【Daily】30 May Brief of Pak BizNews
KSE 100 42,861.5 ▲ 0.75%
KMI 30 69,055.4 ▲ 0.87%
KASB Tech Index 275.8 ▲ 0.94%
KASB Market View
· Inflationary pressures are expected to continue with the potential hike in base tariff by PkR 7-7.5/unit and as well as gas prices by 40-50%. This coupled with higher international oil prices would keep the inflationary reading around 16%-17%.
· Cyclical stocks are expected to remain under pressure. Moreover, with global economic slowdown, we expect textile exports to contract going forward which would put pressure on company’s profits.
Miftah pins hopes on sealing IMF deal by June
The government expects to reach a staff-level agreement with the International Monetary Fund (IMF) next month, Finance Minister Miftah Ismail said on Saturday, a day after the government ended a months-old freeze on fuel prices, reviving hopes that the country can unlock funding.
IMF programme: Raise in base power tariff by Rs7-7.5/unit on the cards
To ensure restoration of the IMF program, a massive increase in electricity base tariff by up to Rs7-7.50 per unit is on the cards within the next 2-3 weeks, which is to be enforced from July 1, 2022, top official sources told The News. “The current average base tariff stands at Rs16.64 per unit, which will go up to Rs24.14 per unit with the expected raise of Rs7-7.50 per unit.”
Rs28bn relief package for country’s poorest
Just a day after hiking fuel prices to meet the demands of the International Monetary Fund (IMF), Prime Minister Shehbaz Sharif announced a relief package worth Rs28 billion for the poorest segments of society, in a televised address to the nation on Friday.
Hike in gas tariff by 40-50pc likely soon
In a bid to restore the $6 billion IMF programme, this time the government is left with no option but to increase the system gas tariff by around 40-50 percent as it is expecting the revenue requirement determination for financial year 2022-23 by OGRA in mid-June, a senior official at the Energy Ministry told The News.
SBP injects Rs1.8tr via 63-day OMO
The State Bank of Pakistan (SBP) on Friday injected Rs1.8 trillion through an Open Market Operation (OMO) into the banking system for 63 days at 13.84 per cent, slightly higher than its policy rate of 13.75pc.
Coming budget: No further burden on salaried class, pensioners, says Miftah
Federal Minister for Finance and Revenues Miftah Ismail has categorically stated that the government would not add to the burden of salaried class and pensioners in the coming budget. “We will not increase the tax on salaried class and pensioners in the coming budget,” Minister for Finance Miftah Ismail said while talking to The News on Friday.
Import ban partially lifted
The government has amended its decision of imposing a ban on luxury items imports, allowing imports of energy savers.
ECC nods Rs62.27bn for PDCs payment
The Economic Coordination Committee (ECC) of the Cabinet on Saturday approved Rs62.27 billion for the reimbursement of price differential claims (PDCs) submitted by the oil industry on account of cheaper sales of petroleum products during the second fortnight of May.
ECC’s nod needed to convert Rs202.8bn OGDCL TFCs into PIBs
Petroleum Division has sought ECC nod to convert Term Finance Certificates (TFCs) of Rs 202.8 billion of Oil and Gas Development Company Limited (OGDCL) owed by Power Holding Private Limited (PHPL) into Pakistan Investment Bonds (PIBs), sources close to Secretary Petroleum told Business Recorder.
ECC okays import of 3m tonnes of wheat
Pre-empting shortage and rising prices, the Economic Coordination Committee (ECC) of the Cabinet on Saturday decided to import two million tonnes of wheat on a government-to-government (G2G) basis, while 1m tonnes through an international tendering process under the existing arrangement.
Power tariff for Karachiites raised by Rs4.83 for March
The National Electric Power Regulatory Authority (Nepra) on Friday notified Rs4.83 per unit additional fuel cost adjustment (FCA) to K-Electric to be charged to consumers for electricity they consumed in March.
Plan to export 500,000 tonnes of sugar
The government on Friday decided to export 500,000 tonnes of sugar.According to the Finance Ministry, on Friday evening, Federal Minister for Finance and Revenue Miftah Ismail called Pakistan Sugar Mills Association’s central Chairman Muhammad Zaka Ashraf Chaudhry for meeting on a short notice, who appeared along with PSMA Secretary General Dr Hassan Iqbal and other advisers.
Commodities and Currency: 1-Day Change