Govt moves to ‘cool down’ an ‘over heating’ economy

arifkarim

Chief Minister (5k+ posts)
Premium Member
Govt moves to ‘cool down’ an ‘over heating’ economy
Finance Minister Tarin announces restrictive measures t slow down growth
Shahbaz Rana| September 23, 2021

finance minister shaukat tarin photo express

Finance Minister Shaukat Tarin. PHOTO: EXPRESS

Finance Minister Shaukat Tarin announced on Wednesday to take restrictive measures to “cool down” an “over heating” economy, marking the beginning of reversal of expansionary fiscal policies after external sector vulnerabilities exposed sooner than expected.
“It has been decided to introduce a 100% cash margin requirement for imports and impose regulatory duties to curb imports of non-essential items,” Tarin told a press conference – his second in less than 10 days to respond to increasing criticism over higher inflation.
“If [the new] measures are not taken, the economy could grow at more than 5% rate and this is the time to control the growth rate, the finance minister told the reporters, while explaining the reasons behind taking these measures.
“My concern is that the economy may overheat and there could be exchange rate related problems if the GDP growth rate exceeds above 5% annually,” he added, while responding to a question from The Express Tribune.
Before the budget, Tarin had been cautioned about the adverse impact of expansionary fiscal policies but the minister at that time had opined that the economy can sustain over 6% growth rate, finance ministry sources said.
Introduction of cash margins –where the importers are required to deposit cash in dollars in advance—and regulatory duties are considered import restrictive measures that are usually discouraged by the International Monetary Fund (IMF).
The government decided to take these steps after the two-month import bill exceeded $12 billion and the central bank called for urgent measures. The State Bank of Pakistan (SBP) has already increased the discount rate by 0.25% while also signalling a further increase at an appropriate time.
The SBP policy statement also pointed out things that the federal government has to do to minimise threats to external sector stability.
The message in the central bank’s monetary policy statement was that so far the reliance was only on exchange rate too and there was also a need to use monetary policy and fiscal policy tools “to cool down” the economy, said the finance minister.
“The fiscal side acceleration needs to be reduced to lower the heat and we are now closely monitoring the fiscal policy,” Tarin added. He said that fiscal operations were in line with the projections during the current fiscal year but the finance ministry was monitoring the situation.


Doubtful petrol prices comparison
Tarin and Special Assistant to Prime Minister on National Food Security Jamshed Cheema claimed during the press conference that petrol prices were the cheapest in Pakistan compared to the region. Compared with Rs123 per litre price in Pakistan, “the petrol price in India is 250 rupees per litre and 198 in Bangladesh”, Tarin said.
“The per-litre petrol price in Mumbai is Rs105.92,” an Indian journalist, who is a member of the South Asian Society for Economic Reporters (SASER), said. The SASER is an association for business and economic reporters of South Asia.
“It’s 90 taka per litre in Bangladesh,” said another SASER member journalist from Bangladesh. One litre petrol price is 157 rupees in Sri Lanka , according to a SASER member from Sri Lanka. The Nepalese SASER member said that the petrol was being sold at 129 in local rupee.
In order to avoid growing criticism, the government gave controversial figures by translating regional countries’ petrol prices by applying rupee-dollar parity. The Pakistani rupee closed at Rs168.68 to a dollar on Wednesday, compared with around Rs74 to a dollar Indian price. Even Afghani rupee is far stronger than Pakistani rupee.
The finance minister said that it has also been decided to slash taxes on edible oil to reduce their prices by Rs45 to Rs50 per kg. “The government will offer direct food subsidies to 40 to 42% people on the edible items,” he said.
Sugar will be available at Rs89.75 per kg across the country and wheat flour at Rs55 per kg for everyone and Rs43 for the poor people, said Cheema.
While commenting on the IMF talks, Tarin said that the power sector will be an issue and “we will try to find a solution to that”. He added: “There is no prior action on the power sector and everything will be discussed during these talks.” He again said that increasing tariffs was not a solution to the power sector’s problems.
The minister said that the government has shown progress in the revenue collection during the current fiscal year and it would expand the tax base by using technology. “Pakistan and the IMF are expected to begin programme review talks from October 4.”
Responding to a question about his six months ministerial term that is going to end on October 15th, the finance minister said, “I am not going anywhere and I have trust in the prime minister’s promise of getting me elected as senator.”
However, Imran Khan has not yet announced a schedule for his election, as it will require at least 23 days from the point of getting a seat vacated by a sitting senator and electing a new senator in his place.

