Pakistan to bounce back with 'modest' growth in FY2019-20: IIF

Pakistan is expected to bounce back with modest growth during the current fiscal year but a widening deficit and growing debt still pose risks to its economic outlook.

“We expect Pakistan to experience modest growth in FY2020/21 following a small contraction in FY2019/20,” the Institute of International Finance has said in its latest report.

“However, risks to the economic outlook are tilted to the downside. Recurrent outbreaks of Covid-19, a large fiscal deficit and high public indebtedness remain major challenges.”

The Washington-based global association of financial institutions said the economy could grow by 1.8% in FY2020/21, driven by some recovery in private consumption.

The country’s exchange rate is market-determined and has depreciated by 22% in real effective terms since 2017.

“The effects of currency depreciation and weaker domestic demand are visible, as imports dropped by 18% in nominal dollar terms, more than offsetting the decline in exports of 7% in FY2020,” the institute said in the report, “Pakistan: Commitment to Reform Faces a Test”.

The pandemic led to a contraction in output of 0.7% in FY2020.

Domestic demand declined 2%, while exports of goods and services increased 1.6% as compared with a decline of 7.3% in imports of goods and services.

Adjusted for population, fewer cases and deaths of Covid-19 have been recorded in Pakistan than in other developing and emerging economies. These results are subject to a large degree of uncertainty, as data quality, testing capacity, and transparency vary.

The IIF said lockdown restrictions have been lifted across the country. The response measures have been adequate, supported by the IMF’s emergency financing thourgh an amount of $1.4 billion, provided in April.

Expansion of social programs has rightly focused on tackling the health emergency and supporting the most vulnerable while stimulating economic activity, the report argued.

The State Bank of Pakistan’s proactive liquidity initiatives and lower policy rates are propping up economic activity and safeguarding financial stability, according to the IIF.

The policy rate has been lowered five times since February, a cumulative reduction of 625 basis points.

The authorities have also introduced a fiscal stimulus package in the amount of $5.1 billion, which included direct transfers to wage workers and poor families, financial support to SMEs and the agricultural sector, higher subsidies for basic goods, and various tax incentives.

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PDMA forecast another moonsoon rain bearing system

Pakistan Meteorological Department forecast another monsoon spell bringing rain and wind-thundershowers to Karachi and other parts of Sindh province with “heavy to very heavy showers” from Saturday evening.

The monsoon season in Karachi is expected to receive yet another episode of hammering showers starting from August 30 to August 31 in Sindh and Balochistan provinces, PMD said in its forecast.

The new system is expected to bring heavy rains in Karachi, Hyderabad, Thatta, Badin, Shaheed Benazirabad, Dadu, Tharparker, Nagarparker, Mirpurkhas, Islam Kot, Umar Kot, Sanghar, Sukkur and Larkana.

In Balochistan, rain and thundershowers with isolated heavy falls are also expected in Lasbella, Khuzdar, Awaran, Barkhan, Zhob, Musa Khel, Loralai, Kohlu and Sibbi during the period.

Rain and thundershower are also expected in Bahawalpur, Rahim Yar Khan, Khanpur, Rajanpur, Dera Ghazi Khan, Multan, Khanewal and Sahiwal during the period.

The Met Office issued a warning of urban flooding in Karachi, however, the chief meteorologist said that the system to effect Karachi is relatively “weak” which may mean isolated light to heavy rains across the city.

The city of lights was devastated after receiving unprecedented rains since Thursday as many areas are still flooded with rainwater.

Almost all the major roads of the city including II Chundrigar Road, University Road, Shahrae Faisal were inundated with no sign of them being cleared anytime soon.

The death toll from the devastation caused by yesterday’s record-breaking monsoon rain in the port city has jumped to 21, according to police and rescue sources.

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PDMA forecast another moonsoon rain bearing system

Pakistan Meteorological Department forecast another monsoon spell bringing rain and wind-thundershowers to Karachi and other parts of Sindh province with “heavy to very heavy showers” from Saturday evening.

The monsoon season in Karachi is expected to receive yet another episode of hammering showers starting from August 30 to August 31 in Sindh and Balochistan provinces, PMD said in its forecast.

The new system is expected to bring heavy rains in Karachi, Hyderabad, Thatta, Badin, Shaheed Benazirabad, Dadu, Tharparker, Nagarparker, Mirpurkhas, Islam Kot, Umar Kot, Sanghar, Sukkur and Larkana.

