KCCI - eBulletin May 14, 2022

Karachi remains on radar of investors: CM

List of Date / Change
Sindh CM Syed Murad Ali Shah has said that Karachi is an economic hub of the country and his govt. will not allow terrorists, anti-state Unit Value
Indicators Period Daily
and anti-social elements to destroy peace in the city, which has been achieved at a heavy price. While speaking at the launch of “My
USD-Interbank 13-May PKR 192.53 0.40%
Karachi – Oasis of Harmony” exhibition, which is a 3-day fair organized by KCCI at the Expo Centre, CM Shah said that he was glad that
KCCI resumed the tradition of organizing the annual expo after a two-year suspension amid the Covid-19 pandemic. He welcomed the USD-Open MKT 13-May PKR 192.10 0.05%
national and international exhibitors for putting in efforts to promote business activities and attracting local and foreign buyers and KSE-100 index 13-May Pts. 43,486 1.37%
counterparts. He pointed out that the event was Former Chairman BMG late Mr. Siraj Kassim Teli’s brilliant initiative as the then FIPI 13-May $ Mn -0.68 NM**
president of KCCI in 2004 to change the perception of Karachi. Speaking on the occasion, BMG Chairman Zubair Motiwala said that the Crude Oil 13-May $/bbl 110.49 4.11%
full house at the Expo Centre with the presence of chief minister, provincial ministers and diplomats showed the resilience of the city’s Gold 13-May $/oz 1,808.2 -0.90%
business community. KCCI President Muhammad Idrees stated that since its inception in 2004, the My Karachi exhibition kept improving Gold (10g) Local 13-May PKR 116,170 0.00%
every year. More than 250 stalls have been established. Tribune. Silver 13-May $/oz 21.00 1.10%
Cotton(KHI)-40 kg 13-May PKR 22,506 0.00%
Fuel subsidy to cost govt PKR 75Bn over next fortnight
Kibor-6M 13-May % 15.00 0.02%
The prices of petroleum products may increase by up to PKR 86 per litre for the next fortnight — with no taxes included — in case the
WoW
govt. decides to do away with the subsidy payable to oil companies as Price Differential Claims (PDCs) under IMF conditions. At present,
Forex Reserves 6-May $ Bn 16.38 -1.07%
the govt. is providing about PKR 31 per litre out-of-pocket subsidy on petrol and PKR 73 per litre on diesel, besides a subsidy of PKR 5
YoY
per unit on electricity. An IMF team would start a staff mission on 18th May’22 with Pakistani authorities in Doha, Qatar. Dawn.
Remittances Jul-Mar 22 $ Bn 22.95 7.04%
Dollar crosses PKR 192 mark on strong demand Exports* Jul-Apr 22 $ Bn 26.23 25.46%
The rupee continued its slide against the dollar on Friday (13th May’22) with the international currency hitting an all-time high of PKR Imports* Jul-Apr 22 $ Bn 65.49 46.41%
192.53 in the interbank market. According to SBP, rupee lost 0.39% or 76 paisa against the dollar on a day-on-day basis. The Pakistani Trade Balance* Jul-Apr 22 $ Bn -39.26 -64.79%
currency has depreciated 8.32% since the beginning of 2022. Dawn. Current Account Jul-Mar 22 $ Bn -13.17 -4688.7%
Foreign Direct Inv. Jul-Mar 22 $ Bn 1.29 -1.99%
OGDC added to MSCI Pakistan Index LSM Growth* Jul-Mar 22 % 9.40
Global index provider MSCI retained only two stocks — Lucky Cement Ltd and MCB Bank Ltd — in the MSCI FM Pakistan index as part of Avg. CPI Jul-Apr 22 % 11.04
its latest semi-annual review. MSCI provides investment tools like indices that many global passive funds use to make investments with Discount Rate Apr-22 % 12.25
distributed risks around the world equity markets. Dawn. Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS*
** Not Meaningful, WoW= week on week; YoY=Year on Year
Industries assured of gas supply Major Currencies
Federal Minister for Commerce Syed Naveed Qamar has assured the textile industry that every effort will be made to supply gas to the
industrial units in order to boost the country’s economy. Tribune.
255
245 GBP, 13-May-22,
450MW BQ unit to be commissioned by month-end: KE 233.6
K-Electric has given yet another new date for the commissioning of its much-awaited 450 megawatt unit of Bin Qasim Power Station-III 235
225
and the plant is expected to come online ‘with optimum generation capacity’ by the end May’22. BR. EUR, 13-May-22,
215
199.1
205 USD, 13-May-22,
Two ADB executive directors due today 192.1
195
Two Executive Directors of Asian Development Bank (ADB), Dr. Wan Farisan Bin Wan Sulaiman (representing Brunei Darussalam, 185
Malaysia, Nepal, Singapore and Thailand) and Noor Ahmed (representing Kazakhstan, Maldives, Marshall Island, Magnolia, Pakistan, 175
Philippines and Timor-Leste) will be visiting Pakistan from 14th-21st May’22. During the visit, the Executive Directors will hold meetings 165
with Ministers and senior Federal and Provincial govt. officials. The Board of Directors, among other business, sets policy direction for 155
ADB and takes decisions on approval of loans, guarantees, investments and technical assistance by ADB to developing member 145
countries. BR. May-21 Aug-21 Nov-21 Feb-22 May-22
USD GBP EUR Source: KCCI Research
Govt to review ban on new gas connections, NA told Quote of the Day
The National Assembly has been informed that the ban imposed on new gas connections by the previous govt. will be reconsidered by
the federal cabinet. The News.

