July 10, 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:
- Federal Minister for Finance and Revenue Miftah Ismail on Thursday said the declining trend in international food and fuel prices would help bring down commodity rates in Pakistan.
- On the same day, the Economic Coordination Committee (ECC) of the Cabinet directed TCP to float fresh tender for the import of 300,000 MT of wheat.
- ECC also approved the proposed revision in consumer gas sale prices with the direction to further reduce the gas rates for export and non-export industry/ captive power. Furthermore, the committee decided to continue the subsidy on five essential commodities.
- During the same week, ECC approved the amendment in the Import Policy Order (IPO) 2022 to allow the import of goods of Afghan origin against the Pak Rupee and without the requirement of EIF forms for a period of one year.
- Meanwhile, it also granted one-time special permission for the release of consignments stuck at the ports on or before 30th June 2022.
- The State Bank of Pakistan (SBP) has moved up the markup rate for financing under Export Finance Scheme (EFS) and Long-Term Financing Facility (LTFF) by 2.5% and 3% respectively.
- The Monetary Policy Committee (MPC) of SBP decided to raise the policy rate by 125 basis points (bps) to 15 percent to arrest the inflationary pressure.
- In line with the objective of creating a competitive and deep Exchange Traded Funds (ETFs) market, the Securities and Exchange Commission of Pakistan (SECP) has allowed various categories of mutual funds to invest in ETFs.
- SECP cautioned digital lending NBFCs of regulatory intervention if full disclosure and fair business practices are not ensured by the industry as a whole.
- On the energy side, the National Electric Power Regulatory Authority (NEPRA) approved Rs7.90 per unit increase in power tariff for May under the monthly fuel cost adjustment (FCA) mechanism.
- Moreover, the Petroleum Division (PD) reportedly proposed to increase gas prices across the board including fertilizers, cement, export industry, and other non-export sectors.
- A liquefied natural gas tender from Pakistan for around $1 billion of the super-chilled fuel attracted zero offers on Thursday.
- During the departed week, SBP developed an online portal called SBP Regulatory Approval System (RAS) to enable regulated entities to submit cases/proposals and receive regulatory decisions digitally.
- Federal Minister for Planning Development & Special Initiatives Professor Ahsan Iqbal directed the Secretary Board of Investment BOI and Chairman Special Technology Zone Authority (STZA) to remove all bottlenecks and development synergy to attract Foreign Direct Investments.
- Chairman All Pakistan Textile Mills Association (APTMA) Mr. Abdul Rahim Nasir urged the Federal government to restore gas supply to the textile industry on an urgent basis.
- The Executive Committee of the National Economic Council (ECNEC) on Wednesday approved numerous development projects worth Rs4.12 trillion.
- In order to achieve a primary budget surplus in the fiscal year 2022-23, the government has reduced the budget allocated for the armed forces development program by Rs72 billion.
- The central bank on Tuesday announced the effective date of implementation of the International Financial Reporting Standards 9 (IFRS 9) for banks having an asset size of Rs500 billion or above from January 1, 2023. Meanwhile, it has also updated the list of goods which requires prior approval for import transactions as per which it is mandatory for banks to seek prior permission for making transactions related to the import of motor cars in Completely Knocked Down (CKD).
- The Central Directorate of National Savings (CDNS) surpassed its annual target and set a historic record of Rs 1,250 billion in savings by June 30, 2022.
- Minister for Power Engineer Khurram Dastgir on Monday said around 7,000 MW of electricity would be added to the national grid before next summer season, which would help overpower load-shedding in the country.
- On the same day, Miftah Ismail expressed gratitude to the ADB delegation for their persistent support and guaranteed them full cooperation by the present government for the swift execution of the ongoing programs.
- SBP on Monday adopted four more AAOIFI Shariah standards on Salam and Parallel Salam, Istisna'a and Parallel Istisna'a, Combination of Contracts and Irrigation Partnership (Musaqat), with certain clarifications and amendments.
- On the equity side, Sazgar Engineering Works Limited (SAZEW) sold 1,797 units of Auto Rickshaw during the month of June 2022, which was around 53.2% higher than the sales of 1,173 units made in the previous month.
- Novatex Limited submitted a Public Announcement of Intention (PAI) to acquire 75.01% shares of Lotte Chemical Pakistan Limited (LOTCHEM).
- National Investment Trust Limited (NITL) declared its annual results for its funds under management for the year ended June 30, 2022.
- The shareholders of TPL Insurance allowed the company to make an equity investment of Rs200 million in an associated company TPL Life Insurance Limited.
- Dar es Salaam Textile Mills Limited (PSX: DSML) informed on Wednesday that the management is concentrating on the recovery of the balance amount of the sale price regarding the successful disposal of the factory premises and the settlement of financial obligation thereof.
- Honorable High Court of Lahore approved the “Scheme of Arrangement” between Agritech Limited (AGL) and its creditors for the rehabilitation.
- Alpha Beta Core Solutions (Private) Limited being a manager to the offer by New Future Consumer International General Trading LLC (Acquirer) has submitted a Public Announcement of Intention (PAI) to acquire more than 51% shares and control of ZIL Limited (Target).
- Synthetic Products Enterprises Limited (SPEL) has installed, commissioned, and started the operation of an on-grid ground-mounted solar power solution at its Pandoki plant with a capacity of approximately 750 KWh.
- The Pakistan Stock Exchange (PSX) has replaced 5 companies in the Karachi Meezan-30 Index (KMI-30).
- Crescent Steel and Allied Products Limited (CSAP) is negotiating with China Harbour Engineering Company Limited for the manufacturing and coating of pipes (Hot Rolled Coils).
- Summit Bank Limited (SMBL) on Monday said that the Honourable Sindh High Court (SHC) has recalled the Injunction Order with directions that the fresh equity that is being injected by Nasser Abdulla Hussain Lootah shall be allowed.
- The shareholders of Mehran Sugar Mill Limited (MRNS) approved the divestment of entire shareholding in Uni-Food Industries Limited to a prospective buyer Sunridge Foods Private Limited.
- Fauji Fertilizer Company Limited (FFC) informed that the fire erupted at its Mirpur Mathelo plant site on 3rd July 2022, which was extinguished immediately by adopting safety and emergency procedures (SOP).
- Fateh Sports Wear Limited (FSWL) informed that the management of the company is constantly pursuing the case for releasing the stuck-up amount of $2 million and expecting a vacation of stay order from the Honorable High Court of Sindh in order to resume its operations.
- Sui-Northern Gas Pipeline Limited (SNGP) announced its financial results for the quarter ended September 2021 as per which the company has reported a slight decline of 4.6% YoY in net profits.
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