Pakistan Stock Exchange Hits All-Time-High 81000 Points
Pakistani Investors celebrated on Monday as the benchmark KSE 100 index soared to an all-time high above 81,000, following the announcement of a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for a $7 billion credit line. This came despite the rising political noise after the landmark apex court ruling on reserve seats. Market optimism was further fueled by an anticipated softening of monetary policy, which drew significant buying interest, particularly from foreign investors. Ahsan Mehanti of Arif Habib Corporation noted that stocks closed at a record high, attributing the surge to the SLA’s boost to investor confidence. He also mentioned that the expected ease in the State Bank of Pakistan’s policy rate, resolution of the energy sector’s circular debt crisis, increased remittances, and rupee stability were key factors in the market’s performance. Topline Securities Ltd highlighted that the new Extended Fund Facility for 37 months significantly bolstered investor sentiment. Major contributions to the index’s rise came from Systems Ltd, MCB Bank, Fauji Fertiliser, Pakistan Oilfield, Hub Power, and Engro Corporation, which collectively added 599 points. The benchmark index achieved an intraday record high of 81,428.43 points and a low of 80,743.46. It ultimately settled at 79,992.35, after a remarkable rally of 1,211.51 points or 1.52% on a day-on-day basis. The overall trading volume remained stable at 441.33 million shares, marking a slight increase of 0.91%. However, the traded value improved by 15.93% to Rs27.22 billion day-on-day. Significant contributors to the trading volume included PIA Holding Company (35.75 million shares), Pak Elektron (25.83 million shares), WorldCall Telecom (24.92 million shares), Air Link Communication (21.33 million shares), and Avanceon Ltd (19.88 million shares). The shares with the most significant price increases in absolute terms were Nestle Pakistan (Rs105.00), Exide Pakistan (Rs93.45), PIA Holding Ltd (B) (Rs82.98), Sapphire Fibres (Rs72.69), and Reliance Cotton (Rs49.13). Conversely, the companies with notable price decreases in absolute terms were Rafhan Maize (Rs99.27), Pakistan Tobacco (Rs50.45), Data Agro Ltd (Rs38.57), Ismail Industries (Rs32.60), and Mehmood Textile (Rs28.92). Foreign investors were active in value-hunting, purchasing shares worth $2.76 million.
Salary Boost and Minimum Wage Hike: Sindh Unveils Mega-Budget Today!
The Sindh government is gearing up for a momentous day as they prepare to unveil their annual budget for the 2024-25 financial year. Today, Friday, June 14th, Sindh Chief Minister Syed Murad Ali Shah, who also carries the finance portfolio, will present the highly anticipated budget to the Sindh Assembly at 3:00 PM. Adding to the intrigue, sources reveal an early morning cabinet meeting scheduled for 9:00 AM at the CM House. This pre-budget huddle is expected to be a critical decision-making forum where the proposed budget will be meticulously reviewed and approved before its official presentation. Speculation is rife about the budget’s contents, with whispers of a potential 15% to 20% salary increase for government employees and a significant boost to the minimum wage, possibly reaching Rs. 35,000. Will these rumors materialize? Tune in today at 3:00 PM to witness the unveiling of the Sindh budget and its potential impact on the province’s economy and citizens’ lives!
IMF امداد کی کہانی: 75 سال میں 23 قرضے کیسے ملے؟
تم نے شاید سنا ہوگا کہ حکومت IMF سے قرض لے رہی ہے، لیکن جانتے ہو یہ IMF ہے کیا؟ اور پاکستان کو اتنے قرضے کی ضرورت کیوں پڑتی ہے؟ آج ہم سادہ زبان میں سمجھیں گے! IMF کیا ہے؟ IMF کا مطلب ہے International Monetary Fund، یعنی عالمی مالیاتی فنڈ۔ یہ ایک ایسا ادارہ ہے جو دنیا کے مختلف ممالک کو قرض دیتا ہے جب ضرورت ہو۔ پاکستان اور IMF قرضے: پاکستان نے 1950 میں IMF سے پہلی بار قرض لیا تھا۔ اُس وقت سے لے کر آج تک 75 سالوں میں ہم 23 بار IMF سے قرض لے چکے ہیں۔ یعنی تقریباً ہر 3 سال میں ایک قرض! لیکن کیوں؟ اس کی کئی وجوہات ہیں، جیسے: آمدنی کم، خرچہ زیادہ: جب حکومت کا خرچہ اس کی آمدنی سے زیادہ ہو جائے تو وہ IMF سے قرض لے کر اپنی ضروریات پوری کرتی ہے۔ ڈالر کی کمی: پاکستان درآمدات زیادہ تر روپے میں کرتا ہے لیکن ضروری چیزیں جیسے تیل اور مشینری ڈالر میں خریدنی پڑتی ہیں۔ جب ڈالر کم ہو جاتا ہے تو حکومت IMF سے قرض لے کر ڈالر خریدتی ہے۔ معاشی بدحالی: اگر ملک کی معیشت ٹھیک نہ چل رہی ہو، تو لوگوں کے پاس کم پیسے ہوتے ہیں اور کمپنیاں بھی کم پیداکار ہوتی ہیں۔ اس صورت میں حکومت IMF سے قرض لے کر معیشت کو سہارا دیتی ہے۔ قرض اچھا ہے یا برا؟ قرض اگر ٹھیک طریقے سے استعمال کیا جائے تو معیشت کو بڑھانے میں مددگار ثابت ہو سکتا ہے۔ لیکن اگر قرض کا صحیح استعمال نہ کیا جائے تو یہ قرضوں کا بوجھ بڑھتا چلا جاتا ہے اور اسے چُکانا مشکل ہو جاتا ہے۔ آیندہ کیا ہوگا؟ حکومت اس کوشش میں ہے کہ IMF سے کم سے کم قرض لیا جائے اور معیشت کو مضبوط بنایا جائے۔ یہ کام آسان نہیں ہے لیکن اگر تمام لوگ مل کر محنت کریں تو پاکستان اپنی مالی مشکلات پر قابو پا سکتا ہے۔ یہ بات یاد رکھنا ضروری ہے کہ یہ ایک بہت ہی مختصر وضاحت ہے اور اس مسئلے کو سمجھنے کے لیے مزید مطالعہ کی ضرورت ہے۔ لیکن امید ہے کہ یہ مضمون تمہیں IMF اور پاکستان کے درمیان قرضوں کی کہانی کا ایک ابتدائی خاکہ ضرور دے گا
