Zeeman
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Even after this increase the price of oil is still lower than 2019 levels.
Pakistan economy related news
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WuraidKhan
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MG Motor UK, Launching Fully Electric SUV in Pakistan
For Details Click on the link Below
www.currentaffairs.com.pk
For Details Click on the link Below
MG Motor UK Launching Electric SUV in Pakistan -
MG Motor UK is Launching Electric SUV in Pakistan. The news came after Javed Afridi (CEO, Haier & Owner Peshawar Zalmi) shared snaps
www.currentaffairs.com.pk
Zeeman
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As usual WB projections are way off and Pakistan is defying expectations.
WB sees 23pc cut in Pakistan’s remittances
but we actually did a lot better.
FY20 remittances soar to record $23bn
KARACHI: Pakistan received record $23 billion in remittances in 2019-20 while the inflows jumped by 51 per cent year-on-year to $2.466bn in June, data released by the State Bank of Pakistan (SBP) showed on Monday.
Despite economic slowdown caused by the Covid-19, the remittances in the last quarter of the fiscal year 2019-20 i.e. March-June increased significantly helping the country get more than expected inflows.
“Workers’ remittances rose by a significant 50.7pc during June to reach record high of $2.466bn compared with $1.636bn in June 2019,” said the SBP press release.
The inflows in the month grew significantly compared to May when the country received around $1.866bn, rising despite the negative outlook due to the impact of coronavirus on the global economy.
“On a cumulative basis, workers’ remittances increased to a historic high level of $23.120bn during FY20, witnessing a growth of 6.4pc over $21.739bn during FY19,” said the SBP.
During June, major chunk of the workers’ remittances were from Saudi Arabia at $619.4 million, USA $452m, UAE $431.7m and UK $401m recording increases of 42pc, 7.1pc, 33.5pc and 40.8pc respectively as compared to May.
Highest remittances during the 12 months ending June 30 were received from Saudi Arabia, rising 6.8pc to $5.432bn against 3pc growth in FY19.
Meanwhile, despite 0.98pc growth, the remittances from UAE were second highest in terms of total inflows reaching $4.662bn in FY20. In FY19, remittances from the UAE grew by 6pc.
The highest growth in remittances was witnessed from the United States as it jumped by 25pc to $4.163bn compared to 16.6pc in FY19.
On the other hand, remittances from the UK increased by 1.5pc to $3.465bn in FY20 compared to 18pc in FY19.
The remittances from the Gulf Cooperation Council countries were up by 2pc to $2.162bn while inflows from Malaysia were down 8pc to $1.426bn in FY20. The growth in remittances from Malaysia was 35pc in FY19.
The SBP said the significant increase in remittances during June can be attributed to a number of factors.
“Since many of the countries eased lockdown in June, overseas Pakistanis were able to transfer accumulative funds, which they were unable to send earlier,” it said. Further, it is also believed that they sent remittances to support extended families and friends due to Covid-19, it added.
Seasonal inflows in the month of Ramazan coupled by zakat and charity funds collectively increased the inflows during the last fiscal year.
In addition to these, the government and the SBP also played their role in increasing inflows during the FY20 in general and Covid-19 period, said the SBP.
Supportive government policies in terms of extension of Reimbursement of TT Charges Scheme (Free Send Remittance Scheme) to small remitters by reducing threshold amount from $200 to $100. In addition, financial institutions also increased the incentives for sending remittances through regular channels.
“Financial institutions were motivated to use effective marketing campaigns with particular focus on digital channels for sending and receiving remittances to promote the use of legal channels,” said the SBP.
Published in Dawn, July 14th, 2020
WB sees 23pc cut in Pakistan’s remittances
but we actually did a lot better.
FY20 remittances soar to record $23bn
KARACHI: Pakistan received record $23 billion in remittances in 2019-20 while the inflows jumped by 51 per cent year-on-year to $2.466bn in June, data released by the State Bank of Pakistan (SBP) showed on Monday.
Despite economic slowdown caused by the Covid-19, the remittances in the last quarter of the fiscal year 2019-20 i.e. March-June increased significantly helping the country get more than expected inflows.
“Workers’ remittances rose by a significant 50.7pc during June to reach record high of $2.466bn compared with $1.636bn in June 2019,” said the SBP press release.
The inflows in the month grew significantly compared to May when the country received around $1.866bn, rising despite the negative outlook due to the impact of coronavirus on the global economy.
“On a cumulative basis, workers’ remittances increased to a historic high level of $23.120bn during FY20, witnessing a growth of 6.4pc over $21.739bn during FY19,” said the SBP.
Policy makers had earlier feared remittances to slump in the last quarter of fiscal year 2020 because of the impact of Covid-19 on the economic activity around the world, but the inflows increased by 7.8pc.
During June, major chunk of the workers’ remittances were from Saudi Arabia at $619.4 million, USA $452m, UAE $431.7m and UK $401m recording increases of 42pc, 7.1pc, 33.5pc and 40.8pc respectively as compared to May.
Highest remittances during the 12 months ending June 30 were received from Saudi Arabia, rising 6.8pc to $5.432bn against 3pc growth in FY19.
Meanwhile, despite 0.98pc growth, the remittances from UAE were second highest in terms of total inflows reaching $4.662bn in FY20. In FY19, remittances from the UAE grew by 6pc.
The highest growth in remittances was witnessed from the United States as it jumped by 25pc to $4.163bn compared to 16.6pc in FY19.
On the other hand, remittances from the UK increased by 1.5pc to $3.465bn in FY20 compared to 18pc in FY19.
The remittances from the Gulf Cooperation Council countries were up by 2pc to $2.162bn while inflows from Malaysia were down 8pc to $1.426bn in FY20. The growth in remittances from Malaysia was 35pc in FY19.
The SBP said the significant increase in remittances during June can be attributed to a number of factors.
