Pakistan's Economy - News and Updates

[jupiter2007]

Bhaijaan I'm a PTI supporter thru and thru but even I have to call it BS when someone predicts the economic policies will cause dollar to go half in price in just 5 years

If performance remains good then dollar will remain at same vicinity of 140-150 by this time in 5 years, or maybe appreciate to max 120-130.

I will fix this graph, but it will be less than 100 for sure by 2023.

 

[maithil]

Witty this...

https://twitter.com/x/status/1077928261429153792

 

[Maxpane]

Process on Qatari promise to provide 100,000 jobs started'
28 Dec, 2018

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Qatar has opened "Visa Facilitation Center" in Islamabad to facilitate Pakistani work force in getting visa.

READ MORE:Cabinet committee on Energy meets: PM Imran Khan takes important decisions
Special Assistant to Prime Minister on Overseas Pakistanis and Human Resource Development, Zulfikar Bukhariand Qatar's Ambassador to Pakistan Saqar Bin Mubarak inaugurated the facilitation center.

Talking to media on the occasion, Zulfikar Bukhari said Qatar has promised one hundred thousand jobs for Pakistani workforce and the process in this regard has been started.


READ MORE:Pakistan FM Shah Mehmood Qureshi holds important meeting with Russian counterpart in Moscow
He said Pakistan is one of the eight countries to have a Qatari Visa Facilitation Center for swift processing of workers' Visa.

He said the government is also in dialogue with Qatari officials to adjust the skilled labor force coming back from Saudi Arabia, in Qatar.

READ MORE:Panama JIT, Fake Accounts JIT are case studies on how states fail: PM Imran Khan
The Qatari ambassador on the occasion said that in the past, Visa process was handled by Qatar government but now applicants can get their Visas processed and approved through the Visa facilitation centre in Islamabad

 

[aziqbal]

I don't know why Pakistanis are so obsessed with loans

they do realise its a loan and has to be paid back?

what Pakistan needs is investment and turn away from loans

1st liberation
2nd domestic reforms through deregulation
3rd lower cost of doing business
4th using public investment to build capital

then watch 5-6% growth rate

 

[Maxpane]

Russia expressed keen desire to build multiple mega peojects in Pakistan
28 Dec, 2018

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KARACHI: Bilateral trade between Pakistan and Russia improved to US$660 million during 10 months of the current calendar year which is expected to reach around US$750 to US$800 million by year end.

READ MORE:US General Scott Miller held important meeting with COAS General Bajwa at GHQ
According to an official of Karachi Chamber of Commerce & Industry (KCCI), Trade representative of Russia , Yury Kozlov, during his visit to the chamber said there existed huge potential to boost the current trade volume between the two countries.

This, however, said to be gradually improving due to lack of direct banking channels and this was despite the fact that State Bank of Pakistan and the Central Bank of Russian Federation had already signed a Memorandum of Understanding (MoU) in January 2018.


READ MORE:Pakistan Army Chief awarded with Medal from Russian Federation
The Russian Trade Representative said the central banks of both countries need to act more energetically so as to ensure that needed progress is made without any unwarranted delays.

Deputy Trade Representative of Russia , Ruslan Aliev, President KCCI Junaid Esmail Makda, Vice President KCCI Asif Sheikh Javaid, Chairman KCCI’s Subcommittee for Diplomatic Missions and Embassies Liaison Shamoon Zaki and Managing Committee members were said to be present on the occasion.

READ MORE:Cabinet committee on Energy meets: PM Imran Khan takes important decisions
Yuri Kozlov was quoted to have said that Russia was engaged in numerous projects and was cooperating with Pakistan in the construction of north and south gas pipeline from Karachi to Lahore and also engaged in a project at Jamshoro Power Plant for production of 600MW.

Russia was said to had also offered assistance in the expansion of Pakistan Steel Mills while Russia’s Gazprom has also shown interest in financing Iran-Pakistan (IP) gas pipeline project.

On the occasion compact discs carrying presentations of 200 Russian companies and details of the exhibitions scheduled to be staged in Russia throughout the year were also handed to KCCI officials.

