Sulman Badshah
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Pakistan operations: HBL shows interest in acquiring Barclays Bank
Barclays Bank is following in the footsteps of HSBC Bank Middle East, which is going to sell its Pakistan operations to Meezan Bank. PHOTO: STOCK IMAGES
KARACHI:
Habib Bank (HBL) is considering entering into negotiations for the acquisition of Barclays Bank’s Pakistan operations, according to a notice sent to the Karachi Stock Exchange (KSE) on Thursday.
HBL intends to commence in due course a due diligence exercise, subject to the approval of the State Bank of Pakistan (SBP), it added.
The proposed acquisition will materialise only after the due diligence exercise, execution of definitive agreements between the parties involved and receipt of all relevant regulatory approvals.
Barclays Bank is following in the footsteps of HSBC Bank Middle East, which is going to sell its Pakistan operations to Meezan Bank. With an asset base of over Rs1.7 trillion, Habib Bank is the largest Pakistani commercial bank in terms of both pre-tax profitability and total assets.
Its pre-tax profit for the six-month period ending on June 30 was Rs22.1 billion, up a massive 39.5% from the comparable period of the preceding year. Habib Bank’s gross profitability was 22% greater than its closest rival whose pre-tax profits clocked up at Rs18 billion for the same period.
With total assets amounting to Rs49.9 billion, Barclays Pakistan was the 28th largest bank operating in the country at the end of the first six months of 2014. Its pre-tax profit for January-June was Rs411.7 million, 67.4% up from the comparable six-month period of the preceding year.
Habib Bank operated 1,546 branches while Barclays Bank ran seven branches at the end of 2013.
HBL employed a little less than 13,000 people at the end of 2013 while the number of employees at Barclays Bank Pakistan was only 247.
However, the cost per staff member at Barclays Bank was significantly higher than the cost per employee at Habib Bank. While Habib Bank incurred a cost per staff member of Rs1.38 million in 2013, Barclays Bank’s average remained Rs2.76 million over the same year.
Nepra admits power generation licence application
ISLAMABAD - National Electric Power Regulatory Authority (Nepra) has admitted electricity generation licence application of Port Qasim Electric Power Company from imported coal.
The company would install two plants of 660 megawatt at Bin Qasim Industrial Park Karachi. The installed capacity of the project is estimated 1221 Megawatts.
The plant would be operated on imported coal with a gross efficiency of 41 percent and net efficiency of 38 percent approximately. The total cost of the project is $2.3 billion out of which 75 percent would be debt and 25 percent would be equity, which would be $1.725 billion and $0.575 billion respectively. According to the documents submitted by the company the generated power would be integrated in national grid through two 500 Kv transmission lines which would be connected to the 500 Kv Matiari Grid Station.
The company has also proposed that it requires a 500 kv grid station at Matiari. It is pertinent to mention that Nepra recently increased upfront tariff for coal based power projects by 12-20 per cent to encourage fresh investment, mostly from China, reportedly. Experts believe that with the lucrative tariff investors would be able to recover full equity investment in less than three and half years. According to Nepra revised tariff, the investors would get a rate of return on equity for imported coal at 27.2pc for 660MW plant. Nepra has invited stakeholders and general public to submit their comments for or against the project in 14 day
On track: Pakistan Railways to acquire new locomotives
The financial position of Pakistan Railways had improved after passenger and freight sectors attracted commuters and cargo. STOCK IMAGE
ISLAMABAD: Pakistan Railways (PR) will procure locomotives of 4000-plus horsepower after a thorough evaluation of technology and manufacturers. These locomotives will play a vital role in strengthening freight operation, according to a PR official,.
The procurement of Hopper Trucks had also been started. The official said the manual-signalling system of Lodhara to Kotri Section was being switched over to the auto-signalling system.
He said the IT Department was being revamped and an IT system will be implemented. He added that a contract for installation of an e-ticketing system has been awarded which will be completed in 10 months.
The official further said that an insurance policy agreement of staff and passengers would also be signed in the near future. To a question, he said the financial position of PR had improved after passenger and freight sectors attracted commuters and traders respectively after several measures taken by the administration.
To another question, he said a project for the rehabilitation of 27 locomotives was also in progress locally. It was expected that two locomotives a month would be rehabilitated and inducted into freight operations.
He said around 100,000 passengers benefitted from 14 special trains run by PR on Eidul Azha. He added that the PR administration had retrieved 3,000 acres of land from encroachers in two phases.
Hydrocarbon search: Pakistan lures Chinese exploration companies
Under the policies, local and foreign investors are being equally treated and up to 100% foreign equity investment is allowed. STOCK IMAGE
KARACHI: The ambassador of Pakistan to China has wooed Chinese companies to explore and establish joint ventures with local petroleum companies and highlighted the encouraging success rate of oil and gas discoveries in the country.
