Category: Economy

Pakistan Bureau of Statistics (PBS) released the trade breakup for Jun’20. During the month of Jun’20, exports and Imports both surged by 15% M/M and 30% M/M, respectively. Trade breakup reveals that growth in monthly exports was mainly driven by recovery in textile exports by 28% M/M whereas, the surge in imports came mainly on… Continue reading Trade breakup for Jun’20 reveals surge in Textile Exports and Petroleum Imports

Pakistan’s power projects have few components; energy (variable fuel cost) & capacity (fixed “guaranteed” profits). While the former has softened in wake of falling Coal, Oil & RLNG prices, the devil lies in the detail. Total yearly capacity payments are increasing from Rs ~1trn ($6bn) to Rs ~1.7tr ($10bn) in 5 years. No, the govt… Continue reading Power sector woes – Taking the economic power away

In a recent development, Pakistan has allowed transport of goods from Afghanistan to India via Wagah border, Pakistan. This reaffirms Pakistan’s commitment to a prosperous, independent & peaceful Afghanistan. This matter would surely be appreciated by Afghanistan & the US also in Afghan peace process. However, the Indian exports to Afghanistan have not been allowed… Continue reading Pakistan allows Afghanistan’s exports to India – Belt & Road connectivity?

•State Bank of Pakistan released the remittance numbers for Pakistan today. Inbound Remittances registered a 51% Y/Y increase to $2,466mn in Jun’20. On the monthly basis, remittances rose by 32% from USD 1,866mn in May’20 to USD 2,466mn in Jun’20. In the FY20 period, remittances increased by 6% Y/Y from USD 21.7bn to USD 23.1bn.… Continue reading Remittances surge by whooping 51% Y/Y to $2,466mn in Jun’20

History bears witness to the fact that Pakistan always has tendency to resort to myopic solutions to deep rooted structural problems. One such arena is trade. Despite prodigious claims, successive governments have failed to make their mark in trade forte. There is a famous proverb in Urdu that translates into “live within your mean” or… Continue reading Pakistan’s Trade Enigma

One of Pakistan’s chronic issues is low tax collection. Be it the rampant culture of corruption, bribery & smuggling or the swamps on undocumented economy. Our Tax collection at 10-11% of GDP is just not enough to pay for salaries, pension, debt, defence & development. Under the IMF program, the core issue to address is… Continue reading Pakistan Tax Collection – Off the cliff but creeping up

Pakistan Bureau of Statistics released the CPI Inflation data for Jun’20. CPI Inflation clocks in at 8.6% Y/Y during Jun’20 compared with a reading of 8.2% recorded during May’20 and 8.0% during Jun’19. On a cumulative basis, average inflation is 11.0% during FY20 compared with 6.8% recorded during FY19. Food Inflation offset the drop in… Continue reading CPI Inflation ends FY20 with 8.6% YoY in Jun’20