Business

11-month economic slump ends, as exports increase in Sept

Published

1 year ago

Farwa

4.2% increase was recorded in Sept this year.
In Sept last year, exports stood at $2.437 billion.
Imports fell sharply by 25.3% to $3.95 billion.

ISLAMABAD: The Pakistan Bureau of Statistics (PBS) reported an increase in exports by 1.15% to $2.465 billion in September 2023, for the first time in 11 months, overturning a lengthy slump attributed to the country’s dwindling economy.

According to PBS data reported by The News, the exports stood at $2.437 billion in the same month last year. The growth, it added, was modest but significant, as it happened in the wake of 11 consecutive months of year-on-year reductions ranging from 3.25% to 26.2%.

As the exports rose by 4.2% over those in August 2023 which stood at $2.366 billion, the turnaround was apparent on a monthly basis, the PBS mentioned in its report.

The shift was seen last month in August when the pace of decline slowed to single-digit from earlier sharp declines seen since October last year. Notably, year-on-year in October 2022, exports reduced by 3.25%, November 17.6%, December 16.3%, January 14.15%, February 22.7%, March 14.6%, April 26.2%, May 16.2%, June 19.1%, July 8.09%, August 4.7%, but now in September it increased by 1.15%.

The imports fell sharply by 25.3% to $3.95 billion in September 2023 from a year ago, mainly due to lower oil prices, reduced demand for machinery and raw materials, and tight import controls by the government to curb the trade deficit.

On a monthly basis, imports dropped by 12.7% from $4.5 billion in August 2023. As a result, the trade deficit narrowed by 47.9% to $1.49 billion in September 2023 from $2.86 billion in September 2022. In August 2023, the deficit was $2.16 billion.

In the first quarter of the current fiscal year (July-September 2023-24), exports fell by 3.8% to $6.9 billion, while its imports declined by 25.4% to $12.2 billion, compared with the same period of the previous fiscal year. The trade deficit shrank by 42.15% to $5.29 billion in the first quarter of FY24 from $9.16 billion in the first quarter of FY23.

In FY23, Pakistan’s trade deficit fell by 43% to $27.55 billion from $48.35 billion in FY22, as total exports dipped by 12.7% to $27.7 billion and imports contracted by 31% to $55.3 billion.

The data also showed that the trade deficit in services widened by 174% to $463 million in July-August 2023-24 from $169 million in July-August 2022-23 due to higher demand for foreign services as the economy reopened.

From July to August 2023-24, Pakistan spent $1.6 billion on the services it hired from abroad and offered its services of $1.14 billion. Similarly, in the same period last year, exports were $1.1 billion and imports of $1.28 billion. During these two months, exports increased by 2% while imports up by 24.7%. In August, services exports were valued at $600 million, while imports amounted to $789 million, resulting in a deficit of $189 million.

In July 2023, exports were at $535 million, imports at $809 million, and the deficit at $274 million. During the month under review, services exports increased by 12.14%, and imports decreased by 2.45% compared to the previous month. Comparing August 2023’services trade performance to the same month of the previous year, exports were up by 2.34%, and imports also increased by 9.1%.

Business

FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

Published

17 hours ago

Farwa

The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

Business

Bilal Bin Saqib designated as main advisor to the Pakistan Crypto Council

Published

17 hours ago

Farwa

The government has designated Bilal Bin Saqib MBE as the Chief Adviser to the Finance Minister on the Pakistan Crypto Council to reinforce Pakistan’s dedication to technological advancement while implementing effective policy measures that bolster the national economy, facilitate digital transformation, and ensure a secure, transparent financial system for all.

A press release from the finance ministry on Wednesday states that Bilal Bin Saqib, acknowledged by Forbes, is a Web3 investor, strategic advisor, and thought leader in the blockchain sector.

Saqib was featured in Forbes’ 30 Under 30 list and has received recognition from King Charles III, the late Queen Elizabeth II, and the Mayor of London for his contributions to the community.

He received the 1632nd Points of Light Award, conferred by the British Prime Minister to acknowledge change-makers in the nation. He was awarded the MBE (Member of the British Empire) in 2023 for his contributions to the National Health Service in the UK.

In this pivotal role as the Chief Adviser to the Finance Minister on the Pakistan Crypto Council, Saqib will lend his great knowledge and experience to Pakistan’s efforts to integrate cryptocurrency and blockchain technologies into its financial ecosystem while ensuring the development of a robust regulatory framework for digital assets in alignment with global best practices.

Furthermore, he will counsel the Finance Ministry on investigating the application of artificial intelligence (AI) to improve governmental efficiency, refine decision-making processes, and foster innovation in public sector operations.

Saqib’s nomination signifies a pivotal advancement in Pakistan’s dedication to harnessing the revolutionary capabilities of digital currencies, safeguarding financial security, alleviating risks, and accurately evaluating the influence of cryptocurrencies on the nation’s economy.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb endorsed the appointment of Bilal Bin Saqib, emphasizing the significant impact his extensive expertise and innovative vision are expected to have on shaping Pakistan’s stance in the swiftly advancing digital economy.

Business

Cooking oil prices climb with the onset of Ramadan.

Published

18 hours ago

Farwa

Edible oils, such as cooking and mustard oils, experienced a significant price increase, with the price of open edible oil escalating from Rs480 to Rs500 per litre.

A local merchant reported, “Mustard oil has risen in price by Rs20 per litre, now costing Rs520.”

Different brands of cooking oil were noted to be priced variably in Karachi’s markets, indicative of the prevailing inflationary trend in food products.

The escalation in edible oil prices corresponded with the surging costs of fruits, prompting consumer apprehension around heightened expenditures during Ramadan.