Pakistan government increases petrol price by 26 rupees per liter
The interim government has implemented further increases in petrol and diesel prices in Pakistan. The new tariffs, which will come into effect from September 16, 2023, will set petrol prices at Rs 331.38 per liter and diesel prices at Rs 329.18 per liter. This is the fourth consecutive increase in petroleum product prices, with petrol increasing by Rs 26.02 per liter and high speed diesel fuel (HSD) increasing by Rs 17.34 per liter. These successive increases have collectively increased interest rates on these products by more than 30% since July 31st.
IMF Approves Relief Plan for Consumers Utilizing Up to 200 Units
Sources told Geo News that the International Monetary Fund (IMF) has given the green light to a relief proposal for consumers using up to 200 units, allowing authorities to bill money electricity in batches. However, the care government’s plan to provide assistance to those consuming up to 400 units of electricity per month was rejected by the Fund, the sources added. Final approval of the staggered bill recall will be given by the federal cabinet,” the sources said, adding that about 4 million electricity consumers could receive temporary assistance. through this initiative. However, sources said, if support is provided to those consuming up to 400 units of electricity, 32 million consumers could benefit. They added that the Washington-based lender had emphasized the need to crack down on electricity and gas thieves and improve debt collection. Separately, sources said the IMF has also asked for a 45-50% increase in gas tax from July 1. However, the increase in gas prices must be approved by the federal cabinet. After continuous protests by residents and traders, who took to the streets against sky-high electricity bill hikes and additional taxes, the formation was led by interim Prime Minister Anwaar-ul-Haq Kakar in Islamabad has tried to persuade the global lender to agree to provide immediate relief to electricity consumers in the cash-strapped country, whose people have been hit by hyperinflation. It is important to note that this South Asian country is part of an IMF program and any bailout or subsidy must be approved by the IMF. The two sides have been conducting intense negotiations to find a solution to rising electricity bills amid nationwide protests.
Developing PayPal and Stripe payment gateways in Pakistan is our top priority: IT Minister
Acting Federal Minister for IT, Telecommunications and Science and Technology, Dr. Umar Saif, announced that the launch of PayPal and Stripe payment gateways in Pakistan is a top priority for the current government. Speaking at the ITCN Asia 2023 ceremony in Karachi, he acknowledged the challenges facing freelancers in Pakistan due to the lack of such payment platforms. Dr. Saif emphasized the importance of enabling PayPal and Stripe as they are essential for the freelancer community, which makes up a large part of the country’s online workforce. He has expressed his intention to meet with representatives of these companies to that end.In addition, Dr. He mentioned the potential of Pakistan’s IT industry in addressing Pakistan’s trade imbalance. He explained that the IT sector, with its large educated and tech-savvy population, could play a key role in improving economic conditions. Pakistan’s IT industry is already the second largest online job market in the world, with around 400,000 online freelancers contributing to the economy. Doctor. Saif acknowledged the challenges faced by the IT industry, including tax changes and the difficulty of transferring funds to Pakistan. He expressed the government’s determination to support the industry, including exploring the possibility of a dollar reserve account, which could result in a significant increase in the size of the industry from $2.6 billion to $3.5 billion in a short period of time. Stated.
