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Pakistan Budget: Budget to dictate severity of slowdown

  • Budgetary measures adopted by successive Governments maintain a major hold over market sentiment, where the PTI-led GoP's maiden budget (discounting the two mini-budgets) is shaping up to be the most disciplined budgetary program in recent times, where the focus will be on economic stabilization
  • Reported economic metrics from the Economic Survey FY19 indicate lackluster macro picture, where slowdown is seen in reverberating across all major sectors, reflected in tapered corporate sector profitability and depressed outlook for growth
  • While setting political motives against the blueprint of tough IMF conditions, we believe measures to deviate from the Fund's benchmarks are going to be severely limited, while rolling back of subsidies, concessionary tax regimes and cancellation of previously announced programs is highly likely
  • In terms of sectors, Textiles remains in the limelight for proposed GoP budgetary measures while Banks, Cements, Fertilizers and other consumer oriented industries are pressed by cost escalations, facing down a terse demand environment
  • Incidentally, Budget FY20 may be more consequential in terms of the long term policy action it includes, i.e. long term measures to raise the tax base and expand taxation measures to previously untaxed sectors (agriculture middlemen, raising gap between filer and non-filer tax rates, and clampdown on Benami assets post amnesty expiry)
AKD Securities Limited
AKD Securities Limited

AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.

AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.

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