Dollar & Pakistani Freelancers

Almost USD 3 to 4 billion have been saved abroad during the recent dollar crisis. Shaukat Tarin

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Macro Bite # 128

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Former finance minister, Shaukat Tarin has claimed that Pakistanis working in the e-commerce sector have saved USD 3 to 4 billion outside Pakistan, especially during the recent dollar crisis. He further added that the imposition of new taxes on freelancers (previously, tax exemption had been given till 2025, but changes were made. The current government is now charging a 0.25% tax) has forced them to save money abroad.

It is noteworthy that Pakistani freelancers/self-employed individuals attracted remittances worth USD 397.3 million during FY 2021-22. The number of Pakistani freelancers increased dramatically in the year 2020, rising from 4% in 2018 to 42% in 2019 and eventually 48% during 2020-2021, solidifying Pakistan’s place as number four in the top freelancing countries ranking for 2021.

In order to maintain the upward trajectory of remittances through Pakistani freelancers and IT companies, they must be appreciated and facilitated.

GRAPHIC OF THE DAY

According to official data issued by the Ministry of IT and Telecommunication (MoITT), remittance inflows through Pakistani freelancers were USD 397.3 million in FY 2021-22, up from USD 396.2 million in FY 2020-21, increasing by 2.7% (year-on-year)

Source: MoITT

INSTAGRAM POSTS

Trade Update September 2022 — www.instagram.com

⚫ Exports: Monthly export of goods decreased to USD 2.3 billion

⚫ Imports: Monthly import of goods decreased to USD 5.2 billion

⚫ Trade Deficit: Trade deficit was 19.7% less than August 2022 and 30.6% less than September 2021

View more

Cotton arrivals dropped by 18.5% during September due to extensive rainfall which damaged cotton crop — www.instagram.com

⚫ The supply of seed-cotton to ginning factories dropped by 18.6% to 2.2 million bales till September 15, 2022

⚫ Major portion of cotton sown in Sindh has been damaged due to record flooding

View more

TWEET

PakESDA @PakESDA

1/ Pakistan's Primary Energy Supply and Consumption gap has decreased in 2021. Following the peak in 2018, the year 2021 saw the first ever increase in energy supply. With gas, and oil contributig approx. 25% of the supply; whereas coal and electricity stay approx. at 16%.

PakESDA @PakESDA

2/ Highest-ever Final Energy Consumption is recorded in the year 2021. Consumption grew by 15% between 2020 and 2021.

PakESDA @PakESDA

3/ Gas reserves continue to deplete, with local production dropping. LNG imports continue to plug the gas-gap to some extent.

PakESDA @PakESDA

4/ Pakistan saw addition of 4000MW in 2022, taking Installed Capacity to 43,775 MW. This represents an ⬆️ of 10% from 2021. Dependable Capacity (2021-2022): 40,532 MW, with addition of 3,221 MW in 2022.

PakESDA @PakESDA

5/ IPP's (Independent Power Plants) share in the power mix, clocks at ~46%. Renewables (excl. hydel) continue to see an upward trend.

PakESDA @PakESDA

6/ Highest-ever Power Generation, recorded in FY 2022: 153,874 GWh This represents an increase of 7% from FY2021. Generation from Thermal Sources drops below 60% for the first time since 2000.

PakESDA @PakESDA

7/ RLNG-based generation was recorded at 31,000 GWh in FY2022. Plus, it is also the biggest source of thermal generation in Pakistan.

PakESDA @PakESDA

8/ Transmission System constraints continue to hamper efficient power evacuation. CPPA-System saw a peak of 30,231 MW, with a concurrent maximum generation of 27,748 MW --> deficit of ~2500 MW KE-System deficit during system peak was clocked at 287 MW

PakESDA @PakESDA

10/ Number of Power Consumers continue to increase in FY2022. DISCOs: 33,189,794 KESC: 3,405,332

PakESDA @PakESDA

11/ KESC continues to procure more units from the central system (CPPA). Encouraging signs with losses continuing to drop to the lowest levels. PESCO (Peshawar DISCO) has the highest distribution losses at ~37%.

PakESDA @PakESDA

12/ Overall, the energy costs are increasing across the country. For consumers of DISCOs and KESC, the average sale price has risen to a record level in FY2022.

PakESDA @PakESDA

13/ With rising fuel import costs (including LNG, RFO, and Coal), the monthly fuel adjustment charges have also reached record levels in FY 2022.

What Else We’re Reading

• Pakistan says no space to give the economy any stimulus (Reuters)

• Pakistan's economy is expected to slow down amid the global downturn (Dawn)

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