March 27, 2020: The Bank of Canada on Friday lowered a key interest rate to 0.25 percent as part of a drive to cushion the impact of the coronavirus pandemic.
“This unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic,” the bank said of the change in the so-called overnight lending rate.
AFP/APP
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May 29, 2020 (MLN): The State Bank of Pakistan (SBP) conducted an Open Market Operation on Friday in which it injected Rs.461.95 Billion into the market for 7 Days.
| Amount* | Rate | Bids | |||||
|---|---|---|---|---|---|---|---|
| Tenor | Type | Offered | Accepted | High - Low | Accepted | Offered | Accepted |
| 7D | Reverse Repo (Injection) | 461.950 | 461.950 | 8.05 - 8.02 | 8.02 | 18 | 18 |
| OMO Settlement: same day May 29, 2020 | |||||||
| *Amount in Billions | |||||||
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May 29, 2020: European shares pulled back on Friday as market participants turned their focus to Washington's response to the Chinese parliament's approval of a national security law for Hong Kong, but major indexes were on course to finish May with solid gains.
The pan-European STOXX 600 index fell 0.9% by 0709 GMT, with U.S. President Donald Trump due to announce his policy moves that could escalate tensions between Washington and Beijing.
Automobiles and parts makers led declines with a 2.5% drop, while travel & leisure and banks fell more than 2% each.
Still, hopes of a global economic recovery as policymakers unleashed stimulus programmes and several countries emerged from lockdowns put the STOXX 600 on course for a 3.6% monthly gain.
Hugo Boss AG fell 4.4% after Jefferies downgraded the stock to "hold", while Renault SA slid 4.5% on news that it was launching talks with unions to restructure several French car plants and confirmed plans to cut around 15,000 jobs worldwide.
Coffee maker JDE Peet's, one of the few big companies to go public during the coronavirus crisis, jumped 11.3% at the start of trading on Euronext in Amsterdam.
Reuters
May 29, 2020 (MLN): The Pakistan Water and Power Development Authority (WAPDA) has awarded the consultancy contract worth Rs. 156.226 million to a joint venture headed by NESPAK for a feasibility study, detailed engineering design, preparation of tender documents, and PC-I of Murunj Dam Project.
WAPDA General Manager (Hydro Planning) Muhammad Amin and NESPAK General Manager (Water and Agriculture) Javed Munir signed the agreement on behalf of WAPDA and the joint venture respectively in a ceremony held at WAPDA House.
Murunj Dam Project will be constructed across Kaha Nullah about 15 Kilometer (Km) from Mari village and 116 Km west of Rajanpur, Punjab. Kaha Nullah is one of the largest hill torrents of the Koh-e-Sulaiman Range located in the vicinity of Rajanpur with average annual inflows of 183,000-acre feet. The available water resources are very scarce in Rajanpur and adjoining areas facing acute shortage of freshwater for drinking and agriculture.
Murunj Dam Project has three main objectives namely storage of water for irrigated agriculture and drinking purpose, flood mitigation, and power generation. The project will have gross water storage of 800,000-acre feet. Annual monsoon rains give rise to flashy hill torrents causing inundation of thousands of acres of land in the adjoining foothills and rendering damages to public property and cultivated land each year.
The project will generate 12 megawatts (MW) cheap and environmental-friendly electricity. The project is unique in nature for Southern Punjab and will help alleviate poverty from the remote and backward regions. It will change existing economic indicators and uplift the living standard of the people. The project will have tangible benefits and bring about 120,000-acre barren land into irrigable, groundwater recharging, and fisheries development. Implementation of the project will have a significant positive impact and uplift the local economy.
Press Release
May 29, 2020 (MLN): Pakistan joined the Asian Development Bank (ADB) as a founding member in 1966 and since then, ADB has been working with the country to strengthen its key infrastructure, improve social services, and promote inclusive economic growth.
The bank’s country operations business plan, 2020–2022 for Pakistan outlines $7.1 billion in assistance. This includes project loans; policy-based lending for structural reforms; multi-tranche financing facilities for energy, transport, water, and other urban infrastructure and services; and results-based lending for energy and social services.
ADB aims to mobilize private financing for development projects, expand its financing and technical assistance for the public-private partnerships, and explore policy-based guarantees to help the Government of Pakistan leverage more financing and develop capital markets.
In agriculture, ADB initiated work during 2019 on a $275 million irrigation project in Jalalpur and committed a grant of $5.1 million that will enhance technology-based agriculture in Punjab and prepare an integrated water resources project at the Kurram Tangi Dam.
In the energy sector, ADB maintained a strong presence with an ongoing portfolio of $2.2 billion covering energy generation, transmission, distribution, energy efficiency, and renewable energy development. In 2019, ADB committed a $300 million policy-based loan that will help the government address financial sustainability, governance, and energy infrastructure policy constraints
In 2019, Pakistan received $80 million in loan co-financing from the Export-Import Bank of Korea for the Energy Sector Reforms and Financial Sustainability Program — Subprogram 1, and $8.5 million in grant co-financing from the Government of Switzerland, the High-Level Technology Fund, the Japan Fund for Poverty Reduction, and the Urban Climate Change Resilience Trust Fund for three projects.
OPERATIONAL CHALLENGES
Pakistan has been experiencing fiscal and current account deficits. Continued efforts toward fiscal consolidation will be key to sustaining improvements in macroeconomic stability. Areas for specific attention include broadening the country’s tax base, committing to policy reforms, and improving the country’s business environment. Reforms are also required to promote high value-added exports, expand social spending, progress energy sector development, and strengthen institutions. To help improve Pakistan’s fiscal sustainability and create a better business environment, ADB will continue to engage in policy dialogue with the government on managing macroeconomic imbalances, while maintaining the momentum of structural reforms to support economic stability and expansion.
FUTURE DIRECTIONS
ADB will continue to support Pakistan through investments outlined in the country operations business plan, 2020–2022. This includes making greater use of project readiness financing as well as embracing smart technology and innovative development approaches.
Pakistan’s growth prospects will continue to be influenced by reforms initiated by the International Monetary Fund’s stabilization program along with projects under the Central Asia Regional Economic Cooperation Program, the China– Pakistan Economic Corridor, and other development initiatives. Program lending will include policy support for economic growth, reforms to improve the energy sector, and enhanced trade opportunities and international competitiveness.
The contents of this article have been taken from the ‘Member Fact Sheet’ released by the Asian Development Bank. The full report can be accessed by clicking on this link.
May 29, 2020 (MLN): Pakistan Papers Products Limited (PPP) has informed via notification to PSX that the company has installed an imported brand-new state of the art 8 colour Narrow Web Flexo Printing machine in Pro Label segment.
This machine will enhance the company’s existing production capacity so that company can timely meet and execute the increased orders from its clients.
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