November 8, 2020 (MLN): The highlight of the departed week was the energy relief package announced by Prime Minister Imran Khan on Tuesday, as per which electricity will be provided to industries at reduced cost. Apart from this, the other 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, Minister for Industries and Production Hammad Azhar said Price of sugar will go down by upto Rs 20 as Govt has imported over 100 tons
On Thursday, the State Bank of Pakistan (SBP) informed that under its Rozgar scheme for protecting businesses and employees working with them from the impact of COVID-19, it has so far approved Rs 237.211 billion for 2,949 businesses.
Besides, the Asian Development Bank (ADB) is planning to provide around $10 billion in fresh assistance for various development projects and policy-based programmes to Pakistan, various media reports as well as ADB informed on Thursday.
Furthermore, at a webinar hosted by Pakistan High Commission Ottawa and Consulate General of Pakistan Toronto, it was informed that Forty thousand non-resident Pakistanis have so far opened Roshan Digital Accounts and one thousand new accounts are being opened on daily basis.
On Wednesday, the Oil and Gas Development Company Limited (OGDCL) updated that it has injected two new wells, producing 65,233 Barrels crude oil and 368 Million Cubic Feet (MMCF) gas, in its production gathering system during first quarter of the current fiscal year.
Moreover, the Economic Coordination Committee (ECC) of the cabinet Wednesday formed a committee to prepare a proposal on modalities for clearing the circular debt of the Petroleum Division.
With regards to telecom sector, the Federal government approved three-year “Rolling Spectrum Strategy 2020-2023” to ensure faster telecom network speed.
In addition, the Asian Development Bank (ADB) and the Government of Pakistan Tuesday signed a $2 million grant agreement to strengthen Pakistan’s efforts to combat the coronavirus disease (COVID-19) pandemic.
On the upside, Advisor to the Prime Minister for Commerce, Textile, Industry, and Production, and Investment of Pakistan, Mr. Abdul Razak Dawood said that the Pharmaceutical exports from the country have gotten off to a good start this year, as in value terms, the exports have grown by 22.6% in the first quarter (Q1) to USD 68.1 million as compared to USD 55.6 million in the corresponding period last year.
Announcements
On the equity front, the Board of Directors of Fauji Fertilizer Bin Qasim proposed to invest Rs. 3.5 billion in Fauji Foods Limited through either, or a combination of, a subordinated shareholder loan or collateral support for a period not exceeding one year as security for working capital facilities extended or to be extended by financial institutions to FFL.
Next Capital withdrew its intention to acquire 77.12% control of BIPL Securities Ltd.
Fauji Fertilizer Company Limited (FFC), in Extraordinary General Meeting (EGM) held on November 06, 2020, approved investment in Fauji Fertilizer Bin Qasim Limited (FFBL) not exceeding Rs. 2,493,774,276 in total by way of subscription of 38.2335% right issue of shares (i.e. 38.2335 shares for every 100 shares held) at a premium of Rs. 4 per share i.e. Rs. 14 per share.
Financial Results:
Apart from this, several listed companies announced their financial results amid ongoing earnings season last week, some of which are as follows:
TRG Pakistan Limited reported net profits of Rs 816.4 million during 1QFY21, which is 46.5 times higher than the profits of Rs 17.5 million reported in the same quarter of last year.
Pakistan International Airlines Corporation Limited (PIA), unveiled a net loss of Rs 44 billion for nine months ended on September 30, 2020, down by around 5% YoY against net losses of Rs 46.69 billion reported in the corresponding period of last year.
Recently listed Agha Steel Industries Limited (ASIL) witnessed its net profits after tax surged by 60% YoY to Rs 509.37 million as opposed to the net profits of Rs 318 million reported in the same quarter last year.
Power Cement Limited disclosed its financial performance for 1QFY21, as per which the company reported net loss of Rs 170.7 million against the profits of Rs 7.9 million earned in the same quarter of last year.
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