August 06, 2020 (MLN): The State Bank of Pakistan (SBP) announced that it will conduct a 1 day OMO to mop-up funds from the market.
Quotes timing is: 11:15 PST while result will be announced at: 11:45 PST
Settlement is same day – August 06, 2020
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September 21, 2020: Special Assistant to the Prime Minister on Petroleum, Nadeem Babar has said that the government is working on an integrated energy plan to meet the energy needs of the country.
Talking to newsmen in Lahore, he said there is a dire need to shift Sui Southern Gas Pipelines Limited on LNG to meet its gas shortfall.
Nadeem Babar said that we will start offshore oil and gas exploration in December this year.
Radio Pakistan
September 21, 2020: Rashakai Special Economic Zone will play significant role in luring Foreign Direct Investment in the country.
A spokesperson of Board of Investment Islamabad said the Rashakai SEZ holds unique competitive advantage due to its proximity to first juncture of CPEC route, close location with Peshawar airport and ML-I besides a significant resource and manufacturing base in the entire region.
He said the zone comprises 1000 of acres land and will be developed in three phases with an expected FDI of $128 million.
The spokesperson said Pakistan and China signed historic agreement for development of Rashakai SEZ on September 14, 2020 in Islamabad that provided a comprehensive roadmap for timely completions of the Zone on modern lines.
Meanwhile, Abdul Karim, Special Assistant to Chief Minister KP for Industry and Commerce said Rashakai SEZ agreement was a landmark development that would give enormous boost to the economic and industrial development of Pakistan.
He said it would serve an export base to Pakistan, Afghanistan and Central Asian Republics (CARs) following construction of Peshawar-Torkhum Motorway and ML-1.
Radio Pakistan
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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September 20, 2020 (MLN): The Weekly Economic Roundup summarises key economic and financial data releases for the week, providing a more context on the current economic situation of Pakistan.
The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.71% during the week ended Sept 17, 2020 while the SPI increased by 8.72% compared to the corresponding period from last year.
The Monetary Policy Committee of SBP will meet on Monday, September 21, 2020 at SBP Karachi to decide about Monetary Policy. Governor State Bank of Pakistan, Dr. Reza Baqir, will give a press conference on the same day after the MPC meeting.
Pakistan's Forex Reserves decreased by USD 2.30 Million or 0.01% and the total liquid foreign reserves held by the country stood at USD 19,959.00 Million on Sep 11, 2020.
The LSMI output increased by 5.02% during July 2020 as compared to July 2019, and 9.54% if compared to June 2020.
Foreign investment during August’20 stood at 102 million dollars compared to a net inflow of 107.2 million dollars during July’20, showing a decrease of 4% MoM.
The financial business has received the highest net FDI worth $61.5 million in August’20. During Jul-Aug FY21, it fetched a net $85.4 million, showing a six-fold increase when compared to the net inflows of $14 million in the corresponding period of FY20.
Norway emerged as the largest investor in Pakistan in August 2020, with a total direct investment of $45 million, followed by the Netherlands and Malta who invested $21.3 million and $18.5 million respectively, according to SBP data issued.
Pakistan’s money supply surged to 17% to Rs.24.966 trillion in the fiscal year 2020 from 10% recorded in FY19, the State Bank of Pakistan (SBP) data showed on Tuesday.
In August, workers’ remittances remained above $2 billion for the third month in a row. They reached $ 2.095 billion, which is 24.4 percent higher than during the same month last year and largely in line with SBP projections.
Central Development Working Party (CDWP) approved 04 projects worth Rs. 12.25 billion and recommended 02 projects worth Rs. 33.427 billion to ECNEC for consideration & allowed for extension in re-tendering of one project worth Rs. 12.10 billion in the meeting.
The Economic Coordination Committee (ECC) of the Cabinet allowed amendment in the import of Customs Duty-Free Cars under the disabled persons ‘scheme and increased the limit of importing cars under the scheme.
The government decided to maintain the prices of various petroleum products at the existing level for the next half of the current month.
The State Bank of Pakistan (SBP) has notified that the National Savings Schemes (AML & CFT) Rules, 2019 promulgated by the Ministry of Finance on January 23, 2020 are also applicable to the commercial banks.
The investment portfolio of Employees’ Old-Age Benefits Institution (EOBI) has witnessed an increase of over nine percent in the last three years, surpassing Rs 362 billion mark in the fiscal year 2019-20.
The government has revised duty drawback rates from 4.39% to 1.7% for electric fans after 11 years.
The non-government sector has retired another net sum of Rs.5.82 billion during the week ended September 04, 2020, which brings the cumulative net retirement for the ongoing fiscal year FY2021 to Rs.166.8 billion. The net retirement as of the prior week was recorded at Rs.160.97 billion.
The government of Pakistan has accumulated Rs.39.7 billion during the week ended September 04, 2020, which brings its total net retirement for the ongoing fiscal year FY2021 to Rs.120.36 billion. As of the prior week, the government had retired a net sum of Rs.160.06 billion.
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September 20, 2020 (MLN): The KSE-100 index gained merely 25 points during the departed week and closed at 42,505-mark i.e. nearly 0.06% percent lower than the closing of the previous week.
According to AKD Securities, the index remained volatile throughout the week owing to the uncertainty with regards to the upcoming AGP-FATF meeting. The week itself began on a weak note, with government and opposition parties in a deadlock over passage of bills concerning anti money laundering regulation.
Furthermore, IMF also pushed for materialization of long due utility tariff hikes, which were put on hold earlier this year due to COVID-19. Later during the week, the market breathed a sigh of relief as NA passed an amendment bill to meet certain requirements of the FATF. However, the jubilance was met by profit taking by the investors, keeping market performance flattish, AKD added.
E&Ps, Fertilizer, Chemical and Food & Personal Care emerged as the best performing sectors during the week, as they contributed 60, 36, 25, and 20 points respectively to the benchmark index. On the other hand. Insurance, Commercial Banks, Power Distribution and Textile Companies landed on other side of the spectrum as they took away 46, 37, 36, and 31 points, respectively.
Company-wise, the scrips of OGDC, FFC, POL, MTL, and EPCL were the most desirable ones as they contributed 43, 34, 31, 30, and 21 points, respectively. On the contrary, TRG, PPL, PAKT, KAPCO and HBL emerged as the top losing scrips as they snatched 27, 26, 25, 25 and 25 points from the index.
Figures released by NCCPL showed that foreign investors sold USD 1.69 million worth of stocks during the week with foreign corporates doing the bulk of selling.
On the local front, insurance companies purchased USD 10.56 million worth of stocks, followed by USD 3.5 million worth of stocks bought by Mutual Funds. Other significant transactions included USD 4.7 and USD 4.5 million worth of stocks sold by local companies and Banks/DFIs, respectively.
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