Day: February 2, 2022

The trade deficit narrowed by 30.1 percent on a month-on-month basis from $4.816 billion in December 2021 to $3.362 billion in January 2022, according to the PBS [Pakistan Bureau of Statistics] data.

The country’s exports declined by 7.8 percent on a month-on-month basis and remained $2.546 billion in January 2022 compared to $2.764 billion in December 2021.

According to the data, imports declined by 22 percent on a month-on-month basis and remained $5.908 billion in January 2022 compared to $7.580 billion in December 2021.

As per the PBS monthly summary of the foreign trade statistics for January 2022, the trade deficit widened by 91.9 percent during the first seven months (July-January) of the current fiscal year 2021-22 and reached $28.800 billion compared to $15.002 billion during the same period of 2020-21.

Commenting on the trade numbers, economic analyst, A. A. H. Soomro, told ProPakistani,

[There is a] significant U-turn in the trade deficit. [It is] heading toward normalcy and sustainable growth now. SBP’s actions and PKR depreciation [are] acting as automated stabilizer; [steps are needed] before it could get out of control. Nonetheless, commodity prices are stubborn, and oil does have an upside risk. Don’t unfasten the seat belt yet. It seems to be out of danger zone for now; the PKR should stabilize.

The country’s exports increased by 23.9 percent and remained $17.671 billion in the first seven months of the current fiscal year 2021-22 compared to $14.255 billion during the same period of 2020-21.

The imports increased by 58.8 percent during the first seven months (July-January) of the current fiscal year and stood at $46.47 billion compared to $29.257 billion during the same period of the corresponding year, stated the PBS.

According to PBS, the country’s trade deficit widened by 26.4 percent on a year-on-year basis jumping from $2.658 billion in January 2021 to $3.362 billion in January 2022.

The imports registered an increase of 23 percent on a year-on-year basis and jumped from $4.803 billion in January 2021 to $5.908 billion in January 2022. The exports registered an 18.6 percent growth on a year-on-year basis and increased from $2.145 billion in January 2021 to $2.546 billion in January 2022.

Source: Pro Pakistani

The inconsistent tax regime and opening of foreign currency accounts are two major policy hurdles in promoting exports of the information technology sector said Federal Secretary for Ministry of Information Technology and Telecommunication Dr Muhammad Sohail Rajput.

The National Assembly Standing Committee on Information Technology and Telecommunication which met with Ali Khan Jadoon in the chair on Wednesday raised the matter that freelancers are facing serious problems in opening foreign currency accounts. He said that even politicians face immense difficulty in opening such accounts.

The secretary admitted that fact while saying that there are two major policy challenges including the inconsistent tax regime and opening foreign currency accounts, which hurt the IT and Telecom sector. He said that due to these challenges huge business is being lost. Bringing capital into and out of the country is also major a obstacle, he added.

The committee recommended calling the State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) officials in the meeting to discuss the matter and find some solutions.

The committee members raised questions about how India’s IT market is flourishing and how these challenges are being handled. The secretary said that India is twenty years ahead of Pakistan in this field, however, the country has the potential to catch up. India built a cyber-city, technology parks, and free tax zones for such purposes.

The secretary informed the committee that during the severe COVID-19 wave in India, most of the orders were missed and converted to Pakistan which resulted in IT sector exports growing by 47 percent from $1.4 billion in 2019-20 to $2.1 billion in 2020-21.

The committee recommended that there is a need for steps to dispel the fear and confusion over opening foreign currency accounts.

Source: Pro Pakistani

Minister for Railways Senator Azam Khan Swati has said that Main Line-1 (ML-1) project is the backbone for the country’s economy. He said this while giving a detailed briefing to the National Assembly Standing Committee on Railways.

The meeting of the Standing Committee on Railways was held today under the Chairmanship of MNA Mr. Muhammad Moeen Wattoo in Islamabad to discuss the issues of the railways ministry.

