December 20, 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, the Economic Affairs Division of Pakistan said that the media reports regarding 45% increase in foreign loans in 5-months period are completely incorrect and misleading.
On the import front, Adviser to the Prime Minister on Commerce, Textiles and Industry, Mr. Abdul Razzak Dawood on Friday announced that the Sri Lankan Government has taken back the increase in CESS on import of Kinnows and Mandarins.
On Thursday, The State Bank of Pakistan (SBP) conducted an auction in which it sold 5 year variable rental rate GOP Ijara Sukuk worth Rs.62.83 billion. Bids for the Fixed Rental Rate Sukuk were rejected.
On the upside, Pakistan and the UAE agreed to enhance cooperation in the agriculture sector. The understanding reached at a meeting between Foreign Minister Shah Mahmood Qureshi and UAE's Prime Minister Mohammed bin Rashid Al Maktoum in Dubai on Thursday.
Moreover, Minister for Industries and Production, Hamad Azhar said that foreign companies are taking interest in manufacturing of electric cars while foreign mobile-phone manufacturing companies are also taking keen interest in Pakistan.
In addition, Prime Minister Imran Khan directed to prepare a comprehensive strategy to take advantage of the interest being shown by the foreign investors in Ravi Urban Development and Bundal Island projects.
On the electricity front, the National Electric Power Regulatory Authority (NEPRA) on Thursday deferred hearing of a petition for a tariff increase of 0.5712 per unit for Ex- Wapda distribution companies (Discos) on an account of fuel charges for the month of October. While on monday, it increased Rs1.11 per unit in power tariff on account of fuel charges adjustment for the month of September 2020.
On the vaccine front, Special Assistant to Prime Minister on National Health Services Dr. Faisal Sultan Thursday said that the Covid-19 vaccine will be available in the country by the start of the next year 2021.
Furthermore, Parliamentary Secretary for Ministry of National Health Services, Regulation and Coordination, Nausheen Hamid said on Tuesday that the Ministry of Health has issued a permit to the private sector to purchase Covid-19 vaccine.
On Wednesday, Economic Coordination Committee (ECC) ratified the Electric Vehicle policy for 4 wheelers. It will prove instrumental in rationalizing costs of purchasing, manufacturing & promoting the use of electric vehicles in Pakistan.
Besides, Pakistan and Saudi Arabia expressed the commitment to strengthen bilateral cooperation in all areas of mutual interest. The resolve was expressed during a telephonic conversation between Prime Minister Imran Khan and Saudi Prince Sultan Bin Salman Bin Abdul Aziz Al Saud.
With regards to fuel prices, the government on Tuesday decided to increase the prices of MS Petrol by Rs. 3 per liter, from Rs.100.69 to Rs.103.69 per liter.
Moreover, the oil inquiry commission’s report on the petroleum shortage in June 2020 has recommended stern action against OGRA, Ministry of Energy, Petroleum Division (MoEPD) and Oil Marketing Companies (OMCs) as it said that the oil crunch of June was not an abrupt eruption. It was more of an evolutionary event.
Also, Government has reportedly decided to introduce a new regime for stockbrokers wherein all brokers will be required to give custody of client assets to a professional clearing member.
Furthermore, Pakistan was ranked at 154th position among 189 countries on U.N.'s 2020 Human Development Index's (HDI) annual rankings that are measured by combining indicators of health, education, and standards of living.
With regards to loan repayment, China agreed to immediately provide $1.5 billion financing line to Pakistan to help the country repay the $2 billion Saudi Arabia debt.
State Bank of Pakistan on Monday informed that Inward remittances from overseas Pakistani into Roshan Digital Account touched another daily high with inflows of $11.2 million on Dec 11, 2020.
Announcements
On the equity front, Pakistan Stock Exchange (PSX) held a Gong Ceremony to welcome the Bank of Punjab (BOP) on-board as a Market Maker for debt securities on PSX.
Pakistan Oilfields Limited (POL), operator of Pindori D&P Lease, apprised the Pakistan Stock Exchange regarding the tested hydrocarbons from its Development Well Pindori-10, located in district Rawalpindi, Punjab.
Invest Capital Bank Investment Limited (ICBIL) received an intention from Climate Global Control Trading L.L.C based in Dubai, to acquire 158,448,250 (55.62%) shares of the company along with management control.
Gillette Pakistan Limited, in its Extraordinary general meeting, held on December 17, 2020, has resolved that the authorized capital of the company be increased from Rs. 200 million divided into 20 million ordinary shares of Rs. 10 each to Rs. 400 million divided into 40 million ordinary shares of Rs. 10 each.
Pakistan State Oil (PSO) signed a Fuel Supply Agreement with AirSial, wherein it will meet the latter’s entire Jet fuel requirement.
The shareholders of Nishat Mills Limited (NML) in their extraordinary general meeting, held on Dec 15, 2020, resolved that the Company be and is hereby authorized to provide sponsors' support to Nishat Sutas Dairy Limited (“NSDL”), an associated company by way of Corporate Guarantee for an amount of up to PKR 2.25 billion for a tenure of 11 years starting from the date of issue of Corporate Guarantee.
The Bank of Punjab (BOP) and Pakistan Mortgage Refinance Company (PMRC) joined hands together for providing and promoting affordable housing finance in the country by signing a Credit Guarantee Agreement with Credit Guarantee Trust for Low Cost Housing, set up by the Government of Pakistan with PMRC as Trustee.
The Pakistan Stock Exchange notified the listing of the 5th Issue of Privately Placed, Rated and Secured Sukuk Certificates (PPSCs) of PKR 5,000 Million of the Hub Power Company Limited on the Exchange with effect from Tuesday, December 15, 2020.
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