Pakistan and Ethiopia accept on measures to forge stronger ties
Pakistan and Ethiopia have agreed on Thursday to strengthen bilateral relations and explore new collaborations in trade, finance, education, and economic reforms, recognising the mutual benefits these initiatives could bring.
According to a press release issued by the Finance Ministry, the Ambassador of the Federal Democratic Republic of Ethiopia to Pakistan, Jemal Beker Abdula, met with Minister for Finance and Revenue Senator Muhammad Aurangzeb.
The FM warmly welcomed Ambassador Abdula and provided an overview of the economic reforms currently underway in Pakistan as part of a broader home-grown agenda aimed at achieving economic stability.
For July CPI inflation clocks in at 11.1pc
Pakistan’s consumer price index (CPI) in July rose 11.1 percent Year-on-Year (YoY), data from the Pakistan Bureau of Statistics (PBS) showed on Thursday.
The CPI measures household inflation and includes statistics about price change for categories of household expenditure.
“General CPI inflation increased to 11.1pc on year-on-year basis in July 2024 as compared to an increase of 12.6pc in the previous month and 28.3pc in July 2023,” the PBS report said.
The inflation rate was 2.1pc on a month-on-month (MoM) basis, PBS noted, while, rural inflation was noted at 8.1pc and urban inflation was at 13.2pc.
Topline Securities, a brokerage firm in Karachi, said in a note that the data was “in line with our expectations”, while a Bloomberg estimate was 10.6pc.
FBR exceeds target of Pkr656bn
The Federal Board of Revenue (FBR) has started the new fiscal year on a strong note, exceeding its first-month target of Rs656 billion despite the daunting challenge of collecting due taxes from traders who paid only Rs1,500 income tax under the new scheme in the first month.
Against the Rs656 billion monthly target, the FBR pooled Rs659.5 billion, achieving a growth rate of just under 22 percent. To reach the gigantic annual tax target of nearly Rs13 trillion, the FBR needs to post a 40 percent growth rate this fiscal year.
According to an FBR press statement, the agency has successfully achieved the revenue target for the first month of the current fiscal year. This promising start for financial year 2024-25 highlights the outstanding effort to meet the monthly tax target despite the country’s economic challenges, it added.
| Components Of Industry Fy 2024 In Pakistan | |||
|---|---|---|---|
| Details | Share in Industry | Share in GDP | Growth Rate (%) |
| Industrial Activities | 18.22 | 1.21 | |
| 1. Mining and Quarrying | 9.13 | 1.66 | 4.85 |
| 2. Manufacturing | 65.25 | 11.89 | 2.42 |
| i) Large Scale | 45.24 | 8.24 | 0.07 |
| ii) Small Scale | 12.65 | 2.30 | 9.08 |
| iii) Slaughtering | 7.37 | 1.34 | 6.63 |
| 3 Electricity, Gas and Water supply | 12.61 | 2.30 | -10.55 |
| 4. Construction | 13.01 | 2.37 | 5.86 |
| Source: Pakistan Bureau of Statistics | |||
In fy2024-25 Pakistan to repay $24.8bn
Pakistan’s central bank announced on Wednesday that the country will repay a total of $24.8 billion in foreign debt and interest payments for the fiscal year 2024-25. This figure is moderately lower than the previous projection of $26.2 billion, representing a 5 percent decrease ($1.4 billion). The downward adjustment suggests that the country may find it more manageable to meet its financial obligations than initially anticipated earlier in the week.
According to the latest update from the State Bank of Pakistan (SBP), the country will repay $21.2 billion in principal debt and an additional $3.6 billion in interest payments, totalling $24.8 billion for the year. On Monday, the central bank had estimated repayments at $26.2 billion, including $4 billion in interest. The bank did not provide an explanation for the reduction in the forecast.
Borrowing can’t fix Pakistan’s economy: Aurangzeb
Finance Minister Muhammad Aurangzeb has stated that the country’s economic condition cannot be improved by relying on foreign loans.
Speaking at the inauguration ceremony of the SECP Head Office building in Islamabad, Aurangzeb emphasised the need for immediate reforms in the energy sector to ensure that the ongoing IMF programme is the last.
Aurangzeb highlighted the importance of implementing reforms while remaining within the IMF programme and adhering to privatisation policies.
He stressed that Pakistan cannot enhance its economic situation by depending on external borrowing.
The finance minister also pointed out the need to reduce reliance on banks and foreign borrowing.
Minister of IT dismisses claims of censorship via firewall
Minister of State for IT Shaza Fatima Khawaja has dismissed claims that firewalls were being used to control social media content as mere speculation.
Condemning ‘unnecessary controversies’ being stirred up, Ms Khawaja said that all social media platforms remain open in Pakistan.
Speaking to journalists at Parliament House on Wednesday, she stressed that ‘X’, like other social media platforms, must comply with Pakistani laws.
However, she clarified that if the government intended to impose censorship, it would have blocked platforms like TikTok and Facebook instead of X.
Asif to consult businessmen on IPPs
As the citizens grapple with exorbitant electricity bills, a high-level business delegation will meet President Asif Ali Zardari on Thursday to discuss concerns of the business community over independent power producers’ (IPPs) excessive capacity charges and their far-reaching impact on the economy and the general public.
The delegation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), headed by Chairman of Economic Policy and Business Development Think Tank Gohar Ejaz, will brief the president on IPPs’ capacity charges. He will be accompanied by 45 presidents of different chambers of commerce and industries.
The FPCCI has already announced challenging the agreements with IPPs in the Supreme Court.