November 14, 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.

• To moderate money supply growth and domestic demand, the State bank of Pakistan (SBP) has increased the average Cash Reserve Requirement (CRR) from 5% to 6% and the minimum CRR to be maintained each day has been increased to 4% from 3%.

• In its Semi-Annual Review, Morgan Stanley Capital International (MSCI) announced the constituents from Pakistan for its Frontier Markets Index and Frontier Markets Small Cap Index.

• The Senate Standing Committee on Power expressed displeasure over the absence of the Minister of Energy and Secretary Ministry of Power in the recent meeting.

• Sustainable Development Policy Institute (SDPI) Executive Director Dr. Abid Qaiyum Sulehri during a session with Lahore Economic Journalists Association (LEJA) suggested that the State Bank of Pakistan (SBP) should act as an autonomous body.

• In the continuation of the ongoing drive for digitization, the Pakistan Customs, FBR developed an automated facility in WeBOC System.

• The Inland Revenue Enforcement Network (IREN) Squads of the Federal Board of Revenue (FBR) has seized 65,811,500 cigarettes, resulting in detection of evasion of taxes and duties of Rs125,662,630 in the first four months of FY22.

• The Overseas Investors Chamber of Commerce and Industry (OICCI) proposed liberalization and transformation of the monopolistic power market into a multi buyer-seller marketplace considering that the exclusivity to sell/distribute power for DISCO’s is scheduled to terminate in 2023.

• During a meeting with Governors of Saudi Central Bank (SCB) and Bank Indonesia (BI), Dr. Reza Baqir Governor State Bank of Pakistan (SBP) said digitization offers the highest potential to accelerate the pace of financial inclusion.

• According to Adviser to PM for Commerce and Investment, Abdul Razak Dawood the United States of America (USA) remained the top destination of Pakistan’s exports during the first four months of the current fiscal year i.e.  July -Oct FY22 followed by China and the United Kingdom (UK).

• Pakistan’s Ambassador to the US, Asad Majeed Khan, reaffirmed the government's commitment to economic reform and facilitating international investment at an event hosted by a group of leading American investors on Wednesday.

• The Unaccounted for Gas (UFG) losses of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) stood at 8.83% and 15.85% respectively during FY21.

• On the upside, the Himalayan rock salt and lamps showcased by Pakistani traders at the 4th China International Import Expo (CIIE) held in Shanghai attracted a big number of Chinese consumers.

• According to Chairman UK-Pakistan Business Council (UKPBC), Mian Kashif Ashfaq bilateral trade could swell from the existing level of £3 billion to £10 billion following the enhanced coordination between the private sectors of either country.

• On the energy front, the Oil and Gas Development Company Limited (OGDCL) carried out 336 Line-kilometer 2D seismic surveys in its various operational areas during the first quarter of the current fiscal year, representing 42% of the country’s total 2D seismic data acquired in three months.

• The government signed a $761.5 million agreement with the International Islamic Trade Finance Corporation (ITFC) for fuel import of crude oil, refined petroleum products, and LN.

• Meanwhile, the Oil and Gas Regulatory Authority (OGRA) on Wednesday notified the revised price of Re-gasified Liquefied Natural Gas (RLNG) on networks of the SSGC and SNGPL for the current month.

• On the same day, Federal Minister for Industries and Production, Makhdum Khusro Bakhtyar said the government is taking actionable and challenging steps to develop Small and Medium Enterprises (SMEs).

• Adviser to PM for Commerce and Investment, Abdul Razak Dawood lauded Udhaar Book, a super app for Pakistan’s small businesses, and Savyour, Pakistan-based fintech, for securing investment of US$6mn and US$3.3mn respectively.

• Pakistan Water and Power Development Authority (WAPDA) is all set to execute the biggest-ever portfolio of development projects in Pakistan including Diamer Basha Dam, Dasu Hydropower Project, and Mohmand Dam worth $26 billion after a span of almost five decades.

• President Dr. Arif Alvi on Wednesday said Pakistan’s progress was linked with extensive digitalization of all sectors and stressed fast decision-making in this regard to match the global advancements in Information Technology (IT) sector.

• On the same day, Prime Minister Imran Khan directed the Naya Pakistan Housing & Development Authority (NAPHDA) to accelerate the pace of work on all projects.

• Spokesperson to Finance Minister Muzammil Aslam on Wednesday clarified that the government is not planning to discontinue the release of the weekly Sensitivity Price Index (SPI) as claimed by some media reports.

• Pakistan Sugar Mills Association (PSMA) members posed their full confidence in the leadership of Mr. Shaukat Tarin and assured their full support to ensure the availability of sugar an affordable price to the common man.

• The Asian Development Bank (ADB) board is expected to approve a US$ 600 million program for the country's social protection during the first week of December.

