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Business Recorder
a day ago
- Business
- Business Recorder
Overseas Pakistanis help country post historic current account surplus of $1.9bn in 10MFY25
Pakistan has reported a current account surplus of $1.9 billion during the first ten months of the financial year 2024-25, marking a major turnaround from the $1.3 billion deficit recorded in the same period last year, according to the Pakistan Economic Survey 2024-25 unveiled on Monday. The improvement comes despite ongoing geopolitical disruptions in global trade and a widening trade deficit. The surplus was largely driven by a record-breaking $31.2 billion in remittances, reflecting a nearly 31% year-on-year increase in the said period. A monthly high of $4.1 billion in March 2025 helped ease external financing pressures and supported the build-up of foreign exchange reserves, which climbed to $16.60 billion as of May 30, including $11.51 billion held by the State Bank of Pakistan (SBP). Another strong contributor was the IT sector, which posted $3.1 billion in export earnings, including $400 million generated by freelancers—a testament to the growing digital services economy. Pakistan's current account posts $12mn surplus in April 2025 However, challenges persist. The goods trade deficit rose to $21.3 billion, as imports increased by 11.8%, outpacing the 6.8% growth in exports, which stood at $26.9 billion. Key export drivers included textiles and rice, while imports surged mainly in petroleum, machinery, and food. 'The government achieved a historic primary surplus of 3% of GDP for July-March FY25, up from 1.5% in the same period last year (FY24),' Finance Minister Muhammad Aurangzeb said in the Economic Review. The services account also widened, registering a $2.5 billion deficit, while the primary income account deficit climbed to $7.1 billion, primarily due to higher interest payments and dividend repatriation. On the financial side, foreign direct investment slipped 2.7% to $1.8 billion, indicating subdued investor sentiment. Net outflows of $1.6 billion were recorded as debt repayments intensified and liabilities shrank. Despite these concerns, the rupee remained stable, trading at Rs278.72 against the US dollar, buoyed by external account improvements. With global trade expected to grow 2.7% in 2025, Pakistan aims to sustain its recovery through structural reforms under the URAAN Pakistan framework, focusing on export diversification, IT growth, trade diplomacy, and infrastructure improvements. The current account surplus signals progress, but sustaining momentum will require targeted reforms to address underlying vulnerabilities in the external sector.
India Gazette
28-05-2025
- Business
- India Gazette
India offers deep cuts on tariffs as talks with US proceed FT
New Delhi aims, however, to maintain high tariffs on key agricultural products, the outlet has said India has proposed deep cuts in import tariffs on various goods, in an effort to reach a preliminary trade agreement with the US, the Financial Times reported on Wednesday. However, the country reportedly aims to maintain high tariffs on sensitive agricultural products, such as grains and dairy items. India is seeking to secure a deal before July 9, when the US has threatened to impose a 26% reciprocal tariff on all Indian goods. Sources familiar with the negotiations told the FT that India has shown willingness to cut tariffs on less sensitive farm products such as almonds, which currently face tariffs of up to 120%. It could also consider reducing tariffs on imported oil and gas, which range from 2.5 to 3%, the report said. The FT's sources declined to provide details on the range of US goods which New Delhi offered to "substantially" cut tariffs on, as the negotiations were at an "early stage." Indian trade officials have hinted, however, that any concessions would be similar to those offered in recent trade agreements, such as the one they have with the UK, in which India agreed to reduce tariffs on items such as alcoholic spirits, cars - including electric vehicles - car parts, and engineering goods. On Tuesday, India said that a successful trade agreement with the US could "flip current headwinds into tailwinds," according to a report by the Finance Ministry'sMonthly Economic Review. This can "open up new market access and energize exports," the report added. The US introduced an additional tariff on Indian products, effective April 2, but it was suspended for a 90-day period, and is set to expire on July 9. Meanwhile, the standard 10% US tariff on Indian goods remains in places. US President Donald Trump hascalled Indiathe "tariff king." In February, New Delhi announced a reduction in customs duties on items including luxury cars and solar cells, according to reports, in a move seen as aimed at addressing US trade concerns. India's federal budget for 2025 proposed reducing the peak import tariff from 150% to 70% and average tariffs from 13% to below 11%. India is also willing to buy US defense equipment and liquefied natural gas, government officials said. However, despite this, the US has advised companies such as Apple to avoid expanding manufacturing in India. (
