Pakistan Economy : Updates and Discussions
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Chauffeuring produced some effect then. Good to know. They will probably run out of money again within a few weeks.
Defence services secured biggest supplementary grant
Khaleeq Kiani, Updated June 24, 2019
ISLAMABAD: The defence services secured the biggest supplementary grant of more than Rs36 billion during the outgoing fiscal year before seeking about 4.7 per cent higher allocations for next fiscal year.
The Ministry of Finance has reported to the parliament that the government exceeded by Rs222bn its sanctioned expenditure limit without parliamentary approval. Therefore, it sought Rs106bn regular supplementary grant from the parliament as fait accompli. The remaining Rs116bn amount pertained to surrender from one grant to another or foreign grants and would be treated as technical supplementary grants.
Of these regular supplementary grants, the largest supplementary grant of Rs36bn was given to the defence services which spent these funds without prior approval of the parliament. Of these, Rs20bn was spent on fencing and lighting of Pak-Afghan border, Rs5bn as special duty allowance on Pakistan Army and Pakistan Air Force (PAF) and Rs5.89bn recurring cost of Special Security Division for the army.
As such, the documents showed that the defence services had been allocated about Rs1.100 trillion in the current year’s budget which was later increased to Rs1.138tr. The government has allocated Rs1.152tr to the defence services for next year, showing an increase of about 4.8pc over the original allocation for current year or 1.4pc over the revised budget.
This is in addition to Rs370.5bn allocation for separate development expenditure of the defence division for next fiscal year compared to Rs153.5bn spent under this account during current fiscal year, showing an increase of 160pc or Rs217bn.
When put together, the total allocations for the defence services will amount to Rs1.522tr next year, compared to Rs1.253tr during current year, showing an increase of about 21.5pc.
Another Rs4.3bn was released by the finance ministry as shortfall of petroleum expenditure to the PAF and remaining expenses of community bunkers on the borders, Junior Naval Academy, Ormara, repair and maintenance of Cessna Grand aircraft and a helicopter of Pakistan Rangers.
Another unapproved major expenditure overrun of Rs26bn has now been placed before the parliament for ex-post facto approval that the Pakistan Tehreek-i-Insaf government announced in its supplementary budget in September 2018 as subsidy on liquefied natural gas (LNG) for industrial consumers, but forgot to includes it in budget documents while seeking parliamentary approval at the time.
Also, another major supplementary grant of Rs12.2bn is being sought for the Ministry of Federal Education and Professional Training. The ministry had originally got Rs1.5bn budget but utilised almost 10 times greater funds in disregard to financial rules that do not allow supplementary expenses greater than original budget.
Another major expenditure overrun pertained to diversion of Rs24bn earmarked for the China-Pakistan Economic Corridor projects to development schemes recommended by the parliamentarians through the cabinet division. This also violated the financial rules because the cabinet division had an original budget of about Rs14.8bn and the supplementary grant was greater than the allocation.
The finance ministry also issued Rs520 million supplementary grants to the aviation division to meets expense overruns by the Airport Security Force and Rs190m supplementary budget as litigation cost against the Karkey case being fought against a Turkish power project.
Published in Dawn, June 24th, 2019
Defence services secured biggest supplementary grant - Pakistan - DAWN.COM
Khaleeq Kiani, Updated June 24, 2019
ISLAMABAD: The defence services secured the biggest supplementary grant of more than Rs36 billion during the outgoing fiscal year before seeking about 4.7 per cent higher allocations for next fiscal year.
The Ministry of Finance has reported to the parliament that the government exceeded by Rs222bn its sanctioned expenditure limit without parliamentary approval. Therefore, it sought Rs106bn regular supplementary grant from the parliament as fait accompli. The remaining Rs116bn amount pertained to surrender from one grant to another or foreign grants and would be treated as technical supplementary grants.
Of these regular supplementary grants, the largest supplementary grant of Rs36bn was given to the defence services which spent these funds without prior approval of the parliament. Of these, Rs20bn was spent on fencing and lighting of Pak-Afghan border, Rs5bn as special duty allowance on Pakistan Army and Pakistan Air Force (PAF) and Rs5.89bn recurring cost of Special Security Division for the army.
