Daily News: 23th April 2020

Good Morning

Pakistan Wednesday received inflows amounting to $ 1.39 billion from the International Monetary Fund (IMF) under the Rapid Financing Instrument to address the economic impact of the COVID-19 shock. Following reduction in key policy rate, margin on all short-term government papers declined up to 250 basis points (bps) in the auction held Wednesday. The World Bank has projected 23 percent decline in remittances for Pakistan, totaling about $17 billion in 2020, compared with $22.5 billion in 2019, due to the economic crisis induced by the Covid-19 pandemic, and shutdown as well as decline in oil prices.

Market View: The KSE100 Index gained 41.40 points yesterday, ending the session at 32,464.23 points. Relief from the IMF, lower MTB yields, and strength in the Asian and Crude oil markets all point towards strength in the market today. 

Commodities:

Brent oil (USD/bbl): 21.07 (+3.44% D/D)
Crude oil (USD/bbl): 14.51 (+5.30% D/D)
Gold (USD/oz): 1,734.20 (-0.2359% D/D)

National News

IMF gives $1.39bn under RFI

Pakistan Wednesday received inflows amounting to $ 1.39 billion from the International Monetary Fund (IMF) under the Rapid Financing Instrument to address the economic impact of the COVID-19 shock.

https://epaper.brecorder.com/2020/04/23/1-page/834519-news.html

Margin on MTBs down up to 250bps

Following reduction in key policy rate, margin on all short-term government papers declined up to 250 basis points (bps) in the auction held Wednesday.

https://epaper.brecorder.com/2020/04/23/18-page/834673-news.html

WB projects 23pc decline in remittances

The World Bank has projected 23 percent decline in remittances for Pakistan, totaling about $17 billion in 2020, compared with $22.5 billion in 2019, due to the economic crisis induced by the Covid-19 pandemic, and shutdown as well as decline in oil prices.

https://epaper.brecorder.com/2020/04/23/1-page/834521-news.html

$150m being allocated against Covid-19

Expressing its full support for Pakistan, the Islamic Development Bank (IsDB) on Wednesday stated that the International Islamic Trade Finance Corporation (ITFC) has been directed to immediately finalize $500 million for import of oil and LNG, and an amount of $150 million is being allocated to mitigate the pandemic’s impact.

https://epaper.brecorder.com/2020/04/23/1-page/834522-news.html

More steps can be taken on interest rate: State Bank

The State Bank of Pakistan (SBP) hinted at taking more steps on the interest rate. The central bank has revised upward its projection for the country’s escalating budget deficit to 9.2 percent of GDP equivalent to Rs3,857 billion in post COVID-19 situation for the current fiscal against earlier projection of 7.2 or Rs3,170 billion.

https://www.thenews.com.pk/print/648535-more-steps-can-be-taken-on-interest-rate-state-bank

KCCI demands policy rate at 4pc

Karachi Chamber of Commerce and Industry (KCCI) has urged the State Bank of Pakistan (SBP) governor to bring down the policy rate from 9 percent to 4 percent in view of the extraordinary circumstances and global economic crisis, which is certain to have a long-term negative impact on Pakistan’s economy.

https://www.thenews.com.pk/print/648320-kcci-demands-policy-rate-at-4pc

First two quarters of CY2020: Banks asked to suspend disbursement of dividends

In a major move to conserve capital, the State Bank of Pakistan (SBP) on Wednesday directed banks to suspend the disbursement of dividends for March and June 2020 quarters.

https://epaper.brecorder.com/2020/04/23/24-page/834731-news.html

Salary refinance scheme: SBP announces more incentives for business concerns

In order to facilitate the business concerns, the State Bank of Pakistan (SBP) Wednesday announced reduction in the interest rate for active taxpayers under the Refinance Scheme for Payment of Wages and Salaries and allowed banks to extend financing against corporate guarantee(s).

https://epaper.brecorder.com/2020/04/23/1-page/834520-news.html

Govt all set to issue quarterly profit PIBs

The government is all set to issue 3 and 5-year floating-rate Pakistan Investment Bonds (PIBs) with quarterly profit payments meant to attract investors who want to avoid interest rate risk, sources close to Secretary Finance told Business Recorder.

https://epaper.brecorder.com/2020/04/23/1-page/834523-news.html

Next three to four weeks very critical: Zafar

The next three to four weeks are very critical for Pakistan, said Special Assistant to the Prime Minister on Health Dr Zafar Mirza on Wednesday, as he briefed the media about the continuing impact of the coronavirus in the country.

https://epaper.brecorder.com/2020/04/23/1-page/834514-news.html

International News

Oil rises for 2nd day as producers trim output to respond to demand loss

Oil extended gains on Thursday amid signs that producers are cutting production to cope with a collapse in demand for fuel as the coronavirus outbreak ravages the world’s economies.

https://www.cnbc.com/2020/04/23/oil-markets-crude-output-demand-in-focus.html

Asia stocks nudge higher as oil prices bounce back; South Korea reports first-quarter GDP slump

Stocks in Asia traded higher on Thursday morning as oil prices continued their overnight rebound that recouped some recent losses.

https://www.cnbc.com/2020/04/23/asia-markets-oil-prices-coronavirus-currencies-in-focus.html

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