January 27, 2022 (MLN): Amreli Steel Limited (ASTL) has signed an agreement with K-Electric (ICE) for enhancement of grid station load by 51 MW, the company filing on PSX showed today.
This will increase the total load with the company from 69 MW to 120 MW, the notification added.
This addition is aimed to cater to the additional demand for the future business needs of the company.
Copyright Mettis Link News
30438
May 19, 2022 (MLN): Packages Limited (PSX: PKGS) is planning to expand the capacity of Bulleh Shah Packaging by a further 30-35% in addition to the expansion already announced. This additional capacity is expected to come online in 1HCY23, the management of the company informed while holding a corporate briefing session.
This expansion will help the Bulleh Shah’s capacity of the corrugated cartons to 225KT and paper & board to 450KT, as per briefing takeaways covered by JS Global.
To recall, growth in this segment was limited due to a fire that broke out in the company’s finished goods section. As a consequence of the fire, the closure of the production facility has been moved ahead.
The company has insurance claims against the incident which are expected to be recovered in 4-5months. Under the segment, the company has a corrugated cartons division with a capacity of 105KT and a paper & board division with a capacity of 265KT.
Bulleh Shah remained the second-highest contributor to net sales (42% during CY21) during the quarter posting a growth of just 5% YoY to Rs9.85bn.
In the paper and board segment, sales mix stood at 45% brown paper and 55% white paper where 65% of sales of white paper are generated from tobacco companies. The company plans to increase its market share in the segment post capacity expansion, the management further informed.
In addition, the company has increased its stake in Tri-Pack Films Limited (TRIPF) in February 2022 through additional investment taking it from 49.9% to 69.0% making it one of its subsidiaries and the 3rd highest contributing company in consolidated net sales of PKGS.
To note, TRIPF is involved in the business of producing BOPP and CPP holding a sizable share in the market. These films are primarily used in the food industry for packaging of various items such as chips, biscuits etc and have seen a surge in demand post-COVID as travel restrictions have led to higher consumption of snacking food items.
Furthermore, with the introduction of online delivery services, demand for BOPP and CPP films is expected to remain elevated. Total CAPEX incurred by the company is anticipated to be around Rs33bn for all upcoming projects including the investment in TRIPF.
The house was also briefed regarding the sales mix of the company as the management highlighted that Packages converters accounted for the highest growth during the quarter growing to Rs9.87bn, which is up by 35% YoY.
The segment contributed 34% to the company’s topline during CY21. Under this segment, the company produces folding cartons, flexible packaging and consumer products.
Adding to it, the management stated that 48% of the revenue in the segment is generated by flexible packaging while 29% is accounted for by folding cartons and 23% by consumer products. The consumer products segment is expected to grow the fastest owing to rising demand for items such as tissues, paper cups and paper plates.
The investors were apprised regarding the financial performance of the company as per which the company had posted consolidated net sales of Rs26.9bn which is up by a staggering 37% as compared to the same period last year.
The surge in profitability was attributed to a combination of multiple reasons including growth in demand from the food sector leading to higher sales for all the company’s food-related subsidiaries and the inclusion of TRIPF in the consolidated accounts. As a result, earnings expanded by 2.2x YoY to Rs41.06 per share.
Copyright Mettis Link News
May 19, 2022: The government has released funds amounting to Rs1,949.72 million to execute seven ongoing and six new petroleum-related projects during the first 10 months of the current fiscal year under the Public Sector Development Programme (PSDP 2021-22) against a total allocation of Rs3,249.54 million.
Out of the total disbursement of Rs1,949.72 million, around Rs586.54 million have been spent on petroleum projects during a 10-month period (July-April) of the current fiscal year to accelerate oil and gas exploration activities and achieve self-sufficiency in the energy sector, according to official data available with APP.
As per the PSDP document, funds amounting to Rs1,473.683 million had been earmarked for seven ongoing schemes, out of which Rs 263 million were meant for the establishment of the National Minerals Data Centre (NMDC), Rs345.321 for the Expansion and Up-gradation of Pakistan Petroleum Core House (PETCORE), Rs30 million for Geological Mapping on 50 Toposheets, out of 354 unmapped Toposheets of Outcrop Area of Balochistan Province, Rs385.336 million for strengthening and up-gradation of Karachi Laboratories Complex (KLC) at HDIP Operations Office, Karachi, Rs 76.580 million for the supply of 13.5 MMCFD gas at Doorstep (Zero Point) of Dhabeji Special Economic Zone (SEZ) Sindh, Rs 230 million for the supply of 30 MMCFD gas at Doorstep (Zero Point) of Rashakai Special Economic Zone (SEZ) and Rs143.446 million for up-gradation of POL testing facilities of HDIP at Islamabad, Lahore, Multan, Peshawar, Quetta and ISO Certification of Petroleum Testing Laboratory at Islamabad.
