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CDWP approves locust Emergency, Food Security Projects
Aug 07, 2020: The Central Development Working Party (CDWP) has approved locust Emergency and Food Security Projects (LEAFS) for uplift of local agriculture sector and combating the locust threat in the country.
The project is the first federal agricultural project, which financed by the World Bank in Pakistan, said a press release issued by the Ministry of National Food Security and Research here Friday.
It said that MinNFS&R is responsible for overall project implementation with the support of provincial governments, Department of Plant Protection, National Locust Control Centre, Food and Agriculture Organization and National Disaster Management Authority.
The project cost envelope is US$200 million equal to Rs32,800 million, it added.
LEAFS project will span out its activities all over the Pakistan focusing migratory, breeding and infestation routes of desert locust, besides it also encompasses capacity building of Department of Plant Protection (DPP) and includes compensation to farmers on account of losses due to locust.
It also includes livestock support program to mitigate negative impacts of desert locust on the livelihood protection and rehabilitation., besides strengthening and establishment of food security and nutrition information system is a major component of the project.
The specific project objectives will be embarked on control of the locust outbreak, to mitigate negative social and economic impact associated with locust attack and to strengthen the national food security system.
The MinNFS&R has overall coordination role of the project implementation through establishing a Federal Project Steering Committee (FPSC), responsible for approval of annual work plans, monitor and review of financial reporting, third party validation in the project and re-allocation of funds.
A project management Unit (PMU) under direct supervision of Secretary NinNFSR with an independent National Project Director with support of needed staff is proposed.
The FAO being technical agency and having the role of global management of locust will provide technical support and assistance to all partners including provincial governments and DPP, strengthening of FSNIS and early warning systems, international and regional coordination, regional locust surveillance and procurement support. The World Bank team will be responsible for effective implementation and monitoring support to the project.
Department of Plant Protection (DPP) is responsible entity mandated to manage the locust outbreak in the country.
In that role DPP will make national locust surveillance and pest management plan, threat assessment, monitoring of locust population, breeding and swarms, strategic coordination and control operations based on locust cycle (desert, cropping areas, cities).
The provincial governments will lead project implementation in the affected areas and agriculture departments will set up Provincial Project Implementation Units under direct supervision of the Secretary of Agriculture.
The NDMA and the PDMAs will support logistics, contingency planning, crisis preparedness and response, at federal and provincial level.
NDMA’s involvement to the project will be triggered only when the locust crisis grows beyond DPP’s control.
The financial benefits of the project are primarily a reduction in Damages and Losses (DALO) due to the locust outbreak.
APP
Closing Bell: Thunderstruck!
Aug 07, 2020 (MNL): The KSE-100 index ended the trading session on Friday with a 136.43 point or 0.34 percent decline to close at 40,029.69, as investors resorted to profit-taking after enjoying a week full of boons.
The overall gains during the week amounted to 771 points, i.e. 1.96% higher than the previous week.
The Index traded in a range of 505.17 points or 1.26 percent of previous close, showing an intraday high of 40,467.09 and a low of 39,961.92.
Of the 94 traded companies in the KSE100 Index 40 closed up 53 closed down, while 1 remained unchanged. Total volume traded for the index was 368.85 million shares.
Sector wise, the index was let down by Commercial Banks with 68 points, Oil & Gas Exploration Companies with 43 points, Cement with 30 points, Power Generation & Distribution with 30 points and Fertilizer with 21 points.
The most points taken off the index was by UBL which stripped the index of 40 points followed by HBL with 33 points, HUBC with 26 points, MCB with 17 points and POL with 15 points.
Sectors propping up the index were Textile Composite with 23 points, Transport with 16 points, Insurance with 15 points, Engineering with 9 points and Cable & Electrical Goods with 7 points.
The most points added to the index was by MEBL which contributed 21 points followed by PIBTL with 16 points, KTML with 15 points, IGIHL with 13 points and PSMC with 9 points.
All Share Volume decreased by 98.04 Million to 728.77 Million Shares. Market Cap decreased by Rs.8.14 Billion.
Total companies traded were 402 compared to 415 from the previous session. Of the scrips traded 197 closed up, 188 closed down while 17 remained unchanged.
Total trades decreased by 10,365 to 185,126.
