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Sri Lankan shares rise as central bank cuts rates

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Sri Lankan shares rise as central bank cuts rates

Sri Lankan shares rose on Thursday after the country’s central bank cut key interest rates by 250 basis points on easing inflation, signalling that the South Asian nation was emerging from a devastating financial crisis.

The CSE All Share index climbed 1.4% to 8,678.49 by 05:59 GMT. Consumer staples, industrials and financials stocks were the top gainers on Thursday.

“Policy interest rates reduced in view of the faster deceleration of inflation, benign inflation outlook and the easing of BOP (balance of payment) pressures, thereby reinforcing the rebound of the economy,” the CBSL said.

Sri Lanka’s key inflation rate eased to 25.2% in May from 35.3% in April, reducing some stress on the crisis-hit economy.

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The island, struggling to emerge from its worst financial crisis since independence in 1948, secured a $2.9 billion bailout from the International Monetary Fund (IMF) in March.

The central bank’s move to cut rates should aid the equity markets “to some extent,” said Udeeshan Jonas, chief strategist at equity research firm CAL, Colombo.

“The equity market is waiting for the debt restructuring announcement,” Jonas said. Sri Lanka should have a debt restructuring framework in place by September to take the IMF programme forward.

Meanwhile, the central bank expects rate cuts to accelerate the normalisation of the interest rate structure, broad base economic activity and ease pressures in financial markets helping steer the economy towards a rebound phase.

On the CSE All Share index, Expolanka Holdings Plc and ICT solutions provider Sri Lanka Telecom PLC were the top gainers as of now, rising 3.8% and 4.5%, respectively.

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Nawaz left Pakistan with govt permission, it wasn’t a jailbreak: Solangi

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Nawaz left Pakistan with govt permission, it wasn't a jailbreak: Solangi

 Former prime minister Nawaz Sharif had flown abroad after getting permission from the court and the government, not due to jailbreak, said Murtaza Solangi – the caretaker information minister – who added that he would be treated according to law and constitution on his return to Pakistan.

The minister remarked some people were confused on the issue of elections and spreading confusion a business for some others. The caretaker government had no confusion on the issue of elections, he added

Solangi, who visited the Karachi Press Club, told media persons on Saturday that Nawaz was a three-time prime minister and he had no knowledge of which court the PML-n supremo would move after his return.

Replying to various questions on the subject, the caretaker information minister said he didn’t want to speculate as it was Nawaz who would have to answer such queries.

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As the minister faced a flurry of questions about the elections, he again made it clear that the caretaker setup would give equal opportunities to all the registered political parties for taking part in the electoral process.

Solangi reiterated that the caretaker government would fulfil its constitutional responsibilities and provide all the available resources to the Election Commission for conducting the exercise.

When asked about the rupee appreciation and the fuel prices, Solangi said the incumbent setup had no role in pricing mechanism which was linked to the rates in global markets.

However, he added, that there were enough chances of reduction in petroleum products’ rates due to the gains made by the local currency. People would get some benefit of reduction in the value of the dollar, Solangi said.

The minister noted that power theft burdened other consumers and recovering the amount from them through their monthly system was unjustified – a mechanism which, he said, should be changed.

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Solangi said the interim setup was aiming at stabilising the national economy while ensuring that Pakistan didn’t slide towards default and political temperature was cooled down. Legislation wasn’t their prerogative but would do everything reduce the current problems, he added.

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CTD arrests terrorist of banned outfit in Jamshoro IBO

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CTD arrests terrorist of banned outfit in Jamshoro IBO

A team of Hyderabad Counter-Terrorism Department (CTD) on Friday arrested one alleged terrorist associated with a banned outfit during an operation in Jamshoro, Dunya News reported.

According to a CTD spokesperson, a CTD team conducted an Intelligence-based-operation (IBO) in Jamshoro and arrested a terrorist belonging to banned organisation.

He also informed that the arrested terrorist was involved in providing funds to terrorist organization.

The spokesperson further informed that a 30-bore pistol, funding receipts and other evidence have been recovered from the arrested terrorist. He said that further investigation is ongoing.

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Mother, son killed in road accident near Sheikhupura

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Mother, son killed in road accident near Sheikhupura

 A woman and her son were killed and two other children were wounded when the motorcycle they were riding on was hit by a dumper near Sheikhupura on Friday night,

According to details, the accident occurred in Farooqabad area near Sheikhupura where a rashly driven dumper hit a motorcycle, killing a woman and her son on the spot and injuring two other children.

Police and rescue teams reached the spot and shifted the dead and injured to hospital.

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