May 29, 2022 (MLN): Highlights of important economic and business events that have taken place over the past week are in order to get acquainted with the recent economic and public policy developments of Pakistan.

Important events throughout the week:

  • In order to facilitate the collection of government revenue/fees/taxes, the State Bank of Pakistan (SBP) on Saturday announced that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of the National Bank of Pakistan Pakistan (NBP) will observe extended business hours until 8:00 p.m. and 10:00 p.m. on 30 and 31 May 2022 respectively.
  • On the same day, the Minister of Finance and Revenue informed that a relief package worth Rs 28 billion announced by the Prime Minister under the Expanded Financing Facility (EFF) would be released after approval final meeting of the Executive Board of the International Monetary Fund (IMF).
  • The Economic Coordinating Committee (ECC) has approved Rs62.27 billion for the Ministry of Energy (Petroleum Division) to make payment of Price Differential Claims (PDC) to Petroleum and Marketing Companies (OMC) and Refineries for the second half of May 2022.
  • Meanwhile, the Oil and Gas Development Company Limited (OGDCL) has informed that the company has made four hydrocarbon discoveries, with an expected cumulative daily production potential of 39 MMCF of gas and 2,850 BBL of oil, during of the first nine months of the current financial year.
  • On the positive side, the International Finance Corporation (IFC) is ready to invest around $25 million in Pakistan’s largest fashion retailer, Khaadi Corporation.
  • On Friday, Federal Finance and Revenue Minister Miftah Ismail emphasized maintaining strategic sugar reserves and regulating sugar prices.
  • SBP on the same day ordered all scheduled banks as well as microfinance banks to submit data on all digital frauds and scams on a monthly basis, while reporting scope is also extended fake calls from fraudsters to other digital channels, including the mobile app. , e-commerce transactions, ATMs and points of sale.
  • On the electricity front, the National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs 4.8269 per unit in K-Electric’s tariff for March under the Monthly Fuel Adjustment (FCA) mechanism. .
  • Meanwhile, the Central Power Purchasing Agency (CPPA-G) has requested an increase of Rs 4.05 per unit in the electricity tariff for April under the monthly Fuel Cost Adjustment (FCA) mechanism.
  • The National Directorate of National Savings (CDNS) entered the Islamic finance market in May 2022, and will now offer Islamic finance to its customers.
  • Additionally, CDNC has achieved the target of issuing Rs 990 billion in new bonds in the last 10 months of the current 2021-22 financial year, from July 1 to May 24.
  • Additionally, the central bank announced the successful integration of CDNS with the Raast payment system.
  • On Thursday, the federal government decided to increase the prices of petroleum products by Rs30 per liter to meet the IMF’s request.
  • On the same day, the National Assembly passed the Elections (Amendment) Bill 2022, primarily aimed at abolishing the use of Electronic Voting Machines (EVMs) in general elections due to concerns over the use misuse of technology.
  • Pakistan is considering signing a long-term liquefied natural gas (LNG) purchase agreement with various countries, including Russia, as it seeks to secure supply and ease a crippling shortage.
  • Under the direction of the Standing Committee on Water Resources, the Federal Board of Revenue (FBR) has released Rs 1916 million for the Naulong Dam to Water and Power Development Authority (WAPDA).
  • In addition, Pakistan Customs (FBR) has strengthened law enforcement at all international airports in Pakistan to prevent the smuggling of items recently banned by the Federal Government.
  • Prime Minister Shehbaz Sharif on Thursday appointed public policy expert Salman Sufi to lead the prime minister’s strategic reforms.
  • While appreciating the recent hike in the policy rate by the State Bank of Pakistan (SBP), the International Monetary Fund (IMF) mission on Wednesday stressed the need to remove fuel and energy subsidies to benefit from the next tranche of the expanded financial mechanism. (EFF).
  • Over the past week, Foreign Minister Bilawal Bhutto Zardari and his Saudi counterpart Prince Faisal bin Farhan Al Saud expressed their determination to deepen mutual cooperation in all areas, including economy, trade and the world. investment, as well as in multilateral forums.
  • As Saudi Arabia finalizes the extension of the kingdom’s $3 billion deposit in Pakistan.
  • The government has set the retail price of urea at Rs 1,768 per 50 kilogram bag from the current price of Rs 1,900-2,000 per bag.
  • The Petroleum Companies Advisory Council (OCAC) has confirmed the availability of sufficient stocks of petroleum products in the country, including depots in the Punjab region.
  • In the past week, Dr. Murtaza Syed, Acting Governor of the State Bank of Pakistan (SBP), inaugurated the Digital Center, purposely built to meet the needs of customers of Roshan Digital Accounts (RDAs).
  • The Pakistan Hi-Tech Hybrid Seed Association (PHHSA) on Tuesday urged the government to remove a 17% sales tax on hybrid seeds.
  • SBP on the same day revised prudential regulations for consumer financing, reducing the financing period for auto financing to reduce the rapid growth of loans in the auto sector.
  • At the same time, SBP has also increased the mark-up rate for financing under the Export Finance Scheme (EFS) and Long-Term Finance Facility (LTFF) by 2%.
  • The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) at its meeting held on Monday decided to raise the policy rate by 150 basis points (bps) to 13.75%.

Announcement:

  • On the equity side, TPL Investment Management Ltd (TPLIM) of TPL Properties Limited, incorporated in the Abu Dhabi Global Market (ADGM), has been granted a Class 3C Financial Services Business License and Authorization (FSP) by the ADGM’s Financial Services Regulatory Authority (FSRA). .
  • Despite significant challenges, Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) demonstrated solid growth in profitability thanks to a strong recovery in other income as well as an increase in turnover in a price environment higher vehicles.
  • Indus Motor Company (INDU) plans to launch its first locally assembled Hybrid Electric Vehicle (HEV) SUV, Corolla Cross in 2023.
  • Given the immense potential for business opportunities in the electric vehicle (EV), Pak Suzuki Motor Company (PSMC) will likely fall into the category of hybrids and EVs.
  • Meanwhile, SBP has authorized Habib Bank Limited (HBL) to inject Rs 1.4 billion into HBL Asset Management Limited.
  • VIS Credit Rating Company Limited has affirmed the entity ratings of International Steels Limited (“ISL” or “the Company”) at “A+/A-1” (Single-A Plus/A-One).
  • During the week, the Pak-Qatar Takaful Group reported a pre-tax profit of Rs 271 million for the fiscal year ended December 31, 2021.
  • The Security and Exchange Commission of Pakistan (SECP) has renewed the license of 786 Investments Limited to perform asset management services as a non-bank microfinance company.
  • The shareholders of Cordoba Logistics & Ventures Limited have decided to increase the authorized share capital of the company by Rs22.5 million ordinary shares from Rs10 each to Rs1 billion.

Copyright Mettis Link News

Published on: 2022-05-29T12:40:56+05:00

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