 million to $22.085 billion by week ended January 28, 2022, the central bank said on Thursday.

    The country’s foreign exchange reserves were at $22.482 billion by week ended January 21, 2022, the State Bank of Pakistan (SBP) said.

    The official reserves of the central bank also declined by $462 million to $15.728 billion by week ended January 28, 2022 as compared with $16.19 billion a week ago. The SBP attributed the decline to external and other repayments.

    The foreign exchange reserves held by commercial banks however increased by $65 million to $6.357 billion by week ended January 28, 2022 as compared with $6.292 billion a week ago.

    Pakistan’s forex reserves plunge by $866 million
  • IMF board approves $1.059 billion tranche for Pakistan

    IMF board approves $1.059 billion tranche for Pakistan

    ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Wednesday approved sixth tranche under $6 billion Extended Fund Facility (EFF) for Pakistan.

    Finance Minister Shaukat Tarin announced this in a Tweet. “I am pleased to announce that IMF Board has approved 6th tranche of their program for Pakistan.”

    https://twitter.com/shaukat_tarin/status/1488928059562545159

    Pakistan will get around $1.059 billion after the IMF Board approval. The IMF on November 21, 2021 stated that its staff had completed the sixth review and the release of next tranche was subject to approval from the executive board, which was to be scheduled to meet on January 12, 2021.

    READ MORE: IMF wants Pakistan to improve tax to GDP ratio to 20%

    The IMF also linked the approval of the next tranche with certain conditions, including autonomy of State Bank of Pakistan (SBP) and withdrawal of tax exemptions to the tune of around Rs350 billion.

    READ MORE: Pakistan to emerge as food surplus country: PM Imran

    Pakistan had requested to extend the date for scheduled meeting of the IMF board up to January 28, 2022 and later it was further requested to extend up to February 02, 2022.

    READ MORE: IMF intervention to add economic miseries of Pakistan

    In meantime, the government presented and got approval the Finance (Supplementary) Act, 2022 and SBP Amendment Act to comply with the conditions of the IMF.

    Analysts said that the transfer of latest IMF tranche would help the country to improve foreign exchange reserves besides it would also support the Pak Rupee (PKR).

    READ MORE: SBP responds to misconceptions on amendments to State Bank Bill

  • Pakistan’s trade deficit widens by 92% in seven months

    Pakistan’s trade deficit widens by 92% in seven months

    ISLAMABAD: Pakistan’s trade deficit has widened by 92 per cent during first seven months (July – January) of fiscal year 2021/2022, official statistics revealed on Wednesday.

    The trade deficit ballooned to $28.8 billion during the first seven months of the current fiscal year as compared with $15 billion in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

    READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22

    The exports exhibited a growth of 24 per cent to $17.67 billion during the period under review as compared with $14.25 billion in the same period of the last fiscal year.

    Meanwhile, the import bill of the country surged by 59 per cent to $46.47 billion during first seven months of the current fiscal year as compared with $29.25 billion in the corresponding months of the last fiscal year.

    READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion

    The trade deficit widened by 26.49 per cent to $3.36 billion in the month of January 2022 as compared with the deficit of $2.66 billion in the same month of the last year.

    The exports increased by 18.69 per cent to $2.55 billion in January 2022 as compared with $2.145 billion in the same month of the last year.

    Similarly, the imports grew by 23 per cent to $5.9 billion in the month of January 2022 as compared with $4.8 billion in the same month of the last year.

    READ MORE: Pakistan’s import bill surges by 65% in four months

    However, imports registered a massive decline of 22 per cent to $5.9 billion in January 2022 as compared with $7.58 billion in the month of December 2021.

    Similarly, exports fell by 8 per cent to $2.54 billion in January 2022 as compared with $2.76 billion in the previous month.

    The trade deficit recorded a decline of 30 per cent to $3.36 billion in January 2022 as compared with the deficit of $4.81 billion in December 2021.

    READ MORE: Pakistan’s trade deficit doubles in first quarter