The bearish spell continued at the Pakistan Stock Exchange for a third day on Wednesday as weak economic cues played on investors’ mind and dragged the benchmark KSE-100 index lower.
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’. We expect currency depreciation to spark inflationary concerns that might dampen the investor’s sentiments.
National News
Dollar hits four-months high to reach Rs158.53
The dollar hit exactly four-month high to rupee on Wednesday as the local currency depreciated by another 34 paisas(-0.21 percent) against the greenback in the inter-bank on Wednesday. According to the State Bank of Pakistan, the US dollar opened atRs158.19 and closed at Rs158.53. Last time, the dollar was seen at Rs158.52 on February 23, 2021. Within the open market, the US dollar was traded at Rs158.50/159.
https://pakobserver.net/dollar-hits-four-months-high-to-reach-rs158-53/
News about French position on Pakistan’s engagement with FATF rejected
Pakistan has dispelled the misleading and baseless news stories about French position on Pakistan’s engagement with FATF published by some media outlets. A clarification issued by Finance Division on Wednesday stated that France, like many other jurisdictions, has been an active partner of Pakistan during the implementation of its ICRG Action Plan and it has also provided technical support and guidance to Pakistan.
https://pakobserver.net/news-about-french-position-on-pakistans-engagement-with-fatf-rejected/
Rs4.7trn revenue target for FY21 to be achieved
ISLAMABAD: The federal government has recorded tax collection of Rs 4.1 trillion so far, while it is expected to achieve the revenue collection target of Rs 4.7 trillion in the outgoing financial year 2020-21, Senator Mohsin Aziz from the ruling party Pakistan Tehreek-e-Insaf (PTI) informed the Senate Wednesday.
https://epaper.brecorder.com/2021/06/24/6-page/890887-news.html
Divestment of govt share in Mari Petroleum; PC asked to come up with comprehensive proposal
ISLAMABAD: Finance Minister Shaukat Tarin Wednesday directed the Privatisation Commission and the Ministry of Petroleum to further examine the issue of divestment of government share in the Mari Petroleum Limited and come up with a comprehensive proposal during the next Cabinet Committee on Privatization (CCoP) meeting.
https://epaper.brecorder.com/2021/06/24/1-page/890856-news.html
Cabinet decides Engro to replace LNG terminal in August
The cabinet has decided that Engro should replace the LNG floating terminal in August in a bid to avoid the looming energy crisis. The cabinet said this during the last meeting. Earlier, the Cabinet Committee on Energy (CCoE) on Friday had refused to allow Engro to replace the existing FSRU with a new one having higher regasification capacity due to the peak summer season.
https://newztodays.com/engro-lng-terminal/
LNG terminal dry-docking to cost $40 million
ISLAMABAD: The dry-docking in peak summer season will cost state-run energy companies and consumers around $40 million. In addition to the hefty price, the country is also facing an energy crisis if the Engro LNG terminal goes on dry docking after June 30, 2021.
https://tribune.com.pk/story/2306712/lng-terminal-dry-docking-to-cost-40-million\
PABC’s IPO raises Rs4.6bn through book building
KARACHI: The book-building phase of Pakistan Aluminium Beverage Cans Limited (PABC)’s Initial Public Offer (IPO) has concluded with an oversubscription of 3.3 times, the company said on Wednesday.
https://epaper.brecorder.com/2021/06/24/5-page/890874-news.html
PIA to add four new aircraft to its fleet
The Pakistan International Airline (PIA) has decided to add four new aircrafts to its fleet, the national airline’s spokesperson announced on Wednesday.
https://pakobserver.net/pia-to-add-four-new-aircraft-to-its-fleet/
Rs300m allocation approved by ECC; Setting up of border markets now in sight
ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet has approved an allocation of Rs300 million for establishment of three joint border markets in Baluchistan.
https://epaper.brecorder.com/2021/06/24/1-page/890850-news.html
Banking sector expects boost as FATF decision looms
KARACHI: Pakistan’s banking sector is expecting further ease in restrictions from international financial markets as the global money laundering watchdog is to take a decision about the country’s compliance, bankers said on Wednesday.
https://www.thenews.com.pk/print/854079-banking-sector-expects-boost-as-fatf-decision-looms/
Govt to bring down FED on telecom, broadband to 16pc
LAHORE: Following the federal government decision to bring down federal excise duty (FED) on telecom services and broadband operators to 16 percent, the gap between FED and general sales tax (GST) on services imposed by the provinces on the sector has increased to a whopping 3.5 percent.
https://www.thenews.com.pk/print/854087-govt-to-bring-down-fed-on-telecom-broadband-to-16pc
Cabinet body approves Services International Hotel’s revised price
ISLAMABAD: The Cabinet Committee on Privatization (CCOP) on Wednesday approved the revised reverse price for Services International Hotel and mulled over divestment of government shares from Mari Petroleum.
Fear of petrol shortage looms as oil tankers go on countrywide strike
KARACHI: The All Pakistan Oil Tankers Contractors Association (APOTCA) has announced to go on strike to suspend petroleum products’ supplies nationwide from Thursday (today) morning for an indefinite period.
US agrees to lift oil, shipping sanctions, claims Iran
DUBAI/BERLIN: Iran said on Wednesday the United States had agreed to remove all sanctions on Iran’s oil and shipping, although Germany cautioned that major issues remained at talks between Tehran and world powers to revive a 2015 nuclear deal. The Iranian remarks, by outgoing President Hassan Rouhani’s chief of staff Mahmoud Vaezi, echoed previous assertions by officials in Rouhani’s pragmatist camp that Washington is prepared to make major concessions at the talks, which have been under way since April in Vienna.
https://www.brecorder.com/news/40102636
Roosevelt Hotel: Govt for putting a cap on recurring liabilities
ISLAMABAD: Aviation Division is said to have been directed by the Federal Cabinet to formulate a viable future plan of Roosevelt Hotel, New York, aimed at putting a cap on recurring liabilities, well-informed sources told Business Recorder.
