Author: none@none.com (Shahid Iqbal)

The Government’s Borrowing Spree: A Deep Dive into Pakistan’s Economic Situation Despite a 30% growth in revenue generation, the Pakistani government has borrowed a whopping Rs3.2 trillion from scheduled banks in just over a month. The data from the State Bank of Pakistan highlights the government’s massive spending spree, with borrowing averaging Rs71.8 billion per day. In a bid to boost revenue, heavy taxation measures have been implemented for the upcoming fiscal year, aiming for a 40% increase in revenue compared to the previous year. However, little effort seems to be made to curb spending to avoid escalating borrowing. The…

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Record $30bn Remittances Inflow Boosts Pakistan’s Economy Recent data from the State Bank of Pakistan revealed that the country experienced a significant increase in remittances, with inflows exceeding $30 billion in FY24. This marked a 10.7% growth compared to the previous fiscal year, showcasing the crucial role overseas Pakistanis play in supporting the economy. Despite falling short of the record $31.3 billion remittances in FY22, the $3 billion jump from the previous year’s receipts is still a positive sign for the government. The growth in remittances has overshadowed earnings from exports, highlighting the economy’s reliance on remittances. Financial experts view…

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Pakistan’s current account showed a deficit of $270 million in May, reversing the surpluses seen in the previous months of the fiscal year. Despite this, the overall current account deficit for 11 months of FY24 sharply narrowed by 88%, standing at $464 million compared to $3.765 billion the previous year. Experts predict a further widening of the current account deficit in the final month of the fiscal year due to debt servicing and easing imports. The balance of payments gap has significantly reduced, attributed to managed imports and strict control on outflows of dollars. While some profits and dividends on…

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KARACHI: In May, Pakistan received its highest-ever monthly remittances of $3.24 billion, marking a significant increase of 54% from the previous year. This surge in remittances has sparked optimism for a robust fiscal year ahead. According to data from the State Bank, the May inflows exceeded April’s numbers by 15.3%, totaling $2.8 billion. This rebound is particularly noteworthy following a $4 billion shortfall in remittances during the previous fiscal year. Financial experts attribute this surge to factors such as stable exchange rates, anticipated foreign investments, and a buoyant equity market. Remittances have also partially shifted towards the real estate sector…

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KARACHI: The upcoming State Bank monetary policy meeting on June 10 is garnering significant attention from stakeholders. The policy announcement will be made without factoring in budgetary measures or discussions with the IMF for another loan, leading to speculation about potential inflationary measures to provide relief to the public. Despite a large gap between consumer inflation at 11.8% and the existing policy rate of 22%, experts believe the State Bank will adopt a cautious approach. A survey by Topline Securities revealed that 90% of participants anticipate a rate cut, with estimates ranging from 100 to 300 basis points. The secondary…

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