Category: Business

The Competition Commission of Pakistan (CCP) has granted a time bound approval to the exemption application for the technology transfer and license agreement between the Sui Southern Gas Company Limited (SSGCL) and US-based Itron Inc. with certain conditions to be complied.

The scope of agreement where exclusivity clauses have been allowed by the Commission is between SSGCL and Itron to facilitate the manufacturing of gas meters in Pakistan. CCP in its approval has directed SSGCL to achieve 100 percent localization of gas meters as a result of this agreement along with maximum import substitution through adequate local production of gas meters to meet local demand, including the demand of Sui Northern Gas Pipelines Limited (SNGPL), the other gas utility company in Pakistan.

The Ministry of Energy has also issued directions to SSGCL in this regard. CCP considers and grants exemptions pursuant to Section 9 of the Competition Act, 2010, inter alia ensuring that such exemptions have the economic benefits that
outweigh the anti-competitive effects of business agreements for any exemption to be awarded. CCP in its exemption has also directed that both parties to the agreement shall make concrete efforts to capitalize on the export potential of the gas meters and apprise annually to the CCP on the matter during the exemption period.

The gas meters must be manufactured according to the specifications approved or allowed by the relevant regulator(s) and international standard. The conditions set by CCP while awarding exemption are aimed at promoting localization and facilitating consumer interests in the relevant market besides economic benefits of import substitution to meet the local demand of gas meters with exports potential also.

Source: Pro Pakistani

Petrol pumps may get closed across Pakistan soon as refineries struggle to cope with declining fuel sales and an abundance of smuggled oil products in the market.

Refineries have strongly objected to the proposed deregulation of petroleum (POL) prices, reported a national daily.

They opine that OGRA’s suggestion to eliminate the requirement of uplifting domestic products from refineries allows oil marketing companies to procure POL stocks at their discretion which makes the current situation even worse.

All five refineries in the country warn that smuggling and OGRA’s deregulation model could jeopardize their upgrade plans. They were particularly unhappy with OGRA’s recommendations to relax the upliftment of local products.

Refineries said the authorities should consult them on the deregulation model. They added that improving fuel quality and saving money on foreign exchange through planned upgrades is crucial, but if unreasonable suggestions are implemented, refineries might shut down for good.

Oil Co
mpanies Advisory Council (OCAC) recently warned the federal government about the detrimental effects of rampant smuggling on government revenue and local refineries. They fear it could jeopardize planned investments in refinery expansion and upgrading projects aimed at meeting environment-friendly specifications.

Source: Pro Pakistani

The Pakistani rupee fell slightly against the US Dollar after opening trade at 278 in the interbank market.

It was largely stable against the greenback but devalued against other major currencies today.

The interbank rate stayed at 278.8 most of the day before closing at the same level. Open market rates across multiple currency counters were strictly in the 278 level today.

The PKR depreciated by 0.01 percent to close at 278.37 after losing four paisas against the dollar today.

On a fiscal year-to-date basis, the rupee has so far appreciated by 2.69 percent.

Overall, the rupee is down nearly Rs. 51.47 since January 2023. Since April 2022, it is down Rs. 95.47 against the greenback. As per the exchange rate movements seen today, the PKR lost four paisas today.

The PKR was red against most of the other major currencies in the interbank market today. It lost one paisa against the UAE Dirham (AED), one paisa against the Saudi Riyal (SAR), 53 paisas against the Euro (EUR), 55 paisas against the Canadian Do
llar (CAD), and 56 paisas against the Australian Dollar (AUD).

It gained 28 paisas against the British Pound (GBP) in today’s interbank currency market.

Source: Pro Pakistani

The government of Pakistan is gearing up to launch a groundbreaking initiative aimed at modernizing regulatory frameworks and fostering a more conducive environment for businesses.

In line with the World Bank’s Digital Economy Enhancement Program (DEEP), the government will establish the Pakistan Business Portal (PBP), a pivotal platform set to revolutionize business-government interactions across federal, provincial, and municipal levels.

