Pkrevenue.com

Author: Faisal Shahnawaz

  • Pakistan’s car sales fall 11% on rising financing cost

    Pakistan’s car sales fall 11% on rising financing cost

    KARACHI: Pakistan’s car sales have declined 11 per cent Month on Month (MoM) to 18,714 units in November 2021, according to data released by Pakistan Automotive Manufacturers Association (PAMA).

    The fall in car sales has been attributed to rising financing cost after monetary policy tightening by the State Bank of Pakistan (SBP). The SBP on November 19, 2021 increased the policy rate by 150 basis points to 8.75 per cent.

    However, the total number of car sales including Non-PAMA members was at about 23,900 units, down five per cent, according to analysts at Topline Securities.

    The analysts said that this is the second consecutive month where sales have witnessed a MoM decline.

    They are now down by 25 per cent from their peak sales in July 2021.

    They attribute this to rising financing rates, stringent financing requirements by SBP and year end phenomenon where car sales generally slow down.

    On Year on Year (YoY) basis, car sales grew by 29 per cent YoY in November 2021 on the back of low base effect. In July – November of the current fiscal year, car sales are up 65 per cent YoY to 108,625 units.

    Honda Car (HCAR) reported a 13 per cent MoM increase, mainly due to low base where the company sold only 7 units of BRV last month. Hyundai Nishat and Pak Suzuki Motors (PSMC) reported sales decline of 30 per cent and 17 per cent, respectively.

    Along with the above mentioned factors, increasing competition from new players including KIA Motors, MG Motors and Changan are impacting the market share of listed auto assemblers.

    Pakistan bike sales were down 7 per cent MoM to 166,630 units in Nov 2021. Atlas Honda (ATLH) sales were up 3 per cent MoM and 19 per cent YoY.

    Pakistan tractor sales were down 14 per cent MoM while Trucks/Buses sales were up 10 per cent MoM.

    Pakistan’s car sales declines by 6% in October
  • Stocks fall by 519 points on policy tightening concerns

    Stocks fall by 519 points on policy tightening concerns

    KARACHI: Stocks fell by 519 points on Monday owing to concerns related to monetary policy tightening in the announcement scheduled on December 14, 2021.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,877 points as against last Friday’s closing of 43,396 points showing a decrease of 519  points.

    Analysts at Arif Habib Limited said that the market continued to remain in the red zone due to concerns over mounting inflation and hawkish stance in the upcoming monetary. Activity remained lackluster.

    Market opened on a bleak note and mostly cyclical stocks remained under pressure throughout the day. In the last trading hour, across the board selling was witnessed due to lack of any positive trigger.

    READ MORE: SBP increases policy rate by 150 basis points to 8.75%

    Sectors contributing to the performance include Technology & Communication (-147 points), E&P (-88 points), Commercial Banks (-72 points), Cement (-28 points) and Pharma (-27 points).

    Volumes decreased from 179.1 million shares to 150.3 million shares (-16.1 per cent DoD). Traded value also decreased by 21.7 per cent to reach US$ 29.6 million as against US$ 37.8 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, FATIMA, TRG and HASCOL.

    Weekly Review: market likely to stay range bound
  • SBP issues KIBOR rates on December 13, 2021

    SBP issues KIBOR rates on December 13, 2021

    KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as of December 13, 2021.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.279.77
    2 – Week9.449.94
    1 – Month9.7710.27
    3 – Month10.5810.83
    6 – Month11.2811.53
    9 – Month11.3711.87
    1 – Year11.4411.94
    SBP issues KIBOR rates on December 10, 2021
  • PPL gets license for large scale mining of Lead, Zinc

    PPL gets license for large scale mining of Lead, Zinc

    KARACHI: The government of Balochistan province has granted Pakistan Petroleum Limited (PPL) for large scale mining of Lead and Zinc, according to a communication received by Pakistan Stock Exchange (PSX) on Monday.

    READ MORE: Pakistan Petroleum discovers hydrocarbons in Sindh

    The PPL said that company had been granted a large scale mining lease for Lead and Zinc, in District Khuzdar, by the government of Balochistan and in this regard a large scale mining Lease Deed had been executed, for large scale mining and establishment of Lead-Zinc processing plant in district Khuzdar, Balochistan over an area covering 30 square kilometers (7,413.16 acres).

    READ MORE: PPL posts 18% net profit growth in first quarter

    The company said that the lease is valid for a term of thirty (30) years and shall be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between PPL and the provincial government.

    The estimated reserves of barite, lead and zinc are 69 million tons as per bankable feasibility by a renowned German Consultant, over a portion of the leased area.

    READ MORE: PPL commences commercial gas production from Shah Bandar Block

    The project would entail open pit mining with an ore beneficiation / process plant.

    Positive cashflows are expected from year 3 while the estimated project life is 32 years.

  • SITE industrialists condemn gas suspension

    SITE industrialists condemn gas suspension

    KARACHI: Abdul Rasheed, President, SITE Association of Industries (SAI), has criticized the suspension of gas supply to all non-export general industries.

    In a statement issued on Monday, while totally rejecting SSGC’s imprudent decision to suspend gas supply to all non-export general industries, he demanded that instead of doing so, the SSGC should carry out staggered gas holidays along with better load management which would ensure non – export general industries will continue to run according to the given schedule.

