Tag: FiscalDeficit

October 24, 2020: Financial Action Task Force (FATF) has acknowledged that Pakistan has made progress across all action plan items and has now “largely addressed”21 of the 27 action items.

According to Foreign Office, the FATF reviewed Pakistan’s progress on FATF action plan in its Plenary meeting today.

The plenary meeting decided to maintain status quo with respect to classification of Pakistan, for the time being.

The FATF has taken note of the significant progress made by Pakistan on a number of action plan items. Recognizing Pakistan’s sustained and irreversible efforts on implementation of FATF Action Plan, the FATF has upgraded overall 9 Action Plan items in its October 2020 Plenary. There is no item remaining in the incomplete” category. It is pertinent to mention here, prior to this plenary, Pakistan had addressed 14 out of 27 items and now FATF reviewed compliance of remaining 13 Action Plan Items during current plenary.

The action plan items that have been addressed by Pakistan include highly important areas of Financial Sector, illegal Hawala/Hundi, cross-border currency regime, international cooperation in terrorist financing cases, amendments to the Anti-Terrorism Act, implementation of targeted financial sanctions by financial institutions, applying sanctions for AML/CFT violations, and controlling facilities and services owned or controlled by designated persons and entities. This is indicative of the confidence of FATF on the efforts of Pakistani Government.

Pakistan shall continue to make efforts to complete the remaining items in line with its strategy by February 2021. FATF will undertake the next review of Pakistan’s Progress in February 2021.

The Plenary meetings of FATF were held virtually from 18-23 of this month, where its members discussed a variety of topics including Pakistan’s progress.

The Pakistan team led by Minister of Industries and Production Muhammad Hammad Azhar, attended these virtual meetings. Pakistan presented its case in an effective manner and also reaffirmed its political commitment to continue with the efforts to complete the Action Plan.

Radio Pakistan

October 24, 2020 (MLN): The gross sale of securities by overseas investors during the week ended October 16, 2020 was recorded at Rs.9.6 billion, which is only 3.6 percent higher than the figures recorded last week.

According to a weekly report on Specially Convertible Rupee Accounts (SCRA) released by the State Bank of Pakistan, the total purchase of securities stood at Rs.6.8 billion, which is 13.5 percent lower than the prior week.

Consequently, the net sale of securities for the week clocked in at Rs.2.83 billion, i.e. around Rs.1.4 billion lower than last week's numbers.

Over the week, the overall purchase of securities declined by Rs.1.06 billion whereas the net sale of securities increased by Rs.330.83 million.

Apart from this, the inflow of remittance into these accounts stood at Rs.2.18 billion, while its outflow has been reported at Rs.6.14 billion.

The closing balance of SCRA was recorded at Rs.28.58 billion, which marks a decline of Rs.869.33 million over the week.

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October 24, 2020 (MLN): The non-government sector has borrowed a net sum of Rs.18.31 billion during the week ended October 16, 2020, which brings the cumulative net retirment for ongoing fiscal year FY2021 to Rs.122.85 billion. The net retirement as of prior week was recorded at Rs.141.15 billion.

According to weekly data released by the State Bank of Pakistan, the sector's retired amount has risen by Rs.94.24 billion over the year since the amount retired as of corresponding period of last year was recorded at Rs.28.61 billion.

The non government sector is divided into three broad categories namely, the Private Sector, the Public Sector Enterprises and NBFI. Commercial banks are the main source of financing for the private sector, incuding conventional banks, islamic banks and islamic branches of conventional banks.

This fiscal year, the private sector retired a net sum of Rs.110.63 billion, whereas the PSE's have retired Rs.17.2 billion and NBFI has borrowed Rs.4.98 billion.

As we disintegrate the inflows and outflows within the private sector, we see that Conventional Banks were retired a cumulative sum of Rs.140.97 billion, Islamic Banks lent Rs.8.53 billion and lastly the Islamic branches of Conventional Banks lent Rs.21.81 billion.

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October 24, 2020 (MLN): The government of Pakistan has retired Rs.187.48 billion during the week ended October 16, 2020, which brings its total net borrowing for ongoing fiscal year 2021 to Rs.72.04 billion. As of prior week, the government had borrowed a net sum of Rs.259.52 billion.

According to the State Bank of Pakistan's weekly estimates in this regard, this year's overall net borrowing as of this week has decreased by Rs.194.4 billion over the year as last year's net borrowing for the same period stood at Rs.266.44 billion.

The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations and others.

Split three ways between these broad categories, the cumulative net borrowing for budgetary support was Rs.133.85 billion, while that for other purposes stood at Rs.1.31 billion. On the contrary, a net total of Rs.63.13 billion were retired off Commodity Operations.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs.268.87 billion by the government, out of which the Federal Government retired Rs.220.98 billion, the Provincial Government retired Rs.27.91 billion, AJK Government retired Rs.13.43 billion, and the GB Government retired Rs.6.55 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs.402.72 billion out of which the Federal Government borrowed Rs.380.25 billion while the Provincial Government borrowed Rs.22.47 billion.

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