Pakistan Economy: News & Discussion

[FalconSlayers]

Imran Khan will start Dancing even for a rupee in his Begging bowl let alone 85million USD


Meanwhile
03-Jul-2021 — Indian startups in H1 2021 are likely to witness record breaking venture capital inflow ($22.6 Bn) by the end of 2021. Highest till date.

Indian Startup Ecosystem Poised To Make History With $22.6 Bn In Total Funding In 2021

Indian startups in H1 2021 are likely to witness record breaking venture capital inflow ($22.6 Bn) by the end of 2021. Highest till date.

inc42.com

This is in lockdown
Fascist Mudi Ji after hearing this:
View attachment 105869

What is H1?

 

[FalconSlayers]

Youthiyo!!! Tabdeeli aa gayi!!! Aapne ghabrana nahi hai!!!
x—————x—————x
Circular debt continues to swell despite Rs167bln payment

Pisslamabad: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.

The government claimed the pace of accumulation of circular debt has reduced significantly as it went up by “only” Rs130 billion in 2020-21 against a surge of Rs538 billion in financial year 2019-20.

The pace of accumulation was reduced by almost 75 percent in the last fiscal year 2020-21.

The monster of circular debt ballooned almost a trillion rupees in last three years as it stood at Rs1,612 billion in 2018-19, Rs2,150 billion in 2019-20.

A meeting of the Cabinet Committee on Energy (CCOE), held under the chair of Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Friday, was told that circular debt increased to Rs1,245 billion in last fiscal year 2020-21 against Rs1,038 billion in 2019-20.

The payables to power producers stood at Rs105 billion in 2020-21 and the amount parked in Power Holding Limited (PHL) stood at Rs930 billion in 2020-21 against Rs1,007 billion in 2019-20.

The circular debt increased Rs297 billion in 2020-21 compared to a surge of Rs538 billion in 2019-20. But the government made payments of Rs77 billion through available fiscal space and another payment of Rs90 billion on PHL principal repayments so the stocks in circular debt decreased Rs167 billion. It increased Rs130 billion.

Power Division also detailed the committee on the Circular Debt Report from July 2020 to June 2021. The committee noted that the circular debt build-up had substantially reduced in comparison to the previous year. The Committee appreciated the improvement in the recoveries and directed Power Division to continue with its efforts for reduction of circular debt.

The meeting was attended by Minister for Interior, Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum & Revenue. Representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

Circular debt continues to swell despite Rs167bln payment

ISLAMABAD: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.The...

www.thenews.com.pk

 

[FalconSlayers]

Youthiyo!!! Tabdeeli aa gayi!!! Aapne ghabrana nahi hai!!!
x—————x—————x
Circular debt continues to swell despite Rs167bln payment

Pisslamabad: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.

The government claimed the pace of accumulation of circular debt has reduced significantly as it went up by “only” Rs130 billion in 2020-21 against a surge of Rs538 billion in financial year 2019-20.

The pace of accumulation was reduced by almost 75 percent in the last fiscal year 2020-21.

The monster of circular debt ballooned almost a trillion rupees in last three years as it stood at Rs1,612 billion in 2018-19, Rs2,150 billion in 2019-20.

A meeting of the Cabinet Committee on Energy (CCOE), held under the chair of Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Friday, was told that circular debt increased to Rs1,245 billion in last fiscal year 2020-21 against Rs1,038 billion in 2019-20.

The payables to power producers stood at Rs105 billion in 2020-21 and the amount parked in Power Holding Limited (PHL) stood at Rs930 billion in 2020-21 against Rs1,007 billion in 2019-20.

The circular debt increased Rs297 billion in 2020-21 compared to a surge of Rs538 billion in 2019-20. But the government made payments of Rs77 billion through available fiscal space and another payment of Rs90 billion on PHL principal repayments so the stocks in circular debt decreased Rs167 billion. It increased Rs130 billion.

Power Division also detailed the committee on the Circular Debt Report from July 2020 to June 2021. The committee noted that the circular debt build-up had substantially reduced in comparison to the previous year. The Committee appreciated the improvement in the recoveries and directed Power Division to continue with its efforts for reduction of circular debt.

The meeting was attended by Minister for Interior, Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum & Revenue. Representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

Circular debt continues to swell despite Rs167bln payment

ISLAMABAD: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.The...

www.thenews.com.pk

Circular debt shoots up to Rs2.28tr in 3 years: ministry

Report says debt was Rs1.148tr when PTI came to power


In spite of significantly increasing electricity prices, the circular debt has almost doubled within three years to Rs2.28 trillion due to the government’s failure to stem systemic losses, an energy ministry report showed.

