Current Final

Tag: Pakistan

  • ADB recommends targeted subsidies and tax reforms for Pakistan’s economic recovery

    ADB recommends targeted subsidies and tax reforms for Pakistan’s economic recovery

    The Asian Development Bank (ADB) has recommended that Pakistan implement targeted subsidies to alleviate inflationary pressures and improve the tax-to-GDP ratio in order to emerge from the current state of economic uncertainty.

    Yevgeniy Zhukov, Director General of the Central and West Asia Department, and Yong Ye, Country Director of the Pakistan Resident Mission, emphasised the significance of targeted subsidies to help the most vulnerable segments of society, as well as the mobilization of domestic resources to bolster the national economy. They also suggested strengthening the Benazir Income Support Programme (BISP) and improving its verification process to ensure that the assistance reaches only those who require it.

    Zhukov noted that the ADB has been providing financial assistance to the government to strengthen social security through the BISP programme since 2016. The ADB has provided $600 million in conditional cash transfers for health and education since 2021, and an additional $1.5 billion under the Countercyclical Support Facility.

    A significant portion of this funding will be directed to the BISP to provide necessary assistance to those most affected by ongoing difficulties. Zhukov further suggested that Pakistan should improve its revenue collection, as its tax-to-GDP ratio of 10 per cent is one of the lowest in the region. He cautioned that if the government is only collecting 10 per cent, it may not have adequate resources to provide support and boost income.

    Yong Ye indicated that the ADB, World Bank, European Union, and United Nations had pledged assistance to Pakistan after devastating floods last year, and a second meeting of the Geneva conference was scheduled to take place soon to discuss progress. Zhukov expressed sympathies for flood victims and stated that the ADB had approved a $1.5 billion programme for Pakistan before the floods to address the negative impact of the Russia-Ukraine war on the country’s economy, which was then repurposed to provide social protection for the flood-affected people.

    The ADB has approved additional emergency assistance, including a $175 million loan and $5 million in grants, to rehabilitate damaged infrastructure and develop a stronger infrastructure that can withstand future floods. The bank is working with Pakistan and other partners, such as the International Monetary Fund and the World Bank, to introduce important structural reforms in public finance management, domestic resource mobilization, and energy sector reforms. The ADB is committed to collaborating with its partners and the Pakistani government to ensure that the reform agenda is advanced.

  • Fact Check: Did Bilawal visit graves of Indian soldiers who died in Kargil war?

    Fact Check: Did Bilawal visit graves of Indian soldiers who died in Kargil war?

    Claim: A tweet is being circulated on social media, stating that Foreign Minister Bilawal Bhutto Zardari visited the graves of Indian soldiers who died in Kargil war against Pakistan. Along with the tweet is a photo of the Foreign Minister wearing a heavy black coat as he stands before a wreath placed at a memorial.

    The tweet has been shared more than 4093 times.

    https://twitter.com/p4pakipower1/status/1654573262955839488

    Fact: The picture is from foreign minister’s visit to Lithuania earlier this year. During the visit, Bilawal laid a wreath at the monument of Lithuanian martyred freedom fighters.

    Verdict: The claim is false.

    Verdict: The claim is false

  • AJK man legally transfers thousands of kanals to Maryam Nawaz

    Zahid Hussain, a man hailing from Azad Jammu and Kashmir (AJK), handed down his land spread across thousands of kanals to Pakistan Muslim League-Nawaz (PML-N) Senior Vice President Maryam Nawaz via a legal procedure.

    He said that Maryam can use the land for whatever purpose she sees fit.

    On the legal deed, which has been shared on Twitter, the man stated, “I, Zahid Hussain, s/o Wilayat Hussain, hereby declare that I am of sound mind and have voluntarily decided to bequeath all the lands I possess, whether 50,000 kanals or 32,000 kanal, to Maryam Nawaz, d/o Nawaz Sharif, without any coercion or pressure from anyone”.

