Day: April 22, 2024

The Pakistani rupee reversed Friday's gains against the US Dollar after opening trade at 278 in the interbank market. It was largely stable against the greenback and other major currencies today. The interbank rate stayed at 278.75 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 278.33 after losing two paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.7 percent. Overall, the rupee is down nearly Rs. 51.43 since January 2023. Since April 2022, it is down Rs. 95.43 against the greenback. As per the exchange rate movements seen today, the PKR lost three 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), two paisas against the Saudi Riyal (SAR), 19 paisas against the Euro (EUR), 32 paisas against the Canadian Dollar ( CAD), and 40 paisas against the Australian Dollar (AUD). It gained Rs. 2.01 against the British Pound (GBP) in today's interbank currency market. Source: Pro Pakistani

Pakistan wants to sell a big chunk of its 25 percent stake in the Reko Diq mine in exchange for $1 billion cash. Saudis are fetching and look like serious contenders to get it in the next few months. Are we so cheap? 'This is a big mistake. Our national interests are being subjected to arguably Asia's biggest highway robbery since the Mughal Empire sold the subcontinent to the British in the 19th century. Soon, foreign players will start excavating rare metal reserves like Cobalt, Silica, and Lithium in the region. Those are crucial for kickstarting the semiconductor industry. China did it in Guangdong and Sichuan and then in Pakistan's Saindak mines, but unfortunately, the Special Investment Facilitation Council (SIFC) is cute and blind,' a policy expert told ProPakistani. Notably, the Metallurgy Corporation of China (MCC) has pocketed nearly 80 percent of the profits from the Saindak Copper-Gold Project in Chagai since COVID-19. Beijing expects to continue until the reserve depletes by 2037. The Reko Di q Treasure And Who's Ripping Us off The Reko Diq mine alone possesses almost $6 trillion worth of precious rare-earth reserves besides gold and copper, which are projected to yield at least $350 billion in annual revenue based on projected commodity prices on a 10-year average. By 2032, average annual production is expected to yield 710 million tons of copper and gold, and looks like Pakistan won't see much of it. Global players like Barrick Gold and (maybe) Saudi venture Manara Minerals Investment Company are getting it for peanuts. Rek Diq is one of the largest undeveloped copper-gold projects in the world, owned 50 percent by Barrick Gold, 25 percent by three federal state-owned enterprises, 15 percent by the Province of Balochistan on a fully funded basis, and 10 percent by the Province of Balochistan on a free carried basis. As expected, over 70 percent of the total project capital expenditure and profits will be foreign-denominated. Meanwhile, the federal government will source 30 percent of the min e's development cost and keep a small share of the fortune. Riyadh's Trick Saudis are trying to offload what little dollars they have to end dollar dominance. Riyadh's interest in buying into Reko Diq is seen as advantageous. The value of gold and copper is expected to rise in the coming decades while most analysts across the globe tip the dollar to crash. This will also improve the value of the Reko Diq mine significantly. Can't we common folk agree that selling off such a valuable national asset for a relatively small sum is a big mistake that makes us poorer? A $1 billion stake could actually be worth $40-50 billion to Riyadh. Saudis might as well invest then mine $100 billion worth of copper and gold in just 2 years, while Pakistan gets nothing. The mine can contribute significantly to Pakistan's overall exports if foreign players are phased out of control. Barrick Gold has it too easy, other players like Saudis will get it easier too. Finance Ministry sources told ProPakistani that if a deal is agre ed, Saudi Arabia will buy shares of Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited - all listed entities - in the Reko Diq mine. In this analyst's view, the listed companies should re-evaluate their position on how to proceed in terms of expected profitability and multiple re-ratings as a result of the upcoming Reko Diq sale. The mine has a life of at least 40 years as a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. Authorities are giving it up for cheap and the local economy deserves better. Source: Pro Pakistani

In an exciting development for Pakistan's first grassroots development program, 'Football Factory', which is known as one of the best academies in the country, has been invited to participate in a prestigious 12-day training camp hosted by Borussia Dortmund, a top-tier football club based in Germany. This opportunity marks a significant milestone for the Football Factory youth development program and their academy, allowing players to gain invaluable experience and exposure in Europe. Football Factory's brilliant training facilities and youth academy have caught the attention of scouts and sports enthusiasts, ultimately leading to this remarkable invitation from Borussia Dortmund. The club thanked its founder Faizan Sameer for this massive opportunity and posted on their Instagram, 'Being invited by BVB for an exclusive 12-day training camp is a testament to our dedication and hard work in bringing value to the game in Pakistan, we are excited to learn from Dortmund's renowned youth development program an d bring back invaluable experiences to Pakistan!' 'A big salute to our founder Faizan Sameer for making this happen!' the club added further. It is expected that the 12-day training camp with Dortmund's youth development program will be held from August 1 to August 12. Certainly, it promises to be an immersive experience for the Football Factory, providing intensive coaching sessions, tactical workshops, friendly matches, and exposure to the professional environment maintained by a prestigious European football club. The players will have the opportunity to train alongside skilled athletes and learn from top coaches, gaining insights that will undoubtedly elevate their skills and teamwork in the long run. This invitation not only highlights the potential of the Football Factory youth development program but also underscores the power of sports to unite communities and inspire athletes to reach new heights. Source: Pro Pakistani

