A student of Economics, interested in Business, Finance and Macroeconomic policy making
Jan 1, 2022 • 8 tweets • 4 min read
Thread: Inflation in Pakistan
The Urban CPI basket of goods and services comprises of 12 major commodity groups and their assigned weights are as follows:
1/N
Aug 5, 2021 • 18 tweets • 8 min read
Thread: Power Tariff Breakdown
• Generation Tariff
• Transmission Tariff
• Distribution Tariff
NEPRA is the authority which sets the tariff for generation, transmission, distribution licensees and end consumers 1/N
There are two cost components to Generation tariff: i) energy purchase price (EPP) ii) capacity purchase price (CPP). EPP includes fuel costs whereas CPP includes debt recovery for setting up plants
Thread: Pakistan's Economic Indicators
1/N
If actual output rises above its potential level, it results in a positive output gap
So, we can see that Pakistan was on the path of overheating prior to FY19 & that was followed up by demand-pull inflation & higher interest rates by SBP
People should know the truth rather than believing in conspiracies. #PetrolPriceHike was expected as crude oil prices were rising & this increase of Rs5.40 is actually lower than the increase in the cost of petrol. 1/N
The cost of petrol (base price) increased by Rs9.78. So, the govt actually reduced the taxes by Rs4.40 to not pass on the full increase
To give you the context, taxes on petrol are already the lowest where petroleum levy is reduced to zero & GST reduced from the standard 17% 2/N
May 6, 2021 • 31 tweets • 14 min read
Thread: Pakistan's Economic Indicators
Current account is in surplus in 9MFY21 at $959 million (+0.5% of GDP) against a deficit of $4.1bn (-2.1% of GDP) in the same period last year.
Source:
1/N sbp.org.pk/ecodata/Balanc…
Fiscal Deficit is at Rs1,652.05 billion (-3.6% of GDP) in 9MFY21 compared to Rs1,686.19 billion (-3.8% of GDP) in the same period last year.
Economic crises are not earthquakes which strike without warning; they are culmination of years of excesses & misguided macroeconomic policies
CAD reached $19.9bn in FY18 which was the highest ever in the country’s history in absolute terms 1/N
Current Account Deficit (CAD) surged from 1.1% of GDP in FY13 to 6.3% of GDP in FY18
Last 4 months before the new govt coming into power we were running a CAD of $2bn a month this means at an annualised pace of $24bn