Moody’s boosts banking viewpoint
Moody’s Investors Service has upgraded Pakistan banking sector outlook to stable (Caa3) from negative, believing the financial institutions’ solid profitability and stable funding and liquidity provide an adequate buffer to withstand the country’s macroeconomic challenges and political turmoil.
The global rating agency maintained “economic and fiscal pressures are easing (on Pakistan)”, projecting the country’s economy would return to modest growth of 2 percent in the current fiscal year 2023-24 after contrasting 0.3 percent in the prior fiscal year 2022-23.
Besides, the country’s inflation reading is anticipated to reduce to a monthly average of 23 percent in FY24 compared to 29 percent in FY23, it added.
Recovery from the 2022 floods and low base effects will support a modest economic recovery in Pakistan, though challenging external conditions and tight monetary policy will keep growth below potential.
Shehbaz for giving DISCOs to provinces
Prime Minister Shehbaz Sharif on Thursday set up a committee for transferring 10 power distribution companies (DISCOs) to provinces, which was not in line with last month’s decision of the Special Investment Facilitation Council (SIFC) that wanted to hand over those firms to the private sector.
The PM gave the directive to constitute a review committee to consider the proposal of handing over DISCOs to provinces, according to a statement issued by the PM Office after a meeting. Former petroleum minister Dr Musadiq Malik will chair the committee.
However, the SIFC in its last meeting on February 2 had decided that the “privatisation of DISCOs be dropped from the active privatisation list and the framework of private sector participation be finalised and got approved from relevant forums”.
Days after the SIFC decision, the Cabinet Committee on Privatisation (CCOP) also decided to initially give two DISCOs under concession agreements on a long-term lease of 20 to 25 years to the private sector.
PKR breaks 5-day losing streak
Pakistani currency on Thursday appreciated Rs0.07 to Rs279.28 against the US dollar in the inter-bank market, ending a five-day losing streak, though the central bank reported that its foreign currency reserves had shrunk to $7.89 billion.
On the other hand, gold hit a new six-month high at Rs228,150 per tola (11.66 grams) in a rally fuelled by the record high reached in the global metals market for the second consecutive day.
According to State Bank of Pakistan’s (SBP) data, the rupee ticked up to Rs279.28 against the greenback compared to Wednesday’s close at Rs279.35/$.
Taking cue from the inter-bank market, the currency gained Rs0.26 to Rs281.74/$ in the open market.
Fertiliser sector urges uniform gas tariff
The Discriminatory Gas Tariffs for fertiliser plants have caused a disparity in fertiliser prices, creating opportunities for middlemen to profit by Rs80 to Rs100 billion. Currently, Fauji Fertiliser Company (FFC) Bin Qasim costs Rs5,389 per sack, Engro Fertiliser is priced at Rs4,649, and Fuji Fertiliser stands at Rs3,767 per sack.
Engro Fertiliser, Chief Financial Officer, Ali Rathore stressed the government’s need to abolish the unequal gas prices among fertiliser plants to encourage new investments and ensure farmers have access to fertiliser. He noted that removing the gas subsidy is a necessary step, particularly for fertiliser manufacturers who constitute 60 percent of the industry’s capacity and operate under Sui Northern Gas Company (SNGC) and Sui Southern Gas Company (SSGC).
Nisab fixed at Rs135,179
The Ministry of Poverty Alleviation and Social Safety has notified Rs135,179 as the Nisab of zakat – the minimum amount in bank accounts on which zakat will be deducted on the eve of first Ramazan, which will fall either on March 12 or 13, depending on the sighting of the moon.
Banks will deduct 2.5 percent of the total amount in their accounts as zakat. No deduction will be made at source in case the amount stands less than Rs135,179, according to a notification of the ministry posted on the State Bank of Pakistan’s (SBP) website on Thursday.
The Nisab is higher by 31 percent, or Rs32,020, this year as compared to Rs103,159 last year, it has been learnt.
Pakistan inks host of agreements at tech event
Leading Pakistani companies have signed multiple deals and partnership agreements with their global counterparts at the premier tech event, LEAP 2024, hosted by Riyadh, Saudi Arabia.
The third edition of the LEAP conference and exhibition, a beacon for cutting-edge technology, artificial intelligence (AI) initiatives and innovations, was being held from March 4 to 7. It boasted a gathering of over 1,800 local and international exhibitors, approximately 1,000 technical experts and 600 startups.
Among the standout achievements, Pakistan’s leading enterprise resource planning (ERP) company secured a transformative equity partnership with Saudi and Pakistani investors at the TechdestiNation Pakistan pavilion, a collaborative effort of Pakistan Software Export Board (PSEB) and the Trade Development Authority of Pakistan (TDAP).
Director general customs for streamlining processes
Director General (DG) Customs Valuation Karachi, Mirza Mubashir Baig, has said that Customs is addressing issues holistically, employing technology adoption as the primary tool to resolve grievances and complaints of the business community in a fair and transparent manner.
He mentioned that the department aims to reduce the review time gradually from 30 days and solicited the cooperation of traders to achieve this goal.
Regarding letters from the federal tax ombudsman (FTO), he noted that comments are required within one to two weeks, with 45 days allotted for resolution. He assured that all correspondence from the esteemed office of FTO receives prompt and careful consideration.