October 18, 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:
Dr. Reza Baqir launched the SBP FX Regulatory Approval System (RAS) for end-to-end digitalization of Foreign Exchange (FX) related case submission process on Saturday, in a ceremony held in Karachi.
On Friday, the World Bank announced to provide 1.150 billion dollars concessional financing to Pakistan for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, and transmission of power from Dasu Hydropower Project.
Meanwhile, Prime Minister Imran Khan via his official twitter account informed that around 21,000 non-resident Pakistanis opened Roshan Digital Account remotely and sent 24 million dollars with the number still growing.
Furthermore, the government on Thursday decided not to change the prices of the petroleum products for the month of October.
The same day, Economic Coordination Committee approved the import of 340,000 metric tonne wheat.
Besides, Pakistan Business Council (PBC) cautioned the government against an accession to the World Trade Organisation’s (WTO) treaty of free trade of IT products, as it says this will annihilate the electronics manufacturing sector before its birth.
On Wednesday, ECC approved technical supplementary grant amounting to Rs.72.635 billion to Power Holding Limited.
On Tuesday, the International Monetary Fund (IMF) in its World Economic Outlook report “A long and difficult Ascent,” projected Pakistan GDP growth rate at 1 percent for FY21 against -0.4 percent in FY20.
Moreover, the Federal Cabinet, in the meeting held on Tuesday, approved the Export-Import Bank of Pakistan (EXIMBP) Bill.
On Monday, in line with its vision of providing affordable housing to the masses, Government of Pakistan announced to provide a markup subsidy facility for the construction and purchase of new houses.
On the equity front, HinoPak Motors Limited (HINO), via notification to Exchange informed that the Rights trading period for company’s right issue of 12.4 million shares starts on Oct 22.
Besides, the Board of Directors of Fauji Fertilizer Company, in its meeting held on October 13, 2020, recommended subscription of the shares of Fauji Fertilizer Bin Qasim (FFBL) in the Rights Issue not exceeding Rs. 2.4 billion for the approval of the Company’s members, subsequent to the decision by the latter to issue 38.2335% rights at a price of Rs. 14 per share.
In addition to the above, Samba Financial Group (SFG) entered into a framework agreement with Saudi Arabia’s National Commercial Bank (NCB) to, inter cilia, begin a reciprocal due diligence process and to negotiate definitive and binding terms of a potential merger of SFG and NCB.
The Board of Directors of Dawood Lawrencepur Limited, in its emergent meeting, held on October 12, 2020, approved the investment of Rs. 30 million in the Right Issue announced by Reon Energy Limited, wholly owned subsidiary company, comprising of 3 million shares of Rs 10 each.
Foundation Securities launched Shariah Compliant Stock Investment Shariah Edge; first-ever shariah-compliant trading platform in Pakistan.
Apart from this, several listed companies announced their financial results last week amid ongoing earnings season. Some of the important ones are:
Sui Northern Gas Pipelines Limited (SNGPL) unveiled net profits of Rs 5.77 billion which was lower by 26.10% YoY, compared to the profits of Rs 7.81 billion reported in the same period last year.
Habib Bank Limited (HBL) witnessed a 2.86x (186.38%) increase in its net profits after tax during 9MCY20 to Rs. 25.27 billion as opposed to the profits of Rs 8.82 billion earned in the corresponding period of last year.
Engro Polymer and Chemicals Limited (EPCL) made profits of Rs. 2.1 billion (EPS: 2.31) during the nine months ended September 30, 2020, i.e. around 25% lower as compared to the same period of last year.
FrieslandCampina Engro Pakistan Limited (FCEPL) reported net profits of Rs 321 million for the nine months ended on September 30th, 2020 against the net losses of Rs 808 million of the corresponding period last year.
Dolmen City REIT’s net profits declined by 30.40% YoY to Rs 554 million, compared to the profits of Rs 796 million of the same period last year.
Pakistan Telecommunication company Limited (PTCL)’s net income fell by 41.67% YoY to Rs 1.56 billion for the nine months ended on September 2020, compared to Rs 2.67 billion reported in the same period last year.
The financial statement of Nishat Chunian Limited (NCL) showed a whopping 91.6% YoY decline in net profits to Rs.265.3 million for FY20, compared to Rs 3.16 billion booked in FY19.
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