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  • Pakistan’s imports hit record high at $65.47 bn in 10 months

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

    ISLAMABAD: Pakistan’s imports reached to record high at $65.49 billion during first 10 months (July – April) 2021/2022, according to data released by Pakistan Bureau of Statistics (PBS).

    The import bill increased by 46.41 per cent to $65.47 billion during first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the current fiscal year.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    On the other hand, the exports of the country registered a growth of 25.46 per cent to $26.23 billion during the period under review as compared with $20.9 billion in the same period of the last fiscal year.

    The trade deficit sharply widened by 64.79 per cent to $39.26 billion during July – April 2021/2022 as compared with $23.83 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    The exports of the country recorded an increase of 29.53 per cent to $2.87 billion in the month of April 2022 as compared with $2.22 billion in the same month of the last year.

    The import bill in April 2022 recorded an increase of 26.19 per cent to $6.62 billion as compared with $5.42 billion in the same month last year.

    The trade deficit ballooned by 23.74 per cent to $3.74 billion in April 2022 as compared with $3.02 billion in April 2021.

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

    Similarly, the exports recorded an increase of 3.27 per cent to $2.87 billion in April 2022 when compared with $2.78 billion in March 2022.

    The import bill recorded an increase of 2.96 per cent to $6.62 billion in April 2022 as compared with $6.43 billion in the preceding month.

    The trade deficit widened by 2.72 per cent to $3.74 billion in April 2022 when compared with $3.64 billion in March 2022.

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

  • Pakistan’s forex reserves dip to $16.55 billion

    Pakistan’s forex reserves dip to $16.55 billion

    KARACHI: Pakistan’s foreign exchange reserves fell by $115 million to $16.553 billion by week ended April 30, 2022, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The foreign exchange reserves of the country were $16.668 billion a week ago i.e. April 30, 2022.

    READ MORE: SBP forex reserves shrink to 1.69 months import cover

    The official foreign exchange reserves of the SBP declined by $109 million to $10.449 billion by week ended April 30, 2022 as compared with $10.558 billion a week ago.

    The official reserves of the central bank witnessed a consistent decline during past couple of months due to external debt repayments. The SBP reserves have declined below two-month cover for import payments.

    The foreign exchange reserves held by commercial banks also fell by $56 million to $6.054 billion from previous week’s level of $6.11 billion.

  • Pakistan’s inflation sharply up by 13.4% in April 2022

    Pakistan’s inflation sharply up by 13.4% in April 2022

    ISLAMABAD: Pakistan’s headline inflation based on Consumer Price Index (CPI) increased sharply by 13.4 per cent in April 2022, according to details released on Sunday.

    Pakistan Bureau of Statistics (PBS) said that CPI inflation General, increased by 13.4 per cent on year-on-year basis in April 2022 as compared to an increase of 12.7 per cent in the previous in March 2022 and 11.1 per cent in April 2021.

    READ MORE: Pakistan’s headline inflation increases by 12.7% in March

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.8 per cent in March 2022 and increase of 1.0 per cent in April 2021.

    CPI inflation Urban, increased by 12.2 per cent on year-on-year basis in April 2022 as compared to an increase of 11.9 per cent in the previous month and 11.0 per cent in April 2021.

    READ MORE: Food inflation rural increases by 14.6% in February 2022

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.7 per cent in the previous month and increase of 1.3 per cent in April 2021.

    CPI inflation Rural, increased by 15.1 per cent on year-on-year basis in April 2022 as compared to an increase of 13.9 per cent in the previous month and 11.3 per cent in April 2021.

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 1.0 per cent in the previous month and increase of 0.6 per cent in April 2021.

    READ MORE: Pakistan’s inflation climbs up 24-month high in January

    Sensitive Price Indicator (SPI) inflation on YoY increased by 14.2 per cent in April 2022 as compared to an increase of 13.0 per cent a month earlier and an increase of 21.3 per cent in April 2021.

    On MoM basis, it increased by 1.5 per cent in April 2022 as compared to increase of 0.6 per cent a month earlier and increase of 0.4 per cent in April 2021.