• The National Electric Power Regulatory Authority (NEPRA) approved a Rs 2.52 per unit increase in power tariff for September under the monthly fuel cost adjustment (FCA) mechanism for consumers of Ex-WAPDA distribution companies (DISCOs).

• During the departed week, the Cabinet approved the Strategic Trade Policy Framework (STPF) 2020-25 .

• Finance Minister Shaukat Tarin on Tuesday clarified that the news regarding Prime Imran Khan dropping his plans to call International Monetary Fund (IMF) Chairman Kristalena Georgieva is “completely flawed and baseless”.

• As said by Pakistan's Ambassador to China, Moin ul Haque, the bilateral trade volume between Pakistan and China and the Pakistani exports to China would set new records by the end of this year.

• The State Bank of Pakistan (SBP) rebuffed the rumors propagating on social media about Pakistani currency’s possible design change.

• At a CDWP meeting presided over by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, cleared three development projects with a cost of Rs9.168bn & recommended two projects worth Rs130bn to ECNEC for further consideration.

• Universal Network Systems Ltd (BlueEx) is planning to sell 6.8 million shares on the Pakistan Stock Exchange (PSX) to raise Rs446 million at Rs65 per share.

• Federal Board of Revenue (FBR) in collaboration with the United Nations Office on Drugs and Crime (UNODC) organized outreach and capacity-building sessions for Designated Non-Financial Businesses and Professions (DNFBPs).

• Pakistan has been ranked first in The Economist’s World Normalcy Index, out of 50 countries.

• Pakistan Consumer Confidence Index (CCI) declined sharply to 70.8 points in Q3 2021, compared to 88.0 points in Q2 2021, translating into a 19.6% QoQ decrease.

• The book-building process of Pak Agro Packaging Limited (PAPL)’s Initial Public Offer (IPO) on the Growth Enterprise Market (GEM) Board of the Pakistan Stock Exchange (PSX) has concluded with an oversubscription of 1.85 times.

• Marta Morgan, Deputy Foreign Minister of Canada deeply appreciated Pakistan’s assistance in the evacuation of Canadian nationals from Afghanistan.

• Member of the European Parliament (MEP) Luis Garicano Gabilondo said the European Union (EU) Parliament is very concerned about the deteriorating human rights situation in Pakistan which puts into question the continuation of the GSP+ status.

Announcements:

• On the equity front, Swat Ceramics Company (Private) Limited submitted a Public Announcement of Intention (PAI) to acquire up to 95.51% shares of Karam Ceramics Limited.

• The Board of Directors of Sui Northern Gas Pipelines Limited (SNGPL) given conceptual approval to engage the services of a Transaction Advisory firm for initiation of a detailed technical, financial, commercial, legal, and regulatory due diligence of Meter Manufacturing Plant (MMP) owned by Sui Southern Gas Company Limited (SSGC).

• During the outgoing week, Thatta Cement (THCCL) rebuffed rumors circulating on social media regarding the sale of the company.

• The board of directors of Waves Singer Pakistan Limited (WSPL) approved the sale of an apartment complex on vacated factory land and commercial properties.

• The management of Samin Textiles Limited (SMTM) presented to the Board of Directors a potential acquisition of the Home Appliances business from Waves Singer Pakistan Limited (WSPL).

• Service Fabrics Limited (SERF) has issued a second rejoinder against the Pakistan Stock Exchange notification in which it placed the company in the Defaulter’s segment.

• During the past week, Pakistan Stock Exchange placed Service Fabrics Limited in the Defaulter’s segment as a consequence of the default of Clause 5.11.1.(b) of PSX Regulations, with effect from Wednesday, November 10, 2021.

• National Clearing Company of Pakistan Limited (NCCPL) to collect capital gain tax (CGT) from clearing members and Pakistan Mercantile Exchange (PMX) for the month of Sept’21 on November 19, 2021.

• Awwal Mudaraba Management Limited (AWWAL) acquired 10% holding of PMI’s issued Modaraba Certificates from Pak Brunei Investment Company Limited.

• To step forward with the implementation of the revival business plan, Service Fabrics Limited invested Rs400mn for the purchase of 10mn ordinary shares of Ghani Chemical Industries Limited (GCIL).

• Ghani Chemical Industries Limited (GCIL) informed that it has issued 137,159,991 shares to Ghani Global Holdings Limited (GGL) on November 09, 2021, against the 120% bonus issue announced by the Board of Directors of GCIL on October 28, 2021.

• Mehmood Textile Mills Limited launched an apparel unit with a capacity of 10,000 units/day and committed to taking it to 35,000 units per day within 18 months timeframe.

• Pakistan Stock Exchange (PSX) proposed to reduce the minimum brokerage commission for fixed Income Exchange Traded Funds (ETF) to 1 paisa per share or 0.01% of the transaction value.

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