Weekly News Roundup

April 24, 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:

Despite all-time high monthly exports of $3.7 billion, Pakistan's current account deficit (CAD) increased sharply by 98% to $1 billion in March 2022 largely due to a 17% YoY increase in total imports to $7.2bn.

• Finance Minister Miftah Ismail reiterated the government’s commitment to attract US investment in all sectors of Pakistan’s economy by creating a business-friendly environment.
• On Friday, the President of the European Commission underlined the Commission’s desire to further strengthen its bilateral relationship with Pakistan.
• On the same day, the federal Minister for Finance and Revenue Miftah Ismail held a meeting with Executive Directors of the International Monetary Fund (IMF) wherein he requested the IMF to resume the $6bn programme for Pakistan that faced uncertainty.
• USAID Mission Director Julie A. Koenen has said that the United States launched a $23.5 million four-year power sector improvement project in Pakistan.
• During the departed week, the government has released funds amounting to Rs1,949.72mn to execute seven ongoing and six new petroleum-related projects during 9MFY22 under the Public Sector Development Programme.
• Pakistan LNG Limited (PLL) on Thursday received bids for six of the seven-spot cargoes of liquefied natural gas (LNG).
• Meanwhile, Pakistan’s First Asset Management Company NITL has signed up with Hysab Kytab to provide end users/customers access to its family of funds within the consumer application.
• To the excitement of over 500,000 people on its waiting list, the fintech SadaPay has been awarded a commercial license from the State Bank of Pakistan (SBP) to deliver financial services through its smartphone app as an Electronic Money Institution.
• During the same week, Engro Fertilizer (EFERT) increased its Urea prices by Rs100 per bag to Rs2,018 per bag.
• Minister for Information and Broadcasting Marriyum Aurangzeb on Wednesday announced a mega relief for the public in the holy month of Ramazan after the Federal Cabinet reduced the prices of sugar and flour.
• On Wednesday, National Electric Power Regulatory Authority (NEPRA) expressed deep concerns over the ongoing power load-shedding in the country.
• Achieving yet another important milestone, FBR has launched Inland Revenue Strategic Reform Plan(2021-25).
• The International Monetary Fund (IMF) has forecasted Pakistan’s economic growth rate at 4.2% for the fiscal year 2023, while it projected the growth rate for the current fiscal year at 4%.
• Central Power Purchasing Agency (CPPA) has proposed an increase of Rs3.16/kWh in the electricity tariff over the reference fuel charges of Rs6.23/kWh under fuel price adjustment for the month of March 2022 for Ex-WAPDA Discos.
• On Tuesday, the Economic Coordination Committee (ECC) of the Cabinet approved the supplementary grant of Rs68.74bn for the disbursement of Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) and refineries.
• In the wake of the widening trade and fiscal deficit, the Pakistan Business Council (PBC) has suggested the incumbent government withdraw the fuel subsidy and avoid further populist measures.
• Prime Minister Shehbaz Sharif on Monday directed the Planning Commission to ensure early completion of the projects of public welfare, also asking the ministries and divisions for mutual cooperation.
• During the past week, the government had extended the time period for transportation of 50,000 metric tonnes of wheat and life-saving medicines as humanitarian assistance to Afghanistan via Attari-Wagah integrated check post.

Announcements:

• On the equity front, Nimir Industrial Chemicals Limited has successfully completed the first phase of the expansion of the Chlor Alkali (Caustic Soda) plant, which has started its commercial operations.
• The Board of Directors of Maple Leaf Cement Factory Limited (MLCF) has recommended to shareholders to purchase/buy back up to a maximum of 25mn issued ordinary shares of the face value of Rs10 each by the company at the spot/current share price.
• The Board of Directors of Engro Polymer and Chemicals Limited (EPCL) has approved a CAPEX of $4mn for conducting Basic Engineering followed by a Front-End Engineering Design (FEED) study in relation to de-bottlenecking its VCM production facility to 300 KT per annum.
• The company also announced the successful commissioning of pure Oxygen based VCM technology at a cost of Rs2.2bn
• Tariq Glass Industries Limited (TGL) informed that the company’s furnace producing float glass (Unit-I) has outlived its useful campaign life and closed for rebuild / major repair on April 18, 2022.
• The National Bank of Pakistan (NBP) has approved financing of Rs1.5bn to kick start the affordable housing project being developed by Waves Singer Pakistan Limited (WAVES).

