Daily news:10th June 2020

Good Morning

The federal government is planning to set Rs4.95 trillion as revenue collection target for the Federal Board of Revenue (FBR) for 2020-2021. Sources told Business Recorder that the revenue collection target of the FBR was projected at Rs5.101 trillion for 2020-2021 against pre-Covid19 projection of Rs6.138 trillion for the next fiscal year. While projecting Pakistan’s GDP growth contracting second consecutive year in the next fiscal year 2020-21 and touching negative 0.2 percent, the World Bank has pointed out that the benefits of decreased oil prices might be offset by falling remittances inflows in Pakistan and India. The National Economic Council (NEC) is all set to meet under chairmanship of Prime Minister Imran Khan on Wednesday (today) for approving national development outlay of Rs1,324 billion including Rs70 billion for Covid-19 response for upcoming budget 2020-21.

Market View: The KSE100 gained 54.03 points in the last trading session, to close at 34,803.6 points. We expect the market to remain range bound in the upcoming session. Going forward, measures taken by the Govt. in the upcoming budget will determine the direction of the market. 

Commodities:

Brent oil (USD/bbl): 40.58 (+1.46% D/D)

WTI Crude oil (USD/bbl): 38.21 (-1.87% D/D)

Gold (USD/oz): 1,723.8 (+0.10% D/D)

National News

Rs 4.95 trillion revenue target being set for FY21

ISLAMABAD: The federal government is planning to set Rs4.95 trillion as revenue collection target for the Federal Board of Revenue (FBR) for 2020-2021. Sources told Business Recorder that the revenue collection target of the FBR was projected at Rs5.101 trillion for 2020-2021 against pre-Covid19 projection of Rs6.138 trillion for the next fiscal year.

https://www.brecorder.com/news/1003044/rs-495-trillion-revenue-target-being-set-for-fy21

World Bank predicts Pakistan DGP growth at -0.2pc next fiscal

ISLAMABAD: While projecting Pakistan’s GDP growth contracting second consecutive year in the next fiscal year 2020-21 and touching negative 0.2 percent, the World Bank has pointed out that the benefits of decreased oil prices might be offset by falling remittances inflows in Pakistan and India.

https://www.thenews.com.pk/print/670543-world-bank-predicts-pakistan-dgp-growth-at-0-2pc-next-fiscal

Export of PPEs: notification issued

ISLAMABAD: Ministry of Commerce on Tuesday issued a notification, allowing export of Personal Protection Equipments (PPEs), sans Tyvek suits, N95 masks and surgical masks. The notification was issued after the cabinet approved it. Commerce Division noted that ban was imposed on the export of various PPE items on the recommendation of Ministry of National Health Services, Regulations & Coordination (MNHSR&C) vide this Ministry’s SRO 239(i)/2020 of March 24, 2020.

https://www.brecorder.com/news/1003047/export-of-ppes-notification-issued

‘Artificial’ shortage of petrol: Cabinet orders ‘maximum’ punitive action

ISLAMABAD: The federal cabinet on Tuesday directed the Petroleum Division and the Ogra to take action against artificial shortage of petrol and ensure regular supplies within 48-72 hours.

https://www.brecorder.com/news/1003050/artificial-shortage-of-petrol-cabinet-orders-maximum-punitive-action

PSDP 2020-21: Government to allocate Rs 177.5 billion to water sector, hydropower projects

ISLAMABAD: The federal government has reportedly decided to allocate Rs 177.5 billion to water sector and hydropower projects in Public Sector Development Program (PSDP) 2020-21 of which Rs 135 billion will be foreign aid, well informed sources in Ministry of Planning, Development and Special Initiatives told Business Recorder.

https://www.brecorder.com/news/1003043/psdp-2020-21-government-to-allocate-rs-1775-billion-to-water-sector-hydropower-projects

NEC to approve 2.1 percent growth target today

ISLAMABAD: The National Economic Council (NEC) meeting would approve on Wednesday (today) a growth target of 2.1 percent for the next fiscal year contingent to favourable weather conditions and post-COVID economic recovery, managing current account deficit as well as consistency in economic policies.

https://www.brecorder.com/news/1003042/nec-to-approve-21-percent-growth-target-today