In Balochistan, rain and thundershowers with isolated heavy falls are also expected in Lasbella, Khuzdar, Awaran, Barkhan, Zhob, Musa Khel, Loralai, Kohlu and Sibbi during the period.

Rain and thundershower are also expected in Bahawalpur, Rahim Yar Khan, Khanpur, Rajanpur, Dera Ghazi Khan, Multan, Khanewal and Sahiwal during the period.

The Met Office issued a warning of urban flooding in Karachi, however, the chief meteorologist said that the system to effect Karachi is relatively “weak” which may mean isolated light to heavy rains across the city.

The city of lights was devastated after receiving unprecedented rains since Thursday as many areas are still flooded with rainwater.

Almost all the major roads of the city including II Chundrigar Road, University Road, Shahrae Faisal were inundated with no sign of them being cleared anytime soon.

The death toll from the devastation caused by yesterday’s record-breaking monsoon rain in the port city has jumped to 21, according to police and rescue sources.

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Gold prices again inceases by per tola in domestic market

The per tola gold price witnessed an increase of Rs 1,000 to Rs 117,500 in the domestic market.

Likewise, the price of 10-gram gold witnessed an increase of Rs 857 and was traded at Rs10,0737, said All Pakistan Jewelers Association.

According to Reuters, gold rebounded over 2% on Friday, a day after a steep sell-off, as the U.S. dollar weakened and the U.S. Federal Reserve signaled a prolonged low interest rate strategy.

Spot gold rose 1.8% to $1,964.47 per ounce by 02:25 p.m. EDT, taking gains this week to about 1.3%. Prices fell as much as 2.2% on Thursday after U.S. Treasury yields gained following a speech by Fed Chair Jerome Powell on the strategy. U.S. gold futures settled up 2.2% at 1,974.90.

Earlier on August 26, the gold prices had declined by Rs500 per tola and was traded at Rs116000 in the domestic market.

Likewise, the price of 10-gram gold had witnessed a decrease of Rs 428 and was traded at Rs99451, said All Pakistan Jewelers Association. Meanwhile, gold rates in the international market had fallen by $8 to $1,917 per ounce.

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13 special economic zones being set up in Punjab: Buzdar

Punjab Chief Minister Sardar Usman Buzdar says for the first time in history of Pakistan, thirteen special economic zones are being set up in Punjab.

He was taking to the Ambassador of United Arab Emirates Hamad Obaid Ibrahim Salem Al-Zabi in Lahore on Saturday.

He said that special facilities will be provided for investment in Special Economic Zones and Ravi River Urban Development Project.

During the meeting, they discussed issues of mutual interest, promotion of bilateral relations and cooperation in various fields including housing, industry, trade and business sectors.

UAE Ambassador appreciated Punjab Government's effective strategy to deal with Corona pandemic and said that UAE will like to enhance mutual cooperation with the Punjab government in various fields.

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9th Muharram being observed countrywide today

The 9th of Muharram is being observed throughout the country on Saturday with due solemnity and sanctity to pay homage to the sacrifice rendered by Hazrat Imam Hussain (A.S) and his companions in Karbala.

Taazia and Zuljinah processions will be taken out in different parts of the country today in memory of martyrs of Karbala.

Ulema and Zakireen will shed light on the bright and candid teachings of Hazrat Imam Hussain and his great companions.

In Islamabad, the main procession of Taazia and Zuljinah will be taken out from Markazi Imambargah G-6/2 and it will terminate at the same place after passing through the traditional route.

Elaborate security arrangements have been made to avoid any untoward incident during the mourning processions.

Special traffic plan for the processions of 9th of Muharram-ul-Haram has also been chalked out.

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CM Balochistan reviews Covid-19 situation

Chief Minister Balochistan Jam Kamal Khan chaired a high level meeting held in Quetta and reviewed matters pertaining to coronavirus situation and opening of educational institutions in the province.

During the meeting, the Chief Minister constituted a committee comprised of provincial secretaries of Health, Education, Information Technology departments and Chief Minister Delivery Unit to form a comprehensive guideline for making SOPs for educational institutions. The committee will submit its recommendations within four days.

The meeting agreed for preparation of a comprehensive mechanism for opening educational institutions under which the teachers and students could be prevented from COVID-19.

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