    READ MORE: Sales tax exempted on all petroleum products

    Wholesale Price Index (WPI) inflation on YoY basis increased by 28.1 per cent in April 2022 as compared to an increase of 23.8 per cent a month earlier and an increase of 16.6 per cent in April 2021.

    WPI inflation on MoM basis increased by 3.2 per cent in April 2022 as compared to increase of 3.9 per cent a month earlier and a decrease of -0.4 per cent in corresponding month i.e. April 2021.

  • SBP forex reserves shrink to 1.69 months import cover

    SBP forex reserves shrink to 1.69 months import cover

    KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) reduced to provide only 1.69 months covers for import payment.

    According to details released by the SBP, the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago.

    READ MORE: Pakistan forex reserves inch up to $17.045 billion

    The import bill of Pakistan was $6.425 billion in March 2022. On the basis of import bill in March 2022 the import cover is only for 1.69 months.

    The SBP attributed the decline in official foreign exchange reserves to external debt and other payments.

    The total foreign exchange reserves of the country declined by $377 million during the week under review.

    The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

    Meanwhile, the foreign exchange reserves held by commercial banks fell by $49 million to $6.11 billion by week ended April 23, 2022 as compared with $6.159 billion a week ago.

  • Pakistan surrenders to IMF, agrees to remove subsidies

    Pakistan surrenders to IMF, agrees to remove subsidies

    KARACHI: Pakistan government has agreed to remove subsidies on various items granted by the previous government in order to continue loan program under International Monetary Fund (IMF).

    The IMF issued the following statement on April 24, 2022:

    “We had very productive meetings with the Finance Minister of Pakistan Miftah Ismail over Pakistan’s economic developments and policies under the Extended Fund Facility (EFF) program.

    “We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review.

    READ MORE: Tax amnesty launched for setting up new industrial units

    “Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

    “The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives.”

    The previous PTI government had announced to provide massive relief to the public by deciding not to increase the petroleum prices and electricity tariff.

    READ MORE: IMF to agree on Pakistan’s industrial promotion package

    Imran Khan, chairman of Pakistan Tehreek I Insaaf and recently removed from the slot of Prime Minister through a no-confidence vote on February 28, 2022 announced reduction in prices of petroleum products and electricity tariff and further announced to freeze the reduced rates till upcoming federal budget 2022/2023.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    The previous government provided the relief by slashing prices of petroleum and electricity to provide massive relief to the people.

    The government is absorbing losses of billions of rupee every month due to subsidies supply of petroleum products and electricity.

    The new government, although, retained the prices fixed by the previous government for the fortnight started on April 16, 2022. However, recent development clearly indicated that the present government had agreed to the IMF to withdraw the incentives given to the public of the Pakistan.

    READ MORE: New government keeps petroleum prices unchanged

    Analysts believed that withdrawal of subsidy will be inflationary.

  • Pakistan forex reserves inch up to $17.045 billion

    Pakistan forex reserves inch up to $17.045 billion

    KARACHI: Pakistan’s foreign exchange reserves inched up by $17 million to $17.045 billion by week ended April 16, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $17.028 billion a week ago.

    The official foreign exchange reserves of the State Bank also improved by $36 million to $10.886 billion by the week ended April 16, 2022 as compared with $10.85 billion a week ago.

    The foreign exchange held by commercial banks, however, fell by $19 to $6.157 billion by week ended April 16, 2022 as compared with $6.178 billion a week ago.

    Pakistan’s foreign exchange reserves have declined by around $10 billion in the past seven months owing to extreme pressure of dollar demand for import payments and external repayment of government debt.

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021.

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  • Pakistan’s FDI falls to $1.28 billion in July – March

    Pakistan’s FDI falls to $1.28 billion in July – March

    KARACHI: The inflow of foreign direct investment (FDI) into Pakistan has declined by two per cent to $1.28 billion during first nine months (July-March) 2021/2022, according to detail released by the State Bank of Pakistan (SBP) on Tuesday.

    READ MORE: Foreign investment into Pakistan surges by 131%

    The country recorded the FDI inflow to the tune of $1.31 billion in the corresponding months of the last fiscal year.

