Issue 17

Budget Study Centre   Issue 17
June 8, 2018


Fortnightly Budget News Alerts

Public enterprises eat up 3.5pc of GDP in debts

The DAWN (June 7, 2018)

KARACHI: The public sector enterprises’ (PSEs) debt has almost soared to Rs1 trillion at the end of third quarter of FY18, State Bank of Pakistan (SBP) reported in its latest issue of Statistical Bulletin for June. The outgoing government could not resolve the growing problem of PSEs’ debts and it failed to address the issue of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) loaded with huge loans….…Read More

World Bank sees Pakistan growth slowing down next

The DAWN (June 7, 2018)

ISLAMABAD: The World Bank has forecast Pakistan’s economic growth in next fiscal year to slow down owing to higher than expected oil prices. Growth in the Pakistani economy is expected to slow to 5pc in 2018-19 from expected growth of 5.8pc in the outgoing fiscal year, reflecting tighter policies to improve macroeconomic stability, says the World Bank’s Global Economic Prospects Report for 2018.……….…Read More

GDP woes over, Indian economy to grow at 7.3% in 2018-19, says World Bank

The Business Today (June 6, 2018)

Indian economy is likely to regain its pace in the current fiscal and once again become the fastest growing emerging economy, a World Bank report said. The Global Economic Prospects report released by the World Bank on Tuesday projects that India will see its gross domestic product (GDP) grow at a rate of 7.3 per cent during the ongoing fiscal and at 7.5 per cent in the two succeeding ones. “Growth in India is projected to accelerate to 7.3 percent in.…Read More

External financing to reach over $11.6bn in 2018-19

Pakistan Today (June 6, 2018)

KARACHI: The total inflows of external financing are expected to the tune of over $11.653 billion during the upcoming fiscal year (2018-19). “Total inflows of external financing are expected to be $11,653.9 million during 2018-19 with project loans worth $4,835.2 million and programme loans worth $1,818.6 million,” said sources in the Economic Affairs Division. According to figures, the country would receive financing of $3130.8 million from …….…Read More

British taxpayer set to lose in $3.5bn RBS sale

The DAWN (June 5, 2018)

LONDON: Britain is selling some of its stake in Royal Bank of Scotland for about 2.6 billion pounds ($3.5bn), although it will realise a significant loss as it unwinds its holding and returns the bailed-out lender to private hands. The government said on Monday it would sell about 7.7 per cent of RBS, which was rescued in a 45.5bn pound bailout at the height of the 2008 financial crisis, reducing its overall stake to 62pc. Britain will make a loss on that ……….…Read More

Rupee weakens to record low as dollar flow slows down

The Express Tribune (June 2, 2018)

KARACHI: With a persistent decline in Pakistan’s foreign currency reserves that were not enough to bear the cost of two months of imports, the rupee weakened to a record low of Rs119.35 to the US dollar in the open market on Friday. During the day, the currency also hit a new all-time intra-day low of Rs119.80 to the US dollar, according to Dollareast Exchange Company’s website.

On Thursday, the rupee had closed at Rs119.10 to the greenback, .…Read More


‘With political instability, economic activities sinking’

The Express Tribune (June 2, 2018)

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged political parties to show maturity and safeguard the interests of the country. In a statement issued on Friday, LCCI President Malik Tahir Javaid said due to political instability trade and economic activities were sinking and appealed to protesters to stay away from such politics because the country was facing huge economic losses only because of irrational.…Read More

Indian economic growth hits highest rate in almost two years

The DAWN (June 1, 2018)

NEW DELHI: The Indian economy grew 7.7 per cent year-on-year in January-March, its quickest pace in nearly two years driven by higher growth in manufacturing, the farm sector and construction. The figure surpassed China’s growth rate of 6.8pc in the January-March quarter, confirming India as the fastest growing major economy. For the fiscal year that ended March 31, the Ministry of Statistics reported growth of 6.7pc, down.…Read More

Rs31.3bn released hours before government’s term ends.

The DAWN (June 1, 2018)

ISLAMABAD: The PML-N government on Thursday paid Rs31.3bn sales tax refunds to traders and exporters a few hours ahead of completion of its five-year term of government while leaving behind massive shortfalls in revenue collection. The Ministry of Finance has asked Federal Board of Revenue (FBR) to prepare a list of claimants who will be issued a refund. The list was completed in a very short time and the full amount will reach taxpayers’.…Read More

With the end of PML-N’s term, SBP’s reserves stand at just $10.03b

The Express Tribune (May 31, 2018)

KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) remained under pressure, falling 2.78% on a weekly basis, according to data released by the central bank on Thursday. With the PML-N’s tenure ending today (Thursday, May 31), the country’s foreign exchange reserves stand depleted, sparking concern over Pakistan’s ability to meet future payment obligations and manage a bulging current account deficit.…Read More

Circular debt at Rs573 billion influential people major defaulters

The Express Tribune (May 30, 2018)

ISLAMABAD: The Ministry of Energy (Power Division) acknowledged on Tuesday that the circular debt had reached Rs573 billion – a massive amount that undermines efforts made to improve power production and transmission. Briefing the Senate special committee on circular debt, chaired by Shibli Faraz, the joint secretary of Power Division said out of the circular debt of Rs573 billion, running defaulters, who were very influential, had to…Read More

Pakistan, WB sign two financing pacts of $400m

The Nation (May 30, 2018)

ISLAMABAD – Pakistan on Tuesday has signed two financing agreements worth $400 million with the World Bank including Punjab Cities Programme ($200 million) and Punjab Green Development Programme ($200 million). Economic Affairs Division Secretary Syed Ghazanfar Abbas Jilani signed the financing agreements on behalf of the Government of Pakistan while representatives of Government of Punjab signed their respective .…Read More

Govt borrowed $9.6 billion in 10 months

The Nation (May 29, 2018)

ISLAMABAD – Pakistan has borrowed $9.6 billion from external sources only in ten months of the current fiscal year increasing the overall debt of the country that has already surged to $91.8 billion. Pakistan has received $1.6 billion in new foreign loans during the month of April only, as major part of the borrowing $1.2 billion was through the commercial banks. The government has already breached the limit of annual foreign borrowing of $8 billion, as the …Read More