Good Morning
Adviser to the Prime Minister on Economic Affairs Abdul Hafeez Sheikh Monday said the government would not introduce any new tax in the coming budget. The government has decided to announce budget for 2020-21 in the Parliament on June 12, 2020, The News has learnt. Multinational companies have continued to inject fresh investment into ongoing projects in different sectors of Pakistan’s economy like telecommunication, power, and chemical despite the global economic crisis sparked by the coronavirus pandemic. Pakistan will continue to register large fiscal deficits in 2021 and beyond, says Moody’s Investor Services (Moody’s).
Market View: The KSE100 kicked the week off in the red, with the index having lost 203.36 points to close at 33,804.97 points. Strength in crude oil and the Asian markets is expected to spill over into the local market. However, Moody’s recent comments about the Pakistani economy could keep the movement in check.
Commodities:
Brent oil (USD/bbl): 34.67 (-0.40% D/D)
Crude oil (USD/bbl): 31.93 (+0.35% D/D)
Gold (USD/oz): 1,739.80 (+0.3113% D/D)
National News
Govt not to introduce any new tax in upcoming budget: Hafeez
Adviser to the Prime Minister on Economic Affairs Abdul Hafeez Sheikh Monday said the government would not introduce any new tax in the coming budget.
Budget on June 12
The government has decided to announce budget for 2020-21 in the Parliament on June 12, 2020, The News has learnt.
Despite pandemic, Pakistan’s FDI soars 32% in April
Multinational companies have continued to inject fresh investment into ongoing projects in different sectors of Pakistan’s economy like telecommunication, power, and chemical despite the global economic crisis sparked by the coronavirus pandemic.
IT sector fetches $35.1m FDI in Jul-Apr
Information Technology sector fetched $35.1 million Foreign Direct Investment (FDI) in July-April 2020 compared to $22.9 million in the corresponding period of last fiscal year, registering an increase of around $12.2 million.
Fiscal deficit to continue to rise in 2021 and beyond: Moody’s
Pakistan will continue to register large fiscal deficits in 2021 and beyond, says Moody’s Investor Services (Moody’s).
ADB extended $1.8bn loans in 2019
The Asian Development Bank (ADB) extended a total of $1.8 billion to Pakistan to support key economic, energy, and trade reforms in 2019.
Two $371m agreements inked with WB
Pakistan and World Bank Monday signed two agreements of $371 million to support projects in agriculture and social sector.
PSDP 2019-20: Rs562bn released against budgeted Rs701bn
The federal government has released Rs562 billion (80 percent) including Rs109.29 billion foreign aid (85 percent) for various ongoing and new development projects under the Public Sector Development Programme (PSDP) 2019-20 against the total budgeted allocation of Rs701 billion.
PTI govt to drop unapproved projects from PSDP
The federal government has decided to drop unapproved projects from the Public Sector Development Programme (PSDP) in the next budget, which will now be unveiled on June 12.
Rs200 bn Energy Sukuk-II oversubscribed by 62.5pc on first day
The Pakistan Energy Sukuk-II of Rs200 billion book-running that began on Monday in Pakistan Stock Exchange (PSX) attracted a strong demand and was oversubscribed by 62.5 percent at its first day, indicating that the government will discover low interest rate.
FBR eyes Rs100bln in revenue from banking sector in FY2021
The Federal Board of Revenue (FBR) is eyeing around Rs100 billion in revenues, during the next fiscal year of 2020/21, from bad debts that banking sector currently considers as expenses, sources said on Monday.
SC finds ‘no valid reason’ for keeping malls closed, says no need to keep markets closed on weekends
Chief Justice of Pakistan Gulzar Ahmed on Monday issued directions to reopen shopping malls across the country.
PIA incurs loss of Rs56bn
Pakistan International Airlines posted loss after tax at Rs56.04 billion in 2019, down from Rs66.66bn in 2018 — showing a decline of 15.9 per cent.
Wheat procurement, flour price Food dept, PFMA fail to reach consensus formula
Talks between Punjab Food Department and the Pakistan Flour Mills Association (PFMA) Monday failed to evolve a workable formula to grant permission to millers for wheat purchase and hike in flour price.
Gold hits Rs97,000 per tola
The one tola and 10-gram domestic gold prices on Monday swelled by Rs2,000 and Rs1,715 to Rs97,000 and Rs83,162, respectively, owing to an increase of $43 per ounce in world gold price to $1,762 per ounce.
International News
Oil prices lifted for 4th day by signs of output cuts and demand pick-up
Oil prices rose on Tuesday, extending gains for a fourth straight session, amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.
Asia stocks jump as hopes of coronavirus vaccine rise
Stocks in Asia jumped in Tuesday morning trade as hopes rise on a potential coronavirus vaccine after a positive development from a Moderna trial.
Gold eases off highs as vaccine hopes boost risk appetite
Gold retreated on Monday from a more than seven-year high, as stocks and oil surged on optimism surrounding the trial of a potential COVID-19 vaccine.
https://www.cnbc.com/2020/05/18/gold-markets-us-china-tensions-economic-data-in-focus.html
KASB Research
