Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana are the Top Achievers based on implementation of Business Reforms Action Plan. Himachal Pradesh, Madhya Pradesh, Maharashtra, Odisha, Uttarakhand and Uttar Pradesh figure under the Achievers category. While Assam, Chhattisgarh, Goa, Jharkhand, Kerala, Rajasthan and West Bengal have been placed in the Aspirers category, Andaman & Nicobar, Bihar, Chandigarh, Daman & Diu, Dadra & Nagar Haveli, Delhi, Jammu & Kashmir, Manipur, Meghalaya, Nagaland, Puducherry and Tripura have been clubbed under the Emerging Business Ecosystems category. Smt. Nirmala Sitharaman, Hon’ble Minister of Finance and Corporate Affairs, announced the assessment of States/UTs under Business Reforms Action Plan (BRAP) 2020, the 5th edition of the BRAP exercise in New Delhi today.The announcements were made in the august presence of Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Anurag Jain, Secretary, DPIIT and Senior Government officials of State and UT administration. Speaking after release of assessment report, Smt. Sitharaman said that the nature of reforms had undergone change since 1991. “The reforms now taking place are responsive reforms. Unlike the reforms of 1991, which were given to us for implementation, there is no compulsion now. The objective is to see what will bring out improvement in systems and ensure better lives for us. An element of nudge has been brought into every layer of the government. Nudging can not be by the government only and the industry has a big role to play there,’, the Finance Minister said. The Finance Minister appreciated the changes brought in the assessment framework of implementation under the Business Reforms Action Plan over years. Speaking at the event, Shri Piyush Goyal, Hon’ble Minister for Commerce & Industry said that the assessment has evolved from evidence-based to 100% feedback in multilingual format. He said that the purpose of this BRAP exercise is to infuse a culture of learning from each other’s best practices and improve upon the business climate in each State/UT with a unified objective for India to emerge as a most favoured Investment Destination across the globe “When Hon’ble Prime Minister gave the thrust in 2014 to improving the ease of doing business, one of his major thrust areas was that while we are working at the international level for improving our ranking, we must involve all the stakeholders including the States and UTs in our effort to get them on board so that people really feel the difference and change in their ecosystem, which will lead to ease of living,” Shri Goyal said. “The process started in 2014 has started bearing fruit as we go along. Rather than ease of doing business being limited to a few areas, few cities and few businesses, we are seeing it being reflected across the country through the spirit of competitive federalism and also of collaboration”, the Commerce & Industry minister added. Secretary, DPIIT Shri Anurag Jain said that the difference between various states/UTs was so small that it did not make sense to rank them but rather put them in various categories. The BRAP 2020 includes 301 reform points covering 15 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, Land Administration & Transfer of Land and Property, Utility Permits and others. 118 new reforms were included to further augment the reform process. Sectoral reforms with 72 action points spread across 9 sectors namely Trade License, Healthcare, Legal Metrology, Cinema Halls, Hospitality, Fire NOC, Telecom, Movie Shooting and Tourism were introduced for the first time to expand the scope of reform agenda. The broader aim is to boost investor confidence, foster business friendly climate and augment Ease of Doing Business across the country by introducing an element of healthy competition through a system of assessing states based on their performance in the implementation of Business Reforms Action Plan. In a departure from the previous years, where States/UTs were ranked, this year they have been placed under the four categories viz. Top Achievers, Achievers, Aspirers and Emerging Business Ecosystems. The objective of assessing the States/UTs is not to create a hierarchy amongst States/UTs but to rather create an enabling framework wherein learnings can be shared amongst States/UTs which in turn will lead to a nationwide spill over of good practices.The assessment gives full weightage to the feedback obtained from actual users/respondents at the ground level, who provided their feedback about the effective implementation of reforms. DPIIT since 2014 has been assessing States/UTs based on their performance in implementation of prescribed reforms in Business Reforms Action Plan (BRAP) exercise. Till date, assessment of States/UTs have been released for the years 2015, 2016, 2017-18 and 2019. It is commendable to note the endeavour of the States/UTs in implementing the reforms and with that spirit, DPIIT has assessed and grouped States/UTs into broad category-wise segmentation to recognize and identify the exemplary reform measures undertaken by the States/UTs to improve business environment.