Financial Results:

Apart from this, several listed companies announced their financial results for the period ended on March 31, 2022, amid the ongoing earnings season last week, some of which are as follows:

• Fatima Fertilizer Company Limited (FATIMA) has witnessed a significant 50.8% YoY increase in net profits for the 1QCY22 to Rs5.69bnn.
• Fauji Fertilizer Bin Qasim Limited (FFBL)’s net income surged by a massive 2.6x YoY to Rs3.2bn in 1QCY22.
• Lotte Chemical Pakistan Limited (LOTCHEM) has reported a net income of Rs2.6bn in 1QCY22, up by a significant 60% YoY on the back of better PTA-PX margins.
• Similarly, the profitability of Bank of Punjab (BOP) has increased to Rs2.16bn for 1QCY22.
• Pakistan Oil Fields (POL) has made a profit after tax of Rs18.80bn for the 9MFY22, up by a whopping 93% YoY when compared to Rs9.74bn recorded in 9MFY21.
• On the other hand, Kot Addu Power Company Limited (KAPCO)’s profitability declined by 48% YoY to stand at Rs8.22bn in 9MFY22.
• Attock Cement Pakistan Limited (ACPL) witnessed a 37% YoY decline in its consolidated net profits to Rs1.25bn during 9MFY22.
• Attock Refinery Limited (PSX: ATRL) observes a large positive swing in its consolidated net profits worth Rs5.21bn in 9MFY22 against a huge loss of Rs90.79mn recorded in the same period of the preceding fiscal year.
• Fauji Foods Limited (FFL) has incurred huge losses of Rs499mn in 1QCY22, up by 43.7% YoY.
• International Steels Limited (ISL)’s profitability has expanded by 4% YoY to clock in at Rs5.35bn in 9MFY22.
• Pakistan Refinery Limited (PRL) reported splendid growth of 8.7x YoY in its net profit to clock in at Rs5.42bn in 9MFY22.
• Nestle Pakistan Limited declared net profits of Rs4.45bn in 1QCY21, 39% higher than net profits of Rs3.21bn recorded in the corresponding period last year.
• Engro Corporation Limited (ENGRO) maintained its net profits for the 1QCY22 at Rs14.89bn.
• Attock Petroleum Limited (APL) posted remarkable growth during 9MFY22 wherein the profits clocked in at Rs11.25bn.
• Amreli Steel Limited (ASTL) has made profits of Rs1.83bn in 9MFY22, depicting a robust growth of 98% YoY compared to Rs925mn in 9MFY21.
• National Refinery Limited (NRL) witnessed a fourfold increase in its net profits worth Rs3.67bn in 9MFY22.
• Shell Pakistan Limited (PSX: SHEL) reported a 6.7% YoY increase in net profits to Rs2.1bn during 1QCY22 as opposed to profits of Rs1.9bn in the same quarter last year.
• Habib Metropolitan Bank (PSX: HMB) has made profits of Rs3.68bn in 1QCY22 which is around 10.6% higher than the net profits of Rs3.33bn reported in the same period of CY21.
• During the same period, United Bank Limited (UBL) posted a profit worth Rs9.52bn, depicting a surge of 28.7% YoY.
• FrieslandCampina Engro Pakistan Limited (FCEPL) earned net profits of Rs663.7mn in 1QCY22, registering a growth of 21.38% YoY
• Askari Bank Limited (AKBL) has posted consolidated net profits of Rs3.61bn in 1QCY22, up by 30.29% YoY.
• Maple Leaf Cement Factory Limited (MLCF)’s profits stood at Rs4.3bn in 9MFY22 with an EPS of Rs3.93, showing significant growth of 52% YoY.
• Engro Fertilizers Limited (PSX: EFERT) earned a net profit worth Rs5.51bn in 1QCY22, down by 4% YoY.
• Bank Al-Habib Limited (BAHL) has recorded a consolidated net profit of Rs4.94bn in 1QCY22, showing an increase of 6.58% YoY.
• Engro Polymer and Chemicals Ltd (EPCL) posted net profits of Rs4.71bn in 1QCY22, depicting an increase of around 14% YoY when compared to Rs4.14bn in 1QCY21.
• The net profit of Engro Powergen Qadirpur Limited (PSX: EPQL) has declined by 62% YoY to stand worth Rs151mn in 1QCY22.

Copyright Mettis Link News