Desprado the most laughed at member here is proven right once again
 
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AhmadSaleem264

Senator (1k+ posts)
Govt moves to ‘cool down’ an ‘over heating’ economy
Finance Minister Tarin announces restrictive measures t slow down growth
Shahbaz Rana| September 23, 2021

finance minister shaukat tarin photo express

Finance Minister Shaukat Tarin. PHOTO: EXPRESS

Finance Minister Shaukat Tarin announced on Wednesday to take restrictive measures to “cool down” an “over heating” economy, marking the beginning of reversal of expansionary fiscal policies after external sector vulnerabilities exposed sooner than expected.
“It has been decided to introduce a 100% cash margin requirement for imports and impose regulatory duties to curb imports of non-essential items,” Tarin told a press conference – his second in less than 10 days to respond to increasing criticism over higher inflation.
“If [the new] measures are not taken, the economy could grow at more than 5% rate and this is the time to control the growth rate, the finance minister told the reporters, while explaining the reasons behind taking these measures.
“My concern is that the economy may overheat and there could be exchange rate related problems if the GDP growth rate exceeds above 5% annually,” he added, while responding to a question from The Express Tribune.
Before the budget, Tarin had been cautioned about the adverse impact of expansionary fiscal policies but the minister at that time had opined that the economy can sustain over 6% growth rate, finance ministry sources said.
Introduction of cash margins –where the importers are required to deposit cash in dollars in advance—and regulatory duties are considered import restrictive measures that are usually discouraged by the International Monetary Fund (IMF).
The government decided to take these steps after the two-month import bill exceeded $12 billion and the central bank called for urgent measures. The State Bank of Pakistan (SBP) has already increased the discount rate by 0.25% while also signalling a further increase at an appropriate time.
The SBP policy statement also pointed out things that the federal government has to do to minimise threats to external sector stability.
The message in the central bank’s monetary policy statement was that so far the reliance was only on exchange rate too and there was also a need to use monetary policy and fiscal policy tools “to cool down” the economy, said the finance minister.
“The fiscal side acceleration needs to be reduced to lower the heat and we are now closely monitoring the fiscal policy,” Tarin added. He said that fiscal operations were in line with the projections during the current fiscal year but the finance ministry was monitoring the situation.


Doubtful petrol prices comparison
Tarin and Special Assistant to Prime Minister on National Food Security Jamshed Cheema claimed during the press conference that petrol prices were the cheapest in Pakistan compared to the region. Compared with Rs123 per litre price in Pakistan, “the petrol price in India is 250 rupees per litre and 198 in Bangladesh”, Tarin said.
“The per-litre petrol price in Mumbai is Rs105.92,” an Indian journalist, who is a member of the South Asian Society for Economic Reporters (SASER), said. The SASER is an association for business and economic reporters of South Asia.
“It’s 90 taka per litre in Bangladesh,” said another SASER member journalist from Bangladesh. One litre petrol price is 157 rupees in Sri Lanka , according to a SASER member from Sri Lanka. The Nepalese SASER member said that the petrol was being sold at 129 in local rupee.
In order to avoid growing criticism, the government gave controversial figures by translating regional countries’ petrol prices by applying rupee-dollar parity. The Pakistani rupee closed at Rs168.68 to a dollar on Wednesday, compared with around Rs74 to a dollar Indian price. Even Afghani rupee is far stronger than Pakistani rupee.
The finance minister said that it has also been decided to slash taxes on edible oil to reduce their prices by Rs45 to Rs50 per kg. “The government will offer direct food subsidies to 40 to 42% people on the edible items,” he said.
Sugar will be available at Rs89.75 per kg across the country and wheat flour at Rs55 per kg for everyone and Rs43 for the poor people, said Cheema.
While commenting on the IMF talks, Tarin said that the power sector will be an issue and “we will try to find a solution to that”. He added: “There is no prior action on the power sector and everything will be discussed during these talks.” He again said that increasing tariffs was not a solution to the power sector’s problems.
The minister said that the government has shown progress in the revenue collection during the current fiscal year and it would expand the tax base by using technology. “Pakistan and the IMF are expected to begin programme review talks from October 4.”
Responding to a question about his six months ministerial term that is going to end on October 15th, the finance minister said, “I am not going anywhere and I have trust in the prime minister’s promise of getting me elected as senator.”
However, Imran Khan has not yet announced a schedule for his election, as it will require at least 23 days from the point of getting a seat vacated by a sitting senator and electing a new senator in his place.