“Many foreign companies have benefitted from the enabling environment for prospective investors in Pakistan,” Ambassador Masood Khalid stressed while speaking at the Pakistan Oil and Gas Promotion Conference in Beijing on Friday.
The conference, jointly arranged by the China Overseas Investment Union and Pakistan’s embassy in Beijing, showcased the country’s massive hydrocarbon potential in an effort to stimulate Chinese investment.
Khalid drew the attention of investors, who were present in large numbers, to the plentiful opportunities on offer in the exploration and production of coal, shale gas, minerals and oil.
He said Pakistan’s oil and gas sector had developed considerably in recent years with a liberal investment regime for foreign investors.
Under the policies, local and foreign investors are being equally treated and up to 100% foreign equity investment is allowed. Remittance of royalty, dividends, capital and profits is also permitted and foreign investment is fully protected.
The envoy also underscored the importance of Pakistan’s ideal location for trans-regional trade and investment because of its unique geography, saying it provided the cheapest and most viable sea route from western China to Central Asia, Middle East and Africa.
“Pakistan is naturally positioned to serve as the energy and trade corridor for China and the Gwadar Port provides the channel for transporting goods and supplying energy to and from China.”
The deep-sea port once fully developed and operational could not only meet urgent energy needs of China, but would do that in the most efficient way, Khalid said, adding an oil terminal and a refinery would be set up soon in addition to establishing primary infrastructure in Gwadar.
China Overseas Investment Union Executive Director Zheng Shuai expressed the hope that the incentives would encourage more Chinese oil and gas companies to venture into Pakistan’s hydrocarbon sector.
CASA-1000: Islamabad, Kabul sign accord on electricity transit fees
Finance Minister Ishaq Dar (C) and Afghan Minister for Finance Dr Omar Zakhilwal (R) exchange the CASA-1000 electricity tariffs after signing an agreement in Washington on Saturday. PHOTO: PID
WASHINGTON:
Pakistan on Saturday signed an agreement with Afghanistan on electricity transit fees in what Finance Minister Ishaq Dar described as a major step towards closer partnership between the two countries.
World Bank President Jim Yong Kim and US Special Representative for Afghanistan and Pakistan Dan Feldman witnessed the signing ceremony at the World Bank’s Headquarters.
“It’s a win-win for both countries,” Dar said about the accord that will allow the supply of Central Asian electricity to Pakistan through Afghan territory for a transit fee of 1.25 cents per KW.
The accord was welcomed by the WB president as a success towards both meeting Pakistan’s power requirements and establishing commercial arrangements for the trade of 1,300MW of electricity between the Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan as part of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000).
Finance Minister Dar expressed appreciation for World Bank, the US State Department and USAID for their support for the landmark project. “This marks a new beginning towards greater economic cooperation between the two countries… Pakistan is committed to greater economic and trade cooperation with Afghanistan,” he said.
Afghan Finance Minister Omar Zakhilwal said Afghanistan was ready to realise the CASA-1000 vision and improve energy security and trade for the two countries and the region.
Dar meets DFID
Finance Minister Senator Ishaq Dar also met British Secretary of State for International Development (DFID) Justine Greening in Washington on Saturday and informed her about losses caused due to the recent floods and the military operation in North Waziristan Agency.
According to a statement issued by the finance ministry, Dar told Greening that the government gave a chance to dialogue till the very end but failed to get positive results and that was why it had to go for the operation in North Waziristan which was supported by all segments of the society.
The operation, codenamed Zarb-e-Azb, he said, would incur a huge financial bill, especially for the rehabilitation stage costing the national exchequer close to $1.5-2 billion.
The government at present was helping the affected in the form of food, other amenities and cash for their sustenance, he added.
The finance minister apprised Greening of the recent meeting in Islamabad in which many of the international agencies and friendly countries suggested to appeal to the international community for assistance in taking care of the flood losses.
He said a UN sponsored Rehabilitation Need Assessment (RNA) would be conducted by October 30, to estimate the losses. Despite all odds, the minister noted that the government’s plan of economic revival was on track and all economic indicators were positive.
Speaking on the occasion, Greening said she looked forward to the visit and appreciated the government’s handling of the protestors in Islamabad and continued progress on the economic front, despite all odds.
She claimed that the people of Pakistan were keeping faith in the government they have elected and that the government was moving in the right direction despite disruptive politics.
She offered to join hands with the government of Pakistan to boost investor confidence.
She said the tax reforms undertaken by Pakistan were very well received in the UK. She also appreciated the efficacy of the Income Support Fund, which targets the most vulnerable segment of the society.