It was said that all these Russian companies were keen to explore opportunities in Pakistan whereas the business and industrial community of Karachi Chamber should look into the possibility of participating in numerous trade exhibitions in Russia .

KCCI was suggested to send a trade delegation to Russia with a view to enhance the existing trade and investment cooperation between the two countries.

Earlier, KCCI President, Junaid Esmail Makda mentioning that oil and gas sector and heavy industries were the two promising areas for Russian investors.

Pakistan Steel Mills, he said can be turnaround through Russian assistance, he added emphasizing that Pakistani food exporters can capitalize on the ban imposed by the Russian government on agricultural imports from European countries.

Pakistan can export livestock, meat, apple, mango, citrus and seafood to Russian markets, he said.

Makda also suggested need to sign a MoU between the Karachi Chamber and Moscow Chamber to help improve business linkages between the two.

 

[ARMalik]

There are so many infrastructure projects needed in Pakistan in areas like transportation, water and sewage, energy, agriculture and so on. My question to Imran Khan is why are overseas Pakistanis not being invited to invest in these projects?? Why is he going around to countries like China, Turkey, Saudi Arabia, etc and asking them to invest and why not asking overseas Pakistanis to form partnerships by establishing Government-Private enterprises?? I really do not get it.

 

[insight-out]

Malaysian company to invest $250m in telecom industry

Edotoc chairman Datuk Azzat Kamaluddin calls on Prime Minister Imran Khan in Islamabad on Friday. PHOTO: PID

ISLAMABAD: Malaysia’s Edotco Group plans to increase its investment in Pakistan by $250 million in the next five years.

The plan was revealed by the group’s chairman Datuk Azzat Kamaluddin, who called on Prime Minister Imran Khan in Islamabad on Friday.

Edocto, an integrated telecommunications infrastructure services company which specialises in end-to-end solutions in the tower services, has an existing investment of $100 million in the country.

The prime minister highlighted the steps being taken to improve ease of doing business in Pakistan, and assured that all possible facilitation would be provided to investors.

The group chairman appreciated the PM’s vision, as well as the policies of the government.

Separately, the Malaysian delegation led by Kamaludin also called on Finance Minister Asad Umar, and shared his company’s plans for cooperation in the telecom sector.

 

[Introvert]

Pakistan receives $15m export order for kinnow, dates, fruits and vegetables

Extensive efforts initiated by Govt. of Pakistan (GoP) to uplift of economy and exports’ enhancement has now started paying dividend. Pakistani companies participating in the World’s renowned exhibition – “Fruit Logistica – 2019 (Berlin)” are getting very encouraging response from foreign buyers while the big companies participating in this great exhibition, engaged in manufacturing of technology related to production and logistics of fruits & vegetables, economical & efficient use of water technology and related machineries/equipment are displaying keen interest to introduce their technologies in Pakistan while on other hand giant companies promoting modern methods of Agriculture and production of Fruits & Vegetables and transportation facilities for Food items have reflected deep interest in investment for joint ventures with Pakistan.

The exhibition “Fruit Logistica – 2019” is being held from Feb. 6-8, 2019 in Berlin. A national pavilion for companies participating in the exhibition has also been set up. There are stalls of 6 various companies of the Association (PFVA) participating in the exhibition while M /s Iftekhar & Company (IAC) has established it’s own stall. 25 representatives from various export companies are also participating in the exhibition, Besides, the growers are also participating to get themselves well versed with the current modern trends in this specific sector (Fruits & Vegetables).

Pakistani Kinnow, dates, Value-added products of dates, Fresh Vegetables, Mango and Guava Pulp and apple concentrate are getting overwhelming attention from the visitors . According to Waheed Ahmed, Patron-in-Chief and convener of standing committee of the FPCCI on Agriculture and Horticulture, so far export order worth of US$ 15 million has been received.

Pakistan stands bright chance to explore new international markets through this fair while the existing available markets would get further consolidated. Buyers from UK, Italy, Germany, Russia, United Arab Emirates, China, Japan , Saudi Arabia , Belgium , Mauritius , Finland , African countries and other countries have expressed great interest in Agri-produces of Pakistan. The latest technologies related to Climatic change, Pre and Post-harvest process, Saeed development and logistics, displayed in the exhibition would be play vital role to inculcate awareness among Farmers and export companies.

