July 31, 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 order to curb demand and safeguard external stability, the State Bank of Pakistan (SBP) may hike the policy rate by 150-200 basis points (bps) to 16.5-17%, Citigroup forecasted in its latest report.
• Federal Minister for Finance and Revenue Mr Miftah Ismail on Friday said that attracting U.S. foreign investment in different sectors of Pakistan is the government’s top priority.
• On the same day, the Securities and Exchange Commission of Pakistan (SECP) organized a “High Power Session on Islamic Finance” to discuss potential issues, challenges, and opportunities related to Islamic finance within regulated sectors of SECP.
• Meanwhile, Army Chief Qamar Javed Bajwa asked the US Deputy Secretary of State Wendy Sherman for help in securing an early loan dispersal from the International Monetary Fund (IMF).
• On the energy front, the government is likely to increase petrol and diesel prices by up to Rs10 per litre on the back of a rise in petroleum dealers’ margins.
• The global ratings agency S&P on Thursday revised Pakistan's outlook to “negative” from “stable”, citing risks from higher commodity prices and the country's weakening currency.
• During the departed week, the Economic Coordination Committee (ECC) of the Cabinet lifted the ban on imported goods except for Auto CBU, Mobile CBU, and Home Appliances CBU.
• ECC also approved the proposal of shifting Fatima Fertilizer (Sheikhupura Plant) and Agritech plant on indigenous gas.
• In addition to it, ECC fixed petroleum dealers’ margin at Rs7.00/litre for Motor Spirit (MS) and High-Speed Diesel (HSD). Furthermore, it also allowed to import of 200,000 MT of imported wheat on CFR basis, said a press release issued today.
• During the past week, Pakistan Chemicals & Dyed Merchant Association (PCDMA) has registered a complaint regarding banks charging higher exchange rate than interbank rate.
• Toyota Indus Motors Company has announced to refund 100% of the deposited amount along with a mark-up payment on booking cancellation.
• The State Owned Enterprises (SOEs) have persistent issues that need to be resolved to improvise efficiency, Miftah Ismail said while addressing the seminar on Wednesday.
• Pakistan sovereign credit is under renewed pressure as bonds yields surge to levels last seen during the Global Financial Crisis, said JP Morgan in its latest report.
• The spokesperson of Ministry of Power on Tuesday said that the additional tax included in the commercial electricity bills was the sales tax.
• On the same day, the government raised electricity prices to match rising generation costs amid a global energy crisis and a heatwave, even as the country grapples with its highest inflation in over a decade.
• Southern Gas Company (SSGC) is currently in process of executing at least three strategic projects to supply gas to two Special Economic Zones (SEZs) and an industrial park in their respective areas to boost industrial production.
• The government on Monday finally allowed banks to resume disbursements to already approved cases under Mera Pakistan Mera Ghar Scheme (MPMG).
• The (ECC) of the Cabinet on Monday approved the electricity rate at US cents 9 per kWh to five export-oriented sectors with effect from August 1, 2022. It also approved the rate of Regassified Liquefied Natural Gas (RLNG) at $9 per mmbtu.
• Finance Minister on Monday said that Pakistan is expected to receive the next tranche of IMF by end of August after IMF's board meeting on Aug 24.
• Fitch Ratings has revised the Outlook on Pakistan Water and Power Development Authority (WAPDA) to Negative from Stable while affirming its Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B-'.
• Pakistan’s central bank is discouraging interbank trading due to a severe shortage of dollars that has pushed the rupee to post its worst weekly drop since 1998.

Announcement:

• On the equity side, Atlas Honda Limited registered a profit after tax of Rs1.50 billion, up by 12.7% YoY in the first quarter ended on June 30, 2022.
• GlaxoSmithKline Consumer Healthcare Pakistan Limited (GSKCH) has now become a group company of Haleon plc.
• Bank Alfalah Limited posted consolidated profits of Rs8.76bn, up by 25% YoY in 1HFY22.
• On the other hand, the profitability of Habib Bank Limited shrank by around 33% YoY to stand at Rs12.1bn in1HCY22.
• Indus Motor Company Limited (INDU) decided to temporarily shut down its production plant effective from August 1, 2022, to August 13, 2022, due to the falling rupee and LC approval constraints.
• FFC achieved net profitability of Rs9.6bn in 1HFY22. Meanwhile, Engro Fertilizer Limited (EFERT) reported a 48.5% YoY decline in net profits in 1HCY22 to Rs5.4bn.
• Pakistan Suzuki Motors (PSMC) on Thursday said that the import restriction imposed by SBP might result in a shutdown of the Company’s plant in near future.
• On the same day, the board of directors of Cordoba Logistics & Ventures Limited (PSX: CLVL) approved the investment of Rs30 million in Berlitz Pakistan.
• Nestle Pakistan Limited's Profit after Tax (PAT) clocked in at Rs7.7bn in 1HCY22.
• The management of Bolan Castings Limited decided to shut down the manufacturing plant from Thursday, July 28, 2022, till the restoration of the electricity supply in the area.
• The management of AKD Securities Limited, formerly known as BIPL Securities Limited informed the local bourse that the operational merger of BIPL Securities with AKD Securities will be effective from August 01, 2022.
• Engro Fertilizers Company Limited (EFERT) has successfully resolved an unscheduled breakdown of its ENVEN Plant.
• Indus Motor Company Limited (PSX: INDU) has no plans fixed for a complete plant shutdown for more than two weeks in the month of August 2022, the management of the company clarified on Wednesday.
• Pakistan Stock Exchange (PSX) and Meezan Bank Limited signed an agreement to provide a dedicated shariah-compliant trading platform for Roshan Digital Account (RDA) clients.
• The National Electric Power Regulatory Authority (NEPRA) issued a show cause notice to Kot Addu Power Company (KAPCO), in respect of the extension of the Company's Power Purchase Agreement (PPA) for a period of 485 days.
• Octopus Digital Limited and Cisco Technologies have signed a Memorandum of Understanding (MoU) to accelerate awareness, sales, and market share of Cisco Technology products within the IoT Cybersecurity space.
• Avanceon Limited has partnered with Compressor Controls Corporation (CCC) to retrofit a high-value up-gradation project.
• The profitability of Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) plunged by 29% YoY for the quarter that ended on June 30, 2022.
• . Fauji Fertilizer Bin Qasim Limited (FFBL) has reported a more than twofold increase in net profits to Rs4bn during 1HCY22.
• The name of BIPL Securities Limited (PSX: BIPL) has been changed to AKD Securities Limited.
• After obtaining approval from the Securities and Exchange Commission of Pakistan (SECP), the name of Husein Sugar Mills has been changed to Tariq Corporation Limited.
• ICI Pakistan Limited announced its intention to acquire approximately 75.01% shares of Lotte Chemical Pakistan Limited (LOTCHEM)
• The Board of Directors (BoD) of Dawood Hercules Corporation Limited (PSX: DAWH) approved the investment of Rs375mn in the proposed Right Issue of Empiric AI (Private) comprising 37.5mn shares

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