This week’s statistical releases, reflecting various aspects of the economy, accounted by organizations including the State Bank of Pakistan (SBP), Pakistan Bureau of Statistics (PBS), Pakistan Automotive Manufacturer’s Association (PAMA), are listed below:
• Central Government Debt in November, 2018 climbed to a sum of Rs.26.45 trillion, up by Rs.4.59 trillion from a debt of Rs.21.86 trillion recorded in the same month last year, thus marking an increase of 21%, YoY, and 9.25% from June 30, 2018. – SBP
- The weekly SPI increased by 0.40 percent compared to the previous week (Jan 03, 2019) and 6.19 compared to the corresponding period from last year (Jan 11, 2018).
• The net sale of securities via Specially Convertible Rupee Accounts (SCRA) logged in at Rs.121 million, down by 87.6%, WoW. – SBP
• The total liquid foreign reserves held by the country stood at US$13,597 million on Jan 04, 2019. – SBP
• Overseas Pakistanis remitted around $1.7 billion in December 2018, marking an increment of $82 million (5.07%) from last month and a decline of $33 million (1.93%) from last year. – SBP
• The sale of passenger cars in December 2018 increased to 16,141 units from 15,334 units recorded in November (+5.2%. MoM). Meanwhile, in the last 6 months, above 104 thousand passenger cars have been sold, marking a negligible change from last year’s cumulative car sales for July-Dec period. – PAMA
• The country’s exports were recorded at US$11.1bn, up 1.7% over last year while the country’s imports for the period were recorded at US$28.1bn, down by around 3%. Resultantly, the country's trade deficit for the period Jul-Dec 2018 recorded at US$16.9bn, down 5.6% or US$1bn over last year.
• Trade Deficit in Services for November 2018 shrunk by 40% from last year and is documented at $333 million. In harmony with the trend, the cumulative deficit for the Jul-Nov period improved by 35% YoY, and stands recorded at $1.4 billion. Provisional figures show that import value ($3.6 billion) during the period fell by 17%.
Moreover, following major events and developments took place during the last week
• A delegation of Saudi Arabia arrived on Saturday to inspect the site for the proposed oil refinery at the deep seaport city, an ultimate destination of the China Pakistan Economic Corridor. Regarding this, the Federal Minister for Petroleum and Natural Resources Ghulam Sarwar Khan said it would the biggest investment of the Saudi government in Pakistan, for which a Memorandum of Understanding is expected to be signed next month.
• Government of Pakistan and World Bank on Wednesday signed a Financing Agreement worth US $ 100 million for “Sindh Solar Energy Project” with the objective to increase solar power generation and access to electricity in Sindh Province.
• The government of Pakistan issued an official notification to freeze the import of furnace oil. Moreover, the authorities asked refineries to improve the output and quality of petroleum products, and to minimize production of furnace oil.
• Fitch Solutions in its latest analysis of Pakistan’s economy forecasted that the country’s GDP growth rate will plunge to 4.4 per cent clouded by widening twin deficits – fiscal and external account despite expectations of central bank holding rates steady to support economic activity.
• The Drug Regulatory Authority of Pakistan (DRAP), with the approval of the federal government fixed the maximum retail prices of drugs and announced up to 15% hike in the prices of drugs.
• State Bank of Pakistan (SBP) won the global award as the best Central Bank in promoting Islamic finance for the year 2018. The coveted award is conferred by Islamic Finance News (IFN), an arm of REDmoney Group, Malaysia. IFN Best Banks Poll is regarded as one of the most prestigious accolades in the Islamic finance industry.
• Prime Minister ordered for the immediate removal of the managing directors of Sui Southern and Sui Northern Gas companies.
• Finance Minister Asad Umar announced government’s plan to introduce second mini budget in five months on January 23, 2019.
• The president reconstituted the National Finance Commission (NFC) with Finance Minister Asad Umar as its chairman. The NFC members would consist of finance ministers of all four provinces.
• All Pakistan CNG Association (APCNGA) announced Rs five per litre price reduction in total price of Compressed Natural Gas (CNG) after a decrease in oil prices across the world.
• Securities & Exchange Commission of Pakistan (SECP) imposed a fine of Rs. 10,000 each on 13 Board of Directors of K-Electric Limited, including the CEO, as a result of failing to file the Company’s interim financial statements for the quarters ended December 31, 2016 and March 31, 2017 with the SECP.
• The Board of Sui Southern Gas Company (SSGC) appointed Mr. Muhammad Amin Rajput from the post of Acting Managing Director (AMD) of the Company, with effect from January 10, 2019.
• TPL Properties Limited signed a Memorandum of Understanding (MoU) with Equitativa Real Estate Limited, the largest Real Estate Investment Trusts (REIT) manager in the GCC and manager of Emirates REIT, to form a REIT Management Company (RMC) in Pakistan.
• Engro Fertilizer Limited (EFERT) announced the appointment of Mr. Umair Mukhtar as Secretary to Board of Directors in place of Ms. Sarah Farooq, with effect from January 8, 2019.
Within the equity market, the benchmark KSE-100 index closed at 39,049 points by the end of week, demonstrating an increase of 1,502 points over the week. This week trading began on a positive note as the crown prince of United Arab Emirates announced a financial support package of USD 3 billion, as well as oil facility worth USD 3 billion to Pakistan. Furthermore, Financial Action Task Force (FATF) expressed satisfaction over Pakistan’s efforts to control money lauding and terror financing which triggered positive sentiments amongst investors. Rising international oil prices also attracted market participants to invest in the E&P sector.
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