Pkrevenue.com

Month: April 2021

  • SECP proposes amendments to introduce special purpose acquisition company

    SECP proposes amendments to introduce special purpose acquisition company

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to introduce concept of Special Purpose Acquisition Company (SPAC).

    A statement issued on Thursday stated that to introduce the SPAC, the SECP has proposed amendments to the Public Offering Regulations, 2017 to solicit public comments.

    SPAC is a new concept for Pakistan’s capital market and is prevailing in many jurisdictions, including USA, Canada, Malaysia etc. Under the SPAC structure, a company comprises of group of persons/professionals raise funds from the general public and those funds are utilized for the purpose of merger or acquisition transaction within a permitted time frame.

    A SPAC’s life begins with its initial formation (in the form of a company), followed by its IPO, its search for a target, a shareholder approval for merger/acquisition and finally, the close of an acquisition or else return of the SPAC’s proceeds back to its investors.

    Under proposed regulatory framework, SPAC shall be a company or body corporate registered with the SECP, which shall be formed by a group of persons meeting the fit and proper criteria.

    Paid up-capital requirement for SPAC shall be Rs1 million and it shall raise at least Rs200 million through public offering.

    The Acquisition/merger has to be completed within permitted timeframe of two years. At least 90 percent of the funds raised shall be kept in escrow account managed by a custodian.

    The proceeds in the escrow account may be invested in permitted investments. Each merger or acquisition transaction shall be approved by the shareholders by way of special resolution.

    Upon merger, the merged entity shall be automatically listed and in case of acquisition the SPAC shall list the acquired entity. Shareholder/(s) disapproving the merger or acquisitions are entitled for refund of their money out of Escrow account as per specified procedure.

    The aforesaid mentioned amendments are expected to provide a more conducive regulatory environment for capital formation in the economy through primary market.

  • Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith

    Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith

    ISLAMABAD: The finance ministry on Thursday announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold with immediate effect.

    In different notifications the finance division announced to withdraw the prize bonds of denominations Rs7,500 and Rs15,000 from circulation with immediate effect.

    According to the notifications:

    “… Prize bonds of Rs7,500 denominations shall not be sold with immediate effect and will not be encahsed / redeemed after December 31, 2020 … “

    “ … Prize bonds of Rs15,000 denomination shall not be sold with immediate effect and will not be encahsed / redeemed after June 30, 2021 … “

    The finance divisions also issued the procedure for redemption/conversion of bonds.

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation, and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP banking services corporation well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

    Investors redeem Rs115 billion against suspended Rs25,000 prize bonds
  • PSO announces 5-time increase in net profit for nine-month period

    PSO announces 5-time increase in net profit for nine-month period

    KARACHI: Pakistan State Oil (PSO) has declared five-time increase in net profit for nine-month period ended March 31, 2021. The unprecedented growth may be attributed to reduction in cost of products sold during the period.

    According to financial results for nine-month period ended March 31, 2021 submitted to Pakistan Stock Exchange (PSX), the company announced an amount of Rs18.24 billion during first nine months (July – March) 2020/2021 as compared with profit of Rs3.01 billion in the corresponding period of the last fiscal year.

    The gross sales of the company fell to Rs1,008.7 billion during first nine months of the current fiscal year as compared with Rs1,038.01 billion in the corresponding period of the last fiscal year.

    The cost of products sold significant fell to Rs815.22 billion during July – March of 2020/2021 as compared with Rs867.18 billion in the same period of the last fiscal year.

    PSO declared gross profit of Rs37.7 billion during first nine months of the current fiscal year as compared with Rs20.14 billion in the same period of the last fiscal year.

    Operating cost of the company was remained flat at Rs8.06 billion during first nine months of the current fiscal year as compared with Rs8.07 billion in the same period of the last fiscal year.

    PSO declared earnings per share at Rs38.86 for the nine months period ended March 31, 2021 as compared with Rs6.41 EPS in the same period of the last fiscal year.

  • PPL declares decline in net profit to Rs38.12 billion during nine months

    PPL declares decline in net profit to Rs38.12 billion during nine months

    KARACHI: Pakistan Petroleum Limited (PPL) on Thursday declared decline in net profit to Rs38.12 billion for the nine-month period ended March 31, 2021.

    According to unconsolidated financial results submitted to Pakistan Stock Exchange (PSX), the petroleum company declared Rs38.12 billion during first nine months (July – March) 2020/2021 as compared with Rs39.23 billion in the corresponding period of the last fiscal year.

