August 2, 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:
Keeping in view the global price hike of oil, the government on Friday increased the prices of petrol from Rs100.11 per liter to Rs103.97 per liter, an increase of Rs3.86.
Honda Atlas Cars Pakistan Limited also announced that prices of Honda Cars have been revised w.e.f 10th August 2020 due to the current forex situation.
On Thursday, Privatization Commission, after due consideration and considering all correlated aspects, rejected the proposal to increase the divestment of OGDC shares up to 10%.
Also, the Privatization Commission (PC), Board was informed in the meeting held on 29th July regarding decision of the Federal Cabinet for initiation of hiring process of Financial Advisory Consortium (FAC) for Roosevelt Hotel New York, USA owned by PIA.
Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet approved a proposal by the Ministry of Energy for revision of prices of petroleum products on fortnightly basis instead of the existing monthly basis.
On Wednesday, PSO, the largest Oil Marketing Company of the country, successfully installed and commissioned its first electric vehicle charging station under the brand name “PSO Electro” at PSO Capri Gas Station, F-7, Islamabad.
Furthermore, the company via notification to Exchange informed that PSO’s shareholding in PRL increased to 63.56% as it has paid an amount of Rs. 224,590,280 to Pakistan Refinery Limited (PRL) for the subscription of 22,459,028 shares which remained unsubscribed as part of the right issue made by the latter. This was in addition to PSO’s subscription of its own 60% portion of Right Shares in PRL.
On Tuesday, the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, said that the government will start discussions with stakeholders to develop a 3-year roadmap for tariff rationalization for export-led industrialization in the month of August.
Moreover, a report published by Moody’s has said that lower remittances after coronavirus are likely to hurt consumption, raise external risks in major recipient countries, including Pakistan.
Besides, the Government of Pakistan approved a reduction in General Sales Tax (GST) on tractors from 5% to zilch, for the Financial Year 2021.
Further, Pakistan LNG Limited (PLL) secured the record low price for liquefied natural gas (LNG) import through spot contracts in response to bids for LNG cargoes.
On equity front, Pakistan Stock Exchange notified the listing of The Organic Meat Company (TOMC) with effect from Monday, August 3, 2020.
Additionally, the LOTTE Chemical Pakistan Limited (LOTCEHM) via notification to Exchange announced the commencement of sale of surplus electricity to K-Electric from July 30, 2020.
Meanwhile, TRG Pakistan Limited announced that one of its indirect portfolio companies, IBEX Limited, has initiated a listing process on NASDAQ.
Apart from this, several companies announced their financial results last week according to which:
Sui Southern Gas Company (SSGC) suffered losses of Rs 3.6 billion during 1QFY18.
Atlas Honda suffered losses of Rs 117 million during 2QCY20.
Archroma Pakistan Limited (ARPL) posted its profit after tax of Rs 783 million (EPS: Rs 22.96) for the nine months ended June 30, 2020, i.e. 29.35% lower than the net profits of Rs 1.108 billion (EPS: Rs 32.50) of the corresponding period last year.
Nestle Pakistan Limited reported a 13% YoY decline in net profits after tax to Rs 3.87 billion for the half year ended on June 30th, 2020, compared to Rs 4.47 billion earned in the corresponding period last year.
Nishat Power Limited’s financial results for the year ended June 30, 2020, shows that the company has made profits of Rs. 4.9 billion (EPS: Rs. 13.96), i.e. nearly 31% higher than the earnings of last year.
Fauji Fertilizer Company Limited (FFC) disclosed a consolidated profit after tax of Rs 9.785 billion for the six months ended June 30, 2020, showing a growth of 13.7% YoY against net profits of Rs 8.607 billion in the same period of last year.
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