    The portfolio investment recorded 30 per cent decline during the first nine months of the fiscal year 2021/2022. The capital market witnessed outflow of $341.7 million during the period under review as compared with $262.7 million during the same period of the last fiscal year.

    READ MORE: Foreign investment surges by 176% during July – January

    The total inflow of private foreign investment recorded 10 per cent decline to $943.4 million during July – March 2021/2022 as compared with $1.048 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan’s foreign investment surges by 73% in 5 months

    The country witnessed massive jump in inflows under debt securities. The country received funds worth $502.6 million through sale of securities in the international markets during the first nine months of the current fiscal year as compared with $3.5 million outflows in the same period of the last fiscal year.

    The total foreign investment, including debt securities, grew by 38.4 per cent to $1.446 billion during July – March 2021/2022 as compared with $1.045 billion in the corresponding months of the last fiscal year.

    READ MORE: Carrefour enhances Pakistan investment to Rs10.5 billion

  • Notification issued to raise 10% in pension

    Notification issued to raise 10% in pension

    ISLAMABAD: The Finance Division has issued a notification to implement the decision of the government to raise 10 per cent increase in pension to pensioners of the federal government.

    Prime Minister Shahbaz Sharif has sanctioned an increase of 10 per cent of net pension with effect from April 01, 2022 until further orders to all civil pensioners of the federal government including civilians paid from defence estimates as well as retired armed forces personnel and civil armed forces personnel.

    READ MORE: SBP’s instructions on pensioners biometric verification

    The finance division explained that for the purpose of admissibility of increase in pension sanctioned the term ‘Net Pension’ as pension being drawn minus medical allowance.

    The increase will also be admissible on family pension granted under the pension-cum-gratuity scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extraordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

    READ MORE: EOBI to launch self assessment scheme for employers

    The finance division said that if the gross pension sanctioned by the federal government is shared with any government in accordance with the rules laid down in Part-IV of Appendix-III to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the federal government and the other government concerned on proportionate basis.

    READ MORE: Mandatory biometric verification restored for pensioners

    “The increase in pension sanctioned will not be admissible on special additional pension allowed in lieu of pre-retirement orderly allowance and monetized value of a driver or an orderly,” it said.

    The benefit of increase in pension sanctioned will also be admissible to those civil pensioners of the federal government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after August 15, 1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts.

    The payment will be made at the applicable rate of exchange, it said.

    READ MORE: Pensioners living abroad require presenting life certificate

  • Pakistan receives highest ever monthly remittances

    Pakistan receives highest ever monthly remittances

    KARACHI: Overseas Pakistanis workers have sent $2.8 billion during March 2022, which is the highest ever monthly remittances received, the State Bank of Pakistan (SBP) said on Thursday.

    “With $2.8 billion of inflows during March 2022, workers’ remittances continued their unprecedented run of remaining above $2 billion since June 2020. This is the highest ever monthly level for workers’ remittances,” the SBP added.

    The latest number of remittances showed the inflows grew by 28.3 per cent in March 2022 when compared with $2.19 billion in February 2022.

    Meanwhile, the inflows also grew by 3.2 per cent in March 2022 when compared with $2.72 billion in the same month of the last year.

    Analysts attributed the record remittances to the holy month of Ramazan and festival of Eid ul Fitr. They said that overseas Pakistanis send money to their relatives ahead of festival. Furthermore, the worldwide high prices of end products also one of the reasons for record remittances during March 2022.

    Overall the country received $22.95 billion during July – March 2021/2022 as compared with $21.44 billion in the corresponding months of the last fiscal year, showing an increase of 7 per cent.

    Remittances inflows during March 2022 were mainly sourced from Saudi Arabia ($678 million), United Arab Emirates ($515 million), United Kingdom ($401 million) and United States of America ($300 million).

    — SBP receives $2.2 bn as workers remittances in February

    — Remittances increase to record $18 billion in 7 months

    — Exchange companies get incentive for dollar surrender

    — Incentives approved for exchange companies on dollar surrender

    — Pakistan’s remittances fall by 6.6% in November 2021