According to Waheed Ahmed, the GoP is displaying very keen interest for development of Horticulture sector having promising potential. The road map “horticulture vision -2030”, a comprehensive policy covering issues and solution of the sector, jointly developed by collaboration of the FPCCI & PFVA has been transformed into documentary form and is anticipated to be presented soon to the GoP.
The Ministry of National Food security and the Primer Imran Khan himself is taking personal interest and with implementation of the vision, export of Fruits & Vegetables can be enhanced to US$2.5 billion within 5 years simultaneously creating employment opportunities for 1.5 million people while export can be further increased to US$ 6 billion in a decade generating new jobs for 2.9 million people and these initiatives would not only further strengthen economy of Pakistan but also ensure Food Security .

https://pakobserver.net/pakistan-receives-15m-export-order-for-kinnow-dates-fruits-and-vegetables/

 

[xyxmt]

If you want to talk about Pakistan economy then open a thread about how much remittance is coming on daily basis, how many expat visited Pakistan for buying stuff for their kid's wedding, how much are expat buying Pakistani food products like masala and achars etc etc.

Other than that Pakistan has no economy, even Venezuela might have bigger economy than Pakistan, assembling foreign car kits is not economy!!

 

[Introvert]

Chaudhry welcomes PepsiCo decision to invest $1bn in Pakistan

DUBAI: Minister for Information Fawad Chaudhry Monday welcomed the decision of PepsiCo Inc. to invest $1 billion in Pakistan.

During a meeting with the minister, Senior Vice President of PepsiCo Krista Pilot said the company intended to invest in the field of food (snacks).

Under the investment, a potato unit will be installed in Multan, she said.

Pilot expressed the desire that Prime Minister Imran Khan should inaugurate this unit, saying that farmers who cultivate potatoes would benefit from the installation of the unit in Multan.

Chaudhry said that investment by British Airways, PepsiCo and other global companies was an ample proof of growing trust of the world in Pakistan.

He said Imran Khan's vision, policies and reforms agenda would attract more foreign investments in the coming days.

The minister said the government wanted a collaboration with PepsiCo in promoting Pakistan's diverse culture, music and tourism.

He said Pakistan was a great destination for breathtaking valleys and colorful cultures, and the government would promote the real face of Pakistan in the whole world.

Chaudhry added that foreign investment would also increase employment opportunities in the country.

https://www.geo.tv/latest/227842-chaudhry-welcomes-pepsico-decision-to-invest-1bn-in-pakistan

 

[jupiter2007]

Which Countries should we request FTA from?

 

[maithil]

Fiscal health deteriorating sharply, half-year data shows

Pakistan’s fiscal deficit crossed 2.7 per cent of gross domestic product (GDP) in the first half of this fiscal year – the highest in eight years – despite government’s claims to have put the house in order with greater fiscal discipline and austerity.

Almost all the major fiscal indicators – both on expenditure and revenue side – showed deterioration in first half of the current fiscal year when compared to same period of last year.

According to fiscal operations data released by the Ministry of Finance on Wednesday, the fiscal deficit in absolute terms amounted to Rs1.029 trillion in first half (July-December 2018) that was almost 30pc higher than same period of last year – the pre-election spending session of PML-N.

For its part, the PTI government slashed development spending and net lending by a massive 36pc to rein in runaway spending in mark up payments and defence, posting an increase of 32pc and 22pc respectively.

The country has never posted such a higher fiscal deficit since 2010-11 when the gap between the government revenues and expenditure stood at 2.9pc of GDP or Rs490 billion in absolute terms. Nevertheless, the country’s fiscal deficit had stood 2.6pc in 2012-13 and 2.5pc twice in 2011-12 and 2016-17.

