Weekly News Roundup

February 6, 2022 (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.

Events of Importance through the week:

• On Saturday, Finance Minister Shaukat Tarin said that the Pakistani rupee (PKR) will continue its gaining momentum in days to come.
• Prime Minister Imran Khan on Friday said that Pakistan and China would continue expediting efforts to achieve Gwadar’s potential as a hub of regional commerce and industry while also prioritizing preparatory work on the ML-I and other key energy projects.
• On the same day, the State Bank of Pakistan (SBP) received $1.053 billion from the International Monetary Fund after the successful completion of 6th review of Extended Fund Facility (EFF) programme for Pakistan.
• Moody’s Investor Service projected that the current-account deficit will widen to 3.0%-3.5% of GDP in the fiscal year 2022 (ending June 2022).
• The SECP has licensed six fintech-enabled NBFCs, which have collectively reached out to 365,239 borrowers with the disbursement of over Rs6,139 million through 858,998 loans.
• During the departed week, Federal Minister for Industries and Production Makhdum Khusro Bakhtyar urged the senior officials of his ministry to chalk out a framework to connect the competitiveness of SMEs to LSM in upcoming industrial policy.
• In order to encourage the Exchange Companies (ECs) to mobilize home remittances, the Government of Pakistan has introduced an incentive scheme on Thursday as per which ECs will be provided an incentive of PKR1 for each USD of home remittances surrendered in the interbank market.
• Pakistan and China on Friday inked the Framework Agreement on Industrial Cooperation under China Pakistan Economic Corridor (CPEC).
• On Thursday, Honda Atlas Cars Limited (HCAR) unveiled the new models of “All New Honda Civic 2022” with prices ranging from Rs5 million to Rs6.14mn.
• On the same day, the Sui Southern Gas Company (SSGC) has unearthed fifteen large industrial units using illegal gas compressors/pumps which are used to increase the gas pressure.
• During the week, SBP issued instructions that will enable Person-to-Person (P2P) fund transfers in the country through RAAST, Pakistan’s Instant Payment System developed by the State Bank.
• Meanwhile, Pakistan is planning to raise $1 billion through an ESG-compliant Eurobond in March.
• On Wednesday, Minister for Energy Hammad Azhar said that the Sui Northern Gas Pipelines Limited (SNGPL) kept the gas supply to industrial consumers intact despite a 9% depletion in indigenous gas reserves and shortage in the world market.
• On the telecom side, Intellectual Property Organization (IPO) and Telenor Pakistan signed an agreement for E-payment services.
• Maintaining the robust momentum, the total sales of Oil and Marketing Companies (OMCs) registered a growth of 19% YoY to clock in at 1.8 million tons (MTs) during January 2022.
• Furthermore, FBR collected net revenue of Rs3,352 billion during July 2021 to January 2022 of current Financial Year 2021-22, which has exceeded the target of Rs 3,090 billion by Rs 262 billion. It has also launched an automated Currency Declaration System (CDS).
• On Tuesday, the government of Pakistan has successfully raised $1 billion through the issuance of International Sukuk.
• The Federal Cabinet has approved the design and implementation roadmap of the Competitive Trading Bilateral Contract Market (CTBCM).
• The Central Power Purchasing Agency (CPPA-G) has sought Rs3.12 per unit increase in power tariff for December 2021 under the monthly Fuel Cost Adjustment (FCA) mechanism.
• On Monday, Oil and Gas Regulatory Authority (OGRA) issued a price-revision notification of Liquefied Petroleum Gas (LPG) for the month of February, increasing the commodity price by Rs119.12 per 11.8-kilogram cylinder.
• Despite rising petroleum prices globally, the government kept petroleum product prices unchanged, rejecting OGRA’s proposal to increase POL prices by up to Rs. 16.79/Litre.
• The Executive Committee of the National Economic Council (ECNEC) approved the Punjab Arterial Roads Improvement Programme (PARIP) worth Rs129,944.15 million (US$ 773.20) to improve road infrastructure in the province.
• In response to the news circulating on social media that Economic Affairs Division (EAD) has prepared a plan for obtaining $5 billion new loans from China, Russia and Kazakhstan, the ministry clarified that no such proposal is being under consideration.

