Source: China Economic Net
1. Market performance
2. Important news
1. According to data released by the State Bank of Pakistan (Central Bank) on April 8, the total amount of overseas remittances in March 2024 was US$2.95 billion, compared with US$2.25 billion in February, an increase of 31.2% month-on-month. March 2023 was $2.54 billion, up 16.4% year-over-year. This is the highest remittance since April 2022 ($3.12 billion). The highest remittance inflow came from Saudi Arabia at $70.31 million, up from $54 million in February, according to the country breakdown. $54.85 million from the UAE, up from $38.48 million in February. $37.25 million from the United States, down from $28.74 million in February.
2. According to the Pakistani media "Business Record", during the two-day trading week ending on April 9, 2024, the Pakistan Stock Exchange closed at an all-time high. The stock market has risen healthily, supported by active purchases by domestic and foreign investors, as well as institutional support. The benchmark KSE-100 index rose 1,898 points, or 2.77%, week-on-week, to close at an all-time high of 70,315 points. The average daily trading volume increased by 18% to 363 million shares, with an average daily trading volume of $59 million.
3. According to a report by Pakistani media "Dawn" on April 10, the board of directors of the International Finance Corporation (IFC) has approved a US$400 million financing for PTCL Group for the acquisition of Telenor Pakistan. Previously, Pakistan Telecommunications Limited (PTCL) signed a share purchase agreement (SPA) with Telenor Pakistan to acquire 100% of the company's shares on a cash-free and debt-free basis. At present, there are four companies in the telecommunications industry in Pakistan, namely Jazz, Telenor, Zong and Ufone, and Ufone, which is a subsidiary of PTCL, and after the acquisition of Telenor Pakistan, PTCL's subsidiary Ufone will merge with Telenor to become a company of the same size as Jazz.
4. International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on April 11 that Pakistan is discussing with the IMF a potential follow-up plan for the $3 billion standby arrangement (SBA) for the previous nine months. Last month, the newly elected government and the International Monetary Fund agreed on a staff-level agreement (SLA) for the second and final review of the $3 billion standby arrangement, which would release about $1.1 billion if approved by the boards of global lenders.
5. According to Pakistani media "Dawn" on April 11, the Asian Development Bank said in its "Asian Development Outlook" (ADO) in April that if the reforms take effect, Pakistan's economic growth is expected to remain subdued in fiscal 2024 and pick up in fiscal 2025. At the same time, Pakistan's gross domestic product (GDP) is forecast to grow by 1.9% in 2024 and 2.8% in 2025.
6. The State Bank of Pakistan (Central Bank) successfully paid $1 billion in international bonds, including principal and interest, on April 12. With the outflow of $1 billion, the bank's foreign exchange reserves will fall again to close to $7 billion.
7. Pakistan's Northern Power Generation Co., Ltd. (NPGCL) signed a groundbreaking agreement worth US$200 million with leading Chinese company Ningbo Green Power Pte Ltd to convert the existing thermal power plant in Muzaffargarh into an advanced 300-megawatt solar power facility, as reported by the media "The CPEC Portal" on April 14. With an estimated annual production capacity of 400 million units, the project is expected to significantly reduce costs from Rs 45 to Rs 14 per unit by eliminating the need for heavy fuel oil (HFO), in line with sustainability goals.
China Economic Net Data Center
April 15, 2024