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  • Prices of essential items surge by 28% in Pakistan

    Prices of essential items surge by 28% in Pakistan

    ISLAMABAD: The prices of essential items have recorded 28 per cent increase Year on Year (YoY) by week ended June 16, 2022, Pakistan Bureau of Statistics (PBS) said on Friday.

    The surge in prices have been seen following the massive increase in prices of petroleum products by the government during last three rounds: first on May 27, 2022; second on June 02, 2022; and the last one on June 15, 2022.

    READ MORE: Prices of essential items rise by 20% on first POL rate jump

    However, the cumulative effect of inflation is expected to be seen in coming weeks.

    The latest Sensitive Price Indicator (SPI) based inflation for the week ended June 16, 2022 has shown massive increase in prices of essential items over the same week last year.

    Following are the rates that have witnessed increase during last one year:

    READ MORE: Pakistan’s headline inflation up by 13.8% in May 2022

    Onions (135.31 per cent), Diesel (132.61 per cent), Tomatoes (117.27 per cent), Petrol (110.16 per cent), Vegetable Ghee 1 Kg (81.76 per cent), Mustard Oil (80.88 per cent), Pulse Masoor (74.77 per cent), Cooking Oil 5 litre (71.52 per cent), Vegetable Ghee 2.5 Kg (68.47 per cent), LPG (60.97 per cent), Garlic (57.72 per cent), Washing Soap (52.73 per cent), Gents Sponge Chappal (52.21 per cent) and Chicken (51.11 per cent).

    There are some other essential items that have witnessed decline in prices on YoY basis:

    Chillies Powdered (43.42 per cent), Pulse Moong (18.06 per cent), Sugar (10.79 per cent), Electricity charges for Q1 (5.85 per cent) and Gur (3.35 per cent).

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

    The comparison of prices of essential items on week on week basis, showed 3.38 per cent.

    Increase observed in the prices of food items Chicken (12.10 per cent ), Potatoes (6.89 per cent), Cooked Daal (5.90 per cent), Pulse Gram (5.29 per cent) and Cooked Beef (5.19 per cent),non-food items Diesel (28.91 per cent), Gents Sponge Chappal (26.76 per cent), Gents Sandal (15.40 per cent), Petrol (11.43 per cent), Electricity Charges for Q1 (6.63 per cent) and Cigarettes (6.27 per cent), with joint impact of (2.53 per cent) into the overall SPI for combined group of (3.38 per cent).

    On the other hand, decrease observed in the prices of Onions (5.20 per cent), Wheat Flour (2.19 per cent), LPG (1.32 per cent), Bananas (0.83 per cent), Gur (0.45 per cent) and Sugar (0.02 per cent).

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

  • Pakistan to stay on FATF grey list till onsite visit

    Pakistan to stay on FATF grey list till onsite visit

    BERLIN: Pakistan will stay on the grey list despite making compliance to all the action plans set by the Financial Action Task Force (FATF). An onsite visit to Pakistan is required to verify the implementation of the country, a statement issued on Friday by the watchdog said.

    However, Pakistan has not been officially removed from the FATF’s grey list.

    READ MORE: FATF retains Pakistan in grey list; admits progress

    The watchdog said that FATF will “monitor the COVID-19 situation and conduct an on-site visit at the earliest possible date”.

    The FATF officials will hold a press briefing shortly on the outcomes of the four-day plenary session of the watchdog that reviewed Pakistan’s action plans.

    READ MORE: Pakistan urges FATF to take action against Indian plot

    A government official had earlier said in a conversation with the BBC that matters will take seven to eight months to settle even after Pakistan has made its way out of the watch list as the FATF team will visit Pakistan for an inspection.

    READ MORE: Pakistan likely to exit from FATF’s grey list

    Pakistan had launched a massive diplomatic effort to get off the FATF grey list. Minister of State for Foreign Affairs Hina Rabbani Khar, who is also the chair of Pakistan’s National FATF Coordination Committee, is leading the Pakistan delegation at the plenary meeting that started on June 14, 2022.

