Tag Archives: Economy

A recent announcement by Finance Minister Ishaq Dar about a substantial increase in petroleum prices in Pakistan has triggered concerns and frustrations among consumers. This price hike, driven by rising international oil prices, has resulted in fuel shortages as many petrol pumps are reportedly refusing to sell fuel to customers. While the government’s decision was guided by commitments with the …

Central Bank’s Crucial Review of Policy Rate: Pakistan’s central bank is scheduled to convene its first meeting post-IMF new loan program to review the key policy rate on Monday. The decision will be pivotal in determining the country’s economic trajectory amid rising inflation rates and growth concerns. Varying Perspectives on the Policy Rate: Financial experts have differing views on the …

Soaring Inflation: Pakistan’s Economy Faces Mounting Pressure Pakistan’s economy is grappling with mounting inflationary pressures as the short-term inflation rate soared to 3.73% during the week ending on July 26, 2023, marking the highest level since October 2022. According to data released by the Pakistan Bureau of Statistics (PBS), this surge in prices has been primarily driven by substantial increases …

Pakistan’s Fiscal Year 2022-23 and Foreign Aid: In the fiscal year 2022-23, Pakistan received a total of $4.4 billion in financial assistance from the World Bank and the Asian Development Bank (ADB). However, this amount fell short of the budgeted estimates, resulting in a shortfall of $1.436 billion. Official data from the Economic Affairs Division revealed that while the country …

Positive Surge in PSX Benchmark Index: On Thursday, the Pakistan Stock Exchange’s benchmark KSE-100 index made a significant breakthrough, surpassing the 47,000 level for the first time since November 2021. The index achieved an intraday peak of 47,393.47 points, eventually settling at 47,076.99 points after a gain of 394.47 points. This surge indicates a growing confidence in the country’s economic …

Enhancing Tax to GDP Ratio: The Executive Committee of the National Economic Council (ECNEC) recently approved the “Investment Project Financing” (IPF) component of the “Pakistan Raises Revenue Project” to enhance the country’s tax to GDP ratio. Valued at Rs. 21.518 billion, with a $80 million World Bank loan, the IPF component aims to reduce tax expenditure, broaden the tax base, …

Introduction: Pakistan International Airlines (PIA) finds itself in a tax dispute with the Federal Board of Revenue (FBR) as the FBR takes the drastic step of freezing the airline’s bank accounts. This move comes at a critical time when the government has shifted the burden of revenue generation onto the general public, leading to growing concerns about the fairness of …

Introduction: In the fiscal year 2022-23, Pakistan witnessed a surprising discrepancy in tax contributions, with the salaried class emerging as the top income tax contributor. They paid a staggering Rs264.3 billion, nearly 200% higher than the combined income tax paid by exporters and retailers. Data released by the Federal Board of Revenue (FBR) has sparked discussions on the disproportionate burden …

Introduction: In a noteworthy development for the Pakistani economy, the gold price in Pakistan experienced a substantial decline, dropping by over Rs2,000 per tola. This decline is attributed to the recent appreciation of the Pakistani rupee against the US dollar in the interbank market. As a result, gold enthusiasts and investors may find this opportune moment to consider gold as …

Introduction: The Ministry of Finance has released its ‘Monthly Economic Update & Outlook’ for July, providing valuable insights into the current economic landscape of the country. The report presents an optimistic outlook, forecasting a decrease in inflation for July 2023 compared to the previous month, supported by various favorable factors. Additionally, it outlines improvements in the fiscal and current account …