Business
IMF talks likely to clear way for 1.2 billion dollar tranche
Ongoing talks between Pakistan and the International Monetary Fund (IMF) are likely to end this week, which might lead to a staff-level agreement and the release of about $1.2 billion, according to officials from the Finance Ministry.
The discussions have centered around Pakistan’s economic performance and how well the country is meeting important goals set by the IMF program.
Officials said the IMF is happy with Pakistan’s foreign exchange reserves and liked the performance of the Federal Board of Revenue in reaching its revenue targets during the July-September period.
Meeting the tax collection target was called a major achievement for the first quarter of the current financial year, according to the sources.
Both sides also talked about a plan to start a fixed tax system for farmers by the end of the current financial year.
The State Bank of Pakistan shared details with the IMF team about steps taken to keep foreign exchange reserves stable and reduce inflation.
The central bank told the delegation that foreign exchange reserves are at $21.4 billion, and commercial banks hold an additional $5.4 billion, the sources added.
The IMF delegation is set to give Pakistan’s economic team a draft of the Memorandum of Economic and Financial Policies (MEFP).
Reaching an agreement on the MEFP would help move forward with a staff-level agreement, which could lead to the release of a $1.2 billion funding amount, the sources said.
Business
Dollar steady ahead of Fed decision, kiwi slumps after RBNZ holds
– The U.S. dollar was steady at a two-week high on Wednesday ahead of central bank policy decisions, with the Federal Reserve widely expected to maintain its policy interest rate unchanged but signal the likelihood of any December rise.
Most dollar counterparts were flat ahead of the Fed decision. The euro was barely changed at $1.1129 and the British pound was also barely changed at $1.3307. The dollar last traded 0.1% weaker at 157.81 yen, having swung between gains and losses.
The kiwi dollar fell as much as 1.7% to $0.5585 as the Reserve Bank of New Zealand surprised the market by keeping rates at 2.75%. A Reuters poll found 22 out of 27 experts expected the central bank to boost rates.“The market just got that wrong,” said Mike Houlahan, a director at Electus Financial Ltd in Auckland. “Only 10 days left until the election,” he said. “It’s good manners not to get involved in politics.”
The Australian dollar was 0.1% firmer at $0.7035 after inflation figures of 1.3% in the third quarter of the year, after 0.6% the previous quarter. The trimmed mean measure of core inflation came in at 1% as expected by the market, putting the annualised rate at an above-target 3.6%.
Governor Michele Bullock told lawmakers on Wednesday that the Reserve Bank of Australia will debate whether four rate rises this year will be adequate to return inflation to goal at a policy meeting next week.
For US traders, mostly looking for no change in central bank policy. The CME Group’s FedWatch tool indicated fed funds futures are pricing a 91% chance the Federal Open Market Committee would maintain its policy interest rate on hold.”The Fed doesn’t have to hike today to move markets,” said Chris Weston, chief research officer at Pepperstone Group in Melbourne. It just needs to alter the estimated probability of trekking in December.
The US dollar index, which measures the greenback against six currencies, climbed 0.3% to 102.40, its best since October 14. The yield on the US 10-year Treasury note was flat at 4.9967%.
In the cryptocurrency market bitcoin was unchanged at $80,736.07 while ether edged up 0.1% to $2,345.25.
Business
PSX maintains positive momentum as KSE-100 reaches 164,633 points
The Pakistan Stock Exchange (PSX) on Wednesday continued its bullish trend with purchasing trend.
In early trade, the benchmark KSE-100 Index added 166.25 points, or 0.10 percent, to 164,633.45 points.
The index entered the morning on a bullish note after a solid performance in the previous trading session where it gained 1,428.73 points or 0.88 per cent to close at 164,467.20, reported Business Recorder.
In the recent session, the benchmark index swung between an intraday high of 164,918.95 and a low of 164,502.45. It exchanged 19.23 million shares of stock. The reported trade value was 1.48 billion.
The market’s newest rally came after two straight days of advances and reflected ongoing purchasing enthusiasm in a broad range of large sectors.
The benchmark moved higher on Tuesday as investors bought into oil and gas marketing companies, commercial banks, refineries and cement industries, as well as technology and communication sectors. The index climbed 663.59 points on Monday after a chaotic trading session.
Business
Pakistan destroys Afghan Taliban posts after civilians targeted in S Waziristan
Several installations of Afghan Taliban were demolished by Pakistan’s armed forces after they targeted civilian population, martyring one and injured five along Pak-Afghan border in Angoor Adda South Waziristan (Lower) on Tuesday nite.
Firing and shelling along the Pakistan-Afghanistan border hit a residential area in Angoor Adda, Khyber Pakhtunkhwa, security sources said, killed a civilian and injuring five members of a family.
Read More: Afghan border fire in South Waziristan: One civilian dead, five injured
The tragedy came amid reported cross-border clashes, with a shell hitting a house in the region and killing residents, the sources added.
Security sources held the Afghan Taliban regime responsible for the incident noting that civilian areas were targeted during the exchange of fire. The incident, which resulted in deaths and injuries from the shelling, provoked indignation among local residents.
The Pakistan Army replied immediately to the aggression from the Afghan side. In the tit-for-tat operation, insiders added, Pakistan’s armed forces destroyed many Afghan security checkpoints.
Security sources said the Pakistani troops deployed near the Pakistan-Afghanistan border were fully prepared to respond to any possible invasion.
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