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Faysal Bank Announces Job Opportunity for Trainee Branch Services Officer

Khashif Sarfraz
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Faysal Bank Announces Job Opportunity for Trainee Branch Services Officer

Faysal Bank has announced a Trainee Branch Services Officer position, offering an excellent opportunity for fresh graduates or candidates with 1-2 years of experience. The job is based in Karachi and offers a competitive salary ranging from PKR 45,000 to 50,000/month. The last date to apply is September 29, 2024.

Key Responsibilities

As a Trainee Branch Services Officer, you will:

  1. Handle a variety of financial and non-financial transactions, including cash deposits/withdrawals, remittances, bill payments, fund transfers, and more, adhering to SBP regulations.
  2. Prepare and maintain vouchers, reports, and logs on daily operational activities, such as cheque book issuance and locker records.
  3. Reconcile cash balances in the branch vault and ATMs, ensuring compliance with internal and SBP audit requirements.
  4. Maintain effective interaction with centralized operations to ensure smooth processing of customer transactions.
  5. Assist customers by delivering fast, accurate, and efficient transaction services with a focus on low Turnaround Time (TAT).

Qualifications

  • Education: Intermediate/A-Level minimum.
  • Experience: Fresh to 2 years of relevant experience.
  • Age Limit: 20-28 years.

Why Join Faysal Bank?

  • Competitive salary range of PKR 45,000 to 50,000/month.
  • Opportunity for fresh graduates to build a career in Retail Banking.
  • Hands-on experience with daily branch operations and customer service.
  • Training and career growth opportunities in a leading financial institution.

If you’re looking for a dynamic start in banking, this could be the perfect opportunity! Apply by September 29, 2024, and take the first step towards a fulfilling career in finance.

Apply Here

Pakistan Government Targets Rs450 Billion in Tax Collections Through Digital Enforcement Measures

Khashif Sarfraz
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Pakistan Government Targets Rs450 Billion in Tax Collections Through Digital Enforcement Measures

The Government of Pakistan has initiated an aggressive plan to collect Rs450 billion in taxes through digital enforcement measures to meet this fiscal year’s ambitious Rs12.97 trillion tax target. This plan comes in response to challenges faced in tax collection, including a shortfall in the first quarter and concerns about a weak global economy.

The Federal Board of Revenue (FBR) intends to digitally capture Rs48 trillion in services sector supplies over the next three months, with Prime Minister Shehbaz Sharif endorsing the strategy. Expanding the Point of Sale (POS) initiative to cover a broader range of sectors is central to this effort, along with targeting both compliant taxpayers and non-filers.

Key Enforcement Measures

The FBR’s plan to collect Rs450 billion includes:

  • Rs50 billion from traders.
  • Rs30 billion through upward revision of property valuations.
  • Digital tracking of Rs47.5 trillion in sales across 10 major sectors, including wholesale, retail, transport, financial services, real estate, construction, and health.

The wholesale and retail sector alone accounts for Rs20 trillion of these sales. The POS initiative, aimed at capturing more sales data, has been in place for years, but is now being scaled to significantly increase compliance.

Focus on High-Income Earners and Large Turnovers

In addition to the POS strategy, the government will target Pakistan’s wealthiest workforce. It aims to collect an additional Rs1.2 trillion from the top 5% of the population, focusing on individuals with annual incomes exceeding Rs10 million. Other measures include:

  • Restrictions on withdrawals over Rs30 million for compliant taxpayers.
  • Tracking and freezing of bank accounts for unregistered manufacturers and wholesalers with turnovers over Rs250 million.

The FBR will also appoint receivers to confiscate assets of unregistered manufacturers and wholesalers who fail to comply.

Challenges and Economic Pressures

The government is under pressure to meet its agreement with the International Monetary Fund (IMF), which requires achieving the Rs12.97 trillion target as part of a $7 billion loan package. With only Rs500 billion collected so far this quarter, far short of the required Rs1.2 trillion, the government needs to ramp up its efforts.

