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The country’s total liquid foreign exchange reserves declined by $20 million during last week. According to the State Bank of Pakistan (SBP), total liquid foreign exchange reserves stood at $18.598 billion as on May 21, 2020 compared to $18.618 billion on May 15, 2020. The State Bank of Pakistan (SBP) raised Rs169 billion through the sale of Pakistan Investment Bonds (PIBs), according to a statement issued on Thursday. Pakistan has been experiencing fiscal and current account deficits, and continued efforts toward fiscal consolidation will be the key to sustaining improvements in macroeconomic stability, says the Asian Development Bank (ADB). The Pakistan Tehreek-e-Insaf (PTI) government will present the budget 2020-2021 in the National Assembly on June 12 for discussion and approval, it has been learnt. The federal government is likely to earmark Rs 216 billion subsidy for power sector, including Karachi-Electric (KE) in federal budget 2020-21, to be announced in the second week of June, well-informed sources told Business Recorder.
Market View: The KSE100 Index lost 141.19 points during Thursday’s trading session. We expect the market to remain stable and range bound in the upcoming session.
Commodities:
Brent oil (USD/bbl): 35.10 (-0.54% D/D)
Crude oil (USD/bbl): 33.26 (-1.33% D/D)
Gold (USD/oz): 1,732.30 (+0.23% D/D)
Forex reserves down $20m
KARACHI: The country’s total liquid foreign exchange reserves declined by $20 million during last week. According to the State Bank of Pakistan (SBP), total liquid foreign exchange reserves stood at $18.598 billion as on May 21, 2020 compared to $18.618 billion on May 15, 2020.
SBP sells Rs169bn worth of PIBs
KARACHI: The State Bank of Pakistan (SBP) raised Rs169 billion through the sale of Pakistan Investment Bonds (PIBs), according to a statement issued on Thursday.
T-bill divestment in May reaches $182m
KARACHI: Foreign investors sold $16 million worth of treasury bills (T-bills) on May 21, according to the latest data from the State Bank of Pakistan (SBP, bringing the net divestment figure of May so far to $182 million.
Tax base, other areas need attention: ADB
ISLAMABAD: Pakistan has been experiencing fiscal and current account deficits, and continued efforts toward fiscal consolidation will be the key to sustaining improvements in macroeconomic stability, says the Asian Development Bank (ADB).
Pakistan likely to shelve foreign bonds plan till yearend
KARACHI: Pakistan is likely to delay a plan to sell sovereign bonds in international capital markets till this yearend due to weak investor appetite amid the pandemic and availability of low-cost foreign inflows from multilateral and bilateral creditors for the country, people familiar with the matter said on Thursday.
Budget to be presented on June 12
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government will present the budget 2020-2021 in the National Assembly on June 12 for discussion and approval, it has been learnt.
Budget 2020-21: Rs216bn subsidy for power sector likely
ISLAMABAD: The federal government is likely to earmark Rs 216 billion subsidy for power sector, including Karachi-Electric (KE) in federal budget 2020-21, to be announced in the second week of June, well-informed sources told Business Recorder.
Up to Rs2 increase in power tariff likely
ISLAMABAD: The government is all set to increase electricity tariff up to Rs 2 per unit under quarterly tariff adjustment mechanism for second and third quarter of current fiscal year
‘Textile export sector at edge of disaster’
KARACHI: Pakistan Readymade Garments Manufacturers & Exporters (PRGME) chairman (Central)Shaikh Shafiq Jhokwala and chairman (South Zone) Amir Amin Kothawala have stated that the value added textile export sector has reached to the edge of disaster due to severest ever liquidity crisis in the history of Pakistan caused due to imposition of 17 percent sales tax in last budget whereby liquidity worth billions of rupees has been stuck up with the government.
Fertiliser sales up 9pc to 558,000tns in April
KARACHI: Fertiliser sales rose nine percent year-on-year to 558,000 tons in April as offtakes of diammonium phosphate (DAP) significantly grew due to lower prices, brokerages reported on Thursday.
Refunds: FBR to facilitate five sectors’ exporters in budget
ISLAMABAD: The Federal Board of Revenue (FBR) Thursday assured Abdul Razak Dawood, Advisor to the Prime Minister on Commerce that the coming budget 2020-21 would facilitate exporters to expedite payment of sales tax refunds to the five leading export sectors including textile, leather, carpets, surgical and sports goods.
Govt advised to announce tax incentives for salaried class
KARACHI: Tax experts on Thursday advised the government to consider monetary benefits for salaried class in the next budget, considering job losses and cut in remunerations in the coronavirus tumult.
Retail investors: SECP revises procedure for allocation of shares
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revised procedure for allocation of shares to retail investors on public offer of securities by issuers i.e. companies, special purpose vehicles and body corporate.
International News
Oil prices fall as U.S. fuel demand remains weak
SINGAPORE (Reuters) – Oil prices edged lower on Friday after U.S. inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening U.S.-China tensions weighed on global financial markets.
Asia Pacific stocks mostly dip as investors watch market reaction to China’s security bill for Hong Kong
Stocks in Asia Pacific mostly edged lower in Friday morning trade as investors watch for market reaction to China’s controversial national security law for Hong Kong that was approved on Thursday.
Gold pares gains as equities firm; US-China rift lends support
Gold pared gains on Thursday, having risen 1% earlier in the session, pressured by an advance in Wall Street, but escalating tensions between the United States and China kept the bullion supported.
https://www.cnbc.com/2020/05/28/gold-markets-us-china-tensions-economic-stimulus-in-focus.html
KASB Research
