SUNRISE CAPITAL (PVT) LTD | 20 December 2016 | TAKE OFF

China to set up steel factory in Gwadar under CPEC:

Acting Chinese Ambassador Zhao Lijian on Monday announced that China will set up a steel factory in Gwadar.“The steel factory will be three times bigger than the free economic zone being set up in the Gwadar city, and an agreement in this regard between China and Pakistan will be signed soon,” Zhao Lijian said while speaking at a conference on the China-Pakistan Economic Corridor (CPEC) organized by an Islamabad based think-tank, Strategic Vision Institute (SVI).The conference was informed that the sixth meeting of Pak-China Joint Cooperation Committee (JCC), the principal decision-making and implementation forum of CPEC, was scheduled to be held in China on Dec 28-29. The focus of the meeting would be on industrial investment cooperation and new transportation projects including Keti Bunder Port, Airport in Thar (Islamkot) and the next phase of the Karakoram Highway. The conference, which was attended by representatives of academia, think tanks, diplomatic corps and media, aimed at analyzing the potential benefits of the mega infrastructure-cum-communications project for both Pakistan and China.

Oil needs to stay at $55 a barrel for the industry to turn around: Wood Mackenzie

Crude at $55 a barrel is the magic number for the oil and gas industry to turn around, Wood Mackenzie said in a new report released Monday, as the consultancy sounded an optimistic note on recent joint production cut announcements by OPEC and major non-OPEC countries. U.S. West Texas Intermediate was around $52 a barrel on Tuesday morning in Asia while Brent crude was around $55 a barrel.

Dutch company acquires Engro Foods for $446.81m:

Dutch company FrieslandCampina Pakistan BV (FC Pakistan) has completed its acquisition of a majority stake in Engro Foods at an estimated price of $446.81 million and the company is expected to bring in expertise and introduce new products.The Netherlands-based dairy company has acquired 51% stake at Rs120 ($1.14) per share in Engro Foods. It acquired 47.1% (or 361.29 million shares) from Engro Corporation, the parent company of Engro Foods, and another 3.9% (or 29.66 million shares) from general public, Faiz Chapra, Company Secretary, said in a notification to the Pakistan Stock Exchange on Monday.Engro Foods’ share price fell 1.05%, or Rs1.82, and closed at Rs170.03 with a volume of 1.34 million shares at the exchange on Monday. Engro Corporation’s share price increased 0.81%, or Rs2.53, and closed at Rs311.08 with a volume of 555,100 shares.

SECP registers 621 new companies in Nov:

The Securities and Exchange Commission of Pakistan (SECP) during November 2016 registered 621 new companies, an increase of 23% as compared to the corresponding month of preceding year.A growing trend has been witnessed in the company incorporation which is the direct result of numerous facilitation measures taken by the SECP in recent past.Around 85% companies have been registered as private limited companies, while around 11% companies were registered as single member companies. 4% of the companies were registered as public unlisted, association’s not-for-profit, and foreign companies. Moreover, 3 foreign companies were also registered by the CRO in Lahore and Karachi.Foreign investment has been reported in 37 new companies. These companies have foreign investors from, Afghanistan, Canada, China, Germany, Lebanon, Russia, New Zealand, Srilanka, Sudan, Sweden, Singapore, Taiwan, Turkey, the UAE and the UK.

Aptma lauds Punjab CM’s directives on uniform gas tariff;

The All Pakistan Textile Mills Association (APTMA) Punjab held a general body meeting at the APTMA Punjab office which was attended by the members from Faisalabad and Multan zone through video links.The meeting considered to formulate strategy for restoration of viability of textile industry and obtain one energy price across the country. In a unanimously passed resolution, the house lauded a timely support of Punjab Chief Minister Shehbaz Sharif for averting disparity in gas prices in Punjab against other provinces.While speaking on the occasion, APTMA Punjab Chairman Syed Ali Ahsan said a huge disparity of Rs530 per MMBTU was about to render the textile industry uncompetitive in Punjab against the mills located in other provinces due to the Economic Coordination Committee (ECC) decision of reducing system gas rates for the general industry from Rs600 per MMBTU to Rs400 per MMBTU. The reduced rate would not have no benefits for the industry in Punjab, he added.

Borrowing for budgetary support exceeds Rs 1 trillion:

The federal government's borrowing from the State Bank of Pakistan (SBP) for budgetary support has witnessed a healthy growth and reached over one trillion rupees during the current fiscal year. The substantial budgetary borrowing from SBP also reflects a straight shift in the federal government's borrowing from scheduled banks to SBP to meet its financial requirements.According to the SBP's Broad Money (M2) report, alone, the federal government borrowed Rs 1.075 trillion during July 1, 2016, to December 9, 2016, for budgetary support from the SBP compared with retirement of Rs 114 billion in the corresponding period of last fiscal year.