Value Traded decreased by 1.34 Billion to Rs.23.01 Billion
| Company | Volume |
|---|---|
| Worldcall Telecom | 144,414,000 |
| Pakistan International Bulk Terminal | 52,630,500 |
| Unity Foods | 50,407,000 |
| Pak Elektron | 37,525,000 |
| TRG Pakistan | 36,183,000 |
| Maple Leaf Cement Factory | 23,547,000 |
| Power Cement | 23,248,500 |
| Aisha Steel Mills | 18,025,000 |
| Fauji Foods | 17,164,000 |
| Hascol Petroleum | 16,248,500 |
| Sector | Volume |
|---|---|
| Technology & Communication | 210,762,500 |
| Cement | 75,304,751 |
| Engineering | 60,603,800 |
| Transport | 53,931,500 |
| Vanaspati & Allied Industries | 50,411,300 |
| Commercial Banks | 41,089,575 |
| Cable & Electrical Goods | 40,177,700 |
| Inv. Banks / Inv. Cos. / Securities Cos. | 28,356,600 |
| Food & Personal Care Products | 28,267,960 |
| Oil & Gas Marketing Companies | 22,992,006 |
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Gold extends its record-breaking run
August 7, 2020 (MLN): The yellow metal extended its record-breaking run, driven by expectations of more stimulus measures to counteract the economic disruption caused by coronavirus pandemic. In the international market, the gold prices edged higher to $2,054 per ounce.
So far, safe-haven gold has rallied more than 35% this year.
The other precious metal, silver also surged to $28.18 an ounce.
On the domestic front, gold prices shot up by Rs 2,500 to an all-time high of Rs 132,000 per tola on Friday as investors continued to flock on the safe-haven asset. The valuable yellow metal had closed at Rs 129,500 per tola on the previous day.
The price of 10-gram gold also continued its rally and settled at Rs 113,169 against the previous close of Rs 111,025 per 10-gram.
On a similar note, the 24 Karat- Silver inched up by Rs 60 to clock in at Rs 1,710 per tola. Moreover, 10-gram silver witnessed an increase of Rs 51.44 to close at Rs 1,466.04, as per the Karachi Sarafa Association.
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MSCI Quarterly Index Preview – Major developments are unlikely
August 7, 2020 (MLN): The outcome of MSCI August Quarterly Index Review are slated to be announced on August 12, 2020, which according to research by Topline Securities, shall depict no addition or deletion of constituents in MSCI Pakistan Index.
However, with regards to MSCI Global Small Cap Indexes, the brokerage house expects Habib Bank, i.e. one of the three existing constituents, to be included and Packages Limited to be deleted.
Furthermore, the weight of Pakistan is likely to hover around 0.02% mark.
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EPCL posts a massive 86% YoY decline in half-year profits
August 7, 2020 (MLN): Engro Polymer and Chemicals Limited (EPCL) has unveiled its financial results for the six months ended June 30, 2020. As per results, the company has posted net profits of Rs 222 million, depicting the colossal decrease of 85.59% YoY when compared to net profits of Rs 1.54 billion in the same period last year.
This has translated into earnings per share which clocked in at Rs 0.24 against Rs 1.70 in the aforementioned period.
The massive decline in earnings seen in the financial results below is a result of lower volumetric sales during the period, owing to lower economic activity stemming from the COVID-19 pandemic. The gross profits of the company came down by 51% YoY. As a result of this, the gross margins shrank from 20.89% to 14.80%.
As per the financial statement issued by the company, some of the positive highlights include a decrease in distribution & marketing expenses and other operating expenses by 24% YoY and 41% YoY respectively while other income of the company surged by 57% YoY to Rs 687 million.
The other major highlight is the colossal finance cost which increased by around 88% YoY from Rs 727 million to Rs 1.36 billion when compared to the prior year, hurting the financial stability of the company.
Consolidated Profit and Loss Account for the half-year ended June 30, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Jun-20 | Jun-19 | % Change |
Net revenue | 12,874,294 | 18,600,321 | -30.78% |
Cost of sales | (10,968,700) | (14,715,359) | -25.46% |
Gross profit | 1,905,594 | 3,884,962 | -50.95% |
Distribution and marketing expenses | (113,203) | (150,289) | -24.68% |
Administrative expenses | (246,983) | (282,670) | -12.62% |
Other operating expenses | (640,188) | (1,088,639) | -41.19% |
Other income | 687,506 | 437,613 | 57.10% |
Operating profit | 1,592,726 | 2,800,977 | -43.14% |
Finance cost | (1,366,881) | (727,588) | 87.86% |
Profit before taxation | 225,845 | 2,073,389 | -89.11% |
Taxation | (3,224) | (528,995) | -99.39% |
Profit for the period | 222,621 | 1,544,394 | -85.59% |
Earnings per share - basic and diluted (Rupees) | 0.24 | 1.70 | -85.88% |
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Govt to fully cooperate for uplifting industry, business sectors: PM
Aug 07, 2020: Prime Minister Imran Khan on Friday said the federal government would extend all out cooperation to promote industrial and business sectors of the country.
