Weekly News Roundup

November 28, 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.

  • In a recent development, Sui Southern Gas Company (SSGC) has decided to curtail gas supplies to all captive power plants (CPPs) for general industries (non-export) across Sindh and Balochistan with immediate effect till further orders.
  • The first Professional Clearing Member (PCM) as a landmark achievement in Pakistan’s capital market landscape has been formally inaugurated by the Adviser to the PM on Finance & Revenue, Mr. Shaukat Tarin on Nov 26, 2021, at CDC House, Karachi.
  • Pakistan’s Coeus Solutions Ltd, a preeminent software development company is planning to raise $5 million by listing on the Pakistan Stock Exchange’s Growth Enterprise Market Board.
  • So far, the government released a sum of Rs18.188 billion for various projects of National Transmission and Despatch Company (NTDC) and Pakistan Electric Power Company (PEPCO) under the annual Public Sector Development Programme (PSDP) for the fiscal year 2021-22.
  • Foreign exchange reserves held by the country plummeted to an eight-month low at $22.77 billion during the week ended on November 19, 2021.
  • The Pakistan Petroleum Dealers Association (PPDA)has called off the strike on Thursday night after the assurance from the government that profit margins will be increased by 99 paisa per litre or 25 percent.
  • The Oil and Gas Regulatory Authority (OGRA) took serious notice of the ‘people/entities’ who were making attempts to disrupt the fuel supply chain at petrol pumps in the pretext of their demand to increase dealers’ profit margin.
  • During the departed week, China and Pakistan inked an agreement that would open the Chinese market for Pakistani onion, marking the first deal since the two neighbors embarked on the second development phase of the China-Pakistan Economic Corridor (CPEC).
  • According to Bjarke Mikkelsen, CEO of Daraz said that the platform is all set to aim to host up to 300,000 small to medium enterprises (SMEs) in two years.
  • The Privatisation Commission (PC) board unanimously approved the hiring of Financial Advisors (FAs) for the sale of 17 unsold properties owned by the federal government on Thursday.
  • On the same day, Adviser to the Prime Minister on Finance and Revenue Mr. Shaukat Tarin reaffirmed the government’s full support and facilitation to the business community and investors. He said this during a meeting with a delegation of Citibank Pakistan.
  • In another meeting, he also expressed satisfaction over the stability in sugar prices and stressed for appropriate measures to create strategic reserves of sugar in the country for smooth supply of the commodity in the coming months.
  • Consumers’ confidence took a dip during October and November indicating their worsening financial standing and poor economic outlook for the months ahead, findings of the State Bank of Pakistan’s November Consumer Confidence Index (CCI) survey showed on Wednesday.
  • The finance division denied the media news item which says that Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue has admitted that government could not purchase LNG cargoes in time.
  • The federal cabinet approved the second tranche payment amounting to Rs134.783 billion to the independent power producers (IPPs) as per the payment mechanism.
  • According to Fitch Ratings, Pakistan’s recent policy adjustments and demonstrated access to external financing, as well as its commitment to a market-determined exchange rate, offset rising external risks from a widening current-account deficit.
  • Prime Minister of Pakistan Imran Khan called the rollout of the Track & Trace System (TTS) a watershed event in the development of Pakistan’s economy and hoped that it would lead to much-needed economic prosperity in times to come.
  • The Competition Commission of Pakistan (CCP) will resume its inquiry in the cooking oil and ghee sector after the honorable Supreme Court of Pakistan admitted for hearing its leave to appeal against, and suspended, the decision of the honorable Islamabad High Court dated 14 September 2021.
  • A Gong Ceremony was held at Pakistan Stock Exchange (PSX) on Tuesday to welcome Pakistan Kuwait Investment Company (Private) Limited (PKIC) on board as a Market Maker of debt securities on PSX. 
  • Lt Gen Muzammil Hussain (Retd), Chairman, Pakistan Water and Power Development Authority (WAPDA) informed that Kurram Tangi Dam Project’s Stage-I, being constructed in the North Waziristan district of Khyber Pakhtunkhwa Province, will be completed by June 2023.
  • In order to address the impediments faced by the corporate sector, particularly startups and small companies, in raising equity through conventional modes, the SECP has introduced amendments in the Companies Regulations, 2020.
  • CDWP approved three development projects with a cost of Rs 0.6bn & recommended three projects worth Rs. 60.64bn to the Executive Committee of the National Economic Council (ECNEC) for further consideration.
  • The Economic Coordination Committee (ECC) of the Cabinet on Monday recommended the special allocation of funds Rs 6,000 million for the Ministry of Communication.
  • After the policy rate hike of 150bps to 8.75% by the State Bank of Pakistan (SBP), the profit rate on bank customers’ saving account as per central bank regulation, will rise by 1.5% to a minimum profit rate of 7.25% by Dec 01, 2021, at the latest, SBP informed.
  • As per the official sources, the 300 MW Coal-Fired Power Project at Gwadar would create more than 1000 jobs for the local people and reduce the electricity shortage in the area.
  • Supernet Limited (“Supernet”) has been awarded three equipment supply projects consisting of equipment and services in the domains of satellite communications, telecommunications, and power with a combined equivalent value of Rs100 million.
  • Pakistan and International Monetary Fund (IMF) authorities have reached a staff-level agreement on policies and reforms needed to complete the sixth review under the Extended Fund Facility (EFF).

