On Wednesday, bulls at the Pakistan Stock Exchange (PSX) kept up their enthusiasm, bringing the benchmark KSE-100 index past the 80,000 mark. The KSE-100 Index increased by 680.79 points, or 0.86%, from the previous session to conclude at an all-time high of 80,233.67.
VALUE OF GOLD TOTAL IN PAKISTAN TODAY
On Wednesday, the price of gold rose in Pakistan. A tola of 24-karat gold was sold for Rs242,300, an increase of Rs800. The price has been held back by Rs3,000 because of the decline in purchasing power.
DOLLAR TO PKR: During Wednesday’s interbank session, the value of the Pakistani Rupee (PKR) decreased by 2.52 paisa in relation to the US dollar. The currency closed the day at PKR 278.4 per USD, down from PKR 278.38 per USD at the end of the previous session.
PSX NOTICES: PRIVATIZATION COMMISSION EXPECTS TO CONCLUDE PIA SALE BY AUGUST 2024
The Privatization Commission (PC) of Pakistan announced that it aims to complete the privatization of Pakistan International Airlines (PIA) by August 2024. This process is part of a broader effort to privatize state-owned enterprises (SOEs) and reduce government involvement in commercial activities.
Privatization Process Timeline
- November 2023: The PC appointed EY Consulting LLC, Dubai, as the financial advisor for PIA’s divestment.
- February 2024: The Federal Cabinet approved the legal segregation plan and transaction structure for PIA.
- April 2024: The PC issued advertisements inviting Expressions of Interest (EOI) for acquiring 51-100% of PIA’s equity along with management control.
- June 2024: Six parties were pre-qualified as bidders for PIA’s privatization.
- August 2024: Targeted month for final bidding and completion of the privatization process.
Privatization Programme (2024-29)
The PC is finalizing a phased five-year privatization program (2024-29) aimed at reducing government presence in the commercial sector. The program includes 10 SOEs targeted for privatization within a year, with the goal of enhancing efficiency and economic reforms. The key entities include:
- Pakistan International Airlines Corporation Limited (PIACL)
- House Building Finance Company Limited (HBFCL)
- First Women Bank Limited (FWBL)
- Zarai Taraqiati Bank Limited (ZTBL)
- Pakistan Engineering Company Limited (PECO)
- State Engineering Corporation (SEL)
- Islamabad Electric Supply Company (IESCO)
- Faisalabad Electric Supply Company (FESCO)
- Gujranwala Electric Power Company (GEPCO)
- Roosevelt Hotel, New York City, USA
Additional Privatization Efforts
- House Building Finance Company Limited (HBFCL): Transaction expected to complete by July 2024.
- Roosevelt Hotel: An international financial advisor was appointed in February 2024. After the Federal Cabinet approves the transaction structure, marketing will begin.
- First Women Bank Limited (FWBL): The privatization process is being pursued under a Government-to-Government (G2G) mode with interest from the UAE government.
- Power Generation Companies (GENCOs): The process will be phased, focusing on carving out and privatizing efficient power plants.
- Power Distribution Companies (DISCOs): Three options are being deliberated for the privatization, long-term concession, and retention of DISCOs, with six recommended for privatization.
The PC’s comprehensive approach to privatizing these entities reflects Pakistan’s commitment to economic reform and efficiency enhancement in its state-owned enterprises.
PSX NOTICES:PAKISTAN TO RETAIN STAKE IN PAKISTAN INTERNATIONAL AIRLINES AMID PRIVATIZATION PLANS
Pakistan has announced plans to retain a stake in the state-owned Pakistan International Airlines (PIA) as part of its broader strategy to benefit from the airline’s increased value following its privatization, according to Bloomberg.
FINAL BIDDING AND PRIVATIZATION STRATEGY
Usman Bajwa, Secretary at the Privatization Commission, revealed during a news briefing in Islamabad that the nation will schedule the final bidding date for PIA within 10 days. The asset sale agency aims to offer at least a 51% stake in the airline to six shortlisted groups. This move aligns with the government’s commitment to implementing economic reforms agreed upon with the International Monetary Fund (IMF) as part of a bailout package.
BACKGROUND AND PREVIOUS ATTEMPTS
PIA has not made a profit in nearly two decades, and previous attempts to sell the airline have failed. The current privatization initiative is seen as a critical step toward economic reform and stabilization.
