Karachi: Govt on verge of default on sovereign guarantee
The government is feared to practically default its sovereign guarantee that would result in a downgrade to the country’s credit ratings and a severe dent to the reputation among international donors as it has failed to honor its payment obligation to the independent power producers (IPPs).
According to MR Securities, the deadline of a notice calling the sovereign guarantee served by eight IPPs for payment of Rs34 billion is expiring on May 4, and no payments were made till the filing of this report. Industry sources said that the IPPs have served another notice on Thursday for the payment of another Rs12 billion.
SECP commissioner for making capital markets investor-friendly
SECP Commissioner for Securities’ Market Imtiaz Haider has emphasised upon the crucial role of the board and management in the organized development of capital market, protection of investors’ interest and curbing unfair and fraudulent activities in the market.
Fuel adjustment formula: Nepra notifies Rs 6.436 per unit power tariff hike
Nepra on Thursday notified a Rs 6.436 per unit increase in power tariff of Distribution Companies (Discos) for four months under monthly fuel adjustment formula. On Thursday, Nepra issued four separate tariff revision notifications for October, November and December 2011 and January 2012.
Profit of fertilizer companies declines by 56 percent on YoY basis
The imported urea dented profitability of local fertilizer producers during the first quarter of 2012, analysts said. Total profit of listed local fertilizer companies declined by 56 percent on year-on-year basis to Rs 3.350 billion in the first quarter of 2012 as compared to Rs 7.610 billion in the same quarter in 2011.
TCP paid Rs 13 billion GST on urea import
The Federal Board of Revenue (FBR) has collected Rs 13 billion on account of General Sales Tax (GST) on import of urea, imported by Trading Corporation of Pakistan (TCP) for domestic consumption.
HSBC acquisition deal may be finalized by end of 2012
The deal for the acquisition of HSBC Pakistan operations is likely to be concluded in the latter part of the second half of 2012 or early 2013, the management of the MCB Bank disclosed in an analyst briefin.
PSO seeks Rs 50 billion from government to pay international fuel suppliers
PSO liabilities against power sector has crossed Rs 202 billion and the company has requested the government to provide Rs 50 billion so that it could pay international fuel suppliers. According to sources in the Petroleum Ministry, the state-owned oil giant is supplying fuel worth over Rs 32 billion monthly to the power sector, while the sector is paying back only around Rs 15-16 billion per month.
‘EU considering special package for Pakistani market’
Speaking to Commerce Minister Amin Fahim at a sideline meeting arranged during the Annual Investment Meeting 2012, Dycha said that the EU is working actively to encourage more trade with Pakistan.
Next year there will be more BoP difficulties: Chief Economic Adviser, SBP
MR Securities focusing on how to finance deficits, but MR Securities doesn’t spell out measure aimed at enhancing the revenue base, argues SBP’s chief economist Riaz Riazuddin in an interview with BR Research.
Forex reserves stand at $16.435bn
Pakistan’s foreign exchange reserves have slightly moved up to $16.435 billion by the week ended on April 27 from $16.422 billion a week ago. The reserves held by the central bank increased by $153 million to $12.069 billion from $11.916 billion by the week ended on April 20. The reserves held by commercial banks, however, fell sharply to $4.365 billion from $4.505 billion.
Making new records: Cotton production reaches 14.81m bales
The country’s cotton production reached an all-time high level of 14.81 million bales on May 1, 2012 showing an increase of 26.63 per cent breaking the previous high record of 14.31 million bales in 2004-05, said Pakistan Cotton Ginners Association while releasing the final figures of cotton arrival.
Five-day-a-week gas supply restoration may bridge export gap
Restoration of five-day a week gas supply to textile industry may bridge the export gap of $1.6 billion per month to meet record target of $13.8 billion in 2010-11. The textile industry circles pointed out that the industry could only achieve the level of $13.8 billion of 2010-11 if it continues with export of $1.6 billion per month for the remaining period of 2011-12.
Waseela Bank Starts Operations
Waseela Microfinance Bank Limited (WMBL) announced the commencement of its operations in Pakistan with the opening of its first branch in Islamabad. This commercial launch of its first branch in Islamabad (F8 Markaz) could be termed as a soft launch with limited products in offering
Clearing the surplus: Millers to export 200,000 tons of sugar
The government has eased a ban on sugar export, for the second time in three months, and allowed millers to export 200,000 tons while also deciding to procure a same quantity for maintaining buffer stocks for domestic consumption.