Pakistan’s trade deficit widens to $35.4bn
Pakistan trade deficit peaked to a record $35.4 billion in the first nine months of current fiscal year, which was even higher than the annual target of $28.4 billion set by the outgoing government of Prime Minister Imran Khan.
In March 2022, which marked the end of 43-month rule of Pakistan Tehreek-e-Insaf (PTI) government, there was a dip in exports and surge in imports over the preceding month – a trend that the government could not reverse in its tenure.
According to data released by the Pakistan Bureau of Statistics (PBS) on Monday, the trade deficit in July-March 2021-22 increased to $35.4 billion. It was $14.6 billion, or over 70 percent, more than the same period of previous year.
RDA inflows inch closer to $4 bn
Overseas Pakistanis have invested the second largest amount of $290 million in a month in their home country through the Roshan Digital Accounts (RDAs), as the cumulative inflows hit a record high of nearly $4 billion by the end of March 2022.
The non-resident Pakistanis (NRPs) largely poured money- about two-thirds of the total investment – in the Naya Pakistan Certificates, which were especially offered by the government to the expatriates.
The government offers a robust rate of return on the certificates in foreign currency, at 5-7 percent per annum, depending on the length of investment period.
Traders laments low kinnow export in present season
The kinnow exports witnessed a drop of over 40 percent during the ongoing season and less than 200,000 tonnes of the fruit was shipped abroad against 460,000 tonnes last year, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former chairman Ahmad Jawad.
Speaking to the media on Monday, he said that steep increase in freight charges, unavailability of containers, lack of banking channels in some destination countries, export bottlenecks and reduction in output due to climate changes were major reasons behind the decline.
“Pakistan exports kinnow to 40 countries and its major markets include Middle East, Indonesia, Malaysia, Russia, Afghanistan and the Philippines,” he said.
Political turmoil perturbs business community
The business community has voiced concern over the emerging political crisis, citing that the economy is already in a fragile state.
In a statement on Monday, Businessmen Group (BMG) Chairman Zubair Motiwala expressed grave concern over the ongoing political turmoil that led to the dissolution of National Assembly.
Economic crisis such as continuous devaluation of currency, declining foreign exchange reserves, rising inflation, widening current account and fiscal deficits amid political unrest “must not be stretched for a longer period and should be resolved at the earliest to save the economy from further deterioration”.
Nepra may raise K-Electric’s tariff by Rs1.29
The National Electric Power Regulatory Authority (Nepra) may allow K-Electric to increase power tariff by Rs1.29 per unit on account of fuel cost adjustment for the month of February 2022.
The regulatory authority conducted a public hearing on Monday to consider the increase in tariff sought by K-Electric.
During the hearing, Nepra Chairman Tauseef H Farooqi hinted at allowing the company to transfer a burden of Rs1.474 billion to the residents of Karachi.
In its petition, K-Electric sought a tariff increase of Rs3.45 per unit on account of fuel cost adjustment for February 2022. According to the power utility, the hike will have an impact of Rs3.95 per unit on the power tariff applicable to the company’s consumers.
State Bank reserves plunge $2.9bn on loan repayment
The foreign exchange reserves held by the central bank decreased 19.5 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On March 25, the foreign currency reserves held by the SBP were recorded at $12,047.3 million, down $2,915 million compared with $14,962.4 million on March 18.
According to the central bank, the decrease reflected repayment of external debt, including repayment of a major syndicated loan facility from China.
“The rollover of this syndicated facility is being processed and is expected shortly,” it said.
FBR misses tax target in March
The Federal Board of Revenue (FBR) claimed on Thursday that it collected Rs4.382 trillion in taxes during the first nine months of current fiscal year but again missed the monthly target by a wide margin due to its failure to increase reliance on direct taxes.
According to the provisional information, the FBR received Rs4.382 trillion during July-March of current financial year 2021-22, showing an increase of 29 percent over the collection made during the same period of previous fiscal year, according to an FBR statement.
However, sources said that till late Thursday night, the provisional collection stood at Rs4.368 trillion – Rs14 billion less than what the FBR claimed in its press release.
They said that the number might jump above Rs4.38 trillion once the provisional figures were finalised including the book adjustments.
The FBR has seized the bank accounts of National Highway Authority and withdrew Rs1.2 billion to recover taxes. This will increase the overall collection by the same amount.
Business leader for exploiting GSP+
Exporters should reap maximum benefits of the GSP plus status as it is playing a key role in pushing Pakistan towards a bright future, said UK-Pakistan Business Council Chairman Mian Kashif Ashfaq.
Speaking to a delegation of women exporters on Thursday, he said that GSP plus status had strengthened Pakistan’s commitment to further improve work standards and labour rights.
“Supported by the GSP plus scheme, woman make up more than 33 percent of the workforce in the apparel sector,” he said. “Increase in bilateral trade created jobs and improved working conditions of labourers.”
According to him, sustainable policies for the business sector, framed in consultation with relevant stakeholders, yielded positive results and bolstered the national economy.