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  • Foreign investment falls by 57% in 10MFY22: SBP

    Foreign investment falls by 57% in 10MFY22: SBP

    KARACHI: The inflow of foreign investment into Pakistan fell by over 57 per cent during first 10 months (July – April) 2021/2022 owing to political uncertainty and change of government during the period, according to State Bank of Pakistan (SBP).

    The total inflow of foreign investment during the period fell to $1.57 billion as compared with $3.66 billion in the corresponding period of the last fiscal year, according to data released by the SBP on May 19, 2022.

    READ MORE: Foreign investment into Pakistan surges by 131%

    Experts believed the political uncertainty in the country and lesser offering of international bonds during the period resulted in massive fall of total foreign investment.

    The inflows in debt securities under the head of foreign public investment recorded 81 per cent decline to $473 million during first ten months of the current fiscal year as compared with $2.46 billion in the corresponding period of the last fiscal year.

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

    The other component of inflows under foreign private investment fell by 8.6 per cent to $1.096 billion during first 10 months of the current fiscal year as compared with $1.20 billion in the corresponding months of the last fiscal year.

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

    The foreign direct investment eased to $1.46 billion during July – April 2021/2022 as compared with $1.48 billion in the same period of the last fiscal year.

    The portfolio investment recorded a decline of 28.3 per cent during the period. The portfolio investment under equity securities witnessed an outflow of $359 million during the first ten months of the current fiscal year as compared with $280 million in the corresponding period of the last fiscal year.

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

  • Import ban not to apply on L/C issued before May 19, 2022

    Import ban not to apply on L/C issued before May 19, 2022

    ISLAMABAD: The ministry of commerce on Saturday issued a clarification stating that the import ban will not be applicable on Bill of Lading (B/L) or Letter of Credit (L/C) issued prior to ban decision.

    In order to address the balance of payments (BOP) situation in the country resulting from the increase in current account deficit (CAD) during the first 10 month of the current fiscal year 2021/2022, import of certain luxury and non-essential items has been prohibited, vide SRO 598(1)/2022 dated May 19, 2022.

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

    However, to address the concerns of certain business quarters with regard to the implementation of the said SRO, it is clarified that in terms of proviso to the paragraph-4 of the Import Policy Order, 2022, the imports where Bill of Lading (B/L) or irrevocable Letter of Credit (L/C) was issued or established prior to the notification of the SRO 598(1)/2022 dated 19.05.2022 shall be exempt from the operation of the SRO.

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

    Hence, imported goods for which B/L or irrevocable L/C was established prior to May 19, 2022 shall not be subject to the prohibitions contained in the said SRO.

    Moreover, the business community and the general public are invited to share their concerns, proposals or any anomalies with respect to the said SRO at [email protected]. Ministry of Commerce would respond to them at the earliest.

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

    Previously, the ministry of commerce amended Import Policy Order, 2022 through SRO 587(I)/2022 to ban import of luxury and non-essential items.

    The government banned the import of items, included: aerated water and juices; automotive in Completely Built Unit (CBU); sanitary and bathroom wares; carpets (excluding from Afghanistan); Chandeliers and Lightening Devices or Equipment; Chocolates; cigarettes; corn flakes etc.; cosmetics and shaving items; tissue papers; crockery; decoration / ornamental articles; dog and cat food; doors and window frames; fish; footwear; fruits and dry fruits; furniture; home appliances CBU; ice cream; jams, jellies and preserved fruits; luxury leather jackets and apparels; matters and sleeping bags; frozen or processed meat; mobile phones CBU; musical instruments; pasta etc.; arms and ammunition; shampoos, sunglasses; tomato ketchup and sauces; and travelling bags and suitcases.

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

  • ECC approves Rs55.48bn for price differential claims of OMCs

    ECC approves Rs55.48bn for price differential claims of OMCs

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved an amount of Rs55.48 billion for payment of price differential claims of Oil Marketing Companies (OMCs).

    Federal Minister for Finance and Revenue Miftah Ismail presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

    READ MORE: Govt. decides to continue subsidy on petroleum prices

    Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance & Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

    Petroleum Division submitted a summary for reimbursement of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries.

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

    The price differential is to be paid to the Oil Marketing Companies/Refineries by the Government as a subsidy in the wake of Government’s decision to keep the petroleum products’ prices fixed at the level notified on March 01, 2022.

    The ECC after deliberation approved supplementary grant of Rs. 55.48 billion for disbursement of PDC to OMCs/Refineries for the first fortnight of May, 2022.

    READ MORE: New government keeps petroleum prices unchanged

    Due to continuously rising trend of oil prices in the international market, the quantum of subsidy has been on higher side.

    Ministry of Industries and Production submitted a summary on import of Urea and presented that the government intends to create better stock for Urea fertilizer to ensure continuity of Urea supply during next financial year and requested for allowing import of Urea from international market in order to stabilize the local market.

    The ECC after discussion allowed Trading Corporation of Pakistan (TCP) to explore the possibility of import of 200,000 MT of Urea on G2G basis and on deferred payment.

    READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

  • FAP suggests incentive to undeclared $3 billion

    FAP suggests incentive to undeclared $3 billion

    People have an undeclared amount of $2 billion to $3 billion foreign currency in their homes and personal bank lockers. They want to exchange with Pakistani Rupee (PKR) but due to certain restrictions they are unable to bring it out. The government should provide legal shelter for declaration of concealed dollars, which will help to boost the foreign exchange reserves.

