General Economic Updates

[Beijingwalker]

Pakistan draws USD 56.9 million FDI from China in recent month​

ByStaff Report
January 18, 2024



ISLAMABAD: Pakistan secured USD 56.9 million in foreign direct investment (FDI) from China in December 2023, contributing to a cumulative Chinese investment of USD 292.8 million in the first six months of FY 2023-24.

Gwadar Pro reported this on Thursday quoting the latest statistics from the State Bank of Pakistan.

In the corresponding period of FY 2022-23, Pakistan received USD 333.1 million in FDI from China.

In December, China retained its position as the leading investor in Pakistan by injecting USD 56.6 million, constituting 23.4% of the total USD 243.3 million investments received by the country from various nations worldwide.

Similarly, China’s FDI accounts for 32% of the total USD 933.7 million FDI that Pakistan attracted in the July-December period of FY 2023-24.

The sectors attracting FDI include Power, Construction, Oil & Gas exploration, Textile, Trade, Transport, Communication, Information Technology and others.

In July-December FY 2023-24, Pakistan received USD 191.1 million from China’s Hong Kong, USD 127.9 million from United States, USD 120.7 million from the United Kingdom, USD 69.3 million from the Netherlands, USD 23.4 million from Singapore, USD 22.8 million from UAE.

Besides this, USD 20.5 million from Switzerland, USD 18.5 million Malaysia, USD 17.5 million from South Korea, 14.9 million from France, USD 12.3 million from Bahrain, USD 11.5 million from Lebanon, USD 9.7 million from Turkey, USD 8.8 million from Kuwait, USD 6.5 million from Panama, USD 5.8 million from Malta, USD 5.1 million from Italy, USD 5 million from Germany, USD 4.5 million from Canada.

And around the rest of the FDI came from other countries.

Pakistan draws USD 56.9 million FDI from China in recent month - Pakistan Today

Pakistan Today is an English-language daily newspaper published from Lahore, Islamabad and Karachi.

www.pakistantoday.com.pk

 

[Bilal]

“The State Bank of Pakistan (SBP) has recently disclosed that Pakistan has to repay foreign debt amounting to $27.47 billion by November 2024. This repayment includes both the principal loans and interest costs.”

Additionally, from what I remember, more $77 billion is due in next 3 years. The situation is dire with high risk of default.

It would be advisable to plan for debt restructuring. In any case any upcoming government will face very tough time and would need to make very tough and unpopular decisions.

@HRK @Baali Jutt @RescueRanger

 

[SD 10]

27 billion?

 

[Hakikat ve Hikmet]

What 27b$?? The Pak Deep State has enough cash flow to pay 270b$ at a moment's notice...

 

[Goenitz]

What 27b$?? The Pak Deep State has enough cash flow to pay 270b$ at a moment's notice...

Nope. I think they are not experts in converting looted wealth to multiple times. At best, they loot, buy properties, and live on rent with leftovers. Not smart businessmen.

 

[m52k85]

The annual 'Gross Financial requirement' (forex) has averaged $25bn for the past 5 years, every year it has been dire, every year the overall foreign debt has increased meaning (on average) every year Pakistan has failed to raise the required amount. See attached.

 

[Sainthood 2.0]

I mean TBH it'll be tough for the next 5 years at least no matter who forms the government

If we see higher growth rates within the next 2-3 years then probably it's unnatural and FM is conning Pakistan as usual

I'm just hoping for structural reforms and no short term gimmicks (like Tareen & Dar whose faults both partisans refuses to acknowledge)

 

[maithil]

Situation is dire from at least Zardari time. 15 years and counting... Pakistan will not go Bankrupt. No one wants that. Not even us. New debts will be made available whenever a breaking point is near. Pakistan’s people on the other hand will keep getting poorer.

 

[StormOfTruth]

Trade with Central Asia comes to a halt​

Trade between Pakistan and Central Asian countries has come to a standstill owing to the closure of five border crossings adjacent to Afghanistan.

Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) President Junaid Ismail Makda said that border crossings at Chaman, Torkham, Ghulam Khan, Angoor Ada and Kharlachi had been closed. “In light of this situation, traders are not only suffering significant losses in terms of demurrage and detention charges, but they are also worried about the perishable goods on trucks”, which would rot if the issue was not resolved immediately.

“Current circumstances are impacting both transit and bilateral trade,” he stressed, adding that there was utter uncertainty as trade with Central Asian states had ceased because of the closure of key border crossing points.

“Such state of affairs poses a major challenge to Pakistan’s economic stability in addition to impeding the flow of goods and services.” The PAJCCI president demanded that the authorities concerned resolve the issue swiftly as the ongoing blockade was putting the trade ties between Pakistan and Afghanistan at risk.

Published in The Express Tribune, January 19th, 2024.

 

[SD 10]

keep it close... starve these bloody afghanis!

 

[StormOfTruth]

keep it close... starve these bloody afghanis!

Actually its our trade that has been halted
The Afghans seem to be having no such trouble
Afghanistan reports sixfold increase in trade with Uzbekistan

 

[Sainthood 2.0]

Pakistan’s trade deficit contracts 33% to $13.2bn in 7MFY24​

Pakistan’s trade deficit contracts 33% to $13.2bn in 7MFY24

Pakistan’s trade deficit shrank 33% to $13.167 billion during July-January (7MFY24) on account of a considerable...

www.brecorder.com

Pakistan’s trade deficit shrank 33% to $13.167 billion during July-January (7MFY24) on account of a considerable reduction in imports and an increase in exports, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

The country’s trade balance, gap between exports and imports, was recorded at a deficit of $13.16 billion in July to January period of the year 2023-24 as compared to $19.55 billion in the same period of the previous year.

In the period under review, imports reduced substantially while exports saw a notable increase, which reduced the trade deficit.

Pakistan’s trade deficit shrinks over 34% to $11.15bn in 6MFY24

During 7MFY24, Pakistan’s exports increased by 7.89% to $17.78 billion from $16.48 billion in the corresponding period of the previous year.

On the other hand, imports fell by 14.11% to $30.94 billion in the July to January period, as compared to $36.03 billion in the same period of FY22.

Monthly figures

According to the PBS, the country’s trade deficit shrunk by 24.8% to $1.95 billion in January 2024 from $2.59 billion in the same period of the last year.

Exports improved significantly by 24.72% to $2.79 billion in January 2023 from $2.24 billion in the same month of the previous year. On the other hand, imports reduced marginally by 1.84% to $4.74 billion in January 2024 from $4.83 billion in the same month last year.

However, on a month-on-month basis, trade deficit increased by 6.5%, as compared to $1.83 billion in December 2023.

The data showed exports decreased while imports posted a marginal improvement on a monthly basis.
Exports declined by 1.13% when compared monthly to $2.82 billion in the preceding month of December. Meanwhile, imports inched up by 1.87% to $4.74 billion from $4.65 billion last month.
Earlier, Caretaker Minister of Commerce Dr Gohar Ejaz on Thursday had celebrated the year-on-year increase in exports during January.

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[Sainthood 2.0]

We need a stable gov asap or reserve, Stock markets will crash, IMF deals might suffer too
https://www.brecorder.com/news/4028...ts-dents-psx-sentiments-kse-loses-1200-points
Overall - likely no Dollar Dar in sight as FM so hopefully in the long term we'll be alright but we need political stability asap

 

[Sainthood 2.0]

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[Bilal]

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Any data for Jan? This is largely due to allowing up to 50% outflow for IT companies. In any case a good development of Han numbers remain above 300m.