July 4, 2021 (MLN): The highlights of the important economic and business events that took place during the last week are in order to become acquainted with the recent developments in Pakistan’s economic and public policy.

• Departed week witnessed the imposition of a flat withholding tax of 15% by the government on profits from saving certificates for filers while non-filers have to pay 30% on their profits from NSS certificates.
• The Securities and Exchange Commission of Pakistan (SECP) approved amendments to the National Clearing Company Pakistan Limited (NCCPL) Regulations 2015 to introduce reforms in Margin Financing (MF). SECP also introduced its WhatsApp Channel for Business Care to promptly respond to public queries regarding the incorporation of companies.
• In line with SBP’s commitment to transparency in its key policy measures, SBP decided to release regular data on the progress of the Roshan Digital Account (RDA). Moreover, SBP also notified revisions in foreign exchange regulations for the export of goods from Pakistan.
• During the last week, (SBP) appointed 13 financial institutions as Primary Dealers (PDs) for government securities (PIB & MTB) including Industrial and Commercial Bank of China-Pakistan (ICBC) as a new entrant to the list for the fiscal year 2021-2022.
• On the upside, Exports of Goods during FY21 reached $25.3billion while the cement sector alone posted a growth of 12.73 % YoY in June 2021.
• To make Pakistan a net exporter of food, the government is all set to provide the required funds.
• The government of Pakistan signed new agreements worth $8,276million with various development partners, SAFE deposits, and foreign commercial banks during FY21.
• Pakistan's yearly inflation Rate in June 2021 clocked in at 9.70% compared to 10.87% in May’21 and 8.59% in June’20.
• In another significant development, the Federal Board of Revenue achieved a historic level of tax revenues of Rs4,732bn during FY21.
• Meanwhile, (FBR)  announced a reduction in sales tax of some petroleum products to ensure supply at lower rates.
• Sindh Revenue Board collected Rs128bn, showing an increase of 21% when compared to Rs106bn collected last year.
• During the departed week, Pakistan received 2.5 million doses of the Moderna COVID-19 vaccine donated by the United States.
• VIS Credit Rating Company Limited upgraded the entity ratings of Meezan Bank Limited (‘MEBL’) to ‘AAA/A-1+’ (Triple A/ A-One Plus) from ‘AA+/A-1+’ (Double A Plus/ A-One Plus).
• To achieve the aim of self-sufficiency in the energy sector,  the Petroleum Division (PD) is all set to execute six new projects at a cost of Rs1,775.857mn during FY22.
• Given the rising oil prices in the international market, the government has decided to increase the existing prices of petroleum products.
• Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) planned to give 524,000 new connections during FY22 in their respective operational areas.
• To promote the LPG sector,  the oil and Gas Regulatory Authority (OGRA) issued around 36 licenses during nine months.
• On  Tuesday, the Indus River System Authority (IRSA) released 254,600 cusecs water with an inflow of 228,800, and on Monday, it released 256,700 cusecs water with an inflow of 223,700 cusecs from various rim stations.
• On Wednesday, the Ministry of Commerce announced that the Rs8bn under Drawback of Local Taxes and Levies (DLTL) schemes will be transferred starting from 2nd July 2021.
• The departed week also witnessed that Bestway Cement and Reon Energy Limited energized a 14.3 MW captive Solar Power Project at Farooqia, Khyber Pakhtunkhwa.
• The National Assembly passed the Finance Bill 2021 in order to give legal effect to the budgetary proposals for FY22.
• The World Bank’s Board of Executive Directors approved $800 million in financing for two programs in Pakistan.
• To provide financing for the import of essential commodities, the International Islamic Trade Finance Corporation (ITFC) signed a 3-Year Framework Agreement with the Government of Pakistan.
• Last week, Pakistan Telecommunication Company Limited (PTCL) signed strategic contracts with Huawei Technologies Pakistan for the transformation of its IP Edge and Optical Transport Network (OTN).
• The Economic Coordination Committee (ECC) approved the import of 100,000 metric tons of Sugar.
• The Pakistan Credit Rating Agency Limited (PACRA) maintained ratings of Allied Bank Limited (ABL).
• The Ministry of Economic Affairs and the World Bank have signed a financing agreement of “Punjab Rural Sustainable Water Supply and Sanitation Project” worth $442.4mn.
• On the positive front, Pakistan and Uzbekistan agreed to promote their bilateral cooperation in all areas of mutual interest including trade, economy, and culture.
• To exploit the potential of the Blue Economy, Pakistan National Shipping Corporation (PNSC) is planning to start Ferry Services in the country.
• Roshan Digital Account achieved more milestones as the inflows crossed $1.5billion and investment in Naya Pakistan Certificates is surpassing one billion dollars.