Inflation and GDP growth are crucial to this plan’s success, with the FBR estimating that autonomous growth could bring in Rs1.9 trillion if 3% GDP growth and 12.9% inflation are achieved. However, if inflation falls below expectations or imports remain low, enforcement measures will need to cover the shortfall.

IMF Bailout at Risk: Pakistan Must Secure $2 Billion in Financing to Avoid Delay

Aarooj Manzoor
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IMF Bailout at Risk: Pakistan Must Secure $2 Billion in Financing to Avoid Delay

The International Monetary Fund (IMF) could delay the new $7 billion bailout if Pakistan fails to secure a $2 billion financing gap from commercial lenders by the end of the current week.Pakistan must submit a signed Letter of Intent (LoI) to the IMF Executive Board for approval of the 37-month Extended Fund Facility (EFF) while committing to comply with all conditions set by the Washington-based lender, reported a national daily.

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Till September 18, 2024, Pakistan is not on the Board’s agenda. Meanwhile, it has so far failed to secure financing commitments from key lending partners. If the financing is not confirmed this week, the approval for the loan may be jeopardized.

A delay into October could lead to the IMF recommending a mini-budget if fiscal slippages occur. This is due to potential shortfalls in tax and non-tax revenue collections. The Federal Board of Revenue (FBR) anticipates a revenue shortfall of Rs. 200-220 billion for the July-September quarter, with final estimates expected between September 18 and 20.

In response to the economic strain, the Ministry of Finance hopes the upcoming Monetary Policy Committee (MPC) meeting on September 12, 2024, may result in a policy rate cut of 150-200 basis points and ease expenditure pressures.write an blogpost with keyphrase, title, tags, category, meta description and detailed post using following content

Payoneer Increases Fees for Pakistani Users: What Freelancers Need to Know

Aarooj Manzoor
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Payoneer Increases Fees for Pakistani Users: What Freelancers Need to Know

Payoneer Raises Fees for Pakistani Users: A Setback for Freelancers

In a significant move, Payoneer, a widely used online money transfer platform, has increased its transaction fees for users in Pakistan. This decision has raised concerns, particularly among freelancers who rely on Payoneer for receiving payments from international clients. As of October 20, 2024, Payoneer will be charging a 3% transaction fee on every payment, plus a fixed fee of $0.49 for USD-based transactions.

A 50% Fee Increase: What Has Changed?

Previously, the transaction fee stood at 2%, but the recent update raises it to 3%, making it more costly to send or receive money. Along with this percentage-based fee, users will also incur a fixed fee for each transaction, depending on the currency involved. The new fixed fees are as follows:

  • $0.49 USD for USD transactions
  • 0.39 GBP for transactions in British pounds
  • 0.45 EUR for transactions in euros
  • 0.75 AUD for Australian dollars
  • 0.67 CAD for Canadian dollars
  • 73.76 JPY for Japanese yen

This fee adjustment applies to payments made via debit or credit cards, as well as payments received through Payoneer’s Request a Payment or Initiate a Payment options.

Effective Date: October 20, 2024

While this change has raised concerns, users have some time to adjust. The updated fee structure will take effect on October 20, 2024. Until that date, the current fees will remain in place. After the new fees come into play, they will be reflected on Payoneer’s Fee Page under account settings.

Why Payoneer Is Raising Fees

According to Payoneer’s official statement, the fee increase is part of a periodic review aimed at maintaining their service quality in a changing market. Although the hike is significant, Payoneer has emphasized that it remains committed to supporting business growth for its users.

Here’s what Payoneer said about the change:

“To ensure we can keep giving you the best service, we periodically review our fees as the market changes. While these adjustments are necessary, our commitment to empowering your business growth remains our top priority.”

