09282016Wed
Last update: Wed, 28 Sep 2016 08am

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Pakistan National Shipping Corporation (PNSC), the country's national flag carrier reported dismal year end results for FY16 yesterday. Following on its poor 9MFY16 performance the company saw a decrease in revenue of 35 percent for FY16 which is a snapshot of the general state of the shipping industry globally over the past year.
The government is seemingly relaxed on its borrowing pattern right after the exit of the fund programme. There is an SBP act which has clearly defined limitation of federal government borrowing and there was a quantitative target of IMF programme too. The regulation requires net zero government borrowing at the quarter end.
Earlier this month BR Researchs interview with UNDP's outgoing country director in Pakistan, Marc Andre, caught fire in Pakistan. The reason: his epic sound bite that questioned the countrys elite. "Pakistan's elite needs to decide do they want a country or not," Marc fired away in his parting sit down with us. And thus began a nationwide elite bashing by newspaper columnists and TV anchors alike. But would elite-bashing turn this country into a better land?
Berger Paints Pakistan Ltd. (PSX: BERG), one of the leading paint and associated products manufacturer, reported its earnings for the financial year 2016. The earnings per share (EPS) of the company clocked in at Rs10.13, up a massive 68 percent compared to the previous year. The earnings were accompanied by a healthy dividend of Rs4.5 per share.
Pakistan Cables Limited (PCAL) showed a marginal decrease in its top line for FY16 with a drop of 2 percent in revenue as compared to the previous year. This is attributable to the dip in international prices of copper to which PCALs revenue is highly sensitive. The increased competition from domestic as well as Chinese competitors also played a role in this revenue dip. The company registered an impressive 25 percent increase in gross profit as compared to FY15. Marketing and distribution costs also rose by 37 percent indicating an aggressive marketing strategy and show the companys ambitions of expanding market share.
For August 2016, SBP numbers show a rebound in worker's remittances with a 15 percent year-on-year growth, compared to 20 percent decline in July 2016. The two-month aggregates (2MFY17) however show that the overall workers remittances declined by over three percent year-on-year.
While a much larger discussion on GSP plus is crucial given how fast exports are coming down, and how concentrated Pakistani exports remain in a rapidly changing world of value added and innovated goods; the immediate concern for Pakistan at this point is UKs exit from the European Union bloc that invoked the very credible fears amongst exporters here at home that GSP plus concessions may no longer apply to Pakistan's exports to the UK. A Pakistani delegation is now visiting Britain to determine what kind of concessions Pakistan can expect from the UK post brexit.