Good Morning
Pakistan’s trade deficit shrank to $23.18 billion in fiscal year 2019-20 against $31.8 billion in 2018-19, registering 27 percent decline in trade balance. According to the official data released by the Pakistan Bureau of Statistics (PBS), exports fetched $21.387 billion in the last fiscal year ending on June 30, 2020 against the desired target of $24 billion. The State Bank of Pakistan (SBP) has extended the deadline for consumers, small and medium businesses to apply for one-year moratorium on loan repayment till September 30 after recording freeze on nearly Rs600 billion of principal amounts. The rupee extended losses for the second consecutive session on Tuesday, as strong dollar demand from importers to make payments put pressure on the domestic currency, traders said. The local currency closed at 166.95 against the dollar, 0.13 percent lower than Monday’s closing of 166.72 in the interbank foreign exchange market.
Market View: The KSE-100 Index closed yesterday’s trading session at 35,373.3 points, up by 170.6 points. We expect positive momentum to continue as funds pore into equities from fixed income securities due to their unattractive yields.
Commodities:
Brent oil (USD/bbl): 43.01 (-0.16% D/D)
WTI Crude oil (USD/bbl): 40.54 (-0.20% D/D)
Gold (USD/oz): 1806.4 (-0.19% D/D)
National News
Trade deficit shrank to $23.18 bn in fiscal 2019-20
ISLAMABAD: Pakistan’s trade deficit shrank to $23.18 billion in fiscal year 2019-20 against $31.8 billion in 2018-19, registering 27 percent decline in trade balance. According to the official data released by the Pakistan Bureau of Statistics (PBS), exports fetched $21.387 billion in the last fiscal year ending on June 30, 2020 against the desired target of $24 billion. https://www.thenews.com.pk/print/683759-trade-deficit-shrank-to-23-18-bn-in-fiscal-2019-20
State Bank extends availability of loan deferment facility
KARACHI: The State Bank of Pakistan (SBP) has extended the deadline for consumers, small and medium businesses to apply for one-year moratorium on loan repayment till September 30 after recording freeze on nearly Rs600 billion of principal amounts.
Rupee extends losses
KARACHI: The rupee extended losses for the second consecutive session on Tuesday, as strong dollar demand from importers to make payments put pressure on the domestic currency, traders said. The local currency closed at 166.95 against the dollar, 0.13 percent lower than Monday’s closing of 166.72 in the interbank foreign exchange market.
Stock market’s first IPO after 15 months oversubscribed
KARACHI: The Organic Meat Company Limited, the country’s leading halal meat exporter, on Tuesday closed its book building, snapping a 15-month lull in initial public offering (IPO) in the stocks market.
Pak exports less hit than those of India, BD: Razak congratulates exporters on good performance
ISLAMABAD: Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood has congratulated all the exporters on good performance in 2019-20, in spite of the very challenging situation caused by Covid-19.
Policy facilitating Chinese investment: PD barred from carrying out alteration
ISLAMABAD: Planning Commission has reportedly barred Power Division from carrying out alteration in power generation policy aimed at facilitating Chinese investment in Kohala Hydropower Project and Patrind Hydropower Project under China Pakistan Economic Corridor (CPEC).
Income Tax/Sales Tax/FED: FBR orders audit of sugar mills in line with SIC report
ISLAMABAD: The Federal Board of Revenue (FBR) has directed Chief Commissioners Inland Revenue to start audit of Income Tax/Sales Tax/Federal Excise Duty of all the sugar mills, and submit final reports by September 30, 2020. In this regard, the FBR has issued instructions to the field formations for audit of sugar mills in line with the recommendations of the Sugar Inquiry Commission (SIC) Report.
CPEC boosts Pakistan’s socio-economic development: China
BEIJING: China on Tuesday appreciated Prime Minister Imran Khan remarks about China Pakistan Economic Corridor (CPEC) and said that it had boosted Pakistan economic and social development, people wellbeing and regional connectivity.
First time in six years: Domestic cement sales slip
LAHORE: After recording a fall in demand for three consecutive months, cement sales increased 29.94% in June 2020 to 4.623 million tons from 3.557 million tons in June 2019, ending FY20 on a positive note. https://tribune.com.pk/story/2253655/first-time-in-six-years-domestic-cement-sales-slip
Govt to withdraw all general power subsidies
ISLAMABAD: In a major development, the government has decided to withdraw all general power subsidies and would limit concessional electricity rates to five categories, which is also crucial for revival of the stalled International Monetary Fund (IMF) programme.
Cabinet to amend law to comply with FATF demand
ISLAMABAD: The cabinet, in its meeting on Thursday, is set to approve amendments to the law to comply with the Financial Action Task Force’s (FATF) demand to expand cooperation with foreign countries in providing information about owners of companies in a bid to stop money laundering and terror-financing. https://tribune.com.pk/story/2253651/cabinet-to-amend-law-to-comply-with-fatf-demand
International News
Oil moves lower as Covid-19 cases spark demand fears
Oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.Brent crude futures declined by 24 cents, or 0.56%, to $42.86. West Texas Intermediate crude futures fell 1 cent, or 0.02%, to settle at $40.62 per barrel. https://www.cnbc.com/2020/07/07/oil-markets-coronavirus-supply-cuts-in-focus.html
Gold steady near highest since November 2011 on flight to safety
Gold held firm near a more than eight-year high on Wednesday, as safe-haven demand was bolstered by worries over surging COVID-19 cases and hopes of more stimulus measures to combat the economic blow.
Asia Pacific stocks edge higher; WHO warns coronavirus deaths could start to rise again
Stocks in Asia Pacific traded higher on Wednesday morning as concerns around the coronavirus pandemic continue to linger.Mainland Chinese stocks edged higher in early trade, with the Shanghai composite up around 0.5% while the Shenzhen component rose 0.396%. Hong Kong’s Hang Seng index also added 0.3%.
