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KSE-100 fell again this week, as Covid-19 cases surged in the country. PKR depreciated marginally this week due to oil, commodities and machinery imports. Local gold prices also fell this week.
Pakistan set a new record this week (not the good kind), as the country paid its highest ever price for LNG since imports began in 2015.
The state-owned Pakistan LNG Limited (PLL) had earlier cancelled tenders for eight cargoes for the months of September and October at a price of $13.78 per mmBtu, gambling that international LNG prices would fall in subsequent months. The gamble backfired spectacularly. On the back of surging global LNG prices, PLL has now been forced to buy four cargoes for September at record rates of $15.19-$15.49 per mmBtu. With tenders for the months of October and November about to be floated soon, this record may yet be short-lived.
Is this a case of financial mismanagement on the part of the government, or merely poor luck? Share your informed (or not-so-informed) opinions with me by replying to this email.
KSE-100 fell again this week, as Covid-19 cases surged in the country. PKR depreciated marginally this week due to oil, commodities and machinery imports. Local gold prices also fell this week.
Annual change in Sensitive Price Index fell to 12.20% vs. 12.52% last week. Poorest of country (Q1) were disproportionately affected with change of 15.52%. On a weekly basis, prices rose for all quintiles by 0.03%.
Increase in prices of Petrol (+4.73%), Tomatoes (+6.64%) and Eggs (+3.52%) contributed to inflation this week. LPG prices are also up 9.58% since last week and over 50% since last year. Falling Chicken prices (-18.35%) yet again moderated weekly inflation numbers.
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What Else We’re Reading (Local)
What Else We’re Reading (International)
- Less than 20% of the population are vaccinated in most Asian countries, making them particularly vulnerable to the threat posed by the Delta variant of Covid-19. (Wall Street Journal)
- Tunisia’s president suspended parliament this week, triggering fears of democratic backsliding in the Arab Spring’s only success story. (The Guardian)
