Current Final

Tag: pakistan economy

  • 59% traders consider Pakistan is not ‘moving in right direction’: Gallup Survey

    The ratio of traders who consider that Pakistan is not moving in the right direction has jumped from 37 per cent from the last quarterly report to 59 per cent states Gallup Pakistan’s fourth quarterly report of Business Confidence Index (BCI).

    The survey was conducted from October 13-28 and nearly 580 respondents, belonging to the country’s traders’ community participated in it.

    The report states that responders have expressed great anxiety over the future of business in the country as the ratio of those predicting improvement in future business has dropped from 70 per cent to 61 per cent in the survey, reports Geo News.

    Surprisingly, the given statistics in the report show that in Gallup Pakistan’s second quarterly report, 49 per cent of traders were happy with business activity but now 54 per cent of them expressed their satisfaction.

    While answering the question, “which issues do the respondents want the government to address instantly”, 48 per cent declared inflation as the biggest problem for business, 16 per cent sought relief for the business class, 14 per cent for the stability of the Pakistani currency, 13 per cent for consistency in government policies, 6 per cent for controlling corruption, 6 per cent for the elimination of Covid-19 and ending lockdowns, 3 per cent for ending political instability, 3 per cent for improving export policies and two percent for non-availability of PayPal.

    Among them, seven percent of respondents said they had no issue which could be resolved by the government.

  • Shaukat Tarin presents the Pakistan Economic Survey 2020-21

    Shaukat Tarin presents the Pakistan Economic Survey 2020-21

    Finance Minister Shaukat Tarin presented the Pakistan Economic Survey 2020-21 at a press conference in Islamabad on Thursday. However, the document did not have the latest figures on poverty and unemployment.

    Tarin revealed that the industrial and services sectors had helped the country post-Gross Domestic Product growth of 3.94 per cent in the first nine months of the fiscal year [FY](July to March), significantly higher than the target of 2.1 per cent.

    “The agriculture and manufacturing sectors helped the economy grow to 4.4%, laying stress on the need for sustainable growth in Pakistan in the years to come,” added Tarin.

    Coronavirus Pandemic

    The minister opened his press briefing by speaking highly of Prime Minister Imran Khan’s policies in combating the coronavirus pandemic.

    “The government itself had set [GDP] growth will be 2.1pc and the IMF predicted even lower. But the decisions by this government such as incentivising manufacturing and textiles, construction, and interventions in agriculture have helped the economy recover,” said Tarin.

    He said many people lost their jobs when the pandemic hit Pakistan, however, due to PM’s visionary policy of not imposing a complete lockdown across the country, millions of people who were unemployed were hired again. 

    “The economy is recovering,” he said. 

    Remittances

    Tarin said Pakistan’s remittances had broken records, adding that they had crossed $26bn. He said that lately imports, especially food in the form of wheat and sugar, were increasing as Pakistan’s economy was growing at the same time. 

    “We were net exporter of food but now, we have become a net importer,” he said. “Our exports registered a growth but our remittances increased manifold,” he added. 

    Ehsaas Programme

    Tarin spoke highly of the Ehsaas programme, adding that the World Bank had described it as “one of the best and the largest” poverty alleviation initiatives across the globe. 

    “Full credit goes to Sania Nishtar,” he said, adding that handing out cash to 15 million people was not a small achievement.

    Growth rate

    Tarin said he had told the prime minister it was time to focus on sustainable growth “until we go to 5-8pc GDP growth”.

    “We will do interventions and take care of the poor. The poor man has been crushed in this stabilisation phase because the dreams we have shown them have been of a trickledown economy. And this can only happen when growth is sustainable and continuous for 20-30 years,” he said.

    “Countries which had sustainable growth, they grew continuously for 20-30 years. What have we done? Every time we grow by borrowing money, which is credit-based growth.”

    Current Account

    According to the survey, during FY 2021, while the world was reeling from the economic impact of the pandemic, Pakistan’s “external sector appeared as a key buffer for resilience.”

     “The main driver of improvement in current account balance was the robust growth in remittances,” it stated.

    Trade Deficit

    “During July-March FY 2021, export of goods grew by 2.3 percent to $18.7 bn as compared to US$ 18.3 bn the same period last year. Import of goods grew by 9.4pc to $37.4 bn as compared to US$ 34.2 bn last year. Consequently, the trade deficit increased by 17.7per cent to $18.7bn as compared to $15.9bn last year,” the survey said.

