Daily news: 06th May 2020

Good Morning

The country’s exports on month-on-month (MoM) basis have witnessed a 47.24 percent decline, from $1.814 billion to $957 million, during April 2020 against March 2020, the Pakistan Bureau of Statistic (PBS) said. Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood has said that the ministry is aggressively working on making changes in the tariff structure for the upcoming budget to facilitate local production in a bid to decrease the import bill. The Economic Coordination Committee (ECC) of the Cabinet will meet on Wednesday (today) to consider a heavy agenda including more than Rs1.1 trillion worth of restructuring of the power sector debt.

Market View: The KSE100 Index was up by a mere 76.11  points yesterday, ending the session at 33,992.75 points. The discussion around ending of the lockdown could support the market today, however, ceasefire violations at the LoC can lead to some weakness.

Commodities:

Brent oil (USD/bbl): 30.88 (-0.29% D/D)

Crude oil (USD/bbl): 24.40 (-0.57% D/D)

Gold (USD/oz): 1,710.20 (-0.0234% D/D)

National News

April exports decline 47.24pc on MoM

The country’s exports on month-on-month (MoM) basis have witnessed a 47.24 percent decline, from $1.814 billion to $957 million, during April 2020 against March 2020, the Pakistan Bureau of Statistic (PBS) said.

https://epaper.brecorder.com/2020/05/06/1-page/836005-news.html

Govt ‘tweaking’ tariff structure to boost local production

Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood has said that the ministry is aggressively working on making changes in the tariff structure for the upcoming budget to facilitate local production in a bid to decrease the import bill.

https://tribune.com.pk/story/2215079/1-govt-tweaking-tariff-structure-boost-local-production/

Reduction in CGT rates for two years under study

Keeping in view current stock market situation, the Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR) are working on a key budget proposal for reducing capital gains tax (CGT) rates for two years on disposal of listed securities in budget (2020-21).

https://epaper.brecorder.com/2020/05/06/1-page/836004-news.html

Punjab govt to purchase 4.5m MT of wheat

Provincial Minister for Special Education Chaudhry Muhammad Akhlaq has said that government will purchase 45 lakh metric ton of wheat during current year costing Rs. 148 billion.

https://epaper.brecorder.com/2020/05/06/12-page/836085-news.html

Rs. 200 BN Sukuk: Book building to begin on 15th

The book building of Rs 200 billion Sukuk meant to partially clear energy sector circular debt will commence from May 15, 2020, a senior official of Power Division told Business Recorder. The book building, which was scheduled for May 4, 2020, has been delayed as Board of Directors (BoD) of two power Distribution Companies (Discos) Hesco and Sepco could not meet to accord approval to Sukuk due to Coronavirus outbreak in the country. “The Board is expected to accord its approval within a few days after which a go-ahead signal will be given to Pakistan Stock Exchange,” the official added.

https://epaper.brecorder.com/2020/05/06/1-page/836003-news.html

ECC takes up power sector debt restructuring today

The Economic Coordination Commi­t­tee (ECC) of the Cabinet will meet on Wednesday (today) to consider a heavy agenda including more than Rs1.1 trillion worth of restructuring of the power sector debt.

https://www.dawn.com/news/1554910/ecc-takes-up-power-sector-debt-restructuring-today

ECC to approve conversion of Rs136.5bn PHPL debts into public debt today

The Economic Coordination Committee (ECC) of the Cabinet which is scheduled to meet Wednesday (May 6) will approve conversion of Rs 136.5 billion debts of Power Holding Company Limited (PHPL) into public debt as per agreement with World Bank, sources in the Finance Division told Business Recorder.

https://epaper.brecorder.com/2020/05/06/1-page/835993-news.html

Sales of OMCs down by 35pc YoY

The sales of Oil Marketing Companies (OMCs) for the month of April 2020 stood at 1.07 million tons, down by 35 percent on year-on-year basis as compared to 1.65 million tons in the same month in 2019.

https://epaper.brecorder.com/2020/05/06/16-page/836121-news.html

HSD shipments: Govt likely to take step to avoid default

Finance Division is likely to transfer Rs 11.7 billion in NBP account to remit to Kuwait to avoid international default, well-informed sources in Petroleum Division told Business Recorder.

https://epaper.brecorder.com/2020/05/06/1-page/835992-news.html

OGDC stops search for shale oil, gas reserves

Mystery shrouds the exploration of shale oil and gas reserves in the country as drilling has been suspended by Oil and Gas Development Company (OGDC).

https://tribune.com.pk/story/2214954/2-ogdc-stops-search-shale-oil-gas-reserves/

Honda hikes car prices by up to Rs120,000

Honda Atlas Cars Pakistan has hiked prices of its vehicle in the range of Rs60,000-120,000 as costs rise amid a lockdown in the country and an economy reeling from impact of the Covid-19 pandemic.

https://tribune.com.pk/story/2214949/2-honda-hikes-car-prices-rs120000/

Textile sector seeks zero-rated facility

Textile exporters – who earned 60% of total export earnings in Pakistan – have proposed to the government to restore zero-rated sales tax regime for the five major export-oriented sectors – textile, carpet, leather, sports and surgical goods – in the budget for 2020-21.

https://tribune.com.pk/story/2214957/2-textile-sector-seeks-zero-rated-facility/

Decision on lockdown today: PM Imran Khan wants curbs eased

The cabinet Tuesday deliberated on a proposal about easing lockdown and restrictions across country from May 9.

https://www.thenews.com.pk/print/654682-decision-on-lockdown-today-imran-wants-curbs-eased

DG ISPR warns of worsening situation amid LoC violations

Director General ISPR Major General Babar Iftikhar has warned that India’s unchecked violations on the Line of Control are worsening the situation in region.

https://www.brecorder.com/2020/05/06/594748/dg-ispr-warns-of-worsening-situation-amid-loc-violations/

ADB to provide Pakistan $305m to fight pandemic

The Asian Development Bank (ADB) will provide $305 million to Pakistan to deal with the coronavirus pandemic in the country.

FBR may relax CNIC condition

The Federal Board of Revenue (FBR) may propose relaxation in the Computerised National Identity Card (CNIC) condition for goods purchase worth Rs50,000 in the next budget as Pakistan’s largest business chamber says the government’s failure to implement the condition has created doubts about its abilities.

https://tribune.com.pk/story/2214952/2-fbr-may-relax-cnic-condition/

International News

South Korea stocks up 1%; oil prices pare gains following surge

Stocks in Asia Pacific were mixed in Wednesday morning trade as oil prices retraced some of their overnight gains.

https://www.cnbc.com/2020/05/06/asia-markets-coronavirus-oil-currencies-in-focus.html

Oil prices fall as rising U.S. inventories reassert supply concerns

Oil prices fell on Wednesday, ending a multi-day streak of gains, as investors focused on oversupply risks after U.S. crude inventories rose more than expected amid a slump in demand caused by restrictions to halt the coronavirus spread.

https://www.cnbc.com/2020/05/06/oil-markets-us-crude-inventories-in-focus.html

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Categorised as News

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