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Finance Minister Ishaq Dar on Wednesday asserted that the country was not on the verge of a financial crisis and “will absolutely not default”. Dar’s remarks comes amid growing fears of default, propelled by the country’s declining remittances and foreign exchange reserves, as well as a prolonged delay in reaching an accord with the International Monetary Fund for the release of a $1.1 billion tranche out of a $6.5bn loan package. Addressing the fears during a gathering at the Federal Board of Revenue in Islamabad, the finance minister commended his economic team for its “efforts and hard work”, pointing out that the country had recorded a current account surplus for the months of March and April at $750 million and $18m, respectively. Regarding the ongoing negotiations with the IMF for release of the long-awaited bailout tranche, Dar said his team had completed all the technical work and prior actions required for the completion of the ninth review. He stressed that there was a ...

Finance Minister Ishaq Dar has assured to take every possible step for provision of relief to the masses in the next budget. Talking to Speaker National Assembly Raja Pervez Ashraf in Islamabad on Monday, he said the economic team is tirelessly working to put the economy on the growth path. The Speaker appreciated the efforts of the Finance Minister and his team for economic stability. He said political stability is imperative for economic stability. Raja Pervez Ashraf said the coalition government's decision to reduce the prices of petroleum products regardless of economic difficulties, is a welcome step. via Original Source

The 230+ million residents of Pakistan are currently experiencing formidable economic challenges, thus a path for boosting financial stability and growth needs to be fostered. While the IMF program must resume in order to meet our immediate financial demands, their usual recommendations might only be able to solve our problems temporarily. We need a fundamental change in how the economy is organized, how policy is created and carried out, and how wealth is distributed more fairly. The only way to move forward is to do that in order to avoid the boom and bust cycles that have afflicted our economy for many years. We must first identify the root of the problem. Although the prevailing belief that "we're confronted with a current account challenge" may be true, it is only the symptom and not the root of our problem. Our Achilles' heel is the current account deficit, which is mostly caused by fiscal policy, which effectively drives consumption-led growth. Higher budge...

Pakistan is now looking for a Plan B for averting full fledge eruption of the balance of payment crisis if the International Monetary Fund (IMF) continues to delay the revival of the already-delayed $6.5 bailout programme. According to the media reports , the cash-strapped nation of over 220 million people will have no other option but to ask China for devising a mechanism to bailout the ailing economy. “Amid deepening political and economic crisis in the country, the IMF has adopted a wait and see policy but this cannot be pursued for a longer period," reports told the publication. "Either the IMF programme will have to be revived through the completion of the ninth review or the programme will be scrapped. We will share no more data with the IMF without completion of the ninth review” the sources asserted. Several reports suggest that Pakistan has already conveyed to the Fund staff to conclude the review otherwise budgetary framework for 2023-24 would not be shared. ...

The International Monetary Fund (IMF) has said that it is reviewing the current situation developing in Pakistan and hopes a peaceful way forward will be found. The IMF looks forward to receiving the assurance for the remaining necessary financing, the representative further said. IMF representative in Pakistan Esther Perez Ruiz welcomes the announcement of financial support to Pakistan from the country’s external partners. The IMF looks forward to receiving the assurance for the remaining necessary financing, the representative further said. Ms Ruiz said implementation on the revised policy framework will be critical in the ninth economic review. The mini-budget presented in February, and adjustments to energy prices were key measures, she further commented. Reduction in import restrictions, market-based exchange rate, and assistance to the weaker strata of society are important for economic stability, the IMF official said. She further said financing from partners is key ...

The rupee made a sharp recovery of 3 per cent against the US dollar in the interbank market on Friday, recovering all its losses from yesterday.The PKR was trading at Rs290.20 per dollar in the morning, gaining Rs8.73 from yesterday’s close of Rs298.93. Forex Association of Pakistan (FAP) Chairperson Malik Bostan said the local currency had appreciated over hopes that the political situation would improve after the Supreme Court decision terming Imran Khan’s arrest unlawful. He said the court decision could end the ongoing political unrest, paving the way for the government and the opposition to reach a consensus through dialogue. Yesterday, the rupee had fallen 2.9pc, or Rs8.71, from its previous close of Rs290.22. After yesterday’s steep devaluation, there was a consensus in the financial market that the fall of the rupee against the dollar was not solely the direct outcome of the deteriorating political situation. Instead, it was widely believed that large payments from Pakist...

The rupee slumped to a record low of 299 amid political tumult in the wake of clashes that broke out in the country following the arrests of senior leaders of the Pakistan Tehreek-e-Insaf (PTI). The local unit fell Rs8.78, or 3.02%, against the dollar on Thursday trading at 299 in the interbank market at 1:17pm. It should be noted that the dollar bonds due 2031 fell to the lowest since November on Thursday and were indicated at 33.10 cents on the dollar. The new rate is just Re1 away from the much-anticipated rate of Rs300 per dollar. The rupee depreciation has piled up foreign debt without taking new external loans, making imports further expensive for Pakistan, which faced a six-decade high inflation reading at 36.4% in April 2023. Financial pundits believe that the rupee has been depreciating due to political and social unrest caused after the arrest of the PTI chief. Moreover, the dollar demand supply gap has also widened as the exporters have stopped selling US currency on...

