August 8, 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.

• The Securities and Exchange Commission of Pakistan (SECP) registered 1,949 new companies in July 2021, raising the total number of registered companies to 147,842. SECP has also asked companies to submit information of their ultimate beneficial owners (UBOs) through filing of Form 45, required under Section 123A of the Companies Act, 2017.
• On the same day, the State Bank of Pakistan (SBP) notified changes in Foreign Exchange Manual for local and foreign companies operating in Pakistan. Moreover, SBP has imposed a monetary penalty of Rs525 million on eight banks that violated SBP’s rules and regulations during the quarter ended June 30, 2021.
• In addition, Governor State Bank of Pakistan, Dr. Reza Baqir, announced two new initiatives at the 5th Stakeholders meeting on Digital Financial Services to facilitate the introduction of digital financial products and services by financial institutions to benefit all segments of society.
• In order to enhance trade and economic cooperation for the mutual benefits, President Dr. Arif Alvi emphasized the need to boost bilateral relations between Norway and Pakistan.
• The Asian Development Bank (ADB) approved a $500mn loan to help the Government of Pakistan procure and deploy safe and effective coronavirus disease (COVID-19) vaccines.
• On the energy side, the National Electric Regulatory Authority (NEPRA) approved a reduction of 19 paisa in power tariff for June under monthly fuel cost adjustment (FCA) mechanism.
• Roshan Digital Accounts (RDA) reached $1.87 billion within 11 months since its launch.
• International Monetary Fund (IMF) appreciated the initiatives taken by government's initiatives for the youth of the country.
• Indus River System Authority (IRSA) on Thursday released 339800 cusecs water with inflow of 430687 cusecs. On the previous day, the same has released 354875 cusecs water from various rim stations with inflow of 474398 cusecs.
• The Fed­eral Board of Revenue (FBR) issued a notification for the imposition of withholding tax on online markets that shall be effective from September 1, 2021. Meanwhile, FBR has also notified draft Rules for new Export Facilitation Scheme 2021 which will be effective with effect from 14th August 2021.
• On the positive side, FBR witnessed a significant increase of 30% in the number of active taxpayers as per the Active Taxpayer List (ATL).
• Highlighting the need for investment in Karachi's power sector for the continued growth of the city, K-Electric (KE) shared that the utility had submitted a revised investment plan of around Rs440bn for the tariff control period of 2017- 2023.
• The World Bank appreciated Pakistan’s efforts to curtail the Covid-19 pandemic through a smart lockdown approach and addressing the socio-economic challenges through a fiscal stimulus package. The banks also assured its cooperation to boost its climate resilience against devastating impacts of climate change.
• The Pakistan Credit Rating Agency Limited (PACRA) maintained ratings of Fauji Fertilizer Company Limited (FFC) at ‘AA+’ for the long term and ‘A1+’ for the short term with a stable outlook.
• With regards to CPEC, Prime Minister Imran Khan appointed Khalid Mansoor as his Special Assistant on CPEC Affairs.
• The Oil and Gas Regulatory Authority (OGRA) withdrawn a notification of August 2, 2021, that showed Pakistan State Oil (PSO) has made the costliest purchase of liquefied natural gas (LNG) cargo at $20.055.
• On the upside, more than half of Chinese enterprises listed Fortune 500 invested or conducted business cooperation in Pakistan.
• During the same week, Board of Investment organized its first ever Khuli E-Kachehry.
• National Accountability Bureau (NAB) recovered Rs502bn from corrupt elements during 2018 to 2020, which is a record achievement as compared to other years.
• The Pakistan Water and Power Development Authority (WAPDA) achieved yet another major milestone towards the completion of the river diversion system of the Mohmand Dam Project, as two portions of Diversion Tunnel 2 of the project have been connected with precision.
• GIZ Pakistan and the Ministry of Energy (MoE), Power Division signed an Implementation Agreement of ‘Promotion of Renewable Energy and Energy Efficiency Concepts in Cities and Industry’ (REEE SCALE) – EUR 4 million Project.

Announcements:

• Hallmark Company Limited received a notice of submission of the proposed Offer Letter by the company from Muhammad Munir Muhammad Ahmed Khanani Securities Limited, on behalf of Acquirers to acquire 82,890 shares and control of Hallmark Company Limited (“Target Company”).
• The Security and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) have approved the listing application of Octopus Digital Limited.
• Kot Addu Power Company Limited (KAPCO) informed that actions for the withdrawal of the LDs Arbitration before the International Chamber of Commerce (ICC) in Singapore have been completed.
• The Board of Directors (BoD) of Hascol Petroleum Limited (HASCOL) informed that the company has lifted its stay order restraining the SECP's investigation regarding its 2019 financial disclosures, and is cooperating with the SECP in this regard.
• Attock Refinery Limited (ATRL) has re-appointed Mr. M. Adil Khattak as Chief Executive Officer (CEO) of the company, with effect from July 18, 2021 for the period ending on December 31, 2021.
• ICI Pakistan Limited (ICI) successfully completed the acquisition of 55,013 ordinary shares (equivalent to 11% shareholding) of NutriCo Pakistan (Private) Limited.
• Balochistan Glass Limited (BGL) announced that the company is successfully managing the commercial production of tableware glass from its newly refurbished second Furnace at Unit-III.
• The Searle Company Limited (SEARLE) has entered into an agreement with Reckitt Benckiser Pakistan (Pvt.) Limited to manufacture certain products on their behalf.
• The Board of Directors of Ghani Global Holdings Limited (GGL) decided to increase the authorized share capital of the company from Rs3bn to Rs4bn, subject to approval by shareholders of the Company.
• Al-Shaheer Corporation announced that the company has commenced its commercial production of its Primary Processing Unit of frozen food facility located at Raiwand Lahore from July 31, 2021.

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: 

• Engro Powergen Qadirpur Limited (EPQL) revealed its financial results for the half year ended on June 30, 2021 as per which the company reported a notable decline in profit by 31% to clocked in at Rs905million.
• ICI Pakistan Limited (ICI) reported net profits of a Rs5.24billion for the year ended June 30, 2021.
• Bank Al Habib Limited (BAHL) posted profit worth Rs9.14billion for 1HCY21 depicting a notable growth of 26%YoY.
• Arif Habib Limited (AHL) disclosed its financial results for the year ended June 30, 2021, where it reported a profit of Rs2.084bn.
• Exide Pakistan Limited (EXIDE) has unveiled its financial statement for the first quarter ended on June 30, 2021 as per which the company witnessed a turnaround in earnings and reported a profit of Rs25 mn.
• Panther Tyres Limited (Panther) posted profits worth Rs851mn for the year ended June 30, 2021, showing a robust growth of 3.4x YoY.

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