Day: November 4, 2021

Pakistan’s cotton output has soared up to 6.2 million bales in the current season (June-Nov), a surge of 81 percent compared to the same period last year, owing to timely rains and better incentives to the farmers.

According to Pakistan Cotton Ginners’ Association (PCGA), the cotton yield was only 3.45 million bales last year in the June-November period.

Rain timings played a huge role in the cotton output. Timely rain in September boosted the cotton harvest this year, said former PCGA Chairman, Jassu Mal Leemani.

“We expect a cumulative production of 7-7.2 million bales in current season 2021-22 and around 10 million bales in 2022-23,” said the former chairman.

Cotton output was dismal last year, a multi-decade low of 5.64 million bales due to untimely rainfall in August, resulting in the loss of 2 million bales in Sindh alone, explained Leemani.

Leemani highlighted that cotton output also increased due to better price incentives to the farmer as the price of cotton flower (phutti) per 40 kg was doubled to Rs. 6,000 in the ongoing year against Rs. 3,000 per kg in the previous year. Similarly, cotton price is currently around a peak of Rs. 17,000 per 40 kg compared to Rs. 11,000 per 40 kg last year.

Famers would prefer other crops — rice, maize, and sugarcane — over cotton as they would get higher returns from other crops. Leemani emphasized that the government should support the textile industry with a better cotton policy as the textile sector is contributing to 60 percent of the total exports annually.

In the ongoing year, the exceptional cotton output will ease the pressure on the foreign reserves of Pakistan, as the textile industry will meet most of its cotton needs locally and will import less cotton from global markets.

In the international market, cotton prices have also doubled to $1.2 per pound against $0.6 per pound a year ago, added the former chairman.

Low cotton harvest forces the textile industry to import cotton to meet their manufacturing needs. Due to low cotton output FY2020, the textile industry imported $1.48 billion worth of cotton yarn (857,373 tons) for yarn manufacturing, noted the Pakistan Bureau of Statistics (PBS).

Source: Pro Pakistani

Pakistan has arranged $761.5 million in Murabaha financing from the International Islamic Trade Finance Corporation (ITFC) to import petroleum products on deferred payment.

The development was announced in a series of tweets by Economics Affairs Division (EAD) on 4 November.

The ITFC has increased Pakistan’s Murabaha financing facility from $300 million to $761.5 million, which Pakistan State Oil (PSO), the Pak-Arab Refinery Company Limited (PARCO), and Pakistan LNG can utilize to import oil and gas from the international market.

The EAD said that the increase in the financing limit is due to the higher demand in the country amid the strong recovery of the economy.

The financing facility was announced after a discussion between the Minister for Economic Affairs, Omar Ayub Khan, and the CEO of the ITFC Hani Salem Sonbol.

According to the EAD, the “ITFC financing will help to ease pressure on the exchange rate and stabilize forex reserves. It also reflects the confidence of IFIs in Pakistan’s economy. ITFC & EAD also agreed to continue their cooperation in future for maximum utilization of US$ 4.5 billion financing window”.

The government is taking steps to maintain its dollar reserves and exchange rate against the backdrop of the prices of commodities and petroleum products hovering at historic highs.

Saudi Arabia also recently extended support to Pakistan and resumed a $1.5 billion per year oil facility on deferred payments and $3 billion in safe deposits. The $4.5 billion eased the pressure on the exchange rate as the Pakistani Rupee gained Rs. 2.48 against the greenback in a single day on 28 October after reaching an all-time low of Rs. 175.27 per Dollar.

Source: Pro Pakistani

Advisor on Finance Shaukat Fayaz Tarin and Advisor on Commerce Abdul Razzak Dawood called on Prime Minister Imran Khan today (Thursday). Advisor on Finance briefed the Prime Minister on the overall economic situation.

The commerce advisor briefed the Prime Minister regarding his recent visit to Turkmenistan for improving connectivity in the region for maximum economic gains. He also apprised the Prime Minister about his upcoming visit to Iran and its role in improving prospects of regional connectivity and bilateral trade between the two countries.

The Prime Minister emphasized improving trade with regional countries as it would help in increasing exports.

The Prime Minister stated that the government is providing all possible support to foreign investors through the “Ease of doing Business” policy.

Source: Pro Pakistani

Building upon SBP’s vision of promoting Pakistan’s domestic payment scheme PayPak, MCB Bank (MCB) has signed an agreement with 1LINK, to facilitate PayPak cardholders in conducting online eCommerce transactions.

MCB PayPak Debit Card customers will soon be able to shop online and make payments from anywhere in Pakistan, adding more value to their digital banking experience.

PayPak was launched by 1LINK in 2016 adding Pakistan to the list of countries in the world that have their own domestic payment schemes.