    Revenue of the company fell to Rs112.23 billion during the period under review as compared with the revenue of Rs126.23 billion in the same period of the last fiscal year.

    Operating expenses of PPL also eased to Rs32.45 billion during the nine-month period ended March 31, 2021 as compared with Rs33.04 billion in the same period of the last fiscal year.

    The company paid royalties and other levies to the tune of Rs16.67 billion during first nine months of the current fiscal year as compared with Rs18.88 billion in the corresponding period of the last fiscal year.

    Exploration expenses fell drastically during the period under review. The expenses under this head fell to Rs3.62 billion during July – March 2020/2021 as compared with Rs13.76 billion in the same period of the last fiscal year.

    The net profit of the company for the quarter ended March 31, 2021 also fell to Rs11.88 billion when compared with Rs14.67 billion in the same quarter of the last year.

  • Consumer confidence declines in first quarter of 2021

    Consumer confidence declines in first quarter of 2021

    KARACHI: The consumer confidence index has declined by over 10 percent in the first quarter of 2021 owing to concerns over the current economic situation owing to imposition of restrictions to prevent spread of coronavirus.

    Dun & Bradstreet Pakistan and Gallup Pakistan issued their report on ‘Pakistan Consumer Confidence Index (CCI)’ for Q1 2021 on Thursday.

    The CCI report has been developed by assessing Consumers’ Confidence about the economy as well as their personal financial situation. The Index covers four key parameters i.e., Household Financial Situation, Country’s Economic Condition, Unemployment, and Household Savings.

    The Index is a reflection of ‘Current Situation’ (economic changes felt in the last six months), as well as ‘Future Expectations’ (changes expected for next 6 months) of consumers across the country.

    The CCI ranges from 0 to 200, with 100 as the neutral value. A score of less than 100 indicates pessimism. The CCI was 80.8 points in Q1 2021, compared to 90.3 points in Q4 2020, translating into 10.5 percent q-o-q decrease. This deterioration in sentiment is driven by restrictions imposed on business operations by the government to counter the third wave of the pandemic.

    Consumers reported a greater decline in Future Expectations (down 12.0 percent) due to prevailing uncertainty, compared to the Current Situation, which also declined by 8.3 percent this quarter.

    Nauman Lakhani, Country Lead of Dun & Bradstreet in Pakistan stated, “The fifth issue of Pakistan Consumer Confidence marks the beginning of the calendar year 2021.

    A decline of over 10 percent q-o-q in the Consumer Confidence reflects increasing concerns amongst respondents. Consumers reported a greater decline in Future Expectations compared to Current Situation which demonstrates that consumers are more apprehensive about Future.”

    Bilal Ijaz Gilani, Executive Director Gallup Pakistan, added, “In the first quarter of 2021, CCI shows a consumer who is both increasingly concerned about the present economic situation and also apprehensive about the future. Unemployment concerns have been rising to mid-2020 level as the government imposes lockdown in major cities, curtail business hours, and shut schools in wake of the third wave of the COVID-19 pandemic.

    Inflation at high 7-8 percent continues to eat purchasing power of the common consumer. With the new Finance Minister, we at Gallup hope that growth enhancing policies will be introduced to bring short term relief to consumers.”

    During the current quarter, all CCI parameters witnessed an overall decline. Consumer sentiments witnessed the largest deterioration in regards to Economic Condition of the Country which declined by 16.0 percent on account of resumption of smart lockdown.

    During Q1 2021, Household Financial Situation was the only CCI parameter that managed to stay above 100 points despite decreasing for the first time since Q1 2020.

    Furthermore, Unemployment continues to drag consumers’ enthusiasm and remained the most pessimistic parameter. Unemployment Situation deteriorated by 15.7 percent q-o-q, more than half (53 percent) of respondents believe that Unemployment will increase in the next six months compared to 42 percent in Q4 2020 and 39 percent in Q3 2020.

    During Q1 2021 survey, 92 percent consumers believed that daily essentials have continued to become expensive / very expensive in the last 6 months compared to 93 percent in Q4 2020.

  • Finance minister directs to expedite sales process of available spectrum bands

    Finance minister directs to expedite sales process of available spectrum bands

    ISLAMABAD: Finance Minister Shaukat Tarin on Thursday directed to expedite the sale process for the available spectrum. He stressed to provide a level playing field so that all operators must have a fair and equal chance in the process.

