Tag: November 2023

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.

January 15, 2024
Pakistan’s current account records first surplus since June 2023

In a noteworthy turnaround, Pakistan’s current account, after four consecutive months of deficits, revealed a surplus of $9 million in November 2023.

This marks a stark contrast to the $157 million deficit recorded in the same month the previous year, as reported by the State Bank of Pakistan (SBP) on Monday.

This surplus, the first since June 2023, is significantly lower in volume compared to its standing at $520 million.

Analysts attribute this surplus to a substantial rise in the country’s exports and remittances, coupled with a marginal decline in imports. Worth noting is the previous month’s current account deficit of $184 million in October 2023.

According to SBP data, November 2023 witnessed a 12 per cent surge in the country’s exports (goods and services) to $3.364 billion, compared to $2.999 billion in November 2022.

Simultaneously, remittances reached $2.25 billion, reflecting a 4 per cent increase from the same month last year. Conversely, total imports saw a nearly 6 per cent reduction to $5.29 billion in November 2023, down from $5.01 billion the previous year.

SBP reports a significant improvement, with Pakistan’s current account deficit for July-November of FY24 standing at $1.16 billion, a remarkable 64 per cent decrease from the $3.3 billion deficit in the same period of the previous fiscal year (FY23).

During its latest Monetary Policy Committee meeting on December 12, the SBP highlighted a notable enhancement in the current account balance, with the deficit narrowing by 65.9 per cent year-on-year to $1.1 billion during Jul-Oct FY24.

This shift is crucial for economically challenged Pakistan, heavily reliant on imports, as a widening deficit exerts pressure on the exchange rate and depletes official foreign exchange reserves, currently standing at slightly over $7 billion according to the latest data.

December 18, 2023
Govt expected to hike petrol price on Thursday

In the final fortnight of November 2023, the per litre price of petrol in Pakistan is projected to experience an increase of Rs3.18, while high-speed diesel (HSD) is anticipated to undergo a reduction of Rs8.30 per litre on Thursday, November 16.

Sources have indicated that the pricing trajectory of petroleum products is poised for a mixed trend in the latter half of the current month of November 2023.

The price of petrol is forecasted to rise from Rs283.38 per litre to Rs286.56 per litre, marking an uptick of Rs3.18 per litre.

Correspondingly, the cost of HSD/diesel is expected to decrease by Rs8.30 per litre, moving from Rs303.18 per litre to Rs 294.88 per litre.

Additionally, the price of kerosene oil is projected to witness a decline of Rs5.61 per litre, transitioning from Rs211.03 per litre to Rs205.42 per litre.

Furthermore, the price of light diesel oil (LDO) is set to experience a reduction of Rs8.33 per litre, shifting from Rs189.46 per litre to Rs181.13 per litre.

These price adjustments are calculated based on current government taxes and the prevailing US dollar exchange rate, as per informed sources.

According to Profit, the government may uphold the price of petrol due to outstanding forex adjustments, while a reduction of Rs10 per litre is expected for diesel (HSD).

Notably, starting from 1st November 2023, the government has imposed a petroleum levy (PL) of Rs60 per litre on petrol and diesel, alongside receiving an Inland Freight Equalization Margin (IFEM) of Rs7.71 per litre on petrol and Rs0.60 per litre on diesel.

Additionally, the Dealers’ Margin (inclusive of extra margin) on petrol and diesel presently stands at Rs8.64 per litre.

Similarly, the margin for Oil Marketing Companies is fixed at Rs7.87 per litre.

Furthermore, the Distributors’ Margin (inclusive of extra margin) on diesel is currently set at Rs8.12 per litre, and on petrol, it is Rs7.87 per litre, effective from 1st November 2023.

On 1st November, the government maintained the prices of petrol and diesel at Rs283.38 per litre and Rs303.18 per litre, respectively.

Simultaneously, the price of kerosene oil witnessed a reduction of Rs3.82 per litre, establishing the new price at Rs211.03 per litre.

The price of LDO was also decreased by Rs3.40 per litre, fixing the new price of LDO at Rs189.46 per litre for the first half of November 2023.

November 13, 2023