    READ MORE: Pakistan complies with 31 requirement of FATF

  • Foreign Investment into Pakistan plunges by 59% during 11MFY22

    Foreign Investment into Pakistan plunges by 59% during 11MFY22

    KARACHI: Total foreign investment into Pakistan has declined by 59 per cent to $1.59 billion during first 11 months (July – May) of fiscal year 2021/2022, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The inflows of foreign investment into the country were $3.85 billion during the corresponding period of the last fiscal year.

    READ MORE: Foreign investment falls by 57% in 10MFY22: SBP

    Total foreign private investment recorded a 12.5 per cent decline to $1.22 billion during 11 months of the current fiscal year as compared with $1.39 billion in the same months of the last fiscal year.

    Foreign Direct Investment (FDI), the major component of the foreign private investment, fell by 5 per cent to $1.68 billion during the months under review as compared with $1.6 billion in the corresponding period of the last fiscal year.

    READ MORE: Foreign investment into Pakistan surges by 131%

    The portfolio investment, the other component of the foreign private investment, has recorded a fall of 32.3 per cent during the period. The investment in the capital market recorded an outflow of $378 million during July – May 2021/2022 as compared with outflow of $286 million in the same period of the last fiscal year.

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

    The inflow in debt securities under foreign public investment was $367 million during first 11 months of the current fiscal year as compared with $2.46 billion in the same months of the last fiscal year.

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

  • Rupee collapses to fresh low against dollar to Rs208.75

    Rupee collapses to fresh low against dollar to Rs208.75

    KARACHI: The Pakistan Rupee (PKR) collapsed to another record low against the US dollar to close at Rs208.75 at interbank foreign exchange market on Friday.

    The exchange rate recorded a fall of Rs1.08 in rupee value to end at Rs208.75 from last day’s closing of Rs207.67, the previous record low of rupee, in the interbank foreign exchange market.

    READ MORE: Dollar touches new peak of Rs207.67 at interbank closing

    Currency experts said that the foreign exchange reserves had declined to critically low, which created panic in the market. Besides, high oil prices and rise in commodity prices globally also pushed dollar demand for import payments.

    According to data released by the State Bank of Pakistan (SBP) a day earlier, the official reserves of the central bank had declined to provide about one month import cover.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

    The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

    Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

    The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

    It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion. Another increase was seen on June 15, 2022.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    The government on May 26, 2022 decided partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.

    The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

    The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

    Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

  • Pakistan’s central bank reserves shrink to one month import cover

    Pakistan’s central bank reserves shrink to one month import cover

    KARACHI: The official reserves of Pakistan’s central bank have declined to provide about one month import cover, according to official data released on Thursday.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

    READ MORE: SBP’s forex reserves slip 2½-year low to $9.226 billion

    The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

    Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

    The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

    READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The falling foreign exchange reserves also put pressure on the local currency. The Pakistani Rupee (PKR) is also depreciating to record low against the US dollar on daily basis.

    The rupee fell to a fresh historic low at Rs207.67 to the dollar at interbank foreign exchange closing on June 16, 2022.

    READ MORE: Moody’s changes Pakistan’s outlook to negative

    The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

    The total foreign exchange reserves of Pakistan have declined to around three-year low at $14.94 billion by week ended June 10, 2022. Previously, the foreign exchange reserves of the country were seen at $14.86 billion by week ended July 19, 2019.

    The country’s foreign exchange reserves have fallen by $233 million to $14.943 billion by week ended June 10, 2022 as compared with $15.176 billion a week ago i.e. June 03, 2022.

    READ MORE: Pakistan’s headline inflation up by 13.8% in May 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 $12.285 billion.

    The foreign exchange held by commercial banks however slightly up by $8 million to $5.958 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago.

