Pakistan Economy : Updates and Discussions
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Reserves dip by $1.03bn
The Newspaper's Staff Reporter, Updated April 19, 2019
Decrease in dollar stick amid external debt servicing, repayment of $1bn principal against PSB, says SBP. ─ File photo
KARACHI: Reserves held by the State Bank of Pakistan (SBP) plunged by $1.028 billion to $9.244bn during the week ended on April 12.
The decrease in dollar stock came amid external debt servicing, including principal repayment of $1bn against Pakistan Sovereign Bond, said a press release from SBP.
Meanwhile, holdings of the commercial banks stood at $6.952bn while total liquid reserves of the country amounted to $16.2bn during the period under review.
Published in Dawn, April 19th, 2019
The Newspaper's Staff Reporter, Updated April 19, 2019
Decrease in dollar stick amid external debt servicing, repayment of $1bn principal against PSB, says SBP. ─ File photo
KARACHI: Reserves held by the State Bank of Pakistan (SBP) plunged by $1.028 billion to $9.244bn during the week ended on April 12.
The decrease in dollar stock came amid external debt servicing, including principal repayment of $1bn against Pakistan Sovereign Bond, said a press release from SBP.
Meanwhile, holdings of the commercial banks stood at $6.952bn while total liquid reserves of the country amounted to $16.2bn during the period under review.
Published in Dawn, April 19th, 2019
CAD jumps by 196pc in March
Shahid Iqbal, Updated April 19, 2019
The government has been successful in decreasing the country’s overall import bill to $45.793bn during the first nine months of the ongoing fiscal year.
KARACHI: The country’s current account deficit during March climbed by 196 per cent month-on-month compared to February, according to latest data released by the State Bank of Pakistan (SBP) on Thursday.
The central bank reported that the current account deficit in March was at $822 million compared to $278m in February.
Cumulatively, the current account deficit has seen a gradual decrease of around 29pc during the first nine months of the fiscal year mainly due to import compression. The deficit during July-March fell by 29.4pc or $4 billion to $9.58bn against $13.589bn in the same period last year.
However, despite shrinking current account deficit, the size of trade deficit remained as large as $23.84bn. The incumbent government, despite offering multiple incentives to the export-oriented sector, during the ongoing fiscal year, has failed to improve the country’s exports. The data provided by the SBP shows that exports increased by a meagre $267m during the nine months under review.
On the other hand, the government was successful in decreasing the country’s overall imports to $45.793bn during the first nine months of the ongoing fiscal year compared to $49.635bn during the corresponding period last year.
The SBP figures show a marked decrease in imports of both goods and services falling to $39.314bn and $6.479bn respectively.
The huge current account deficit in the last fiscal year has proven to be a challenge for the economy, and the incumbent government, after taking power shifted its entire focus to fill up the gap. The government borrowed huge sums from friendly countries and commercial banks while engaging with the International Monetary Fund for a bailout programme.
However, the government has so far failed to come up with a plan to reduce the deficit by increasing exports and is solely reliant on bilateral and multilateral borrowings to service the deficit. The government had to pay $1bn for debt servicing on April against the maturity of Eurobond launched in 2014. Another $1bn is required by end of this calendar year against the maturity of $1bn Sukuk.
Published in Dawn, April 19th, 2019
Shahid Iqbal, Updated April 19, 2019
The government has been successful in decreasing the country’s overall import bill to $45.793bn during the first nine months of the ongoing fiscal year.
KARACHI: The country’s current account deficit during March climbed by 196 per cent month-on-month compared to February, according to latest data released by the State Bank of Pakistan (SBP) on Thursday.
The central bank reported that the current account deficit in March was at $822 million compared to $278m in February.
Cumulatively, the current account deficit has seen a gradual decrease of around 29pc during the first nine months of the fiscal year mainly due to import compression. The deficit during July-March fell by 29.4pc or $4 billion to $9.58bn against $13.589bn in the same period last year.
However, despite shrinking current account deficit, the size of trade deficit remained as large as $23.84bn. The incumbent government, despite offering multiple incentives to the export-oriented sector, during the ongoing fiscal year, has failed to improve the country’s exports. The data provided by the SBP shows that exports increased by a meagre $267m during the nine months under review.
