SUNRISE CAPITAL (PVT) LTD | 10 November 2016 | TAKE OFF

$8-billion main rail-link: ML-1 project to be kept outside PSDP:

The government has decided to complete the $8 billion project meant to upgrade Pakistan’s main rail link ML-I that connects the country’s north to the south by keeping it outside the Public Sector Development Programme, a move aimed at avoiding its impact on the country’s limited pool of development funds. The cost of the project is equal to this year’s federal development programme and its inclusion would adversely affect financing of over a thousand ongoing mega, and medium sized projects, said officials.

Govt to lease out Steel Mills to generate funds:

The Senate Standing Committee on Finance was told on Wednes­day that in the absence of a buyer, the government planned to lease out the Pakistan Steel Mills (PSM). The committee was brie­fed by Privatisation Commis­sion chairman Mohammad Zubair, who said that a proposal was being drafted to lease out the mills to a Chinese or Iranian company. Talking to media, Mr Zubair later said that the PSM’s total losses had reached Rs220 billion and no one was ready to take responsibility of the crumbling giant. He told the committee that the government wanted to restructure the PSM and restart production.

Textile sector: PTEA laments high RLNG prices

The Pakistan Textile Exporters Association (PTEA) has expressed concern over high RLNG prices, part of which is the recovery component of distribution losses and cost of supply to the textile sector. Inclusion of such charges in RLNG prices has increased the production cost, rendering us unviable within the region, it said. PTEA Chairman Ajmal Farooq and Vice Chairman Muhammad Naeem termed the recovery as a negative for the textile sector and demanded its immediate withdrawal.

Islamic Development Bank offers $500m for TAPI pipeline:

The Islamic Development Bank (IDB) – an international Islamic financial institution based in Saudi Arabia has offered $500 million in loans finance the Turkmenistan, Afghanistan, Pakistan and India (Tapi) gas pipeline project, which will meet growing energy needs of three countries, an official says. Turkmenistan will contribute 85% of the pipeline cost estimated at $10 billion whereas Afghanistan, Pakistan and India will have a 5% share each in investments. This cost is in addition to the $15 billion capital injection required for developing a gas field from where Turkmenistan will supply gas to the three countries. Of the 85% cost, Turkmenistan will provide 51% of funds and the remaining 34% will be arranged by different financiers. “The three gas consumers could also enhance their investment share if desired,” the official said.

Pakistan oil, gas sector marked strong presence at ADIPEC:

Pakistan is making a strong presence at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), one of the world’s most influential energy sector events, which is currently taking place from 7-10 November 2016 in the city’s National Exhibition Centre. The theme of the event is ‘Transitional Strategies for an Efficient and Resilient Energy Industry’ and is being held under the patronage of H. H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE. The event features 94,661 attendees including 8,555 registered delegates. Pakistan’s Ministry of Petroleum and Natural Resources (MP&NR), Petroleum Institute of Pakistan (PIP) and leading oil and gas companies are featuring prominently in this event by setting up a grand Pakistan Pavilion.

External debt to GDP ratio declines to 20 percent: Secretary Finance:

Secretary Finance Dr Waqar Masood Khan on Wednesday told the Senate Standing Committee on Finance that the country's external debt to GDP ratio had come down from 35 percent in 2013 to 20 percent in 2016. He said that by end June, 2016 the total debt of the country was $57.7 billion and the government had also repaid some of its debt later on. The meeting of the committee was presided over by Senator Saleem H. Mandviwala. The Secretary Finance informed the meeting that the total debt to GDP ratio including internal borrowing, however rose to 64.9 percent from 63 percent in 2013. Regarding China Pakistan Economic Corridor (CPEC), Waqar Masood said that out of total $46 billion, $11.2 billion amount consisted of soft terms loan while the rest of the amount would be owned by the private sector.

CDWP takes up two dams, other projects in today’s meeting:

The Central Development Working Party (CDWP) will today (Thursday) discuss the approval of the construction of Ramma and Kasana Dams, for the water supply to new Islamabad airport, along with 15 other developmental projects worth billion of rupees, it is learnt reliably here. The CDWP meeting will discuss 15 project related to Energy, Water, Education, Environment, Commerce and Industries, Physical planning and housing and governance. One of the main project is the construction of Ramma and Kasana Dams in Tehsil Fateh Jang Attock. The delay in the construction of the dams is the main hurdle in the completion of the new Islamabad international airport. Although a standing committee was informed in August that the total cost of the projects were Rs1.65 billion but now the CDWP will discuss the projects with the total cost of the Rs3,885 million. According to the sponsor of the projects, water will be stored in the planned Ramma and Kasana dams through rain harvesting and will meet the requirements of the airport for next 50 years.