Good Morning
In the aftermath of the spread of deadly COVID-19 virus in different parts of the world, the Financial Action Task Force (FATF) has extended its deadline for complying conditions for Pakistan for three months up to September from earlier June 2020. Rupee hit another record low of 167.89 to the US dollar in the interbank trade on Tuesday as there was no respite in foreign outflows from debt market, compounded by a fear of delay in third tranche of IMF’s loan. Textile exporters have demanded the Sindh government to allow operations of export-oriented 150 mills in the province while the Sindh government has prepared a list of 70 such factories.
Market View: The KSE100 Index gained 652 points during yesterday’s session and closed at 31,231.55points. We expect the market to remain range bound in the upcoming session. However, spike in the number of confirmed COVID19 cases in the country could negatively impact the market sentiment.
Commodities:
Brent Crude oil (USD/bbl): 32.57 (+2.2% D/D)
WTI Crude oil (USD/bbl): 24.86 (+5.2% D/D)
Gold (USD/oz): 1,682.50 (-0.053% D/D)
National News
FATF extends deadline to Pakistan
ISLAMABAD: In the aftermath of the spread of deadly COVID-19 virus in different parts of the world, the Financial Action Task Force (FATF) has extended its deadline for complying conditions for Pakistan for three months up to September from earlier June 2020.
https://www.thenews.com.pk/print/641212-fatf-extends-deadline-to-pakistan
Rupee sags to another record low of 167.9/dollar
KARACHI: Rupee hit another record low of 167.89 to the US dollar in the interbank trade on Tuesday as there was no respite in foreign outflows from debt market, compounded by a fear of delay in third tranche of IMF’s loan.
https://www.thenews.com.pk/print/641011-rupee-sags-to-another-record-low-of-167-9-dollar
Sindh govt imposes stricter lockdown to prevent local transmission of coronavirus
The Sindh Chief Minister Syed Murad Ali Shah on Tuesday held a consultative session with some of the key members of his cabinet and decided to tighten the lockdown regime in the province to prevent local transmission of coronavirus.
Textile exporters demand opening of 150 mills in Sindh
KARACHI: Textile exporters have demanded the Sindh government to allow operations of export-oriented 150 mills in the province while the Sindh government has prepared a list of 70 such factories.
https://www.thenews.com.pk/print/641210-textile-exporters-demand-opening-of-150-mills-in-sindh
Public debt up 5.14 percent to Rs33.421trln in July-Feb FY20
KARACHI: Pakistan’s public debt rose by 5.14 percent to Rs1.635 trillion in the eight months of the current fiscal year, mainly due to increase in domestic debt accumulation, the central bank data showed on Tuesday.
https://www.thenews.com.pk/print/641010-public-debt-up-5-14-percent-to-rs33-421trln-in-july-feb-fy20
Karkey’s liabilities: $1.5 million grant to be approved by ECC today
The Economic Coordination Committee (ECC) of the Cabinet which is scheduled to meet on Wednesday (today) will approve $ 1.5 million supplementary grant for Power Division to clear liabilities with respect to M/s Karkey rental power plant, well informed sources told Business Recorder.
KE in serious financial crisis: CFO
Karachi Electric (KE) is reportedly in a serious financial crisis due to non-payment of receivables by governments, well-informed sources in KE told Business Recorder.
https://www.brecorder.com/2020/04/08/587461/ke-in-serious-financial-crisis-cfo/
Essential food items: Cut in duties, taxes on import and local supply notified
The Federal Board of Revenue (FBR) Tuesday notified reduction in duties and taxes on the import and local supply of essential food items including withdrawal of additional customs duty on the import of edible oil and oil seeds till June 30, 2020.
Byco takes measures due to slow POL demand
ISLAMABAD: Byco Petroleum Pakistan Limited, Pakistan’s largest oil refinery by design and installed capacity, has been constrained to put its refinery on “cold circulation”, due to absence of demand for POL products, said Fayaz Ahmad Khan, Vice President of Commercial at Byco Petroleum Pakistan Limited in a statement issued from Karachi on Tuesday.
https://www.thenews.com.pk/print/641163-byco-takes-measures-due-to-slow-pol-demand
Tax collection grows 29 percent to Rs84 billion in nine months
Regional Tax Office (RTO) –II Karachi posted a 29 percent growth in revenue collection during the first nine months of the current fiscal year of 2019/20, official data showed said on Tuesday.
MoF asks SBP, FBR to provide SMEs’ data
ISLAMABAD: The Finance Ministry is in the process of gathering data of small and medium enterprises (SMEs) from different sources to provide relief as part of the government’s economic relief package, according to a senior official of the ministry.
https://epaper.brecorder.com/2020/04/08/14-page/832903-news.html
Refineries face closure as oil marketing companies reluctant to pick up stocks
ISLAMABAD: Amid wheat harvesting season, the government has asked the Oil and Gas Regulatory Authority (Ogra) to take action against oil marketing companies (OMCs) for their reluctance to uplift petroleum products from refineries, resulting in serious supply problems.
International News
Oil prices jump as focus swivels to OPEC, Russia meeting on output cuts
Brent crude was up by 72 cents, or 2.3%, at $32.59 per barrel by 0044 GMT after falling 3.6% on Tuesday. U.S. West Texas Intermediate (WTI) crude rose $1.30, or 5.5%, to $24.93 a barrel after dropping 9.4% in the previous session.
https://www.cnbc.com/2020/04/08/oil-markets-crude-output-opec-and-allies-meeting-in-focus.html
Gold eases on firmer dollar, coronavirus slowdown signs
Gold prices eased on Wednesday as the U.S. dollar firmed, while signs of a slowdown in the new coronavirus cases in major hot spots hurt the metal’s safe-haven appeal and pushed it further away from a near one-month high hit in the previous session.
https://www.cnbc.com/2020/04/08/gold-markets-coronavirus-in-focus.html
Wuhan eases lockdown, Tesla will slash employee pay and furlough employees
The central Chinese city of Wuhan — where the coronavirus was first reported — started allowing people to leave for the first time since it was locked down on Jan. 23 to contain the outbreak.