Source: PIB
There is a great response to the Production Linked Incentive (PLI) scheme and PM Mitra Parks in the country. Speaking after virtually inaugurating Avgol Nonwoven's New Manufacturing facility at Halol in Gujarat, Smt. Darshana Jardosh, Union Minister of State for Textiles and Railways said that the Government’s focus is on Five Fs-Fibre to Farm to Fabric to Fashion to Foreign. She said that the contribution of India towards man-made fibre in the global market is 25%. And in order to increase this share, PLI Scheme and PM Mitra Parks will support to achieve the desired scale and size while also emerging as a strong competitor in the global market. Indorama has invested in its plant in Halol under 100% FDI. She said that PM’s vision for both PLI Scheme and PM Mitra parks will help develop an ecosystem wherein Ease of Doing Business and through Plug in Play, the industry will achieve new heights. Adding on she said that the PM’s GatiShakti-National Master Plan for Multi-modal connectivity will herald a new chapter of governance. She said that Gati Shakti — a digital platform — will bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. Smt. Jardosh mentioned that PM’s clarion call of Vocal for Local has tremendously helped the local businessmen as well as artisans associated with the textile sector. The PM Mitra Park scheme aims to realise the vision of Prime Minister Shri Narendra Modi of building an Aatmanirbhar Bharat and to position India strongly on the Global textiles map. The Government of India approved Production-Linked Incentive (PLI) Scheme for Textiles products, namely MMF Apparel, MMF Fabrics and Products of Technical Textiles, for enhancing India’s manufacturing capabilities and enhancing exports with an approved financial outlay of Rs 10,683 crore over a five-year period. To further boost the growth of the sector, centre also removed the import duty of cotton. She informed that India will also be the host of G20 Summit, first time ever, which will see participation of several countries. The summit will provide platform for discussion on various sectors like academics, investment and most importantly how India’s culture which connects with textile industry will be taken forward globally. The new manufacturing facility has about 12-acre land sufficient for Non-woven Line expansion upto 3 High Speed lines. In the first phase nearly 175 Crores has been invested and within 12 months, the Plant is ready for production form green filed. This investment is done with 100% FDI from Israel and technology transfer from Israeli Parent Entity. The plant will have 200 Crores Revenue with an annual capacity of 10,000 MT specialty nonwoven fabrics. This will help to substitute imports savings forex outflow worth 25 million USD per annum from country and contribute to the flag ship schemes of PM, “Make in India” and “Atma Nirbhar Bharat”. The building constructed is as per IGBC green building norms and aspired to be Platinum rated certification.
Source: PIB
The textile industry wants the government to restart cash reimbursement instead of these tradeable scrips, as these scrips are trading at 20% discount. Even as India’s textile sector clocks record exports, credit scrips of exporters trade at a 20% discount in the Indian market
India is one of the world’s leading textile producing and exporting destinations. India currently exports worth more than USD 44 billion of which USD 16 billion pertains to apparel and garments exports. The textile industry employs around 4.5 crore workers and is expected to be worth more than US$ 209 billion by 2029. Indian textile industry will rapidly lose its global export competitiveness if imbalances in Rebate of State and Central Taxes and Levies” (RoSCTL) scheme are not addressed immediately. RoCTL was launched in 2021 with the intention of making India’s textile industry competitive and strengthening its exports. However, the Scheme in its current form is eroding the export margins of the domestic textile industry. Mr. Vijay Jindal, Member, Export Promotion, AEPC & President, GEMA, said: “RoSCTL scheme provides rebate against the taxes, levies, etc. already paid by the exporters on the inputs. This rebate has been converted into scrips that are tradable i.e. exporters can sell scrips to the importers and importers, in turn, can pay import duty with these purchased scrips as an alternative to cash import duty payments. While it was in discount earlier also, but now the discount has gone up from 3% to about 20% discount on the scrips. This discounting of scrips benefits importers, who are taking undue advantage at the cost of exporters.” Mr. Jindal is the promoter of SPL Industries, one of the largest apparel exporters. Even though the scheme was launched with the intention of making India’s textile industry competitive and bolstering the exports, these changes are acting against the government’s intention of benefitting exporters and are instead benefitting importers. This defeats the very purpose and intent of this entire scheme of promoting the government’s stated policy of ‘Make in India’ for the world. Based on estimated calculations, of the total USD 16 billion in apparel exports, around 5% is reimbursement, which is roughly INR 6,000 crore. At a broad level, given a discount of 20-25% on this, there is a direct hit of around INR 1,500 crore on the feeble margins of companies operating in the apparel sector. The textile industry wants the government to restart cash reimbursement instead of these tradeable scrips, as these scrips are trading at 20% discount. These scripts are sold by exporters to importers, who in turn can pay their import duty with these purchased scrips as an alternative to cash import duty payments. This is resulting in substantial cash transfer from exporters to importers. If the government does not immediately make amendments to the RoSCTL structure, there is a concern that the industry may lose its competitive edge due to cost inefficiencies. The lack of support would once again shift the demand to other low-cost countries. Mr. Harish Ahuja, Executive Member, AEPC & Management Committee Member, and GEMA, said: “At present, demand for such scrips is very less as exporters are finding it difficult to find enough importers who can buy the scrips obtained under the RoSCTL scheme. Lack of demand means that importers offer to buy scrips only at a steep discount of up to 20%. If not addressed, India may lose its edge in global textile markets.” Mr. Ahuja is the promoter of Shahi Exporters, one of the largest garment and apparel exporters. The Scheme’s intention was to make India’s textile sector competitive against other lowcost countries such as Bangladesh and Vietnam (due to low labor and manufacturing costs). The demand has been in line with the government’s intention, which was always to reimburse the exporters but due to the discounting of scrips, the purpose and intent of this entire scheme are defeated. In its current form, the discounting of scrips benefits importers, who are taking undue advantage at the cost of exporters. This defeats the very purpose and intent of this entire scheme as instead of promoting the government’s stated policy of ‘Make in India’ for the World.