Impact on Freelancers and Businesses

For many Pakistani freelancers, this fee increase could represent a substantial financial burden. Freelancers who already work with thin profit margins will see their income affected, especially when processing multiple small payments. Local businesses that rely on Payoneer for international transactions will also need to adjust their pricing or find alternative payment solutions to absorb the increased costs.

Options for Freelancers Moving Forward

As the new fee structure takes effect, freelancers may explore several options:

  • Incorporating fees into project pricing: To offset the cost, freelancers can raise their prices slightly.
  • Using alternative payment methods: Other platforms like Wise or PayPal could offer competitive rates and help reduce transaction costs.
  • Negotiating payment terms: Freelancers can ask clients to pay in larger sums less frequently to minimize the number of transactions subject to fees.

Conclusion: A Time to Reassess Payment Strategies

Payoneer’s fee hike is a clear reminder for freelancers and businesses to regularly review their payment strategies. While Payoneer continues to offer reliable services, the increased fees may encourage users to explore alternative solutions. For those who choose to stay with Payoneer, adjusting pricing models or payment frequencies could help mitigate the impact of this fee change.

Ultimately, staying informed and proactive is the best way to navigate this financial shift without compromising business growth.

Country Cannot be Run Through Charity: Finance Minister Stresses the Need for Taxes

Aarooj Manzoor
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Country Cannot be Run Through Charity: Finance Minister Stresses the Need for Taxes

The Necessity of Taxes for Economic Stability

Finance Minister Muhammad Aurangzeb recently emphasized a critical point: “The country cannot be run through charity; everyone must pay taxes.” This statement highlights a fundamental truth about economic management and national development. Taxes are essential for funding government functions and ensuring economic stability.

Current Economic Performance

According to the Finance Minister, the country’s economy is showing positive signs. The currency remains stable, inflation has dropped to a single digit, and both remittances and exports have hit record highs during July and August. These achievements reflect a stable economic environment, but they also underscore the need for sustainable revenue streams through taxes.

The Role of Fiscal Discipline

In a Senate session, Finance Minister Aurangzeb responded to concerns about shrinking loans, rising private sector debts, and the digitalization of the Federal Board of Revenue (FBR). He emphasized that upholding fiscal discipline is crucial for continued economic growth. Without proper fiscal management, even a growing economy can face significant challenges.

Structural Reforms: A Path Forward

The Finance Minister highlighted the need for structural reforms in state-owned enterprises and the energy sector. These reforms are not just about improving efficiency but also about setting the stage for reduced dependency on international financial programs. Success in these areas could potentially mark the end of the country’s reliance on IMF programs.

Impact of Fiscal Discipline on Revenue and Borrowing

Maintaining fiscal discipline can lead to increased revenue and exports while reducing borrowing needs. The Finance Minister believes that if the country manages to preserve fiscal discipline, it will see a significant improvement in its economic indicators, including revenue growth and a reduction in national debt.

Government Initiatives: SME Subsidies and Digitalization

The government has allocated substantial subsidies for the Small and Medium Enterprises (SME) sector in the FY25 budget. SMEs are vital for job creation and economic diversity, making this support crucial for their growth and sustainability.

Additionally, the digitization of the FBR is in progress. This modernization effort aims to enhance tax collection efficiency and reduce administrative barriers. A digital tax system will ensure more accurate tax reporting and collection, contributing to improved fiscal health.

Focus Areas: Agriculture and IT

The government has also prioritized the agriculture and Information Technology (IT) sectors. By investing in these key areas, the government aims to boost exports and drive economic growth. Agriculture and IT are pivotal for a diversified and robust economy, offering substantial opportunities for development and innovation.

Conclusion: The Future of Economic Growth

In summary, Finance Minister Muhammad Aurangzeb’s remarks underscore the critical role of taxes in ensuring economic stability and growth. The emphasis on fiscal discipline, structural reforms, and support for key sectors like SMEs, agriculture, and IT are steps towards a more sustainable and self-reliant economy. By maintaining a focus on these areas, the country can reduce its dependence on external financial assistance and build a stronger economic foundation.

