August 12, 2020 (MLN): Prime Minister Imran Khan says development of construction and small and medium scale industries is the top priority of the government.
Chairing a review meeting on the activities initiated in the construction sector in the wake of government incentive package in Islamabad today (Wednesday), the Prime Minister said these two sectors would not only boost economic activities but also create job opportunities for the youth.
The Prime Minister reiterated his commitment that the government would continue to make every effort to facilitate the business community.
Leading businessman Arif Habib thanked Prime Minister for his personal interest in facilitation business community and briefed him on the improvement in different sectors in the month of July due to decline in Corona cases.
Arif Habib assured the Prime Minister that his company would start billion rupees construction projects on 106 million square feet.
August 12, 2020 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which is sold floating rate PIBs worth Rs.65.079 billion for 3 and 5 years.
The SBP received bids worth Rs.221.925 Billion against an auction target of Rs.120 billion.
Out of the received bids, Rs.116.175 billion was for 3 years, Rs.60.75 billion was for 5 years and Rs.45 billion was for 10 years.
The SBP accepted bids worth Rs.49.575 billion for 3 years and Rs.10 billion for 5 years while all bids for 10 years was rejected.
In addition SBP accepted Rs.5.504 billion in non-competitive bids and through short selling making the total accepted amount Rs.65.079 billion.
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August 12, 2020: Stock markets rose on both sides of the Atlantic on Wednesday as growing optimism about an economic recovery and hopes for upcoming US-China trade talks outweighed worries that US lawmakers may not, after all, agree to a fresh stimulus deal any time soon.
European markets were around one percent higher at the close, with London outperforming its peers thanks to a weaker pound.
US and Chinese officials are meeting this weekend to review their trade pact.
Tensions between the powers has had investors worried, but US President Donald Trump's top economic adviser said the pact was "fine right now".
Larry Kudlow told reporters that despite the tensions, "one area we are engaging is trade".
He added that Beijing had vowed to stick to its promises on the January trade deal and there was evidence it was increasing purchases.
In New York, the Dow was around 250 points higher approaching midday.
Meanwhile, optimism that US lawmakers will thrash out a new stimulus package to accompany Federal Reserve's ultra-loose monetary policy was waning.
Senate Majority Leader Mitch McConnell gave traders a jolt when he told Fox News there had been no progress, fanning concerns the talks could take a lot longer than envisaged.
- Pound lower -
Meanwhile, the British pound slipped against the euro, and to a lesser extent the dollar, as Britain's coronavirus-ravaged economy slid into its deepest recession on record.
The weakening currency helped the London stock market outshine its neighbours as investors bought into UK-based multinational companies earning much of their income in dollars.
Britain's economy shrank by a fifth in the second quarter, more than any European neighbour, and following two quarterly contractions in a row was officially in recession.
Losses for the pound were, however, limited by data showing British GDP growth of 8.7 percent in June -- the final month of the second quarter -- as the economy slowly emerged from lockdown.
"The figure for June is key, as we all knew that lockdown measures would have a big impact on the economy but what we still don't know is how quickly the UK will rebound," said AJ Bell analyst Laura Suter, calling the June figures "encouraging".
- Key figures around 1540 GMT -
- London - FTSE 100: UP 2.2 percent at 6,289.62 points (close)
- Frankfurt - DAX 30: UP 0.9 percent at 13,058.63 (close)
- Paris - CAC 40: UP 0.9 percent at 5,073.31 (close)
- EURO STOXX 50: UP 0.9 percent at 3,363.18
- New York - Dow: UP 0.9 percent at 27,942.38
- Tokyo: Nikkei 225: UP 0.4 percent at 22,43.96 (close)
- Hong Kong: Hang Seng: UP 1.4 percent at 25,244.02 (close)
- Shanghai: Composite: DOWN 0.6 percent at 3,319.27 (close)
- Euro/dollar: UP at $1.1794 from $1.1734 at 2045 GMT
- Dollar/yen: UP at 106.95 yen from 106.50
- Pound/dollar: DOWN at $1.3045 from $1.3047
- Euro/pound: UP at 90.40 pence from 89.94
- West Texas Intermediate: UP 2.3 percent at $42.58 per barrel
- Brent North Sea crude: UP 2.0 percent at $45.39
August 12, 2020: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday gave go-ahead in principle to the payment of all liabilities and responsibilities resulting from a debt of US$ 105 million secured by the Pakistan International Airlines Corporation Limited (PIACL) owned Roosevelt Hotel in Manhattan, New York.