The US dollar has once again gained ground against the Pakistani rupee.The price of the dollar increased by 3 rupees 66 paisa in the interbank market, and the dollar became 288 rupees 50 paisa in the interbank market. On the other hand, the 100 index of Pakistan Stock Exchange has decreased by 173 points and the 100 index is at 41 thousand 200 points. Yesterday, the business in the Pakistan Stock Exchange ended on a bearish note. The 100 index closed at 41 thousand 373 after a decline of 455 points. via Original Source

Foreign companies in China are on tenterhooks following a series of national security raids on consultancy firms that have highlighted the risks of doing business in the era of Chinese leader Xi Jinping. Eric Zheng, the president of the American Chamber of Commerce, said on Tuesday he was concerned about reports that due diligence firms had been targeted by authorities as their work is “essential to doing business in China.” Chinese authorities should “more clearly delineate the areas in which companies can or cannot conduct such due diligence,” Zheng said in a statement. “This would give foreign companies more confidence and enable them to comply with Chinese regulations.” Zheng’s remarks follow a similar warning by the US business group last month that China’s recent expansion of its espionage law “dramatically increases uncertainties and risks of doing business in the People’s Republic.” The EU Ambassador to China Jorge Toledo Albinana on Tuesday said the legislation was “not...

Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain, Moody’s Investor Service said. “We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” said Grace Lim, a sovereign analyst with the ratings company in Singapore. “However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF program, Pakistan could default given its very weak reserves.” Pakistan is struggling to restart a $6.5 billion bailout program from the Washington-based lender, which has stalled after the government failed to meet some loan conditions. Political tensions ahead of elections due this year are adding to the risk of a delay in the loan, as former premier Imran Khan is showing no signs of backing down against the government. Dollar bonds due in 2031 were indicated at 34.58 cents on the dollar on Tuesday near the lowest since November. The rupee has been trading ...

Pak Suzuki Motors, one of the major players in the two-wheeler segment in terms of market share, has increased the price of its motorcycles as the automobile industry faces an uphill task in keeping itself afloat amid the rupee's persistent devaluation. According to a notification sent by the company to its dealers, the new rates will be applicable from May 9 onwards, and remain intact till further notice. The retail prices are inclusive of the ex-factory product price and freight charges incurred on motorcycles which "are delivered at your dealership premises", the notification mentioned.   S. No Model Retail Price (rupees)    1 GD110s 335,000    2 GS150 364,000    3 GSX125 488,000    4 GR150 521,000    5 GW250JP 1,040,000 The rate of GD110s has been hiked to Rs335,000, GS150 Rs364,000, GSX125 Rs488,000, GR150 Rs521,000, and GW250JP Rs1.04 million, according to the notification. "The above pr...

In the realm of banking, information technology has had a significant influence. Internet banking, sometimes known as e-banking, is an electronic payment framework that enables clients of a financial organization, such as a retail bank, virtual bank, credit association, or building society, to direct monetary exchanges on a site run by the organization. The banking industry has evolved dramatically since the Internet's advent, particularly in terms of security, because money is now in our hands with a simple click. The user has a variety of options for managing his money through various approaches. In the financial industry, internet banking has shown to be an excellent and beneficial means of banking. Most banks have quickly adopted this innovation in order to save costs and expand client relationships. As the supervisor and regulator of the banking industry and payment systems, the State Bank of Pakistan (SBP) has long been aware of the growing threat of cyber crime security ...

The World Bank’s board of governors on Wednesday elected former Mastercard CEO Ajay Banga to a five-year term as president, ushering in an Indian-born finance and development expert to revamp the lender to tackle climate change and other global crises. Banga, 63, was nominated for the post by US President Joe Biden in late February and was the sole contender to replace departing World Bank chief David Malpass, an economist and former US Treasury official who served in the Trump administration. He starts the new job on June 2. The election came after World Bank board members interviewed Banga for four hours on Monday. Malpass’s last day at the bank will be June 1. The decision came in a vote by 24 of the board’s members, with Russia abstaining, instead of the usual consensus-based process, a source familiar with the process said. Biden congratulated Banga on his “resounding approval” to run the World Bank, which he described as “one of humanity’s most critical institutions to reduc...

The United States is facing a potential economic disaster if the country defaults on its debt payments, the White House warned on Wednesday. The president's Council of Economic Advisers cautioned that this could cause an economic shock that would lead to eight million job losses this summer and a 6% drop in Gross Domestic Product (GDP). The council also predicted that the stock market could drop 45% in the third quarter and warned that even a brief interruption in payments could lead to a recession and a surge in unemployment. President Joe Biden is at odds with Republicans in the House of Representatives over national spending and public debt. The Democratic president has urged Republicans to raise the country's debt ceiling, which is the maximum amount of debt the government can take on legally. Republicans have refused to do so without a broader agreement to cut government spending. The Treasury Department estimates that the country will reach its debt cap on June 1, whi...

