Weekly Economic Roundup

July 05, 2020 (MLN): A brief account of the latest financial data releases and economic developments over the course of the week is highlighted below:

  • The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 2.29% during the week ended Jul 02, 2020 while the SPI increased by 9.77% compared to the corresponding period from last year.

  • Pakistan's trade deficit for 12 months (July-June) FY20 was USD 23.18 billion compared to a deficit of USD 31.81 billion from the corresponding period from FY19.

  • Pakistan's Yearly Inflation Rate (New Base 2015-16) in June 2020 was 8.59 percent compared to 8.22 percent in May 2020 and 8.000 percent in June 2019.

  • Foreign companies operating in Pakistan repatriated $20.2 million in profit and dividends on investments in the country during the month of May’20 which was 89% lower than the profits repatriated in the previous month and 95% lower than that of repatriated in May’19.

  • Foreign investors exhibited a profound interest in local equity markets during the departed week, as the purchase of securities via Specially Convertible Rupee Accounts (SCRA) stood at Rs.20.6 billion, which is 108.5 percent higher than the prior week.

  • The overall volumetric sales of Oil and Marketing Companies (OMCs) in Pakistan ameliorated by 9% MoM in June 2020 to stand at 1.61 MTs against 1.48 MTs in May 2020.

  • Pakistan's Forex Reserves increased by USD 1,240.90 Million or 7.42% and the total liquid foreign reserves held by the country stood at USD 17,971.00 Million on Jun 26, 2020.

  • Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 2.93 percent in May 2020 to a provisional value of 97.21 from the revised value of 94.44 in April 2020.

  • State Bank of Pakistan (SBP) has received $1.3 billion as GOP loan disbursements from Chinese Banks this week.

  • The Central Directorate of National Savings (CDNS) has achieved its annual collection of the net annual target of Rs 377 billion in the current fiscal year by June 30.

  • The government has raised profit rates on national saving certificates by smaller margins with effect from July 2, 2020.

  • The Competition Commission of Pakistan (CCP), in the fiscal year 2019-20, has processed and granted approval to 59 Merger & Acquisition applications against the annual target of 50, showing the CCP’s promising performance to facilitate the local and foreign investors despite the limitations caused by COVID-19 pandemic.

  • The federal government on Thursday extended the date for encashment of Rs 40,000 denomination national prize bonds for another six months. Now, Rs 40000 prize bonds could be converted till December 31, 2020.

  • The Federal Board of Revenue (FBR) has successfully achieved a target of Rs. 4 trillion in terms of gross revenue despite coronavirus struggles.

  • Sindh Revenue Board collected total revenue of Rs105.9 billion includes record receipts of Rs 100.3 billion of Sindh sales tax during 2019-20, which reflects a growth of 5.6% despite the general economic slowdown during the year, and the fall out of COVID-19 pandemic in the last four months of the year.

  • Government securities attracted a record of $3.812 billion in overseas cash during the fiscal year 2019-20, out of which around $3.1 billion has flown out of Pakistan’s debt market, indicating that international investors now hold less than $700 million worth of investment in T-bills and PIBs.

  • Pakistan Rupee closed FY20 at 168.0506 against USD compared to 160.0521 in FY19. Overall the dollar appreciated by 5% in FY20 compared to 31.73% in FY19.

  • The household consumption expenditure considers as a major proxy to assess peoples’ welfare in a country. Pakistan’s average monthly household expenditures have increased by 14% to Rs 37,159 thousand in 2018-19 as compared to Rs 32,578 in 2015-16, revealed Household Integrated Expenditure Survey (HIES) 2018-19, published by Pakistan Bureau of Statistics (PBS).

  • HIES 2018-19 shows that the paid employee remained the same with 54.80% being the highest followed by Self-employed 24.70% and contributing family helper with 17.39%.

  • Finance Division has directed financial institutions to discontinue investment in all National Savings Schemes with effect from July 1, 2020, on the recommendation of the State Bank of Pakistan. 

  • SBP has decided to extend the Rozgar scheme for another three months and, in collaboration with the Government of Pakistan, has increased the risk coverage for SMEs under the scheme.

  • The non-government sector has retired a net sum of Rs.23.1 billion during the week ended June 19, 2020, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.277.92 billion. The net borrowing as of prior week was recorded at Rs.301.02 billion.

  • The government of Pakistan has acquired an additional debt of Rs.206.68 billion during the week ended June 19, 2020, which brings its total net borrowing for ongoing fiscal year 2020 to Rs.2228.41 billion. As of prior week, the government had borrowed a net sum of Rs.2021.73 billion.

  • Pakistan has received $7.451 billion foreign assistance during Jul-May FY20 from bilateral and multilateral development partners, foreign commercial borrowing, and commodity financing from Islamic Development Bank and Saudi Arabia to restructure its economy and finance its development projects.

  • Pakistan witnessed a net inflow of $31.42 million by foreign investors via Special Convertible Rupee Account (SCRA) on June 25, 2020.

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Posted on: 2020-07-05T12:52:00+05:00