Tag: index was let

August 7, 2020 (MLN): Government has approved the list of rules set forth by the Finance Division for ensuring an effective cash management system for Ministries/Divisions, most of which pertain to the implementation of Treasury Single Account (TSA).

For the unversed, a TSA is a banking arrangement for the consolidation of government financial resources in one bank account or multiple bank accounts linked to one main account through which the government transacts all its receipts and payments.

Keeping in view the cash availability and management needs of the Government, the Finance Ministry has laid out the following rules and regulations, which according to them, shall come into force with effect from the date of publication in the official Gazette i.e. July 24, 2020;

• Monies that have been appropriated through the Federal Government budget and have been transferred to scheduled bank accounts by Government offices shall be reverted to the non-food account No.1 of the Government by the 30th June 2020
• Finance Division shall identify and notify all Government offices which are required to be included in the TSA system, after classification and evaluation of all existing bank accounts being maintained by such offices.
• Government offices that are fully funded through the Federal Government budget by using either local or foreign sources, including project and programme loans and grants, shall operate their bank accounts through TSA system and no cash operation shall be allowed outside the TSA. Assignment accounts, sub-assignment accounts and revolving fund accounts shall be used in case of local currency or foreign currency funding requirements.
• Any government investment, loan, grant, subsidy, equity, project or scheme either funded locally or through foreign aid shall be provided to government enterprises and offices through subaccounts of TSA system including assignment accounts, sub-assignment accounts and revolving fund accounts opened in public account.
• Procedure for opening, operating and closing of assignment accounts including its sub-accounts and linked accounts shall remain operative
• The SBP or its banking agent NBP shall operate or cause to operate assignment accounts, sub-assignment accounts and linked accounts as approved by Finance Division according to assignment accounts procedure. Assignment account both for local currency and foreign currency shall be part of non-food account No. 1 of Government maintained by SBP. Principal accounting officers shall be responsible for overseeing operations of such accounts including request for approval from Finance Division for opening of assignment accounts.
• A request for opening of assignment accounts may be sent to Finance Division under existing procedure, available at www.finance.gov.pk. An assignment account shall be opened with designated branch of NBP for incurring expenditure under assignment accounts procedure. SBP and its agents shall be responsible for issuing bank statement for reconciliation and cooperate with Government offices as well as Finance Division for conflict resolution, if any.
• The Government offices using the assignment accounts shall be responsible for enforcing financial order and strict economy at every step and after observance of all relevant fiduciary rules and regulations. The Government offices shall ensure that not only the total expenditure is kept within the limits of the authorized ceiling but also that the funds allocated to spending units are expended in the public interest and for objects for which the money was allocated. In order to maintain a proper control, the Government offices shall put in place a monitoring mechanism to know not only of what has actually been spent from an appropriation but also what commitments and liabilities have been and will be incurred against it.
• The Government offices concerned shall maintain proper books of accounts and maintain receipt and revenue ledger and disbursement ledger so that the balance of receipt side shall correspond with the money deposited in receipt account. Similarly, expenses shall be reconciled with bank statement issued by SBP or its agents.
• The withdrawing entities shall be responsible for accounting of expenditure on a daily basis. On the basis of record and the bank statement, the drawing authorities shall render classified account of expenditure to the accounting offices on a monthly basis by 10th of each month for reconciliation of expenditure. The variations, if any, shall be reconciled and appropriate entries shall be made to update the accounting records. Monthly and quarterly release of funds shall be subject to reconciliation with accounting offices. The NBP shall report the account remaining undrawn against the authorized ceiling at the close of a financial year to accounting office in respect of each assignment account within a month.
• The SBP shall host and maintain TSA on behalf of the Federal Government. It shall provide electronic gateway system for necessary payment reports and ability to check the account balances online and real-time. The SBP shall collect information from commercial banks under section 31 of the Act and ensure provision of all information to the Finance Division to ensure implementation of the TSA system.
• Principal accounting officers, overseeing the Government offices on the instructions of Finance Division, shall close all bank accounts in commercial banks and provide evidence of such closure to Finance Division. Principal accounting officers shall transfer to TSA balances of accounts that contain public moneys appropriated through the Government’s.
• Accounting office’s shall ensure that no payment is made from the Federal Consolidated Fund without available budget, assignment accounts and sub-accounts are maintained for TSA system and that reconciliations are carried out on quarterly basis between book balances, bank statements and GFMIS.

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August 6, 2020 (MLN): Today, the benchmark KSE-100 Index crossed the much-awaited psychological level of 40,000 mark. Another day of bullish trend at Pakistan Stock Exchange, brought the KSE-100 index to 40,166 points (a highest level since February 21, 2020), a rise of 283 points or 0.71 percent.

