Weekly News Roundup

October 10, 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.

• Galaxy Racer took a massive leap by signing a Memorandum of Understanding (MoU) with the newly established Special Technology Zones Authority (STZA).
• On Friday, the first leg of ongoing technical level talks between the government and the International Monetary Fund (IMF) for the resumption of the $6 billion Extended Fund Facility (EFF) has concluded on a positive note.
• Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Zubair Motiwala demanded to immediately restore gas supplies to industries.
• Cabinet Committee on Energy (CCoE) approved the summary submitted by the Ministry of Maritime Affairs on the Establishment of New LNG Terminals.
• On the same day, The State Bank of Pakistan (SBP) launched a dedicated landing webpage, https://www.sbp.org.pk/hcf/index.html, on promoting housing and construction finance on its website.
• The Securities and Exchange Commission of Pakistan (SECP) registered 2,223 new companies in September 2021, up by 20% over the same period in the preceding year.
• In addition, SECP also amended the Public Offering Regulations, 2017 to introduce a regulatory framework for Special Purpose Acquisition Companies (SPAC).
• The National Electric Power Regulatory Authority (NEPRA) on Friday notified Rs 1.95 per unit increase in power tariff for August under the monthly fuel cost adjustment (FCA) mechanism.
• The World Bank has projected Pakistan's poverty rate to ease from the current 4.8% to 4.4% in the Fiscal year 2021-22 and 4.0% in the next fiscal year (2022-23).
• The government has planned to announce a huge incentive package for the textile and non-textile industry soon.
• On the energy front, the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) would lay around 18,731-kilometer (km) pipelines in their respective.
• The flow of circular debt in the power sector during the July-Aug FY22 has declined from Rs86 billion last year to just Rs 13 billion this year.
• The total electricity generation was recorded as 143,090.64 GWh in the fiscal year 2020-21 as compared to 133,727.20 GWh in FY 2019-20 showing an increase of 9,363.44 GWh.
• Overseas Pakistanis deposited USD297 million into Roshan Digital Account during September 2021, taking the cumulative amount to USD2.41 billion.
• During the week, the Board of Investment (BOI) assured to facilitate the investors and help them execute their investments.
• The Federal Board of Revenue (FBR) urged all the taxpayers to make the most of the one-time extension of 15 days granted for the filing of Income Tax Returns till 15th October 2021.
• Meanwhile, FBR has developed the “Single Sales Tax Portal” to facilitate the taxpayers and ensure the ease of doing business.
• On Thursday, Advisor to Prime Minister on Commerce and Investment, Abdul Razak Dawood appreciated a new investment worth $5 billion in the domestic Textile sector.
• Cognizant of the increased gas consumption especially during the winter season, the government has decided to execute a project of establishing the Strategic Underground Gas Storages (SUGS).
• Exploration and Production (E&P) companies would produce around 29 million barrel (MBL) crude oil and 1.47 trillion cubic feet (TCF) gas and 917,731 tons of Liquefied Petroleum Gas (LPG) under the targets given by the government.
• The World Bank (WB) on Thursday projected Pakistan’s economy to ease to 3.4% in FY22.
• As per amendments made by the government in National Accountability Ordinance, 1999 (NAO), the taxation matters of the business community and individuals would now refer to the Federal Board of Revenue (FBR).
• The historic depreciation of the Pakistani Rupee (PKR) has forced the State Bank of Pakistan (SBP) to take significant measures to curb the undesirable outflow of cash foreign currency as per which transactions equivalent to US$500/- and above and outward remittances need biometric verification.
• The Ministry of Information Technology and Telecom (MOITT) would execute 17 new schemes amounting to Rs 7,050 million during the current fiscal year.
• National Electric Power Authority (NEPRA) issued 8417 licenses of Net Metering with a cumulative installed capacity of 145.881 MW during the last fiscal year (FY 2020-21) in a1l power distribution companies (DISCOs).
• Pakistan and Kazakhstan agreed for enhancing the trade and economic ties for promoting the concept of regional connectivity and economic integration in the region.
• Pakistan’s largest digital Bank, Mobilink Microfinance Bank Limited (MMBL) has put forth its 9-point agenda for the future of financial inclusion.
• Federal Cabinet gave the approval for holding a census using modern digital technology and consistent with global best practices.
• During the departed week, the Federal Cabinet approved the seasonal electricity package for domestic and commercial consumers to encourage power consumption during off-peak months.
• In line with its vision to facilitate Capital market participants and as per the guidelines of SECP to reduce the cost of doing business (CoDB), CDC has again taken a step forward by a further reduction in the base tariff for its major depository services.
• The All Pakistan Textile Manufacturing Association (APTMA) said due to higher cotton output, the country's Gross Domestic Product (GDP) growth rate was set to surpass the 5% mark during the fiscal year 2021-22.
• On the upside, Fauji Fertilizer Company Limited (FFCL) disclosed its official sponsorship of the Pakistan Pavilion at Dubai Expo 2020.
• Pakistani startups raised a record USD 305 million of investment globally during July-Sep 2021.
• On Monday, Prime Minister Imran Khan announced a 40 percent targeted subsidy for the poor on the purchase of essential food items, saying the special step would provide relief to the low-income groups against inflation.

Announcements:

• On the equity front, Landmark Spinning Industries Limited (LMSM) said that GAZPAK (Pvt) Limited (Acquirer) has decided not to process the acquisition of 51% ordinary shares of the company.
• Unity Foods witnessed 15.6x YoY jump in its profit during FY21 to stand at Rs3.3bn, compared to the profit of Rs214.3mn in FY20.
• The Board of Directors of Air Link Communication Limited (AIRLINK) decided to incorporate a wholly-owned subsidiary of Air Link Communication Limited in the name and style, 'Select Technologies (Pvt) Limited.
• Sui Northern Gas Pipelines Ltd (SNGP) has shown a 55% surge in profits that clocked in at Rs8.94 billion during 9MFY21.
• SEARL posted a profit after tax of Rs3.7bn in FY21 as compared to a profit of Rs2.5bn in the same period last year, up by 47% YoY.
• The Board of Directors of Saudi National Bank (SNB) approved the commencement of an orderly well-managed divestment of Samba Bank Limited (SBL) Pakistan.
• Ghani Global Holdings Limited (GGL) decided to list its subsidiary Ghani Chemical Industries Limited (GCIL) on Pakistan Stock Exchange (PSX).
   

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