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What’s Israel-Hamas war’s impact on global economic outlook?

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1 year ago

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After indicating increased optimism about controlling global inflation brought on by the pandemic and Russia’s invasion of Ukraine in 2022, the start of a war in the Middle East may force central bankers to battle fresh inflationary trends and inflict a hit on economic confidence.

Israel on Sunday officially declared a state of war after a surprise attack by Hamas a day earlier, resulting in hundreds of deaths adding to the sense of global instability caused by Russian military actions almost 20 months ago.

So far, the impact of the Israel-Gaza war on global inflation remains unclear as it depends on how long the conflict lasts, how intense it becomes, and whether it spreads to other parts of the region.

“It’s too early to say what the implications may be, though oil and equity markets may see immediate fallout,” Agustin Carstens, general manager of the Bank for International Settlements, said in a presentation to the National Association for Business Economics (NABE).

However, the war has the potential to add an unpredictable set of dynamics to a weakening global economy.

Additionally, it may also affect US markets that are still adjusting to the possibility that the Federal Reserve would keep interest rates high for longer than many investors had anticipated, Reuters reported.

“Any source of economic uncertainty delays decision-making, increases risk premia, and especially given that region…there is an apprehension about where oil is going to open,” said Carl Tannenbaum, chief economist with Northern Trust.

“The markets will also be following what the scenarios are looking like,” he said, and whether, after decades of instability in the Middle East, this outbreak of violence evolves differently.

“The question will be is this iteration something that will throw the long-term equilibrium out of balance?”

That and related issues will likely vault high on the agenda of global financial leaders gathering this week in Morocco for meetings of the International Monetary Fund (IMF) and World Bank to take stock of a global economy that remains in a deep state of flux from the pandemic and rising trade tensions.

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Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

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Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

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As the MPC meeting draws closer, stocks rise.

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2 days ago

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On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

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FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

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4 days ago

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The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

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