Karachi Stock Exchange: Today’s News & Views

1. S&P affirms Pakistan’s ratings at ‘B-/B’ with a stable outlook where the former believes that the GoP’s reform effort should lead to external funding support even as fiscal weakness remain within the backdrop of political and security risks. In other news, provisional revenue collection amounted to PKR = 134 bn in Jul’ 2013 up a robust 25% YoY, while Jul 2013 CPI has clocked in at a relatively high 8.26% YoY.
   
2. Heavy rain struck various parts of Pakistan over the weekend with consequent flash floods in Khyber Pakhtunkhwa and Sindh wreaking widespread damage, causing loss of lives and destroying crops.
   
3. The GoP expects to raise over PKR 325 bn to PKR 350bn from a two-phase hike in power tariffs. In this regard, the tariff for industrial and commercial sectors is reportedly proposed to be increased by up to 99% from Aug 01, 2013 while rates for domestic and agriculture consumers will be raised by up to 117% from Oct 01, 2013.