Daily news: 4th June 2020

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Finance ministers from the Group of Seven nations on Wednesday underscored their commitment to implementing official bilateral debt relief for the world’s poorest countries through year-end and possibly longer as they deal with the coronavirus pandemic. The State Bank of Pakistan (SBP) has reported that the government raised Rs146.5 billion through T-bills, against the auction target of Rs325 billion. The Oil and Gas Regulatory Authority (Ogra) on Wednesday found six mega Oil Marketing Companies (OMCs) involved in prevailing shortage of petroleum products across the country. It suggested the Petroleum Division to call an urgent product review meeting (PRM) to review integrated system like stock, import and local production. The State Bank of Pakistan (SBP) on Wednesday hinted at further steps to shore up finances of private sector amid the coronavirus crisis, keeping lowering inflation under consideration.

Market View: The KSE100 Index lost 6.63 points during Monday’s trading session. We expect the market to remain stable and range bound in the upcoming session.

Commodities:

Brent oil (USD/bbl): 39.37 (-1.06% D/D)
Crude oil (USD/bbl): 36.63 (-1.77% D/D)
Gold (USD/oz): 1,708.10 (+0.1936% D/D)

National News

Poorest countries: Debt relief could extend beyond 2020: G7

WASHINGTON: Finance ministers from the Group of Seven nations on Wednesday underscored their commitment to implementing official bilateral debt relief for the world’s poorest countries through year-end and possibly longer as they deal with the coronavirus pandemic.

https://epaper.brecorder.com/2020/06/04/1-page/839299-news.html

SBP raises Rs146.5bn from T-bill auction

The State Bank of Pakistan (SBP) has reported that the government raised Rs146.5 billion through T-bills, against the auction target of Rs325 billion. The SBP conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) and received bids amounting to over Rs772.8 billion.

Ogra finds 6 OMCs involved in shortage

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Wednesday found six mega Oil Marketing Companies (OMCs) involved in prevailing shortage of petroleum products across the country. It suggested the Petroleum Division to call an urgent product review meeting (PRM) to review integrated system like stock, import and local production.

https://epaper.brecorder.com/2020/06/04/16-page/839433-news.html

State Bank indicates further policy moves amid lowering inflation

KARACHI: The State Bank of Pakistan (SBP) on Wednesday hinted at further steps to shore up finances of private sector amid the coronavirus crisis, keeping lowering inflation under consideration.

https://www.thenews.com.pk/print/667414-state-bank-indicates-further-policy-moves-amid-lowering-inflation

Foreign firms repatriate $1.194bln in 10 months

KARACHI: Outflow of profits and dividends on foreign investments from the country dropped 3.47 percent to $1.194 billion in 10 months of the current fiscal year, mainly owing to limited or stagnant economic activities under a COVID-19 pandemic-led lockdown, central bank data showed on Wednesday.

https://www.thenews.com.pk/print/667424-foreign-firms-repatriate-1-194bln-in-10-months

PSM retrenchment plan approved by ECC: Body set up to work on oil hedging options

ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved retrenchment plan for over 9,000 employees of the Pakistan Steel Mills (PSM) and set up a body to explore various call options for oil hedging.

https://www.brecorder.com/news/1001442/psm-retrenchment-plan-approved-by-ecc-body-set-up-to-work-on-oil-hedging-options

Sartaj says Covid-19 renders 20 million jobless

LAHORE: “Even before the pandemic, Pakistan had 60 million unemployed. Covid-19 has added an estimated 20 million more,” said former Finance Minister Sartaj Aziz in his comments at an online conference held Wednesday under the aegis of Institute for Policy Reforms.

https://www.brecorder.com/news/1001431/sartaj-says-covid-19-renders-20-million-jobless

PM for ensuring impact of reduced fuel prices on commodities’ prices

ISLAMABAD: While taking notice of increase in flour prices and other essential commodities, Prime Minister Imran Khan has asked Adviser on Finance Dr Abdul Hafeez Shaikh, National Price Monitoring Committee, and the provincial governments to make sure that the impact of reduction of fuel prices must correspondingly reflect in the prices of essential commodities.

https://www.brecorder.com/news/1001430/pm-for-ensuring-impact-of-reduced-fuel-prices-on-commodities-prices

CDWP approves 7 projects, recommends one project to ECNEC

ISLAMABAD: The Central Development Working Party (CDWP) approved seven projects at the cost of Rs24 billion and recommended one project worth Rs11.35 billion to the Executive Committee of the National Economic Council (ECNEC) for consideration.

https://www.brecorder.com/news/1001382/cdwp-approves-7-projects-recommends-one-project-to-ecnec

ECC to decide on Rs20bn plan for hedging of oil imports

ISLAMABAD: The government has called a meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday to consider hedging of oil prices and about Rs120 billion worth of funds to finance improvement of western border management and low bill recoveries in the power sector.

https://www.dawn.com/news/1560971/ecc-to-decide-on-rs20bn-plan-for-hedging-of-oil-imports

Duty drawback raised for finished leather, plastic

ISLAMABAD: The Federal Board of Revenue has raised duty drawback rates on exports of finished leather and plastic goods including packing material.

https://www.dawn.com/news/1560970/duty-drawback-raised-for-finished-leather-plastic

Dollar continues upward journey

KARACHI: The dollar continued its upward journey against the local currency, raising the uncertainty for the exchange rate and importers. On Tuesday, the dollar was traded as high as Rs166 in the interbank market but fell back to close at Rs164.89 with a gain of 81 paisas.

https://www.dawn.com/news/1560972/dollar-continues-upward-journey

Cement sales plunge 37.6pc in May

ISLAMABAD: The impact of construction package announced by the government is yet to be seen, as domestic cement uptake declined by a massive 37.63pc to 2.27 million tonnes in May 2020, as compared to 3.64 million tonnes in May 2019.

International News

Oil prices fall on concerns supply to rise as producers wrangle on cuts

Oil prices fell on Thursday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.

https://www.cnbc.com/2020/06/04/oil-markets-crude-output-opec-meeting-in-focus.html

Gold rises on political frictions, weaker dollar

Gold prices gained from last session’s fall on lingering political tensions and a weaker dollar, but were still near their lowest in over a week as equities were set to extend their gains on economic optimism.

https://www.cnbc.com/2020/06/04/gold-markets-political-tensions-us-dollar-in-focus.html

The bond market appears to be signaling the worst is over for the economy

The bond market has caught a tiny bit of the stock market’s optimism, and it’s selling off on the idea that the economy may have hit rock bottom in April.

https://www.cnbc.com/2020/06/03/the-bond-market-appears-to-be-signaling-the-worst-is-over-for-the-economy.html

Asia stocks edge higher as optimism remains over economic recovery from coronavirus pandemic

Stocks in Asia nudged higher in Thursday morning trade as optimism over the economic recovery from the coronavirus pandemic continued to keep investor sentiment afloat.

https://www.cnbc.com/2020/06/04/asia-markets-global-economy-coronavirus-currencies-in-focus.html
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