Weekly Roundup Of Pakistan's Economy

The departed week remain satisfactory from an economic perspective. The highlights of some of the important economic events and statistical releases over the week are:

• The stock market in Pakistan remained volatile this past week, as the benchmark KSE - 100 index made a net loss of 1,142 points, slipping below the two touchstones of 38,000 points and 37,000 points. The index currently stands closed at 37,167 points. The main triggers that drove the index backwards mainly comprised of several political as well as economic hurdles such as the outcome of Nawaz Sharif and Asif Zardari's graft cases, investors’ concern over steep IMF conditions as well as the continuous decline in international oil prices

• The federal cabinet on Thursday approved the issuance of Panda Bond in Yuan in order to finance its widening trade deficit with China.

• The federal cabinet also approved the appointment of SECP’s Commissioner Farrukh H. Sabzwari as Chairman of the Securities and Exchange Commission of Pakistan (SECP).

• Qatar has opened "Visa Facilitation Center" in Islamabad to facilitate Pakistani work force in getting visa.

• Hub Power Company Ltd (HUBC) in a notice to the exchange announced that the company and China Power International Pakistan Ltd (CPIPIL) have agreed the valuation and HUBCO now intends to increase its shareholding in China Power Hub Power Generation Company (Private) Ltd (CPHGC), through its wholly owned subsidiary Hub Power Holdings Ltd, from 26% to 47.5%. The increase in shareholding is subject to corporate and regulatory approval in China and Pakistan.

• The National Bank of Pakistan (NBP) and Bank Al Jazira have agreed to work together to increase remittances from the Saudi Arabia through legal channel.

• The Board of Directors of Pak Suzuki Motor Company Limited (PSMCL) recommended to increase the Authorized Share Capital of the company from Rs. 1,500 million to Rs. 5,000 million, subject to the approval by the shareholders in the forthcoming extraordinary general meeting of the company.

• Textile industry urged the government to settle more than Rs100bn in outstanding sales tax refunds, which are causing serious liquidity crunch for manufacturers and exporters.

• According to the data released by National Fertilizer Development Centre (NDFC), Urea and di-ammonium phosphate (DAP) sales have dropped in the month of November mainly because of high rates.

• The Pakistan Tehreek-e-Insaf government reiterated its plan to revise the existing free trade agreements (FTAs) with China, on the plea that these had proved counterproductive for the country’s industrial sector.

• The government decided to ensure “uninterrupted” supply of gas to domestic consumers, commercial units and zero-rated industries this winter and impose a ban on import of furnace oil.

• According to data released by the State Bank of Pakistan, the total liquid foreign reserves held by the country stood at US$14,017.8 million on December 21, 2018.

• According to data released by the Pakistan Bureau of Statistics (PBS), the weekly SPI for the combined group increased by 0.19 percent compared to the previous week (Dec 20, 2018) and by 5.52 percent from the corresponding period from last year (Dec 28, 2017).

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