Currency Fluctuations: Indian Rupee Takes a Hit Against UAE Dirham in Early Trade
The currency war between UAE and Asia: Due to the strengthening of the dollar index and a loss in Asian rivals, the Indian rupee fell during the opening hours of trading on Tuesday. Around 8am, the South Asian currency was down from Monday’s closing price of 82.74 to the US dollar (22.54 to the UAE dirham). The dollar index increased in Asia and has since largely recovered the losses it sustained following the US jobs report. The offshore Chinese yuan fell to 7.2250 to the dollar, with other Asian currencies falling by 0.2% to 0.6%. A forex dealer at a bank stated, “With Asia down, we are back to that level at which interbank will be on the public sector bank watching mode.” The The Reserve Bank of India has often intervened through public sector banks to stop the rupee from falling below the range of 82.80 and 83. It doesn’t need to be stated that the entire 82.80-83.00 zone is crucial. We’ll have a round of significant stop losses if you remove 83, the trader warned. Most policymakers believe the policy rate will need to be kept tight for some time to get inflation back to goal, according to ANZ, and the Fed is concerned of upside risks to rising inflation given the continued excess demand for labour. Risks suggest that the Federal Reserve’s work is still incomplete.
Digital inclusion for economic transformation
Pakistan’s economy has breathed a sigh of relief following the recent agreement on the International Monetary Fund’s monetary policy. However, it is important to view this as an opportunity for self-reliance and long-term stability. To achieve economic transformation, digital inclusion must be a top priority.With a broadband penetration rate of over 53%, Pakistan currently has 127 million broadband subscribers, of whom 124 million use the Internet via mobile phones. Unfortunately, nearly half of Pakistan’s population remains offline, highlighting the urgent need for comprehensive action to bring at least another 50 million Pakistanis online within the next two years. It is By providing citizens with access to essential services such as education, health care and finance, we can foster a prosperous future for all.Concrete steps can be considered by policy makers to facilitate the transition to digital inclusion. Pakistan is currently one of the most heavily taxed telecommunications markets in the world, with mandatory telecommunications services taxed at her 34.5%. Reducing taxes is very important as it improves affordability and accessibility for a large portion of the population. In addition to the broader economic benefits of increased broadband penetration, increased adoption due to tax rationalization could increase government tax revenues in the long term.Various studies show that the affordability of smartphones is a major barrier to providing Internet access to low-income segments of society. In its report, Strategies for Universal Smartphone Access, the Broadband Commission stressed that smartphone costs could exceed 70 percent of average monthly income in many low- and middle-income countries.
Elon Musk statement of cutting car prices causes $20 billion lose in one day
The world’s richest man, Elon Musk, lost a whopping $20 billion overnight after he said Tesla could cut prices further in “turbulent times.”On Forbes and Bloomberg’s real-time billionaire lists, the Tesla CEO tops the list of biggest losers as of July 21. The devastating blow narrowed the chasm between Mr. Musk and the world’s second-richest man, Bernard Arnault, CEO of luxury goods maker LVMH. Arnaud and his family’s net worth increased by $952 million to $235.2 billion, according to Forbes magazine’s real-time list. Musk’s massive loss came after Tesla’s stock plummeted 9.74%, the biggest single-day drop since April 20, after the electric-car maker said its second-quarter gross margins fell to their lowest in four years. The CEO’s mention of further price cuts to increase sales did not help at all.
“The Global Dollar/Cash Battle: Determining World Economic Dominance”
Every nation in the world uses the US dollar, not only Americans. For more than a century, the dollar has made it easier for money and things to travel the globe. Purchase or sale of oil? Usually done using money. nations that issue government debt? The price of the bonds is often expressed in US dollars. For many years, when markets tank and systems malfunction, investors have turned to the dollar as their shelter. But if you pay attention to some sections of the financial community and the internet, the dollar’s era as the preferred financial tool of the world may be coming to an end. Countries ranging from Russia and China to France, Israel, and the United States have indicated they want to begin doing more transactions in currencies other than US dollars. As a greater amount of the world’s reserves are held in currencies like the Chinese yuan, Japanese yen, and euro, central banks have begun to slink away from the dollar. Despite being important, these changes do not herald the imminent collapse of the US dollar’s hegemony. There may be subtle adjustments, but as Stanford finance researcher Chenzi Xu told me, there is still no practical substitute for hard currency from the United States. Although the US dollar won’t be replaced as the world’s reserve currency overnight, a concerted attempt to undermine it has the opportunity to undermine the status of the dollar and result in significant changes to the financial system. American wants a concerted campaign to challenge the dollar’s supremacy has the potential to weaken the dollar’s position in the globe and bring about significant changes in the financial system. d as the world’s reserve currency overnight. The US cannot take for granted the status of the dollar if it wants to maintain its dominance.