Selling pressure gripped the Pakistan Stock Exchange on Tuesday following a two-day rally and pushed the KSE-100 index down by 155 points as the levy of global minimum tax on technology giants weighed on investors’ sentiment. In addition, the upcoming budget announcement kept playing on investors’ mind and they treaded cautiously while making investment decisions. An overnight dip in global crude oil prices hit the two local oil sectors.

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

Trade deficit widens by 30.56pc in July-May

ISLAMABAD: Pakistan’s trade deficit widened by 30.56 percent to $27.488 billion in July-May 2020-21 compared to $21.054 billion in July-May 2019-20, says the Pakistan Bureau of Statistics (PBS).

https://epaper.brecorder.com/2021/06/09/1-page/889063-news.html

National development budget 36.4% higher for FY2021-22, says Asad Umar

ISLAMABAD: Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Tuesday said that the government has decided to increase the national development budget by 36.4% in the upcoming budget.

https://www.thenews.com.pk/latest/846458-national-development-budget-364-higher-for-fy2021-22-says-asad-umar

FBR Reduces Sales Tax on Petroleum Products

The Federal Board of Revenue (FBR) has reduced the sales tax rate on two petroleum products, effective from May 18, 2021, to keep prices of the petroleum products unchanged during May.

https://propakistani.pk/2021/06/08/fbr-reduces-sales-tax-on-petroleum-products-2/

Rs87 bn allocated for CPEC projects in next budget

ISLAMABAD: Dispelling the impression of slowing down of CPEC projects, Federal Minister for Planning Asad Umar has said the government has allocated Rs87 billion for the Public Sector Development Program (PSDP) for the next budget 2021-22 for execution of CPEC projects.

https://www.thenews.com.pk/print/846761-rs87-bn-allocated-for-cpec-projects-in-next-budget

Block 8, Iraq; PPL required to seek appraisal of success potential

ISLAMABAD: The government has made it mandatory for Pakistan Petroleum Limited (PPL) to seek appraisal of success potential of Block-8, Iraq, through third party validation to get balance financial amount of $22.4 million out of the approved $100 million for exploratory work.

https://epaper.brecorder.com/2021/06/09/12-page/889143-news.html

Kazi formula for NHP calculations shelved

ISLAMABAD: The federal government has reportedly shelved implementation of the AGN Kazi Committee Methodology (KCM) for calculation of Net Hydel Profit (NHP), according to which Wapda has to pay about Rs 500 billion per annum to KPK and Punjab, fearing that the entire power sector will collapse if this formula is implemented, well-informed sources told Business Recorder.

https://epaper.brecorder.com/2021/06/09/1-page/889056-news.html

PIA to complete its business plan in 3 months: CEO

KARACHI: Pakistan International Airline (PIA) is going to complete its business plan in three months.

https://epaper.brecorder.com/2021/06/09/3-page/889082-news.html

Call to end tax burden on beverage producers

KARACHI: The food sector demanded the government to end the discriminatory tax on the beverages producers in the upcoming budget for the financial year 2021-2022 to promote the investment in the country.

https://epaper.brecorder.com/2021/06/09/7-page/889104-news.html

Restaurants and eateries; ST on supplies reduced

ISLAMABAD: The Federal Board of Revenue (FBR) has reduced sales tax from 7.5 percent to five percent, without facility of input tax adjustment, on supplies made by restaurants and eateries on account of takeaway up to June 30, 2021.

https://epaper.brecorder.com/2021/06/09/12-page/889142-news.html

Sullivan confirms US had military talks with Pakistan

ISLAMABAD: US National Security Adviser Jake Sullivan on Monday confirmed that the United States had discussions with Pakistan in the military, intelligence and diplomatic channels to make sure that Afghanistan never again becomes a base from which terrorist groups would attack the US – but he did not go into details about it.

https://tribune.com.pk/story/2304223/sullivan-confirms-us-had-military-talks-with-pakistan