Daily news: 11th-June-2020

Good Morning

The Asian Development Bank (ADB) has approved a $500 million loan to help the Government of Pakistan deliver social protection programmes to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights the coronavirus pandemic. Pakistan became the latest country to secure a moratorium on debt repayments from the Paris Club, in an effort to ease the economic impact of the coronavirus crisis. The Governor of the State Bank of Pakistan (SBP), Reza Baqir, has said that so far a total of 1,320 companies have availed SBP’s refinance scheme, and a sum of Rs96 billion has been disbursed to the applicants during April, May and June 2020. The Economic Coordination Committee (ECC) on Wednesday approved Electric Vehicle (EV) policy for 2-3 wheelers and heavy commercial vehicles.  

Market View: The KSE100 Index gained 261.48 points during Monday’s trading session. We expect the market to remain stable and range bound in the upcoming session.

Commodities:

Brent oil (USD/bbl): 40.67 (-2.54% D/D)

Crude oil (USD/bbl): 38.46 (-2.88% D/D)

Gold (USD/oz): 1,742.50 (+1.27% D/D)

National News

ADB approves $500m loan for social protection plans

ISLAMABAD: The Asian Development Bank (ADB) has approved a $500 million loan to help the Government of Pakistan deliver social protection programmes to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights the coronavirus pandemic.

https://www.brecorder.com/news/1003357/adb-approves-500m-loan-for-social-protection-plans

Pakistan among latest countries to secure debt moratorium

PARIS: Ethiopia, Chad, DR Congo and Pakistan became the latest countries to secure a moratorium on debt repayments from the Paris Club, the group of creditor nations said, in an effort to ease the economic impact of the coronavirus crisis. In mid-April, the G20 and the Paris Club agreed to waive most debt payments for the world’s poorest countries in 2020, as sweeping virus lockdowns upturned the global economy.

https://www.brecorder.com/news/1003356/pakistan-among-latest-countries-to-secure-debt-moratorium

Rs 96 billion disbursed under refinance scheme: SBP governor

KARACHI: The Governor of the State Bank of Pakistan (SBP), Reza Baqir, has said that so far a total of 1,320 companies have availed SBP’s refinance scheme, and a sum of Rs96 billion has been disbursed to the applicants during April, May and June 2020 under the said scheme which was launched to limit the adverse impact of COVID-19 on businesses and employment in terms of payments of wages/salaries to workers/employees.

https://www.brecorder.com/news/1003354/rs-96-billion-disbursed-under-refinance-scheme-sbp-governor

ECC approves EV policy for motorcycles, rickshaws, heavy commercial vehicles

ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved Electric Vehicle (EV) policy for 2-3 wheelers and heavy commercial vehicles.

ECC told 6.25m tons wheat against target of 8.25m tons procured

ISLAMABAD: The Economic Coordination Committee (ECC) was informed on Wednesday that Passco and provincial food departments so far procured 6.25 million tons wheat or 80 percent against the assigned target of 8.25 million tons for the current year.

https://www.thenews.com.pk/print/671082-ecc-told-6-25m-tons-wheat-against-target-of-8-25m-tons-procured

ECC approves Rs480m risk allowance for healthcare workers

ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved Rs480.556 million to pay risk allowance to all healthcare workers performing duties related to Covid-19.

Pakistan meets major FATF conditions: Shah

ISLAMABAD: Pakistan has met most of the conditions set by the Financial Action Task Force (FATF) – an intergovernmental organisation that aims at making policies to combat money laundering and terrorism financing, Minister for Interior Ijaz Shah told Prime Minister Imran Khan in a meeting on Wednesday.

https://tribune.com.pk/story/2240041/1-pakistan-meets-major-fatf-conditions-shah/

Poultry sector demands SBP’s intervention

LAHORE: Poultry sector stakeholders have sought intervention of the State Bank of Pakistan (SBP) against banks which, they say, are refusing loans under the SBP Refinance Scheme, citing weak record of companies.

https://tribune.com.pk/story/2239319/2-poultry-sector-demands-sbps-intervention/

FBR seeks WHT on foreign currency

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed the introduction of 0.6% withholding tax (WHT) on the purchase of foreign currency and has sought to squeeze various expense allowances that industrialists get before computing their taxable income.

