Equity Market: KSE-100 index posted a return of 1.6% during CYTD 2023 to settle at 41,075 points level. Overall, volatility remained high due to political uncertainty, weak macro-economics and overall lack of clarity. Foreign exchange reserves of the Country declined significantly, and PKR also remained under pressure.
Interest Rates: The SBP increased policy rate from 16% at Dec-22 end to 21% (+500bps) in CYTD. In its last meeting, the Monetary Policy Committee increased the policy rate by 100bps to 21%. High inflation numbers warranted a strong policy response.
Inflation: Inflation surged to all time high levels due to supply issues of commodities and weaker PKR. This also increased food imports bill of the Country. During first four months of 2023, consumer price inflation averaged at 32.7%. Latest inflation reading of Apr-2023 was 36.40%. Higher foods prices, house rents, electricity/ energy tariffs, fuel prices and price surges across other categories are all contributing to higher inflation.
External Account: Current Account deficit during 1Q of CY 2023 was USD 440 million surplus. Current account was mainly controlled through import restrictions.
USD/PKR: PKR weakened against USD by about 23% during Jan-Apr 2023 and PKR/USD parity closed at around 287 at the Apr-23 end.
10,000.00
100
5,000.00
50
0.00
0
Dec- Jan- Feb- Mar- Apr- May- Jun-
Jul-
Aug- Sep- Oct- Nov- Dec-
Jan- Feb- Mar-
21
22
22
22
22
22
22
22
22
22
22
22
22
23
23
23
Inflation vs Discount Rate of Pakistan
35.4%
36.4%
40.0%
31.5%
35.0%
24.9%
27.3%
26.6%
23.8%
24.5%
27.6%
30.0%
21.3%
23.2%
25.0%
13.4%
13.8%
20.0%
11.1%
10.9%
11.5%
12.3%
13.0%
12.2%
12.7%
15.0%
9.7%
8.4%
8.4%
9.0%
9.2%
20.00%21.00%
16.00%16.00%17.00%17.00%
10.0%
13.75%13.75%15.00%15.00%15.00%15.00%
12.25%
5.0%
8.75% 9.75% 9.75% 9.75% 9.75%
7%
7%
7%
7%
7%
7.25% 7.25%
0.0%
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
IGI HoldingsCreating aLimitedbetter tomorrow
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IGI Holdings Ltd. published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 10:32:42 UTC.
IGI Holdings Limited is a Pakistan-based investment holding company. The Companyâs subsidiaries include IGI General Insurance Limited, IGI Investments (Private) Limited, IGI Life Insurance Limited, and IGI Finex Securities Limited. The Company operates through four business units: Conventional Business, Takaful Business, Life Business and Family Takaful. Its Conventional Business includes Non-Life Business, and Brokerage and Investment Business. Its Takaful Business includes five primary business segments, such as fire, marine, health, motor, and miscellaneous. Its Life Business include The Life (participating) segment, The Life (non-participating) segment, The Life (non-participating) Group segment, The Investment Linked business segment, The Accident and Health - Individual segment, The Accident and Health - Group segment and The Pension Fund segment. Its Family Takaful business includes The individual family, The Group Family, and The Group Health Takaful business segment.
IGI HOLDINGS LIMITED 
