Economy

US Dollar Gains Against Pakistani Rupee in Interbank Market On Tuesday, the US dollar appreciated by six paisas against the Pakistani rupee, reaching Rs278.70 in interbank trading. This marginal gain reflects ongoing volatility in the currency market as Pakistan navigates a complex economic landscape. Improved Economic Indicators Highlight Positive Shift The Ministry of Finance has released its latest monthly economic …

PTA Receives Proposals for 5G Spectrum Auction Despite Industry Concerns Five international consultants have submitted proposals to the Pakistan Telecommunication Authority (PTA) to oversee the 5G spectrum auction, anticipated to be completed within the ongoing fiscal year. However, there are concerns within the industry about whether this is the right time to roll out 5G technology in the country. In …

IMF Imposes New Conditions Following Punjab’s “Fiscally Reckless” Electricity Subsidy The International Monetary Fund (IMF) has imposed several new conditions on Pakistan’s provincial governments concerning energy subsidies and budget management. This move follows Punjab’s controversial decision to provide Rs45 to Rs90 billion in electricity subsidies over two months, which the IMF has labeled as “fiscally reckless.” Government sources revealed that …

FBR Misses August Tax Collection Target by Rs102 Billion The Federal Board of Revenue (FBR) fell short of its August 2024 tax collection target by Rs102 billion, despite taking advances from major cities. The FBR blamed import compression for the shortfall, increasing the likelihood of a mini-budget. The government had set a collection target of Rs898 billion for August, but …

Pakistan’s Inflation Rate Hits 34-Month Low Pakistan’s Consumer Price Index (CPI) rose by 9.6% year-on-year (YoY) in August 2024, marking the lowest inflation rate in 34 months. Notably, according to the Pakistan Bureau of Statistics (PBS), this represents a significant drop from the 11.1% recorded in July 2024 and, moreover, a dramatic decline from the 27.4% inflation rate in August …

Remittances sent through Roshan Digital Accounts (RDA) by overseas Pakistanis have reached a significant milestone, surpassing $8.416 billion, according to the latest data released by the State Bank of Pakistan (SBP). This achievement underscores the growing confidence of the Pakistani diaspora in the RDA platform. July 2024 Remittance Performance In July 2024 alone, overseas Pakistanis transferred $161 million through the …

British energy giant Shell plans to cut hundreds of jobs in its oil and gas exploration division as part of an extensive cost-cutting program it announced last year. According to a source familiar with the matter, the cuts will affect two key units specializing in hydrocarbon extraction projects, resulting in a 20% reduction in their workforces. Impact and Scope The …

The Pakistan Stock Exchange (PSX) exhibited positive momentum on Friday, driven by an improved economic outlook and investor interest in the government’s ongoing discussions regarding the privatisation of state-owned enterprises (SOEs). The market also drew support from bullish global equity trends and the government’s commitment to reducing power tariffs. Market Performance and Trends Trading commenced with strong buying activity, and …

The federal government reduced its inflation forecast for August to a single digit on Friday, which could compel the central bank to consider a significant interest rate cut in the next monetary policy meeting. The Ministry of Finance’s monthly economic outlook projects inflation to range between 9.5% and 10.5% in August, with a further decline anticipated to 9% to 10% …

Pakistani Rupee Strengthens on Rising Forex Reserves and Moody’s Upgrade The Pakistani rupee showed signs of recovery on Friday, appreciating by Rs0.10 against the US dollar to close at Rs278.54 in the inter-bank market. This rebound follows a two-day decline, where the rupee had lost Rs0.32, reaching Rs278.64 against the dollar. The improvement in the rupee’s value has been attributed …