May 2, 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 and State Bank of Pakistan (SBP) Governor Dr. Reza Baqir announced the launch of Roshan Apni Car initiative which aims to allow non-resident Pakistanis (NRPs) to purchase vehicles in Pakistan through their Roshan Digital Accounts (RDAs).
- The European Parliament called upon the Commission and the European External Action Service (EEAS) to immediately review Pakistan’s eligibility for GSP+ status citing harassment of religious minorities in the country under the blasphemy laws.
- Morgan Stanley Capital International (MSCI) is slated to announce the results of Semi-Annual Index Review on May 11, 2021 wherein no addition or deletion of stocks is expected from the Pakistan’s MSCI Main Index.
- On Thursday, Chief Economist Ministry of Planning Development & Special Initiatives Dr. Muhammad Ahmad chaired a Round Table Discussion on Migration Data Management Practices for SDGs achievement in Pakistan.
- On the trade front, the first containerised shipment by truck from Karachi under the TIR Rules cleared Torkhum border to reach Uzbekistan.
- The federal government decided to discontinue Rs7,500 and Rs15,000 denomination prize bonds in order to address concerns raised by Financial Action Task Force (FATF).
- On the market front, the State Bank of Pakistan (SBP) conducted an Open Market Operation on Friday in which it injected Rs1,622.80billion into the market for 7 Days.
- In order to provide smooth services for easing imports and exports, Finance Minister Shaukat Tarin called for all-out effort to complete Pakistan Single Window project.
- On the ICT front, Federal Minister for Finance and Revenue, Mr. Shaukat Tarin, directed to expedite sale process for Next Generation Mobile Services (NGMS) Spectrum.
- Prime Minister Imran Khan underlined the need for further enhancing foreign remittances by tapping the immense potential of overseas Pakistanis.
- On Wednesday, The National Electric Power Regulatory Authority (Nepra) approved a reduction of up to Rs0.68 per unit in tariffs of Distribution Companies (Discos) on account of fuel charges adjustment for the month of March 2021.
- Pakistan and Saudi Arabia reaffirmed to further strengthen bilateral socio-economic, commercial, cultural and diplomatic relations.
- The Economic Coordination Committee (ECC) of the Cabinet approved the Power Division regarding the releases of subsidy for the supply of 100 per cent RLNG to export-oriented industry for the month of March 2021.
- On the energy side, Energy relief package lifted industrial Power consumption by 15% in March, 2021.
- On the commercial front, the Federal Ministry of Commerce (MoC) and Civil Aviation Authority (CAA) agreed to install a state-of-the-art high capacity scanner at Karachi Airport for examination of the export consignments of fruits, vegetables and other perishable food items.
- Minister for Energy Hammad Azhar said that Pakistan possesses a conducive environment for setting up a new oil refinery. He expressed these views in a meeting with the Ambassador of Saudi Arabia Nawaf bin Saeed Al-Maliki.
- A complete supply and demand analysis was conducted by National Command and Operation Centre (NCOC) in order to ensure uninterrupted supply of oxygen to hospitals amid spiking Covid-19 disease spread.
- The Government of Pakistan and the Government of Japan signed debt suspension agreements amounting to $367million under the G-20 Debt Service Suspension Initiative (Phase-I).
- Pakistan Stock Exchange (PSX) held Gong Ceremony on listing of Service Global Footwear Limited.
- The Security Exchange Commission of Pakistan (SECP) instituted various reforms to develop a comprehensive and coherent industry policy to share regulatory thinking and promote a conducive FinTech environment in Pakistan.
- The Managing Committee of Rice Exporters Association of Pakistan (REAP) decided to announce a reward of Rupees 10 million for a breeder/scientist who develops high yielding basmati rice seed.
- Global rating agency Fitch projected that Pakistan’s GDP growth will rebound to 2.3% during the current fiscal year.
- At a Central Development Working Party (CDWP) meeting presided over by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, cleared a development project with estimated cost of Rs5bn & and recommended one project worth Rs191.47bn to the Executive Committee of the National Economic Council (ECNEC) for further consideration.
- The Overseas Investors Chamber of Commerce and Industry (OICCI) urged for effective Intellectual Property Regime to boost foreign direct investment (FDI) and employment in Pakistan.
Announcements:
- On the equity front, The Board of Directors of Telecard Limited, authorized the Company to explore the option for listing of its subsidiary Supernet Limited.
- Interloop Limited (ILP) formulated its Vision 2025 and accordingly the board approved the ‘Vision 2025 statement’ which will allow the company to double its sales by FY2025-26.
- On the upside, The Organic Meat Company Limited (TOMC) exported its first sample shipment of offals to be used in pet foods to the US market.
- Maple Leaf Cement Factory (MLCF) obtained a Letter of Credit (LC) for the import of equipment and engineering to enhance grey clinker production capacity.
- The Board of Directors of ICI Pakistan Limited approved the merger/amalgamation of NutriCo Pakistan with and into NutriCo Morinaga (Private) Limited.
