Thursday, November 21 2024

PSX remains volatile amid political noise
Pakistan Stock Exchange (PSX) on Wednesday saw volatile trading as the benchmark KSE-100 index initially surged on strong buying interest but ultimately closed lower by more than 300 points due to profit-taking and political uncertainty. Additionally, the bourse felt pressure from above-average foreign corporate selling, which pushed the index into the red zone. After commencing proceedings on a positive note, the index climbed to the intra-day high of 96,711.33 points, rising significantly during the early morning trading. However, profit-taking set in around midday, driven by political noise, which pulled the index to the intra-day low of 95,311.97. Despite a brief rally that saw the index make some recovery, the market closed down by 310 points. "Stocks closed bearish on political uncertainty and security concerns in the country," said Arif Habib Corp MD Ahsan Mehanti.
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IMF warns of risk to Asia's growth
The International Monetary Fund (IMF) warned on Tuesday that "tit-for-tat" tariffs could undermine Asia's economic prospects, raise costs and disrupt supply chains even as it expects the region to remain a key engine of growth for the global economy. "The tit-for-tat retaliatory tariffs threaten to disrupt growth prospects across the region, leading to longer and less efficient supply chains," IMF Asia-Pacific Director Krishna Srinivasan said at a forum in Cebu on systemic risk. Srinivasan's remarks come amid concerns over US President-elect Donald Trump's plan to impose a 60% tariff on Chinese goods and at least a 10% levy on all other imports. Tariffs could impede global trade, hamper growth in exporting nations, and potentially raise inflation in the United States, forcing the US Federal Reserve to tighten monetary policy, despite a lacklustre outlook for global growth.
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Ahsan suggests linking GSP with 5Es for export growth
Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Wednesday proposed a multi-pronged strategy, aligning the GSP Plus programme with the 5Es framework to achieve export-led economic growth and secure a prosperous future for Pakistan. "The GSP Plus programme represents more than just trade preferences. It is a roadmap for sustainable development and good governance. By aligning it with the 5Es framework, we can unlock the true potential of export-led growth, empower our citizens and secure a prosperous future," he said. The minister was speaking as the guest speaker at a conference titled "Promoting Good Governance through Trade – Leveraging through GSP+," organised by Fredrick Naumann Foundation. Addressing the gathering, Ahsan Iqbal called for seizing the opportunity to strengthen governance, build resilience and position Pakistan as a globally competitive economy. "Together we can ensure that trade becomes not only a driver of economic prosperity but also a catalyst for equity, transparency and sustainability," he added.
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Full reserve banking system sought
Experts have presented a proposal for implementing full reserve banking, aimed at reducing domestic debt, interest, inflation and unemployment. They said the proposal is more than just a financial blueprint; it is a call to action for a nation grappling with economic instability and the quest for ethical banking. They made the remarks at a programme titled "Full Reserve Banking: a Solution Claiming to Eliminate Domestic Debt, Interest and Inflation", held at the Institute of Chartered Accountants of Pakistan (ICAP) House on Tuesday night. A full reserve system, supported by renowned economists, is the ultimate solution to piling public debt, the burden of interest and rising inflation that is badly hurting the labour class. Implementation of a full reserve system in place of the fractional reserve system will quickly eliminate government debt and interest cost.
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Auto sector raises alarm over NEV policy
Local auto manufacturers have raised concerns over the proposed new energy vehicle (NEV) policy, fearing it could pave the way for unrestricted imports of completely built units (CBUs) of vehicles at significantly lower duty and sales tax rates. They have further warned that this could lead to a loss of market share for local original equipment manufacturers (OEMs), negatively impact parts manufacturers and stifle growth of the auto industry. Members of the Pakistan Automotive Manufacturers Association (PAMA) have expressed concerns regarding the recently discussed NEV policy and the corresponding policy document. The government plans a subsidy of Rs50,000 for electric two-wheelers and Rs200,000 for three-wheelers.
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