Economy

Pakistan’s Current Account Deficit in July 2024: An Overview In July 2024, Pakistan recorded a current account deficit (CAD) of $162 million, slightly higher than market expectations and the 12-month average but still within the targeted range. This deficit was primarily due to increased imports of goods to support economic activities and a significant repatriation of profits and dividends by …

Introduction In a challenging economic environment, where many businesses in Pakistan struggle to stay afloat, Fast Cables, the nation’s largest power-cable manufacturer, has emerged as a beacon of resilience and growth. By consistently staying ahead of market demand and removing production bottlenecks, the company is positioning itself for significant expansion, both domestically and internationally. This blog post delves into the …

Over the past decade, Pakistan has experienced a significant decline in its crude oil and gas production, according to data from the Pakistan Petroleum Information Service (PPIS). From 2015 to 2024, crude oil production fell from 94,500 barrels per day to 70,500 barrels per day, while gas production decreased by 900 million cubic feet per day (MMCFD). Crude Oil and …

After months of speculation, Pakistan’s IT Minister, Shaza Fatima Khawaja, confirmed on Thursday that the government is upgrading its ‘web management system’ to counter cyber security threats. This marks the first official acknowledgment of actions that have been blamed for recent internet disruptions, including slow browsing speeds, social media blockages, and WhatsApp connectivity issues. Government’s Response to Internet Disruptions For …

In a rare move, government-owned power distribution companies (Discos) have requested a negative fuel cost adjustment (FCA) of 31 paise per unit. This adjustment is aimed at refunding approximately Rs4.5 billion to consumers, who were overcharged in July due to a 20% increase in base tariff for the current fiscal year. Formal Petition Filed by CPPA The Central Power Purchasing …

In a significant move aimed at streamlining state machinery and reducing administrative expenditures, the government has decided to abolish 28 departments within five key ministries. This decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif, following the recommendations of a specially formed committee. Major Reforms Across Key Ministries The ministries affected by these reforms include: Kashmir Affairs …

The National Electric Power Regulatory Authority (Nepra) is set to reduce the power tariff by Rs0.3142 per unit, offering some relief to consumers on their September 2024 electricity bills. This reduction is part of the fuel charges adjustment for July 2024. CPPA’s Petition for Tariff Reduction The Central Power Purchasing Agency (CPPA) has submitted a petition to Nepra, proposing to …

Prime Minister Shehbaz Sharif has recently taken a decisive step in Pakistan’s economic planning by delegating the responsibility of developing a “home-grown economic development plan” to Deputy Prime Minister Ishaq Dar. This move comes after expressing dissatisfaction with the draft prepared by UK economist Stefan Dercon. Formation of Ministerial Committee A notification from the Prime Minister’s Office announced the formation …

The central government debt of Pakistan surged by Rs8.07 trillion, or 13%, during the previous fiscal year, bringing the total debt to a staggering Rs68.9 trillion by the end of June 2024, according to data released by the State Bank of Pakistan (SBP) on Thursday. The significant rise in debt highlights the growing financial challenges faced by the government and …

The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved a substantial Rs60 billion relief package on Thursday to provide subsidized essential goods to poorer households. This move represents a 71% increase from the previous year’s allocation, driven by a significant rise in the prices of basic commodities. Key Features of the Relief Package The …