Thursday 15 December 2016

SUNRISE CAPITAL (PVT) LTD | 16 December 2016 | TAKE OFF

Oil prices edge up as Kuwait cuts supplies by more than expected:
Oil prices edged up on Friday after market sources said Kuwait had told customers it was cutting supplies by more than initially expected from January as part of a coordinated effort by oil producers to drain a global glut.International Brent crude oil futures were trading at $54.22 per barrel at 0114 GMT, up 20 cents, or 0.37 percent from their last settlement.U.S. West Texas Intermediate (WTI) crude futures were up 24 cents, or 0.47 percent, at $51.14 per barrel.
Govt takes back 33pc cut in gas prices for industry:
The government on Thursday reversed its decision of November 25 to reduce gas prices for the industrial sector by 33 per cent following a strong protest from the Punjab government and Punjab-based textile industry.Instead, the reduction in gas rates has now been diverted to the power generation sector — including public-sector power plants and independent power producers (IPPs) — to give some relief to the textile industry in Punjab.On Nov 25, the Economic Coordination Committee (ECC) of the Cabinet led by Finance Minister Ishaq Dar approved the reduction in the gas price for all industries from Rs600 per million British thermal units (mmBtu) to Rs400 per mmBtu to pass on the benefit of the drop in the Brent crude price in the international market.
Process for sale of 40pc PSX stake begins:
The divestment committee of the Pakistan Stock Exchange (PSX) waited to collect bids for the sale of a 40pc stake in bourse till after midnight on Thursday. While the negotiations with the bidders was being carried out by the divestment committee, the chairman of the Securities and Exchange Commission of Pakistan (SECP) was also at hand, along with his team and the board of directors of the PSX. Yet nothing transpired till 1o’clock in the morning.On Thursday when the doors were thrown open for submission of sealed bids for the acquisition of 40 per cent strategic stake in the Pakistan bourse, the first bid trickled down by early afternoon.According to informed sources, six contestants had put in a bid, which included Foreign Consortiums of Stock Exchanges and institutions, and local banks and financial institutions. The word doing the round was that among the bidders were Markhor 40pc, NASDEQ, DCE Capital, Kingsway Capital, Blibros Capital 30pc while MCB-Faysal Bank was competing for a combined 10pc and NBP & MCB vied for 5pc shares each.The information regarding the bidders could not however be independently verified. According to regulations, local institutions and individuals cannot bid for more than five percent of the shares.
FDI in Pakistan down massive 45% in Jul-Nov:
Foreign direct investment (FDI) in Pakistan has declined by 45% to $460 million in the first five months (Jul-Nov) of the ongoing fiscal year 2016-17, compared with $840 million in the same period last year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.The country has recorded low levels of foreign investment in recent years. Many foreign investors have pulled out because of a persistent energy crisis and poor governance.
Suzuki Motors to invest $460m for new production plant:
Suzuki Motors Company is ready to invest $460 million in the country to set up a second plant that would start production by the end of 2018.Pak Suzuki Motors Managing Director Hirofumi Nagao shared it with the Finance Minister Senator Ishaq Dar on Thursday. He discussed his company's plan of future investment in Pakistan. After completion of formalities, the new project will be completed within a period of two years and may start production by the end 2018, he informed.Dar asked Nagao to submit a complete plan with all the details to process the request in accordance with prescribed codal rules and procedures. He said that the government is committed to provide a level playing field to all the prospective investors.
Senate strikes down Companies Ordinance:
The Senate blocked Companies Ordinance 2016 with a majority vote on Thursday on the grounds that it should be promulgated through parliament. It was the third setback for the PML-N government in three years as the upper house has earlier rejected two presidential ordinances citing the same reason. The Companies Ordinance 2016, which was to replace the Companies Ordinance of 1984, was rejected by the Senate within minutes of the start of the session. It was promulgated on Nov 12 by the president of Pakistan, possibly as a shorter route by the government to fulfil certain international obligations for the country to upgrade its corporate laws. However, on Nov 25 a resolution signed by 47 senators belonging to all the opposition parties was submitted to the Senate Secretariat demanding the upper house to strike down the ordinance.

Auto policy may be amended:
The government is likely to amend the Auto Policy 2016-21 with a view to granting similar incentives for two years to the "ignored" existing carmakers, which will invest in Green Field. Well-informed sources told Business Recorder that this understanding has been gauged from a meeting held between Finance Minister Senator Ishaq Dar and Managing Director Pak Suzuki Motors Hirofumi Nagao wherein company's future investment plan in Pakistan was discussed in detail. M/s Suzuki has given a firm commitment that it would invest $460 million in Green Field (new plant) and the company has already purchased 80 acres of land to set up a new plant for this purpose. Chairman Board of Investment (BoI) Dr Miftah Ismail and Chairman FBR Nisar Khan were also present in the meeting. Ministry of Industries and Production is also extending full support to the auto industry.
Prime Minister for boosting exports by 30 percent to support BoP:
Prime Minister Nawaz Sharif has underlined the need for increasing country's exports by 25 to 30 per cent from the next year to support the balance of payment. In this regard he hinted at the possibility of announcing an amnesty scheme for industry/traders. Addressing Export Awards ceremony of the Federation of Chambers of Commerce and Industry (FPCCI) at Pakistan-China Friendship Centre here on Thursday, the Prime Minister came down hard on Pakistan Tehreek-e-Insaf (PTI) for sit-ins and Pakistan People's Party (PPP) for "doing nothing" to deal with the problems of load shedding during its five-year tenure. "You must seek answers from these parties either now or in the 2018 elections," the PM added.
Colombia keen to enhance trade ties with Pakistan:
Ambassador of Colombia to Pakistan Juan Alfredo Pinto Saavedra on Thursday said Colombia was interested to enhance trade relations with Pakistan and the best way to achieve this goal was to develop business linkages between the private sectors of both countries.He said this while exchanging views with business community here at Islamabad Chamber of Commerce and Industry (ICCI), a statement issued here said. He said bilateral trade between Pakistan and Colombia was nominal and its main reason was lack of information on both sides about potential areas of mutual cooperation.The ambassador said chamber of commerce and industry of both countries should sign Memorandum of Understanding (MoU) to enhance B2B linkages that would help in exploring possibilities of enhancing bilateral cooperation in trade and economic fields. He offered his cooperation to facilitate signing of the MoU between trade bodies of both countries.
French investors keen on investing in Balochistan: envoy:
Balochistan has great potential in the minerals, agriculture and fisheries sectors and an improved security environment will attract French investors in the province, Ambassador of France to Pakistan Martine Dorance said on Wednesday.Ms Dorance is currently on a Balochistan tour along with French Embassy’s Head of the Economic Department Philippe Fouet and other diplomats.During a meeting with office-bearers of the Quetta Chamber of Small Traders and Small Industry and media persons, Ms Dorance said over 40 French companies are working in different sectors with an investment of $3 billion in Pakistan while an investment of $1.1bn has been made in Balochistan’s Uch Power Plant.

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