Nine-month deficit shrinks 29pc
Moreover, the exports at the end of third quarter declined to $21.953bn against $22.22bn during the same period last year.On the other hand, the government was successful in decreasing the country’s overall imports to $45.793bn during the first nine months of the ongoing fiscal year compared to $49.635bn during the corresponding period last year.
The SBP figures show a marked decrease in imports of both goods and services falling to $39.314bn and $6.479bn respectively.
The huge current account deficit in the last fiscal year has proven to be a challenge for the economy, and the incumbent government, after taking power shifted its entire focus to fill up the gap. The government borrowed huge sums from friendly countries and commercial banks while engaging with the International Monetary Fund for a bailout programme.
However, the government has so far failed to come up with a plan to reduce the deficit by increasing exports and is solely reliant on bilateral and multilateral borrowings to service the deficit. The government had to pay $1bn for debt servicing on April against the maturity of Eurobond launched in 2014. Another $1bn is required by end of this calendar year against the maturity of $1bn Sukuk.
Published in Dawn, April 19th, 2019
Foreign investment plunges 51pc
The Newspaper's Staff Reporter, Updated April 19, 2019
During March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year. ─ AFP/File
KARACHI: Net foreign direct investment (FDI) in the country plunged by 51 per cent to $1.273 billion in the first nine months of this fiscal year, from $2.621bn in corresponding period last year, reported the State Bank of Pakistan on Thursday.
Meanwhile, during March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year.
The inflows from China showed an even steeper decline as net FDI from the country dipped by a massive 291pc to $05.8m during July-March FY19, as against $1.59bn in same months of 2017-18 — representing a decrease of $1.182bn in absolute terms.
This must be a deep concern for the government which has been claiming improving economic relations with the north-eastern neighbour. Later this month, Prime Minister Imran Khan is expected to visit China on a four-day trip regarding the free trade agreement and other matters, which could potentially help Pakistan open up more for investments.
Another big decline was noted from the United Kingdom as FDI fell to $149.8m during 9MFY19, as against $239m in same period last year. Similarly, inflows from the United States of America declined to $63.8m during the months under review, from $130m in July-March FY18.
Moreover, there was a net foreign portfolio investment outflow worth $400.3m in 9MFY19, as compared to an inflow of $180.5m during the first nine months of 2017-18.
Published in Dawn, April 19th, 2019
The Newspaper's Staff Reporter, Updated April 19, 2019
During March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year. ─ AFP/File
KARACHI: Net foreign direct investment (FDI) in the country plunged by 51 per cent to $1.273 billion in the first nine months of this fiscal year, from $2.621bn in corresponding period last year, reported the State Bank of Pakistan on Thursday.
Meanwhile, during March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year.
The inflows from China showed an even steeper decline as net FDI from the country dipped by a massive 291pc to $05.8m during July-March FY19, as against $1.59bn in same months of 2017-18 — representing a decrease of $1.182bn in absolute terms.
This must be a deep concern for the government which has been claiming improving economic relations with the north-eastern neighbour. Later this month, Prime Minister Imran Khan is expected to visit China on a four-day trip regarding the free trade agreement and other matters, which could potentially help Pakistan open up more for investments.
Another big decline was noted from the United Kingdom as FDI fell to $149.8m during 9MFY19, as against $239m in same period last year. Similarly, inflows from the United States of America declined to $63.8m during the months under review, from $130m in July-March FY18.
Moreover, there was a net foreign portfolio investment outflow worth $400.3m in 9MFY19, as compared to an inflow of $180.5m during the first nine months of 2017-18.
Published in Dawn, April 19th, 2019
Every Macro economic indicator is performing worst than they would have taken into account in worst case scenario.Foreign investment plunges 51pc
The Newspaper's Staff Reporter, Updated April 19, 2019
During March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year. ─ AFP/File
KARACHI: Net foreign direct investment (FDI) in the country plunged by 51 per cent to $1.273 billion in the first nine months of this fiscal year, from $2.621bn in corresponding period last year, reported the State Bank of Pakistan on Thursday.
