Connect with us

Business

As the PSX rises in anticipation of an SBP policy rate drop,

Published

4 months ago

on

The Pakistan Stock Exchange (PSX) persists in its upward trajectory as investors anticipate the State Bank of Pakistan’s (SBP) pronouncement on monetary policy.

The KSE-100 index presently stands at 92,016 points, having increased by approximately 1,100 points from the prior close of 90,859 points.

The recent increase in the PSX is attributed to the anticipated reduction in the policy rate during the Monetary Policy Committee (MPC) meeting.

United States Currency

The dollar appreciated against the Pakistani rupee by Rs0.07, now valued at Rs277.77.

Business leaders advocate for the government to lower the interest rate to 12.5 percent.

Former federal minister Gohar Ejaz recently stated that the government should promptly declare a winter package for the business.

At the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office, former provincial minister SM Tanveer and ex-Federal Minister for Commerce Gohar Ejaz endorsed significant economic reforms.

Business leaders implored the government to promptly lower the interest rate to 12.5%, with an additional reduction to 5% by December 31, 2024.

They have requested a specialised winter package to supply electricity to enterprises at a rate of Rs20 per unit to alleviate operational expenses.

Gohar Ejaz warned that Pakistan’s industrial sector is on the verge of collapse, characterising factories as “transforming into graveyards.”

He emphasised that sustaining elevated interest rates will impede growth, noting that nations in the region have effectively maintained their rates in the single digits. “He cautioned that the service sector will not endure if we forfeit the agricultural and manufacturing sectors.”

Ejaz attributed the erosion of economic stability on present economic policies, highlighting the ongoing devaluation of the currency and inflation resulting from capacity payments.

He implored the government to establish a definitive objective of a 10% annual increment in exports, forecasting that this trajectory will elevate Pakistan’s exports to $50 billion within five years. He emphasised the importance of reinstating the confidence of the business sector for the success of the privatisation agenda.

Former provincial minister SM Tanveer emphasised the necessity of incorporating FPCCI in policy-making procedures. “To transform Pakistan into an economic superpower, it is imperative to consult business leaders,” he asserted.

Regional Chairman Zaki Ijaz encouraged the government to acknowledge the importance of the industrial sector and emphasise policies that promote industrial activity to mitigate increasing unemployment.

Related Topics:
Continue Reading

Business

Negotiations with IMF for $7 billion loan programme start

Published

2 days ago

on

By

– Policy talks for the next phase of the $7 billion loan package for Islamabad were formally launched on Tuesday between Pakistan and the visiting delegation of the International Monetary Fund, a major lender.

Nathan Porter is in charge of the IMF delegation, while Finance Minister Muhammad Aurangzeb leads Pakistan’s economic team. Rashid Langrial, the chairman of the Federal Board of Revenue (FBR), is also taking part in the discussions.

The IMF delegation will be briefed by Finance Minister Aurangzeb on Pakistan’s present economic circumstances. The IMF delegation will make suggestions for the budget for the upcoming fiscal year. Pakistan will submit a report on the first half of the current fiscal year as well as a report on the execution of the IMF-imposed restrictions under the $7 billion loan program.

The IMF mission will be briefed by the Pakistani team on real estate and agricultural income taxes.

The IMF delegation will offer suggestions about the release of a $1.1 billion tranche to Pakistan following the negotiations.

The IMF mission negotiations will last until March 15.

The IMF mission was previously briefed on tax and energy policies at the Pakistan Business Council office.

During an introductory session, representatives from the Ministry of Finance and the Ministry of Planning gave the visiting International Monetary Fund (IMF) delegation an update on the economic review for the release of the next installment of $1 billion from the $7 billion bailout package.

Continue Reading

Business

The Planning Ministry provides the IMF with a report on the Green Pakistan Initiative.

Published

2 days ago

on

By

During an introductory session, representatives from the Ministry of Finance and the Ministry of Planning gave the visiting International Monetary Fund (IMF) delegation an update on the economic review for the release of the next installment of $1 billion from the $7 billion bailout package.

The Green Initiative Report was presented to the international lender by the Planning Commission, Ministry of Finance, and Ministry of Planning, according to sources.

A report on climate change projects as part of the Green Initiative was also presented by the Ministry of Planning.

As part of the IMF’s initial demands, the Ministry of Finance instructed the Planning Commission to compile the report in response to the IMF’s request.

According to Planning Commission sources, the meeting also covered the current fiscal year’s Public Sector Development Programme (PSDP) budget cuts and expenditures.

Additionally, during the introduction session, representatives from the Ministry of Planning and the Ministry of Finance gave a briefing.

The economic team would start formal negotiations with the IMF delegation tomorrow, according to sources at the Ministry of Finance.

According to the timetable, the Ministry of Finance and other ministries will meet with the IMF tomorrow.

Continue Reading

Business

As negotiations for the next $1 billion start, the IMF seeks a crackdown on tax evasion in Pakistan’s real estate.

Published

3 days ago

on

By

The International Monetary Fund (IMF) has urged action against people who falsify property values and has asked for tougher steps to stop tax cheating in Pakistan’s real estate industry.

The government promised the IMF that it would activate the Real Estate Regulatory Authority as part of the proposed reforms.

Sources claim that people and brokers who inflate property valuations will face severe consequences, such as fines and jail time.

Agents who do not register may be fined up to Rs500,000, according to sources.

The Real Estate Regulatory Authority has the authority to inflict a maximum sentence of three years in prison. Agents that give misleading information risk having their licences revoked by the authority.

Agents who give false information risk fines ranging from Rs200,000 to Rs500,000.

Fines for property transfer misstatements might range from Rs 500,000 to Rs 1 million.

The new rules are intended to stop financial fraud and increase openness in the real estate industry.

Negotiations for the next $1 billion installment of Pakistan’s $7 billion loan programme with the International Monetary Fund (IMF) started underway Monday.

According to the finance ministry, since Pakistan has previously complied with the most of the IMF’s stringent requirements, formal discussions between the IMF mission and the Pakistani government team were scheduled to last for two weeks.

Continue Reading

Trending