Pakistan Economy - News & Updates - Archive

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HEC up for grabs through acquisition of 90pc shares ​

Wednesday, June 04, 2008

ISLAMABAD: A pre-bid meeting of pre-qualified bidders for the privatisation of Heavy Electrical Complex (HEC) through the acquisition of minimum 90 per cent shares, together with management control on ‘as is, where is’ basis, was held here on Tuesday under the chairmanship of Ahmed Jawad, Secretary Privatisation Commission.

Most of the participating pre-qualified parties in the pre-bid moot have already completed the important phase of due diligence of the transaction in the data room. So far three parties have completed the due diligence while two parties are in the process.

The five pre-qualified parties include ABB (Pvt) Limited, Switzerland; Areva T&D Holdings Ltd, SA France; Pak Elektron Limited (PEL); Siemens (Pakistan) Engineering Company Limited, Karachi and Iljin Heavy Industries Company Limited, Korea. During the pre-bid moot, the potential bidders were briefed about the bidding process and the queries made by them were responded accordingly.

HEC is one of the industrial units of State Engineering Corporation (SEC) engaged in the manufacturing of power transformers of different types (total annual capacity 3000 MVA) with a primary voltage rating of 66 and 132 KV. In addition, the HEC undertakes repair and refurbishment of old and damaged power transformers up to 500 KV.

The Purchaser shall continue to operate the company’s manufacturing facility and shall not in any way abandon, cease to operate or otherwise shutdown the existing Company manufacturing facility. The Purchaser will not in any form or manner dispose off, alienate transfer any or all land in the name of the Company without prior consent of the Privatisation Commission (PC).

The cost of Golden Hand Shake Scheme (GHS) for permanent workers and Voluntary Separation Scheme (VSS) for the executives will be shared equally between the new buyer and the PC. The bidder shall bid on the basis of audited accounts of June 2006 and may also factor the latest un-audited accounts available prior to the bidding. The loan from the Government of Pakistan amounting to Rs1.002 billion will be written back in the books of HEC and the tax impact after adjustment brought forward losses of Rs376.708 million shall be borne by the PC.

HEC up for grabs through acquisition of 90pc shares

 

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Technology institute to produce wind energy ​

Wednesday, June 04, 2008

KARACHI: Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST) has planned to produce 100MW of wind energy for commercial purpose at its Gharo Campus, an appropriate site for generating power through wind.

The project report will be completed in the next one month. This was approved in the Board of Governors (BoG) meeting of SZABIST on Saturday, whereas BoG appreciated the efforts by SZABIST for generating energy through wind and solar sources.

The BoG also approved the expansion plan of the construction of its purpose built campus in Clifton, Karachi, where construction will be completed within 15 months. In addition to the Karachi Campus, expansion plans for Larkana and Dubai Campuses were also approved, along with the relocation to its new premises in Sector H-8.

Dr Javed Laghari, President of SZABIST said that they are determined to stand steadfast to carry on the vision of SZABIST for quality education and to make it an institution worthy of carrying forward the great names of Shaheed Zulfikar Ali Bhutto and Shaheed Mohtarma Benazir Bhutto.

Dr Azra Fazal, Chancellor SZABIST, Dr Javed Laghari, President SZABIST, Aftab Shahban Mirani, Barrister Kamal Azfar and others attended the Board of Governors’ meeting.

Technology institute to produce wind energy

 

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Body to review Rs30bn package for textile​

ISLAMABAD, June 3: Faced with a soaring budget deficit, the government on Tuesday constituted a high- level committee to review the economic implications of the proposed Rs30 billion cash subsidy package for the textile exporters, Dawn has learnt.

The package is designed to subsidise consumer prices of textile and clothing products for their sale in the markets of rich countries.

The government has already doled out more than Rs32 billion to the textile exporters during the last over two years under the head of six per cent research and development (R&D) subsidy, which is expected to reach Rs50 billion by end of the current year.

Sources told Dawn that the committee was constituted following the serious reservations from some ministers, who objected the continuation of cash subsidy for the next fiscal year saying the dolling out of subsidies did not help in increasing the exports from the sector.

The package recommended by the ministry of textile was discussed at length at the Economic Coordination Committee (ECC) meeting headed by Prime Minister Yousuf Raza Gilani on Tuesday, which led to the formulation of the committee.