BROADENING THE SCOPE OF PRIVATIZATION
In addition to PIA, Pakistan plans to sell ten companies, including power distributors, within the next year. The government is also seeking initial bids for New York’s Roosevelt Hotel, which it owns, with options including an outright sale, a joint venture, or a long-term lease.
SHORTLISTED BIDDERS
Last month, Pakistan shortlisted six groups to bid for PIA. These include:
- Arif Habib: A prominent tycoon.
- Yunus Brothers Group: Leading a consortium.
- Pak Ethanol Pvt.’s Consortium: This includes international entities such as Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH, and Australia’s Pearl Asset Management.
PSX NOTICES: NEW EXPLORATION LICENSES GRANTED TO MARI PETROLEUM’S SUBSIDIARY
EXPANDING MINING PROJECTS IN BALOCHISTAN
The Directorate General Mines & Minerals Balochistan has granted two exploration licenses to Mari Petroleum Company Limited (PSX: MARI)’s wholly owned subsidiary, Mari Mining Company (Pvt) Limited (MMC), according to a filing on the Pakistan Stock Exchange (PSX) revealed today.
DETAILS OF THE LICENSES
- EL-322:
Allotted area of 501.03 sq. km in District Chagai. - EL-323:
Allotted area of 512.76 sq. km in District Chagai.
MMC’S ROLE IN MINERAL EXPLORATION
Mari Petroleum Company Limited (MPCL) established MMC to undertake mineral mining projects within Pakistan. The newly granted licenses align with MPCL’s strategy to expand its portfolio of mining projects, reflecting the company’s commitment to contributing to the growth of Pakistan’s mineral mining sector.
STRATEGIC SIGNIFICANCE
The acquisition of these exploration licenses is a significant milestone for MPCL, highlighting its proactive approach in exploring and developing mineral resources in Balochistan. This move is expected to enhance the company’s capabilities in mineral exploration and support the economic growth of the region.
CONCLUSION
Mari Petroleum’s continued expansion into mineral mining demonstrates its strategic commitment to diversifying its project portfolio and playing a vital role in Pakistan’s mineral sector. The exploration licenses in Chagai District mark the beginning of potentially lucrative mining endeavors for the company.
PSX NOTICES: PACRA UPGRADES JS BANK’S RATINGS
SIGNIFICANT MILESTONE WITH BANKISLAMI ACQUISITION
Pakistan Credit Rating Agency Limited (PACRA) has updated the entity ratings of JS Bank Limited (PSX: JSBL) from “AA-” to “AA” for the long-term and “A1+” for the short-term, with a stable outlook forecast. This upgrade follows JS Bank’s acquisition of a majority stake (75.12%) in BankIslami Pakistan Limited in August 2023, marking a significant milestone in its growth trajectory.
STRONG CONSOLIDATED POSITION
The ratings reflect JS Bank’s consolidated position post-acquisition, highlighting its robust financial standing and strategic expansion. The positive fundamentals of the Islamic banking industry also support the ratings.
STRATEGIC BUSINESS APPROACH
- Efficiency and Profitability:
JS Bank’s management has a clear business strategy focused on bolstering profitability through operational efficiency. - Tech-Savvy Image:
The bank has heavily invested in digital services, notably with its app “Zindigi,” designed to provide Gen Z and millennials with user-friendly digital financial solutions. Zindigi is fast becoming a significant player in Pakistan’s digital financial landscape.
GROWING BRANCH NETWORK
The bank’s geographically dispersed and swiftly established branch network supports the build-up of low-cost core deposits. While the contribution of current accounts is currently less than desired, management is taking steps to enhance this.
ADVANCES AND INVESTMENT PORTFOLIO
- Lending Portfolio:
There has been a decline in net advances due to consolidation amidst the current economic landscape, with a slight uptick in the infection ratio. However, the bank has increased its loan loss coverage ratio by enhancing provisioning. - Government Securities:
The investment portfolio majorly comprises government securities, ensuring less exposure to market volatility. The bank maintains a strong equity base and its Capital Adequacy Ratio is above regulatory requirements.
COMMITMENT TO DIGITAL INNOVATION
JS Bank continues to strengthen its digital footprint, with “Zindigi” becoming a hallmark of its digital presence. The bank’s investment in digital services is part of its broader strategy to cater to the evolving needs of modern consumers.
