MG Morning Breeze: Updates to Skim before Market

June 20, 2024 (MLN): Morning Breeze aims to lessen the load for its readers by curating noteworthy updates from the preceding day.

• Budget Blues: Pakistan’s high-stakes tax strategy

Pakistan’s budget for the upcoming fiscal year reflects the necessity to shrink the fiscal deficit with somewhat harsh taxes spanning across various segments. Read more

• Tech Beat: PSX rally likely to extend further

The world's best-performing stock market may extend its rally further, technical indicators suggest. Read more

• NEPRA hikes tariff by Rs5.72 per unit from July 2024

The National Electric Power Regulatory Authority (NEPRA) has hiked the basic electricity tariff by Rs 5.72 per unit applicable from July 1, 2024. Read more

• Fitch forecasts FY25 inflation at 12%, policy rate at 16%

Fitch Ratings expect inflation and interest costs to decline in tandem, with economic growth and primary surpluses driving government debt/GDP gradually lower. Read more

• Petrol prices slashed by another Rs10.2 per litre

The government has once again reduced the price of petrol by Rs10.20 to Rs258.16 per litre, passing on the relief of declining international prices. Read more

• Govt slashes industrial electricity price by Rs10.69

Prime Minister Shehbaz Sharif on Friday announced a significant reduction of Rs10.69 per unit in electricity tariff for the industrial sector. Read more

• Budget FY25 targets deficit reduction, supporting IMF prospects: Fitch

Pakistan’s ambitious FY25 budget strengthens prospects for an IMF deal, Fitch Ratings says. Read more

• Pakistan’s budget reflects quicker fiscal consolidation: Moody’s

Pakistan’s budget FY25 outlines a quickening of fiscal consolidation to be achieved through increases in taxes and stronger projected nominal growth. Read more

• FY25 budget deals catastrophic blow to textile industry: APTMA

The All Pakistan Textile Mills Association (APTMA) has voiced severe concerns regarding the FY25 budget proposed by the government. Read more

• REAP Chairman denounces hybrid tax model in national budget

Chela Ram Kewlani, Chairman Rice Exporters Association of Pakistan (REAP) has strongly opposed the announcement in National Budget of converting. Read more

• Ethanol industry appeals to FM over new 29% tax in FY25 budget

The recent tax policy changes for the ethanol industry, which include eliminating the previously beneficial 1% full and final tax and imposing a burdensome. Read more

• Pakistan attracts highest foreign investment in T-bills since 2020

Foreign investors parked a significant $148.6 million into T-Bills in the first 25 days of May, the highest since 2020. Read more

• KSE-100 closes at all-time high

Pakistan’s benchmark stock index surged by most in two months to a record after the central bank initiated an easing cycle, followed by a tax-heavy budget. Read more

• Breakup of Pakistan’s trade data in May: PBS

Pakistan’s revised trade deficit in May 2024 clocked in at $2.108 billion compared to a deficit of $2.107bn in the same month last year. Read more

• PKR gains over 8 paisa against USD

The Pakistani rupee (PKR) appreciated by 8.22 paisa against the US dollar in Friday’s interbank session as the currency settled the trade at PKR 278.51. Read more

• LSMI in April increases by 5.76% YoY

Pakistan’s Large-scale Scale Manufacturing Industries (LSMI) production increased by 5.76% YoY in April 2024. Read more

• World Bank approves $150m to boost education in Punjab

The World Bank’s Board of Executive Directors on Friday approved $150 million for a project to increase the participation rates of girls and boys. Read more

• Pension expenditure to jump 23.5% in FY25

The federal government has set a target to disburse Rs1.014 trillion as pensions in the fiscal year 2024-25, a significant jump of 23.51%. Read more

• Fertilizer offtake plummets 21.6% YoY in May 2024

The country’s overall nutrient offtake fell 21.6% YoY to 244,000 tons during May 2024 as compared to an offtake of 312,000 tons in the same month last year. Read more

• CCP grants time-bound exemption in Uber-Careem deal

The Competition Commission of Pakistan (CCP) has granted exemption till December 2025 on specific clauses of Non-Compete Deeds of Covenant. Read more

• Govt develops reform plan to improve energy sector

To improve the energy mix of Pakistan and eliminate other deficiencies of the power sector, a reform plan has been made. Read more

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