Pakistan Economy - News & Updates

[ejaz007]

‘Etisalat to pay $800 million for PTCL stake’

DUBAI: Pakistan will receive a payment of $800 million by the end of March from the UAE’s Etisalat for a stake in Pakistan Telecommunication Company Limited (PTCL), Federal Minister for Privatisation Senator Waqar Ahmed Khan said on Wednesday.

In 2006, Etisalat, the Gulf Arab region’s second-largest telecom firm, signed an agreement to purchase a 26 percent stake in PTCL for $2.6 billon, but so far only $1.4 billion has been paid, due to problems linked with a transfer of 3,000 real estate units.

Under the contract, the government agreed to transfer the properties before Etisalat made the full payment. “We have agreed on a framework with Etisalat by which the transfer of $800 million will happen by the end of March ... the property issues will be resolved soon,” the minister said.

In December, Etisalat said the remaining $1.2 billion would be paid in equal instalments over a period of 4.5 years in consideration for certain corresponding deliverables by the Pakistani counterpart. Etisalat declined to comment on the agreement.

It remains unclear whether Pakistan has decided to give the telecom giant a discount. Khan declined to comment on the remaining $400 million.

“We want to resolve all the issues with this deal and move on to privatising other companies and we just want this to be a good example to lead by in the future,” Khan added. reuters

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Dutch company to establish LNG terminal at Port Qasim

ISLAMABAD: The government has granted approval to the Dutch company-‘4Gas’-to establish floating LNG terminal at Port Qasim, Minister for Petroleum and Natural Resources Naveed Qamar said on Wednesday.

Addressing a press conference, the minister said that the commission to the LNG terminal operator would not be more 50 cents per mmbtu, which also includes the rent of the floating terminal.

However, he said that the floating terminal technically called the Floating Re-gasification Supply Unit (FRSU) would be operational for five years and later a fixed terminal would be established to cater to the long-term imports of liquefied natural gas (LNG) in Pakistan.

The rent of FRSU is up to $200 million per annum as the floating terminal is a temporary arrangement for five years and after five years the company will establish a fixed terminal at Port Qasim.

“The cost of land-based terminal is between $700 million and $800 million,” the minister said. The government would provide sovereign guarantees to the LNG suppliers. The FRSU would have the capacity to handle 3.5 million tonnes LNG, which amounts to 500 mmcfd natural gas, while the capacity of land-based terminal would be higher.

“The guarantees are not in form of letter of credit or any other documents liable for bank loans but we would just guarantee that SSGC would be the purchaser of LNG for 20 years. He said that supplies would start from December next year and both the parties required the time of almost one-year.

Apart from the arrangements to be made by the terminal operator, the SSGC has to establish pipelines and other infrastructure at the selected point at Port Qasim to transfer imported gas to its main system. He said that the government was negotiating prices with the GDF-Suez and Shell LNG, as these two companies have expressed commitments to supply LNG for 20 years.

While, the minister declined to inform about the price difference between the two main contenders, sources in the Inter State Gas System said that the price quoted by GDF-Suez was $1 per tonne cheaper than the price quoted by Shell LNG.

The GDF-Suez was a French firm looking for interests in the region, while the Shell LNG was the operator partner of Qatar Petroleum, one of the largest LNG suppliers of the world. Shell LNG had strong presence in the region, including a large LNG terminal in Gujrat, India.

Qamar is scheduled to meet the top management of both the companies in Islamabad on Thursday (today) for final price negotiation. The minister said that there is no government-to-government contact between Pakistan and Qatar. “Qatari government has said that we have to deal through Shell LNG,” the minister said and added that the price of the LNG would be linked with the price of Brent crude. He also said that at average it would be higher than the cost of gas to be procured through the Iran –Pakistan gas pipeline.

The minister also said that work is in progress over the IP gas pipeline project and there is no opposition for the security agencies and the US government to abandon the project. “I had a meeting with Overseas Private Investment Corporation of US along with the US ambassador and they did not object to import of gas from Iran,” the minister said. ijaz kakakhel

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

US energy firm looking to invest in oil and gas sector
Staff Report

ISLAMABAD: CEO of Hydrocarb Corporation from USA, Kent P Watts, expressed interest in exploring and producing oil and gas in unexplored and under-explored areas in the country.