Surge in Remittances: Overseas Pakistanis Send Nearly $3 Billion for Fourth Straight Month

Aarooj Manzoor
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0
Surge in Remittances: Overseas Pakistanis Send Nearly $3 Billion for Fourth Straight Month

Overseas Pakistani Remittances Near $3 Billion for the Fourth Consecutive Month

In a remarkable display of financial support, overseas Pakistanis sent $2.943 billion in remittances during August 2024, marking a 40% increase compared to the same month last year when the inflow was recorded at $2.094 billion. This significant rise in remittances underscores the continued dedication of expatriate Pakistanis to support their families and contribute to the country’s economic stability.

August 2024 is the fourth consecutive month where remittances have remained near or above the $3 billion threshold. The inflows for May, June, and July 2024 stood at $3.242 billion, $3.158 billion, and $2.994 billion, respectively. While there was a slight 2% decline on a month-to-month basis from July to August, the overall trend remains strong and positive.

Main Sources of Remittances in August 2024

The key sources of remittance inflows during August 2024 were:

  • Saudi Arabia: $713 million
  • United Arab Emirates: $538 million
  • United Kingdom: $475 million
  • United States: $322 million

These countries remain the top contributors to remittances, given the large population of overseas Pakistanis working and living there. The Middle Eastern countries, particularly Saudi Arabia and the UAE, continue to be the biggest sources, reflecting the importance of labor markets in these regions for Pakistani workers.

First Two Months of FY25: Strong Growth

In the first two months of the fiscal year 2025 (July and August), total remittances increased by 44%, reaching $5.937 billion, compared to $4.118 billion during the same period in FY24. This growth is critical for Pakistan’s economy as remittances play a vital role in supporting the country’s foreign exchange reserves, stabilizing the current account deficit, and ensuring financial liquidity.

Key Factors Behind the Growth

Several factors contribute to this consistent flow of remittances:

  1. Improved Global Job Markets: Many of the host countries, especially in the Middle East, have seen significant economic recovery post-pandemic. This has created more job opportunities for Pakistani workers abroad, enabling them to send more money back home.
  2. Favorable Exchange Rates: The fluctuations in the exchange rate of the Pakistani rupee against major global currencies like the US dollar and British pound have encouraged expatriates to send remittances during favorable conditions, maximizing their contributions.
  3. Government Initiatives: The Pakistani government has introduced several policies to facilitate remittance inflows. By improving financial channels, lowering transaction costs, and offering incentives to overseas Pakistanis, the government has made it easier and more attractive to send money through formal banking systems.
  4. Continued Support to Families: As inflation in Pakistan remains high, overseas Pakistanis are sending higher amounts to help their families meet the rising cost of living. This humanitarian aspect cannot be ignored as remittances provide crucial financial support to millions of households across the country.

The Role of Remittances in Pakistan’s Economy

Remittances are a vital component of Pakistan’s economy, acting as a stable source of foreign exchange. They help reduce the country’s reliance on external debt and provide liquidity to meet import payments. These inflows have a direct impact on improving the balance of payments and supporting the overall economic framework.

In light of the challenges facing the global economy, the steady growth in remittances is a welcome sign. As these inflows continue near or above the $3 billion mark, they contribute significantly to mitigating the pressure on Pakistan’s foreign exchange reserves and maintaining economic stability.

Conclusion

The steady flow of remittances from overseas Pakistanis is an encouraging trend for the country’s economic outlook. With inflows consistently near the $3 billion mark for four months in a row, these remittances are not just a lifeline for millions of Pakistani families but a crucial component of the nation’s financial health. As the fiscal year progresses, the role of these remittances will remain essential in supporting Pakistan’s economic recovery.

