Pakistan’s Yearly inflation rate in July 2022 jumped to a 14-year high of 24.9% compared to 21.3% in June 2022 and 8.4% in July 2021.
On a month-on-month basis, it rose by 4.3% in July 2022 as compared to an increase of 6.3% in the previous month and an increase of 1.3% in July 2021.
The Government of Pakistan has decreased the price of petrol by Rs3.05 per litre for the first half of August 2022
Following the changes in the prices, petrol will now be available for Rs227.19 per litre. Previously, petrol was being sold in the country for Rs230.34 per litre.
Meanwhile, there has been an increase of Rs8.95 in the price of high-speed diesel, after which the new price will stand at Rs244.95 per litre.
| Product | Current price | New price w.e.f Aug 1 | Change |
| MS (Petrol) | 230.24 | 227.19 | -3.05 |
| High Speed Diesel (HSD) | 236.00 | 244.95 | +8.95 |
| Kerosene | 196.45 | 201.07 | +4.62 |
| Light Diesel Oil | 191.44 | 191.32 | -0.12 |
According to the notification, the changes were introduced following a reduction in the prices of petroleum products in the international market.
Octopus Digital Limited, a subsidiary of Avanceon Limited, and Cisco Technologies have signed a Memorandum of Understanding (MoU) to accelerate awareness, sales, and market share of Cisco Technology products within the IOT Cybersecurity space.
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The Supreme Court set aside the ruling of Punjab Assembly Deputy Speaker Dost Muhammad Mazari on the recently held CM election in the province and declared the PML-Q leader Chaudhry Pervaiz Elahi the new chief minister, Aaj News reported.
The hearing of the case, pertaining to the interpretation of Article 63-2A of the constitution, continued for three days.
A three-member bench of the apex court comprising Chief Justice of Pakistan Umar Ata Bandial, Justice Ijazul Ahsan, and Justice Muneeb Akhtar heard the case.
Prime Minister Shehbaz Sharif has announced to reduce the petrol prices by Rs18.50 per litre as part of measures to ease the burden on the masses. The rates go into effect from July 15.
After the reduction, the POL product prices are as followed:
Petrol Price: Rs. 230/liter
HSD Price: Rs. 236/Liter
Kerosene Oil: Rs. 196/liter
Light Diesel Oil: Rs. 191/liter
Finance Minister Miftah Ismail said that the government will slash domestic petrol prices before midnight, adding that Prime Minister Shehbaz Sharif had received a summary from the Oil and Gas Regulatory Authority (Ogra) recommending the cut.
The State Bank of Pakistan (SBP) has increased the key interest rate by 125 basis points, taking it to 15%. This was announced during the press conference on the Monetary Policy Committee’s (MPC) decision over the key interest rate, amid expectation of further tightening due to a higher inflation outlook.
The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had “darkened significantly” since April and she could not rule out a possible global recession next year given the elevated risks.
IMF Managing Director Kristalina Georgieva told Reuters the fund would downgrade in coming weeks its 2022 forecast for 3.6% global economic growth for the third time this year, adding that IMF economists were still finalizing the new numbers.
The IMF is expected to release its updated forecast for 2022 and 2023 in late July, after slashing its forecast by nearly a full percentage point in April. The global economy expanded by 6.1% in 2021.
“The outlook since our last update in April has darkened significantly,” she told Reuters in an interview, citing a more universal spread of inflation, more substantial interest rate hikes, a slowdown in China’s economic growth, and escalating sanctions related to Russia’s war in Ukraine.
“We are in very choppy waters,” she said. Asked if she could rule out a global recession, she said, “The risk has gone up so we cannot rule it out.”
Recent economic data showed some large economies, including those of China and Russia, had contracted in the second quarters, she said, noting the risks were even higher in 2023.
Source: Reuters
Oil prices dropped to a 12-week low in volatile trade on Wednesday, extending Tuesday’s heavy losses as growing fears of demand destruction from a global recession outweighed supply concerns.
Brent futures for September delivery fell $2.99, or 2.9 per cent, to $99.78 a barrel, while US West Texas Intermediate (WTI) crude fell $3.19, or 3.2pc, to $96.31.
That puts WTI and Brent on track for their lowest closes since April 11, after Brent fell 9pc and WTI fell 8pc on Tuesday.
It also put both benchmarks in technically oversold territory with a relative strength index (RSI) below 30 for a second day in a row. If Brent closes at that level, it would be the first time it remains in oversold territory for two days since December 2021.
Investment bank Goldman Sachs said the oil sell-off was driven by growing recession fears.
Germany’s government borrowing costs fell to a five-week low as mounting concern about a darkening economic outlook drove investors into safe-haven debt.
US stock indexes slipped on Wednesday as investors awaited minutes from the Federal Reserve’s meeting to gauge the health of the economy and the pace of interest rate hikes to stamp out spiking inflation.
Oil prices were also knocked down by a soaring US dollar , which rose to a near 20-year high against a basket of other currencies.
A stronger US dollar makes oil more expensive for holders of other currencies, which can curb demand.
In China, the world’s biggest oil importer, the market worried that new Covid-19 lockdowns could cut demand.
CPI Inflation increased by 21.3% on YoY basis during the month of Jun’22 as compared to an increase of 13.8% in May’22 & 9.7% in June, 2021.
On MoM basis, it increased by 6.3% in June 2022 as compared to an increase of 0.4% in May’22 & decrease of 0.3% in SPLY.
The average inflation of FY22 is 12.15 percent compared to 8.9 percent from the corresponding period last year.
Pakistan’s current account deficit clocked in at $1.425 billion in May 2022, compared to the deficit of $640 million recorded in May, 2021.
The CAD stood at $618 million in April 2022 depicting an increase of 131% on a monthly basis.
The massive hike in the Current Account Deficit is due to declining remittances and exports on account of Eid holidays.
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