The market continues to remain in consolidation mode post the federal budget announcement, managing to hover above the 48k mark. The refinery sector performed on the announcement of several incentives including long-term tax holidays and duty protection. The construction sector also witnessed activity as the federal budget reinforced the government’s focus on growth via development spending.
KASB Market View
All focus will be on the upcoming FATF Plenary meeting, which is scheduled this week (Jun 21-25). Recent reports highlight that Pakistan is largely compliant with 26 out of the 27 action points, increasing the likelihood of the country emerging out of the ‘Grey List’. Onwards, we believe the federal government’s focus on growth will likely provide support to cyclical industry including cements, steels and automobiles.
Govt mulls tax relief to make cars up to 1,000cc affordable
Tax relief for the auto sector is expected to be enhanced for cars up to 1,000cc in the Finance Bill 2021, with the aim of promoting affordable cars and localization in the country.
World Bank approves $442mln for water, sanitation
The World Bank has approved $442 million in financing to support Pakistan in improving access to water and sanitation services for the most vulnerable rural communities in the Punjab.
PSX introduces 90-day deliverable futures contract from August
The Pakistan Stock Exchange (PSX) on Friday announced the introduction of a new futures eligibility criteria and the launch of 90-day maturity Deliverable Futures Contracts (DFC). The changes would come into effect from DFC August 2021 and would start from July 26.
PACRA upgrades BoP ratings
The Pakistan Credit Rating Agency (PACRA), after the lapse of five years, has upgraded the long-term entity rating of the Bank of Punjab to ‘AA+’, with the short-term highest rating of ‘A1+’, a statement said on Saturday.
CCoE rejects LNG terminal closure
A special meeting of the Cabinet Committee on Energy (CCoE) on Friday took a strong exception to and out rightly rejected proposed emergent withdrawal of Engro’s Liquefied Natural Gas (LNG) Terminal for dry-docking that could have almost stopped for a week its LNG supply to entire supply chain — from thousands of megawatts of power plants to hundreds of industrial units and transport sector.
Tax issues can cause urea price hike
Stakeholders of the fertiliser industry have said that they will be forced to increase prices if the budget for 2021-22 failed to address the longstanding issues pertaining to the sales tax regime, non-payment of subsidy and delay in release of sales tax refund.
Panther Tyres, Al-Ghazi sign pact
Panther Tyres has entered into a contract with Al-Ghazi Tractors Ltd for regular supply of tractor tyres which will have a positive impact on the annual revenue and consequently increase the bottom line of the company, said PSX filing on Friday.
FDI increases 63 percent YoY to $198.3mln in May
Pakistan’s foreign direct investment (FDI) increased 63 percent year-on-year to $198.3 million in May with major inflows going into the communications, trade and the power sectors, the central bank data showed on Friday.
Can-maker to sell 26pc stake through public offering
Pakistan Aluminum Beverage Cans (PABC) will raise at least Rs3.3 billion through sale of 26 per cent stake controlled by one of its major shareholders in an initial public offering (IPO). The book building will take place on June 22-23 followed by public subscription on June 29-30.
Value-added dairy products: FBR asked to reinstate salex tax of 10%
Federal Finance Minister Shaukat Tarin has directed the Federal Board of Revenue (FBR) chairman to ensure to reinstate the previous sales tax of 10 percent on value-added dairy products, and that the said changes were incorporated in the final budget to be passed by the Parliament.
Power generation increases 7pc to 115,862 GWh in Jul-May
Pakistan’s power generation rose around seven percent to 115,862 GWh in the first 11 months of the current fiscal year with share of regasified liquified natural gas (RLNG) plants showing growth, official data showed.