Weekly News Roundup

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April 30, 2022 (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.

Events of Importance through the week:

• The government on Saturday has decided to keep the petrol prices unchanged for the next fortnightly.
• The Securities and Exchange Commission of Pakistan (SECP), in a bid to improve and ensure transparency in the process of capital formation has recommended a revamp of companies (Further Issue of Shares) Regulations, 2020.
• Large Taxpayers Office (LTO), Karachi has shown remarkable achievement by collecting Revenue of Rs1.26trillion in all taxes during 10MFY22.
• Water and Power Development Authority (WAPDA) has devised a comprehensive plan to increase hydel energy share from the existing 9,406MW to 20,591MW by 2028-29.
• Pakistan International Airlines (PIA) has inducted another Airbus-320 into its fleet that would help the national flag carrier in expanding flight operations and extending improved facilities to passengers.
• On Friday, the Minister of Religious Affairs and Interfaith Harmony informed that Hajj may cost Rs700,000 to Rs1 million this year due to an increase in the cost of services and taxes by the Saudi government.
• On the same day, the government has constituted the Economic Advisory Council (EAC) under the Chairmanship of Prime Minister Shehbaz Sharif comprising 21 members.
• The Central Development Working Party (CDWP) has cleared three development projects worth Rs15.7804 billion while recommending to the National Economic Council (ECNEC) for approval during its meeting held on Thursday..
• Continuing its focus on driving digital inclusion, Jazz invested Rs14.9bn under its ‘4G for all’ ambition during the first quarter of 2022, taking its overall investment in Pakistan to $10.2bn.
• The Securities and Exchange Commission of Pakistan (SECP) has published a position paper that shared experiences and learnings from its Regulatory Sandbox project for the benefit of potential participants of the third cohort of Sandbox.
• The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs108.94mn on four banks against violation of rules and regulations of various nature during the first quarter ended March 31, 2022.
• Meanwhile, the Ministry of Finance clarified that the news circulating on social media, giving an impression that the government has borrowed from the State Bank of Pakistan (SBP) is grossly incorrect while it depicts a limited understanding of the monetary variables.
• Pakistan Stock Exchange (PSX) has presented important proposals for the federal budget 2022-23 to address economic challenges, boost the national economy and grow the capital markets.
• Achieving yet another important milestone, FBR has launched Inland Revenue Strategic Reform Plan (2021-25) on Wednesday in a simple ceremony held at Islamabad.
• On the same day, Federal Minister for Finance and Revenue Mr Miftah Ismail underscored the need of accelerating the process of privatization of loss-making State-Owned Enterprises (SOEs).
• In line with SECP's continuous efforts for modernizing the corporate sector and making it more inclusive, SECP has published a concept note on “Asset Fractionalization”, which is now open for public comments.
• On the energy side, the National Electric Power Regulatory Authority (Nepra) notified an increase of Rs4.83 per unit in the electricity tariff for K-Electric (KE) consumers for the month of March 2022 under the fuel cost adjustment (FCA) mechanism.
• Meanwhile, Prime Minister Shehbaz Sharif on Tuesday, in a big move to facilitate the general public, announced an end to load-shedding of electricity across the country from May 1 and onwards.
• On the upside, the Oil Companies Advisory Council has reported that ample stocks of motor spirit and high-speed diesel are available in the country.
• In view of the increasing demand for diesel, PSO has arranged 05 additional high-speed diesel (HSD) cargoes from March to May 2022.
• During the outgoing week, the Fourth Construction Co. Ltd (FCC) of China National Chemical Engineering Group Corporation (CNCEC) signed an EPCF contract with Daewoo Gas to set up a new LNG terminal in Pakistan.
• Pakistan has sought an increase in the size and duration of its $6 billion International Monetary Fund (IMF) programme while the Pakistan side had agreed to roll back subsidies to the oil and power sectors ahead of the resumption next month of a review of the agency's support for the country.
• Based on the constructive discussions with the delegation led by Finance Minister Miftah Ismail in Washington, the IMF mission will visit Pakistan in May to resume discussions over policies for completing the 7th Extended Fund Facility (EFF) review.

