The State Bank of Pakistan (SBP) made a commendable decision to reduce the policy rate by 150 basis points to 20.5 percent. However, the coherence in the regulator’s strategy is missing. SBP is not setting clear targets and seems uncertain about the future, a trend evident in recent policy reviews. The main issue is that SBP is navigating a delicate balance. The primary concern is managing the external account. A sharp decline in interest rates could create external imbalances due to potential slippage in the current account. Conversely, maintaining high real rates would increase the fiscal burden through debt servicing.…
Author: WebDesk
SAN FRANCISCO: At the Ex-Robots factory in Dalian, China’s northeastern coastal city, engineers are developing advanced humanoid robots with a focus on enhancing facial expressions and emotions. In the factory, neck-length silicone masks lie on a table alongside silicone arms and feet, while disembodied heads are displayed and humanoid robots in various stages of construction stand nearby. Drawings of robot designs adorn the walls. “We have our own software and algorithm teams,” said Ex-Robots Chief Executive Li Boyang, emphasizing that humanoid robots are the most complex class of robotic products. “There are many basic models and algorithms that are commonly…
The 2024-25 budget has introduced significant changes to the capital gains tax regime, particularly affecting immovable property such as real estate. These changes aim to simplify the tax structure and increase revenue from property transactions, with the government expecting an additional Rs. 60 billion from this new regime. Proposed Changes for 2024-25: Starting July 1, 2024, the government will implement a major overhaul in the capital gains tax system for assets, shares, and immovable property. The new system introduces a flat tax rate and eliminates the benefits associated with longer holding periods. The proposed changes are as follows: For assets…
Passenger car sales by Pakistan Automotive Manufacturers Association (PAMA) member companies surged 116% year-on-year in May 2024, reaching their highest level in 17 months. According to the latest data released by PAMA, passenger car sales in May 2024 hit 8,487 units, up from 3,934 units in May 2023. However, total sales for the first 11 months of FY23 were 71,449 units, marking a 23% decline from 92,554 units in the same period of FY22. On a month-on-month basis, May 2024 sales were 4% lower than April 2024, with 8,487 units sold compared to 8,873 units. In May 2024, sales of…
Market participants at the Pakistan Stock Exchange (PSX) appeared to have eased their concerns over upcoming budgetary measures, as the benchmark KSE-100 index surged by over 550 points during trading on Wednesday. By 2:05 PM, the benchmark index stood at 73,149.33, an increase of 559.84 points or 0.77%. Experts believe that investors “overreacted” to rumors and unconfirmed reports, creating a buying opportunity after the market fell into oversold territory. Notable buying was observed in sectors including automobile assemblers, commercial banks, oil and gas marketing companies, and oil marketing companies (OMCs). Index-heavy stocks such as OGDC, PPL, PSO, and SHEL traded…
As Pakistan’s government prepares to present its federal budget for 2024-25, it faces the challenge of balancing domestic needs with the demands of the International Monetary Fund (IMF). The government aims to increase the GDP growth rate to over 3.5% from 2.38%, following an economic slump caused by political instability. Prime Minister Shehbaz Sharif, who took office as head of a coalition government after the February elections, has led efforts to revive the economy. This includes multiple meetings with the IMF and trips to key allies like Saudi Arabia, the United Arab Emirates, and China to attract foreign direct investment.…
Finance Minister Muhammad Aurangzeb is set to present the Rs18 trillion federal budget for the fiscal year 2024-25 in the National Assembly today, focusing on fiscal consolidation to reduce the budget deficit, official sources stated on Tuesday. Sources indicate the budget’s main objectives include alleviating people’s hardships, transforming the agriculture sector, promoting information technology (IT), boosting exports, fostering industrial growth, and supporting businesses. The budget formulation took into account the current economic challenges on both domestic and international fronts. The government is committed to delivering a pro-people, business-friendly, and progressive federal budget, the sources added. On the revenue side, the…
The release of ‘Umro Ayyar – A New Beginning’ on Eidul Azha signifies a remarkable advancement for Pakistani cinema, as it boldly explores the science fiction genre. This film represents more than just a notable achievement for the industry; it has the potential to establish a precedent for future Sci-Fi productions in Pakistan. During a recent appearance on a show, actors Usman Mukhtar and Faran Tahir shared insights about the film, describing it as the most expensive production in the country’s history. Faran, who portrays the primary antagonist, expressed immense pride in his involvement with the project, stating, “This film…
The Government of Pakistan, in collaboration with the Rabta Alaam Islami (Muslim World League), is gearing up to host a landmark Global Conference on Girls’ Education in September 2024. This significant event aims to convene a diverse array of international and national dignitaries, including education ministers from various Islamic countries, to tackle the myriad challenges confronting girls in the education sector, as per a press release issued yesterday. Over the course of three days, the conference’s primary goal is to devise effective strategies for institutional responses and optimal resource allocation to advance girls’ education worldwide. Eminent scholars, education experts, policymakers,…
Prime Minister Shehbaz Sharif of Pakistan conveyed his heartfelt condolences on Wednesday following the tragic plane crash that claimed the life of Malawi’s Vice President, Saulos Chilima. Expressing solidarity with the government and people of Malawi during this difficult time, the Prime Minister extended his sympathies to the bereaved family. The unfortunate incident occurred when Saulos Chilima, along with nine other passengers, lost his life in a plane crash, as announced by Malawi’s President Lazarus Chakwera in a national address. The aircraft went missing while attempting to land at the Mzuzu International Airport, located approximately 380 km north of the…