Barclays Bank is following in the footsteps of HSBC Bank Middle East, which is going to sell its Pakistan operations to Meezan Bank. PHOTO: STOCK IMAGES
KARACHI:
Habib Bank (HBL) is considering entering into negotiations for the acquisition of Barclays Bank’s Pakistan operations, according to a notice sent to the Karachi Stock Exchange (KSE) on Thursday.
HBL intends to commence in due course a due diligence exercise, subject to the approval of the State Bank of Pakistan (SBP), it added.
The proposed acquisition will materialise only after the due diligence exercise, execution of definitive agreements between the parties involved and receipt of all relevant regulatory approvals.
Barclays Bank is following in the footsteps of HSBC Bank Middle East, which is going to sell its Pakistan operations to Meezan Bank. With an asset base of over Rs1.7 trillion, Habib Bank is the largest Pakistani commercial bank in terms of both pre-tax profitability and total assets.
Its pre-tax profit for the six-month period ending on June 30 was Rs22.1 billion, up a massive 39.5% from the comparable period of the preceding year. Habib Bank’s gross profitability was 22% greater than its closest rival whose pre-tax profits clocked up at Rs18 billion for the same period.
With total assets amounting to Rs49.9 billion, Barclays Pakistan was the 28th largest bank operating in the country at the end of the first six months of 2014. Its pre-tax profit for January-June was Rs411.7 million, 67.4% up from the comparable six-month period of the preceding year.
Habib Bank operated 1,546 branches while Barclays Bank ran seven branches at the end of 2013.
HBL employed a little less than 13,000 people at the end of 2013 while the number of employees at Barclays Bank Pakistan was only 247.
However, the cost per staff member at Barclays Bank was significantly higher than the cost per employee at Habib Bank. While Habib Bank incurred a cost per staff member of Rs1.38 million in 2013, Barclays Bank’s average remained Rs2.76 million over the same year.
Nepra admits power generation licence application
ISLAMABAD - National Electric Power Regulatory Authority (Nepra) has admitted electricity generation licence application of Port Qasim Electric Power Company from imported coal.
The company would install two plants of 660 megawatt at Bin Qasim Industrial Park Karachi. The installed capacity of the project is estimated 1221 Megawatts.
The plant would be operated on imported coal with a gross efficiency of 41 percent and net efficiency of 38 percent approximately. The total cost of the project is $2.3 billion out of which 75 percent would be debt and 25 percent would be equity, which would be $1.725 billion and $0.575 billion respectively. According to the documents submitted by the company the generated power would be integrated in national grid through two 500 Kv transmission lines which would be connected to the 500 Kv Matiari Grid Station.
The company has also proposed that it requires a 500 kv grid station at Matiari. It is pertinent to mention that Nepra recently increased upfront tariff for coal based power projects by 12-20 per cent to encourage fresh investment, mostly from China, reportedly. Experts believe that with the lucrative tariff investors would be able to recover full equity investment in less than three and half years. According to Nepra revised tariff, the investors would get a rate of return on equity for imported coal at 27.2pc for 660MW plant. Nepra has invited stakeholders and general public to submit their comments for or against the project in 14 day
On track: Pakistan Railways to acquire new locomotives
The financial position of Pakistan Railways had improved after passenger and freight sectors attracted commuters and cargo. STOCK IMAGE
ISLAMABAD: Pakistan Railways (PR) will procure locomotives of 4000-plus horsepower after a thorough evaluation of technology and manufacturers. These locomotives will play a vital role in strengthening freight operation, according to a PR official,.
The procurement of Hopper Trucks had also been started. The official said the manual-signalling system of Lodhara to Kotri Section was being switched over to the auto-signalling system.
He said the IT Department was being revamped and an IT system will be implemented. He added that a contract for installation of an e-ticketing system has been awarded which will be completed in 10 months.
The official further said that an insurance policy agreement of staff and passengers would also be signed in the near future. To a question, he said the financial position of PR had improved after passenger and freight sectors attracted commuters and traders respectively after several measures taken by the administration.
To another question, he said a project for the rehabilitation of 27 locomotives was also in progress locally. It was expected that two locomotives a month would be rehabilitated and inducted into freight operations.
He said around 100,000 passengers benefitted from 14 special trains run by PR on Eidul Azha. He added that the PR administration had retrieved 3,000 acres of land from encroachers in two phases.
Hydrocarbon search: Pakistan lures Chinese exploration companies
Under the policies, local and foreign investors are being equally treated and up to 100% foreign equity investment is allowed. STOCK IMAGE
KARACHI: The ambassador of Pakistan to China has wooed Chinese companies to explore and establish joint ventures with local petroleum companies and highlighted the encouraging success rate of oil and gas discoveries in the country.