    Inflation

    The finance minister said the government wanted to control inflation “but prices are still high and affecting the common man”.

    “So the way to solve this is by increasing production and that is why we have focused on agriculture in this budget,” Tarin said.

    Federal Board of Revenue (FBR)

    Speaking about the FBR, Tarin said he would end the practice of people being harassed by the bureau. “FBR will not audit [businesses or persons] but a third-party audit will be conducted,” he said. 

    International Monetary Fund (IMF)

    Tarin said Pakistan’s negotiations with the IMF were ongoing, adding that the international money lender had asked the government to hike tariffs and increase taxes. 

    The finance minister said Pakistan and the IMF want the same thing; sustainable growth, adding that the country cannot afford to increase taxes or hike tariffs so that the poor and the salaried class do not feel additional burden of inflation. 

    “This is a red line for the prime minister,” he said. “We will not further burden the poor,” he added. 

    Energy Sector

    Tarin said Pakistan’s economy was burdened due to the overcapacity in the power sector, saying that “it was a very big challenge and a black hole” for Pakistan. 

    Privitisation

     Tarin said it was fair to ask how he can privatise state-owned enterprises when all others, before him, promised to do the same but failed to. 

    “Nawaz Sharif used to shout the same slogan during the first time [when he was prime minister] and then for a second time [when he again became the prime minister] and then a third, but nothing happened,” he said. 

  • PTI fudging economic figures, claims PML-N

    A pre-budget seminar was organised by the Pakistan Muslim League-Nawaz (PML-N) on June 3 in Islamabad.

    The seminar was organised by the Economic Advisory Council of the PML-N on the direction of party president Shehbaz Sharif.

    Titled ‘Economy sinking under Imran Khan’s government’, the seminar discussed all the economic issues before the upcoming budget. The main focus was on the economic policies of the Pakistan Tehreek-i-Insaf (PTI) government.

    Graphs shown during the seminar entailed that Pakistan’s gross domestic product (GDP) grew by 5.8 per cent in PML-N’s last year, the highest in 16 years. In addition, GDP growth consistently remained above 4 per cent in each of PML-N’s 5 years. GDP growth has significantly declined during PTI’s tenure with 2.1 per cent growth in 2019.

    PTI is claiming 3.9 per cent growth now in 2021, but this claim is being challenged by independent economists. Whereas, GDP has significantly declined during PTI’s tenure with 2.1 per cent growth in 2019.

    Shehbaz Sharif claimed that the government was pushing out wrong statistics and misinforming the public since the start of the its tenure.

    “The government’s statistics [regarding the budget] have already become a subject of debate,” Shehbaz said while addressing the seminar virtually.

    “Their past is evident and they have been putting forth forged figures,” he said. “This comes on top of the government’s worst performance and major failures.”

    Last week, on Sunday, while addressing the nation live, Prime Minister Imran Khan said the Opposition parties were complaining about the government misleading the nation on the economy as they had not expected it to achieve a growth rate of nearly 4 per cent.

    “The economic growth rate has baffled political opponents who wanted the government to fail in meeting these challenges left behind by our predecessors,” added Khan.

  • PM carries the ‘begging bowl’ with him everywhere

    PM carries the ‘begging bowl’ with him everywhere

    Pakistan People’s Party (PPP) chairperson Bilawal Bhutto-Zardari on Monday chastised Prime Minister Imran Khan, blaming him for not caring about the common man’s problems in Pakistan.

    In a statement, Bilawal held PM Khan responsible for the dreadful economic situation of the country, adding that “every Pakistani is paying the price of Imran Khan’s ‘Change Tsunami’”

    Speaking about PM’s recent trip to Saudi Arabia, Bilawal said it was unfortunate how the same prime minister, who used to talk about not obtaining loans from other countries, was carrying the “begging bowl” with him everywhere in the world.

    “Mr Prime Minister, surely you hold vast experience in collecting donations. However, countries do not run on donations alone,” said the PPP chairperson.

    “If the money we receive from loans continues to get wasted in corruption, the common man will continue to bear the burden of inflation,” he said, adding: “Imran Khan, you should come out of your palace in Bani Gala.”

    “The Chinese government’s hesitancy [in issuing the funds] is in fact an expression of their lack of confidence in the PTI government,” he said, adding that foreign investors were afraid of investing in Pakistan. 