The National Electric Power Regulatory Authority (NEPRA) on Wednesday approved an Rs3.70 per unit hike in the power tariff for K-Electric consumers on monthly fuel adjustment charges. According to the notification issued by the power regulator authority, the hike in the power tariff for K-Electric consumers was approved on account of fuel charge adjustment (FCA) for March. As per the notification, the power tariff hike for KE consumers will only be implemented on the bills of May, meanwhile, the increase in electricity tariff will not be applicable to lifeline consumers. The increase in power tariffs will put Rs5.4 billion in additional pressure on the already burdened masses, who are struggling to make ends meet amidst rising inflation and a weak economy. The hike in power tariffs has been attributed to the rising costs of electricity production and distribution. The country has been experiencing frequent power outages and load shedding, causing immense inconvenience to citizens...

The weekly inflation, measured by Sensitive Price Indicator (SPI), witnessed an increase of 0.15pc to jump to 46.82pc on a year-on-year basis for the week ending on April 27. The SPI for the week under review in the above-mentioned group was recorded at 252.20 points as compared to 251.83 points during the past week, according to the PBS data. As compared to the corresponding week of last year, the SPI for the combined consumption group in the week under review witnessed an increase of 46.82 percent. During the week, out of 51 items, prices of 21 (41.17%) items increased, 07 (13.73%) items decreased and 23 (45.10%) items remained stable. The items, which recorded an increase in their average prices on a week-on-week (WoW), included Potatoes (8.22%), Chicken (1.75%), Wheat Flour (1.55%), Gur (1.23%), Bread (1.13%) and Rice Irri-6/9 (1.01%). The items that recorded a decrease in their average prices on a week-on-week (wow) basis, included Tomatoes (19.20%), Bananas (5.39%), Onion...

The government on Friday approved an increase of up to 20 per cent in medicine retail prices, with the rise for essential drugs capped at a maximum of 14pc as decades-high inflation grips the country. The decision, taken in the cabinet’s Economic Coordination Committee (ECC), was due for months to meet the demands of drug importers and manufacturers, whose associations were demanding an across-the-board 39pc rise, warning that the industry could otherwise collapse. The finance ministry said medicine prices could be reviewed again after three months if the rupee appreciated, adding that “no increase under this category” would be granted in the next financial year. The Pakistan Pharmaceutical Manufacturing Association criticised the increase, which it said was way lower than it had expected. Inflation clocked in at 35pc in March, fuelled by a depreciating currency, a rollback in subsidies and the imposition of higher tariffs to secure a bailout package of $1.1 billion from the Inte...

Finance Minister Ishaq Dar has asked the FBR to enhance its efforts to achieve the true tax potential of the country. He made the remarks while chairing a meeting in Islamabad to review the performance of the FBR. Ishaq Dar extended his full support to the FBR in performance of its duties for revenue collection. As per a statement released by the Ministry of Finance, FBR Chairman Asim Ahmad gave a detailed presentation on the FBR’s revenue targets and performance for the period July 2022 to March,2023. “It was expressed that FBR will make all out efforts to meet its targets in remaining months of the financial year,” read the statement. Dar expressed satisfaction with the FBR and extended his full support to help it perform its revenue collection duties while maintaining that the FBR team needs to enhance efforts to unlock the country’s true tax potential. SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Chairman FBR, and other senior officers from the Finance ...

Finance Minister Ishaq Dar has claimed that all the conditions for signing a staff-level agreement with the International Monetary Fund have been fulfilled by Pakistan. Ishaq Dar has stated that the Kingdom of Saudi Arabia (KSA) has confirmed provision of two billion US dollars to Pakistan. The United Arab Emirates (UAE) has confirmed financing of one billion US dollars to Pakistan. Finance Minister has said that all preconditions for an Staff Level Agreement (SLA) between Pakistan and the IMF have now been implemented. He hoped that the IMF will soon sign the staff level agreement with Pakistan and get approval from its executive board. Finance minister had earlier held a virtual meeting with Martin Raiser, South Asia Vice President of the World Bank. The meeting was part of the World Bank-IMF Spring Meetings 2023 held in Washington, said a Finance Ministry news release. The minister informed the WB vice president about the completion of World Bank-supported reforms, especiall...

Pakistan has placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow, State Minister for Petroleum Musadik Malik has said. The deal will see Pakistan buy crude oil only, not refined fuels, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, Minister Musadik Malik said in an interview on Wednesday night. He said Pakistan Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included later after a trial run. Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March. At the time, Shulginov also said Pakistan will pay for crude oil purchases in currencies of friendly countries. “We have agreed that the payments will be made in the currencies of friendly countries,” he had said at a joint news conference with Pakistan’s...