Mint
01-05-2025
- Business
- Mint
Deloitte sees Indian economy picking up as tax stimulus to offset tariff woes
New Delhi: Deloitte expects India's economy to grow at a slightly faster pace in the ongoing financial year, breaking away from other international heavyweights that recently cut their projections for the country. The global consultancy sees the Indian economy growing at 6.5-6.7% in 2025-26, up from an estimated 6.3-6.5% in 2024-25, driven by strong domestic demand that could offset the impact of global trade uncertainties. India's economy treads a careful balance between shifting global trade dynamics and government measures to stimulate domestic demand, Deloitte said on Thursday in its India Economy Outlook for May. According to Deloitte, India's economic growth in FY26 will be contingent on two opposing forces—the positive impact of tax incentives aimed at growing consumer spending, and the potential impact of the uncertainty in global trade networks on the Indian economy. 'The interplay of tax stimulus and trade uncertainties could keep growth between 6.5% and 6.7% for the current fiscal year,' it added. The International Monetary Fund recently cut its FY26 forecast on India's economic growth to 6.2% from its earlier estimate of 6.5%, and slashed its global trade outlook as the US tariff war raises concerns worldwide. IMF's revision followed similar cuts by the Asian Development Bank, Moody's Analytics, and S&P Global. Moody's Analytics cut its calendar 2025 growth forecast for India to 6.1%, down by 30 basis points from its March projection, in response to the US tariffs. On Tuesday, the Union finance ministry said in its Economic Review for March that India's economy continued to show resilience and stability despite global uncertainties and trade-related disruptions, with key indicators pointing to sustained growth momentum in the final quarter of FY25. Last month, US President Donald Trump imposed a 27% reciprocal tariff on Indian goods, claiming the South Asian country levied an average 52% on US imports. However, his administration soon moved to temporarily ease duties on trading partners, including India. The US reciprocal tariff on India temporarily stands at 10% while the two nations progress towards stitching a bilateral trade agreement. 'All eyes are on the ongoing negotiations between the two nations', said Rumki Majumdar, economist, Deloitte India. 'Indian exports to the US tend to be more price-sensitive, while our imports are relatively less elastic. This makes it critical to preserve our export competitiveness,' she added. 'Depending on India's ability to negotiate with the US and come up with a bilateral trade agreement quickly, trade tariffs may potentially shave 0.1% to 0.3% off India's growth.' According to Deloitte, India's economic slowdown in FY25 was primarily due to election-driven uncertainties, unexpected rainfall in the first half of the year, and global trade volatility. However, the government's decision to forgo about Rs1 trillion in revenue through income tax cuts could see more money in the hands of the middle-class consumers, driving up consumption. 'The tax exemptions announced during the budget will increase disposable income in the hands of the young population with higher income elasticity… The projected economic expansion and immediate impact on consumption could translate to an impact of around 0.6% to 0.7% of the nation's GDP in fiscal year 2025 to 2026,' Majumdar said. 'The consumption multiplier (increase in final income driven by new injection of spending) could create economic activity worth between ₹ 6.7 trillion and ₹ 7.9 trillion in the medium term, creating a cycle of economic growth,' she said. Majumdar added that lower inflation, rangebound global oil prices, lower borrowing rates, more liquidity (due to the easier monetary policy), and a more certain global environment would help boost sentiment. First Published: 1 May 2025, 04:50 PM IST
Mint
29-04-2025
- Business
- Mint
Indian economy showing resilience amid global uncertainties, says finance ministry
New Delhi: India's economy continues to show resilience and stability despite global uncertainties and trade-related disruptions, with key indicators pointing to sustained growth momentum in the final quarter of FY25, said the finance's ministry's Economic Review for March, released on Tuesday. Rising GST collections, higher e-way bill generation, improved consumer sentiment, and a manufacturing revival indicated strengthening economic activity, while rural demand remained steady with increased household consumption, it added. The document, prepared by the finance ministry's department of economic affairs, said manufacturing was on the upswing, with the Reserve Bank of India's industrial outlook survey reporting stronger production, order books and capacity utilisation, and its order books, inventories and capacity utilisation survey for Q3FY25 also indicating higher capacity utilisation and underscoring an industrial recovery. The ministry added that inflation had eased