May 20, 2022 (MLN): The Annual Budget for FY 2022-23 along with the Finance Bill 2022 is scheduled to be presented in the National Assembly of Pakistan on Friday i.e., 10th June, 2022, a notice issued by Finance Division showed today.
Prime Minister Shehbaz Sharif has approved the summary to present the budget for the next financial year.
“The Prime Minister has been pleased to approve schedule of submission of the budget for FY 2022-23, in the National Assembly and its transmission to the Senate of Pakistan,” the notice said.
It is accordingly requested that a special budget meeting of the Federal Cabinet may kindly be convened for consideration of the budgetary proposals, it added.
To note, the talks between Pakistan and IMF for the resumption of the $6 billion Extended Fund Facility (EFF) are currently underway.
Earlier, the IMF emphasized the need to reverse the unfunded subsidies which are the prior conditions for the ongoing $6 billion loan program and as per sources the federal government has decided to withdraw subsidies on petroleum products and electricity.
June 27, 2022 (MLN): After witnessing a notable gain of around one rupee against the US dollar in early trade on the back of a fresh inflow of $2.3bn from China, thePakistani rupee (PKR) joined back its downward journey and depreciated by 47 paisa in today's interbank session to close the trade at PKR 207.94 per USD.
The rupee endured a volatile trading session with quotes being recorded in a range of 1.25 rupees per USD showing an intraday high bid of 207.75 and an intraday low offer of 207.00 while in the open market, PKR was traded at 205/207 per USD.
Speaking to Mettis Global, Malik Bostan, President of Forex Association of Pakistan said, “The interbank market is still going through a period of uncertainty due to political chaos as elections are around the corner. Meanwhile, former Prime Minister Imran Khan issued a fresh call for a protest which has also smashed market sentiments.”
Adding to it, he said that apart from the political scenario, the rest of the indicators are in favor of the interbank market. Since Pakistan has also received inflows from China and there have been positive developments on the IMF front, the PKR is likely to appreciate in the near term, he added.
From July’21 to date, the local unit has lost Rs50.4 against the USD. Similarly, the rupee fell by Rs31.43 in CY21, with the month-to-date (MTD) position showing a decline of 4.56%, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 24.24% against the greenback while reaching its lowest at 211.93 on June 22, 2022, and the highest of 157.54 on June 30, 2021.
Furthermore, the local unit has weakened by 15.12% since its high on July 02, 2021, against EUR while, it has dropped by 15.17% against GBP since its high on July 02, 2021.
The performance of the local unit remained bleak against other major currencies in MTD as the currency lost its value by 4.79%, 4.56%, 4.51%, 4.16%, 3.25%, and 2.30% against CHF, AED, SAR, CNY, EUR, and GBP, respectively. On the other hand, the local unit has appreciated by 0.73% against JPY.
Meanwhile, the currency lost 1.5 rupees to the Pound Sterling as the day's closing quote stood at PKR 256.12 per GBP, while the previous session closed at PKR 254.64 per GBP.
Similarly, PKR's value weakened by 1.6 rupees against EUR which closed at PKR 220.06 at the interbank today.
On another note, within the money market, the overnight repo rate towards the close of the session was 12.75/12.80 percent, whereas the 1-week rate was 13.05/13.15 percent.
June 27, 2022 (MLN): The Security Exchange Commission of Pakistan (SECP) has approved the demerger of Allied Rental Modaraba, the company’s notice to Exchange said today.
“SECP has conveyed their “No Objection” on the proposed demerger of Allied Rental Modaraba”, the notice read.
The management of Modaraba said that it shall update the PSX and certificate holders of the Modaraba on the approvals of other regulatory bodies and fulfilment of other conditions necessary for the proposed demerger scheme.
June 27, 2022 (MLN): Bykea, the local ride-sharing and delivery startup, raised $10 million from its existing backers to tap rising demand for online services in the country, reported Bloomberg.
Bykea, which focuses on two-wheeler rides, said in a statement Monday it plans to use the funds to extend its services, which include food and e-commerce deliveries, as well as cash pick-up.
The company’s investors include Prosus Ventures, MEVP, Sarmayacar, Tharros, and Ithaca Capital.
With 1.7 million active monthly users and more than 60,000 driver-partners, Bykea offers services in Karachi, Lahore and Islamabad. It’s among an emerging crop of Pakistani startups attracting attention from global venture investors as mobile services gain popularity in the country of more than 200 million people, it added.
“We see an enormous opportunity to serve the middle class by offering easy, affordable, and convenient transport and logistics solutions,” Bykea Executive Chairman Jonas Eichhorst said in the statement.
June 27, 2022: Pakistan's monthly fuel oil imports are set to hit a four-year high in June, Refinitiv data showed, as the country struggles to buy liquefied natural gas (LNG) for power generation amid a heatwave that is driving demand.
The resurgence in residue fuel demand at power plants underscores the energy crisis faced by the South Asian country and slows its efforts to switch to cleaner fuel.
Pakistan had cut fuel oil imports since the second half of 2018 as LNG prices were low, but it had to at times switch back to oil since July 2021 because of sky-high LNG prices.
The country's fuel oil imports could climb to about 700,000 tonnes this month, after hitting 630,000 tonnes in May, according to Refinitiv estimates. Imports last peaked at 680,000 tonnes in May 2018 and 741,000 tonnes in June 2017.
A spokesman for Pakistan's energy ministry cited global prices as the reason for the surge in fuel oil imports.
The trend is set to continue in July too, as Pakistan State Oil (PSO) received offers from Coral Energy to supply two high sulphur fuel oil (HSFO) cargoes and one low sulphur fuel oil (LSFO) cargo for second-half July delivery, industry sources said. PSO had sought five cargoes in the tender, according to its website.
"Import data indicates that thermal power generating companies in Pakistan made the initial switch from gas to fuel oil late last year and the price dynamic provides an ongoing incentive to max out fuel oil purchases over LNG," said Timothy France, a MENA senior oil analyst at Refinitiv.
Asia LNG spot prices jumped last week, tracking European gas prices, as an extended shutdown at a U.S. export plant prompted buying by Japan and South Korea.
Pakistan LNG, in its second attempt to buy four LNG cargoes for July delivery, received only a single supply bid for one cargo from QatarEnergy on Thursday.
Pakistan LNG, however, did not pick up the supply bid due to the cost.
The country, which is facing a severe energy crisis, has been in a conservation mode to reduce consumption and stave off blackouts.
"Weather conditions in Pakistan appear highly supportive of demand. Cooling demand typically remains high until mid-September, which implies that imports could remain elevated in June, July, and August," France added.
While fuel oil-based power generation was relatively steady year-on-year, it climbed 15% in May from the previous month, data from Topline Research showed.
June 27, 2022 (MLN): International Steels Limited (ISL) has informed that a state-of-the-art rewinding line with an electrolytic cleaning section has been commissioned which is part of the debottlenecking project to enhance the finishing capacity of Cold Rolled Coils and sheets by 120,000 tons per annum.
This will enable the company to expand its already strong footprint in automobile, appliances, and Tin Mill Black Plate (TMBP) segments of the cold-rolled steel market.
To recall, on March 9, 2021, the Board of Directors of the company approved a capital expenditure of Rs1.235 billion for the said debottlenecking project.
Currently, the stock of the company is trading at Rs57.88 [12:24], up by 99 paisa or 1.74% DoD.
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