Weekly News Roundup

July 5, 2020 (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 Saturday, the federal government appointed Mr. Muhammad Javed Ghani as Chairman, Federal Board of Revenue (FBR) in replacement of Nausheen Amjad, for a period of three months.

Meanwhile, the Central Directorate of National Savings (CDNS)  updated that it has achieved its annual collection of net annual target of Rs 377 billion in the current fiscal year by June 30.

On Friday, International Labour Organization (ILO) warned that the number of working hours lost across the world in the first half of 2020 was significantly worse than previously estimated, while the highly uncertain recovery in the second half of the year will not be enough to go back to pre-pandemic levels, even in the best scenario, and risks seeing continuing large scale job losses.

Besides, the Economic Coordination Committee (ECC) in its meeting held on Friday under the Chairmanship of Abdul Hafeez Shaikh, took up a proposal for policy guidelines with respect to sale price of RLNG.

Moreover, the ECC took also up the proposal submitted by Ministry of Industries and Production and allowed provision of gas at Rs 756 MMBTU to two shutdown plants at SNGPL; namely Agritech and Fatima Fertilizer, for three months w.e.f. July-September.

Furthermore, World Bank Senior Economist Gonzalo Valera on Friday said that the World Bank is keen to help the commerce ministry with e-commerce reforms.

Additionally, IFC, a member of the World Bank Group, is making an equity investment of up to PKR 500 million (about $3.2 million) in Pakistan Mortgage Refinance Company Limited (PMRC), to catalyze affordable mortgage financing to help to address a critical gap in affordable housing.  

On Thursday, Advisor to the Prime Minister on Commerce and Investment, Mr. Abdul Razak Dawood, while chairing a meeting to discuss the export strategy of Pakistan stated that exports of Pakistan are showing clear signs of recovery, due to the efforts of the exporters to diversify the products, in the wake of new opportunities arising amid COVID 19 pandemic, and support from the Government in this regard.

The same day, the Competition Commission of Pakistan (CCP) informed that in the fiscal year 2019-20, it has processed and granted approval to 59 Merger & Acquisition applications against the annual target of 50, showing the CCP’s promising performance to facilitate the local and foreign investors despite the limitations caused by COVID-19 pandemic.

Also, Government of Pakistan raised profit rates on national saving certificates by smaller margins with effect from July 2, 2020. As per official sources, the profit rate on behbood, pension and shuddaa has been increased by 12 basis points to 9.96 percent.

In addition to this, the government on Thursday, extended the date for encashment of Rs 40,000 denomination national prize bonds for another six months. Now, Rs 40000 prize bonds could be converted till December 31, 2020.

On Tuesday, the Federal Board of Revenue (FBR) announced that it has successfully achieved a target of Rs. 4 trillion in terms of gross revenue despite coronavirus struggles.

Meanwhile, Finance Division directed financial institutions to discontinue investment in all National Savings Schemes with effect from July 1, 2020, on the recommendation of the State Bank of Pakistan. 

On equity front, The Organic Meat Company Limited is set to go public with its Initial Public Offering and subsequent listing on Pakistan Stock Exchange, as an exporting and processing company of world class halal beef and mutton meat. This will be the very first IPO of the fiscal year 2020-21.

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