In the first of the 2 OMOs scheduled for Thursday, SBP injected Rs.76.950 Billion into the market for 8 Days.
| Amount* | Rate | Bids | ||||
|---|---|---|---|---|---|---|
| Tenor | Offered | Accepted | High – Low | Accepted | Offered | Accepted |
| 8D | 164.950 | 76.950 | 5.90 % – 5.80 % | 5.81 % | 12 | 7 |
| OMO Settlement: Same Day (Dec 28, 2017) | ||||||
| *Amount in Billions | ||||||
The Result of the 20 Day Outright sale is expected at 13:30 PST
May 19, 2019: Petroleum Division (PD) of the Energy Ministry Sunday said the results of four-month offshore drilling at Indus G-Block called Kekra-I, some 230-km off the Karachi coast, had shown good quality hydrocarbon reservoir but unfortunately these were water wet.
“After the well control operations, the 6" Open Hole section drilling was resumed on Friday.The reservoir was encountered at 5,492 meters and so far about 140 meters of reservoir have been drilled. The log results show a good quality reservoir but unfortunately water wet without any gas effect,” a Petroleum Division press release said.
Current depth of the well is 5,634 meters ‘Managed Depth’ and as per the plan; while another 55 meters would be drilled before proceeding with P&A (plug and abandon) operations, which has already been approved by Joint Venture Partners including Exxon.
The offshore drilling is a joint venture of ENI, Exxon Mobil, Oil and Gas Development Company Limited and Pakistan Petroleum Limited. The consortium had started drilling activities on January 13, 2019.
(APP)
May 19, 2019 China remained the top exporter to Pakistan during the first eight months of the current fiscal year, followed by United Arab Emirates and Singapore.
The total imports from China during July-February (2018-19) were recorded at 6633.191 million dollars against the $7326.706 million during July-February (2017-18), showing a decrease of 9.46 percent during the period.
This was followed by UAE, where from Pakistan imported goods worth $6266.141 million against the imports of $5793.779 million last year, showing positive growth of 8.15 percent.
Singapore was the at third top country from where Pakistan imported products worth $2396.914 million against the imports of $3043.270 million last year, showing the negative growth of 21.23 percent.
Among other countries, Pakistani imports from Saudi Arabia stood at $1977.522 million against $1994.299 million during last year, showing decline of 0.84 percent while the imports from Qatar were recorded at $1441.123 million against $876.047 million last year, showing rise of 64.50 percent.
May 19, 2019 (MLN): The local equity market once again ended the week on a negative note as the benchmark index closed in red with a loss of 4.5% WoW. The market lost 1,550 points WoW, closing at 33,166 points. Turbulence at the equity market was a result of anticipation of further interest rate increases and rupee devaluation, moreover, the expectation of positive sentiments upon agreement of IMF Program did not materialize.
Investors remained cautious due to tough measures attached with the IMF program. Concerns were reinforced as the rupee lost 6.5 rupees against the greenback during the week. However, investors were relieved in the middle of the week owing to Pakistan’s emerging market status being retained and approval of amnesty scheme by the cabinet.
However, this impetus was short lived as the Pak-Rupee witnessed depreciation against USD and concerns persisted over a significant rate hike in the upcoming monetary policy statement.
Furthermore, the past week brought along a series of economic events both in terms of data releases and developments in public policy.
On Sunday, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh announced that the technical teams of the government and the International Monetary Fund (IMF) reached an agreement on a bailout package of US$6 billion for Pakistan.
On Wednesday, Prime Minister Imran Khan approved the asset Declaration Scheme, 2019, which gives Pakistani citizens another opportunity to declare and legalize previously undisclosed assets within and outside the country by paying just four percent taxes on all assets other than real estate.
Meanwhile, the Economic Coordination Committee (ECC) on Wednesday approved procurement of 5.15 million tons of wheat target with financial limit of 158.5 billion rupees this year. The ECC also approved additional supply of 150 MW of power through National Grid to K-Electric to address power shortage in Karachi.
On Thursday, the State Bank of Pakistan through a press release informed that the Monetary Policy for the next two months will be announced on Monday, May 20, 2019.
On Friday, in a frantic attempt to avoid a market meltdown, the government of Pakistan decided to launch a ‘Disaster Support Fund” worth Rs.15 to Rs.20 billion, work on which is reported to begin on Monday. This fund will be operated under the National investment Trust (NIT), as informed by the sources.
Meanwhile, the same day, OGRA recommended increase in gas tariff for the upcoming Fiscal Year 2019-20 and the final decision would be taken after approval of federal government. Earlier, the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), in their petitions, had sought an increase of 144 per cent and 30 per cent for gas prices, respectively.
On the upside, Morgan Stanley Capital Index (MSCI)’s semi-annual index review took place on Monday and its results toned down markets’ anxiety levels by many folds as it announced no change in Pakistan’s status within the MSCI Emerging Market (EM) Index. All 3 constituents of Pakistan (HBL, OGDC, and MCB) managed to secure a status within the Standard Index.
Furthermore, Pakistan has been ranked 3rd in the world for newly installed hydropower capacity. This was declared by the International Hydropower Association (IHA) in its recently issued report titled “2019: Hydropower Status Report – Sector Trends and Insights”.