Source: The Statesman
The RBI has been intervening in the market since the outbreak of the Ukraine war in late February to prevent a sharp depreciation of the rupee. Since February 25, the country’s foreign exchange reserves have dropped by almost $41 billion. Finance minister Nirmala Sitharaman on Thursday said the rupee’s performance against the greenback is better than that of many other global currencies despite the depreciation in recent months. The domestic currency breached the psychological barrier of 79 per dollar for the first time on Wednesday, before rising marginally on suspected RBI intervention to close at 78.97. Responding to a question on the rupee movement on the sidelines of an event here, Sitharaman said: “We are relatively better placed. We are not a closed economy. We are part of the globalised world. So, we will be impacted (by global developments).” The rupee has lost 6% so far in 2022 and about 2% in June, as strong dollar, high crude oil prices and sustained capital outflows pressured the domestic currency. However, the Philippine peso has lost over 7% and the South Korean won has shed more than 8% against the dollar in 2022. Currencies of many countries, especially the emerging markets, have been weakening sharply against the dollar, especially after the US Federal Reserve started raising interest rates to curb runaway inflation. Price pressure across economies has spiked in recent months, more so after the Ukraine war hit the global supply chains and contributed to a surge in oil prices. Consequently, central banks of key economies, including India, were forced to hike policy rates to control inflation, which will weigh down economic growth prospects. The RBI has been intervening in the market since the outbreak of the Ukraine war in late February to prevent a sharp depreciation of the rupee. Since February 25, the country’s foreign exchange reserves have dropped by almost $41 billion. Last week, RBI deputy governor Michael Patra said the central bank was not looking at restricting the rupee at a particular level but it had been intervening in the market to curb sharp volatility and prevent “jerky movements” of the currency.
Source: Financial Express
The decision will be a game-changer for the success of the government's Open Network For Digital Commerce (ONDC) platform, the minister added. The decision to allow firms below the GST threshold to engage in e-commerce is a major decision, which will help small businesses get benefitted from the fast-growing online sector, Commerce and Industry Minister Piyush Goyal said on Thursday. The decision will be a game-changer for the success of the government's Open Network For Digital Commerce (ONDC) platform, the minister added. "It will bring the small retailers into the e-commerce ecosystem," he said, adding handicraft, handloom, textiles and small retailers will be the major gainers. The GST Council has decided to ease the process for intra-state supplies made through ecommerce portals. Now, such suppliers will not have to obtain GST registration, if their turnover is lower than Rs 40 lakh and Rs 20 lakh for goods and services, respectively. This will come into effect from January 1, 2023. The minister was speaking at the unveiling of the Business Reforms Action Plan 2020 assessment report released by Finance Minister Nirmala Sitharaman. Goyal further said that the decision for rationalising the GST rates on cut and polished diamonds would help in promoting the growth of the sector. "It will give a big boost to the industry. These decisions will increase work opportunities in a big way," he added.
