IMF asks for another hike in gas prices

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IMF asks for another hike in gas prices

 International Monetary Fund (IMF) projected that November 1, 2023, gas tariff raise will add to headline inflation in coming month and asked for a further raise in gas tariff in accordance with the Oil and Gas Regulatory Authority (OGRA) December 2023 determination till February 15, 2024.

The IMF released on Saturday first Review Under the Stand-by Arrangement, Requests for Waivers of Applicability of Performance Criteria, Modification of Performance Criteria, and for Re-phasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Pakistan. “Inflation has generally moderated since June on easing food and energy prices, and headline CPI is now projected to average 24 per cent in fiscal year 24. While the November gas tariff increase will add to headline inflation in coming months, gradual declines are expected given lower core inflation and recent commodity price movements, with year-end inflation revised to 18.5 and 9 per cent in fiscal year 24 and fiscal year 25, respectively,” the report says.The IMF pointed out further efforts include in gas sector: regular (automatic) implementation of semi-annual gas tariff adjustments, including OGRA’s December 2023 determination within the required 40-day window; full phasing out of captive power usage, which reduces demand for electricity generated in the grid, and forces electricity tariffs of grid consumers to cover unused capacity, and exacerbates power sector liquidity pressures; establishing a more level playing field among non-household consumers, including by eliminating cross-subsidies to fertiliser producers and favourable rates for well-connected industries and the formalisation of a circular debt stock reduction plan.

Pakistani Rupee’s unbeaten streak reaches 10 weeks against USD

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Pakistani Rupee’s unbeaten streak reaches 10 weeks against USD

The Pakistani rupee (PKR) sustained its upward momentum during the outgoing week and gained 46 paisa to settle at PKR 279.9, as compared to the previous week’s closing of PKR 280.36/USD.

The stability arises from improved macroeconomic conditions in the form of increased liquidity in the foreign exchange market due to tighter enforcement of regulations, a shrinking money supply, a balance of payments surplus on account of low import demand, and a moratorium on Chinese debt repayments.

Pakistan’s Fuel Oil Exports Hit All-time High in Dec As Domestic Utility Demand Falls

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Pakistan’s Fuel Oil Exports Hit All-time High in Dec As Domestic Utility Demand Falls

Pakistan’s fuel oil exports rose to an all-time high in December amid declining demand from domestic utilities as the country focuses on alternate fuels such as gas and coal for power generation.

The South Asian nation exported 135,551 mt of fuel oil in December, about 37% higher from 98,830 mt in November, according to data released Jan. 18 by Pakistan’s Oil Companies Advisory Council (OCAC), which compiles data related to fuel consumption, imports and exports.

Fuel oil exports in the six months ended Dec. 31, 2023 stood at 433,945 mt, up from an overall export volume of 276,979 mt during the fiscal year ended June 30, 2023, the OCAC data showed. Pakistan’s financial year runs from July to June.Domestic consumption of fuel oil has been on a declining trend since long as the government has been encouraging electricity generation from other cheaper sources like coal, nuclear and regasified LNG, leaving huge stockpiles of fuel oil, said Muhammad Awais Ashraf, director research at Akseer Research.The country’s fuel oil consumption has also fallen as a result of the government’s plan to run tube wells in villages on solar power instead of fuel oil, Awais said.Fuel oil consumption dropped to 0.08 million mt in December, down about 33% year on year, OCAC data showed. Consumption in the six months ended Dec. 31, 2023 stood at 0.56 million mt, down about 61% on the year, the data showed.

Toshakhana reference: Witness admits jewellery item’s specification list not provided to IO

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Toshakhana reference: Witness admits jewellery item’s specification list not provided to IO

A witness has admitted that the specification list of the jewellery item was not provided to the investigation officer (IO) of the Toshakhana reference against the incarcerated Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan.

