Tag: Economy

June 17, 2019 (MLN): The governor of State Bank of Pakistan Raza Baqir, in a press conference held today, said he was pleased to play a role in the overall process of reaching an agreement with the IMF, as he had a prior experience of working with the fund.

He informed that IMF will be holding a board meeting on July 3, 2019, following which all the important documents shall be made public.   

“Historically, we have seen that the economy has benefited greatly from IMF in the form of sharp improvement in asset market, equity market and remittances”, he said.

He said that the remittances sent by overseas investors had also increased significantly after the agreement, as these investors got a signal that the economy was being supported financially by international communities.

He assured that Pakistan was heading towards stability as the economic team of the country, which comprises of Central Bank, was striving hard to address and overcome the issue of twin deficits.

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June 17, 2019 (MLN): The government will not borrow funds from the State Bank of Pakistan (SBP) in upcoming fiscal year 2019-2020, said governor central bank Mr. Reza Baqir.

At a press conference that aired live on SBP’s official social media handle, the governor spoke on Pakistan’s economic outlook and the role of SBP in it, stating that instead of borrowing from the SBP, the government will borrow directly from the market.

“We have adopted market based policy and SBP will monitor the demand and supply within the economy,” he said.

Apart from this, he also opined that free float is not suitable for the Pakistan. Sentiments sometimes cast a shadow on the fundamental requirements and free float is not our policy, he said.

Upholding the persistently sliding value of PKR at interbank, the governor said that depreciation helps in improving the external deficit, adding that the government has resolved to put the economy back on track and is taking suitable steps to reduce the twin deficit.

“While the exchange rate change has helped control the imports we are working on several other proposals to increase exports. The currency has recently witnessed a two way movement. Before Eid, the rupee hit 152 per USD and also saw the 148 per USD level.”

He pointed out that the inflows surged which had helped the local currency to gain, however it depreciated because of seasonal factors.

“Before June close several companies have to clear their debts which put a heavy pressure of the rupee.”

The incumbent government’s primary aim is to reduce uncertainty and to reduce poverty from the country.

In response to a representative for Mettis Link News, when asked if the SBP is comfortable with the positive interest rate differential between interest rates and the rate of inflation, governor SBP responded that for the future, “we would like to add flexible inflation targeting framework and would give target assessments in July at the next Monetary policy meeting where we will assess the inflation data and see whether further tightening is a requirement."

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Jun 17, 2019: Federal government has allocated Rs 533,261 million share in federal divisible pool 2019-20, inclusive of one percent war on terror for Khyber Pakhtunkhwa province.

The PSDP document revealed that the share of KP has been increased by Rs 129,230 million as compare to the outgoing fiscal year 2018-19.

It said that during the current fiscal year Rs 426,095 million share was earmarked which was later revised to Rs 4040,031 million.

The official document further new NFC award would be announced as soon as the consensus among all stakeholders is arrived on 9th NFC award. However, the ongoing 7th NFC award will remain operative till a new award is concluded and implemented.

APP

Jun 17, 2019: The Indus River System Authority (IRSA) Monday released 294,200 cusecs water from various rim stations with inflow of 250,700 cusecs.

According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1393.15 feet, which was 7.15 feet higher than its dead level of 1,386 feet. Water inflow in the dam was recorded as 91,500 cusecs while outflow as 106,000 cusecs.

The water level in the Jhelum River at Mangla Dam was 1159.30 feet, which was 119.30 feet higher than its dead level of 1,040 feet whereas the inflow and outflow of water was recorded as 56,000 cusecs and 85,000 cusecs respectively.

The release of water at Kalabagh, Taunsa and Sukkur was recorded as 170,400, 144,400 and 26,200 cusecs respectively.

Similarly from the Kabul River, 58,000 cusecs of water was released at Nowshera and 15,300 cusecs from the Chenab River at Marala.

APP

Jun 17, 2019: The Federal Government has allocated Rs15 billion for multifaceted Mohmand dam in Public Sector Development Program (PSDP) 2019-20, a project for which the Government ran massive fund raising campaign and generated over Rs9 billion, indicating PTI's Government resolve to expeditious completion of the mega project to overcome energy crisis in the country.

The federal government allocation would help ensure its expeditious completion of the mega project with capacity to generate 800 megawatt electricity and water storage of 1.2 million acre feet (MAF) for benefits of the country.

"With allocation of such huge amount, it has been cleared now that the government has showed unflinching resolve and commitment to complete this much delayed project at earliest to meet the country's energy and water requirements besides provision of clean drinking water facilities to the inhabitants of Peshawar," senior economics Sumbul Riaz told on Monday.

She said thousands of acres of land especially in northern districts of Khyber Pakthunkhwa including Charssadda and Mohmand tribal districts would be irrigated after its construction besides give enormous boost to agriculture, horticulture, floriculture and others key sectors in the province.

On May 2, 2019, Prime Minister Imran Khan has performed the ground breaking of this much-awaited Mohmand dam project.

Mohmand dam is being constructed on River Swat about 48 kilometers from Peshawar in Mohmand tribal district and the dam's reservoir area extends upstream to Mohmand and Bajaur districts in Khyber Pakhtunkhwa.

Its construction will help national power policy achieve the dual goals of meeting Pakistan's energy needs in a sustainable manner and ensuring generation of affordable electricity, while helping to reduce existing energy's supply gap.

The senior economist said PTI govt has presented a goal-oriented and energy friendly budget in which much maximum amount was allocated for dams projects including Rs 20 billion for Diamir Bhasha dam and land acquisition, Rs15 billion for Mohmand Dam and Rs 54.68 billion for Dasu Kohistan Hydropower Project.

She said the construction of 213 meter high Mohmand dam will help counter risk of flood damages in future and its reservoir would control rivers flow and minimize intensity of floods downstream.

Had Mohmand dam been constructed in the past the huge devastations caused by 2010 flood could have been averted to a great extent.

Senior economics Professor Dr Muhammad Naeem said allocation of such huge amount for Mohmand dam in PSDP would help expedite work on this gigantic project on fast track basis.

He said the project will lead to enhance the agricultural capacity and production at downstream through raising two canals at Charsadda district, adding PC-I of Mohmand dam amounting to Rs. 309.556billion including land acquisition and resettlement has been approved by ECNEC.

The project is scheduled to be completed in five years and on completion will store about 1.2 million acre feet (MAF) of water that would bring green revolution in the province.

The project will alleviate poverty by providing job opportunities to thousands of people and labourers besides locals in the project area and its annual benefits are estimated about Rs 51.6 billion.

He said clean drinking water to people of Peshawar is being emerged as serious problems and we need such like dams to fulfill people's potable water demands for next 50 years.

He said the project will supply 13.32 million cubic meter water from Mohmand dam Reservoir to Peshawar city.

APP