Wednesday 21 December 2016

SUNRISE CAPITAL (PVT) LTD | 22 December 2016 | TAKE OFF

Oil prices rise on weaker dollar, optimism on output cuts:
Oil prices nudged higher in tepid Asian trading on Thursday, supported by a weaker dollar and optimism crude producers would abide by an agreement to curb output to prop up markets.But gains were capped by an unexpected rise in U.S. crude inventories last week and as Libya said it expected to boost output over the next few months.U.S. West Texas Intermediate crude CLc1 had risen 13 cents to $52.62 a barrel by 0121, after closing the previous session down 81 cents.Brent LCOc1 futures for February delivery climbed 17 cents to $54.63 a barrel, having previously finished 89 cents lower.
Maple Leaf wins power generation license:
The regulator has granted a power generation license to Maple Leaf Power Limited, clearing the way for setting up an imported coal-fired plant of 40 megawatts at an estimated cost of Rs5.5 billion. It will supply electricity to its parent company, a cement manufacturer based in Lahore, which is expected to start by July 2017. “Electric power from the coal-based generation facility/thermal power plant of the licensee/Maple Leaf Power Limited (MLPL) will be supplied to Maple Leaf Cement Factory,” said National Electric Power Regulatory Authority (Nepra), the power industry regulator, in a notification on Wednesday.
Discos, except KE, seek tariff cut by Rs3.6/unit for November:
The electricity tariff for all distribution companies, except K-Electric, is expected to come down by Rs3.60 per unit for a month due to higher than justified billing to consumers in November despite cheaper generation cost.According to a petition filed by the Central Power Purchasing Agency (CPPA) before the National Electric Power Regulatory Authority (Nepra), the distribution companies had overcharged consumers to the extent of 49 per cent in November under a presumptive reference tariff.The reduction in actual generation cost was mainly because of better energy mix, significantly greater contribution from domestic sources of energy – hydropower and natural gas – when compared with expensive imported fuels in October.The CPPA said the actual generation cost was lower and hence extra money collected needs to be refunded to the consumers through adjustment in the next billing month under automatic fuel pass through mechanism.
Collaboration: Chinese delegation expresses interest in textile:
Chinese investors visiting from the Shenzhen province have shown deep interest in Pakistan’s textile sector including the desire to enter into deals with businessmen for the sale of goods and purchase of textile raw material.Pakistan’s textile sector had a great opportunity to capture a good share in the international market, the Chinese said. Pakistani counterparts invited them to join them for value addition in the textile sector in Karachi.
Poverty-hit areas: ECNEC extends scope of health plan to 11 more districts:
The federal government on Tuesday extended the Prime Minister’s National Health Program to 34 districts despite struggling to fully implement the health insurance scheme in the already approved almost two-dozen poverty-stricken districts of the country. The Executive Committee of National Economic Council (Ecnec) approved the revised Prime Minister’s National Health Program Phase-I costing Rs8.2 billion. Overall, the committee approved eight schemes valuing Rs142.6 billion. The health insurance program will be implemented in 34 districts all over Pakistan at a rationalized cost of Rs8.2 billion, according to an official statement. Two more districts have been added in each province and special regions.
POL prices likely to increase next month:
The government is expected to increase prices of petroleum products from January 1. The domestic price of petrol is likely to be increased by Rs1.28, while the price of High Speed Diesel is likely to be increased by Rs1.31. The price of High Octane is likely to be increased by Rs2, while the price of kerosene oil is likely to be increased by Rs1.46. The summary would be sent to Ministry of Petroleum for approval on December 29 as part of monthly revision of the POL prices.
PSO given the nod to grab majority stake in Pak Refinery:
The Competition Appellate Tribunal has dismissed an appeal filed by Hascol to prevent Pakistan State Oil (PSO) from acquiring Shell’s shares in Pakistan Refinery Limited (PRL).In the proceedings, Hascol failed to produce any substantial evidence both before the Competition Commission of Pakistan (CCP) as well as the Appellate Tribunal to establish that the proposed acquisition would lead to a substantial lessening of competition or result in “input foreclosure”.
Pak Suzuki will launch Celerio in March 2017, Cultus to make exit:
Pak Suzuki Motor Company (PSMC) – the country’s largest car manufacturer with over 50% market share – has decided to launch the standard model of Suzuki Celerio in March 2017, confirmed a company official Tuesday.A formal announcement, according to reports circulating on social media and Suzuki Pakistan’s official Facebook page, is likely to be made by the company today (Wednesday).
July-November current account deficit up 91%:
The country's current account deficit reached $2.6 billion, up over 90 percent, in first five months of this fiscal year (FY17), primarily driven by higher deficit of goods and services trade, besides slow foreign inflows. The State Bank of Pakistan's statistics revealed Tuesday that the country's current account deficit continues to deteriorate, posting a substantial increase of 90.96 percent during July-November of current fiscal year. Current account balance registered a $2.601 billion deficit during July-November of FY17 compared to $1.362 billion in the corresponding period of FY16, depicting an increase of $1.24 billion. Month-on-month basis, during November 2016, current account posted a healthy deficit of $839 million compared to $381 million in October 2016. Independent economists argue that the deterioration in current account balance is a threat to the country's foreign exchange reserves as the government is compelled to spend millions of dollars every month to finance the current account.



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