While defence expenditure went up, spending on the Public Sector Development Programme was reduced by 37pc

The Ministry of Finance reported that defence expenditure and mark up payments also posted an upward journey as share of the size of the national economy (GDP), leaving little space for the government to spend on improvements in the living standards of the people in the form of infrastructure development and social sector spending.

Data showed the total mark up payments amounted to Rs877bn in first six months of the current fiscal year compared to Rs751bn of same period of last year, showing an increase of Rs126bn or 32pc. As percentage of GDP, mark up consumed 2.3pc compared to 2.1pc of GDP the same period last year.

The defence expenditure in first six months of current year stood at Rs479.6bn compared to Rs393bn of same period last year, showing a jump of 22pc or Rs87bn. Its share in GDP also inched up to 1.2pc this year against 1.1pc of GDP same period last year.

Unfortunately this led to a cut back in the Public Sector Development Programme (PSDP). The PSDP spending in first half of this year plummeted to Rs328bn compared to Rs520bn of same period last year, showing a reduction of 37pc or about Rs192bn. This is also evident from the fact that overall development spending and net lending dropped to a paltry 1pc of GDP compared to 1.6pc of GDP of last year.

The total expenditure in first half of CFY amounted to Rs3.36tr against Rs3.18tr of comparable period last year, showing an increase of 5.5pc. The trade off in spending between non-productive and productive sectors of economy helped contain FY19 total expenditure at 8.7pc of GDP compared to 8.9pc in FY18.

The current expenditure, however, remained out of control. For example, current expenditure in FY19 stood at Rs2.98tr compared to Rs2.55tr of FY18, showing an increase of Rs44bn or about 18pc. The current expenditure stood at 7.8pc of GDP during CFY, significantly higher than 7.1pc of GDP last year.

On the other hand, total revenue collection dropped to just 6.1pc of GDP in first half of current year compared to 6.6pc of GDP last fiscal. Tax revenue was also down to 5.4pc of GDP this year compared to 5.6pc of last year. The performance of non-tax revenue was no exception that stood at 0.6pc of GDP in first half of CFY compared to 1pc of GDP same period last year.

The revenue performance in absolute terms was no better either. For example, total revenue collection stood at Rs2.33tr in first half of current year compared to Rs2.38tr of last year, showing a reduction of Rs58bn or 2.43pc. This is perhaps a rare phenomenon that revenue collection has ever been lower than previous year.

Tax revenue amounted to Rs2.08tr in first half of current year compared to Rs2.03tr, showing a nominal increase of Rs55bn or 2.71pc. Normally, the tax revenue should increase every year at the cumulative rate of inflation and economic growth rate. That means the tax revenue should have automatically increased by at least 11pc (over 4pc GDP plus over 7pc inflation).

Direct taxes also dropped to 1.8pc of GDP during CFY against 1.9pc of same time last year. Taxes on goods and properties also declined to 2.1pc of GDP compared to 2.2pc. The share of sales tax also dropped to 1.8pc of GDP from 1.9pc last year.

Non-tax revenue also dropped to Rs245bn in first six months compared to Rs358bn of same period last year, down by a massive Rs113bn or 32pc. Both the federal and provincial revenues contributed to poor tax revenue performance. Provincial revenue slightly increased in absolute terms to Rs188bn this year against Rs176bn of last year while federal revenue inched up to Rs1.89tr compared to Rs1.85tr of same period last year.


https://www.dawn.com/news/1465070

 

[pkuser2k12]

https://twitter.com/x/status/1098645010977824768

 

[Nilgiri]

Fiscal health deteriorating sharply, half-year data shows

Pakistan’s fiscal deficit crossed 2.7 per cent of gross domestic product (GDP) in the first half of this fiscal year – the highest in eight years – despite government’s claims to have put the house in order with greater fiscal discipline and austerity.

Almost all the major fiscal indicators – both on expenditure and revenue side – showed deterioration in first half of the current fiscal year when compared to same period of last year.

According to fiscal operations data released by the Ministry of Finance on Wednesday, the fiscal deficit in absolute terms amounted to Rs1.029 trillion in first half (July-December 2018) that was almost 30pc higher than same period of last year – the pre-election spending session of PML-N.