Source: Republic World
The prices of recycled yarn dropped in Panipat market of north India because of sluggish demand. The price of finer yarn declined by ₹5-10 per kg in the country’s home textiles production hub. According to trade sources, exporters did not get expected order enquiries at a recently held trade fair in Germany. Domestic demand was also weak in the market. Poor demand from the domestic weaving industry led to a down trend in recycled yarn in Panipat market. Preetam Singh Sachdeva, a local trader, told Fibre2Fashion, “Exporters did not receive expected order enquiries in trade fair recently held in Germany. Some reputed export houses retrenched workforce due to limited orders. Current scenario has dampened market sentiments. Buyers are not interested in fresh buying as export orders as well as domestic buying seem to be weaker.” In Panipat market, 10s recycled yarn (white) was traded at ₹95-100 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹140-145 per kg, 10s recycled yarn (coloured - low quality) at ₹95-105 per kg and 20s recycled high quality PC yarn (coloured) at ₹140-150 per kg. 10s optical yarn was traded at ₹120-125 per kg in the market. Comber was sold at ₹115 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹98 per kg. The price of comber eased by ₹10 per kg but recycled polyester fibre was sold at previous level. Cotton yarn prices steadied in Ludhiana after decline earlier this week. Most varieties of cotton yarn were sold at previous prices. A Ludhiana based trader told, “Spinning mills were not keen to encourage buyers through ease in prices. Instead, they asked buyers and traders to commit larger quantities for price negotiations. On the other hand, buyers were buying yarn just for immediate need due to uncertain scenario.” In Ludhiana, 30 count cotton combed yarn was sold at ₹400-405 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹390-395 per kg and ₹395-400 per kg respectively. Carded yarn of 30 count was quoted at ₹340-345 per kg. Delhi market noted steady trend as demand was not encouraging. Earlier, Delhi market had seen better buying but consumer industries are taking cautious note. According to trade sources, recent decline in cotton prices has shaken confidence of buyers. They do not expect very strong demand from garment manufacturers. If yarn prices fall in near future, they will have to face unwanted risk. Yarn prices remained stable because mills were not keen to reduce yarn prices as cotton prices increased in the last couple of days. In Delhi, 30 count combed yarn was traded at ₹385-395 per kg (GST extra), 40 count combed at ₹425-435 per kg, 30 count carded at ₹350-360 per kg and 40 count carded at ₹390-400 per kg. Meanwhile, cotton prices increased by ₹200-300 per maund of 37.2 kg on Friday over Thursday’s prices in north India. According to traders, cotton was sold at ₹8,200-9,500 per maund in Punjab, ₹8,600-9,000 per maund in Haryana and ₹9,200-9,500 per maund in Upper Rajasthan. Traders said that supply crunch has pushed cotton prices up, though mills’ demand was not so significant.
Source: Fibre 2 Fashion
Credit growth to industry accelerated to 8.7 per cent in May 2022, while for agriculture and allied activities, the off-take increased by 11.8 per cent, according to RBI data released on Thursday. to industry accelerated to 8.7 per cent in May 2022, while for agriculture and allied activities, the off-take increased by 11.8 per cent, according to RBI data released on Thursday. Data on sectoral deployment of bank credit for May 2022 has been collected from select 40 banks that account for about 93 per cent of the total non-food credit. Credit growth to industry accelerated to 8.7 per cent in May 2022 from 0.2 per cent in May 2021. The Reserve Bank further said that credit to medium industries grew by 49.3 per cent in May 2022 as compared with 47.9 per cent last year. Credit growth to micro and small industries continued to perform well, registering accelerated growth of 33 per cent from 8.9 per cent, while credit to large industries recorded a growth of 1.9 per cent against a contraction of 3.1 per cent during the same period last year," it said. Within industry, credit growth to all engineering, beverage and tobacco, chemicals and chemical products, infrastructure, mining and quarrying, petroleum, coal products and nuclear fuels, rubber, plastic and their products, and vehicles, vehicle parts and transport equipment accelerated in May 2022 as compared with the corresponding month of the previous year. However, credit growth to basic metal and metal products, cement and cement products, construction, food processing, gems and jewellery, glass and glassware, leather and leather products, paper and paper products, textiles, and wood and wood products decelerated/contracted. Advances to agriculture and allied activities grew by 11.8 per cent in May 2022 as compared with 9.4 per cent a year ago. As per RBI, personal loans segment maintained its uptrend and grew by 16.4 per cent in May 2022 vis-a-vis 12.8 per cent in May 2021, primarily driven by housing and vehicle loans segments. Loans to services sector grew by 12.9 per cent in May as compared with 3.4 per cent in the year-ago period, mainly due to improved off-take by NBFCs, professional services and transport operators. On year-on-year basis, non-food bank credit registered a growth of 12.6 per cent in May 2022 as compared with 4.9 per cent a year ago.
