August 11, 2020 (MLN): Pakistani rupee (PKR) appreciated by 11 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 168.27 per USD, against yesterday's closing of PKR 168.38 per USD.
The rupee endured a relatively dull trading session with very little intraday movement, trading in a range of 14 paisa per USD showing an intraday high bid of 168.45 and an intraday Low offer of 168.40.
Within the Open Market, PKR was traded at 168/169 per USD.
Alternatively, the currency lost 38 paisa to the Pound Sterling as the day's closing quote stood at PKR 220.19 per GBP, while the previous session closed at PKR 219.8 per GBP.
On the other hand, PKR's value strengthened by 3 paisa against EUR which closed at PKR 198.04 at the interbank today.
On another note, within the money market, the overnight repo rate towards close of the session was 6.90/7.00 percent, whereas the 1 week rate was 6.95/7.00 percent.
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August 11, 2020: On 10th August 2020, Center for Global & Strategic Studies organized a webinar on “Problems Faced by the Cotton Industry in Pakistan” to discuss the various issues faced by the cotton industry in Pakistan including the production challenges, quality deterioration of cotton and the limited variety of seeds in the Cotton Industry of Pakistan.
The webinar was commenced by Maj Gen Syed Khalid Amir Jaffery (Retd), President, CGSS. Maj Gen Jaffery stated that to improve and increase the cotton production in Pakistan, the linkages between the Agriculture sector and the industries need to be enhanced. Furthermore, he mentioned for enhancing the overall situation of the cotton industry of Pakistan, Upgrading, and Modernization of technology is required.
Syed Fakhar Imam, Federal Minister for National Food Security and Research-informed the participants regarding the shift of farmers from cotton to other crops due to the minimum support price provided to the cotton crop. Moreover, Mr. Fakhar Imam mentioned that due to the high contamination rate of the cotton produced in Pakistan, the export of the Cotton gets affected. He also stated that the most important factor which affects the cotton quality in Pakistan is the Seed Quality. Lastly,
Mr. Fakhar Imam mentioned that to address the overall imbalances of the Cotton Industry, effective policy initiatives are to be taken.
Dr. Jassu Mal, Former Chairman, Pakistan Cotton Ginners Association emphasized the need for raising awareness among the major stakeholders of the Cotton Industry of Pakistan. In addition to the general awareness regarding cotton production, the technical training of the farmers and workers is also required. He further added that the Cotton in Pakistan is still hand-picked which increases the contamination rate and hence leads to the low-quality gradation. Dr. Jassur Mal also mentioned that despite having the Best Canal System in the World, it is underutilized.
Mian Anjum Nisar, President, Federation of Pakistan Chambers of Commerce & Industry mentioned that Cotton production not only supports the overall agriculture sector but it also, directly and indirectly, supports the various industries of Pakistan. Additionally, he mentioned that cotton contributes (directly and indirectly) to 50 percent of the total exports of Pakistan. Lastly, Mr. Anjum Nisar mentioned that to compete at the global level, the input cost of the cotton has to be reduced taxes on agriculture inpurts, sales tax on pesticides, ferticlizer shuld also be removed. Agri-research centre also need to produce high quality seed and ginning technology should also be improve with the help of China.
Prof. Dr. Asif Ali, Vice-Chancellor, MNS-Univesity of Agriculture, Multan mentioned that for the overall improvement of the cotton sector, an effective regulatory mechanism needs to be introduced. Furthermore, Dr. Asif highlighted the need for the Industrial Upgradation for the overall enhancement of the cotton sector. Lastly, Dr. Asif stated that for the revival of the cotton industry, all the major stakeholders need to come together to address the common challenges faced.
Mian. Zahid Hussain, Convenor, Federation of Pakistan Chambers of Commerce & Industry advised the stakeholders involved to focus on providing solutions to the problems faced by the cotton industry. He also empathized on the need for the formulation of new effective policies. Additionally, Mr. Zahid Hussain mentioned that Pakistan needs to follow the best cotton production practices from around the world to improve its cotton sector.
Prof. Dr. Muhammad Iqbal, Department of Plant Breeding and Genetics, Islamia University of Bahawalpur mentioned that the main aim of the cotton industry is to increase production. To increase cotton production, new technologies are to be incorporated. Moreover, he mentioned that Research and Development can play a major role in increasing cotton production.