Briefing the committee, the minister informed that the PSDP for the year 2022-23 approved projects of Rs. 46.2 billion with ongoing projects of Rs. 37.750 billion and Rs. 18.450 billion for new projects. He said that currently, Rs. 10 billion have been allocated for the development of the ML-1 project under the China-Pakistan Economic Corridor (CPEC).

He said a second line would be built and constructed with a budget of $11 billion, and soon a financing agreement would be finalized with the Chinese and other multi-donor funds. He also requested the committee to utilize their role in the completion of the ML-1 project and sought the help of the committee in the execution of PSDP projects of the railways and ML-1 project.

The committee showed its reservation about non-implementation of its recommendation regarding vacation of railways land through negotiation, perusing the court cases vigorously and through anti-encroachment campaigns. The members expressed their concern that delay in implementation of recommendations would result in financial losses to the Railways.

Divisional Superintendent Pakistan Railways, Lahore, informed the committee the condition of the railway tracks in his jurisdiction was laid many years ago and the regular maintenance is continued throughout the years from the maintenance funds. He further, informed that the condition of the track would be improved up to the mark after the execution of the ML-I project.

Regarding the incident of Tezgam Express, Pakistan Railways promised to provide compensation to the victims who were left out due to a shortage of legal documents. The representative further added that their case will be processed again through the insurance company and will be resolved within February 2022, as stated by the Federal Minister for Railways. However, Railways is unable to provide any compensation from its own funds as the summary was not approved by the Prime Minister of Pakistan.

Minister for Railways assured the committee that he had taken many steps in the light of the recommendations of the committee and improvement in the railways would be seen soon.

Besides the Minister for Railways, the meeting was attended by MNAs Bashir Khan, Sheikh Rashid Shafique, Tahir Iqbal, Aftab Jehangir, Nusrat Wahid, Engr. Sabir Hussain Kaim Khani, Ali Pervaiz, Muhammad Khan Daha, Pir Syed Fazal Ali Shah Jillani, Ramesh Lal, and MNA/Mover Asma Qadeer, whereas MNA Amjad Ali Khan attended the meeting virtually. The senior officers of the Ministry of Railways were also present in the meeting.

Source: Pro Pakistani

Federal Minister for Privatization Mohammed Mian Soomro has asked for the urgent resolution of issues related to K-E, Pakistan Reinsurance Company Limited (PRCL), issuance of NoC to Pakistan Steel Mills Corporation (PSMC) by Sui Southern Gas Company Limited (SSGCL), and receivables of NPPMCL.

Mohammad Mian Soomro was briefed about the current status of Heavy Electrical Complex (HEC), National Power Parks Management Company Limited (NPPMCL), Pak Reinsurance Company Limited (PRCL), distribution companies (DISCOs), Pakistan Steel Mills (PSM), House Building Finance Company Limited (HBFCL) and others during a meeting chaired by the minister.

The meeting discussed the matter of the issuance of National Security Clearance (NSC) for the transfer of K-Electric’s (K-E) shares to Shanghai Electric (SEP). The matter, currently, is held up, awaiting the conclusion of the Power Purchase Agreement (PPA) between K-E and the Power Division.

It was briefed in the meeting that the process for the debt-recapitalization has been initiated, and banks are in the process of forming a consortium for the purpose of lending to replace the government’s excess equity. Regarding the privatization of HBFCL through the sale of up to 100 percent shares along with the management control, Federal Minister was briefed that local and international investors/financial institutions are showing interest in HBFCL. Furthermore, the VDR for the due diligence of pre-qualified parties for the revival of PSMC will be opened soon.

The Minister was also apprised about the Federal Cabinet’s decision regarding Guddu and Nandipur power plants that the Cabinet Committee on Energy (CCOE) will first decide the proposal of Pakistan State Oil (PSO) about these plants and then the privatization process will be processed accordingly.

Source: Pro Pakistani