The weekly inflation during week-ended April 9 against March 26-April 2, 2020 on Week-on-Week (WoW) basis witnessed a reduction of 0.44 percent for combine income group from 125.52 points to 124.97 points, the Pakistan Bureau of Statistic (PBS) revealed. Workers’ remittances increased six percent to $16.9 billion in the first nine months of the current fiscal year of 2019/20, the central bank’s data showed on Friday. The State Bank of Pakistan (SBP) said workers’ remittances rose $960.7 million from $16 billion in the corresponding period a year earlier. Pakistan may fall into a recession – for the first time in 68 years – due to the severe impact of the deadly pandemic, economy expected to be shrinking up to 2.2% and a painful decline in per capita income, reveals a new report of the World Bank.
Market View: The KSE100 Index gained 195.91 points during trading yesterday, closing the day at 32,033.21 points. Recovery in international crude oil prices may provide support to the index during trading today. However, World Bank’s statement regarding a possible recession hitting the country could subdue gains.
Brent oil (USD/bbl): 32.79 (+4.16% D/D)
Crude oil (USD/bbl): 23.84 (+4.75% D/D)
Gold (USD/oz): 1,729.00 (-1.3578% D/D)
Inflation declines 0.44pc in WoW
The weekly inflation during week-ended April 9 against March 26-April 2, 2020 on Week-on-Week (WoW) basis witnessed a reduction of 0.44 percent for combine income group from 125.52 points to 124.97 points, the Pakistan Bureau of Statistic (PBS) revealed.
Businesses offered scheme by SBP to avert layoffs
The State Bank of Pakistan (SBP) has introduced a temporary refinance scheme to incentivize businesses to not lay off their workers during COVID-19 Pandemic. This scheme is expected to ease cash flow constraints of the employers for timely payment of the wages and salaries to their workers and employees and thereby avoid layoffs in the face of economic challenges posed by the spread of COVID-19.
Industry gives lukewarm response to State Bank pay roll retention scheme
The trade and industry bodies have extended conditional support to the recently announced temporary financing scheme aimed at saving thousands of jobs, asking for further cut in the interest rate.
Remittances increase to $16.9bln in July-March
Workers’ remittances increased six percent to $16.9 billion in the first nine months of the current fiscal year of 2019/20, the central bank’s data showed on Friday. The State Bank of Pakistan (SBP) said workers’ remittances rose $960.7 million from $16 billion in the corresponding period a year earlier.
Car sales fall 47% during July-March FY20
The situation deteriorated further for the already struggling automobile sector as car sales fell 47% in the first nine months of the current fiscal year amid a nationwide lockdown in the wake of COVID-19.
Tyre manufacturers demand exemption from lockdown
Tyre manufactures reiterated a demand of traders and industries of exemption from coronavirus-induced lockdown as they are integral part of agriculture supply chain, an industry official said on Saturday.
Pakistan may fall into a recession due to COVID-19: World Bank
Pakistan may fall into a recession – for the first time in 68 years – due to the severe impact of the deadly pandemic, economy expected to be shrinking up to 2.2% and a painful decline in per capita income, reveals a new report of the World Bank.
WB working on repurposing $2bn to help combat Covid-19
The World Bank is working on repurpose of up to $2 billion, to make available to support Pakistan’s recovery initiatives of the pandemic through building on safety net programme, supporting employment through public works programme and micro-enterprises, and addressing the looming food security issue.
Focus on early disbursement of RFI: Sanchez
The focus of both International Monetary Fund (IMF) and government of Pakistan is on early disbursement of Rapid Financing Instrument (RFI) to deal swiftly with the emerging challenges on account of coronavirus (COVID-19), however, commitments to the Extended Fund Facility (EFF) programme remain intact.
Bank deposits soar to record high in past six months
The deposits at commercial banks have continued to grow notably in the past six successive months. They soared almost 12.5% in the last one-year to record high at Rs15.12 trillion in March apparently due to high government borrowing and sluggish spending by businesses in the melting down economy.