According to the market closing note by Ismail Iqbal Securities, today Pakistan equities also witnessed historic volumes of 826 million, up by 64% DoD which is highest since Sept 2016, mainly due to increased volume in WorldCall Telecom Ltd which captured 29% of KSE-ALL volumes after ARY Communications Ltd submitted an intention to acquire 51% of issued and paid-up share capital.

Furthermore, the total traded value clocked in at Rs 24 billion which was the highest since January 1, 2017.

Besides this, several announcements made by the companies throughout the day also forced the index to stay in green, some of which include, expansion plan of setting up another glass melting furnace for tube in view of an increased demand by Ghani Global Glass Limited, UBL posted an increase in its half-yearly profits by 17% YoY on higher NII despite hefty provisions and the announcement made by Avanceon that it has secured a contract worth Rs 30 million to provide a comprehensive Building Management solution for the new Business Hub building by DHA Lahore.

The Index remained positive throughout the session touching an intraday high of 40,426.17

Of the 96 traded companies in the KSE100 Index 58 closed up 38 closed down, while 0 remained unchanged. Total volume traded for the index was 335.06 million shares.

Sectors propping up the index were Commercial Banks with 94 points, Technology & Communication with 43 points, Oil & Gas Exploration Companies with 42 points, Cement with 35 points and Automobile Assembler with 24 points.

The most points added to the index was by MCB which contributed 65 points followed by TRG with 39 points, NBP with 22 points, POL with 20 points and KEL with 17 points.

Sector wise, the index was let down by Miscellaneous with 3 points, Leather & Tanneries with 2 points, Automobile Parts & Accessories with 2 points, Vanaspati & Allied Industries with 1 points and Pharmaceuticals with 1 points.

The most points taken off the index was by ENGRO which stripped the index of 16 points followed by HUBC with 14 points, UBL with 9 points, ABL with 8 points and NML with 7 points.

All Share Volume increased by 324.86 Million to 826.81 Million Shares. Market Cap increased by Rs.63.77 Billion.

Total companies traded were 415 compared to 405 from the previous session. Of the scrips traded 234 closed up, 166 closed down while 15 remained unchanged.

Total trades increased by 31,320 to 195,491.

Value Traded increased by 2.06 Billion to Rs.24.34 Billion

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August 06, 2020 (MLN): Pakistan's Forex Reserves increased by USD 650.70 Million or 3.44% and the total liquid foreign reserves held by the country stood at USD 19,562.90 Million on Jul 30, 2020.

According to data published by the State Bank of Pakistan (SBP) its reserves increased by USD 566.60 Million. The increase is attributed to inflows from multilateral and bilateral agencies including US$ 505.5 million received from World Bank.

Amount in USD Million

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August 6, 2020 (MLN): In domestic bullion market, gold prices shot up by Rs 800 to an all-time high of Rs 129,500 per tola on Thursday as falling rupee’s value against the US dollar made investors to flock on the safe-haven asset. The valuable yellow metal had closed at Rs128,700 per tola on the previous day. 

The price of 10-gram gold also continued its rally and settled at Rs 111,025 against the previous close of Rs 110,340 per 10-gram.

On a similar note, the 24 Karat- Silver edged up by Rs 20 to clock in at Rs 1,650 per tola.  Moreover, 10-gram silver witnessed a meagre increase of Rs 17.14 to close at Rs 1,414.60, as per the Karachi Sarafa Association.

A weaker US dollar, China-US tensions and fresh outbreaks that have caused renewed lockdowns, kept gold prices elevated to record high. In international market, gold prices jumped to $2,050 per ounce. Likewise, the other precious metal, silver, surged to $27.90 per ounce. 

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Aug 6, 2020 (MLN): As a part of the expansion plan, Ghani Global Glass has decided to set up another glass melting furnace for tube in view of growing demand for glass tubing, vials & ampoules and to meet forecasted export and local demands for COVID-19 vaccine.

It is worth highlighting that the production capacity of import substitute products will be 100% increased as a result of this expansion plan.

Yesterday, in the board meeting, the directors announced the approval of expansion plan and to raise certain funds through further issue of share capital.

In addition, the company decided to increase the authorized share capital of the company from Rs. 2 billion to Rs. 3 billion, as part of the investment, which is subject to approval by shareholders of the company.

Ghani Global Glass has successfully entered in export business with Bangladesh, Egypt (MENA), Argentina and Mexico. Despite recent lockdowns, due to worldwide spread of COVID- 19, the company is expecting improvement in export business.

The company is continuously improving its production and supply system through innovations and effective cost containment initiatives in order to respond global and local demand.

During FY19, the company succeeded to approve their products in multinational companies (MNCs), middle, and large-scale national companies to get a sizeable business in spite of numerous converters in market.

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