Tag: the news pakistan
October 25, 2021 (MLN): The mounting external pressure including the inconclusive IMF talks and soaring global energy prices have further dragged the Pakistani rupee (PKR) to its another all-time low as the domestic currency settled the day’s trade at PKR 174.43, depreciating by 42 paisa against the greenback.
In the previous session, the local unit closed the trade at PKR 174 per USD.
“Delay in IMF announcement is not helping. In the absence of SBP, the seasonal tendency of softer PKR has stretched far beyond for too long,” Asad Rizvi, the former Treasury Head at Chase Manhattan said.
The rupee traded in a range of 65 paisa per USD showing an intraday high bid of 174.55 and an intraday Low offer of 173.90.
The domestic unit has depreciated by 9.68% or PKR 16.88 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 8.37% or PKR 14.59 in CY21, with the month-to-date (MTD) position showing a decline of 2.16%, as per the data gathered by Mettis Global.
Within the Open Market, PKR was traded at 173.30/175.00 per USD.
Meanwhile, the currency lost 27 paisa to the Pound Sterling as the day's closing quote stood at PKR 240.47 per GBP, while the previous session closed at PKR 240.2 per GBP.
Similarly, PKR's value weakened by 96 paisa against EUR which closed at PKR 203.42 at the interbank today.
On another note, within the money market, the overnight repo rate towards the close of the session was 7.50/7.70 percent, whereas the 1-week rate was 7.40/7.45 percent.
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October 25, 2021 (MLN): Fauji Fertilizer Bin Qasim Limited (FFBL), the country’s sole DAP producer, has unveiled its nine-month financial results wherein the company posted a consolidated net profit of Rs5.96 billion (EPS: Rs4.41) compared to a net profit of Rs24.41mn in the same period a year ago.
This splendid performance is mainly due to increased DAP sale price, higher other income due to increase in the share of profit from associated companies coupled with lower finance cost amid lower mark-up rates.
The company has achieved a consolidated net turnover of Rs81.64bn which is 34% higher as compared to the same period last year’s turnover of Rs61bn due to the hike in DAP prices.
Apart from that, since the rabi season has arrived, the demand for DAP has also been increased, as per the research note by Darson Securities. Resultantly, the gross margins of the company during the said period scaled up from 17% to 24%.
On the cost front, distribution and selling expenses stood at Rs4.8bn, up by 10.5% YoY while administrative expenses inched up by 2.7% to clock in at nearly R1.44bn during 9MCY21.
The positive impact of lower mark-up rates, efficient capital management, and lower utilization of running finance facilities was visibly seen in financial cost which plunged by 45.6% YoY to Rs3.69bn in the said period.
Furthermore, the company saw a 28% increase in the income received from a share of profit of associates and joint ventures during 9MCY21, most likely due to gain recorded on account of the sale of Foundation Wind Energy I & II.
Meanwhile, the company has expensed out Rs971mn on account of the unwinding of GIDC liability during the review period.
On the taxation front, the company paid Rs2.88bn, showing a two-fold increase against the taxes paid in SPLY.
Alongside the financial results, the Board of Directors of FFBL also approved and authorized the Company to subscribe to 527,015,064 shares (the "FFBL Right Shares") of Fauji Foods Limited ("FFL") for the total price of Rs5,270,150,640 (calculated at the rate of Rs10 (Pakistani Rupees Ten) per share), as part of the Company's entitlement to FFL's rights issue
The company has also been authorized to subscribe to the Fauji Foundation's ("FF") renounced portion of FFL's rights issue. i.e., 65.484.936 shares (the "FF Right Shares") for a total price of Rs654.849.360.
In each case, by utilizing the total subordinated debt of Rs5.925 billion (the "Principal Amount of Debt"), granted by the Company to FFL. which utilization of the Principal Amount of Debt for acquiring shares has also been previously approved by the shareholders of the Company.