The committee includes representatives of textile, commerce, and Federal Board of Revenue and governor State Bank of Pakistan.

The sources said that after claiming huge cash subsidy, concessions on bank loan rates and also on export refinance in last few years, the pace of growth in textile exports did not accelerate, which remained stagnant at four per cent between April 2005 and Jan 31, 2008. However, the exports witnessed a negative growth since February last.

The sources said that the government was facing problem of financial accumulation to increase the share of provinces in the divisible pool in the next budget, while the textile exporters were demanding this hefty package at a time when government is desperate for arranging subsidy for curtailing the rising prices of essential food items.

Under the proposed package, the textile industry has proposed 3 per cent rebate on exports of garments worth above $25 million, 2.5 per cent for home textile, while it will go up to 9 per cent in case of exports worth $200 million.

The sources said that textile industry had just changed the concept from the 6 per cent R&D cash subsidy to the special duty drawback rates in a way to avoid criticism from people, who are raising concerns for diverting taxpayers’ money for financing the rich countries’ consumer purchasing power.

The sources said that not a single unit was added to the existing strength of textile mills, and instead a large amount of subsidies was allegedly diverted to set up industries in other sectors i.e. cement, sugar and power generation. Similarly, import of textile machinery is also on the decline for the last couple of years.

Analysts said the new government should revisit the policy of subsidies, which should be result-oriented and be linked with increase in export proceeds. It should also be linked with enhancement of competitiveness of products and introduction of new products.

Body to review Rs30bn package for textile -DAWN - Business; June 04, 2008

 

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Extra 1500 megawatts generation: Rs 15 billion to be spent every month ​

ISLAMABAD (June 04 2008): The government will spend about Rs 15 billion per month for generating additional electricity of 1500 MW to ensure provision of electricity to industrial and agriculture units from June 15. "We need Rs 15 billion a month to generate the much needed electricity," said minister for water and power Raja Pervez Ashraf while talking to Business Recorder here on Tuesday.

The minister also confirmed that federal budget for next fiscal year would be announced on June 10 as the Prime Minister is due to leave for Saudi Arabia on an official visit. The PPP parliamentary party meeting, which was held prior to National Assembly session, discussed the upcoming budget for providing relief to poor against dearness.

He said that parliamentary party had given some suggestions for the next budget. While some members expressing concern over inflation wanted the government to take strict measures to control dearness, it was learnt. Pervez Ashraf disclosed that the Prime Minister had agreed to water and power ministry's proposal of generating more electricity from the existing plants. "Bulk of additional electricity will be provided to industrial and agriculture sectors so that their output could be enhanced," he said. The national grid will have around 1000 MW additional electricity from the existing plants both in public and private sectors, he claimed.

A high-level inter-ministerial meeting held here the other day, approved the plan of reducing the quantum of load management by about two hours daily. The meeting approved the 1000 MW additional electricity generation from June 10.

The water and power ministry has directed the Independent Power Producers (IPPs) and public sector power plants and MD, Pakistan Electric Power Company (Pepco) to take immediate measures to meet the target to generate additional 1000 MW from Gencos and IPPs.

The minister said that the power generation companies (Gencos) had already been directed to keep their plants in order on maximum capacity and no shutdown on minor faults will be allowed. He was of the view that today the country was facing shortage of about 4000 MW electricity which has affected the economy and all segments of society.

He said that the country would have no power shortage next year as the government has started working on multi-pronged strategy that includes installation of rental power plants, minimising line losses, conservation of energy, and generating more power from existing power plants.

Pervez Ashraf said that next budget would be people as well as business-friendly. "The government will take measures to provide maximum possible relief to the common man while living within affordable fiscal space," he added. "We have inherited most of the ills including power shortage, budget overrun, and inflation from the previous government, but efforts are afoot to improve the situation," he added.

Business Recorder [Pakistan's First Financial Daily]

 

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Energy saving: most of Enercon proposals turned down by Cabinet ​

ISLAMABAD (June 04 2008): Most of the proposals floated by National Energy Conservation Centre (Enercon) to save energy have been rejected by the Cabinet, sources told Business Recorder, here on Tuesday. Sources said that Enercon presented about 35 proposals to the Cabinet on May 7, 2008.