Source: Business Standard
The data released by the Controller General of Accounts on Thursday put the Centre’s fiscal deficit for April-May of FY23 at Rs 2.04 trillion or 65.6% higher than in the first two months of last fiscal The Centre’s fiscal deficit stood at 12.3% of the full year Budget estimate (BE) in AprilMay of the current financial year compared with 8.2% in the year ago period, due to a rise in expenditure while non-tax revenues declined substantially on year. The data released by the Controller General of Accounts on Thursday put the Centre’s fiscal deficit for April-May of FY23 at Rs 2.04 trillion or 65.6% higher than in the first two months of last fiscal. In April-May 2022, net-tax revenue grew 31.7% on year as against an annual average growth requirement of 6.3% to achieve FY23 target of Rs 19.35 trillion. However, 69.4% lower surplus, transferred by the Reserve Bank of India to the Centre, resulted in non-tax revenue of April-May 2022 declining by 57.7% on-year. Continued high inflation leading to higher nominal GDP is expected to help the Centre exceed its tax collection target of FY23. The Centre has front loaded capex in FY23 leading to 70.1% on-year capex growth the first two months of FY23. “While cut in excise duties for petrol and diesel will have an impact on Union excise collections, buoyancy in other revenues is likely to compensate for the decline in excise collections. No major threat to the government’s fiscal deficit target even though the fiscal deficit is 65.6% higher than last year during the first two months of FY23,” said India Ratings economists Sunil K Sinha and Paras Jasrai.
Source: Financial Express
Confirming that both sides are now getting on with the market access aspects of a trade deal, the minister in-charge of the negotiations on the UK government side said that some "compromise and cooperation" will be required on both sides to get a deal over the line. A free trade agreement (FTA) between the UK and India is "absolutely achievable" by the Diwali timeline set by Prime Ministers Boris Johnson and Narendra Modi with only some technical legal aspects left to be resolved, UK Trade Secretary Anne-Marie Trevelyan said on Thursday. Confirming that both sides are now getting on with the market access aspects of a trade deal, the minister in-charge of the negotiations on the UK government side said that some "compromise and cooperation" will be required on both sides to get a deal over the line. "We have been set the challenge to get a deal by this Diwali, 24th October is seared in my brain," she said, during a UK-India Week forum on trade relations. "That's really helped our negotiators to really focus and where the big prizes are. It's imperative as we all want to get on so that our businesses get cracking. It is absolutely achievable. "It might be in a practical sense we haven't completed some boring technical bit, but what we are clear is that by Diwali we have got that whole picture and we know where we have the mutually value-adding parts," she said. The minister said an FTA with India would take on a "unique form" because a "cookie-cutter, one size fits all" approach to negotiating a trade deal would not work. "Undoubtedly, negotiations can be tough. Success comes through compromise and cooperation on both sides. There are times when we need to meet each other in the middle," she said. Earlier this week, the UK's Department for International Trade (DIT) said the latest round of talks concluded last week with discussions in 71 separate sessions covering 20 policy areas. The talks took place in a hybrid fashion with a majority of officials joining virtually and the fifth round of FTA talks is scheduled to be held in New Delhi next month. The focus of the FTA negotiations is on reducing the barriers to trade, cutting tariffs and supporting companies to export. According to DIT, India-UK bilateral trade currently stands at around GBP 24 billion a year. Industry experts hope this figure could be boosted further with the conclusion of the FTA.
Source: Economic Times
Lis Rosenholm, Ambassador of Denmark to Pakistan, said that Denmark is ready to provide new technology to Pakistan’s textile sector, especially the knitwear sector, in order to reduce the export product production cost and improve the quality in Pakistan. In this regard, joint ventures with major Denmark companies will also be encouraged. He said this while addressing a meeting at the office of Pakistan Hosiery Manufacturers and Exporters Association here Thursday. He said that the main purpose of her visit was to further enhance trade relations between the two countries and for this she would encourage Denmark businessmen to visit Pakistan. She said she would tell Denmark businessmen that Pakistan is a very peaceful country to do business and safe to invest. She said that she would also ask her Commercial Consul to pave the way for enhancing contacts between Pakistani and Denmark businessmen. Earlier, Mian Kashif Zia Chairman PHMA (North Zone) said that despite the facility like GSP Plus, the existing trade opportunities between Pakistan and Denmark are not being fully utilized, while many Denmark companies are doing good business with Pakistan. He said that there is a huge potential for increasing exports of textile products in Denmark which needs to be exploited. He thanked Denmark for its support for GSP Plus status for Pakistan and hoped that this friendly country would also give its full support to Pakistan for its continued GSP Plus status. Musadaq Zulqarnain Chief Executive of Interloop Limited, said that despite the recession in the world, we are exporting. He said that we are facing external and internal challenges as the average income of the people of our country is very low and as a poor country we are maintaining our country as well as international compliance. He said that developed countries should relax social compliance for us so that we can meet our export targets and also earn valuable foreign exchange for the development of the country. “Our main goal is not only to increase our exports but also to provide employment to the people as well as raise their living standards,” he said. He said that for this it is necessary that all the stakeholders work together. At the end, Qamar Aftab, former Chairman PHMA, thanked the distinguished guests while Mian Kashif Zia (PHMA) and Musadaq Zulqarnain Chief Executive of Interloop Limited) presented the PHMA Honorary shield to Lis Rosenholm Ambassador of Denmark to Pakistan.