Meanwhile, during March, FDI clocked in at $177.5 million, increasing by 5.15pc month-on-month over $168.8m reported in February this year.
The inflows from China showed an even steeper decline as net FDI from the country dipped by a massive 291pc to $05.8m during July-March FY19, as against $1.59bn in same months of 2017-18 — representing a decrease of $1.182bn in absolute terms.
This must be a deep concern for the government which has been claiming improving economic relations with the north-eastern neighbour. Later this month, Prime Minister Imran Khan is expected to visit China on a four-day trip regarding the free trade agreement and other matters, which could potentially help Pakistan open up more for investments.
Another big decline was noted from the United Kingdom as FDI fell to $149.8m during 9MFY19, as against $239m in same period last year. Similarly, inflows from the United States of America declined to $63.8m during the months under review, from $130m in July-March FY18.
Moreover, there was a net foreign portfolio investment outflow worth $400.3m in 9MFY19, as compared to an inflow of $180.5m during the first nine months of 2017-18.
Published in Dawn, April 19th, 2019
Wait for budget when supplementary grants and revised estimates will come out taking into account the cost of present stand off, they will tank both PSX and PKR.
Idara-e-Taleem-o-Aagahi is a human rights org working to expand education and human rights in Pakistan and UK in a recent report writes :
Pakistan Army's one-day spending of Rs. 1.35 billion is equivalent to Pakistan's one-year Education budget
ISLAMABAD: Pakistan spends Rs1.35 billion per day over the three armed forces just under the head of salaries and operating expenses only, Rs8.60 million daily on the president and prime minister, Rs7.8 million per day on the Senate and National Assembly but a paltry amount of three lakh rupees per day to take care of human rights, show the budget documents.
It further discloses that the Army’s one-day spending is equivalent to the running year’s total allocation for education ministry, and the air-force’s per day expenditures far exceed what was allocated to the health ministry for running the financial year ending this month.
In the new financial year, as many as Rs495.215 billion has been allocated for the armed services only and the amount to be spent on the purchase and maintenance of military hardware is apart from thist. Going by the above cited figure means that Rs1.35 billion is spent on the three armed services each day.
A further break-up indicates that Rs640.37 million will be utilized by the Army per day; a sum equivalent to the running year’s budgetary allocation for the ministry of education. Although the ministry has been devolved now with no new allocation made under its head, last year’s budget for the ministry was Rs640 million which means Rs1.7 million a day. The allocated amount for the entire year for the education ministry last year, Rs640 million, is spent in a day by the Army for meeting its salaries and operating expenses only.
Likewise, the health ministry’s running year’s budget was less than the one-day spending of the air force. The ministry that has also been devolved now got budgetary allocation of Rs269 million for 2010-2011 whereas the air force’s per day spending is Rs290.86 million. Pakistan Navy’s spending per day is Rs141.80 million.
How much is spent on the ISI, the premier intelligence agency, is anybody’s guess as the budgetary allocation for the agency is not included in the amount specified for the armed forces. The PML-N had demanded a debate on the defence budget and the allocations for the intelligence agencies, but the point has neither been taken seriously by the government nor pressed further by the major opposition party.
In addition to the massive defence spending, the expenditures of the prime minister and president also raise many eyebrows. The prime minister of Pakistan, for example, spends an amount of Rs4.3 million per day on foreign tours and the president around one million of rupees.
According to the budgetary allocation, the daily expenses of the Prime Minister Secretariat are Rs1.5 million in addition to Rs4.3 million each day that goes towards spending on the PM and his delegations’ foreign tours.
Likewise, the presidency’s budgetary allocation shows that a sum of Rs931,506.85 will be spent per day on his foreign tour and Rs1.322 million on the presidential secretariat. An accumulated amount of the president and PM’s expense is Rs8.60 million per day. Next comes the Senate and National Assembly Secretariat which constitute a total amount of Rs7.8 million per day. Going by that figure it shows that tax-payers would be spending five million rupees on the National Assembly Secretariat each day and Rs2.8 millions per day over Senate.