The ministry submitted the final circular debt report for fiscal year 2020-21 that ended in June before the Cabinet Committee on Energy (CCoE), which met on Friday.

The report showed that the power sector’s circular debt remained at Rs2.280 trillion, which is slightly less than the earlier provisional estimates of over Rs2.3 trillion.

When the Pakistan Tehreek-e-Insaf (PTI) came to power, the circular debt was Rs1.148 trillion that has doubled within three years.

The ruling PTI had promised to bring the circular debt to zero by December 2020 but the numbers showed that there was an increase in both the flow and stock of the circular debt compared with June 2018.

The circular debt piles up due to gap between the cost of electricity generation, transmission and distribution and actual money collected on account of bills including increase in tariffs and payment of subsidies.

The government added Rs404 billion to the flow of circular debt in the last fiscal year due to less provision of subsidies against commitments, increased cost of inefficiencies, interest on debt parked in a holding company and less recovery of bills, documents of the energy ministry showed.

However, the government report showed that the net increase in the circular debt was Rs130 billion in fiscal year 2020-21 after adjusting increase in electricity prices and reduction in the stock of the debt.
The government has been making efforts to improve efficiency but the power sector situation remains grim despite putting an additional burden of over Rs150 billion on consumers in the past one year by increasing electricity prices, the summary showed.

In its first year, the PTI added Rs464 billion in the circular debt and in the second year another Rs538 billion were added and now after adjusting subsidies and increase in tariffs the net addition was Rs130 billion in the third year. The Rs130 billion figure was not telling the complete picture.

The government paid Rs90 billion to independent power producers (IPPs) and another Rs77 billion reduction was shown on account of retirement of Power Holding Limited debt.

There was Rs207 billion or 20% increase in the flow of the circular debt, as the payables to the power producers jumped from Rs1.04 trillion to Rs1.3 trillion, according to the report. But the stock has been reduced by 7.6% to Rs930 billion –a reduction of Rs77 billion.

Rs404b debt break-up

In fiscal year 2020-21, the government provided Rs72 billion less in subsidies as against the requirements that then became part of the circular debt, according to the summary. There was an increase of Rs57 billion on account of unpaid subsidies and another Rs15 billion due to unbudgeted subsidies. The government did not pay Rs27 billion AJK subsidies and another Rs6 billion of the K-Electric consumer subsidies despite making commitments.

The government added another Rs75 billion in the circular debt on account of interest payments to the IPPs on delayed payments, which were 36% higher than the preceding year, according to the summary.
Similarly, another amount of Rs30 billion was added on account of interest paid on the Power Holding Limited loans, which were 57% less than the previous year. This is despite the fact the consumers are also paying debt servicing surcharge through their monthly bills.

There was an improvement of 81% under one head - and it is passing on the generation cost to the end consumers. As against the preceding year’s Rs270 billion, in the just ended fiscal year Rs51 billion was added under this head, which suggest significant price increase.

An amount of Rs82 billion was also added in the circular debt due to non-payment by K-Electric. The power distribution companies’ uncontrolled losses added another Rs67 billion in the circular debt - up by 59% over the preceding year. This shows that the PTI government has failed in bringing improvement in governance of these power distribution companies, nor it could privatised them.

The government showed 157% improvement in recoveries but still added Rs27 billion in the circular debt due to less than targeted recoveries by the power distribution companies. A key reason behind improvement was Rs31 billion recoveries on account of installments of the bills related to Covid-19 period.
The government has recently prepared a plan to reduce the circular debt but the new plan, drawn up in consultation with the International Monetary Fund (IMF), shows that the circular debt reduction will largely hinge up increasing the electricity prices.

There was a reduction of Rs108 billion in the flow of the circular debt by increasing electricity tariffs pertaining to the previous years.

A planning ministry handed stated that CCoE noted that the circular debt build-up had substantially reduced in comparison to the previous year. “The committee appreciated the improvement in the recoveries and directed Power Division to continue with its efforts for reduction of circular debt,” it added.

Circular debt shoots up to Rs2.28tr in 3 years: ministry | The Express Tribune

In spite of significantly increasing electricity prices, the circular debt has almost doubled within three years to Rs2.28 trillion due to the govt’s failure.

tribune.com.pk

 

[Covfefe]

What is H1?

