The previous week saw the index continue with its upward trajectory, albeit at a relatively slower pace. We believe the index’s momentum hit some snags as investors likely opted to book their profits amidst the index’s recent rally. Moreover, there is an air of uncertainty regarding the index’s ability for sustained recovery in light of the pandemic.
Market View: The KSE100 ended the earlier week up by 277 points, to close at 37,608 points. The market’s rally came under pressure during the week due to uncertainty regarding the sustained financial performance of companies in the backdrop of the coronavirus. The result season has commenced with the initial waves of results depicting the impact of the pandemic.
Brent oil (USD/bbl): 42.81 (-0.99% D/D)
WTI oil (USD/bbl): 40.17 (-1.01% D/D)
Gold (USD/oz): 1,804.74 (0.33% D/D)
Steps under way to extricate country from FATF grey list: Qureshi
Foreign Minister Makhdoom Shah Mehmood Qureshi Saturday said the government was taking some more administrative and legislative steps which would surely help the country extricate itself from grey list of Financial Action Task Force (FATF).
Companies Act, Limited Liability Partnership Act: Govt decides to promulgate Ord to amend laws
The government has decided to promulgate an ordinance to amend the Companies Act, 2017 and the Limited Liability Partnership Act, 2017 to check misuse of bearer securities and prevent companies from money laundering or terrorist financing abuses in line with the recommendations of the Financial Action Task Force (FATF).
No monetary policy till September: SBP
The State Bank of Pakistan (SBP) has decided not to hold Monetary Policy Committee meeting till September, a press release issued on Friday said.
In FY20: Govt gets over $13b in foreign loans
The Pakistan Tehreek-e-Insaf (PTI) government took over $13 billion in foreign loans in the previous fiscal year – the second highest amount in history – to repay maturing external debt and cushion the shrinking foreign exchange reserves.
PTI govt approves Rs1.5b subsidy on tractors
The government under its agricultural fiscal package has approved Rs1.5 billion sales tax subsidy on locally manufactured tractors to promote mechanisation in the agriculture sector and to enhance per-acre crop output in the country.
Govt unveils Rs6.8bln in markup subsidy on agri-loans
Government on Friday announced around seven billion rupees of mark-up subsidy on agri-loans that are expected to buttress 70 percent of farmers with smallholding in the lands magnate agriculture society.
PIA not being privatised, Senate told
The Senate was informed on Friday that the national flag carrier was not on the privatisation list. Winding up a discussion on a calling-attention notice on suspension of PIA flights in European Union countries, Aviation Minister Ghulam Sarwar Khan said the restructuring of the Pakistan International Airlines was on the cards.
Government-IPPs talks yield no results
The parleys between Independent Power Producers (IPPs) and the government are reportedly heading nowhere due to latter’s “unrealistic” demands. The newly constituted committee representing the government is headed by Chairman Federal Land Commission, Babar Yaqoob Fateh Muhammad and comprises an officer of Power Division not below a Joint Secretary, Muhammad Ali, former Chairman, Securities and Exchange Commission of Pakistan and Barrister Qasim Wadood.
Tax-to-GDP ratio declines to historic low
Pakistan’s tax-to-GDP ratio has declined to a historic low of around nine percent during the fiscal year 2019-2020 compared to 11.1 percent in 2017-2018, largely because of lack of leadership at the Federal Board of Revenue (FBR), increase in corruption within the tax machinery, and flawed tax policy measures.
Banks not ready to share client data with FBR: report
Commercial banks are not willing to share details of their account holders with the Federal Board of Revenue, a private media outlet reported on Saturday. According to an FBR document, the board’s anti-benami zones had filed 51 references worth Rs22.8 billion in the last 12 months. These include valuables, commercial assets, luxury vehicles, 60,000-kanal anonymous property and shares worth millions of rupees
Construction sector: Experts challenge certain conditions of package
Tax experts have challenged certain conditions of the incentive package for the construction sector, which so far was unable to attract developers and builders in making new investments within the given timelines under the Tax Laws (Amendment) Ordinance, 2020.
Gold hits another all-time high
The yellow metal continued its march, breaking records as gold prices reached another all-time high as the per-tola price of the gold on Saturday reached Rs120,500, after an increase of Rs1,800 in a single day. According to Sindh Jewellers Association, the price of 22-carat gold has reached Rs 110,458 per 10 grams while the price of silver with an increase of Rs 20 is now being sold at Rs1,420 per tola.
IFC invests $25m in Packages Limited to modernise operations, cut energy, water use in Pakistan
IFC, a member of the World Bank Group, has signed a deal for a five-year loan investment of US$25 million in Limited, one of Pakistan’s leading packaging and tissue paper producers, to modernize its operations, and cut its water and energy use.