Daily news: 8th June 2020

12 1

Good Morning

All focus will be on the upcoming budget, which is expected to be announced this Friday. The budget will likely aim to mitigate the economic losses caused by the COVID-19 pandemic by proving support packages to key industries. The central government has continuously re-enforced that the budget will not introduce any new taxation measures and will be heavily leaning towards relief for the masses. Coronavirus cases and its death toll have also witnessed a sudden spike after the easing of lockdown with cases crossing the 100k mark and the death toll going past the 2,000 mark. Nevertheless, the Central government has explicitly stated that a country-wide lockdown is currently out of consideration.

Market View: The KSE100 ended the earlier week up by 419 points, to close at 34,350 points. While regional strength in financial markets may spill over to Pakistani markets, the spike in coronavirus cases may resulting in cautious trading activity.


Brent oil (USD/bbl): 42.91 (+1.44% D/D)
WTI oil (USD/bbl): 39.92 (+0.94% D/D)
Gold (USD/oz): 1,688.20 (+0.227% D/D)

National News

PM rules out possibility of another lockdown

Ruling out the possibility of lockdown, Prime Minister Imran Khan stated on Friday that the country cannot afford it but lockdown could be enforced in hotspot areas.


IMF remains closely engaged with Pakistan govt: Rice

The Inter-national Monetary Fund (IMF) and Pakistani authorities remain closely engaged to bring the second review of the Extended Fund Facility (EFF) to a positive conclusion, while taking into account the new conditions the Fund is facing in Pakistan, and to ensure the programme delivers on its objectives.


Hammad likely to present budget on 12th

Minister for Industries and Production Hammad Azhar is likely to present federal budget 2020-21 in the National Assembly on June 12, official sources told Business Recorder.


Sugar cartel’ to face full brunt of law

Prime Minister Imran Khan on Sunday approved massive investigations through various accountability organisations for taking action against the ‘sugar cartel’ allegedly involved in a multibillion rupee scam for the past 25 years.


$300m emergency loan agreement signed with ADB

The Asian Development Bank (ADB) and the Government of Pakistan signed the loan agreement for $300 million and grant agreement of $5 million under emergency assistance for fighting against Covid-19, here on Friday.


World Bank may loan $200m to lessen virus impact on Pakistan’s education

The World Bank has initiated preparation of a programme to strengthen federal and provincial governments’ institutions, policies and coordination for reducing the impact of external shocks on the education system, and increasing access to quality education in disadvantaged districts of the country, according to reliable sources.


PTI govt approves CPEC’s $7.2b strategic project

Pakistan Railways’ Mainline-I Project – the lone strategic project of the China Pakistan Economic Corridor (CPEC) – cleared its first hurdle on Saturday when the government approved it at a cost of $7.2 billion, setting the stage for negotiations with China and International Monetary Fund (IMF).


Diamer Bhasha Dam: Rs32.9bn technical supplementary grant approved

The federal government has approved an amount of Rs 32.9 billion as technical supplementary grant for Diamer Bhasha dam through adjustments in PSDP allocations of FY 2019-20 weeks after an agreement of Rs 442 billion was signed between Wapda and a Joint Venture of Power China and FWO, well informed sources in Ministry of Water Resources told Business Recorder.


Pak external financing requirement to jump to $29.3 bn

Amid decreasing non-debt creating dollar inflows in upcoming budget, Pakistan’s gross external financing requirement is expected to jump up from $25 billion in outgoing fiscal to at least $29.3 billion in next financial year 2020-21, it is learnt.


Petrol pricing likely to be deregulated

Amid continuously aggravating pet­roleum shortage across the country, the government has decided in principle to “completely deregulate” petrol pricing and marketing and do away with uniform pricing mechanism.


On POL products: PTI govt mulls Rs20 per litre GST

In what could be a major revenue spinner, the federal government may fix Rs20 per litre General Sales Tax (GST) rate for petroleum products in new budget aimed at protecting its revenues amid sliding oil prices in international market.


Regulator orders OMCs to slash HOBC price

The Oil and Gas Regulatory Authority (Ogra) has found that oil marketing companies (OMCs) are taking undue advantage of deregulation of high octane blending component (HOBC) fuel by charging higher prices.


CNG prices cut by Rs7.5 to Rs64.4/litre

Oil and Gas Regulatory Authority (Ogra) on Sunday fixed average RLNG prices at $6.12 per mmbtu for Sui Northern Gas Pipeline Limited (SNGPL) and $ 6.27 per mmbtu for Sui Southern Gas Company Limited (SSGCL) for the month of June.


Sub-committee formed to negotiate ‘overpayments’ to IPPs

The government has constituted a sub-committee for negotiation with independent power producers for recovery of a gigantic Rs5 trillion ‘overpayment’ to them and renegotiating formula of their profits, it was learnt on Saturday.


RLNG/electricity for textile sector; Govt agrees on provision of Rs20bn

The government has reportedly agreed on provision of Rs. 20 billion as subsidy on RLNG/electricity for textile sector in the federal budget 2020-12, to be unveiled on June 12. This consensus was evolved at a meeting between the textile industry and the government’s economic team, which is giving final touches to the budget proposals for FY 2020-21. According to sources, restoration of zero-rating or reduction of sales tax rate to 5% across the value chain was shot down after Chairperson FBR expressed her opposition.


GSP-Plus facility to continue till 2023, Senate told

Adviser to Prime Minister on Commerce Abdul Razak Dawood on Friday informed the Senate that European Union (EU) extended its Generalised Scheme of Preferences (GSP)-Plus facility to Pakistan until 2023.


Govt allows limitless wheat import by private sector

The federal government on Sunday decided to allow wheat import by the private sector without any restriction of limit and abolished 60 per cent regulatory duty on the import of wheat — the major staple food crop in Pakistan.


Finance Bill 2020 may address min tax on turnover

Finance Bill 2020 is expected to address the issue of applicability of higher rate of minimum tax on turnover for companies as compared to the corporate income tax also charged from companies.


International News

Asia stocks mostly rise as U.S. jobs data bounces unexpectedly; oil prices shed gains

Stocks in Asia were mostly higher in Monday morning trade after U.S. jobs data released Friday had an unexpected jump, spurring hopes of an economic recovery from the coronavirus pandemic

KASB Research

Leave a comment

Your email address will not be published. Required fields are marked *