As such, the documents showed that the defence services had been allocated about Rs1.100 trillion in the current year’s budget which was later increased to Rs1.138tr. The government has allocated Rs1.152tr to the defence services for next year, showing an increase of about 4.8pc over the original allocation for current year or 1.4pc over the revised budget.
Govt exceeded its sanctioned expenditure limit by Rs222bn without parliamentary approval, says finance ministry ...
This is in addition to Rs370.5bn allocation for separate development expenditure of the defence division for next fiscal year compared to Rs153.5bn spent under this account during current fiscal year, showing an increase of 160pc or Rs217bn.
When put together, the total allocations for the defence services will amount to Rs1.522tr next year, compared to Rs1.253tr during current year, showing an increase of about 21.5pc.
Another Rs4.3bn was released by the finance ministry as shortfall of petroleum expenditure to the PAF and remaining expenses of community bunkers on the borders, Junior Naval Academy, Ormara, repair and maintenance of Cessna Grand aircraft and a helicopter of Pakistan Rangers.
Another unapproved major expenditure overrun of Rs26bn has now been placed before the parliament for ex-post facto approval that the Pakistan Tehreek-i-Insaf government announced in its supplementary budget in September 2018 as subsidy on liquefied natural gas (LNG) for industrial consumers, but forgot to includes it in budget documents while seeking parliamentary approval at the time.
Also, another major supplementary grant of Rs12.2bn is being sought for the Ministry of Federal Education and Professional Training. The ministry had originally got Rs1.5bn budget but utilised almost 10 times greater funds in disregard to financial rules that do not allow supplementary expenses greater than original budget.
Another major expenditure overrun pertained to diversion of Rs24bn earmarked for the China-Pakistan Economic Corridor projects to development schemes recommended by the parliamentarians through the cabinet division. This also violated the financial rules because the cabinet division had an original budget of about Rs14.8bn and the supplementary grant was greater than the allocation.
The finance ministry also issued Rs520 million supplementary grants to the aviation division to meets expense overruns by the Airport Security Force and Rs190m supplementary budget as litigation cost against the Karkey case being fought against a Turkish power project.
Published in Dawn, June 24th, 2019
Defence services secured biggest supplementary grant - Pakistan - DAWN.COM
Up to 200% increase in gas prices for domestic consumers sought - Pakistan - DAWN.COM
Imran seriously want to skin Pakistanis alive! I never knew he hated Pakistanis so much, even our Congress was not so insensitive and cruel. If it's up to him he will whip Pakistanis in public for fun, how are these people going to pay this much? What a handsome leader.
Imran seriously want to skin Pakistanis alive! I never knew he hated Pakistanis so much, even our Congress was not so insensitive and cruel. If it's up to him he will whip Pakistanis in public for fun, how are these people going to pay this much? What a handsome leader.
Dollar hits all time high of Rs160.73 against Pak rupee
LAHORE: The Pakistani Rupee (PKR) on Wednesday morning fell further in the early hours of trading at the interbank to another all-time low of Rs160.48/Rs160.73 against US Dollar (USD), an increase of Rs2.19, 3.45 per cent down, from its last close.
According to the available data, during the month of June, the Pakistani rupee depreciated by 8.15 per cent having closed the prior month at Rs147.92 against the mighty dollar.
LAHORE: The Pakistani Rupee (PKR) on Wednesday morning fell further in the early hours of trading at the interbank to another all-time low of Rs160.48/Rs160.73 against US Dollar (USD), an increase of Rs2.19, 3.45 per cent down, from its last close.
According to the available data, during the month of June, the Pakistani rupee depreciated by 8.15 per cent having closed the prior month at Rs147.92 against the mighty dollar.
Thank you Imran Khan you did what Nawaz couldn't do for us, way to go buddy, keep up the good work.
Edit- Its 162 now, 2 Rupees thank more for Imran.
180 is agreed projection even before budget sir. 200 is not so far after that.
Dollar doing #PKMKB....
@Arsalan123 with this Pakistan's economic shrunk by more than 5% in dollar terms and TATA group turn over increasing every year and by year end PKR is expected to be at 190-200 to a dollar and entire Pakistani economy will be less than TATA group alone. This is what @_Anonymous_ mentioned. This is the policy of Modi government to strangulate Pakistan economically..
I am loving it...