In a meeting with the Members of National Assembly (MNAs) from Faisalabad here during his visit, the prime minister said Faisalabad had a key importance in national economy.
Federal minister Senator Shibli Faraz, Advisor Shahzad Akbar and Chief Minister of Punjab Sardar Usman Buzdar also attended the meeting.
The MNAs delegation comprised of Chaudhry Asim Nazir, Nawab Sher Waseer, Raza Nasrullah Ghumman, Khurram Shahzad, Farrukh Habibullah, Faizullah and Raja Riaz Ahmed.
The prime minister told the parliamentarians that incentives to the business and construction sectors would ensure development in the country. The steps were being taken for welfare of small and medium enterprises, he added.
The parliamentarians apprised the prime minister of the development works in their respective constituencies.
While discussing the COVID-19 situation, they appreciated the government’s strategy to overcome the pandemic and also lauded performance of the Faisalabad administration.
The MNAs also spoke high of the prime minister’s efforts for highlighting the Kashmir issue, particularly the Indian illegal action of August 5 last, inhuman siege and human rights abuses in Indian Illegally Occupied Jammu and Kashmir.
APP
PKR weakens by 90 paisa in a week
August 07, 2020 (MLN): Pakistani rupee (PKR) appreciated by 25 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 167.88 per USD, against yesterday's closing of PKR 168.13 per USD.
The rupee traded within a very narrow range of 29 paisa per USD showing an intraday high bid of 167.95 and an intraday Low offer of 167.85.
During the week, the currency has lost 90 paisa against the greenback, as the previous week was concluded at PKR 166.98 per USD.
Within the Open Market, PKR was traded at 167.50/168.75 per USD.
Meanwhile, the currency gained 1.8 rupees against the Pound Sterling as the day's closing quote stood at PKR 219.79 per GBP, while the previous session closed at PKR 221.55 per GBP.
Similarly, PKR's value strengthened by 81 paisa against EUR which closed at PKR 198.55 at the interbank today.
On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.1228 billion for 10 days at 7.01 percent.
The overnight repo rate towards close of the session was 7.00/7.10 percent, whereas the 1 week rate was 7.00/7.05 percent.
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Non-Resident Pakistanis can now trade in shares on PSX and invest in Real Estate through NRVA – SBP
August 8, 2020 (MLN): State Bank of Pakistan (SBP) has introduced a separate category of PKR Account named ‘Non-Resident Pakistanis Rupee Value Account (NRVA), in order to facilitate expatriate to open and operate non-resident PKR account through digital means and to invest in shares quoted on the Stock Exchange(s) in Pakistan, residential & commercial real estate, government of Pakistan debt securities and term/ remunerative deposit products of ADs on repatriable basis.
According to the circular issued by SBP, Non-resident Pakistanis (NRPs), foreign nationals except those who have obtained work visa/permit to work in Pakistan, and firms or companies that are incorporated or registered outside Pakistan will be able to open and maintain NRVAs.
Authorized dealers (ADs) will be allowed to open and maintain the following categories of non-resident rupee accounts which include; Non-resident Rupee Account-Repatriable (NRAR), Non-resident Rupee Account-Non-repatriable (NRAN) and NRP Rupee Value Account (NRVA) for Non-resident Pakistanis only.
In addition to this, ADs may open ‘NRP Rupee Value Account’ of non-resident Pakistani individuals only, in addition to other non-resident rupee accounts categories mentioned above.
ADs are advised to enable operations in the account through the digital channels e.g. internet/mobile banking, ATM/ Debit cards, besides the conventional modes in practice. The ADs may also issue cheque book to the account holder, if required.
ADs may issue supplementary ATM/Debit cards as per applicable laws /regulations and banking practices. In case debit cards are used outside Pakistan, settlement there against shall be made by the AD through interbank.
ADs will be allowed to let non-resident Pakistanis to open the account jointly with other residents/non-residents, as per applicable laws/banking practices. These accounts should, however, be treated as non-resident accounts.
In case the account becomes dormant due to non-operation, ADs shall devise a mechanism to reactivate the account digitally, in compliance with the applicable regulations. In addition to this, ADs are required to ensure ongoing monitoring of these accounts to mitigate ML/FT risk.
Furthermore, the circular revealed that Credits allowed in NRVAs include, remittance received from abroad through banking channels, transfer of funds from holders’ Foreign Currency Value Account (FCVA) from other NRVAs with the same authorized dealer, and proceeds from disinvestment, sale or maturity of assets in Pakistan such as Government of Pakistan’s debt securities, residential and commercial real estate, quoted shares, term deposits and profit, rent, dividend and interest on such securities, properties, shares or deposits.