What is H1?

First half of the financial year

 

[Covfefe]

Youthiyo!!! Tabdeeli aa gayi!!! Aapne ghabrana nahi hai!!!
x—————x—————x
Circular debt continues to swell despite Rs167bln payment

Pisslamabad: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.

The government claimed the pace of accumulation of circular debt has reduced significantly as it went up by “only” Rs130 billion in 2020-21 against a surge of Rs538 billion in financial year 2019-20.

The pace of accumulation was reduced by almost 75 percent in the last fiscal year 2020-21.

The monster of circular debt ballooned almost a trillion rupees in last three years as it stood at Rs1,612 billion in 2018-19, Rs2,150 billion in 2019-20.

A meeting of the Cabinet Committee on Energy (CCOE), held under the chair of Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Friday, was told that circular debt increased to Rs1,245 billion in last fiscal year 2020-21 against Rs1,038 billion in 2019-20.

The payables to power producers stood at Rs105 billion in 2020-21 and the amount parked in Power Holding Limited (PHL) stood at Rs930 billion in 2020-21 against Rs1,007 billion in 2019-20.

The circular debt increased Rs297 billion in 2020-21 compared to a surge of Rs538 billion in 2019-20. But the government made payments of Rs77 billion through available fiscal space and another payment of Rs90 billion on PHL principal repayments so the stocks in circular debt decreased Rs167 billion. It increased Rs130 billion.

Power Division also detailed the committee on the Circular Debt Report from July 2020 to June 2021. The committee noted that the circular debt build-up had substantially reduced in comparison to the previous year. The Committee appreciated the improvement in the recoveries and directed Power Division to continue with its efforts for reduction of circular debt.

The meeting was attended by Minister for Interior, Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum & Revenue. Representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

Circular debt continues to swell despite Rs167bln payment

ISLAMABAD: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.The...

www.thenews.com.pk

Look at their external debt portfolio, the outflow of cash peaks around 2024-25, given that they don't take any more debt which Khan chacha is not adhering to. Abhi inka phat ke flower hona hai kass ke

 

[Covfefe]

The dumbass(,or corrupt, or both) who agreed to this infrastructure extravaganza called CheePak did not even try to apply Economics 101.
1) Men and Material from China- so no bloody multiplier effect
2) Cost of Capital ~ 5-7%, which is way less than the ROI that Jadeed Economic State of Riyasat-e-Pudina can offer
3) No learning curve of either business management or project management as all the work was done by Chinks. This ensures that they stay dependent on them to go ahead with any future infra work.

Inn hoshiyaar ke puttaron ko yeh lag raha tha ki air strip banane se aur boeing 747 khareedne se airline industry achi ho jaati hai. CPEC is of exact equivalence.

 

[FalconSlayers]

Look at their external debt portfolio, the outflow of cash peaks around 2024-25, given that they don't take any more debt which Khan chacha is not adhering to. Abhi inka phat ke flower hona hai kass ke

https://propakistani.pk/2021/08/20/adb-to-provide-235-million-loan-for-development-of-highways/?__cf_chl_jschl_tk__=pmd_mj0K_Cf2p4_jyFE8q1c8ncUock2OTfXe5.FS.X.SzPw-1629537080-0-gqNtZGzNAiWjcnBszQfR

 

[Covfefe]

https://propakistani.pk/2021/08/20/adb-to-provide-235-million-loan-for-development-of-highways/?__cf_chl_jschl_tk__=pmd_mj0K_Cf2p4_jyFE8q1c8ncUock2OTfXe5.FS.X.SzPw-1629537080-0-gqNtZGzNAiWjcnBszQfR

ADB provides soft loans which won't be much of a problem. The actual devil always lies in the full package. Say, the project estimate is 1 billion USD, some 200-300 million usd will be soft loan from ADB, World Bank or the Chinks, rest will be budgetary allocation (that Pakis don't have any), domestic debt, or external debt (at commercial rates in all likelihood from EXIM bank or China's state banks). Overall portfolio becomes heavy (higher interest rate of domestic bonds or external commercial debt coupled with their shitty currency- remember they take the loans in USD) if you don't milk those infra to generate enough cash which is the major thaw in this pouring-concrete-economy.