    READ MORE: Pakistan’s forex reserves fall to $16.37 billion

    Malik Muhammad Bostan, President, Forex Association of Pakistan (FAP) commented these at a conference on present economic woes, especially falling rupee and depletion of foreign exchange reserves.

    “Many people taking advantage of Economic Reform Act purchased huge amount of dollars from the local market during the period of 1993 to 2008 and deposited in the banks of foreign countries or retained the dollars at their homes or lockers,” he said.

    READ MORE: Pakistan’s forex reserves dip to $16.55 billion

    Prior to year 2008, there were many unlicensed money exchange companies were operating under Economic Reform Act. Those exchange companies were allowed to sale and purchase foreign currency without ‘Know Your Customer (KYC)’. SBP licensed exchange companies were required to conduct KYC on sale/purchase of above $10,000.

    “Now those people want to sale their dollars through KYC but without identification,” he said, adding that the under Financial Action Task Force (FATF) conditions, the banks are required to obtain identification on sale/purchase of above $15,000.

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

    “If this condition is relaxed then exchange companies will able to purchase huge amount of dollars and other foreign currency from public,” Bostan said.

    FAP President said the government should allow purchase of gold from local market. “They may sale gold in international market and surrender foreign currency in the local market.”

    Pakistan forex reserves inch up to $17.045 billion

    There is need to channelize foreign currency invested in cryptocurrency, he said and demanded that the government should provide legal cover to bring foreign currency back home.

    He suggested that banks should stop forward dollar selling and should be allowed to sale dollar equivalent to purchase.

    Bostan said the State Bank of Pakistan (SBP) should imposed 100 per cent cash margin on all imports except for necessary items.

    Pakistan’s forex reserves deplete to $17.03 billion

  • Pakistan receives record monthly high $3 billion as remittances

    Pakistan receives record monthly high $3 billion as remittances

    KARACHI: Pakistan has received a monthly record workers’ remittance of $3.13 billion in the month of April 2022, the central bank said on Friday.

    The State Bank of Pakistan (SBP) said the remittances grew by 12 per cent in April 2022 to $3.125 billion as compared with $2.79 billion received in April 2021. Meanwhile, the country received $2.81 billion in the month of March 2022.

    READ MORE: SBP receives $2.2 bn as workers remittances in February

    The inflow of remittances recorded 7.6 per cent growth to $26.08 billion during the first 10 months (July – April) 2021/2022 when compared with $24.23 billion in the corresponding months of the last fiscal year.

    Pakistanis living in the USA have sent $2.556 billion during July – April 2021/2022, which is 20 per cent higher when compared with $1.4 billion in the same period of the last fiscal year.

    READ MORE: Remittances increase to record $18 billion in 7 months

    The SBP received an amount of $3.67 billion during the first ten months of the current fiscal year from Pakistani workers living in the UK as compared with $1.98 billion in the corresponding period of the last fiscal year, showing an increase of 9.9 per cent.

    Pakistanis living in Saudi Arabia sent an amount of $6.41 billion during the period under review as compared with $5.32 billion in July – April 2020/2021, showing a growth of 1.6 per cent.

    READ MORE: Pakistani overseas workers send $15.8 billion in 1HFY22

    The inflows of remittances from the UAE, however, posted a decline of 3.6 per cent to $4.90 billion during the first 10 months of the current fiscal year as compared with $5.08 billion in the same period of the last fiscal year.

    Pakistanis living in the EU countries have sent an amount of $2.80 billion during the first ten months of the current fiscal year as compared with $2.21 billion in the same period of the last fiscal year, showing a growth of 27.1 per cent.

    READ MORE: PM Imran launches incentive program for remittances

  • Pakistan’s forex reserves fall to $16.37 billion

    Pakistan’s forex reserves fall to $16.37 billion

    KARACHI: Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by week ended May 6, 2022, according to data released by the State Bank of Pakistan (SBP) on Thursday.

    The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    READ MORE: Pakistan’s forex reserves dip to $16.55 billion

    The country’s foreign exchange reserves hit record high at $27.228 billion by week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by week ended May 6, 2022 as compared with $10.499 billion a week ago.

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

    The SBP reserves reached to record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high.

    The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    The foreign exchange reserves of held by commercial banks however inched up by $13 million to $6.067 billion by week ended May 6, 2022 as compared with $6.054 billion a week ago.

  • Pakistan gives no trade relaxation to India

    Pakistan gives no trade relaxation to India

    ISLAMABAD: Pakistan on Wednesday clarified that it has not given any relaxation in trade with India. The clarification has been issued by the ministry of commerce.

    It said that the Ministry of Commerce manages 57 Trade Missions in 46 countries which includes the post of Minister (Trade and Investment) in New Delhi, India.

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

    The Post of Minister (Trade and Investment) in New Delhi exists for more than two decades and has no connection with the operationalization of trade with India or otherwise in the current context.

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

    The current cycle for selection of Trade and Investment Officers (TIOs) including New Delhi was initiated in December, 2021 and the final recommendations of the Interview Board were sent to Prime Minister’s Office on 01-04-2022 i.e. during previous Government.

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

    The present Government has given the final approval on the recommendations of previous Government for selection of 15 TIOs.

    The appointment of Minister (Trade and Investment) New Delhi, therefore, may not be seen in the context of any relaxation of trade restrictions with India.

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

  • 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.