- The Board of Directors of Dynea Pakistan Limited approved Debottlenecking Project. This Project resultantly will increase the existing production capacity of the plants.
- The Board of Directors of Packages Limited approved the formation of a wholly-owned local subsidiary, which will be engaged in the business of manufacturing and distributing corn-based starch and its directive products.
Financial results:
Apart from this, amid ongoing earnings season, several listed companies revealed their financial results for the 9MFY21 ended March, 31 this week, some of the important ones are highlighted below:
- Hub Power Company Limited (HUBC) posted net profits of Rs25.71billion, depicting a growth of 36% as compared to the net profit of the same period last year (SPLY).
- Nishat Chunian Power Limited (NCPL) witnessed a decline of 39.3% YoY in net profits to Rs2.06bn.
- Pakistan Petroleum Limited (PPL) declared a marginal decline in net profits during the period from Rs38.59bn to Rs38bn.
- Pakistan State Oil (PSO) continued to outperform the energy market earning a profit after tax of Rs18.2bn.
- Cherat Cement Company Limited (CHCC) witnessed a turnaround in profitability as its net profits clocked in at Rs2.22bn.
- Indus Motor Company Limited (INDU) posted a 68.8% YoY increase in net profits for 9MFY21 to Rs8.4bn.
- Unilever Pakistan Foods Limited (UPFL) reported a whopping growth of 76% YoY in its net profits to stand at at Rs1.45bn as compared to the SPLY.
- Bank Al Habib Limited exhibited a 63% YoY jump in net profit to Rs4.63bn compared to the net profit of Rs2.84bn in the corresponding period last year.
- Searle Company Limited (SEARL) announced a net profit of Rs2.21bn during the period under review which is 26% higher than the net profits of the SPLY.
- Fatima Fertilizer Company Ltd (FATIMA) posted net profits of Rs3.77bn during 1QCY21 as opposed to the net profits of Rs2.46bn reported in the corresponding period last year.
- Fauji Fertilizer Company (FFC) reported a 40% YoY surge in net profits which stood at Rs6bn as compared to the profit of Rs4.28bn in the SPLY.
- Systems Limited witnessed 14.25% increase in net profits which stood at Rs526.81mn for the quarter ended March 31, 2021 compared to the SPLY.
- National Bank of Pakistan (NBP) witnessed robust growth as its net profit surged by around 90% YoY to clock in at Rs7.84bn against the net profits of Rs4.14bn reported in the SPLY.
- Lucky Cement Limited (LUCK) witnessed a surged in net profit during 9MFY21 by 3.9x YoY to Rs22.15bn compared to the profits of Rs5.68bn in the corresponding period last year.
- Fauji Fertilizer Company Limited (FFC) reported a net profit of Rs5.82bn during 1QCY21 which was 36% higher than the SPLY.
- Byco Petroleum Limited (BYCO) observed a remarkable turnaround as it posted net profit of Rs1.67bn during 9MFY21 against the net loss of Rs3.02bn.
- ICI Pakistan posted outstanding growth of 86.4% YoY in its consolidated net profits to stand at Rs4.32bn during 9MFY21, against the net profits of Rs2.32bn reported in the SPLY.
- Interloop Limited (ILP) witnessed more than two-fold (2.7x YoY) jump in net profits to Rs4.5bn during 9MFY21 compared to Rs1.66bn profit earned in the SPLY.
- Attock Cement Pakistan Limited (ACPL) observed a meager decline in net profits by 1.93% to Rs1.99billion during 9MFY21 compared to the SPLY.
- Oil and Gas Development Company Limited (OGDC) witnessed a decline in net profit by 20% YoY to Rs66bn during 9MFY21 against the profits of Rs83bn reported in the corresponding period last year.
- Pakistan Oil Fields reported net profits of Rs9.74bn, depicting a drop of 30% YoY against the net profits of Rs13.94bn reported in the SPLY.
- National Refinery Limited turned profitable during 9MFY21 as it posted net profit of Rs895mn against losses of Rs8.12bn SPLY.
- Attock Petroleum Limited (APL) posted net profits during 9MFY21 which clocked in at Rs3.7bn, up by 4.2x YoY compared to the SPLY.
- Packages Limited (PKGS) witnessed a turnaround in net profit which clocked in at Rs1.7bn during 1QCY21.
- Hi-Tech Lubricants (HTL) managed to post net profits of Rs508.02mn compared to the loss of Rs92.43mn in the SPLY.
- Fauji Fertilizer Bin Qasim Limited (FFBL) posted net profits of Rs1.22bn in the 1QCY21, against losses of Rs2.90bn in the SPLY.
- Bestway Cement Limited (BWCL) rolled back to profitability of Rs8.27bn during 9MFY21 against the net losses of loss of Rs19.93mn compared to the SPLY.
- D.G. Khan Cement Company Limited (DGKC) returned to profitability, as it earned net profits of Rs3.25bn during 9MFY21, compared to the net loss of Rs2bn incurred in the corresponding period last year.
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Posted on: 2021-05-02T16:21:00+05:00
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