The previous trading sessions have benefitted from the government’s focus on long-term growth, reflecting the market’s performance as the KSE-100 index inched up 2.1% WoW to revert back to the 45k mark. Additional talks of delaying the power tariff and clearing the circular debt also added to the index’s momentum.

KASB Market View

The addition of TRG and LUCK to the MSCI small-cap and standard index, respectively, is expected to increase the market’s sentiments particularly in the 2 mentioned stocks. Moreover, we expect the energy sector stocks to perform post the approval of the circular debt transaction. Moreover, COVID-19 cases becoming increasingly under control may also reinvigorate the broader market sentiment. We continue recommend building positions in cyclical stocks including cements and automobiles.

National News

MSCI decision to fuel inflows at PSX

Morgan Stanley Capital International (MSCI) – which provides research-based indexes and analytics to global stock market investors – has conducted a semi-annual review to recompose its global indexes on Wednesday.

https://tribune.com.pk/story/2299663/msci-decision-to-fuel-inflows-at-psx

Pakistan to spend $6b to boost growth: Tarin

Finance Minister Shaukat Tarin has said the government is planning to boost spending on large infrastructure projects by as much as 40% to create jobs and foster productivity in an economy crippled by the ongoing Covid-19 pandemic.

https://tribune.com.pk/story/2298844/pakistan-to-spend-6b-to-boost-growth-tarin

Pakistan submits compliance report to FATF

Pakistan has submitted its compliance report on implementation of the remaining three key out of total 27 action plans to the global money laundering watchdog Financial Action Task Force (FATF) to come out of its grey list, official sources said on Thursday.

https://www.thenews.com.pk/print/831461-pakistan-submits-compliance-report-to-fatf

Circular debt also hits CPEC projects

The China Pakistan Economic Corridor (CPEC) power projects are also hit by the circular debt and the government has not been able to clear Rs188 billion due payments in breach of a bilateral energy framework agreement.

https://tribune.com.pk/story/2299004/circular-debt-also-hits-cpec-projects

PIBs rates cut again by up to 65bps

The most attractive long-term domestic papers — Pakistan Investment Bonds (PIBs) — witnessed another significant cut up to 65 basis points in the auction held on Thursday.

https://www.dawn.com/news/1622469/pibs-rates-cut-again-by-up-to-65bps

RLNG price for May fixed at $10.25

The Oil & Gas Regulatory Authority (Ogra) on Friday set average price of $10.25 per million British thermal unit (mmBtu) for distribution of regasified liquefied natural Gas (RLNG) to their customers during the current month.

https://www.dawn.com/news/1622636/rlng-price-for-may-fixed-at-1025

Rs340bn projects registered under construction package

As many as 1,083 projects worth Rs340 billion have been registered with the Federal Board of Revenue (FBR) along with another 292 tentative projects with an indicative investment of Rs43bn under the prime minister’s package for the construction industry.

https://www.dawn.com/news/1623399/rs340bn-projects-registered-under-construction-package

Private sector’s credit offtake surges 43pc in 10 months

Banks disbursed Rs454.5 billion in loans to private businesses during the first 10 months of the current fiscal year, up around 43 percent as the cost of borrowing has been reduced to spur economic growth, the central bank’s latest data showed.

https://www.thenews.com.pk/print/833965-private-sector-s-credit-offtake-surges-43pc-in-10-months

China reluctant to approve $6b ML-I loan

Expressing concern over Pakistan’s growing debt, China has shown reluctance to approve $6 billion loan for the Mainline-I (ML-I) railway track — the single largest project under the China-Pakistan Economic Corridor — according to the record of a meeting and senior Pakistani officials.

https://tribune.com.pk/story/2298879/china-reluctant-to-approve-6b-ml-i-loan

LSM sector posts 9% growth

Big industries posted 9% growth during the first nine months of current fiscal year but the index slid for the second successive month, suggesting an uneven growth momentum due to disruptions caused by the pandemic.

https://tribune.com.pk/story/2298890/lsm-sector-posts-9-growth

Regulator allows 90-paisa base tariff hike to Discos

The National Electric Power Regulatory Authority (Nepra) on Friday allowed 90 paisa per unit increase in power tariff of all the distribution companies (Discos) of ex-Wapda under quarterly re-basing of tariff for the period July 2020 to December 2020.

https://www.dawn.com/news/1622635/regulator-allows-90-paisa-base-tariff-hike-to-discos

Saudi Arabia to extend $500m long-term concessional loan

Saudi Arabia is to extend long-term concessional loan of $ 500 million (Saudi Riyal, 1.875 billion) to Pakistan for different projects, official sources told Business Recorder.

https://www.brecorder.com/news/40091029/saudi-arabia-to-extend-500m-long-term-concessional-loan

‘Manipulation’ in Drug Pricing Policy 2018: TIP draws attention of Dr Faisal towards issue

Transparency International Pakistan (TIP) has drawn the attention of Dr. Faisal Sultan, special assistant to the prime minister on health, towards what the TIP said manipulation in Drug Pricing Policy 2018 by the Drug Regulatory Authority of Pakistan (DRAP)’s Costing and Pricing Directorate by hiding the breakdown of markup/factor of 245% to 355% in the policy for locally made drugs in formulae for hardship cases price, which was 70% in Drug Pricing Policy 2018, causing an additional cost of Rs25 billion to the people.

https://www.brecorder.com/news/40090993/manipulation-in-drug-pricing-policy-2018-tip-draws-attention-of-dr-faisal-towards-issue

Nine-month fiscal deficit widens to 3.6pc

The country’s fiscal deficit has increased to 3.6 per cent of gross domestic product (GDP) or Rs1.652 trillion during the first nine months (July-March) of the current fiscal year despite a drastic cut in development, almost static defense expenditure, healthy provincial cash surpluses and record petroleum levy collections.

https://www.dawn.com/news/1622481/nine-month-fiscal-deficit-widens-to-36pc

Chinese firm awarded $355m Tarbela project

The Water and Power Development Authority (Wapda) on Thursday awarded a $354.6 million worth of contract to Power Construction Corporation of China Ltd (PCCCL) for civil works of the 1,530MW Tarbela 5th Extension Hydropower Project after completion of an international competitive bidding process.

https://www.dawn.com/news/1622470/chinese-firm-awarded-355m-tarbela-project

Amazon to add Pakistan to sellers’ list

United States (US) e-commerce giant ‘Amazon’ will add Pakistan to its sellers’ list within a few days, Prime Minister for Commerce and Investment Abdul Razak Dawood said on Thursday

https://www.brecorder.com/news/40090959/amazon-to-add-pakistan-to-sellers-list

Dawood says tariffs on raw materials will be reduced

Prime Minister’s Advisor on Commerce and Invest-ment, Abdul Razak Dawood has said that the government will reduce tariffs on raw materials of textiles, pharmaceuticals, chemicals, dairy, food processing, engineering and footwear etc in the federal budget.

https://www.brecorder.com/news/40091040/dawood-says-tariffs-on-raw-materials-will-be-reduced