Tag: pSX news
Jun 28, 2022: Prme Minister Shehbaz Sharif on Tuesday said the current economic scenario of Pakistan required tactical solutions to address economic problems and stressed rising above politics to sort out the financial issues confronting the country.
Addressing the ‘Turn Around Conference’, he said economic self-reliance was the key to achieving the goals of development and prosperity.The event organized by Ministry of Planning Development and Special Initiatives gathered stakeholders from all walks of life with an objective to finding solutions to the country’s current socio-economic issues.
The prime minister said Pakistan was facing many external and internal challenges which were compounded by the existing commodity super- cycle and geo-political situation.
He said as the economic growth did not offer enough opportunities for national progress, short-term measures could act as a catalyst for speeding up the growth.He said financial self-reliance was the top most priority of the coalition government.He said focusing on the areas of agriculture, agro-based industry and exports was vital to strengthen the national economy.
He stressed the need for judicious utilization of the $2 billion tranche from the International |Monetary Fund (IMF) and pledged that every single penny would be spent prudently.
He also mentioned the support of China during the tough financial times and helping Pakistan in its journey towards economic stability. PM Sharif said there was no dearth of talent and potential in Pakistan and emphasized setting the right direction to achieve the goals of prosperity.
He pointed out that several vital projects such as Reko Diq were abandoned in the past that damaged the development agenda of the country.He said also, many power generation projects were stopped that resulted in shortage of electricity and impacted the industrial growth.The prime minister expressed satisfaction that the conference engaged all the relevant stakeholders which could hold the development sector together from across the nation.He said wider and inclusive consultations of experts belonging to diversified fields could be helpful in providing solutions to come out of this economic quagmire.
Finance Minister Miftah Ismael said the government gave relief to people despite tough circumstances.He said the government imposed direct taxes and also the Super Tax to help the country become self-reliant.He said the previous government took Rs 20,000 billion loan in around four years which put a heavy burden on the national exchequer.He mentioned that tax had been levied on rich and vowed to also bring the traders and shopkeepers into tax net.
Federal Minister for Planning Development and Special Initiatives, Professor Ahsan Iqbal said the aim was to take input, understand and resolve hurdles in economic growth in order to place country’s economy back on track.
He said the solutions of the conference would be aimed at short term results, adding that if substantial, these due deliverance compact ideas could be extended on to mid and long-term objectives.
He said the government had already taken necessary short-term actions to stabilize the economy and deal with the looming balance of payments crisis.However, he said, the government’s focus is to ferret out the medium to long-term solutions to optimise country’s economy to tap its full potential in line with Vision 2025.The conference was attended by representatives of political parties, federal ministries, provincial governments, national and international private sector entrepreneurs, international development and financial institutions, academia, think tanks, independent experts, NGOs and civil society.
June 28, 2022 (MLN): The Pakistan Credit Rating Agency Limited (PACRA) has maintained ratings of Soneri Bank Limited at ‘A+’ for the long term with a stable outlook, the company filing on PSX showed on Tuesday.
The ratings reflect Soneri Bank’s maintained a business profile as reflected by system share in terms of deposits (end-Dec21: 1.7%, end-Dec20: 1.8%). SNBL’s customer deposits observed growth of ~13%, where CASA recorded further improvement (CY21: ~70%; CY20: ~69%).
Going forward enhanced deposit mobilization will remain vital in maintaining system share. Net income witnessed an increase of 18.9% YoY attributable to lower provisioning and impairment charge.
Sustainability in net markup income & non-markup income and continued enhancement in non-fund-based exposure is important for future years. The advance book recorded a marginal uptick, whereas, the infection ratio declined (CY21: 5.9%; CY20: 6.2%), owing to a marginal decline in NPLs.
The Investment book has expanded significantly by 31% YOY, dominated by investments in PIBs. Going forward, the strategy is to strengthen the existing good relationships and digital platform by offering various unique solutions to its customers. Pakistan’s economy has gone through several varied phases in the last two years due to the COVID-19 pandemic.
The banking sector continued to flourish with high profitability. Going forward, the macro-economic environment is beset with myriad challenges due to heightened interest rate, tightening of demand, rupee depreciation, and higher inflation. This has repercussions for all segments of the economy. The Bank’s Tier-I ratio stands at 12.23% as of end-Dec21.
