September 21, 2020 (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:
On Friday, China’s Minister for Transport, Li Xiaopeng had a meeting with Pakistani Ambassador to China, Moin-ul-Haque and both sides agreed to boost cooperation in the transport sector.
The same day, Prime Minister Imran Khan approved the establishment of three markets along Pak-Afghan and Pak-Iran borders as a pilot project.
Meanwhile, CCoE discussed proposal for waiver of minimum 66% Take-or-Pay commitment in PPAs and GSAs.
On Thursday, Pakistan was selected to the Committee for Programme and Coordination (CPC) by securing 52 votes from the 54-member United Nations Economic and Social Council (ECOSOC).
On the upside, the World Bank’s International Center for Settlement of Investment Disputes (ICSID) has granted a stay on the enforcement of the award issued against Pakistan in the
On Wednesday, the Economic Coordination Committee (ECC) of the Cabinet Wednesday allowed amendment in the import of Customs Duty Free Cars under disabled persons ‘scheme and increased the limit of importing cars under the scheme.
Moreover, SBP announced that the Monetary Policy Committee of SBP will meet on Monday, September 21, 2020 at SBP Karachi to decide about Monetary Policy.
On Tuesday, Asian Development Bank (ADB) said that Pakistan is projected to experience a broad economic recovery in fiscal year 2021 (which ends 30 June 2021) as the economic sentiment improves with the expected subsiding of the coronavirus disease (COVID-19) pandemic and the resumption of structural reforms.
The same day, the government decided to maintain the prices of various petroleum products at the existing level for the next half of the current month.
On Monday, Pakistan and China signed development agreement of the First China Pakistan Economic Corridor’s Rashakai Special Economic Zone to provide conducive business environment for bringing Foreign Direct Investment in the country.
Furthermore, Finance Ministry of Pakistan announced commencement of the sale of Conventional Naya Pak Certificates (NPCs) through agent banks.
On the equity front, Bawany Air Products Limited received Withdrawal of Public Announcement of Intention from Fossil Energy (Private) Limited to acquire more than 50% of its voting shares.
Besides, Pakistan Stock Exchange notified the listing of Perpetual, Cumulative and Convertible Preference Shares of Power Cement Limited with effect from Monday, September 21, 2020 issued by way of right offer to the existing ordinary shareholders of the company.
In addition to that, PSX carried out the re-composition exercise of KSE-100 index in which six companies were affected.
Also, the Board of Directors of Synthetic Products Enterprises Limited in its meeting held on September 17, 2020, decided to increase the paid-up share capital of the Company by issue of a further 3,981,978 ordinary shares
Financial Results:
Apart from this, several listed companies announced their financial results last week amid ongoing earnings season. Some of the important ones are:
Kot Addu Power Company (KAPCO) announced earnings of Rs. 23.6 billion (EPS: 26.83) for FY20, i.e. a whopping 80% higher than the profits recorded in last year.
Nishat Mills Limited posted a profit after tax of Rs 8.77 billion in FY20, depicting a decline of 9% YoY against a net profit of Rs 9.65 billion in FY19.
Mughal Iron & Steel Industries’ earnings for the year ended June 30, 2020 stood at Rs. 592.8 million (EPS: 2.36), i.e. around 57% lower than the profits earned last year.
Interloop Limited posted net profit of Rs 1.125 billion, showing a decline of 78% YoY compared to its net profits of Rs 5.06 billion of the same period last year.
Millat Tractors Limited disclosed a Profit of Rs. 1.96 billion (EPS: 39.42), which is 44% lower as compared to the earnings of Rs. 3.5 billion (EPS: 70.55) recorded last year.
Kohinoor Textile Mills (KTML) reported net losses of Rs 2.595 billion in FY20 against the net profits of Rs 4.376 billion in FY19.
Hi-Tech Lubricants Limited earned a profit of Rs. 121.6 million (EPS: 1.05) during the year ended June 30, 2020, i.e. almost double the amount it earned in the previous year.
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