Category: Highlights

The International Monetary Fund (IMF) as well as other multilaterals has come under considerable criticism in recent months with respect to their harsh upfront monetary and fiscal policy conditions that have eroded Pakistan’s growth rate, raised unemployment levels, fuelled inflation through administered pricing of utilities and has contributed to a sustained erosion of the rupee against the dollar. Two observations are critical. First, Pakistan is currently on its 23rd IMF programme, with each programme typically of three-year duration, which implies the country has been on a Fund programme for around…

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The Islamic Development Bank (IDB) has approved $252 million loans to Pakistan for two projects — the construction of Mohmand Dam in Khyber Pakhtunkhwa and for anti-Covid vaccine support in the country. The approval from the bank’s board of directors was conveyed by IDB President Dr Muhammad Sulaiman Al-Jasser to Minister for Economic Affairs Omar Ayub Khan at a meeting in Islamabad, the ministry said on Monday. A financing agreement of $72.5m for obtaining Covid-19 vaccines was signed by the Jeddah-based bank and the economics ministry. Dr Al-Jasser updated the…

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The cost of generating electricity has increased close to 85% in just one year, going up to Rs6.32 kWh in November 2021 compared to Rs3.42 kWh during the same month last year. The increase in cost has come mainly due to a rise in cost of furnace oil, coal and Regasified Liquefied Natural Gas (RLNG), according to a note by brokerage house Ismail Iqbal Securities. Interestingly, the generation mix reveals lower dependence on RLNG in November 2021, with gas and nuclear sources of power stepping up to cover the void.…

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Pakistan’s petroleum group imports surged up 112.3 percent to $8.340 billion in the first five months of the current fiscal compared to $3.947 billion in the corresponding period of last fiscal. “The global price of petroleum products caused the massive surge in the import of petroleum groups, with increased quantity of these products also adding its share in it,” said Arsalan Hanaif, analyst at Arif Habib Limited. According to official data, imports of petroleum group jumped up 180.5 percent to $2.183 in November this fiscal compared to $778 million in…

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U.S. oil demand and inventories have offered support to oil prices in recent months and, volatility excluded, have continued to do so, with stocks below the five-year average for this time of the year. While oil prices have swung in recent weeks between as high as $85 in late October to below $70 in late November amid fears of Omicron denting demand and a looming oversupply, lower-than-usual American stockpiles have been one constantly bullish theme for oil, especially the U.S. benchmark, WTI Crude. Coupled with robust U.S. gasoline demand and…

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