April 18, 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.

• Prime Minister Imran Khan, on Friday reshuffled his cabinet changing the portfolios of his government’s key ministers and appointed Shaukat Fayaz Tareen as a new Minister for Finance and Revenue.
• The State Bank of Pakistan (SBP) conducted an Open Market Operation on Friday in which it injected Rs1,975.05billion into the market for 7 Days.
• The Prime Minister approved a reduction in petrol prices by Rs1.79 and the price of diesel by Rs2.32, applicable from April 16, 2021.
• On the textile sector front, All Pakistan Textile Manufacturing Association (APTMA) Chief warned that any distortion in the policy of Free-market Mechanism from cotton to Garment in the textile supply chain will be a disaster for the Textile Exports of Pakistan.
• On the energy side, the Cabinet Committee on Energy (CCoE) approved the proposal for the Extension Time of Use (TOU) Tariff Scheme for Industrial Consumers from May 1, 2021, to June 30, 2022. The package was originally approved in November 2020 and was set to expire on 30 April 2021.
• As per New Special Drawing Rights (SDRs) allocation by International Monetary Fund (IMF), Pakistan can fetch benefit of up to $3bn.
• Ministry of Finance proposed Medium-Term Budget Strategy Paper for FY 2021-22 to FY 2023-24 which was approved by the federal cabinet on Tuesday.
• On Wednesday, the Economic Coordination Committee of the Cabinet (ECC) withdrawn customs duty on import of cotton yarns to facilitate the Value-Added exporters.
• Governor State Bank of Pakistan stated important measures for deepening debt and capital markets at Gong Ceremony.
• All Pakistan Textile Manufacturing Association (APTMA) refuted arguments regarding cotton yarn availability.
• Pakistan and International Monetary Fund (IMF) discussed the way forward for vital economic reforms and external financing needed to build a better future for the people of Pakistan.
• Prime Minister Imran Khan through his official Twitter handle said that the Pakistan Single Window (PSW) Act 2021 will bring about $500 million annual savings & reduce cargo clearance time from days to hours.
• On Monday, Germany expressed intent to increase investment in Pakistan’s diverse sectors and boost trade relations.

Announcements:

• On the equity front, the Board of Directors of Fauji Fertilizer Bin Qasim Limited (FFBL) authorized the company to generate, supply electric power (@60 Hz) to a third party and to enter into negotiations to finalize and enter into a lease deed to sublease a portion of surplus land, located in the eastern zone of Port Qasim.
• Mughal Iron and Steel Industries Limited issued its quarterly project progress report in respect of Power Plant Project and BMR of Bar Re-rolling, being financed partly or fully by Right Issue, for the quarter ended March 31, 2021.
• MCB Bank Limited decided to voluntarily wind up Financial Management and Services subject to compliance with all applicable legal requirements by the Company.
• The Executive Management of Hi-Tech Lubricants Limited (HTL) decided to enter new business opportunities in the plastic packaging industry by venturing into the production of plastic products for external customers and third parties.
• The Shareholders of Ismail Industries Limited approved, in their Annual General Meeting held on April 12, 2021, the investment in the recently incorporated associated/ subsidiary company Ismail Resin (Private) Limited, which has the intention of setting up a Polyester Resin (PET Resin) Manufacturing Plant.
• In order to gain more visibility in the market, the Board of Directors of Dandot Cement Company Limited, in its meeting held on April 12, 2021, decided to recommend an increase of authorized share capital of the Company.
• Pakistan Petroleum Limited (PPL) received a pay order from the National Accountability Bureau (NAB) against long outstanding receivables of the Company from Byco Petroleum Pakistan Limited (Byco).
• Pakistan Refinery Limited (PRL) clarified that no decision had made as yet to buy a second-hand refinery complex.
• The Board of Directors of Ghandhara Industries Limited appointed Mr. Ali Kuli Khan Khattak as Chairman of the Board and Mr. Ahmad Kuli Khan Khattak as Chief Executive Officer of the Company for a term of three years commencing from April 10, 2021.

Financial Results:

• Engro Powergen Qadirpur Limited (EPQL) unveiled its financial results for the first quarter ended March 31, 2021.  As per results, the company posted net profits of Rs399mn, depicting the colossal decrease of 55% YoY when compared to net profits of Rs895mn in the same period last year.
• Kohat Cement Company Limited (KOHC) witnessed a turnaround in net profits to Rs2.53bn (EPS: Rs12.60) for the nine months ended on March 31, 2021 compared to the net losses of Rs283 mn (LPS: Rs1.41) incurred in the same period last year.
• Pakistan Telecommunication Company Ltd (PTCL) announced its Financial Results for the quarter ended March 31, 2021, as per which the company witnessed a turnaround in profitability.

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