significantly, with retail inflation falling to 4.6% in FY25 from 5.4% a year earlier—the lowest in six years—helped by government interventions and a favourable harvest that moderated food prices. In March 2025, India recorded its lowest year-on-year inflation since September 2019. "While the overall inflation outlook has improved, supported by a rate cut and positive food price trends, geopolitical uncertainties warrant close monitoring," the ministry added. India's retail inflation eased to a six-year low in March, driven by softer food prices. Consumer price index (CPI)-based inflation rose 3.34% year-on-year in March, down from 3.61% in February and 4.85% a year earlier. Food inflation also moderated to 2.69% in March from 3.75% in February and 8.52% in in March 2024. The latest monthly Economic Review also highlighted the government's continued commitment to fiscal consolidation, with the general government fiscal deficit steadily declining from its pandemic highs, thereby increasing the availability of domestic savings for private-sector investment and reducing the overall cost of capital. India reported economic growth of 6.2% of GDP in Q3FY25, up from 5.6% in the previous quarter, leaving much to be done in the final quarter to achieve the full-year revised growth target of 6.5% set by the National Statistical Office. Recently the International Monetary Fund (IMF) cut India's growth forecast for the current fiscal year (FY26) from 6.5% to 6.2%, owing to US tariffs. The revision came after similar cuts by the Asian Development Bank (ADB), Moody's Analytics and S&P Global, which downgraded India's growth forecast for the same reasons. The economic review also stressed the importance of timely action by policymakers and businesses to prevent uncertainty from dampening momentum, noting that India's large domestic economy presented an opportunity to trigger a virtuous cycle of investment, income growth, demand, and capacity expansion. "In contrast to normal times, action and execution have greater impacts now. It is an opportunity not to be missed," it added. First Published: 29 Apr 2025, 05:35 PM IST
Zawya
22-04-2025
- Business
- Zawya
Nigeria's manufacturing records $623mln expenditure on alternative energy sources, 17,949 employees exit in 2024 —Report
The nation's manufacturing sector was not without its fair share of challenges that faced the different sectors of the economy, in 2024, as a total sum of N1.11trilliion was spent by operators in the sector on alternative energy sources; and with 17949 employees exiting the sector, during the period. This, according to a new report, tagged: 'MAN Economic Review Half Year 2024', released by the Manufacturers' Association of Nigeria (MAN), indicates a 42.3 percent increase from N781.68 billion spent for same purpose, in 2023. The result, on a half-on-half basis, also revealed that manufacturers spent of N404.80 billion in H1 2024, increased by 75.0 percent to N708.07 billion in H2 2024. According to the report, the Food, Beverage & Tobacco sector recorded N229.41 billion in alternative energy spending, up from N182.76 billion in 2023, while Chemical & Pharmaceutical energy costs doubled to N208.68 billion. The Non-Metallic Mineral Products sector's energy costs increased by 33.7 percent to N118.49 billion, and the Textile, Apparel & Footwear industry saw a fourfold increase, reaching N26.45 billion in 2024, compared to N6.97 billion in 2023. The report noted that while there was an improvement in electricity supply situation for industries in 2024, with average daily supply increasing to 13.3 hours per day, up from 10.6 hours in 2023; electricity tariffs, however, surged by over 200 percent for Band A consumers, thereby increasing manufacturing costs, significantly, in the year under review. 'While power availability improved, many manufacturers still faced frequent outages, and costs as the country witnessed 12 national grid collapses and this remained a major concern. In response to unreliable grid power and increases in prices of Diesel and PMS,' the report stated. The number of employees leaving manufacturing companies also increased from 17,364 in 2023 to 17,949 in 2024, representing ongoing labour mobility, due to economic uncertainties, skill migration, and company restructuring. A total of 16,820 new jobs were created in 2024, a situation the report described as 'nearly unchanged' from the 16,799 created in 2023. On investment in the sector under review, the sector was said to have witnessed a decline in manufacturing investment by 35.3 percent year-on-year to N658.81 billion in 2024, reflecting economic uncertainty and reduced expansion plans. Perhaps a glimmer of hope was shown by the sector performance in H2 2024, regarding investments in the sector, as it witnessed a 19.4 percent increase compared to H1 2024, as manufacturers cautiously resumed capital expenditures. 'In nominal terms, total investment declined by 11.3 percent to N2.85 trillion, with Land & Buildings and Furniture & Equipment seeing the most significant declines,' the report stated. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
