July 12, 2020 (MLN): The highlight of the departed week was the exports number as per which Pakistan left India, Bangladesh behind. Advisor for Commerce, Textile, Industry and Production, and Investment of Pakistan, Abdul Razak Dawood has appreciated exporters for showing good performance during the Fiscal Year 2019-2020 as compared to the regional counterparts.
Apart from this, the other 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:
Taking cognizance of the negative fallout of COVID-19 Pandemic for the economy, SBP curtailed the end-user markup rates on Temporary Economic Refinance Facility (TERF) to 5% from the existing 7% and on Long Term Financing Facility (LTFF) for the non-textile sector to 5% from 6%. In addition to this, SBP also extended the availability of Deferment of Principal Amount of Loans facility till September 2020.
On equity front, The Organic Meat Company Limited (TOMC) closed its Book Building successfully. The company received total participation of Rs. 1,371,162,584 against an issue size of Rs. 720,000,000 at the floor price of Rs. 18 per share. The issue has been oversubscribed by 1.9x.
On the upside, German Fashion House Hugo Boss placed its first order of sportswear to a Pakistani company.
Also, Ambassador of Japan Matsuda Kuninori has shown keen interest in developing mutual agricultural research and importing Basmati rice from Pakistan in order to further strengthen bilateral trade between the two countries.
Moreover, Pakistan’s e-commerce and digital economy has registered a huge boost in sales during the coronavirus pandemic as shoppers’ physical mobility is limited, Arab News report said.
On energy front, Pakistan and China signed an agreement for the construction of the Azad Pattan Hydel Power Project. With an investment of 1.5 billion dollars and 700.7 megawatts of electricity, Azad Pattan will involve no fuel import, enabling the country to move towards cheaper and greener power while generating local job opportunities.
Another breakthrough was witnessed as DG Khan Cement won cement export orders to Philippines.
With regards to matter pertaining to K-Electric, Prime Minister Imran Khan directed Federal Minister Asad Umar, Special Assistant Shehzad Qasim and Governor Sindh to resolve issues of K-Electric at earliest.
Moreover, US IDFC will provide financial support to Pakistan in PPP mode, as per statement issued from CEO of U.S. International Development Finance Corporation (IDFC), Mr. Adam Boehler, “the funds are available through both debt & equity to finance projects in Pakistan and for infrastructure projects in PPP mode.”
Meanwhile, Federal Secretary Ministry of IT & Telecom Shoaib Ahmad Siddiqui chaired a meeting between the Ministry of IT & Telecom and Huawei Technologies on Wednesday to discuss a broad range of initiatives being taken by Huawei Technologies to increase the scope of Information Technology and Telecom in Pakistan.
On the downside, the U.S. Department of Transportation said it has revoked permission for Pakistan International Airlines (PIA) to conduct charter flights to the United States, citing Federal Aviation Administration (FAA) concerns over Pakistani pilot certifications.
Lastly, the International Monetary Fund (IMF) in its recent report under the head of policy tracker which summarizes the key economic responses governments are taking to limit the human and economic impact of the COVID-19 pandemic, said that a gradual recovery in Pakistan is expected in FY 2021 as the economy reopens.
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