Sources within the Ministry of IT and Telecom told ProPakistani that the Pakistan Business Portal will serve as the cornerstone of the DEEP initiative, designed to streamline regulatory processes and enhance the ease of doing business in the country. With a focus on simplifying and digitizing compliance procedures, the portal is poised to catalyze national digital transformation and drive economic growth.

The first phase of the project will involve a comprehensive review and mapping of registrations, certificates, licenses, and other regulatory requirements across appro
ximately 800 government agencies. This meticulous process will lay the groundwork for identifying areas of improvement and implementing reforms aimed at enhancing the business environment in Pakistan.

To oversee the development and implementation of the DEEP program, an interim Project Management Unit will be established within the Ministry of IT and Telecom. This temporary unit will be tasked with overseeing the DEEP project, ensuring its smooth execution and adherence to established timelines and objectives.

The DEEP project, supported by a financing package of $149.7 million approved by the World Bank’s Board of Executive Directors, underscores the international community’s commitment to Pakistan’s digital transformation agenda. With a significant portion of the funding allocated to the establishment of the Pakistan Business Portal, the government is well-positioned to leverage digital platforms to expand access to services and drive greater efficiency in the business sector.

In addition to its focus on
regulatory modernization, the DEEP initiative aims to introduce innovative solutions such as the Civic Innovation and Technology Labs (CITL) initiative, which will harness open government data to foster innovation and entrepreneurship.

Source: Pro Pakistani

Fauji Cement Company Limited (PSX: FCCL) has announced its financial results for the nine months that ended on March 31, 2024, posting a profit after tax (PAT) of Rs. 7 billion despite the increased financial cost of Rs. 1.26 billion incurred on expansion-related debt.

In Q3 FY24, PAT clocked in at Rs. 1.76 billion, down 6.3 percent compared to Rs. 1.88 billion in 3QFY23.

FCCL didn’t announce any dividend payouts for its shareholders for the period in review.

Net sales during 9MFY24 clocked in at Rs. 59.4 billion, an increase of 14.4 percent YoY compared to 9MFY23 on the back of higher retention prices, according to Arif Habib Limited,

FCCL said in a brief review that industry dispatches for 9MFY24 were 34.50 million tons as compared to 33.60 million tons in SPLY; an increase of 3 percent YoY. Domestic sales showed a decline of 4 percent while export sales increased by 68 percent mainly attributable to sea exports, which have again become viable due to currency devaluation and lower imported coal prices
for the companies in the South.

Company’s dispatches during the nine months FY 24 were 3.79 million tons as compared to 3.76 million tons SPLY; an increase of 1 percent YoY.

Gross profit margin improved to 31 percent as compared to 30 percent in SPLY. This, mainly, is attributable to better sales prices and cost optimization initiatives taken by the FCCL management. As a result of higher exports and devaluation of PKR, the company was able to get better revenue from exports. AHL attributed the uptick in gross margins to higher cement prices in tandem with a fall in coal prices.

On the cost side, increased usage of local coal, initiative to use multiple types of alternative fuels, increase in own power generation to mitigate the 35 percent increase in power tariffs and optimization of fixed costs contributed towards achieving the overall results.

Selling and Distribution expenses in 9MFY24 increased by 30 percent YoY to settle at Rs. 2.5 billion on the back of elevated freight charges given the implementat
ion of the axle load factor, AHL added. In 3QFY24, selling and distribution expenses arrived at Rs. 918 million vis-à-vis Rs. 789 million, up by 16 percent.

Finance costs in 9MFY24 increased by 72 percent YoY to clock in at Rs. 3.57 billion on the back of higher policy rates. In 3QFY24, the finance cost arrived at Rs. 1.57 billion, displaying a jump of 9 percent YoY amid a rise in borrowings and elevated interest rates.

The company booked effective taxation at 33 percent in 3QFY24 vis-à-vis 30 percent in 3QFY23.

FCCL posted earnings per share (EPS) of Rs. 2.87 for 9MFY24 and an EPS of Rs. 0.72 for 3QFY24.

