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Weekly News Roundup

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March 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:

  • European automotive manufacturer, PEUGEOT, has officially launched operations in Pakistan for the first time in its distinguished history with its exclusive partner Lucky Motor Corporation.
  • On Friday, Dr Reza Baqir, Governor of the State Bank of Pakistan (SBP) announced measures to attract investment in the construction of new warehouses/silos through SBP’s Financing Facility for Storage of Agricultural produce (FFSAP) in order to boost Electronic Warehouse Receipt Financing (EWRF). 
  • On the same day, The Economic Coordination Committee (ECC) approved a supplementary grant amounting to Rs747.539 million in favour of the Petroleum Division for further release to SSGCL to undertake 85 villages/localities in the current fiscal year.
  • Meanwhile, the World Bank’s Board of Executive Directors approved $435mn in financing for three projects in Pakistan.
  • On the power front, National Electric Power Regulatory Authority (NEPRA) notified Rs 5.94 per unit increase in power tariff for January under the monthly fuel cost adjustment (FCA) mechanism.
  • On Thursday, the Central Directorate of National Savings (CDNS) informed that it had achieved Rs730 billion fresh deposits in the last seven months of the current fiscal year 2021-22 from July 1st to March 8th.
  • MG Motors Pakistan is building a 260,000-square-meter manufacturing plant in Lahore's Special Economic Zone, which is expected to be officially opened in August this year.
  • President UNISAME said that the Small and Medium Enterprise (SME) exporters require a full-fledged export credit guarantee to cover losses due to non-realization of proceeds and refusal of buyers to retire documents for goods shipped under firm contracts.
  • On the upside, the first shipment of 18 MT of Halal meat from Pakistan has been dispatched from Karachi to Tashkent, Uzbekistan.
  • During the same week, Flat steel manufacturers have raised the prices of CRC and HDGC by Rs5,000 per ton to clock in at Rs216,500 per ton and Rs227,800 per ton, respectively.
  • On Wednesday, Federal Minister for Finance and Revenue Mr Shaukat Tarin has asked the relevant authorities to analyze and estimate the wheat stocks closely.
  • He also informed that the government is bearing the burden of over Rs104 bn per month only for the sake of common people to provide petroleum products at subsidized rates.
  • Furthermore, the government has reduced the Capital Gain Tax on Venture Capital funding into Start-ups to zero percent for 5 years.
  • During the departed week, the Engineering Development Board (EDB) has notified the composition of Auto Industry Development & Export Committee (AIDEC) 2021-26 from the private sector.
  • The Monetary Policy Committee (MPC) SBP in its meeting held on March 08, 2022, has decided to maintain the policy rate at 9.75 percent.
  • Federal Minister for Industries and Production decided to maintain 2 lac tonne urea inventory this month on a pro-rata basis by manufacturers.
  • On the trade front, Pakistan’s exports to Central Asia during July-Feb 2022 grew by 135% from $72.5 million to $172.5mn in the same period of last year.
  • Pakistan and the United States (US) have relaunched the Trade and Investment Framework Agreement (TIFA) process to promote trade and investment for the benefit of both countries.
  • Moody’s Investors Service said Shariah-compliant banking, an integral part of Pakistan's National Financial Inclusion Strategy (NFIS) will continue growing by targeting customers who prefer Islamic products and were previously considered unbankable due to their religious beliefs.
  • The WWF-Pakistan, Sapphire Textile Mills Limited (STML), Sapphire Fibers Limited (SFL) and Diamond Fabrics Limited (DFL), Lahore have signed an agreement to work on the organic cotton project.
  • The Central Development Working Party (CDWP) cleared three projects worth Rs49.65bn during the same week.
  • Meanwhile, ECC on Monday approved the reduction of Rs5 per unit in electricity charges base rate announced by Prime Minister for the period of four months (March 2022 to June 2022).
  • Fatima Group has entered into a Joint Venture (JV) with Saudi Arabia’s Sarh Attaqina Co & China Machinery Engineering Company (CMEC).

