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  • Pakistan, Saudi Fund sign debt service suspension pacts

    Pakistan, Saudi Fund sign debt service suspension pacts

    ISLAMABAD: Pakistan and Saudi Fund for Development (SFD) have signed debt service suspension agreements amounting $846 million, a statement said on Thursday.

    The agreements have been signed under the G-20 Debt Service Suspension Initiative (DSSI) Framework.

    Nawaf bin Saeed Al-Malkiy, Ambassador of the Kingdom of Saudi Arabia to Pakistan witnessed the signing ceremony held in Islamabad.

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

    Dr. Saud Ayid R. Alshammari, Director General for Asia represented the SFD in the signing ceremony.

    This amount which was due to be paid during the testing period from May 2020 to December 2021 will now be repaid over a period of six years starting from 2022 in semi-annual installments.

    READ MORE: Saudi oil facility for Pakistan to start soon

    Due to the support extended by the Saudi Fund for Development – one of the major bilateral development partners of Pakistan – along with other bilateral creditor countries, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and socioeconomic needs of the Islamic Republic of Pakistan.

    The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is $ 3,688 million.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of $ 2,088 million.

    The signing of agreements with the Saudi Fund for Development brings the total rescheduled amount to $ 2,934 million while negotiations for the remaining $ 754 million are underway.

    The agreements for this amount are expected to be signed with respective bilateral development partners within the current fiscal year.

    READ MORE: PM Imran thanks Saudi assistance; dollar retreats

  • Pakistan’s forex reserves decline to $22.875 billion

    Pakistan’s forex reserves decline to $22.875 billion

    KARACHI: Pakistan’s total liquid foreign exchange reserves have declined by $351 million to $22.875 billion by week ended February 25, 2022.

    The foreign exchange reserves of the country were at $23.226 billion a week ago i.e. February 18, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the central bank fell by $344 million to $16.462 billion by week ended February 25, 2022 as compared with $16.806 billion a week ago.

    The foreign exchange reserves held by commercial banks also eased by $7 million to $6.413 billion by week ended February 25, 2022 as compared with $6.420 billion a week ago.

    Pakistan’s foreign exchange reserves dip to $23.226 bn
  • Pakistan’s trade deficit widens to $32 billion in 8MFY22

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

    ISLAMABAD: Pakistan’s trade deficit has widened to around $32 billion in first eight months (July – February) 2021/2022 8MFY22, according to official data released on Wednesday.

    The trade deficit widened by 82.26 per cent during the period under review as compared with the deficit of $17.53 billion in the corresponding period of the last fiscal year, showed the data released by Pakistan Bureau of Statistics (PBS).

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

    The country’s exports registered an increase of 26 per cent to $20.55 billion during first eight months of the current fiscal year as compared with $16.32 billion in the same period of the last fiscal year.

    The import bill surged by 55 per cent to $52.5 billion during July – February 2021/2022 as compared with $33.86 billion in the corresponding period of the last fiscal year.

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

    The trade deficit ballooned by 22 per cent to $3.1 billion in February 2022 as compared with the deficit of $2.53 billion in the same month of the last year.

    The exports during the month of February 2022 recorded a sharp increase of 36 per cent to $2.81 billion as compared with $2.07 billion in the same month of the last year.

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

    The import bill registered an increase of 28.3 per cent to $5.9 billion in February 2022 as compared with $4.6 billion in the same month of the last year.

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

  • Food inflation rural increases by 14.6% in February 2022

    Food inflation rural increases by 14.6% in February 2022

    ISLAMABAD: Food inflation based on consumer price index (CPI) has increased by 14.6 per cent in February 2022 for people living in rural areas as compared with 11.8 per cent in the previous months, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    Meanwhile, the food inflation increased by 14.3 per cent in February 2022 for people living in urban areas as compared with 13.3 per cent in the previous month.

