September 6, 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:
Prime Minister Imran Khan on Saturday announced a historic Rs1,100 billion package under the Karachi Transformation Plan to resolve the lingering and chronic issues of the port city, including provision of clean drinking water, cleaning of drains, and sewage and solid waste disposal within three years.
The Petroleum Division (PD) on Thursday rejected negative views expressed at a virtual moot organized by a Think Tank, Islamabad Policy Institute (IPI), the other day against its decision to import Euro-V standard petrol and diesel in the country, terming them baseless and misleading.
On Thursday, the State Bank of Pakistan announced the designation of D-SIBs for the year 2020 under the Framework for Domestic Systemically Important Banks (D-SIBs) as per which three banks viz. Habib Bank Ltd., National Bank of Pakistan, and United Bank Ltd. have been designated as D-SIBs for the year 2019.
Meanwhile, Federal Minister for Privatization Mohammed Mian Soomro chaired the Privatization Board (PC) meeting in Islamabad in which the Board approved the transaction structure for the revival of Pakistan Steel Mills Corporation (PSMC) which has not been operational since June 2015.
Furthermore, one of the leading financial market research firm based in New York, said that Pakistan’s stock market is the best performer in Asia and the fourth best performing stock market in the world.
On Wednesday, Minister for Science and Technology Fawad Chaudhary informed that the local assembling of electric buses will start next year.
The same day, Economic Coordination Committee (ECC) of the cabinet approved $142 million for meeting the financial requirements of the Hotel Roosevelt.
In a meeting held on Tuesday between the Ministries of Commerce, Finance and Energy, it was agreed that erstwhile zero- rated industries will be given a rate of 7.5 c/kWh for July and August and 9c/kWh thereafter.
In addition, National Electric Power Regulatory Authority on Tuesday approved 84 paisa per unit increase in power tariff for July under the monthly fuel adjustment mechanism.
On the upside, Federal Board of Revenue (FBR) stated that Pakistan Customs performed tremendously well towards the achievement of the revenue target of customs duty assigned for the month of August 2020.
On Monday, the Oil and Gas Regulatory Authority (OGRA) issued a price-revision notification of Liquefied Petroleum Gas (LPG) for the month of September as per which Local LPG price increased by Rs18.83 per 11.8-kg cylinder.
Moreover, the government on Monday decided to maintain the prices of various petroleum products at the existing level for the month of September.
On the equity front, Maple Leaf Capital Limited acquired/purchased 24,761,001 voting shares of Pioneer Cement Limited.
Nimir Industrial Chemicals Limited (NICL) decided to set-up a new 20 MW Solid-fuel fired Power Plant at a total investment of Rs 3.50 billion to generate electricity at the most economical cost in view of increased power requirement.
Financial Results:
Apart from this, several listed companies announced their financial results last week amid ongoing earnings season. Some of the important ones are:
National Bank of Pakistan (NBP) reported 36.84% YoY growth in net profits for the half year ended June 30th, 2020.
Pakistan State Oil Limited (PSO) reported a loss after tax of Rs 14.76 billion against a net profit of Rs 15 billion in FY19.
Bestway Cement Limited (BWCL) posted net profit of Rs 49 million (EPS: Rs 0.08), depicting a massive 99.51% decline against a net profit of Rs 10.09 billion (EPS: Rs 16.93) in FY19.
Descon Oxychem Limited earned a profit of Rs. 418.4 million, i.e. around 6% higher as compared to the earnings of last year.
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