“Since many of the countries eased lockdown in June, overseas Pakistanis were able to transfer accumulative funds, which they were unable to send earlier,” it said. Further, it is also believed that they sent remittances to support extended families and friends due to Covid-19, it added.
Seasonal inflows in the month of Ramazan coupled by zakat and charity funds collectively increased the inflows during the last fiscal year.
In addition to these, the government and the SBP also played their role in increasing inflows during the FY20 in general and Covid-19 period, said the SBP.
Supportive government policies in terms of extension of Reimbursement of TT Charges Scheme (Free Send Remittance Scheme) to small remitters by reducing threshold amount from $200 to $100. In addition, financial institutions also increased the incentives for sending remittances through regular channels.
“Financial institutions were motivated to use effective marketing campaigns with particular focus on digital channels for sending and receiving remittances to promote the use of legal channels,” said the SBP.
Published in Dawn, July 14th, 2020
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SC dismisses SHC stay order, allows government to take action against sugar mills
ISLAMABAD: The Supreme Court on Tuesday dismissed the stay order issued by the Sindh High Court and allowed the federal government to take action against sugar mills accused of raising the price of sugar to make illegal profits.
The apex court in its order stated that the government should take action according to the law and directed it not to take any unnecessary action against the sugar mill owners.
The top court also directed the Islamabad and Sindh High Courts to pass a verdict on the plea filed by the sugar mills within three weeks. The court also barred the government officials from making statements on the sugar commission report.
Earlier this month, the Supreme Court had dismissed the federal government’s plea to stop the implementation on the recommendations of the Sugar Inquiry Committee (SIC).
The apex court’s three-member bench under Chief Justice Gulzar Ahmed dismissed the plea while hearing the case today on the plea filed against the Sindh High Court’s decision which had stopped the government from taking action against sugar mill owners held responsible for the sugar price hike earlier this year.
Last month, the interior ministry had approached the apex court to challenge the SHC's decision barring the federal government from taking action on the recommendations of the Sugar Inquiry Commission report.
The SHC had suspended the operation on the Sugar Inquiry Commission report to the extent of as many as 20 sugar mills owners in Sindh.
The interim order came on the petition of Mirpurkhas Sugar Mills and others, which sought quashing of the Sugar Commission Inquiry report.
The sugar inquiry commission report which came out as a bombshell has been already rejected by the main opposition party PML-N. Meanwhile, the government has repeated multiple times that it will hold everyone accused of benefiting from the scandal accountable.
'Damning revelations in Sugar Inquiry Commission's report'
The Sugar Inquiry Commission report had laid bare some startling revelations about how the price of sugar is fixed, how exports of the commodity are faked to avail rebates on sales taxes, and how billions of rupees are overcharged by sugar mills owners.
According to sources, the report mentioned in depth how the amount of sugar exported to Afghanistan is routinely inflated to show as if 75 tonnes of the commodity were being exported per truck.
However, this is barely possible, given that the maximum capacity of a truck, even when overloaded, does not exceed 30 tonnes.
The scam also seemingly has another purpose: laundering money. If sugar is being exported to Afghanistan, the payment should also be coming in from the same country.
However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers for payments for sugar sold to Afghanistan from the US and Dubai, therefore seemingly whitening money and earning dollars at the same time.
Another important finding highlighted in the report is that sugar mills paid an estimated Rs22bn in taxes to the Government of Pakistan, but out of that total amount, Rs12bn was reclaimed in rebates. Hence, the net contribution was close to around Rs10bn.
ISLAMABAD: The Supreme Court on Tuesday dismissed the stay order issued by the Sindh High Court and allowed the federal government to take action against sugar mills accused of raising the price of sugar to make illegal profits.
The apex court in its order stated that the government should take action according to the law and directed it not to take any unnecessary action against the sugar mill owners.
The top court also directed the Islamabad and Sindh High Courts to pass a verdict on the plea filed by the sugar mills within three weeks. The court also barred the government officials from making statements on the sugar commission report.
Earlier this month, the Supreme Court had dismissed the federal government’s plea to stop the implementation on the recommendations of the Sugar Inquiry Committee (SIC).
The apex court’s three-member bench under Chief Justice Gulzar Ahmed dismissed the plea while hearing the case today on the plea filed against the Sindh High Court’s decision which had stopped the government from taking action against sugar mill owners held responsible for the sugar price hike earlier this year.
Last month, the interior ministry had approached the apex court to challenge the SHC's decision barring the federal government from taking action on the recommendations of the Sugar Inquiry Commission report.
The SHC had suspended the operation on the Sugar Inquiry Commission report to the extent of as many as 20 sugar mills owners in Sindh.
The interim order came on the petition of Mirpurkhas Sugar Mills and others, which sought quashing of the Sugar Commission Inquiry report.
The sugar inquiry commission report which came out as a bombshell has been already rejected by the main opposition party PML-N. Meanwhile, the government has repeated multiple times that it will hold everyone accused of benefiting from the scandal accountable.
'Damning revelations in Sugar Inquiry Commission's report'
The Sugar Inquiry Commission report had laid bare some startling revelations about how the price of sugar is fixed, how exports of the commodity are faked to avail rebates on sales taxes, and how billions of rupees are overcharged by sugar mills owners.
According to sources, the report mentioned in depth how the amount of sugar exported to Afghanistan is routinely inflated to show as if 75 tonnes of the commodity were being exported per truck.
However, this is barely possible, given that the maximum capacity of a truck, even when overloaded, does not exceed 30 tonnes.
The scam also seemingly has another purpose: laundering money. If sugar is being exported to Afghanistan, the payment should also be coming in from the same country.
However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers for payments for sugar sold to Afghanistan from the US and Dubai, therefore seemingly whitening money and earning dollars at the same time.
Another important finding highlighted in the report is that sugar mills paid an estimated Rs22bn in taxes to the Government of Pakistan, but out of that total amount, Rs12bn was reclaimed in rebates. Hence, the net contribution was close to around Rs10bn.
