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GDP progress estimated at 5.97pc for FY 2021-22



Pakistan has estimated the Gross Home Product (GDP) progress within the vary of roughly 6 p.c for the present fiscal yr with the most important contributions of business and companies sectors.

Not like the IMF projection of a 4 p.c GDP progress charge for Pakistan, the Pakistan Muslim League Nawaz led authorities has estimated a 5.97 p.c provisional GDP progress charge for the yr 2021-22.

The one hundred and fifth assembly of the Nationwide Accounts Committee to overview the ultimate, revised and provisional estimates of GDP for the years 2019-20, 2020-21 and 2021-22 respectively was held on Wednesday beneath the chair of Secretary, MoPD&SI.

The provisional GDP progress charge for the yr 2021-22 is estimated at 5.97% as broad-based progress was witnessed in all sectors of the economic system.

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The expansion of agricultural, industrial and companies sectors is 4.40%, 7.19% and 6.19% respectively. Equally, the expansion of vital crops throughout this yr is 7.24%.

The expansion in manufacturing of vital crops particularly Cotton, Rice, Sugarcane and Maize are estimated at 17.9%, 10.7%, 9.4% and 19.0% respectively.

The cotton crop elevated from 7.1 million bales reported final yr to eight.3 million bales; Rice manufacturing elevated from 8.4 million tons to 9.3 million tons; Sugarcane manufacturing elevated from 81.0 million tons to 88.7 million tons; Maize manufacturing elevated from 8.4 million tons to 10.6 million tons respectively, entire Wheat manufacturing decreased from 27.5 million tons to 26.4 million tons. Different crops confirmed progress of 5.44% primarily due to a rise within the manufacturing of pulses, greens, fodder, oilseeds and fruits. The livestock sector is exhibiting a progress of three.26%. The expansion of forestry is 3.13% and fishing is at 0.35%.

The general industrial sector reveals a rise of seven.19%. The mining and quarrying sector has decreased by 4.47% attributable to a decline within the manufacturing of different minerals in addition to a decline in exploration prices. The Massive Scale Manufacturing business is pushed primarily by QIM information (from July 2021 to March 2022) which reveals a rise of 10.4%. Main contributors to this progress are Meals (11.67%), Tobacco (16.7%), Textile (3.19%), Sporting Attire (33.95%), Wooden Merchandise (157.5%), Chemical compounds (7.79%), Iron & Metal Merchandise (16.55%), Vehicles (54.10%), Furnishings (301.83%) and different manufacturing (37.83%). The electrical energy, fuel and water business reveals a progress of seven.86% primarily attributable to a rise in subsidies in 2021-22. The worth-added within the development business, primarily pushed by construction-related expenditures by industries, has registered a modest progress of three.14% primarily attributable to a rise usually authorities spending.

The companies sector reveals a progress of 6.19%. The wholesale and Retail Commerce business grew by 10.04%. It’s depending on the output of agriculture, manufacturing and imports. The expansion in commerce value-added regarding agriculture, manufacturing and imports stands at 3.99%, 9.82% and 19.93% respectively. Transportation & Storage business has elevated by 5.42% attributable to a rise in gross worth addition of railways (41.85%), air transport (26.56%), highway transport (4.99%) and storage. Lodging and meals companies actions have elevated by 4.07%. Equally, Data and communication elevated by 11.9% attributable to enhancements in telecommunication, pc programming, consultancy and associated actions.

The finance and insurance coverage business reveals an general enhance of 4.93% primarily attributable to a rise in deposits and loans. Actual property actions grew by 3.7% whereas public administration and social safety (basic authorities) actions posted damaging progress of 1.23% attributable to excessive deflators. Training has witnessed a progress of 8.65% attributable to public sector expenditure. Human well being and social work actions additionally elevated by 2.25% attributable to basic authorities expenditures. The provisional progress in different non-public companies is 3.76%.

General, the GDP of the nation at present market costs has reached Rs.66.949 trillion in 2021-22 which has resulted in a rise in per capita revenue from Rs.268,223 in 2020-21 to Rs.314,353 in 2021-22 apart from the quantity of the economic system in {dollars} in 2021-22 stands at $383 billion.

