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EUR 8.84 For Business Accounts Only

Pakistan Economy: IMF report highlights risks

​Following from the annual article IV consultation earlier in Apr'17, the IMF issued its review report on Pakistan stressing on management of emerging macro risks to realize expected benefits of CPEC initiatives. While significant macro consolidation was witnessed under the 3yr EFF program, emergent risks are reflected in external a/c deterioration (11MFY17 CAD up 132%YoY), lower fx reserves (down US$1.75bn CYTD) and circular debt accumulation (up PkR53bn in 1HFY17). While the report remains optimistic on growth prospects (FY18 GDP growth estimated 5.5%, similar to our estimate) on energy and infrastructural development, these initiatives are expected to be accompanied with significant build up in BoP vulnerabilities due to considerable dependence on foreign investment and imports. In this regard, related foreign outflows are estimated to reach US$3.5-4.5bn annually by FY25. Counter measures have been advised through greater exchange rate flexibility (REER 10-20% overvalued) and continued reforms in the energy sector. Largely agreeing with the IMF's view, we expect sharp deterioration in external a/c liquidity, projecting FY18F CAD at 4.5% of GDP and 4.9% depreciation in the PkR/US$ parity. 

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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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