Weekly News Roundup

December 26, 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 Saturday, Pakistan Customs (FBR) has seized narcotics worth Rs115 million at Torkham, Pak-Afghanistan Border.
• Pakistan Bureau of Statistics (PBS) hosted 1st sensitization workshop on the 7th Population and housing Census 2022, the first-ever digital census of Pakistan at Allama Iqbal Open University Islamabad.
• Hammad Azhar, Federal Minister for Energy on Friday admitted that domestic gas consumers in Karachi have been facing a severe gas shortage. He also directed the Managing Director of SSGC to request High Court for an urgent hearing so that the issue can be resolved at the earliest.
• Given the ongoing supply distortion of Ureas, the government asked the industry to increase urea supplies by 30% ie about 3000-5000 metric tons countrywide to ease down the market.
• President Dr. Arif Alvi has urged the expatriates to invest in Pakistan which is fast emerging as Asia’s premier investment and trade hub.
• The Cabinet Committee on Energy (CCoE) asked the petroleum division to review the recommendations for enhancing domestic Liquified Petroleum Gas (LPG) production and forward a summary in this regard to the Economic Coordination Committee of the Cabinet (ECC).
• K-Electric (KE) has sought about a 32 paisa per unit increase in tariff for the month of November. KE has also demanded up to Rs5.18 per unit increase for Jul- Sep 2021, under quarterly fuel cost adjustments (FCAs).
• During the week, the government announced a bunch of incentives in the form of tax and duty relief on the existing and new entrants under the Auto Industry Development and Export Policy (AIDEP) 2021-26.
• The Ministry of Information Technology and Telecommunication (MoITT) is working on USF’s 43 projects to provide quality broadband services.
• Prime Minister Imran Khan said that the technology industry could help overcome the current account deficit (CAD) of the country by boosting exports.
• On the International Monetary Fund (IMF) front, the government of Pakistan will present the sixth review to the  IMF board on January 12, 2022.
• On the development side, the Executive Committee of the National Economic Council (ECNEC) approved projects worth Rs265 billion on Wednesday.
• Mr. Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue said that the government is taking all possible measures to ensure a smooth supply of essential commodities throughout the country.
• During the departed week, Ufone has introduced an economical roaming data gift facility for Ufone users in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA).
• On the positive side, Pakistan Pavilion at Expo 2020 Dubai has so far received 550,000 visitors since its opening 82 days.
• The All Pakistan CNG Association (APCNGA) on Wednesday said the decision to discontinue gas supply to the CNG sector is illegal and it has started nationwide protests against it.
• The Securities and Exchange Commission of Pakistan (SECP) has abolished the requirement for banks to obtain a separate license for distributing mutual funds and private pension funds to Roshan Digital Accounts (RDAs).
• SECP in its statement underlined that the recent amendments carried out through the Companies Amendment Bill, 2021 would significantly improve the general business climate in the country.
• In order to provide the premier services to customers all over Pakistan, a memorandum of understanding (MOU) has been signed between Winstore and Swyft Logistics.
• On Wednesday, the government and the Asian Development Bank (ADB) signed a $1.54 billion loan.
• On the external side, the Cabinet approved the Strategic Trade Policy Framework (STPF) till 2025.
• Oil and Gas Development Company Limited (OGDCL) informed that the company has carried out 336 Line-kilometer 2D seismic surveys in its various operational areas during the first quarter of the current fiscal year, representing 42 percent of the country’s total 2D seismic data acquired in three months.
• Fawad Chaudhry, Federal Minister for Information and Broadcasting informed that the incumbent government will pay $55 billion of the total debt payments during its tenure.
• Sindh Engro Coal Mining Company (SECMC) has successfully achieved 10 million tons of coal production milestones.
• On Tuesday, the State Bank of Pakistan (SBP) has set a credit disbursement target for the agriculture sector at Rs1.7trillion for FY22, which is 21% higher than FY21.
• SBP has also fixed the limit of individual purchase of foreign exchange which shall not be more than $10,000 per day.
• Central Power Purchasing Agency (CPPA) has proposed an increase of Rs4.3329/kWh over the reference fuel charges of Rs3.738/kWh under fuel price adjustment for the month of November 2021 for Ex-WAPDA Discos.

Announcements:

• On the equity front, TPL Properties Limited (TPLP) announced on Friday that the SECP has approved and registered the REIT scheme namely DCCL Trustee –TPL REIT Fund I, as a Hybrid REIT scheme.
• The Board of Directors (BoD) of Waves Singer Pakistan Limited approved the draft Scheme of Arrangement between the company and Samin Textiles Limited (SMTM).
• In order to diversify and expand its business operations, Ghani Value Glass Limited is planning to enter the automobile and appliances industries.
• With all the groundwork ready, Al-Shaheer Corporation Limited (ASC) is all set to formally launch its frozen meat brand “Chef One” by Jan-22.
• Summit Bank Limited (SMBL) has been shifted to the “Normal Counter” of the exchange with effect from Thursday, December 23, 2021.
• The BoD of Ittehad Chemicals resolved to incur capital expenditure of up to Rs650mn for the acquisition of land or land and building etc., for future growth and expansion of the company’s facilities.
• The tableware segment of Ghani Glass Limited is expected to appear online with an estimated timeline of six to eight months.
• The BoD of Cnergyico Pk Limited (CNERGY) has given go-ahead to the management to negotiate with shareholders of Puma Energy Pakistan (Private) Limited,
• The consortium comprising the existing management of Samba Bank Limited, Fatima Fertilizer Company Limited, and Gulf Islamic Investments LLC (the acquirers) has submitted a Public Announcement of Intention (PAI) to acquire up to 852,062,525 shares of Samba Bank or 84.51% of the total issued paid-up capital of the target company.
• VIS Credit Rating Company Limited (VIS) has upgraded the Corporate Governance Rating (CGR) of Allied Bank Limited (ABL) from “CGR-9+” to “CGR-9++.
• The BoD of ADOS Pakistan Limited has resolved to delist the company from the Pakistan Stock Exchange (PSX).
• Altern Energy Limited has announced the interim dividend on ordinary shares at the rate of Rs. 18.5 per share i.e. 185%.
• During the week, one of the distillery units of Al-Abbas Sugar Limited has resumed its operation.
• Fatima Fertilizer Company Limited (FATIMA) has approved to evaluate and pursue the potential acquisition of around 84.51% shareholding of Samba Bank Limited proposed to be sold by Saudi National Bank, including to conduct due diligence of the bank
• The BoD of TRG Pakistan Ltd. (TRGP) decided to continue with its investment in the Resource Group International Limited (TRGI) in order to maximize the value and capital return of its proceeds for the company and its shareholders
• Packages Limited (PKGS) and IGI Investment (Pvt) Limited (IGI Investments) accorded its in-principle approval to become part of the investor consortium to evaluate and conduct due diligence for a potential transaction for the purchase of the entire 52.87% shareholding of Sanofi Foreign Participants B.V (Sanofi) held in Sanofi-Aventis Pakistan Limited.

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