At the time of filing, the company’s scrip at the bourse was Rs. 20.43, up 1.24 percent or Rs. 0.25 with a turnover of 42.9 million shares on Tuesday.

Source: Pro Pakistani

Fatima Fertilizer Company Limited (PSX: FATIMA) has increased urea prices by Rs. 551 per bag.

Our channel checks have confirmed that FATIMA has increased urea prices by Rs. 551/bag despite any changes in current gas rates. The producer’s new rate stands at Rs. 4,400/bag effective from 23 April 2024.

Earlier this month, Fauji Fertilizer Company Limited (PSX: FFC) hiked its urea prices by Rs. 633/bag to Rs. 4,400/bag.

Engro Fertilizer Limited (PSX: EFERT) rates for urea remain at Rs. 4,649/bag.

It bears mentioning that both FFC and FATIMA receive Mari network gas at a subsidized price of Rs. 580 per MMBtu, while other manufacturers on SSGC and SNGPL networks faced a Rs. 1,597 per MMBTU tariff hike in February 2024.

This disparity in gas pricing for the same product within the industry has led to a massive disparity in urea rates.

Urea prices play a crucial role in determining the prices of essential food commodities. Any arbitrary increase in urea prices by fertilizer companies can lead to higher costs f
or farmers, ultimately resulting in more expensive food prices for consumers.

Source: Pro Pakistani

Finance Minister Muhammad Aurangzeb expects to reach a Staff-Level Agreement on a bigger loan program with the International Monetary Fund (IMF) by June-July 2024.

He said this during the 7th Leaders In Islamabad Business Summit on Tuesday. The minister also projected foreign exchange reserves held by the State Bank of Pakistan will reach $9-10 billion by the end of the fiscal year.

Aurangzeb emphasized the government’s commitment to growth opportunities and its focus on stabilizing the economy. He addressed misconceptions regarding the IMF program and termed it as a collaborative effort to address Pakistan’s economic challenges.

Finance Minister said GDP is estimated to grow by 2.6 percent while inflation will be at 24 percent in the current fiscal year. He outlined measures by the federal government to control inflation, manage current account and fiscal deficits, and promote growth across all sectors.

Aurangzeb reaffirmed the government’s commitment to reforms, including efforts to broaden the tax bas
e and privatize state-owned enterprises like Pakistan International Airlines and Islamabad Airport.

He further encouraged collaboration between the federal government and provinces to enhance tax revenue and achieve sustainable economic growth.

Source: Pro Pakistani

The Pakistan Stock Exchange (PSX) on Monday issued notices to four listed companies to explain the unusual movement in their share prices.

The main bourse issued notices to Dewan Farooque Motors Limited (PSX: DFML), Ghandhara Automobiles Limited (PSX: GAL), Standard Chartered Bank (Pakistan) Limited (PSX: SCBPL) and TPL Insurance Limited (PSX: TPLI).

In four separate notices to the aforementioned firms, PSX said it observed unusual movement in the share prices of DFML, GAL, and TPLI in the past few days, while similar activity was observed in the share price of SCBPL between March 18, 2024, and April 15, 2024.

Since 1 April 2024, DFML shares have surged 79.5 percent from Rs. 16.43 to Rs. 29.5 per share on April 23. During the same period, GAL’s share price gained 39.1 percent to peak at Rs. 128.8 while TPLI rose 32 percent to Rs. 20 per share today.

Meanwhile, SCBPL’s share price went up by Rs. 21.05 (~60 percent) from Rs. 34.95 to as high as Rs. 56 between March 18 and April 15, data on the PSX portal s
howed.

‘In case of any material/price-sensitive information that is likely to affect the price or volume of the shares, listed companies are required to promptly disseminate the information through PSX for its onward dissemination to the public as stipulated under the PSX Regulation 5.6.1,’ the notices said.

The main bourse directed all firms to furnish sufficient information in order to clarify their positions which may have resulted in unusual movement in their share prices, or to disclose a statement of the fact that they are not aware of any such matter of development.

Source: Pro Pakistani