Good Morning The government on Wednesday signed a Rs442 billion contract with a joint venture of China Power and Frontier Works Organization (FWO) for the construction of the Diamer-Bhasha dam. The ECC on Wednesday approved Rs56.6 billion to provide farmers subsidy on fertilizers, reduction in mark-up on agriculture loans, subsidy on cotton seed, white fly pesticides… Continue reading Daily News: 14th May 2020
Author: Anum Qudsia Siddiqui
Green flag must transition into green economy!
Electric cars, buses & trucks are a reality. So is the plunge in the cost of solar and wind energy. Very soon, South Korea would lead the world into hydrogen economy. This is irreversible technological change. With low oil prices, race to green economy would accelerate. Climate change is a looming threat in the long… Continue reading Green flag must transition into green economy!
Pakistan survives downgrade from emerging status
In an anticipated outcome, Pakistan has maintained its position in the MSCI Emerging Market (EM) index post MSCI’s May20 semi-annual index review. Note that all 3 of Pakistan’s constituents were unable to meet the required criteria for eligibility. We, however, believe that MSCI likely offered some relaxation in light of the coronavirus pandemic as the… Continue reading Pakistan survives downgrade from emerging status
Daily news: 13th May 2020
Good Morning Pakistan has successfully retained its May 2017’s upgraded status in the global MSCI Emerging Market (EM) Index and averted the chances of being downgraded to Frontier Index in its semi-annual review on Wednesday. The International Monetary Fund (IMF) and Pakistani authorities remain closely engaged with a view to bringing the second review of the… Continue reading Daily news: 13th May 2020
Automobile sales witness an unprecedented decline during Apr20
Automobile sales witnessed an unparalleled decline during Apr20, falling down to record low levels. Passenger vehicles were unable to register any sales during Apr20, highlighting the pandemic’s effect on the sector. The industry’s overall sales fell by 95% MoM to 4,896 units. The automobile industry was compelled to temporarily cease operations on account of the… Continue reading Automobile sales witness an unprecedented decline during Apr20
US charters into (temporary) deflationary territory
The loss in aggregate demand coupled with plunging energy prices have reduced the inflationary pressures. Corona is a double edge sword: demand destruction and supply chain disruption. Jobs of Central Bank have gotten tougher. Developed markets don’t have easing space in near negative territory. Deflation wreaked havoc in Japan as a classic case study. Triple… Continue reading US charters into (temporary) deflationary territory
Budget should be job-creating, tax rationalizing, export boosting & import substituting!
Pakistan should announce tax holiday for new investments in medical devices, food processing, agri-tech, textiles, electronics, chemicals, plastics, renewable, leather, footwear, engineering, furniture, ceramics & automobile etc. The message should be loud and clear: invest more, create jobs and re-industrialize. This is 3rd budget of PTI, transformation has to start now or now. Covid-19 has… Continue reading Budget should be job-creating, tax rationalizing, export boosting & import substituting!
Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
▪ The Kingdom of Saudi Arabia announced on Monday that it will be cutting its oilproduction by another 1 MN BPD for Jun’20, on top of the already agreed upon ~2.5MN BPD cut announced as a part of the OPEC+ agreement in April (effective May’20). ▪ Following the cut, the production rate from Saudi Arabia… Continue reading Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
Daily news:12th May 2020
Good Morning Home remittances sent by overseas Pakistanis posted a growth of 5.5 percent during the first 10 months of this fiscal year (FY20). The State Bank of Pakistan (SBP) will issue its monetary policy statement on Friday with expectation of further cut in the key policy rate. Pakistan has received draft Memorandum of Understanding… Continue reading Daily news:12th May 2020
Remittances plummet by 6% M/M during Apr’20 amid oil crises & economic slowdown
State Bank of Pakistan released the much-awaited remittances data today. Inbound remittances for Pakistan plummeted by 6% M/M and rose by 1.1% Y/Y in Apr’20. In absolute terms, remittances for April’20 stood at $1790mn. For the 10MFY20, remittances stand at $18.8bn, an increase of 6% Y/Y. In terms of regional composition, remittances from USA registered… Continue reading Remittances plummet by 6% M/M during Apr’20 amid oil crises & economic slowdown
