Tag: English business newspaper in pakistan

June 29, 2022 (MLN): Pakistan received fresh external loans of $13.54 billion in 11 months of the ongoing fiscal i.e., July- May FY22 from multiple financing sources against the annual budget estimates of $14.09bn for the entire fiscal year FY22, the latest monthly report by the Economic Affairs Division (EAD) showed.

In the month of May 2022, the country got foreign assistance of $505.65 million from multiple financing sources. While no loans were borrowed from commercial banks in May 2022.

Out of $13.54bn, the government obtained a $10.5bn loan for non-project aid that includes $9.2bn in the form of budgetary support, $1.29bn for short-term credit, and $31.41mn for TDPs.

Meanwhile, $1.95bn has been obtained for project aid financing and $1.03bn guaranteed loans during July-May FY22.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $4.85bn of foreign economic assistance during 11MFY22.

The Ministry of Economic Affairs noted the country relied on foreign commercial borrowing as it was recorded at $2.62bn during July-May FY22.

Similarly, the country received $2.04bn from bonds issuance and a $3bn time deposit from Saudi Arabia during the said period.

During July-May FY22, the foreign assistance obtained by Pakistan through multilateral sources totaled $4.25bn. Amongst the multilateral development partners, Asian Development Bank (ADB) provided $1.48bn, followed by Islamic Development Bank (IDB) provided $1.29bn as short-term finance and International Development Association-World Bank (IDA) with $1.02bn.

The monthly bulletin by EAD revealed that the collective disbursement from bilateral partners amounted to $593.3mn during July-May FY22 wherein the country received $301.1mn from Saudi Arabia, followed by China with $157.6mn, the United States with a grant of $64.72mn while Japan gave $19.49mn during the period under review.

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June 29, 2022 (MLN):  Keeping its gaining momentum intact, the Pakistani rupee (PKR) has gained 2.57 rupees against the US dollar in the interbank market in intraday trade.

The local unit was quoted at 204.98/205.48 [11:08 PST] compared to the previous close of PKR206.87 per USD.

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June 29, 2022 (MLN):  Packages Limited (PKGS) has made a public offer to purchase 585,254 ordinary shares of Sanofi-Aventis Pakistan Limited, having a par value of Rs10 each at an offer price of Rs1,704 each, the company's filing on PSX showed today.

The above acquisition by PKGS (the Acquirer) is on behalf and under the consent of the Investor Consortium comprising Packages Limited, IGI Investments (Private) Limited and affiliates of Arshad Ali Gohar Group.

It is pertinent to note that Arif Habib Limited is the Manager to the Offer.

On June 24, 2022, PKGS had extended the timeline for making a Public Announcement of Offer (PAO) to acquire the entire 52.87% shareholding of Sanofi Foreign Participants B.V. held in Sanofi-Aventis Pakistan Limited (SAPL) by an Investor Consortium.

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June 28, 2022 (MLN):  In the backdrop of the significant developments on the IMF front and the fresh inflows from the Chinese consortium, the Pakistani rupee (PKR) has gained 1.87 rupees against the US dollar in the interbank market in early trade.

The local unit was quoted at 205.27/205.55 [10:15 PST] compared to the previous close of PKR206.87 per USD.

Since the government on Tuesday received the Memorandum of Economic and Financial Policies (MEFP) received from the fund, it will have to comply with the conditionalities that are included in MEFP.

To cater to this, the government is all set to table the amended Finance Bill in the Parliament in today’s session for approval as it's one of the significant elements to striking a deal with IMF.

Pakistan will have to take at least two more prior actions to secure two combined tranches of about $1.85 billion from IMF by the end of July or early August.

Top government sources said these prior actions — which will be in addition to a series of structural benchmarks for the performance review — would be necessary for the Fund’s executive board to approve the merger of the seventh and eighth quarterly reviews of the 39-month, $6bn loan program that originally began in July 2019, as reported by Dawn News.

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June 29, 2022: Malaysian palm oil futures fell more than 1% on Wednesday, snapping a two-day rally after Indonesia raised export quotas for companies.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange fell 68 ringgit, or 1.36%, to 4,921 ringgit ($1,118.92) a tonne during early trade.

FUNDAMENTALS

Indonesian palm oil companies will be offered larger export quotas under new plans to adjust rules on local cooking oil sales, officials said on Tuesday, part of government efforts to improve domestic distribution after a months-long price crisis. 

Dalian's most-active soyoil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 gained 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%.

Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.

Palm oil may test a support at 4,742 ringgit per tonne, as it could have completed a bounce from the recent low of 4,493 ringgit, Reuters technical analyst Wang Tao said. 

MARKET NEWS

Stocks on global indexes fell sharply on Tuesday, with the S&P 500 down 2% after a report showed U.S. consumer confidence dropped in June amid concerns about inflation, while oil prices gained for the third day. 

Reuters