The weekly roundup of Pakistan’s economy

July 7, 2019 (MLN): The KSE-100 index seemed to be in a state of disarray after the government came into action to strike down tax evaders by confiscating their properties and SECP’s issuance of Search and Seizure rules in this regard. 

Having made remarkable gains during the first three sessions on trading floors this week, the local market participants seemed to be channeling chaotic sentiments in the following two sessions. Consequently, the benchmark index gained only 288 points (net) as compared to last week, and closed at approximately 34,190 points. The gains made during the first three sessions were almost 1,000 points.

Meanwhile, the following economic data was released over the course of last week:

  • Pakistan's non-government sector has borrowed another net sum of Rs.79.32 billion during the week ended June 28, 2019, which brings the cumulative net borrowing for ongoing year to Rs.1014.85 billion.
  • The government of Pakistan has accumulated an additional net debt of Rs.709.31 billion during the week ended June 28, 2019, which brings its total net borrowing for ongoing fiscal year (FY19) to Rs.2.35 trillion.
  • The Asian Development Bank (ADB) has approved a $235 million loan to help develop a bus rapid transit (BRT) system with innovative energy and climate resilience features that will enhance access to quality public transport for people in Karachi, Pakistan’s largest and most populated city.
  • Pakistan's Forex Reserves increased by USD 91.70 Million or 0.64% and the total liquid foreign reserves held by the country stood at USD 14,443.00 Million on Jun 28, 2019.
  • The total deposits in scheduled banks took a leap of 10.7% on a year-on-year basis in June 2019, versus a 10% YoY rise in total advances for the same period.
  • The net purchase of securities during the week ended June 28, 2019 clocked in at Rs.466.68 million, whereas last week, the accounts observed a net sale of Rs.2.61 billion.
  • Pakistan received a sum of $9.76 billion as foreign economic assistance from multiple bilateral and multilateral sources in first eleven months (July-May) of the current fiscal year, against a budget estimate of $9.69 billion for the whole year.
  • Oil Marketing Companies sold nearly 1,354 thousand tons of petroleum products during the month of June-2019, registering a decline of 19% as compared to May-2019, where the total sales stood at 1,678 thousand tons.
  • The total money supply circulating within the economy in April 2019 has been recorded at around Rs.20.51 trillion
  • Pakistan's Yearly Inflation rate in June 2019 was 8.89 percent compared to 9.11 percent in May 2018 and 5.21 percent in June 2018. The July-June average inflation is 7.32 percent compared to 3.92 percent from the corresponding period last year.
  • The country's domestic production of crude oil has witnessed around 12. 8 percent increase during July-March of last fiscal year.
  • The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.03% during the week ended Jun 27, 2019 while the SPI increased by 11.83% compared to the corresponding period from last year.

The various economic and policy-oriented developments that took place during the departed week include:

  • On Friday, The Asian Development Bank (ADB) approved a $235 million loan to help develop a bus rapid transit (BRT) system with innovative energy and climate resilience features that will enhance access to quality public transport for people in Karachi.
  • Meanwhile, the same day, National Saving Scheme recorded another appreciation in rates of return for various saving certificates.
  • On Thursday, Pakistan’s advisor to Prime Minister on Finance, Revenue and Economic Affairs, Mr. Hafeez Shaikh announced at a press conference that the first tranche of $1 billion under the IMF EFF program will be received in 4 days, i.e. by July 8, 2019.
  • On Wednesday, The State Bank of Pakistan conducted an auction in which it picked up Rs.114.119 Billion for 3 months. Auction target was Rs.600 Billion against a maturing amount of Rs. 455.247 Billion, showing an additional funding requirement of Rs.144.753 Billion.
  • Meanwhile, the adviser to Prime Minister on Commerce, textile, Industries and Investment, Abdul Razak Dawood on Wednesday directed that the prices of fertilizer would not be increased until the budget for fiscal year 2019-20 is passed and the impact on fertilizer industry is worked out in a comprehensive manner.
  • On Tuesday, FBR strongly rebutted the perception that rate of tax has been changed in the Financial Budget-2019 for the token payment and registration of cars.
  • On the upside, Federal government on Tuesday unveiled Rs309 billion ambitious Agriculture Emergency Programme to boost local production, reduce dependence on imports, improve lives of poor farmers and lead the country towards sustainable development.
  • As per the press release issued by Saudi embassy in Islamabad on Monday, Pakistan will start receiving monthly oil supplies worth 275 million dollars from Saudi Arabia on deferred payments.
  • On Monday, Advisor to Prime Minister on Finance Dr. Abdul Hafeez Shaikh said that there was no agreement with International Monetary Fund (IMF) on exchange rate.
  • The same day, government increased the price of electricity by 75 paisa, as against an increase of 1.50 per unit recommended by National Electric Power Regulatory Authority.

 

Copyright Mettis Link News

Posted on: 2019-07-07T12:33:00+05:00

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