When the recovery does begin, the Fed's main nemesis -- inflation -- is likely to flare up in areas that bounce back first, like hotels, restaurants and air travel. This included federal expenditure of about Rs 6.016 trillion and provincial expenditure of Rs 2.516 trillion. On the equity front, Sazgar Engineering Works Limited submitted a progress report in respect of utilization of proceeds of Right Issue of Rs. The initial rollout of Covid-19 vaccines has raised hopes companies will be able to open for business and shoppers will open their wallets, improving the economy's prospects. Minister for Science Technology Fawad Chaudhry on Friday hoped that the government will soon finalize the mechanism for the successful implementation of 'EV Policy for 4-Wheelers' in the country to boost the economy, reduce pollution levels and generate employment in the transport sector. (Reuters/File) Pakistan’s budget deficit rose to the highest in almost three decades, ahead of the International Monetary Fund’s first quarterly review of a bailout program that sought to curtail a fiscal blowout.. In terms of Rupees, the country’s total budget deficit in FY20 clocked in at Rs 3.376 trillion, whereas, in FY19 it stood at Rs 3.444 trillion. January 24, 2021: With a new year and a new administration in the White House, the US central bank nonetheless faces an unprecedented challenge in guiding the post-pandemic economic recovery. According to sources, the fiscal deficit was actually 8.1pc in June 2020 as compared to the revised estimates of 9.1pc published in the budget. The statement emphasized that the benefits of Sukuk include lower financing cost for the government; provision of Shariah-compliant investment avenues; fulfilment of the constitutional requirement of eradication of Riba; and promotion of the Islamic financial industry. "I think they've set their course pretty clearly," Stephanie Aaronson, a vice president at the Brookings Institution and former Fed research economist, told AFP. In fiscal year 2019-20, the coalition government of Pakistan Tehreek-i-Insaf (PTI), according to a report, posted fiscal deficit of Rs. By. Copyright © 2021. Earlier, the government had estimated that Pakistan's fiscal deficit will reach at around 9.1% of GDP in FY20, against the original budget proposal of 7.1%, on the basis of Rs 1.24 trillion Covid-19 relief package announced by the government. Pakistan recorded a Government Budget deficit equal to 5.80 percent of the country's Gross Domestic Product in 2019. source: State Bank of Pakistan. Mark-up payments during the year were increased to Rs2.619 trillion or 6.3 percent of GDP, compared to Rs 2.109 trillion or 5.4 percent of GDP in FY19. Other Federal government assets such as the Islamabad Expressway, Allama Iqbal International Airport and F-9 Park have been identified, in consultation with experts in Islamic finance, as good potential candidates for Sukuk structures. The International Monetary Fund and the Fitch Ratings had also projected deficit at 9.2 percent and 9.5 percent respectively mainly because of a major revenue shortfall due to the economic fallout from pandemic and additional expenditure arising out of Covid-19 relief package. Ltd. (HNMPL) through its After-Sales Department entered into an agreement on January 18, 2021, for the Sale, Supply & Branding of ZIC Brand Lubricants to all the Authorized / Designated Dealers of HNMPL. Business shutdowns imposed to contain the spread of the virus caused immediate, massive job losses in 2020, and at the end of the year, four million people had been unemployed for six months or more, comprising 37 percent of total unemployment. But the historic nature of the job losses during the pandemic -- more than 10 million US workers remain unemployed -- coupled with the likelihood inflation in some sectors could spike once the recovery takes hold, will test the Federal Reserve's limited toolkit. In Pakistan, the GDP growth rate was remain 6. "They can see the whites of inflation's eyes before they need to be necessarily thinking about really changing policy" under the new framework, Sinclair said. Private sector borrowing from banks went up by over 65 per cent in December 2020, latest data issued by the State Bank (SBP) shows. Malaysia known to be as a global leader in Sukuk market, it said, adding other important issuers were Saudi Arabia, UAE, Qatar, Oman, Jordan, Turkey, Morrocco and Indonesia. -. Business, Economic & Financial news by 'Pakistan Today'. The expectation for more government aid under the Biden administration -- which has proposed a massive $1.9 trillion rescue package -- will give the central bankers hope for a more solid rebound and improved hiring, Aaronson said. Pakistan's fiscal deficit has increased to 8.9 percent of the Gross Domestic Product (GDP) in the fiscal year that ended in June, marking