June 12, 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:

• In a successful operation, Pakistan Customs (FBR) on Saturday seized Fertilizer (140 bags) and Sugar (120 bags) systematically concealed in an export consignment for Afghanistan.
• The government on Friday proposed rationalization of custom duty in the Federal Budget 2022-23 to provide relief to different sectors, including the packaging industry and agriculture.
• On the same day, Minister for Finance and Revenue Miftah Ismail informed that as many as nine LNG cargoes are likely to reach Pakistan from Qatar.
• Federal Minister for Finance and Revenue, Mr. Miftah Ismail has presented the budget for the financial year 2022-23 in the federal cabinet session, aimed at containing twin deficits.
• Fauji Fertilizer Company Limited (FFC) has increased DAP prices by Rs700 per bag with effect from June 18, 2022.
• The World Bank’s Board of Executive Directors approved $300 million to support the most vulnerable districts of Khyber Pakhtunkhwa (KP) province.
• In an effort to overcome the ongoing power shortfall, K-Electric (KE) has issued a new load-shedding schedule for up to nine hours in high-loss areas of Karachi with effect from Thursday in line with National Power Policy.
• Unveiling the important budgetary document of 'Pakistan Economic Survey 2021-22' on Thursday, Minister for Finance and Revenue Miftah Ismail termed the GDP growth rate of 5.97 percent during FY22 unsustainable.
• The Pakistan Water and Power Development Authority (WAPDA) awarded three contracts worth Rs98.5 billion for the construction of Phase-I of the Greater Karachi Water Supply Scheme, also known as K-IV to supply 260 million gallons per day (MGD) of water to Karachi.
• Minister of State for Petroleum Dr. Musadik Malik informed the National Assembly that the government is giving around 68-88 percent per unit subsidy to domestic gas consumers.
• During the departed week, the Senate passed the Fiscal Responsibility and Debt Limitation (FRDL) (Amendment) Bill, 2022 with a majority vote.
• The National Electric Power Regulatory Authority (NEPRA) has approved a massive increase of Rs7.82 per unit in the electricity tariffs for K-Electric consumers.
• Moody’s Investors Service on Wednesday affirmed the B3 long-term deposit ratings of Pakistan’s top five banks and changed the outlook on the banks' long-term deposit ratings to negative from stable.
• On the same day, the Competition Commission of Pakistan (CCP) conducted a search and inspection of three undertakings engaged in the supply of steel structures to DISCOS across Pakistan, on the suspicion of facilitating a possible bid-rigging/cartelization.
• The National Economic Council (NEC) approved the annual targets for the upcoming fiscal year 2022-23, including the economic growth target set at 5 percent, along with efforts to raise it to 6 percent.
• During the outgoing week, President Dr. Arif Alvi Wednesday accorded his approval to the appointment of Ahad Khan Cheema as Advisor to the Prime Minister.
• Meanwhile, the federal government has decided to restore Saturday as the weekly holiday with immediate effect.
• On the same day, Prime Minister Muhammad Shehbaz Sharif Wednesday directed the concerned authorities to abolish all taxes on the raw materials of the export industry.
• The government has released an amount of Rs46,868.33 million for various power division schemes under Annual Public Sector Development Programme (PSDP) during the last 11 months of the current fiscal year 2021-22.
• On the upside, Pakistan has moved six points up in the International Travel and Tourism Development Index as per the report released by the World Economic Forum (WEF).
• Fitch Ratings, in its latest report, said that the Islamic finance industry in Pakistan is expected to continue its growth trajectory over the medium term.
• Federal Minister for Finance and Revenue Miftah Ismail on Tuesday, refuted the news of yet another hike in petroleum product prices and clarified that there is no summary or plan to raise fuel prices.
• NEPRA granted the market operator license under the Competitive Trading Bilateral Contract Market (CTBCM) to the Central Power Purchasing Agency (Guarantee) Limited (the CPPA-G).
• Oil and Gas Development Company Limited (OGDCL) has produced around 822 Tons per Day (TPD) of Liquefied Petroleum Gas (LPG) during the first nine months of the current fiscal year as compared to 802 TPD in the corresponding period of the last year.
• Prime Minister Muhammad Shehbaz Sharif on Tuesday directed an immediate supply of gas to the public from the recently discovered reservoirs in the erstwhile tribal areas of North Waziristan.
• Owing to the increasing cost of manufacturing, the long steel manufacturers including Amreli Steels (ASTL), Agha Steels (AGHA), and Mughal Steels have increased their prices for rebars and girders by around Rs6,500 per ton on Monday.
• In addition to it, the cement manufacturers in the South region have also increased the prices by Rs25 per bag.