This massive spending is in contrast with the plight of human rights in Pakistan and the government’s non-serious attitude towards it. The next financial year’s budget indicates that a meagre sum of Rs110 million has been allocated which means three lakh rupees per day. Again, this amount has been allocated for employees’ related expenses as otherwise the ministry of human rights has no presence on the ground. This is in contrast with the plight of human rights in a country like ours where even journalists are killed like dogs and cats.
An official of the ministry said they don’t have sufficient budget to create awareness, and conduct fact-finding missions. Most of the paperwork is done through media reports as neither the ministry has transport nor enough staff members to verify facts about human rights abuses taking places.
Source : http://www.itacec.org/document/news/Pakistan_Army.pdf
Website : Magic of Chalo Parho Barho - Learning For Sustainable Access
media report from 2011 : Army’s one-day spending equivalent to one-year education ministry budget
Pakistan Army's one-day spending of Rs. 1.35 billion is equivalent to Pakistan's one-year Education budget
ISLAMABAD: Pakistan spends Rs1.35 billion per day over the three armed forces just under the head of salaries and operating expenses only, Rs8.60 million daily on the president and prime minister, Rs7.8 million per day on the Senate and National Assembly but a paltry amount of three lakh rupees per day to take care of human rights, show the budget documents.
It further discloses that the Army’s one-day spending is equivalent to the running year’s total allocation for education ministry, and the air-force’s per day expenditures far exceed what was allocated to the health ministry for running the financial year ending this month.
In the new financial year, as many as Rs495.215 billion has been allocated for the armed services only and the amount to be spent on the purchase and maintenance of military hardware is apart from thist. Going by the above cited figure means that Rs1.35 billion is spent on the three armed services each day.
A further break-up indicates that Rs640.37 million will be utilized by the Army per day; a sum equivalent to the running year’s budgetary allocation for the ministry of education. Although the ministry has been devolved now with no new allocation made under its head, last year’s budget for the ministry was Rs640 million which means Rs1.7 million a day. The allocated amount for the entire year for the education ministry last year, Rs640 million, is spent in a day by the Army for meeting its salaries and operating expenses only.
Likewise, the health ministry’s running year’s budget was less than the one-day spending of the air force. The ministry that has also been devolved now got budgetary allocation of Rs269 million for 2010-2011 whereas the air force’s per day spending is Rs290.86 million. Pakistan Navy’s spending per day is Rs141.80 million.
How much is spent on the ISI, the premier intelligence agency, is anybody’s guess as the budgetary allocation for the agency is not included in the amount specified for the armed forces. The PML-N had demanded a debate on the defence budget and the allocations for the intelligence agencies, but the point has neither been taken seriously by the government nor pressed further by the major opposition party.
In addition to the massive defence spending, the expenditures of the prime minister and president also raise many eyebrows. The prime minister of Pakistan, for example, spends an amount of Rs4.3 million per day on foreign tours and the president around one million of rupees.
According to the budgetary allocation, the daily expenses of the Prime Minister Secretariat are Rs1.5 million in addition to Rs4.3 million each day that goes towards spending on the PM and his delegations’ foreign tours.
Likewise, the presidency’s budgetary allocation shows that a sum of Rs931,506.85 will be spent per day on his foreign tour and Rs1.322 million on the presidential secretariat. An accumulated amount of the president and PM’s expense is Rs8.60 million per day. Next comes the Senate and National Assembly Secretariat which constitute a total amount of Rs7.8 million per day. Going by that figure it shows that tax-payers would be spending five million rupees on the National Assembly Secretariat each day and Rs2.8 millions per day over Senate.
This massive spending is in contrast with the plight of human rights in Pakistan and the government’s non-serious attitude towards it. The next financial year’s budget indicates that a meagre sum of Rs110 million has been allocated which means three lakh rupees per day. Again, this amount has been allocated for employees’ related expenses as otherwise the ministry of human rights has no presence on the ground. This is in contrast with the plight of human rights in a country like ours where even journalists are killed like dogs and cats.
An official of the ministry said they don’t have sufficient budget to create awareness, and conduct fact-finding missions. Most of the paperwork is done through media reports as neither the ministry has transport nor enough staff members to verify facts about human rights abuses taking places.
