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Pakistan may increase petrol prices from August 1, 2022

KARACHI: Pakistan may review prices of petroleum products for the next fortnight on July 31, 2022, which also consider the massive depreciation of rupee value.

Previously the present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel and now as of today July 21, 2022, the international prices of Brent Oil have fallen to $103 per barrel.

Considering the latest price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was political decision as the government had to increase petroleum levy and apply sales tax.

Furthermore the Pakistani Rupee (PKR) has sharply fell against the dollar leaving no room for the government but to increase the prices of petroleum products.

READ MORE: New petroleum prices in Pakistan from July 15, 2022

The local currency depreciated by around 11 per cent during the month of July to close at 226.81 to the US Dollar on July 21, 2022.

Pakistan is net importer of petroleum products and spends huge foreign exchange for the purchase.

The country imported petroleum products worth $23.32 billion during fiscal year 2021-2022 as compared with $11.35 billion in the preceding year, showing a growth 105 per cent.

In the previous announcement on July 14, 2022, the government announced the following prices of petroleum products.

The new prices of petrol have been decreased by Rs18.50 per liter to Rs230.24 from Rs248.74.

The rate of high speed diesel has been decreased by Rs40.54 per liter to Rs235.95 from Rs276.54.

The rate of kerosene oil has been decreased by Rs33.81 per liter to Rs196.45 from Rs230.26.

Similarly, the rate of light speed diesel has been decreased by Rs34.71 per liter to Rs191.44 from Rs226.15.

READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

The Prime Minister on July 12, 2022 directed the authorities to pass on the full benefit of falling oil prices in the international markets to the masses.

The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022.

Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

READ MORE: New petroleum prices in Pakistan from June 16, 2022

The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.

The present government in the budget estimated to collect Rs750 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

July 21, 2022
Rupee ends to new low at Rs226.81 against dollar in interbank

KARACHI: The Pakistan Rupee (PKR) fell to a new historic low at Rs226.81 to the US dollar on Thursday due to scarcity of the greenback and further rise in political instability.

The exchange rate recorded a decline of Rs1.89 in rupee value to end at Rs226.81 to the dollar from previous day’s closing of Rs224.92 in the interbank foreign exchange market.

Currency dealers said that the importers were running pillars to post for dollars to make payments to their foreign suppliers.

READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

They further said that the market remained uncertain due to political instability. The dealers said that the fall in foreign exchange reserves also fueled the uncertainty in the market.

The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by the week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 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 $11.486 billion.

READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by the week ended June 30, 2022 as compared with $10.309 billion a week ago.

The central bank attributed the decline in foreign exchange reserves to external debt repayments.

It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

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 declined by $10.33 billion.

READ MORE:

READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

July 21, 2022
Pakistan reintroduces capital value tax on motor vehicles

KARACHI: The federal government of Pakistan has reinstated the Capital Value Tax (CVT) at a rate of one percent on the value of both locally manufactured and imported motor vehicles. This move marks the revival of a tax that was previously withdrawn in phases and ultimately abolished in 2020.
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July 21, 2022
Rupee hits fresh low Rs224.92 to dollar at interbank closing

KARACHI: The free-fall continued in Pakistan Rupee (PKR) against the dollar on Wednesday as the local currency ended fresh low of Rs224.92 in the interbank foreign exchange market.

The exchange rate recorded a decline of Rs2.93 to end at Rs224.92 to the dollar from last day’s closing of Rs221.99, the previous historic low of the rupee, in the interbank foreign exchange market.

READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

Currency experts said that the local unit was under pressure due to political instability.

Furthermore, the Fitch rating agency has downgraded the Pakistan outlook to negative from positive.

The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

READ MORE: Rupee plummets record low at Rs215.20 to dollar

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 $11.486 billion.

The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

The central bank attributed the decline in foreign exchange reserves to external debt repayments.

READ MORE: Fitch revises Pakistan’s outlook to negative

It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

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 declined by $10.33 billion.