How Digital Skills Training Can Add Rs. 2.8 Trillion to Pakistan’s GDP by 2030

Aarooj Manzoor
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0
How Digital Skills Training Can Add Rs. 2.8 Trillion to Pakistan’s GDP by 2030

Digital Skills Training Can Add Rs. 2.8 Trillion to Pakistan’s GDP by 2030

Pakistan’s digital economy is rapidly evolving, and according to Google’s research, enhancing digital skills and embracing education technologies could add Rs. 2.8 trillion to the nation’s GDP by 2030. This shift will help future-proof the country’s economy while creating new opportunities for growth and development.

Google’s Commitment to Pakistan’s Digital Economy

Google recently hosted the Agay Barho: A Google for Pakistan Event in Islamabad, reaffirming its dedication to empowering Pakistan’s digital economy. The event highlighted the potential of investing in digital skills and boosting exports to secure long-term economic stability.

The Role of Digital Skills Training

Narrowing the digital skills gap is crucial to ensuring Pakistan remains competitive in the global market. A report titled “Agay Barho: Empowering Pakistan’s Digital Economy” by Access Partnership highlights how IT services are at the heart of Pakistan’s economic growth, despite recent challenges. Since 2014, IT exports have grown by 2.7x, comprising 35% of all service-sector exports in 2023.

Boosting Digital Exports and Unlocking Economic Potential

Digital technologies will be pivotal in increasing Pakistan’s digital exports. By 2030, digital services such as mobile apps, online videos, digital advertisements, and e-commerce are expected to contribute an additional $6.6 billion (Rs. 1.8 trillion) annually in export value.

These developments will primarily be driven by businesses leveraging digital technologies to enhance export processes, reduce market entry costs, and develop innovative solutions. Moreover, technologies like Artificial Intelligence (AI) will help accelerate exports by opening up access to global markets and creating new opportunities for growth.

Google’s Contributions to Pakistan’s Digital Growth

In 2023, Google’s AI-powered tools alone contributed Rs. 3.9 trillion to Pakistan’s economy. The company’s efforts extend beyond AI, with initiatives such as producing 500,000 Chromebooks locally by 2026 in collaboration with Tech Valley, Allied, and NRTC. This partnership, supported by the Prime Minister, is a significant milestone in Pakistan’s ongoing digital transformation.

Supporting Jobs and Economic Activity through Google Services

Google has played an instrumental role in fostering economic activity in Pakistan. Services like Google Search, Google Ads, and YouTube contributed Rs. 2.6 trillion to business activities, with Rs. 249 billion of that coming from overseas markets. Additionally, platforms like Google Maps and Google Play generated Rs. 1.3 trillion in economic benefits for households.

In total, Google’s services helped support 864,600 jobs in 2023, enabling businesses to grow through digital platforms. The Android app economy alone supported over 100,400 jobs, further bolstering Pakistan’s employment landscape.

Empowering Freelancers and Women in Pakistan

To address the gender employment gap, Google launched the Career Kamyabi program, designed to upskill female graduates in Pakistan. Furthermore, the company introduced a Freelancer Skilling Program in collaboration with PAFLA, training more than 10,000 freelancers across Pakistan with essential soft skills.

Conclusion: The Future of Pakistan’s Digital Economy

The impact of digital skills training and technological innovation on Pakistan’s economy is undeniable. As digital exports rise and the gap in digital skills narrows, the country is on a trajectory to significantly increase its GDP by 2030. Google’s contributions and partnerships have already set the foundation for a prosperous digital future in Pakistan.

Pakistan’s Weekly Inflation Declines for Fourth Consecutive Week

Aarooj Manzoor
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Pakistan’s Weekly Inflation Declines for Fourth Consecutive Week

Weekly Inflation in Pakistan Falls for Fourth Straight Week

Pakistan’s inflation has shown a much-needed downward trend for the fourth consecutive week, offering slight relief to consumers. According to data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Index (SPI)-based inflation for the week ending September 5, 2024, dropped by 0.15%. This decline marks a continued easing of inflationary pressures in the country.