    He urged all the key stakeholders to ensure maximum participation across the board for successful completion of the sale transaction, he added.

    He said this while presiding over a meeting of the Advisory Committee for the release of Next Generation Mobile Services (NGMS) Spectrum at the Finance Division.

    Federal Minister for Science and Technology Senator Shibli Faraz, Federal Minister for IT and Telecommunication Syed Amin ul Haque, Adviser to the PM on Commerce Abdul Razak Dawood, Secretary Finance Division, Secretary IT & Telecommunication, Secretary Law & Justice Division, Chairman PTA, Executive Director Frequency Allocation Board (FAB) and other senior officers participated in the meeting.

    The Chairman PTA briefed the Advisory Committee about the arrangements underway for the sale of available Spectrum of Next Generation Mobile Services in the country.

    A detailed presentation was made about the specifications of available spectrum bands and methodology for sale in line with international best practices. The newly hired consultants also gave a detailed input and answered the technical queries by the members of the Committee.

    Speaking on the occasion, the Federal Minister for Science and Technology Shibli Faraz said that international benchmarks must be followed to ensure the whole process of sale is competitive and based on principles of transparency and equity.

    Adviser to the Prime Minister on Commerce suggested an in-depth analysis to gauge demand for Spectrum and devise a strategy for its pricing and packaging accordingly. The Federal Minister for IT and Telecommunication stated that the sale of NGMS is of key importance for strengthening and expanding communication / IT Services across the country. After due deliberations, the Advisory Committee approved the recommendations for the sale of NGMS during the meeting.  

  • PM hopes car scheme to generate demand for domestic industry

    PM hopes car scheme to generate demand for domestic industry

    KARACHI: Prime Minister Imran Khan paid rich tribute to Overseas Pakistanis for their overwhelming response to the Roshan Digital Account (RDA). He said their support and vote of confidence have been pivotal in making the initiative a big success within a short period of time, according to a press release issued by State Bank of Pakistan (SBP) on Thursday.

    The prime minister was addressing a gathering of ministers, CEOs of car manufacturers and insurance companies, heads of leading charities, presidents of banks, SBP officials and other distinguished guests to celebrate the $1 billion mark in RDA deposits and to launch two additional products specially created for Overseas Pakistanis through RDA—Roshan Apni Car and Roshan Samaaji Khidmat.

    The success of RDA and today’s addition of further products under this scheme demonstrate that if the public and private sector work together in a spirit of cooperation, any project is bound to succeed, he added.

    The Prime Minister appreciated the out-of-the-box approach of the SBP and the banking industry in digitally connecting Overseas Pakistanis to the Pakistani banking system and economy through RDA. He also lauded the continued innovation they are showing through the addition of the Roshan Apni Car and Roshan Samaaji Khidmat products.

    He hoped that the Roshan Apni Car initiative would not only help Overseas Pakistanis to fulfill the needs of their loved ones in Pakistan but would also create additional demand for the car industry that will in turn help them and connected industries to grow at a faster pace.

    He was also confident that Roshan Samaaji Khidmat will be able to provide a convenient one stop donation platform for Overseas Pakistanis to meet their charitable giving goals and Zakat obligations. Appreciating the spirit of charity demonstrated time and time again by Overseas Pakistanis, he noted that these additional funds will help social sector organizations and NGOs to help an even larger number of disadvantaged people in Pakistan. The Prime Minister was especially pleased to note that, for the first time, Overseas Pakistanis will now also be able to contribute to “Ehsaas”, the government’s internationally acclaimed poverty alleviation program, through Roshan Samaaji Khidmat.

    In his welcome address, Governor SBP, Dr. Reza Baqir, thanked the Honourable Prime Minister for his vision of connecting the Pakistani diaspora through financial services and for his constant encouragement and guidance.

    He said he was feeling proud today that banks were able to receive $1 billion in deposits through RDA in such a short period of time. Recalling the launch of RDA in September 2020, he said that the first major milestone of receiving $500 million was passed after five months.

    After only another two months, the $1 billion mark has been crossed, demonstrating the accelerating pace inflows. He noted that more than 120,000 Roshan Digital Accounts have been opened from 170 countries around the world.

    He remarked that deposits through these accounts were providing a brand new source of foreign exchange inflows that were helping to improve Pakistan’s foreign exchange reserves and balance of payments position. He appreciated the hard work of all the staff and senior management of both the banks and SBP, noting that their dedication and spirit of constant innovation have been critical to the success of the initiative.

