PakStox Outlook

In the latest quarter, (Q2 Jun 2024), EFERT earned a net income of Rs. 4.6 per share, and declared a cash dividend of Rs. 3 per share. Gross profit, decreased by 69.5% over Q1 (Mar 2024)

FFC reported a net income of Rs. 12.2 per share and declared a cash dividend of Rs. 10 per share for the 2nd quarter ending Jun 2024.

Brent crude prices plummeted to their lowest point since early June, settling around $78.8 a barrel. The decline was fueled by growing fears over oil demand in China, the world's largest oil consumer.

Fitch Ratings has upgraded Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. Pakistan's upgrade reflects improved certainty over external funding, thanks to a new USD 7 billion Extended Fund Facility (EFF) agreement with the IMF and strong performance on a previous IMF arrangement. The IMF agreement, reached on 12 July, requires Pakistan to secure additional funding from Saudi Arabia, the UAE, and China before IMF Board approval, expected by end-August. The new EFF aims to address structural weaknesses in the tax system, energy sector, and state-owned enterprises, with significant increases in tax revenues planned. Pakistan successfully completed a nine-month Stand-by Arrangement with the IMF, implementing significant fiscal and economic measures, including raising taxes and prices. The current account deficit is expected to remain contained due to tight financing conditions, subdued demand, and lower commodity prices. Pakis...

The State Bank of Pakistan (SBP) has further eased monetary policy, reducing its policy rate by 100 basis points to 19.5% in its meeting today. This marks the second consecutive rate cut after maintaining a steep rate of 22% for a year. The decision comes amid a persistent decline in the Kibor below the 20% mark for the past month. The SBP had previously lowered the policy rate by 150 basis points on June 10, 2024. This move is expected to stimulate economic activity by reducing borrowing costs for businesses and individuals. However, the central bank will continue to closely monitor inflation to ensure it remains within the target range. https://www.sbp.org.pk/m_policy/2024/MPS-Jul-2024-Eng.pdf Key Points of Monetary Policy Statement: Inflation: Inflation is slightly better than anticipated in June 2024, and the impact of the FY25 budgetary measures is in line with expectations. External Account: The external account has improved, with the current account deficit narrowing sharply i...