Morning Market Brief 9th April. 2021

The Benchmark KSE100 index have once again generated a bullish engulfing pattern on daily chart after bouncing back from its 74.6% correction on hourly chart and now its heading towards expansion of this correction in an ascending price channel. As of now hourly stochastic seems exhausting but it's recommended to say cautious because index may try to extend its high towards 44,920pts- 45,050pts region initially and can target 45,200pts later on where it would face strong resistance from a strong horizontal resistant region. Overall sentiment seems positive but its recommended to post trailing stop loss on existing long positions because if index would not succeed in giving a breakout above 45,200pts then it face some serious pressure. While on flip side in case of rejection from its resistant regions index would try to establish ground above 44,350pts which would be followed by 44,100pts. Being last trading day of the week today's closing matters a lot and if index would succeed in breakout above 45,200pts till day end today then it may take a spike towards its previous high in coming days.

Whopping Rs1.27tr hike in taxes committed with IMF

Pakistan has made a commitment with the International Monetary Fund (IMF) to increase FBR taxes by a massive Rs1.272 trillion (almost 2.8 per cent of GDP) in the coming budget and jack up electricity rates by almost Rs4.97 per unit in the remaining three months of the current fiscal year. According to documents released by the IMF after approval by its executive board of directors of the modified extended fund facility (EFF), the government has also given an undertaking to continue making electricity tariff adjustments next year on monthly, quarterly and annual basis through “automaticity” of regulator Nepra’s amended powers. The documents also suggest that the government would continue increasing petroleum levy on oil products to the maximum level (Rs30 per litre) this year and next year to collect about Rs510 billion this year instead of budgeted target of Rs450bn.Read More...

Prime Minister Imran Khan on Thursday said several initiatives had been taken for wealth creation so that Pakistan could get rid of heavy foreign debts his government had inherited from previous ones. He was hopeful that the measures being introduced would bring about prosperity in the country. “We want to create more and more wealth in the country to retire heavy foreign loans, some of which are causing even more debts,” the prime minister said while laying the foundation stone of 4,000 low-cost apartments being built under the government’s ambitious Naya Pakistan Housing Programme (NPHP) at Farash Town near Islamabad.He said the incentives announced by the government for the construction industry would not only ensure economic activity with the running of 30 affiliated industries but also generate job opportunities.Read More...

PIA’s IOSA Registration has been successfully renewed and is now valid up to 23rd June 2023. PIA has been maintaining the IATA Operational Safety Audit (IOSA) registration since 2005. Every two years IATA conducts an external audit for the renewal of this important safety registration as an IOSA Operator with the IATA. In the past one year of continuous challenges faced by PIA, the airline had undergone two verification audits, first of which was of limited scope and the other verification audit was a full scope audit covering Flight Operations, Flight Services (cabin operations), Quality Assurance, Safety Management, Security Services, Engineering & Maintenance, Ground Handling, Flight Dispatch, and Cargo Operations. The audit findings have been successfully addressed and closed by the audit organisation. The second verification audit was also considered as full scope IOSA renewal audit. This registration is valid up to two years and is subject to renewal audits in accordance with IOSA Program Manual. Read More...

The fifth Steering Committee meeting on Pakistan Regulatory Modernisation Initiative (PRMI) was held under the chair of Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood to review progress, and get a brief on implementation of regulatory reforms by provinces and review of regulatory guillotine activity under NCC on SMEs. The Advisor to PM on Institutional Reforms and Austerity Dr Ishrat Hussain, Chairman BOI, Secretary Industries and Production, Member FBR, Provincial Secretaries of the Punjab, Sindh and Baluchistan, Director General ICT, representatives of private sector i.e. PBC, FPCCI, OICCI and Pakistan’s international development partners World Bank and British High Commission attended the meeting in person and virtually. Additional Secretary BOI, Mukarram Jah Ansari apprised the Forum on the status of regulatory mapping which as of now stands at 1400 regulations.Read More...