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

    However, non-food inflation for rural areas increased by 12.2 per cent in February 2022 as compared with 13.9 per cent in the previous month. The non-food inflation also grew by 9.9 per cent for people living in urban areas in February 2022 as compared with 12.8 per cent in the previous month.

    CPI inflation general, increased by 12.2 per cent on year-on-year basis in February 2022 as compared to an increase of 13.0 per cent in the previous month and 8.7 per cent in February 2021. On month-on-month basis, it increased by 1.2 per cent in February 2022 as compared to increase of 0.4 per cent in the previous month and increase of 1.8 per cent in February 2021.

    READ MORE: Sales tax exempted on all petroleum products

    CPI inflation general for urban areas increased by 11.5 per cent on year-on-year basis in February 2022 as compared to an increase of 13.0 per cent in the previous month and 8.6 per cent in February 2021. On month-on-month basis, it increased by 0.9 per cent in February 2022 as compared to increase of 0.1 per cent in the previous month and increase of 2.3 per cent in February 2021.

    CPI inflation general for rural, increased by 13.3 per cent on year-on-year basis in February 2022 as compared to an increase of 12.9 per cent in the previous month and 8.8 per cent in February 2021. On month-on-month basis, it increased by 1.5 per cent in February 2022 as compared to increase of 0.9 per cent in the previous month and increase of 1.1 per cent in February 2021.

    READ MORE: PM Imran reduces, freezes POL prices

    Inflation based on Sensitive Price Indicator (SPI) on YoY increased by 18.7 per cent in February 2022 as compared to an increase of 20.9 per cent a month earlier and an increase of 11.9 per cent in February 2021. On MoM basis, it increased by 1.3 per cent in February 2022 as compared to decrease of -0.8 per cent a month earlier and increase of 3.1 per cent in February 2021.

    READ MORE: Mini-budget likely to push up inflation: SBP

    Wholesale Price Indicator (WPI) on YoY basis increased by 23.6 per cent in February 2022 as compared to an increase of 24.0 per cent a month earlier and an increase of 9.5 per cent in February 2021. WPI inflation on MoM basis increased by 1.9 per cent in February 2022 as compared to increase of 0.6 per cent a month earlier and an increase of 2.2 per cent in corresponding month i.e. February 2021.

  • Pakistan cuts petroleum prices amid Russia-Ukraine War

    Pakistan cuts petroleum prices amid Russia-Ukraine War

    ISLAMABAD: Pakistan on Monday decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

    The finance division issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE; Petroleum prices kept unchanged for next fortnight

    In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

    “The prime minister has not only rejected the increase but also announced to decrease the prices of petroleum products by Rs10 per liter in his address to the nation in order to provide maximum relief to the consumers, despite the limited fiscal space,” it added.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

    The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

    The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

    READ MORE: Prices of all POL products increased to wish New Year

    The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

    Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

  • PM Imran reduces, freezes POL prices

    PM Imran reduces, freezes POL prices

    ISLAMABAD: Prime Minister Imran Khan on Monday announced reduction in prices of petroleum products and electricity tariff and further announced to freeze the reduced rates till upcoming federal budget.

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

    In his address to the nation on Monday, he said prices of petrol and diesel will be reduced by ten rupees per litre and electricity by five rupees per unit.

    The Prime Minister also announced to award internship to all jobless graduates worth 30,000 rupees per month. He said 26,000 scholarships, costing 38 billion rupees will be given to students.

    He said his recent visits to China and Russia will have far reaching impact on country’s economy.

    The Prime Minister said we are going to import two million tons of wheat and gas from Russia, while we have better understanding on the second phase of China-Pakistan Economic Corridor.

    Imran Khan said he believes in an independent policy in the best interest of the people of Pakistan.

    He urged the people to not vote for a party, whose leader is involved in corruption as such parties cannot pursue an independent foreign policy.

    PM Imran, President Putin discuss regional development
  • Notification issued for implementing 15% salary increase

    Notification issued for implementing 15% salary increase

    ISLAMABAD: The finance ministry has notified an office memorandum for the increase of 15 per cent in the salary of federal government employees from March 01, 2022.

