KARACHI: Pakistani listed companies have given 87 percent more returns to their shareholders in 2021, as compared to the previous year, due to higher income and improved liquidity, a market research report suggested on Monday.
During the outgoing year, the companies listed on the Pakistan Stock Exchange (PSX) paid cash dividends of Rs500 billion to their shareholders, compared to Rs267.6 billion paid in 2020, read a research report issued by Optimus Capital Management, a stock brokerage and financial advisory firm.
The overall cash dividends paid in 2021 were Rs232.2 billion more than the previous year’s. The banking sector topped the list of companies with Rs139 billion, followed by oil and gas exploration firms with more than Rs71 billion.
“There was capping on some companies in 2020 but is was removed in 2021 like Mari Petroleum, which had given Rs800 million in previous year, but in 2021 paid Rs19 billion cash dividends,” Muhammad Mohsin Ahsan, managing director of Optimus Capital management, told Arab News.
The reason for higher banking sector payout was that the “central bank had suspended profit payout in 2020 due to the COVID-19 outbreak, but in 2021 there was no such restriction,” he said.
In 2020, the central bank had directed commercial banks to suspend profit payments in cash or in the form of shares to their shareholders in order to strengthen their capacity to lend and absorb any losses they might incur due to the pandemic.
Analysts said the profitability of companies, mainly listed on PSX, had increased, which was evident from dividend payouts.
“The payout of the companies was increased in 2021 due to the increased profitability and liquidity of companies,” Samiullah Tariq, research director at Pakistan Kuwait Investment Company, told Arab News.
The Pakistani bourse’s benchmark KSE-100 index closed bullish on the first trading day of 2022 on Monday, gaining 290 points to reach the 44,887-point level. It is expected to continue the momentum throughout the year mainly on the back of higher returns.
“The stocks are likely to continue their current momentum though it is not likely to post such higher gains,” Ahsan said.
A total of 195 million shares were traded in the PSX on Monday, which were valued at Rs6.52 billion.
“Stocks closed bullish led by oil and banking scrips on surging global crude oil prices and bond yields on higher inflation,” said Ahsan Mehanti, the chief executive officer (CEO) of Arif Habib Corporation.
“Strong rupee recovery and exports surging by 16.7 percent in December 2021 played a catalyst role in the bullish close.”
Analysts, however, believed the current account deficit and rising inflation would continue to be sources of concerns for investors in 2022.
Pakistani listed companies paid 87% more profit to shareholders in 2021 — report
https://arab.news/89z92
Pakistani listed companies paid 87% more profit to shareholders in 2021 — report
- Companies listed on Pakistan Stock Exchange paid Rs500 billion dividends in 2021, compared to Rs267.6 billion in 2020
- Payouts of these companies increased due to higher profitability and improved liquidity last year, analysts say
US freezes visa processing for 75 countries, media reports Pakistan included
- State Department announces indefinite pause on immigrant visas starting Jan 21
- Move underscores Trump’s hard-line immigration push despite close Pakistan-US ties
ISLAMABAD: The United States will pause immigrant visa processing for applicants from 75 countries starting Jan. 21, the State Department said on Wednesday, with Fox News and other media outlets reporting that Pakistan is among the countries affected by the indefinite suspension.
The move comes as the Trump administration presses ahead with a broad immigration crackdown, with Pakistan included among the affected countries despite strong ongoing diplomatic engagement between Islamabad and Washington on economic cooperation, regional diplomacy and security matters.
Fox News, citing an internal State Department memo, said US embassies had been instructed to refuse immigrant visas under existing law while Washington reassesses screening and vetting procedures. The report said the pause would apply indefinitely and covers countries across Asia, Africa, the Middle East, Europe and Latin America.
“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the Department of State said in a post on X.
According to Fox News and Pakistan news outlets like Dawn, the list of affected countries includes Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil and Thailand, among others.
“The suspension could delay travel, study, and work plans for thousands of Pakistanis who annually seek US visas. Pakistani consulates in the US are expected to provide guidance to affected applicants in the coming days,” Dawn reported.
A State Department spokesman declined comment when Arab News reached out via email to confirm if Pakistan was on the list.
The Department has not publicly released the full list of countries or clarified which visa categories would be affected, nor has it provided a timeline for when processing could resume.
Trump has made immigration enforcement a central pillar of his agenda since returning to office last year, reviving and expanding the use of the “public charge” provision of US immigration law to restrict entry by migrants deemed likely to rely on public benefits.
During his previous term as president, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in US courts before a revised version was upheld by the Supreme Court. That policy was later rescinded under the President Joe Biden administration.
The latest visa freeze marks a renewed hardening of US immigration policy, raising uncertainty for migrants from affected countries as Washington reassesses its screening and vetting procedures.
The freeze on visas comes amid an intensifying crackdown on immigration enforcement by the Trump administration. In Minneapolis last week, a US Immigration and Customs Enforcement (ICE) agent shot and killed 37-year-old Renee Good, a US citizen, during a federal operation, an incident that has drawn nationwide protests and scrutiny of ICE tactics. Family members and local officials have challenged the federal account of the shooting, even as Department of Homeland Security officials defended the agent’s actions. The case has prompted resignations by federal prosecutors and heightened debate over the conduct of immigration enforcement under the current administration.