The holder of the account can make investments through NRVA, in Registered Debt securities of GoP (T-bills, PIBs, Sukuk and any other registered debt securities of the government including CDNS securities), Shares quoted on the stock exchange(s) in Pakistan., Residential and commercial real estate and Term /remunerative deposit products of the AD maintaining the account. However, the transfer of funds for the above investments will be allowed by the ADs through the special instructions received from the account holder in this behalf. For investments mentioned.
The account holder can transfer funds to account holder’s own Foreign Currency Value Account (FCVA) and other NRP Rupee Value Account (NRVA) with the same AD. Additionally, he/she can also move funds to other FCY, PKR account and non-resident Rupee account – non-repatriable (NRAN) with any bank in Pakistan.
The account holder may withdraw or make payments in Pak rupees to anyone in Pakistan, however, any amount paid will not be allowed to be credited back into the account.
Remittances and Payments outside Pakistan are to be limited to the extent of balance available in the account. Moreover, the account holder is not required to take any prior approval from the bank or the SBP, except in the case of investment in real estate.
The ADs may allow individual Non-Resident Pakistanis (NRPs) to make payments for investment in the residential and commercial real estate on repatriable basis from their NRP Rupee Value Accounts (NRVA) subject to compliance with the following terms and conditions:
- The Investment shall be made out of funds received from abroad through banking channel in Pakistanor transfer of funds from the account holder’s own Foreign Currency Value Account (FCVA) or other NRP Rupee Value Account (NRVA).
- AD will ensure due diligence and ongoing monitoring of these transactions in line with the applicable ML/FT regulations.
- The investment may be made on installment or full payment basis.
As per the SBP, the minimum investment period in real estate will be three years. Following the completion of three years, investors will be able to repatriate the full amount of sale proceeds of the investment in property.
However, in case of dis-investment before three years, investor can repatriate funds up to the lower of the amount of sale proceeds or his/her principal investment amount in PKR on the date of the investment, while the differential amount, if any, and any profit/return earned from eligible investments made out of this amount may be repatriated after the expiry of three years from the date of investment, the circular revealed.
The SBP also introduced a Foreign Currency Value Accounts (FCVA) which will enable non- resident Pakistanis as well as resident Pakistanis that have assets abroad declared with the Federal Board of Revenue (FBR), to invest in foreign currency denominated government registered debt securities on repatriable basis.
In this regard, the ADs are encouraged to provide online real time convertibility from FCY to PKR based on the request made by the account holder digitally for the eligible debits from the account. For the sake of transparency, the ADs shall indicate the exchange rate that is applicable for the transaction.
Furthermore, the account holders will be able to invest in permissible securities which include, GoP’s registered debt securities and Term deposit/remunerative product scheme, denominated in FCY only, of the same AD.
In addition to this, the holder of the account can transfer funds to his/her own NRP Rupee Value Account with the same authorized dealer and can also transfer to other foreign exchange Pakistani rupee account and non-resident rupee account with any bank in Pakistan.
Moreover, the holders of the account will be allowed to remit and pay outside Pakistan to the extent of balances available in their account without any prior approval from the bank or SBP.
The account holder will be enabled to withdraw cash in foreign currency and equivalent local currency and make payments in Pak rupees to any person in Pakistan. However, the amount paid will not be credited back into the account.
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Export figures of Fish and Food preparations show encouraging trend in July 2020
August 07, 2020 (MLN): Exports of Fish and Fish Products in July 2020 have increased by 50% YoY to US$26 million from US$17 million, said Abdul Razak Dawood.
Advisor to PM for Commerce and Investment has announced on his twitter handle that in line with export product diversification strategy, the exports of the mentioned products have shown encouraging trends in July 2020 over July 2019.
The export of Food Preparations increased by more than 300% to US$6.4M from US$1.44M.
He said, ‘Diversification of our exports away from the traditional sectors to new developmental sectors is an important part of our strategy.’
He congratulated exporters in the above two sectors on their performance. ‘We should not worry about the size of any sector, as all large sectors were once small, but must look at the growth potential.’, he said further.
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OMO Result: SBP Injects Rs.1,228.00 Billion for 10 Days
August 07, 2020 (MLN): The State Bank of Pakistan (SBP) conducted an Open Market Operation on Friday in which it injected Rs.1,228.00 Billion into the market for 10 Days.
| Amount* | Rate | Bids | |||||
|---|---|---|---|---|---|---|---|
| Tenor | Type | Offered | Accepted | High - Low | Accepted | Offered | Accepted |
| 10D | Reverse Repo (Injection) | 1,228.000 | 1,228.000 | 7.11 - 7.01 | 7.01 | 22 | 22 |
| OMO Settlement: same day August 07, 2020 | |||||||
| *Amount in Billions | |||||||
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