Latest news with #PBF
Business Recorder
a day 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
a day 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
a day 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
4 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
Express Tribune
7 days ago
- Business
- Express Tribune
Industry awaits SRO on 18% cotton import tax
Listen to article The Pakistan Business Forum (PBF) has called on the Federal Board of Revenue (FBR) to immediately issue a Statutory Regulatory Order (SRO) for imposing 18% general sales tax (GST) on imported cotton, as outlined in the Finance Bill 2025. In a statement, the PBF emphasised that despite clear announcement in the federal budget to tax the imported cotton, its implementation was pending due to the absence of the required SRO. "More than three weeks have passed since approval of the budget, yet the delay continues without any justifiable reason." According to the PBF, credible reports indicate that certain influential interest groups are obstructing the issuance of the SRO. "The government must ensure transparency and move forward in the interest of local cotton growers and the economy," said PBF Chief Organiser Ahmad Jawad. The forum cautioned that cotton imports had exceeded domestic production for the first time in Pakistan's history – a development that poses serious risks to sustainability of textile and agriculture sectors. "The FBR must act urgently, keeping in view the seriousness of the issue and release the SRO without further delay," it said. The forum disclosed that importers had already entered into agreements for 7.5 million bales of cotton from international markets. "After much effort, local cotton farmers finally achieved a level playing field through legislation. The time has come to translate that into action," Jawad said. To reclaim Pakistan's status as a leading cotton-producing nation, he underlined the need for federal and provincial governments to launch a nationwide cotton revival programme. He recommended that the import of raw material, especially those impacting domestic industries, should be entirely excluded from the Export Facilitation Scheme. The forum also expressed concern over the current state of cotton crops. According to the latest figures, Sindh's performance remains particularly troubling, with reported supply of only 152,650 bales so far this year, compared to 327,666 bales in the same period of last year – a decline of 53%. In contrast, Punjab has shown relatively better results, with supply of 145,101 bales, reflecting a 27% rise over last year. Notable growth has been observed in several districts, including Khanewal (28,825 bales), Vehari (33,950 bales), Dera Ghazi Khan (19,397 bales) and Rajanpur (9,200 bales) – all recording improved yields.