Ever since its launch, PayPak has managed to impressively garner countrywide acceptance on ATMs and POS while simultaneously ensuring the facilitation of eCommerce transactions.

At the agreement signing, 1LINK CEO, Najeeb Agrawalla, stated, “The enablement of PayPak cards for eCommerce transactions has now become a necessity owing to the exponential rise in digital payments due to the pandemic.”

“PayPak has come a long way and we aim to make PayPak the card of choice for all Pakistanis by providing unparallel acceptability and benefits. We congratulate MCB for enabling their PayPak cardholders to make online purchases on e-Commerce marketplaces within Pakistan, with no compromise on security,” he added.

Shahzad Ishaq, Group Head Consumer & Digital Banking MCB Bank, said, “MCB has a tradition of providing reliable, convenient and forward-looking services to our customers. This initiative is a milestone on our journey to promote domestic products and services by digitizing experience, in line with Regulator’s vision.”

“By empowering PayPak cardholders, MCB will further deliver financial inclusion and mobilize customers towards adoption of digital payments,” he added.

Source: Pro Pakistani

The United Kingdom has announced more than £55 million worth of support to help Pakistan tackle climate change as part of the COP26 Global Climate Change Summit this week.

As global leaders come together for the COP26, this is a critical time for Pakistan which has been ranked the eighth most vulnerable country to climate change.

The rising temperatures mean that 36 percent of the glaciers along the Hindu Kush and Himalayan ranges will be gone by 2100.

The UK has already achieved notable successes. Ninety percent of the world’s economy is now covered by net-zero targets, up from less than 30 percent when the UK took on the Presidency of the COP26. This will help the most vulnerable countries like Pakistan cope with climate change.

The new funding for climate change in Pakistan is split into three parts:

• A five-year climate resilience program worth £38 million will help Pakistan’s poorest communities to protect themselves from the changing climate.

• A five-year water governance program worth £15 million will make Pakistan’s use of water more sustainable, and water access fairer.

• An additional £2.5 million to support new ways of attracting much-needed climate investment to Pakistan, including the development of a Nature Performance Bond on World Environment Day in June, with the commitment of Prime Minister Imran Khan and the UK.

The British High Commissioner, Dr. Christian Turner CMG, was scheduled to announce the urgently-needed new programs at a high-level reception for climate change stakeholders at the British High Commission in Islamabad today (Thursday, 4 November).

He said,

For Pakistan, climate change could be catastrophic. That is why we are working together on trees and finance, and mobilizing leading Pakistani businesses. This £55 million new funding will ensure Pakistan becomes more resilient to climate impacts, with more sustainable water use and greater access to climate finance, so improving lives and livelihoods.

Under the COP26, the UK has been working with Pakistan in the following areas:

• A #26For26 campaign to have 26 Pakistani companies commit to halving emissions by 2030 and getting to net-zero by 2050. Twenty-nine companies have signed up for it so far.

• Pakistan successfully joining more than 100 countries to pledge to end and reverse deforestation by 2030.

The UK had been working closely with Pakistan on climate change even before the COP26 and will provide £7 million this year to help the country achieve its climate change objectives. It had also launched a new program in Lahore earlier this year to promote cleaner brick production practices that will help to improve air quality, reduce smog, and fight climate change.

Source: Pro Pakistani

The Pakistani Rupee (PKR) finally posted blanket losses against the US Dollar after a week. The local unit deteriorated by 4 paisas against the greenback in the interbank currency market today.

The PKR traded between Rs. 170.12 to the USD and Rs. 169.85 to the USD today (November 4) before closing at Rs. 170.01 to the USD, as compared to Wednesday’s (November 3) closing at Rs. 169.97.

This is the second time since last week that PKR has posted blanket losses against the greenback.

The PKR has lost nearly two rupees to the USD since July 1 due to higher demand from importers and oil payments.

Within the past week, PKR went from trading above Rs. 173 to the USD to trading a little under Rs. 170 to the USD.

Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, said earlier in the day, “Targeted subsidy will surely help 2reduce [to reduce] the burden of poor man 2 [to] a certain extent. It is the middle class that always remain under stress.”

He added, “The economic challenges demand constant monitoring & adaptation of proactive fiscal & monetary policies. However, it’s inflationary.”

The local unit also reversed most of its gains against other major currencies and posted blanket losses in the interbank currency market today.

PKR posted losses of 19 paisas against the Canadian Dollar (CAD) and 57 paisas against the Pound Sterling (GBP). However, the rupee posted gains of 26 paisas against the Australian Dollar (AUD), and 41 paisas against the Euro (EUR).

PKR also posted a blanket loss of 1 paisa against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s interbank currency market.

Source: Pro Pakistani

Federal Minister for Economic Affairs, Omar Ayub Khan, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad today.

