Mettis Global’s Post

𝐉𝐮𝐥𝐲 𝐭𝐫𝐚𝐝𝐞 𝐝𝐞𝐟𝐢𝐜𝐢𝐭 𝐬𝐮𝐫𝐠𝐞𝐬 𝟏𝟗.𝟕𝐩𝐜 𝐭𝐨 $𝟏.𝟗𝟓𝐛𝐧 𝐘𝐨𝐘 #Pakistan’s #trade deficit in July 2024 has increased by 19.7 percent year on year (YoY) to $1.95 billion as compared to a #deficit of $1.63 billion recorded in the same month last year, according to data released by the Pakistan Bureau of Statistics (#PBS).

Navigating the Complexities of Pakistan's Currency Market The State Bank of Pakistan (SBP) sets a daily export rate ceiling to manage and control currency rates, restricting banks from buying dollars above that rate. Banks manage dollar supplies based on inbound remittances, enabling imports. However, weak inflows and banks' struggles to regulate importers' demand within upper limit caps have severely constrained the market. The government is using social media to discourage public dollar holdings and control rates, potentially causing losses to short- and medium-term holders and businesses that fail to adapt quickly to changing market dynamics. This approach may have unintended consequences, including decreased exports, increased imports (which the government is currently controlling), reduced tax revenues due to lower customs duties, and a surge in smuggling activities. Historical precedents, such as during Zia's and Musharraf's regimes, show that the government tends to manipulate exchange rates and discourage dollar buying when receiving foreign aid in dollars. This tactic allows them to control imports and maintain an artificial exchange rate but can have negative consequences. To navigate these challenges, business owners must remain vigilant and closely monitor government policies, adapting their short-term and medium-term strategies accordingly. By doing so, they can minimize risks and maximize opportunities for growth and success in a dynamic economic environment. #Pakistan #Exchangerates #SBP #Economy #startups #Finance

In both foreign exchange markets, the value of the rupee is stable against the dollar Karachi: D https://lnkd.in/dKS6gGxg

In August 2024, Pakistan's IT exports reached $298 million, marking a 27% increase compared to the previous year and a 4% rise from the previous month. This amount exceeds the 12-month average of $275 million. According to Topline Securities, this significant year-over-year growth is largely due to an expanding global client base for IT companies, especially in the GCC region. Furthermore, a recent adjustment by the State Bank of Pakistan to increase the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%, along with the stability of the Pakistani Rupee, has encouraged IT exporters to bring back a larger portion of their profits.

Karachi: PM Shehbaz met the IMF Chief on the sidelines of the WEF. Finance Minister to digitalize the currency. #junaidkhanjournalist #journalist #publicnews #news #reporter #karachi #pakistan #businessreporter #consulate #reporterswithoutborders #psx #KSE100 #stockexchangemarket #dollar #exchangerates #gold #goldmarket #oilandgas #trade #commerce #industry #SMEs #SBP #inflation #KPT #Maritime #KGTL #shipping #terminals #monetarypolicy

Pakistan Stock Exchange set a new record by hitting 81,000 points first time ever. And you know what? It's because of the positive response from the IMF. So yes, it's a Pakistan thing that we call it a Good News and a SIGN OF PROSPERITY & DEVELOPMENT when someone agrees to grant us a LOAN. #Pakistan #Economy #PakistanStockExchange #Trade #Business

In August 2024, Pakistan's trade deficit decreases to USD 1.68 billion. Cumulatively, in the first two months of FY25, the trade deficit narrowed by 4.2% year-on-year to USD 3.58 billion, compared to USD 3.7 billion in the same period of FY24. Additionally, it is anticipated that the current account will record a primary surplus, driven by an expected remittance inflow of USD 3 billion during Aug24. #PBS #Exports #Imports #TradeBalance #Economy

In recent months, Pakistan has witnessed a steady inflow of remittances, hovering around USD 3 billion monthly, accumulating to approximately USD 11.85 during first 4M of FY 2025. Simultaneously, the narrowing gap between imports and exports—currently reducing the trade deficit to about USD 7 billion—should lead to significant appreciation of the PKR. However, the State Bank of Pakistan (SBP) has maintained a delicate balance by procuring USD from the open market, thereby preventing abrupt currency appreciation and stabilizing the economy. It's anticipated that the SBP may soon confirm the procurement of an estimated USD 2-3 billion from open market operations during first 4M of FY 2025. This favorable combination of robust remittances and exports, together with a shrinking trade deficit, has also contributed to easing inflation, which has now declined to single digits. This stability is creating room for the SBP to consider growth-oriented policies and potentially further interest rate reductions to support economic expansion. While these short-term economic gains are promising, sustained progress hinges on deep structural reforms. Long-term growth demands a robust framework for tax enforcement and a broader acceptance of tax responsibilities across key sectors—particularly among retailers, traders, and the agricultural sector. Strengthening tax collection will be essential to achieving fiscal stability. #Pakistan #Economy #remittence #tradedeficit #interestrate #inflation #GDP #imports #exports

In this chat with Samson G SIMON, Ph.D., CPLP, we looked beyond the announced surplus and asked questions like: - What factors are responsible for the high increase in export YoY? - How diversified is Nigeria's export? - When adjusted for inflation and currency devaluation, is there any significant change? - What's responsible for decline in Merchandise trade? - Should we celebrate reduced import or are there underlying unimpressive factors responsible for that? Follow link and enjoy. Let me get your thoughts too in the comment section. https://lnkd.in/dbHcXpAg

Alfalah CLSA Securities (Pvt.) Limited : Morning News 20-Mar-2024 Link : https://shorturl.at/gkqCY • Pakistan seeks to boost ties with US, China amid IMF deal • IMF comes up with new ‘wish list’ • Wilmar’s Pakistan unit to acquire 277m shares of Unity Foods • Company may sink if tariff hike delayed: SSGC • Current account swings to $128m surplus in Feb, cuts yearly deficit to $1bn • IT exports soar 32pc to $257m in February • REER index up 0.41pc in Feb, signaling export price rise • Power generation cost rises 8.5 pc y/y in February amid decline in output • Pakistan to get $250mn loan from ADB for two power projects • Auto industry forced to slash prices • May 9 violence: ATC issues non-bailable warrants for KP CM, others • RDA inflows top $7.4 billion; February sees slight slowdown • Systems Limited wins award #KSE100 #PSX #NewsUpdate #pakistan #StockMarket