Source : http://www.itacec.org/document/news/Pakistan_Army.pdf
Website : Magic of Chalo Parho Barho - Learning For Sustainable Access
media report from 2011 : Army’s one-day spending equivalent to one-year education ministry budget
Pakistan’s cement exports to South Africa have significantly fallen over the last two years as a result of the anti-dumping duty imposed by the South African government, according to Mohammad Rafiq Memon, chairman of the Pakistan-South Africa Business Forum (PSABF). The value of cement exports to the country has reportedly decreased to around US$100-150m from US$700m recorded prior to the imposition of the duty.
Pakistan's exports to South Africa fall after anti-dumping duty
Pakistan's exports to South Africa fall after anti-dumping duty
Gautam you are Rubbish Kumar of Pakistan, always digging for bad news, well unlike him your job is easier and you don't have to manufacture news.
Ravish Kumar, NDTV?
Torch bearer of truth, imminent journalist, next Raja Ram Mohan Roy, rings a bell?
Mian Hum Chote Log Hain Aur Hoti Choti Khushiyon se Hi Khush Ho Jaate Hai.indians aur inn kii choti choti khushiyaan
Remember small man in Big office. We are Happy with that small man cause that small man has brought Pakistan to its knees. And that small man is not dictated by Indian army unlike Big man IK is dictated by Pak army.
Aur Choti Choti Khushiyan Agle 9 months main delivery Hogi. Baluchistan, Sindh, Gilgit-Baltistan, Pukejab and Khyber Pakhtunwa.. Hum Us Se Bhi Khush Honge unki Kilkariyan Sunke, unhe Godh main Khilake Bhi Khush Honge....
Hum kya Hum To Chote Log Hai, Pakistaniyon Jaise Humari Ladkiyon ki Shadi Chinese, Arabion Dhanaseton se Nahi Hoti. IMF, World Bank ki Taraf To Hum Ankh Bhi Nahi Utha Sakte. 1Dollar main Sirf 69 INR aate Hai aur Bhai PKR 142-150, Bhai Hum chote Hai. Humare PM ke Pas Itni Crockery, Bedsheets bhi Nahi ke Auctioning Kar Saken...
Pakistan Aur Uske Bade Bade Log Aur Unki Badi Badi Batein. Hume Kya Hum To Chote Log Hai Aur Humari Choti Choti Khushiyan Hai..
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India warns IMF against fresh bailout for Pakistan
NEW DELHI: India and some other nations have cautioned the International Monetary Fund (IMF) about fresh bailout for Pakistan at a time when it is under the Financial Action Task Force's (FATF) scanner for its serious failure to crack down on terror funding.
During recent meetings in Washington, Indian officials are learnt to have warned of possible embarrassment for the multilateral agency as they made the point that Pakistan was already 'grey listed' and faced a high probability of being in the 'black list' which will severely restrict its financial transactions with other nations.
The word of caution, as India hinted at IMF funds being at risk, came ahead of next month's peer review of Pakistan at FATF, sources said. Indian officials had attended the annual meetings of IMF and the World Bank with FATF ministerial meet also coinciding with it.
FATF is a global agency tasked with prescribing norms to counter money laundering and terror funding and the recent ministerial meeting decided to extend its ambit to check proliferation of weapons of mass destruction as well.
Pakistan is on the FATF 'grey list' as it is seen to have failed to take adequate steps to check terror funding and is seen as non-compliant with its international commitments. It will be subjected to review on 25 parameters in a peer review process comprising representatives from other member countries. Pakistan has been critical of FATF action, saying it was
driven by India's lobbying.
At the same time, India's neighbour, which is seen to be harbouring a range of terrorists such as Jaish-e-Mohammed chief Masood Azhar, is seeking an urgent $8-12 billion IMF assistance to help it tide over its latest current account crisis, with the deficit widening six-fold to over $18 billion in the last three years. If the loan proposal goes through, it will be Pakistan's 22nd loan from the IMF.
