August 1, 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.
- On Friday, government of Sindh decided to impose strict lockdown in Karachi till August 8, 2021, considering the ongoing situation of Covid-19 in Sindh.
- Cognizant of the increased gas consumption especially during the winter season, the government decided to execute a project by allocating funds amounting to Rs40 million under the Public Sector Development Programme (PSDP) 2021-22.
- On the same day, Google announced a total commitment of $7.5mn in new grant funding and other support to help alleviate the current pandemic crisis.
- On the upside, all major Chambers of Commerce of Pakistan expressed full confidence in the Government's business-friendly policies and measures taken for EODB.
- During the departed week, the Asian Development Bank’s (ADB) Trade and Supply Chain Finance Programme (TSCFP) signed an agreement with Dubai Islamic Bank Pakistan Limited (DIBPL) to support trade in Pakistan.
- Meanwhile, World Bank’s Board of Executive Directors approved $100mn in financing to support Pakistan’s efforts to increase literacy and student retention rates in the Sindh province.
- On the energy side, the government purchased four liquefied natural gas (LNG) cargoes for September delivery at the highest-ever rates at more than $15 per mn British thermal units.
- During the week, Pakistan’s government requested Iran to normalize power supply in Gwadar, Turban and Makraan regions.
- The Oil and Gas Development Company Limited (OGDCL), being operator of Wali Exploration License with 100% working interest made a gas and condensate discovery over Kawagarh Formation from its exploratory efforts.
- To strengthen its bilateral ties, government is focused on greater economic, trade and investment cooperation with Bahrain.
- Furthermore, the Economic Coordination Committee has re-validated Rs352 billion for meeting COVID-related expenditures.
- On the positive side, the International Monetary Fund (IMF) recognized Pakistan’s robust economic activity and maintained the global growth forecast largely unchanged at 6% for the current year and 4.9% for the next year.
- During the same week, Pakistan and Saudi Arabia underscored the need to broaden spectrum of bilateral relations in all areas of mutual interests.
- The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) in its meeting held on July 27, 2021 in Karachi, decided to maintain the Policy Rate at 7 percent.
- Pakistan’s IT sector achieved another milestone in the outgoing financial year as it crossed the $2 billion export mark for the first time in Pakistan’s history.
- Zi Solar Pvt. Ltd. entered into an exclusive partnership with Aeonus Co. Ltd. for the deployment of Korean-manufactured Electric Vehicles (EV) charging and storage equipment in Pakistan.
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:
- Atlas Honda Limited (ATLH) revealed its financial results for the period ended June 30, 2021, and posted the profit worth Rs1.3bn during 4QFY21.
- Fauji Fertilizer Company Limited (FFC) reported net profits of Rs11.56bn (EPS: Rs9.09), depicting an increase of 18.2% YoY.
- Fauji Fertilizer Bin Qasim (FFBL) announced earnings for the half year ended on June 30, 2021, wherein the company posted the profit worth Rs1.88bn.
- Engro Fertilizer Limited (EFERT) posted a 2.35x increase in net profits to Rs10.5bn (EPS: Rs7.87) for the half-year ended on June 30, 2021.
- Habib Bank Limited (HBL) disclosed its financial results for 1HCY21 as per which, the bank has posted its consolidated net profits of Rs18.03bn.
- Honda Atlas Cars Ltd. (HCAR) witnessed a net profit of Rs928mn (EPS: Rs 6.50) during 1QMY22.
- Fauji Foods Limited (FFL) incurred losses of Rs758bn (LPS: 0.94) as per its financial statement for the period of six months ended on June 30, 2021.
Announcements:
- On the equity front, the Board of Directors of JS Investments Limited approved the merger of JS Value Fund (the merging scheme) with and into JS Growth Fund.
- After securing requisite approvals, AGP Limited (AGP) along with its parent company Aitkenstuart Pakistan (Pvt) Ltd (Aitken), through a Special Purpose Vehicle —OBS AGP (Pvt) Ltd, successfully acquired a portfolio of 22 pharmaceutical brands (brands) from Sandoz AG.
- Avanceon FZE secured a high-value contract to deploy a state-of-the-art building fire alarm protection system.
- During the departed week, Telecard Limited informed PSX that it is now a Shariah Compliant Company based on the Shariah Compliance Screening conducted by Al-Hilal Shariah Advisors (Pvt.) Limited.
- The shareholders of Fauji Foods Limited (FFL) resolved that the authorized share capital of the Company be increased from Rs10bn to Rs18bn.
- The Board of Directors of Askari Bank Limited (AKBL) decided to appoint Mr. Atif R. Bokhari, as President & CEO of Askari Bank Limited for a term of three years.
- The shareholders of Fauji Fertilizer Company Limited (FFC) approved acquisition of 100% shareholding of Foundation Wind Energy-I Limited (FWEL-I) and 80% shareholding of FWEL-II.
- The Securities and Exchange Commission of Pakistan (SECP) approved the issue of 183,590,293 Modaraba Certificates of the First Treet Manufacturing Modaraba (FTMM) to Treet Corporation Limited.
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Posted on: 2021-08-01T19:09:00+05:00
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