June 05, 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:

• Minister for Planning, Development, and Special Initiatives Ahsan Iqbal on Saturday said the size of the federal development budget under the Public Sector Development Programme (PSDP) has been set at Rs800 billion for the upcoming fiscal year 2022-23.
• Following the price hike announcement by Atlas Honda and Pak Suzuki Motor Company (PSMC), Yamaha Motor Pakistan (Private) Limited on Friday notified a massive increase in Bike prices, effective from today i.e., June 03, 2022.
• On the same day, the Economic Coordination Committee (ECC) of the Cabinet allowed a levy of 10 % regulatory duty on the import of Motor Spirit (MS).
• ECC also released funds amounting to Rs37.33 billion for clearing the remaining outstanding liabilities of the utility companies /agency partners by the Pakistan Post Office Department (PPOD).
• In addition to it, ECC also allows funding of Rs620.85 million for SSGC for gas supply to Pakistan Steel Mills (PSM).
• Moody's Investors Service has revised Pakistan Water and Power Development Authority's (WAPDA) outlook to negative from stable.
• Central Directorate of National Savings (CDNS) informed that it has attained the target of issuing Rs1000bn fresh bonds in 11MFY22.
• Sindh government has decided to cut the petrol quota of ministers and government officials by 40% to share the burden of the general public who have been suffering from the government’s decision of raising petroleum prices by Rs60 per litre in a week.
• Amid soaring international coal prices, supply chain concerns amid Russia-Ukraine chaos and PKR depreciation, cement manufacturers in the North region have increased cement prices by Rs20/bag.
• On Thursday, Finance Minister for Finance and Revenue informed that Pakistan will shortly receive $2.3 billion from China.
• National Electric Power Regulatory Authority (NEPRA), on the same day, increased the power tariff by Rs7.9078/kWh to Rs24.82/kWh for FY23.
• Meanwhile, the federal government increased the price of petrol and diesel by Rs30 per litre to Rs209.86 per litre.
• Federal Minister for Finance and Revenue Mr. Miftah Ismail has also directed to expedite the process for import of edible oil from Malaysia and Indonesia to ensure smooth supply to the consumers.
• Furthermore, Moody's Investors Service (Moody's) downgraded Pakistan’s outlook to negative from stable.
• On the upside, the Turkish company Sutas Group has expressed its deep interest to invest in the dairy sector of Pakistan.
• The incumbent government, during its first two months, has reduced the price of Liquefied Petroleum Gas (LPG) by Rs335 per 11.8-kilogram cylinder aimed at extending all possible relief to the common man amid the increased global-inflation scenario.
• On the back of the higher policy rate and the recent increase in cut-off yields of T-Bills, the Central Directorate of National Savings (CDNS) increased profit rates on almost all national savings schemes.
• Pakistan and Turkey discussed the proposed Preferential Trade Agreement (PTA) in goods for promoting trade liberalization and enhancing bilateral trade.
• While Saudi Arabia is planning to invest in various new avenues and is keenly focusing on the continuation of mutual investment projects within Pakistan.
• During the departed week, the delegation of the telecom sector requested the government a reduction in taxation on items that hardly fall under the purview of luxury goods.
• Federal Minister for Finance and Revenue Mr. Miftah Ismail on Wednesday, assured the delegation of the Pakistan Cotton Ginners Association (PCGA) to resolve their genuine issues to keep this sector vibrant and profitable.
• The Securities and Exchange Commission of Pakistan (SECP) registered 1,906 new companies in May 2022, raising the total number of registered companies to 169,919.
• The government of Pakistan is considering the removal of 2% Additional Customs Duty (ACD) on the import of Palm Oil from the rest of the world except Indonesia.
• Large Taxpayers Office, Karachi has shown remarkable achievement by collecting Revenue at Rs1.39tr in all taxes in 11MFY22. Likewise,  The Federal Board of Revenue (FBR) has also collected net revenue of Rs5,349bn in 11MFY22.
• China Overseas Ports Holding Company Pakistan (Pvt.) Ltd  (COPHC) is interested to enhance the cooperation in the fields of maritime and logistics with Pakistan.
• In order to develop practical solutions for Sukuk structures, the State Bank of Pakistan (SBP) is constituting a working group comprising SBP, SECP, MoF, PBA, Shariah Scholars, and Centers of Excellence in Islamic Finance, Dr. Murtaza Syed, Governor (A) informed.
• Federal Minister for IT & Telecommunications Syed Amin-Ul-Haque has said that the investments of Pakistani startups grew by over 5 times since 2020.

