August 29, 2021 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.
- On Friday, Adviser for Commerce and Investment, Abdul Razak Dawood and the United States Secretary Commerce, Gina M. Raimondo held an important telephonic conversation to discuss issues for the promotion of trade and investment.
- On the same day, in a meeting with the members of Pakistan Mobile Phone Manufacturers Association (PMPMA), the advisor assured that additional incentives would also be given if export targets are met by the mobile manufacturers and exporters.
- Pakistan’s overall fiscal deficit in FY21 stood at 7.1% of GDP (Rs3.4trillion) against 8.1% of GDP (Rs3.37tn) in FY20, showing a decline of Rs27bn or 1% YoY.
- Foreign Minister Shah Mahmood Qureshi reiterated Pakistan’s desire to work with Iran in all areas to further strengthen fraternal ties.
- On Thursday, a meeting of the Cabinet Committee on Energy (CCOE) approved the Indicative Generation Capacity Expansion Plan (IGCEP) 2021-30.
- On the upside, the construction of 7000 houses units under Prime Minister Low Cost Housing Scheme was completed and remaining was under construction.
- In addition, the incumbent government devised a concrete strategy to ensure access to affordable, reliable, sustainable and indigenous electricity for all by 2030.
- Due to special emphasis paid by the government on agriculture sector, the output of all major crops witnessed gradual and significant increase during first three years of its tenure.
- The production of mobile phones by local manufacturing plants has surpassed the number of mobile phones imports in the country.
- Pakistan’s First Asset Management Company, National Investment Trust Limited (NITL) is in the process of launching two new funds, NIT – Social Impact Fund (NIT-SIF) and NIT- Islamic Money Market Fund (NIT-IMMF).
- The government is committed to encourage and give incentives to fertilizer manufacturers and exporters to meet domestic demand effectively.
- On Wednesday, the Economic Coordination Committee (ECC) of the Cabinet approved the summary tabled by the M/o Industries and Production for the import of 200,000 MT of Sugar for maintaining strategic reserves.
- The bilateral trade between Pakistan and Afghanistan from the Torkhem border post has shown signs of improvement in the wake of the evolving situation in the region.
- On the export front, the government is all set to grow exports to record levels by 2023 by providing a better business environment for the industrial sector in the country.
- Meanwhile, Sazgar has become the first Pakistani Company to export 3-Wheelers (Rickshaws) to Ethiopia. The company will export a batch of 170 Rickshaws next month.
- During the week, Asad Umar directed Pakistan Railway to fulfill all the codal formalities of Karachi Circular Railway (KCR) at the earliest and ensure to make all the necessary arrangements for the groundbreaking of KCR infrastructure by September 2021.
- In order to achieve self-sufficiency in the energy sector, six new projects worth Rs1,775.857 million will be executed in the petroleum sector during the current fiscal year 2021-22.
- Vitol Bahrain and Total Gas & Power placed the lowest offers for a tender by Pakistan LNG to buy seven liquefied natural gas (LNG) cargoes for delivery in October and November.
- The Central Power Agency Guarantee (CPPA-G) on behalf of Ex-WAPDA distribution companies (DISCOs) sought an increase of Rs1.46 per unit increase in the power tariff for July under monthly Fuel Cost Adjustment (FCA) mechanism.
- Departed week also witnessed that Ministry of Commerce (MoC) released a total of Rs6 billion under Duty Drawback on Local Taxes and Levies (DLTL) schemes.
- On Tuesday, the State Bank of Pakistan (SBP) has received US$ 2.75bn from the International Monetary Fund (IMF), as part of the SDR allocation announced by IMF recently.
- Furthermore, SBP completed Digitization of Regulatory Approval System for foreign exchange cases to support ease of doing business. SBP also announced to launch a new data portal SBP Asaan Adaad (SAAD) focused on economic development indicators.
- Overseas Investors Chamber of Commerce and Industry (OICCI) shared the results of its comprehensive Business Confidence Index (BCI) Survey – Wave 20, which revealed that the overall Business Confidence Score (BCS) in Pakistan now stands at a positive score of 9 percent.
- During the same week, President Dr Arif Alvi disposed off 42 representations of the Federal Board of Revenue in cases of bogus sales tax invoices, worth over Rs1.2bn.
Announcements:
- On the equity front, Sui Southern Gas Company Limited (SSGC) relieved 1951 individuals including 385 Executives and 1566 subordinates from the company's service.
- Sui Northern Gas Pipeline Limited (SNGPL) relieved off 717 employees (195 Executives & 522 Subordinate staff) who were earlier reinstated /regularized in Company service as a result of Sacked Employees (re-instatement) Act 2010.
- Sazgar Engineering Works Limited (SAZEW) informed the company will commence the commercial production of “BAIC” vehicles with effect from September 01, 2021.