  • Internet banking posts 20% growth in 3Q: State Bank

    Internet banking posts 20% growth in 3Q: State Bank

    KARACHI: The State Bank of Pakistan (SBP) has said that the transactions of internet banking posted 20 per cent growth in the third quarter of the current fiscal year.

    According to the report the transaction volume of internet banking increased to Rs2.9 trillion by end of quarter January – March 2022 as compared with Rs2.42 trillion in the quarter October – December 2021.

    READ MORE: SBP renews status of credit rating agencies

    The SBP released its third quarterly report of Payment Systems for the Fiscal year 2021-22 on Thursday covering the period January to March 2022. The report presents an overall viewpoint of growing digital adoption in the country as SBP continues to promote robust and efficient payments ecosystem in the country.

    During the quarter under review (Q3-FY22), total e-banking transactions witnessed a growth of 2.6 per cent in volume and 6.5 per cent in value on QoQ basis while the overall growth was 32.7 per cent in volume and 57.5 per cent in value on YoY basis.

    READ MORE: High tax may erode banks’ earnings up to 20%

    Further bifurcation shows that a major portion of this growth was driven by continuing widening in internet banking and mobile banking transactions. Number of registered internet banking users reached 7.6 million showing a growth of 10.6 per cent resulting in a double digit-growth of 13.5 per cent and 19.9 per cent in volume and value of transactions respectively on QoQ basis.

    Through this channel a total 38.3 million transactions worth Rs. 2,906.9 billion were processed. Mobile banking transactions volume was 101.5 million with value of Rs. 3,085.8 billion which amounted to a growth of 8.1 per cent and 5.4 per cent respectively on QoQ basis.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    Under retail sector, POS transactions continued to show an upward trend. During this period, number of POS terminals installed reached to 96,975 as compared to 92,153 in the previous quarter, showing an increase of 5.2 per cent.

    Through these POS terminals, a total of 38.3 million transactions were processed that amounted to Rs. 189.7 billion in value. This shows quarterly growth of 21.9 per cent in volume and 6.5 per cent in value of transactions.

    Number of ATMs reached 16,897 with transactions volume and value of 171.3 million and Rs. 2,437.0 billion respectively. Similarly, number of e-commerce merchants on boarded with banks also showed a double-digit growth of 12.0 per cent reaching to 4,445.

    READ MORE: Tax rates for business individuals, AOPs during TY2023

    A total of 9.1 million e-commerce transactions were conducted which amounted to Rs. 27 billion during the quarter. Both volume and value showed an impressive growth of 62.8 per cent and 77.1 per cent respectively, on YoY basis, in case of e-commerce transactions.

    Paper based transactions declined by -2.9 per cent in volume though its value remained almost at the same level posting only 0.6 per cent growth over the previous quarter. In case of RTGS (PRISM), the real-time gross settlement system of Pakistan, a total of 1.08 million transactions amounting to PKR 155.7 trillion were processed.

    READ MORE: Pakistan reintroduces advance tax on foreign payments

    A total of 47.2 million payment cards were in circulation at the quarter end of Q3-FY22. Those payment cards mostly comprised of debit cards (62.3 per cent), social welfare cards (23.3 per cent), ATM only cards (10.3 per cent), credit cards (3.7 per cent) and lastly Pre-paid cards (0.3 per cent).

  • Dollar touches new peak of Rs207.67 at interbank closing

    Dollar touches new peak of Rs207.67 at interbank closing

    KARACHI: Dollar touches another new peak at Rs207.67 against Pak Rupee (PKR) in the interbank foreign exchange market.

    The exchange rate witnessed a decline of Rs1.21 to end at Rs207.67 to the dollar from last day’s closing of Rs206.46, which was the previous record low of the rupee, in the interbank foreign exchange market.

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    READ MORE: Dollar makes fresh high at Rs207.75 in interbank midday trading

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    They said that usually import payments are high in the last month of a fiscal year, especially for oil imports.

    It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion.