What the Latest SPI Data Reveals

The Sensitive Price Index tracks the price fluctuations of 51 essential items, providing a snapshot of how inflation is impacting households across Pakistan. Out of the 51 items monitored, the prices of 19 items (37.25%) increased, while 13 items (25.50%) saw a decrease. Additionally, the prices of 19 items (37.25%) remained unchanged during the week.

Items That Saw a Price Increase

Despite the overall decline in inflation, certain essential goods saw a rise in their prices. Key items that contributed to the increase include:

  • Onions (3.83%)
  • Pulse Gram (1.65%)
  • Garlic (1.38%)
  • LPG (Liquefied Petroleum Gas) (0.9%)
  • Cooked Daal (0.70%)
  • Cooked Beef (0.70%)
  • Eggs (0.54%)
  • Potatoes (0.50%)
  • Rice Basmati Broken (0.34%)
  • Bananas (0.22%)
  • Pulse Moong (0.17%)
  • Milk Fresh (0.17%)

These price increases are a reflection of ongoing supply chain challenges and other economic factors influencing the market.

Items That Saw a Price Decrease

On the flip side, a number of items experienced a significant reduction in their prices during the same period. Major items that recorded a price drop include:

  • Tomatoes (14.54%)
  • Chicken (1.55%)
  • Wheat Flour Bag (20 kg) (1.31%)
  • Chilies Powder (National, 200 gm packet) (1.30%)
  • Hi-Speed Diesel (1.23%)
  • Petrol Super (0.68%)
  • Pulse Masoor (0.59%)
  • Sugar (0.54%)
  • Pulse Mash (0.49%)
  • Cooking Oil (Dalda or similar brand, 5-litre tin) (0.41%)
  • Rice IRRI-6/9 (0.29%)
  • Mustard Oil (0.08%)
  • Bread Plain (0.03%)

The sharp decrease in tomato prices, along with the reduction in fuel prices, contributed significantly to the overall decline in the inflation rate.

Year-on-Year Inflation Analysis

While the week-on-week SPI data shows a decline, the year-on-year comparison paints a different picture. On an annual basis, weekly inflation increased by 14.07%. However, this is the lowest year-on-year inflation rate recorded in the past three years, signaling potential stabilization in the economy.

What Does This Mean for Consumers?

The weekly decline in inflation is a promising development for households already grappling with rising costs of living. However, the uneven price trends—where some essential goods have become more expensive—mean that consumers are not yet fully out of the woods. Nonetheless, the easing of inflationary pressure is a positive sign, particularly for key items like fuel, wheat flour, and certain vegetables, which are staples for many families.

SECP’s New Consultation Paper Aims to Revamp Public Offering Regime

Aarooj Manzoor
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SECP’s New Consultation Paper Aims to Revamp Public Offering Regime

SECP Issues Consultation Paper to Improve Public Offering Regime in Pakistan

The Securities and Exchange Commission of Pakistan (SECP) has released a Consultation Paper aimed at enhancing the public offering regime to promote capital formation and streamline the regulatory environment for businesses. The paper, which is open for public feedback, highlights various areas for potential improvements that will foster a more efficient, transparent, and cost-effective system for companies and investors alike.

A Move Towards Efficient Capital Formation

In its official statement, SECP reaffirmed its commitment to simplifying capital formation—a critical process that allows businesses to raise funds for expansion and growth. SECP’s focus is on reducing the complexity and cost of raising capital while ensuring transparency and efficiency within Pakistan’s financial markets.

Efficient capital formation, according to SECP, is essential for the overall economic development of the country. By making it easier for businesses to access capital, the economy can benefit from increased innovation, job creation, and sustainable growth.

Key Areas for Improvement in the Public Offering Regime

Over time, SECP has implemented various reforms in the public offering framework to support capital formation. Building on this, the Consultation Paper identifies several areas that require further improvement, based on international best practices, market feedback, evolving technology, and a thorough review of the current regulatory environment.

