A global anti-money laundering watchdog gave Pakistan time until June to show the nation had done enough to be removed from a monitoring list for terror-financing. Pakistan has addressed 24 of the 27 action items assigned to it.
Pakistan has sustained a staggering $38 billion economic losses due to the Financial Action Task Force’s (FATF) decision to thrice place the country on its grey list since 2008, says a new research paper published by an independent think-tank, Tabadlab.
The foreign exchange reserves held by the central bank rose 0.14% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On February 19, the foreign currency reserves held by the SBP were recorded at $12,908.7 million, up $19 million compared with $12,889.7 million in the previous week. The central bank gave no reason for the increase in reserves.
KASB Market View
During Thursday’s session, KSE 100 traded $140m & closed 603 points upwards today at 45,965 as investors grabbed positions in expectations of a favorable comment in FATF meeting. The market had been choppy over last few days despite promising corporate results. Investors are also shy of the outcome of Senate elections scheduled for 3rd March as opposition party has hinted of a “surprise” in numbers. Reduced number of PTI legislator could make it difficult for PTI to enact reforms required by multilateral lenders. We expect the decision of FATF to keep Pakistan in the grey list till Jun21 would be neutral for the market.
National News
Pakistan Again Gets Extension to Make Case for Exiting FATF List
A global anti-money laundering watchdog gave Pakistan time until June to show the nation had done enough to be removed from a monitoring list for terror-financing. Pakistan has addressed 24 of the 27 action items assigned to it, the Paris-based Financial Action Task Force said in a statement on Thursday. This is the second extension after the nation failed to meet four previous deadlines. Four months ago it was asked to see through the action plan by February.
FATF grey-listing caused ‘$38b losses’
Pakistan has sustained a staggering $38 billion economic losses due to the Financial Action Task Force’s (FATF) decision to thrice placed the country on its grey list since 2008, says a new research paper published by an independent think-tank, Tabadlab.
https://tribune.com.pk/story/2286167/fatf-grey-listing-caused-38b-losses
Foreign exchange: SBP reserves rise $19m to $12.9b
The foreign exchange reserves held by the central bank rose 0.14% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On February 19, the foreign currency reserves held by the SBP were recorded at $12,908.7 million, up $19 million compared with $12,889.7 million in the previous week. The central bank gave no reason for the increase in reserves.
https://tribune.com.pk/story/2286239/foreign-exchange-sbp-reserves-rise-19m-to-129b
Govt reviews Ogra recommendations on gas price hike
The federal government is reviewing the recommendations of the Oil and Gas Regulatory Authority (Ogra) for an increase in the consumer gas prices for the current financial year 2020-21. The regulator recommended the government to raise the gas prices for all categories of consumers of the Sui Northern Gas Pipeline Limited (SNGPL) average Rs35 per unit and Rs14 per unit for the Sui Southern Gas Company (SSGC).
https://epaper.brecorder.com/2021/02/26/6-page/871219-news.html
NEPRA proposes Rs0.89 per unit increase in power tariff
The National Electric Power Regulatory Authority (NEPRA) proposed on Thursday an Rs0.89 per unit increase in the electricity tariff in the context of January’s fuel price adjustment.
https://tribune.com.pk/story/2286217/nepra-proposes-rs089-per-unit-increase-in-power-tariff
Power arbitration deal likely to be submitted to PM today
Ministry of Privatisation is likely to submit the proposed Arbitration Agreement between Karachi Electric (KE), SSGCL, CPPA-G and other organizations to Prime Minister Imran Khan on Friday (today), well-informed sources told Business Recorder.
https://epaper.brecorder.com/2021/02/26/1-page/871183-news.html
Energy projects won’t add to debt: China
A Chinese Foreign Ministry’s Spokesperson said on Wednesday that power projects under China-Pakistan Economic Corridor (CPEC) did not incur debt burden on the Pakistani side because they were investment projects.
https://epaper.brecorder.com/2021/02/26/1-page/871182-news.html
Banks report strong 2020 profit growth: Moody’s
Pakistani banks report strong 2020 profit growth, despite pandemic and rising provisions, but pressure on 2021 profitability amid narrower net interest margins and ongoing asset quality deterioration is expected, says Moody’s Investors Services (Moody’s).
https://epaper.brecorder.com/2021/02/26/1-page/871179-news.html
MoU on introducing electric buses, other vehicles in Pakistan signed
A Memorandum of Understanding (MoU) was signed on Thursday among Daewoo Express Pakistan, Skywell from China and Hitachi ABB Power Grids from Sweden for introducing electric buses in Pakistan.
Construction work to start in April
The construction work under Naya Pakistan Housing Project will be started in April, the Public Accounts Committee (PAC) was informed on Thursday. Rana Tanveer Hussain chaired the meeting, here on Thursday. The committee examined audit paras of the Pakistan Public Works Department (PPWD) for the year 2019-20.
https://epaper.brecorder.com/2021/02/26/6-page/871218-news.html
Govt Increases Custom Values on Import of Iron and Steel Scrap
The Directorate General of Customs Valuation, Karachi, has upward revised customs values on the import of iron and steel scrap. In this connection, the directorate has issued a valuation ruling, here on Thursday. According to the ruling, in the exercise of the powers conferred under Section 2S-A of the Customs Act, 1969, the Customs values of Iron and Steel Scrap (remeltable/HMS scrap/shredded scrap/re-rollable scrap and compressor scrap) are determined.
https://propakistani.pk/2021/02/25/govt-increases-custom-values-on-import-of-iron-and-steel-scrap/
Globalization
-Word of the Day-
Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.