 

[FalconSlayers]

 

[FalconSlayers]

State Bank of Pakistan receives $2.75 billion from IMF
Receipt is expected to the country's foreign currency reserves to all-time high of $20.4 billion


Salman SiddiquiAugust 24, 2021

In April 2020, IMF disbursed $1.4 billion to Pakistan. PHOTO: FILE
KARACHI: Pakistan has received $2.75 billion from the International Monetary Fund (IMF) under its new allocations for member countries to fight against Covid-19 challenges, the central bank reported on Tuesday.

The latest receipt is expected to lift the country's foreign currency reserves to an all-time high of $20.4 billion.

The Washington-based global lender released the funds for Islamabad under its historic funding of $650 billion for the developing and developed member countries.

The new allocations are aimed at elevating the member countries' foreign exchange reserves to enhance their capacity to make international payments for imports and foreign debt repayments as well as enhance the pace of global economic recovery from the impact of the ongoing health crisis.

The inflows have not only improved Pakistan's capacity to make international payments but also enhanced its ability to arrest the current depreciation in rupee against the US dollar and other major currencies of the world.

Pakistani currency depreciated to over 10-month low at Rs164.43 against the US dollar in the inter-bank market on Monday.

Following a fresh drop of Rs0.25 on Monday, the rupee has depreciated by 6.39% in the current fiscal year (since July 1) to date and 7.98% since it hit 22-month high of Rs152.27 in May, according to the central bank's data.

This was the second time that IMF allocated funds for its member countries amid Covid-19 outbreak to cope up with the contagious disease.

In April 2020, it disbursed $1.4 billion to Pakistan.

The country's foreign exchange reserves stood at $17.63 billion in the week ended August 13, 2021.
The reserves peaked at $19.46 billion in October 2016.

The board of governors of the IMF approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion (about SDR 456 billion) on August 2, 2021 to boost global liquidity.

"This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,” IMF Managing Director Kristalina Georgieva said in the statement issued on August 2. “The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the Covid-19 crisis."

The Pakistan's foreign exchange reserves are on the rise for the past two years on the back of strong inflow of workers' remittances, improvement in export earnings and growth in investment by non-resident Pakistanis in assets in the homeland through the Roshan Digital Accounts (RDAs).

Besides, the country's reserves are partly maintained through despots from friendly countries such as Saudi Arabia, Qatar and China and through central bank's short-term borrowing from commercial banks operating in the country.

Almost half of the foreign currency reserves "are filled by long-term borrowing from international financial institutions, friendly countries and short-term borrowing," Economist Shahid Hasan Siddiqui said the other day.

The central bank said late last month that the imports may continue to remain high during the current fiscal year 2021-22, meaning demand for US dollars may remain high.
The State Bank of Pakistan (SBP) projected the current account deficit to increase to 2-3% of GDP in current fiscal year 2021-22 compared to 10-year low at 0.6% of GDP recorded in the prior fiscal year 2020-21.

It, however, said the deficit at 2-3% is sustainable. This would allow the economy to grow by 4-5% in FY22 compared to 4% in FY21.

State Bank of Pakistan receives $2.75 billion from IMF | The Express Tribune

Receipt is expected to the country's foreign currency reserves to all-time high of $20.4 billion

tribune.com.pk

x—————x—————x—————x—————x

Bhikhari Qaum

 

[Haldilal]

Ya'll Nibbiars

 

[Abdus Salem killed]

Forex reserves set to top USD 655 bn by Mar as RBI continues to run down dollar forward book: Report

RBI bought record gold in the past year, up over 27 per cent in two years at over 705 tonnes. At around USD 620 billion, the reserves can cover 16 moths of imports.

Published: 23rd August 2021 05:08 PM | Last Updated: 23rd August 2021 05:08 PM | A+A A-

The Reserve Bank of India. (File photo | PTI)
By PTI
MUMBAI: As the central bank continues to increase forex reserves by running down the forward book which totalled USD 42 billion as of end-July, signalling its strong resolve to build a bigger reserve cushion to aid its expansionary, unorthodox monetary policy, the reserves are set to top the USD 655-billion-mark by March, according to a report.

The forex kitty declined by USD 2.10 billion to USD 619.365 billion for the week to August 13 due to a fall in the core currency assets and gold, showed the latest RBI data.

The reserves had risen to a lifetime high of USD 621.464 billion in the previous reporting week ending August 6. While foreign currency assets, the biggest component of the reserves, declined by USD 1.358 billion to USD 576.374 billion in the reporting week, the value of the gold reserves slipped by USD 720 million to USD 36.336 billion.

