Business

Govt plans to launch $2bn bonds in upcoming budget

Published

2 years ago

Farwa

Govt plans to generate over $22bn through foreign loans in budget.
It failed to launch bonds in outgoing year because of poor credit rating.
It plans to increase salaries and pensions of govt employees.

ISLAMABAD: The government plans to generate $2 billion through the launching of Eurobonds in the upcoming budget for 2023-24.

The budget makers are finding numbers crunching hard for the upcoming budget on account of dollar inflows through foreign loans at a time when the International Monetary Fund (IMF) programme has not been revived.

However, the government plans to generate over $22 billion through foreign loans in the upcoming budget, and numbers crunching is still underway with expectations that Islamabad will be able to generate $2 billion through the launching of Eurobonds in the next fiscal.

The government had planned to launch international bonds in the outgoing fiscal year as well but failed to do so mainly because of the non-revival of the IMF programme, poor credit rating and increased bond rates and risks.

The government has also proposed an income levy on all kinds of assets and increasing withholding taxes on cash withdrawals and registration of motor vehicles in the upcoming budget for 2023-24.

The government also plans to increase salaries and pensions of government employees from grade 1 to 16 and also for employees from 17 to 22 in the range of 30% and 20%, respectively.

The pension bill would be more than the salary bill of the federal government. The total budget outlay has been envisaged over Rs14.2 trillion for the upcoming budget whereby the Federal Board of Revenue’s (FBR) tax collection is fixed at Rs9.2 to Rs9.5 trillion and the non-tax revenue target at Rs2.5 trillion.

In order to achieve a primary balance of 0.1% of GDP, the provinces are expected to generate a 1% revenue surplus in order to achieve the primary balance into a slightly positive range in the next budget. The debt servicing is going to consume a major chunk of Rs7.5 trillion in the next budget.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.