June 28, 2020 (MLN): The country's financial picture is brought to light with the release of economic and financial data during the week.
The government revised and increased the prices of various petroleum products by 26.59 percent to 66.09 percent per liter effective from June 26, 2020.
The major importable goods during 11MFY20 were Petroleum, Agriculture Products & Chemicals, Machinery and Food as they accounted for 23%, 17%, 14% and 11% of the total import respectively.
The U.S.A remained the top export destination for Pakistan, with $237 million worth of shipments in the month of May, despite a decline of 6% MoM and 33% YoY in export growth. This contraction in export earnings shows the impact of coronavirus outbreak on demand.
According to the data issued by the State Bank of Pakistan (SBP) on export receipts by commodities, the Textile products remained the major exportable goods for Pakistan as it accounted for 56% of the total exports during the period. The overall exports of the textile group witnessed a decline of 6% YoY to $11.78 billion.
The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.15% during the week ended Jun 25, 2020 while the SPI increased by 10.21% compared to the corresponding period from last year.
State Bank of Pakistan (SBP) has received $500 million from the Asian Infrastructure Investment Bank (AIIB) on 25th June 2020.
Pakistan signs $2.4b agreement for 1,124MW Kohala Hydropower Project which is the biggest ever investment on a single project in the country.
Pakistan's Forex Reserves decreased by USD 45.20 Million or 0.27% and the total liquid foreign reserves held by the country stood at USD 16,730.10 Million on Jun 19, 2020.
The net purchase of securities via Specially Convertible Rupee Accounts (SCRA) for the week ended June 19, 2020 clocked in at Rs. 1.72 billion, whereas last week, the accounts observed a net sale of Rs. 1.22 billion.
At its meeting on 25th June 2020, the Monetary Policy Committee (MPC) decided to reduce the policy rate by 100 basis points to 7 percent.
Pakistan has received USD 1.5 billion in COVID 19 and development policy-related assistance from the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank during this week.
The government has so far released funds amounting to Rs287.289 million to execute seven petroleum projects under the Public Sector Development Programme (PSDP 2019-20) against the total allocation of Rs304.997 million.
Pakistan's Current Account Deficit (CAD) during the month of May 2020 has shown a surplus of $13 million, compared to a deficit of $530 million reported in the previous month i.e. April 2020.
Pakistan’s trade deficit in services stood at $2.7 billion during the first eleven months of Financial Year 2020, signifying a fall of 42%, as compared to the same period of last year.
The State Bank of Pakistan (SBP) has received USD 1 billion on June 24, 2020, with USD 500 million each from ADB and World Bank.
The total DAP offtake during the month of May 2020 was nearly 61 thousand tonnes, showing a decline of 71.4 percent over May 2019.
The overall urea offtake during the month of May 2020 was about 240 thousand tonnes, showing a decrease of 59.6 percent over the same month of the previous year.
The non-government sector has retired a net sum of Rs.38.16 billion during the week ended June 12, 2020, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.301.02 billion. The net borrowing as of prior week was recorded at Rs.339.18 billion.
The government of Pakistan has acquired an additional debt of Rs.73.08 billion during the week ended June 12, 2020, which brings its total net borrowing for the ongoing fiscal year 2020 to Rs.2021.73 billion. As of prior week, the government had borrowed a net sum of Rs.1948.65 billion.
Pakistan's outstanding debts as of May 31, 2020 stand at Rs.22.71 trillion whereas total debt at the end of the prior month was Rs.21.89 trillion, meaning that around Rs.820.97 billion were additionally borrowed during this month alone.
The Banking sector spread for May 2020 scaled up by 47 basis points (bps) over the month which brings its latest value to 5.65% as compared to the prior month's spread of 5.18%. On the other hand, the spread has diminished by 13 bps as compared to the same period last year.
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