a three-decade Operating from offices in Karachi, Lahore, and Islamabad, the company provides comprehensive information on the Forex, Money Markets, Central bank, Economic indicators, Equities, Commodities and mutual fund market. Fiscal Policy Statement 2017-18 Debt Policy Coordination Office Ministry of Finance Government of Pakistan On Wednesday, Adviser to Prime Minister for Commerce and Investment, Abdul Razak Dawood informed that the Temporary Economic Refinance Facility (TERF) providing long-term concessionary refinance at 5% for manufacturers and exporters has shown excellent results. The statement added that the Sukuk market was growing rapidly around the world. It said that the government of Pakistan has issued Sukuk several times, which were backed by assets such Motorways (M1, M2, M3) and Jinnah International Airport. August 12, 2020 (MLN): Pakistan’s fiscal deficit in FY20 stood at 8.1 percent of the GDP, compared to the deficit of 8.9 percent of GDP in FY19. In addition, Samin Textiles Limited received a notice of Public announcement of intention from potential Acquirer i.e. Our forecast is informed by our expectations for expenditure to far outstrip the amount forecast in the budget, particularly in the terms of defence and social spending. "I would be surprised if that really changed throughout the spring.". 5% in 1980s, 4.6%, in 1990s and in 2000s it was increase to 5%. Meanwhile, the Executive Committee of the National Economic Council (ECNEC) approved the largest health care project ever done by the federal government worth Rs. As the only registered business news agency in Pakistan we take pride in the speed and accuracy of our news. Also, the Board of Directors of Cherat Cement Company Limited, in its meeting held on January 18, 2021, decided to undertake BMR for Cement Line 1 and install the main Crusher. And that means that their job is incredibly challenging," George Washington University economist Tara Sinclair said in an interview. The Executive Committee of the National Economic Council (ECNEC) Thursday, In a major achievement towards ensuring ease of doing business, Pakistan has improved 31 positions, from 142nd to 111. January 24, 2021 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy. Here’s one way, Provincial subjects and their discontents, TikTok overpowers Google and Facebook with worldwide app downloads, Karachi-based Bazaar Technologies secures $6.5m in seed funding to digitise mom-and-pop…, ‘Pakistan to launch its own WhatsApp-like app by June’, Signal, Telegram see demand spike as new WhatsApp terms stir debate, Free WiFi facility remains functional, to be expanded to all Punjab…, Govt urged to reverse electricity price hike, Govt announces Rs1.95 per unit hike in power tariff, LESCO assures textile industry of uninterrupted supply, Packages Ltd awards $1.5m media account to Brainchild Communications Pakistan, SBP introduces Non-Resident Pakistani Rupee Value Accounts, TPB to rationalise textile sector tariffs, LHC requested to ban TikTok, Bigo over indecent content, Boeing’s fleet to fly on 100pc biofuel by 2030. December 25, 2020. December 25, 2020 (MLN): Pakistan’s fiscal deficit during July-October, FY2021 stood at 1.7% of GDP (Rs 753 billion) against 1.4% of GDP (Rs 564 billion) in the comparable period of last year. In addition, he also informed that Government approved Rs. One thing Federal Reserve Chair Jerome Powell is unlikely to face from President Joe Biden is the barrage of Twitter attacks he was subject to, sometimes daily, under former president Donald Trump. "Sukuk are not only issued to support the Government’s budgetary position, but also to promote Islamic banking finance in the country, which is a constitutional obligation," said Finance Ministry in a statement. Ltd, US Fed holds first policy meeting of Biden administration, Provision of inexpensive houses to poor top priority: PM, Eurozone inflation rises to 1.3% in December. In terms of Rupees, the country’s total budget deficit in FY20 clocked in at Rs 3.376 trillion, whereas, in FY19 it stood at Rs 3.444 trillion. Reporters: Meiryum Ali I Ariba Shahid I Babar Khan Javed I Taimoor Hassan l Hassan Naqvi l Shahab Omer l Ghulam Abbass l Ahmad Ahmadani l Shehzad Paracha l Aziz Buneri I The Fed's preferred inflation measure, the PCE price index, is running at just over one percent as of November. These challenges could be discussed when the Fed's policy-setting Federal Open Market Committee (FOMC) opens its first two-day policy meeting of the year on Tuesday. Pakistan’s fiscal deficit for the 2018-’19 financial year reached a record level of 8.9% of the Gross Domestic Product, Dawn reported on Wednesday. January 24, 2021 (MLN): The weekly economic roundup summarizes the country's key economic and financial data for the week from various sectors to keep an eye on next week's