Daily news:12th May 2020

Good Morning

Home remittances sent by overseas Pakistanis posted a growth of 5.5 percent during the first 10 months of this fiscal year (FY20). The State Bank of Pakistan (SBP) will issue its monetary policy statement on Friday with expectation of further cut in the key policy rate. Pakistan has received draft Memorandum of Understanding (MoU) for signing debt relief from G20 countries for eight months (May 1 to December 31, 2020) period to the tune of $2 billion.

Market View: The KSE100 Index ended yesterday’s session up 16 points, at 33,283.79 points. Talks of further cuts in the interest rates are expected to have a positive impact on the index today.

Commodities:

Brent oil (USD/bbl): 29.68 (+0.17% D/D)
Crude oil (USD/bbl): 24.33 (+0.79% D/D)
Gold (USD/oz): 1,704.70 (+0.3946% D/D)

National News

Jul-Apr remittances post nominal growth YoY
Home remittances sent by overseas Pakistanis posted a growth of 5.5 percent during the first 10 months of this fiscal year (FY20).
https://epaper.brecorder.com/2020/05/12/1-page/836680-news.html

MPS on 15th: Further cut in key policy rate being anticipated
The State Bank of Pakistan (SBP) will issue its monetary policy statement on Friday with expectation of further cut in the key policy rate.https://epaper.brecorder.com/2020/05/12/1-page/836678-news.html

Debt relief of $2 bn: Pakistan receives draft MoU for signing from G20 countries
Pakistan has received draft Memorandum of Understanding (MoU) for signing debt relief from G20 countries for eight months (May 1 to December 31, 2020) period to the tune of $2 billion.
https://www.thenews.com.pk/print/657622-debt-relief-of-2-bn-pakistan-receives-draft-mou-for-signing-from-g20-countries

Envoys, Hafeez discuss debt rescheduling by G-20 countries
French and German ambassadors on Monday met with Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh, and discussed with the adviser, the details of the debt rescheduling offered by G-20 countries, and the need for any further loans.
https://epaper.brecorder.com/2020/05/12/3-page/836689-news.html

Diamer-Bhasha dam ready for construction, PM Imran told
Prime Minister Imran Khan was informed on Monday that all the prep work for the Diamer-Bhasha dam has been completed and the project was ready for construction.
https://www.dawn.com/news/1556374/diamer-bhasha-dam-ready-for-construction-pm-imran-told

Covid-19 lockdown dampens business optimism in Pakistan: D&B
The business optimism in Pakistan was on the decline during Q1 2020 compared with Q4 2019 even before the government had executed the lockdown restrictions to shutter the economy in an attempt to halt the spread of the Covid-19 pandemic.
https://epaper.brecorder.com/2020/05/12/13-page/836750-news.html

Kharif season: Paddy to be sown over 4.618m acres in Punjab
More than 4.618 million acres of land would be brought under paddy crop during Kharif season in various rice growing areas of the Punjab.
https://epaper.brecorder.com/2020/05/12/10-page/836745-news.html

Deposition of PML-N leaders before sugar commission: Price escalation created Rs107 bn windfall for sugar barons
The increase in sugar prices in the wake of decision to allow sugar export and subsidy created Rs107 billion in extra profits for sugar mill owners.
https://www.thenews.com.pk/print/657626-deposition-of-pml-n-leaders-before-sugar-commission-price-escalation-created-rs107-bn-windfall-for-sugar-barons

Zero-rated units: FBR to request DISCOs to continue concessionary tariff
The Federal Board of Revenue (FBR) will request power distribution companies to grant extension up to June 30, 2020 to zero-rated units of five export sectors for continuation of benefit of concessionary power tariff to the companies of erstwhile zero-rated sectors.
https://epaper.brecorder.com/2020/05/12/5-page/836703-news.html

Petroleum products: Import by PSO delayed by couple of days
The import of petroleum products by Pakistan State Oil (PSO) is delayed by couple of days as vessels in international market are unavailable due to COVID-19. However, Petroleum Division stated that sufficient stocks of oil are available with PSO.
https://epaper.brecorder.com/2020/05/12/5-page/836705-news.html

Oil refineries seek interim relief package
The country’s refineries have sought urgent interim relief package to avert financial collapse as their inventory loss in March and April 2020 recorded over Rs 31 billion and is expected to further worsen in May and June.
https://epaper.brecorder.com/2020/05/12/18-page/836794-news.html

Petroleum ministry seeks oil purchase at higher rates
In a risky move, the petroleum ministry is seeking purchase of oil at $8-15 per barrel higher than the current low price for hedging of about 20 per cent of its total oil imports and pass on the cost of this higher rate to consumers.
https://www.dawn.com/news/1556226/petroleum-ministry-seeks-oil-purchase-at-higher-rates

Drugs raw material: PPMA warns govt against any ban on import from India
The Pakistan Pharmaceutical Manufacturers’ Association (PPMA) has warned the federal government that any decision to discontinue import of raw material of medicines from India will weaken the country’s ability to fight the Covid-19.
https://epaper.brecorder.com/2020/05/12/13-page/836756-news.html

FPCCI urges adviser to secure waiver from demurrage, container detention charges
President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Anjum Nisar, in a video link meeting with the Adviser to Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh, urged him to use his good offices to secure a waiver from demurrage and container detention charges of those 20,000 containers which could not be cleared within the specified time period due to the lockdown in the country.
https://epaper.brecorder.com/2020/05/12/13-page/836751-news.html

Supplies to unregistered persons: Reduction in rate of further ST under study
The government is planning to reduce the rate of further sales tax from existing three percent to two or one percent on supplies made to unregistered persons in the coming budget (2010-2021).
https://epaper.brecorder.com/2020/05/12/18-page/836791-news.html

Armed forces seek 20pc increase in salaries
Armed forces have sought 20 per cent increase in salaries for the financial year 2020-2021 that will cost Rs63.67 billion.
https://epaper.brecorder.com/2020/05/12/18-page/836792-news.html

Ferozsons in talks to produce Remdesivir
Ferozsons Laboratories announced on Monday that its subsidiary BF Biosciences Ltd (BFBL) was in negotiations to enter into a non-exclusive license agreement with Gilead Sciences Inc for the manufacture and sale of Remdesivir to supply Pakistan and 126 other countries.
https://www.dawn.com/news/1556494/ferozsons-in-talks-to-produce-remdesivir

International News
Saudi triples VAT, suspends handouts in virus-led austerity driveSaudi Arabia’s finance minister on Monday said the kingdom will triple its Value Added Tax (VAT) and halt monthly handout payments to citizens in new austerity measures amid record low oil prices and a coronavirus-led economic slump.
https://www.dawn.com/news/1556279/saudi-triples-vat-suspends-handouts-in-virus-led-austerity-drive 

Oil prices rise as Saudi Arabia pledges further supply cut
Oil futures climbed in early trade on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain the glut in the global market that has grown as the coronavirus pandemic crushed fuel demand.
https://www.cnbc.com/2020/05/12/oil-markets-crude-output-coronavirus-in-focus.html 

Hong Kong drops nearly 2% as China’s inflation data misses expectationsStocks in Asia Pacific were lower in Tuesday morning trade, as Chinese inflation data for April missed expectations.
https://www.cnbc.com/2020/05/12/asia-markets-china-inflation-data-coronavirus-currencies-in-focus.html
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