Pakistan's Economy - News and Updates

[VCheng]

There are always ways and means to do it. After all the gorniment has the indomitable munshi ishaq dar to fudge the figures as they did in the past. Why stop now. Have a very nice day

Fudging figures can only go so far and no more. At some point the bills have to be paid and the books balanced. Energy prices the world over are spiking, and Pakistan cannot be immune from such changes. The people must learn to pay the unsubsidized prices for the benefit of the country.

 

[fatman17]

Fudging figures can only go so far and no more. At some point the bills have to be paid and the books balanced. Energy prices the world over are spiking, and Pakistan cannot be immune from such changes. The people must learn to pay the unsubsidized prices for the benefit of the country.

Fair enough then don't criticise. Inflation was is a world wide phenomenon but this gorniment when in the opposition blamed IK solely when he said the same thing which you just mentioned.

 

[VCheng]

Fair enough then don't criticise. Inflation was is a world wide phenomenon but this gorniment when in the opposition blamed IK solely when he said the same thing which you just mentioned.

I try to be fair in my criticism. My statements about this topic were the same for the previous government as they are now. Providing energy subsidies is simply unaffordable for the national exchequer, no matter who is in power. PMIK's subsidies just before he left office were nothing but a political ploy for personal gain, just as they are now to keep the people placated. They were wrong then, and they are wrong now.

 

[Wood]

Petrol ️ prices to get a massive increase. Rs 45 per liter expected to filfull IMF demands.

Despite the trouble this will be for the people, it is necessary step for Pakistan's economic stability. Good to see Shahbaz getting the job done

 

[fatman17]

Financial Crisis seems inevitable. Get yourself ready to minimize the impact.
Potential impact
• Hyperinflation (best case scenario ~ 1/3rd increase in prices of basic commodities)
• Shortage of fuel, food grains, imported medicines etc
• Economy will shrink – downsizing/increase in rate of unemployment
Steps to Mitigate
a) Increase your savings; make budget; cut down all non-essential expenses
b) Increase your liquidity (cash or readily cash convertible). At least 50% of your liquid funds should be in currencies which are less prone to devaluation
c) Equally distribute your savings in top three banks
d) Complete embargo on luxury items (Vehicle, expensive home appliances, cell phone, house renovation, vacation trips, parties etc)
e) Food: Build and maintain 3-4 months rolling stock of basic food supplies (rice/grains/oil etc)
f) Medicines: Keep stock of routine, specially imported medicines, if any, used by family members
g) Law and order situation will get worse; ensure basic home security protocols are in place
h) Educate others (relatives, neighbors, friends) to prepare for this crisis
Everyone shall be affected by the financial crisis; however its extent may vary based on condition of respective individuals. About 33% of the population of South Asia lives in extremely poor condition. If nature is kind on you, please support others to survive.

 

[Maula Jatt]

Pakistani meat processor grabs $2.2mn export orders from Middle East

* The Organic Meat Company secures contracts from Jordan and Kuwait

www.brecorder.com

 

[Maula Jatt]

ezBike raises $1m in first pre-seed round by electric mobility startup​

ISLAMABAD: ezBike, an electric mobility startup, announced on Thursday that it has raised $1 million in pre-seed capital to help accelerate Pakistan’s transition to electric vehicles (EVs).

Investors in the round included i2i Ventures, Walled City, GroundUp, and leading angels in the US, including a prominent tech billionaire, according to a statement that did not name the individual.

“The funds will be used to build a comprehensive ecosystem for electric two-wheelers, including an electric scooter assembly facility, low-cost lithium-ion battery production, and a network of battery swapping stations,” it said.

The company will begin offering electric scooters for sale this summer, and plans to initially pilot its solution with one of Pakistan’s leading delivery companies.

Founded as Pakistan’s first electric scooter sharing service by Mohammad Hadi, a former investment banker, and Ali Moeen, a software executive, ezBike has on boarded over 100,000 customers, the statement added.

“With 22 million legacy motorcycles, Pakistan represents a $20-billion market opportunity for two-wheel electric vehicles, and skyrocketing petrol prices and air pollution rates make the need to transition to EV’s urgent,” said ezBike’s co-founder and CEO Mohammad Hadi.

“Up till now that transition hasn’t been possible because EVs were too expensive, but our proprietary solution will allow consumers to purchase electric scooters for 80% the price of comparable petrol-run motorcycles and operate them for 50% the cost. This will revolutionise the market.”
Pakistan was recently ranked as having the 2nd worst air quality in the world, and has over time seen rapidly worsening smog and respiratory illnesses in major urban centers. The World Bank estimates annual economic losses to the Pakistani economy caused by ambient air pollution to exceed $1 billion.