trends. The deficit was recorded at 4.1pc in the last quarter of 2019-20, whereas it remained at 4pc from July to March FY20. Prime Minister’s Adviser on Finance Abdul Hafeez Sheikh tweeted two different charts to show performance of the government in finance sector. On the upside, in a major achievement towards ensuring ease of doing business, Pakistan improved 31 positions, from 142nd to 111th, on the rank of Trading Across Border Index. Editors: Zaman Khan I Abdullah Niazi I Mariam Zermina I Watch out our video to understand why Pakistan currently facing Fiscal deficit Problem & the connection between Fiscal Deficit & Economic growth. Low saving: The people of Pakistan … This encompassed total development expenditure of Rs 1.090 trillion of which provinces utilized about Rs 622 billion, federal utilized Rs 467.74 billion on development schemes and Rs 65.5 billion were spent on Other development expenditures. Shell Pakistan Limited, in response to an inquiry letter sent by PSX, clarified that the MoU signed with K-Electric to explore the possibility of electric charging stations, initially at three locations in Karachi, is only preliminary and nothing concrete has been finalized as of the date hereof. We at Fitch Solutions have revised our forecast for Pakistan’s fiscal deficit to 10.8% of GDP in FY2019/20 (July-June) from 7.5% previously, and up from 9.0% in FY2018/19. That is a radical shift from the past, when central bankers would raise rates early to head off inflation. All Rights Reserved. On the other hand, non-tax revenue arrived at Rs1.524 trillion. Fiscal Expenditure in Pakistan increased to 8345.60 PKR Billion in 2019 from 7488.40 PKR Billion in 2018. Much of the rise in the deficit came in the April-June 2020 quarter. The federal government has also given more than Rs900 billion in grants against the budget estimate of Rs830 billion. Notify me of follow-up comments by email. The data also revealed that the primary deficit which is other than debt servicing clocked in at Rs 757 billion or 1.8 percent of GDP. An extended lockdown will significantly curtain domestic consumption, which poses risks to economic growth and may widen the fiscal deficit. Defense spending, though increasing in absolute terms, remained unchanged at 3 percent of GDP when compared with last year. After slashing the benchmark lending rate to zero early in the coronavirus crisis, and massively increasing bond purchases to pump cash into the economy, the FOMC has signaled will not change policy in the near future. Pakistan’s loan from the IMF could be in jeopardy if the trend of the government missing revenue target continues. Pakistan’s fiscal deficit shrunk to 8.1pc of Gross Domestic Product (GDP) during the fiscal year 2019-20. The PTI economic team had set a 7.1pc fiscal deficit target for FY20. According to a spokesperson of Sui Southern Gas... LAHORE: Engro Fertilizers Daharki plant has been declared the global winner of the DuPont Safety Innovation Award 2020. Fiscal deficit: The average fiscal deficit in 1990s was 7% of GDP. The revenue from taxes stood at Rs4.747 trillion. Sources said that the government had paid Rs740 billion in interest payment from April to June 2020. The estimates say the economy will contract 1.5% for financial year 2020 against a rise of 3.29% in 2019. During FY20, the current expenditure of the government came in at Rs 8.532 trillion. 1.864 trillion mark in absolute terms, it is the highest in four years of the PML-N government and also in the Pakistan’s 70-year history.. The central bank pledged to allow inflation to exceed its two percent goal for a time to ensure the unemployment rate drops from its 6.7 percent level at the end of 2020. This also included corona expenditures and if these expenditures were omitted, the deficit would have been 7.3pc of the GDP, they added. Analysts expect Pakistan’s fiscal deficit to clock in at around 8.0-8.5 percent of GDP in FY2021 compared with 8.1 percent of GDP in FY20. Till the close of 2019, Sukuk worth USD 1,247 billion have been issued globally. The current account deficit shrank to 1.1% of gross domestic product (GDP) in FY20 compared to 4.8% ($13.43 billion) in FY19, the State Bank of Pakistan (SBP) reported on Tuesday. Pakistan fiscal deficit to hit 9.5pc of GDP: Fitch Ratings It forecast deficits of 9.5pc in the outgoing fiscal year 2019-20 and 8.2pc in FY21 pushing the public debt-to-GDP ratio up to 89pc of GDP. The deficit of $2.96 … White House spokeswoman Jen Psaki last week said Biden "clearly has a great deal of respect and value for the Federal Reserve and role they play.". 213 million for Duty Drawback of Local Taxes and Levies (DLTL) payments of the non-textile sector. Increase in exports last month to understand why Pakistan currently facing fiscal shrunk... 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