    Moreover, the affidavit stated that the PML-N leader is now the owner of 50 per cent of the property, excluding approximately 50 kanals which is the inheritance of Hussain’s children and other heirs, in the life of Mazhar (possibly an heir of Hussain). According to the man, she will be the owner of 100 per cent of the property, excluding the same as above, after Mazhar’s death.

    Reacting to the news, Maryam Nawaz said that it is “very touching”.

    “OMG! Why would he do that! It is very touching though,” Maryam wrote on Twitter.

  • Rawalpindi, Islamabad residents forced to buy low-quality flour at exorbitant prices

    Rawalpindi, Islamabad residents forced to buy low-quality flour at exorbitant prices

    Residents of Rawalpindi and Islamabad are paying exorbitant prices for low-quality flour due to the poor performance of the District Food Department. The officials in charge have failed to take concrete steps to prevent smuggling and hoarding of flour, despite lip service and paperwork.

    As a result, locals are forced to pay more for flour than in any other city in the country. Dealers have hoarded ‘Atta’ and are selling a 15-kilogram bag for Rs2,300 to Rs2,650, while ‘Chakki’ owners are selling 1-kilogram ‘atta’ for Rs180 to Rs200. The price of a 20-kilogram ‘atta’ bag has reached Rs3,200 to Rs3,500 in retail shops.

    The Utility Store Corporation (USC) has resumed providing subsidized flour, but the quality is poor. The District Food Department and flour mill owners are working together to supply unhygienic flour at high prices. The department is not taking action to stop smuggling or control profiteers and hoarders, playing on both sides of the wicket.

    According to The News, District Food Controller (DFC) Hasan Nazir has admitted to a flour shortage in Rawalpindi and has written to the Secretary of Food (Punjab) to issue special permits for wheat supply. He assures the public that the ‘atta’ crisis will be resolved within weeks, and they are working to stop wheat smuggling, with over 600 wheat-filled vehicles stopped en route to Afghanistan.

    However, corrupt officials within the District Food Department are involved in wheat smuggling to Afghanistan via Torkham, and only ten vehicles are being stopped to show performance in the media while the officers let 90 vehicles go. The corrupt officials have several pending cases against them in the Anti-Corruption Establishment (ACE), Rawalpindi, and the Federal Investigation Agency (FIA).

    Despite Prime Minister Shahbaz Sharif claiming a bumper wheat crop this year, residents are struggling to afford basic necessities due to the inflated price of flour. The Punjab government has set the price of 40-kilogram wheat at Rs3,900, but owners are violating this order and selling it for Rs5,400 to Rs6,000 in Rawalpindi. The situation is dire, with many struggling to afford basic necessities due to the inflated price of flour.

  • Pakistan’s weekly inflation reaches record high of 48.35%

    Pakistan’s weekly inflation reaches record high of 48.35%

    According to data from the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) has risen by 1.05 per cent to reach a record high of 48.35 per cent year-on-year for the week ending May 4. The SPI for the aforementioned week was recorded at 254.84 points, compared to 252.2 points the previous week.

    Of the 51 monitored items, 30 items experienced an increase in average price, while 9 items decreased, and 12 items remained unchanged during the week.

    The items that experienced an increase in average prices on a week-on-week (WoW) basis were chicken (8.91 per cent), potatoes (3.99 per cent), powdered milk (3.81 per cent), pulse gram (1.96 per cent), pulse masoor (1.83 per cent), eggs (1.81 per cent), mutton (1.71 per cent), pulse mash (1.58 per cent), cooked daal (1.36 per cent), and bread (1.13 per cent). The non-food items that saw an increase were gents sponge chappal (58.05 per cent), gents sandal (33.36 per cent), ladies sandal (14.31 per cent), and washing soap (1.27 per cent).