But the conservation plan to reduce loadshedding announced by the Cabinet on May 15 did not include any of them. "Out of 35 proposals our emphasis was mainly on the introduction of five-day working week in government offices to save 828MW of electricity in addition to huge cut in gas and transport bills, but it was rejected," sources maintained.

Source opined that the government doesn't give any satisfactory or a logical answer to Enercon queries. For five working days the government officials said that it would be 'politically expensive' for the government. Beside this five working days a week would give an impression of having 'fun' by announcing more holidays.

Sources said that as per the recommendations, the Ministry of Industries would introduce energy efficient water heaters/geysers by June 30; there shall be complete ban on import of more than 5 years old boilers; since the steel industry is presently consuming 700 kWh/ton energy as compared to 250 kWh/ton internationally, therefore, incentivised promotion of high efficiency electric 'arc furnaces' with minimum 50 tons capacity shall be launched.

About 100 textile units would be made energy-efficient, within 100 days of newly-elected government, through capacity building of engineers/technicians; the Minfal and provincial departments may be directed to undertake mandatory energy audit of tubewells and water pumping stations through consultancy services by Enercon.

Pepco will reduce line losses by 1 percent for achieving 100MW savings; line losses in gas transmission and distribution system will be reduced by 0.5 percent for nearly a billion rupees saving. The Ministry of Petroleum and Natural Resources will finally launch the project for replacing inefficient domestic burners in 10 major cities, benefiting over 3 million middle and lower middle class consumers.

The Federal Board of Revenue may allow import of only energy-efficient and duly labelled appliances as per approved standards; the Ministry of Industries will instruct chambers to encourage use of 'Time of Use (TOU)' meters for maximum utilisation of off-peak hours.

The government may grant one-time exemption on import duty for 10 million energy savers for free distribution through Discos of 2 million bulbs to charity institutions and low income segment of society and the rest on credit with recovery through utility bills on instalments.

Five-year tax holiday may be granted for domestic industry on energy savers local manufacture, tariff facilitation may be provided by the FBR for import of needed inputs eg insulation, HVAC and other materials/appliances.

Sources further said that even nothing yet has been done under Prime Minister's 100 days plan of action for energy conservation. According to the plan 10 million energy saver light bulbs would be purchased by the government and installed throughout the country but no worth mentioning progress has been seen as yet, sources said.

Business Recorder [Pakistan's First Financial Daily]

 

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It's going to be Rs 2.25 trillion budget ​

ISLAMABAD (June 04 2008): The federal cabinet is being presented Rs 2.25 trillion federal budget 2008-09, for overview in its meeting scheduled for Wednesday, June 4. Prime Minister Syed Yusuf Raza Gilani will chair the meeting. Sources said the cabinet will be given a detailed presentation on upcoming budget, being unveiled on June 10.

The budget makers will brief the cabinet on economic growth in the current fiscal year and projections and expectations for 2008-09. They will brief the cabinet about performance of key sectors of the economy in 2007-08. It would include results of trade with global partners, remittances, revenue collection, GDP growth, individual outcome of agriculture, manufacturing and other key sectors of the economy. The budget makers will also inform the cabinet about the challenges the economy was facing due to high oil prices and the ongoing global food crisis.

The cabinet will also be informed about the strategy to be followed for quick adjustments in different sectors of the economy for better performance in 2008-09.

The budget makers have already set a Public Sector Development Programme (PSDP) at Rs 541 billion for the next fiscal year, besides fixing an ambitious revenue target of Rs 1.25 trillion for the Federal Board of Revenue (FBR).

The cabinet will also be briefed on Pakistan's exports in the last fiscal year. The government is facing huge trade deficit due to poor performance on export front and its one of the factors posing serious threat to Pakistan's economy. FBR chairman Abdullah Yusuf will brief the cabinet on revenue collection figures. FBR is on target to meet downward revised target of Rs 990 billion but the government would like better performance to achieve comparatively tough target of Rs 1.25 trillion in 2008-09.

The meeting will also be informed of the decisions taken to protect the poor from unprecedented price hike. It will be briefed on the possible increase in the government employees' salaries and pensions as a part of the relief package. The government is likely to raise the government employees' salaries by 20 percent in the budget.

Business Recorder [Pakistan's First Financial Daily]

 

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Japan wants to invest Rs 191 billion in Karachi sewerage treatment plan ​

KARACHI (June 04 2008): Japan has shown interest to invest Rs 191 billion in Karachi Sewerage Master Plan (KSMP), which would treat 555 million gallons per day (mgd) sewage water before discarding into the sea.