He was talking to Minister of Petroleum and Natural Resources Syed Naveed Qamar on Wednesday. The minister said he looked forward to companies investing in terms of their expertise and technology, as the exploration and production (E&P) sector was fairly underutilized. He said the present policy entailed transparency and a level playing field for all in addition to offering many incentives for investors and operators.

Qamar informed Watts that a tremendous opportunity existed in the upstream sector adding that venturing into difficult areas could yield high returns. He said that taking on board stakeholders especially the indigenous ones was key to success.

Chief Operating Officer of the Hydrocarb Corporation Pasquale V Scaturro also accompanied the CEO.

Meeting with CGEP: Separately, Qamar met a delegation of the Citizen’s Group on Electoral Process (CGEP), formed by the Pakistan Institute of Legislative Development and Transparency.

The delegation apprised the minister that its members, with no present affiliation with any political party, were working to promote electoral reforms and for the development of electoral rolls in Pakistan. The interactive meeting focused on developing accurate, complete and up-to-date electoral rolls in Pakistan as an important aspect of the electoral reforms process.

The minister reaffirmed his commitment to ensuring preparation of accurate, complete and up-to-date electoral rolls. He emphasized on clearing the whole process so as to eliminate any chances of bogus voting. He said technology was available and could be utilized effectively adding that in the presence of the NADRA the need of any duplicate database seemed no more necessary. The status and amendments to various electoral laws also came under discussion. The delegation comprised Lt Gen (R) Moinuddin Haider, Arif Nizami (former editor of The Nation), Mujib-ur-Rehman Shami (editor in chief, Daily Pakistan), Shahid Hamid (former governor of Punjab), Ahmad Bilal Mehboob (ED, PILDAT), Aasiya Riaz (joint director of PILDAT).

Daily Times - Leading News Resource of Pakistan

 

[oct605032048]

Wind mills set up in Punjab to generate power



Sunday, January 17, 2010
By Jawwad Rizvi

KALLAR KAHAR: A Chinese company, in a bid to tap the potential of wind power in Punjab, has set up four wind mills with a total capacity of producing 50 kilowatts of electricity.

Sunec Wind Power Generation (Pvt) Ltd of China has installed the wind mills in a model wind power generating farm at Pochal Khurd, 20 km from Kallar Kahar. After successful operation and getting desired results, the company will set up a 2.5-megawatt wind farm which may be operational this financial year.

Earlier, the Alternative Energy Development Board had identified a 165km-long wind energy corridor in Punjab which started from the famous tourist resort of salt range Kallar Kahar and ended at the valley of Soon Sakesar.

In the first phase, the Chinese company has completed installation of wind mills in the model farm. It is working on setting up 2.5MW-capacity wind mills by May and has plans to increase the mills that could generate 50 megawatts of power.

Talking to The News, Sunec Wind Power Generation Pakistan Director General Najib Ahmed Sharif, during a visit to the model farm, said the wind farm was situated on a mountain range 28,680 feet high, the second highest in Punjab after Murree.

Six Chinese engineers and technicians have been engaged in the project over the last one year. Najib said the total cost of the model farm was Rs27.5 million, adding work on the 2.5MW farm was in full swing as turbines had arrived from China which would be installed by the end of May.

Of the four wind mills currently installed, three have power generating capacity of 10 kilowatts each while one can produce 20 kilowatts.

Documentation process was also under way and that would be completed in the next two weeks, he said, adding the company had submitted a tariff petition to the National Electric Power Regulatory Authority (NEPRA). A power generation licence would also be awarded to the company in 15 days, he added.

Talking about the technical side of the project, he said minimum cut-in wind speed at the site was 2.4 to 3 MS (1 MS is equal to 3.6 km per hour) and maximum cut-out speed was 25 MS, equal to 120 km per hour. Thus, wind power would be generated easily.

Available historical data of the area showed that smooth winds blew throughout the day so there would not be any problem in generating wind power, he added. Najib pointed out that the Chinese would make all investment in the wind power project.

Sunec is a wind generating equipment maker in China and also sets up and operates wind farms there. The company is also working on cheap and durable solar energy solutions in Pakistan.