Announcement:

• On the equity side, the Board of Directors (BoD) of Cnergyico Pk Limited (CNERGY) has authorized the company to explore the feasibility of a potential merger of its wholly-owned subsidiary i.e., Cnergyico Isomerate Pk (Private) Limited with and into the company.
• The BoD of System Limited (SYS) has authorized the company to consider and finalize terms for the expansion of the digital technology business through potential direct and indirect acquisitions of IT entities.
• During the departed week, Mari Petroleum Company Limited (MPCL) has been awarded new exploration blocks in the latest block bidding round conducted by the Directorate General of Petroleum Concession, Ministry of Energy (Petroleum Division), Government of Pakistan.
• On Thursday, IGI Holdings Limited (IGIHL) informed through a notice to exchange that its wholly-owned subsidiary, IGI Investments Limited will be acquiring a 5.87% of equity stake in Sanofi Pakistan.
• The BoD of ICI Pakistan Limited has approved a capital expenditure of up to $21 million for the installation of an additional coal-fired boiler (CFB) at its Soda Ash plant in Khewra.

Financial Results:

Apart from this, several listed companies announced their financial results for the period ended on March 31, 2022, amid the ongoing earnings season last week, some of which are as follows:

• With the robust growth in topline and other income, Systems Limited earned more than twofold higher net profits of Rs4.4bn during 9MFY22, compared to the profits of Rs2.2bn in the corresponding period last year.
• Aisha Steel Limited (ASL) has witnessed a massive 89% YoY decline in net profits for 9MFY22 that clocked in at Rs513.6mn mainly on the back of lower volumetric offtakes,
• Oil and Gas Development Company Limited (OGDC) has reported a robust increase in net profits during nine months of the current fiscal year as its profits jumped by 69% YoY to Rs112bn.
• Pakistan State Oil (PSO) managed to post a healthy financial statement for 9MFY22, as per which the bottom line expanded by 3.8x YoY to clock in at Rs71.2bn
• Packages Limited (PKGS) recorded a twofold surge YoY in its net profits to clock in at Rs3.84bn in 1QCY22.
• The profitability of Unity Foods Limited (UNITY) has declined by 37% to clock in at Rs1.80bn during 9MFY22.
• Lucky Cement Limited recorded net profits of Rs26.53bn in 9MFY22.
• During the same week, TRG Pakistan reported a net loss of Rs3.97bn in its financial results for the nine months ended on March 31, 2021, compared to the net profit of Rs5.13bn in the corresponding period last year ago.
• MCB Bank’s net profits stood at Rs9.1bn in 1QCY22.
• The bottom line of Fauji Fertilizer Company (FFC) expanded by a 43% YoY surge in net profits which stood at Rs8.5bn in 1QCY22.
• Pakistan Petroleum Limited (PPL) managed to post a profit worth Rs51.53bn 9MFY22.
• ICI Pakistan Limited has shown significant progress during 9MCY22 as it posted a profit after tax (PAT) of Rs8.17bn, 87% higher than the net profit of Rs4.36bn in the same period last year.
• Unilever Pakistan Foods Limited has posted a 25.69% YoY increase in net profits to Rs1.82bn for 1QCY22, compared to the profits of Rs1.45bn in the corresponding period last year.
• Interloop Limited has recorded profit-after-tax (PAT) of Rs6.99bn in 9MFY22, registering a growth of 52%, from Rs4.60bn earned in the corresponding period of the last fiscal year.
• The net profits of Bank Alfalah Limited (BAFL) clocked in at Rs5bn, 47.4% higher than the net profits of Rs3.44bn reported in the corresponding period last year.
• Kohat Cement (KOHC) has shown outstanding performance during 9MFY22 as its net profits after tax clocked in at Rs4.6bn, which is 83% times higher than profits earned in the same period last year.
• On the other hand, Pak Suzuki Motor Company Ltd. (PSMC) has suffered a net loss of Rs460.22mn in 1QCY22.
• Sui Southern Gas Company Limited (SSGC) has also incurred hefty losses worth Rs21.4bn in CY20.
• Fauji Cement Company Limited (FCCL) registered a 55.6% YoY jump in its nine-month profits that clocked in at Rs4.06bn.
• The automaker, Indus Motors Company Limited (INDU) reported net profits of Rs15.29bn during 9MFY22, up by a whopping 81.72% YoY against Rs8.42bn net profits in the same period last year.
• The net profits of Cherat Cement Limited (CHCC) have soared by 54.5% YoY to stand at Rs3.4bn in 9MFY22.
• Meezan Bank Limited (MEBL)’s profitability grew by 51% to stand at Rs9.24bn in 1QCY22 which translated into basic EPS of Rs5.65.
• Mari Petroleum Company Limited (MPCL)’s bottom line saw an increase of 17.57% YoY, to Rs27.49bn in 9MFY22.
• DG Khan Cement Company (DGKC), has posted consolidated net profits of Rs3.25bn in 9MFY22, 45% higher than the profits of Rs2.2bn achieved during the same period in the previous fiscal year.
• Bestway Cement Limited (BWCL) witnessed a 25% YoY increase in its net profits worth Rs10.36bn in 9MFY22.

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