May 22, 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:
- The State Bank of Pakistan (SBP), on Friday, ordered Authorized Dealers (ADs) to seek permission from Foreign Exchange Operations Department (FEOD) SBP-BSC before initiating transactions for the import of goods.
- The Annual Budget for FY 2022-23 along with the Finance Bill 2022 is scheduled to be presented in the National Assembly of Pakistan on Friday i.e., 10th June 2022.
- According to Finance Minister for Finance and Revenue Miftah Ismail, the upcoming budget will be business-friendly and contribute to the promotion of exports and businesses in the economy.
- On the same day, National Electric Power Regulatory Authority (NEPRA) imposed a fine of Rs65 million on Islamabad Electric Supply Company (IESCO).
- During the departed week, NEPRA also granted 8,417 Net-Metering Licenses with an accumulated capacity of around 146MW during the last fiscal year 2020-21.
- Central Power Purchasing Agency (CPPA) has proposed an increase of Rs4.0554/kWh in the electricity tariff over the reference fuel charges of Rs6.6087/kWh under fuel price adjustment for the month of April 2022 for Ex-WAPDA Discos.
- The National Assembly has passed the Fiscal Responsibility and Debt Limitation (FRLD) (Amendment) Bill, 2022 with a majority vote after its clause by clause reading.
- The government has released funds amounting to Rs1,949.72 million to execute seven ongoing and six new petroleum-related projects in 10MFY22 under the Public Sector Development Programme (PSDP 2021-22).
- On Thursday, the government decided to ban the import of non-essential luxury items to put off pressure from foreign exchange reserves and stabilize the exchange rate.
- Supreme Court barred authorities from making new appointments and transferring officials involved in “high-profile” and National Accountability Bureau (NAB) cases as well as those being heard by special courts.
- Foreign Minister Bilawal Bhutto Zardari in a meeting with his Turkish counterpart Mevlüt Çavusoglu in New York has expressed commitment to work together to enhance economic cooperation and unleash the full potential of Pak-Turk trade relations.
- Federal Minister for Finance & Revenue Mr Miftah Ismail held a virtual meeting with IMF Mission Chief on Wednesday.
- Pakistan’s provisional GDP growth rate for the year 2021-22 is estimated at 5.97%, National Accounts Committee said in its 105th meeting to review the final, revised and provisional estimates of Gross Domestic Product (GDP) for the years 2019-20, 2020-21 and 2021-22 respectively.
- Meanwhile, SBP noticed that an increasing number of offshore foreign exchange trading platforms such as OctaFX, Easy Forex, etc. are offering their products and services to residents of Pakistan.
- On the same day, the Federal Minister for Board of Investment Ch. Salik Hussain said that BOI would provide all possible facilities to foreign and local investors as it has been providing facilities to investors in the past.
- On the telecom side, the number of 3G and 4G service users in Pakistan has significantly increased and reached 113 million by end of March 2022.
- The Oil and Gas Development Company Limited (OGDCL) has injected eight operated wells, producing 305,804 barrels (BBL) crude oil and 3,677 million cubic feet (MMCF) gas, in its production gathering system in 9MFY22.
- In order to put off pressure from foreign exchange reserves and the stability of the exchange rate, the government is in the process to devise an import curtailment plan as per which Regulatory Duties (RDs) on the number of imported items will increase by up to 100%.
- Due to climate changes, shortage of electricity and diesel, increase in the cost of packaging processing and high freight charges, Pakistan is facing a 50% drop in mango production this year.
- The government has so far released funds amounting to over Rs7.761 billion to execute 26 ongoing and 07 new agriculture-related projects.
- On Monday, the Economic Coordination Committee (ECC) of the Cabinet on Monday allowed the Trading Corporation of Pakistan (TCP) to explore the possibility of the import of 200,000 MT of Urea on government to government (G2G) basis and on deferred payment.
- Meanwhile, ECC also approved a supplementary grant of Rs55.48 billion for the payment of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries.
- On the upside, the number of Raast IDs registration crossed the 10 million mark since its launch in Feb22, another milestone achieved by the central bank in the journey of digitization.
- Aiming to promote long-term value creation and “responsible” engagement of institutional investors with the investee companies, the Securities and Exchange Commission of Pakistan (SECP) has issued the Stewardship Guidelines for Institutional Investors.
- Wheat prices surged to a new record high after India decided to ban exports of the commodity as a heatwave hit production.
- The All-Pakistan CNG Association on Monday announced that CNG stations will remain closed for an indefinite period.
- The Central Directorate of National Savings (CDNS) realized the target of issuing Rs980 billion fresh bonds in the last 10 months of the current fiscal year 2021-22 from July 1st to May 15th.
- On the equity side, Pakistan Refinery Limited (PRL) has signed an agreement with Wood Group UK Limited on Thursday, May 20, 2022.
- The Board of Directors of Loads Limited approved the issuance of redeemable capital in the form of rated, privately placed and unsecured Islamic Commercial Paper (“ICP”) notes in scripless form inducted in the CDS.
- Air Link Communication Limited has said that the ban on imports of unnecessary luxury items imposed by the government will not impact the company’s business.
- Packages Limited (PSX: PKGS) is planning to expand the capacity of Bulleh Shah Packaging by a further 30-35% in addition to the expansion already announced.
- Image Pakistan Limited has informed on Thursday that its latest Schiffli embroidery machine started commercial production on April 18, 2022.
- On the same day, NetSol Technologies Limited announced a buyback of 175,000 ordinary shares of the company while in the previous session, the company had purchased 75,000 ordinary shares of the company, bringing it to 250,000 in two days.
- The proceeds of the fourth right issue of Unity Foods Limited for Rs5.4 billion have been fully utilized to meet the increased working capital requirements.
- Telecard Limited (TELE) has paid Rs110.428 million to its Term Finance Certificate Holders ('TFC Holders') by using the proceeds of Rs200 million against its Offer for Sale (OFS) thus making 03 principal quarterly repayments through a single bullet payment.
- The board of directors of Colony Textile Mills Limited (CTM) has approved an equity investment of up to Rs30 million in its wholly-owned subsidiary Stitchrite (Private) Limited.
- Cnergyico PK Limited has termed the news published in the section of the media claiming that 'Cnergyico Refinery shut down on cash flow concerns', highly misleading and projecting an image that the company has shut down its operations.
- Saudi National Bank (SNB), being the parent company, has terminated the process for the sale of its stake in Samba Bank Limited (SBL) due to the prevailing uncertainty in the market.
- The Board of Directors of Cherat Cement Company Limited (CHCC) has authorized the management of Madian Hydro Power Limited (MHPL) to negotiate and enter into an agreement for sale of a feasibility study to Pakhtunkhwa Energy Development Organization (PEDO).
- VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A+/A-2’ (Single-A Plus/A-Two) to Nishat Chunian Power Limited (NCPL).
- The shareholders of Maple Leaf Cement Factory (MLCF) have accorded their approval to purchase/buy back up to 25 million ordinary shares of the company.
- The Organic Meat Company Limited (TOMCL) has become the first company from Pakistan to successfully export pet food to Europe and is also the pioneer to export the same to the USA market earlier.
- Sazgar Engineering Works Limited (SAZEW) sold 910 units of Auto Rickshaw during the month of April 2022, which was around 52% lower than the sales of 1,911 units made in the previous month.
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