Latest news with #PakistanBusinessForum
Business Recorder
8 hours ago
- Business
- Business Recorder
PBF urges PM to address artificial control of exchange rate
KARACHI: The Pakistan Business Forum (PBF) has strongly urged the Prime Minister Shehbaz Sharif to address the artificial control of the exchange rate, asserting that the current dollar rate is being kept artificially high. Economic indicators suggested that the fair value of the dollar should be around PKR 260. PBF Chief Organiser, Ahmad Jawad called on the Prime Minister Shehbaz Sharif to take immediate notice of this situation. 'A correction of even PKR 20 in the rupee's value could significantly reduce both public debt and inflation,' Jawad stated. He emphasized that historically, Pakistan has failed to restore the rupee after depreciation, creating long-term instability. Even the Current Account Surplus ('CAS') of $2,106 million during the Jul-June period of FY25, compared to a Current Account Deficit of $2,072 million in the same period of FY24. The Forum noted that the current exchange rate of PKR 283 per dollar is unsustainable for the economy. Meaningful economic relief, they stressed, can only be achieved if the rupee is stabilized. Jawad also pointed out that inflation has dropped to 4% and the Consumer Price Index (CPI) is down to 3%, making the current interest rate of 11% unjustifiable. PBF has urged that the upcoming monetary policy, scheduled for July 30, should bring the interest rate down to at least 9%. The Forum also revealed that the government is paying 11% interest on domestic debt totalling PKR 50 trillion; 5–6% higher than the current inflation rate. This discrepancy imposes an annual burden of approximately PKR 3 trillion on the national exchequer, which could otherwise be used for public welfare and infrastructure development. Lower interest rates would also boost Pakistan's export potential in global markets, the Forum stated. The IMF itself recommends that interest rates be kept closer to the prevailing inflation rate. PBF further stressed the need to diversify Pakistan's export base beyond textiles, advocating for the exploration of new industries and markets. Additionally, the Forum urged the State Bank of Pakistan to ensure access to credit for the business community in Balochistan in the upcoming monetary policy. Jawad concluded by expressing concern over the growing frustration among the business community, citing a lack of attention to the challenges faced by productive sectors. He expressed hope that the Monetary Policy Committee will adopt a growth-friendly and pragmatic approach in its meeting on July 30th. Copyright Business Recorder, 2025
Express Tribune
13 hours ago
- Business
- Express Tribune
'Artificial control' keeps dollar overvalued by Rs20
The Pakistan Business Forum (PBF) has urged Prime Minister Shehbaz Sharif to address the artificial control over currency exchange rate, asserting that the current dollar value is being kept deliberately high. Economic indicators suggest that fair value of the dollar should be around Rs260, it said. In a statement, PBF Chief Organiser Ahmad Jawad called on the premier to take immediate notice of the situation as a correction of even Rs20 in the rupee value could significantly reduce both public debt and inflation. He pointed out that historically Pakistan had failed to restore true value of the rupee after depreciation, which resulted in long-term instability. The forum noted that the current exchange rate of Rs283 to a dollar was unsustainable for the economy. "A meaningful economic relief can only be achieved if the rupee stabilises." Jawad pointed out that inflation, measured by the Consumer Price Index (CPI), had dropped to around 3%, making the current 11% interest rate unjustifiable. The PBF stressed that the upcoming monetary policy, scheduled for July 30, should bring the interest rate down to at least 9%. It added that the government was paying 11% interest on domestic debt totalling Rs50 trillion, which was 5-6% higher than the current inflation rate. "This discrepancy imposes an annual burden of approximately Rs3 trillion on the national exchequer, which can otherwise be used for public welfare and infrastructure development." Lower interest rates would also boost Pakistan's export potential in global markets, the forum stated, adding that the IMF itself recommended that interest rates be kept closer to the prevailing inflation rate. The PBF underlined the need for diversifying Pakistan's export base beyond textile and advocated the search for new industries and markets. Additionally, the State Bank of Pakistan should ensure access to credit for the business community in Balochistan in the upcoming monetary policy. Jawad concluded his remarks through expressing concern over growing frustration among the business community due to the lack of attention to challenges faced by the productive sectors. He expressed hope that the Monetary Policy Committee would adopt a growth-friendly and pragmatic approach in its upcoming meeting.
