The stock market came under pressure on the first trading day of rollover week on Monday with the benchmark KSE-100 index recording a decline of nearly 230 points. There was anxiety in the market over the four-day Financial Action Task Force (FATF) plenary session, starting Monday, to review Pakistan’s performance on the anti-money laundering and terror financing action plan.
KASB Market View
All focus will be on the upcoming FATF Plenary meeting, which is scheduled this week (Jun 21-25). Recent reports highlight that Pakistan is largely compliant with 26 out of the 27 action points, increasing the likelihood of the country emerging out of the ‘Grey List’. Onwards, we believe the federal government’s focus on growth will likely provide support to cyclical industry including cements, steels and automobiles.
National News
S Arabia agrees to restart $1.5bn annual oil aid to Pakistan in July: FT
Saudi Arabia has agreed to restart oil aid to Pakistan worth at least $1.5 billion annually in July, according to officials in Islamabad, as Riyadh works to counter Iran’s influence in the region. The acrimony between the two long-time allies has eased after Prime Minister Imran Khan met Saudi Crown Prince Mohammed bin Salman in May, according to Financial Time.
https://pakobserver.net/s-arabia-agrees-to-restart-1-5bn-annual-oil-aid-to-pakistan-in-july-ft/
17pc ST imposed on crude oil an adjustable tax
The Federal Board of Revenue (FBR), Monday, informed the Senate Standing Committee on Finance that the 17 percent sales tax imposed on crude oil is an adjustable tax, which would help the FBR to have funds, despite the facility of sales tax adjustment.
https://epaper.brecorder.com/2021/06/22/3-page/890569-news.html
Govt to mull over more incentives for refineries
As per details, the Petroleum Division, in consultation with refineries, has formulated an incentive package for investment in up-gradation and sustainable operation of existing refineries as well as to attract investment in new state of the art deep conversion integrated refineries.
https://profit.pakistantoday.com.pk/2021/06/21/govt-to-mull-over-more-incentives-for-refineries/
Power policy approved by CCI
The Council of Common Interests (CCI) which met on Monday with Prime Minister, Imran Khan in the chair, approved the National Electricity Policy (NEP) 2021 unanimously for 10 years, aimed at providing reliable, secure, efficient and affordable electricity for sustainable economic growth.
https://epaper.brecorder.com/2021/06/22/1-page/890554-news.html
Nepra refuses to revise NJHPP levelized reference tariff
National Electric Power Regulatory Authority (Nepra) on Monday refused to revise levelized reference tariff of 969MW Neelam Jhelum Hydropower Project (NJHPP) from Rs 9.1184 per unit to Rs 10.30 per unit (cents 6.2440) for 30 years, until WAPDA gets Third Party Validation (TPV) or waiver of ”questionable” costs from the federal government.
https://epaper.brecorder.com/2021/06/22/1-page/890555-news.html
Power and energy; Meezan Bank signs deal with ENA
Meezan Bank, Pakistan’s leading Islamic bank has signed a supply agreement for green energy & power solution with Energy N Automation (Pvt) Ltd (ENA), a company of Jaffer Business Systems.
https://epaper.brecorder.com/2021/06/22/18-page/890691-news.html
Textile exports surge 18.85pc to $13.748bn
The country’s textile group exports have witnessed 18.85 percent growth during the first eleven months (July-May) of the current fiscal year 2020-21 and remained $13.748 billion as compared to $11.567 billion during the corresponding period of the last financial year.
https://pakobserver.net/textile-exports-surge-18-85pc-to-13-748bn/
Deposit of re-issuable balances; SBP extends suspension of 0.12pc service charges
The State Bank of Pakistan (SBP) has extended the temporary suspension of 0.12 percent service charges on deposit of re-issuable balances. Some 0.12 percent service charges have been levied on banks against deposit of re-issuable balances with the SBP BSC offices or NBP chest branches.
https://epaper.brecorder.com/2021/06/22/12-page/890646-news.html
Pfizer, BioNTech announce agreement with NDMA
Pfizer Pakistan and BioNTech SE Monday announced an agreement with the National Disaster Management Authority (NDMA) to supply 13 million doses of their Covid-19 vaccine – BNT162b2. Deliveries are planned during course of 2021.
https://epaper.brecorder.com/2021/06/22/7-page/890598-news.html