The company’s announcement comes at a time when Pakistan is looking to increase the share of electric vehicles in the domestic market. However, experts believe there needs to be extensive infrastructure present for any player to be able to make inroads.

 

[maithil]

Ummm... Welll.... Not bold enough. Maybe he is missing his hat and rubber boots.

https://twitter.com/x/status/1525927585301118980

 

[fatman17]

Financial Crisis seems inevitable. Get yourself ready to minimize the impact.
Potential impact
• Hyperinflation (best case scenario ~ 1/3rd increase in prices of basic commodities)
• Shortage of fuel, food grains, imported medicines etc
• Economy will shrink – downsizing/increase in rate of unemployment
Steps to Mitigate
a) Increase your savings; make budget; cut down all non-essential expenses
b) Increase your liquidity (cash or readily cash convertible). At least 50% of your liquid funds should be in currencies which are less prone to devaluation
c) Equally distribute your savings in top three banks
d) Complete embargo on luxury items (Vehicle, expensive home appliances, cell phone, house renovation, vacation trips, parties etc)
e) Food: Build and maintain 3-4 months rolling stock of basic food supplies (rice/grains/oil etc)
f) Medicines: Keep stock of routine, specially imported medicines, if any, used by family members
g) Law and order situation will get worse; ensure basic home security protocols are in place
h) Educate others (relatives, neighbors, friends) to prepare for this crisis
Everyone shall be affected by the financial crisis; however its extent may vary based on condition of respective individuals. About 33% of the population of South Asia lives in extremely poor condition. If nature is kind on you, please support others to survive.

Financial Crisis seems inevitable. Get yourself ready to minimize the impact.
Potential impact
• Hyperinflation (best case scenario ~ 1/3rd increase in prices of basic commodities)
• Shortage of fuel, food grains, imported medicines etc
• Economy will shrink – downsizing/increase in rate of unemployment
Steps to Mitigate
a) Increase your savings; make budget; cut down all non-essential expenses
b) Increase your liquidity (cash or readily cash convertible). At least 50% of your liquid funds should be in currencies which are less prone to devaluation
c) Equally distribute your savings in top three banks
d) Complete embargo on luxury items (Vehicle, expensive home appliances, cell phone, house renovation, vacation trips, parties etc)
e) Food: Build and maintain 3-4 months rolling stock of basic food supplies (rice/grains/oil etc)
f) Medicines: Keep stock of routine, specially imported medicines, if any, used by family members
g) Law and order situation will get worse; ensure basic home security protocols are in place
h) Educate others (relatives, neighbors, friends) to prepare for this crisis
Everyone shall be affected by the financial crisis; however its extent may vary based on condition of respective individuals. About 33% of the population of South Asia lives in extremely poor condition. If nature is kind on you, please support others to survive.

Allah save us from this catastrophe. Ameen

 

[farok84]

https://cabinet.gov.pk/SiteImage/Publication/year-book-2020-21.pdf

Cabinet Division

Cabinet Division

cabinet.gov.pk

PTI govt's ARU recovered Rs426bn in last 3 years, Cabinet Division documents reveal​

Tahir Sherani Published May 30, 2022 - Updated about 23 hours ago

The Assets Recovery Unit (ARU), which was set up by former prime minister Imran Khan to bring looted money from foreign countries back to Pakistan, helped recover Rs426.4 billion over the last three years, according to documents prepared by the Cabinet Division this month.

Of the total amount, over Rs334bn was recovered in the last fiscal year alone, according to the Cabinet Division's yearbook for 2020-21, which was prepared in May 2022, well over a month after Shehbaz Sharif took over as the prime minister.

The ARU was set up in September 2018 to "provide a forum" for law enforcement agencies, National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Financial Monitoring Unit (FMU) and provincial anti-corruption establishments (ACEs) to "trace new cases and track all existing cases targeting eventual repatriation of unlawfully acquired offshore assets".
The institutions and agencies would "eventually recover the amount either through taxation or plea bargain or direct recovery/repatriation to the government exchequer".

According to documents available with Dawn.com, over the last three years, NAB, "under the supervision and assistance of ARU", recovered Rs389.5bn. It was a "drastic increase" from the total Rs295.6bn recovered in the 17-year period before then (from 2000 to 2017), according to the Cabinet Division yearbook.
Meanwhile, the FIA recovered Rs6.4bn in the last three years, of which 3.6bn was recovered in 2020.

