The Pakistan Stock Exchange extended the bearish spell for a third day on Thursday and the KSE-100 index slid 323 points. Market participants feared a spike in input costs of industries following persistent depreciation of the rupee against the US dollar. The exploration and production sector received some respite from the uptick in global oil prices.
KASB Market View
Rising oil prices may sustain the recent exuberance witnessed in the E&Ps sector, particularly OGDC, its side-effect of increasing Pakistan’s import bill may cause apprehension amongst investors over its impact on the external accounts. All focus will be on the upcoming FATF Plenary meeting, which is scheduled on Jun 21-25. Additionally, we believe the federal government’s focus on growth will likely provide support to cyclical industry including cements, steels and automobiles.
2021-22: WB projects 2pc GDP growth
The World Bank has projected Pakistan’s GDP growth rate at 2 percent for 2021-22, saying that poverty is projected to remain high. Pakistan’s output growth is expected to recover gradually over the medium-term, averaging 2.2 percent over fiscal year 2021-23, mostly due to contributions from private consumption.
Pakistan’s Forex Reserves Increase by USD 8.60 Million
Pakistan’s Forex Reserves increased by USD 8.60 Million or 0.04% and the total liquid foreign reserves held by the country stood at USD 23,586.50 Million on Jun 11, 2021. According to data published by the State Bank of Pakistan (SBP) its reserves increased by USD 2.40 Million.
Action against offshore assets; Panel approves proposal against time-limit restriction
The Senate Standing Committee on Finance has approved a proposal for allowing the Federal Board of Revenue (FBR) to remove time limitation for taking action against owners of offshore income and assets abroad.
Long-awaited Refinery Policy steps in to foster refineries
Government has offered a set of incentives to the refineries operating in Pakistan in a recently announced federal budget for FY22, to push their growth momentum towards the upward trail.
Industries; Nepra approves extension in concessional tariff till 30th
The National Electric Power Regulatory Authority (Nepra) has approved extension in concessional tariff of Rs12.96 paisa per unit for industry at peak hours across the country till June 30, 2021 on the request of Power Division and Karachi Electric.
ST reduction, FED removal on cars below 1050cc vehicles recommended: PIDE
Acknowledging the budget announcement of a reduction in sales tax and federal excise duty on cars below 850cc, the Pakistan Institute of Development Economics (PIDE) has recommended the government to extend the same benefits for cars below 1050cc in order to help the general public.
Export of pharmaceutical products; Duty drawback increased
The Federal Board of Revenue (FBR) has increased duty drawback on the export of pharmaceutical products including medicines for human and animals (tablets or capsules); injections/ injectables, intravenous solutions and liquids/powder/syrups/drops/granules in bottles/sachets from June 7, 2021.
Steel units in Fata/Pata; Proposed withdrawal of 17pc FED to cost kitty Rs50bn/annum: PALSP
All major steel industry associations Thursday said that the proposed measure of withdrawal of 17 percent Federal Excise Duty (FED) on industrial units located in the tribal areas would be a total disaster for the documented industry, resulting in closure of units with negative revenue impact of Rs50 billion per annum.