FUTURE OUTLOOK
JS Bank’s strategic initiatives and effective governance have been crucial in guiding its growth and ensuring regulatory compliance. The management has expressed an intention to build core capital in the future, further strengthening the bank’s financial stability.
CONCLUSION
JS Bank’s upgraded ratings by PACRA reflect its strong financial position and strategic growth initiatives, especially following the acquisition of BankIslami. With a focus on digital innovation and operational efficiency, JS Bank is well-positioned to continue its upward trajectory in Pakistan’s banking sector.
PSX NOTICES: RE-COMPOSITION OF MEEZAN PAKISTAN INDEX ANNOUNCED
INDEX ADJUSTMENTS EFFECTIVE FROM JULY 03, 2024
The Pakistan Stock Exchange Limited has conducted the re-composition exercise of the Meezan Pakistan Index (MZNPI) as of June 14, 2024. According to the relevant index rules, three adjustments have been made to the index, as revealed by a notice issued by the local bourse on Friday.
INCOMING COMPANIES
- D.G. Khan Cement Company Limited (PSX: DGKC)
- The Searle Company Limited (PSX: SEARL)
- Air Link Communication Limited (PSX: AIRLINK)
OUTGOING COMPANIES
- Maple Leaf Cement Factory Limited (PSX: MLCF)
- Oil & Gas Development Company (PSX: OGDC)
- Sui Northern Gas Pipelines Limited (PSX: SNGPL)
DETAILS OF THE RECOMPOSITION
The changes in the MZNPI Index will take effect from Wednesday, July 03, 2024. This re-composition aligns with the index rules and aims to ensure the index accurately reflects the performance of the companies within the relevant sectors.
REVISED CONSTITUENTS
The notice also provided a revised list of the constituents of MZNPI along with their weights in the index based on data from June 14, 2024. Here are the incoming and outgoing companies:
S.No | Incoming Companies | Outgoing Companies |
---|---|---|
1 | D.G. Khan Cement Company Limited | Maple Leaf Cement Factory Limited |
2 | The Searle Company Limited | Oil & Gas Development Company |
3 | Air Link Communication Limited | Sui Northern Gas Pipelines Limited |
SIGNIFICANCE OF THE RECOMPOSITION
The re-composition of the Meezan Pakistan Index is a significant event for investors as it reflects the changing dynamics of the market and the performance of individual companies. The inclusion of new companies is based on their market performance, financial stability, and growth potential, while the exclusion of others indicates a shift in their standings.
WHAT TO EXPECT
Investors can expect these changes to bring a new dynamic to the Meezan Pakistan Index. The addition of D.G. Khan Cement, The Searle Company, and Air Link Communication highlights the evolving market trends and the potential for growth in these sectors.
PSX NOTICES: LANDMARK SPINNING INDUSTRIES LIMITED REVERSE MERGER UPDATE
PROGRESS REPORT ON REVERSE MERGER
Landmark Spinning Industries Limited (PSX: LMSM) is in the process of a reverse merger with an operating unlisted company and will commence operations as a merged entity, as informed by the company in its progress report issued to PSX today.
JOINT PETITION FILED IN HIGH COURT OF SINDH
As of the latest update, a joint petition seeking the court’s sanction of the Scheme of Arrangement was filed on May 22, 2022, in the High Court of Sindh at Karachi.
COURT PROCEEDINGS ADJOURNED
The court proceedings have been adjourned, and new dates have been scheduled within this quarter.
MATTER IN PROGRESS WITH THE COURT
The company considers the matter to be still in progress with the court and is diligently monitoring the developments in compliance with PSX Regulation.
FUTURE UPDATES
“Any further updates or developments on this matter will be promptly communicated to you,” the report concluded.
PSX NOTICES: PACRA ELEVATES BANK ALFALAH’S CREDIT RATING TO “AAA”
ACHIEVEMENT OF THE HIGHEST CREDIT RATING
Bank Alfalah Limited (PSX: BAFL) has achieved the highest credit rating of “AAA” from the Pakistan Credit Rating Agency Limited (PACRA). This milestone marks a significant upgrade from the previous rating of “AA+” for the long term and “A1+” for the short term with a stable outlook, as announced on June 24, 2023.
