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CCP conducts search & inspection of a sugar mill group head office
September 25, 2020: The Competition Commission of Pakistan (CCP) today carried out a search and inspection of a sugar mill head office in Lahore, to impound proofs of the group’s suspected involvement in anti-competitive activities in violation of the Competition Act, 2010.
As part of an ongoing inquiry into the possible anti-competitive activities in the sugar industry, the CCP on 14 September 2020 carried out a search and inspection of the Pakistan Sugar Mills Association’s Lahore and Islamabad offices and impounded PSMA’s record including the correspondence done through letters, emails, and WhatsApp messages, between various members and office bearers of PSMA.
The impounded data included the exchange of emails between a senior official of one of the Sugar Mill (Member of PSMA) and PSMA Punjab zone office bearers regarding sensitive commercial information such as mill-wise, district-wise sugar stock position, and even the quantity of cane crushed, sugar produced, recovery percentage, carry forward old/raw sugar, total sugar, quantity sold, balance and sold percentage.
Moreover, an analysis of the WhatsApp messages exchanged in a group of PSMA officials, the same senior official of that Sugar Mill was found to be in constant communication with regard to price and stock-related data of sugar mills.
The impounded data indicated the senior official’s continued involvement in sharing/receiving sensitive information regarding the sugar industry since 2012 when he was nominated as the focal person for coordinating the sugar stock position by PSMA.
The CCP suspects that the compilation, consolidation, and distribution of sensitive commercial information using the PSMA’s platform could lead to possible proof/corroboration of collusive activity/cartelization that is violative of the Competition Act. The search team has impounded the relevant print and electronic material from the above-mentioned Sugar Mill premises for further scrutiny.
Press Release
NBP issues Foreign Exchange Rates
September 25, 2020: Treasury Management Division of National Bank of Pakistan (NBP) on Thursday issued...
Pakistan receives $2.248 billion external inflows during Jul-Aug FY21
September 25, 2020 (MLN): Pakistan has received foreign aid worth $2.248 billion during the first two months of the fiscal year 2020-21 from bilateral and multilateral development partners, foreign commercial borrowing, and time deposits to influence the process of development by increased investment in productive resources and transferring the modern technology.
This foreign aid in Pakistan is a major source of socio-economic & human development, the capital formation which can trigger economic growth.
According to the data released by the Policy Analysis & Development Wing of EAD, this external inflows from multiple sources is around 18% of the annual budget estimates of $12.23 billion for the entire fiscal year FY 2019-21. In the corresponding period of the fiscal year 2019-20, the external inflows were $1.659 billion i.e. around 13% of the annual budgeted amount of $12.958 billion.
It is pertinent to mention that the economic activity is reviving post-COVID-19 lockdowns which may lead to jack-up the project financing in the current fiscal year 2020-21.
Details made available here on Friday by Policy Analysis & Development Wing of EAD, out of $2.248 billion, the government received $961 million or 44% in the form of program/budgetary support assistance to restructure Pakistan’s economy, $149 million (7%) as foreign commercial borrowing to repay maturing international Sukuk and other foreign commercial loans, $138 million (6%) as project assistance to finance its development projects for improving the socio-economic development of the country and for asset creation and $1 billion received in terms of time safe deposits.
During Jul-Aug FY21, the bilateral and multilateral development partners have disbursed $1.099 billion of foreign economic assistance against the budgetary allocation of $5.811 billion for the fiscal year 2020-21 on concessional terms with a longer maturity, the monthly bulletin of Foreign Economic Assistance by Economic Affairs Division (EAD) reported.
Foreign assistance obtained by Pakistan through multilateral sources during Jul-Aug FY21 totaled $1.043 billion. Amongst the multilateral development partners, Asian Development Bank provided $259 million and World Bank $531 million against the budgetary allocation of $2.257 billion.
The monthly bulletin revealed that the collective disbursement from bilateral donors amounted to $56 million during Jul-Aug FY21 wherein Pakistan received $23.7 million from France, followed by the United States with $23.9 million and the UK with $7 million.
On the external outflows front, during July’20, the total servicing of external public debt was $484 million against the annual repayment estimates of $10.363 billion for the entire fiscal year. Of this, $8.338 billion (82% of total external public debt servicing) was repaid as principal and $1.802 billion (18%) as interest on the outstanding stock of external public debt.