The documents added that in light of various inquiry commissions set up by the federal government, the Federal Board of Revenue (FBR) established liabilities and made recoveries that were "off the charts".

The revenue body had identified taxes of Rs22.8bn on offshore assets, including properties in the United Arab Emirates and the United Kingdom, and assets identified in the Panama Papers and Paradise Papers, recovering Rs5.6bn in FY21.

Recoveries of Rs30bn were also directly attributed to the ARU, according to the documents.
They added that the Financial Monitoring Unit was also reinvigorated to ensure that it reported suspicious transactions to law enforcement agencies in a timely manner so they could combat money laundering in accordance with their respective laws.
"Assets Recovery Unit continues to liaise with the National Crime Agency of UK and other foreign governments to enter into legal instruments and MoUs to get the unlawfully acquired offshore assets repatriated to Pakistan."

The yearbook, however, clarified that the ARU does not directly recover the assets. Instead, it assists LEAs in the recovery.

The ARU was a big part of the PTI's manifesto and one of the first election promises to be fulfilled by former premier Imran.

It was set up by the ex-prime minister less than a month after assuming office. Initially, it was headed by the then-special adviser on interior and accountability Shahzad Akbar. However, Akbar resigned on January 24 this year and sources in the then-government claimed that Imran was unhappy with his aide's performance.

He was replaced by former National Accountability Bureau (NAB) director general Brig (retired) Musaddiq Abbasi two days later.

Throughout the PTI's tenure, the then-opposition, which has now formed a coalition government after ousting Imran through a no-confidence vote in April, had criticised the ARU and its chief, Akbar, demanding an audit of the organisation and the SAPM's resignation for "miserably failing" to recover the looted national wealth.

PTI govt's ARU recovered Rs426bn in last 3 years, Cabinet Division documents reveal

Over Rs334bn recovered in last year alone, show documents prepared in May 2022, well over a month after Shehbaz took over as PM.

www.dawn.com

https://twitter.com/x/status/1531604884625170433

 

[niaz]

Financial Crisis seems inevitable. Get yourself ready to minimize the impact.
Potential impact
• Hyperinflation (best case scenario ~ 1/3rd increase in prices of basic commodities)
• Shortage of fuel, food grains, imported medicines etc
• Economy will shrink – downsizing/increase in rate of unemployment
Steps to Mitigate
a) Increase your savings; make budget; cut down all non-essential expenses
b) Increase your liquidity (cash or readily cash convertible). At least 50% of your liquid funds should be in currencies which are less prone to devaluation
c) Equally distribute your savings in top three banks
d) Complete embargo on luxury items (Vehicle, expensive home appliances, cell phone, house renovation, vacation trips, parties etc)
e) Food: Build and maintain 3-4 months rolling stock of basic food supplies (rice/grains/oil etc)
f) Medicines: Keep stock of routine, specially imported medicines, if any, used by family members
g) Law and order situation will get worse; ensure basic home security protocols are in place
h) Educate others (relatives, neighbors, friends) to prepare for this crisis
Everyone shall be affected by the financial crisis; however its extent may vary based on condition of respective individuals. About 33% of the population of South Asia lives in extremely poor condition. If nature is kind on you, please support others to survive.

As always very aptly put. However you forgot to mention population control, the current population growth rate is sure shot path to eternal poverty. Whether run by PDM or PTI; the need of the hour is first to save the country from the immediate economic collapse and then make “Structural changes” to get out of the perpetual dependency on IMF bailouts and foreign loans. This can only be achieved by swallowing the bitter pill of ground reality. Ground reality being the fact that the country has been living beyond her economic means for most her 75-year life and this simply cannot go on. We have to learn to stand on our own feet.

Sheikh Sadie, the famous 13th century Persian poet declared “ Haqqa kay ba aqubate dozekh barabar ast; raftan by paey marde hamsayeh dar bahesht”. Meaning that by God, being carried to the heaven by your neighbour is like enduring the punishment of the hell. His point was that one must try to achieve every thing in life through is his own endeavour. Thus the nation has to learn to live within her means. If you can’t afford electricity, live without as most of rural population managed in the 1950’s. The Chak (village) in Sargodha that I grew up had no electricity, no metalled roads and no cars. Affluent landowners had their own horse carriages and battery run radios. Majority of the long distance travel was by busses or by train. There were hardly any imported food items and when there was shortage of sugar and we used ‘Gur’ as sweetener.