Enhancement of sanction powers: NEC executive committee to give approval

ISLAMABAD: The Executive Committee of National Economic Council (NEC) is to approve enhancement of sanction powers of Executive Committee of National Economic Council and Central Development Working Party (CDWP) for approval of federal projects. https://www.brecorder.com/news/1003041/enhancement-of-sanction-powers-nec-executive-committee-to-give-approval

Government expedites process for approving unapproved projects by CDWP

ISLAMABAD: The federal government has expedited its process for approving the unapproved development projects by the Central Development Working Party (CDWP) to include in the coming Budget 2020-2021, it has been learnt.

https://www.brecorder.com/news/1003010/government-expedites-process-for-approving-unapproved-projects-by-cdwp

Issuance of PES-II worth Rs200bn

KARACHI: Meezan Bank, Pakistan’s first and largest Islamic bank has played a leading role in successfully concluding the issuance of Pakistan Energy Sukuk (PES) II worth approximately Rs 200 billion by Power Holding Limited (PHL), a public sector entity fully owned by the Ministry of Energy and Government of Pakistan. The milestone transaction, powered by the key Islamic finance players of the country was concluded successfully in May 2020.

https://epaper.brecorder.com/2020/06/10/5-page/840048-news.html

Budget 2020-21: NEC okays Rs1,324 bn national development outlay today

ISLAMABAD: The National Economic Council (NEC) is all set to meet under chairmanship of Prime Minister Imran Khan on Wednesday (today) for approving national development outlay of Rs1,324 billion including Rs70 billion for Covid-19 response for upcoming budget 2020-21.

https://www.thenews.com.pk/print/670539-budget-2020-21-nec-okays-rs1-324-bn-national-development-outlay-today

SSGC fails to reduce UFG losses

ISLAMABAD: Ad hocism has marred the performance of Sui Southern Gas Company (SSGC), which has been operating without a permanent managing director since 2016.

The current board of directors has once again published advertisements for hiring a new managing director.

https://tribune.com.pk/story/2239311/2-ssgc-fails-reduce-ufg-losses/

Export of auto parts set to begin

KARACHI: A new era has begun for the automobile industry in Pakistan as AuVitronics Limited, a local company, is gearing up to export absorber FR bumpers to Toyota Motor Vietnam, thus joining the league of global auto parts suppliers for Toyota’s international supply chain.

https://tribune.com.pk/story/2239301/2-export-auto-parts-set-begin/

Dolmen City Reit Partially Waives The Rentals Of Dolmen Mall Clifton And Harbour Front

The management of Dolmen City Reit has once again decided to waive the rentals of the tenants of the “Dolmen Mall Clifton” and the “Harbour Front”,  after taking into consideration the challenging situation prevailed across the country due to the spread of COVID-19, which has resulted in limited trading hours.

https://www.mg-link.net/news/35144/Dolmen-City-Reit-partially-waives-the-rentals-of-Dolmen-Mall-Clifton-and-Harbour-Front

Corona to peak in July, August: PM Imran Khan says people not taking pandemic seriously

ISLAMABAD: Prime Minister Imran Khan on Monday warned that the country was yet to experience the peak of coronavirus cases in late July or early August and urged the nation to strictly follow the standard operating procedures (SOPs).

https://www.thenews.com.pk/print/669787-corona-to-peak-in-july-august-pm-says-people-not-taking-pandemic-seriously

International News

Oil drops after U.S. inventory build renews oversupply concerns

Oil prices fell on Wednesday as an industry report showed a rise in crude and fuel inventories in the United States, renewing concerns about oversupply and slumping fuel demand in the world’s largest crude consumer.

https://www.cnbc.com/2020/06/10/oil-markets-crude-supply-us-inventories-in-focus.html

Gold rises over 1% as caution sets in ahead of Fed meet

Gold jumped more than 1% on Tuesday as risk appetite took a back seat with cautious investors awaiting clarity on the state of the economy and further stimulus from the U.S. Federal Reserve’s policy meeting.

https://www.cnbc.com/2020/06/09/gold-markets-us-dollar-federal-reserve-coronavirus-in-focus.html

Asia Pacific stocks edge higher; China’s inflation data misses expectations

tocks in Asia Pacific mostly edged higher in Wednesday morning trade, as Chinese inflation data for May missed expectations.In Japan, the Nikkei 225 traded fractionally higher while the Topix index hovered just above the flatline. South Korea’s Kospi also advanced 0.37%.

https://www.cnbc.com/2020/06/10/asia-markets-china-inflation-data-the-fed-coronavirus-in-focus.html
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