Desprado the most laughed at member here is proven right once again
Desparado is laughed at because he endorse artificial controlling of currency and to take loans to do that. In that case imports automatically get increased as exports and local manufacturing cant hold up to artificially raised rupee. And that in turn increases CAD, pure dar economics.
You can't control CAD and keep rs artificially inflated at same time plus there are also many other issues with CAD.
He is just a person who seems to be interested in economics without understanding a bit of it.
 

Citizen X

Prime Minister (20k+ posts)
Desparado is laughed at because he endorse artificial controlling of currency and to take loans to do that. In that case imports automatically get increased as exports and local manufacturing cant hold up to artificially raised rupee. And that in turn increases CAD, pure dar economics.
You can't control CAD and keep rs artificially inflated at same time plus there are also many other issues with CAD.
He is just a person who seems to be interested in economics without understanding a bit of it.
Ishaq Dollar ka jamadar hai us ko sirf aur sirf darconomics hi samaji aati hai.
 

Ontarianpakistani

Politcal Worker (100+ posts)
Desparado is laughed at because he endorse artificial controlling of currency and to take loans to do that. In that case imports automatically get increased as exports and local manufacturing cant hold up to artificially raised rupee. And that in turn increases CAD, pure dar economics.
You can't control CAD and keep rs artificially inflated at same time plus there are also many other issues with CAD.
He is just a person who seems to be interested in economics without understanding a bit of it.
Problem with a lots of people is that they just don't understand the difference between macro and micro economics and for them if someone takes a loan of 100 Rs on your behalf and keep 80 in his pocket and gives you 20Rs cash you think he is doing you a favour. That's the problem with people all over the world but wherever the media is sensible they know its their job to make people understand these things but our media is doing exactly the other way.
 

Desprado

Minister (2k+ posts)
Desparado is laughed at because he endorse artificial controlling of currency and to take loans to do that. In that case imports automatically get increased as exports and local manufacturing cant hold up to artificially raised rupee. And that in turn increases CAD, pure dar economics.
You can't control CAD and keep rs artificially inflated at same time plus there are also many other issues with CAD.
He is just a person who seems to be interested in economics without understanding a bit of it.
Sir when i said to use dollar to control USD?

USD is rising due to shortage of dollar. Why there is shortage of dollar since May late?

1) Perception of imports has rise due to giving subsidy on imports by FM

2) Lack of FDI due to unstable currency and less 200 million dollar FDI in 2 months of this FY.

3) Market is aggressively is buying dollar from local exchange markets

4) Outflows investment due to delay of IMF program

5) ADB, WB and AIIB has stopped Pakistan funding due to delay in IMF

6) 2.3 billion dollar CAD in just 2 months ,however, Shaukat Tarin promised NA, Senate, IMF and PM that our CAD will be 2.3 billion whole FY of 2022 and it also mentioned in his Budget book if you think i am lying.

7) Government uptake has rising to 2018 levels.

8) Export as not increased at according to Shaukat tarin and he saying GDP of Export was better in previous FY

9) Luxury items were giving concession, which created shortage of dollars.

10) Negative interest and forced it too long that it created artifial demand of imports.


Positive interest rate always helps to reduce imports and improve import ,however, our PM was desperate for growth but the growth honeymoon is over because it will only create hyper inflation nothing more.



Shaukat Tarin will be kicked out because he is the main reason for the mess and misguided PM on CAD, Inflows, FDI and exports and Imports.

There is a fight between Shaukat Tarin and Reza Baqir.
 

arifkarim

Chief Minister (5k+ posts)
Premium Member
Sir when i said to use dollar to control USD?