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Some details from the second half of this article:
Supreme Court allows govt to take action against sugar mill owners
The Sugar Inquiry Commission report had laid bare some startling revelations about how the price of sugar is fixed, how exports of the commodity are faked to avail rebates on sales taxes, and how billions of rupees are overcharged by sugar mills owners.
According to sources, the report mentioned in depth how the amount of sugar exported to Afghanistan is routinely inflated to show as if 75 tonnes of the commodity were being exported per truck.
However, this is barely possible, given that the maximum capacity of a truck, even when overloaded, does not exceed 30 tonnes.
The scam also seemingly has another purpose: laundering money. If sugar is being exported to Afghanistan, the payment should also be coming in from the same country.
However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers for payments for sugar sold to Afghanistan from the US and Dubai, therefore seemingly whitening money and earning dollars at the same time.
Another important finding highlighted in the report is that sugar mills paid an estimated Rs22bn in taxes to the Government of Pakistan, but out of that total amount, Rs12bn was reclaimed in rebates. Hence, the net contribution was close to around Rs10bn.
Supreme Court allows govt to take action against sugar mill owners
The Sugar Inquiry Commission report had laid bare some startling revelations about how the price of sugar is fixed, how exports of the commodity are faked to avail rebates on sales taxes, and how billions of rupees are overcharged by sugar mills owners.
According to sources, the report mentioned in depth how the amount of sugar exported to Afghanistan is routinely inflated to show as if 75 tonnes of the commodity were being exported per truck.
However, this is barely possible, given that the maximum capacity of a truck, even when overloaded, does not exceed 30 tonnes.
The scam also seemingly has another purpose: laundering money. If sugar is being exported to Afghanistan, the payment should also be coming in from the same country.
However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers for payments for sugar sold to Afghanistan from the US and Dubai, therefore seemingly whitening money and earning dollars at the same time.
Another important finding highlighted in the report is that sugar mills paid an estimated Rs22bn in taxes to the Government of Pakistan, but out of that total amount, Rs12bn was reclaimed in rebates. Hence, the net contribution was close to around Rs10bn.
Counter-Errorist
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‘NAB recovers over Rs466b since its inception’
ISLAMABAD: The National Accountability Bureau (NAB) Chairman Justice (R) Javed Iqbal Friday said the NAB’s major focus is on corruption and corrupt practices of money laundering, cases of cheating the public at large, willful bank loan defaults, misuse of authority and embezzlement of state funds.
“Since the NAB’s inception, one of NAB’s major achievements has been the recovery of around Rs466.069 billion which is a great achievement as per the annual report of 2019 of NAB,” he said in a statement.
The NAB chairman said starting from the year 2017 which can be called basically a year of reinvigoration of the NAB, the Bureau has moved with new zeal and effort after through introspection and overhaul of procedures and all pillars of the organisation i.e. operations, prosecution, human resource management, training and research and awareness and prevention have been reactivated.
He said the overall complaints in 2019 were 53,643 and 42,760 were processed, whereas complaints in 2018 were 48,591 and 41,414 were processed. “Increase in the number of complaints also reflects enhanced public trust in the NAB,” he said.
He said the NAB during 2019, processed 1,308 complaint verifications, 1,686 inquiries and 609 investigations and recovered Rs141.542 billion from corrupt elements.
The NAB chairman said the present management of NAB has chalked out an effective and proactive anti-corruption strategy which has started been acknowledged by Transparency International (TI) Pakistan, World Economic Forum, Pildat and Mishal Pakistan.
He said the initiatives taken by the present management of NAB started yielding excellent results. “Similarly, Gilani and Gallop recent survey indicated that 59 percent people of Pakistan have full faith upon NAB which is ample evidence of NAB’s across the board accountability,” he said.
Justice (R) Javed Iqbal said due to the NAB’s proactive anti-corruption strategy, overall conviction ratio is about 68.8 percent. He said that NAB has geared up and rejuvenated to eradicate corruption within all its forms and manifestations.
He said that NAB has introduced a new concept of Combine Investigation Team (CIT) in order to benefit from the experience and collective wisdom of senior supervisory officers, a system of CIT consisting of director, additional director, investigation officer and a senior legal counsel has been put in place.
He said Pakistan is committed to United Nations Convention against Corruption (UNCAC) in eradicating corruption through its three pronged anti corruption strategy of awareness, prevention and enforcement which has started yielding excellent results.
‘NAB recovers over Rs466b since its inception’
ISLAMABAD: The National Accountability Bureau (NAB) Chairman Justice (R) Javed Iqbal Friday said the NAB’s major focus is on corruption and corrupt practices of money laundering, cases of cheating the public at large, willful bank loan defaults, misuse of authority and embezzlement of state funds.
“Since the NAB’s inception, one of NAB’s major achievements has been the recovery of around Rs466.069 billion which is a great achievement as per the annual report of 2019 of NAB,” he said in a statement.
The NAB chairman said starting from the year 2017 which can be called basically a year of reinvigoration of the NAB, the Bureau has moved with new zeal and effort after through introspection and overhaul of procedures and all pillars of the organisation i.e. operations, prosecution, human resource management, training and research and awareness and prevention have been reactivated.
He said the overall complaints in 2019 were 53,643 and 42,760 were processed, whereas complaints in 2018 were 48,591 and 41,414 were processed. “Increase in the number of complaints also reflects enhanced public trust in the NAB,” he said.
He said the NAB during 2019, processed 1,308 complaint verifications, 1,686 inquiries and 609 investigations and recovered Rs141.542 billion from corrupt elements.
The NAB chairman said the present management of NAB has chalked out an effective and proactive anti-corruption strategy which has started been acknowledged by Transparency International (TI) Pakistan, World Economic Forum, Pildat and Mishal Pakistan.
He said the initiatives taken by the present management of NAB started yielding excellent results. “Similarly, Gilani and Gallop recent survey indicated that 59 percent people of Pakistan have full faith upon NAB which is ample evidence of NAB’s across the board accountability,” he said.
