Good Morning
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in its emergent meeting held on Thursday, decided to further cut the key policy rate by 100 basis points (bps) to 7 percent aimed to address the domestic economic slowdown due to the Covid-19 pandemic. The net foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $146 million to $9.961 billion during the week ending June 19, 2020, according to data released by the central bank on Thursday. Pakistan’s GDP growth rate is expected to remain lower than -0.4 percent for the outgoing year projected by the government and International Monetary Fund (IMF) as it is based on data available till March/April 2020.
Market View: The KSE100 Index lost 325.02 points during Thursday’s trading session. We expect the market to respond to the surprise cut in interest rate by State Bank of Pakistan in today’s session.
Commodities:
Brent oil (USD/bbl): 41.55 (+1.22% D/D)
Crude oil (USD/bbl): 39.14 (+1.08% D/D)
Gold (USD/oz): 1,771.10 (+0.03% D/D)
SBP cuts policy rate by 100bps to 7 percent
KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in its emergent meeting held on Thursday, decided to further cut the key policy rate by 100 basis points (bps) to 7 percent aimed to address the domestic economic slowdown due to the Covid-19 pandemic.
FY 2019-2020: GDP growth rate may remain lower than -0.4 percent
ISLAMABAD: Pakistan’s GDP growth rate is expected to remain lower than -0.4 percent for the outgoing year projected by the government and International Monetary Fund (IMF) as it is based on data available till March/April 2020.
SBP reserves fall below $10bn
KARACHI: The net foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $146 million to $9.961 billion during the week ending June 19, 2020, according to data released by the central bank on Thursday.
Government releases Rs6.2bn for textile industry to resolve liquidity issues, encourage exports
LAHORE: Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Thursday announced the release of an additional grant of Rs6.2 billion for the textile sector under the Drawback of Local Taxes and Levy (DLTL) scheme.
Planning Commission approves $20m Covid response project
ISLAMABAD: A meeting held at the Planning Commission approved the Covid-19 health emergency response project, financing for which was provided by the Agency Francaise de Development (AFD). The project was approved at a cost of $20 million.
ECC abolishes duties on items prone to smuggling
ISLAMABAD: Government on Thursday decided to abolish regulatory duties on smuggling-prone products in the country and revised framework for agreements concerning private hydropower projects.
Weighted average banking spreads witness sequential increase of 46bps
KARACHI: The weighted average banking spreads witness a sequential increase of 46bps to 5.64 percent in May 2020, as deposit cost declines by 89bps on month-on-month basis while lending rates only trimmed by 43bps during the same period.
Textiles sector: Razak announces Rs6.2bn release under DLTL
ISLAMABAD: Adviser to the Prime Minister on Commerce and Investment Razak Dawood Thursday announced to release an additional grant Rs6.2 billion for the textiles sector under the Drawback of Local Taxes and Levy (DLTL) scheme.
Business community welcomes 100bps cut in policy rate
LAHORE: Leading businessmen and industrialists have welcomed the State Bank of Pakistan’s decision to reduce the country’s policy rate by 100 basis points to 7pc.
OGRA holds public hearing: SSGC provided Rs190bn relief to consumers
ISLAMBAD: The Sui Southern Gas Company (SSGC) has provided Rs190 billion relief on gas prices to its industrial, commercial, general industry, and domestic consumers in its review petition for estimated revenue requirement (ERR) for financial year 2020-2021, which was taken by the Oil and Gas Regulatory Authority (OGRA) in a public hearing held on Thursday.
Pakistanis’ money in Swiss banks dips by 53%
ISLAMABAD: Switzerland is apparently no longer a favourite offshore tax haven for Pakistanis to stash their wealth as the money kept by the country’s nationals in Swiss banks has fallen by 53% to the lowest level of $377 million in 2019, a new report disclosed on Thursday.
Debt Service Suspension Initiative: Pakistan can save $2.705 billion owed to creditors: WB
ISLAMABAD: Pakistan could save $2.705 billion owed to creditors under the Debt Service Suspension Initiative (DSSI), according to estimates published by the World Bank (WB).
ECC green-lights two projects for Power Division
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Thursday allowed the Power Division to proceed with the development of Kohala and Azad Pattan hydroelectric power projects in a bid to pave the way for attracting $3.7 billion in investment under the China-Pakistan Economic Corridor (CPEC).
PTI govt seeks nod for Rs14.5tr loans
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government on Thursday sought National Assembly’s authorisation for borrowing Rs14.5 trillion in the next fiscal year to repay and service loans, which is two-thirds less than the original demand for the current fiscal year.
Market watch: KSE-100 sheds 325 points on lower growth forecast
KARACHI: The bear-run continued at the Pakistan Stock Exchange on Thursday and the KSE-100 index extended losses by 325 points as the downgrade of Pakistan’s growth projection by the International Monetary Fund (IMF) weighed on investors’ mind.
International News
Oil prices crawl up on demand recovery, tempered by virus outbreaks
Oil prices rose in early trade on Friday, extending gains from the previous day on optimism about recovering fuel demand worldwide, despite surges in coronavirus infections in some U.S. states and indications of a revival in U.S. crude production.
Gold on track for third weekly gain as virus cases surge
Gold edged higher on Friday and was set for its third consecutive weekly gain, as coronavirus cases around the world surged and jittery investors opted for safe-haven assets.
KASB Research
