July 26, 2020 (MLN): The financial snapshot of the country in full detail is highlighted with the economic and financial data releases over the course of the week.

• The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.21% during the week ended Jul 23, 2020 while the SPI increased by 10.5% compared to the corresponding period from last year.

• Pakistan's Forex Reserves increased by USD 94.70 Million or 0.5% and the total liquid foreign reserves held by the country stood at USD 19,047.30 Million on Jul 17, 2020.

• The State Bank of Pakistan has announced an increase in the Foreign Exchange Exposure Limit (FEEL) assigned to the Authorized Dealers (ADs) up to 25% of their Paid-up Capital (free of losses), based on their share in FX market volumes, with a maximum cap up to PKR 5,000 million.

• Given the number of MPC meetings that have taken place in recent months and actions taken in those meetings, the MPC does not consider it necessary to hold the regular meeting of July 2020. The next regular meeting of the MPC will now be held in September 2020.

• Pakistan has signed loan agreement with World Bank and Asian Development Bank (ADB), amounting to USD 500 million and USD 250 million respectively in Islamabad which would help in shoring up SBP reserves.

• The net sale of securities via Specially Convertible Rupee Accounts (SCRA) for the week ended July 17, 2020 clocked in at Rs. 10.52 billion, which is around Rs.8.72 billion lower than last week's numbers.

• The government under its Agricultural Fiscal Package has approved Rs 1.5 billion sales tax subsidy on locally manufactured tractors in order to promote mechanization in the agriculture sector to enhance per-acre crop output in the country.

• State Bank of Pakistan (SBP) has allowed the disbursement of wages/ salaries for the month of July to be made before Eid-ul-Azha under its Rozgar Scheme.

• The overall DAP offtake during June 2020 was 176 thousand tonnes, showing an increase of 11.5 percent over June, 2019.

• The total Urea offtake during June 2020 was 1165 thousand tonnes, showing an increase of 81.3 percent over June 2019.

• The total nutrients offtake during June, 2020 was about 702 thousand tonnes, which increased by 66.9 percent over June, 2019. Nitrogen offtake increased by 78.3 percent while phosphate offtake increased by 18.7 percent.

• The government has approved Rs 6.861 billion under Agriculture Fiscal Package to provide financial relief in terms of mark-up subsidy on bank loans for the most deserving sub-segment of the farming community.

• The Economic Coordination Committee (ECC) has approved subsidy worth Rs 33 billion for Naya Pakistan Housing Scheme, of which Rs 4.77 billion will be spent this year.

• State Bank of Pakistan (SBP) has enhanced the scope of its Refinance Scheme for Renewable Energy by allowing financing under category III of the scheme to solar and wind-based energy sales companies.

• The Banking sector spread for June 2020 slightly increased by 10 basis points (bps) over the month which brings its latest value to 5.75% as compared to prior month's spread of 5.65%. On the contrary, the spread has reduced by 3 bps as compared to the same period last year.

• The non-government sector borrowed a net sum of Rs. 295.2 billion during the year ended June 30, 2020, which brings the cumulative net borrowing for the fiscal year FY2020 to Rs. 8.36 trillion.

• The government of Pakistan raised a sum of Rs. 2.26 trillion during the year ended June 30, 2020, which brought its cumulative borrowing for the year to Rs. 14.56 trillion, according to the data released by the State Bank of Pakistan.

• The Beijing-backed Asian Infrastructure Investment Bank (AIIB) said it would lend $250 million to Pakistan to help the country deal with the effects of the COVID-19 pandemic.

• The LSMI output decreased by 24.8% during the month of May, 2020, as compared to May, 2019 and increased by 20.50% when compared to April 2020.

• The cement exports of the country witnessed a decrease of 4.52 percent during the FY20, against the exports of the corresponding period of last year.

• Pakistan's Current Account Deficit (CAD) during FY20 has shrunk by 78 percent YoY to $2.96 billion which is 1.1% of GDP, compared to a deficit of $13.43 billion in FY19 which was 4.8% of GDP.

• Pakistan’s trade deficit in services stood at $2.835 billion during the Financial Year 2020, signifying a fall of 43%, as compared to last year.

• Foreign investors purchased Rs.11.1 billion worth of securities during the week ended July 3, 2020, which is nearly 45.9 percent lower than the prior week.

• Pakistan's outstanding debts as of June 30, 2020 stand at a colossal amount of Rs.22.98 trillion whereas total debt at the end of prior month was Rs.22.71 trillion, meaning that around Rs.264.92 billion were additionally borrowed during this month alone.

• Risk-averse foreign investors have once again started selling their holdings in government denominated debt securities particularly T-bills, as net $26.667 million of outflow has been recorded so far this month.

• China has emerged as the top source of foreign direct investment into Pakistan, accounting for over six-fold to $844 million of net FDI inflows in FY20.

• The Power sector has recorded the highest Net FDI of $764.3 million during FY20 compared to the net foreign direct disinvestment of $323.9 million in FY19.

• Mari Petroleum Company Limited (MPCL) has made a gas discovery at its exploratory well Hilal-1, drilled in Mari D&P Lease Area, located in Daharki, District Ghotki, Sindh.

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