Weekly News Roundup

February 27, 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, Muzammil Aslam Spokesperson of Finance Minister said that despite high commodity prices, the overall balance of payments in January 2022 declined by 44%MoM to $1.1bn compared to $1.9bn during in December 2021.
  • Pakistan intended to adapt to the Zero-Carbon emission goal by 2050 in energy by using all types of renewable and low-carbon sources as the country planned to use 40,000 MW nuclear energy by 2050.
  • The government on Friday said that Pakistan's economy would reach around the original National Economic Council (NEC) economic growth target of 4.8% for the fiscal year 2022 (FY22).
  • The Skolkovo Foundation the Special Technology Zones Authority (STZA) of Pakistan have signed a Letter of Intent (LOI) to enhance bilateral cooperation in the technology sector.
  • Innovative business solutions, selected for live testing and experimentation in 'First Cohort' of SECP's Regulatory Sandbox, have successfully passed evaluation on the basis of mutually agreed test scenarios and expected outcomes.
  • Meanwhile, the Indus Motor Company (IMC) unveiled the 2.8L Turbocharged 1 GD engine Fortuner Legender and Revo Rocco, carrying a price tag (ex-factory) of Rs10.842 million and Rs8.472mn, respectively.
  • The Federal Reserve Board (FRB) on Thursday, announced a $20.4mn penalty against the National Bank of Pakistan, a foreign bank operating in the United States and headquartered in Pakistan, for anti-money laundering violations.
  • On the same day, the Superintendent of Financial Services announced that the National Bank of Pakistan (NBP) and its New York branch have agreed to pay $35 million in penalties.
  • With regards to the Russian invasion in Ukraine, President Biden called Mr Putin’s move an unprovoked, unjustified attack in Ukraine, pledging further action against Russia.
  • Pakistan's Consumer Confidence Index (CCI) increased to 77 points in Q4 2021, compared to 70.8 points in Q3 2021, translating into an 8.8% QoQ increase.
  • During the departed week, the Union Microfinance launched its first branch in Karachi.
  • The Ministry of Finance and Revenue on Wednesday notified that the Federal Government had approved a grant of 'Disparity Reduction Allowance' of 15 percent of the basic pay of basic pay scales 2017 with effect from March 1.
  • The National Assembly’s Standing Committee on Energy on Wednesday approved scrutiny of the Petroleum Division’s budgetary proposals for the Public Sector Development Programme (PSDP 2022-23) unanimously.
  • The Drug Regulatory Authority of Pakistan (DRAP) in partnership with the U.S. government, launched an innovative online platform to digitize pharmaceutical imports and exports.
  • The government on Tuesday revised the profit rates on National Savings Schemes (NSSs) with effect from February 22, 2022, as per which the profit rate has been cut by 12bps to 10.20% per annum on regular income certificates (RICs).
  • On the same day, Minister of State and Chairman Board of Investment (BOI) Muhammad Azfar Ahsan said that there are immense opportunities for joint investment cooperation between Pakistan and Ethiopia.
  • During the same period, Prime Minister Imran Khan directed the authorities concerned to develop Special Technology Zones (STZs) on a fast-track basis in Islamabad as well as all provincial capitals to create hubs of technology innovations.
  • Furthermore, Sui Northern Gas Pipelines Limited (SNGPL) assured All Pakistan Textile Mills Association (APTMA) leadership of maximum supply of gas to the export industry on priority.
  • Meanwhile, the International Islamic Trade Finance Corporation (ITFC) signed the Annual Plan for 2022 in favor of the Government of Pakistan, to provide integrated trade solutions to support the energy and agriculture sectors.
  • The Preferential Trade Agreement (PTA) to increase bilateral trade between Pakistan and Uzbekistan is expected to be finalized in the month of March 4th.
  • Prime Minister Imran Khan underscored the close fraternal relations between Pakistan and Uzbekistan.
  • In a historic move, Prime Minister Imran Khan on Tuesday approved a number of incentives, including tax exemptions, to facilitate the IT sector, freelancers and startups.
  • The Securities and Exchange Commission of Pakistan (SECP) has introduced the concept of Online Only Brokers to encourage new participants to commence brokerage business with minimal preliminary infrastructure and operational costs by using electronic means only.
  • The system designed behind the Electronic Warehouse Receipt Financing (EWRF) is a win-win situation for all three stakeholders including farmers, banks and the collateral companies, Dr Reza Baqir, Governor State Bank of Pakistan stated at the launching ceremony of  EWRF for Maize Crop.
  • Global long-term sovereign Sukuk issuance is set to drop to $73 billion in 2022 and $75bn in 2023, from $88bn in 2021, including issuance by multilateral development banks.
  • The country's IT exports will reach $50 billion in a few years and the youth should in no way miss this technology revolution, Prime Minister Imran Khan said on Monday while addressing the launching ceremony of the National E-Tijarat Portal.
  • The Central Development Working Party (CDWP) has approved the replacement of the track machines project during its meeting held on Monday.
  • Amid an upsurge in prices of raw material in the international market, flat steel player International Steel Limited (ISL) has increased prices of Cold Rolled Coil (CRC) and Galvanized Coil (GC) for 1mm by Rs3,000 per ton.
  • The government of Khyber Pakhtunkhwa introduced contributory pensions which will safeguard the pensions of millions of government employees and help the government to ease the budgetary challenges.

