Forex and General Updates
Monday, June 1, 2009
MONEY MARKET :
Money market was quite liquid. Overnight rates opened at 13%p.a and closed at 9% p.a. The decrease in the cut-off yields in the PIB auction have had a spill over effect on the yields of Treasury bills in the secondary market.
FOREX:
The persistant trend of volatility in the interbank persisted.The Green Back moved within the range of 15 paisas.The USD / PkR opened at levels of 80.95 and went as high as 81.10 and closed at 80.98 & 81.02
GENERAL NEWS:
IMF see GDP growth at 3.5% in FY10 compared to 3.3% given by planning commission(PC) and our expectations of 4%. IMF expects YoY inflation at 7.5% compared to PC target of 9%. The PkR 2.74trn FY10 Federal budget scheduled to be unveiled on June 13th is likely to be a delicate balancing act. The government needs to invest in growth (infrastructure spending) and extend relief to the masses provided it can muster the fiscal space while remaining within IMF parameters. While phasing out subsidies will provide breathing room, revenue enhancement remains imperative. As avenues for short term fix are limited, squeezing current tax payers further might be a tempting route (GST increase, higher tax on salaried class). However the route will not only be unpopular, possible judicial reaction could be a concern.
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 9:08 AM,
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