Sunday 18 December 2016

SUNRISE CAPITAL (PVT) LTD | 19 December 2016 | TAKE OFF

Cement sector seeks tax reduction on coal import:
Amidst rising prices of coal in the international market, the manufacturers have put their price increase plan on-hold in the hope that the government will consider reduction in duties on import of coal. Moreover, the international coal prices have also retraced to $83/ton level after touching a high of $100/ton in November 2016, convincing the industry not to pass-on coal price hike to the customers. All Pakistan Cement Manufacturers Association (APCMA) has said that coal is a widely used fuel in the production of cement and its increasing prices during last few months has a significant impact on input cost whereas recent increase in the oil prices has further increased the cost of cement production.
SNGPL, SSGCL to launch 60 LPG-air mix plants:
Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) would set up over 60 Liquefied Petroleum Gas (LPG)-air mix plants in selected areas where natural gas supply does not exist. “The Economic Coordination Committee (ECC) has recently approved setting up of LPG-air mix plants at Murree (Kurbagla, Dewal, Company Bagh and Tret), Awaran and Bella,” official sources told APP. The sources said the plants would be established at an estimated cost of Rs1,353.29 million to be funded by the respective gas companies – SSGCL and SNGPL - through their own resources. The sources further said that the companies would set up 30 more air mix plants each on their respective transmission network in the areas of Azad Jammu and Kashmir, Chitral, Gilgit-Baltistan and backward areas of Balochistan. The setting up of the LPG-air mix plants would save these areas from the rapid deforestation in these areas.
Oil prices rise in anticipation of tighter 2017 market:
Oil prices rose on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices. Brent crude futures, the international benchmark for oil prices, were trading at $55.57 per barrel at 0401 GMT, up 36 cents, or 0.7 percent, from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were up 43 cents, or 0.8 percent, at $52.33 a barrel.
Chinese company to be awarded mega power project:
The government is all set to award 600KV (4,000MW) HVDC (High Voltage Direct Current) 878-kilometres Matiari-Lahore Transmission Line Project of $2.1 billion to China Electric Power Equipment & Technology Co Ltd (CET) at wheeling tariff of 0.74 cents per unit without evaluation of its technical and financial evaluation, as the project is part of CPEC, well informed sources told Business Recorder. The government of Pakistan had announced the policy framework for private sector transmission projects in 2015 to attract private sector investment for augmentation of transmission network in the country to transmit electricity from the upcoming power projects. Giving the background, the sources said that National Transmission and Despatch Company Limited (NTDC) and State Grid Corporation of China (SGCC) entered into a co-operation agreement on April 20, 2015 for implementation of (i) Matiari-Lahore Transmission and Transformation Project; (ii) and Matiari/Port Qasim-Faisalabad Transmission and Transformation Project shall be implemented under agreement on China-Pakistan Economic Corridor between China and Pakistan and the Transmission Line Policy 2015. Under the agreement, SSGC has nominated its subsidiary ie China Electric Power Equipment & Technology Co. Ltd (CET) to develop the transmission line projects on BOOT model and it has also been agreed that CET would also be the EPC contractor for transmission projects.
Recovery of money through bank account: notices issued
Lahore High Court (LHC) has issued notices to President of Pakistan, Special Assistant to Prime Minister on Revenue Haroon Akhtar, FBR officials and Government of Punjab in a petition challenging the illegal recovery of money through bank account of a former employee of one of organisations of Punjab government. Sources told Business Recorder that LHC in a constitutional petition against the President of Pakistan, SA to Prime Minister, FBR employees, a private bank and a Punjab government organisation has issued notices to them. In this case, President has accepted the representation filed by the FBR under section 32 of the Federal Tax Ombudsman Ordinance, 2000 against an order passed by Federal Tax Ombudsman (FTO).
Agreement: EU sees Japan free-trade deal in early 2017
The European Union (EU) said on Saturday it is close to an agreement with Japan on a free-trade deal that has taken on greater significance after President-elect Donald Trump announced US plans to withdraw from a separate pact with Pacific nations. In a statement, the EU’s chief trade negotiator with Tokyo said a deal was possible by early next year if Japan opens up to EU farm goods and Europe can agree to granting unfettered access to Japanese cars.

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