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Large scale manufacturing (LSM) contracted 10.3 percent for the first 11 months of the last fiscal year of 2019/20 as most of the industrial activities witnessed sharp decline during the period, official data showed on Tuesday. The current account deficit narrowed 77.9 percent to $2.97 billion in July-June FY2020 from $13.43 billion in the previous year, the central bank’s data showed on Tuesday. The deficit was equivalent to 1.1 percent of gross domestic product (GDP), from a 4.8 percent gap in FY2019. The government raised Rs199.4 billion through the auction of fixed-rate Pakistan Investment Bonds (PIBs) on Tuesday. The highest amount of Rs97.3bn was raised through three-year PIBs at nine per cent per annum with corresponding bids for this tenure at were Rs128.5bn
Market View: The KSE-100 Index closed yesterday’s trading session at 37,700.31 points, up by 49.74 points. We expect the market to remain range bound however, sharp decline in the current account deficit might positively impact investor’s sentiment.
Commodities:
Brent oil (USD/bbl): 44.17 (-0.34% D/D)
WTI Crude oil (USD/bbl): 41.73 (-0.45% D/D)
Gold (USD/oz): 1858.1 (+0.79 D/D)
National News
LSM contracts 10.3 percent in July-May
KARACHI: Large scale manufacturing (LSM) contracted 10.3 percent for the first 11 months of the last fiscal year of 2019/20 as most of the industrial activities witnessed sharp decline during the period, official data showed on Tuesday.
Current account deficit narrows 77.9 percent in FY2020
KARACHI: Pakistan’s current account deficit narrows to five-year low in fiscal year 2019/20 due to improvement in the country’s trade balance as imports of goods and services declined, though exports went down too.
Rs199bn PIBs sold
KARACHI: The government raised Rs199.4 billion through the auction of fixed-rate Pakistan Investment Bonds (PIBs) on Tuesday. The highest amount of Rs97.3bn was raised through three-year PIBs at nine per cent per annum with corresponding bids for this tenure at were Rs128.5bn.
Rs5.5bn refunds issued to exporters
ISLAMABAD; The Federal Board of Revenue (FBR) has informed the finance committee of the National Assembly on Tuesday that Rs5.5 billion refunds have been issued to the exporters on Monday.The finance committee meeting presided over by its chairman Faiz Ullah was informed that during the ongoing month Rs9 billion refunds had been issued.
Murad orders to seal borders to prevent wheat smuggling
KARACHI: Sindh Chief Minister Syed Murad Ali Shah, keeping in view growing wheat flour prices in the market, has ordered all the divisional commissioners and DIGs to seal borders to stop wheat smuggling to other countries and also start operation against hoarders.
LSMIs May output plunges 24.80pc YoY
ISLAMABAD: The Large-Scale Manufacturing Industries (LSMIs) output in May 2020 plunged by 24.80 percent year-on-year as almost all the major manufacturing sectors posted a negative growth, the data released by the Pakistan Bureau of Statistics (PBS) showed Tuesday.
Nepra issues show-cause notice to K-Electric
ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Tuesday issued a show-cause notice to Karachi Electric (KE) for “unscheduled” load shedding in Karachi and Hyderabad.Nepra’s experts went through the entire data and statements of witnesses submitted by the Investigation Committee headed by Nadir Khoso, Director General, Monitoring and Enforcement.
Duty drawbacks: Razak discusses progress on various MoC’s initiatives
ISLAMABAD: Advisor to the Prime Minister on Commerce and Investment Abdul Razak Dawood chaired a meeting on duty drawbacks, at the Ministry of Commerce on Tuesday to discuss the progress on various initiatives by the Ministry in this regard. The meeting was attended by senior officers of MoC.
Minister orders crackdown against wheat hoarders
KARACHI: Sindh Information and Local Government Minister Syed Nasir Hussain Shah has said that there is no shortage of wheat in the country, and the Chief Minister Sindh has directed strict crackdown against hoarders. Flour in Sindh is cheaper than other provinces. Shah said this while addressing a press conference flanked with legal adviser Murtaza Wahab at the Sindh Assembly on Tuesday.
EU to provide Rs 3.6 billion for rule of law support
KARACHI: Noor Ahmed, Secretary, Ministry of Economic Affairs and Anne Marchal, Charge d’Affaires a.i. of the European Union, welcomed the signing of a new EU Financing Agreement on “Rule of Law Support to Pakistan (RoL)” between the Government of Pakistan and the European Union amidst the Covid-19 crisis.
Covid-19 tally reaches 266,647 across country
ISLAMABAD: Pakistan’s coronavirus tally has reached 266,647 with 5,661 deaths and 208,030 recoveries, federal and provincial authorities latest Covid-19 data released here on Tuesday said.
International News
Oil prices fall on U.S. inventory build, increasing pandemic fears
Oil prices fell on Wednesday as industry data showed a bigger-than-expected inventory build in the United States where coronavirus cases continue to climb, potentially further denting demand in the world’s biggest oil consumer.
Gold climbs to nine-year high on weaker dollar, stimulus bets
Gold rose to its highest since September 2011 on Wednesday, propelled by a softer U.S. dollar and expectation of more stimulus measures to resuscitate pandemic-hit economies which could stoke inflation. Spot gold was up 0.1% at $1,843.09 per ounce by 0034 GMT, after hitting its highest in nearly nine years at $1,847.30 in early Asian trade. U.S. gold futures rose 0.1% to $1,845.90.
Mainland Chinese stocks rise; gold prices soar after $2 trillion Europe stimulus package
Stocks in Asia Pacific mostly declined in the morning, but mainland Chinese stocks bucked the trend. Gold prices soared to a nine-year high, while the dollar weakened after European Union leaders reached an unprecedented $2 trillion stimulus package.
