Business

Pakistan sees $3.8bn inflows in four months of FY24 amid forex crunch

Published

1 year ago

Farwa

IMF inclined for a downward revision of forex reserves projection.
EAD in its figures does not include inflows from IMF.
EU and EIU yet to disburse any loan amount in current fiscal year.

ISLAMABAD: Amid dwindling official foreign exchange reserves despite signing a $3 billion IMF programme, Islamabad has secured $3.8 billion from multilateral and bilateral creditors in the first four months (July-October) period of the current fiscal year 2023-24, The News reported Tuesday.

The official figures of the Economic Affairs Division (EAD) did not incorporate the $1.2 billion disbursed by the IMF after approval of the $3 billion Standby Arrangement (SBA) program. So, the total dollar inflows in the shape of loans totalled $5 billion.

Now the IMF also seems inclined to downward revise the projection on account of gross foreign exchange reserves as it might witness a reduction from $12.9 billion to around $11.6 to $11.9 billion by the end of the ongoing financial year.

The government has projected total foreign loans of $17.619 billion for the current fiscal year.

In the official projection, the government had included $2.4 billion from the IMF for the current fiscal year. Although, Pakistan had signed a $3 billion SBA programme out of which $1.2 billion was so far disbursed by the Fund in August 2023. Now another IMF tranche of $700 million was expected to be disbursed after securing approval of the Fund’s executive board.

In this scenario, all projections on account of Gross Official Reserves, Net International Reserves (NIR), Current Account Deficit and dollar inflows in the shape of foreign loans were changed for the current fiscal year.

According to the disbursement of foreign loans received by Pakistan showed that Pakistan received $318.1 million during October 2023.

Islamabad had secured $3.52 billion in the first three months (July-September) period of the current fiscal year. Pakistan had obtained a guaranteed loan of $508.34 million.

The disbursement of loans from the Asian Development Bank (ADB) stood at $87.5 million in the first four months of the current fiscal year. From AIIB, the total disbursed loan amount stood at $27.86 million. The European Union (EU) and EIU have not disbursed any loan amount so far in the current fiscal year.

The World Bank’s IDA loan disbursement stood at $303.43 million and the IBRD loan of $67.28 million. The IFAD has disbursed $11.43 million, IsDB $100 million and OPEC Fund $0.01 million in the first four months of the current fiscal year.

The multilateral creditors in totality disbursed $597.49 million during the first four months of the current fiscal year. All bilateral creditors disbursed $435 million in the first four months out of which the Kingdom of Saudi Arabia disbursed $400 million for the oil facility during the July-Oct period of the current fiscal year.

The government also received $2 billion in the shape of time deposits from KSA in the current fiscal year. The government has not generated any international bonds so far in the current fiscal year.

Minister for Finance Dr Shamshad Akhtar had already announced the shelving of the plan to raise $1.5 billion in international bonds. Pakistan received $306.26 million in the shape of Naya Pakistan Certificates in the first four months.

The foreign exchange reserves held by the SBP had declined from $8.1 billion on July 23, 2023 to $7.3 billion on November 10, 2023 mainly because of repayments on external debt fronts during this period.

Business

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

Published

17 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.