The government intends to reduce the gas sector circular debt by 70% to PKR500bn

The bear dominated the stock market during the month, and the index registered a fall off 1,928ptsMoM to settle at 40,420pts levels. The declining trend was primarily attributed to political unrest, S&P lowered the long-term sovereign credit rating of Pakistan to ‘CCC+’ from ‘B-‘, and the short-term rating to ‘C’ from ‘B’ on the back of enduring external, economic, and fiscal risks.

Furthermore, SBP forex reserves fell by USD1,900mnMoM to USD5.82bn due to external repayment, PKR depreciated by 1.11%MoM to record at PKR226.43./USD, and delay in IMF 9th review dampened the investors’ confidence. However, the government intends to reduce the gas sector circular debt by 70% to PKR500bn to resume the IMF program, withdraw import restrictions on LCs to support industrial production, and decrease oil prices by 1%MoM to settle at USD78.39/bbl to restrict the market to decline further.

Courtesy- Spectrum Research

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