Pakistan stands nowhere on the global indexing of productivity, unless we double the productivity in one year through efficiency and effectiveness. Ghulam Murtaza The 23rd March is the day when the seed of Pakistan was cultivated by adopting a resolution in 1940 for a separate country for the Muslims of this part. The founder of Pakistan visioned a thriving and independent new state free from corruption and bigotry, where the rule of law would prevail. But Unfortunately, we got directionless right from the beginning, and resultantly condensed shadows of insolvency overtook us like dodder plants. This is not only financial bankruptcy, but we have also been in moral bankruptcy, which is more than all. Should a country with countless...
May 29, 2023 at 10:31 am | Economic Affairs
Moving from Strength to Strength The relationship between the countries is on an upward trend, which it is expected to further strengthen and deepen in the years to come. Dr Mohammad Faisal Pakistan and Germany enjoy extremely cordial relations since the 1950s. The year 2021 marked the 70 years of establishment of bilateral relations with Germany with a number of commemorative activities, including issuance of a special stamp and coin, undertaken by both sides. The relationship has been moving from strength to strength. Pakistan and Germany remain actively engaged in the areas of politics, economy, defence and education and culture, that further strengthen the bilateral relationship. Pakistan-Germany bilateral relations are gov...
May 29, 2023 at 10:23 am | Economic Affairs
Pakistan's tax system has been faced with several challenges including low tax-to-GDP ratios, a narrow tax base, and high rates of tax evasion. Syed Ali Ehsan Pakistan's tax-to-GDP ratio was only 10.4% in 2020, which is significantly lower than the average of 15.3% for countries in the South Asian region (World Bank). Economists and policymakers have proposed that a low rate, flat, broad-based, and predictable tax regime can help Pakistan overcome these challenges and achieve greater economic growth and development. The proposals are reflected in the Pakistan Charter of Economy. Low Rates Several reasons support the implementation of a simplified tax system with a low tax rate. First, low tax rates encourage taxpayers to comply...
May 29, 2023 at 10:14 am | Economic Affairs
Ambassador Naghmana A. Hashmi Founded on ideological basis and seen as a leader of the Muslim world, Pakistan came into existence on August 14, 1947, which coincided with the 27th of Ramzan. Pakistan is blessed with an ideal location, a large educated and industrious population, vast natural resources, fertile agriculture with the largest canal network in the world, a fast-growing middle class, good speed of industrialization and capable and strong armed forces. Quaid-e-Azam Muhammad Ali Jinnah, the founding father of Pakistan, had clear expectations for the development of the country, as stated in the Pakistan Resolution passed in Lahore on March 23, 1940. Despite the promising start, Pakistan's economic progress was hindered...
May 29, 2023 at 10:02 am | Economic Affairs
The government-led development program, including PSDP at the Federal level and ADP at the provincial level, is the main contributor to growth episodes M. Ali Kemal Since its inception, Pakistan has experienced several cycles of growth, with stability requiring consistent policies. The country has seen consecutive years of over 5% growth rates, but the irregular percentage segments of growth are often associated with policies that rely on modern capital, resulting in a balance of payments deficit and inflation. The country's economy is highly dependent on imports, but exports remain stagnant, leading to an increase in the trade deficit, which has been financed by remittances for the past decade and a half. The government-led devel...
May 29, 2023 at 9:51 am | Economic Affairs
May, 09(Agencies) — Oil prices fell on Tuesday, relinquishing some of strong gains of the previous two sessions with market stayed cautious ahead of U.S. inflation figures for April, which will be key to Federal Reserve’s next interest rate decision.Brent crude price was down 0.7%, at $76.47 and U.S. West Texas Intermediate (WTI) crude fell 50 cents, or 0.7%, to trade at $72.66 at 0650 GMT. Both contracts had settled up more than 2% in the previous trading session. “Oil prices have rebounded somewhat in the last two sessions, so now is time for a pause … with no real positive data coming out,” said Suvro Sarkar, lead energy analyst at DBS Bank. “The market is cautious today ahead of the inflation data…. With net long position...
May 9, 2023 at 2:50 pm | Economic Affairs
May, 09(E.A Monitors) —Moody’s Investors Service warned that Pakistan could default without an International Monetary Fund (IMF) bailout as the country faces uncertain financing options beyond June, Bloomberg reported Tuesday.“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” Grace Lim, a sovereign analyst with the ratings company in Singapore, was quoted as saying in an emailed response to Bloomberg.“However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF programmer, Pakistan could default given its very weak reserves.”Remarks come as Pakistan remains engaged with the Washington-based lender to resume its bailout programmer that has...
May 9, 2023 at 2:45 pm | Economic Affairs
May, 09(Agencies) — US dollar inched higher on Tuesday on a loans survey, showing U.S. credit conditions less gloomy than expected, while the pound flirted with a one-year peak on expectations that the Bank of England will raise interest rates this week.In Asia, The yuan showed little reaction as trade data released on Tuesday showed that China’s imports dropped 7.9% in April from a year earlier, while exports grew at a slower pace of 8.5% in the same period after an unexpected surge of 14.8% in March.The offshore yuan last traded 0.1% lower at 6.9287 per U.S. dollar. A day earlier, the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS) showed that while credit conditions for U.S. business and households continued...