Announcements:

• On the equity front, Sazgar Engineering Works Limited has been awarded “Category -A, Greenfield Investment status” by the Ministry of Industries & Production of Pakistan.
• TRG Pakistan announced that the Resource Group International Limited (TRGIL) has completed the sale of all its economic interest in its subsidiary Etelequote Limited as per the terms and conditions.
• TPL Insurance Limited (TPLI) announced that Finnish Fund for Industrial Cooperation Limited has entered into a Letter of Intent (LOI), with TPL Insurance Limited.
• Last week, WorldCall Telecom Limited ‘WTL” entered into close commercial cooperation with World Mobile Group “WMG”.
• Ghani Value Glass Limited successfully started commercial production from the Spectrum and chamber Lines.
• Dynea Pakistan Limited (DYNO) announced that the actual production capacity has increased from 24,000 to 33,000 metric tons per annum.
• Hubco appointed Kamran Kamal as its new CEO.
• The Board of Directors of Fauji Foods Limited (FFL) recommended an increase in the authorized share capital of the Company.
• The Board of Directors of Hascol Petroleum Limited approved the sale of plot bearing No. B-26 & B-27, measuring 8.7 acres, situated at North-Western Industrial Zone, Port Qasim Authority Bin Qasim, Karachi.
• Loads Limited clarified that the company is not aware of any reasons which may have led to an increase in price and volume of the company’s share.
• The Board of Directors of Pakistan Stock Exchange (PSX) resolved to form a wholly-owned subsidiary of PSX for the demerger of its real estate from its operations.
• The Board of Directors of Colony Textile Mills Limited approved an equity investment of up to Rs99mn in its wholly-owned subsidiary “Stitchrite (Private) Limited”.
• The Board of Directors of Mian Textile Industries Limited approved an investment of Rs13.50mn in Trukkr (Private) Limited for the purchase of 5% equity of its total paid-up share capital.
• The Board of Directors of Fauji Fertilizer Bin Qasim Limited (FFBL) authorized the company to sell and transfer the company’s entire shareholding in Foundation Wind Energy-I Limited (FWEL-I), and Foundation Wind Energy – Il Limited (FWEL-II) to Fauji Fertilizer Company Limited (FFC).
• The shareholders of The Searle Company Ltd (SEARL) authorized the company to disinvest/sell 100% of the issued and paid-up share capital of IBL Identity (Private) Limited to Universal Ventures (Private) Limited.
• Competition Commission of Pakistan (CCP) has given pre-merger clearance/approval to Treet Corporation Limited for the sale of Global Arts Limited's 100% shareholding.
• The Board of Directors of Sunrays Textile Mills Limited decided to invest surplus funds available with the company by the acquisition of 173,500 Ordinary shares of an associated company EMBEE Industries Pvt Limited.
• The Board of Directors of BIPL Securities Limited approved the transfer of 77.12% share capital to AKD Securities Limited.
• The board of directors of Ghani Global Glass Limited (GGGL) approved the MoU signed by the Company with a Serbian company to set up the plant in Serbia.
• The members of Suraj Cotton Mills Limited (SURC) authorized the company to make a further long-term equity investment.
• The shareholders of Saif Power Limited (SPWL) approved the sale of assets of Saif Cement Limited.
• Octopus Digital Limited has been contracted by one of the largest tea manufacturers to ensure overall equipment efficiency (OEE) on two of its plants.

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