Day: November 19, 2021

Prime Minister Imran Khan has said that the government is providing subsidies and incentivizing the construction industry to help the low-income segment of the society.

The premier was speaking at a ceremony during his visit to the site of 4400 under-construction houses under the Naya Pakistan Housing Project at Farash Town, in the suburbs of Islamabad.

“No government in the past cared for the low-income segment of the society, who had no shelter,” the Prime Minister said after visiting the construction site.

Imran Khan regretted that the previous governments did not pay heed to the basic needs of people including affordable housing. He said the banks were asked to provide mortgages to the people to help them construct a house of their choice.

The Prime Minister said the government offered exemption on taxes to the construction sector and despite the negative impact of Covid-19 all over the world, Pakistan was one of the few countries that kept its construction sector open and people had an opportunity to earn their livelihood.

With regards to Farash Town Apartments, the premier said that of the total 4400 apartments, 2000 houses have been reserved for low-income groups registered under the Naya Pakistan Housing, 400 are for slum dwellers and 2000 for middle income and salaried class people.

Source: Pro Pakistani

The Pakistani Rupee (PKR) continued its extremely volatile and bearish run against the US Dollar (USD) for another day after it depreciated by 56 paisas against the greenback in the inter-bank market today. It hit an intra-day low of Rs. 175.5 against the USD during today’s open market session.

The local currency depreciated by 0.33 percent against the latter and closed at Rs. 175.24 today after it posted losses of 91 paisas and closed at Rs. 174.67 in the inter-bank market on Thursday, 18 November.

The local currency has surpassed its former record low against the USD from 26 October when it closed at Rs. 175.27, and is only a touching distance away from its all-time low of Rs. 175.73 from 12 November.

The Rupee has lost 0.28 percent against the dollar on a Week-on-Week basis, and 2.09 percent and 9.64 percent on Month-to-Date and Year-to-Date bases respectively, according to Capital Stake.

Rupee Spillover

The current account deficit widened from $1.13 billion in September to $1.66 billion in October during the ongoing fiscal year on the back of a moderate decline in exports and remittances and some uptick in services imports, according to the State Bank of Pakistan. Additionally, high energy prices kept the import bill elevated despite a downtick in non-energy imports.

Economic analyst A. A. H. Soomro told ProPakistani,

Current Account is heating up despite depreciation and various demand-reducing measures by SBP and the government. These levels are not sustainable amid rising demand growth and stubborn food and energy prices. It’s time to curb the demand and protect the precious dollars.

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, discussed the Rupee’s interbank showing in a tweet earlier today. He said, “Yesterday, SBP called BANK HEADS & told them to avoid unnecessary buying of $ or breach limit. Banks R told 2avoid guiding importers or tell them to buy $ vs #PKR until it stabilizes.”

He added, “While, Net SBP FX RESERVES is down by $380mn. Market is likely to remain choppy”.

The PKR failed to post gains against the other major currencies as well and posted losses in the inter-bank currency market today.

It lost 44 paisas against the Canadian Dollar (CAD), 18 paisas against the Australian Dollar (AUD), and 15 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR).

The Rupee continued its decrepit sway against the resurgent Euro (EUR) after it posted losses of 40 paisas against the eurozone currency. It also posted losses of 13 paisas against the Malaysian Ringgit (MYR) and eight paisas against the Chinese Yuan (CNY).

Surprisingly, it managed to post gains of 10 paisas against the Pound Sterling (GBP) in the inter-bank currency market today.

Source: Pro Pakistani

The Rawalpindi Chamber of Commerce & Industry (RCCI) on Friday expressed strong reservations over an increase of 150 basis points in the interest rate by the State Bank of Pakistan, taking it from 7.25 percent to 8.75 percent.

In a statement, President RCCI Nadeem Rauf urged the government to withdraw the hike as it would increase the credit cost of commercial banks, ultimately casting a bad impact on the growth of industrial activities and creating more hardships for the Small and Medium Enterprise (SME).

He said the central bank raised its interest rate by a sharp 150 basis points in one go which would discourage the investors considering Pakistan for investment.

Nadeem Rauf said Pakistan needed a quick revival of business and industrial activities to improve the economy which was badly hit by COVID-19. He underlined that the increased interest rate would make the cost of credit unaffordable for the business community.

