Export-oriented
sectors likely to get Rs 75 billion package:
Prime Minister Nawaz
Sharif is likely to announce an incentive package for five or six
export-oriented sectors to the tune of Rs 65 -75 billion of which textile
sector would be the top beneficiary, a senior government official told Business
Recorder. "Homework on the package has been finalised by the confidantes
of the Prime Minister and it is now lying with the Finance Minister Ishaq Dar,
likely to be announced in the first or second week of December," he added.
"We feel that fiscal space is available with the government so at least
five or sex sectors should be given incentives to enable these sectors to
compete with their counterparts in other regional countries in the
international market," he maintained. In reply to a question, the official
said that average rebate of five per cent would be made available to the select
exporters. Answering another question, he said that incentives of Rs 170-185
billion would have considerable impact on fiscal deficit which the government
cannot afford. One per cent fiscal deficit is equal to Rs 300 billion. The
government is already bearing a loss of Rs 30-35 billion in GST per quarter due
to zero rating.The government is expected to announce 3 percent rebate to yarn/
grey fabric, 4 percent to processed fabrics, 6 percent for home
textile/knitwear and 8 percent for garments sector. The sources added that the
proposed rebate for raw and semi-raw exports would be around 4 per cent and
value added sectors 8 percent, respectively. The committee has also proposed
the removal of Regulatory Duty (RD) on key export-oriented industrial inputs
including raw material and bring down custom duties to zero. Removal of import
duty and sales tax on industrial machinery is also on the cards.
Summit,
Sindh Bank in merger talks:
Summit Bank Ltd (SBL)
has announced that it is in talks with Sindh Bank for a potential merger. In a
securities filing on the Pakistan Stock Exchange (PSX) on Monday, SBL said it
will evaluate the information that Sindh Bank will provide with respect to a
possible merger subject to regulatory approvals. Tighter regulations by the
State Bank of Pakistan (SBP) to ensure capital adequacy in the banking system
have resulted in a flurry of mergers and acquisitions. The proposed deal
follows the recent acquisition of Burj Bank by Al Baraka Bank. Last year, Bank
Islami acquired KASB Bank when the latter failed to meet the SBP’s minimum
capital requirement. SBL is operating as a conventional bank with total assets
of Rs193.5 billion. However, it aims to convert into a full-fledged Islamic
bank going forward.
‘Yunus
Brothers, Kia Motors to set up auto assembly plant’:
The Yunus Brothers
Group (YBG) is in talks with South Korea’s Kia Motors Corporation to set up an
auto assembly facility in Pakistan. The sponsor of Lucky Cement and ICI
Pakistan, YBG is in the initial phase of negotiations with the South Korean
company and few details are available so far. Kia’s latest initiative follows a
strong line-up of auto manufacturers, including Nissan-Renault, which has
expressed interest in building assembly facilities in the Japanese-dominated
auto industry of Pakistan after the introduction of a new auto policy in March.
BIPL said a growing car market, strong potential for growth in demand under the
China-Pakistan Economic Corridor (CPEC), low interest rate environment and
attractive policy incentives provide a compelling case for foreign automakers
to step into the Pakistani market. Car sales grew at a compound annual growth
rate of 17 per cent in three years ending on June 30, 2016.
Discos
seek reduction of Rs2.60 in power tariff:
Distribution
companies of formerly Wapda have sought a reduction of Rs2.60 per unit in the
consumer tariff for October to refund higher-than-justified charges collected
from people in the month despite cheaper power generation. The Central Power
Purchasing Agency (CPPA) filed the request on behalf of the distribution
companies on the basis of the actual fuel cost of power generation in October
under the automatic monthly fuel price adjustment. The National Electric Power
Regulatory Authority (Nepra) is expected to hold a public hearing on the
request by the weekend.
Ministry
clarifies oil supply position:
The Ministry of
Petroleum and Natural Resources is hereby conveying the following factual
position regarding the status of oil supplies in the country. At the onset it
is clarified that strategic and normal stocks are two different entities. The
fuel used for armed forces is sufficiently available but details cannot be made
public due to security reasons. 1. At present, the countrywide stocks of Motor
Gasoline (Petrol) is 225,674 Metric Tons (MTs) which is sufficient for 13 days
cover as per current average per day demand of the country, which is around
17,500 MTs. Besides, 02 vessels of motor gasoline, carrying quantities of
17,000 MTs are waiting for berthing, while 02 more vessels having quantity of
around 67,000 MTs are expected to arrive, tonight. 2. The country wide stocks
of High Speed Diesel (HSD) is 466,821 MTs which is sufficient for 17 days cover
as per current average per day demand of the country, which is around 27,310
MTS. Moreover, 02 Vessels of HSD, carrying quantity of 106,000 MTs are waiting
for berthing, while 01 vessel having quantity of around 54,000 MTs Is under
discharge.
Trade
deficit increases by 8.42 percent in 2015-16: Minister informs National
Assembly:
Pakistan recorded trade
deficit of $23.96 billion in the financial year 2015-16 as compared to $22.1
billion during the last financial year, reflecting an increase of 8.42 percent.
Minister for Commerce Khurram Dastgir Khan informed this to the National
Assembly on Monday during the Question Hour. He said that Pakistan's imports
have grown by nearly 6 percent mainly owing to the demand of many imported
items is inelastic like petroleum products, food items and machinery. He
explained that due to increase in development activities in the country,
especially China-Pakistan Economic Corridor, the import of machinery and
equipment has increased while because of shortfall in cotton production in the
country, a large quantity of raw cotton is also being imported to meet the
demand of the local textile industry. The minister said the trade balance has
also been affected due to decline in Pakistan's exports owing to economic
slowdown in the global market, global commodity crisis, currency devaluation by
competitors and Pakistan's low position in global competitiveness index. He
said in 2015-16, the country's overall trade was $62.324 billion out of which
Pakistan's exports were $21.98 billion and imports were $40.34 billion. The
United States of America is the largest export destination for Pakistani goods,
he said, adding that total exports for the year 2015-16 were $3.5 billion
whereas bilateral trade for the same period was $5.3 billion, he added.
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