The ECC meeting chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh also asked the Finance Division to engage with Law Division, Aviation Division and Planning Planning Commission to formalise the mode of payment/refinancing as per schedule of the loan contracted by the Roosevelt Hotel to meet its financial challenges, and submit to ECC in its next meeting for formal approval.
The ECC took up and approved a proposal by the Cabinet Division for re-allocation through technical supplementary grant of lapsed funds of Rs 8.01 billion under sustainable development goals achievement programme (SAP) to respective Ministries and Divisions.
The ECC approved amendments to the Import Policy Order 2016 to streamline international trade in live animals and their meat products in accordance with the international rules and practices.
The committee approved a proposal by the Finance Division to allow the Asian Development Bank to launch Offshore Pakistan Rupee (PKR)-Linked bonds based on conducive market conditions.
The ECC approved a revision in key terms of Prime Minister’s Kamyab Jawan Youth Entreneurship Scheme for making the scheme accessible to all Pakistani citizens meeting the laid-down criteria.
The ECC also okayed a proposal by the Ministry of Inter-provincial Coordination for grant of exemption from payment of annual renewal fee of licences issued to travel and tourism related business. The financial impact of the one-year fee exemption comes to approximately Rs 17 million.
The cabinet committee also took up the rescheduling/restructuring of financing facilities and deferment in re-payment of principal loan amount by one year upon a written request of the borrowers received before June 30, 2020 to mitigate the effects of COVID-19, and extended the same facility to borrowers under Prime Minister’s Youth Business Loan Scheme (PMYBL) and Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme upon written requests received before 30th September 2020 provided the borrowers would continue to service the mark-up amount as per the agreed terms and conditions of the relevant scheme.
The ECC approved a proposal for additional funds equal to US$ 3 million for contribution towards SAARC COVID-19 Emergency Fund announced during the video conference of SAARC leaders in March 2020. The ECC was told that similar contributions from other member countries had also been announced.
The ECC approved a supplementary grant of Rs 540 billion having remained unutilised due to procedural conditions under the COVID-19 relief measures announced in FY2020-21.
The committee also considered a proposal by the Revenue Division for arrangement of Rs 40 billion for payment of Income Tax refunds of up to Rs 50 million pending since 2013.
It approved the proposal and asked the Finance Division to arrange the required funds.
The Chair also asked FBR to apprise the ECC of current status of pending refunds with the observation that payment of refunds to the taxpayers was the topmost priority of the government and taxpayers had already been given Rs 250 billion tax refunds in the outgoing financial year, which was more than double the amount of refunds paid to taxpayers in the previous year.
August 12, 2020 (MLN): Another fresh inflow of $10 million has been recorded in government backed short-term debt instrument (T-bills) in a single session yesterday, bringing the net inflow for the day at $10.5 million.
According to the data compiled by the State bank of Pakistan, these fresh influxes came from United Kingdom.
By virtue of these inflows, the net foreign investment in government securities during the ongoing month has now settled at $19.55 million.
Cumulatively from July’20 to date, the country witnessed an inflow of $49.8 million in government denominated securities, compared to the outflow of $76.7 million, depicting a net outflow of $26.9 million.
Further the data revealed that the total inflow of foreign currency during the period stood at $102.6 million, out of which, $52.8 million was attributed to Equity, $39.6 million was attributed to T-bills while $10.5 was for PIBs.
On the other hand, the total outflow from July 2020 to date amounted to $213.8 million, wherein the equity accounted for $137.16 million and T-bills accounted for $76.72 million.
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