Justice (R) Javed Iqbal said due to the NAB’s proactive anti-corruption strategy, overall conviction ratio is about 68.8 percent. He said that NAB has geared up and rejuvenated to eradicate corruption within all its forms and manifestations.
He said that NAB has introduced a new concept of Combine Investigation Team (CIT) in order to benefit from the experience and collective wisdom of senior supervisory officers, a system of CIT consisting of director, additional director, investigation officer and a senior legal counsel has been put in place.
He said Pakistan is committed to United Nations Convention against Corruption (UNCAC) in eradicating corruption through its three pronged anti corruption strategy of awareness, prevention and enforcement which has started yielding excellent results.
‘NAB recovers over Rs466b since its inception’
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Pakistan Pharma Among World's Top 3 Fastest Growing
Pakistan pharmaceutical industry and market are among the world's top 3 fastest growing, according to IQVIA health market research firm based in the United States. Pakistan’s domestic pharmaceutical firms sales have grown 13.1% compounded annually in the last 4 years, outperforming multinational companies (MNCs), which saw global growth of 9.34% CAGR. Pakistan's pharma sector is growing faster than in other emerging markets like Bangladesh, Brazil, India, Russia and Vietnam.
Emerging faster than the MNCs, the quarterly revenues of the local Pakistani pharmaceutical companies surged to Rs. 320 billion in the quarter ending March 31, 2020, compared with Rs. 195.75 billion as of March 31, 2016. Similarly, MNCs increased their quarterly sales in Pakistan to Rs. 143.2 billion at the end of the first quarter of 2020, up from Rs. 100.2 billion in Q12016, according to Pakistani media reports. Pakistan exported $217.04 million worth of pharma products during 2019, according to the United Nations COMTRADE database on international trade.
Medicine spending growth in the emerging pharmaceutical ("pharmerging") markets continues to slow compared to the past five years and is projected to grow at 5–8% through 2023, according to US-based global market research firm IQVIA.
Although China, Brazil and India have the largest medicine spending within the pharmerging markets, Turkey, Egypt and Pakistan are forecast to have the greatest growth between 2019 and 2023. Pharmerging market growth continues to derive primarily from increasing per capita use, but some markets are seeing wider uptake of newer medicines as patients’ ability to afford their share of costs improves with economic growth.
Pakistan's top 5 pharma companies, including GSK, Abbott, and AGP Pharma, saw their profits jump 37% in Q1/2020 over the same period last year, to Rs2.6 billion. In the same quarter, profits of 13 consumer giants, including Nestle, Packages, Pakistan Tobacco and Colgate, remained flat amid COVID19 pandemic.
In growing recognition of Pakistan's pharmaceutical sector, the US-based Gilead Sciences recently chose to license COVID19 drug Remdesivir to Pakistan's Ferozsons pharmaceutical company. Other Remdisivir licensees include pharma companies in India. Gilead said it signed non-exclusive licensing pacts with 5 generic drugmakers based in India and Pakistan, allowing them make and sell Remdesivir for 127 countries.
Pakistan Pharma Among World's Top 3 Fastest Growing
Pakistan pharmaceutical industry and market are among the world's top 3 fastest growing, according to IQVIA health market research firm based in the United States. Pakistan’s domestic pharmaceutical firms sales have grown 13.1% compounded annually in the last 4 years, outperforming multinational companies (MNCs), which saw global growth of 9.34% CAGR. Pakistan's pharma sector is growing faster than in other emerging markets like Bangladesh, Brazil, India, Russia and Vietnam.
Emerging faster than the MNCs, the quarterly revenues of the local Pakistani pharmaceutical companies surged to Rs. 320 billion in the quarter ending March 31, 2020, compared with Rs. 195.75 billion as of March 31, 2016. Similarly, MNCs increased their quarterly sales in Pakistan to Rs. 143.2 billion at the end of the first quarter of 2020, up from Rs. 100.2 billion in Q12016, according to Pakistani media reports. Pakistan exported $217.04 million worth of pharma products during 2019, according to the United Nations COMTRADE database on international trade.
Medicine spending growth in the emerging pharmaceutical ("pharmerging") markets continues to slow compared to the past five years and is projected to grow at 5–8% through 2023, according to US-based global market research firm IQVIA.
Although China, Brazil and India have the largest medicine spending within the pharmerging markets, Turkey, Egypt and Pakistan are forecast to have the greatest growth between 2019 and 2023. Pharmerging market growth continues to derive primarily from increasing per capita use, but some markets are seeing wider uptake of newer medicines as patients’ ability to afford their share of costs improves with economic growth.
Pakistan's top 5 pharma companies, including GSK, Abbott, and AGP Pharma, saw their profits jump 37% in Q1/2020 over the same period last year, to Rs2.6 billion. In the same quarter, profits of 13 consumer giants, including Nestle, Packages, Pakistan Tobacco and Colgate, remained flat amid COVID19 pandemic.
In growing recognition of Pakistan's pharmaceutical sector, the US-based Gilead Sciences recently chose to license COVID19 drug Remdesivir to Pakistan's Ferozsons pharmaceutical company. Other Remdisivir licensees include pharma companies in India. Gilead said it signed non-exclusive licensing pacts with 5 generic drugmakers based in India and Pakistan, allowing them make and sell Remdesivir for 127 countries.
Pakistan Pharma Among World's Top 3 Fastest Growing
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Moody’s upgrades Pakistan’s ratings to ‘stable’
August 8, 2020
Moody's Investors Service on Saturday upgraded Pakistan’s ratings from ‘under review for downgrade’ to ‘stable’, while maintaining a B3 rating.
The agency in its latest report also confirmed the B3 foreign currency senior unsecured ratings for The Third Pakistan International Sukuk Co Ltd. The associated payment obligations are, in Moody's view, direct obligations of the Government of Pakistan.
