The stock market fell below 48,000 points in a roller coaster ride on Tuesday as investor sentiment weakened amid a lack of triggers. Furthermore, concerns over the Financial Action Task Force (FATF) report, scheduled to be released on June 25, kept market participants on the sidelines and trading remained lackluster.
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’. We expect currency depreciation to spark inflationary concerns that might dampen the investor’s sentiments.
THE RUPEE: Fall vs USD continues
On Tuesday, PKR continued its fall against USD in both interbank and open markets going below 158. However, at the time of writing of this report, dollar appeared to be stopping for a breather in global currency markets after taking off in wake of recent shift in interest rates policy by Federal Reserve last week. PKR also fell against Euro, AED and SR in Pakistan open market.
Cabinet allows pledging airports, roads for Sukuk bonds
The federal cabinet allowed the pledging of the country’s major airports and road network to raise around Rs1.8 trillion debt in the next fiscal year to finance the budget deficit, Information Minister Fawad Chaudhry said on Tuesday.
Balochistan to construct 49 new dams at cost of Rs 6.4 billion
Balochistan government would construct around 49 new dams with an estimated cost of Rs 6.451 billion during the financial year 2021-22 to irrigate thousands of acres land in the province. According to official source, these dams would reduce water scarcity and improve ground level water in respective areas.
Govt. borrowing expands by Rs.312 billion in a week
The government of Pakistan has acquired an additional debt of Rs.312.46 billion during the week ended June 11, 2021, which brings its total net borrowing for ongoing fiscal year 2021 to Rs.1280.05 billion. As of prior week, the government had borrowed a net sum of Rs.967.6 billion.
KPD maintenance; SSGC facing shortage of 170mmcfd gas
The current gas shortage situation in Sindh has arisen due to the temporary shutdown of Kunnar-Pasakhi Deep (KPD) Gas Field, one of the largest suppliers of natural gas, which is undergoing annual maintenance work.
Wholesale power market; CPPA-G putting finishing touches to rules
The Central Power Purchasing Agency-Guaranteed (CPPA-G) is giving final touches to rules for the establishment of a wholesale electricity market and proposed legislative changes in the current electricity mechanism, scheduled to be effective from April, 2022, well-informed sources told Business Recorder.
Construction sector; FBR rules out new tax amnesty scheme for contractors
The Federal Board of Revenue (FBR) has ruled out the possibility of any fresh tax amnesty scheme for contractors associated with the construction sector to boost the industry, pleading that the FBR could not sustain massive revenue loss of Rs200 billion every year.
Exports to EU market increased by 33pc after GSP Plus status: envoy
The European Union’s Ambassador to Pakistan Mrs Androulla Kaminara said that the Pakistan’s exports to the EU have increased by 33 percent of the total exports of the country, mostly in the textile sector, after getting of Generalised Scheme of Preferences, (GSP+) status.
Flour millers to observe strike against rise in taxes
The Pakistan Flour Mills Association (PFMA) has announced to observe two-day countrywide strike on June 24-25 to protest against increase in turn over tax on mills and levy of 17 percent GST on bran, a by-product of the industry.
GSP Plus status extension: SCCI assures EU envoy of cooperation to all conventions implementation
Sarhad Chamber of Commerce and Industry (SCCI) President, Sherbaz Bilour, has assured the chamber will fully cooperate to ensure the implementation of all relevant European Union (EU) conventions to reap the benefits of Generalized Scheme of Preferences — (GSP Plus status in an efficient manner as that has granted Pakistani products a duty-free access to the European market.