Economy

Pakistan’s flailing economy hit by drop in worker remittances

Published

1 year ago

July 10, 2023

A dramatic drop in foreign workers’ remittances signals a further blow to the economy as Islamabad seeks an IMF bailout.

Remittances sent home by Pakistanis working abroad fell to $27bn for the fiscal year 2023, compared with $31.3bn a year earlier, the country’s central bank said on Monday.

Remittances for June slumped to $2.2bn from $2.8bn a year earlier, central bank data showed. The remittances were mainly sourced from Saudi Arabia ($515.1m), the United Kingdom ($343m), the United Arab Emirates ($324.7m) and the United States ($272.3m).

According to the World Bank last year, Pakistan was the world’s sixth top recipient of remittances in 2022, behind India, Mexico, China, the Philippines and Egypt, although Tonga, Lebanon and Samoa are most dependent on money sent home from abroad as a percentage of GDP.

Pakistan’s economic crisis

The drop signals another blow to Pakistan’s economy which is facing its worst crisis since gaining independence from Britain in 1947.

Years of financial mismanagement, a global energy crisis and severe flooding have battered the economy, resulting in a slew of strict economic measures imposed by the International Monetary Fund (IMF) as Pakistan’s central bank looks to secure a bailout.

The $3bn short-term financial package from the IMF is subject to approval by its board on July 12.

Islamabad has revised its 2023-24 budget and raised its benchmark interest rate to 22 percent in recent days in line with IMF demands. The IMF also got Pakistan to raise more than 385 billion rupees ($1.41bn) in new taxation to meet their fiscal adjustments.

The changes have fuelled an all-time high inflation of 38% year-on-year in May, the highest in Asia.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

1 day ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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