Pakistan's Economy - News and Updates

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Rice worth US$107.896mn exported in July

ISLAMABAD: Rice worth US$ 107.896 million has been exported during the first month of current financial year.

Rice exports from the country during the month of July, 2017 grew by 34.74 percent as about 200,995 metric tons of rice worth US$ 107.896 million was exported as compared the exports of 164,092 metric tons valuing US$ 83.974 million of same month last year.

During the period under review, exports of basmati rice increased by 28.49 percent and reached at 30,951 metric tons worth of US$ 32.990 million.

The exports of basmati rice during July, 2016 was recorded at 28,725 metric tons valuing US$ 27.731 million, according the data of Pakistan Bureau of Statistics.

Meanwhile, the country earned US$ 74.906 million by exporting about 170,044 metric tons of rice other then basmati rice, which was recorded at 135,367 metric tons valuing US$ 56.24 million of same period last year.

During first month of current financial year about 32,704 metric tins of vegetables of different kinds worth of US$ 10.330 million exported as against the exports of 32,791 metric tons valuing 8.147 million of same period of last year.

The food commodities including wheat and sugar witnessed tremendous increase in their respective exports during first month of the current financial year by showing 100 percent increase.

On the other hand food group imports into the country during first month of current financial year swelled by 43.15 percent as compared the imports of same month last year.

The imports of food commodities into the country was recorded at US$ 534.693 million as compared the imports of US$ 373.512 million of same month last year.

The major food items which had registered increasing trend in their respective imports included dry fruits, nuts tea, spices, soya bean and palm oil.

The food commodities with negative growth in their respective imports including tea and leguminous vegetables (pluses) and milk cream and milk food for infants.

http://www.brecorder.com/2017/08/25/366684/rice-worth-us107-896mn-exported-in-july/

 

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Iraq buys 60,000 tonnes rice from Pakistan, Uruguay

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Iraq's state grains buyer purchased a total of around 60,000 tonnes of rice in an international tender which closed this week, European traders said on Thursday.

Some 30,000 tonnes will be sourced from Pakistan and 30,000 tonnes from Uruguay, they said.

The Pakistani rice was purchased at $416 a tonne c&f free out. Pakistani rice had been offered at the lowest price in the tender although the country has not been offered in Iraq's purchase inquiries recently.

The Pakistani purchase is made under the additional condition that a sample must be submitted to Iraq's state grain board before contracting. A delegation from the grain board must also attend the loading of the cargo, traders said.

The rice from Uruguay was purchased $580.50 a tonne c&f free out, traders added.

The tender had closed on Sunday, Aug. 27, with offers having to remain valid up to Thursday.

Volumes in Iraq's tenders are nominal and the country can buy more than requested in the tender.

Iraq made no purchase in its previous international tender to buy rice which closed on July 30.

The country has been struggling to import grain for its food subsidy programme after introducing new payment and quality terms that left trading houses unwilling to participate in its international tenders.

Iraq is expected to produce about 250,000 tonnes of rice this year, suggesting the country will face a shortfall of about 1 million tonnes, which will need to be covered by imports.

http://www.brecorder.com/2017/08/31/367446/iraq-buys-60000-tonnes-rice-from-pakistan-uruguay/

 

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Pak products to be introduced in Bahrain

Pakistan’s Ambassador to Bahrain, Javed Malik inaugurated the first special food, jewelery and garments store- Pakistani Desi (local) Bazaar to promote Pakistani trade and effectively introduce Pakistan-exported products in Bahrain.

According to a message received here, the food, costume and jewelery store in Bahrain is expected to attract customers and would play an important role in introducing Pakistani products in Bahrain.
The Bahraini people, officials and families of the Pakistan Consulate, the Pakistani ambassador and others participated the inauguration ceremony.

National Anthem was presented on the occasion, which won the hearts of the attendant.
Addressing the ceremony, Ambassador Javed Malik said that Pakistan’s exports needed Pakistani retail stores abroad and there was dire need of sucha facility in Bahrain and other Gulf countries.
Pakistan’s domestic market would help the Pakistani Desi Bazar to grow smoothly.
Javed Malik assured Pakistani trader community in Bahrain and other Gulf countries that the initiative would help promote exports of finished goods from Pakistan.

http://pakobserver.net/pak-products-introduced-bahrain/

 

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Pakistani mangoes set to enter Chinese market

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BEIJING: Pakistani business community, keeping in view the high demand of Pakistani mangoes in the Chinese market, is planning to export up to 3,000 tons of mangoes to China from next year, Roshan Enterprises Chairman Khalid Ejaz Qureshi said on Thursday.

“We have received a positive response from China about Pakistani mangoes and as a result, we are planning to export 2,000 to 3,000 tons mangoes to the huge Chinese market from next year,” he stated.

He said mango exports will depend on air logistics charges and support of other concerned departments, adding that fares are being negotiated with an airline.

Updating on the current status of mango exports, he said that Middle East, Europe, the US and Hong Kong are major destinations being served by Pakistani producers.