    According the memorandum dated February 23, 2022, the employees of the federal government will get disparity reduction allowance at 15 per cent of the basic pay scales 2017 with effect from March 01, 2022.

    The federal government on February 10, 2022 announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.

    READ MORE: Federal government announces 15% increase in salaries

    The latest memorandum stated that the allowance shall be admissible to civil employees in BPS-1 to BPS-19 of the federal government, (including employees of the federal secretariat, attached departments and subordinate offices) who have never been allowed additional allowance / allowances equal to or more than 100 per cent of the basic pay (whether frozen or not) or performance allowance subject to the following conditions:

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

    a. This allowance will not be admissible to the employees of the organizations who are drawing additional allowance/allowances equal to or more than 100 per cent of the basic pay (whether frozen or otherwise);

    b. This allowance will be frozen at the level drawn on March 01, 2022;

    c. This allowance will be subject to Income Tax;

    d. This allowance will be admissible during leave and entire period of LPR except during extra ordinary leave;

    e. This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent;

    READ MORE: Employers to deduct tax on salary income

    f. This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;

    g. This allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad;

    READ MORE: Tax on salary income of earlier year

    h. This allowance will be admissible during the period of suspension;

    i. The term ‘basic pay’ will also include the amount of personal pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.

  • Pak-Afghan commerce ministers to meet on February 28

    Pak-Afghan commerce ministers to meet on February 28

    ISLAMABAD: The commerce ministers of Pakistan and Afghanistan will meet on Sunday February 28, 2022 to witness cross border movement of pedestrians and vehicles, according to a statement issued on Friday.

    A high powered delegation led by Adviser to the Prime Minister on Commerce, Textile, Industry and Production, and Investment, Abdul Razak Dawood, accompanied by Pakistan’s Special Representative for Afghanistan Mohammad Sadiq, is scheduled to meet Afghan Minister of Commerce and his team at Torkham border on February 28.

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

    This was informed during the meeting of Afghanistan Inter-Ministerial Coordination Cell (AICC). The two delegations will visit the Torkham border to witness cross border movement of pedestrians and vehicles.

    The scheduled meeting will discuss various important matters related to smooth movement of people and patients across the border, issuance of temporary admission documents, increase in timings of border crossing points, establishment of joint border infrastructure, training of Afghan nominees for trade related capacity building courses and smooth crossing of humanitarian assistance to Afghanistan.

    READ MORE: Pakistan establishes Afghanistan relief fund

    Time frame for reinitiating the stalled Torkham-Jalalabad road project and start of luxury bus service between Peshawar-Jalalabad and Quetta-Kandhar will also be part of discussion.

    Prime Minister Imran Khan has announced Rs. 5 billion package to assist Afghanistan in addressing the impending humanitarian and economic crisis.

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

    Under the package several initiatives have been taken by AICC including supply of lifesaving medicines and technical assistance for restoration and functioning of hospitals.

    In addition to PM’s Relief Package, Pakistan is also sending relief goods and food supplies to Afghanistan on daily basis.

    Recently, a delegation of Afghan Chambers also visited Pakistan and held discussions with the business community to explore trade opportunities between the two countries.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

  • Pakistan’s foreign exchange reserves dip to $23.226 bn

    Pakistan’s foreign exchange reserves dip to $23.226 bn

    KARACHI: The liquid foreign exchange reserves of Pakistan declined by $264 million to $23.226 billion by week ended February 18, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were $23.49 billion by week ended February 11, 2022.

    The official reserves of the State Bank fell by $289 million to $16.807 billion by week ended February 18, 2022 as compared with $17.096 billion a week ago.

    However, the foreign exchange reserves held by commercial banks increased by $25 million to $6.419 billion by week ended February 18, 2022 as compared with $6.394 billion a week ago.

    Pakistan foreign exchange reserves rise to $23.72 billion