March 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:

• Pakistan remained on the grey list of the Financial Action Task Force (FATF).
• On the upside, Dr Reza Baqir, Governor State Bank of Pakistan (SBP) said that Pakistan is now well set for a major digital evolution.
• On Friday, the Finance Ministry stated that it will be able to defend a nearly $1.5 billion fuel and electricity subsidy package during an International Monetary Fund (IMF) programme review.
• In order to review the oil and gas exploration status and analyse the amendments required in the Petroleum policy to enhance the E&P activity in the country, the Cabinet Committee on Energy (CCOE) has formed a committee headed by Federal Minister for Energy Hammad Azhar.  
• The Monetary Policy Committee of SBP will meet on Tuesday, March 08, 2022, at SBP Karachi to decide about Monetary Policy.       
• To absorb the impact of Rupee depreciation and rise in international coal prices, cement manufacturers in the North region have increased cement prices by Rs10-15/bag.
• Meanwhile, MyTM has secured $6.9 million in its seed round.
• On the international front, Pakistan and Uzbekistan agreed to further deepen their bilateral ties by enhancing regional connectivity.
• Similarly, Pakistan and United Arab Emirates expressed the will to strengthen bilateral cooperation in various fields including trade, investment and religious tourism.
• The Economic Affairs Division and the Saudi Fund for Development (SFD) signed two Debt Service Suspension Agreements.
• Federal Minister for Planning Development & Special Initiatives Asad Umar has approved ICT equipment for Integrated Transit Trade Management System (ITTMS) at Torkham and Chaman borders.
• During the same week, the Federal Board of Revenue (FBR) has revised the fair market value of immovable properties on Wednesday in categories including residential, commercial, industrial and flats/apartments of the different areas of Karachi.
• As a major supply crunch of liquefied natural gas (LNG) looms amid Russia’s invasion of Ukraine, Pakistan and Bangladesh are switching to expensive and dirty diesel fuel to generate electricity.
• To accelerate the digitization of retail payments, SBP has issued standards for Quick Response (QR) code-based payments in Pakistan.
• Pakistan Kuwait Investment Company (Private) Limited (PKIC) and R.J. Fleming & Co. Ltd. have entered into a Memorandum of Understanding (MoU) to jointly set up and manage a Private Equity Fund in Pakistan.
• Prime Minister Imran Khan on Thursday launched the country’s mega interest-free loan programme worth Rs407 billion.
• With the future plan set in motion, the Ministry of IT & Telecom (MoITT) through Universal Service Fund (USF) will be providing high-speed mobile broadband access to approximately 2.7 million people in 4,109 unserved and underserved muazas.
• The SBP’s (Amendment) Bill (2021) has passed with amendments in the meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs.
• The Central Directorate of National Savings (CDNS) obtained Rs720bn fresh deposits in the last seven months of the current fiscal year 2022.
• On Tuesday, the world’s renowned telecom group Etisalat and Federal Minister for IT & Telecom Syed Amin-Ul-Haque discussed bilateral issues, 5G strategy and telecom growth in Pakistan during Mobile World Congress 2022 (MWC22).
• OLIVE Technical Services; a wholly-owned subsidiary of Fauji Fertilizer Company (FFC) and HydroChina Dawood Power (Pvt) Ltd (HDPPL) signed a Services Agreement on Monday, February 28, 2022, at Gharo, Pakistan.
• On the same day, the government announced a cut in petrol prices despite the limited fiscal space and a steep rise in the global oil market amid the Ukraine-Russia war.
• Prime Minister Imran Khan, in a big initiative to protect the masses from the impact of global inflationary trends, unveiled a major relief package.
• Pursuing its agenda of developing vibrant and competitive capital markets, the Securities and Exchange Commission of Pakistan (SECP) has specified the eligibility criteria and enabling framework to register as a trustee of open-end or closed-end schemes.
• During the departed week, Finance Division notified that the government is seeking the services of five financial advisors by March 30, 2022, for the issuance of multiple bonds.

