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Dollar crunch to force import suspension of eatables, drinks in Pakistan

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1 year ago

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  • Grocers association says all banks have refused to provide dollars. 
  • No shipment would be cleared that was dispatched after June 25.
  • Importers responsible for clearance of goods that have reached.

KARACHI: Owing to the non-availability of dollars, commercial importers have announced to stop the import of all eatables and drinks from June 25, The News reported Monday.

According to a statement issued by Karachi Wholesale Grocers Association Secretary Farhat Siddique, all banks have refused to provide them with dollars. 

After a thorough discussion, the association decided that importers should inform their indenters that no shipment should be dispatched after June 25. 

The importers are only responsible for the clearance of goods that have reached the port or are on the way. No shipment would be cleared that was dispatched after June 25. 

The association lamented that due to lack of foreign currency, thousands of containers are stuck at the port and they are paying fines and other charges on them.

The statement said the State Bank of Pakistan (SBP) is not providing the much-needed foreign exchange and its policies are extremely harmful to the country’s economy.

Left with barely enough foreign exchange reserves to cover one month’s imports, the coalition government is desperately trying to manage a balance of payments crisis and bring inflation under control after it hit a record of nearly 38% last month.

The dollar crunch, restrictions on imports, and delay in opening letters of credit have severely affected several sectors of the country as none of them met the growth targets set for the fiscal year 2022-23.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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