The hearing of the Toshakhana reference against the former premier was conducted by the accountability court judge Muhammad Bashir at the Adiala Jail on Saturday.During the hearing, two witnesses recorded their testimonies before the court, whereas, the lawyers cross-examined one of the witnesses who was involved in the estimation of the expensive Toshakhana gifts including a jewellery set and a bracelet watch to ascertain its market value.The witness, in his statement, confirmed that his company had been approached by Pakistan’s Consul General in Dubai to conduct an estimation of the said jewellery set and the bracelet watch.He detailed he was given the responsibility to search market value of the jewellery articles which he had completed and submitted an estimation report to the consul’s office in Dubai.In his statement, the witness said that the estimated value of the pricey Graff jewellery set was $19.492 million.The witness apprised the court that diamond experts and jewellery manufacturers were approached. Besides, a complete market survey was conducted for the preparation of the estimation report he added.He, however, admitted that the specification list of the article was not provided to the investigation officer (IO).The defence lawyer also raised questions over a flaw in the estimation report as the diamond’s physical weight was mentioned in “gramme(s)” instead of “carat(s)”. The witness termed it a “clerical error”.During cross-examination, the defence lawyer questioned the credibility of the entire approximation process of the state gifts acquired by the PTI founder from the Toshakhana.The counsel queried whether the consul general had been handed over a report prepared by the National Accountability Bureau (NAB). The witness denied the claim.The lawyer further questioned the reasons for not providing the estimation report to the IO if the market survey was not conducted in real.To this, the witness also rejected claims against the estimation process. However, he admitted that the input documents from the diamond expert were also not handed over to the IO.Responding to another query, the witness said that the monetary value of diamonds could neither be ascertained through their colour nor photos but specifications.After the lawyer completed cross-examination, the accountability court adjourned the hearing till January 23.On January 9, an accountability court had indicted Imran Khan and his spouse Bushra Bibi in the Toshakhana reference filed against them by NAB.The decision was announced during a hearing in Adiala jail — where the former prime minister is currently incarcerated in the case.A five-member special prosecution team of the anti-graft watchdog had perused the reference against the duo.Accountability court Judge Bashir had conducted the hearing of Toshakhana and £190 million cases in the prison. 

IMF Sees Rupee To Fall To 322 Against Dollar By June 2024

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IMF Sees Rupee To Fall To 322 Against Dollar By June 2024

Washington DC January 20 2024: International Monetary Fund predict the Pakistan Rupee for current fiscal year (2024) to close at 322 against dollar in its recently published report agains earlier assumption of 330, based on working of AUGAF.

IMF projected 330 against dollar for fiscal year (2024) back in Jul 2023.

IMF published country report today followed by the completion of first review of Stand-By Arrangement (SBA) of SDR 2,250 million for the period of nine months. The Board’s decision allows for an immediate disbursement of SDR 528 million (around $700 million), bringing total disbursements under the arrangement to SDR 1.422 billion (about $1.9 billion).

On the external front the IMF forecast the current account deficit of USD 5,649 million, (against USD 6,424 million earlier in Jul 2023) during current year which is 1.6 percent percentage of GDP. That said the size of GDP in terms of USD will remain at USD 353,063 million and in Rupee terms the IMF has projected the size of GDP at 106,577 billion turn the average PKR/USD parity to be 302 for this fiscal year. For this average PKR/USD rate Rupee must close the current fiscal year at 322 against Dollar.

IMF also project the average deprecation for next five years at 8 percent to reach at 381 by 2028.

Freelancers In Pakistan To Receive Payment Through PayPal 

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Freelancers In Pakistan To Receive Payment Through PayPal 

The Caretaker Federal Minister for Information Technology and Telecommunication Dr Umar Saif on Sunday announced that freelancers would now receive their payments through PayPal.

In a video message, he said that it had been a longstanding demand of freelancers to have access to PayPal for easier payment receipt in Pakistan.