Adviser to the Prime Minister on Finance & Revenue, Shaukat Tarin, Federal Minister for Industries & Production, Makhdum Khusro Bakhtyar, Federal Minister for National Food Security & Research, Syed Fakhar Imam, Federal Minister for Energy, Muhammad Hammad Azhar, Federal Minister for Privatization, Mian Muhammad Soomro, Federal Secretaries, and other senior officers participated in the meeting.

The ECC considered and recommended the summary presented by the Ministry of Industries & Production regarding the late payment surcharge of operations of fertilizer plants at SNGPL network between September 2018 to November 2019 with a direction to seek prior approval from the Board of SNGPL.

Ministry of National Food & Security presented a summary before the Committee to reshuffle the chairmanship of the Committee constituted for accepting/scrapping the tenders floated by TCP to import wheat and sugar. The ECC recommended that the Adviser to the PM on Finance & Revenue may head the aforesaid committee for taking operational decisions related to tenders for import of wheat and sugar floated by the TCP.

The ECC also recommended the summary tabled by the Petroleum Division regarding the extension of the gas network/rehabilitation of network in oil and gas producing districts of Khyber Pakhtunkhwa. The summary outlined details regarding phase-II of the project that will reduce gas losses in the gas-producing districts of KP in collaboration with the provincial government. The first phase of the project was completed during the last financial year.

On another summary moved by the Power Division regarding the decision of the authority in the matter of fuel charges adjustment for the months of November 2019 to June 2020 for XWDISCOS along with notification thereof. The ECC, after due deliberation, recommended that the federal government may issue guidelines to NEPRA and also require it to reconsider its decision dated 07 August 2020 to allow recovery of pending FCA as prior year adjustment in the rebasing decision which is under process at NEPRA.

Ministry of Commerce presented a Strategic Trade Policy Framework (STPF) 2020-25 to enhance growth in exports in Pakistan. The STPF 2020-25 aims to enhance the export competitiveness of Pakistan through a framework of interventions having an impact across the value chains. On a whole, the STPF aims to enhance the ability of Pakistani enterprises’ capacity to produce, distribute and sell products and services as or more efficiently than is done by the competitors. The ECC recommended the STPF, in principle, as a guiding framework with a direction that budgetary allocation and other related details will be dealt with separately.

The ECC also considered and recommended the summary tabled by the M/o NFS&R recommending that keeping in view the sufficient public current stock position of wheat flour, demand and supply situation, international wheat prices, and local releases to flour mills, there is no need for further import of wheat at this point of time, even through G2G arrangements. On the recommendations of the Technical Advisory Committee, ECC also canceled the floating of fresh tender to import wheat on the occasion.

The ECC also recommended a summary by M/o NFS&R regarding permission for the export of wheat flour to Afghanistan under the World Food Programme strategy in wake of the recent crisis.

The ECC also approved the following Technical Supplementary Grants as recommended by the Technical Advisory Committee:

• Rs.30 million in favor of the Ministry of Energy (Power Division) for the execution of development schemes of Sindh Province under PSDP.

• Rs.300 million in favor of Interior Division for the establishment of Pakistan Emergency Helpline (PEHEL)

• US$ 190 million to National Disaster Management Authority (NDMA) for procurement of vaccine including transportation and handling charges.

Earlier, Adviser to the Prime Minister on Finance & Revenue, Shaukat Tarin, presided over the meeting of the Technical Advisory Committee (TAC) of the ECC today. The meeting of TAC was attended by Federal Minister for National Food Security & Research, Syed Fakhar Imam, Federal Minister for Energy, Muhammad Hammad Azhar, Federal Minister for Privatization, Mian Muhammad Soomro, Federal Secretaries and other senior officers. The TAC discussed 15 summaries and presented its recommendations to the Economic Coordination Committee of the Cabinet for their consideration.

Source: Pro Pakistani

The freelance earning in Pakistan, during the first quarter of the fiscal year 2021-22, grew by 21.37%, surging from $87.247 million to $105.895 million as compared to the first quarter of the previous fiscal year.

Out of the total amount earned through freelance work, the earnings relating to Information Technology (IT) related services remained $81.523 million, with non-IT earnings amounting to $24.373 million.

In comparison with the last year, the IT earnings declined by a small margin as they previously stood at $81.676 million. However, the earnings for non-IT work experienced a drastic increase, jumping up from $5.57 million to $24.373 million. The change in the non-IT portion led to a decent increase in the overall earnings of freelancers on a year-on-year basis.

Furthermore, during the first quarter of the fiscal year 2021-22, IT export remittances of freelancers made up 16.68% of the total ICT export remittances of $635.010 million.

Source: Pro Pakistani