Total CAR stands at 13.8% (CY20: 17%). With dilution recorded in CAR of the bank, prudent capital management remains essential.
The rating is a function of a bank's ability to maintain its market position in the banking industry while strengthening its overall risk profile. Bringing efficiency to the operational structure is important for long-term growth. In the comparative landscape, adding granularity to deposits and advances is critical.
Meanwhile, a sustainable increase in system share and consequent profitability would be ratings positive.
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June 28, 2022: Moody's ratings agency has confirmed that Russia defaulted on foreign debt for the first time in a century after bond holders did not receive $100 million in interest payments.
The missed payments follow a series of unprecedented Western sanctions that have increasingly isolated Russia following its invasion of Ukraine.
Russia lost the last avenue to service its foreign-currency loans after the United States removed an exemption last month that allowed US investors to receive Moscow's payments.
"On 27 June, holders of Russia's sovereign debt had not received coupon payments on two eurobonds worth $100 million by the time the 30-calendar-day grace period expired, which we consider an event of default under our definition," Moody's said.
"Further defaults on future coupon payments are likely," the agency said in a statement late Monday.
Moscow said Monday there were "no grounds to call this situation a default" as the payments did not reach creditors due to the "the actions of third parties".
The country last defaulted on its foreign debt in 1918, when Bolshevik revolution leader Vladimir Lenin refused to recognise the massive debts of the deposed tsar's regime.
June 28, 2022 (MLN): Repatriation of profit and dividends by foreign investors increased by 7% YoY to $1.6 billion in 11MFY22 compared to the $1.50bn recorded in the same period of FY21, mainly due to healthy corporate profits earned by multinational companies, the latest data released by the central bank showed.
profits and dividends only on foreign direct investment (FDI) during July-May FY22 were $1,447.2 million as against $1,382m in the same period of last year.
The data revealed that during the period, the profit and dividend on foreign direct investment (FDI) during 11MFY22 were recorded at $1.45bn, up by 5% against $1.38bn in the same period last year.
While the outflow as payment against portfolio investment stood at $153.3mn, compared with $114.2mn in the same period a year earlier, marking a significant growth of 34% YoY.
To note, the profit outflow on account of FDI is almost the same as the FDI inflows amounting to $1.6bn during July-May of FY22.
In the month of May’22 alone, repatriation of profits and dividends on investment by the foreign firms clocked in at $136mn, data showed.
The data shows that the major sectors that repatriated relatively higher profits include the Financial Businesses, Power, Communication, Food, Oil & Gas Exploration, and Transport sector among which financial businesses repatriated the highest profits of $269.3mn during the period to overseas, against $318mn in the same period last fiscal year, showing a decline of 15% YoY.
The data further revealed that profit outflows from the Power sector clocked in at $198.8mn during July-May FY22 against $45.2mn in the corresponding period last fiscal year. Profits outflow from the Communication sector remained same at $185mn in 11MFY22.
The Food sector’s profit outflow was $152.7mn, down by 34% YoY during the period under review.
The Oil & Gas Exploration sector repatriated $146.2mn in 11MFY22, which was 36% YoY higher when compared with $107.9mn in the same period previous fiscal year.
The Transport sector’s profit outflow was $95.1mn, showing a decrease of 28% against $131.6mn reported in the SPLY.
A country-wise break up of data on repatriation of profit released by SBP revealed that firms and individual investors belonging to the UK dispatched the single largest profit of $337.4mn during the period compared to $3534.7mn in the same period prior fiscal year.
The United States witnessed the repatriation of the second-highest profits as the country repatriated $200.6mn abroad during the period under review, compared with $238mn in the previous year.
Third in line is the Netherlands which repatriated $166mn from Pakistan during 11MFY22 while the country remitted $37.5mn as profit income from Pakistan in 11MFY21.
Next followed by Switzerland with profit repatriation of $130.7mn which was 59% YoY higher when compared with $82.2mn during July-May FY21.
June 28, 2022 (MLN): The shareholders of Landmark Spinning Industries Limited (PSX: LMSM) on Monday resolved the draft Scheme of Arrangement for the merger between LMSM and Liven Pharmaceuticals (Pvt.) Limited (LPL), the company filing on PSX showed today.
The aforesaid development is subject to the approval of the High Court.
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