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Pakistan Current Account Surplus
Pakistan posted a Current Account surplus of $805 million (last: deficit $1.2 billion) for July and August FY20. This is equivalent to 1.8% of GDP. This surplus was made in part by increased remittances, controlled imports and stable exports. Pakistan recorded a current account surplus of $297 million in August, and $508 million in July.
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SBP Holds Interest Rates At 7%
The Monetary Policy Committee (MPC) of State Bank of Pakistan (SBP) decided to hold interest / policy rate at 7%. The Committee was of the view that the current monetary policy stance is appropriate to support the emerging recovery while safeguarding inflation expectations and financial stability.
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FDI Up In August & September
Foreign direct investment (FDI) into Pakistan increased 40% to $226.7 million (last: 162 million) in the July – August of FY21. Majority of new investments were seen in financial businesses, electrical machinery and oil and gas exploration sectors, according to the data.
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WB Stays Reko Diq Award
The World Bank’s International Center for Settlement of Investment Disputes (ICSID) granted a stay on the enforcement of the award issued against Pakistan in the Reko Diq dispute. This is a success for Pakistan and its legal team, says a press release from the office of the Attorney General for Pakistan. In July…
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Global Economy Expected to Contract 4.5% This Year: OECD
The OECD has said that while the world economy fell sharply for the first half of 2020 due to COVID, global economic output is recovering due to quantitative easing. However, a sharp annual decline is still expected – a 4.5% contraction is still expected.
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Islamic Banking Share Rises
Islamic banking market share in FY20 increased to 15.3% of the overall banking industry and 16.9% of assets and deposits. The profit before tax of Islamic banking institutions was Rs. 49 billion for FY20. Their branch network increased from 2,913 branches to 3,274 branches. There are 22 Islamic banking institutions, 5 full-fledged Islamic…
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Roshan Digital Accounts Launched
Pakistan’s Prime Minister launched “Roshan Digital Account”, and stated it was a big step towards providing opportunities to overseas Pakistanis to investment in the country’s mega projects. For the first time in the country’s history, the NRPs will be able to remotely open an account through an entirely digital and online process without any…
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IMF Warns COVID & Effects Are Not Over
The IMF warned that the COVID crisis was ‘far from over’ and underscored the need for multilateral cooperation to ensure adequate supplies once a vaccine is developed. In an essay published in Foreign Policy magazine, IMF Managing Director Kristalina Georgieva and chief economist Gita Gopinath said the ongoing economic recovery from the crisis was the…
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GOP To Shut Inefficient Powerplants
The GOP has decided to shut down inefficient power plants. Under the cabinet’s decision, the plants of 1479MW capacity are being shut down immediately while other dysfunctional plants of 1460MW would be shut down by September 2020.
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Fitch Projects Remittance Fall
The Fitch Ratings projected that Pakistan’s current account deficit to widen to 1.7% of the GDP in FY21, in part as remittances fall and offset gains from lower oil prices. Fitch reported this in its special report, “APAC remittances and the coronavirus shock”.
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65% More Tax Refunds Processed in FY20
The Finance Division told a finance standing committee of the National Assembly that 65% more tax refunds have been processed in FY20, through a centralized automated system. Rs. 126 billion refunds had been issued in FY20 which included Rs. 10 billion income tax refunds, Rs. 40 billion sales tax refunds, Rs. 20 billion custom…
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PM Announces Karachi Transformation Plan
Pakistan’s Prime Minister announced a Rs. 1.1 trillion package under the Karachi Transformation Plan to resolve the lingering and chronic issues of the port city, including provision of clean drinking water, cleaning of drains, and sewage and solid waste disposal within three years.
