August 30, 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:

Central Directorate of National Savings (CDNS)  increased the profit rates on selected saving schemes ranging from 5 to 90 basis points.

On Friday, Special Assistant to the Prime Minister on Petroleum, Nadeem Babar said that Government made changes in fuel prices policy to facilitate the consumers. The changes will be made in the petroleum products prices after 15 days.

On Thursday, while chairing a meeting of the Economic Coordination Committee (ECC) of the Cabinet, Adviser on Finance and Revenue Abdul Hafeez Shaikh directed that the issue of Roosevelt Hotel should be handled in a fair and most transparent manner and in the best national interest.

Furthermore, in a statement Finance Ministry said that Pakistan's public debt is sustainable and capacity to repay remains adequate.

To facilitate investment by Non-Resident Pakistanis, Government announced to launch digital banking facility in the next month which will allow overseas Pakistanis to open their bank accounts and make investments directly in the country from abroad.

On Wednesday, the Asian Development Bank (ADB) approved the issuance of rupee denominated bonds to support local currency and capital markets. In addition, it also announced to  provide Knowledge and Support Technical Assistance (KSTA) to Pakistan in order to achieve sustainable food security as well as for controlling locust attacks.

Moreover, Petroleum Division, in its letter issued to the Chairman of OGRA and Chief Executive Officer of Oil Companies Advisory Council, laid out the policy parameters on the basis of which OMCs and Refineries will determine the ex-refinery prices of Motor Gasoline and High-Speed Diesel, in order to implement ECC’s decision.

In addition to this, the Petroleum Division informed that it is planning to start ‘physical work’ on the much-delayed Pakistan Arab Refinery Company (PARCO) Coastal Refinery before the next summer to achieve self-reliance in the oil production sector.

Also, it planned to auction twenty new Exploration & Production blocks during next month.

The Securities and Exchange Commission of Pakistan (SECP) granted license of life insurance to Postal Life Insurance Company Limited, to act as a life insurer under the Insurance Ordinance, 2000.

Besides, Federal Board of Revenue (FBR) approved the Audit Policy, 2019 pertaining to Tax Year 2018. The Audit Policy, 2019 shall apply to persons or classes of persons falling under all or any of the three domestic Federal Tax Statutes I.e. Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005.

On Monday, the Ministry of National Health Services Regulation and Coordination allowed pharmaceutical companies to increase prices of medicines up to 10%.

On the equity front, the Oil and Gas Development Company Limited (OGDCL) announced to strike an oil and gas discovery at Togh Bala Well-1 in district Kohat of Khyber Pakhtunkhwa province.

Ghani Chemical Industries signed a 5-year agreement with Attock Refinery for the supply of Liquid Nitrogen.

Fatima Fertilizer Limited announced to acquire production and operating plants (Ammonia, Urea, Nitric Acid, Nitro-Phosphate, Calcium Ammonium Nitrate and Clean Development Mechanism) from Pakarab Fertilizers by Sept 1.

Financial Results:

Apart from this, several listed companies announced their financial results last week amid ongoing earnings season. Some of the important ones are:

• EFU General Insurance Limited (EFUG) recorded profits of Rs 1.53 billion (EPS: Rs 5.84) for the half year ended June 30, 2020, which was around 2.3 times higher than the net profits of Rs 646 million (EPS: Rs 2.05) of the corresponding period last year.
• GLAXO reported a 42% YoY rise in half-year profits.
• Adamjee Insurance Company Limited (AICL) observed 64% YoY jump in its net profits as insurance claims decline.
• Standard Chartered Bank’s profits surged by 36% YoY during 1HCY20.
• Bank Alfalah’s net profits declined by 9% YoY due to hefty provisions.
• International Steels Limited’s net profits crumbled by 81% YoY on account of Lower sales and higher financial charges.
•  NRL posted Rs 4 billion loss in FY20 due to int’l oil price changes.
• Systems Limited recorded half yearly earnings of Rs. 1.06 billion (EPS: 8.73), i.e. around 22% higher as compared to the same period of last year.
• Attock Cement reported 23.8% YoY upsurge in consolidated profits to Rs 2.6 billion in FY20.
• POL’s net profitability surges by 9.6% YoY in FY20 to Rs 14.56 billion.
• Cherat Cement suffered Rs 1.89 billion loss on lower retention price.
• Fatima Fertilizers’ revenue dropped by 27% owing to closure of Sheikhpura plant.
• Soneri Bank Limited reported 16% YoY increase in net profits during 1HCY20.
• Lucky Cement observed 46% YoY decline in earnings due to lower margins and higher input costs.
• Unilever witnessed 81% YoY robust growth in net earnings.
• Copyright Mettis Link News

36615