Announcements:

• On the equity side, SAPICO, a major shareholder of Saudi Paki Leasing Company is in an advanced stage of divestment and signed a non-disclosure agreement with three shortlisted parties.
• Systems Limited (SYS)’s wholly-owned subsidiary Systems Ventures (Private) Limited will make a strategic investment of Rs150 million in Jomo Technologies (Private) Ltd.
• The management of Janana De Malucho Textile Ltd (JDMT) has informed that the honourable Peshawar High Court passed the order to make the scheme of arrangement to merge Babri Cotton Mills Ltd. (BCML) into JDMT.
• SBP has granted in-principle approval to conduct Due Diligence of Samba Bank Limited (SBL) to the Management Consortium comprising the participating members of the Management of SBL, Fatima Fertilizer Company Limited, and Gulf Islamic Investments LLC.
• SBP has also granted in-principle approval to Askari Bank Limited (AKBL) to commence the due diligence of Samba Bank Limited (SBL) in respect of the acquisition of 84.51% shareholding of SBL, currently held by Saudi National Bank.
• United Bank Limited (UBL) has submitted a Public Announcement of Intention (PAI) to acquire up to 852,040,531 ordinary shares of Samba Bank Limited (SBL).
• First Treet Manufacturing Modaraba (FTMM) obtained auditor’s certificate on share swap ratio, in connection with the Scheme of Arrangement between FTMM and Treet Battery Limited (TBL).
• Cherat Packaging Limited (CPPL) successfully installed and commissioned its fourth line of Polypropylene Plant for producing cement bags.
• Yousaf Weaving Mills Limited (YOUW) has contracted with Prism Energy (Private) Limited for the installation of the solar system that shall provide 2MW electricity for a period of 15 years at an economical rate of Rs9.90 per unit which will be raised by 3% per annum.
• The board of directors of Interloop (ILP) agreed to advance the 6th Hosiery Plant in 2023-24 instead of 2024-25 in the wake of growing demand.
• The Security Exchange Commission of Pakistan (SECP) has approved the issuance of 99.96 million ordinary shares of Beco Steel Limited against consideration of non-cash assets.
• The board of directors of Bank Alfalah Limited (BAFL) has authorized the bank to acquire 521,739 additional ordinary shares of its subsidiary Alfalah CLSA Securities (Pvt) Limited from minority shareholders of the company.
• Lucky Electric Power Company Limited (LEPCL) is all set to commence commercial production by the mid of February 2022 where the plant will run on both local Thar coal and imported coal.
• On Tuesday, Engro Powergen Qadirpur Limited (EPQL) has appointed Mr Amir Qasim as Chief Financial Officer of the company.
• Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) is in talks with both local and foreign firms and evaluating different options like divestment of Fauji Meat Limited (FML) along with a reduction in losses.
• The Board of Directors of Mehran Sugar Mills Limited (MRNS) have approved Rs50 million as an equity investment in Uni-Foods Industries Limited which is a joint venture unquoted public limited company of MRNS.
• Synthetic Products Enterprises Limited (SPEL) has declared an interim cash dividend of Rs0.25 per share i.e., 5% for the year ended June 30, 2022.

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:
• Pakistan Oil Fields (POL) observed a profit of around Rs11bn in 1HFY22, up by 64.3% compared to 1HFY21.
• Meanwhile, Attock Refinery Limited (ATRL) reported a profit after tax of Rs2.36bn in 1HFY22, a turnaround from the same period when it suffered a loss of Rs224mn.
• Similarly, National Refinery Limited (NRL) witnessed a positive swing in its net profits worth Rs2.55bn in 1HFY22 against a net loss of Rs822 million recorded in the same period of last fiscal year.
• International Industries Limited (INIL) posted net profits of Rs3.9bn in 1HFY22.
• Amreli Steel Limited (ASTL) has earned Rs1.3bn in 1HFY222, observing a twofold upsurge in the profitability compared to Rs423mn in 1HFY21.
• Bank Alflah Limited (BAFL) continued its fashion of delivering strong profits as its net profits after tax during CY21 clocked in at Rs14.46bn against the profits of Rs10.8bn in the previous year.
• International Steels Limited (ISL)’s profits after tax (PAT) expanded by 52.25% YoY to clock in at Rs4.22bn in 1HFY22. 
• Fauji Fertilizer Company Ltd (FFC) reported profits of Rs35.70bn in CY21, showing a 20% YoY growth when compared to a net profit of Rs29.75bn in CY20.

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