March 29, 2020 (MLN): A brief account of the latest financial data releases and economic developments over the course of the week is highlighted below:

• Pakistan's Forex Reserves decreased by USD 637.90 Million or 3.4% and the total liquid foreign reserves held by the country stood at USD 18,105.10 Million on Mar 20, 2020.

• The Banking sector spread for February 2020 decreased by 33 basis points (bps) over the month which brings its latest value to 5.37% as compared to the prior month's spread of 5.7%. Likewise, the spread has mitigated by 14 bps as compared to the same period last year.

• The outflow of hot money from the Government’s debt securities has lost its steam on Thursday i.e. March 26, 2020, as only $21.5 million foreign currency flight has been recorded from the local debt market against outflows of $75.89 million in the previous session.

• Another outflow of $75.89 million hot money by foreign investors from Pakistan’s sovereign debt securities (T-bills and PIBs) has been witnessed in yesterday’s session i.e. on March 25, 2020.

• International investors are constantly withdrawing their investment in the domestic sovereign debt Securities due to the growing concerns over COVID-19. On Tuesday, i.e. March 24, 2020, foreigners have pulled back further $94.7 million from T-bills.

• Foreign investors retreated their investments from local equity markets for the week ended March 20, 2020, as the net selling of local securities clocked in at Rs 63.37 billion, i.e. around Rs.90.6 billion lower than last week's numbers.

• 11 wind projects with a cumulative capacity of 660 MW have achieved Financial Closing and are likely to attain commercial operation by December 2021.

• The reduction in prices of petroleum products by Rs 15 per litre to be effective from March 25, 2020 which would be financed through a reduction in Petroleum Development Levy (PDL) as per the statement of Ministry of Finance yesterday.

• Foreign investors continued to exit from Government’s denominated securities particularly T-bills, as it witnessed another outflow of $92.49 million on Friday i.e. March 20, 2020, bringing the total net outflow of foreign currency to arrive at $96.4 million.

• The MPC of the SBP has decided to cut the policy rate by a further 150 basis points to 11 percent.

• The government has disbursed 100 percent development funds of Rs 1.8 billion allocated for preliminary design for up-gradation and rehabilitation of mainline (ML-1) and establishment of the dry port near Havelian under the China Pakistan Economic Corridor (CPEC).

• The Central Directorate of National Savings (CDNS) has achieved a collection net target of Rs157 billion by March, 25 of the fiscal year 2019-20.

• The Central Directorate of National Savings (CDNS) has achieved a collection net target of Rs155 billion by March, 20 of the fiscal year 2019-20.

• According to the data issued by State Bank of Pakistan (SBP) on export receipts by commodities, the textile products remained the major exportable goods for Pakistan as it accounted 55% of the total exports during Jul-Feb FY19, whereas, the share of other Manufactured goods in the country’s total exports was 15% during the period under review.

• Petroleum, Agriculture Products & Chemicals, and Machinery are the commodities that Pakistan imported heavily during Jul-Feb FY20 as they accounted for 24%, 16% and 15% of the total import respectively.

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