In line with the trend in the preceding week, the stock market continued its descent on Monday and fell over 600 points owing to weak economic cues. Poor economic data dented investor sentiment and allowed bears to dominate trading. The State Bank of Pakistan (SBP) on Friday released current account figures, which showed a deficit of $632 million in May 2021.
KASB Market View
We believe the market will continue deciphering the impact of Pakistan maintaining its Gray-list status and potential downgrading to frontier markets, likely limiting the index’s upside potential. Moreover, economic numbers also painted a grim picture with the country’s CAD registering at USD 632mn, sharply diminishing the likelihood of a positive CA surplus in FY21. These figures may raise questions over the government achieving its high growth target without instigating external account imbalances.
Gas crisis deepens as supply to industries, CNG outlets halted
KARACHI/LAHORE: The gas crisis has deepened across the country as two state-owned companies on Monday announced complete closure of gas supply till July 5 to industries and CNG stations following a decline in gas availability, low pressure in the system and dry docking of LNG terminal
‘IMF’s new SDR allocation to boost Pakistan’s reserves by $2.8bln’
KARACHI: Pakistan is expected to get $2.8 billion from the International Monetary Fund (IMF) under a new allocation of special drawing rights for frontier markets and improving external position reduces downside risks to the country’s credit ratings, Fitch Ratings said on Monday.
$4.5bn deal signed with ITFC to finance oil, fertiliser import
ISLAMABAD: Pakistan and the International Islamic Trade Finance Corporation (ITFC) — a subsidiary of the Islamic Development Bank — on Monday signed a $4.5 billion new framework agreement to finance oil, LNG and fertiliser imports over the next three years (2021-23).
ECC takes decisions on sugar, cotton
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the tender for the import of 100,000 metric tons of sugar but constituted a committee on intervention price of cotton to increase the descending production of cotton in the next fiscal year to boost exports.
Digital transactions continue to show robust growth in Jan-Mar
KARACHI: Electronic banking channels processed 309.5 million transactions of value Rs22.5 trillion during the third quarter of the current fiscal year of 2020/21, which showed double-digit growth over the same period last year, the central bank’s data showed on Monday
SNGPL announces gas disconnection plan
ISLAMABAD: The Sui Northern Gas Pipeline Limited (SNGPL), on Monday, announced that it is disconnecting gas supply to LNG-based fertiliser plants, cement, CNG, and non-export industries from June 29 due to dry docking of Engro (EETPL) LNG Terminal-I. Gas load management plan will be applicable from June 29 to July 5, 2021. The regasification from EETPL (Terminal-1) will be disrupted during the period from 29th June 2021 to 5th July 2021 due to unplanned dry dock activities, the SNGPL said.
Nepra likely to reject IGCEP
ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is likely to reject Indicative Generation Capacity Expansion Plan (IGCEP), 2021-30, with the remarks that the plan has not been prepared on the basis of ground realities and consent of provinces
SSGC proposes hike in gas price for FY22
KARACHI: Sui Southern Gas Company (SSGC) has proposed an increase in gas price of Rs 109.78 per mmbtu to Rs 789.24 per mmbtu for the next financial year (FY21-22).