ATTRIBUTES OF THE ROBUST UPGRADE
The impressive upgrade is attributed to Bank Alfalah’s robust growth strategy, transforming from a mid-sized bank to a large bank over three decades. The bank’s deposit base of Rs2.085 trillion at the end of December 2023 highlights its competitive system share in customer deposits.
SUSTAINABILITY AND INDUSTRY COMPETITIVENESS
The sustainability of multiple factors has been demonstrated, reflecting the bank’s robust management quality, prudent risk management policies, and increasing penetration through digital channels. The industry landscape remains intensive, requiring management to remain vigilant to maintain relevance and competitiveness.
SUPPORTING FACTORS FOR THE ASSIGNED RATING
The assigned rating reflects:
- Strong Ownership and Governance: Paramount support to the assigned ratings.
- Prudent Risk Management: Robust policies in place.
- Digital Expansion: Increasing penetration through digital channels and growing market share.
- Customer-Centric Approach: Strong nationwide presence with over 1,000 branches, including 350+ Islamic branches in 225+ cities.
- High Market Share in Remittances: Achieved a remarkable 14.2% market share in remittances.
- Strong Digital Presence: Includes the launch of digital lifestyle branches and sales/service centers. AlfaMall, Pakistan’s first banking-led eCommerce marketplace, has over 730k active users.
FINANCIAL PERFORMANCE AND MARKET POSITION
Bank Alfalah has strategically positioned itself in the lending market, with gross performing advances increasing to Rs740 billion and an infection ratio of 4.8%. The bank’s loan loss coverage ratio exceeds 112%, providing comfort against total delinquency. The market share stands at approximately 5.9% in advances and 8.5% in trade.
KEY FINANCIAL METRICS
- Net Profitability: Doubled to Rs36 billion during CY23.
- Cost-to-Income Ratio: Improved to 41.8% from 50% the previous year.
- Capital Adequacy Ratio (CAR): Improved to 16.7% at the end of December 2023.
FUTURE PLANS AND STRATEGIC DIRECTION
Bank Alfalah intends to augment its domestic footprint with a focus on aiding SMEs, boosting trade volumes, penetrating cash management, supply chain financing, and home remittances. The ratings are dependent on the continued compliance with ‘AAA’ parameters, with any weakening considered negative.
TESLA INC.’S SHARES SOAR AFTER BEATING WALL STREET DELIVERY ESTIMATES
DELIVERIES AND PRODUCTION
Tesla Inc. experienced a second consecutive drop in quarterly deliveries but still outperformed analyst predictions, sending its shares soaring by up to 10%. The electric vehicle (EV) manufacturer delivered 443,956 vehicles in the second quarter, surpassing the Wall Street estimate of 439,302.
While sales were down 4.8% year-over-year, Tesla showed improvement from the 386,810 vehicles delivered in Q1. The company produced 410,831 vehicles in Q2, a 14% decrease compared to the same period last year.
MARKET REACTION AND ANALYST INSIGHTS
The better-than-expected delivery figures have been seen positively by analysts. Ben Kallo, a senior research analyst at Robert W. Baird, expressed optimism about the strong deliveries, suggesting it as a positive sign for the broader EV market.
CHALLENGES AND STRATEGIC MOVES
Tesla has faced a tumultuous year with significant internal changes. CEO Elon Musk announced major staff reductions in April, targeting a headcount reduction of up to 20%. These job cuts included sales employees, which may have impacted delivery figures.
Additionally, the introduction of Tesla’s new model, the Cybertruck, has been slow. The first quarter slowdown was attributed to a suspected arson attack at the Berlin factory and shipping diversions from the Red Sea. Although there were fewer disruptions in Q2, Tesla is struggling to maintain growth with an older lineup of vehicles.
Musk’s strategy to cut prices across the Tesla lineup over the past year and a half has not been sufficient to sustain momentum. Deliveries of Tesla’s top-selling Model 3 and Model Y vehicles in Q2 were 422,405, down from 446,915 a year ago.
MARKET OUTLOOK AND FUTURE PLANS
Analysts like Jessica Caldwell, head of insights at Edmunds.com, believe that the delivery decline was expected given Tesla’s limited product lineup and tough market conditions. Caldwell noted that price cuts and increased incentives have not significantly boosted demand in the US market.
