Pakistan’s market has been stuck in a limbo around the 48k mark because of absence of any notable upside triggers. Investor concerns largely emanate from rising COVID-19 infection rates and external account pressures, reflecting in the weakening of the Pak Rupee. The upcoming result season, however, may affect the market’s direction as the financial results would largely reflect the recent economic upswing.
KASB Market View
The upcoming monetary policy is likely to be a non-event with the market already incorporating in a ‘no-change’ stance. Investors are expected to closely track the recent currency volatility and the economic data points to formulate their investment strategy. We continue recommending building positions in cyclical stocks including cements, and automobiles.
IMF revises GDP growth projection upward to 3.9pc
The International Monetary Fund (IMF) has revised upward the GDP growth projection for Pakistan to 3.9 percent for 2021 from its earlier projection of 1.5 percent.
Surge in Covid-19 cases: Citizens advised to exercise caution
Abbasi Shaheed Hospital’s Pathological Laboratory on Tuesday conducted 57 PCR Covid-19 tests out of which 24 tested positive while 33 turned negative.
Federal cabinet: PD will take up draft of new LPG Policy 2021
The Petroleum Division will take up the draft of new LPG Policy 2021 for the approval of the Cabinet in the last week of August.
Fixation of cotton intervention price: Cabinet refers back ECC’s decision
The Federal Cabinet has referred back a decision of the Economic Coordination Committee (ECC) on fixation of cotton intervention price of Rs5000 per 40kg on the request of Prime Minister’s Advisor on Commerce and Investment Abdul Razak Dawood.
ECC to consider STPF 2020-25 today
The Economic Coordination Committee (ECC) of the Cabinet is all set to consider Strategic Trade Policy Framework (STPF) 2020-25 on Wednesday (July 28) as the Commerce Ministry has addressed concerns of the SBP and the FBR, official sources told Business Recorder.
Policy rate kept on hold at 7pc to support growth
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to maintain the policy rate at 7 percent to support the economic growth through accommodative monetary policy as Covid pandemic still persists.
Pakistan, Saudi Arabia to work on easing travel restrictions
Pakistan and Saudi Arabia on Tuesday discussed how to ease COVID-19 travel restrictions, which have stranded around 400,000 Pakistani workers back home, foreign ministers of the two countries told reporters.
IT exports cross record $2bn mark
Pakistan’s exports of information technology grew by 47.4 per cent to cross the $2 billion mark for the first time in the country’s history in the outgoing fiscal year.
SBP expects current account deficit to be 2-3pc
The State Bank of Pakistan (SBP) has kept the policy rate unchanged at 7 per cent in the hope that the current account deficit will remain in the range of 2 to 3pc of GDP in FY22.
Petroleum pricing getting tougher
It was only going to be a matter of time before the axe fell on GST, after Petroleum Levy left no room to be further squeezed. Despite having to raise the petrol price to the highest ever in the history, for which it attracted quite some flak, the government had to do it while reducing the GST on petrol drastically to 10.7 percent.
National Electric Power Regulatory Authority (Nepra) is said to be not sure that Independent Power Producers (IPPs) of the 2002 Policy secured illegal gains, well-informed sources told Business Recorder.
In the interbank market, the rupee closed at 161.33 per dollar, compared with Monday’s close of 161.23. The rupee stayed flat at 161.50 against the dollar for the second consecutive session in the open market.
Knitwear export surged by 36.57pc in FY21: PHMA
Knitwear garments export surged by 36.57 percent during period Jul-Jun FY 2020-21 over Jul-Jun FY 2019-20 and earned highest amount of foreign exchange, exporters said on Tuesday.
Cotton production prospects
Cotton exerted a drag on the overall agricultural performance, as the revised production estimate of 7.7 million bales represented the lowest output since FY86.