Last week, Pakistani finance minister Asad Umar, who was virtually forced to step down on Thursday, had said Pakistan had almost reached an agreement with the IMF. But recent news reports suggested the global agency has concerns related to the China-Pakistan Economic Corridor and its possible impact on the IMF programme. On Monday, Umar had told reporters that the Pakistani government had dispatched the compliance report to FATF and an IMF team would visit the country later this month
NEW DELHI: India and some other nations have cautioned the International Monetary Fund (IMF) about fresh bailout for Pakistan at a time when it is under the Financial Action Task Force's (FATF) scanner for its serious failure to crack down on terror funding.
During recent meetings in Washington, Indian officials are learnt to have warned of possible embarrassment for the multilateral agency as they made the point that Pakistan was already 'grey listed' and faced a high probability of being in the 'black list' which will severely restrict its financial transactions with other nations.
The word of caution, as India hinted at IMF funds being at risk, came ahead of next month's peer review of Pakistan at FATF, sources said. Indian officials had attended the annual meetings of IMF and the World Bank with FATF ministerial meet also coinciding with it.
FATF is a global agency tasked with prescribing norms to counter money laundering and terror funding and the recent ministerial meeting decided to extend its ambit to check proliferation of weapons of mass destruction as well.
Pakistan is on the FATF 'grey list' as it is seen to have failed to take adequate steps to check terror funding and is seen as non-compliant with its international commitments. It will be subjected to review on 25 parameters in a peer review process comprising representatives from other member countries. Pakistan has been critical of FATF action, saying it was
driven by India's lobbying.
At the same time, India's neighbour, which is seen to be harbouring a range of terrorists such as Jaish-e-Mohammed chief Masood Azhar, is seeking an urgent $8-12 billion IMF assistance to help it tide over its latest current account crisis, with the deficit widening six-fold to over $18 billion in the last three years. If the loan proposal goes through, it will be Pakistan's 22nd loan from the IMF.
Last week, Pakistani finance minister Asad Umar, who was virtually forced to step down on Thursday, had said Pakistan had almost reached an agreement with the IMF. But recent news reports suggested the global agency has concerns related to the China-Pakistan Economic Corridor and its possible impact on the IMF programme. On Monday, Umar had told reporters that the Pakistani government had dispatched the compliance report to FATF and an IMF team would visit the country later this month
Agreed. But just like crude oil it is still quite pointless if you don't know how to refine it. As a thought exercise imagine we know all the secrets of CPEC : loan amount, term and conditions, usage of loans etc, now what do we do with it. Granted such information out in public domain will greatly hamper with China's ability of attracting countries to join the BRI, but what direct benefits do we get from it ?
USA is getting the info from IMF, not India. And they very well know how to refine the info to their use. This could be a very good chance for USA to create a environment within pakistan against china and cpec, this info will be a gold mine for them.
In other news routes of Toronto Delhi flights.. Intended vs actualMian Hum Chote Log Hain Aur Hoti Choti Khushiyon se Hi Khush Ho Jaate Hai.
Remember small man in Big office. We are Happy with that small man cause that small man has brought Pakistan to its knees. And that small man is not dictated by Indian army unlike Big man IK is dictated by Pak army.
Aur Choti Choti Khushiyan Agle 9 months main delivery Hogi. Baluchistan, Sindh, Gilgit-Baltistan, Pukejab and Khyber Pakhtunwa.. Hum Us Se Bhi Khush Honge unki Kilkariyan Sunke, unhe Godh main Khilake Bhi Khush Honge....
Hum kya Hum To Chote Log Hai, Pakistaniyon Jaise Humari Ladkiyon ki Shadi Chinese, Arabion Dhanaseton se Nahi Hoti. IMF, World Bank ki Taraf To Hum Ankh Bhi Nahi Utha Sakte. 1Dollar main Sirf 69 INR aate Hai aur Bhai PKR 142-150, Bhai Hum chote Hai. Humare PM ke Pas Itni Crockery, Bedsheets bhi Nahi ke Auctioning Kar Saken...
Pakistan Aur Uske Bade Bade Log Aur Unki Badi Badi Batein. Hume Kya Hum To Chote Log Hai Aur Humari Choti Choti Khushiyan Hai..