USD is rising due to shortage of dollar. Why there is shortage of dollar since May late?

1) Perception of imports has rise due to giving subsidy on imports by FM

2) Lack of FDI due to unstable currency and less 200 million dollar FDI in 2 months of this FY.

3) Market is aggressively is buying dollar from local exchange markets

4) Outflows investment due to delay of IMF program

5) ADB, WB and AIIB has stopped Pakistan funding due to delay in IMF

6) 2.3 billion dollar CAD in just 2 months ,however, Shaukat Tarin promised NA, Senate, IMF and PM that our CAD will be 2.3 billion whole FY of 2022 and it also mentioned in his Budget book if you think i am lying.

7) Government uptake has rising to 2018 levels.

8) Export as not increased at according to Shaukat tarin and he saying GDP of Export was better in previous FY

9) Luxury items were giving concession, which created shortage of dollars.

10) Negative interest and forced it too long that it created artifial demand of imports.


Positive interest rate always helps to reduce imports and improve import ,however, our PM was desperate for growth but the growth honeymoon is over because it will only create hyper inflation nothing more.



Shaukat Tarin will be kicked out because he is the main reason for the mess and misguided PM on CAD, Inflows, FDI and exports and Imports.

There is a fight between Shaukat Tarin and Reza Baqir.
💯💯💯
 

Wake Up Pakistan

Chief Minister (5k+ posts)
Sums up PTI whole 3.2 years Ammar Khan the most intelligent guy in Smart Pakistan economy

.
Mujay iss ke Assessment say zaida Blame Game lag rahee hai

i am not buying his arguments like that. I am not denying mistakes have not been made.

Pakistan economy is big mess and biggest ratio is Tax to GDP.

Whenever Govt. try to bring reforms Mafia stand against them. People start shouting media play their games opposition parties stand behind.

No one wants these to be fixed. Majority politicians both sides are beneficiaries including army general and bureaucracy. Tax theft is social norms. corruption is culture. Impurity contamination is our proud. Mafias everywhere.

After all this Govt. experiments take different decisions under pressure of traders and mafias. Right or wrong.
I still hope It will be got better with time.

Trust me Democracy is not solution of our economy.
 

Desprado

Minister (2k+ posts)
Mujay iss ke Assessment say zaida Blame Game lag rahee hai

i am not buying his arguments like that. I am not denying mistakes have not been made.

Pakistan economy is big mess and biggest ratio is Tax to GDP.

Whenever Govt. try to bring reforms Mafia stand against them. People start shouting media play their games opposition parties stand behind.

No one wants these to be fixed. Majority politicians both sides are beneficiaries including army general and bureaucracy. Tax theft is social norms. corruption is culture. Impurity contamination is our proud. Mafias everywhere.

After all this Govt. experiments take different decisions under pressure of traders and mafias. Right or wrong.
I still hope It will be got better with time.

Trust me Democracy is not solution of our economy.
I always said will say that in Dictatorship Pakistan always progressed like Zia, Ayub and Musharf but when democracy comes every single progress of Pakistan reserve like PIA, Steel mill etc.
 

Wake Up Pakistan

Chief Minister (5k+ posts)
I always said will say that in Dictatorship Pakistan always progressed like Zia, Ayub and Musharf but when democracy comes every single progress of Pakistan reserve like PIA, Steel mill etc.
All these Generals destroyed our economy more than any other person by bringing terrorism, and have war games in pakistan. Army general didnt play 1% role to make Export based growth.

Sorry bhai your assessment is very wrong. All these era's pakistan was getting $$$$ from USA. Thats where your economy stood. musharraf time all Growth was financing cars, Real Estate. No Power Projects. No Technology transfer. He did offer many PHD's but all bureaucracy take advantage and went for studies nobody brought anything in return.

I was not expecting this from person like you.
 

Wake Up Pakistan

Chief Minister (5k+ posts)
I always said will say that in Dictatorship Pakistan always progressed like Zia, Ayub and Musharf but when democracy comes every single progress of Pakistan reserve like PIA, Steel mill etc.
Now For Pakistani Institutions like PIA etc this was destroyed by PPP. Their sole purpose to fill all Govt. Institutions with Excessive Labour. Thats why Khursheeed Shah and other ppp leaders become Billionaire. no Export.

