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  • 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%

  • Rupee weakens sixth straight day; dollar ends PKR 228.18

    Rupee weakens sixth straight day; dollar ends PKR 228.18

    KARACHI: The Pakistani Rupee (PKR) weakened for the sixth straight day as the US dollar ended PKR 228.18 closing of interbank foreign exchange market on Friday.

    The exchange rate recorded a decline of Rs2.76 in rupee value to end at Rs228.18 to the dollar from previous day’s closing of Rs225.42 in the interbank foreign exchange market.

    READ MORE: Pakistani Rupee weakens; Dollar jumps to PKR 225.42 at interbank

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF). The local currency has recorded Rs9.58 against the foreign currency during the past six sessions. The local unit was at Rs218.60 to the dollar on September 01, 2022.

    It is worth mentioning that Pakistan received $1.1 billion from the IMF under Extended Fund Facility (EFF) on August 31, 2022 following the executive board of the IMF approved the loan program on August 29, 2022.

    READ MORE: Dollar strengthens to PKR 223.42 at interbank closing

    Currency experts said that the rupee was under immense pressure due to high import payment demand and losses to the economy due to floods.

    They said that high import payments by end of this quarter and corporate payments put pressure on the rupee value.

    The rupee fell to the record low of Rs239.94 to the dollar on July 28, 2022.

    READ MORE: Dollar continues upward journey; ends at PKR 221.42 in interbank

    The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    READ MORE: Dollar ends up to PKR 219.86 on September 05, 2022

    The torrential rains and flash floods have inflicted a loss of $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products. The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

  • 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

  • Pakistani Rupee weakens; Dollar jumps to PKR 225.42 at interbank

    Pakistani Rupee weakens; Dollar jumps to PKR 225.42 at interbank

    KARACHI: Pakistani Rupee (PKR) continued to weaken against the dollar and lost Rs2 on Thursday to end the exchange rate at Rs225.42 in interbank foreign exchange market.

    The exchange rate recorded a depreciation of Rs2 to Rs225.42 in rupee value against the dollar from previous day’s closing of Rs223.42 in the interbank foreign exchange market.

    READ MORE: Dollar strengthens to PKR 223.42 at interbank closing

    Currency experts said that the rupee was under immense pressure due to high dollar demand for import payment.

    They said that the floods played havoc to Pakistan economy. The country suffered about $10 billion losses due to the floods.

    The experts said that the high imports are l likely due to the devastation of standing crops and other human losses.

    It is pertinent to mention that the rupee fell to the record low at Rs239.94 against the dollar on July 28, 2022.

    READ MORE: Dollar continues upward journey; ends at PKR 221.42 in interbank

    The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    It is worth mentioning that the rupee made recovery during the last week owing to inflows of $1.16 billion from the International Monetary Fund (IMF).

    The IMF executive board on August 29 approved seventh and eighth review for Pakistan and allowed transfer of $1.1 billion as tranche, which was received by the State Bank of Pakistan (SBP) on August 31, 2022.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of $10 billion to Pakistan’s economy.

    The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

    The foreign exchange (FX) reserves of Pakistan have declined by $119 million to $13.40 billion by the week ended August 26, 2022. The foreign exchange reserves of the country were at $13.522 billion by the week ended August 19, 2022.

    READ MORE: Dollar ends up to PKR 219.86 on September 05, 2022

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.825 billion.

    The official foreign exchange reserves of the State Bank witnessed a decline of $113 million to $7.697 billion by the week ended August 26, 2022 as against $7.810 billion a week ago.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by the week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.449 billion.

    READ MORE: Dollar jumps to PKR 218.98 at interbank closing on Sept 02, 2022

    The central bank however said 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.

  • 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.

  • Dollar strengthens to PKR 223.42 at interbank closing

    Dollar strengthens to PKR 223.42 at interbank closing

    KARACHI: The US dollar maintained upward momentum against the Pakistani Rupee (PKR) on Wednesday and ended at PKR 223.42 at interbank foreign exchange market.

    The exchange rate recorded a decline of Rs2 in rupee value to end at Rs223.42 against the dollar from previous day’s closing of Rs221.42 in the interbank foreign exchange market.

    READ MORE: Dollar continues upward journey; ends at PKR 221.42 in interbank

    It is pertinent to mention that the rupee fell to the record low at Rs239.94 against the dollar on July 28, 2022.

    The rupee made some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    It is worth mentioning that the rupee made recovery during the last week owing to inflows of $1.16 billion from the International Monetary Fund (IMF).

    READ MORE: Dollar ends up to PKR 219.86 on September 05, 2022

    The IMF executive board on August 29 approved seventh and eighth review for Pakistan and allowed transfer of $1.1 billion as tranche, which was received by the State Bank of Pakistan (SBP) on August 31, 2022.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of $10 billion to Pakistan’s economy.

    The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

    The foreign exchange (FX) reserves of Pakistan have declined by $119 million to $13.40 billion by the week ended August 26, 2022. The foreign exchange reserves of the country were at $13.522 billion by the week ended August 19, 2022.

    READ MORE: Dollar jumps to PKR 218.98 at interbank closing on Sept 02, 2022

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.825 billion.

    The official foreign exchange reserves of the State Bank witnessed a decline of $113 million to $7.697 billion by the week ended August 26, 2022 as against $7.810 billion a week ago.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by the week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.449 billion.

    The central bank however said 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.

    READ MORE: Dollar closes down to PKR 218.60 on September 01, 2022

  • KE adjusts electricity bills under FCA relief package

    KE adjusts electricity bills under FCA relief package

    KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.

    According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.

    READ MORE: Date extension demanded for electricity bills payment

    The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.

    While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.

    READ MORE: Power tariff hike termed disaster for industries

    Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.

    Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.

    However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”

    While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.

    READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23

    All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”

    “Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.

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

    The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.

  • FBR transfers 153 IRS officers in major reshuffle

    FBR transfers 153 IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) has undertaken a significant reshuffle in the Inland Revenue Service (IRS), announcing the transfers and postings of 153 officers in the latest round of administrative changes.

    (more…)
  • 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