Express Tribune
13 hours ago
- Business
- Express Tribune
Rupee continues uptrend with appreciation of 24 paisa
The Pakistani rupee appreciated against the US dollar on Monday, gaining 0.08% in the inter-bank market. At close, the rupee settled at 283.21, an increase of 24 paisa. The fresh gain reflects a recent trend of strength, with the local unit rising 0.50% against the greenback last week, its strongest weekly performance in 93 weeks, according to a report of AKD Securities. The rupee had closed the previous week at 283.45 against 284.87 a week earlier. Amid this positive momentum, the Pakistan Business Forum (PBF) has raised concerns over what it calls an artificially controlled exchange rate. It claims the real value of the dollar should be around Rs260 based on current macroeconomic indicators. Gold prices in Pakistan declined on Monday, mirroring a downward trend in the international market as investor appetite for safe-haven assets weakened following a breakthrough in US-European Union trade negotiations. The price of gold per tola in the local market fell Rs100 to settle at Rs356,300, according to the All Pakistan Sarafa Gems and Jewellers Association (APGJSA). Similarly, the rate for 10 grams of gold declined Rs85 to Rs305,470. The local market tracked a near three-week low in international bullion prices as the dollar strengthened and market sentiment improved after reports emerged of a trade accord between Washington and Brussels. Although the deal has not yet been officially signed, its confirmation has been enough to boost risk appetite and reduce the demand for gold as a traditional safe-haven asset. Interactive Commodities Director Adnan Agar noted that gold prices eased due to shifting global dynamics. "Gold touched a low of $3,301, with the high at $3,345. It was later trading around $3,309," he said. "The tentative agreement between the US and EU has softened gold's appeal. Now, all eyes are on key US economic indicators due later this week." Investors are closely watching for two major releases from the United States – the Federal Reserve's monetary policy decision expected on Wednesday night and the monthly employment report scheduled for Friday. "These two data points will heavily influence market sentiment and gold's trajectory in the days ahead," Agar added. The decline comes after Saturday's trading saw a drop in domestic gold rates, when the per-tola price fell Rs300 to Rs356,400. Analysts say that unless new geopolitical risks emerge or economic data disappoints, gold may remain under pressure in the short term.
Business Recorder
3 days ago
- Business
- Business Recorder
PBF urges MPC, SBP chief to announce interest rate at 6pc
KARACHI: President of Pakistan Business Forum (PBF) Karachi Division, Malik Khuda Bakhsh has urged the Monetary Policy Committee and the Governor of the State Bank of Pakistan to announce the interest rate at 6 percent in line with business community expectations. Malik Khuda Bakhsh stated that currently the country's CPI index is 0.3 percent and inflation has dropped to 4 percent. The IMF has also recommended that interest rates be kept close to the inflation rate. He said that Pakistan's current interest rate of 11% is too high, making it nearly impossible to conduct business. Reducing the rate to 6 percent is essential for the revival of business activities. He supported the demand made by United Business Group's Patron-in-Chief, S.M. Tanveer, to reduce the interest rate to 6 percent in the upcoming monetary policy. He pointed out that the government holds 8.5 trillion rupees in interest-bearing liabilities. Lowering the rate to 6 percent could save around 3.5 trillion rupees, which would positively impact the economy—especially industries struggling with high interest rates and electricity costs. He added that Pakistani exports could become more competitive globally, as international markets typically have interest rates between 4–5 perent. He criticized recent budget measures, such as Sections 37A and 37B which grant powers of arrest and detention, stating that such moves further hinder business growth. Malik Khuda Bakhsh emphasized the need for a business-friendly environment and urged the government to reconsider policies that conflict with