The agency noted that the 'review for downgrade' status had reflected Moody's assessment that the country's participation in the G20 Debt Service Suspension Initiative (DSSI) raised the risk that private sector creditors would incur losses.
“In the last few weeks, Moody's has considered the evidence of implementation of DSSI for a range of rated sovereigns and statements by G20 officials,” it said.
“While Moody's continues to believe that the ongoing implementation of DSSI poses risks to private creditors, the decision to conclude the review and confirm the rating reflects Moody's assessment that, at this stage, for Pakistan, those risks are adequately reflected in the current B3 rating,” it added.
The stable outlook reflects Moody's view that the pressures Pakistan faces in the wake of the coronavirus shock and prospects for its credit metrics in general are likely to remain consistent with the current rating level.
“In particular, while Moody's sees downside risks to Pakistan's economy because of movement and activity restrictions related to the pandemic, which would in turn intensify the government's fiscal challenges, strong support from development partners including for external financing, coupled with effective macroeconomic policies started ahead of the crisis, contain external vulnerability and liquidity risks,” it noted.
“While continued spread of the virus poses downside risks to the economy and government finances, financial and technical support from development partners mitigates external vulnerability and liquidity risks,” it said.
Moody’s also noted the Pakistani government’s commitment to the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), which it expects will cover its external financing needs over the next 12-18 months and provide an anchor for ongoing fiscal reforms.
The credit agency also added it expects the country’s economic growth to be positive in fiscal 2021 (ending June 2021) from a recession in fiscal 2020, but still low at around 1-2%.
“While Pakistan's economy is relatively closed with low reliance on exports, movement restrictions due to coronavirus will keep economic activity below the pre-outbreak levels for some time,” it noted.
It added that the slow economic recovery will in turn weigh on government revenue, “Keeping the fiscal deficit wide at around 8-8.5% of GDP in fiscal 2021 under Moody's projections, at similar levels compared to fiscal 2020, and leaving the government's debt burden high at around 90% of GDP by the end of fiscal 2021.”
“Even in downside economic and fiscal scenarios, Moody's expects Pakistan to cover its external financing needs with continued significant financial support from its development partners, including the commitment to rollover most bilateral loans that come due, independent of how DSSI is implemented,” it said.
The agency said it also expects the government's ongoing engagement with development partners on fiscal reforms, such as through the IMF EFF and other programmes with the Asian Development Bank and World Bank, to contribute to a modest widening of the revenue base once the crisis passes, improving debt affordability and containing fiscal risks over the next few years.
On the subject of external financing, Moody's said the need seems to have declined relative to fiscal 2018-19 because of a narrower current account deficit, which occurred as a result of the macroeconomic adjustments over the past two years and continues to be supported by effective policies including currency flexibility.
It projected the the current account deficit to be around 2% of GDP in fiscal 2021, after 1.1% in fiscal 2020, substantially narrower than the average of around 5.5% over fiscal 2018-19.
“Stability in the balance of payments will, in turn, allow the State Bank of Pakistan, the central bank, to keep monetary policy accommodative as inflation declines. This keeps a lid on borrowing costs for the government domestically and lends further support to debt affordability,” it added.
A positive change in the country’s rating could continue if ongoing fiscal reforms were to expand the government's revenue base, raise debt affordability, and lower its debt burden beyond Moody's current expectations.
However, a change in the rating is also on the cards if downward pressure on the rating would stem from renewed deterioration in Pakistan's external position, including through a significant widening of the current account deficit and erosion of foreign exchange reserve buffers, which would threaten the government's external repayment capacity and heighten liquidity risks.
www.thenews.com.pk
@Zeeman
August 8, 2020
Moody's Investors Service on Saturday upgraded Pakistan’s ratings from ‘under review for downgrade’ to ‘stable’, while maintaining a B3 rating.
The agency in its latest report also confirmed the B3 foreign currency senior unsecured ratings for The Third Pakistan International Sukuk Co Ltd. The associated payment obligations are, in Moody's view, direct obligations of the Government of Pakistan.
The agency noted that the 'review for downgrade' status had reflected Moody's assessment that the country's participation in the G20 Debt Service Suspension Initiative (DSSI) raised the risk that private sector creditors would incur losses.
“In the last few weeks, Moody's has considered the evidence of implementation of DSSI for a range of rated sovereigns and statements by G20 officials,” it said.
“While Moody's continues to believe that the ongoing implementation of DSSI poses risks to private creditors, the decision to conclude the review and confirm the rating reflects Moody's assessment that, at this stage, for Pakistan, those risks are adequately reflected in the current B3 rating,” it added.
The stable outlook reflects Moody's view that the pressures Pakistan faces in the wake of the coronavirus shock and prospects for its credit metrics in general are likely to remain consistent with the current rating level.
“In particular, while Moody's sees downside risks to Pakistan's economy because of movement and activity restrictions related to the pandemic, which would in turn intensify the government's fiscal challenges, strong support from development partners including for external financing, coupled with effective macroeconomic policies started ahead of the crisis, contain external vulnerability and liquidity risks,” it noted.
“While continued spread of the virus poses downside risks to the economy and government finances, financial and technical support from development partners mitigates external vulnerability and liquidity risks,” it said.
Moody’s also noted the Pakistani government’s commitment to the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), which it expects will cover its external financing needs over the next 12-18 months and provide an anchor for ongoing fiscal reforms.
The credit agency also added it expects the country’s economic growth to be positive in fiscal 2021 (ending June 2021) from a recession in fiscal 2020, but still low at around 1-2%.
“While Pakistan's economy is relatively closed with low reliance on exports, movement restrictions due to coronavirus will keep economic activity below the pre-outbreak levels for some time,” it noted.
It added that the slow economic recovery will in turn weigh on government revenue, “Keeping the fiscal deficit wide at around 8-8.5% of GDP in fiscal 2021 under Moody's projections, at similar levels compared to fiscal 2020, and leaving the government's debt burden high at around 90% of GDP by the end of fiscal 2021.”