“Many foreign companies have benefitted from the enabling environment for prospective investors in Pakistan,” Ambassador Masood Khalid stressed while speaking at the Pakistan Oil and Gas Promotion Conference in Beijing on Friday.
The conference, jointly arranged by the China Overseas Investment Union and Pakistan’s embassy in Beijing, showcased the country’s massive hydrocarbon potential in an effort to stimulate Chinese investment.
Khalid drew the attention of investors, who were present in large numbers, to the plentiful opportunities on offer in the exploration and production of coal, shale gas, minerals and oil.
He said Pakistan’s oil and gas sector had developed considerably in recent years with a liberal investment regime for foreign investors.
Under the policies, local and foreign investors are being equally treated and up to 100% foreign equity investment is allowed. Remittance of royalty, dividends, capital and profits is also permitted and foreign investment is fully protected.
The envoy also underscored the importance of Pakistan’s ideal location for trans-regional trade and investment because of its unique geography, saying it provided the cheapest and most viable sea route from western China to Central Asia, Middle East and Africa.
“Pakistan is naturally positioned to serve as the energy and trade corridor for China and the Gwadar Port provides the channel for transporting goods and supplying energy to and from China.”
The deep-sea port once fully developed and operational could not only meet urgent energy needs of China, but would do that in the most efficient way, Khalid said, adding an oil terminal and a refinery would be set up soon in addition to establishing primary infrastructure in Gwadar.
China Overseas Investment Union Executive Director Zheng Shuai expressed the hope that the incentives would encourage more Chinese oil and gas companies to venture into Pakistan’s hydrocarbon sector.
CASA-1000: Islamabad, Kabul sign accord on electricity transit fees
Finance Minister Ishaq Dar (C) and Afghan Minister for Finance Dr Omar Zakhilwal (R) exchange the CASA-1000 electricity tariffs after signing an agreement in Washington on Saturday. PHOTO: PID
WASHINGTON:
Pakistan on Saturday signed an agreement with Afghanistan on electricity transit fees in what Finance Minister Ishaq Dar described as a major step towards closer partnership between the two countries.
World Bank President Jim Yong Kim and US Special Representative for Afghanistan and Pakistan Dan Feldman witnessed the signing ceremony at the World Bank’s Headquarters.
“It’s a win-win for both countries,” Dar said about the accord that will allow the supply of Central Asian electricity to Pakistan through Afghan territory for a transit fee of 1.25 cents per KW.
The accord was welcomed by the WB president as a success towards both meeting Pakistan’s power requirements and establishing commercial arrangements for the trade of 1,300MW of electricity between the Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan as part of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000).
Finance Minister Dar expressed appreciation for World Bank, the US State Department and USAID for their support for the landmark project. “This marks a new beginning towards greater economic cooperation between the two countries… Pakistan is committed to greater economic and trade cooperation with Afghanistan,” he said.
Afghan Finance Minister Omar Zakhilwal said Afghanistan was ready to realise the CASA-1000 vision and improve energy security and trade for the two countries and the region.
Dar meets DFID
Finance Minister Senator Ishaq Dar also met British Secretary of State for International Development (DFID) Justine Greening in Washington on Saturday and informed her about losses caused due to the recent floods and the military operation in North Waziristan Agency.
According to a statement issued by the finance ministry, Dar told Greening that the government gave a chance to dialogue till the very end but failed to get positive results and that was why it had to go for the operation in North Waziristan which was supported by all segments of the society.
The operation, codenamed Zarb-e-Azb, he said, would incur a huge financial bill, especially for the rehabilitation stage costing the national exchequer close to $1.5-2 billion.
The government at present was helping the affected in the form of food, other amenities and cash for their sustenance, he added.
The finance minister apprised Greening of the recent meeting in Islamabad in which many of the international agencies and friendly countries suggested to appeal to the international community for assistance in taking care of the flood losses.
He said a UN sponsored Rehabilitation Need Assessment (RNA) would be conducted by October 30, to estimate the losses. Despite all odds, the minister noted that the government’s plan of economic revival was on track and all economic indicators were positive.
Speaking on the occasion, Greening said she looked forward to the visit and appreciated the government’s handling of the protestors in Islamabad and continued progress on the economic front, despite all odds.
She claimed that the people of Pakistan were keeping faith in the government they have elected and that the government was moving in the right direction despite disruptive politics.
She offered to join hands with the government of Pakistan to boost investor confidence.
She said the tax reforms undertaken by Pakistan were very well received in the UK. She also appreciated the efficacy of the Income Support Fund, which targets the most vulnerable segment of the society.
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