Despite these challenges, Tesla’s energy storage business recorded a significant achievement. The company deployed around 9,400 megawatt hours in Q2, nearly doubling from the first quarter’s 4,053 megawatt hours. This performance nearly matches the total energy storage deployments of 2023 in just the first half of 2024.
UPCOMING DEVELOPMENTS
Looking forward, Musk has indicated that Tesla will introduce new, more affordable models by early next year, though details remain scarce. The company aims to produce these new models on existing manufacturing lines. Additionally, Musk has prioritized the development of a fully autonomous robotaxi, with an unveiling event planned for August 8.
Tesla’s energy storage unit, which includes Powerwall batteries for homes and Megapacks for commercial customers, has shown promise. However, the challenge remains in converting these gains into significant revenue, as the company typically generates more sales from its “services and other” revenue segment than from energy generation and storage.
BUSINESS NEWS PAKISTAN
PAKISTAN BUSINESS NEWS: PRIME MINISTER SHEHBAZ SHARIF CALLS FOR ENHANCED REGIONAL CONNECTIVITY WITH TAJIKISTAN
During a two-day official visit to Tajikistan on the invitation of President Emomali Rahmon, Prime Minister Muhammad Shehbaz Sharif emphasized the importance of regional connectivity between Pakistan and Tajikistan. In a meeting with the Prime Minister of Tajikistan, he proposed the construction of rail tracks and roads to strengthen ties between the two countries.
REGIONAL CONNECTIVITY SUMMIT
Sharif suggested that Pakistan host a regional connectivity summit to provide trade corridors to Central Asian countries and promote regional trade. This initiative aims to enhance socio-economic development through better integration and cooperation among the countries in the region.
BILATERAL COOPERATION AND STRATEGIC PARTNERSHIP
Both leaders expressed satisfaction with the expanding bilateral cooperation and reaffirmed their desire to further strengthen fraternal ties. They hailed the signing of the Strategic Partnership Agreement as a historic milestone, which is expected to open new avenues for mutually beneficial economic cooperation.
VISION CENTRAL ASIA POLICY
Prime Minister Sharif reiterated Pakistan’s commitment to enhanced engagement with Central Asian countries, including Tajikistan, in line with its “Vision Central Asia” policy. He stressed that regional connectivity and integration are crucial for sustainable long-term socio-economic development.
TRANSIT TRADE AND TRANSPORTATION
Sharif invited Tajikistan to utilize Karachi port for transit trade, enhancing logistical links between the two nations. He also welcomed the recent commencement of international flights between Pakistan and Tajikistan and emphasized the importance of increasing the frequency of these flights to bolster connectivity.
CULTURAL AND SOCIAL TIES
Highlighting the shared religious and cultural values between the Pakistani and Tajik people, Sharif called for expanding social relations. He advocated for enhanced cooperation in culture, education, sports, and people-to-people contacts to strengthen the bond between the two nations.
PAKISTAN BUSINESS NEWS: BOOSTING TRADE AND CARGO ACTIVITIES BETWEEN RUSSIA AND PAKISTAN
MEETING BETWEEN FEDERAL MINISTER AND RUSSIAN AMBASSADOR
Federal Minister for Communications, Board of Investment, and Privatization Abdul Aleem Khan met with Russian Ambassador to Pakistan Albert P. Khorev to discuss enhancing road connectivity between the countries.
DISCUSSION ON BILATERAL COOPERATION
During the meeting, matters of mutual interest and bilateral cooperation in various fields were discussed.
PROMOTING REGIONAL CONNECTIVITY
Abdul Aleem Khan emphasized that Pakistan is keen to connect Russia through Central Asian countries and back to Karachi Port to promote bilateral trade and boost commerce activities for other countries as well.
IMPORTANCE OF TRADE RELATIONS WITH RUSSIA
The Federal Minister highlighted the importance of trade relations with Russia due to its economic and geographical significance in the region.
INVITING INVESTMENT FROM CENTRAL ASIAN COUNTRIES
Federal Minister further stated that Central Asian countries and South Asia are equally important for trade activities, and Pakistan is ready to invite investment from these countries.
RECENT VISIT TO CENTRAL ASIA
Abdul Aleem Khan informed the Russian Ambassador about his recent visit to Central Asia.
AGREEMENT ON PROMOTING BILATERAL TRADE
The two sides discussed promoting bilateral trade and creating an effective mechanism for investment matters, agreeing in principle on many points.
