Daily News Briefing: 17-6-2020

First steroid drug hailed as major breakthrough in Covid-19 treatment: Britain will immediately start giving dexamethasone to coronavirus patients, after a trial showed the steroid saved the lives of one third of the gravest cases, Health Secretary Matt Hancock said Tuesday.(The News) PIA seeks Rs3.2b to pay interest on loans: Pakistan International Airlines (PIA) has sought allocation of Rs3.2 billion worth of additional funds, which will help it pay mark-up on loans.(Tribune) Hafeez links GDP, revenue targets to Covid-19 conduct: Dr Abdul Hafeez Shaikh on Tuesday stated achieving the revenue target of Rs4.9 trillion and the GDP growth rate of two percent in the next fiscal year 2020-2021 would depend on the fallout from the Covid-19 pandemic.(Business Recorder) ECC likely to grant approval to allocation of funds: The Economic Coordination Committee (ECC) of the Cabinet is likely to grant approval to allocation of funds for media campaigns on the Covid-19 on the request of Information and Broadcasting, and the government's cash support for the PIAC mark-up.(Business Recorder) Govt unlikely to extend subsidy on urea: The government is unlikely to extend subsidy on urea due to lack of implementation mechanism at least in three provinces.(Business Recorder) Oil imports dip 74pc to three-month low: Pakistan’s oil imports plunged 73.55 per cent year-on-year to $326.75 million in May, hitting the lowest level since March when government-imposed lockdown to curtail the rising coronavirus cases in the country.(Dawn) Textile exports tumble 36.5pc in May: Pakistan’s textile and clothing exports tumbled for the third consecutive month in May falling 36.5 per cent year-on-year to $751.128 million compared to $1.185 billion in the corresponding month of last year, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.(Dawn) Pakistan's automobile sector demands tax reduction: The automobile sector, which is struggling to restore its activities amid the spread of Covid-19, has requested the government to slash taxes in the Finance Bill 2020.(Tribune) Bank loans worth Rs2.5 trillion at risk: Bank loans worth over Rs2.5 trillion at risk with decreasing resilience of small banks and mounting payment pressure on insurance firms while possibly denting the country’s exports by around 30%, the central bank reported.(Tribune) PTI govt asked to review budget proposals: Readymade and unstitched cloth merchants have expressed resentment over the federal budget for 2020-21 and have suggested a review of budget proposals along with recommendations given by textile sector stockholders.(Tribune) Stock market gains 194 points: The Pakistan Stock Exchange (PSX) Tuesday turned around and witnessed bullish trend as KSE 100 index closed at 34,019.12 points as compared to 33,824.51 points on the last working day, with positive change of 194.61 points (0.58 per cent).(Nation) GLOBAL MARKETS-Stocks, dollar gain on U.S. retail sales, drug trial: A record rebound in U.S. retail sales, fresh support from the Federal Reserve and Bank of Japan, and upbeat trial results for a COVID-19 treatment boosted risk appetite on Tuesday, driving global equity markets higher and strengthening the dollar.(Reuters) DATE: 16-JUNE-2020 FIPI PKR (258,564,544) FIPI DOLLAR (1,567,057) (NCCPL) From: Float Securities (Pvt.) Ltd. TREC Holder: Pakistan Stock Exchange Ltd (PSX) (Formerly Karachi Stock Exchange & Lahore Stock Exchange) Room: 59, 1st Floor PSX Main Building Pakistan Stock Exchange, Karachi. Tel; 021-32400325, 32400329 www.floatsecurities.com.pk Disclaimer: We do not issue any research report but only circulate a daily news briefing comprising of the newspaper article by mentioning adequate newspaper sourcing and references.