    READ MORE: Dollar peaks at Rs206 in interbank midday trading

    Although the since announcement of raising petroleum prices the rupee witnessed a recovery. However, the falling foreign exchange reserves of the central bank once again put pressure on the local unit.

    The government on May 26, 2022 decided partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.

    The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

    Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.

  • Dollar makes fresh high at Rs207.75 in interbank midday trading

    Dollar makes fresh high at Rs207.75 in interbank midday trading

    KARACHI: The Pakistan Rupee (PKR) made a new historic low against US Dollar at Rs207.75 during midday trading at interbank foreign exchange market on Thursday.

    The exchange rate recorded a decline of Rs1.29 in rupee value to trade at Rs207.75 to the dollar during midday trading. The dollar ended at Rs206.46 on June 15, 2022, which is the latest record high of the foreign currency at interbank closing.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    READ MORE: Dollar peaks at Rs206 in interbank midday trading

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    They said that usually import payments are high in the last month of a fiscal year, especially for oil imports.

    It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion.

    Although the since announcement of raising petroleum prices the rupee witnessed a recovery. However, the falling foreign exchange reserves of the central bank once again put pressure on the local unit.

    READ MORE: Pakistani rupee falls to historic low of Rs203.86 to dollar

    The government on May 26, 2022 decided partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.

    The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

    READ MORE: Rupee recovers to Rs201.52 to dollar in volatile trading

    The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

    Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.

  • New petroleum prices in Pakistan from June 16, 2022

    New petroleum prices in Pakistan from June 16, 2022

    ISLAMABAD: Pakistan on Wednesday announced yet another hike in petroleum prices effective from June 16, 2022.

    Finance Minister Miftah Ismail at a press conference announced the increase in prices of petroleum products.

    It is third consecutive increase in petroleum products. The government massively increased the prices of petroleum products.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The finance minister announced an increase of Rs24 per liter in price of petrol.

    The price of petrol increased by Rs84 to Rs233.89 from Rs149.89 as of May 26, 2022.

    Similarly, the government announced to increase the price of diesel to Rs263.31 per liter effective from June 16, 2022. The rate of high speed diesel has been increased by Rs59 per liter. The rate of this product was Rs144.16 as of May 26, 2022. A cumulative increase of Rs119 during past 20 days.

    New prices of petroleum products with effect from June 16, 2022 will be as follows;

    i. MS ( Petrol) Rs. 233.89/Liter

    ii. High Speed Diesel(HSD) Rs. 263.31/Liter

    iii. Kerosene (SKO) Rs. 211.43/Liter

    iv. Light Diesel Oil (LDO) Rs. 207.47/Liter.

    READ MORE: Petroleum prices in Pakistan from June 01, 2022

    Previously, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

    The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

    The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

    READ MORE: Petroleum levy to generate Rs750 billion

    However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

    According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

    It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

    READ MORE: Share of domestic electricity consumption declines

  • Punjab presents Rs3.226 trillion budget 2022/2023

    Punjab presents Rs3.226 trillion budget 2022/2023

    LAHORE: Punjab government on Wednesday presented its budget 2022/2023 with an outlay of Rs3.226 trillion. Presenting the budget, Finance Minister, Sardar Owais Ahmad Khan Leghari said the total volume of the budget is 22 percent more than current fiscal year, out of which Rs1.712 billion have been allocated for Current Expenditures.

    He said that total estimated Revenue for next fiscal year is 2521.29 billion rupees, while the province will get over 2020 billion rupees from the Federal Divisible Pool.

    The Minister said Rs435.87 billion have been allocated for salaries, Rs312 billion for pensions while Rs528 billion for Local Governments.

    The Finance Minister said no new tax has been levied in next fiscal year on account of Sales Tax on Services. He said Stamp Duty ratio has been proposed to enhance from current one percent to 2 percent to raise provincial revenue.

    Owais Leghari said 35 percent of the Annual Development Program amounting to 240 billion rupees has been allocated for South Punjab, which will be spent on development projects.