Finance

Introduction Climate change is one of the most pressing global challenges of our time, requiring collective action and innovative solutions. As the world seeks ways to mitigate and adapt to the impacts of climate change, Islamic finance offers a unique and ethical approach to climate finance, aligning financial investments with sustainable development goals. With a growing global footprint, Islamic finance …

Oil prices saw a slight decline on Wednesday after an unexpected rise in US crude inventories and a reduction in concerns over potential disruptions in the Middle East. Market Movement Brent Crude Futures: Fell by 41 cents (0.5%), reaching $80.28 per barrel by 1436 GMT. US West Texas Intermediate (WTI) Crude Futures: Dropped by 55 cents (0.7%), settling at $77.77 …

State Bank of Pakistan (SBP) Governor Jameel Ahmad has expressed optimism about the country’s economic outlook, attributing the positive shift to effective measures implemented by the government and central bank. His message, delivered by Executive Director Muhammad Haroon Rasheed during Independence Day celebrations at the SBP, outlined significant improvements in macroeconomic indicators. Decline in Inflation and Reduction in Current Account …

The Pakistan Stock Exchange (PSX) rebounded strongly on Thursday, gaining 667 points to reach 78,545 during intra-day trading. This recovery represents a significant 0.85% rise from its previous close of 77,878 points, signaling a positive turn in the market after recent declines. Recent Market Decline and Contributing Factors Earlier in the week, the PSX had experienced a downturn, dropping over …

Overview Recent revelations indicate significant misuse of the Export Facilitation Scheme (EFS) and possible involvement in money laundering by scrap importers, particularly those dealing with compressor and motor scrap. The Brass Manufacturing Association (BMA) has raised concerns and proposed the cancellation of the scheme due to these abuses. Key Allegations Misuse of Scheme: Importers of compressor and motor scrap are …

Fiscal Deficit Forecast The finance ministry has projected a substantial increase in Pakistan’s fiscal deficit, estimating it could reach Rs9.655 trillion in the upcoming fiscal year. This projection reflects ongoing concerns about managing public finances amid rising debt obligations. Economic Growth and Inflation Despite the deficit projection, the finance ministry anticipates economic growth to rise by 4.8% during the fiscal …

Challenges Facing Middle-Income Countries The ‘World Development Report 2024’ highlights the significant challenges middle-income countries face as they strive to transition to high-income status. Rising debt, aging populations, protectionism in advanced economies, and the pressures of accelerating the energy transition are key obstacles. Current Status and Aspirations There are currently 108 countries classified as middle-income, many of which aspire to …

Introduction of Concept Papers The Securities and Exchange Commission of Pakistan (SECP) has issued two concept papers aimed at enhancing the development of the short-term sukuk (Islamic bonds) market. These papers are intended to initiate public consultation and propose regulatory measures to promote the listing of short-term sovereign and corporate sukuk instruments. Objectives and Rationale The primary goal of these …

Decline in Foreign Investment Foreign investors’ stakes in companies listed on the Pakistan Stock Exchange (PSX) have plummeted to a historic low of 3.7% ($491 million) of the total value of publicly traded shares by the end of June 2024. This marks a significant decrease from 28.7% ($2.97 billion) in FY17. The decline has been attributed to economic and political …

Overview of the New Budget Pakistan’s economic outlook is currently marred by fiscal challenges, as detailed in the Lahore School of Economics’ recent report. For the fiscal year 2024-25, the budget has been significantly expanded, with expenditures rising from Rs14.5 trillion to Rs18.9 trillion. This increase is largely driven by the government’s ambitious target to boost tax revenue from Rs9.4 …