RUSSIAN SUPPORT FOR PAKISTAN
Albert Khorev stated that Russia attaches great importance to trade and economic relations with Pakistan and is willing to provide financial and technical support in various projects.
ROAD CONNECTIVITY AS A TRADE CORRIDOR
Khorev mentioned that Russia wants to establish road connectivity to Pakistan through Tajikistan, Uzbekistan, and Afghanistan as a trade corridor.
STRATEGIC PARTNERSHIP WITH PAKISTAN
Khorev emphasized that Pakistan has a central position in regional trade, and Russia aims to work with Pakistan as a “strategic partner.”
DISCUSSIONS ON BILATERAL FLIGHT OPERATIONS
The meeting also covered possibilities regarding bilateral flight operations from Islamabad and Karachi to Moscow.
PRIME MINISTER SHEHBAZ SHARIF’S MEETING WITH RUSSIAN PRESIDENT VLADIMIR PUTIN
GOVERNMENT POLICIES ON ROAD NETWORKS
Federal Secretary Communications Ali Sher Mehsud briefed the Ambassador on government policies and the workings of the Department of Communications on road networks through China, Afghanistan, Central Asia, and other countries.
PAKISTAN BUSINESS NEWS: PAKISTAN’S PLASTIC BAG CONSUMPTION CRISIS
55 BILLION PLASTIC BAGS USED ANNUALLY
Pakistan consumes 55 billion plastic bags annually, with usage expected to increase by 15% each year, said Senator Sherry Rehman, Chairperson of the Senate Standing Committee on Climate Change, on World Plastic Bag Free Day.
URGENT NEED TO REVIEW ENVIRONMENTAL IMPACT
The Chairperson of the Senate Standing Committee on Climate Change, Senator Sherry Rehman, in her message on International Plastic Bag Free Day, urged the nation to review the environmental impact of plastic bags and their indiscriminate use in Pakistan, as reported by APP.
PLASTIC POLLUTION AND ITS CONSEQUENCES
Senator Rehman highlighted that Pakistan is facing a serious problem of plastic pollution, with single-use plastic bags causing water stagnation, littering, and damage to human, aquatic, and wildlife.
LONG-TERM ENVIRONMENTAL RISKS
“Plastic bags take hundreds of years to decompose, and their accumulation poses serious risks to the environment and health. All our small and big cities face major challenges in plastic waste management,” she said.
LACK OF SUCCESS IN PREVENTING PLASTIC USE
She underscored that several attempts were made to stop the use of plastic bags; however, due to a lack of alternatives, slow implementation, and lack of public awareness, no success was achieved in stopping the use of plastic items.
CALL FOR ACTION: REDUCE PLASTIC RELIANCE
“Every citizen needs to reduce reliance on plastic items, including bags, support eco-friendly alternatives, and strictly follow anti-plastic policies,” Senator Sherry Rehman requested.
PAKISTAN BUSINESS NEWS: EXTERNAL FINANCING SECURED BY PAKISTAN IN MAY 2024
$402.96 MILLION IN EXTERNAL FINANCING
The country secured external financing worth $402.96 million in May 2024 from multiple sources, according to the latest monthly report by the Economic Affairs Division (EAD).
BREAKDOWN OF FINANCING
The total amount comprised $390.89 million in loans and $12.07 million in grants from various sources.
YEAR-TO-DATE FINANCING
Cumulatively, in 11MFY24, the country only managed to secure $7.55 billion in external financing against the annual budget estimates of $17.62 billion for FY24.
NON-PROJECT AID LOANS
Out of the total financing amount in May, the government obtained a $139.6 million loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan’s economy. Cumulatively in 11MFY24, loans for non-project aid amounted to $4.98 billion.
DEPENDENCE ON FOREIGN COMMERCIAL BORROWING
The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing, which amounted to $126.04 million in May 2024 and $1.02 billion in 11MFY24. This was obtained through the Naya Pakistan Certificate.
LACK OF COMMERCIAL BANK LOANS
The government did not manage to secure any amount through foreign commercial banks in 11MFY24 against the government’s budget estimates of $4.5 billion for the fiscal year 2023-24.
STRONG TREND FROM BILATERAL AND MULTILATERAL PARTNERS
Disbursements from bilateral and multilateral development partners maintained a strong trend, totaling $276.92 million in May and $4.02 billion during 11MFY24.