The minister clarified, “While PayPal itself is not coming to Pakistan, an agreement has been reached where remittances would be channeled through PayPal via a third party.”“Under the newly devised program, freelancers will not need to open a PayPal account. Instead, individuals outside the country will make payments from their PayPal accounts, and the funds will be promptly deposited into the freelancers’ accounts,” the minister explained.He said that under the nation’s first space policy approved by the federal cabinet, international companies would be allowed to provide communication services through low-orbit communication satellites.Saif said that satellite communication technology was advancing rapidly and many private companies in the world wanted to provide communication services through low-orbit satellites.
“Satellites used to be geostationary, far away from the land. They are useful for broadcasting TV signals but communicating is difficult because there is latency,” he said.Saif said that communication services and internet services could be offered through low-orbit satellites, which were relatively closer. He said that there had been a lot of development in this regard in the private sector.“So now it has become possible for communication services in Pakistan to be provided through satellites and the private sector has this technology,” he said.He said the National Space Policy would enable private sector companies to “offer affordable internet services in Pakistan while enabling increased investment in our national space program”.
National Space Policy which will enable private-sector companies to offer affordable internet services in Pakistan, while enabling increased investment in the country’s national space program.He expressed confidence that 5G services in the country would be launched by July this year and 300MHz spectrum would be offered for auction.He said that before the launch of 5G services, the optic fiber network had to be enhanced. Currently, only 6,000 mobile towers are connected with the optic fiber of around 56,000 towers across the country.

Pakistan’s IT Exports Hit All Time High of $303Mn In December

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Pakistan’s IT Exports Hit All Time High of $303Mn In December

Pakistan earned USD 303 million by providing different Information Technology (IT) services in various countries during the month of December 2023, according to data released by State Bank of Pakistan.

This is the all-time high export value for any given month in the history of the country superseding March 2022 exports of USD 260 million.

This shows an increase of 16.9 percent as compared to USD 259 million earned through provision of Technology services during the previous month of this year. Moreover, Technology exports increased by 22.7 percent when compared with exports of USD 247 million in December 2023.

Overall, during the period from July 2022 to December 2023 the Information Technology exports increased by 8.9 percent to USD 1,455 million when compared with exports of USD 1,335 million during the corresponding period last year.

Pakistan faced worst economic crisis in 2023, says Human Rights Watch

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Pakistan faced worst economic crisis in 2023, says Human Rights Watch

Pakis­tan faced one of the worst economic crises in its history in 2023 with poverty, inflation and unemployment soaring, jeopardising millions of people’s rights to health, food and an adequate standard of living, according to a report by the Human Rights Watch.

In its 740-page ‘World Report 2024’, made available on Friday, the HRW reviewed human rights practices in more than 100 countries, and observed that the insistence of the International Monetary Fund (IMF) on austerity and the removal of subsidies without adequate compensatory measures resulted in additional hardship for low-income groups in Pakistan.

Pakistan & Dubai sign over $3bn investment pact

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Pakistan & Dubai sign over $3bn investment pact

Pakistan and Dubai have inked a more than $3 billion investment pact in diverse fields including cooperation in railways, economic zones, and infrastructure development.

The agreement was signed on the sidelines of the World Economic Forum in Davos by Minister of Communication, Railways, and Maritime Affairs Shahid Ashraf Tarar and Dubai’s Chairman of Ports, Customs and Free Zone Corporation (PCFC) Sultan Ahmed bin Sulayem.

The cooperation covered the development of a dedicated freight corridor, multi-modal logistics park, and freight terminals, the Ministry of Railways said in an official statement.

The Dubai Port (DP) World will work on infrastructure development at Qasim International Container Terminal which is Pakistan’s leading trade gateway and plans to develop an economic zone near the terminal.

Both governments have signed two inter-governmental framework agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a “Dedicated Freight Corridor” and “Economic Zone” near Karachi.

The DP World will act on behalf of the Dubai government, while Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistani government, for the development of the projects.

The rail-based Dedicated Freight Corridor is planned to run from Karachi Port on the Arabian Sea, passing through Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 50 km away.

Weekly SPI surged by 0.34%

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Weekly SPI surged by 0.34%

Pakistan’s weekly inflation rose for the fourth consecutive week, with the Sensitive Price Indicator (SPI) for the Combined Group increasing by 0.34% WoW during the week ended January 18, 2024.

Moreover, the SPI increased by 44.64% YoY when compared to the corresponding period from last year.

Last week, SPI for the Combined Group rose by 1.36% WoW.

According to data released by the Pakistan Bureau of Statistics (PBS) the Combined Index was at 319 compared to 317.92 on January 11, 2024, while the index was recorded at 220.54 a year ago, on January 19, 2023.

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