December 2, 2020: Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad today.
Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Production and Industries Hammad Azhar, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Power Omar Ayub Khan, Minister for Maritime Affairs Syed Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, SAPM on Revenue Dr. Waqar Masood and Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain also participated in the meeting. Governor State Bank of Pakistan Dr. Reza Baqir joined the meeting through video link.
Ministry of Commerce presented a proposal before ECC regarding removal of 5% regulatory duty on import of cotton yarn till 30th June 2021. After detailed discussion, the Chair approved the removal of regulatory duty on import of cotton yarn to enhance value-added exports.
Ministry of Commerce submitted another summary to re-consider the earlier decision taken by ECC dated 19 Oct 2020 regarding procedure for registration under concessionary regime of electricity, RLNG and Gas in export-oriented sectors (erstwhile zero-rated sectors). After due deliberation, the Chair directed to maintain status quo with a condition that FBR may register new manufacturers or exporters in five export-oriented sectors (erstwhile five zero-rated sectors) in coordination with the Ministry of Commerce till June 2020.
Communication Division requested ECC for conversion of National Highways Authority loans into Government Grant or grant a waive-off for a much-needed fiscal space. A detailed presentation was made before the forum to remodel NHA as a self-sustaining and performance-based organization. ECC directed to constitute a sub-committee under the Chairmanship of Minister for Planning, Development and Special Initiatives and would include SAPM Nadeem Babar, Minister for Maritime Affairs Ali Zaidi, Secretary Finance and Secretary Communications to prepare a holistic proposal suggesting revenue generation roadmap for NHA within a month. NHA was also granted a one-month moratorium to work out details and present recommendations regarding financial viability of NHA before the forum.
ECC recommended a summary presented by the Industries and Production Division to approve release of funds to PSM for payment in lieu of gas supply to SSGC through a Technical Supplementary Grant (TSG).
ECC approved allocation of upto 9.5 MMCFD gas from M/s PPL’s Benari X-I discovery to SSGCL. Similarly, allocation of 10 MMCFD gas from PPL’s Hadaf X-I to SSGCL was also approved during the meeting.
Federal Minister for Maritime Affairs raised the matter of priority berthing for wheat and sugar. ECC directed the Logistics Committee to ensure berthing of wheat and sugar vessels on priority, keeping in view, that other imports are not affected.
ECC also accorded approval for allocation of additional funds for maintenance of Islamabad High Court Building and Judges Residences through TSG as requested by the Ministry of Housing and Works.
The agenda item on Karachi Transformation Plan, presented by the Ministry of Planning, Development and Special Initiatives was deferred to the next ECC meeting for a detailed discussion.
December 2, 2020 (MLN): The domestic equities sustained positive momentum on Wednesday and extended its gains by further adding 362 points to the benchmark KSE-100 index and closed the session on 42,027 points marks.
The index remained positive throughout the session today, touching an intraday high of 42,072 points as cabinet approved USD150 million for Covid-19 vaccine and expects the first phase to start in early 2021 which geared up investors' sentiments, market closing report by Ismail Iqbal Securities highlighted.
In addition to this, investors also cherished the slowdown in November’s CPI inflation to 8.35%YoY and 0.82% MoM, compared to 8.91% YoY and 1.7% MoM in the previous month.
Of the 95 traded companies in the KSE100 Index 66 closed up 26 closed down, while 3 remained unchanged. Total volume traded for the index was 280.96 million shares.
Sectors propping up the index were Automobile Assembler with 75 points, Commercial Banks with 57 points, Technology & Communication with 38 points, Cement with 34 points and Power Generation & Distribution with 31 points.
The most points added to the index was by BAHL which contributed 42 points followed by TRG with 41 points, MTL with 40 points, HUBC with 24 points and LUCK with 23 points.
Sector wise, the index was let down by Paper & Board with 5 points, Vanaspati & Allied Industries with 3 points, Insurance with 1 points, Oil & Gas Exploration Companies with 1 points and Leather & Tanneries with 1 points.
The most points taken off the index was by PPL which stripped the index of 13 points followed by PKGS with 5 points, HBL with 4 points, EFUG with 3 points and KTML with 3 points.
All Share Volume decreased by 12.76 Million to 476.87 Million Shares. Market Cap increased by Rs.53.17 Billion.
Total companies traded were 403 compared to 393 from the previous session. Of the scrips traded 242 closed up, 125 closed down while 36 remained unchanged.
Total trades increased by 10,510 to 160,645.
Value Traded increased by 0.92 Billion to Rs.20.41 Billion
|Maple Leaf Cement Factory||31,559,029|
|Pakistan International Bulk Terminal||18,689,000|
|Aisha Steel Mills||13,214,000|
|Fauji Fertilizer Bin Qasim||11,060,500|
|Technology & Communication||85,360,800|
|Vanaspati & Allied Industries||39,791,300|
|Oil & Gas Marketing Companies||36,508,122|
Copyright Mettis Link News
December 2, 2020 (MLN): Chinese Smart Phone Manufacturer, VIVO, has decided to establish a smart phone manufacturing facility in Pakistan, for which the land has been purchased.
This was informed by Minister of Industries and Production Hammad Azhar, via his official Twitter account on Wednesday.
“Deployment of DIRBS eliminated smuggled phones. It was followed up by Mobile Manufacturing Policy,” he said, adding that revenues are already doubled, and now local manufacturing is taking off.
Copyright Mettis Link News
December 2, 2020 (MLN): Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood on Wednesday informed that the Economic Coordination Committee (ECC) of the cabinet, approved removal of Regulatory Duty on Cotton Yarn.
In a statement on his official twitter account, the Adviser said this will facilitate the exporters of Apparel sector.
He further stated that this is in line with our policy of getting more value-added products.
The ECC decision will now go to the cabinet for ratification, after which it will be notified, he added.
Copyright Mettis Link News
December 02, 2020 (MLN): Pakistani rupee (PKR) depreciated by 65 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 160.46 per USD, against yesterday's closing of PKR 159.82 per USD.
‘There was some pent-up demand from the earlier week when the New York market was closed on Thursday and Friday in observance of Thanksgiving. That was exacerbated by upcoming long weekend in the UAE due to national holidays’, said Zafar Paracha, ex-secretary general Exchange Companies Association of Pakistan.
He added that fundamentals were positive but there was resistance around Rs158 level.
The rupee saw a volatility free session as very little movement was recorded trading in a range of 68 paisa per USD showing an intraday high bid of 160.50 and an intraday Low offer of 159.92.
Within the Open Market, PKR was traded at 160.00/160.80 per USD.
Meanwhile, the currency lost 35 paisa to the Pound Sterling as the day's closing quote stood at PKR 214.54 per GBP, while the previous session closed at PKR 214.19 per GBP.
Similarly, PKR's value weakened by 1.9 rupees against EUR which closed at PKR 193.4 at the interbank today.
On another note, within the money market, the overnight repo rate towards close of the session was 6.70/6.85 percent, whereas the 1 week rate was 6.90/7.00 percent.
Copyright Mettis Link News