September 8, 2019 (MLN): The departed week witnessed several important developments that have a direct impact on the economic operations of Pakistan.
What caught the market’s attention was the government’s decision to scrap the Gas Infrastructure Development Cess (GIDC) act to maintain transparency and good governance. In this regard, the federal government approached the Supreme Court of Pakistan on Friday for urgent hearing over so the matter should be decided according to the law and Constitution.
On the other hand, Wednesday saw the National Electric Power Regulatory Authority (NEPRA)'s approval on Rs.1.78 per unit increase in power tariff for July under monthly fuel adjustment formula.
Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet approved separate proposals for simplification of tax regime for non-resident companies investing in the local debt market, revision of cess rate on tobacco for the year 2019-20 and payment of the outstanding amount of Rs.5.85 billion as a gas subsidy to the fertilizer industry.
Furthermore, Moody’s Investor Service completed its periodic review of issuers where they reiterated that the credit profile of Pakistan (issuer rating B3) reflects the country's “Moderate (+)” economic strength, which is underpinned by the relatively robust GDP growth potential and large scale of the economy.
On Tuesday, the State Bank of Pakistan (SBP) set Rs.5.125 trillion as the auction target for Market Treasury Bills (MTB) and Pakistan Investment Bonds (PIB) in the next three months (Sep – Nov 2019).