Consolidated Profit and Loss for the Nine months ended September 2021 ('000 Rupees)
Cost of Sales
Selling and distribution cost
Unwinding of GIDC payable
Other operating expenses
Share of profit of associates and joint venture- net
Profit before taxation
Profit after taxation
Earnings per share - basic and diluted (Rupees)
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October 25, 2021: The government is intended to announce minimum support price of wheat for the crops season 2021-22 prior to starting sowing season of the crop in order to bring maximum area under cultivation and encourage the farmers to ensure proper rate of their produce.
In this regard, Ministry of National Food Security and Research (MoNFSR) will submit the proposal for fixing minimum wheat support price for the crop season 2021-22 in the next meeting of Economic Coordination Committee (ECC) of the Cabinet for approval.
The aim of the initiative is to encourage local farming communities for bringing maximum area under wheat cultivation in order to tackle with the growing requirements of vital staple food grains as well as getting rid of swelling imports of food commodities and narrowing the growing trade gap, said Food Security Commissioner Dr Imtiaz Ali Gopang.
Talking to APP here on Monday, he said that the government was also intended to finalize minimum support price for wheat before the starting of sowing season for ensuring proper rate of return to the local farmers and encouraging them to bring maximum land under wheat cultivation.
All the necessary arrangements for wheat sowing have also been finalized as 638,000 metric tons of certified high yielding seed of different verities would also be provided to farmers on subsidized rates to achieve higher per-acre crop output during the season, he added.
During last year, he said that total availability of certified seed was recorded at about 300,000 tons, adding that under the track and trace policy it was enhanced and government was determined to ensure 100 percent availability of certified seeds for enhancing per-acre crop production in the country.
Meanwhile, the government was also providing Rs 8 billion subsidy on DAP fertilizers to ensure proper intake of phosphorous fertilizers during the season to obtain maximum output of the crop, adding that it was also ensuring proper supply of gas to local urea manufacturing plants to produce sufficient quantity of urea fertilizers during the season.
Besides ensuring the uninterrupted supply of gas to urea manufacturing units, 03 units were operationalized, which were closed and it would also help in fulfilling the domestic requirements of fertilizer, he added.
Dr Imtiaz further said that the Trading Corporation of Pakistan has also issued the tenders for importing about 100,000 tons of urea fertilizer to further augment the domestic stocks for ensuring sufficient supply of the input during the season.
It is worth mentioning here that Federal Committee on Agriculture in its meeting had set the wheat production targets at 28.9 million tons by cultivation of the crop over an area of 9.2 million hectares.
October 25, 2021 (MLN): Pakistan’s IT exports grew by about 42 percent in the first quarter of the current fiscal to $635million when compared to the export value of $445mn in the corresponding period last year.
Making an announcement on his Twitter handle, Abdul Razak Dawood, Adviser to PM for Commerce and Investment said, “By seeing how IT sector is growing, I am optimistic that we will cross the IT exports target for FY2021-22.
He congratulated all the stakeholders for their efforts and dedication.
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October 25, 2021: Indus River System Authority (IRSA) Monday released 88397 cusecs water from various rim stations with an inflow of 89157 cusecs.
According to the data released by IRSA, the water level in the Indus River at Tarbela Dam was 1511.30 feet, which was 119.03 feet higher than its dead level of 1392 feet. Water inflow and outflow in the dam were recorded at 31900 and 35000 cusecs respectively.
The water level in the Jhelum River at Mangla Dam was 1180.00 feet, which was 130.00 feet higher than its dead level of 1050.00 feet whereas the inflow and outflow of water were recorded at 13860 and 10000 cusecs respectively.
The release of water at Kalabagh, Taunsa, and Sukkur was recorded at 36175 , 35847 , and 35995 cusecs respectively. Similarly, from the Kabul River, a total 7100 cusecs of water was released at Nowshera and 36297 cusecs released from the Chenab River at Marala.