The Pakistan Stock Exchange on Thursday staged a modest rally and the KSE-100 index climbed close to 500 points as the release of Pakistan Economic Survey 2020-21 sparked optimism among investors. Bank, fertiliser, cement and technology stocks dominated the day’s trading.
KASB Market View
Federal budget FY22 is going to be unveiled in the latter half of the day. We are expecting an investor friendly budget that would keep the bourse’s uptrend. Encouraging remittances data would also keep the bullish sentiments for the day.
FY22 budget to be presented today
The federal government is to present an annual (FY2021-22) budget today (Friday). The government has estimated 3.94% GDP growth for FY2020/2021, up from the revised 3% target from the original 2.1% set in the last budget. Independent financial analysts have questioned that number in view of the IMF and World Bank’s projection of 1.5% and 1.3% respectively.
Pakistan beats growth target as industries, services guide V-shaped recovery
Finance Minister Shaukat Tarin unveiled the Pakistan Economic Survey 2020-21 at a press conference in Islamabad on Thursday, revealing that the industrial and services sectors had helped the economy rebound and post GDP growth of 3.94 per cent in the first 9 months of the fiscal year (July to March), significantly higher than the target of 2.1pc.
JP Morgan asks investors to reap benefit of Pakistan’s improved economy
JP Morgan — the leading financial company — has asked investors to invest in Pakistan to reap benefits of its improved economic situation, Minister of State for Information and Broadcasting Farrukh Habib said.
JP Morgan expects ‘100bps policy rate hike later this year’
There have been some positive developments on the economic front in Pakistan, but challenges including risks around current account, deterioration from fading remittances, and higher commodity prices and political pressure to stimulate growth would presumably require a reappraisal of the International Monetary Fund (IMF) programme targets, says JP Morgan – a global leader in financial services.
Govt hopeful about IMF relaxations
Expressing the government’s resolve to consolidate and build on the growth trajectory achieved during the outgoing fiscal year of 3.94 percent, Finance Minister Shaukat Tarin stated that the International Monetary Fund (IMF) has been plainly told that the government cannot afford to burden people with new taxes and in power tariff hikes.
Remittances stay above $2b for 12th month in a row
In keeping with the trend over the past many months, workers’ remittances stayed above $2 billion in May 2021, driven higher by the proactive policy measures taken by the government and the State Bank of Pakistan (SBP) to encourage expatriates to use formal money transfer channels.
Forex reserves rise to $23.578bn
With arrival of inflows of WAPDA Green Eurobonds, the country’s total liquid foreign exchange reserves rose to $23.578 billion at the end of last week.
Govt aims to generate Rs242b revenue
The government has proposed to collect Rs242 billion through enforcement measures in the upcoming budget in addition to expanding its list of potential additional taxes. The development came as the International Monetary Fund (IMF) shows little flexibility on its demand over personal income tax measures.
Govt adds 1,200MW of electricity to national grid amid surge in demand
Amid a surge in demand for electricity due to scorching heat across the country, Federal Minister for Energy Hammad Azhar said that the government added 1,200MW of electricity to the national grid on Thursday.
Finance Minister Confirms Huge Tax Relief for Telecom Users
A relief package for the Telecom sector was confirmed today during the press conference and Minister Tarin gave the reassurance that the taxes on the sector would be reduced in the upcoming budget.
Revamped REIT rules to unleash big boom in real estate sector
The new reforms to the Real Estate Investment Trust (REIT) Regulations notified by the Securities and Exchange Commission of Pakistan (SECP) have the potential to unleash an unprecedented boom in the real estate sector of the country.