October 31, 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.

• Prime Minister Imran Khan on Saturday refused a proposal by the Oil and Gas Regulatory Authority (OGRA) to further increase petroleum prices in Pakistan.
• On the same day, Pakistan Stock Exchange (PSX) decided to revert to the previous system, Karachi Automated Trading System (KATS) as a short-term measure to provide uninterrupted trading for all TREC-Holders.
• In this connection, PSX has also restored the previous Designated Time schedule (DTS) from November 1, 2021.
• The National Bank of Pakistan (NBP) reported a cyber-attack that impacted some of its services.
• Federal Board of Revenue (FBR) collected net revenue of Rs1,841 billion during July-October of current Financial Year 2021-22, which has exceeded the target of Rs1,608bn by Rs233bn.
• Building further on its policy of ensuring ease of doing business, Federal Government has provided relief to the business community by extending the warehousing period and waiving off the penal surcharge on overstayed goods, lying un-cleared in the Customs Bonded warehouses.
• The government has allocated funds amounting to Rs353.119mn to acquire two plots for the construction of the Anti-Narcotics Force (ANF) Academy in the H-11/1 sector of the federal capital.
• On Friday, the Ministry of Commerce (MoC) announced that the second Pakistan Africa Trade Development Conference (PATDC) will be held in Lagos in Nigeria.
• President Dr. Arif Alvi asked the Overseas Pakistanis to benefit from the country’s business-friendly environment and invest in various sectors of the economy.
• To handle the general public’s grievances and ensure the prompt redressal on merit, Oil and Gas Regulatory Authority (OGRA) recently established a Consumer Affairs Department (CAD).
• Shell Pakistan Limited (SPL) entered into a 10-year agreement with Pak-Arab Pipeline Company Limited (PAPCO).
• The Securities and Exchange Commission of Pakistan (SECP) warned the general public against investing in Ponzi and pyramid schemes.
• Oil and Gas Regulatory Authority (OGRA) suggested developing ‘large scale’ storage facilities to absorb the abrupt price hike in the international market and avoid its negative impact on consumers in the country.
• The demand for High-Speed Diesel (HSD) has increased by 26% whilst petrol consumption has risen by 14% during the first quarter of FY2021-22.
• Jordan notified three Pakistani slaughterhouses for exporting bovine, sheep, goat & camel meat to Jordan.
• Pakistan Single Window Programme (PSWP) Project Director Muhammad Imran Khan Mohmand said on Wednesday that PSW Programme would reduce the minimize the interface between the taxpayers and collectors.
• During the week, Saudi Arabia announced its financial support of $4.2 billion to Pakistan to help ease pressure on trade and increase foreign currency reserves.
• The Federal Board of Revenue (FBR) achieved another important milestone by signing an agreement (MoU) with the Board of Revenue and Estate, Khyber Pakhtunkhwa.
• The federal government released Rs57,02mn for the National Highway Authority (NHA) road infrastructure schemes under the Public Sector Development Programme (PSDP) 2021-2022 till September 3.
• National Electric Power Regulatory Authority (NEPRA) on Tuesday notified 69 paisa increase in power tariff for the month of July for K-Electric under the monthly fuel cost adjustment (FCA) mechanism.
• Central Development Working Party (CDWP) considered two projects worth Rs345.626bn and recommended them to the Executive Committee of the National Economic Council (ECNEC) for further consideration.
• Minister for Foreign Affairs Shah Mehmood Qureshi on Monday urged the investors of Pakistan and Saudi Arabia to take advantage of the economic opportunities available in the diverse sectors of the economy.

