Weekly News Roundup

October 11, 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 Friday, Ministry of Commerce expressed hope that the second round of reduction in Additional Customs Duties (ACDs) and Regular Duties (RDs) on another 150 lines of items, in the chemicals and minerals sector, since July 2020, will be approved by the ECC in the month of October 2020..

Furthermore, the Finance Ministry issued rules governing foreign currency accounts of individuals outlawing the deposit of foreign currency purchased from the open market into these accounts.

The Roosevelt Hotel, owned by Pakistan International Airlines (PIA) in New York, on Friday, announced a permanent closure by the end of this month after suffering financial losses.

The World Bank on Thursday, projected Pakistan’s economic growth to remain below potential, at 0.5 percent for FY21 compared to over 4 percent annual average in the three years to FY2019.

On the electricity front, the National Electric Power Regulatory Authority (NEPRA) increased Rs. 0.83 per unit in the power tariff on Thursday.

On Wednesday, PSX set the duration of Index-Based Market Halt at 60 minutes and it shall be applicable in the last 75 minutes prior to the close of the market.

The same day, Finance Division, Government of Pakistan (GoP)  directed all Federal Government Ministries, Divisions, Attached Departments and Subordinate Offices (MDAS) to close their banks accounts with the commercial banks/financial institutions and transfer the balance funds to the Federal Government’s Central Account No.I (non-food) with SBP.

Moreover, on Wednesday, SBP introduced incentive and penalty mechanism for banks to promote housing and construction financing.

On the equity front, the book-building process of the Initial Public Offering (IPO) of Agha Steel Industries Limited (ASIL), resulted in a strike price of Rs 32 per share on Wednesday.

Hascol reported losses of Rs. 6.49 billion i.e. 15% higher as compared to the same period of last year.

Furthermore, the Board of Directors of Unity Foods Limited informed that they are considering acquisition of 29,919,800 ordinary shares of Reem Rice Mills (Pvt.) Ltd. (REEM), having face value of PKR 10 per share.

In addition to this, Fauji Fertilizer Bin Qasim Limited, in an announcement to Pakistan Stock Exchange (PSX), said that its board has decided to increase the paid-up share capital of the Company by the issue of a further 357,142,857 ordinary shares, having face value of PKR 10 each, as Right Shares.

Lastly, the Board of Directors of Loads Limited decided to invest PKR 3 billion in Hi-Tech Alloy Wheels Ltd.

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