Daily News Briefing: 12-6-2020

Covid-19 inflicts Rs3trn loss on economy: Hafeez; The government has officially acknowledged that coronavirus has inflicted a loss of Rs3 trillion on the economy so far with 3 percent to 3.5 percent hit to the GDP and the severity of the pandemic on export and remittance will be more in the months ahead. (Business Recorder) Ogra holds six OMCs responsible for petroleum shortage; The Oil and Gas Regulatory Authority (Ogra) on Thursday held six major oil marketing companies (OMCs) responsible for petroleum shortage across the country and imposed on them a cumulative fine of Rs40 million. (Dawn) What to Watch in Pakistan’s Budget Amid Coronavirus Pandemic; Pakistan’s annual budget is a chance for Prime Minister to revisit his government’s spending priorities to help an economy assailed by one crisis after another. The spending plan, will be a tough balancing act of reviving economic growth without depleting the coffers. (Bloomberg) Hafeez Shaikh presents Pakistan Economic Survey 2019-20; Shaikh highlighted the fragile state of the economy, which was ravaged considerably by the COVID-19 pandemic in the last quarter of the year. Shaikh revealed that the GDP is expected to contract 0.38% in FY 2020 despite 2.67% growth in the agricultural sector, as the industrial and services sectors see growth of -2.64% and -0.59% respectively this year. (The News) Corrective measures jolt Pakistan’s manufacturing sector; The much-needed corrective measures taken to fix the faltering economy; rupee depreciation, hike in interest rate, raising electricity prices, and lately the lockdown, have badly hit the large-scale manufacturing (LSM) sector with major contraction in automobile, textile, petroleum, wood and electronic production in the ongoing fiscal year. (Tribune) Inflation to fall further in next fiscal year; With falling international commodity prices, the government on Thursday said the annual inflation in the outgoing fiscal year will ease to 10.7 per cent, down from the earlier projection of 11.8pc. (Dawn) SBP reserves drop by $266mn to $10.1bn; The net foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $266 million to $10.096 billion, during the week ending June 5, 2020, according to data released by the central bank (Profit Today). Tax exemptions, concessions cost govt PKR1,150bn: The total tax exemptions and concessions to various businesses, sectors, lobbies/groups, investors and Chinese imports have cost the government PKR1,149.95bn during the fiscal year 2019-2020 against PKR972.4bn in 2018-2019, reflecting an increase of PKR177.55bn. (Business Recorder) Despite overall contraction, Pakistan's agri sector grows 2.7%: The agriculture sector – the backbone of national economy and a major source of employment – recorded a significant growth of 2.67% in the outgoing fiscal year 2019-20 compared to a poor 0.58% growth in FY19. The agriculture sector has provided some relief for Pakistan’s economy, which has registered a negative growth for the first time in 68 years. (Tribune) Govt may levy GST on more goods: The federal government may reduce tax rates on low-cost cigarettes but can increase the levy on expensive brands in the next budget and it also plans to increase income tax liabilities of higher income groups. The tax proposals also included imposing 17% general sales tax (GST) at market prices on three-dozen more consumer goods while shifting away from calculating sales tax at factory prices, said sources in the Federal Board of Revenue (FBR). (Tribune) DATE: 11-JUNE-2020 FIPI PKR (281,288,362) FIPI DOLLAR (1,704,777) (NCCPL) From: Float Securities (Pvt.) Ltd. TREC Holder: Pakistan Stock Exchange Ltd (PSX) (Formerly Karachi Stock Exchange & Lahore Stock Exchange) Room: 59, 1st Floor, PSX Main Building Pakistan Stock Exchange, Karachi Tel; 021-32400325, 32400329 www.floatsecurities.com.pk Disclaimer: We do not issue any research report but only circulate a daily news briefing comprising of the newspaper article by mentioning adequate newspaper sourcing and references.

Daily News Briefing: 10-6-2020

News NBP looks to raise capital in Bangladesh operations: The government is likely to allow National Bank of Pakistan (NBP) to increase its capital in Bangladesh operations by remitting USD10.9mn with the conditional plan of partially closing its branches. The Bangladesh operations of NBP had suffered due to non-performing loans despite injection of millions of dollars by previous governments. (Tribune) Upcoming budget: FBR starts reviewing valuation rates of property sector; while granting legal cover to construction package through upcoming Finance Bill 2020-21, the Federal Board of Revenue (FBR) has also started reviewing valuation rates of real estate sector in all major cities of the country on eve of upcoming budget. (The News) 2,000 tariff lines may see duty cuts: The government decided to reduce customs duty on approximately 2,000 tariff lines in the FY2020-21 budget to reduce the cost of doing business. (Dawn) FBR seeks WHT on foreign currency: The Federal Board of Revenue (FBR) has proposed the introduction of 0.6% withholding tax (WHT) on the purchase of foreign currency and has sought to squeeze various expense allowances that industrialists get before computing their taxable income. The proposals have been made to generate an additional PKR40bn in taxes from five measures during fiscal year 2020-21, starting July. (Tribune) SSGC fails to reduce UFG losses: The unaccounted-for-gas (UFG) level of the state-run gas utility has continued to rise, swelling to over 18%, which has translated into Rs25 billion worth of revenue loss, pushing the company towards bankruptcy. The current management and board have been unable to reduce UFG. (Tribune) WHO urges two-week lockdown: The World Health Organisation (WHO) has said Pakistan has been ranked among the top 10 countries in the world reporting the highest number of new cases of Covid-19 and advised the government to enhance daily testing capacity to 50,000 to assess the actual prevalence of coronavirus across the country. While expressing concern over the hasty lifting of restrictions, the WHO in a letter to the four provinces stated Pakistan did not meet any of the prerequisites for opening of the lockdown. (Dawn) Pakistan's economy to perform below earlier estimates country faces oil shortage: The country’s economy was likely to go into the red this fiscal year and would be unable to recover even next year. It forecast a negative GDP growth of -2.6pc for the current fiscal year (2019-20) and -0.2pc during the next (20-21). (Economic Times) Expenditure freeze, revenue target of Rs4.95tr agrees with IMF: An agreement seems to have been reached to freeze the size and expenditures of the federal government in budget 2021, which is set to be announced on June 12. The decision has been made to keep the International Monetary Fund (IMF) programme on track. Informed sources told Dawn that the government’s economic team held a final round of discussions with the IMF late on Tuesday night to fine tune the broad contours of the upcoming budget. Dawn) Fuel pricing on quarterly basis sought: In a rapidly evolving situation, the Petroleum Division on Tuesday moved another summary for immediate switching of fuel pricing to quarterly basis, with immediate effect from June 16 with the first price increase of about Rs9-10 per litre. (Dawn) DATE: 09-JUNE-2020 FIPI PKR (503,466,790) FIPI DOLLAR (3,069,919) (NCCPL) From: Float Securities (Pvt.) Ltd. TREC Holder: Pakistan Stock Exchange Ltd (PSX) (Formerly Karachi Stock Exchange & Lahore Stock Exchange) Room: 59, 1st Floor, PSX Main Buildin Pakistan Stock Exchange, Karachi. Tel; 021-32400325, 32400329 www.floatsecurities.com.pk Disclaimer: We do not issue any research report but only circulate a daily news briefing comprising of the newspaper article by mentioning adequate newspaper sourcing and references.