Daily News:14th April 2020

Good Morning

The State Bank of Pakistan (SBP) on Monday announced the auction for three-year Government of Pakistan (GoP) Ijara Sukuk to raise some Rs 225 billion in the next three months for the federal government. The World Bank has forecast that if the novel coronavirus (COVID-19) lasts longer than expected, Pakistan’s exports could plunge by 19.7pc in the current fiscal year (FY20) as compared to the previous one. Economic experts have suggested the government to try and convince international donors to reschedule loans for Pakistan so that the country could avert an ominous ‘recession’ as predicted by the World Bank in its latest report.

Market View: The KSE100 Index lost 1,000.22 points on Monday, ending the session at 31,032.99 points. Crude oil and Asian markets trading in the green this morning can lend support to the index during trading today. 

Commodities:

Brent oil (USD/bbl): 32.25 (+1.61% D/D)
Crude oil (USD/bbl): 22.69 (+1.25% D/D)
Gold (USD/oz): 1,777.70 (+0.9254% D/D)

National News

Sukuk auction announced to finance budget deficit

The State Bank of Pakistan (SBP) on Monday announced the auction for three-year Government of Pakistan (GoP) Ijara Sukuk to raise some Rs 225 billion in the next three months for the federal government.

https://epaper.brecorder.com/2020/04/14/1-page/833480-news.html

Pakistan’s exports likely to drop by 19.7pc in FY20: WB

The World Bank has forecast that if the novel coronavirus (COVID-19) lasts longer than expected, Pakistan’s exports could plunge by 19.7pc in the current fiscal year (FY20) as compared to the previous one.

‘Looming recession’: Experts suggest govt to push for rescheduling of foreign loans

Economic experts have suggested the government to try and convince international donors to reschedule loans for Pakistan so that the country could avert an ominous ‘recession’ as predicted by the World Bank in its latest report.

Utility Bills: Centre, Sindh ready to devise mechanism for payment

Federal Government and Sindh Government are said to be ready to devise a joint mechanism to stagger payment of due utility bills aimed at helping consumers hit by lockdown due to the outbreak of Covid-19.

https://epaper.brecorder.com/2020/04/14/1-page/833485-news.html

Meetings on 15th, 16th: Ways to reduce power tariff to be explored

Power Division has convened meetings of public sector Independent Power Producers (IPPs) and Generation Companies (Gencos) and private sector IPPs on April 15 and April 16 in Islamabad aimed at exploring different ways to reduce tariff.

https://epaper.brecorder.com/2020/04/14/1-page/833475-news.html

Independent power producers summoned for crucial talks

The government on Monday made first formal contact with the managements of all power plants, particularly Independent Power Producers (IPPs) for a structured dialogue on possible options to reduce immediate liabilities amid constrained electricity demand.

https://www.dawn.com/news/1549019/independent-power-producers-summoned-for-crucial-talks

ECC sets aside 200,000 tonnes of wheat for utility stores

The Economic Coordination Committee (ECC) of the cabinet on Monday approved allocation of additional 200,000 tonnes of wheat from public sector stocks for supply to the Utility Stores Corporation (USC) at a cost of Rs8.7 billion.

https://www.dawn.com/news/1549052/ecc-sets-aside-200000-tonnes-of-wheat-for-utility-stores

IMF acknowledges Pakistan’s response to pandemic

The International Monetary Fund (IMF) on Monday noted the rapid pace at which Covid-19 has been spreading in Pakistan and acknowledged the Rs1.2 trillion relief package announced by the government.

https://www.dawn.com/news/1549018/imf-acknowledges-pakistans-response-to-pandemic

IMF approves debt relief for 25 poor countries

The International Monetary Fund on Monday announced immediate debt relief for 25 poor countries to help them free up funds to fight the coronavirus pandemic.

https://www.thenews.com.pk/latest/644308-imf-approves-debt-relief-for-25-poor-countries

Broad money jumps by 8.6pc

While trade and industry is badly hit amid the ongoing lockdown, monetary expansion witnessed a sharp increase of 8.59 per cent over end of FY19 level, suggesting that liquidity is being pumped mostly for non-productive areas.

https://www.dawn.com/news/1549014/broad-money-jumps-by-86pc

BankIslami launches ‘Ehad Sukuk’

BankIslami Pakistan Limited has announced launching of Pakistan’s ‘First’ Initial Public Offering (IPO) of Additional Tier 1 Modaraba Sukuk under the brand name of “BankIslami Ehad Sukuk,” which will be listed and traded on Pakistan Stock Exchange (PSX).

https://epaper.brecorder.com/2020/04/14/7-page/833541-news.html

Borrowing by Private Sector increases by Rs 7.39 billion in a week

The non-government sector has borrowed another net sum of Rs.7.39 billion during the week ended April 03, 2020, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.316.28 billion. The net borrowing as of prior week was recorded at Rs.308.89 billion.

https://mettisglobal.news/borrowing-by-private-sector-increases-by-rs-7-39-billion-in-a-week

Govt likely to rationalise taxes on telecom sector

The government is expected to rationalise taxes on telecom sector in the coming budget (2020-2021) and review budget proposals of the Pakistan Telecom Authority (PTA) to harmonize service sales tax (SST) 19.5 percent and the federal excise duty (FED) 17 percent on telecom services into one lower rate of the SST/FED for all the provinces and the federal capital.

https://epaper.brecorder.com/2020/04/14/3-page/833502-news.html

International News

Oil gains as US shale production set to fall sharply

Oil prices rose on Tuesday after a U.S. agency said shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers.

https://www.cnbc.com/2020/04/14/oil-markets-coronavirus-pandemic-us-shale-in-focus.html

Asia stocks edge higher; China’s yuan-denominated exports fall in March

Stocks in Asia edged higher in Tuesday morning trade following the release of Chinese trade data for March.https://www.cnbc.com/2020/04/14/asia-markets-china-march-trade-data-coronavirus-currencies-in-focus.html

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