In a meeting with the outgoing and incoming resident representatives of the IMF to Pakistan, Finance Minister Shaukat Tarin made the intentions of the government known towards the extended fund facility programme, and updated them on government's ongoing initiatives.
Looking at Pakistan's commitment to managing the Covid pandemic, the Paris Club of creditor countries decides to extend Pakistan's deadline for debt payment. The country has until December to make the payment, the club said in a statement, without releasing a figure.
Fitch Solutions has predicted Pakistan's GDP to grow by 4.2% in fiscal year 2022 in its latest report, up from 3.9 percent in the FY21. The credit rating agency noted the increase in vaccination rates in the country, while forecasting the burden of imports on growth.
Shaukat Tarin held a virtual meeting with the Executive Secretary of UNESCAP, Ms. Armida Salsiah. He talked about the macro-economic challenges faced by Pakistan and underlined fiscal policies being undertaken to place the economy on a growth trajectory.
Pakistani-American Economist Atif Mian talked about the severity of Afghanistan’s economic situation and said that the country is experiencing “mother of all sudden stops”. He said that the Taliban’s ascend to power will be not as easy as more than two decades ago when the economy was much stable.
The production of cotton in Punjab is expected to touch 4.5 million bales at an increase of approximately 8.5% from last year. Overall cotton production is expected to reach 8.46 million bales.
Trade deficit for the country rose, as the imports grew twice as fast as the growth in exports. The deficit for the month of August reached to an all time high of $4.05 billion, increasing 133.1 per cent year-on-year and 24.4 per cent month-on-month.
While the consumer price index inflation did not increase much compared to last month of July, it recorded a slightly higher increase on a year-on-year bases compared to August 2020. According to a recent government report the inflation is poised to reach 9 per cent due to monetary expansion and increasing prices in international market.
On the condition of implementation of economic reforms by the government, the credit rating agency Standard & Poor’s Global sees Pakistan progressing on economic fronts. It has estimated that Pakistan’s foreign financing needs are covered for the next twelve months, with bilateral and multilateral inflows.
The federal cabinet of Pakistan under the presidency of Prime Minister Imran Khan has approved the redemption of cash for the points earned by remitters under National Remittance Loyalty Programme from October onwards.
As lockdown lifts and Pakistan's manufacturing industries resume operations, investors express confidence and optimism regarding the country's business environment. Due to this, the OICCI upgraded Pakistan by 59pc in its survey.
The reforms will increase the normal limits on access to concessional financing by 34 percent, coupled with the elimination of hard limits on access for the poorest countries. This would increase the flexibility of funds disbursement according to the need of the related countries.