Announcements:

• The board of directors of the Bank of Khyber has recommended the issuance of 5% bonus shares for the year 2021.
• Due to operational constraints, Millat Tractors Limited (MTL) will keep its production operations closed from Monday, March 07, 2022, till further notice.
• Hub Power Company Limited has informed that the alternators of two engines at Narowal Plant have developed a fault due to which these engines having 38 MW capacity will not be available for electricity generation.
• Xiaomi Technology has inaugurated its manufacturing facility in Pakistan with AirLink Communication today, with a plan of a $500mn investment.
• FrieslandCampina Engro Pakistan Limited (FCEPL) has launched Olper’s Cheese.
• Yousaf Weaving Mills Limited has informed that the solar system installed at the mill has started power generation.
• The shareholders of Nishat Mills Limited (NML) have passed the resolution to increase the amount of equity investment by Rs1 billion in Nishat Sutas Dairy Limited (“NSDL”).
• Nishat Chunian Ltd (NCL) announced intentions to separate its subsidiary Nishat Chunian Power Ltd. (NCPL) as an independent entity.
• JSK Holdings (Private) Limited has purchased 275,000 shares at Rs19.9 of Saif Power Limited (SPL) through Pakistan Stock Exchange on March 2, 2022.
• Pakistan Stock Exchange (PSX) has notified the listing of Adamjee Life Assurance Company Limited (ALIFE) with effect from Friday, March 04, 2022.
• Frontier Ceramics Limited has announced the completion of the installation of a new imported tile plant, which is now operational well in advance before the scheduled time frame.
• Zahur Cotton Mills Limited (ZHCM) approved the disposal of the company's assets which will be used to redeem/ settle/ payoff/ adjust the company’s long outstanding liabilities.
• The Mott Macdonald Landon, Yellow River and Mott Macdonald Pakistan (MYM-JV) has approved Agha Steel Industries Limited (AGHA) as the manufacturer cum supplier of deformed steel bars for its project Suki Kinari Dam.
• K-Electric is in the process of setting up new grids and interconnection works which would enable the drawl of additional power from the National Grid in addition to 1100 MW currently being evacuated.
• Engro Corporation on Wednesday reported that an explosion incident happened at the Engro Powergen Thar (Pvt) Limited (EPTL) power plant in the coal conveyor system of the 330MW Unit 1 of the plant.
• The honourable Sindh High Court has restrained the management of Shakarganj Limited from disposing of the property in any manner whatsoever till further orders.
• In order to promote business in the USA, Idrees Textile Mills Limited (PSX: IDRT) has acquired ORA HOME LLC in the USA as a 100% owned subsidiary of IDRT.
• Crescent Modaraba Management Company Limited (CMMCL) signed an agreement with Ansari Brothers (Private) Limited for the sale of shares and resultant transfer of control over the Modaraba to the purchaser.
• Sitara Developers (Private) Limited has purchased 5,300 shares of SITC at the rate of Rs365.53 per share on February 28, 2022.
• Engro Corporation has commenced office operations of its wholly-owned subsidiary, Engro Eximp FZE, in the Jebel Ali Free Zone, Emirate of Dubai.
• The board of directors of TPL Properties Limited (TPLP) has approved the sale of three Special Purpose Vehicles (SPVs).
• The board of directors of EMCO Industries (EMCO) has approved a project to manufacture, assemble and sell High Voltage Instrument Transformers under a technical licensing agreement.
• Fauji Cement Company Limited will increase to Rs25 billion by the creation of Rs1bn ordinary shares of Rs10 per share to rank pari passu in all respects with the existing ordinary shares in the capital of the company.

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:

• Unity Foods Limited (UNITY) witnessed a decline in its net profits of 37% to clock in at Rs975 million in IHFY22.
• Similarly, TRG Pakistan suffered a net loss of Rs12.6bn 1HFY22 mainly due to a loss of Rs16.4bn from equity accounted investee.
• Pakistan International Bulk Terminal (PIBTL) incurred a net loss of Rs2.6mnn for the half-year ended December 31, 2021.
• The Searl Company Limited (SEARL) posted a 4% YoY decline in net profits to Rs1.45bn compared to the profits of Rs1.52bn in the corresponding period last year.
• Ghani Glass Limited recorded a net profit of Rs2.8bn during 1HFY22.
• The profitability of Aisha Steel Mills Limited has witnessed a decline of 83% YoY decline in 1HFY22, mainly due to lower offtakes.

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