Tuesday 6 December 2016

SUNRISE CAPITAL (PVT) LTD | 7 December 2016 | TAKE OFF

Oil drops on doubts output cut will be deep enough to end glut:
Oil prices fell on Wednesday on persistent doubts a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over two years.International Brent crude oil futures were trading at $53.69 per barrel at 0131 GMT, down 24 cents, or 0.45 percent, from their last close.U.S. West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.37 percent, at 50.74 per barrel.
Shanghai Electric to invest $9bn in KE:
Shanghai Electric Power (SEP) of China on Tuesday offered $9 billion investment for the system upgrade of K-Electric.KE’s existing 66.4 per cent stakeholder Abraaj and prospective investor SEP held a joint meeting on Tuesday with a body constituted by the Cabinet Committee on Energy for the discussion on the KE transaction.The government agreed to continue 650MW electric supply from the national grid to Karachi provided the existing majority owner of KE cleared Rs138bn liabilities. “SEP, new proposed shareholder of KE, along with the management of KE presented their business plan worth $9bn for improving and value-adding in the KE power infrastructure, including transmission, distribution and generation,” an official statement said.
CCP imposes Rs150m fine on PSO for ‘deceptive’ marketing:
The Competition Commission of Pakistan (CCP) has fined the Pakistan State Oil (PSO) Rs150 million for a deceptive marketing campaign for some of its products.The state-owned oil marketing company has been penalised for violating Section 10 of the Competition Act of 2010. The order in this regard was passed by a CCP bench comprising chairwoman Vadiyya Khalil and members Dr Shahzad Ansar and Ikramul Haque Qureshi.The order was passed in light of an inquiry conducted by the CCP after receiving a complaint alleging that PSO has been deceptively claiming that the use of its products ‘Premier XL’ and ‘Green Plus’ results in more mileage and improved performance of a vehicle’s engine as they have various additives and are environment-friendly.
‘Italy aware of investment scope in Pakistan’:
Italian Deputy Minister for Economic Development Ivan Scalfarotto has called for establishing an inter-governmental framework to boost trade relations between Italy and Pakistan.Speaking at the Italy-Pakistan Trade and Business Investment on Tuesday, he said Italian investors are well aware of the investment scope and potential in Pakistan.The Board of Investment and the Italian Embassy jointly organised the Pakistan-Italy Investment Forum.He said the huge Chinese investment in Pakistan and Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline will play a vital role in the economic development of Pakistan and the region.He said the exchange of business delegations between the two countries should be increased to improve bilateral trade. Fifty businessmen accompanied the Italian minister during his two-day visit to Pakistan.
Indus Motor launches new Fortuner, Hilux Revo:
The Indus Motor Company (IMC) formally launched its new variants in the commercial vehicle and SUV range, the Hilux Revo and Fortuner, at a ceremony held in Lahore Tuesday.“To develop the Hilux and Fortuner, we took a radical approach to design, travelling across the world including Pakistan to observe and feel road conditions, drive patterns, traffic situations and listen to customers and dealers first hand,” said H Nakajima, Chief Engineer Hilux and Fortuner, while speaking at the launch.After exhaustive research and testing, we have developed the new Hilux and Fortuner, he added.
ECC dismisses proposal for 50% sales tax on gas supply:
The Economic Coordination Committee (ECC) of the cabinet has turned down a proposal to increase general sales tax by 33 percentage points on gas sales to the powerful industrial lobby.The ECC took the decision after considering proposals of the Ministry of Petroleum and Natural Resources in a meeting held on November 25, officials said.The ministry suggested a reduction in the gas sale price but at the same time advocated a higher sales tax at 50% compared to existing 17% for industrial consumers.
Toyota to expand hybrid system development to further cut emissions:
Toyota Motor Corp said on Tuesday it will expand the development of its gasoline-hybrid technology over the next five years to speed up the introduction of lower-emission engines in the face of stricter global emissions standards.The announcement was the latest by the Japanese firm aimed at making cars “greener” as global automakers face tighter regulations in China, the United States (US) and other regions that will require more environment-friendly cars in the coming years.Toyota is also stepping up the development of longer-range battery-electric cars, in a shift from an earlier strategy of promoting hydrogen fuel-cell technology as the future of zero-emission vehicles.“We need to take an aggressive approach to deal with changing regulations,” Toshiyuki Mizushima, president of Toyota's powertrain division, told reporters at a briefing.
ADB offers easy loans to Pakistan Railways:
Asian Development Bank (ADB) has shown keen interest to invest in Pakistan Railways by keeping in view its performance, development and progress.The ADB offered to provide loans to PR on flexible conditions for bringing advancement in railways infrastructure. A workshop of ADB and PR would be held tomorrow (Wednesday) in Islamabad to discuss the details of this offer, whereas Federal Minister for Railways Khawaja Saad Rafique, Railways Chairperson Perveen Agha, CEO Javed Anwar and other senior officials would also participate in the workshop.
Credit to PSEs up five times:
Credit to public-sector enterprises (PSEs) crossed Rs53 billion in the first five months of 2016-17, which is 4.6 times higher than the credit availed during the same period of the last fiscal year.The trend reflects the massive losses being made by public-sector unitsThe State Bank of Pakistan (SBP) reported on Tuesday the borrowing for PSEs rose to Rs53.69bn in the first five months of the current fiscal year, although it was just Rs11bn a year ago.The government failed to address the issue of loss-making PSEs, particularly Pakistan Steel, PIA and Pakistan Railways. Neither the privatisation of these PSEs could be initiated nor could their losses be curtailed. Instead, their losses have grown many times during the current fiscal year.

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