The Stock Rose at a Slower Pace of 342 Points

As the KSE-100 index closed at 37,926, the stock rose at a slower pace of 342 points (0.91%), losing some counterfeit last week. Investors were uneven in their three- and twelve-month papers, following the last two sessions, down 1,463 points due to increased T-bill returns.

Monetary Policy Committee meeting

The Monetary Policy Committee meeting announced Friday's decision to close trading hours Friday, with policy rates unchanged at 13.25pc. Stocks moved with weekday news flows. Many market men shared the view that the economy is finally reaching stabilization after painful integration measures.

The current account returns to surplus after 3.5 years, and in October, textile exports increased by 14pc, 7pc annually, and the International Monetary Fund (IMF) signal issued a $ 450 million secondary transaction to settle the debt. Increased investor sentiment The downturn was driven by the implementation of axle load policies and the creation of profits for high inflation figures.

On the political side

Investors decided to give former PM Nawaz Sharif the right to proceed abroad treatment, as determined by the government. JUI-F ended another positive march. Overseas buys were found to increase to $ 8.5m compared to a net buy of $ 4.2m last week. Their inflow was recorded at $ 6.7m from commercial banks and $ 3.6m from fertilizers.

On the domestic side, the bank / DFI abandoned $ 15.2m worth of shares, then the insurance company sold 2.6m worth of shares, and the individual spent most of its liquidity at $ 11.89m. Investor engagement continued to rise, with a spike of 15pc in 353m shares and an average trading volume of $ 79m, a 23pc increase.

Positive contributions by sector came from the development and distribution of 140 branches, fertilizer 102 and oil and gas marketing firms 66, while the decline in commercial banks came from 74 points, transportation 15 and refineries 11. Strength, 132 points increase, Fauji Fertilizer 94, Pakistan National Oil 40, Lucky 32 and National Foods 29.

In the future, a number of market experts expect that sentiment to T-bills ($ 1 billion) will continue to boost sentiment as a result of major economic indicators starting this fiscal year. Anxiety over monetary policy, which the State Bank decided to maintain at key rates at 13.25pc, also turned out to be neutral. However, rollover week was thought to remain in exponential range for the next five days.

National economy

The government decided to introduce all unregulated sectors of the national economy under the provisional regulatory regime to handle the earliest reservations for money laundering and terrorist financing (ML and TF) by the International Financial Supervisory Authority (FATF). This decision was made by the National FATF Coordination Committee (NFCC) at a recent meeting.

Prime Minister Lim Lan Khan established a high-performance 12-person NFCC in the first week of October to perform all FATF related tasks by December 1st. One senior government official said us decided to appoint the Federal Revenue Board (FBR) as a temporary regulator in the real estate sector, taking into account inconsistencies between key stakeholders on the establishment of the NFCC proposed real estate regulator.

The FBR will also serve as a regulatory body for jewelries, gems, diamonds and gems, since there is no regulatory body currently in this sector. Similarly, the NFCC recommended the role of lawyers, legal counsel, and regulators to law firms to the Justice Department.

The Audit Supervisory Board has been authorized to act as a regulator for chartered accountants, accountants, financial consultants and everyone involved in the accounting group. Scheduling the Financial Action Task Force on Money Laundering and Terrorist Financing.

For the time being

The Financial Monitoring Unit (FMU) has been responsible for regulating financial transactions through Pakistan Post and state savings. Officials said they decided to take intermediate regulatory action based on feedback and advice from the FATF General Assembly in Paris, which decided to put Pakistan on a gray list by February next year.

Participants of the Paris General Assembly expressed concern that the unregulated sector mentioned above contains a large risk potential to be used as a source of ML and TF. FATF members are reported to have complained that an important region of Pakistan is operating without regulatory authorities and that appropriate regulatory frameworks for these sectors should be in place to mitigate national risks.

Headed by the Minister of Economic Affairs Hammad Azhar, the NFCC consists of the Minister of Finance, Foreign Affairs and Home Affairs, in addition to all the agencies and regulators involved in money laundering and terrorist financing.

Pakistan State Bank

This includes the governor of the Pakistan State Bank (SBP), the President of the Pakistan Securities and Exchange Commission (SECP), the head of the FIA ​​Secretariat, the head of the FBR Secretariat (FBR), and the head of the FMU Secretariat. The committee also has three senior officials from the military headquarters.

At the NFCC meeting held about a week ago, the country's real estate sector noted that the undocumented flow of funds was concentrated. There has been a lot of discussion between federal and local authorities on the establishment and coordination of real estate regulators, but in the process of granting overlapping and independent authority of various stakeholders on the Constitution and related laws, it has taken a long time.

Thus, it has been shown to be feasible until the legal issues that allow FBR to act as regulators in the real estate sector are resolved. FBR was considered to have performed well in the first phase as a regulatory body that had contracted with major real estate companies in the past as part of documentation and taxation purposes.

The documented and undocumented annual business volume in the real estate sector amounts to about 500 billion rupiah. The decision will also help the FBR better meet its tax-related goals, sources said. They said that Pakistan Post's senior officials, courier companies and national savings schemes would work with the FMU for a medium term to address the emerging FATF goals.

The work began to develop an appropriate regulatory framework in accordance with the Department of Postal Services (USPS), the Treasury, the SBP, and the SECP, which were designated as the deadline of December 31, 2019.

After completion

This framework will be shared with the International National Risk Guide for review in January 2020. A Pakistani official said that by December 7, Pakistan will submit an updated progress report to the FATF and the Asia-Pacific Joint Working Group, with strategies and measures on anti-money laundering and anti-financing terrorism (AML / CFT).

The Working Group will seek further explanations (if any) and Pakistan must submit a definitive report based on the Joint Working Group questions by January 7. Pakistani authorities expect 39 joint working groups to review the case in the country by the third week of January.

They will be able to withdraw reservations from 8-9 major countries and report significant progress on the target action plan to the FATF, which will be decided at the next General Assembly, scheduled for the second half of February, for future action processes (removal, expansion). Will. Or graduated from the gray list.

Officials believe that Pakistan has completed a substantial part of its action plan for about 22 items and has missed 4-5 targets. They argue that if reviewed under normal circumstances, Pakistan could be given more time to overcome the remaining flaws.

In some parts of Islamabad

Pakistan unfortunately argues that Pakistan also sees it from a political standpoint. Otherwise, even Afghanistan was not on the graylist or blacklist of FATF. Prime Minister Azhar recently told Pakistan's parliament that “Pakistan faces greater challenges than many other countries because of its risk profile. He said that while Pakistan has to take more steps, only 80 percent of compliance has left some countries excluded from the gray list.