    The PPP chairperson’s criticism comes after the prime minister returned from the Saudi Arabia visit aimed at strengthening ties between the two countries.

  • SBP governor says bank will implement policies benefitting economy

    SBP governor says bank will implement policies benefitting economy

    State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Sunday said that SBP would implement those policies benefiting economy of Pakistan.

    Monitory policy adopted by SBP is supporting the economy of Pakistan, he said in an interview with a private television channel.

    Commenting on approaching International Monitoring Fund (IMF), he said: “We had to seek support of IMF because of weak economic condition.”

    During COVID-19 pandemic, he said the government had to lift loan from IMF amounting to Rs250 billion. Appreciating the steps taken by Pakistan Tehreek-e-Insaf (PTI) government to avert coronavirus pandemic, he said that the SBP and the ruling party had successfully managed to cope the difficulties arisen due to spreading virus that played havoc around the world.

    WATCH THE FULL INTERVIEW:

    In reply to a question about policy rate, he said that the banks have implemented the policy rate that stood at 13 per cent. To another question about SBP’s working in future, he said that the banking system as autonomous body would have better results.

  • ‘Pakistan has the potential to become an economic hub,’ says Asian Development Bank

    ‘Pakistan has the potential to become an economic hub,’ says Asian Development Bank

    The Asian Development Bank (ADB) has said that Pakistan has huge potential for economic progress given its strategic location and youthful growing population.

    In an interview, Country Director of ADB for Pakistan Xiaohong Yang said: “Pakistan has the potential to become a regional hub for trade and economic activity but the major impediment is weak connectivity and trade links. Moreover, the COVID-19 has pandemic caused a sharp downturn in 2020, and is likely to push more people into poverty.”

    Yang also said that ADB is taking major steps in providing critical finance to the government to implement it’s pro-poor fiscal and monetary policy, and to deal with the impacts of the pandemic, adding that ADB has also financed a $2 billion loans to help Pakistan overcome the pandemic challenges.

    ADB is working towards introducing best practices, sharing knowledge and trying to develop capacity building through partnerships will all stakeholders, says Yang.

    The bank has also devised a new partnership strategy (2021-2025) for Pakistan. It is designed to restore growth and economic stability by deploying sovereign and non-sovereign operations to support infrastructure, agribusiness, and finance sector investment.

    ADB will target reforms that boost competitiveness and private sector development, create jobs and drive market innovation.

  • SBP reserves recorded at $12.9bn after $82m decrease

    SBP reserves recorded at $12.9bn after $82m decrease

    The foreign exchange reserves held by the State Bank of Pakistan (SBP) has witnessed a 0.63 per cent decrease on a weekly basis, said a statement issued by the central bank.

    After the decrease due to external debt repayments, the reserves held by the SBP stood at $12,949.1 million, down $82 million, during the week ended on February 4. The SBP reserves were recorded at $13,031.2 million in the previous week.

    Similarly, the foreign exchange reserves of commercial banks also slightly dropped to $7.124 billion from $7.131 billion.

    Earlier this week, Pakistan had approached China to seek relief in debt repayment, a report had claimed. Pakistan had made an informal request to ease terms on the repayment of debt on about a dozen power plants set up under the China-Pakistan Economic Corridor over the past eight years, Bloomberg had reported.

    “The parties have canvassed Beijing’s willingness to stagger debt payments, as opposed to lowering equity returns,” the report said, adding that Pakistan has yet to make a formal offer. The report had claimed that “Pakistan will formally make the request…after it concludes deals with those local power producers to reduce electricity tariffs”.

  • IKEA might not really be coming to Pakistan

    Pakistan’s ambassador to Germany, Dr Mohammad Faisal, on Thursday tweeted claiming that IKEA, a multinational conglomerate that designs and sells ready-to-assemble furniture, is coming to Pakistan.

    But soon after the news was announced in the media, the ambassador deleted his tweet and did not reply to queries sent to him regarding the development either.

    To add to the surprise, Profit reported, relevant ministries in the country were also unaware of the development. Officials at Board of Investment (BoI), the premier investment promotion agency of Pakistan working under the administrative control of the Prime Minister’s Office, mandated to promote and facilitate both local and foreign investment was also unaware of the development.

    The official claimed that there was no development, not even at the initial stage, regarding investment by IKEA.