The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

READ MORE: PKR slips to Rs210.95 against dollar despite IMF agreement

July 20, 2022
Pakistan’s import of CBU motor cars surges by 21% in FY22

ISLAMABAD: The import of Completely Built Unit (CBU) motor cars into Pakistan has surged by 21 per cent in fiscal year 2021/2022.

According to data released by Pakistan Bureau of Statistics (PBS) on Tuesday, the import of CBU motor cars increased to $310.41 million during fiscal year 2021/2022 as compared with $256.2 million in the preceding last fiscal year.

READ MORE: Prices of KIA Motors raised up to 19.3% amid rupee devaluation

In terms of rupee, the import of CBU motor cars posted a growth of 34.51 per cent to Rs54.67 billion during fiscal year 2021/2022 as compared with Rs40.65 billion in the preceding fiscal year.

The overall import of CBU vehicles registered an increase of 59.3 per cent to $616.39 million in the fiscal year under review as compared with $386.95 million in the preceding fiscal year.

The country imported CBU buses, trucks and other heavy vehicles worth $302 million and CBU motor cycles worth $4.12 million during the fiscal year 2021/2022.

READ MORE: Rolls-Royce, Hyundai signs pact to lead advanced air mobility market

On the other hand the import of Completely Knocked Down (CKD) motor cars recorded a massive growth of 52 per cent to $1.7 billion during fiscal year 2021/2022 as compared with $1.12 billion in the preceding fiscal year.

The overall import of CKD motor vehicles recorded an increase of 54 per cent to $2.44 billion in fiscal year 2021/2022 as compared with $1.58 billion in the preceding fiscal year.

Analysts believed that the import of CBU and CKD motor vehicles would fall in the current fiscal year due to high interest rates, regulatory measures and significant rise in prices of raw material in the international market.

READ MORE: Global car manufacturers agree to introduce electric mini-commercial vans

Analysts believed that amid continuous decline of the local currency against greenback, further price hike in car prices is imminent. “This would be the first time where we have seen the highest frequency (4x) of price increases by the auto industry in a fiscal year,” analysts at Insight Research said.

The main reasons are higher freight charges, abrupt movement in PKR/USD followed by launch of new model cars with lower localization which further add fuel to the price hike.

The localization policy started in 1987 and continued till 2004, which required compulsory localization for the automotive industry. However, automobile assemblers are still behind the required level of localization.

READ MORE: Pakistan car sales surge 54 per cent in FY22

The major players including Indus Motors, Honda Car and Pak Suzuki have been assembling vehicles since 1992, but localization level of these assemblers are still very low despite their long presence in the market.

In such situation, it will difficult for new players to achieve high localization as older players are still far behind the required level of localization. Moreover, local auto parts manufactures are sensitive to PKR/USD parity as they are reliant on imported raw materials for production. Thus, making the end product expose to PKR devaluation.

The analysts said that higher interest rate environment, currency devaluation and auto financing hindrances may pose threat to demand going forward especially in low segment cars under 1000cc.

July 20, 2022
Pakistan’s textile exports hit record high at $19.33 bn in FY22

ISLAMABAD: Pakistan has exported textile products worth $19.33 billion during the fiscal year 2021/2022 making a record high on annual basis.

The country exported textile products worth $19.33 billion during fiscal year 2021/2022, showing an increase of 25.53 per cent when compared with $15.4 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

READ MORE: Textile exports surge to record high $11 billion in 7MFY22

The textile exports contributed around 61 per cent to the total exports of $31.8 billion during the fiscal year 2021/2022.

Textile sector plays a significant role in supporting the economy of Pakistan and continue to be in the spotlight owing to country’s dependence on foreign exchange.

According to analysts at Insight Research, the Pakistani Rupee (PKR) devaluation against the US dollar gave textile exporters a competitive advantage over its competitors in terms of pricing.