business interests. Instead, the focus should be on creating conditions that promote growth, investment, and competitiveness. The PBF Karachi Region President further said that with inflation expected to stabilize around a long-term average of 7% in the coming quarters, a rate cut would be beneficial. Sustainable measures are needed to overcome economic challenges and restore investor confidence. Given the increase in imports and weak financial flows, pressure is mounting on the external account. Therefore, a cautious approach is necessary. Although the economy is showing signs of improvement, it still needs strengthening—and reducing the interest rate to a single digit (6 percent) is crucial to make loans more affordable and help industry grow. Copyright Business Recorder, 2025
Business Recorder
30-06-2025
- Business
- Business Recorder
Weekly Cotton Review: Mixed trend persists on improved trading
KARACHI: The cotton market witnessed a mixed trend. Trading activities showed improvement. The spot rate recorded a decline of Rs 200 per maund. In the recent budget, the government has fulfilled the long-standing demand of APTMA by discontinuing the Export Facilitation Scheme (EFS) on imported cotton, yarn, and fabric. This move has provided a level playing field for the local industry to compete internationally, earning appreciation from industrial circles. Recent rains in Sindh and Punjab have led to the partial closure of ginning factories, affecting production activities. However, experts suggest that while the rainfall will benefit the cotton crop, standing water in the fields could pose a risk of damage. Earlier, the crop had already suffered due to extreme heat, prompting farmers to remain vigilant about weather fluctuations. On another front, discussions were held between the leadership of China and APTMA to promote bilateral trade. Both sides emphasized maximizing benefits from the Free Trade Agreement (FTA) to further strengthen trade relations between the two countries. Joint measures in this regard are currently under consideration. Sohail Talat, Chairman of the Pakistan Business Forum (PBF) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has demanded the revival of the cotton industry in South Punjab. He declared that the struggle to eliminate taxes on cotton would continue until the government meets their demands. Ahsan-ul-Haq, Chairman of the Ginners Forum, stated that Pakistan's agriculture sector, particularly cotton crops, is facing severe damage due to the inefficiencies of the Meteorological Department. He emphasized the need for better weather forecasting and policy interventions to protect farmers' livelihoods. The Pakistan Cotton Ginners Association (PCGA) had demanded the removal of taxes on Khal and Banola, but the government has yet to take action. This delay has caused significant unrest among cotton growers, who are already struggling with financial and operational challenges. The local cotton market witnessed mixed trends in cotton prices over the past week. While prices in Sindh remained relatively weak, the Karachi Cotton Association's Spot Rate Committee reduced the spot rate by PKR 200 per maund, closing it at PKR 16,300 per maund. The supply of phutti (seed cotton) increased in both Sindh and Punjab, leading to the resumption of operations in several ginning factories. However, due to the distribution of phutti among a larger number of factories, many are operating only partially. The recent rains in Sindh and Punjab have discouraged ginners from purchasing large quantities of phutti, which is expected to disrupt the arrival of phutti and affect cotton quality. The government has discontinued the Export Facilitation Scheme (EFS) for cotton, yarn, and fabric in the budget and imposed an 18% sales tax on imported cotton, yarn, and fabric. This fulfills APTMA's long-standing demand for a level playing field, which is expected to benefit cotton farmers and encourage textile mills to purchase local cotton, thereby boosting domestic trade. According to a report, the sales tax on imported cotton, yarn, and fabric—as well as local cotton—may be reduced from 18% to 10%. However, confirmation of this news will only be possible after the official notification is issued. Meanwhile, the