About problems faced by the company in setting up and running the project, the company director general said they could not be able to supply the power generated from the farm to the Pakistan Electric Power Company (PEPCO) due to load-shedding and were compelled to stop the wind mills. Because of that, he added, one turbine was damaged and the company imported the turbine again from China.

Similarly, he said, undue delay in approval of projects by different departments despite submission of all required documents was also hurting the investors who wanted to invest in the energy sector of Pakistan.
Wind mills set up in Punjab to generate power

 

[hazi]

Pakistan State Oil Q2 profit at 3.18 bln rupees


KARACHI, Feb 17 (Reuters) - Pakistan State Oil (PSO) (PSO.KA) reported on Wednesday a second quarter net profit of 3.18 billion rupees ($37.4 million), compared with a net loss of 1.67 billion rupees in the same period of the last fiscal year.

Net sales in the October-December quarter were at 180.94 billion rupees, compared with 145.68 billion rupees in the corresponding quarter last year, the company said in a statement to the Karachi Stock Exchange.

PSO shares were trading 1.05 percent higher at 303.10 rupees at 0848 GMT in a broader market which was up 1.11 percent.


Pakistan State Oil Q2 profit at 3.18 bln rupees | Markets | Reuters

 

[ajpirzada]

Current account deficit narrows by 69 percent
RECORDER REPORT
KARACHI (February 18 2010): The country's current account deficit has narrowed down by some 69 percent in first seven months of current fiscal year mainly due to huge remittances and considerable decline in the trade deficit. The State Bank of Pakistan on Thursday said the country's current account deficit has declined by $5.569 billion during the July-January of fiscal year 2009-10, as compared to same period of last fiscal year.

With current decrease, the country's overall current account deficit has narrowed down to $2.487 billion in the first seven months of current fiscal year as compared to a deficit of $8.056 billion in the same period last fiscal year. Overall deficit including trade, services and income stood at $10 billion against the current account transfers of $7.577 billion in July-January of fiscal year 2009-10.

With $17.562 billion goods imports and $10.945 billion exports, overall goods trade deficit stood at $6.617 billion during first seven months of current fiscal year as compared to $9.078 billion in corresponding period of last fiscal year.

Services sector presented a significant improvement and services sector deficit stood at $1.731 billion with $2.12 billion exports and $3.851 billion imports in July-January of current fiscal year as compared to deficit of $2.438 billion in the same period of last fiscal year. Similarly, income deficit also declined to $1.658 billion during the period, as during July-January altogether income from abroad stood at $310 million as compared to payments of $1.968 billion to the overseas.

Statistics show current account deficit without official transfers reached $2.605 billion during the first seven months of fiscal year 2009-10 as compared to $8.172 billion in the same period of last fiscal year. Month-on-month basis current account deficit has also presented a better performance and during the month of January 2010, the country registered a current account deficit of $473 million.
Business Recorder [Pakistan's First Financial Daily]

 

[ajpirzada]

Pakistan on path of economic recovery: IMF

WASHINGTON: Pakistan’s economic growth has started to recover despite security and energy challenges and the country met almost all targets under the International Monetary Fund program, the global financial institution said on Tuesday.

“Pakistan’s program is progressing well,” the Fund said in a statement following ‘constructive discussions’ with Pakistani officials focusing on Pakistan’s recent economic performance, the outlook for the rest of the fiscal year.

Adnan Mazarei, who met with the Pakistani officials in Dubai over the past week to initiate discussions on the fourth review under Pakistan’s Stand-By Arrangement (SBA), noted that Islamabad observed all quantitative performance criteria, except for the budget deficit target, which exceeded by a small margin.

Listing positive trends Pakistan registered in recent months, the Fund said the exchange rate has remained stable at Rs 84–85 per US dollar, and the international reserves position has strengthened (the banking system’s gross foreign exchange reserves, including the State Bank and commercial banks, reached $14.3 billion in mid-February, of this total, the State Bank held $10.5 billion).

The early signs of recovery in some sectors and the improved external position are encouraging, although there are risks and challenges to Pakistan’s economic program.

“Economic growth in Pakistan is starting to recover; large-scale manufacturing output has started to increase, the improvement in the global economy has helped manufacturing exports, and private sector credit growth has picked up to some extent as businesses rebuild their working capital.