I am not saying that we turn the clock back 70 years but either we raise the Revenue collection to the level that GOP can afford to subsidise utility prices and rail travel or raise the prices of all imported goods and services to recover full cost; else do without it.

Regret to say that no other option is available.

 

[fatman17]

As always very aptly put. However you forgot to mention population control, the current population growth rate is sure shot path to eternal poverty. Whether run by PDM or PTI; the need of the hour is first to save the country from the immediate economic collapse and then make “Structural changes” to get out of the perpetual dependency on IMF bailouts and foreign loans. This can only be achieved by swallowing the bitter pill of ground reality. Ground reality being the fact that the country has been living beyond her economic means for most her 75-year life and this simply cannot go on. We have to learn to stand on our own feet.

Sheikh Sadie, the famous 13th century Persian poet declared “ Haqqa kay ba aqubate dozekh barabar ast; raftan by paey marde hamsayeh dar bahesht”. Meaning that by God, being carried to the heaven by your neighbour is like enduring the punishment of the hell. His point was that one must try to achieve every thing in life through is his own endeavour. Thus the nation has to learn to live within her means. If you can’t afford electricity, live without as most of rural population managed in the 1950’s. The Chak (village) in Sargodha that I grew up had no electricity, no metalled roads and no cars. Affluent landowners had their own horse carriages and battery run radios. Majority of the long distance travel was by busses or by train. There were hardly any imported food items and when there was shortage of sugar and we used ‘Gur’ as sweetener.

I am not saying that we turn the clock back 70 years but either we raise the Revenue collection to the level that GOP can afford to subsidise utility prices and rail travel or raise the prices of all imported goods and services to recover full cost; else do without it.

Regret to say that no other option is available.

Population control or family planning was started by Ayub and after that nobody gave any further attention to this issue. Should be a Top-5 priority of any government along with Revenue collection. Problem here is that the Traders community refuses to pay income tax, the Real Estate market refuses to pay the "actual " tax on property. Tax evasion is rampant. Hire any lawyer he will find a loop hole. Finally no one pays agricultural tax because they are all sitting in Parliament. They will never tax themselves!!!
Pakistan is a "use and throw away" enterprise.
The clock ️ is ticking. It is 2 minutes to doomsday (god-forbid).

 

[fatman17]

PTI government ruined the economy in last 4 years

 

[maithil]

The air inside the Diwan-e-Khas Utility Store on Gizri Boulevard is rank with desperation. Tired citizens, both young and old, have lined up for two packets of subsidised ghee. Some sit, some squat; waiting for their turn as the line inches forward. They’ve been here for hours. Ask any one of them why they’re putting up with such misery, and they’ll tell you they cannot otherwise put food on the table.

“Only the poor come to the Utility Stores, and they treat us like beggars,” shares Shehnaz, in her late 30s and looking extremely exhausted. A breast cancer patient, she is accompanied by her two young daughters. “I asked the store staff to open the doors so we could have some air inside, but they refused,” she says, wiping the sweat from her brow. She is waiting for the confirmation message to come through. “My husband barely makes Rs18,000 a month. My eldest daughter is appearing for her matric exams privately. I do not have money to pay for the little one’s fee. I had to take her out. When I heard that cooking oil would be more than Rs400 per litre and petrol prices had also gone up, my heart sank.”

The customers have nothing to say to each other. They stand with their heads down, lost in thought. You can almost breathe in the helplessness in the air.

Rizwan Sikandar, a security guard who makes Rs18,000 a month, is waiting for his sisters outside the store.

“I work the night shift, so I was able to come here with my married sisters to get ghee for our families. My wife and sisters are illiterate and had been sent back twice because they did not have mobile phones,” he explains. “We have gone from three meals a day to two. With this mehngai, it seems we will soon have food enough for one meal only.” He says he’s been to three Utility Stores but can’t find any flour since the subsidy was announced. “I went early, but the staff said stocks were yet to arrive. It’s poor quality flour. We can’t use it unless we mix it with something else.

“The kids are hungry at home,” worries Sonia, a housemaid. “I have been here two hours for ghee. The staff want our CNICs and registered SIMs, or they won’t sign and give us what we need. They humiliate us by making us wait for hours.”

“Everything is too expensive now. My landlord raised the rent to Rs10,000. Then the electricity bill went up,” shares Shahida, another maid. “We have to leave work to get ghee and flour, and end up spending most of the day here.”

Footprints: When cheap ghee loses its utility

How much does a packet of ghee cost? Rs300, humiliation and a few hours of waiting for those less fortunate.

www.dawn.com

 

[maithil]

https://twitter.com/x/status/1539355182886273024