RBI bought record gold in the past year, up over 27 per cent in two years at over 705 tonnes. At around USD 620 billion, the reserves can cover 16 moths of imports.

One of the main tools that the Reserve Bank has been using to shore up the reserves in recent months has been running down its forward book, which totalled USD 42 billion as of end-July, it said.

"We believe this shift is important as it signals that the RBI wants a bigger reserve cushion so it can run the expansionary, unorthodox monetary policy.

Given the strength of capital inflows and the shrinking forward book, we raise our foreign reserves forecast to USD 655 billion by March 2022, from USD 645 billion earlier," Barclays India chief economist Rahul Bajoria said in a note on Monday.

It seems, the report said, the RBI has grown more comfortable in recycling its forward book back into its balance sheet, boosting the reserves significantly.

Indeed, from an elevated USD 74.2 billion in end-March, the forward dollar holdings were down to USD 49 billion by end-June, a trend expected to continue through Q3, it added.

At the same time, RBI's domestic assets have also grown rapidly under the GSAP programme, the report said.

One of key objectives of the monetary authority to build up the reserves is to prevent the rupee from rising o the back of a significant balance of payments surplus, irrespective of whether the surplus has been driven by the current account balance or large capital inflows.

Meanwhile, the report pegged the rupee to trend between 75.5 and 80.7 to the dollar by March 2022.
The continuing forex build-up, which got accelerated after RBI Governor Shaktikanta Das assumed office early December 2018, is also reflective of the central bank's need for a weaker rupee in light of the rapid growth in RBI's balance sheet due to massive OMO purchases and forex reserve accretion.

Another reason for the build-up is the fact that the central bank also faces a potential change in the quality of capital inflows, alongside relatively larger current account outflows.

This may prompt a more interventionist approach, as the RBI looks to maintain a strong grip on the rupee while ensuring ample domestic liquidity, he said.

A third reason for the rising reserves is that the build-up is boosted by the recycling of forward positions into spot reserves and buoyant purchase of G-secs.

Some of the recent increases in the reserves might have been prompted by the changing global monetary-policy dynamics, the report said.

While overall policy backdrop remains expansionary and accommodative in the country, several emerging-market central banks like Brazil, Mexico and Russia, have been raising their policy rates, while the real policy rates is highly negative here, it said.

Even though the RBI has clearly indicated that its policy bias is driven by the domestic macro-conditions, the continuing push for larger reserves indicates a desire for a deeper safety buffer to protect the economy from any major shifts due to externalities, the report said, adding that thus, larger reserves allow it to run a more expansionary domestic monetary.

Forex reserves set to top USD 655 bn by Mar as RBI continues to run down dollar forward book: Report

MUMBAI: As the central bank continues to increase forex reserves by running down the forward book which totalled USD 42 billion as of end-July, signalling its s

www.newindianexpress.com

This is not Pakistan

 

[Haldilal]

Ya'll Nibbiars This Idiot alone increased the debt by more than 75 percent in just 2 years.

 

[FalconSlayers]

This is not Pakistan

Sorry

 

[IndianYonko]

Ya'll Nibbiars This Idiot alone increased the debt by more than 75 percent in just 2 years.

View attachment 106690

The way slope is changing with each new government, one day it will go tangent....

 

[FalconSlayers]

Textile exports decline 11.32pc MoM
Tahir Amin 27 Aug 2021
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ISLAMABAD: The country’s textile group exports declined by 11.32 percent on month-on-month basis and remained $1.471 billion in July 2021 compared to $1.658 billion in June 2021, says the Pakistan Bureau of Statistics (PBS).

The exports and imports data released by the PBS revealed that textile group exports have witnessed a growth of 15.61 percent on year-on-year basis and remained $1.471 billion in July 2021 compared to $1.272 billion in July 2020.

Cotton yarn exports decreased by 25.68 percent during July 2021 and remained at $89.87 million compared to $120.931 million during June 2021 and increased by 48.49 percent when compared to $60.52 million during the same month of last year.

Raw cotton exports witnessed 100 percent decline on month-on-month basis.
Petroleum group imports witnessed an increase of 76.79 percent as it reached $1.330 billion in July 2021 compared to $752.46 million during July 2020 and registered 9.85 percent negative growth when compared to $1.475 billion in June 2021.

Textiles: is SBP footing the bill for export growth?

