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Govt plans to launch $2bn bonds in upcoming budget

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  • Govt plans to generate over $22bn through foreign loans in budget.
  • It failed to launch bonds in outgoing year because of poor credit rating.
  • It plans to increase salaries and pensions of govt employees.

ISLAMABAD: The government plans to generate $2 billion through the launching of Eurobonds in the upcoming budget for 2023-24. 

The budget makers are finding numbers crunching hard for the upcoming budget on account of dollar inflows through foreign loans at a time when the International Monetary Fund (IMF) programme has not been revived.

However, the government plans to generate over $22 billion through foreign loans in the upcoming budget, and numbers crunching is still underway with expectations that Islamabad will be able to generate $2 billion through the launching of Eurobonds in the next fiscal. 

The government had planned to launch international bonds in the outgoing fiscal year as well but failed to do so mainly because of the non-revival of the IMF programme, poor credit rating and increased bond rates and risks.

The government has also proposed an income levy on all kinds of assets and increasing withholding taxes on cash withdrawals and registration of motor vehicles in the upcoming budget for 2023-24. 

The government also plans to increase salaries and pensions of government employees from grade 1 to 16 and also for employees from 17 to 22 in the range of 30% and 20%, respectively. 

The pension bill would be more than the salary bill of the federal government. The total budget outlay has been envisaged over Rs14.2 trillion for the upcoming budget whereby the Federal Board of Revenue’s (FBR) tax collection is fixed at Rs9.2 to Rs9.5 trillion and the non-tax revenue target at Rs2.5 trillion. 

In order to achieve a primary balance of 0.1% of GDP, the provinces are expected to generate a 1% revenue surplus in order to achieve the primary balance into a slightly positive range in the next budget. The debt servicing is going to consume a major chunk of Rs7.5 trillion in the next budget.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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