    On the other hand, a decline was seen in the prices of onions (16.69 per cent), garlic (3.44 per cent), tomatoes (3.41 per cent), diesel (1.70 per cent), mustard oil (0.99 per cent), LPG (0.96 per cent), cooking oil 5 litre (0.40 per cent), and vegetable ghee 2.5kg & 1kg (0.10 per cent each).

    Monitored ItemsAverage Price Increase/Decrease
    Chicken+8.91%
    Potatoes+3.99%
    Powdered Milk+3.81%
    Pulse Gram+1.96%
    Pulse Masoor+1.83%
    Eggs+1.81%
    Mutton+1.71%
    Pulse Mash+1.58%
    Cooked Daal+1.36%
    Bread+1.13%
    Onions-16.69%
    Garlic-3.44%
    Tomatoes-3.41%
    Diesel-1.70%
    Mustard Oil-0.99%
    LPG-0.96%
    Cooking Oil 5L-0.40%
    Vegetable Ghee 2.5kg-0.10%
    Vegetable Ghee 1kg-0.10%
  • Fitch warns of further depreciation of Pakistani rupee due to $6.7 billion debt payment

    Fitch warns of further depreciation of Pakistani rupee due to $6.7 billion debt payment

    Fitch, the world’s leading credit rating agency based in Hong Kong, said on Friday that Pakistan must pay a total of $6.7 billion in debt payments for the ongoing fiscal year of 2022-23.

    Of this amount, $3.7 billion must be paid by Islamabad this month, with another $3 billion due in June. Krisjanis Krustins, Fitch’s director, warned that these payments could cause the Pakistani rupee to depreciate further, exerting greater pressure on the country’s currency.

    Krustins also revealed that Pakistan expects a rollover of $2.4 billion from China to address its economic needs. However, he emphasised the need for Pakistan to revive its International Monetary Fund (IMF) loan programme.

    Pakistan has been working to restart the stalled loan programme with the IMF. Earlier this year, Saudi Arabia and the United Arab Emirates pledged external funds, but the IMF has demanded that Pakistan “do more” to unlock the loan programme.

    Finance Secretary Hamid Yakoob recently met with the IMF in the US, but the meeting remained unfruitful. The international lender has proposed that Pakistan arrange $1 billion from commercial banks to unlock the loan programme.

  • Pakistan to pay for Russian oil in Chinese yuan, shipping expected in June

    Pakistan to pay for Russian oil in Chinese yuan, shipping expected in June

    According to a senior official from Pakistan’s Ministry of Energy, the country is expected to pay for a test cargo of 750,000 barrels of Russian oil in Chinese Yuan. The cargo is set to dock in Pakistan in June, with a possibility of arrival by the end of May.

    It has been suggested that the Bank of China will play a role in the transactions. However, the exact mode of payment and discount offered have not been made public to avoid backlash from other countries purchasing Russian oil directly from Moscow.

    The test cargo will likely contain URAL crude, which will be refined by Pakistan Refinery Limited. Commercial analysis of Russian crude has been conducted in favour of Pakistan’s economy, but will be further assessed after refining. The estimated shipping cost of the Russian oil is around $15 per barrel, which will be confirmed upon arrival at the Pakistani port.

    Pakistan has reportedly settled on a per barrel price of $50-52, lower than the cap price of G7 countries at $60 per barrel. Pakistani refineries currently import 80 per cent of crude under long-term agreements with ADNOC and Saudi Aramco. However, the remaining 20 per cent provides a cushion to purchase Russian oil under GtG on a long-term agreement to some extent. The government plans to keep some cushion for purchasing crude from the international market, as crude prices can fluctuate.

    Pakistan had initially hoped to obtain Russian crude at a discount close to $50 per barrel, $10 per barrel below the cap price imposed by G7 countries in response to the Ukraine conflict. However, a top official from the coalition government has expressed concern that importing Russian crude at a 30 per cent discount under the GtG agreement may not provide sufficient relief.