During FY21, the monthly bulletin disclosed that Pakistan settled $331 million to multilateral and $102 million worth of external loans to bilateral development partners.
Moreover, during FY20, the government repaid $51 million worth of foreign commercial loans and repaid $1 billion worth of international Sukuk issued in December 2014, the bulletin revealed.
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Investment in securities by Overseas shows a two-fold increase via SCRA
September 25, 2020 (MLN): The gross sale of securities via Special Convertible Rupee Account (SCRA), during the week ended September 18, 2020 was recorded at Rs.21.4 billion, which is around 122.8 percent higher than the figures recorded last week.
According to a weekly report on SCRA released by the State Bank of Pakistan, the total purchase of securities stood at Rs.17.8 billion, which is 113.4 percent higher than the prior week.
Consequently, the net sale of securities for the week ended September 18, 2020 clocked in at Rs.3.61 billion, i.e. around Rs.2.34 billion lower than last week's numbers.
Over the week, the overall purchase of securities rose by Rs.9.45 billion while the net sale of securities increased by Rs.11.8 billion.
Apart from this, the inflow of remittance into these accounts stood at Rs.9.25 billion, while its outflow has been reported at Rs.10.57 billion.
The closing balance of SCRA was recorded at Rs.33.1 billion, which marks a rise of Rs.2.46 billion over the week.
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Government’s domestic debt rises by 6% YoY in July
September 25, 2020 (MLN): The total debt of Central Government during the month of July 2020 stood at Rs. 35.5 trillion, i.e.1% percent higher than the figures reported last month. Whereas, on a yearly basis, this debt figure was 8% higher compared to Rs 32.80 trillion recorded in July 2019.
The data released by the State Bank of Pakistan (SBP) shows that the larger portion of the debt was domestic, whereas the remaining was external. The Central Government Domestic Debt amounted to Rs. 23.39 trillion during the month, signifying a growth of 6% YoY, while remained stationary compared to last month.
Central government’s domestic debt is divided into two broad categories i.e. long-term debt and short-term debt. Long-term debt is further divided into three broad categories namely; Market loans, Federal government bonds and Prize Bonds which collectively termed as permanent debt. By the end of July 2020, the government’s long-term debt increased by 2% MoM while on yearly basis, it surged by 19% to Rs 18 trillion, as it was Rs 15.23 trillion at the end of July 2019.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs. 13.2 trillion, and Saving Schemes accounted for Rs. 3.5 trillion.
With regards to the government’s short-term debt which comprises of Bai Muajjal, Market Treasury Bills, MTBs for Replenishment of Cash and Outright Sale of MRTS to Banks clocked in at Rs 5.3 trillion during the month under review, depicting a decline of 21% YoY and 4% MoM.
In the short-term, the major portion of the debt was MTBs which amounted to Rs 5.33 trillion, portraying a reduction of 14% YoY and 4% MoM.
Meanwhile, the Central government’s External debt which excludes IMF loans to Central Bank for BOP support and includes foreign exchange liabilities and IMF loan for budgetary support logged in at Rs 12.16 trillion, registering an upsurge of 13% YoY and 3% MoM, as it stood at Rs 10.78 trillion at the end of July 2019 and Rs 11.8 trillion in preceding month.
A breakup of the Central Government External Debt shows that nearly Rs.11.97 trillion came from long-term loans while Rs. 186.9 billion came from short-term loans.
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Pakistan LNG Ltd to sell unutilized LNG
September 25, 2020 (MLN): Pakistan LNG Limited has decided to sell its unutilized LNG, thereby inviting interested parties to seek allocation of its unutilized capacity on a short-term basis.
The unutilized contracted capacity shall be made available to all interested parties, credible sources informed on Friday.
Around 150 MMCFD of regasification would be available for October 2020, 200 MMCFD for November, whereas none would be available for December 2020 and January 2021.
For February 2021 and March 2021, it would be estimated at 200 and 150 MMCFD.
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Ismail Industries earns PKR 423.7 million in FY20
September 25, 2020 (MLN): Ismail Industries Limited has suffered a 33% decline in earnings as the profits for the year ended June 30, 2020, stood at Rs. 423.7 million as compared to Rs. 631.3 million recorded last year.
The Earnings per share of the company was stated at Rs. 8.85, i.e. around 22% lower than that of the previous year.