Nooora Fault was Development roads road and road. Import based Growth. No Agriculture no Export. Under Value Currency.


IK did well in 1-2 years. but Tareen made some wrong decision. but within few weeks they are back on track. Its goood.

IK is doing well to Support IT Export industry textile. Where they made mistake is Relief to Car manufacturers and allow luxury imports which are stopped now
 

Rajarawal111

Chief Minister (5k+ posts)
عمرانی بوجوں کو اب نئی ڈگ ڈگی پر نچانے کی کوشش شروع ہونے لگی ہے جی --- ہم نے معیشت کو اتنا رگڑ دیا ہے کہ یہ گرم ہونے لگی ہے --- اسے اب ٹھنڈا کرنے کی ضرورت ہے ----

مجھے اس ڈگ ڈگی (عرف - اس نئی ٹرم) نے کافی فیسینٹ کیا ہے جی

***** Over Heating Economy *****

giphy.gif


Govt moves to ‘cool down’ an ‘over heating’ economy​


 

Rajarawal111

Chief Minister (5k+ posts)
Govt moves to ‘cool down’ an ‘over heating’ economy
Finance Minister Tarin announces restrictive measures t slow down growth
Shahbaz Rana| September 23, 2021

finance minister shaukat tarin photo express

Finance Minister Shaukat Tarin. PHOTO: EXPRESS

Finance Minister Shaukat Tarin announced on Wednesday to take restrictive measures to “cool down” an “over heating” economy, marking the beginning of reversal of expansionary fiscal policies after external sector vulnerabilities exposed sooner than expected.
“It has been decided to introduce a 100% cash margin requirement for imports and impose regulatory duties to curb imports of non-essential items,” Tarin told a press conference – his second in less than 10 days to respond to increasing criticism over higher inflation.
“If [the new] measures are not taken, the economy could grow at more than 5% rate and this is the time to control the growth rate, the finance minister told the reporters, while explaining the reasons behind taking these measures.
“My concern is that the economy may overheat and there could be exchange rate related problems if the GDP growth rate exceeds above 5% annually,” he added, while responding to a question from The Express Tribune.
Before the budget, Tarin had been cautioned about the adverse impact of expansionary fiscal policies but the minister at that time had opined that the economy can sustain over 6% growth rate, finance ministry sources said.
Introduction of cash margins –where the importers are required to deposit cash in dollars in advance—and regulatory duties are considered import restrictive measures that are usually discouraged by the International Monetary Fund (IMF).
The government decided to take these steps after the two-month import bill exceeded $12 billion and the central bank called for urgent measures. The State Bank of Pakistan (SBP) has already increased the discount rate by 0.25% while also signalling a further increase at an appropriate time.
The SBP policy statement also pointed out things that the federal government has to do to minimise threats to external sector stability.
The message in the central bank’s monetary policy statement was that so far the reliance was only on exchange rate too and there was also a need to use monetary policy and fiscal policy tools “to cool down” the economy, said the finance minister.
“The fiscal side acceleration needs to be reduced to lower the heat and we are now closely monitoring the fiscal policy,” Tarin added. He said that fiscal operations were in line with the projections during the current fiscal year but the finance ministry was monitoring the situation.