The broad areas highlighted in the Consultation Paper include:

  • IPO Pricing: Reviewing methods for determining initial public offering (IPO) prices to ensure fairness for both issuers and investors.
  • Public Offering and Listing Conditions: Simplifying and enhancing the conditions for businesses seeking to go public, making the process more accessible.
  • Role of Consultant to the Issue: Clarifying and strengthening the role of consultants to ensure better support for issuers during the public offering process.
  • IPO Approval Timelines and Documentation: Reducing the time and complexity involved in obtaining approval for public offerings, making the process more efficient.
  • Disclosure Requirements: Improving the transparency of information provided to investors during the IPO process.
  • Digitization and IPO Outreach: Leveraging technology to streamline IPO processes and reach a broader range of potential investors.
  • Public Offering Regime for GEM Companies: Developing a framework specifically tailored to Growth Enterprise Market (GEM) companies to help smaller firms access capital more easily.
  • Post-IPO Matters: Addressing ongoing obligations and responsibilities of companies once they have gone public.

Balancing Supply and Demand

The SECP’s proposed improvements are designed to address both the supply and demand sides of capital formation. On the supply side, the focus is on creating a more conducive regulatory environment for businesses, enabling them to raise funds quickly, efficiently, and cost-effectively.

On the demand side, the goal is to enhance the investor journey by ensuring that public offerings are transparent, well-regulated, and accessible, making it easier for both institutional and retail investors to participate in the capital markets.

Call for Public Feedback

The SECP is encouraging all stakeholders, including market participants, businesses, and investors, to review the Consultation Paper and provide feedback on the proposed changes. Feedback will be accepted until September 20, 2024, after which SECP will hold further consultation sessions to discuss the input received and finalize regulatory amendments.

The SECP has made the full Consultation Paper available on its website, signaling its intent to ensure that the final regulatory changes are comprehensive and in line with stakeholder expectations.

OPEC+ Delays Planned Oil Output Increase

Khashif Sarfraz
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OPEC+ Delays Planned Oil Output Increase

OPEC+ Delays Planned Oil Output Increase Amid Falling Prices and Economic Concerns

OPEC+, the alliance of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, has agreed to delay a planned oil output increase for October and November 2024. This decision comes after crude prices fell to their lowest in nine months, with further pauses or even reversals in the production hike being considered if market conditions demand.

The delay in increasing output is a strategic response to falling oil prices, driven by concerns over a weak global economy and sluggish economic data from China, the world’s largest oil importer.

Oil Prices Hold Near Multi-Month Lows

As of Thursday, oil prices remained near a 14-month low. Brent futures were down 18 cents (0.3%) to $72.52 per barrel by 1739 GMT, while US West Texas Intermediate (WTI) crude fell 25 cents (0.4%) to $68.95 per barrel. These declines reflect broader market apprehension amid fears of a slowing global economy.

OPEC+ Meeting and Production Cuts

On Thursday, eight members of OPEC+, who were scheduled to raise output from October, held a virtual meeting to discuss market conditions. In a statement, OPEC said, “The eight participating countries have agreed to extend their additional voluntary production cuts of 2.2 million barrels per day (bpd) for two months until the end of November 2024.”

The news briefly lifted oil prices by over $1 per barrel, with Brent futures trading above $74 before paring gains. The price increase, however, remained fragile as it fell to its lowest this year on Wednesday.

Context of OPEC+ Production Adjustments

OPEC+’s initial plan for an October output hike was a modest 180,000 bpd, a fraction of the 5.86 million bpd currently withheld from the market—equivalent to about 5.7% of global demand. The group’s decision to delay the output increase aims to support the market amid uncertainties about global oil demand and rising supply from non-OPEC+ producers.

OPEC+ has shown its readiness to adjust its policies further if necessary to stabilize the market, reflecting its ongoing role in managing the global oil supply balance amid uncertain economic conditions.

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