Announcement:

• On the equity front, Service Fabrics Limited (SERF) opened the Letter of Credit (LC) for import of plant and machinery for setup of import substitute Calcium Carbide manufacturing plant at Hattar Economic Zone.
• The Board of Directors of Fauji Cement Company Limited (FCCL) considered the amalgamation of Askari Cement Limited with and into FCCL through a scheme of arrangement.
• The Board of Directors of Pakistan Cables Limited (PCAL) approved capital expenditure (CapEx) of up to Rs1.15bn to purchase land, undertake construction and procure plant and equipment for the company's Aluminium Profile Business.
• TPL Insurance Limited (TPLI) announced that the company has received a draft term sheet in respect of the investment by the Finnish Fund for Industrial Cooperation Limited.
• The Board of Directors of Awwal Modaraba Management Company resolved in principle to merge all Modarabas under the management of Awwal Modaraba Management Limited (AMML).
• Mughal Iron & Steel Industries Limited (MUGHAL) informed that Pakistan Credit Rating Agency (PACRA) upgraded its entity ratings from A to A+ for the long-term while it improved ratings to A1 from A2 for the short-term.
• Arif Habib Limited (AHL) submitted a Public Announcement of Intention (PAI) to acquire up to 332,146,260 ordinary shares of Hum Network Limited, on behalf of the acquirer, Mr. Duraid Qureshi.
• In view of the increasing demand for cement in the country, Bestway Cement Limited decided to set up a Brownfield cement plant with a capacity of 7,200 tonnes of clinker per day at its Hattar site in District Haripur.

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:
• Flying Cement reported a profit after tax of Rs204.93mn in 1QFY22, a turnaround from the same period when it suffered a loss of Rs40.69mn.
• Nishat Mills Limited (NML) declared the consolidated net profits of Rs4.64bn in 1QFY22, showing a 2.74x YoY growth.
• Hub Power Company Limited (HUBC) witnessed a 9% YoY decline in its consolidated net profits that stood at Rs7.70bn during the first quarter ended September 30, 2021.
• Oil and Gas Development Company Limited (OGDCL) posted net profits of Rs33.63bn during 1QFY22, demonstrating the growth of 44.06% YoY.
• TRG Pakistan Limited (TRG) suffered a slash of 96% in its profitability during 1QFY22, to clock in at Rs31.60 million.
• Agha Steel Industries (AGHA) posted a net profit of Rs558.3 million in 1QFY22, up by 9.6% YoY.
• Unity Foods Limited (UNITY) declared a loss after tax of Rs34mn during 1QFY22.
• Byco Petroleum Limited (BYCO) observed a loss of Rs836mn in 1QFY21.
• Systems Limited (SYS) reported that the bottom line of the company expanded by 56% YoY to stand at Rs2.52bn.
• Pakistan State Oil (PSO) announced its 1QFY22 financial result with a profit after tax of Rs11.54 billion (EPS: Rs24.93), up by a whopping 2.21x YoY.
• Lucky Cement Limited (LUCK) posted a net profit of Rs8.86bn, depicting an increase of 72.6% YoY.
• MCB Bank Limited (MCB) declared a profit after tax (PAT) of Rs23bn in 9MCY21.
• The profitability of Allied Bank Limited (ABL) clocked in at Rs13.20bn in 9MCY21.
• Fauji Fertilizer Company Limited (FFC) staged net profits of Rs28.23bn, depicting a surge of 56.5% YoY during 9MCY21.
• The bottom line of Mari Petroleum Company Limited (MPCL) saw a meager increase to stand at Rs9.10 billion in 1QFY22.
• Amreli Steel Limited (ASTL) witnessed an enormous profit of Rs701.86 million in 1QFY22, climbing up by 6.3x YoY when compared to the same period last year (SPLY).
• During the 1QFY22, Indus Motor Company Limited (INDU) managed to hold its growing momentum as the company kicked off the fiscal year 2022 by making Rs5.42billion in terms of net profit.
• The net profit of Unilever Pakistan Foods Limited (UPFL) during 9MCY21 stood at Rs3.61bn, registering an increase of 45% YoY.
• DG Khan Cement Company Limited (DGKC) witnessed a remarkable turnaround as the profit after tax clocked in at Rs1.13bn in 1QFY22.
• Fauji Fertilizer Bin Qasim Limited (FFBL) posted a net profit of Rs5.96bn compared to a net profit of Rs24.41mn in the same period a year ago.
• Pakistan Refinery Limited (PRL) incurred a loss after tax of Rs378.38mn in 1QFY22.
• Bank Alfalah Limited (BAFL) enjoyed a profit after tax of Rs10.75bn in 9MCY21.
• Habib Metropolitan Bank (HMB) observed an increase of 20% in its nine-month profits, standing at Rs10.21bn, compared to the same period last year.

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