The IMF’s package for Pakistan - approved in November 2008- has been extended to $11.3 billion. Looking ahead, the IMF statement said, a resumption of higher growth is needed to raise living standards and will require improvements in the business climate to stimulate higher investment by local and foreign investors.

Emphasizing the need for stepped up donors support for the key anti-terror partner of the international community, the Fund said, early disbursement of donor financing remains crucial to support Pakistan’s stabilisation and reform efforts as well as laying the basis for a sustainable growth.

The IMF mission staff will prepare a report on the fourth review under Pakistan’s SBA, which is scheduled for consideration by the IMF Executive Board in late March. app

Daily Times - Leading News Resource of Pakistan

 

[ajpirzada]

BISP reducing poverty

By Faheem Hajazi

The poor and underprivileged people of Pakistan have been suffering due to lack of a comprehensive social protection system. It goes to the credit of the present government that has launched the Benazir Income Support Programme (BISP) as a tool for enacting a comprehensive social safety net, catering to the needs of the ‘poorest of the poor’ of the society, not just in terms of assisting them with cash for everyday commodities, but also enabling them to graduate from the vicious cycle of poverty. This includes micro-finance credit, vocational training and health insurance cover.

Let us have an overview of the BISP, and what has been done and what is being done in terms of social protection. The BISP is the main social safety net programme by the government of Pakistan, which began with an initial allocation of Rs 34 billion ($425 million) for the year 2008-09. The amount was the third largest allocation in the total budget, and was 0.3 percent of the GDP for the year 2007-08.

The programme aims at developing a poverty-reduction strategy that takes into its ambit social assistance like health and skill development, in addition to cash transfers. It was initiated in response to the rising inflation and the global economic recession of the last few years, and to offset its impact on the purchasing power of the poor. The allocation for the year 2009-10 is Rs 70 billion, which will be used to provide relief to 5 million families. The programme is expected to cover 7 million families in the medium term by the year 2010-11. Around 36.1 percent of the total population of Pakistan is living below the poverty line, according to an estimate in 2008-09, which reveals that 62 million people (11.83 million families) are sufferings from poverty.

A cash grant of Rs 2,000 to each family is disbursed every alternate month, and covering 5 million families in 2009-10 means paying cash benefits to almost 16 percent of the total population. The BISP covers all four provinces, as well as Gilgit-Baltistan, FATA, AJK and the Islamabad Capital Territory.

The inclusion and exclusion criteria were devised and application forms were distributed through parliamentarians in equal numbers, irrespective of party affiliations. Data entry, data verification and the eligibility criteria were applied by NADRA through the management information system. A final list of eligible beneficiaries was prepared by NADRA in the form of database. The list of eligible beneficiaries is communicated to the Pakistan Post in an electronic form and money orders of Rs 2,000, which are distributed every alternate month at the doorsteps of the beneficiary. With the sole purpose of empowering women, only the female head of the family or adult female can be the recipient. In order to lend more transparency and objectivity to the programme, the government decided to reform the targeting process to minimise the inclusion and exclusion errors and give equal chance to everyone for applying to the programme. Therefore, the beneficiary identification through parliamentarians was stopped on April 30, 2009. The World Bank-approved instrument named “poverty scorecard”, based on proxy means testing, has been adopted and a nationwide poverty survey has been planned to identify the poor families.

Under the Waseela-e-Haq, BISP beneficiaries are pre-qualified through a computerised draw (random selection) for award of a cash loan of Rs 300, 000 each. This one-time loan is conditional and the beneficiary will have to spend it for some income-generating purpose. The amount will be recovered in easy monthly instalments, spread over a period of 15 years. The draw is held each month. Four draws have been held so far, and about 3,000 families have been pre-qualified. Their progress in the business activity is also be monitored and technical assistance is provided to make the transition as smooth as possible. The BISP is also implementing an emergency relief package for the internally displaced persons of FATA, Swat (Malakand Division) and earthquake affectees of Balochistan. A total of Rs 28 million has been paid to 3,965 families in FATA and Bajaur. A total of Rs 26 million has been paid to 3,729 earthquake-affected families in Balochistan.