“Pakistani mangoes have more than 400 varieties and are considered one of the best in the world,” Qureshi claimed, adding that “the most popular commercial varieties are different in colour and sizes and have distinct flavour and taste.”

Mangoes are considered the ‘king of fruits’ in Pakistan. They are heavily grown in Punjab and Sindh provinces and are abundantly available in most parts of the country between May and September.

Mangoes are also the main input in several food related industries and products including jams, squash, milkshakes and ice creams. The fruit is also dried and canned for sale during the off season while raw mangoes are used for preparing pickles.

‘Chaunsa and Sindhri’ are arguably the most popular varieties and stand out amongst mangoes with their golden-yellow colour.

Pakistani exporters recently organised a ‘mango show’ in collaboration with the Pakistan Horticulture Development and Export Company at Pakistan Embassy in Beijing.

The different varieties of ‘king of fruits’ were showcased at the show to enhance its export to China. The event attracted a large number of people including high ranking Chinese officials, local business community and senior diplomats of the two countries.

https://tribune.com.pk/story/1496345/pakistani-mangoes-set-enter-chinese-market/

 

[Introvert]

Mauritius buys 6,000 tonnes white rice in tender from Pakistan

HAMBURG: Mauritius' state purchasing agency has purchased 6,000 tonnes of long grain white rice to be sourced from Pakistan in an international tender which closed on Aug. 24, European traders said on Friday.

It was purchased at $380 a tonne C&F Mauritius.

The rice was sought for delivery between Oct. 1 to Dec. 31 in shipping containers.

The purchase marked another return of Pakistani rice to export markets following the purchase of 30,000 tonnes of rice from Pakistan by Iraq on Thursday.

http://www.brecorder.com/2017/09/01...00-tonnes-white-rice-in-tender-from-pakistan/

 

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UK, Pakistan’s biggest trade partner with trade amounting to 2.08b Euros

Federal Minister for Commerce, Mohammad Pervaiz Malik on Wednesday said that the United Kingdom (UK) is Pakistan’s biggest trade partner in Europe with bilateral trade amounting to 2.08 bn Euros in 2016.

Bilateral trade between Pakistan and UK has increased from 1.5 bn Euros in 2013 to 2.08 bn Euros in 2016 that represents an increase of 39%, he said in a meeting with British High Commissioner to Pakistan Thomas Drew.
During the current year, the statistics indicate an increase over 2016, he said in statement issued by Ministry of Commerce here.

Mohammad Pervaiz Malik said that it is a matter of satisfaction for both sides that bilateral trade between the two countries has been increasing over a period of time.

“Pakistan’s inclusion in EU’s “Special Incentive Arrangement for good governance and sustainable development” has been the major catalyst for promoting bilateral trade,” Pervaiz Malik added.
The Minister said that the UK has been a great supporter of enhanced market access for Pakistani products in the EU.

He said that its support was crucial for Pakistan’s inclusion in EU’s GSP+ Scheme in 2014 and then for a successful review in 2016 by the EU Parliament.
“Pakistan acknowledges and appreciates the government of the UK decision to maintain the enhanced level of market access available to Pakistan in EU under its GSP+ Scheme after formal exit from the EU”, the minister added.

Pakistan’s exports to UK amounted to 1.3 billion euros while imports from UK amounted to 756 million Euros, he added. The Minister said that the economic and social indicators are on the rise in Pakistan and it offers a lucrative market for investment.

http://pakobserver.net/uk-pakistans-biggest-trade-partner-trade-amounting-2-08b-euros-pervaiz/

 

[Adam WANG SHANGHAI MEGA]

Just saw Pakistan made a 5~6% growth recently ,way to go Pakistani Bros and hope you can achieve 10% growth per year for 10 or 15 years!

 

[Talwar e Pakistan]

I'm not really too knowledgeable of economics, so forgive me if I sound dumb.

How is the GDP per capita of Pakistan around $1600, when all Pakistani provinces 'apparently' have higher GDP per capita than $1600. Sindh and Punjab have around $7000 alone; AJK, GB and Balochistan range from $3000-$5000. Is the information wrong or am I missing something?

https://en.wikipedia.org/wiki/List_...mestic_product#Provinces_by_GDP_.28nominal.29

@eagleeye @That Guy

 

[That Guy]

I'm not really too knowledgeable of economics, so forgive me if I sound dumb.

How is the GDP per capita of Pakistan around $1600, when all Pakistani provinces 'apparently' have higher GDP per capita than $1600. Sindh and Punjab have around $7000 alone; AJK, GB and Balochistan range from $3000-$5000. Is the information wrong or am I missing something?

https://en.wikipedia.org/wiki/List_...mestic_product#Provinces_by_GDP_.28nominal.29

@eagleeye @That Guy

Per capita gdp I'd a really odd thing, as it varies region by region, city by city. I have always said that nation wide per capita average is a useless figure, and helps no one.

 

[Nilgiri]

I'm not really too knowledgeable of economics, so forgive me if I sound dumb.