Doubtful petrol prices comparison
Tarin and Special Assistant to Prime Minister on National Food Security Jamshed Cheema claimed during the press conference that petrol prices were the cheapest in Pakistan compared to the region. Compared with Rs123 per litre price in Pakistan, “the petrol price in India is 250 rupees per litre and 198 in Bangladesh”, Tarin said.
“The per-litre petrol price in Mumbai is Rs105.92,” an Indian journalist, who is a member of the South Asian Society for Economic Reporters (SASER), said. The SASER is an association for business and economic reporters of South Asia.
“It’s 90 taka per litre in Bangladesh,” said another SASER member journalist from Bangladesh. One litre petrol price is 157 rupees in Sri Lanka , according to a SASER member from Sri Lanka. The Nepalese SASER member said that the petrol was being sold at 129 in local rupee.
In order to avoid growing criticism, the government gave controversial figures by translating regional countries’ petrol prices by applying rupee-dollar parity. The Pakistani rupee closed at Rs168.68 to a dollar on Wednesday, compared with around Rs74 to a dollar Indian price. Even Afghani rupee is far stronger than Pakistani rupee.
The finance minister said that it has also been decided to slash taxes on edible oil to reduce their prices by Rs45 to Rs50 per kg. “The government will offer direct food subsidies to 40 to 42% people on the edible items,” he said.
Sugar will be available at Rs89.75 per kg across the country and wheat flour at Rs55 per kg for everyone and Rs43 for the poor people, said Cheema.
While commenting on the IMF talks, Tarin said that the power sector will be an issue and “we will try to find a solution to that”. He added: “There is no prior action on the power sector and everything will be discussed during these talks.” He again said that increasing tariffs was not a solution to the power sector’s problems.
The minister said that the government has shown progress in the revenue collection during the current fiscal year and it would expand the tax base by using technology. “Pakistan and the IMF are expected to begin programme review talks from October 4.”
Responding to a question about his six months ministerial term that is going to end on October 15th, the finance minister said, “I am not going anywhere and I have trust in the prime minister’s promise of getting me elected as senator.”
However, Imran Khan has not yet announced a schedule for his election, as it will require at least 23 days from the point of getting a seat vacated by a sitting senator and electing a new senator in his place.

Desprado the most laughed at member here is proven right once again
Oh You Putwari Arif Kareem.
You will not let any chance of humiliating IK, go away. 😁
 

Bubber Shair

Chief Minister (5k+ posts)
اکانومی زیادہ گرم ہوگئی ہےاسے ٹھنڈا کرنے کی ضرورت ہے؟
اکانومی ہے یا کسی ٹرک کا کاربوریٹر؟
😾
 

Sohail Shuja

Chief Minister (5k+ posts)
اکانومی زیادہ گرم ہوگئی ہےاسے ٹھنڈا کرنے کی ضرورت ہے؟
اکانومی ہے یا کسی ٹرک کا کاربوریٹر؟
😾
اوئے لُبّڑ شیر، تمھاری ساری سائنسی تحقیقات اس لفظ ’’کاربوریٹر‘‘ سے ٹپک پڑی ہے۔ اب مجھے معلوم ہوا کہ تمھاری کیا خدمات رہی ہونگی ایٹمی اثاثوں کے لیئے۔

تمھاری اور تمھارے جیسے دیگر جنگلی جانوروں کی اطلاع کے لیئے عرض ہے کہ ’’کاربوریٹر‘‘ کا کام پیٹرول اور ہوا کا مکسچر بنانا ہوتا ہے۔ جبکہ ریڈی ایٹر کا کام انجن کی گرمی کو پانی کے توسط سے انجن سے باہر نکال کر اس پانی کو ہوا کے ذریعے ٹھنڈا کرنا۔

اب دوسرا بڑا بھنڈ تم نے یہ مارا ہے کہ ٹرک میں کاربوریٹر لگا دیا۔ بھائی، ہمارے یہاں ٹرک ڈیزل پر چلتے ہیں، اور ڈیزل انجن میں کاربوریٹر نہیں ہوا کرتا۔

اب تمھیں کیونکہ تمھاری اپنی دی ہوئی غلط مثال کی اغلاط کا اندازہ نہیں، تو تمھیں اب معاشیات کی اصطلاحات کیا سمجھائی جائیں؟

سبق پھر پڑھ صداقت کا، شرافت کا ۔۔۔۔
 

Sohail Shuja

Chief Minister (5k+ posts)
عمرانی بوجوں کو اب نئی ڈگ ڈگی پر نچانے کی کوشش شروع ہونے لگی ہے جی --- ہم نے معیشت کو اتنا رگڑ دیا ہے کہ یہ گرم ہونے لگی ہے --- اسے اب ٹھنڈا کرنے کی ضرورت ہے ----

مجھے اس ڈگ ڈگی (عرف - اس نئی ٹرم) نے کافی فیسینٹ کیا ہے جی
***** Over Heating Economy *****

giphy.gif


Govt moves to ‘cool down’ an ‘over heating’ economy​


This term is not new Raja Sb,

 
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