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The IMF demands that Pakistan “increase” gas prices.

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7 months ago

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Sources claim that starting in August, the IMF is planning to raise gas prices for the domestic, fertilizer, CNG, and cement industries. Protected and non-protected consumers would see increases ranging from Rs 100 to Rs 400 per month.

Tandoors included, the IMF does not recommend raising the price of gas for commercial users.

According to the sources, three strategies have been presented to the IMF to minimize circular debt in the gas sector. A dividend system has also been discussed as a means of achieving this objective.

Furthermore, the IMF has suggested raising gas prices for plants that fertilize land.

The sources went on to say that there is an understanding reached regarding promptly providing the IMF with data regarding tariffs, reforms, and subsidies.

A tax on monthly pensions over Rs 100,000 was previously sought by the International Monetary Fund mission to Pakistani authorities.

The IMF delegation ‘requested’ Pakistani authorities to raise the general sales tax (GST) to 18% prior to this demand.

The Pakistani sales tax collection system is having issues, according to the IMF mission, since the provinces are collecting sales tax on services while the center is collecting sales tax on commodities.

They recommended the federal government should be the single entity in charge of collecting sales taxes. According to the reports, the foreign lender also insisted on raising the GST rate from 18% to 20% on goods and services.

In the fourth round of negotiations, the mission also required Pakistan to create a new regulatory body and implement reforms in the insurance sector. The fund also called for the sale of three insurance businesses that were held by the government.

The reason the IMF delegation is in Pakistan right now is that Islamabad wants to participate in another program offered by the international lender to help with the funding shortfall.

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

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6 days ago

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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.

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

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1 week ago

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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.

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The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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