Pakistan Cotton Ginners Association (PCGA) remains concerned as its demand for the removal of taxes on cotton by-products, such as cottonseed oil and cake, has not been met. The Pakistan Kissan Ittehad has also raised its concerns and urged the government to address PCGA's demands. Sohail Talat, Chairman of the Pakistan Businesses Forum (PBF) and FPCCI, emphasized that the struggle to eliminate taxes on cotton will continue until the demands are met. The rate of cotton in Sindh is in between Rs16,200 to Rs 16,500 per maund, while the rate of phutti is in between Rs 7,500 to Rs 8,200 per 40 kg. In Punjab, cotton prices stood at Rs 16,700 to Rs 16,800 per maund. The rate of Phutti is in between Rs 7,800 to Rs 8,400 per 40 kg. However, prices of Banola have declined. The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by Rs 200 per maund, closing it at Rs 16,300 per maund. Karachi Cotton Brokers Forum Chairman Naseem Usman said that international cotton prices showed a mixed trend, with New York cotton futures trading between 66.00 to 69.00 cents per pound. According to the USDA's weekly production and sales report, 27,300 bales were sold for the 2024-25 season. Pakistan remained the top buyer, purchasing 9,200 bales, followed by Vietnam with 7,700 bales, and Japan in third place with 2,500 bales. For the 2025-26 season, sales reached 64,700 bales. Vietnam led with 34,300 bales, followed by El Salvador with 15,300 bales, and Malaysia in third place with 8,000 bales. Chinese Consulate General and All Pakistan Textile Mills Association (APTMA) leadership have resolved to upsurge bilateral trade, take maximum advantage of Free Trade Agreement (FTA) and to explore possibilities of joint ventures in textile industry. Zhao Shiren Consul General of China, Li Haoteng, Commercial Counsellor and Wang Yaqiang, Vice Consul visited APTMA office on Tuesday and discussed in detail prospects, ways and means to increase volume of trade and joint ventures in textile industry. Dr Gohar Ejaz, Patron-in-Chief APTMA and Chairman APTMA Kamran Arshad welcomed the Chinese Consul General at APTMA. They were accompanied by Syed Ali Ahsan, former Chairman APTMA, Zonal Management Committee members including Haroon Ellahi, Muhammad Ali, Faisal Jawed, Ahsan Shahid, Ismail Fareed, Habib Anwar, leading textile exporters, Secretary General APTMA Shahid Sattar and Secretary General North Mohammad Raza Baqir. Speaking on the occasion, Zhao Shiren said both China and Pakistan enjoy strong economic and cultural relations and China Pakistan Economic Corridor (CPEC) is an example of this robust relationship between both the countries. He highly appreciated the role of APTMA in general and of Dr Gohar Ejaz in particular in expansion of bilateral economic relations. He enumerated highly plausible services rendered by Dr Gohar Ejaz in cementing relation between China and Pakistan not only as Commerce Minister but also in his private capacity. He also spoke volume about community and welfare services being performed by Gohar Ejaz Foundation for poverty alleviation, medical services, educational and research uplift and industrialization of the country. Consul General highlighted expansion of bilateral trade since the signing of China-Pakistan Free Trade Agreement (FTA) in 2006 and resolved to further uplift the said volume by taking maximum benefits from FTA. He noted that balance of trade is presently in favour of China and assured of his help to not only expand trade volume but also to bridge the gap in balance of trade. He informed that textile goods falling in more than 800 HS tariff lines of customs chapters 50 to 63 enjoy duty free status under FTA on import into China from Pakistan. He emphasised Pakistani textile industry to avail duty free regime widely liberalized for Pakistani textile products since implementation of Phase II of FTA in 2020. According to reports, cotton has been cultivated on 3.128 million acres in Punjab and 1.005 million acres in Sindh. The expected yield per acre is estimated at 170 kg. Punjab is projected to produce 4.898 million bales, while Sindh is expected to yield 2.519 million bales. The total anticipated cotton production for both provinces stands at 7.417 million bales. Copyright Business Recorder, 2025