READ MORE: PHMA cries foul on gas suspension to textile industry

In terms of value, the export of knitwear recorded an increase of 34.23 per cent to $5.12 billion during the fiscal year 2021/2022 as compared with $3.81 billion in the preceding fiscal year.

The export of readymade garments exhibited an increase of 28.75 per cent to $3.9 billion during fiscal year 2021/2022 when compared with $3.03 billion in the preceding fiscal year.

Similarly, the export of bed wear recorded an increase of 18.8 per cent to $3.29 billion in the fiscal year 2021/2022 as compared with $2.77 billion in the preceding fiscal year.

READ MORE: Textile exporters urge allowing cotton import from India

Meanwhile, foreign buyers purchased Pakistani cotton cloths worth $2.44 billion during the fiscal year under review as compared with $1.92 billion in the preceding fiscal year, showing an increase of 27 per cent.

The analysts said that some factors are posing threat to the textile industry for the current fiscal year such as i.e., increase in export refinance rate.

Moreover, cotton shortage remains the key concern for the country as the demand for textile industry grows but cotton production has declined substantially over the last decade, mainly due to fall in cultivation area followed by lower yield resulting from water shortage and inconsistent rainfall.

In the fiscal year 2021/2022, cotton production stood at 8.3 million bales, which is 2.2 million bales lower than the targeted production.

However, production has increased by 1.3 million bales compared to last year.

“Thus, due to the supply and demand gap, textile industry has to rely on imported cotton to meet the country’s demand, putting pressure on country’s import bill,” the analysts added.

READ MORE: Value added textile exporters demand 50 percent reduction in withholding tax

The government was eyeing to fetch textile exports of $25 billion for the fiscal year 2022-2023. However, domestic and global challenges are dampening the outlook.

Possible increase in gas and electricity tariff amid the ongoing energy crises could hamper the local demand. In addition, global economic slowdown due to surging inflation will result in lower apparel demand.

Moreover, in case of surge in covid-19 cases and imposition of lockdown, textile industry’s operating rate would get effected negatively. Having these challenges in mind, the analysts believe that it would be tough to achieve such growth in textile exports.

July 20, 2022
Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

KARACHI: The Pakistani Rupee (PKR) crashed against the US dollar to make new historic low at around Rs222 on Tuesday at closing of interbank foreign exchange market.

The exchange rate recorded a decline of Rs6.79 and ended at Rs221.99 to the dollar from previous day’s closing of Rs215.20 in the interbank foreign exchange market.

READ MORE: Rupee plummets record low at Rs215.20 to dollar

The rupee fell to the record low of Rs215.20 at interbank closing on July 18, 2022.

Currency experts said that the local unit was under pressure due to political instability.

Furthermore, the Fitch rating agency has downgraded the Pakistan outlook to negative from positive.

READ MORE: Fitch revises Pakistan’s outlook to negative

The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

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 $11.486 billion.

The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

READ MORE: PKR slips to Rs210.95 against dollar despite IMF agreement

The central bank attributed the decline in foreign exchange reserves to external debt repayments.

It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

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 declined by $10.33 billion.

READ MORE: Rupee recovers 30 paisas to dollar on IMF agreement

The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

July 19, 2022
FBR to invite applications for 502 new posts in Inland Revenue

ISLAMABAD: The Federal Board of Revenue (FBR) has created 502 new posts in Inland Revenue filed formation and those will be filled through online applications, according to a notification issued on Tuesday.

According to the notification the FBR would advertise for filling up 502 posts in BS-1 to 15 in seventeen (17) Inland Revenue field formations of FBR.

READ MORE: FBR posts Ansari as Member Customs Operations

As the applicants have to apply online through National Job Portal being maintained by National Information Technology Board (NITB.

The FBR asked the NITB to complete necessary processes in their system for applying online by the candidates and convey their clearance to FBR, so that the Advertisement could be got published in the press by FBR, at the earliest.