Moreover, the statistical data released this week apprising the economic standing of the country are listed below:
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| Weekly Performance | ||
|---|---|---|
| May 17, 2019 | May 10, 2019 | |
| PKR InterBank | 147.8783 | 141.3938 |
| KSE100 Index | 33,166.62 | 34,716.53 |
| Avg Daily Volume | 107,351,288 | 73,480,520 |
| Gold (Karachi) Rs/10 gm | 61,614 | 59,328 |
| KIBOR 6M | 12.07 | 11.53 |
| 10Y PIB | 13.54 | 13.26 |
| EUR | 1.1166 | 1.1234 |
| GBP | 1.2717 | 1.2995 |
| CHF | 1.0106 | 1.0115 |
| JPY | 110.07 | 109.94 |
| GOLD | 1277.64 | 1285.18 |
| NY Light Crude | 62.78 | 61.66 |
| Open Market Rates | ||
| May 17, 2019 | May 03, 2019 | |
| USD | 149.50 | 142.00 |
| EUR | 168.80 | 159.30 |
| GBP | 191.00 | 185.80 |
| JPY | 1.3561 | 1.2800 |
| AED | 40.75 | 38.85 |
| SAR | 40.00 | 37.85 |
| SBP Data | ||
| T-Bill Auction Cutoff Yield | May 08, 2019 | Apr 24, 2019 |
| 3M | 11.2491 | 10.9799 |
| 6M | No Bids Received | Bids Rejected |
| 12M | No Bids Received | No Bids Received |
| PIB Auction Cutoff Yield | Apr 17, 2019 | Mar 20, 2019 |
| 3Y | 12.2000 | 12.2300 |
| 5Y | Bids Rejected | 12.6405 |
| 10Y | Bids Rejected | 13.1500 |
| 20Y | No Bids Received | Bids Rejected |
| Interest Rate Corridor | Apr 01, 2019 | Feb 01, 2019 |
| SBP Policy Rate | 10.75 | 10.25 |
| SBP Reverse Repo Rate | 11.25 | 10.75 |
| SBP Repo Rate | 9.25 | 8.75 |
| Weekly Indicators | ||
| May 10, 2019 | May 03, 2019 | |
| SBP FX Reserves * | 8,845.60 | 8,984.10 |
| Bank FX Reseves * | 7,048.80 | 6,988.50 |
| Total FX Reserves * | 15,894.40 | 15,972.60 |
| May 09, 2019 | May 02, 2019 | |
| SPI (Combined Group) *** | 254.38 | 251.47 |
| Change - WoW (pct) | 1.16 | -0.25 |
| Change - YOY (pct) | 13.32 | 12.38 |
| Monthly Indicators | ||
| Apr | Mar | |
| Consumer Price Index | 244.03 | 240.99 |
| Change - MOM (pct) | 1.26 | 1.42 |
| Change - YOY (pct) | 8.82 | 9.42 |
| WholeSale Price Index | 259.57 | 253.67 |
| Change - MOM (pct) | 2.33 | 1.70 |
| Change - YOY (pct) | 13.81 | 12.63 |
| Sensitive Price Indicator | 229.84 | 227.82 |
| Change - MOM (pct) | 2.33 | 1.56 |
| Change - YOY (pct) | 13.81 | 8.81 |
| Apr | Mar | |
| Exports * | 2,094.00 | 1,979.00 |
| Imports * | 4,753.00 | 4,155.00 |
| Trade Balance * | -2,659.00 | -2,176.00 |
| Apr | Mar | |
| Home Remittances * | 1,778.90 | 1,745.80 |
| Mar | Feb | |
| Total Foreign Investment * | 180.46 | 173.99 |
| Quarterly Indicators | ||
| Mar 31, 2019 | Dec 31, 2018 | |
| Pakistan's External Debt * | 105,841.00 | 99,086.00 |
| Annual Indicators | ||
| 2017-18 | 2016-17 | |
| GDP Growth Rate ** | 5.22 | 5.37 |
| Agriculture ** | 3.70 | 2.18 |
| Manufacturing ** | 5.34 | 5.83 |
| Commodity Sector ** | 4.38 | 3.73 |
| Services Sector ** | 5.78 | 6.52 |
| Trade Balance * | -37,670.00 | -32,488.00 |
| Worker Remittances * | 19,622.62 | 19,351.36 |
| Foreign Investment * | 4,977.35 | 2,496.06 |
| Annual Inflation Rate % | 3.92 | 4.15 |
| * Amount in USD Million | ||
| ** GDP Estimates Revised by the National Accounts Committee | ||
| *** Weekly SPI Data for Week ending May 16, 2019 Was not Released by PBS | ||
ISLAMABAD, May 17: Oil and Gas Regulatory Authority (OGRA) Friday recommended increase in gas tariff for the upcoming Fiscal Year 2019-20.
According to official sources in OGRA, the final decision would be taken after approval of federal government.
Earlier, the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), in their petitions, had sought an increase of 144 per cent and 30 per cent for gas prices, respectively.
Accordingly, the authority held public hearings in various cities including Karachi, Lahore, Quetta and Peshawar.
Concluding the hearings, the OGRA determined the revised prices and forwarded the recommendation of average increase of 47 per cent hike in the commodity tariff for SNGPL and 28 per cent for SSGC respectively, which would be notified after approval from the government .
(APP)