Announcement:

• On the equity side, the board of directors of Service Industries Limited (SRVI) has allowed its wholly-owned subsidiary Service Industries Capital Pvt Limited (SICL) to invest the funds amounting to Rs100 million to be provided by SRVI, in Jomo Technologies Pvt Limited.
• LOTTE Chemical Corporation, South Korea (LCC Korea), the majority (75%) shareholder of LOTTE Chemical Pakistan Ltd (PSX: LOTCHEM) is optimizing portfolios over many assets, with the strategic divestment options for LOTCHEM also under consideration as part of its long-term strategy.
• Sazgar Engineering Works Limited (SAZEW) sold 1,173 units of Auto Rickshaw during the month of May 2022, which was around 29% higher than the sales of 910 units made in the previous month.
• The board of directors of Bhanero textile Mills (BTML) has passed a resolution to approve the Scheme of Arrangement wherein Bhanero Energy Limited (BEL)-Kotri Unit 1 undertaking is being transferred to BTML.
• The Board of Directors of Systems Limited (PSX: SYS) on Thursday decided to issue 11.82 million shares for the acquisition of NDC Tech (Pvt.) Ltd., NDC FZC, and NDC Tech Apac Pte. Ltd.
• The Board of Directors of Engro Powergen Qadirpur Limited (PSX: EPQL) has decided to accept the proposal of the Project Committee of the Private Power & Infrastructure Board (PPIB).
• The shareholders of Summit Bank Limited have approved the inclusion of ARY Owner Mr. Salman Iqbal in the consortium led by Nasser Abdulla Hussain Lootah (Acquirer), to acquire shares of Summit Bank at a price of Rs2.51 per share.
• The Certificate holders of Awwal Modaraba on Thursday unanimously adopted the approval of the merger of Awwal Modaraba with and into Awwal Corporate Restructuring Company Limited (ACRCL) with a swap ratio of 0.876 certificates.
• VIS Credit Rating Company Limited (VIS) has revised Nishat Chunian Limited (NCL)’s outlook from stable to positive on the back of improvement in the company’s liquidity profile.
• Sunridge Foods (Private) Limited, a wholly-owned subsidiary of Unity Food Limited will acquire Uni-Food Industries Limited at a total cost of Rs1.2 billion including bank and other liabilities.
• Fauji Fertilizer Company Limited (FFC) under its CSR budget has successfully completed its social welfare projects at Sadiq Abad Goth Machi in three phases.
• The Board of Directors of Mehran Sugar Mills Limited (MRNS) has approved the divestment of entire shareholding in one of its associated companies, namely Uni-Food Industries Limited to a prospective buyer Sunridge Foods Private Limited, a wholly subsidiary of Unity Foods.
• The Pakistan Stock Exchange (PSX) has carried out the Re-Composition exercise of JS Momentum Factor Index (JSMFI) as of May 31, 2022, as per which TRG Pakistan Ltd, Millat Tractors Limited, Pakistan Oilfields Limited, Fauji Fertilizer Co. Ltd, and Oil & Gas Development Company Ltd have been included in the index.
• BIPL Securities Limited (BIPLS) has informed that the honorable Sindh High Court, has sanctioned the merger of AKD Securities Limited with and into BIPL Securities Limited.
• Sunridge Foods (Private) Limited is all set to enter into the confectionery business as the company has decided to make an offer to purchase 100% shareholding of Uni-Food Industries Limited.
• The Board of Directors of Habib Metropolitan Modaraba Management Company (Private) Limited, approved the draft Scheme of Arrangement as per which Habib Metro Modaraba (HMM) shall be merged, by way of amalgamation, with and into First Habib Modaraba (FHM).
• Interloop Limited (PSX: ILP) has informed that the VIS Credit Rating Company Ltd. (VIS), a 'Full Service' rating agency, has reaffirmed the entity ratings of `A+/A-1' assigned to the company.
• Universal Network Systems Limited (PSX: GEMUNSL) has entered into a nonbinding agreement for the acquisition of a majority stake in an eCommerce logistics & fulfillment company in Pakistan.

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