S.Korea's
Kia to start assembling cars in Pakistan: local partner
South
Korean carmaker Kia Motor Co will start assembling cars in Pakistan, according
to a local partner that is planning to invest Rs12 billion ($115 million) to
set up a plant and manufacture the Kia vehicles. Karachi-listed Lucky Cement,
which is part of the vast conglomerate Yunus Brothers Group, said in a
statement on Thursday it planned to set up a new company to start
"manufacturing, assembling" Kia vehicles. It was not clear how much
capital Kia itself would invest in the venture. Representatives for the South
Korean company could not immediately be reached for comment. Kia cars had been
assembled by Pakistan in the past but disappointing sales led to a halt in
manufacturing. The new venture will also market and sell, besides import and
export of, "all types of Kia vehicles, parts and accessories," Lucky
Cement told the Pakistan Stock Exchange in a statement.
10.65pc
capital adequacy ratio mandatory for banks:
The
State Bank of Pakistan (SBP) has increased the required Capital Adequacy Ratio
(CAR) for banks to 10.65 per cent, which will be implemented from the last day
of the current calendar year, the third quarterly report of the central bank
said. The current CAR requirement of 10.25pc includes a capital conservation
buffer (CCB) of 0.25pc. “The CCB will increase to 0.65pc by December 31, 2016,
bringing the CAR requirement to 10.65pc,” said the SBP. Pakistani banks have
been sound in terms of CAR despite their poor performance on the economic
front. Banks remained safe and profitable during the last couple of years
mainly because of the government’s borrowing, which is both risk-free and high
yielding for banks. The SBP said the solvency profile of the banking system
further strengthened in the third quarter of 2016 (July-September) as CAR
improved to 16.8pc at the end of September from 16.1pc at the end June, well
above the regulatory requirement of 10.25pc.
Reserves
down $270m:
Pakistan’s
total liquid foreign exchange reserves amounted to $23.3 billion on December 2,
down $270 million or 1.1 per cent from a week ago, the State Bank of Pakistan
(SBP) said on Thursday. According to a statement released by the central bank,
the decrease in reserves was on account of external debt servicing. SBP’s
liquid foreign exchange reserves decreased 1.2pc week-on-week to $18.3bn. Net
foreign exchange reserves held by commercial banks amounted to $4.9bn on Dec 2,
registering a nominal decrease over the preceding week.
Pakistan,
Iran look to revisit gas pipeline agreement:
Pakistan
has shared with Iran amendments to gas sale and purchase agreement (GSPA) to
extend implementation schedule and revise pricing under the $1.35-billion gas
pipeline project. A senior government official on Thursday told Dawn that the
Economic Coordination Committee (ECC) of the Cabinet hasn’t yet allowed the
Ministry of Petroleum and Natural Resources to start formal negotiations with
Iran over fresh pricing. He said the ministry requested the ECC in July this
year to revive a committee to start formal talks and “we are still waiting for
the approval”. The petroleum ministry told parliament a few days ago that for
the Iran-Pakistan (IP) project to be implemented in the extended period,
“amendment to the GSPA was required”. It said a draft amendment had been shared
with Tehran that agreed to negotiate it along with some other changes.
Understanding:
Pakistan, Italy textile groups to ramp up cooperation:
Trade
organisations of Pakistan and Italy have reached an understanding on promoting
and expanding cooperation between textile and apparel companies of the two
sides. Pakistan Readymade Garments
Manufacturers and Exporters Association (PRGMEA) and the Association of Italian
Textile Machinery Manufacturers (ACIMIT) inked a memorandum of understanding
(MoU) for collaboration. Representatives of major apparel associations and many
leading Italian textile machinery manufacturing companies were present
on the occasion. This is the first time that a Pakistani garment sector
association has entered into an agreement with the Italian body for
strengthening mutual trade in garments and textiles.
Chinese
bourses keen on acquiring PSX stake:
Three
of China’s financial market operators intend to jointly buy a combined stake of
up to 40% in the Pakistan Stock Exchange (PSX), a person with close knowledge
of the potential deal told China Daily. The source, who is with the Shanghai
Stock Exchange (SSE), said the SSE and two other bourses in China have
submitted a letter of intent to the PSX, China Daily reported. The source with
the SSE revealed that the acquisition attempt is still undergoing procedures
and more details will be disclosed jointly by the three buyers at an
“appropriate time,” if the acquisition is successful. The acquisition, if
successful, would be the first by Chinese bourses of a foreign stock exchange.
China’s news and business social media platform jiemian.com reported on
Wednesday that the three operators, namely the SSE, the Shenzhen Stock
Exchange, and the Shanghai-based China Financial Futures Exchange, would like
to buy stakes in the PSX, but the three operators declined to comment on the
acquisition at the current stage.
US
crude settles up 2.2% at $50.84, rallying after dip on OPEC deal doubt:
Oil
rebounded from the week's lows to close above $50 a barrel on Thursday as
market watchers focused on an upcoming weekend meeting between OPEC and
non-OPEC producers that may result in an agreement to cut crude output further.
Brent and U.S. oil prices gained support early from a slightly weaker dollar,
but the U.S. currency turned positive as the euro fell on the European Central
Bank's decision to extend but reduce its bond-buying program. North Sea Brent
crude was up 94 cents, or 1.8 percent, at $53.94 a barrel by 2:35 p.m. ET (1935
GMT). U.S. light crude was up $1.07, or 2.2 percent, at $50.84 a barrel.
SECP
issues 54 show-cause notices:
The
Securities and Exchange Commission of Pakistan (SECP) initiated 54 show-cause
proceedings and concluded 50 current proceedings during October and November
against management and companies’ auditors for various violations, it said in a
statement on Thursday. The commission mandates companies to ensure compliance
in areas like inter-corporate financing, mandatory maintenance of websites and
submission of quarterly reports. The SECP, after giving the companies reminders
through the media to have mandatory company websites rendering critical
information to current and potential investors, initiated 17 new show-cause
proceedings against those who failed to do so.
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