With a view to eliminate environmental hazards and make pollution-free sea belt, the Sindh government has invited representatives of Japan International Corporation Agency (Jica) to provide professional expertise in this regards, with financial assistance.

Sources told Business Recorder on Tuesday that the Jica was handed over the proposal to invest in water sector at a meeting with the officials of Sindh government. They said that Japan is very keen to invest in this sector for improving sewerage system with sufficient treatment capacity. After conducting analytical survey, Jica has chalked out a comprehensive strategy to improve the sewerage water capacity, which at present is 42.6 mgd, sources said and expressed hope that after its effective implementation the treatment capacity would be increased to 555 mgd, which is expected to be the demand of Karachiities by 2025.

Sources expressed fears about seafood business situation, saying that it would only improve when disposal of sewage water controlled. They termed it as the chief cause of the recurrent ban imposed by European countries on seafood exports. The bulk of sewerage water being discarded into sea without proper treatment is creating hazards for marine life and causing huge losses to national exchequer besides, they said.

For this purpose, Jica has proposed to construct new sewer on an area of 4140 hectares and cover three towns to minimise the losses. Sources said that Jica representatives have stressed the need of replacing present sewerage water mains to improve water treatment capacity with new ones, and added that Jica has planned to construct new branch sewer, trunk and sub-main sewer, and place 320 km of new sewerage pipes.

They said that no environmental impact could be expected; rather the project would improve overall environmental conditions of the city's beaches, and urged the industry sector to play their role in making pollution-free seaside, besides paving the way to comply WTO, EU, USA, ISO and EPA standards in this regard.

They said that due to lack of Karachi Water and Sewerage Board (KW&SB) autonomy in the day to day operations, it had failed to facilitate its consumers at maximum. They said that Karachi has three sewerage water treating plants including, TP-I, TP-II, TP-III from 150 mgd water, owing to inadequate sewerage mains and only 90 mgd water was being treated out of total sewerage water. Therefore, it has been proposed to enhance the capacity of treatment plants from 150 mgd sewerage water to 300 mgd soon, and upgradation work for treatment plants would be expected to commence shortly, they said.

"This project will also help to eliminate obstacles, which fishery units are facing due to contaminated and untreated sewerage water", they said. It is also planned to process all Karachi sewerage water through these treatment plants and use treated water for horticulture and agriculture purposes, they added.

Business Recorder [Pakistan's First Financial Daily]

 

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Energy conservation, clean water initiatives: US to provide $330 million aid ​

ISLAMABAD (June 04 2008): The US will be providing 330 million dollars assistance for various projects in the country. While 30 million-dollar assistance will be for energy efficiency and energy conservation, 300 million dollars for technical assistance and clean water initiatives in Pakistan.

US Ambassador Anne W. Patterson announced this at a high level meeting held here on Tuesday chaired by Federal Minister for Environment Hameedullah Jan Afridi. Addressing the participants, who included high officials of Ministry of Environment, National Energy Conservation Centre (Enercon) and US Embassy, Afridi said that the regulatory and enforcement mechanism had been put in place for tackling the environmental issues at Federal and provincial level.

He said that under Islamabad Green City Programme, launched by the ministry, there was plan to relocate the industries of I-9 sectors to some other suitable location. The minister said that the reason behind relocating the I-9 sector was that this industrial area housed eight steel furnaces, which emitted more than one ton of particulate matter each day, which, no doubt, was affecting the health of the residents badly.

Afridi maintained that the signing of memorandum of understanding (MoU) with the US government would help formulate comprehensive plans and programme to tackle industrial, air and marine pollution in Pakistan.

He said that the ministry would declare the 2009 as the national year of environment on the special event of World Environment Day. The minister told the US Ambassador that Enercon was established with the financial assistance of the US government. He appreciated the US assistance in the areas of energy conservation and forestry sector development, particularly during 1960 and 1990.

It was also emphasised that the recent report of the World Bank estimates that annual cost of environmental degradation is Rs 365 billion per year or a billion per day, which amounts to six percent of the gross domestic product (GDP).

The US Ambassador told participants that the US experts on die-safety and bio-security would be visiting Pakistan soon to interact with the Ministry of Environment to seek further cooperation in the areas of environment. She said that she would expedite the progress on the MoU as per understanding reached in the previous meetings.