    Similarly, the Ministry of Commerce, and officials at both the offices of adviser to prime minister on commerce and investment as well as secretary commerce were also unaware about the development.

    The official spokesperson at Securities and Exchange Commission of Pakistan (SECP) said that no application for the registration of the company was received by the commission.

    However, SECP’s website shows the registration of a company IKEA TRADING (HONG KONG) LIMITED in 2006, at CRO Karachi. As per the SECP’s record, another firm in the name of IKEA SUPPLY AG SWITZERLAND was registered in Karachi in 2015.

  • 77% Pakistanis believe country is heading in wrong direction: survey

    At least 77 per cent Pakistanis believe that the country is heading in the wrong direction, whereas 23 per cent think there’s nothing wrong with Pakistan, said a survey by research company IPSOS.

    According to The News, the survey was conducted in the first week of December and over 1,000 people participated in it. “The findings were released on Tuesday for the last quarter (Q4) of 2020 and compared with people’s responses from the same period a year ago,” it added.

    Last year, 21 per cent people believed that Pakistan was on the right track, while 79 per cent contested this view.

    This year, 36 per cent said that their current personal financial situation was weak, while 51 per cent said it was neither strong nor weak, and 13 per cent said they were in a strong financial position.

    In comparison with the results of the last year, the people are in a better financial position: the data showed that 38 per cent believed that their financial situation was weak, 5 per cent viewed it as strong, and 57 per cent said it was okayish.

    Meanwhile, on province-wise assessment, the report found that a “poor financial situation” featured in almost all the provinces and inflation ranked number 1 among the list of top four contributors.

    “In Sindh, the second-highest contributor was viewed to be unemployment (20 per cent), followed by COVID-19 (17per cent) and poverty (16 per cent). In Punjab, 23 per cent people felt the province’s poor financial situation was due to unemployment, 8 per cent thought it was due to COVID-19 and 14 per cent believed poverty played a key role,” the newspaper stated.

    Meanwhile, in Khyber Pakhtunkhwa about 18 per cent believed the poor financial situation was the result of unemployment, 12 per cent viewed coronavirus and 8 per cent felt it was poverty that was behind the province’s financial situation.

    Similarly, in Balochistan about 25 per cent responded by blaming unemployment, a mere 2 per cent felt COVID-19 played a role, and 25 per cent felt it was poverty that has led to the province’s dismal state of financial affairs, said reports.

  • Ex-PM Abbasi speaks about meeting on economy with Gen Bajwa

    Ex-PM Abbasi speaks about meeting on economy with Gen Bajwa

    Former prime minister and Pakistan Muslim League-Nawaz (PML-N) leader Shahid Khaqan Abbasi has revealed that Chief of Army Staff (COAS) General Qamar Javed Bajwa had held a meeting with him in November 2018 to discuss the economic issues prevalent at the time, especially the International Monetary Fund (IMF) bailout.

    Abbasi revealed the details of the meeting in a talk show on Samaa TV. According to the lawmaker, who has also served as a petroleum minister in the cabinet of Nawaz Sharif, PML-N leaders Khawaja Asif and Miftah Ismail were also present in the meeting. “The details of such meetings are usually kept confidential, but now that they are being publicised I don’t see any harm in telling the details,” the ex-PM added.

    The army chief wanted the opinion of the PML-N lawmakers on the economy in the light of growing inflation and a tanking economy, Abbasi said.

    “We relayed our reservations on the state of the economy to the army chief,” he told anchorperson Nadeem Malik. “We told the army chief that Pakistan would face tremendous economic pressure within next three years due to the policies of the incumbent regime,” he said, adding that the government took six months to wreck the economy.

    Last week, former Sindh governor Muhammad Zubair revealed the details of the meeting with Gen Bajwa. Muhammad Zubair, who has been appointed as party supreme leader Nawaz Sharif and his daughter Maryam Nawaz’s spokesperson, revealed further details of his “secret meeting” with Gen Bajwa.

    In an exclusive interview with The Current, Zubair said that he isn’t a big fan of gulab jamun but that’s what they had for dessert the night he met Gen Bajwa over dinner.“I’m not a gulab jamun person but I couldn’t say no to him [Gen Bajwa] since he is a dignitary… he is the COAS,” the former Sindh governor said when asked about the details of his meeting that was also reportedly attended by Inter-Services Intelligence (ISI) Director General (DG) Lt Gen Faiz Hameed.