Announcements:

  • On the equity front, the Sui Southern Gas Company (SSGC) clarified that Sindh High Court (SHC) suspended the recovery notice of Large Taxpayer Office (LTO) being devoid of legal merits and directed SSGC to pursue the matter before the Appellate Tribunal, an independent forum.
  • National Bank of Pakistan (NBP) has reached agreements with the Federal Reserve Board and Federal Reserve Bank of New York (FRB), and the New York State Department of Financial Services (NYDFS), the US regulators of NBP's New York branch.
  • Interloop Limited (ILP) will make long term equity investment up to an amount not exceeding Rs200mn in a newly incorporated company TAPAL YDF (Private) Limited.
  • Agritech Limited (AGL) has executed Non-Disclosure Agreements (NDAs) with three prospective buyers interested in the company after due diligence to be conducted in the light of information to be shared by the company pursuant to the said NDAs.
  • With reference to the public announcement of the offer by Mr Duraid Qureshi (Acquirer) to acquire 332.14mn ordinary shares of Hum Network Limited (HUMNL), Arif Habib Limited as a manager to the offer has received applications for a total of 202.58mn shares.
  • Mehmood Textile Mills has expanded the spinning division (Unit-2) with the capitalization of 10,944 spindles machinery.
  • The board of directors of Citi Pharma Ltd. has decided to increase the number of beds of the hospital from 50 to 200.
  • Samin Textile Limited (SMTM) has been shifted to the “Normal Counter” of the Exchange with effect from February 22, 2022.
  • Tariq Glass Industries Limited (TGL)’s tableware producing furnaces has been fired/ ignited on February 21, 2022, with an enhanced capacity of 200 metric tons per day.
  • ICI Pakistan Limited updated that the Scheme of Arrangement for the merger of NutriCO Pakistan Pvt Limited with and into NutriCo Morinaga Pvt Limited has been sanctioned by Honorable High Court of Sindh.
  • Phase I of Engro Energy’s hybrid renewable energy park project will be the development of 400MW (240MW wind and 160MW solar) is expected to increase the share of renewable energy to 30% by CY30.
  • Avanceon Saudi for Energy Co. WLL has been selected to execute an innovative and state-of-the-art SCADA solution for the Masjid Al-Haram Expansion Project in Makkah.
  • The State Bank of Pakistan (SBP) has granted in-principal conditional approval to MCB to conduct due diligence for a potential transaction for the purchase of 55% shares of Telenor Microfinance Bank Limited.
  • Supernet (SNL) has been awarded multiple contracts worth over Rs450mn by Zarai Taraqiati Bank Limited (ZTBL) after a competitive bidding process.
  • Pakistan Petroleum Limited (PPL) has disclosed a hydrocarbon discovery from an exploratory well, Mohar-1, in the Latif Block (the “Block”) which is situated in the Province of Sindh.
  • The Topline Securities Limited, has withdrawn its Public Announcement of Intention (PAI) on behalf of a potential acquirer Nasser Abdulla Hussain Lootah for purchasing at least 51% shareholding of Summit Bank Limited.
  • TPL Trakker Limited (TPLT) has been awarded a contract by the Pakistan Telecom Authority (PTA) for the development of a web-based Geographical Information System (GIS) System for the planning and rollout of 5G services in Pakistan,

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:

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Posted on: 2022-02-27T14:14:37+05:00

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