“Even in downside economic and fiscal scenarios, Moody's expects Pakistan to cover its external financing needs with continued significant financial support from its development partners, including the commitment to rollover most bilateral loans that come due, independent of how DSSI is implemented,” it said.
The agency said it also expects the government's ongoing engagement with development partners on fiscal reforms, such as through the IMF EFF and other programmes with the Asian Development Bank and World Bank, to contribute to a modest widening of the revenue base once the crisis passes, improving debt affordability and containing fiscal risks over the next few years.
On the subject of external financing, Moody's said the need seems to have declined relative to fiscal 2018-19 because of a narrower current account deficit, which occurred as a result of the macroeconomic adjustments over the past two years and continues to be supported by effective policies including currency flexibility.
It projected the the current account deficit to be around 2% of GDP in fiscal 2021, after 1.1% in fiscal 2020, substantially narrower than the average of around 5.5% over fiscal 2018-19.
“Stability in the balance of payments will, in turn, allow the State Bank of Pakistan, the central bank, to keep monetary policy accommodative as inflation declines. This keeps a lid on borrowing costs for the government domestically and lends further support to debt affordability,” it added.
A positive change in the country’s rating could continue if ongoing fiscal reforms were to expand the government's revenue base, raise debt affordability, and lower its debt burden beyond Moody's current expectations.
However, a change in the rating is also on the cards if downward pressure on the rating would stem from renewed deterioration in Pakistan's external position, including through a significant widening of the current account deficit and erosion of foreign exchange reserve buffers, which would threaten the government's external repayment capacity and heighten liquidity risks.
Moody’s upgrades Pakistan’s ratings to ‘stable’
Moody's Investors Service on Saturday upgraded Pakistan’s ratings from ‘under review for downgrade’ to ‘stable’, while maintaining a B3 rating.The agency in its...
www.thenews.com.pk
@Zeeman
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Amazon officially enters Pakistan with web services
Two weeks after experiencing service disruptions in Pakistan, Amazon is bringing its cloud computing business to Pakistan to influence public policy that enables digital transformation
August 7, 2020
SINGAPORE: Having registered a local office under the name Amazon Data Services Pakistan (Pvt) Ltd, Amazon is forming a team for Amazon Web Services (AWS) in Pakistan, to drive the adoption of cloud computing.
The move comes two weeks after the technology company experienced a disruption worldwide, which largely impacted parts of the US and Pakistan as a whole.
According to the SECP database, the Pakistan office is led by Paul Andrew Macpherson as the CEO while Shoaib Munir is a director along with Macpherson.
Speaking to Profit under the condition of anonymity, a spokesperson from Amazon shared that the technology leader is currently seeking a public policy specialist for Pakistan, with a focus on driving AWS cloud computing solution adoption. The role focuses on removing regulatory and political blockers to cloud adoption.
This is a common approach among technology companies when entering small markets, with Bytedance doing the same in June by hiring Hassan Arshad as the head of public policy to work with the Pakistan Telecommunications Authority (PTA) to stall a ban of the TikTok app.
As for AWS in Pakistan, the “Framework on IT Governance and Risk Management in Financial Institutions” by the State Bank of Pakistan (SBP) directed banks to utilise cloud computing technology under the condition that systems and service providers shall be located in Pakistan along with all physical servers and services. Under this rule, AWS would need to set up its own data center and cloud server in the country.
According to the e-commerce policy framework of Pakistan, the Ministry of Information Technology and Telecommunication are in the process of formulating Pakistan’s first cloud policy, while the Draft Data Protection Act is at an advanced stage of consultations. The latter draft, which also concerns Amazon, addresses issues concerning data protection in e-commerce.
AWS hopes to work with relevant government departments in Pakistan as they develop and revise policies related to the digital economy, including cloud-first policies, data protection regulations, outsourcing guidelines, cybersecurity policies, tax policy, and over the top regulations. They will also proactively build relationships with key policymakers, politicians, and influencers.
profit.pakistantoday.com.pk
@Gripen9 Any details on this? Will this include all AWS services?
Two weeks after experiencing service disruptions in Pakistan, Amazon is bringing its cloud computing business to Pakistan to influence public policy that enables digital transformation
August 7, 2020
SINGAPORE: Having registered a local office under the name Amazon Data Services Pakistan (Pvt) Ltd, Amazon is forming a team for Amazon Web Services (AWS) in Pakistan, to drive the adoption of cloud computing.
The move comes two weeks after the technology company experienced a disruption worldwide, which largely impacted parts of the US and Pakistan as a whole.
According to the SECP database, the Pakistan office is led by Paul Andrew Macpherson as the CEO while Shoaib Munir is a director along with Macpherson.
Speaking to Profit under the condition of anonymity, a spokesperson from Amazon shared that the technology leader is currently seeking a public policy specialist for Pakistan, with a focus on driving AWS cloud computing solution adoption. The role focuses on removing regulatory and political blockers to cloud adoption.
This is a common approach among technology companies when entering small markets, with Bytedance doing the same in June by hiring Hassan Arshad as the head of public policy to work with the Pakistan Telecommunications Authority (PTA) to stall a ban of the TikTok app.
As for AWS in Pakistan, the “Framework on IT Governance and Risk Management in Financial Institutions” by the State Bank of Pakistan (SBP) directed banks to utilise cloud computing technology under the condition that systems and service providers shall be located in Pakistan along with all physical servers and services. Under this rule, AWS would need to set up its own data center and cloud server in the country.
According to the e-commerce policy framework of Pakistan, the Ministry of Information Technology and Telecommunication are in the process of formulating Pakistan’s first cloud policy, while the Draft Data Protection Act is at an advanced stage of consultations. The latter draft, which also concerns Amazon, addresses issues concerning data protection in e-commerce.