  • Japanese car companies consider establishing hybrid vehicle plants in Pakistan

    Japanese car companies consider establishing hybrid vehicle plants in Pakistan

    Japan has urged Pakistan to allow the import of manufacturing equipment for vehicles due to the shortage of dollars, which has affected the issuance of letters of credit to Japanese companies operating in the country.

    Japanese firms are considering the establishment of hybrid vehicle plants in Pakistan, with plans to export the vehicles from the country in the future.

    During a meeting between Ambassador Wada Mitsuhiro and Finance Minister Senator Ishaq Dar at the Finance Division, the Ministry of Finance issued an official statement. The Vice Chairman of Toyota, Shinji Yanagi, SAPM on Finance Tariq Bajwa, finance secretary, and senior officers were also in attendance.

    The finance minister briefed the envoy on the economic challenges and priorities of the government and emphasized that Japan is one of its major development partners. The cooperation between the two countries will strengthen in multiple fields for mutual benefit. The finance minister also welcomed the investment plans of Japanese companies in Pakistan.

    Ambassador Mitsuhiro praised the government’s pragmatic policies and actions and expressed confidence in the country’s economic policies. Meanwhile, a World Bank delegation led by Mamta Murthi, Vice President of the World Bank for Human Development, met with Dar at the Finance Division.

    Murthi emphasized the importance of investing in human capital, particularly in education, health and nutrition, social protection, population control, and women’s development. She also highlighted the importance of local ownership and community participation in implementing development projects.

    The finance minister briefed Murthi on the government’s policies and programs related to key areas of human development to uplift the masses and eliminate poverty in the country. He expressed the government’s commitment to work with the World Bank to achieve their shared goals of sustainable development in Pakistan.

  • Historic high: Gold price in Pakistan soars to record-breaking Rs225,300 per tola

    Historic high: Gold price in Pakistan soars to record-breaking Rs225,300 per tola

    Pakistan’s economic turmoil and an increase in international gold rates have led to a new high in the value of the precious metal in the country.

    According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) surged by Rs2,600 per tola and Rs2,229 per 10 grams to reach Rs225,300 and Rs193,158, respectively.

    The price of gold in the international market also rose by $29 to settle at $2,044 per ounce. In Pakistan, the rising gold rate is a consequence of weakened economic fundamentals, rupee depreciation, and record-high inflation.

    During such times, people prefer to buy gold as a hedge against inflation and currency depreciation. Furthermore, the delay in an agreement with the International Monetary Fund (IMF) for a much-needed economic bailout has led to increased demand for gold as it negatively impacts the currency market.

    The APSGJA also revealed that the price of gold is Rs2,500 per tola “undercost” in Pakistan as compared to the Dubai market, indicating that the Pakistani gold market is currently cheaper than the global market.

    Finally, the rate of silver also increased to a new high in the country, with the rate of silver rising by Rs120 per tola and Rs102.88 per 10 grams to settle at Rs2,870 and Rs2,357.68, respectively.

  • Wes Anderson in DI Khan? Believe it (or not)

    It’s true that there are a lot of reasons to be miserable in Pakistan right now: inflation, political instability, religious conflicts, the list keeps going.

    But it’s heartwarming to witness how talented Pakistani people are that they keep blowing us away with their creativity and sense of humor, such as a new trend that is re-imagining what Wes Anderson films would look like if instead of the West, they were shot in Pakistan.

    A social media user reimagined how Anderson’s film would look like in a village in Dera Ismail Khan.

    The result: mindblowing.

    Another video that kick started the trend was when a man decided to re-imagine how the iconic Hollywood director’s film would be shot if he landed in Chitral-and seriously we would love to pitch these ideas ourselves to Anderson.

    Twitter users are blown away by the creativity and honestly we agree with all of them. Let’s start calling directors like Martin Scorsese and Quentin Tarantino to Pakistan!

    https://twitter.com/percyakr21/status/1653496868134088704?s=20