Intra-Karachi Peoples Bus Service to be launched this month: transport minister "Great things are done by a series of small things
Sindh Information and Transport Minister Sharjeel Inam Memon has directed the Karachi Metropolitan Corporation (KMC) and District brought together."
Metropolitan Corporations to clear all the hurdles and encroachments and complete the repair work along the routes of the intra-city
\ Peoples Bus Service. The Sindh govt. would launch the project in the last week of May’22. The News.
Vincent Van Gogh
Record $ 3.1Bn remittances sent in April
For the first time, remittances crossed the figure of $ 3Bn in a month, which gave hope that the country would achieve its annual
remittance target of $ 30Bn. The country received a collective $ 26.1Bn during 10MFY22, very close to the expected target of $ 30Bn for Outstanding Credit to the Private Sector (PKR
FY22. Pakistan received the highest amount of remittances from Saudi Arabia, which reached $ 6.52Bn. Dawn.
Tn)
CPEC Authority to be abolished, Senate panel told 10 40%

18.6%
The govt. is to abolish the China-Pakistan Economic Corridor (CPEC) Authority and all matters relating to various CPEC projects will be 9 18.6% 17.6% 9.5% 10.3%
handed over to the Planning Commission with designating a special secretary to deal with the matters. The ministry is working on the 1.9%
20%

8
modalities and a final decision in this connection will be taken soon. The step is being taken for facilitating the Chinese investors and
contractors working on CPEC projects who are facing serious problems for the past many years. Chinese investors and contractors were 7 7.99 0%

also facing problems in getting visas and the govt. is to make the process swift. BR. 6 6.74
6.11
-20%

5 5.99
New govt buys LNG at 40% higher prices 5.47
4 4.65
-40%

Despite a large majority of cargoes imported at cheaper long term contracts, the basket price for imported Degasified Liquefied Natural
Gas (RLNG) has surged 40% to a record $ 22-24 per Mn British Thermal Unit (mmBtu) for May’22 owing to a string of spot cargoes 3 -60%

procured to meet energy shortages. Dawn.

2
-80%

President approves reconstitution of CCI 1

President Dr. Arif Alvi has approved the reconstitution of the Council of Common Interests (CCI), which will be headed by PM Shehbaz 0 -100%

Sharif. CCI is responsible for formulating and regulating policies in relation to matters included in the federal legislative list and
exercising supervision and control over related institutions. BR. July July July July July March
2017 2018 2019 2020 2021 2022
SBP injects PKR 3.55Tn into money market Source: KCCI Research; SBP
SBP has injected PKR 3.55Tn worth of liquidity into the money market via Open Market Operation (OMO) to help ease liquidity
constraints of banks. SBP injected funds for a seven-day period at 12.31%. The central bank also conducted Shariah-compliant Note
Mudarabah based OMO on the same day, pumping PKR 499.9Bn liquidity for seven days at 12.32% into the Islamic banking institutions.
The News.
If any member is facing any issues pertaining to Pakistan-
Large-scale manufacturing grows 26.6% in March Afghanistan investment and trade policies or has project
PBS has reported that Large-Scale Manufacturing (LSM) grew 26.6% year-on-year in Mar’22. In 9MFY22, LSM grew by 10.4% on a year- proposals is requested to share the information at
on-year basis as per the new base. However, the growth is calculated at 7% in 9MFY22 on the basis of the old base of FY06. Dawn. secretary@kcci.com.pk for forwarding to the Board of
Investment.