Tag: Economic Indicators

  • Yearly basis: Weekly inflation stays above 34%

    Yearly basis: Weekly inflation stays above 34%

    In the week concluding on February 15, 2024, the Weekly Sensitive Price Indicator (SPI) for the Combined Group exhibited a slight decrease of 0.78 per cent week-over-week (WoW).

    However, compared to the same period last year, the SPI surged by 34.25 per cent YoY, according to data released by the Pakistan Bureau of Statistics (PBS).

    The combined index, standing at 315.18, marked a slight dip from 317.65 recorded on February 8, 2024. A year ago, on February 16, 2023, the index was substantially lower at 234.77.

    Analysing the data further, out of the 51 items monitored, the average price of 22 items increased, 11 items witnessed a decrease, and 18 items remained stable.

    Notably, PBS did not release SPI data last week, following a 0.28 per cent WoW decline in the preceding week.

    During the week under review, significant decreases were noted in the prices of eggs (28.82 per cent), chicken (4.23 per cent), onions (3.48 per cent), LPG (2.85 per cent), and gur (1.13 per cent).

    Conversely, notable increases were observed in the prices of bananas (4.64 per cent), potatoes (2.80 per cent), match boxes (1.31 per cent), long cloth (1.29 per cent), and cooked daal (0.77 per cent).

    Analysing the SPI percentage change by income groups, a uniform decline of -0.82 per cent to -0.72 per cent was witnessed across all quantiles.

    The lowest-income group experienced a weekly decline of 0.78 per cent, while the highest-income group recorded a decrease of 0.77 per cent.

    On a yearly basis, SPI increased across all quantiles, ranging between 28.68 per cent and 38.54 per cent. The lowest-income group saw a 28.68 per cent increase, while the highest-income group recorded a 32.08 per cent rise.

    The average price of Sona urea fell to Rs4,513 per 50 kg bag, marking a 0.50 per cent decrease from last week and a significant 54.84 per cent increase from the previous year.

    Meanwhile, the average cement price recorded at Rs1,234 per 50 kg bag marked a 2.05 per cent increase from the previous week and a 14.27 per cent hike from the prices recorded last year.

    In a volatile market environment, these fluctuations in the SPI indicate the dynamic nature of the economic landscape, impacting consumers across various income groups.

  • SBP reports 26% increase in overseas workers’ remittances

    SBP reports 26% increase in overseas workers’ remittances

    In January 2024, Pakistan witnessed a notable increase in the inflow of overseas workers’ remittances, reaching $2.4 billion, as revealed by data released by the State Bank of Pakistan (SBP) on Monday. This marks a 1 per cent rise compared to December 2023, where remittances stood at $2.38 billion.

    Year-on-year analysis underscores a substantial surge, with a 26 per cent increase from the same period last year, when remittances totaled $1.9 billion in January.

    The significance of these remittances cannot be understated, as they play a pivotal role in bolstering Pakistan’s external account and fueling economic activity. Additionally, they serve as a vital supplement to the disposable incomes of households dependent on remittances.

    Despite the uptick in January, the cumulative figure for July-January FY24 reflects a 3 per cent decline year-on-year, amounting to $15.83 billion, down by $386 million from the $16.32 billion recorded in the same period of FY23.

    Breaking down the sources of remittances, overseas Pakistanis in Saudi Arabia retained their leading position, contributing $587.3 million in January 2024. This marked a 2 per cent increase from the previous month and a substantial 43 per cent rise from the corresponding period last year.

    Remittances from the United Arab Emirates (UAE) experienced a slight dip of 3 per cent month-on-month, decreasing from $419.2 million in December to $407.6 million in January. However, the yearly comparison reveals a remarkable surge of nearly 51 per cent.

    The United Kingdom witnessed a marginal decline in remittances, with $362.1 million recorded in January, down by 2 per cent from December 2023.

    In contrast, remittances from the European Union saw a significant 20 per cent year-on-year increase and a 2 per cent monthly rise, totaling $290.1 million in January 2024.

    Meanwhile, overseas Pakistanis in the United States contributed $283.4 million in January 2024, marking a notable 32 per cent increase from the same period last year.

    The consistent flow of remittances, despite fluctuations in individual sources, underscores their enduring importance to Pakistan’s economy and the livelihoods of millions of households reliant on them.

