The State Bank of Pakistan (SBP) has proposed performance-based incentives for banks and exchange companies to encourage higher remittance inflows through formal banking channels. Sources told The Express Tribune that during a recent Economic Coordination Committee (ECC) meeting, the deputy governor of SBP explained that the current incentives, which are transaction-based, need to be revised to
The FY24 saw net foreign direct investment (FDI) rise to $1.9 billion from $1.63 billion in FY23. FY24 also saw $1.1 billion in FDI outflows compared with $941 million in FY23. Foreign portfolio investment (FPI) registered outflows of $382.5 million during FY24 compared with $1 billion during FY23. Despite maintaining a high interest rate, the economy couldn't attract, or even hold, short-te
Amid surging remittances, a much-anticipated cut in the interest rate and the scheduling of an IMF board meeting on Pakistan bailout kept market sentiments bullish, helping the KSE index close the outgoing week in the green territory. However, the mounting political tensions turned investors cautious, trimming the gains on profit-taking. The trade and industry stakeholders are not happy with t
The lingering dispute between Long Distance & International (LDI) operators and the industry regulator, Pakistan Telecommunication Authority (PTA), over the application of allegedly wrongful, higher Access Promotion Contribution (APC) rates on LDIs during 2008 and 2010 is now threatening to drastically impact the country’s telecom and digital ecosystem, and affect mobile service quality, banking o
Rising tax rates have left the public in distress while the government continues to lament the low tax-to-GDP ratio. There isn’t sufficient revenue to cover government expenditures and debt repayments, including interest. Last year, the overall budget deficit was estimated at Rs6.9 trillion, which was 7.4 per cent of GDP. To reduce this deficit and increase revenue, the government is imposing m