Our government is often accused of having a myopic vision of development, touting a new plan one day, and then being forced to take a dramatic U-turn the next. Policies regarding the automobile sector over the past few months are a good example of that.
KSE-100 fell this week, primarily due to an increase in SBP’s benchmark interest rate. PKR depreciated further this week, due to a rising import bill. Local gold prices rose slightly again this week, as the depreciating rupee attracted investors towards the commodity.
The annual change in Sensitive Price Index fell to 13.88% vs. 14.33% last week. The poorest of the country (Q1) continue to bear the brunt of increased prices, with a change of 16.25% vs. 13.57% for Q5. On a weekly basis, prices fell for all quintiles by 0.07%.
What Else We’re Reading (Local)
- Tractor prices in Pakistan have skyrocketed, and the Competition Commission of Pakistan thinks collusion between two tractor manufacturers may be behind the price hike. (Profit)
- The Thar coal project has caused water and land insecurity in the region, according to a new research study. (The News International)
What Else We’re Reading (International)
- An independent group of Turkish academics are facing a criminal probe for publishing inflation data showing that prices were rising twice as fast as the government claimed. (FT)
- Evergrande, a Chinese real-estate developer, is in serious financial trouble. If not resolved, it would be the largest debt default by a company in Asia. (WSJ)