The distribution of BISP benefits to 318,126 IDP families of Swat and Malakand has started through Benazir ATM cards. The BISP benefits will be paid from April 2009 to March 2010 at the rate of Rs 1,000 per month. By that time, the BISP plans to start a poverty survey in the areas. Amount of Rs 3.82 billion will be paid to the IDPs during the current Financial Year. Inspired by the vision of Benazir Bhutto, BISP endeavours to provide mother-like shelter to the poor section of the society. I would humbly like to say that the BISP, in a short time, has gained the support and universal acceptance not only in Pakistan, but across the world. BISP envisages becoming a comprehensive safety net for the poor of the society that will ensure their transition from a state of dependency to self-sufficiency.

Daily Times - Leading News Resource of Pakistan

 

[ajpirzada]

Massive single day inflow of FIPI witnessed
RECORDER REPORT
KARACHI (February 18 2010): A massive single day inflow of $6.1 million of foreign investors' portfolio investment (FIPI) at the local equity market was witnessed on February 17, 2010. "The positive developments on political front encouraged the offshore investors to take fresh positions at the local equity market", analysts said.

According to National Clearing Company of Pakistan Limited (NCCPL) date, the foreign investors bought shares worth Rs 637.86 million while they sold shares worth Rs 119.91 million on Wednesday. The cumulative inflow of this mode of investment has increased to $15.340 million during the first 17 days of the current month as compared to a net inflow of $4.1 million witnessed in the month of January 2010.

Business Recorder [Pakistan's First Financial Daily]

 

[ejaz007]

IGI Insurance declares 25% dividend

KARACHI: IGI Insurance Ltd has posted an after-tax profit of Rs 263.996 million during the year ending December 31, 2009, and declared a final dividend Rs 2.50. According to the results dispatched to Karachi Stock Exchange (KSE) here on Wednesday, the pre-tax profit touched Rs 364,766 million during the period under review compared to a loss of Rs 404.103 million in 2008. The earning per share stood at Rs 4.41 in 2009 compared to a loss per share of Rs 6.30 in 2008. app

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

ACCI-KCCI sign MoU for to establish joint chamber


KARACHI: A meeting between the high officials of Afghanistan Chamber of Commerce & Industry (ACCI) and Karachi Chamber of Commerce & Industry (KCCI), regarding establishment of Pak-Afghan Joint Chamber of Commerce & Industry, was held at KCCI, for deliberation on the organization of Pak-Afghan Joint Chamber, its operational plan of activities and formation of Executive Committee and General Assembly. In the 1st meeting of Pak-Afghan Joint Chamber of Commerce & Industry (PAJCCI), held at KCCI- Karachi, the renewed Memorandum of Understanding was signed by Vice Chairman of Afghanistan Chamber of Commerce & Industry, Khan Jan Alokozay and President Karachi Chamber of Commerce & Industry, Abdul Majid Haji Muhammad, on Wednesday, February 3, 2010. Other counter-signatories of the renewed MoU are President of Sarhad Chamber of Commerce & Industry, Riaz Arshad and President of Chaman Chamber of Commerce & Industry, Haji Kamaluddin Kakar. The President-KCCI and Vice Chairman-ACCI jointly stated that they are optimistic that Pak-Afghan Joint Chamber of Commerce & Industry, comprising of representatives of leading chambers of both countries will make deliberations for mutual interest of Pakistan and Afghanistan. Director Public Relations ACCI, Rohullah Ahmadzai, former Presidents KCCI, Anjum Nisar, A.Q. Khalil, Senior Vice President KCCI, Rasheeduddin Rashid and Vice President KCCI, Javed Ahmed Vohra also participated in the meeting. The renewed MoU as subsequent to the Memorandum of Understanding of 21st December 2009 for establishing PAJCCI focuses on bringing the business communities of both the countries closer. staff report

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Ministry, PPL sign deals for two new exploration blocks
Staff Report

KARACHI: The Ministry of Petroleum and Natural Resources (MPNR) signed and awarded two ELs/PCAs to Pakistan Petroleum Limited (PPL) for Kharan West (Block 2763-4) and Dhok Sultan (Block 3371-15).