Announcements:

  • On the equity front, Fauji Foods Limited (FFL) announced that Mr. Muhammad Haseeb Aslam has resigned as Chief Executive Officer of the company with effect from November 26, 2021, the company.
  • In a watershed development at Pakistan Stock Exchange (PSX), Pak Agro Packaging Limited (PAPL) becomes the very first company to be listed on PSX’s Growth Enterprise Market (GEM) board.
  • During the same week, Pakistan Stock Exchange (PSX) initiated a process to delist Agro Allianz Limited (AAL) from the exchange.
  • Following a significant shift in the share price of TRG Pakistan Limited (TRGP) over the last few days, the company reported no change in the forecasts for the portfolio companies as revenues appear stable.
  • Crescent Star Insurance Limited (CSIL) is in touch with members of Dost Steels Limited (DSL) to seek their support in order to protect the interest of the company including the general public having a 75% stake.
  • The shareholders of Treet Corporation Limited (TREET)resolved to give a loan of up to Rs3bn to First Treet Manufacturing Modaraba (“FTMM”)in the form of a working capital loan.
  • On Monday, the Board of Directors of Afiniti Ltd. (“Afiniti”) named Larry Babbio as Chair of the Board of Afiniti, effective immediately.
  • Arshad Energy Limited (AEL) has received a public announcement of intention (PAI) from Automotive Plastics (Private) Limited to potentially acquire above 51% shares of the company.
  • Following the formal arrangement with Chery Automobile Co., Limited -Wuhu, China (Chery), Ghandhara Nissan Limited (GHNLplanned to launch Chery passenger cars (SUVs) during the current financial year.
  • Pakistan Stock Exchange shifted Imperial Limited (IML) from “Defaulters’ Segment” to “Normal Counter” with effect from Tuesday, November 23, 2021.
  • The Awwal Modaraba Management Company intends to merge Awwal Modaraba with a Corporate Restructuring Company (CRC) which is to be established by Pak Brunei Investment Company Limited (PBIC).
  • Fauji Fertilizer bin Qasim Ltd (FFBL) on Monday announced that it has deferred repayment of Rs850 million mark-up payment on the Rs5.92 billion subordinated debt due from Fauji Foods Ltd (FFL).
  • The management of the CITI PHARMA LIMITED (CPHL) informed that the recent discount rate hike of 1.5% by the State Bank of Pakistan (SBP) does not have a substantial impact on the profitability of the company.
  • Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) have signed a Memorandum of Understanding (MoU) to form a joint venture (JV) arrangement related to SSGC's Meter Manufacturing Plant (MMP) to improve the business sustainability of the plant.
  • Nishat Dairy Private Limited is all set to launch a new product called “Milkfields”, whose marketing campaign will be initiated in the next few days.

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Posted on: 2021-11-28T21:15:46+05:00

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