The market continues to climb higher, inching past the 48k mark on positive expectations over the upcoming federal budget. The automobile sector continued to perform on expectations of higher vehicle sales. The cement sector also found support as manufacturers were able to further increase cement prices amidst rising demand for the commodity.

KASB Market View

Expectations of the upcoming federal budget will likely dictate the index’s momentum in the coming trading sessions. A growth-centric projection will likely pave way for cyclical stocks to outperform including cements, steels, OMCs and automobiles. Moreover, the IPPs payment is likely to reinvigorate the depressed sentiments of the sector, allowing it to garner investor interest.

National News

Govt pays Rs89bn to 20 IPPs as first installment

The government on Friday completed Rs89.2 billion transactions as the first installment of payments to 20 independent power producers (IPPSs) from the Rs403bn committed under a settlement agreement with 46 IPPs signed in February.

Govt pays Rs89bn to 20 IPPs as first installment

The government on Friday completed Rs89.2 billion transactions as the first installment of payments to 20 independent power producers (IPPSs) from the Rs403bn committed under a settlement agreement with 46 IPPs signed in February.

Pakistan’s rating on FATF recommendations gets better

The Asia Pacific Group (APG) on Money Laundering has improved Pakistan’s rating on 21 of the 40 technical recommendations of the Financial Action Task Force (FATF) against money laundering and terror financing, but retained it on ‘Enhanced Follow-up’ for sufficient outstanding requirements.

Pakistan, IMF to discuss taxes next week

Pakistan and the International Monetary Fund (IMF) are working to bridge their differences over quantum of new taxation measures amid the government’s willingness to increase sales tax rate on fertilizer to 10% and slap 17% tax on import of crude oil to generate Rs115 billion.

President summons NA on Monday for budget session

President Dr Arif Alvi on Friday summoned the National Assembly to meet in the Parliament House on June 7 (Monday). During the session the budget for the year 2021-22 will be presented on June 11 (Friday).

National development outlay of Rs2,101 bn to be approved on Monday

With proposed allocation of Rs62 billion for CPEC projects, including a meager allocation of just Rs7 billion for much-awaited Mainline (ML-1), the National Economic Council (NEC) is all set to approve the national development outlay of Rs2,101 billion for the next budget on coming Monday.

Cement sales up 41pc despite increase in price

The month of May proved to be a good one for all cement manufacturers as local sales jumped 41 per cent in spite of the long Eid-ul-Fitr holidays and price increase by manufacturers in the North region.

RDA inflows increase to $1.25bn

Pakistan has received $1.25 billion in Roshan Digital Accounts (RDA) since its beginning in September 2020 while the inflow has been increasing faster than the initial first quarter.

Despite hurdles, FBR issues refunds of Rs250b

Despite some minor system-related discrepancies, the Federal Board of Revenue (FBR) has paid unprecedented refund claims worth Rs250 billion during this year, claimed FBR Inland Revenue (Operations) Member Dr Muhammad Ashfaq Ahmad.

ECNEC approves 12 projects worth Rs327bln

The Executive Committee of the National Economic Council (ECNEC) in its meeting on Friday approved 12 development projects worth Rs326.703 billion with instructions to further rationalize the cost of Pak University of Engineering and Emerging Technologies (PUEET).

Cotton price hits 11-year high as farmers switch to other crops

Once again the cotton cultivation area has dropped sharply in both the cotton-producing provinces, creating fear of a major decline in production, which has pushed up the initial cotton trading price to an 11-year high.

Export promotion scheme: FBR for allowing 30pc local sales

The Federal Board of Revenue (FBR) has proposed to allow local sales of 30 percent of the finished products required to be exported after procuring duties and taxes free inputs under the unified export promotion scheme.

Berthing of oil ships: Byco seeks to connect its SPM with white oil pipeline

Byco Petroleum has come up with a proposal to connect its Single Point Mooring (SPM) with the white oil pipeline via Asia Petroleum Limited (APL) pipeline for berthing of oil ships.

Sindh makes vaccinations mandatory for traders, extends business hours till 8pm

The Sindh government announced extending business hours till 8pm from Monday (June 7), saying all shops will have to maintain a vaccination certificate of the staff.

13 sectors’ exports post double-digit growth

Pakistan’s exports of 13 sectors including value-added textiles posted double-digit growth in the 11 months of current fiscal year (11MFY21) compared to the same period a year ago, data compiled by the Ministry of Commerce showed on Friday.

Companies registration more than doubles in May

Registration of companies with the Securities and Exchange Commission of Pakistan (SECP) more than doubled in May over the same month a year earlier with 1,597 new businesses registered during the month, the SECP said on Friday.

End of gas subsidies to help develop an efficient LNG market: SBP

The State Bank of Pakistan (SBP) has recommended to the government to eliminate gas subsidies to ward off formation of circular debt and encourage greater participation of the private sector in LNG trade to develop an efficient LNG market to cope with the growing gas shortages in the country.