In this context, Syed Naveed Qamar, Minister for Petroleum and Natural Resources directed to expedite exploration to sign at least 35 Exploration Licenses (ELs) and Petroleum Concession Agreements (PCAs) within three months period and make all possible efforts to bring the discoveries into production for addressing immediate energy needs of public.

Petroleum Policy 2009 provides liberal incentives to Exploration and Production (E&P) companies to attract investment and accelerate exploration of hydrocarbons in the country.

In light of the Minister’s directions, the Ministry has already signed eight ELs/PCAs on February 16 and another ten ELs/PCAs were signed with nine E&P companies including four multinational companies.

Earlier, MPNR awarded ELs to PPL for Gambat South, Jungshahi, Kharan East and Kharan. PPL signed another block as a joint venture (JV), Sukhpur, which would be operated by Eni. Shell is the other JV partner in this block. The minimum financial commitment in the block that is located south of Zamzama field is $5.06 million.

As a result of recent bid round, PPL’s exploration portfolio comprises 35 exploration blocks after the recent bid round. Of these, PPL operates 20 and has working interest in 15 more exploration areas, including three offshore blocks as non-operating partner.

Secretary Petroleum and Natural Resources, Kamran Lashari, Director General Petroleum Concessions, Mohammad Naeem Malik and Chief Executive Officer and Managing Director PPL, Khalid Rahman signed the licences and the Petroleum Concessions Agreements.

Kharan West (Block 2763-4) and Dhok Sultan (Block 3371-15) span an area of 2,487.37 and 703.23 square kilometers, and are located in Washuk District, Balochistan and Attock, Kohat, Chakwal and Mianwali districts, Punjab, respectively.

PPL proposes to operate these two blocks with 100 percent working interest. The minimum investment being committed by the company during the first three years of the initial licence term for Kharan West is $1.01 million and that for Dhok Sultan is $5.05 million.

Dhok Sultan block is located in western Potwar area and is surrounded by several oil and gas discoveries/fields including the significant discoveries in Tal and Nashpa blocks to the east.

Moreover, PPL plans to acquire about 350 kilometers 2D seismic and drill a deep exploratory well to test multiple reservoirs. In Kharan West, which is located in a frontier region, the program is to first acquire gravity / magnetic survey for regional evaluation followed by about 350 km 2D seismic to firm up a drillable prospect.

Preparations are in-hand to carry out the huge work program commitment in the new blocks including several thousands line kilometer and square kilometer of 2D and 3D seismic and drilling of a number of exploratory wells, besides advance geological and geophysical studies.

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

ICI Pakistan announces highest-ever dividend

KARACHI: ICI Pakistan Limited announced a final dividend of Rs 4.50 per share for the year 2009. Dividend for the year is 23 percent higher than last year and the highest ever. Earnings per share showed a growth of 9.8 percent at Rs 14.73. Consolidated profit after tax is 21.4 percent higher than last year. staff report

Daily Times - Leading News Resource of Pakistan

 

[Gin ka Pakistan]

KSE bullish, Index up 97 points Updated at: 0244 PST, Thursday, February 18, 2010
KARACHI: Hectic buying improved prices of leading scrips at Karachi Stock Exchange (KSE) Wednesday as 100 Index gained 97.41 points to close at 9867.09.

A dealer at a leading brokerage house said that market was bullish in the morning on buying spree on the meeting of Prime Minister and Chief Justice Supreme Court and expected positive outcome of their meeting on Wednesday and Index more than 150 points.

However, the market fell on profit taking but remained in thepositive zone. Market will bounce on Thursday, he hoped.

The turnover volume was high at 201.222 million shares as 235scrips advanced and 158 sustained loss while 25 remained unchanged.

The market capitalization was improved by Rs 27 billion to Rs2.839 trillion.

Worldcall was the volume leader with a turnover of 29.292 million shares followed by Lotte Pak 13.993 million shares, OGDC 8.721 million shares, DG Khan Cement 7.229 million shares and TRG Pak 6.668 million shares.
KSE bullish, Index up 97 points - GEO.tv

 

[Parashuram1]

There seems to be such good levels of investment in Pakistani economy by foreign companies.. but could someone here highlight as to why the inflation rate in your country is so exceptionally dangerous (was sometime back) while the currency and economy have till now gone down so badly in the middle?

Thanks.