The Board of Directors of the company also announced a final Cash Dividend for the year at Rs. 3 per share i.e. 30%. This is in addition to the interim cash dividend already paid at Re. 0.50 per share i.e. 5%.
According to the company’s financial report, the sales revenue saw a growth of almost 11%, whereas the cost of sales increased by 11.3%, causing the gross profit to surge by 8.4%.
The major expense heads i.e. Selling & Distribution and Administration costs saw an increase of 26.4% and 18%, respectively.
The biggest highlight of the year was the 9.84x increase in the share of profit from associated companies, which translated into a growth of Rs. 446.6 million.
While there was an increase in finance cost by 27%, the company got some respite from a decline in the income tax expense by 11%.
Consolidated Financial Results for the year ended June 30, 2020 (Rupees) | |||
|---|---|---|---|
Jun-20 | Jun-19 | % Change | |
Sales | 41,034,240,755 | 37,117,261,720 | 10.6% |
Sales returns, discounts, and direct expense | (2,009,975,223) | (1,791,242,484) | 12.2% |
Export Rebate | 10,589,965 | 9,605,597 | 10.2% |
Sales tax | (5,610,093,075) | (5,148,620,097) | 9.0% |
Sales-net | 33,424,762,422 | 30,187,004,736 | 10.7% |
Cost of sales | (26,592,382,801) | (23,881,824,697) | 11.3% |
Gross Profit | 6,832,379,621 | 6,305,180,039 | 8.4% |
Selling and distribution expense | (4,780,161,529) | (3,780,870,997) | 26.4% |
Administrative expenses | (692,201,269) | (586,593,213) | 18.0% |
Other expenses | (182,184,602) | (172,282,473) | 5.7% |
Other income | 356,159,161 | 213,759,588 | 66.6% |
Finance cost | (1,211,530,291) | (956,336,302) | 26.7% |
Share of profit from associated companies | 491,972,141 | 45,385,014 | 984.0% |
Profit before taxation | 814,433,232 | 1,068,241,656 | -23.8% |
Taxation | (390,737,914) | (436,942,413) | -10.6% |
Profit after taxation | 423,695,318 | 631,299,243 | -32.9% |
Earnings per share | 8.85 | 11.4 | -22.4% |
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Milk corporate farming sector presents an import substitution approach: Razak Dawood
September 25, 2020 (MLN): Adviser to Prime Minister of Pakistan for Commerce and Investment, Abdul Razak Dawood, had a long and fruitful meeting with the milk corporate farming sector and the milk processors wherein they presented an import substitution strategy.
Taking his twitter handle, he said that it has presented the Ministry of Commerce (MoC) with a very interesting challenge of building the corporate livestock farms and enabling them to meet the supply requirements of the processors in such a manner that the whole supply chain is economically viable.
‘A strategy of reducing input costs to the livestock industry, changing the tax structure, will have to be examined. This is purely an import substitution approach with no prospects of exports’, he concluded.
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Federal Minister for Maritime Affairs inaugurates online portal for ports, shipping wing
September 25, 2020: Federal Minister for Maritime Affairs Ali Haider Zaidi has inaugurated online portal and a website for ports and shipping wing.
Speaking on the occasion, Federal Minister said a major milestone has been achieved by the Ministry of Maritime Affairs for digitalization of data, facilitation of seafarers, manning agents and ship owners by inauguration of a one window online portal.
He said that the online portal will help the seafarers in the issuance of their Seafarers Identity Card, Seafarer service book, online verification for Visa issuance and resolution of other issues faced by them.
Ali Haider Zaidi said the website for Ports and Shipping division has also been launched for the very first time in the history.
He said that the ministry is making efforts to further improve the services by launching online portal.
Radio Pakistan
Din Textile Mills to set up Rs 3 billion Weaving Project
September 25, 2020 (MLN): For the sake of achievement of value addition goal, the board of directors of Din Textile Mills Limited has given approval to set up a weaving project.
The project is expected to be functional by the end of January 2021, the company’s notice to PSX revealed.
The project will require 120 Air jet looms- Picanol N.V. The looms and ancillary machinery will cost Rs 2.3 billion.
The expected total cost of the aforesaid project is Rs 3 billion.
After successful execution of the project, the company can produce 13 million meter fabrics, which will generate an additional expected sale of Rs 3.6 billion for the company.
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