Source: Business Recorder
Amid the shortage of gas supply in Pakistan, the textile industry decided to remain closed from July 1 to 8, a local media reported. The suspension of gas supply will affect the industries in Punjab as 70 per cent of textile mills are primarily located in that region. According to the publication, the shortage of gas supply has already reduced textile production by up to 30 per cent and the latest suspension will reduce the output by up to 50 per cent, which will affect the economy of the country. The interrupted gas supply to the industries has been affecting the exports that will impact the achievement of USD 26 billion targets for the next fiscal year besides increasing unemployment. The Sui Northern Gas Pipelines Limited has apprised the textile mills about the gas supply suspension receiving gas supplies from the captive power plants, according to ARY News citing sources. Sources added that the decision for suspending the gas supply was taken to continue uninterrupted supplies to the power and fertiliser sectors. All Pakistan Textile Mills Association (APTMA) warned of major economic loss to the country due to gas suspension and demanded the authorities to resume the supplies. Meanwhile, the Pakistan government once again increased the petrol prices by PKR (Pakistani rupee) 14.84 per litre. After the recent hike, the new petrol price has been fixed at PKR 248.74 per litre, the Pakistan Finance Ministry announced. The price of high-speed diesel has also been increased by PKR 13.23 per litre and the new price has been fixed at PKR 276.54 per litre, ARY News reported. While the kerosene oil price increased by PKR 18.83 and the rate of light-speed diesel has been jacked up by Rs 18.68 per litre, the notification reads. The new price will come into effect from 12 am on July 1. The announcement was made by Finance Minister Miftah Ismail while addressing a press conference in Islamabad, citing government was not in a position to bear more subsidies anymore. Ismail criticised the previous government’s policies that, according to him, “deteriorated the country’s economy”. Since the Shehbaz Sharif government has come to power in Pakistan, the daily essentials are getting costly and have become out of reach of the common man due to recent hikes in petrol prices and power tariffs, a local media report stated. Miftah further said that despite the fuel hike causing inflation and misery, it was a tough decision to make amidst the hike in fuel prices in the international market and exchange rates. Subsidised fuel prices were constantly increasing the fiscal deficit, thereby increasing pressure on the country’s foreign exchange reserves, reported Dawn. “We will only be able to control fuel prices when our difficult period ends and the country’s relations with global financial institutions improve,” he said as quoted by the publication.
Source: Reuters
German retail sales increased slightly in May, even as high inflation continued to weigh on consumers, data showed on Thursday. Retail sales rose by 0.6% in real terms compared to the previous month, the Federal Statistical Office reported. Analysts had predicted a 0.5% increase in a Reuters poll. Despite the overall rise, food retail sales fell in May on the previous month by 0.6% amid significantly higher prices for groceries, the office said. That was nonetheless a recovery after grocery retailers saw a sales decline of 7.7% in April, the biggest month-on-month drop since the time series began in 1994. read more In May, the non-food retail sector recorded real sales growth of 2.9% compared with April, according to the data. Sales in textiles, clothing, footwear and leather goods were particularly strong, growing by 10.6% month on month and 59.8% year on year. Preliminary data released on Wednesday showed inflation unexpectedly cooling off in June in Europe's largest economy, falling to 8.2% compared with 8.7% in May. read more "The inflation scare continues to chill consumers' bones," said Alexander Krueger, chief economist at private bank Hauck Aufhaeuser Lampe. "At present, it is not apparent where a turnaround in sentiment will come from," Krueger commented.
Source: Reuters
