The market managed to sustain past the 48k market on anticipation of a pro-growth budget. The start of the week was largely driven by payment to the IPPs and investor anticipation of bumper dividends from the sector.
KASB Market View
The Budget unveiled came in line with industry expectations of a pro-growth stance, proposing several measures to support industrial growth. With a reduction in capital gains tax, we expect the market to rally considerably during the next week. Sectors likely to rally include cyclical stocks including cements and automobiles. Moreover, the refinery sector may also find support after its tax incentives was officially proposed.
Development in focus as PTI unveils Rs8.5 trillion FY22 budget
Finance Minister Shaukat Tarin on Friday presented the Rs8.48 trillion federal budget for fiscal year 2021-22 (FY22) in the National Assembly, revealing that the government has allocated Rs2,135 billion under the Public Sector Development Programme (PSDP) – an increase of 37 per cent from last year’s development allocations.
Hike in fuel price to be conditional
Addressing the post-budget press conference here, he said the government had no option but to hike the petroleum levy to Rs25 to Rs30 per liter for collecting over Rs600 billion in the next budget.
Subsidy for various sectors increased by 226.31pc to Rs682 bn
The government has increased the allocation in the head of subsidy by 226.31 percent for various sectors for the next budgetary year, to Rs682 billion from Rs209 billion allocated for the outgoing fiscal.
Funds allocated in Budget 2021-22: 100m people to be vaccinated against virus till June 2022
The federal government has proposed an allocation of Rs21.72 billion for the health sector under Public Sector Development Programme for fiscal year 2021-22 for 20 ongoing schemes and 26 new schemes.
Govt says no tax on data usage after Tarin’s speech
The budget for the upcoming fiscal year has proposed new duties on the internet and the telecom usage, not only inviting a backlash on social media but also creating confusion as the government denied the increase.
LSM posts sequential decline, gigantic growth in April
Large scale manufacturing (LSM) posted 6.99 percent month-on-month decline in April third time in a row with analysts terming the downtrend as seasonal.
17pc GST hike on crude oil import proposed
The federal government has proposed to raise the rate of GST on import of crude oil by 17 percent in a bid to accelerate the exploration activities to maximise indigenous production of crude oil and natural gas.
Auto sector wins relief in budget
Keeping in view that the prices of locally produced automobiles have soared past the affordability of a common man, the government announced a handful of initiatives for the automobile sector in budget 2021-22 aimed at curbing car prices.
$35bn export target set for FY22: Dawood
Advisor to the Prime Minister for Commerce and Investment Abdul Razaq Dawood Saturday said the government has set the export target of $35 billion for upcoming Fiscal Year 2021-22.
PECO sell-off plan shelved
Privatisation Commission (PC) has reportedly decided to shelve privatisation of Pakistan Engineering Company (PECO) plan until the entity is free from inherent issues and encumbrances, well-informed sources told Business Recorder.
Pakistani, Indian exporters agree to share Basmati rice ownership
Although long-time rivals India and Pakistan are already locked in a slew of land and sea disputes, exporters from both sides have agreed to share ownership of the region’s prized Basmati rice, the best solution to the issue to reach the EU markets.