ISLAMABAD: Minister for Finance Asad Umar here today said that due to corrective measures introduced by the current government for bringing stabilization in the national economy, the economic indicators had started showing resilience.
During the first half of current financial year, exports of the country increased, imports decreased and remittances were increased as compared to the corresponding period of last fiscal, the minister said while talking to the anchor persons of different TV channels at Ministry of Finance.
The minister said despite the immense challenges that were faced by the government on the economic front, it had decided to introduce some structural reforms to correct the fundamentals of the national economy for bringing long term development and stabilization.
Due to these reforms, current account deficit had also registered decreasing trend and was significantly reduced which would help to reduce the pressure on foreign exchange reserves, he added.
Asad Umer said that four components including exports, imports, remittances, and foreign direct investment were the determining factors of current account deficit, adding that all these indicators excluding foreign investment remained on the mark during the period under review.
He informed that private sector credit off-take during the period from July-December, 2018-19 had also witnessed 65 percent growth as compared to 21 percent of last year which was the highest in last 13 years.
The minister said that consumer inflation rate based on Consumer Prices Index (CPI) during the first five months of the government of Pakistan Peoples Party was increased by 11.2 percent, it was increased by 4 percent in Pakistan Muslim League (N) regime, whereas the CPI had witnessed a nominal increased 0.4 percent in the first five months of PTI government.
He said that year on year, CPI percentage change by income quintiles and commodity groups was at a lower level for a low-income group in 2018 as compared to the same period of last year, adding that government had tried to provide maximum relief to common man.
He said that the current government after coming into power had announced to explore and utilize other alternative sources for economic development and stabilization, besides negotiating with the International Monitory Fund (IMF).
The government was still in process of negotiation with IMF and as soon as any suitable programme for the betterment of national economy finalized, the agreement with the fund would be signed, he remarked.
Besides, he said that government was utilizing other available alternate options for fulfilling the financial requirements of the country and taking different measures for economic development and social prosperity of the country.
Replying to a question, the minister said that supplementary Finance Bill would be introduced to attract investment, promoting exports and facilitating the business activities in the country.
Markets uncertain ahead of US-China trade talks
LONDON: Global markets parted ways Wednesday as investors were more cautious about the chances of success in China-US trade talks, and looked for direction from the ECB.
The overall mood remained wary, with a rally that has characterized the start of the year stuttering due to slower Chinese economic activity, a softer global outlook, Brexit issues and the US government shutdown, which shows no sign of ending soon. “The markets appear to be trading a bit cautious ahead of tomorrow’s monetary policy decision from the European Central Bank (ECB) and as US/China trade worries are flaring up,” the Charles Schwab brokerage said.
US investors sold shares Tuesday after the Financial Times and CNBC said Washington had rejected Beijing’s offer of preparatory discussions ahead of the next round of high-level negotiations. Wednesday saw a sliver of respite as Wall Street opened just in the black, the Dow Jones adding 1 percent while the tech-heavy Nasdaq rose 0.6 percent. “We are continuing to see caution in the markets on Wednesday, with reports a day earlier regarding trade talks between the US and China only aiding that,” said Oanda analyst Craig Erlam.
“Reports that preparatory talks between the US and China ahead of a meeting at the end of the month had been canceled put a slight dampener on the mood … at a time when we’re already seeing some profit taking.” Although the White House denied the reports, observers said they highlighted how fragile the negotiations were. The reports also came a day after Bloomberg News said the two sides were struggling to reach agreement on the crucial matter of intellectual property, a key source of US anger. Hopes that China and the US were on the right track have helped rally global markets in January following a torrid performance in 2018.
But data showing China’s economy grew at its weakest pace in three decades added to fears it is heading for a hard landing, while Xi Jinping also showed signs of worrying about the effects of a slowdown in a speech to top provincial leaders this week. “Investors obviously are still a little bit edgy and therefore we would expect periods of volatility to continue,” said Mark Hackett, chief of investment research at Nationwide Funds Group. “As the headlines continue to get more nerve-wracking with regards to a global slowdown and trade wars and government shutdowns, it’s easy to spook investors, but we think those are temporary versus permanent.”
Adding to concerns was confirmation that the US plans to seek the extradition from Canada of a top executive with Chinese telecom giant Huawei before the end of January. Despite the pervading uncertainty, Frankfurt and Paris joined Wall Street in posting small gains in intraday trades, but London was down 0.5 percent with little immediate sign of Brexit-related gloom lifting. Hong Kong ended flat having swung back and forth through the day, while Shanghai closed 0.1 percent higher and Tokyo ended slightly down. Oil prices advanced after taking a hit Tuesday on lingering worries about the effect of a slowdown in the global economy, and particularly China, on demand.
Fin. Supp. Bill, 2019 termed business-friendly
RAWALPINDI: Rawalpindi Chamber of Commerce and Industry (RCCI) Wednesday declared Finance Supplementary (Second Amendment) Bill of 2019 as ‘business-friendly.’
Talking to the Media, President RCCI Malik Shahid Saleem said despite economic crunch and a number of domestic and international challenges on different fronts, the government has announced business and people-friendly bill but it should be implemented in letter and spirit from January instead of 1st July 2019.
He said waiving off withholding tax on bank transactions for tax filers is a welcoming step of the government and it would give relief to small traders.
The President expressed hope that reduction on agriculture loans from 49% to 20% would benefit the farmers and traders related to agri sector. He lauded the exemption of small businesses from submitting withholding tax returns every month that will provide mentally relief to traders.
The business community also hailed other steps announced by the Finance Minister Asad Umer like Introduction of interest-free revolving credit of Rs5 billion (qarz-i-husna),lifting ban on purchase of vehicles for non-filers for locally manufactured cars up till 1300CC capacity,reduction of fixed tax on marriage halls from Rs20000 to Rs5,000,exemption of duties on Investment in solar panels and wind turbines for five years and removal of gas infrastructure development Cess from fertilizer production.
HCCI hails economy reforms package
HYDERABAD: The President Hyderabad Chamber of Commerce and Industry (HCCI) Muhammad Saleem Shaikh Wednesday termed the economic reforms package announced by the Federal Finance Minister Asad Umer as positive adding that the incentives which he announced could strengthen the economy if the same would be implemented in letter and spirit.
In his reaction on the speech of Federal Finance Minister in National Assembly, HCCI President said that 50 percent reduction in small medium enterprises, industrial and agriculture sectors of the country and allocation of Rs. 5 billion for housing schemes would not only improve the economy but it would also be beneficial for common men of the country.
He said that five years tax exemption in special economic zones would bring a new era of industrial development and reduction of taxes on newspapers industry would also benefit the newspapers industry of the country.
He said that abolition of withholding tax on bank deposits was also a better decision however, the government should also review the reduction of imports which could decrease the quantum of taxes.
The former Senior Vice President HCCI Turab Ali Khoja, however, expressed his concern regarding overcoming the shortfall of Rs. 170 billion in revenue collection adding that details regarding the imposition of more taxes are still not ascertained.
He was of the opinion that common men would not get benefit with a reduction of tax on marriage halls.
The former Vice President HCCI Ziauddin Qureshi termed the reduction of taxes upon filers a right decision and emphasized that the government should provide maximum incentives of SMEs so that doors of employment for jobless people could be opened with rapid development of this sector.