May 9, 2023 at 2:39 pm | Economic Affairs
May, 09(Agencies) — Asian markets struggled Tuesday as investors focus on release of US inflation data later in week, could play a key role in shaping the Federal Reserve’s interest rate plans.Though, region enjoyed a healthy start of week with plenty of nervousness on trading floors there remains after last week’s upheaval in the US banking sector that hammered financial stocks.Turmoil saw sale of the embattled First Republic Bank to JPMorgan Chase and came just two months after collapse of three other regional banks and the takeover of Credit Suisse by UBS.Still, while a much-anticipated Fed survey of banks showed tighter lending standards in the first few months of the year, which they see lasting through 2023, analysts said the r...
May 9, 2023 at 2:33 pm | Economic Affairs
May, 08(Agencies) — Malaysian palm oil futures extended gains to a fourth consecutive session on Monday, hitting a more than two-week high, as forecasts of a sharper decline in April output triggered supply concerns.The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 66 ringgit, or 1.83%, to 3,667 ringgit ($826.83) a tonne during early trade, hitting its highest since April 20.Malaysia’s palm oil inventories at the end of April are forecast to drop to their lowest level in 11 months as domestic use rises amid flat production, a Reuters survey showed on Friday.April production is seen expanding 0.9% from the month before to a three-month high of 1.3 million tonnes, according to the survey....
May 8, 2023 at 4:34 pm | Economic Affairs
May, 08(Agencies) — Oil rose on Monday on easing U.S. recession fears shifted market focus to tightening supplies, offering support after crude prices registered three straight weekly declines for the first time since November.A healthy U.S. jobs report for April helped oil to climb by about 4% on Friday even though labour market strength could compel the Federal Reserve to keep interest rates higher for longer.Brent crude was up $1.09, or 1.5%, at $76.39 a barrel by 0823 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.03, or 1.4%, to $72.37. “Oil’s rebound follows energy stocks’ comeback on Wall Street last Friday after the U.S. reported strong job data, which eased concerns about an imminent economic recession,” said CM...
May 8, 2023 at 4:29 pm | Economic Affairs
May, 08(Agencies) — UD dollar was catching its breath op opening week after dropping spree last week, with traders turning their focus to U.S. inflation and bank lending data for the week ahead.Sterling, which hovered at $1.2633, just below an 11-month high hit on Friday, was also in traders’ minds ahead of an expected Bank of England rate increase on Thursday.The euro, which has rallied nearly 16% from September lows, was losing a little bit of momentum at $1.1021 and has struggled to break resistance at $1.11.Yen slipped slightly, reflecting Friday’s move higher in U.S. bond yields that followed strong jobs data.The dollar/yen was last 0.2% higher at 135.05.Last week the Federal Reserve and the European Central Bank each raised rat...
May 8, 2023 at 4:20 pm | Economic Affairs
May, 05(E. A Report) ——Pakistan Gold demand modestly improved, registering an increase of 2% to 9.9 tonnes during January-March 2023 against 9.7 tonnes recorded in same period previous year, data compiled by the World Gold Council (WGC) showed on Friday.Demand for the yellow metal registered a decline of 2% as compared to 10.1 tonnes in the previous quarter on a quarterly basis.Development coincides with gold prices in Pakistan having reached record highs, traders said. A tola of gold surged by Rs2,600 to Rs225,300.As per data released by the WGC, global gold demand, excluding over-the-counter (OTC), was 13% lower year-on-year (YoY) basis, at 1,081 tonnes in 1Q23.Inclusive of OTC, total gold demand strengthened 1% YoY to 1,174 tonnes a...
May 5, 2023 at 11:14 pm | Economic Affairs
May, 05(Agencies)—— Pound Sterling jumped to one-year high against dollar on Friday, and to a one-month high against the euro, as traders eyed the Bank of England’s interest rate decision next week.Sterling was up 0.21% at $1.26 on Friday, after reaching $1.263 earlier in the session, the highest since late May last year.The euro was down 0.14% against the pound at 87.49 pence, after earlier falling to 87.42 pence, the lowest since April 6.The pound has received a boost from the US Federal Reserve meeting this week, analysts said, when the central bank raised rates by 25 basis points but signalled that it may stop there.US employment data, out at 1230 GMT on Friday, will provide clues as to the Fed’s likely next move.By contrast, m...
May 5, 2023 at 11:11 pm | Economic Affairs
May, 05(E. A Report)—China-Pakistan Agricultural Corridor (CPAC) project would bring socio-economic development for farmers in Pakistan, says PCJCCIDuring a think tank session held at Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) secretariat, President Moazzam Ghurki stated that the initiative would further pave the way for a new era of collaboration between the two all-weather strategic partners.He said that CPAC was a project of highly significance and would serve as a model for other countries in the region to emulate and reinforce the belief that cooperation and partnership could lead to significant achievements and benefits for all. China pledged to open up its markets for Pakistani agriculture products like rice, f...
May 5, 2023 at 3:29 pm | Economic Affairs
May, 05(Agencies)—Asian currencies ticked up against a weaker dollar on Friday as investor jitters persisted amid fresh turmoil in the U.S. banking sector.U.S. regional banks shares sank overnight on fears of a financial sector crisis. US dollar was last down 0.138% at 101.120.Malaysia's ringgit rose 0.3% on returning from holiday, buoyed by Bank Negara Malaysia's unexpected rate hike on Wednesday and in reaction to the Fed's policy statement signalling that it may pause further interest rate hikes. Most other currencies were slightly up.Stocks in Jakarta .JKSE declined 1.5% even as Indonesia's economy grew faster-than-expected in the first quarter. The country's gross domestic product (GDP) rose 5.03% from a year earlier versus a 4.95% ...
May 5, 2023 at 3:29 pm | Economic Affairs
Pakistan Rupee Exchange Rate