- The Board of Directors of General Tyre and Rubber Company of Pakistan Limited (GTYR) approved and recommended to the shareholders, a Special Business to be transacted at the upcoming Annual General Meeting regarding the change of the Company's name.
- Mughal Iron & Steel Industries completed BMR of girder re-rolling mill. This will bode well for the company as it is expected to increase margins to some extent due to energy and overheads efficiencies.
- The Board of Directors of Pakistan International Bulk Terminal Limited (PIBTL) approved the repayment of outstanding loans from local banks amounting to Rs5.904bn and refinancing the same at economical terms.
- The Board of Directors of Synthetic Products Enterprises Limited considered and recommended to sub-divide the face value of the Shares of the Company from Rs10 to Rs5 each.
- Engro Corporation Limited (ENGRO) announced to inject total equity of Rs21.5bn in its telecommunications infrastructure vertical.
- The Board of Directors (BoD) of Allied Engineering Management Company (Private) Limited decided to withdraw its earlier decision of disposal of commercial vehicles.
- The Board of Directors of Cordoba Logistics & Ventures Limited (Formerly Mian Textile Industries Limited) approved an investment of Rs31mn in Finox (Private) Limited for the purchase of its 32.5% equity/ordinary shares of the Company.
- Pakistan Stock Exchange (PSX) announced that its aggregate shareholding in National Clearing Company of Pakistan Limited (NCCPL) has been increased to 49.71% i.e., 50,130,598 ordinary shares of Rs10 each.
Financial Results:
Apart from this, several listed companies announced their financial results amid the ongoing earnings season last week, some of which are as follows:
- Fatima Fertilizer Company Limited (FATIMA) reported net profits of Rs9.31bn during 1HCY21, up by 30.1% YoY.
- National Bank of Pakistan (NBP) noted 12.8% YoY increase in its net profit to stand at Rs17.05bn in 1HCY21.
- International Industries Limited (INIL) posted a massive financial turnaround and recorded net profits of Rs8.7bn for FY21.
- Indus Motor Company Limited (INDU) unveiled its financial results for the year ended June 30, 2021, whereby the company has made net profits of Rs12.8bn.
- Shell Pakistan Limited observed a turnaround in earnings to Rs2.15bn for the half year ended on June 30, 2021.
- The annual net profits of Mari Petroleum Company Limited (MPCL) stood at Rs31.44 billion, registering a nominal increase of 3.7% YoY in FY21.
- Packages Limited (PKGS)’s net profits clocked in at Rs2.95bn during 1HCY21.
- Cherat Cement Limited (CHCC) reported a profit after tax of Rs3.21bn during FY21.
- Dawood Hercules Corporation Limited witnessed a twofold expansion in its bottom line to stand at Rs28.48bn during 1HCY21.
- Pak Elektron Limited (PAEL) reported net profits of Rs1bn for 1HCY21, as against the net loss of Rs425.8mn in the corresponding period last year.
- The net profit of IGI Holdings Limited massively increased by threefold, clocked in at Rs1.06bn during 1HCY21.
- System Limited (SYS) posted a consolidated net profit of Rs1.514bn during the six months for the period ended 30th June 2021.
- BankIslami Pakistan Limited (BIPL) made profits of Rs1.02bn for the half-year ended June 30, 2021.
- The profit after tax of Jubilee Life Insurance Company Limited (JLICL) plunged by 30% YoY to Rs988.71mn in IHCY21.
- Unilever Pakistan Foods Limited posted a 40% YoY jump in net profits to Rs2.4bn for 1HCY21, compared to the profits of Rs1.7bn in the corresponding period last year.
- Bank Alfalah Limited (BAFL) witnessed a 21% YoY increase in net profits, clocking in at Rs7bn during 1HCY21.
- Pakistan International Bulk Terminal Limited (PIBTL) exhibited strong performance during the FY21 as the company’s bottom line grew by a whopping 62.5% YoY.
- International Steels Limited (ISL), posted an astonishing 15x YoY increase in net profits, clocking in at Rs7.46bn in FY21, as against the profits of Rs494.8mn in FY20.
- Habib Metropolitan Bank (HMB) noted consolidated profit of Rs6.45billion in 1HCY21.
- Soneri Bank Limited staged a surge of 61.36% YoY in its profitability for 1HCY21 to Rs1.82bn.
- Engro Corporation Limited (ENGRO) reported a remarkable 84% YoY increase in net profits to Rs29bn during 1HCY21.
- Pakistan State Oil (PSO) witnessed a positive swing in its consolidated net profits worth Rs29.56bn during FY21.
- Glaxo SmithKline Pakistan Limited (GLAXO) posted a 37% YoY increase in net profits to Rs1.7bn in 1HCY21.
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Posted on: 2021-08-29T19:34:00+05:00
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