MULTILATERAL SOURCES CONTRIBUTIONS
During the review period, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $265.89 million in May and $3.13 billion in 11MFY24.
BILATERAL DEVELOPMENT PARTNERS
The total financing through bilateral development partners stood at $11.03 million in May and $888.93 million in 11MFY24.
PAKISTAN BUSINESS NEWS: SAUDI ARABIA EASES VISA REQUIREMENTS FOR PAKISTANI TRAVELERS
EASIER TOURIST VISA REQUIREMENTS
Saudi Arabia, one of the top international destinations for Pakistani travelers, has eased tourist visa requirements with immediate effect. Applicants can now submit a bank statement showing a minimum monthly credit amount of $750 or its equivalent.
GROWING PAKISTANI TOURIST ARRIVALS
Pakistani tourist arrivals to Saudi Arabia grew 43% in 2023 compared to the previous year. Saudi aims to welcome 2.7 million Pakistani visitors in 2024.
TASHEER OFFICES ACROSS PAKISTAN
To accommodate this growing demand, Saudi Arabia has established six Tasheer offices across Pakistan in Peshawar, Quetta, Lahore, Karachi, Islamabad, and Multan. These offices offer a convenient and user-friendly experience, including visa application guidance, biometric enrollment, status tracking, and passport delivery. Travelers can schedule an appointment on the Tasheer website prior to their visit.
NEW TRANSIT VISA OPTION
Saudi Arabia has introduced a transit visa available for travelers arriving via Saudia and Flynas, allowing them to transit and explore Saudi for up to 96 hours. Visa on arrival is available for those who hold a valid and used UK, US, or Schengen visa.
ONE-YEAR MULTIPLE ENTRY VISA
Last year, Saudi Arabia introduced the one-year multiple entry visa for Pakistani travelers. This specific visa is for personal visits such as attending weddings, functions, or visiting friends or family. Holders can enjoy multiple visits to Saudi within a 12-month period, allowing them to explore the country’s vibrant cities, cultural richness, and natural wonders year-round. Pakistani travelers with this visa can also perform Umrah, underscoring Saudi’s commitment to fostering spiritual journeys and cultural exchanges.
PROMOTING TOURISM AND CULTURAL EXCHANGE
Making it easier to get a visa will encourage more Pakistani travelers to not only visit their friends and family and perform Umrah but also to explore Saudi Arabia. From Riyadh’s vibrant cityscape, Jeddah’s cultural richness, and the hidden treasures of the Red Sea, to the ancient marvels of AlUla, Saudi offers a diverse range of experiences.
YEAR-ROUND DESTINATION
Saudi Arabia is a year-round destination with several regions offering a cooler escape in summer, while the busy calendar of events through winter attracts more and more tourists each year.
PAKISTAN BUSINESS NEWS: MONEY SUPPLY IN PAKISTAN REACHES RS37.95 TRILLION TILL MAY 2024
TOTAL MONEY SUPPLY GROWTH
The total money supply (M3) circulating within the economy till May 2024 has been recorded at Rs37.95 trillion, according to provisional accounts on Monetary Aggregates for the month, maintained by the State Bank of Pakistan (SBP). This marks an increase from Rs37.24 trillion in April 2024 and Rs33.14 trillion in May of the previous year. The money supply has risen by 1.9% month-on-month (MoM) and by 14.51% year-on-year (YoY).
BREAKDOWN OF MONEY SUPPLY
Breaking down the overall money supply into broad categories, the SBP data shows:
- Notes in Circulation: Rs8.73 trillion
- Transferable Deposits: Rs20.4 trillion (comprising all deposits exchangeable on demand at par without penalty/restriction)
HIGH INFORMAL ECONOMY IMPACT
The currency circulated as notes has been high in Pakistan relative to other developed and emerging economies due to the significant informal economy. This category remained largely stable compared to the previous month but rose by 1.87% over the year.
OTHER DEPOSITS
- Other Deposits: Rs5.7 trillion in May 2024, up 1.5% MoM and 17.94% YoY
- These represent all claims other than transferable deposits in national or foreign currency, evidenced by deposits.
COINS IN CIRCULATION
- Coins: Rs9.43 billion in May 2024, unchanged from the previous month, and up from Rs9.11 billion in May 2023.