February 13, 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, Oil and Gas Regulatory Authority (OGRA) notified the revised price of Re-gasified Liquefied Natural Gas (RLNG) on networks of the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) for February as per which the commodity rate has been determined at $13.3769 and $14.0783 per imported mmbtu on the systems of the SNGPL and SSGC respectively.
• Prime Minister Imran Khan on Friday approved the extension in the term of Mr Arif Usmani as President and Chief Executive Officer (CEO) of National Bank of Pakistan (NBP).
• The Federal Board of Revenue (FBR) has introduced innovated Point of System (PoS) for monitoring sales made by tier-1 retailers across Pakistan.
• To facilitate growth in the mutual funds industry, the Securities and Exchange Commission of Pakistan (SECP) has prescribed the regulatory framework for Fixed Rate Mutual Fund.
• In order to ease exports to Afghanistan, the Ministry of Commerce (MoC) has allowed export settlement of fourteen items in the Pakistani Rupee (PKR).
• On the same day, the Senate was informed that Pakistan will start using the Saudi oil facility on deferred payment from next month.
• The Central Development Working Party (CDWP) on Thursday cleared the Karachi Circular Railway (KCR) as Modern Urban Railway project worth Rs273.07 billion, while referring it to Executive Committee of the National Economic Council (ECNEC) for further consideration.
• The Cabinet Committee on Energy (CCoE) approved the revised Circular Debt Management Plan (CDMP) to minimize the annual build-up of circular debt as well as reduction in the stock in three years.
• Adviser to Prime Minister for Commerce and Investment Abdul Razaq Dawood said that the government will achieve the export target by June 30, 2022.
• In line with market expectation, the local CRC manufacturers have increased the prices of CRC (1mm) and Galvanized Coils (1mm) by Rs3,000/ton, clocked in at Rs205,500 per ton and Rs212,850 per ton, respectively.
• Morgan Stanley Capital International Inc (MSCI) has announced that Pakistan will become eligible for inclusion in the MSCI Frontier Markets 100 and the MSCI Frontier Markets 15% Country Capped Indexes as part of the May 2022 Semi-Annual Index Review (SAIR).
• The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has deferred the Power Division’s two summaries on settlement of payables to government-owned power plants and reinstatement of a tax on dividend for investors/shareholders of IPPs.
• Finance Division on Tuesday said that further actions for the successful completion of the IMF program in Sep’22 will be subject to discussions in the forthcoming reviews.
• The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs57.834 million on five major banks on account of violation of regulatory instructions pertaining to general banking operations during the quarter ended Dec 31, 2021.
• Meezan Bank and Pakistan Kuwait Investment Company (Pvt) Limited – led Long Term Sukuk transaction, structured for Enertech, received two prestigious awards including ‘Pakistan Deal of the Year’ and ‘Most innovative Deal of the Year’ by Islamic Finance News, REDmoney Group, Malaysia.
• Consumers’ confidence in the country increased slightly by 0.7% during January 2022, indicating improving consumer sentiments.
• Hammad Azhar, Minister of Energy stated that the citizens of Karachi have started observing dramatic improvement in gas pressures after the operation against illegal pumps and compressors installed in multiple industrial units in Karachi.
• On Monday, Prime Minister Imran Khan principally approved the formation of Pakistan Cotton Authority to ensure the provision of quality seed, monitoring and enhancing the yield.
• During the departed week, Pakistan and the Kingdom of Saudi Arabia (KSA) reiterated the importance of further strengthening and diversifying bilateral cooperation in various areas of mutual interest.
• Federal Minister for Information and Broadcasting, Chaudhry Fawad Hussain said that Pakistan has proposed an ambitious plan to build the semiconductors zone with the help of China.
• The National Tariff Commission (NTC) Pakistan has imposed the definitive anti-dumping duty on the imported iron, non-alloy steel rolled coils/sheets.
• FBR clarified for paying over Rs16 billion in Sales Tax refunds to hundreds of big retailers in the past five months.
• SNGPL and SSGC have collectively repaired around 887-kilometer faulty pipelines and rectified 1447,342 leakages in line with the government strategy to bring down the Unaccounted-for Gas (UFG) ratio.

Announcements:

• On the equity front, Popular Islamic Modaraba (PIM) has informed through a notice to exchange that the management is in dialog with the Official Liquidator of a Modaraba to acquire that Modaraba.
• Wilmar Pakistan Holdings Pte Limited (WPH) has subscribed an additional 170,442,333 shares of Unity Foods Limited.
• Saudi Pak Leasing Company Limited (SPLC) has clarified that the time allowed by the SECP up to June 30, 2022, is only with respect to the company's separate request for restoration of the license and this extension does not affect the “Cancelled” status of the company's license as an NBFC.
• The book-building process of the Initial Public Offering (IPO) of Adamjee Life Assurance Limited (ALACL) has resulted in a strike price of Rs28 per share.
• SPV, a separate wholly-owned subsidiary of TRGI has already utilized $34mn to buy 48.9 million shares of TRG Pakistan.
• Service Industries Limited informed that the incidence of fire that broke out at the factory premises of the Service Industries Limited on February 9, 2022, and February 10, 2022 will not have any significant impact on the profitability.
• SNGPL has negated news circulated on media on Wednesday, February 09, 2022, regarding the privatization of the transmission function of SNGPL.
• Engro Fertilizers Limited will continue to payout maximum to the shareholders and any CAPEX required for urea plant debottlenecking could easily be done through debt financing.
• Dost Steels Limited (DSL) has resolved to increase the paid-up share capital of the company from Rs3,157,338,600 to Rs4,446,955,770 by the issuance of additional 128,961,717 ordinary shares.
• The board of directors of ICI Pakistan Limited has approved a joint venture (JV) between the company and Tariq Glass Industries Limited (TGL), to set up a greenfield state-of-the-art float glass manufacturing facility.
• The board of directors of First UDL Modaraba (FUDLM) has decided to evaluate possibilities for conversion of the Modaraba into a Public Limited Company subject to all requisite regulatory and legal approvals.
• Sazgar Engineering Works Limited (SAZEW) sold 2,731 units of Auto Rickshaw during the month of January 2022, which was around 4.7 times YoY higher than the sales of 579 units made in the previous month.
• Pakistan Stock Exchange (PSX) has approved the listing application of Telecard Limited’s subsidiary Supernet Limited (SNL).
• Unity Foods Limited (UNITY)’s subsidiary Sunridge Foods (Pvt.) Limited has launched “Unity Xpress”, its first flagship store in Karachi on Friday.
• Octopus Digital Limited (OCTOPUS) will establish a Stock Option Scheme to be known as the Octopus Digital Limited Employees Share Option Scheme 2022.
• Mughal Iron & Steel Industries Limited (MUGHAL) has successfully completed procurement and installation of two induction furnaces of 12 MW each.
• Bulleh Shah Packages Limited (BSPL), located at Kasur caught fire on Thursday morning which engulfed the various portion of the mill.
• Bela Automotive Limited (BELA) has requested PSX to remove the company from the defaulters’ segment of Exchange.
• The board of directors of Oilboy Energy Limited (OBOY) has decided to resume the operating/trading activities of “Energy Products” mainly coal from February 10, 2022.
• SECP has granted an extension in the license of Saudi Pak Leasing Company Limited (SPLC).
• The management of Bunny's Limited has successfully installed a fully automated bun and burger line and started its commercial production.
• As part of the first tranche of the deferred compensation for the year 2020, 820,919 shares of the Habib Bank Limited (HBL) have been credited into the CDC accounts of 121 employees at the rate of Rs121.68 by Akhtar and Hassan (Pvt) Limited, one of the trustees of the fund, through the brokerage house.
• The federal government on Tuesday assured K-Electric investors that it will remove obstacles in the sale of the company’s majority shares to Shanghai Electric Power.
• The management of Shakarganj Limited has firmed up a turnaround plan in order to address the net current liabilities position and improve liquidity, financial performance and financial position of the company
• SECP has allowed Beco Steel Limited to issue 99,962,510 ordinary shares having a par value of Rs10 per share with a premium of Rs20 per share amounting to Rs2,998,875,300.
• SBP has granted in-principle approval to United Bank Limited (UBL) to commence the due diligence of Telenor Microfinance Bank Limited (TMB) for the proposed acquisition of 55% sponsor shares in TMB, currently held by Telenor Pakistan BV.
• During the past week, the board of directors of Zahur Cotton Mills Limited (ZHCM) has reviewed and approved the business revival plan.
• Askari Bank Limited (AKBL) has appointed Topline Securities as the manager to the offer to acquire up to 84.51% of issued and paid-up capital along with management control of Samba Bank Limited (SBL).
• Pak Elektron Limited (PAEL) is planning to raise Rs5 billion through a right issue of 358.3 million shares at a price of Rs14 per share to enable the Company to reduce current debt levels and favourably improve its capital structure.

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:

• On Friday, Pakistan State Oil (PSO) managed to post a healthy financial statement for the six months ended on December 31, 2021 as per which the bottom line expanded by 3.5x to clock in at Rs31.92 billion.
• Pakistan Telecommunication Company Limited (PTC)’s profitability dropped to Rs2.57 billion, down by 21.3% YoY in CY21.
• Engro Fertilizers Limited witnessed an increase in its profitability by 16.32% YoY to clock in at Rs21 billion in CY21.
• MCB Bank reported net profits of Rs31.32 billion in 2021, 6% higher than the net profits of Rs29.56bn recorded in the calendar year 2020.
• GlaxoSmithKline Consumer healthcare Pakistan Limited (GSKCH)’s net profitability clocked in at Rs2.13 billion for CY21.
• Bank Al-Habib Limited (BAHL) posted a profit after tax of Rs18.6billion in 2021.
• Engro Polymer and Chemicals Ltd (EPCL) recorded net profits of Rs15.1billion, depicting an increase of 2.6x YoY in 2021.
• The net profits of Adamjee Insurance Company Limited (AICL) stood at Rs2.94 billion in CY21, 42% higher than the net profits of Rs2.08bn of the calendar year 2020.
• Engro Powergen Qadirpur Limited (EPQL) has registered a net profit worth Rs1.59 billion for the year ended December 31, 2021, depicting a decline of 23% YoY.
• FrieslandCampina Engro Pakistan Limited (FCEPL) reported net profits of Rs1.80 billion for the year ended December 31, 2021, registering a whopping ten-fold jump when compared to profits of Rs176mn reported in CY20.
• Pakistan Refinery Limited (PRL) unveiled its financial statement for the first half of the fiscal year ended on December 31, 2021, on Monday, as per which the company incurred a loss of Rs114.5 million.
• Attock Cement Pakistan Limited (ACPL) witnessed a 40.37% YoY decline in its consolidated net profits that stood at Rs742 million during the first half-year ended December 31, 2021.

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