Day: November 20, 2021

The Securities Exchange Commission of Pakistan (SECP) in its investigation has made Hascol Petroleum Ltd’s management and auditors responsible for the financial fiasco.

Sources said that the SECP, in its investigation on the first show-cause notice issued to Hascol in 2019 for inspection of financial records, has made responsible the oil marketing company management as well as auditors for over-invoicing of petroleum import.

The over-invoicing was used to secure extraordinary credits from banks, sources added.

Recently, the chairman of the board of directors of Hascol Petroleum Sir Alan Duncan in his article stated that Hascol has been facing a liquidity crisis as a result of its inability to pay its creditors.

The company owes Rs. 54 billion to 19 banks and DFIs however, We have made significant progress in talks with our creditors to restructure Hascol’s liabilities, and thereby create the necessary fiscal space to build back the company’s operations.

Sources said that SECP is also doing a forensic audit of accumulated debt based on fraudulent accounts and fake purchase orders in order to find the individuals who plotted the whole scam.

Meanwhile, the Federal Investigation Agency has also arrested an employee of Hascol in connection with this scam.

It is pertinent to note that the company’s auditors as well as members of its board and senior management had tendered their resignations when this scam emerged.

Earlier, the company approached the court for taking a stay order when SECP started an investigation against it. However, later on, it withdrew the case quietly.

Sources said that the company had also shared the overhauling and revival plan with the regulator and the latter has also considered this aspect in its investigations.

Sources also said that the adjudicating wing of SECP will conclude the investigation against the company into the second show-cause soon that was also issued in 2020 for inspection of financial records.

It is pertinent to note that Hascol Petroleum Ltd on November 15, 2021, reported a net consolidated loss of Rs. 25.2 billion for the year ended on Dec 31, 2020.

Source: Pro Pakistani

Prime Minister Imran Khan has directed authorities to facilitate all Chinese investors who are setting up industries in Pakistan on an emergency basis by resolving their issues related to road connectivity and the provision of utilities.

He said this during a meeting with the Chinese business delegation being led by Ms. Chen Yan from Challenge Fashion (Pvt) Ltd.

”We will support Chinese businesses in Pakistan on a priority basis, and are grateful to them for their keen interest in accelerating their investment in Special Economic Zones (SEZs),” said Prime Minister Imran Khan.

He said,

Pakistan and China are connected not only in the past or present but we will remain united through our future generations too. We appreciate the valuable relationship between the peoples of the two countries.

Earlier, the Prime Minister was apprised that Chinese businessmen are almost ready to start operations in the glass, ceramics, and information technology sectors. It is worth mentioning that OPPO, one of the leading tech manufacturers in the world, is going to establish a local mobile manufacturing unit and a research & development center in Pakistan. It would not only save a lot of foreign exchange reserves on the import of smartphones annually but would also create employment opportunities for our tech graduates.

The meeting was also attended by Energy Minister Muhammad Hammad Azhar, Advisor on Commerce Abdul Razzak Dawood, SAPM on Political Communication Dr. Shehbaz Gill, SAPM on CPEC Affairs Khalid Mansoor, and Chinese Ambassador H.E Mr. Nong Rong. along with senior officers concerned.

Source: Pro Pakistani

Medicine prices have gone up by as much as 311.61 percent during the last two years, the Ministry of National Health Services informed the upper house of parliament on Friday.

According to details presented by the ministry in Senate, during the last two years, the prices of essential medicines in Pakistan have increased by 5.13 percent and the prices of low-cost medicines by 7.34 percent, while the prices of 102 medicines have increased from 2.53 percent to 311.61 percent.

The house was also informed that out of the total 177.04 million doses of vaccines, 44.48 million were received as donations by November 15. The donated vaccines included 36.68 million doses donated by COVAX and 7.7 million doses donated by China. The rest of the 132.56 million Covid-19 vaccines have been purchased by the government.

It is pertinent to mention here that back in August, Pakistan Medical Association (PMA) had asked the government to review its decision to increase drug prices including that of essential and life-saving medicines.

Meanwhile, the Ministry of Foreign Affairs informed the house in a written reply that a total of 309 officers are posted in Pakistani missions. Among them are 272 career diplomats and 25 officers of other departments.

Further, there are 12 retired military officers stationed in Pakistani missions abroad. The Pakistani missions have got 6 retired military officers in Grade 22 and 6 in Grade 21. While 6 career diplomats from Foreign Service are posted out of the country in grade 22, and in grade 21, 25 career diplomats are posted out of the country.

Source: Pro Pakistani

The decision by the State Bank of Pakistan (SBP) to raise its benchmark interest rate by 150 basis points to 8.75 percent has been labeled “more than expected” by Bloomberg.

The publication said that all 41 analysts it surveyed expected an increase, however, the biggest increase predicted by analysts was 100 basis points. It said that the unexpected hike in interest rate is aimed at arresting increasing inflation and stemming the rupee’s slide.

SBP had slashed the benchmark interest rate by 625 basis points from March to June 2020 to 7% to counter the economic slowdown caused by the coronavirus pandemic.

In its monetary policy statement, the central bank said, “The MPC (Monetary Policy Committee) was of the view that there is now a need to proceed faster to normalize monetary policy to counter inflationary pressures and preserve stability with growth.”

“Looking ahead, the MPC reiterated that the end goal of mildly positive real interest rates remains unchanged, and given today’s move, expects to take measured steps to that end,” the statement added.

Bloomberg also noted that “the central bank has already taken multiple steps in recent months to ease domestic demand, including restricting consumer financing and raising cash reserve requirements for banks to absorb excess liquidity from the system.”

It is pertinent to mention here that SBP had brought forward the MPC meeting from the previously announced date of Nov 26 citing “recent unforeseen developments.”

Source: Pro Pakistani

Governor State Bank of Pakistan, Dr. Reza Baqir, chaired a meeting today with Director General FIA Sanaullah Abbasi to strengthen and coordinate efforts of SBP, banks and Federal Investigation Agency (FIA) to fight money laundering, cyber-attacks, and online frauds.

Governor SBP hosted Director General FIA and Banks’ Presidents to strengthen coordination against money laundering, digital frauds, and cyber-attacks, and the meeting was also attended by the Presidents of Banks and senior officers of FIA and SBP.

Governor SBP emphasized the need for close cooperation amongst banks, SBP, and FIA so those white-collar crimes are expeditiously investigated and fraudsters are apprehended and prosecuted.

SBP has taken several measures in the recent past to strengthen its work on Anti-money Laundering (AML) as well as taken regulatory and supervisory measures to improve banks’ controls to prevent digital and social engineering frauds.

In addition to better controls at the level of Financial Institutions and enhanced customers awareness, effective investigation and prosecution of criminals are needed to substantially reduce incidences of money laundering, digital frauds, and cyber-attacks.

The FIA team offered support in strengthening cyber security at banks and suggested banks carry out Information Security (IS) audits of their systems. Welcoming the suggestion, SBP informed that as per existing regulations, banks are required to regularly carry out their information system audit and penetration testing, however, it would be reemphasized to the industry through PBA.

The meeting identified key follow-up areas and associated timelines for strengthening cooperation between SBP, FIA, and banks in these areas.

Source: Pro Pakistani