Announcements:

• The Board of Directors (BoD) of Treet Corporation Limited (PSX: TREET) on Friday recommended to extend a working capital loan of Rs3 billion to First Treet Manufacturing Modaraba (FTMM).
• Cordoba Logistics & Ventures Limited (CLVL) in line with its principal business of logistics has signed a Memorandum of Understanding (MoU) with R-Sc Internet Services (Pvt) Limited (Foodpanda Pakistan).
• The Board of Directors of Millat Tractors Limited (PSX: MTL) on Thursday recommended to the shareholders an increase in the authorized share capital from Rs1bn to Rs2bn.
• The shareholders of TPL Corp Limited (PSX: TPL) have resolved to increase the authorized share capital of the company by Rs1.7 billion from Rs3.3bn to Rs5bn.
• Pakistan Petroleum Limited (PPL) has been allowed to continue production from the Sui mining lease for a further period of one year with effect from 1st June 2022.
• Engro Powergen Qadirpur Limited (PSX: EPQL) received the recommendations in relation to the Gas Depletion Mitigation Plan/Option (GDMP/GDMO) by the Project Committee of Private Power & Infrastructure Board (PPIB) that are under the consideration.
• Oil and Gas Development Company Limited (OGDCL) has carried out 1,426 Line-km 2D and 120 Square-KM 3D surveys in its various operational areas during the first nine months of the current fiscal year.
• The Board of Directors of Reliance Weaving Mills Limited (PSX: REWM) has approved the conversion of outstanding loans and advances of Fatima Transmission Company Limited into redeemable preference shares.
• The shareholders of G3 Technology Limited (GTECH) have approved the scheme of merger of GTECH with and into Ghani Chemical Industries Limited (GCIL), subject to the sanction of the Lahore High Court.
• Mari Petroleum Company Limited (PSX: MARI) has made a gas/condensate discovery resulting from its exploratory efforts at Bannu West-1 ST-1 Exploration Well drilled in Bannu West Block, located in North Waziristan, KP.
• The Board of Directors of Silk Bank Limited has granted approval to the management to formally pursue the discussions with Park View Enclave (Private) Limited (PVEL) which has expressed its intention to acquire at least 51% of the capital of the bank.
• The Board of Directors of Fazal Cloth Mills Limited (FZCM) has approved the conversion of outstanding loans and advances of Fatima Transmission Company Limited into redeemable preference shares
• Modarba Al-Mali (PSX: MODAM) has made arrangements with Dadabhoy Sack Limited (DBSL) to increase its authorized capital to Rs2bn while implementing the Revival Business Plan.
• Ghani Global Holdings Limited and its associates may invest in the Dadabhoy Sack Limited (DBSL)'s future right issue as per their “Revival Business Plan” by up to 30% i.e. up to 45,000,000 shares out of the unsubscribed portion.
• Agha Steel Industries Limited has signed an agreement with Saima Group to exclusively provide Green Electric Arc Furnace Technology steel rebars.
• Packages Limited (PSX: PKGS) will invest Rs3.17bn for the acquisition of 3,375,665 ordinary shares i.e. 35% in SanofiAventis Pakistan Limited.
• Balochistan Glass Limited (BGL) has suspended its tableware glass operations located at Kot Abdul Malik (Unit-3) temporarily.
• Adamjee Insurance Company Limited (AICL) has extended the validity of the investment of up to Rs625 million for the purchase of 5 million ordinary shares of Nishat Mills Limited for a further two years till May 28, 2024.
• Maple Leaf Cement Factory Ltd (MLCF) has purchased 2 million ordinary shares of the company in today’s trading session at Pakistan Stock Exchange (PSX) to increase earnings per share.
• System Limited and its wholly-owned subsidiary in Singapore, Systems Internal IT Pte Ltd will enter into a Shares Purchase Agreement with the existing shareholders of NdcTech for the acquisition of 100% shares of NdcTech.

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