According to the general instructions the eligible candidates are advised to apply online through National Job Portal Link https://nip.gov.pk. No manual or hard copy of application will be accepted by any office. Candidates applying for more than one post should apply online for each post separately.

READ MORE: Commodities’ illegal movement to be treated as smuggling

Vacancies for BS-I to 5 shall ordinarily be filled on local basis in terms of Rule 16 of Civil Servants (Appointment, Promotion & Transfer) Rules, 1973, whereas vacancies for BS-6 to 15 shall be filled by appointment of persons domiciled in the respective province or region of each office strictly under Rule 15 of the aforesaid rules and instructions issued by the Establishment Division from time to time.

Candidates will be required to bring original documents (Educational, domicile and Experience Certificate etc) alongwith one set of all attested copies of documents at the time of test/interview.

Screening tests and skills tests (where required) will be conducted as per recruitment policy of the Federal Government. Besides screening test for the post of Sepoy, physical fitness i.e. height and chest of the candidates at the requisite standard, shall also be mandatory.

READ MORE: Special tax regime for pharma sector introduced

The contract employees (85-1 to 15), who were appointed under the Family Assistance Package for the families of Government employees, who died while in service, may also apply online for any of the above post, if they desire so, subject to their eligibility.

10% quota for women, 5% quota for minorities (non-Muslims) and 2% quota for disabled persons shall also be strictly observed by each office as per Government instructions. Disabled persons will have to submit a Certificate as proof of disability, duly issued by recognized Social Welfare Board/office or other authorized Government organization, at the time of test/interview.

The FBR reserves the right not to fill any vacancy or to reduce the number of vacancies, if the circumstances so warranted at the time of final selection.

READ MORE: Defacing sales tax invoice declared as offence

The candidates working in Public Sector Departments/Organizations shall have to submit Departmental Permission Certificates from the respective employers at the time of test/interview, failing which they will not be allowed to participate in test/interview process.

In addition to 05 years general upper age relaxation by the Government, further upper age relaxation shall be restricted up to the following categories of candidates, as per relevant rules/policy of the Federal Government.

Minimum and Maximum age shall be calculated on the closing date of receipt of applications.

Information provided in the online Application Form will be verified. In case of any false or forged information, FBR reserves the right to cancel candidature of any candidate at any stage (even after employment, if so revealed later) and to initiate legal action against the applicant.

Only short-listed candidates will be called for test/ interview. All the candidates will be allowed to appear in the test/interview on provisional basis, subject to detailed scrutiny of their eligibility as per relevant criteria.

No TA/ DA will be admissible for the Test/ Interview.

The candidates may apply online within 15 days from the date of publication of this Advertisement in the press. Applications received after 15 days of publication of Advertisement will not be entertained.

July 19, 2022
Dollar hits Rs220 to make new midday high in interbank

KARACHI: The US dollar made new record against the Pakistani Rupee to reach at Rs220 during midday trading in interbank foreign exchange market on Tuesday.

The rupee has lost Rs4.8 so far during the day against the dollar. The exchange rate is at Rs220 to the dollar from previous day’s closing of Rs215.20.

READ MORE: Rupee plummets record low at Rs215.20 to dollar

The rupee fell to the record low of Rs215.20 at interbank closing on July 18, 2022.

Currency experts said that the local unit was under pressure due to political instability.

Furthermore, the Fitch rating agency has downgraded the Pakistan outlook to negative from positive.

READ MORE: Fitch revises Pakistan’s outlook to negative

The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

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 $11.486 billion.

The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

READ MORE: PKR slips to Rs210.95 against dollar despite IMF agreement

The central bank attributed the decline in foreign exchange reserves to external debt repayments.

It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

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 declined by $10.33 billion.

READ MORE: Rupee recovers 30 paisas to dollar on IMF agreement

The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

July 19, 2022
Fitch revises Pakistan’s outlook to negative

HONG KONG: Fitch Ratings on Monday revised Pakistan’s Outlook to Negative from Stable, while affirming its Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B-‘.
(more…)

July 19, 2022