AWS hopes to work with relevant government departments in Pakistan as they develop and revise policies related to the digital economy, including cloud-first policies, data protection regulations, outsourcing guidelines, cybersecurity policies, tax policy, and over the top regulations. They will also proactively build relationships with key policymakers, politicians, and influencers.
Amazon officially enters Pakistan with web services
SINGAPORE: Having registered a local office under the name Amazon Data Services Pakistan (Pvt) Ltd, Amazon is forming a team for Amazon Web Services (AWS) in Pakistan, to drive the adoption of cloud c
profit.pakistantoday.com.pk
@Gripen9 Any details on this? Will this include all AWS services?
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Petroleum Division identifies 40 new blocks to step up E&P activities
August 09, 2020
Making a true calculation of the country’s existing and future energy needs, the Petroleum Division has aligned its strategy to achieve self-sufficiency in oil and gas sector by introducing ease-of-doing-business and radical measures to ensure a level-playing field for all competitors.
“As many as 40 new blocks have been identified in different parts of the country to step up oil and gas exploration activities as the existing reservoirs are fast-depleting and since long there is no major discovery,” a senior official privy to petroleum sector developments told APP while sharing two-year performance of the Pakistan Tehreek-e-Insaf (PTI) government.
The new blocks would be awarded in a transparent manner through an international bidding, for which necessary work was in process, he said. In September 2018, he said, following the PTI government’s coming into power, a bidding round of 10 onshore exploration blocks was conducted, which was held after a gap of almost five years, wherein eight blocks were awarded.
“Next bidding round is being planned shortly whereby 20 Onshore Blocks would be offered and efforts are being made to attract foreign companies,” he said, adding that more such rounds would be held in sequence.
The country’s total sedimentary area was around 827,268 square kilometers, out of which 320, 741 KM or 39 percent of the area was under exploration, he said.
Quoting a recent study about fast depletion of existing hydrocarbon reservoirs in the country, he feared that the deposits would further deplete by 60 percent by the year 2027, underlining the need for accelerating exploration activities in potential areas on war-footing, Total consumption of petroleum products in the country stood at 19.68 Million Tons (MTs) during the fiscal year 2019-20, out of which 11.59 MTs was achieved through local refineries and 8.09 MT through import.
While, there was a gap of over 2 Billion Cubic Feet per Day (BCFD) gas between production and demand of the commodity to meet requirements of more than 9.6 million consumers across the country, Current gas production is around 4 BCFD against the demand of 6 BCFD, the gap is being bridged through import of LNG and LPG.
The official said the Petroleum Division had granted open access to private sector in import of Liquefied Natural Gas (LNG) besides allowing them to set up their own terminals. He said the government had planned to introduce Euro-V fuel in the country to meet requirements of the hi-tech vehicles and tackle the environmental issues like pollution and smog factors.
He said general sales tax on fuels had been fixed at the rate of 17 percent by law to streamline the matters related to pricing of petroleum products.
Commenting on the country’s oil refining capacity, he said two new modern refineries were being built, while an incentive package had been announced for up-gradation of existing facilities. He said the government had also simplified the approval process for those who wanted to work in exploration and production business.
The official said the government had finalised new downstream oil policy, whereas the work on dualization of the white oil pipeline would start soon.
Besides, he said, engineering work was being carried out for development of underground storage capacity. Boards of Directors of ten companies reconstituted, he said, adding professional CEOs had been appointed in Pakistan State Oil Company Limited, Oil and Gas Development Company Limited Pakistan Mineral Development Corporation and Government Holdings (Private) Limited.
He said lab testing facilities of Hydrocarbon Development Institute of Pakistan were being upgraded to ensure provision of quality petroleum products across the country. During a period from August 18, 2019 to April 30, 2020, Exploration and Production (E&P) companies had drilled around 142 wells, out of which 50 were exploratory and 92 appraisal/developmental.
As many as 26 discoveries with initial flow of 6,799 Barrels per Day (BPD) oil and 234 Million Cubic Feet per Day (MMCFD) gas were announced.
The E&P companies, the official said, had added 9,444 BPD oil and 218 MMCFD gas was added in the national pool against the depletion of 9611 BPD oil and 279 MMCFD gas from the operational wells.
While, the companies had acquired around 5,110 2D Line-Kilometer and 2,693 Square- Kilometer seismic data to assess potential of hydrocarbon deposits in different pockets.
Till May 21, 2020, the government had collected Rs142.977 billion from different E&P companies, out of which Rs51.196 billion were received on account of crude oil and Rs91.781 billion for natural gas extraction.
nation.com.pk
August 09, 2020
Making a true calculation of the country’s existing and future energy needs, the Petroleum Division has aligned its strategy to achieve self-sufficiency in oil and gas sector by introducing ease-of-doing-business and radical measures to ensure a level-playing field for all competitors.
“As many as 40 new blocks have been identified in different parts of the country to step up oil and gas exploration activities as the existing reservoirs are fast-depleting and since long there is no major discovery,” a senior official privy to petroleum sector developments told APP while sharing two-year performance of the Pakistan Tehreek-e-Insaf (PTI) government.
The new blocks would be awarded in a transparent manner through an international bidding, for which necessary work was in process, he said. In September 2018, he said, following the PTI government’s coming into power, a bidding round of 10 onshore exploration blocks was conducted, which was held after a gap of almost five years, wherein eight blocks were awarded.
“Next bidding round is being planned shortly whereby 20 Onshore Blocks would be offered and efforts are being made to attract foreign companies,” he said, adding that more such rounds would be held in sequence.
The country’s total sedimentary area was around 827,268 square kilometers, out of which 320, 741 KM or 39 percent of the area was under exploration, he said.
Quoting a recent study about fast depletion of existing hydrocarbon reservoirs in the country, he feared that the deposits would further deplete by 60 percent by the year 2027, underlining the need for accelerating exploration activities in potential areas on war-footing, Total consumption of petroleum products in the country stood at 19.68 Million Tons (MTs) during the fiscal year 2019-20, out of which 11.59 MTs was achieved through local refineries and 8.09 MT through import.
