March 28, 2021 (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, Dun & Bradstreet Pakistan and Gallup Pakistan issued a special press release on ‘Pakistan Consumer Confidence Index (CCI) for Q4 2020, as per which, 42% of Pakistanis believe unemployment will increase in Pakistan in the next 6 months.
On Thursday, the International Monetary Fund approved a 500-million-dollar disbursement to Pakistan for budgetary support after its Executive Board completed delayed reviews of Pakistan’s 6 billion dollar loan program.
In addition, the World Bank’s Board of Executive Directors approved $600 million on Thursday in financing from the International Development Association (IDA) for the Crisis-Resilient Social Protection Program (CRISP) that will support Pakistan to expand Ehsaas program, to protect vulnerable households and increase resilience to economic shocks such as the COVID-19 pandemic.
The Government on Thursday, revised its markup subsidy scheme of housing finance significantly to align with the prevailing housing market dynamics. The revised scheme is expected to make access to housing finance much easier for a large number of households who currently do not own a house.
Moreover, Pakistan hired a group of banks to arrange investor calls ahead of a triple-tranche U.S.dollar-denominated bond sale, a document showed on Thursday.
On Wednesday, the Central Development Working Party (CDWP) approved nine development projects with a cumulative cost of Rs 15.40 billion related to the health, food, and agriculture sectors.
The same day, the State Bank of Pakistan (SBP) issued its quarterly report – Islamic Banking Bulletin for the quarter ending December 31, 2020, in which SBP reported the highest growth in Islamic banking assets and deposits since 2015.
On the Gas front, Pakistan invited bids from foreign suppliers to help the country to bring eight LNG cargoes for the period April to June aimed to meet the energy shortfall and curtail load shedding.
In addition to this, Pakistan State Oil Company Limited (PSO), the country's state-run retail oil supplier, also invited bids for two liquefied natural gas (LNG) cargoes for the month of May to curtail load shedding during the start of the summer season.
Furthermore, VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announced that it has successfully concluded the acquisition of the 15% minority stake in PMCL, the operating company of Pakistan’s leading mobile operator, Jazz, from the Dhabi Group for USD 273 million.
On the electricity front, the Central Power Purchasing Agency (CPPA) proposed an increase of Rs 0.6573/kWh over the reference fuel charges of Rs 4.1414/kWh under fuel price adjustment for the month of February 2021 for Ex-WAPDA Discos.
On the upside, Habib Bank Limited (HBL) became the first Pakistani bank to open a branch in Beijing, China. On its official Twitter account, HBL announced that the bank has created history by being the first and only bank from Pakistan to have a branch in Beijing and one of the three banks from South Asia and the MENA region to offer end-to-end RMB intermediation in China.
Announcements
On the equity front, Maple Leaf Cement Factory Limited signed a contract on March 22, 2021, with plant supplier, Chengdu Design & Research Institute of Building Materials Industry Co., Ltd, China for the supply of equipment and engineering for a dry process clinker production line-4 of 7,000 metric tons per day grey clinker, through a brownfield expansion project.
The Board of Directors of Siddiqsons Tin Plate Limited decided to increase the authorized capital of the company from Rs3 billion to Rs6 billion.
Avanceon FZE–Dubai, UAE, a wholly-owned subsidiary of Avanceon Limited incorporated a new wholly-owned subsidiary in Riyadh, Kingdom of Saudi Arabia, with the name and style of “Avanceon Saudi for Energy Co.”
In addition, Avanceon Limited signed a new three-year licensee agreement with Dover Fueling Solutions (“DFS”), a part of Dover Corporation.
Hi-Tech Lubricants Ltd (HTL) and Regal Automobile Industries Ltd. (RAIL) entered into an agreement on January 18, 2021, for the Sale, Supply & Branding of ZIC Brand Lubricants.
Also, Hi-Tech Lubricants Limited (HTL) and Osman Ghani Ltd. (an Afghanistan-based company) (OGL) entered into a Non-Exclusive Distribution Agreement on March 24, 2021, for the export of locally blended ZIC Brand products.
GAZPAK Pvt Limited submitted a Public Announcement of Intention (PAI) to acquire more than 51% of the issued and Paid-up Share Capital of Landmark Spinning Industries Limited together with management control.
The Board of Directors of Summit Bank Limited approved the appointment of Mr. Jawad Majid Khan as the President and Chief Executive Officer (Regular) of the Bank in place of Mr. Ahsan Raza Durrani with immediate effect for a term of three (3) years.
Financial Results
Apart from this, several listed companies announced their financial results amid the ongoing earnings season last week, some of which are as follows:
Pakistan Suzuki Motor Company Limited (PSMC)’s net losses after tax shrank by 46% YoY to Rs1.589 billion compared to Rs 2.29 billion in CY19.
Hascol Petroleum Limited (HASCOL)’s net losses during 9MCY20, amplified by 46% YoY to clock in at Rs.20.9 billion compared to Rs.14.35 billion incurred in the same period last year.
Highnoon Laboratories Limited (HINOON) reported net profits of Rs.1.47 billion for CY20 which was 47% higher than the profits of Rs.1 billion reported in CY19.
Fatima Fertilizer Company Limited (FATIMA) wrapped CY20 with a meager 10% YoY increase in net profits to Rs.13.27 billion (EPS: Rs.5.75/sh), compared to the profits of Rs.12 billion (EPS: 5.75/sh) reported in CY19.
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