Economy

Weekly News Roundup

June 19, 2022

June 19, 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:

On Friday, the State Bank of Pakistan (SBP) extended the validity period of the renewable energy financing scheme and Islamic financing facility for two years, up to June 30, 2024.
On the same day, the Financial Action Task Force (FATF) announced an onsite visit to Pakistan to check the real implementation of laws/procedures before announcing its decision on whether Pakistan will be removed from the list.
Federal Minister for Water Resources Syed Khursheed Ahmad Shah said the government had allocated Rs105 billion in the federal budget 2022-23 for the construction of dams, and the amount would be increased by Rs 25 billion if needed.
To combat the shortfall between the supply and demand of the electricity, the government of Sindh on Friday announced an energy conservation plan as per which all the markets and shopping malls will be closed by 9 pm.
In a move to meet the gas requirement of the country, Pakistan LNG Limited (PLL) has invited bids to import LNG from international suppliers to ship four cargoes next month.
On Thursday, Minister for Board of Investment and Special Initiative, Chaudhry Salik Hussain invited the Developing-8 countries for exploring the investment opportunities in Pakistan's Special Economic Zones (SEZs).
On the upside, the Sindh government rolled out a Rs 356 million plan of planting 60k palm trees by setting up another 1,000-acre project in Thatta in a bid to enhance local production of edible oils.
During the departed week, the cement manufacturers in the North region have increased cement prices by Rs50/bag, effective from June 16, 2022.
The Sui Southern Gas Company (SSGC) will likely suffer a gas supply shortfall of 40-45 mmcfd as the Gambat Oil field owned by Pakistan Petroleum Limited (PPL) to be closed for the annual turnaround for the next fifteen days.
The gross capacity of nuclear power plants (NPPs) witnessed a 39 percent increase during the period of July-March FY22 as compared to the last fiscal year 2020-21.
Esther Perez Ruiz IMF Resident Representative for Pakistan on Thursday said that the International Monetary Fund (IMF) did not ask Pakistan to renegotiate CPEC IPP contracts.
Federal Minister for Finance and Revenue Mr. Miftah Ismail has directed the relevant authorities to work out a feasible plan for the resolution of GST input and output and gas subsidies issues faced by the Fertilizer sector.
The federal government has decided to raise the prices of petrol and diesel by a further Rs24.03 and Rs59.16 per litre respectively.
Federal Minister for Finance and Revenue Mr. Miftah Ismail has assured Japanese companies working in Pakistan of the full support of the government for the resolution of their issues.
During the same week, the deputy governor of SBP urged banks to leverage SBP’s recent initiatives and expedite efforts to boost agriculture financing and enhance outreach, especially in underserved areas.
Meanwhile, SBP renewed the status of both credit rating agencies operating in Pakistan namely VIS and PACRA as eligible / recognized External Credit Assessment Institutions (ECAIs) for the calendar year 2022.
SBP also decided that Cash Reserve Requirement (CRR) for banks will not be applicable on targets of housing and construction finance for the quarter ending September 30, 2022, and onwards till further instructions on the matter.
Universal Service Fund (USF), MoITT has approved eight new broadband services and fiber optic cable projects worth over Rs10 billion for providing digital services.
The Chairman of the Federal Board of Revenue (FBR) on Tuesday formulated the “Anomaly Committee” to identify, and remove the technical and business anomalies in the Finance Bill 2022.
Pakistan’s Dastgyr Technologies Pvt. raised $37 million in the country’s largest-ever Series A funding while on the same day VEON Ltd. has also completed a US$ 15 million Series A investment in Dastgyr.
On the upside, Pakistan has won a terror-financing case filed against the National Bank of Pakistan (NBP) in New York’s federal court, sources in the Attorney General's Office confirmed Tuesday.
Pakistan will receive 10 containers of edible oil from Indonesia and Malaysia in the next two weeks, Prime Minister’s Office revealed on Tuesday.
The Sindh Cabinet has approved a Rs1.71 trillion tax-free budget for the next fiscal year 2022-23 here on Tuesday.
Federal Minister for Finance and Revenue, Miftah Ismail on Monday said that the government would announce the export policy in the coming days.
Additional measures will be needed to bring Pakistan's budget for FY2022-23 in line with the key objectives of its International Monetary Fund program, the lender's resident representative in Islamabad said on Monday.
On the same day, the Economic Coordination Committee (ECC) of the Cabinet approved a rise in electricity tariff by Rs 7.94 per unit.
At the same time, ECC approved an extension in the Prime Minister’s Relief Package-2020 up to 30th June 2022 on all five essential items.
Furthermore, ECC provisionally allowed M/s MOL to commence production from Tal block namely Mamikhel South amid a gas shortage
In a major move to expand investment avenues for mutual funds, the Securities and Exchange Commission of Pakistan (SECP) has allowed mutual/income funds to invest in “A” or above-rated banks.
During the week, National Electric Power Regulatory Authority (NEPRA) imposed an Rs10 million fine on each Lahore Electric Supply Company (LESCO) and Hyderabad Electric Supply Company (HESCO).
In addition, NEPRA approved Rs3.99 per unit positive fuel cost adjustment (FCA) for April for XWAPDA power distribution companies.

