Pakistan equities started the session with a vertical fall which continued till the end as the investors remained in panic selling mode amid sharp rise in coronavirus infections and fears of strict measures to curb the pandemic, as hinted by the Prime Minister. Mar-21 trade deficit widened by 118% to record at USD 3.2bn, which also fueled negative sentiments.
KASB Market View
Elevated inflation levels may likely compel the SBP to hike interest rates faster than anticipated to alleviate external account pressures and control the inflationary trends. COVID-19 cases continue to remain strong and may place a limit on the market’s upside. For the longer run, we maintain our preference for cyclical stocks including cements and automobiles.
NAB gives go ahead to revised deals with IPPs
ISLAMABAD: In a new development, the National Accountability Bureau (NAB) has written a letter to the Power Division saying that the government has the full authority to execute their altered agreements with 47 IPPs in a bid to provide relief to those officials who are hesitant to implement the new agreements because of fears of possible action against them in future.
ECC to approve first instalment of payment for IPPs
ISLAMABAD: The federal cabinet’s economic coordination committee (ECC), during its meeting next week, is likely to approve the payment of Rs85 billion to Independent Power Plants (IPPs).
Pakistan seeks financial assistance to deal with Covid impact
ISLAMABAD: Pakistan, on Monday, urged the international community for providing additional financial assistance to developing countries to deal with the negative impact of corona pandemic on the economy and fight against the socioeconomic challenges.
Public debt hits all-time high in Feb
KARACHI: The government debt stocks (domestic and external) continued to surge, reaching historic level of Rs 36.6 trillion in February 2021, primarily due to rising government borrowing from domestic market.
Opposition doesn’t matter now, says Imran
ISLAMABAD: Terming the opposition ‘harmless’ to the government, Prime Minister Imran Khan in a major policy shift on Monday directed his spokespersons not to criticise the opposition in the media but to highlight the government’s achievements.
Govt urged to facilitate KE deal with Shanghai Electric
ISLAMABAD: Saudi Arabia’s Al-Jomaiah Group on Wednesday sought early resolution of payables and receivables of K-Electric (KE) and urged the government and public sector entities to facilitate the power utility’s takeover by China’s Shanghai Electric Ltd.
Annual capacity payments to IPPs to reach Rs1.455trn by 2023
ISLAMABAD: Federal Minister for Energy. Omar Ayub Khan Monday said that $6.5 billion are being thrown into ‘hellfire’ every year to import energy under the head of guaranteed capacity payments – a major source of accumulation of the circular debt – singed by the previous government.
Nepra reduces Wapda hydropower tariff by 27.5pc
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday determined about 27.5 per cent reduction in average bulk hydroelectric tariff of the Water and Power Development Authority (Wapda) to ensure its revenue stream at Rs124 billion for fiscal year 2020-21.
Basic power tariff of hydel power increased
ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has increased basic power tariff of hydel power by 49 per cent from Rs 2.12 per unit to Rs 3.15 per unit. However, payment of NHP to provinces and AJK has slashed, resulting in reduction is overall impact on tariff by Rs 1.65 per unit.
Spat between PM’s aide, Saudi investor clouds KE deal prospects
ISLAMABAD: In a dramatic turn that may forestall an early settlement of tens of billions of dues between K-Electric and state-owned entities, Saudi investor Abdulaziz H. Aljomaiah and Special Assistant to the Prime Minister on Power Tabish Gauhar publicly accused each other of conflict of interest and attempts to fleece the state and Karachi-based power consumers.
KE’s settlement process: Aljomaih makes wild allegations against SAPM
ISLAMABAD: Managing Director, Investments of Saudi Arabia’s Aljomaih Holdings Co, Abdulaziz Hamad Aljomaih has accused Special Assistant to Prime Minister on Power, and Petroleum, Tabish Gauhar, of making “deliberate attempts” to disrupt KE issues’ settlement process, sources close to the Minister for Finance told Business Recorder. He is said to have conveyed his “complaint” to Prime Minister Imran Khan in a letter, copies of which have also been sent to Minister for Privatisation, Minister for Energy, Minister for Finance and Minister for Planning, Development and Special Initiatives.
TCP floats tender for import of 50,000 tons of sugar
KARACHI: Trading Corporation of Pakistan (TCP) has floated a tender for the import of 50,000 tonnes white sugar for domestic consumption. Following the directives of the Economic Coordination Committee (ECC) of the cabinet, the state-run grain trader has issued sugar import tender with last date for submitting the bid is April 14, 2021.
Islamic banking shares expected to reach 30pc: SBP
KARACHI: The State Bank of Pakistan (SBP) on Monday projected share of Islamic banking industry in assets and deposits to increase at 30 percent in five years from the existing around 18 percent.
PC’s body to finalize price of PSM assets, wording for EoI
ISLAMABAD: Privatisation Commission’s (PC’s) Transaction Committee is to meet on Tuesday (today) to finalise the price of assets of PSM and wording for an Expression of Interest (EoI) expected to be published this month, well informed sources told Business Recorder.
-Word of the Day-
Monetary policy, the demand side of economic policy, refers to the actions undertaken by a nation’s central bank to control money supply and achieve macroeconomic goals that promote sustainable economic growth.