Business Recorder [Pakistan's First Financial Daily]

 

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Ministry of Science, Technology to get over Rs three billion: 146 projects proposed for 2008-09 ​

ISLAMABAD (June 04 2008): The Ministry of Science and Technology would get about Rs 3, 015 million allocation for 146 projects proposed for 2008-09 against the previous allocation of Rs 3, 600.693 million. This was informed to the Senate Standing Committee on Science and Technology at a presentation given by the ministry at a committee meeting held with its chairman Rozina Alam Khan in the chair here on Tuesday.

According to the presentation, Rs 14, 338.286 million of the previous budgetary allocation was spent till April and the expected expenditure up to end of the June 2008 would be Rs 24, 10.592 million.

The Chairperson, Senator Razina Alam Khan and members of the Committee observed that the funds utilisation capacity of the Ministry and organisations under its administrative control must be increased. They said their linkages with the industrial and agricultural sectors along with the respective Chambers of Commerce are absolutely vital for overall economic development.

The Committee opined that the nation is pinning great hopes on the Ministry of Science and Technology, adding that it has the potential to change the fate of an average Pakistani by helping in areas vital to our survival like energy and agriculture.

The Committee stressed the need for development of indigenous technologies and asked the ministry not to sign any agreement in future without ensuring transfer of technology. It also called for greater co-ordination among research institutes, which should try to generate funds on their own. It urged an integrated approach and broader futuristic vision to hasten our transition to economic prosperity.

Among others, the meeting was attended by Senators Professor Muhammad Ibrahim Khan, Dr Muhammad Said and Rehana Yahya Baloch besides senior officials of the Ministry of Science & Technology.

Business Recorder [Pakistan's First Financial Daily]

 

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Rs 500m allocated for Thar coal development in PSDP​

ISLAMABAD: Current power crisis has forced the government to switch to coal based power generation, and Rs 500 million is allocated in the Public Sector Development Programme 2008-09 for Thar Coal Infrastructure Development.

Government would develop infrastructure, including road network to access the Thar coal reserves. This is the new project that government would launch during the coming financial year and the decision has been taken to generate electricity from Thar coal reserves, which is not only cheap but will also help overcoming power shortfall.

This is a huge allocation in the Petroleum and Natural Resources Division, as the government allocated Rs 850 million for 19 development projects. Out of total allocation, Rs 500 million has been allocated for this project.

The total cost of the project has been estimated at Rs 1 billion and government would generate money from its own resources. Government has also allocated Rs 22.696 million for the ongoing project of National Coal Policy. The total estimated cost of the project is Rs 23 million. Government has also allocated Rs 35 million for the ongoing project of Feasibility Study Gasification of Thar Coal. The total cost of the project has been estimated at Rs 126.649 million.

Government has also decided to explore the coal reserves in Balochistan province and has allocated Rs 10 million for exploration and evaluation of coal fields of chamalang dhaka, bahlol and parts of ghazi coal basin in Balochistan. The total cost of the project has been estimated at Rs 30 million. Government is also set to start the exploration of coal reserves in Azad Kashmir and has allocated Rs 4.022 million for the exploration for coal in kotli. The total cost of the project has been estimated at Rs 20 million.

Other ongoing projects include: feasiblity study for development and exploration of Chichali Iron Ore and comissioning of steel mill at Kalabagh, Rs 5 million, geo-hydrological exploration for development of underground water in Hamun-e-Mushkil, Chaghi District Balochistan Rs 15 million, Establishment of Project Management Unit for PHRD Rs 5 million, Strengthening and Capacity Building of Mineral Wing Rs 10 million, Capacity Building for Hydrocarbon Research and Development Islamabad Rs 26.320 million.

Daily Times - Leading News Resource of Pakistan

 

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ESSAR Group interested in energy, steel, shipping sectors​

ISLAMABAD: ESSAR Group, one of the largest corporate houses of India with an enterprise value of $15 billion, has expressed its interest to invest in Pakistan’s energy, steel and shipping sectors.

The Prime Minister, Syed Yousuf Raza Gilani while talking to a delegation of the ESSAR Group headed by Shashi Ruia and Ravi Ruia, said Pakistan was open to business and Foreign Direct Investment (FDI), which was fully protected under the laws of the country.