Announcements:

  • On the equity front, Unity Foods Limited has rebutted the news item published in a certain section of the media regarding the Securities Exchange Commission of Pakistan (SECP)’s investigation against the company over alleged serious anomalies.
  • The shareholder's Reliance Weaving Mills Limited has resolved to invest in Fatima Energy Limited (FEL) up to Rs5,000 million.
  • JSK Holdings (Private) Limited has purchased a total of 393,500 shares of Saif Power Limited (SPWL) through the Pakistan Stock Exchange.
  • The Board of Directors of Awwal Modaraba Management Limited has approved the draft Scheme of Arrangement wherein KASB Modaraba (KASB) shall be merged with and into the First Prudential Modaraba (FPRM).
  • Ahmad Textile Mills Limited has successfully commissioned a solar system having a rated capacity of 988.9 KWP on January 27, 2022.
  • Arshad Energy Limited updated that the company’s plants are still having no production as the current furnace prices are not feasible for the plant operations.
  • Pakistan Telecommunication Company Limited (PTCL) has filed a petition with the National Electric Power Regulatory Authority (NEPRA), for the revision of tariffs for the telecom sector from the commercial category to the industrial category.
  • The shareholders of Fazal Cloth Mills Limited resolved to change the terms and conditions of the long-term investments in Fatima Energy Limited (FEL).
  • Escorts Investment Bank Limited received a notice of Public Announcement of Intention (PAI) to acquire more than 50% shares and control of the bank.
  • Greentree Holdings Limited has acquired additional 2.9mn voting shares of TRG Pakistan Limited at the rate of Rs74.80 per share.
  • The Organic Meat Company Limited (TOMCL) is still in process of procuring suitable land in the Export Processing Zone (EPZ) to construct the offal processing plant.
  • At Tahur Limited (PREMA) informed that the company has taken all pre-emptive, pre-cautions and necessary interventions to ensure safety against the “Lumpy Skin Disease (LSD)”.
  • While holding its progressive momentum, Systems Limited managed to close the year ended on December 31, 2021, on a positive note as its profitability increased by more than twofold to Rs4.38bn.
  • Redco Textiles Limited has decided to install on-grid roof-mounted solar panels having a total capacity of 1,999.06 kWp, in order to cut down the impact of increased electricity expense.
  • The Board of Directors of Arif Habib Limited (AHL) has resolved to disinvest or sell AHL’s shareholding in Arif Habib 1857 (Pvt) Limited, for total consideration of Rs50mn, i.e., Rs10 per share.
  • Service Industries Limited (SRVI) has announced that its associated company Service Long March Tyres (Private) Limited (SLM) has successfully commenced the commercial production of All Steel Radial Truck and Bus Tyres with effect from 10 March 2022.
  • Sazgar Engineering Works Limited (SAZEW) sold units of 1,504 Auto Rickshaw during the month of February 2022, which was around 45% YoY lower than the sales of 2,731 units made in the previous month.
  • Image Pakistan Limited decided to make an equity investment of up to Rs100mn in the capital of an associated company Sinolink REIT Management Co. Ltd.
  • JS Momentum Factor Exchange Traded Fund (JSMFETF) has informed through a notice to exchange that rebalancing activity has been concluded.
  • The Board of Directors of Cnergyico PK Limited has decided to explore all options to enhance the current liquidity of the company, working capital lines, and current position of the crude availability.
  • The profitability of the National Bank of Pakistan has dropped by around 6% YoY to stand at Rs26.76bn in 2021.
  • Saif Power Limited’s associated company JSK Holdings (Private) Limited has purchased 124,500 shares of Saif Power Limited at an average price of Rs20.11.
  • The Board of Directors of JS Bank Limited (JSBL) resolved to invest in and acquire 86,316,954 shares of BankIslami Pakistan Limited (BIPL).
  • Ansari Brothers is all set to submit the fresh Public Announcement of Intention (PAI) through the local bourse to acquire 15.835 billion ordinary shares representing 35.06% of the total ordinary shares of Saudi Pak Leasing Company Limited.
  • The management of Mughal Iron & Steel Industries Limited informed that a solar power system having the capacity of 1MW has become operational.
  • TPL Trakker Limited (TPLT) has partnered with Telenor Pakistan to exclusively provide state-of-the-art IoT solutions and services.
  • The Board of Directors of Shell Pakistan Limited has informed that the proceeds from the right shares have been utilized, in order to reduce current debt levels, manage working capital, and support operations.
  • The shareholders of Yousaf Weaving Mills Limited (YOUW) resolved to increase the authorized share capital from 900mn shares to two billion shares at the rate of Rs10 per share.
  • Progressive Group International has expressed intention to acquire at least 35% voting Shares of Saudi Pak Leasing (SPLC). 
  • Pakistan Stock Exchange (PSX) has accepted the request for Voluntary Delisting of Wyeth Pakistan Limited (WYETH) and has decided to delist the company from the Exchange with effect from Monday, April 04, 2022.

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Posted on: 2022-03-13T14:33:50+05:00

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