Chinese stocks plunged on last Friday, capping their biggest weekly fall this year. The Peoples Bank of China slashed that countrys benchmark interest rate by 25 basis points to 6.31 percent effective Friday, along with a slash on the deposits rate bringing it to 3.25 percent. The rate cut has deepened concerns that growth in China is sputtering and in need for major stimulus.
As if there wasn enough happening in the Pak-US relations arena, recent corruption charges on the Rafi Peer Theatre Workshop - the group contracted by USAID to produce the local version of Sesame Street, Sim Sim Hamara - dealt another unpleasant blow.
The Senate Standing Committee on Finance, it appears, is not content with the budgeted subsidy amount for power sector in the Federal Budget FY13. It wants the power subsidy sector for the upcoming fiscal to be half a trillion rupees - Rs.81 billion more than the revised amount in FY12.
With just a few hours remaining before the announcement of the State Banks monetary policy, consensus appears to be building about the expectation that the central bank will leave the benchmark rate unchanged.
With the energy situation reaching the cusp of collapse, the E&P sector stumbles under the messy mispricing of hydrocarbons which has led to an accelerated depletion of indigenous gas reserves versus production from the new discoveries. So much for the importance of the oil and gas sector, the Budget FY13 remained largely voiceless on the E&P front.