Weekly Economic Roundup

November 22, 2020 (MLN): The financial snapshot of the country is brought to light with the economic and financial data releases over the course of the week.

  • The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.24% during the week ended Nov 12, 2020, while the SPI increased by 7.7% compared to the corresponding period from last year.
  • Pakistan's Forex Reserves increased by USD 178.70 Million or 0.9% and the total liquid foreign reserves held by the country stood at USD 20,085.60 Million on Nov 13, 2020.
  • Pakistan has posted a current account surplus of USD 382 million in October 2020, taking the FY21 CA surplus to USD 1.16 billion.
  • Pakistan’s trade deficit in services stood at $239 million during October’20, signifying a whopping 185% increase when compared to last month.
  • Pakistan witnessed Foreign Investments of $36.6 million during the month of October 2020, i.e. around 84% lower as compared to the net inflows of $234.3 million received in the same month of last year.
  • China emerged as the largest direct foreign investor in Pakistan during October 2020, with a net direct investment of $228.7 million, followed by Malta and Japan who invested $18.5 million and $17.4 million net respectively, according to SBP data issued.
  • Pakistan’s Power Sector has received the highest net FDI worth $239 million in October’20. During 4MFY21, it fetched a net $352.3 million, showing a 6.69x increase when compared to the net inflows of $52.6 million in the corresponding period of FY20.
  • To support the provision of finance to this sector and especially facilitate affordable housing, SBP has now announced five regulatory relaxations to incentivize banks for financing low cost and affordable housing.
  • Economic Coordination Committee (ECC) evaluated a proposal submitted by the Ministry of National Health Services, Regulations & Coordination and approved, in principle, the provision of a technical supplementary grant of US$ 150 million for the purchase of the COVID-19 vaccine.
  • The imports of vehicles from foreign countries increased by 32.2% MoM to USD 200.8 million during the month of October 2020, compared to USD 151.8 million in September 2020, revealed trade figures released recently by the Pakistan Bureau of Statistics (PBS).
  • Pakistan's outstanding debts as of October 31, 2020 stand at a massive sum of Rs.22.9961 trillion whereas total debt at the end of prior month was Rs.22.9978 trillion, meaning that around Rs.1.67 billion were retired during this month alone.
  • The exports of Chemical and Pharmaceutical Products witnessed an increase of 29.5% MoM and 34.7% YoY to value at USD 107.7 million during the month of October 2020.
  • The imports of the food group into the country were recorded at $559 million in October’20 i.e. around 15.14% YoY higher as compared to the same period of last year, on the back of a 100 percent increase in wheat imports.
  • Cement exports during the month of October 2020 surged by 20.3% YoY and 19.65% MoM to USD 33.25 million from USD27.6 million in Oct’19 and USD27.8 million recorded in the previous month.
  • Textile exports during the month of October 2020, clocked in at a record US$1.3 billion, jumped by 6% YoY and 8.4% MoM.
  • The Asian Development Bank (ADB) has raised 1.83 billion Pakistan rupees ($11.4 million) in the first issue of local currency karakoram bonds by a multilateral development bank of which Pakistan is a member.
  • Cabinet Committee on Privatization (CCoP) considered and approved the “Transaction Structure” for the divestment of 96.6% shares of Heavy Electrical Complex (HEC).
  • The Government has decided to reduce the price of various petroleum products from Nov 16, 2020. The price of Petrol has been reduced by Rs.1.71 per liter while the price of high-speed diesel has been cut by Rs.1.79 per liter. The New Price of Petrol is 100.69/liter and HSD 101.43.

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Posted on: 2020-11-22T15:15:00+05:00