  • State Bank of Pakistan’s reserves soar to $8.27 billion, highest level since July 2023

    State Bank of Pakistan’s reserves soar to $8.27 billion, highest level since July 2023

    In the latest report, the State Bank of Pakistan (SBP) announced a significant rise of $243.1 million, or 3.03 per cent week-on-week, in foreign exchange reserves, reaching $8.27 billion as of January 19, 2024. 

    This boost is credited to the reception of the second installment of SDR 528 million, equivalent to $705.6 million, from the International Monetary Fund (IMF). 

    After settling government external debt repayments, the net increase for the week stands at $243.1 million, marking the highest level for SBP’s reserves since July 14, 2023.

    Furthermore, the total reserves of the country witnessed an increase of $196.3 million, or 1.49 per cent, totaling $13.34 billion during the same week. 

    In contrast, commercial banks experienced a decline in reserves, dropping by $46.8 million, or 0.91 per cent, to $5.07 billion week-on-week.

    It is noteworthy that in the current fiscal year, total liquid foreign reserves have shown a substantial growth of $4.18 billion, reflecting a 45.65 per cent increase. 

    Similarly, the ongoing calendar year has seen a rise of $0.12 billion, marking a 0.91 per cent increase in the nation’s reserves.

  • Pakistan’s debt burden increases by Rs86.28 billion within seven days

    Pakistan’s debt burden increases by Rs86.28 billion within seven days

    In the week ending January 12, the government of Pakistan increased its debt burden by Rs86.28 billion, bringing the total net borrowing for the ongoing fiscal year 2024 to Rs2.57 trillion, as per the latest estimates from the State Bank of Pakistan (SBP).

    The government’s borrowings fall into three main categories: budgetary support, commodity operations, and others.

    The breakdown of the weekly net borrowing reveals that Rs87.7 billion was allocated for budgetary support, while Rs1.37 billion went towards retiring commodity operations.

    Additionally, Rs48.4 million was used for other purposes during the week.

    Cumulatively, this brings the borrowing figures for the fiscal year 2024 to Rs2.77 trillion for budgetary support, Rs193.72 billion for retiring commodity operations, and Rs1.1 billion for other purposes.

    The primary sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. In the ongoing fiscal year, the government has repaid a net sum of Rs1.05 trillion to the central bank.

    The Federal Government accounted for Rs954.56 billion of this repayment, while the Provincial Government, AJK Government, and GB Government contributed Rs77.73 billion, Rs11.17 billion, and Rs2.05 billion, respectively.

    On the other hand, scheduled banks have extended a net total of Rs3.81 trillion in loans. The Federal Government borrowed Rs3.9 trillion, while the Provincial Government repaid Rs90.41 billion during this period.

  • Gold prices dip in Pakistan: 24-carat gold settles at Rs217,300 per tola

    Gold prices dip in Pakistan: 24-carat gold settles at Rs217,300 per tola

    The domestic price of gold witnessed a decline, particularly impacting 24-karat gold in Pakistan, which dropped by Rs600 per tola to reach Rs217,300.

    According to the Karachi Sarafa Association, the price for 10 grammes of 24-karat gold was reported at Rs186,300, marking an increase of Rs514.

    The price for 10 grammes of 22-karat gold was Rs170,775 during this period.

    In contrast, silver remained steady in the local market, with 24-karat silver being traded at Rs2,650 per tola and Rs2,271.94 per 10 grammes.

    Internationally, the spot price of gold experienced a decline of $15, or 0.74%, reaching $2,039. It’s noteworthy that, at the time of the Karachi Sarafa Association’s report, the international spot rate had decreased by $8.

    It’s worth mentioning that 24-karat gold in Pakistan has observed a decline for the second consecutive week, as reported in the previous week.

  • Pakistan’s key industries report 3.63% output increase

    Pakistan’s key industries report 3.63% output increase

    In November 2023, Pakistan’s Large Scale Manufacturing Industries (LSMI) experienced a notable monthly growth of 3.63 per cent, reaching a production index of 114.85, as reported by the Pakistan Bureau of Statistics (PBS).  

    This marks an increase from the October 2023 figure of 110.83. 

    On an annual basis, LSMI output demonstrated a year-on-year rise of 1.59 per cent, contrasting with the November 2022 recorded index of 113.05. 

    However, when considering the cumulative data for the first five months of Fiscal Year 2024 (5MFY24), LSMI exhibited a marginal decline of 0.8 per cent when compared to the corresponding period in the previous year. 

    Various sectors played a significant role in contributing to this overall decline of -0.80 per cent. Notable contributors to the growth include food (0.53), garments (3.18), petroleum products (0.43), chemicals (0.32), pharmaceuticals (1.56), and cement (0.17).  

