FY22 Budget_Getting in the growth groove, (AKD Daily, Jun 08, 2021)
AKD Daily
FY22 Budget: Getting in the growth groove
- IMF mandated fiscal discipline while extending Govt.’s pro growth initiatives, and enhancing social safety nets are likely to be the pillars forming FY22 Budget, to be released on Jun 11’21.
- Widely reported revenue collection target of PkR5.8trn necessitates additional revenue measures of ~PkR500bn which the Govt. plans to collect from eliminating certain sales tax exemptions amounting to PkR190bn and other income tax exemptions while the rest falls on systematic changes to tax collection mechanism (ease of documentation etc.) - the hallmark of previous budget.
- The upcoming budget is likely to cast positive reverberation on Agriculture, Autos, and IT sectors while benefits to local Construction chain cannot be ruled out. Elimination of tariff lines on raw material imports would also be included where authorities look to provide relaxation on imports to Textiles, Pharma, Engineering, Footwear, and Chemicals.
- KSE-100 has gained 7.0% in the past one month, recording the strongest pre-budget rally since FY14. We expect market continuing with its bull run, where our understanding is based upon previous market trends where pre-budget performance is extended in the near term (13 times out of 17) and current strong corporate earnings.
AKD Research
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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