Almost all sectors of our economy allow FDI and there is no discrimination between foreign and local investment as no government sanction is required in either case, the Prime Minister added.

He said Pakistan offers a liberal and attractive package of incentives as 100 percent foreign equity is allowed and there is no restriction on remittances of royalty, technical and franchise fee, capital, profits and dividends.

Gilani said since Pakistan is deficient in electricity, it would welcome investment in power generation especially in developing the Thar Coal reserves. He said other attractive areas of investment include telecom, steel, real-estate construction and electronics.

He said Pakistan is surplus in cement production and would like to export it to its neighbouring countries.

PM said he would soon announce the government’s power policy, which would contain incentives to attract foreign investment.

Daily Times - Leading News Resource of Pakistan

 

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High PSDP to boost cement sector’s earnings​

Thursday, June 05, 2008

KARACHI: Cement sector profitability is expected to grow by 11 per cent in fiscal year 2008-09 with record Public Sector Development Programme (PSDP) of Rs541 billion for fiscal year 2008-09, up four per cent from current year’s Rs520 billion, and rising exports, the JS Research report says.

The research house expects cement sales to increase by 25 per cent to 30-30.5 million tonnes. Going forward FY09, sales would increase by 10 per cent to reach 33.0-33.1 million tonnes. The construction growth will continue to surpass targets of FY08 and FY09, JS said.

Shortage of cement in India, Afghanistan, South Africa, Sri Lanka and Middle East will keep the export market strong.

Cement sector saw massive export sales growth in 2007-08. However, profitability of the cement sector fell 69 per cent in 9-months Jul-Mar FY08. Price war caused revenues to decline, negatively impacting net profits, JS said.

Similar to Budget FY 07-08, it is expected that government would announce a number of infrastructure development projects like extending of existing dams and building of new ones.

NEC has already allocated Rs166 billion for the infrastructure sector and Rs10 billion has been allocated for the national program to develop 314 small dams across the country. The program is estimated to take over four years to complete and its total cost to stand around Rs54 billion.

A slight cut in allocation of funds for infrastructure development programmes will not hamper cement sales since demand is mainly generated by private sector projects and exports. On the other hand, further fund allocation for much needed dams can boost cement sales in the long run, JS said.

High PSDP to boost cement sector’s earnings

 

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KSE jumps 610 points on CGT exemption extension ​

Thursday, June 05, 2008

KARACHI: The Karachi stocks market overwhelmingly welcomed the government decision of extending the exemption of Capital Gain Tax (CGT) on securities transaction for another two years.

It is well reflected with the opening of the market with 400 points plus and closing of the session with more than 600 points plus. Moreover, more than six-dozen stocks closed on their upper lock of five per cent or Re1 - which ever is the highest.

KSE 100-share Index recovered another 610 points or 4.9 per cent in a single session and closed at 13,89.50 points on Wednesday.

The free-float market capitalisation based 30-Index posted a massive increase of 723 points of almost five percent and concluded at 15,362 points.

As a matter of record, the day gain of 610 points is the second highest historical rise following 696 points jump was witnessed on December 27, 2007.

Therefore, this was the third consecutive bull-run session. The cumulative gains of these three sessions together stand at 960 points or almost eight per cent.

Owing to the CGT issue the market had so far lost 3,545 points or 22.6 per cent falling to 12,130 points on Friday (May 30) from 15,676 points all time high closing level of April 18, 2008.

Besides closing of almost 76 stocks at or near their upper circuit breakers, the blue chips of energy, banking, telecom and fertilizer sectors included their big share of points in double digits in 100-Index. The cement giant scrips also settled at their upper locks, but failed to include their points in double digits. Ready market turnover surged to 205.3 million shares against 158.6 million shares a day earlier. Market capitalisation surged Rs185 billion to Rs4.037 trillion.

The plus signs heavily dominated on board with increased number of actives at 402 stocks. Out of that the value of 349 stocks advanced, 39 stocks declined and 14 closed on pre-opening levels.

Ahsan Mehanti at Shazad Chamdia Securities said that aggressive accumulations were seen in almost all the favourite due to extension in capital gain tax exemption up to June 30, 2010.

He added that investors took fresh positions in almost all sectors on government surety that new budget shall be investor friendly.

High cement prices, record PSDP allocations, record fertilizer off take international oil prices, oversold banking sector were a few reasons for market recovery, Metanti added.