Lieutenant. Colonel Saadullah Tashmatov, Charge de Affairs/ Defense Attache, Embassy of Uzbekistan discussed the Cotton Industry of Uzbekistan. He mentioned that Uzbekistan is ready to cooperate with Pakistani farmers to find new directions for cooperation in the Cotton Industry of Pakistan. He further stated that, Uzbekistan looks forward to establishing cooperation between the food security department as well as it holds great importance for Uzbekistan and Pakistan.
The Webinar was attended by 50 participants. The Webinar was moderated by Lieutenant Colonel Khalid Taimur Akram (Retd), Executive Director, CGSS.
August 11, 2020 (MLN): The Sub-Committee of the Board of Dolmen City REIT has revoked the announcement made on August 6 on the waive rentals as the businesses have been allowed to open amid the decline of the COVID-19 cases. The Sub-Committee, after obtaining recommendations from Property Manager and the REIT Management Company, has deliberated on the strategy going forward and has decided to waive:
i) 25% rentals of the tenants having retail outlets in "Dolmen Mall Clifton" for the month of August 2020;
ii) Minimum rent will not be charged to tenants of "Dolmen Mall Clifton" for the month of August 2020 who are closed or have limited operations on government directives such as entertainment, children playing area, and food outlets.
iii) 25% rentals of the tenants of "Harbour Front" for the month of August 2020.
According to the notification issued by the company to PSX, the above discount will not apply to operational tenants who are providing essential services such as supermarkets and banks. These measures will provide essential cash flow relief to tenant partners already affected by the closure of the business.
‘Dolmen City REIT will continue to engage with the tenants and monitor the situation closely. DCR is cognizant of the need to fully support the efforts of Sindh and Federal Governments to contain the spread of this pandemic and stand with the Nation in this unfortunate and difficult time.’, the notification said.
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August 11, 2020 (MLN): Sazgar Engineering Works Limited sold a total of 1,115 units of three wheelers, including auto rickshaws, against the production of 1,268 units during the month of July 2020.
The aforesaid information was revealed by the company in a notification issued to the Pakistan Stock Exchange, regarding the production and sales data for the month of July.
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August 11, 2020 (MLN): Hum Network Limited (HUMNL), in a notice issued to PSX, has explained the undue movement in its share price, wherein it increased from Rs. 2.31 per share to Rs. 17.05 per share during the period starting from April 03, 2020 to June 18, 2020.
The explanation comes against the backdrop of certain news articles doing the rounds, speculating that Kingsway Capital and Mr. Jahangir Siddiqui and JS Group Companies may be increasing their shareholding in HUMNL to takeover control of the company at the forthcoming elections of the company.
The company clarified that there were reasonable grounds (mentioned below) for concluding that it is the potential acquirers’ actions which has led to this situation.
During commencing second half of April 2020 to first week of May 2020, a private limited company namely, Airkenstuart Pakistan (Private) Limited (APPL), i.e. a 100% owned subsidiary of OBS Healthcare (Pvt) Limited, started acquiring and accumulating shares of HUMNL.
APPL acquired at least 83,462,000 shares of the company, which constitutes 8.83% of the total issued capital of Hum TV. The aforesaid number of shares is based on the NDM transaction and it is possible that APPL may have purchased or sold more shares in the open market, information of which is not available to HUMNL.
APPL during the period commencing from May 20, 2020 to June 8, 2020 sold shares of HUMNL to JS Bank Limited (79,030,303 shares), Jahangir Siddiqui & Sons Limited (3,375,197 shares) and Mr. Munaf Ibrahim (1,056,500 shares).
Munaf Ibrahim of Cedar Capital, who also had been a longtime employee of JS Group and served in various capacities, transferred 16,500,000 shares of HUMNL to Kingsway Capital on June 3, 2020.
As of June 30, 2020, the collective shareholding of the aforesaid persons was more than 33% of the total issued capital of HUMNL.
The company also stated that the significant increase in price per share as well as volume was not prompted or accompanied by any significant change in fundamentals underlying the valuation of price of a share of the company or any market dynamics.
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