In line with particulars, the assembly additionally up to date the provisional GDP estimates for the yr 2020-21 and revised GDP estimates for the yr 2019-20 introduced within the 104th assembly of the NAC held in January 2022 on the idea of the most recent out there information.

The ultimate progress charge of GDP for the yr 2019-20 has been estimated at -0.94% which was -1.0% within the revised estimates. The revised progress charge of GDP for the yr 2020-21 is 5.74% which was provisionally estimated at 5.57%.

The crop sub-sector has improved from 5.92% to five.96%. The opposite crops have improved from provisional progress of 8.08% to eight.27% in revised estimates. The expansion of the commercial sector within the revised estimates is 7.81% which was 7.79% within the provisional estimates whereas the expansion of the companies sector has improved from 5.7% to six.0%.

Controversy about Chief Economist’s resignation:

Earlier on Wednesday, it emerged that Chief Economist Planning fee Dr Ahmad Zubair resigned from the place owing to exerting stress from the excessive ups of planning and finance ministries on GDP numbers.

Sources on the situation of anonymity mentioned that the Minister for planning and the minister of State for finance Ayesha Ghous Pasha have requested the related individuals within the planning fee to sit down with the principal financial advisor Finance ministry on progress numbers with contending that GDP progress can be round 4% within the present fiscal yr.

When the official of the planning fee acknowledged that they’d made a presentation to the earlier minister for planning that as per the statistics of manufacturing information of assorted sectors signifies that GDP progress can be round 5.5 to six p.c upon this minister of state for finance mentioned that there was a shortfall within the projected projection of wheat crop. The official replied that even with this shortfall of 0.1 million metric tons, the manufacturing of sugarcane, rice and cotton in addition to tomatoes was significantly larger.

Officers additional acknowledged that it could not be potential to indicate much less progress on the idea of knowledge out there to all of the stakeholders due to this fact such an effort would have an effect on the compromise of PBS information.

Afterward, a letter issued by Ahmad Zubair acknowledged that there’s information trending on social and digital media that I resigned from the place of Chief Economist, planning Fee on account of manipulation makes an attempt regarding FY22 GDP progress estimates. I want to state that PBS has the mandate to estimate Nationwide accounts and that the M/PD&SI has no position in issues associated to estimating GDP progress.

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NEPRA decides to get better Rs 3/unit from industrial shoppers of KE in two months



ISLAMABAD: Nationwide Electrical Energy Regulatory Authority (NEPRA) on Wednesday issued a revised choice and introduced the restoration of Rs 3 per unit from the commercial shoppers of Okay-Electrical in two months.

In line with NEPRA choice, the Authority, pursuant to the Judgment of the Supreme Court docket of Pakistan dated 19th January, 2023, issued its choice within the matter on 31st October, 2023. The choice was intimated to the Federal Authorities for notification in mild of Part 31 of NEPRA Act. Nevertheless, subsequently, the ministry of power (MoE) vide letter dated 10.11.2023, submitted that the Authority determined immediate case on the request of Okay-Electrical to regulate the tariff for the interval July 2019 to December 2019. In view thereof, the MoE requested that management/ implementation interval could also be clarified within the topic choice, mentioned NEPRA choice.

As per NEPRA choice, the Authority considers that the tariff adjustment interval includes of six months i.e. July 2019 to December 2019, and restoration of the identical has already been delayed. Subsequently, it will be acceptable to implement the identical in a interval of two (02) months. Accordingly, the implementation interval shall be two (02) months from the date of notification of the mentioned choice, mentioned NEPRA decison.

NEPRA has forwarded the moment choice to the Federal Authorities for notification in mild of Part 31 of NEPRA Act, added NEPRA choice.

Earlier, the federal authorities introduced the commercial aid package deal for July-December 2019 and the package deal was relevant for peak hours and off-peak hours. Nevertheless, the federal government ended the concession for off-peak hours on 22 January 2020.

After the federal government’s choice, Okay-Electrical began to gather the subsidy quantity, whereas the subsidy assortment was stopped when it was challenged within the courtroom, and now NEPRA has issued a revised choice  to get better Rs 3/unit from the commercial shoppers of KE in two months within the mild of the Supreme Court docket’s choice.