Hasnain Asghar Ali at Aziz Fidahusein said that growth oriented economic policies invited foreign funds looking for avenues abroad. Stability of rupee will be a catalyst for foreign inflow once the local bourses start creating turnover, he added.

Technically over sold and fundamentally under valued market opened with maximum points and sustained the numbers through out the day thus disallowing short covering to come into play, Ali added.

Highest volumes were witnessed in TRG Pakistan at 20.6 million closing at Rs8 with a gain of Re1, followed by Norrie Textile at 11.9 million closing at Rs2.74 with a gain of 54 paisa, IGI Investment Bank at 10.6 million closing at Rs10.17 with a gain of Re1, OGDC at 9.1 million closing at Rs130.72 with a gain of Rs6.22 and NIB Bank at 7.4 million closing at Rs13.57 with a gain of Re1.

KSE jumps 610 points on CGT exemption extension

 

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Rs 107 billion to be spent on construction of six new highways, expressways: National Assembly informed ​

ISLAMABAD (June 05 2008): The National Assembly was informed on Wednesday that the federal government has planned to construct six new highways/expressways in addition to conversion of Karachi-Hyderabad Super Highway into motorway costing Rs 107 billion till 2013.

Through a written answer provided by the Ministry of Communication in reply to a question by MNA Mohammad Afzal Khokhar, it said that the new highways/expressways would be completed till 2013.

Faisalabad-Khanewal, E-4 will be completed at a cost of Rs 33.10 billion, Wazirabad-Pindi Bhattian, E-3 Rs 15 billion, Khanewal-Lodhran E-5 Rs 15, Peshawar-Turkham Rs 13 billion, Karachi-Hyderabad highway at Rs 8 billion, Hassanabadal-Havelian Rs 10 billion and Havelian-Mansehra highway Rs 12 billion.

Besides, the Ministry of Communication also informed the House that Rs 1000 million were allocated in PSDP 2007-08 for Indus Highway project and Rs 700 million released to NHA of which Rs 161.750 million has been incurred so far.

To a question of PPP lawmaker Yasmin Rehman, the in-charge minister for Petroleum and Natural Resources told the House that the annual requirement of petrol during 2007-08 is estimated at 1,450,000 tons, diesel 8,000,000 tons and Hi-Octane 10,000 million tons. During 2007-08, the annual domestic production of petrol is estimated at 1,328,00 tons, diesel 3,010,00 tons and Hi-Octane 10,000 tons.

The total quantity of imported petrol and diesel during 2007-08 is 122,000 tons and 490,000 tons, respectively. The Minister of Petroleum also informed the House that the provincial government of Sindh has developed six blocks in the Thar coalfield, which has the potential to cater to the coal requirement of 1000MW power plant.

To a question, the ministry opined that the total coal deposits of Pakistan are about 185 billion tons including 175.5 billion tons in Thar coalfield, Sindh. To a written question, the Ministry of Local Government and Rural Development informed the House that during 2006-08, almost Rs 3,801.464 million were allocated for 5,637 development projects under Khushhal Pakistan Programme-I scheme.

The News International - No. 1 English Newspaper from Pakistan - Saturday, December 30, 1899

 

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Gas transit fee: Iran to mediate between India and Pakistan ​

ISLAMABAD (June 05 2008): Iran will mediate between India and Pakistan to end a deadlock on the issue of transit fees to be paid by New Delhi for gas transported through a 7.5-billion dollar pipeline to be built by the three countries. Iranian President Mahmoud Ahmadinejad has constituted a four-member committee of officials to hold talks with Pakistan and India on the transit fee issue, Zee TV reported.

He has given the panel 45 days to settle the issue between the two countries and submit a report to him. Pakistan and Iran were set to sign a bilateral gas sale purchase agreement (GSPA) for the Iran-Pakistan-India gas pipeline project by May 31 but would now sign the pact after the Iranian committee resolves the transit fee issue between Pakistan and India. Pakistan and India too could sign a gas transit fee agreement when the GSPA is signed by Iran and Pakistan.

Former Petroleum Minister Khwaja Asif and his Indian counterpart Murli Deora had announced after talks on April 25 that the gas transit fee issue would be addressed within a short period of time but no progress has been made as yet in the matter.

Business Recorder [Pakistan's First Financial Daily]