Source: China Economic Net
1. Market performance
2. Important news
On 22 January, Pakistan and the World Bank (WB) secured financing for two projects worth a total of $425 million, according to the Pakistani media newspaper The Nation. The first is the $250 million Social Protection for Crisis Response (CRISP), an additional World Bank funding that aims to build more resilient social protection systems to help poor and vulnerable households cope with future crises, and the $175 million Resilient Microfinance Program (RAM), which aims to improve borrowers' access to microfinance and provide resilient support to the microfinance industry and its borrowers.
2. During the three-day official visit to Qatar by Jawad Sohrab Malik, Special Assistant to the Prime Minister for Expatriates and Human Resources, Pakistan signed a number of agreements and letters of intent (LOIs) with leading Qatari companies aimed at increasing employment opportunities for Pakistani expatriates in Qatar, as reported by Pakistani media The News on January 22. The signing of this agreement marks a key step in strengthening bilateral human resources cooperation between the two countries.
3. The State Bank of Pakistan (SBB) announced on January 23 the introduction of a centralized forex trading platform called "FX Matching" for the interbank foreign exchange market. The platform serves the headquarters or main offices of all authorized forex brokers and will be effective from January 29, 2024. The move is intended to provide a more centralized trading environment for the interbank foreign exchange market. Transactions on the platform will be conducted anonymously, allowing participants to make or accept offers without revealing their identities.
4. According to the Pakistan Bureau of Statistics (PBS) on January 24, in the first half of fiscal year 2024 (July 2023 to June 2024) (July-December 2023), Pakistan's seafood exports were US$199 million, down 11.63% year-on-year, and the export volume was 92,600 tons, up 5.12% year-on-year.
5. The Pakistani government signed oil concession agreements (PCAs) and exploration licences covering eight oil and gas blocks on January 24, according to Pakistani media outlet The National. The move aims to boost the country's hydrocarbon reserves, close the gap between energy supply and demand, and attract more investment to the oil industry. It is reported that the relevant exploration and production companies plan to invest more than US$33.3 million in the next three years. In addition, to promote local communities, these companies will invest at least $30,000 per block per year in regional social welfare programs.
6. The Federal Revenue Authority of Pakistan (FBR) has developed a simplified scheme for traders, retailers and certain persons to tax estimated income, with the aim of reducing the size of the informal economy, Pakistani media outlet Dawn reported on January 25. The estimated income amount will be determined by factors such as the location, value, and rent of the store, and taxes will be paid in monthly installments. The tax department expects that the scheme is expected to collect 4,000-500 billion Pakistani rupees in income tax revenue.
7. As of January 19, the central bank's foreign exchange reserves increased by US$243 million to US$8.27 billion, as disclosed by the State Bank of Pakistan (SBB) on January 25. The increase in foreign exchange reserves was due to the receipt of 528 million SDRs from the International Monetary Fund (IMF) in Pakistan. The central bank's reserves are now at their highest level since July 14, 2023. The net foreign exchange reserves held by the Brazilian commercial banks fell by US$46.8 million to US$5.07 billion. Pakistan's total liquid foreign exchange reserves stood at $13.34 billion.
China Economic Net Data Center
January 29, 2024