The RCCI chief observed that the government was already facing pressure on the fiscal deficit. He said the increase in interest rate would heighten the budget deficit. He urged Advisor on Finance Shaukat Tarin to review the SBP announcement and hold a meeting with the business leaders to discuss and devise a new strategy to strengthen the economy.

Source: Pro Pakistani

Ministry of Economic Affairs and Pakistan Institute of Development Economics have signed an MoU for enhancing collaboration in the field of research and public policy analysis.

Secretary Ministry of Economic Affairs witnessed the signing of MoU between the Ministry of Economic Affairs and PIDE Islamabad. The MoU was signed by Zulfiqar Haider, Additional Secretary, EAD, and Vice-Chancellor PIDE, Dr. Nadeem-ul-Haq.

Secretary, EAD, and Vice-Chancellor PIDE, Dr. Nadeem-ul-Haq acknowledged the importance of developing linkages of Academia in the policy-making process and the need for a comprehensive analysis of Foreign Economic Assistance in Pakistan. By signing the MoU, both sides are agreed to promote collaboration in the field of research and public policy analysis with a particular focus on foreign aid and its effectiveness.

In collaboration with the EAD, the ‘Foreign Aid Effectiveness Unit’ will be established in PIDE. The Unit will conduct research on topics related to foreign economic and technical assistance to Pakistan. It will examine the economics of Foreign Economic Assistance by exploring the role of International Finance Institutions, debt management, aid volatility, and their consequences for Pakistan’s economy. It will help the Ministry of Economic Affairs in evidence-based decision-making and set development priorities for short, medium, and long-term commitments.

Secretary Economic Affairs and Vice-Chancellor PIDE agreed to maintain regular and reasonable contact and engage in discussions, events, and conferences regarding research areas pertaining to this MoU.

Source: Pro Pakistani

The Senate approved on Friday the National Accountability Bureau Amendment Ordinance 2021 and the Journalists Protection Bill along with a few other significant bills amid protest by the opposition.

Chairman Sadiq Sanjrani chaired the Senate meeting held at the Parliament House.

Minister for Law, Senator Faraogh Naseem, presented the NAB Amendment Bill in the Senate as a supplementary agenda. The protesting opposition tore down the agenda copies. The Chair asked for counting. There were 34 votes in favor of the bill while 28 votes were against it. The Senate passed the NAB Amendment Bill amidst the prevailing noise by the opposition members who surrounded the Chairman Senate dice and threw the bill copies.

Federal Minister for Human Rights, Shirin Mazari, introduced the Justice System for Adolescents Amendment Bill 2021 in the House. The Chairman Senate referred the bill to the relevant committee.

A bill seeking to protect the journalists called as Protection of Journalists and Media Professionals Bill, 2021, was also passed in the Senate, while it was also opposed by the opposition members.

Meanwhile, members of the government chanted slogans of “Respect the Vote” and “Long live Imran Khan”, while the opposition raised slogans of “Rubber Stamp Parliament”.

The House also passed another two bills, including: “The Higher Education Commission (Amendment) Bill, 2021”, “The Higher Education Commission (Second Amendment) Bill, 2021”.

Earlier, Minister of State for Parliamentary Affairs, Ali Muhammad Khan, said that the kidney and liver transplantation facility would be provided to people at government expenses in the near future.

The minister said that from 2013 to 2018, Pakistan Tehreek-e-Insaf (PTI) government launched the health cards program in Khyber Pakhtunkhwa. Initially, it was up to Rs 500,000, however now it has been increased to Rs. 1 million, he added.

The minister was responding to a question of Senator Seemee Ezdi about the laws framed for regulating the medical profession in Pakistan and controlling the acts of healthcare providers.

He said the Islamabad Healthcare Regulatory Authority (IHRA) was established in 2018 under the Islamabad Healthcare Regulations Act, 2018 to regulate the healthcare sector and ensure the provision of quality healthcare services in Islamabad.

Ali Muhammad Khan informed the House that the government is coordinating with the US authorities for the repatriation of Saifullah Paracha and some other Pakistanis from Guantanamo Bay. Responding to another question, he said seven new educational institutes will be constructed in Islamabad territory. He said 230 new classrooms were built in 31 institutes of the capital.

The minister said the federal government provided over Rs. 39 billion to public sector universities in Khyber Pakhtunkhwa during the last three years.

Later the chairman prorogued the session for an indefinite period.

Source: Pro Pakistani