Announcement:

On the equity side, Pakistan Stock Exchange Limited (PSX) intends to acquire 1,949,995 ordinary shares of Rs10/- each in the Central Depository Company of Pakistan Limited (CDC), from IGI Investments (Private) Limited (IGI), a shareholder of CDC.
Sui Northern Gas Pipeline Limited (SNGPL) has approved to lay 295 KMs of pipeline from the newly discovered gas fields in the vicinity of North Waziristan and Lakki Marwat area, to the SNGPL transmission network injection point.
Pakistan’s TPL Corporation Limited has hired Racha Alkhawaja to oversee their expansion into the United Arab Emirates, as more hedge funds look to attract Middle East money.
Modaraba Al Mali (PSX: MODAM) secured agreements for completing the 26% share capital of LSE Financial Services Limited.
United Distributors Pakistan Limited (UDPL) decided to invest $50,000 in Farmdar Private Limited.
MCB Bank Limited (PSX: MCB) injected additional capital of Rs4 billion into its wholly-owned subsidiary namely MCB Islamic Bank Limited.
Hashmi Can Company Limited (HACC) initiated necessary steps for seeking the removal of suspension at PSX due to the fact that the matter of winding up against the Company already stands set aside by the SECP.
The Oil & Gas Development Company (OGDC) has informed that the Joint Venture of Guddu Block discovered Gas from an Exploratory well namely Umair South East # 01.
AGP Limited will acquire a selected portfolio of products from Viatris Inc.
D.G Khan Cement Company (DGKC) is in a process to ship 50,000 tons of the building material to the US.
Gas & Oil Pakistan Ltd. (GO) announced its deployment of a Fire Tender at its Mahmoodkot Terminal.
TPL Insurance Limited (TPLI) will make an equity investment of Rs200 million in the associated company TPL Life Insurance Limited.
The Board of Directors of TPL Trakker approved the de-merger of the mapping segment of the business from the Company by creating a separate entity in Pakistan and transferring the net assets to the same.
The Federal Board of Revenue (FBR) has granted TPL Trakker a license for a period of three years to carry out Safe Transport Environment Project (STE Project).
International Steel Limited (PSX: ISL) increased the price of Cold Rolled steel (CRC) and Hot Dipped Galvanized Coil/Sheets (HDGC) by Rs7,000 per ton to Rs239,500 and Rs258,000 per ton, respectively
Amreli Steels has also increased the booking rates to Rs.231,000/MT for size (9.5/10mm & 12mm) & Rs.229,000/MT for size (16mm & above).
ICI Pakistan Limited has announced that a unit for the production of 100% PET Recycled chip, for the manufacture of Recycled Polyester Staple Fibre, has successfully been commissioned at its plant in Sheikhupura.
The Board of Directors of Lucky Cement Limited (PSX: LUCK) authorized the management of the company to undertake a feasibility study for a renewable energy project at its plant in Karachi, including wind and solar power.