Category: Industry

The Oil and Gas Regulatory Authority (OGRA) has instructed oil marketing companies (OMCs) to pick up more high-speed diesel (HSD) from local refineries to ensure a smooth fuel supply in the upcoming peak harvest season. HSD uplift had failed to budge despite the notable reduction in smuggled Iranian diesel. In a letter to the OMCs, OGRA highlighted that the harvesting season has led to a substantial surge in diesel sales across Pakistan. The regulator urged coordination from all stakeholders to ensure uninterrupted fuel supply to consumers, reported a national daily. OGRA directed OMCs to procure more HSD in order to avoid storage issues at refineries and maintain supply during the harvesting season. Notably, OMCs were against the procurement of large quantities of HSD with rates poised to fall in the upcoming review of fuel prices. However, recent anti-smuggling measures have improved HSD stocks of OMCs. Currently, OMCs are cautious about uplifting large quantities of HSD, anticipating significant price cuts to avoid inventory losses. Oil sector estimates indicate that HSD demand from the formal sector has doubled recently. The first ten days of May saw daily HSD sales jump to around 29,000 tons, nearly double the average of 15,000 tons per day in recent months. Source: Pro Pakistani

Prime Minister Muhammad Shahbaz Sharif chaired a meeting to review the affairs of the Ministry of Privatization and the Privatization Commission. During this session, the Roadmap of Privatization Program 2024-2029 was unveiled. The meeting was informed that the pre-qualification process for the privatization of Pakistan International Airlines (PIA) will be completed by the end of May. Also, consultations on the sale of the Roosevelt Hotel are ongoing. To ensure transparency, the Prime Minister mandated that the privatization process, including the bidding for PIA, be broadcast live. This live coverage will also extend to the stages of privatizing other institutions. The privatization program for 2024-2029 includes electricity distribution companies (DISCOs). The government is also negotiating with the United Arab Emirates to pawn off First Women Bank Limited. Meeting participants agreed that priority will be given to privatizing loss-making enterprises to enhance efficiency and reduce fiscal burdens. To facilitate this, a pre-qualified panel of experts will be on the Privatization Commission to accelerate the process. Prime Minister Sharif announced that all state-owned enterprises, except for strategic entities, would be privatized. This decision applies to both profit-making and loss-making enterprises. He emphasized that the government's role is to create a business-friendly environment rather than operate businesses directly. Sharif highlighted the benefits of privatizing these enterprises, noting that it would save taxpayer money and improve the quality of public services. He directed all federal ministries to support and collaborate with the Privatization Commission to expedite the process. The meeting was attended by key ministers and senior government officials, including the Minister for Defense Khawaja Asif, Finance Minister Muhammad Aurangzeb, and others. Source: Pro Pakistani

Pakistan Stock Exchange (PSX) closed at a new all-time high in today's session after crossing 74,500, summiting the previous high of 73,799 recorded on Monday. Similar to yesterday's trends, positive vibes from the International Monetary Fund kept up the momentum. Equities closed the day's affairs at 74,531, up 732 points or 0.99 percent. An encouraging buying spree throughout today's session helped the index cross and close in the new territory. The KMI 30 index gained 1,687 points settling at 123,918, while the KSE All share index increased by 376 points to close at 48,311. Top Volumes The highest participation was witnessed in Cnergyico PK Limited (PSX: CNERGY) with over 34.3 million shares traded, followed by WorldCall Telecom Limited (PSX: WTL) and K-Electric Limited (PSX: KEL). The scrips had 29.89 million shares and 28.16 million shares traded, respectively. SCRIP PRICE HIGH LOW CHANGE VOLUME CNERGY 4.59 4.84 4.58 -0.11 34,381,501 WTL 1.44 1.48 1.43 -0.04 29,893,984 KEL 4.67 4.7 4.56 - 28,167 ,436 PAEL 27.7 28.25 26.91 0.14 19,885,214 FFL 10.01 10.29 9.97 0.08 19,548,427 OGDC 139.9 140.1 134.75 4.59 18,217,177 TPLP 11.8 12.08 11.6 -0.04 15,848,960 Source: Pro Pakistani

The International Monetary Fund (IMF) Mission isn't happy with shortcomings in the implementation of the track and trace system by the Federal Board of Revenue (FBR), reliable sources told ProPakistani. These concerns have been shared by the Washington-based lending agency during its current discussions with FBR authorities on tax structure and administration. Sources said the IMF has requested a detailed implementation report on the track and trace system and set a deadline for its complete adoption across five major sectors in the country. The lender has urged for the track and trace system to be fully operational by next fiscal year. While discussions are still at the policy level, both parties have agreed to accelerate reforms to expand the tax net and prevent tax evasion. The IMF Mission will suggest more plans to address revenue shortfall today, sources added. Source: Pro Pakistani

Ghazi Fabrics International Limited (PSX: GFIL) has closed its spinning units until further notice, the textile company informed the main bourse on Tuesday. 'Due to the prevailing economic conditions in the country, increase in power cost and non-availability of quality cotton at an affordable price, it is unable to continue with the production activities. Therefore, the Company has decided to temporarily shut down/close production activities of its Spinning Units till further notice,' the stock filing stated. GFIL further mentioned that for the time being, its weaving unit will remain operative. 'We will continue to monitor the situation for future course of action,' it added. The main activities of the Company are textile manufacturing, production of cotton and P.C. yarn, and grey cloth that are marketed both within and outside Pakistan. Source: Pro Pakistani

Islamabad High Court has temporarily stopped the federal government from initiating the nationwide blocking process of SIMs of over 500,000 non-filers. A notice has been issued to the federal government in this regard, with the next hearing on the matter scheduled for May 27, 2024. IHC Chief Justice Aamir Fariiq issued an injunction in response to a writ petition filed by a prominent telecom operator. The petition challenged Clause 114-B of the Income Tax Ordinance and the Federal Board of Revenue's (FBR) Income Tax General Orders against non-filers. The petitioner argued that the tax regulator's new-found authority violated the fundamental right to freedom of business under Article 18 of the Constitution. He said the government does not have the power to block people's phones under this constitutional provision and called it coercive. The petitioner warned that if implemented, this law would allow the government to deprive citizens of services in other business areas as well. This comes just days after most telecom operators succumbed to government pressure and agreed to initiate the manual blocking process of SIMs in small batches till full automation of the system. Telecom operators last week started sending messages to non-filers regarding the blocking of SIMs for intimation purposes. Source: Pro Pakistani