Pakistan’s total exports in June 2021 clocked in at US$2.7bn, up a sharp c.65% mom, while up c.70% yoy (distorted by Covid-19 lockdown last year). Textile exports surged to a record high as well, of c. US$0.40bn, where raw cotton imports rose c.25% m...

As per SBP data, Pakistan’s current account deficit in June 2021 deteriorated to a 30mth high of US$1.65bn - turning the cumulative balance in FY21 to a deficit of US$1.85bn from a near surplus in the previous 11 months. In concert, the PKR/USD has d...

In this report we explain what is driving this low credit penetration, what steps the authorities have recently taken to tackle this issue, and the potential impact of fintechs. This has led to the overall loans/deposits ratio of banks coming down fr...

For June 2021 results, we expect our Auto Universe to post combined net profits of PKR4.9bn, down 8% qoq, amid a 16% qoq decline in volumetric sales and slight improvement in margins, in our view. The announcement of the awaited new Auto policy and r...

The rapid Taliban advance in Afghanistan, as US forces withdraw, has implications for Pakistan’s security and trade. Other major exports included chemicals, pharmaceuticals, machinery, electrical equipment and paper & packaging material. Note that ex...

Pakistan’s investment industry is deeply underpenetrated. There is scope for more investechs in Pakistan. This is similar to what we have seen in other markets; for example, Ant Group, the world’s largest fintech, started as a payments platform (Alip...