Implementation of incentives for construction industry: Govt mulling promulgating law
The federal government is planning to promulgate a Tax Laws (Amendment) Ordinance, 2020 to implement the tax incentives package for the construction industry including immunity from disclosing the source of investment made in future projects to be executed by the developers and the builders.
APTMA urges govt to rethink anti-layoffs strategy
Terming the recently announced industry supporting package insufficient , All Pakistan Textile Mills Association (APTMA) has urged the government to rethink its entire scheme meant to avoid layoffs at this difficult time.
Faster System fails to disburse refunds within 72 hours: TMA
Towel Manufacturers Association (TMA) has said that the newly introduced Faster System has become totally failure to disburse refunds within 72 hours as promised by the government.
Purchasing power parity: Package amount less than the money doled out previously: ex-FinMin
The government relief package of Rs 144 billion in the form of emergency cash assistance to 12 million families is less in real terms as opposed to Rs 120 billion disbursed by the previous administration in 2018-19, if rupee depreciation is taken into account, stated a former Finance Minister on condition of anonymity.
IPPs preparing themselves for hard times ahead?
The Independent Power Producers (IPPs) are said to be preparing themselves to face a hard time ahead fearing the government will use all tools available to it to recover over Rs 100 billion from them under the garb of much-awaited inquiry report prepared by a nine-member committee, including a representative of ISI.
PSO seeks over Rs100bn to ‘avoid default’Pakistan State Oil (PSO) has sent an SOS to the government, seeking over Rs 100 billion to avoid default on international obligations, official sources told Business Recorder.
Byco resumes productionByco Petroleum Pakistan Limited (BPPL) on Friday said it has resumed production on improved demand of products in the local market.
Energy sector circular debt touches Rs2trnThe country’s energy sector circular debt has touched whopping level of Rs 2 trillion as failures are witnessed starting from generation, transmission distribution and recovery.
FBR starts budget preparation process
Given no apparent end in sight in the growing number of coronavirus cases across Pakistan, in an unprecedented move the Federal Board of Revenue (FBR) has started budget preparation exercise by seeking tax proposals from the chief commissioners and collectors of Customs through video conferencing with the direction to timely finalise proposals keeping in view the current tax/economic practice in vogue.
PSDP: Rs470.8bn released against budgeted Rs701bn
The federal government has released Rs470.8 billion (67.2 per cent) including Rs95.84 billion foreign aid (74.7 per cent) for various ongoing and new development projects under the Public-Sector Development Programme (PSDP) 2019-2020 against the total budgeted allocation of Rs701 billion.
Steel melting industry expresses its surprise over issuance of SRO
Steel melting industry has expressed surprise over issuance of S.R.O. 295(I)/2020 by the Federal Board of Revenue (FBR) during the ongoing lockdown without any input of the industry, seeking additional information of electricity consumption in the monthly sales tax returns.
UN report calls for debt payments suspension
The Financing for Sustainable Development Report 2020 (FSDR 2020) calls for preventing a debt crisis by immediately suspending debt payments from least-developed countries and other low-income countries that request forbearance.
Economists upbeat on virus recovery
The coronavirus pandemic has hit like a worldwide hurricane, shutting activity in most economies simultaneously, but some forecasters are more optimistic about the prospects for recovery once the worst has passed.
Industrialists reject proposed Sindh Covid-19 relief ordinance
While rejecting the proposed Sindh Covid-19 Emergency Relief Ordinance, the Site Association of Industry (SAI) on Saturday urged Chief Minister Murad Ali Shah to take industrial community into confidence before finalising it.
PM calls for global initiative on debt relief
Prime Minister Imran Khan on Sunday appealed for a “Global Initiative on Debt Relief” saying that Covid-19 pandemic has posed unprecedented health and economic challenges.
Japan stocks surge 2% as hopes rise on slowing coronavirus spread
Stocks in Asia jumped in Tuesday morning trade on rising hopes as the spread of the global coronavirus pandemic appeared to slow.
Oil gains as hopes rise for production cut amid coronavirus outbreak
Oil rose on Tuesday amid hopes that the world’s biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy, even as analysts cautioned the cuts may do little to boost demand.