Amid whopping fiscal losses faced by Pakistan so far escalating to $14 billion after outbreak of deadly coronavirus, Pakistan’s fiscal deficit is projected to be in the range of 8 to 17 percent of GDP in the upcoming fiscal year depending upon the duration of lockdown period. The tax collection by the Federal Board of Revenue (FBR) slumped by over 31% to Rs227 billion in May due to partial suspension of economic activities, resulting into missing the downward revised target. The country’s services trade deficit plunged by 33 percent during the first ten months of this fiscal year (FY20), supported by contraction in imports.
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Pak fiscal deficit to be in range of 8 to 17pc of GDP
Amid whopping fiscal losses faced by Pakistan so far escalating to $14 billion after outbreak of deadly coronavirus, Pakistan’s fiscal deficit is projected to be in the range of 8 to 17 percent of GDP in the upcoming fiscal year depending upon the duration of lockdown period.
FBR collection falls 31% in May
The tax collection by the Federal Board of Revenue (FBR) slumped by over 31% to Rs227 billion in May due to partial suspension of economic activities, resulting into missing the downward revised target.
July-April services trade deficit plunges 33pc YoY
The country’s services trade deficit plunged by 33 percent during the first ten months of this fiscal year (FY20), supported by contraction in imports.
Pakistan seeks $15b loans in FY21
Pakistan plans to seek $15 billion gross foreign loans in the next fiscal year aimed at servicing its maturing external public debt and building official foreign exchange reserves in the absence of non-debt creating inflows.
£4.39m UK aid likely to fight virus
The United Kingdom has announced assistance worth 4.39 million pounds for Pakistan to stop the spread of coronavirus and mitigate its impact, by providing aid to the most vulnerable and boosting wider public health communications, the British High Commission in Islamabad announced on Friday.
Pakistan’s growth prospects bank on IMF-backed reforms: ADB
Asian Development Bank (ADB) has ascribed Pakistan’s growth prospects with ongoing IMF-backed reforms aimed at fiscal consolidation and development initiatives to uphold economic stability.
Pak, WB to sign disaster resilience, ecosystem restoration pact
The World Bank has agreed to join hands with Pakistan to support the latter’s disaster resilience and ecosystem restoration initiatives through more reliable and timely weather forecasting, improved disaster risk management services as well as help tackle growing environmental challenges.
Rs200bn disbursement criteria approved by ECC
The Economic Coordination Committee (ECC) of the Cabinet has approved criteria for disbursement of Rs200 billion in power sector and decided that energy purchase price inclusive of the GST would be paid for peak season of June-August 2020 and capacity payment would be disbursed to meet the debt servicing needs and taxation requirements from June to end August.
ECC defers decision on circular debt
The government on Friday put off decision on retiring Rs200 billion worth of circular debt after it found some fault in the disbursement mechanism that, according to Finance Adviser Dr Abdul Hafeez Shaikh, lacked transparency.
Pakistan studies Turkish model for power firms
Pakistan government is studying a Turkish model for privatising power distribution companies (DISCOs), under which private sector will be engaged without selling state assets.
OGRA proposes Rs7.06 per litre cut in petrol price
The Oil and Gas Regulatory Authority (Ogra) has proposed a reduction of Rs7.06 per litre in the price of petrol for June 2020 in line with the dip in global crude oil prices due to virus-fuelled lockdowns.
In a first, ship with fertiliser for Afghanistan berths at Gwadar Port
A ship carrying 16,400 tonnes of DAP fertiliser for Afghanistan anchored at the Gwadar Port on Friday
Wapda awards Rs156.226m consultancy contract for Murunj Dam
In a major development for harnessing scarce water resources in Southern Punjab, Wapda awarded the consultancy contract worth Rs156.226 million to a joint venture headed by Nespak for feasibility study, detailed engineering design, preparation of tender documents and PC-I of Murunj Dam project.
FBR to release Rs10bln income tax refunds
The finance ministry has released Rs10 billion for the payment of stuck up income tax refunds as part of government’s efforts to shore up lockdown-affected taxpayers, officials said on Saturday.
Sindh declares emergency
The Sindh Agriculture department has declared emergency and cancelled vacations due to the forecast of heavy rainfall in the province, a statement said on Friday.
Pakistan to float $1.5b Eurobonds
Pakistan has planned to raise $1.5 billion by floating Eurobonds in the next fiscal year after the decision to give preference to hot foreign money over $3 billion worth of bonds in the outgoing fiscal year proved costly.
Pakistan’s inflow of remittances under threat
The crude market crisis for the six-member Gulf Cooperation Council (GCC), coupled with the coronavirus outbreak, has caused a two-faceted problem for Pakistan, which has already been struggling to spur economic growth and curtail runaway expenditures.
Hong Kong surges more than 3%; China’s May factory activity expands
Stocks in Asia Pacific were higher in Monday morning trade as a Chinese data release over the weekend showed the country’s factory activity expanding in May.
Oil prices slip as wary traders eye upcoming OPEC+ meeting
Oil prices fell nearly 1% on Monday as traders hedged bets with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Gold rises as U.S. riots, Hong Kong tensions lift safe-haven appeal
Gold prices climbed on Monday as reports of riots in the United States rattled investors already reeling from the deepening China-U.S. rift, fanning concerns of a fresh economic setback and drove traders towards the safe-haven metal.