    Conversely, sectors such as tobacco (-0.80), textiles (-2.48), paper and board (-0.11), iron and steel products (-0.09), electrical equipment (-0.45), automobiles (-1.70), and furniture (-1.65) experienced contractions. 

    The provisional quantum indices of LSMI for November 2023, based on the 2015-16 reference year, have been formulated using the latest data provided by the relevant source agencies. 

  • Local gold market sees surge: Prices hit Rs217,900 per tola

    Local gold market sees surge: Prices hit Rs217,900 per tola

    On Monday, gold rates in Pakistan experienced a notable surge, mirroring an upward trend in the global market.

    The price of the precious metal reached Rs217,900 per tola in the local market, marking a gain of Rs450 within the day.

    According to data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the 10-gramme gold was traded at Rs186,814, reflecting an increase of Rs386.

    This upward trajectory follows a noteworthy rise of Rs950 per tola in gold prices on the preceding Saturday.

    The international gold rate exhibited a similar positive movement, reaching $2,075 per ounce on Monday with a $20 premium.

    This uptick of $7 in the global market was reported by APGJSA. Meanwhile, silver rates remained unchanged at Rs2,650 per tola.

    These fluctuations in precious metal prices highlight the dynamic nature of the market, influenced by both domestic and international factors.

    Investors and stakeholders continue to monitor these developments for their implications on the broader economic landscape.

  • Pakistan’s weekly inflation soars beyond 44%

    Pakistan’s weekly inflation soars beyond 44%

    In the latest economic developments, Pakistan has witnessed a surge in weekly inflation for the third consecutive week, marked by a notable increase in the Sensitive Price Indicator (SPI) for the Combined Group.

    The SPI for the said group witnessed a significant rise of 1.36 per cent week over week (WoW) during the week concluded on January 11, 2024.

    Adding to the economic landscape, the SPI showcased a remarkable year-over-year (YoY) increase of 44.16 per cent, comparing the current statistics with the corresponding period from the previous year.

    Last week’s SPI for the Combined Group demonstrated a WoW increase of 0.81 per cent.

    Data released by the Pakistan Bureau of Statistics (PBS) reveals that the combined index stood at 317.92 in comparison to 313.66 on January 4, 2024.

    Notably, this index was recorded at 220.53 a year ago, specifically on January 12, 2023.

    Among the 51 items analysed, 21 experienced an increase in average prices, while prices for 8 items decreased, and 22 items remained stable.

    The noteworthy price hikes during the week were observed in tomatoes (15.63 per cent), onions (8.94 per cent), chicken (6.42 per cent), electricity charges for Q1 (5.11 per cent), and eggs (4.31 per cent).

    Conversely, significant decreases were noted in the prices of potatoes (5.92 per cent), vegetable ghee (1 KG) (0.84 per cent), sugar (0.43 per cent), vegetable ghee (2.5 KG) (0.29 per cent), and mustard oil (0.26 per cent).

    The weekly SPI percentage change, when categorised by income groups, indicated a uniform increase ranging between 1.2 per cent and 1.34 per cent across all quantiles. The lowest-income group experienced a 1.2 per cent rise, while the highest-income group recorded a 1.34 per cent increase.

    On a yearly basis, the analysis of SPI change across various income segments revealed an overall increase ranging from 36.06 per cent to 47.48 per cent.

    The lowest-income group witnessed a yearly rise of 36.06 per cent, whereas the highest-income group recorded a significant increase of 42.71 per cent.

  • Gold prices surge in Pakistani market, 24-karat hits Rs216,500 per tola

    Gold prices surge in Pakistani market, 24-karat hits Rs216,500 per tola

    On Friday, the domestic bullion market saw a modest increase, with the price of 24-karat gold in Pakistan rising by Rs200 per tola to reach Rs216,500.

    The Karachi Sarafa Association noted that the price of 10-gramme 24-karat gold reached Rs185,614, indicating a gain of Rs172, while the 10-gramme 22-karat gold stood at Rs170,146.

    In contrast, silver remained steady in the local market, with 24-karat silver being sold at Rs2,650 per tola and Rs2,271.94 per 10-gramme.

    On the global scale, international spot gold is currently trading at 2,036.75, marking an increase of $8.55 or 0.4% for the day.

    Notably, when the Karachi Sarafa Association reported local rates, the spot rate in the international market had seen a slight uptick of $4.