Construction machinery imports have witnessed a massive decline of 33.03 percent during the July 2021 and remained at $10.821 million compared to $16.157 million during June 2021; however, it registered 10.31 percent growth when compared to $9.810 million during July 2020. The country’s exports during July, 2021 were $2.340 billion (provisional) as compared to $ 2.728 billion (provisional) in June 2021 showing a decrease of 14.22 percent but increased by 16.94 percent as compared to $2.001 billion in July 2020.

The country’s imports during July 2021 were $5.601 billion (provisional) as compared to $6.352 billion (provisional) in June 2021, showing a decrease of 11.82 percent but increased by 52.45 percent as compared to $3.674 billion in July 2020.
The country’s trade deficit widened by 94.92 percent from $1.673 billion in July 2020 to $3.261 billion in July 2021, but narrowed by 10.02 percent, when compared to $3.624 billion in June 2021.

Main commodities of exports during July 2021 were knitwear (Rs62,681 million), readymade garments Rs48,070 million, bed wear (Rs42,030 million), cotton cloth (Rs28,639 million), cotton yarn (Rs14,344 million), rice, others (Rs12,510 million), towels (Rs12,420 million), made-up articles (excl towels and bed wear (Rs10,707 million), Basmati rice (Rs9,785 million), and fruits (Rs7,736 million).

Main commodities of imports during July 2021 were petroleum products (Rs103,337 million), petroleum crude (Rs60,077 million), natural gas, liquefied (Rs43,359 million), palm oil (Rs40,542 million), plastic materials (Rs37,685 million), iron and steel Rs37,488 million, medicinal products Rs37,367 million, electrical machinery and apparatus (Rs29,205 million), power generating machinery (Rs26,308 million), and iron and steel scrap (Rs21,302 million).

Textile exports decline 11.32pc MoM

ISLAMABAD: The country’s textile group exports declined by 11.32 percent on month-on-month basis and remained...

www.brecorder.com

20 years of strategic depth!

 

[Abdus Salem killed]

Weren't china going to do lithium mining Thier which will cause large boon to pak economy????

 

[indiatester]

Textile exports decline 11.32pc MoM
Tahir Amin 27 Aug 2021
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Twitter
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ISLAMABAD: The country’s textile group exports declined by 11.32 percent on month-on-month basis and remained $1.471 billion in July 2021 compared to $1.658 billion in June 2021, says the Pakistan Bureau of Statistics (PBS).

The exports and imports data released by the PBS revealed that textile group exports have witnessed a growth of 15.61 percent on year-on-year basis and remained $1.471 billion in July 2021 compared to $1.272 billion in July 2020.

Cotton yarn exports decreased by 25.68 percent during July 2021 and remained at $89.87 million compared to $120.931 million during June 2021 and increased by 48.49 percent when compared to $60.52 million during the same month of last year.

Raw cotton exports witnessed 100 percent decline on month-on-month basis.
Petroleum group imports witnessed an increase of 76.79 percent as it reached $1.330 billion in July 2021 compared to $752.46 million during July 2020 and registered 9.85 percent negative growth when compared to $1.475 billion in June 2021.

Textiles: is SBP footing the bill for export growth?

Construction machinery imports have witnessed a massive decline of 33.03 percent during the July 2021 and remained at $10.821 million compared to $16.157 million during June 2021; however, it registered 10.31 percent growth when compared to $9.810 million during July 2020. The country’s exports during July, 2021 were $2.340 billion (provisional) as compared to $ 2.728 billion (provisional) in June 2021 showing a decrease of 14.22 percent but increased by 16.94 percent as compared to $2.001 billion in July 2020.

The country’s imports during July 2021 were $5.601 billion (provisional) as compared to $6.352 billion (provisional) in June 2021, showing a decrease of 11.82 percent but increased by 52.45 percent as compared to $3.674 billion in July 2020.
The country’s trade deficit widened by 94.92 percent from $1.673 billion in July 2020 to $3.261 billion in July 2021, but narrowed by 10.02 percent, when compared to $3.624 billion in June 2021.

Main commodities of exports during July 2021 were knitwear (Rs62,681 million), readymade garments Rs48,070 million, bed wear (Rs42,030 million), cotton cloth (Rs28,639 million), cotton yarn (Rs14,344 million), rice, others (Rs12,510 million), towels (Rs12,420 million), made-up articles (excl towels and bed wear (Rs10,707 million), Basmati rice (Rs9,785 million), and fruits (Rs7,736 million).

