【Daily】5 Oct Brief of Pak BizNews
-Daily Market-
KSE 100 47,452 ▲0.79% KMI 30 79,689 ▲0.76%
KASB Tech Index 401 ▼0.10%
KASB Market View
- Asreported in the news Caretaker Commerce Minister Gohar Ijaz announced
that EU MEPs have extended the GSP rules until 2027.
- Furthermorethe government has abandoned its privatization plan for loss- making power distribution companies (Discos) and is now considering leasing them out through 30-year concession contracts.
- Thefederal government's total debt, combining domestic and external, surged to a historic high of Rs 64 trillion by August 2023, primarily due to exchange rate fluctuations and insufficient tax revenue collection. IMF-led reforms and their implementation are crucial for the market outlook. Banks, cement, and E&P sectors are favored.
National News
Public debt reaches Rs64 trillion, fuelledby currency collapse and high spendingThe federal government's debt increased 29 percent year-on-year to Rs64 trillion at theend of August, reflecting the impacts of higher spending, increasing interest costs in thewake of a tight monetary policy, currency depreciation, and a dearth of externalfinancing.
https://www.thenews.com.pk/print/1116471-public-debt-reaches-rs64-trillion-fuelledby-currency-collapse-and-high-spending
PIA tops sell-off list, WB told
The Privatisation Commission Thursday discussed the caretaker government’s strategicagenda for privatisation, with specific attention to privatising Pakistan InternationalAirlines (PIA) and other SOEs for optimising the performance of the distributioncompanies (DISCOs).
https://www.brecorder.com/news/40266749/pia-tops-sell-off-list-wb-told
Govt decides to lease out Discos for 30 years
The government has shelved its plan to privatise the loss-making power distributioncompanies (Discos) or hand them over to the provinces and has come up with the ideaof striking concession contracts for leasing them out for 30 years.https://www.thenews.com.pk/print/1116427-govt-decides-to-lease-out-discos-for-30-years
Discos to charge additional Rs1.7/unit for October
The National Electric Power Regulatory Authority (Nepra) has authorized the state-rundistribution companies (DISCOs) to levy an extra Rs1.7141 per unit on power consumersthrough their utility bills for October 2023.
https://www.thenews.com.pk/print/1116422-discos-to-charge-additional-rs1-7-unit-for-october
SBP forex reserves fall by $21m to $7.615bn
The foreign currency reserves held by the central bank fell by $21 million to $7.615 billionin the week ending September 28, the State Bank of Pakistan (SBP) said on Thursday.https://www.thenews.com.pk/print/1116472-sbp-forex-reserves-fall-by-21m-to-7-615bn
Logistics startup Rider looking to acquire BlueEx
Pakistani ecommerce logistics startup Rider, backed by YCombinator, is looking intoacquiring BlueEx, the only listed Express Courier Logistics Company in Pakistan, it toldReuters on Thursday.
https://www.thenews.com.pk/print/1116473-logistics-startup-rider-looking-to-acquire-blueex
PLL awards LNG tender to Vitol, first spot purchase in over a year Pakistan LNG Limited (PLL) awarded a tender to commodities trader Vitol for thedelivery of a liquefied natural gas (LNG) cargo in December, a source with knowledge ofthe matter told Reuters on Thursday, making it the country's first spot purchase in overa year.
https://www.thenews.com.pk/print/1116474-pll-awards-lng-tender-to-vitol-first-spot-purchase-in-over-a-year
Rupee extends gains to 21st consecutive sessionThe rupee extended gains against the dollar for the 21st straight session in the interbankmarket on Thursday.
https://www.thenews.com.pk/print/1116476-rupee-extends-gains-to-21st-consecutive-session
HBL, JP Morgan sign deal
HBL, the largest bank in Pakistan, has entered into an agreement with JP MorganPayments, to provide secure, and cost-effective cross-border payments via JP Morgan’sXpedite Remit, a statement said on Thursday.
https://www.thenews.com.pk/print/1116483-hbl-jp-morgan-sign-deal
PSM to be privatised on G2G basis
The caretaker government has reportedly decided to privatise Pakistan Steel Mills (PSM)on Government to Government (G2G) basis, as Privatisation Commission has failed tofinalise restructuring plan in eight years, well informed sources told Business Recorder.https://www.brecorder.com/news/40266750/psm-to-be-privatised-on-g2g-basis
Soft landing possible, but fiscal, debt risks abound: IMF chief
Stronger demand for services and progress on lowering inflation have increased thechances that the global economy can escape recession, but fiscal and financial risksabound, IMF chief Kristalina Georgieva said on Thursday.
https://www.brecorder.com/news/40266747/soft-landing-possible-but-fiscal-debt-risks-abound-imf-chief
PCAA: AGP detects Rs307.84bn irregularities
The Auditor General of Pakistan (AGP) has detected serious financial irregularities in thePakistan Civil Aviation Authority (PCAA) amounting to Rs307.84 billion including arecoverable amount of Rs6.23 billion.
https://www.brecorder.com/news/40266739/pcaa-agp-detects-rs30784bn-irregularities
Inflation, high rates and war crimp global trade: WTO
Global trade growth will be sharply lower than forecast this year as stubborn inflation,high interest rates and the war in Ukraine pressure economies around the globe, theWorld Trade Organization said Thursday.
https://www.brecorder.com/news/40266725/inflation-high-rates-and-war-crimp-global-trade-wto
Commodities and Currency: 1-Day Change
Gold: USD 1837 ▲0.32%
Silver: USD 21 ▲0.58%
Crude Oil USD 82 ▲0.19%
USD-PKR: Rs 282 ▼1.60%