I doubt this is Modi's doing. Pakistan is achieving this on its own. I also doubt we'd have to wait till this year end for 1 USD to equal 200 PKR. They'd achieve it within 2 months at this rate. Then there's the FATF meeting in September / October. While I very much doubt they'd be black listed, they're still not out of the woods.Dollar doing #PKMKB....
@Arsalan123 with this Pakistan's economic shrunk by more than 5% in dollar terms and TATA group turn over increasing every year and by year end PKR is expected to be at 190-200 to a dollar and entire Pakistani economy will be less than TATA group alone. This is what @_Anonymous_ mentioned. This is the policy of Modi government to strangulate Pakistan economically..
I am loving it...
When Nawaz Sharif was removed as PM by Pakistani Army to install their puppet Imran Khan Pakistani GDP was $300 Billions and PKR was at 105/USD.
1 year of Imran will complete in August, by that time PKR will be around 175. That's 70 Rs or 66% depreciation.
Pakistani GDP in USD at the end of 2018-19 financial year (30 June 2019) - $205 Billion
In 2011 the GDP of Pakistan was $211 Billion, Imran took Pakistan 8 years back in just one year with 2% or less economic growth it will take decades to reach the level which Nawaz left.
Now Bajwa fanboys will blame everyone instead of that fool whose misadventure costed Pakistan decades of economic growth.
1 year of Imran will complete in August, by that time PKR will be around 175. That's 70 Rs or 66% depreciation.
Pakistani GDP in USD at the end of 2018-19 financial year (30 June 2019) - $205 Billion
In 2011 the GDP of Pakistan was $211 Billion, Imran took Pakistan 8 years back in just one year with 2% or less economic growth it will take decades to reach the level which Nawaz left.
Now Bajwa fanboys will blame everyone instead of that fool whose misadventure costed Pakistan decades of economic growth.
It will accelerate actually, if not done with intervention. Such falls in currency are on percentage points not absolute... also pakitan may have a huge settlement to pay I think : https://tribune.com.pk/story/1896993/1-pakistan-makes-final-push-reko-diq-settlement/
Their Foreign reserves will get stressed further.
Their system of counting forex reserves is most fkd up system, they actually count all the foreign currency in country as foreign reserve, even loans are counted as reserves.
Their net forex reserves were actually around negative $10 Billion few months ago, don't know where they stand now.
They use typical muneem ji type calculations ... however even that is valid by IMF standards,
PKR reached 164/USD today!
Now even common Pakistani is trying to hoard dollars further propelling the value. Thanks to widespread illiteracy and cunning elite 200-225 is the word on street, doesn't matter if it's the true value or not Pakistanis will propel it to that level for sure.
Dollar is becoming new Ponzi scheme and everybody is running to make good returns.
Now even common Pakistani is trying to hoard dollars further propelling the value. Thanks to widespread illiteracy and cunning elite 200-225 is the word on street, doesn't matter if it's the true value or not Pakistanis will propel it to that level for sure.
Dollar is becoming new Ponzi scheme and everybody is running to make good returns.
Trump is asking Fed to reduce interest rates. When Fed reduces rates, dollar goes down, when it increases the rate goes up. Pakistan is in a very bitter situation. If they extend the airspace ban again, PKR will go down by atleast another 5-7 rupees. This is our game. We can take hit for our airlines but can Pakistan economy take hits?
BTW, increased air traffic over India has more than made up for losses for GOI but yes airlines are suffering. We will maintain the tempo of conflict with Pakistan to ensure that PKR is devalued faster and Pakistan goes bankrupt. Another Venezuala in the making. Even the millions of Pakistani beggers in Saudia have refused to send dollars home. This is their state. Worst than a begger. Aur lo panga ek Gujrati say. Saala tumhara ghar bikwa dega meethi daal khilakay.
BTW, increased air traffic over India has more than made up for losses for GOI but yes airlines are suffering. We will maintain the tempo of conflict with Pakistan to ensure that PKR is devalued faster and Pakistan goes bankrupt. Another Venezuala in the making. Even the millions of Pakistani beggers in Saudia have refused to send dollars home. This is their state. Worst than a begger. Aur lo panga ek Gujrati say. Saala tumhara ghar bikwa dega meethi daal khilakay.