Business

Initiatives to Raise the Tax-to-GDP Ratio: Aurangzeb

Published

3 months ago

Farwa

Pakistan is beginning discussions with the IMF for Climate Resiliency Funding, and the Finance Minister has stated that reprofiled talks with China are positive as the country attempts to extend payment times.

China has responded positively to Pakistan’s request to extend the maturities of debt related to the Belt and Road program, the Finance Minister stated in a Bloomberg interview.

The nation wants to “create enough space” to reduce electricity, according to Muhammad Aurangzeb, by lengthening the maturities of debt taken out for power plants.

“These are the early stages of those negotiations,” he stated. The former banker for JPMorgan Chase & Co. visited China in July and spoke with Chinese officials about debt.

To avoid having to borrow from the IMF again, he said, the nation must continue to exercise self-control in order to raise the tax-to-GDP ratio from below 10% to 13.5%.

With 25 IMF programs, he said, Pakistan is one of the most frequent borrowers. While the Pakistani delegation is attending the conference in Washington, the government hopes to start talking about asking the IMF for more funding through its Climate Resiliency Fund.

Pakistan would target industries like retail and agriculture that have resisted past taxation initiatives in order to achieve its objective, he added. By January, the provinces of the country will begin working on agriculture-related laws, with the goal of beginning collection by July.

The central bank of Pakistan has lowered its benchmark interest rate by 450 basis points, from a record 22% to 17.5%, for three consecutive meetings, he added. The policy rate may be lowered by the Central Bank during its upcoming meeting on November 4.

Business

The price of gold in Pakistan has significantly decreased.

Published

16 hours ago

Farwa

On Tuesday, the price of gold in Pakistan experienced a significant decrease, mirroring global market patterns.

The price of 24-karat gold per tola in the local market declined by Rs2,700, reaching a record high of Rs286,400, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10 grams of 24-karat gold dropped by Rs2,315, taking it to Rs245,541.

Additionally, the price of gold in Pakistan has declined further.

In the global market, the price of gold decreased by $26 on Tuesday, settling at $2,741 per ounce, with an additional premium of $20.

The price of silver in the local market fell by Rs32 to reach Rs3,363 per tola.

Business

This year, SBP plans to issue new banknotes.

Published

22 hours ago

Farwa

State Bank of Pakistan (SBP) Governor Jameel Ahmad declared Monday that the central bank will begin issuing new currency notes in the second half of 2025.

One denomination at a time, these new notes with enhanced security features will progressively replace the present series.

The SBP wants to get the federal cabinet to approve the new notes in the next two to three months, ideally by June 2025, Ahmad clarified.

Instead than introducing all the denominations at once, the rollout will happen gradually.

Ahmad did not, however, indicate which denomination would be made available first, saying that the choice has not yet been made. The current denominations of Pakistani currency notes are Rs. 10, Rs. 20, Rs. 50, Rs. 100, and Rs. 500 Rs1,000, and Rs5,000.

Business

Dhabeji Special Economic Zone: A Project Between Pakistan and China Will Generate 100,000 Jobs and Draw $3B in Investment

Published

22 hours ago

Farwa

The “Dhabeji Special Economic Zone” would be established within the China-Pakistan Economic Corridor, according to an agreement the government has signed with both Chinese and local businessmen.

The area will have direct access to international commerce routes because to its advantageous location close to Karachi’s ports.

The project is anticipated to generate over 100,000 employment and $3 billion in investment. This collaboration represents a significant advancement in China-Pakistan industrial cooperation.

In the second phase of the China-Pakistan Economic Corridor (CPEC), the Dhabeji Special Economic Zone will be constructed using a public-private partnership model. It is anticipated to be a major gathering place for foreign and domestic investors, especially Chinese companies.

The SEZ seeks to boost exports, encourage industrial growth, and improve Pakistan’s economic independence.