In a landmark development, the Pakistan Stock Exchange (PSX) has signed a collaborative understanding with LSEG (London Stock Exchange Group) on Environment, Social and Governance (ESG). Under this mutual understanding, both companies will work to develop a suite of standardized ESG data tools that can be used by PSX-listed companies for their ESG data reporting. This understanding benefits PSX and listed companies in that the platform will not only provide ESG scoring but also enhance the visibility of Pakistani companies on the international ESG radars. This arrangement shall also help lay down the groundwork for an ESG Index planned by the PSX in the future. Aligned with PSX's vision on ESG, this development is a major link in the chain of steps taken by the Exchange in its ESG journey. Through this collaboration, PSX lays down the groundwork to encourage listed companies in adopting ESG reporting in line with global standards. Moreover, it augments the step taken by PSX in the shape of the ESG Taskfor ce established along with key stakeholders to bolster the adoption of ESG standards by listed companies. In the near future, PSX also plans to hold training sessions in collaboration with LSEG to create the necessary awareness and build capacity for listed companies on ESG reporting. Speaking on the signing of the mutual understanding with LSEG, Farrukh H. Khan, MD and CEO PSX, stated, 'The signing of the understanding with London Stock Exchange Group makes available a comprehensive suite of services that will be offered by PSX in the ESG domain for listed companies. The collaboration with LSEG is aligned with PSX's vision to elevate the ESG journey for listed companies to the next level. I congratulate the teams at PSX and LSEG for enabling this collaboration. I am confident this will prove to be a win win situation for all stakeholders involved by improving the presence and profile, both locally and globally, of Pakistan and the companies listed on PSX'. Nadim Najjar, Managing Director, Central and East ern Europe, Middle East and Africa, LSEG, added, 'This collaboration with Pakistan Stock Exchange marks a significant stride in our joint efforts to advance ESG reporting and practices. Our goal is to support companies in Pakistan to foster a more sustainable and responsible business environment.' Delivering the keynote address, Dr Shamshad Akhtar, Chairperson PSX, stated, 'I am very happy to see that there is an agreement leading to the collaboration between the London Stock Exchange Group and Pakistan Stock Exchange. From the PSX board's standpoint, we count on our Exchnage on drawing extensively from the experience of London Stock Exchange Group and practices of promoting sustainability and responsible investment as it guides its client, particularly listed companies, to embrace and mainstream sustainable development through the instrument of ESG keeping in practice and perspective the need to, as soon as possible, work towards curbing carbon emissions of our industry, trying to promote social objectives and, most importantly, supporting the governance element'. Akif Saeed, Chairman SECP, as the keynote speaker, congratulated PSX's collaboration with LSEG, enabling ESG Contribution Tool access for listed firms. He highlighted the positive integration of sustainability into capital market frameworks, anticipating enhanced global ESG scoring accessibility. SECP's forthcoming ESG Disclosure Guidelines and the ESG Sustain portal launch this year will further reinforce measures to sustainability and collaboration for a resilient market, he added. Source: Pro Pakistani

The Foreign Direct Investment (FDI) in the country rose to $258 million in March 2024, up 52 percent over the FDI of $170 million in the same month of FY23. According to Arif Habib Limited (AHL), the net FDI inflows in March 2024 are the highest since June 2022 (21-month high). In March 2024, foreign direct investment inflows stood at $330 million, up 39 percent over inflows of $237 million in March 2023. While outflows in March 2024 stood at $72 million, up 8 percent compared to outflows of $67 million in March 2023. FDI inflows during the nine months of the current fiscal year (9MFY24) stood at $1.1 billion, down 10 percent compared to FDI inflows of $1.2 billion reported in the 9MFY23. In 9MFY24, the highest FDI inflows of $264 million were received from Hong Kong, followed by China at $262 million, the United Kingdom at $196 million, the United States at $101 million and the Netherlands making the top five with inflows of $67 million. The power sector was the major recipient of FDI, attracting inflo ws of $443 million, followed by oil and gas exploration at $171 million, financial business at $151 million, and petroleum refining at $70 million. Source: Pro Pakistani

Attock Refinery Limited (PSX: ATRL) has shut down its main crude distillation unit with immediate effect, the company informed the main bourse on Monday. 'We wish to inform you that due to high stocks of diesel, we are forced to shut down the main crude distillation unit with immediate effect from today,' the stock filing stated. ATRL is principally engaged in the refining of crude oil. The Company is a subsidiary of The Attock Oil Company Limited, England and its ultimate parent is Coral Holding Limited (a private limited company incorporated in Malta). The company's scrip at the bourse closed at Rs. 411, down 1.88 percent or Rs. 7.88 with a turnover of 4.4 million shares on Monday. Source: Pro Pakistani