While, there was a gap of over 2 Billion Cubic Feet per Day (BCFD) gas between production and demand of the commodity to meet requirements of more than 9.6 million consumers across the country, Current gas production is around 4 BCFD against the demand of 6 BCFD, the gap is being bridged through import of LNG and LPG.
The official said the Petroleum Division had granted open access to private sector in import of Liquefied Natural Gas (LNG) besides allowing them to set up their own terminals. He said the government had planned to introduce Euro-V fuel in the country to meet requirements of the hi-tech vehicles and tackle the environmental issues like pollution and smog factors.
He said general sales tax on fuels had been fixed at the rate of 17 percent by law to streamline the matters related to pricing of petroleum products.
Commenting on the country’s oil refining capacity, he said two new modern refineries were being built, while an incentive package had been announced for up-gradation of existing facilities. He said the government had also simplified the approval process for those who wanted to work in exploration and production business.
The official said the government had finalised new downstream oil policy, whereas the work on dualization of the white oil pipeline would start soon.
Besides, he said, engineering work was being carried out for development of underground storage capacity. Boards of Directors of ten companies reconstituted, he said, adding professional CEOs had been appointed in Pakistan State Oil Company Limited, Oil and Gas Development Company Limited Pakistan Mineral Development Corporation and Government Holdings (Private) Limited.
He said lab testing facilities of Hydrocarbon Development Institute of Pakistan were being upgraded to ensure provision of quality petroleum products across the country. During a period from August 18, 2019 to April 30, 2020, Exploration and Production (E&P) companies had drilled around 142 wells, out of which 50 were exploratory and 92 appraisal/developmental.
As many as 26 discoveries with initial flow of 6,799 Barrels per Day (BPD) oil and 234 Million Cubic Feet per Day (MMCFD) gas were announced.
The E&P companies, the official said, had added 9,444 BPD oil and 218 MMCFD gas was added in the national pool against the depletion of 9611 BPD oil and 279 MMCFD gas from the operational wells.
While, the companies had acquired around 5,110 2D Line-Kilometer and 2,693 Square- Kilometer seismic data to assess potential of hydrocarbon deposits in different pockets.
Till May 21, 2020, the government had collected Rs142.977 billion from different E&P companies, out of which Rs51.196 billion were received on account of crude oil and Rs91.781 billion for natural gas extraction.
Petroleum Division identifies 40 new blocks to step up E&P activities
Making a true calculation of the country’s existing and future energy needs, the Petroleum Division has aligned its strategy to achieve
nation.com.pk
BATMAN
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What a pathetic justification from the front man of an economic hitman.
Pakhtoon yum
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Pakistan needs it's own modren day Meiji revolution. All power needs to be centralized and only Islamabad can dictate what happens from a federal to the municipal level. Not persay have an emperor but a president which would be the main figure head of the nation.
All these factions trying to play the provincialism card needs to be eradicated before it starts to breed hate. Islamabad needs to take control and govern each distract as equally.
The best scenario would be to abolish the term "province" and replace it with the words "historic region" which should comprise districts that were once part of that province.
Example. The historic region of khyber which should clump the now districts of kpk. This should be applied to every province.
The term "historic region" should have no governance meaning but just a geographical structure which defines a rough idea of historic connections/past. Otherwise it should primarily be a distract government.
Each district should be given equal say in the parliament and federal government with equal funds distributed outside of those with a major population difference.
Karachi and lahore should be made into their own districts with no other city included in those districts. This will gave other smaller cities to grow and expand.
This will also help left impoverished districts back up and bring them to the same level as the rest of the country. Which should ensure equal growth across the country and an increase in jobs/middle class.
Pakistan is a unique country and unique out of the box methods need to be applied to cater to its needs.
All these factions trying to play the provincialism card needs to be eradicated before it starts to breed hate. Islamabad needs to take control and govern each distract as equally.
The best scenario would be to abolish the term "province" and replace it with the words "historic region" which should comprise districts that were once part of that province.
Example. The historic region of khyber which should clump the now districts of kpk. This should be applied to every province.
The term "historic region" should have no governance meaning but just a geographical structure which defines a rough idea of historic connections/past. Otherwise it should primarily be a distract government.
Each district should be given equal say in the parliament and federal government with equal funds distributed outside of those with a major population difference.
Karachi and lahore should be made into their own districts with no other city included in those districts. This will gave other smaller cities to grow and expand.
This will also help left impoverished districts back up and bring them to the same level as the rest of the country. Which should ensure equal growth across the country and an increase in jobs/middle class.
Pakistan is a unique country and unique out of the box methods need to be applied to cater to its needs.
BATMAN
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Pakistan need to educated it's children, that stealing and lying is crime. It may be in shape of taxation, or mobile snatching, and even stealing votes, by using lies about what they are going to deliver, upon assuming power.
On administration level Pakistan need to close all govt. offices as they are not contributing in any development, neither delivering any services, people are managing housing societies, which are basically small countries, with education, health, utility, security, maintenance, water, sanitation, entertainment, etc. without any positive contribution from govt. So without parliament, senate and bureaucracy people will be more happy and country will progress and develop faster.
Contractors will construct roads, and private industry will employee people.
Pakhtoon yum
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All that education would be tossed out the window once they join the real world outside of their educational institutions. When they have to bribe and steal to get food on their table all that money spent on education would be a waste. So no, education is not going to fix the old hags occupy this country.
BATMAN
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That's one dimension, but all evil is politicians and political institutes, they are black mailers, thieves, murderers, rapists, traitors, money launderers, hypocrites, but ruling the country by virtue of democracy.
Therefore , closing down political institutes would lead to improvement in socio-economic situation.
Situation today is worst than ever, even top army brass is profiting from the corrupt and power hungry politicians.
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