Business

Contraction in LSM output dims prospects of growth this fiscal year

Published

2 years ago

Farwa

PBS data shows LSM output drops by 25% in March.
Big industries output witnessed highest-ever decline since COVID-19.
Steep contraction will increase pace of inflation, put jobs at risk.

ISLAMABAD: A steep contraction in output of large-scale manufacturing (LSM) in March has faded the prospects of achieving a positive growth figure, The News reported Tuesday.

The delay in the revival of the International Monetary Fund (IMF) programme has choked the economy consequently the LSM contracted massively; as a result, it can halt economic activities, boost already-high inflation and increase unemployment.

Although the Ministry of Finance has projected a provisional GDP (gross domestic product) growth rate of positive 0.8% in its revised estimates, the latest figures of LSM for March 2023 demonstrate that it remained negative by 25%, compared to the corresponding month of the last year.

The big industries’ output witnessed the highest-ever decline since COVID-19 pandemic. In the first nine months (July-March) of the outgoing fiscal year, the LSM witnessed a contraction of 8.1%.

“Keeping in view the performance of the industrial and agriculture sector, the provisional growth figure may turn into negative up to -1%. Earlier, the efforts were underway for turning the provisional figure into positive ranging from 0 to 0.5%,” sources confirmed to The News.

The National Accounts Committee (NAC) is scheduled to hold its meeting within the ongoing week to calculate the provisional growth figures for the outgoing financial year 2022-23.

Dr Khaqan Najeeb, former finance ministry adviser, said the industrial sector had been unable to secure letters of credit due to the country being in a dollar liquidity crunch.

The lack of access to imports has hurt industrial production as evident in the fall of LSMI output by 8.11% in the first nine months (July-March) of 2022-23.

“The revival of the IMF programme would have ensured a flow of dollars from multilaterals, bilateral and commercial monies to ease the imports and unclog the economic activity,” he said.

“It is likely that growth would be muted in the outgoing fiscal year with a contraction in the manufacturing and agriculture sector. This would create further unemployment and rise inflation due to shortfall in supplies,” he concluded.

Business

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

Published

22 hours 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.