Similarly, for six new schemes, the government had earmarked Rs1,775.857 in the PSDP, out of which Rs40 million were kept for the development of Strategic Underground Gas Storages (SUGS) – hiring of consultancy services for Bankable feasibility study and transaction advisory services (PC-II), Rs30 million for Legal Consultancy Services for drafting of Model Mineral Agreement and updating of Regulatory Framework (Federal and Provincial Minerals/Coal Departments) prepared by Mineral Wing, Petroleum Division, Rs40 million for Pakistan National Research Programme on Geological Hazards (Earthquakes and Landslides) - Data Acquisition along Active Faults and Identification of Potential Landslides Hotspot Zones, Rs73.447 million for the supply of 10 MMCFD RLNG to Bostan Special Economic Zone, Rs149.410 million for the supply of 13 MMCFD RLNG to Bin Qasim Industrial Park and Rs785 million for the supply of 40 MMCFD gas/RLNG to Allama Iqbal Industrial City Special Economic Zone (SEZ).
APP
May 19, 2022: The federal budget for the fiscal year 2022-23 will be business friendly and contribute to the promotion of exports and businesses in the economy, Finance Minister for Finance and Revenue Miftah Ismail said during a meeting with Mr. Shini Yanagi - Vice Chairman of Indus Motor Company at Finance division on Thursday.
While welcoming Mr. Shini Yanagi, Miftah Ismail said that the present government is cognizant of the issues of the business community and hurdles in the expansion of business activities in the country.
He said that present government is committed to provide conducive and friendly environment to the investors and businessmen for the growth of economic activity and enhancement of exports. He further said that the upcoming budget.
Mr. Shini Yanagi and Mr. Ali Asghar Jamali-CEO of Indus Motor Company briefed the Finance Minister on the performance of the company and its contribution to the revenue of Pakistan. They also presented some proposals concerned with auto industry for the upcoming budget. They requested for support of the government to the auto industry in the upcoming budget in order to sustain the consumer prices and sales of cars.
The Finance Minister further assured Mr. Shini Yanagi - Vice Chairman of Indus Motor Company of government’s full cooperation and support.
Press Release
May 19, 2022 (MLN): To put off pressure from foreign exchange reserves and stabilize the exchange rate, the government has decided on Thursday to ban the import of non-essential luxury items.
While addressing a news conference, Minister for Information and Broadcasting Marriyum Aurangzeb informed that a blanket ban had been imposed on the import of non-essential luxury items to redress current economic woes under the 'Comprehensive Economic Plan'.
“A comprehensive economic plan had been formulated under which a fiscal management policy would be introduced to steer the country out of the current economic crisis. The plan would help reduce the country’s reliance on foreign debts," she added.
The minister further said it has been decided for the first time that the import of non-essential luxury items would be banned completely.
It included food items, decoration items, imported vehicles, mobile phones, home appliances, fruits, dry fruits, crockery, shoes, door and window items, lightening equipment, sauces, frozen meat, fish and carpets, tissue papers, make-up items, furniture and confectionary brands, shampoos, jams, jelly, sun-glasses, ice cream, chocolates, musical instruments and cigarettes.
Adding to it, she noted that there has been an emergency situation in the country and people will have to make sacrifices.
The economic initiatives of the current government would have a swift impact on the foreign exchange reserves for the next two months and there would be an annual impact of around $6 billion.
The government's foremost priority is to minimize dependency on the import, while an export-oriented economic policy would be introduced to give a boost to the local industry which would eventually enhance employment opportunities in the country.
All in all, these measures under the plan would not only have a direct impact on the current account deficit but also help stabilize the rupee against the dollar.
Meanwhile, Prime Minister Shehbaz Sharif is quite hopeful regarding the outcome of the above-stated decision of import ban on luxury items. Expressing his views while taking his official Twitter account, he said, "My decision to ban the import of luxury items will save the country precious foreign exchange."
"We will practice austerity & financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden inflicted on them by the PTI government," he added.
At present, the import bill for the month of April stood at $66.78bn while in 10MFY22, the bill soared to $655.37bn up by 46% compared to the same period last year.
Copyright Mettis Link News
May 19, 2022 (MLN): The total liquid foreign exchange reserves held by the country decreased by $214.7 million or 1.3% WoW to stand at the lowest level of $16.16 billion since Dec 06, 2019, during the week ended on May 13, 2022, compared to $16.37bn in the previous week, weekly data released by the State Bank of Pakistan (SBP) on Thursday showed.
The data further revealed that reserves held by the central bank during the week dipped by $145mn or 1.4% WoW to clock in at the lowest level of $10.16bn since June 19, 2020, mainly due to external debt payments.
Meanwhile, the reserves of commercial banks moved down by $69.6mn or 1.1% WoW to $5.9bn.
It is important to note that, the current level of foreign currency reserves is barely enough to cover 1.52 months of imports.
The continues decline in foreign exchange reserves has created strong spell of currency depreciation as it helped dollar to complete its double century against the Pakistani rupee (PKR) today. The local unit has lost 1.6 rupees to close the trade at PKR 200 per USD.
Copyright Mettis Link News