    Roshan Digital Account was conceived to offer lifestyle banking products in Pakistan to Overseas Pakistanis, including money deposit facilities, investment opportunities in Naya Pakistan Certificates, the stock market and real estate, as well as other day to day payment facilities. This suite of lifestyle products is being constantly expanded, with today’s launch of Roshan Apni Car and Roshan SamaajiKhidmat being the latest example.

    Roshan Apni Car has been specially designed for Overseas Pakistanis and has many distinguishing features. For the first time in the history of the banking industry, an RDA holder will be able to apply for car financing for their loved ones in Pakistan completely digitally. Processing time will be fast. Financing and insurance will be available at very attractive rates, and in both conventional and Shariah compliant forms. Moreover, car manufacturers have committed to significantly slashing the car delivery time for RDA holders.  

    Roshan SamaajiKhidmatis a one stop payment platform to enable Overseas Pakistanis to make donations to leading charities, hospitals and educational institutes in Pakistan, as well as to meet their  Zakat obligations. In addition to these private sector organizations, SBP also worked closely with Special Assistant of the Prime Minister of Pakistan on Poverty Alleviation and Social Protection, Dr. SaniaNishtar, and her team to integrate “Ehsaas”, the government’s flagship poverty alleviation program, with the Roshan Samaaji Khidmat portal.

    As a result, private participation in one of the world’s most acclaimed poverty alleviation programsis being made possible for the first time.

    Through Roshan Samaaji Khidmat, Overseas Pakistanis are being given the opportunity to make direct contributions to the program. In so doing, they would be providing vital support to the government’s efforts to lift millions of their fellow Pakistanis out of poverty.

  • Foreign exchange reserves increase by $307 million to $23.52 billion

    Foreign exchange reserves increase by $307 million to $23.52 billion

    KARACHI: The foreign exchange reserves of the country increased by $307 million to $23.52 billion by week ended April 23, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $23.213 billion by week ended April 16, 2021.

    The foreign exchange reserves of the central bank increased by $384 million to $16.428 billion by week ended April 23, 2021 as compared with $16.044 billion a week ago.

    However, foreign exchange reserves held by commercial banks fell by $77 million to $7.092 billion by week ended April 23, 2021 as compared with $7.169 billion a week ago.

  • Stock market sheds 196 points on selling activities

    Stock market sheds 196 points on selling activities

    KARACHI: The stock market fell by 196 points on Thursday owing to selling observed during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,863 points as against last day’s closing of 45,059 points, showing a decline of 196 points.

    Analysts at Arif Habib Limited said that the market declined further today with a drop of 278 points during the session and ended the session -196 points.

    Selling was evident across the board, but had the most impact on Cement, Fertilizer, Steel sectors. Financial results have failed to generate the usual interest among investors perhaps due to the upcoming tight budget right after Ramadan and a long hibernating period till the next financial results will be announced.

    International crude oil prices were on the rise overnight, however, E&P stocks did not react to it. Among scrips, HASCOL led the table with 43.8 million shares, followed by GGL (32.6 million) and TELE (19.5 million).

    Sectors contributing to the performance include Banks (-58 points), Cement (-56 points), Fertilizer (-33 points), Power (-28 points) and Tobaco (-13 points).

    Volumes declined from 305.7 million shares to 280.7 million shares (-8 percent DoD). Average traded value also declined by 16 percent to reach US$ 88.6 million as against US$ 105 million.

    Stocks that contributed significantly to the volumes include HASCOL, GGL, TELE, TRG and GGGL, which formed 45 percent of total volumes.

    Stocks that contributed positively to the index include HASCOL (+10 points), KTML (+10 points) and ICI (+8 points). Stocks that contributed negatively include FFC (-26 points), SNGP (-26 points), MCB (-14 points) and POML (-13 points).

  • Rupee gains 26 paisas against dollar

    Rupee gains 26 paisas against dollar

    KARACHI: The Pak Rupee gained 26 paisas against the dollar on Thursday owing to improved economic indicators and suspension of loan repayment for Pakistan.

    The rupee ended Rs153.62 to the dollar from previous day’s closing of Rs153.88 in the interbank foreign exchange market.

    Currency experts said that market was remained optimistic owing to current account surplus during first nine months of the current fiscal year.

    Besides, sentiments were also improved owing to suspension of loan repayment by G-20 countries.