How is the GDP per capita of Pakistan around $1600, when all Pakistani provinces 'apparently' have higher GDP per capita than $1600. Sindh and Punjab have around $7000 alone; AJK, GB and Balochistan range from $3000-$5000. Is the information wrong or am I missing something?

https://en.wikipedia.org/wiki/List_...mestic_product#Provinces_by_GDP_.28nominal.29

@eagleeye @That Guy

For the GSP table, it implies a population of just 23 million people for Punjab (173 billion USD divided by 7577 USD). Its probably some form of PPP measurement rather than nominal.

 

[Talwar e Pakistan]

For the GSP table, it implies a population of just 23 million people for Punjab (173 billion USD divided by 7577 USD). Its probably some form of PPP measurement rather than nominal.

It has a separate section for PPP

List_of_Pakistani_provinces_by_gross_domestic_product

 

[ziaulislam]

we need more investment, whee are nawaz Gulf connection that he boast about so much
if he could attracted just 1% of all saudi/GCC foreign investment that would have been enough

 

[Nilgiri]

It has a separate section for PPP

List_of_Pakistani_provinces_by_gross_domestic_product

Hence I said some local form/variant of PPP concept rather than global international dollar PPP.

Either its cherry picked urban stat, taxable demographic or some localised state version of it. No link is given to the source data in the table so I can't tell what it is/where its taken from/context.

Using pure division, the derived population base does not make sense...there is some multiplier that is being used. It is definitely not nominal USD.

 

[Chak Bamu]

I'm not really too knowledgeable of economics, so forgive me if I sound dumb.

How is the GDP per capita of Pakistan around $1600, when all Pakistani provinces 'apparently' have higher GDP per capita than $1600. Sindh and Punjab have around $7000 alone; AJK, GB and Balochistan range from $3000-$5000. Is the information wrong or am I missing something?

https://en.wikipedia.org/wiki/List_...mestic_product#Provinces_by_GDP_.28nominal.29

@eagleeye @That Guy

Screwy numbers. BS references. Just ignore it.

 

[ejaz007]

Pakistan's State Bank Green Lights Yuan-Based Trade With China
© Sputnik/ Alexandr Demyanchuk
ASIA & PACIFIC
16:01 03.01.2018(updated 16:42 03.01.2018)Get short URL
171022
The State Bank of Pakistan (SBP) has announced that all arrangements for using the Chinese currency for trade and investment are already in place.

The central bank of Pakistan has given permission for the Chinese yuan to be used for investment and bilateral trade deals, which will eventually replace the dollarin Pakistan-China trade.

The increase in trade and investment with China under the China-Pakistan Economic Corridor (CPEC) makes it easier for Pakistan to see that CNY-denominated trade with China will increase significantly and will provide with long term benefits for both the countries.

"SBP has already put in place the required regulatory framework which facilitates use of CNY in trade and investment transactions," the press release of the central bank stated.

© AFP 2017/ FRED DUFOUR
China May Launch Yuan-Denominated Oil Futures in Shanghai by 2018
In late December Pakistan’s Minister for Planning and Development Ahsan Iqbal said that the government was considering a Chinese proposal to use the renminbi or yuan instead of the US dollar for payments in all bilateral trade.


The minister further said that China had not stopped CPEC-related investments in Pakistan and all projects had been identified and committed to by both sides. The areas of cooperation include connectivity, energy, trade and industrial parks, agricultural development and poverty alleviation, tourism, people’s livelihood and exchange programs and financial cooperation, Dawn news reported.

Pakistan and China have also agreed to establish and improve cross-border credit systems and financial services. In the near future plans strengthening currency swap arrangements and the establishment of a bilateral payment and settlement system will also take place.

Hence with the central bank’s approval this cooperation will take on another dimension as it means that Pakistani and Chinese banks will, in the course of time, be able to open import letters of credit in rupees and yuan.

© REUTERS/ EDGAR SU
Yuan's Growing International Status 'Not Under Threat' From Dip in Global Transactions
Pakistan will be able to pay for imports from China in yuan rather than in dollars, and Chinese companies investing in CPEC projects will bring in yuan-denominated funds to Pakistan and remit back their profits and dividends also in yuan instead of dollars or other foreign currencies.


"The SBP, in the capacity of the policy maker of financial and currency markets, has taken comprehensive policy related measures to ensure that imports, exports and financing transactions can be denominated in yuan," Dawn news reported quoting the bank's statement.

Furthermore, even non-Chinese companies participating in the CPEC will be able to do bilateral trade via their Chinese principal companies, according to the publication.

“The dollar may remain the most dominant medium of exchange for the foreseeable future. But if Islamabad and Beijing can materialize their dream [to settle bilateral trade and investment transactions in rupees and yuan], we can reduce our dependence on the greenback gradually over a long time,” the head of a large Pakistani bank told Dawn news in a comment.

The banker also said that once proper developments are made the free flow of capital and cross-border transfer of lawful funds between the two countries would become much easier, curbing the need for more complex centralized international clearing systems in New York and London.

https://sputniknews.com/asia/201801031060493758-pakistan-state-bank-yuan-trade-china/