Pakistan Economy_SBP maintains Policy Rate at 15%, (AKD Daily, Oct 11, 2022)
The Monetary Policy Committee (MPC) decided to maintain the policy rate at 15%—in
line with analysts’ expectations. The committee based its decision on the prime objective
of striking a balance between managing inflation and maintaining growth in the country.
Following the floods in the country, the SBP has lowered its FY23 economic growth forecast
to 2%, from the earlier held 3-4%—in line with our expectations of the economy
growing at a modest rate of 2.1%.
The SBP indicated for inflation to possibly settle higher than the earlier estimated range
of 18-20% in FY23. On the flipside, some respite to the inflation reading would come in
the form of lower demand in the economy.
The SBP has maintained its expectations for Current Account Deficit to remain at 3% of
GDP in FY23. Demand for Pakistan’s exports is somewhat inelastic, illustrated by Pakistan’s
exports remaining stable over the past quarter (US$7.12bn, higher by 1.84%YoY)
despite the economic slowdown around the world.
The central bank noted that the economy remains on track to build its FX reserves in light
of the external financing and additional commitments in the wake of the floods (expected
inflows of US$4bn).
In our view, the Central Bank’s guidance for the economy is in line with the investment
community’s expectations, hence have been largely priced into the capital markets.
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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