January 24, 2021 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.
Events of Importance through the Week:
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in its meeting held on Friday, in Karachi, decided to maintain the Policy Rate at 7 percent.
The same day, a meeting of the Cabinet Committee on Energy (CCOE) was held under the Chairmanship of Federal Minister Asad Umar, wherein the committee approved a proposal for discontinuation of natural gas supply for power generation.
Meanwhile, the Executive Committee of the National Economic Council (ECNEC) approved the largest health care project ever done by the federal government worth Rs. 70 billion.
Minister for Science Technology Fawad Chaudhry on Friday hoped that the government will soon finalize the mechanism for the successful implementation of 'EV Policy for 4-Wheelers' in the country to boost the economy, reduce pollution levels and generate employment in the transport sector.
On the vaccine front, Pakistan's Foreign Minister Shah Mehmood Qureshi said on Thursday that China has agreed to provide half a million doses of the Chinese Sinopharm COVID-19 free of cost to Pakistan by January 31.
On Thursday, the government increased the electricity tariff by 1.95 rupees per unit against the proposed raise of 2.18 rupees per unit, due to the burden that capacity charges will reach 1,455 billion rupees by the end of 2023, Minister for Power Division Omar Ayub announced on Thursday.
Furthermore, Federal Minister for Privatization Mohammed Mian Soomro chaired the Privatization Commission (PC) Board meeting on Thursday, in Islamabad, wherein the board approved committees for pre-qualification of potential bidders for HBFCL, JCC, and FWB.
Besides, the government on Thursday issued revised profit rates for National Saving Schemes certificates, which will be put into effect from January 21, 2020.
On Wednesday, Adviser to Prime Minister for Commerce and Investment, Abdul Razak Dawood informed that the Temporary Economic Refinance Facility (TERF) providing long-term concessionary refinance at 5% for manufacturers and exporters has shown excellent results.
In addition, he also informed that Government approved Rs. 213 million for Duty Drawback of Local Taxes and Levies (DLTL) payments of the non-textile sector.
Moreover, in a bid to attract investments in Panda Bonds, the Federal Government exempted the payment of principal and profits on such bonds from all kinds of tax.
On the upside, in a major achievement towards ensuring ease of doing business, Pakistan improved 31 positions, from 142nd to 111th, on the rank of Trading Across Border Index.
Announcements
On the equity front, Sazgar Engineering Works Limited submitted a progress report in respect of utilization of proceeds of Right Issue of Rs. 710 million for the setting up of the company’s four-wheeler project, up to December 31, 2020.
Shell Pakistan Limited, in response to an inquiry letter sent by PSX, clarified that the MoU signed with K-Electric to explore the possibility of electric charging stations, initially at three locations in Karachi, is only preliminary and nothing concrete has been finalized as of the date hereof.
K-Electric Limited (KEL), welcomed the landmark decision by the Sindh High Court, under which all petitions challenging the privatization of the company have been dismissed in favor of KE, its shareholders, and the Privatization Commission (GOP), as announced in the open court on Thursday.
Furthermore, the Pakistan Stock Exchange, on Wednesday and Thursday, issued a series of notifications to various companies inquiring about the unusual changes in the price and volume of their shares.
Besides, Hi-Tech Lubricants Ltd. (HTL) and Hyundai Nishat Motor (Pvt.) Ltd. (HNMPL) through its After-Sales Department entered into an agreement on January 18, 2021, for the Sale, Supply & Branding of ZIC Brand Lubricants to all the Authorized / Designated Dealers of HNMPL.
Also, the Board of Directors of Cherat Cement Company Limited, in its meeting held on January 18, 2021, decided to undertake BMR for Cement Line 1 and install the main Crusher.
In addition, Samin Textiles Limited received a notice of Public announcement of intention from potential Acquirer i.e. Mr. Haroon Ahmad Khan to acquire more than 30% shares of the company, together with Management control.
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