Team AKD Research
EUR 9.03 For Business Accounts Only

Pakistan Economy: Unlike Greenshirts, SBP will not drop the balL

  • In a rare but much-needed press briefing, Governor SBP, Dr. Reza Baqir yesterday briefed on the broader economic outlook with a focus on the exchange rate, monetary policy, and the IMF program.
  • The governor’s statement reiterated the adoption of ‘market determined’ exchange rate regime – a more fundamental based framework- with limited intervention from the central bank while clearly ruling out the free float based exchange rate regime.
  • The plain and explicit guidance on exchange rate regime is a clear positive and may bring some stability to the current volatile FX market, in our view. Considering REER level (May’19 end at 96.97, US$/PkR parity at 148.1), we think the rupee will stabilize around current levels over the medium term, with range bound two-way movements in the short term.
  • On monetary policy, the central bank will continue to adopt inflation targeting framework in setting interest rates. Considering the scale of fiscal adjustment (PkR1.4trn additional revenue target) and gov’t inflation estimate of 11-13%, we expect more tightening on the horizon however in a more staggered manner.

AKD Research

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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