The departed week remained satisfactory from an economic perspective. The week ended with the biggest development announcement of United Arab Emirates’ plan to deposit US$3 billion (equivalent to AED11 billion) in the State Bank of Pakistan to support the financial and monetary policy of the country. The other important events and statistical releases during the week included:
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The weekly SPI index for the combined group increased by 0.12 percent compared to previous week (Dec 13, 2018), whereas it increased by 5.36 percent compared to the corresponding period from last year (Dec 21, 2017).
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Pakistan’s foreign exchange reserves rose 6.04% to USD 14,584.50 million on December 14, 2018. SBP received inflow of US$ 1.0 billion from Saudi Arabia. After taking into account outflows relating to external debt and other official payments, SBP reserves increased by US$ 788 million during the week.
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The Ministry of National Food Security and Research and Food and Agriculture Organization of the United Nations on Thursday singed a five years “Agriculture programming framework 2018-19” agreement for achieving its set targets of agriculture and livestock development.
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Current account deficit for the month of November increased by 3% MoM to $1.255 billion, as compared to $1.213 million in October. Whereas, current account deficit in July to November shrank by 10.6% to $6.09 billion, as compared to $6.812 billion in the corresponding period last year.
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Arrival of cotton at various ginneries in Pakistan has fallen short of last year’s quantity by 723 thousand bales, marking a year-on-year decrease of 6.77%. As of December 15, 2018, the total arrival has been recorded at 9.9 million bales, according to recent figures issued by Pakistan Cotton Ginners’ Association (PCGA).
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The over-all output of Large Scale Manufacturing Industries (LSMI) decreased by 0.65% for July-October 2018-19 compared to July-October 2017-18.
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Economic Coordination Committee of the Cabinet (ECC) in its meeting in Islamabad on Monday approved price of imported urea Rs.1712 per 50 kg bag for National Fertilizer Marketing Limited dealers.
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Pakistan’s overall foreign investment amounted to $551 million from July to November, demonstrating a fall of 54 percent. On the other hand, foreign direct investment dropped by 35.2% to $881 million during the same period. Outflow from stock market amounted to $330 million.
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In a notice to the exchange Hub Power Company Ltd (HUBC) announced it has signed financing documents for its 330 MW Thar Energy Limited (The Company) power project during Joint Coordination Committee (JCC) meeting held in Beijing.
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A bit of a commotion was caused in the corporate sector after the announcement at the Pakistan Stock Exchange (PSX) of withdrawal of public announcement of intention (PoI) to acquire 18,336 mn shares or 66.40% stake in KElectric Ltd by Shanghai Electric Power Company Ltd.
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The government and a consortium of Islamic banks agreed to launch a bond of Rs200bn, called the Pakistan Musharqa Sukuk, latest by the middle of January to support the power sector entities facing cash constraints due to chronic circular debt.
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Pakistan and China signed an agreement to expand industrial cooperation in diverse fields and attract investment in special economic zones.
Gold prices edged lower at the start of week as the dollar held firm below a 19-month peak on safe-haven demand amid concerns of a global economic slowdown. Moreover, the precious metal saw a drop in its value as investors continued to await cues on U.S. interest rate hikes from a Federal Reserve meeting expected to take place this week. However, prices started to edge up throughout the week, touching a more than five-month peak on Wednesday as a weaker dollar provided cushion to the precious metal. Gold prices ultimately fell by the end of week as the U.S. Federal Reserve raised interest rates.
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