Pakistan got over $5 bn in fresh loans in July
Pakistan got over $5 billion in fresh loans in July, which was the highest amount received in any month, to meet project and foreign exchange reserve requirements, as the interim government sought a review of the annual financing plan in light of the prevailing economic conditions.
According to provisional statistics compiled by the Ministry of Economic Affairs and the State Bank of Pakistan (SBP), there was a massive jump in inflows of foreign loans after Islamabad struck a nine-month deal with the International Monetary Fund (IMF).
Pakistan received $2.9 billion in budget and project financing and another $2.2 billion came in coffers of the central bank in July, the first month of fiscal year 2023-24.
Exports of textiles, clothing shrink in July by 11pc
Textile and clothing exports shrank 11.44 percent during the first month of the current fiscal year due to higher production costs, liquidity constraints and lower global demand.
In absolute terms, the value of textile and clothing exports fell to $1.31 billion in July from $1.48bn in the corresponding month last year, data released by the Pakistan Bureau of Statistics showed on Monday.
Rates of tea raised by up to Rs200 per kg
Unprecedented food prices amid squeezing incomes have already deprived the majority of households to afford decent breakfast, a fresh hike in tea rates both branded and loose would further make it difficult to manage a cup of tea.
Packers and traders on Monday shocked consumers with Rs100 hike in 900-gram branded packs and around Rs200 per kg in loose tea.
Energy sector faces Rs470b loss
During a parliamentary committee meeting on Tuesday, it was revealed that the power sector in Pakistan has incurred a staggering loss of Rs470 billion due to a lack of cooperation from the provinces.
The meeting, presided over by Senator Saifullah Abro at the Parliament House, focused on discussing the generation and distribution of electricity to different provinces.
The Power Division informed the Senate Standing Committee on Power about the substantial loss incurred, emphasizing that the lack of cooperation from the provinces was the root cause. The committee, however, deferred the remaining agenda to be addressed in upcoming sessions.
PDM govt installed SNGPL board in violation of rule
The last Pakistan Democratic Movement (PDM) government illegally replaced five independent directors of Sui Northern Gas Pipelines Limited (SNGPL) towards its fag end without holding their elections, creating a legal challenge for the firm.
The matter suddenly got attention this week after the Lahore High Court (LHC) granted an interim injunction a day earlier and the Securities and Exchange Commission of Pakistan (SECP) on Tuesday sought an explanation from the company.
Rupee hits historic low
Pakistani currency hit a new historic low at Rs299 against the US dollar in the inter-bank market on Tuesday, making imports further expensive and requiring more resources to repay foreign debt.
According to State Bank of Pakistan’s (SBP) data, the currency depreciated by 0.63 percent, or Rs1.88, to Rs299.01 against the greenback.
Energy tariff hike of Rs2.07 per unit sought
Consumers are bracing for another hike of Rs2.07 per unit in electricity tariff on account of fuel charges adjustment for July 2023.
On behalf of power distribution companies, the Central Power Purchasing Agency-Guarantee (CPPA-G) has requested for a price increase of Rs2.0703 per kilowatt-hour (kWh) over the reference fuel cost of Rs6.8935 per kWh. Average price of electricity came in at Rs8.9638 per unit for the month.
Pakistan’s economic situations delay CPEC development
China Overseas Port Holding Company (COPHC) Chairman Yo Bo has emphasised that Pakistan’s economic circumstances were primarily responsible for delay in China-Pakistan Economic Corridor (CPEC)’s development.
In a meeting at the Lahore Chamber of Commerce and Industry (LCCI), Yo shed light on the transformative progress of Gwadar under CPEC.
He underscored the significance of Gwadar, hailing it as CPEC’s pivotal axis. The first stage of Gwadar’s port and city development, along with the Gwadar Free Zone, has been completed.
His remarks outlined that Gwadar had been transformed from a modest village into a thriving modern city, replete with cutting-edge technology.
SIFC to help fast-track foreign direct investment
A cabinet member in the previous Pakistan Democratic Movement (PDM) government raised questions over empowering the Special Investment Facilitation Council (SIFC) for conducting transactions.
Sources told that during discussions in a cabinet meeting, chaired by former prime minister Shehbaz Sharif, a member while endorsing the spirit of legislation, observed that there was some confusion in the concept.
It was pointed out that if SIFC was empowered to enter into transactions, it would make it a commercial entity.
C/A deficit pushes rupee further down
The emergence of current account deficit in July, after four consecutive months of surplus, caused further depreciation of Pakistani rupee that reached over three-month low at Rs297.13 against the US dollar in the inter-bank market on Monday.
According to State Bank of Pakistan’s (SBP) data, the rupee depreciated 0.45 percent, or Rs1.35, standing less than Rs2 away from the all-time low of Rs299/$ hit in mid-May.
SMEDA launches credit risk assessment system
The Small and Medium Enterprises Development Authority (SMEDA) has launched an initiative to develop a separate credit risk assessment system for easy disbursement of loans to the manufacturing SMEs in Pakistan. Farhan Aziz Khawaja, CEO SMEDA, in a press statement issued here on Monday, informed that the initiative had been started through a PSDP funded project of SMEDA; “the Research, Regulatory Insight & Advocacy Assistance for SMEs” (RRI&A) under the federal Ministry of Industries & Production (MoIP). CEO SMEDA said that SMEs in Pakistan face significant hurdles in obtaining finance.