https://tribune.com.pk/story/2239313/2-fbr-seeks-wht-foreign-currency/

State Bank proposes abolishing WHT on cash withdrawal

ISLAMABAD: The State Bank of Pakistan (SBP) has proposed to abolish withholding tax (WHT) on cash withdrawal from banks in the upcoming budget. The central bank also asks for doing away with Super Tax on the banking sector.

https://www.thenews.com.pk/print/670756-state-bank-proposes-abolishing-wht-on-cash-withdrawal

Pakistan cannot afford a lockdown, says SBP Governor Reza Baqir

KARACHI: Lockdowns are a luxury of the rich, and countries like Pakistan cannot afford them, according to the State Bank of Pakistan (SBP) Governor Reza Baqir.  The central bank governor also said that Pakistan is the ‘poster child’ for havoc caused by the Covid-19 pandemic.

‘Upward trajectory of economy severely affected by Covid-19,’ says govt ahead of annual budget

The National Economic Council (NEC) on Wednesday noted that the “upward trajectory of the economy made possible after huge efforts of the present government” had been severely affected by the Covid-19 pandemic.

https://www.dawn.com/news/1562636/upward-trajectory-of-economy-severely-affected-by-covid-19-says-govt-ahead-of-annual-budget

Auto manufacturers express reservations on import of used cars

ISLAMABAD: While importers of used cars in the country are reportedly lobbying for relaxation in import policy, local vehicle manufacturers and assemblers have expressed serious concerns regarding the proposed relaxation.

NAB to probe Rs29bn subsidy on sugar export, says Shahzad

ISLAMABAD: The government has initiated “a series of action” against “powerful” sugar mill owners by sending the first case against them to the National Accountability Bureau (NAB) asking it to probe the grant of Rs29 billion subsidy to them during the last five years.

https://www.dawn.com/news/1562735/nab-to-probe-rs29bn-subsidy-on-sugar-export-says-shahzad

FCCI chief seeks special relief package amid prolonged lockdown

FAISALABAD: Traders are facing multiple problems due to prolonged period of lockdown due to corona pandemic therefore the government must announce a special relief package particularly for the shopkeepers having rented premises, said Rana Muhammad Sikandar Azam Khan, President, Faisalabad Chamber of Commerce & Industry (FCCI).

https://www.brecorder.com/news/1003262/fcci-chief-seeks-special-relief-package-amid-prolonged-lockdown

Stability in flour prices: PFMA, Food Dept agree to work together

LAHORE: The Pakistan Flour Mills Association (PFMA) and the Punjab Food Department representatives discussed the prevailing prices of wheat and flour and agreed to work together for bringing stability in flour prices in the market.

https://www.brecorder.com/news/1003264/stability-in-flour-prices-pfma-food-dept-agree-to-work-together

International News

Virus to slice at least 6 percent off world economy: OECD

PARIS: The global economy will contract at least six percent this year, with an unprecedented loss of income and “extraordinary uncertainty” caused by measures to contain the coronavirus outbreak taking a heavy toll, the OECD said Wednesday.

https://www.brecorder.com/news/1003301/virus-to-slice-at-least-6-percent-off-world-economy-oecd

Fed sees interest rates staying near zero through 2022, GDP bouncing to 5% next year

The Federal Reserve kept interest rates near zero and indicated that’s where they’ll stay as the economy recovers from the coronavirus pandemic.

https://www.cnbc.com/2020/06/10/fed-meeting-decision-interest-rates.html

Oil prices slide on concerns about patchy demand recovery, record U.S. stocks

Oil prices fell in early trade on Thursday on worries about slow demand growth with coronavirus cases rising, U.S. crude stockpiles hitting an all-time high and the U.S. Federal Reserve projecting recovery from the pandemic would take years.

https://www.cnbc.com/2020/06/11/oil-markets-coronavirus-us-inventories-n-focus.html

Elevated extreme poverty to persist through 2021: WB

WASHINGTON: Global economic growth could rebound next year – but the number of people living in extreme poverty is expected to remain unchanged after a huge surge this year due to the coronavirus pandemic, the World Bank warned Tuesday.

https://www.brecorder.com/news/1003302/elevated-extreme-poverty-to-persist-through-2021-wb

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