For its part, the PTI government slashed development spending and net lending by a massive 36pc to rein in runaway spending in mark up payments and defence, posting an increase of 32pc and 22pc respectively.

The country has never posted such a higher fiscal deficit since 2010-11 when the gap between the government revenues and expenditure stood at 2.9pc of GDP or Rs490 billion in absolute terms. Nevertheless, the country’s fiscal deficit had stood 2.6pc in 2012-13 and 2.5pc twice in 2011-12 and 2016-17.

While defence expenditure went up, spending on the Public Sector Development Programme was reduced by 37pc

The Ministry of Finance reported that defence expenditure and mark up payments also posted an upward journey as share of the size of the national economy (GDP), leaving little space for the government to spend on improvements in the living standards of the people in the form of infrastructure development and social sector spending.

Data showed the total mark up payments amounted to Rs877bn in first six months of the current fiscal year compared to Rs751bn of same period of last year, showing an increase of Rs126bn or 32pc. As percentage of GDP, mark up consumed 2.3pc compared to 2.1pc of GDP the same period last year.

The defence expenditure in first six months of current year stood at Rs479.6bn compared to Rs393bn of same period last year, showing a jump of 22pc or Rs87bn. Its share in GDP also inched up to 1.2pc this year against 1.1pc of GDP same period last year.

Unfortunately this led to a cut back in the Public Sector Development Programme (PSDP). The PSDP spending in first half of this year plummeted to Rs328bn compared to Rs520bn of same period last year, showing a reduction of 37pc or about Rs192bn. This is also evident from the fact that overall development spending and net lending dropped to a paltry 1pc of GDP compared to 1.6pc of GDP of last year.

The total expenditure in first half of CFY amounted to Rs3.36tr against Rs3.18tr of comparable period last year, showing an increase of 5.5pc. The trade off in spending between non-productive and productive sectors of economy helped contain FY19 total expenditure at 8.7pc of GDP compared to 8.9pc in FY18.

The current expenditure, however, remained out of control. For example, current expenditure in FY19 stood at Rs2.98tr compared to Rs2.55tr of FY18, showing an increase of Rs44bn or about 18pc. The current expenditure stood at 7.8pc of GDP during CFY, significantly higher than 7.1pc of GDP last year.

On the other hand, total revenue collection dropped to just 6.1pc of GDP in first half of current year compared to 6.6pc of GDP last fiscal. Tax revenue was also down to 5.4pc of GDP this year compared to 5.6pc of last year. The performance of non-tax revenue was no exception that stood at 0.6pc of GDP in first half of CFY compared to 1pc of GDP same period last year.

The revenue performance in absolute terms was no better either. For example, total revenue collection stood at Rs2.33tr in first half of current year compared to Rs2.38tr of last year, showing a reduction of Rs58bn or 2.43pc. This is perhaps a rare phenomenon that revenue collection has ever been lower than previous year.

Tax revenue amounted to Rs2.08tr in first half of current year compared to Rs2.03tr, showing a nominal increase of Rs55bn or 2.71pc. Normally, the tax revenue should increase every year at the cumulative rate of inflation and economic growth rate. That means the tax revenue should have automatically increased by at least 11pc (over 4pc GDP plus over 7pc inflation).

Direct taxes also dropped to 1.8pc of GDP during CFY against 1.9pc of same time last year. Taxes on goods and properties also declined to 2.1pc of GDP compared to 2.2pc. The share of sales tax also dropped to 1.8pc of GDP from 1.9pc last year.

Non-tax revenue also dropped to Rs245bn in first six months compared to Rs358bn of same period last year, down by a massive Rs113bn or 32pc. Both the federal and provincial revenues contributed to poor tax revenue performance. Provincial revenue slightly increased in absolute terms to Rs188bn this year against Rs176bn of last year while federal revenue inched up to Rs1.89tr compared to Rs1.85tr of same period last year.


https://www.dawn.com/news/1465070

@VCheng

 

[VCheng]

@VCheng

It does not supprazz me at all. The proper rescue of Pakistan's economy is dependent on what it is able to deliver in Afghanistan, as I have said before.