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Saudi Arabia extends $3bn lifeline to Pakistan for one more 12 months



Saudi Arabia has prolonged the time period of its $3 billion deposit with the State Financial institution of Pakistan (SBP) for one more 12 months, in a transfer that may assist Pakistan meet its exterior financing wants and help its financial restoration.

The SBP introduced on Wednesday that the Saudi Fund for Growth (SFD) had renewed the deposit settlement, which was on account of mature on December 5, 2023, for one more 12 months.

The deposit was first made in 2021 and rolled over in 2022 as an indication of the shut relationship between the 2 brotherly international locations.

The extension of the deposit time period is anticipated to ease the strain on Pakistan’s overseas trade reserves, which have been declining on account of debt repayments and decrease inflows from abroad traders.

Pakistan’s total overseas trade reserves stood at $12.302 billion as of November 17, of which $7.180 billion had been held by the SBP and $5.122 billion by the business banks8.

The nation faces a difficult exterior financing scenario, because it has to repay about $5 billion in exterior debt within the remaining months of the present fiscal 12 months.

The $3 billion rollover can also be seen as a constructive growth for the continued IMF programme, which requires Pakistan to safe financing commitments from its lenders and pleasant international locations.

The IMF’s government board is prone to approve the second mortgage tranche of $700 million for Pakistan in early December, after the completion of the primary evaluation of the $3 billion stand-by association.

Pakistan can also be anticipating to obtain about $1.2 billion in financing from the World Financial institution, Asian Growth Financial institution, and Asian Infrastructure Funding Financial institution earlier than the top of the 12 months. The federal government can also be hopeful of getting extra inflows from different pleasant nations to help the nation’s economic system.

Pakistan’s economic system has been combating low progress, excessive inflation, and forex depreciation in recent times. The nation was on the verge of default final 12 months, however averted it with the assistance of the IMF bailout and the help from Saudi Arabia and different allies. Nevertheless, the IMF programme has additionally imposed strict circumstances on Pakistan, resembling growing gasoline, power, and petrol costs, which have added to the woes of the frequent folks.


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Pakistan secures multi-billion greenback funding from Kuwait amid financial woes



Pakistan and Kuwait signed quite a few memorandums of understanding (MoUs) because the struggling South Asian nation seeks multi-billion greenback funding from the Gulf state.

The signing got here as caretaker Prime Minister Anwaar-ul-Haq Kakar visited the Gulf state on a two-day go to, the place leaders from each side agreed to bolster bilateral and financial ties, days after Islamabad signed a number of MoUs with the UAE to draw funding price billions.

A press release from the PM’s Workplace talked about that the interim premier and Kuwait’s First Deputy Prime Minister and Minister for Inside Sheikh Talal Al-Khaled Al-Ahmad Al Sabah underlined the significance of historic brotherly ties between the 2 international locations.

Throughout a gathering, they reaffirmed the will to strengthen the fraternal ties by reworking them right into a mutually rewarding financial partnership. Chief of Military Workers Basic Asim Munir was additionally current in the course of the assembly.

The leaders additionally witnessed the signing of seven agreements concluded to draw multi-billion {dollars} in funding from Kuwait in varied sectors of Pakistan — together with meals safety, agriculture, hydel energy, water provides, the institution of mining fund to assist mineral business, know-how zones growth, and mangrove preservation.

As well as, three MoUs within the fields of tradition and artwork, surroundings, and sustainable growth have been additionally signed. The leaders expressed nice satisfaction on the trajectory of relations, agreed to stay in shut contact, and take swift steps in additional strengthening and deepening Pakistan-Kuwait relations.

The prime minister termed these agreements with Kuwait one other milestone within the achievements that the Particular Funding Facilitation Council (SIFC) platform was bringing to the nation.

Pakistan’s financial system is in dire straits with its overseas reserves depleting rapidly amid much less inflows from abroad buyers.  Based on a report by BMI Analysis, a Fitch Options firm, the Pakistani rupee (PKR) is anticipated to proceed its downward spiral and attain a historic low of 350 per greenback by the tip of 2024.

The nation was getting ready to default final yr, however it was averted after the Worldwide Financial Fund (IMF) authorised a short-term bailout with strict circumstances — pushing the inflation up as Pakistan underwent a number of structural reforms, which noticed a rise in gasoline, power, and petrol costs.

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