The Pakistan Stock Exchange (PSX) commenced the week on a positive note on Monday, though uncertainty prevailed before the announcement of federal budget later in the week. The market showed signs of nervousness throughout the day with panic selling emerging at some point. Investor concern over a crucial meeting with the International Monetary Fund (IMF) on taxes triggered cautious trading.

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

NEC under PM okays Rs2,101 bn outlay: Rs900b for Centre, Rs1201b for provinces approved

ISLAMABAD: The National Economic Council (NEC) Monday approved the macroeconomic framework for Annual Plan 2021-22, also the GDP growth projections for the financial year 2021-22, whereas the proposed growth target of 4.8 percent was approved with sectoral growth targets of 3.5 percent for agriculture, 6.5 percent for industrial sector, and 4.7 percent for the services sector.

https://www.thenews.com.pk/print/846016-nec-under-pm-okays-rs2-101b-outlay-rs900b-for-centre-rs1201b-for-provinces-approved

Annual plan 2021-22: Macroeconomic framework approved by NEC; Sindh CM speaks out on ‘injustices’

ISLAMABAD: A meeting of the National Economic Council (NEC) on Monday approved macroeconomic framework for the next fiscal year with a proposed GDP growth target of 4.8 percent.

https://www.brecorder.com/news/40098550/annual-plan-2021-22-macroeconomic-framework-approved-by-nec-sindh-cm-speaks-out-on-injustices

Final round of talks with IMF: Govt to strive for as much fiscal space as possible

ISLAMABAD: The government’s economic team led by finance minister Shaukat Tarin will hold the final round of talks with the International Monetary Fund (IMF) to bring budgetary measures under the Extended Fund Facility (EFF) scope.

https://www.brecorder.com/news/40098548/final-round-of-talks-with-imf-govt-to-strive-for-as-much-fiscal-space-as-possible

Taxation measures: Govt-IMF deadlock still persists

ISLAMABAD: Pakistan and the IMF have not yet reached agreement on next budgetary targets especially taking additional taxation measures to fetch Rs300 billion, hiking petroleum levy and exact timeframe for increasing electricity tariff.     

 https://www.thenews.com.pk/print/846299-taxation-measures-govt-imf-deadlock-still-persists

Public debt surges 5.61pc in July-April FY2021

KARACHI: Pakistan’s public debt increased by Rs1.971 trillion or 5.61 percent in 10 months of the current fiscal year as the government borrowed heavily to fund the budget deficit and the Covid-related expenditure needs. Higher interest payments also contributed to the rise in the stock of the public debt.

https://www.thenews.com.pk/print/846067-public-debt-surges-5-61pc-in-july-april-fy2021

Coronavirus positivity ratio drops to 3.02pc

ISLAMABAD: The national coronavirus positivity ratio has dropped to 3.02 percent in Pakistan as the country conducted 49,285 tests of which 1,490 returned positive, the National Command and Operation Centre (NCOC) said.

https://epaper.brecorder.com/2021/06/08/2-page/888930-news.html

Govt to strive for as much fiscal space as possible

ISLAMABAD: The government’s economic team led by finance minister Shaukat Tarin will hold the final round of talks with the International Monetary Fund (IMF) to bring budgetary measures under the Extended Fund Facility (EFF) scope.

https://epaper.brecorder.com/2021/06/08/1-page/888919-news.html

NA passes 10 key bills

ISLAMABAD: The National Assembly, on Monday, before presenting Budget-2021-22 in the house passed as many as 10 bills, including ‘’The Privatization Commission (Amendment) Bill, 2020”, “The Loans for Agricultural, Commercial and Industrial Purposes (Amendment) Bill, 2019”, and “The Hyderabad Institute for Technical and Management Science Bill, 2021”.

https://www.brecorder.com/news/40098551/na-passes-10-key-bills

SBP plans clean loan scheme for cottage industry

LAHORE: The State Bank of Pakistan (SBP) has planned a clean loan scheme for cottage industry for up to Rs10 million financing, the governor said and suggested a likely resumption in concessionary loans for machinery imports.

https://www.thenews.com.pk/print/846066-sbp-plans-clean-loan-scheme-for-cottage-industry

300 units’ consumption in April ’21; Nepra approves Rs4.4bn refund to Discos’ consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Monday approved a refund of Rs 4.4 billion @ paisa 44 per unit, to the consumers of Discos using above 300 units in April 2021 under monthly fuel adjustment mechanism.

https://epaper.brecorder.com/2021/06/08/3-page/888939-news.html

Domestic consumers using over 700 units; Nepra to allow levy of Rs1.25/unit surcharge

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has agreed in principle to allow federal government to impose a surcharge of up to Rs 1.25 per unit on domestic consumers using over 700 units and other categories of commercial and industrial consumers aimed at cross subsidizing other domestic consumers as “special arrangement in special circumstances.”

https://epaper.brecorder.com/2021/06/08/1-page/888923-news.html

Rs182.4bn for 92 hydropower and water projects earmarked in PSDP

ISLAMABAD: The Federal Government has reportedly earmarked Rs 182.4 billion for 92 hydropower and water projects in Public Sector Development Program (PSDP) for the fiscal year 2021-22, official sources told Business Recorder. Out of this amount Rs 170 billion is allocation in the PSDP whereas Rs 12.4 billion will be foreign aid. An amount of Rs 174 billion is throw-away and to be available from July 1, 2021.

https://epaper.brecorder.com/2021/06/08/10-page/888960-news.html

India seeks to harm Pakistan’s position in basmati markets

LAHORE: From biryani to pilau, Pakistan and India’s shared culinary landscape is defined by basmati, a distinctive long-grain rice now at the center of the latest tussle between the bitter rivals. India has applied for an exclusive trademark that would grant it sole ownership of the basmati title in the European Union, setting off a dispute that could deal a major blow to Pakistan’s position in a vital export market.

https://epaper.brecorder.com/2021/06/08/1-page/888917-news.htm