    READ MORE: SITE Association signs MoU for tax return filing

    SAI president said that SSGC’s management which appears to be unaware of what was happening and was unable to control the situation, must go for staggering holidays and better load management in order to provide relief to the perturbed business & industrial community who are providing livelihood to millions of people.

    Rasheed also questioned the policy to prioritising gas supply to domestic consumers over job security. “What good is gas availability for an unemployed person,” he questioned.

    READ MORE: Export orders under threat as gas supply to industries suspended

    He urged the government to no take populist decisions and understand the negative impact of shutting down manufacturing activity on employment and inflation.

    Abdul Rasheed said the exemption given to export sector would not provide the desired results as general industries supply essential raw materials to export-oriented industries hence are an integral part of the supply chain must stay operational otherwise the export sector even with gas would not be able maintain the pace of exports.

    Terming suspension of gas supply to non-export general industries as detrimental, he said, that SITE Association will not stay silent and we will use all available options including a huge sit-in outside SSGC’s Head office until relief is provided to all industries without any discrimination.

    READ MORE: SITE Association hails FBR chairman’s no bank account freezing decision

    SAI president was of the opinion that gas suspension to general industries would not only result in increased unemployment but would also fuel massive inflation due to shortage of essential goods in the market. “With inflation already at 18% YoY, any supply side disruption would make the situation untenable for the masses as supply side shortages would jack up prices further eroding the purchasing power of the lowest strata,” he added.

    Rasheed further said that Imran Khan did not shutdown industries during COVID 19 for these very reasons while SSGC has done the same without giving heed to Prime Minister’s clear policy on the matter.

  • Dollar touches new peak at Rs177.89; PKR fall continues

    Dollar touches new peak at Rs177.89; PKR fall continues

    KARACHI: The deterioration in Pak Rupee (PKR) value continued on Monday as the dollar touched new peak at Rs177.89 at closing of interbank foreign exchange market.

    The PKR lost 18 paisas against the dollar to close at Rs177.89 as compared with last Friday’s closing of Rs177.71, which was the previous all-time high of dollar, in the interbank foreign exchange market.

    READ MORE: Dollar makes new highs for 4th straight day at Rs177.71

    Today’s was the fifth straight day when the dollar touched new record high as it made a record high at Rs176.79 on December 07, 2021. Since then the dollar is making new record every session.

    Currency experts said that the high imports were the major reason behind rupee decline. They said that all efforts of the government to curb the imports of unnecessary and luxury items apparently failed as the trade deficit widened massively.

    READ MORE: Dollar touches Rs178 intraday trading, retreats

    The import bill of the country grew by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.

    READ MORE: Dollar makes new high at PKR 177.35 at midday trading

    The trade deficit during the months under review widened by 112 per cent to $20.59 billion as compared with the deficit of $9.72 billion in the corresponding period of the last fiscal year.

    READ MORE: Rupee slide continues; dollar hits new high at Rs176.79

  • Customers’ exchange rates on December 13, 2021

    Customers’ exchange rates on December 13, 2021

    Karachi, Pakistan – The State Bank of Pakistan (SBP) released the official exchange rates for December 13, 2021, providing customers with valuable insights into currency values based on the weighted average rates of commercial banks.

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  • Direct submission of documents at WeBOC allowed

    Direct submission of documents at WeBOC allowed

    KARACHI: Pakistan Customs has taken major steps for trade facilitation and allowed submission of documents at WeBOC without prior approval of Assistant Collector (AC)/ Deputy Collector (DC).

    Saif Ullah Khan, President, Karachi Customs Agents Association (KCAA) welcomed the step taken by the Pakistan Customs and said it would reduce dwell time for consignment clearance.

    He appreciated efforts of the Chief Collector South (Appraisement) Wajid Ali who had initiated the pre-arrival clearance process and simultaneously promoted the re-engineering of various steps of the clearance process that has improved the working environment.

    One such improvisation is the direct dissemination of the document calling message without the approval of AC/DC group. Usually the traders had to wait for the approval of document calling message by the concerned AC/DC before they can attach the documents in the Weboc system.

    This outstanding stride by the Chief Collector South in collaboration with Directorate of Reforms and Automation will enable the traders to receive the document calling message for any particular goods declaration without the need for AC/DC to approve it hence subsequently expediting the clearance of cargo, he added.

    Regarding Refund Management System, the following changes also made by the Customs Authorities under Weboc system.

    KCAA General Secretary Arshad Khurshid also appreciates the interest shown by the Chief Collector South (Appraisement) that has really benefited to overcome the challenges faced by business community.

    Customs introduces new module in WeBOC for SMEs
  • State Bank governor appointed as IFSB Chairman

    State Bank governor appointed as IFSB Chairman

    KARACHI: The governor of State Bank of Pakistan (SBP), Dr. Reza Baqir has been appointed as chairman of the Council of Islamic Financial Services Board (IFSB), Malaysia for the year 2022.

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  • Dollar makes new highs for 4th straight day at Rs177.71

    Dollar makes new highs for 4th straight day at Rs177.71

    KARACHI: The US dollar continued its upward journey to make new record highs against the Pak Rupee (PKR) for the fourth straight day on Friday as it ended at Rs177.71 in foreign currency market.

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