Good Morning
The government will initiate tariff rationalization exercise from six economically-important sectors from next month, commerce adviser said on Monday, as the government completed two years in the office with exports on a downward trend. The rupee closed at 166.87 against the dollar, 0.23 percent up from the previous closing of 167.26 in the interbank foreign exchange market. In the open market, the rupee remained flat at 167.20 against the dollar. Foreign investors remitted $1.82 billion in profits and dividends from Pakistan during the last fiscal year of 2019/20, sharply down 26.3 percent year-over-year, as economic activities slowed to trickle, the central bank’s data showed on Monday. Gold on Monday posted the highest ever single day increase of Rs5100 per tola to drive the precious metal price to another record high of Rs123800 on the local market.
Market View: The KSE-100 Index closed yesterday’s trading session at 38,221.16 points, up by 613.54 points. We expect the market to remain range bound however, the banking sector is expected to remain in the limelight as the central bank skipped monetary policy for the month of July.
Commodities:
Brent oil (USD/bbl): 43.63 (+0.51% D/D)
WTI Crude oil (USD/bbl): 41.69 (+0.19% D/D)
Gold (USD/oz): 1959.7 (+1.47 D/D)
National News
Tariff rationalization to start with six sectors in August: Dawood
ISLAMABAD: The government will initiate tariff rationalisation exercise from six economically-important sectors from next month, commerce adviser said on Monday, as the government completed two years in the office with exports on a downward trend.
Rupee strengthens
The rupee closed at 166.87 against the dollar, 0.23 percent up from the previous closing of 167.26 in the interbank foreign exchange market. In the open market, the rupee remained flat at 167.20 against the dollar.
Profit repatriation falls 26pc in FY2020
KARACHI: Foreign investors remitted $1.82 billion in profits and dividends from Pakistan during the last fiscal year of 2019/20, sharply down 26.3 percent year-over-year, as economic activities slowed to trickle, the central bank’s data showed on Monday.
FATF, security and NAB: Qureshi sees broad-based consensus
ISLAMABAD: Foreign Minister Shah Mahmood Qureshi on Monday sought a broad-based consensus on laws related to the Financial Action Task Force (FATF), national security and the National Accountability Bureau (NAB).
FPCCI for revamping power sector to overcome circular debt
LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar on Monday stressed the need for resolving the circular debt issue by revamping the entire power sector, including tariff setting, efficiencies of power generating units, supply chain network and payment recoveries.
Pakistan could import 300,000 tonnes of sugar to ease price rise
MUMBAI: Pakistan could import around 300,000 tonnes of sugar to tackle a shortage that has lifted local sugar prices by 22% in seven months, industry officials told Reuters, flagging a move that could support global prices and calm the local market.
Housing finance: ECC decision to be endorsed by Cabinet today
ISLAMABAD: The federal cabinet which is scheduled to meet Tuesday (today) with Prime Minister Imran Khan in the chair, will endorse the ECC decision on housing finance despite the fact that Secretary Finance is said to have claimed that Finance Division was not taken on board on the matter, well informed sources told Business Recorder.
MoF’s update: economic indicators
ISLAMABAD: Finance Ministry said on Monday that Pakistan’s domestic production and exports have declined mainly due to depressed global demand and commodity prices and the slowdown left adverse impact on tax and non tax revenues; whereas government spending is rising. Finance Ministry in its monthly economic update for July 2020 stated that besides COVID-19, the locust situation has worsened and might peak in between “15th July to 15th September,” and consequently, crops may suffer.
Bill seeks to ‘enhance functions, utility’ of FBR’s policy board
ISLAMABAD: A private member bill introduced in the Upper House of the Parliament on Monday sought to amend the law to “enhance the functions and utility” of the Federal Board of Revenue’s (FBR’s) Policy Board. During the Senate session presided over by Chairman Sadiq Sanjrani, Kauda Babar, an independent senator from Balochistan, introduced the Federal Board of Revenue (Amendment) Bill, 2020 which was referred to the relevant standing committee.
Gold posts highest-ever single-day increase
KARACHI: Gold on Monday posted the highest ever single day increase of Rs5100 per tola to drive the precious metal price to another record high of Rs123800 on the local market, traders said.
Kia Motors to roll out new models in 2021
KARACHI: Kia Lucky Motors Pakistan – a joint venture of Pakistani and South Korean companies – is planning to roll out two to four new models within next one year, a brokerage house reported on Monday.
International News
Oil rises on stimulus hopes, but U.S.-China tensions cap gains
Oil prices edged higher on Monday helped by a weak dollar and expected U.S. stimulus measures but gains were capped by rising global coronavirus cases and tensions between the United States and China.
Gold rises 1% as softer dollar, stimulus bets fuel record run
Gold jumped more than 1% to a fresh record on Tuesday, as a weaker U.S. dollar and hopes of more stimulus measures to combat the economic blow from the pandemic drove investors towards the safe-haven metal.
Asia Pacific stocks higher; shares of Japanese automakers Nissan and Mitsubishi drop
Stocks in Asia Pacific were higher in Tuesday morning trade as investors continued to monitor developments on the coronavirus front. Shares in South Korea led gains among the region’s major markets, with the Kospi up 1.92% as shares of industry heavyweight Samsung Electronics rose more than 5%.
