Connect with us

Business

Pakistan’s pace of economic growth to slow down to 4% in FY22: ADB

Published

on

  • ADB, however, says growth is expected to accelerate to 4.5% in FY23.
  • “Pakistan’s economy is recovering steadily due to well-coordinated fiscal and monetary responses to the pandemic,” ADB country director says.
  • Manilla-based institute notes that in FY22, industrial growth is forecast to decelerate.

ISLAMABAD: Following a remarkable economic rebound in the previous fiscal year 2020-21, the Asian Development Bank (ADB) projected Pakistan’s economic growth to slow down to 4% in the ongoing fiscal year 2021-22 amid tighter fiscal and monetary policies before picking up again in the fiscal year 2022-23.

According to the Asian Development Outlook (ADO), 2022 — ADB’s annual flagship economic publication — Pakistan’s gross domestic product (GDP) growth is projected to slow to 4% in FY22 from 5.6% in FY21 as the government applies measures to reduce the current account deficit, raise international reserves, and cut inflation.

“Growth is expected to accelerate to 4.5% in FY23 due to stronger private consumption and investment,” the Manilla-based institution projected.

Commenting on the forecast, ADB Country Director for Pakistan Yong Ye said: “Pakistan’s economy is recovering steadily thanks to well-coordinated fiscal and monetary responses to the pandemic.”

“These led to a remarkable expansion in the industry and services sectors. It is key to continue structural reforms along with appropriate fiscal and monetary policies to contain rising inflation and external imbalances. Comprehensive reforms in tax policy and administration are also critical to boosting revenues in order to fund essential public services. ADB is fully committed to supporting Pakistan’s sustainable development.”

The ADB further noted that in FY22, industrial growth is forecast to decelerate, reflecting fiscal and monetary tightening together with significant depreciation of the local currency, and upward adjustments to domestic oil and electricity prices.

Meanwhile, agriculture is expected to continue lending impetus to GDP growth supported by the government’s package of subsidised inputs and increased support prices of wheat and sugarcane.

The Manilla-based institution further added that inflation declined to 8.9% in FY21 but is expected to pick up in FY22 to around 11% due to higher international energy prices, significant currency depreciation, and elevated global food prices from supply disruptions.

As a net importer of oil and gas, Pakistan will continue experiencing strong inflationary pressures for the remainder of FY22 from the jump in global fuel prices resulting from the Russian invasion of Ukraine.

“Inflationary pressures are likely to be less pronounced in FY23, with inflation forecast to drop to 8.5% as fiscal consolidation progresses and oil and commodity prices stabilize,” the report mentioned.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

on

By

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Continue Reading

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

on

By

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Continue Reading

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

on

By

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.

Continue Reading

Trending