Main commodities of imports during July 2021 were petroleum products (Rs103,337 million), petroleum crude (Rs60,077 million), natural gas, liquefied (Rs43,359 million), palm oil (Rs40,542 million), plastic materials (Rs37,685 million), iron and steel Rs37,488 million, medicinal products Rs37,367 million, electrical machinery and apparatus (Rs29,205 million), power generating machinery (Rs26,308 million), and iron and steel scrap (Rs21,302 million).

Textile exports decline 11.32pc MoM

ISLAMABAD: The country’s textile group exports declined by 11.32 percent on month-on-month basis and remained...

www.brecorder.com

20 years of strategic depth!

But, they get their share of $85 billion worth of weapons the US has left behind!

 

[FalconSlayers]

Rising current account deficit and imports pose threat to economy
Khaleeq KianiPublished August 26, 2021 - Updated 2 days ago
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Finance Minister Shaukat Tarin presides over a meeting of the Monetary and Fiscal Policies Coordination Board on Wednesday. — Photo courtesy: PID

ISLAMABAD: Pakistan’s economic managers on Wednesday noted rising international commodity prices, higher import bill and current account deficit (CAD) as key risks to macroeconomic outlook and decided to have closer coordination and vigilance for policy adjustments to support higher growth.

At a meeting of the Monetary and Fiscal Policies Coordination Board (MFPCB) presided over by Finance Minister Shaukat Tarin, State Bank of Pakistan Governor Dr Reza Baqir pointed out that the increase in commodities prices in the global market would have implications for higher import bill and inflation.

The finance minister asked “for designing and executing policies to achieve economic targets and overcome the possible risks” and advised to MFPCB more effective for maintaining better coordination of policies to achieve the planned macroeconomic goal.

Other members of the board present in the meeting were the Adviser to the PM on Commerce & Investment Abdul Razak Dawood, Deputy Chairman Planning Commission (PC) Dr Jehanzaib Khan and Private Member Dr Asad Zaman.

SBP governor highlights the increase in commodities prices will have implications for higher import bill

The finance minister briefed the board on the current economic situation of the country and highlighted the major incentives given in the budget due to which business confidence is improving and economy is moving on strong economic recovery path. He said all key economic indicators relating to real sector of the economy, fiscal sector, monetary and external sectors were going well and the government was proactively executing all policy measures to achieve the major socio-economic targets of the current fiscal year.

The minister “also highlighted the possible risks to the economic activities and strategy to counter these risks which were appreciated by the members of the board”, an official statement said.
An official said CAD is anticipated to go up as imports rise with higher international commodity prices.
Secretary Finance explained budgetary allocations for various activities and the ways and means to maintain the fiscal discipline and how steps were in place to contain the non-development expenditure with the focus on optimal utilisation of resources to improve the service delivery at large for the common man.

Governor SBP explained the monetary policy stance already announced a couple of weeks ago. While sharing the analysis of the SBP on policy rate, credit availability, exchange rate movement and inflationary situation, he explained that policy mix was supporting the growth momentum. He, however, “highlighted the increase in commodities prices in the global market which have implications for higher import bill and inflation”.

At the same time, he said it was encouraging that exports were picking up along with increase in import of machineries which will enhance productive capacity of the economy and create exportable surplus. He told the forum that SBP was executing policy measures to encourage business activities in various sectors of the economy. He said there were ample opportunities for investors and exporters and youth of the country to take benefits from SBP’s schemes to extend or initiate their business.

PC deputy chairman updated the meeting about the execution of development activities and the possible options for resource mobilisation and to utilise them effectively for development of potential sectors of the economy.

Mr Dawood briefed about the structure of trade of the country along with major destinations and the steps in process to enhance exports in potential areas. He also noted various categories of imports which could be rationalized by focusing on their substitutes.

According to the official statement, Dr Zaman appreciated the major fiscal and monetary measures of the government in supporting the business activities and highlighted potential areas where Pakistan has comparative advantages in export market and should be treated as low hanging fruits for import substitution. He advised that the goal of well-coordinated monetary and fiscal policies should be to achieve full employment.

Published in Dawn, August 26th, 2021

Rising current account deficit, imports pose threat to economy

Current account deficit is anticipated to go up as imports rise with higher international commodity prices, official says.

www.dawn.com

 

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Public debt swells to Rs39.9tr

Government adds Rs15tr to debt in three years, according to central bank data

The government has added Rs14.9 trillion to the public debt during almost three years in power, which is equal to 140% of the total debt the previous Pakistan Muslim League-Nawaz (PML-N) government acquired in five years, shattering Prime Minister Imran Khan’s dream of reducing the burden.

