Good Morning
The State Bank of Pakistan (SBP) on Monday announced the auction for three-year Government of Pakistan (GoP) Ijara Sukuk to raise some Rs 225 billion in the next three months for the federal government. The World Bank has forecast that if the novel coronavirus (COVID-19) lasts longer than expected, Pakistan’s exports could plunge by 19.7pc in the current fiscal year (FY20) as compared to the previous one. Economic experts have suggested the government to try and convince international donors to reschedule loans for Pakistan so that the country could avert an ominous ‘recession’ as predicted by the World Bank in its latest report.
Market View: The KSE100 Index lost 1,000.22 points on Monday, ending the session at 31,032.99 points. Crude oil and Asian markets trading in the green this morning can lend support to the index during trading today.
Commodities:
Brent oil (USD/bbl): 32.25 (+1.61% D/D)
Crude oil (USD/bbl): 22.69 (+1.25% D/D)
Gold (USD/oz): 1,777.70 (+0.9254% D/D)
National News
Sukuk auction announced to finance budget deficit
The State Bank of Pakistan (SBP) on Monday announced the auction for three-year Government of Pakistan (GoP) Ijara Sukuk to raise some Rs 225 billion in the next three months for the federal government.
https://epaper.brecorder.com/2020/04/14/1-page/833480-news.html
Pakistan’s exports likely to drop by 19.7pc in FY20: WB
The World Bank has forecast that if the novel coronavirus (COVID-19) lasts longer than expected, Pakistan’s exports could plunge by 19.7pc in the current fiscal year (FY20) as compared to the previous one.
‘Looming recession’: Experts suggest govt to push for rescheduling of foreign loans
Economic experts have suggested the government to try and convince international donors to reschedule loans for Pakistan so that the country could avert an ominous ‘recession’ as predicted by the World Bank in its latest report.
Utility Bills: Centre, Sindh ready to devise mechanism for payment
Federal Government and Sindh Government are said to be ready to devise a joint mechanism to stagger payment of due utility bills aimed at helping consumers hit by lockdown due to the outbreak of Covid-19.
https://epaper.brecorder.com/2020/04/14/1-page/833485-news.html
Meetings on 15th, 16th: Ways to reduce power tariff to be explored
Power Division has convened meetings of public sector Independent Power Producers (IPPs) and Generation Companies (Gencos) and private sector IPPs on April 15 and April 16 in Islamabad aimed at exploring different ways to reduce tariff.
https://epaper.brecorder.com/2020/04/14/1-page/833475-news.html
Independent power producers summoned for crucial talks
The government on Monday made first formal contact with the managements of all power plants, particularly Independent Power Producers (IPPs) for a structured dialogue on possible options to reduce immediate liabilities amid constrained electricity demand.
https://www.dawn.com/news/1549019/independent-power-producers-summoned-for-crucial-talks
ECC sets aside 200,000 tonnes of wheat for utility stores
The Economic Coordination Committee (ECC) of the cabinet on Monday approved allocation of additional 200,000 tonnes of wheat from public sector stocks for supply to the Utility Stores Corporation (USC) at a cost of Rs8.7 billion.
https://www.dawn.com/news/1549052/ecc-sets-aside-200000-tonnes-of-wheat-for-utility-stores
IMF acknowledges Pakistan’s response to pandemic
The International Monetary Fund (IMF) on Monday noted the rapid pace at which Covid-19 has been spreading in Pakistan and acknowledged the Rs1.2 trillion relief package announced by the government.
https://www.dawn.com/news/1549018/imf-acknowledges-pakistans-response-to-pandemic
IMF approves debt relief for 25 poor countries
The International Monetary Fund on Monday announced immediate debt relief for 25 poor countries to help them free up funds to fight the coronavirus pandemic.
https://www.thenews.com.pk/latest/644308-imf-approves-debt-relief-for-25-poor-countries
Broad money jumps by 8.6pc
While trade and industry is badly hit amid the ongoing lockdown, monetary expansion witnessed a sharp increase of 8.59 per cent over end of FY19 level, suggesting that liquidity is being pumped mostly for non-productive areas.
https://www.dawn.com/news/1549014/broad-money-jumps-by-86pc
BankIslami launches ‘Ehad Sukuk’
BankIslami Pakistan Limited has announced launching of Pakistan’s ‘First’ Initial Public Offering (IPO) of Additional Tier 1 Modaraba Sukuk under the brand name of “BankIslami Ehad Sukuk,” which will be listed and traded on Pakistan Stock Exchange (PSX).
https://epaper.brecorder.com/2020/04/14/7-page/833541-news.html
Borrowing by Private Sector increases by Rs 7.39 billion in a week
The non-government sector has borrowed another net sum of Rs.7.39 billion during the week ended April 03, 2020, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.316.28 billion. The net borrowing as of prior week was recorded at Rs.308.89 billion.
https://mettisglobal.news/borrowing-by-private-sector-increases-by-rs-7-39-billion-in-a-week
Govt likely to rationalise taxes on telecom sector
The government is expected to rationalise taxes on telecom sector in the coming budget (2020-2021) and review budget proposals of the Pakistan Telecom Authority (PTA) to harmonize service sales tax (SST) 19.5 percent and the federal excise duty (FED) 17 percent on telecom services into one lower rate of the SST/FED for all the provinces and the federal capital.
https://epaper.brecorder.com/2020/04/14/3-page/833502-news.html
International News
Oil gains as US shale production set to fall sharply
Oil prices rose on Tuesday after a U.S. agency said shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers.
https://www.cnbc.com/2020/04/14/oil-markets-coronavirus-pandemic-us-shale-in-focus.html
Asia stocks edge higher; China’s yuan-denominated exports fall in March
Stocks in Asia edged higher in Tuesday morning trade following the release of Chinese trade data for March.https://www.cnbc.com/2020/04/14/asia-markets-china-march-trade-data-coronavirus-currencies-in-focus.html