According to the State Bank of Pakistan’s (SBP) annual debt bulletin, released on Monday, the public debt increased to Rs39.9 trillion by June this year, an addition of Rs14.9 trillion within three years.
The total public debt increased by a whopping 60% from July 2018 to June 2021, an unsustainable 20% increase on average each year.

The addition of Rs14.907 trillion to the public debt in just three years was equal to 82% of the gross public debt that the last two elected governments of Pakistan Peoples Party (2008-2013) and PML-N (2013-2018) had added in 10 years.

With the fresh addition from fiscal year 2018-19 to 2020-21, the total public debt as of June 30, 2021 increased to Rs39.9 trillion or 83.5% of the gross domestic product (GDP), the central bank reported.

However, in terms of the size of economy, the ratio was 4.1% less than the preceding fiscal year 2019-20. It was still higher by 11% of GDP than the level left behind by the PML-N and was also in violation of the Fiscal Responsibility and Debt Limitation Act of 2005.

The Pakistan Tehreek-e-Insaf (PTI) government added on an average Rs13.6 billion a day to the public debt, which was more than double the daily average addition of Rs5.8 billion by the PML-N government.

When the PML-N government completed its five-year term, the total public debt stood at Rs24.95 trillion, or equal to 72.5% of GDP. In just three years, it has surged to 83.5% of GDP, which is unsustainable and carries huge risks for the economy and the country’s foreign policy.

In February 2019, PM Khan had vowed to bring the public debt down to Rs20 trillion. He had been very critical of the economic policies followed by the previous PPP and PML-N governments and had set up the Debt Inquiry Commission to investigate the reasons behind the addition of Rs18 trillion to the debt stock in 10 years.

Despite completion of the inquiry, the premier has withheld the release of the report.
The accumulation of debt is a direct result of the gap between expenditures and revenues, which is widening due to the inelasticity of debt servicing and defence needs and the Federal Board of Revenue’s (FBR) failure to enhance revenue collection to a sustainable level.

Steep currency depreciation also contributed to the federal government’s debt.

Read More: Short-term debt hits eight-month high

Pakistan’s total debt and liabilities also jumped to a record Rs47.8 trillion, an addition of Rs18 trillion in the past three fiscal years. The country’s total debt and liabilities were equal to 100.3% of GDP - a ratio that was 86.3% hardly three years ago.

Debt breakdown
The federal government’s total domestic debt increased to Rs26.2 trillion, an addition of Rs9.9 trillion or 60% in the last three fiscal years. At the end of the PML-N tenure, the domestic debt was Rs16.4 trillion.

The external debt of the federal government also increased 60% to Rs12.4 trillion in the last three fiscal years. There was a net increase of Rs4.6 trillion in the external debt, largely due to currency depreciation and building the foreign currency reserves through borrowing.

At the end of the PML-N tenure, the external debt had stood at Rs7.8 trillion.
The Rs12.4 trillion worth of external government debt does not include loans obtained for reserves building and currency swap arrangements. These loans are the responsibility of the central bank.

By June 2021 the rupee-dollar parity traded at Rs157.3 to a dollar. In June 2018, the value of the dollar was equal to Rs121.54, suggesting a massive depreciation of nearly Rs36 or 29.4%. The current parity is around Rs166.

Dollar-based total external debt

The total external debt and liabilities, which were $95.2 billion three years ago, jumped to a record $122.2 billion - an addition of $27 billion on the watch of the PTI government. In one year, the foreign debt rose by $9 billion. During the five year tenure of the PML-N, the total increase in the external debt was $34 billion.

The public external debt, which is the direct responsibility of the federal government, increased from $75.3 billion in June 2018 to $95.2 billion in June this year - an addition of $20 billion in three years.

The International Monetary Fund (IMF) debt that was $6.1 billion three years ago has jumped to $7.4 billion by June this year, according to the central bank.

The direct consequence of mounting debt pile is huge increase in the cost of debt servicing. In June 2018, the country spent a total $7.5 billion in external debt repayment and its servicing. This cost has now increased to $13.4 billion - a surge of 79% in three years. But repayments are made by signing new loans.

The country’s foreign exchange liabilities also increased by three-fourth, mainly because of the government’s decision to build foreign exchange reserves by taking new loans.

Public debt swells to Rs39.9tr | The Express Tribune

Government adds Rs15tr to debt in three years, according to central bank data

tribune.com.pk