Chinese ministry
okays SEP-Abraaj deal:
Shanghai
Electric Power (SEP) said on Friday it has received approval from the Chinese
Ministry of Commerce to acquire stakes in K-Electric.One of Abraaj Group’s
companies, KES Power, had reached an agreement with SEP in October to divest
its stake in K-Electric, the country’s largest and only vertically integrated
power utility.Abraaj owns 66.4 per cent of K-Electric’s total shares, along
with management control. The deal, when closed, will be worth $1.77 billion.SEP
is a state-owned enterprise controlled by China’s State Power Investment
Corporation, a Fortune 500 company.Listed on the Shanghai Stock Exchange, it is
mainly responsible for Shanghai’s power supply, with a generation of 35.23TWh
(terawatt hours) last year.
Petrol,
diesel prices up by Rs1.77, Rs2 a litre
The
government on Sunday announced plans to increase the prices of MS 92 RON petrol
and high speed diesel (HSD) by Rs1.77 per litre and high-speed diesel (HSD) by
Rs2 per litre, respectively. The new petroleum prices will take effect from
January 16 and be effective till January 31. This is the second time that the
government switched from a monthly to a fortnightly oil prices review. Finance
Minister Ishaq Dar announced that the rise in petrol price was in line with
Ogra’s recommendations, but the increase in HSD rate was almost half of the
suggested increase.
Sales
tax on motor spirit, HSD oil increased:
The
Federal Board of Revenue (FBR) has increased sales tax on motor spirit and high
speed diesel oil from January 16, 2017. Explaining the SRO 21(I)/2016 issued by
the FBR here on Sunday, sources said that the sales tax on motor spirit has
been increased from 14.5 percent to standard rate of 17 percent. The motor
spirit has been excluded from the table of petroleum products specified in the
SRO 21(I)/2016. The exclusion of motor spirit from SRO 21(I)/2016 has brought
this POL product under the standard rate of sales tax ie 17 percent.
New
PSM plan may be approved tomorrow:
Privatisation
Board headed by Chairman Privatisation Commission Muhammad Zubair is to approve
new plan to dispose of dysfunctional Pakistan Steel Mills (PSM) on Tuesday
(tomorrow). According to sources, the Board would discuss both options ie long
term lease and sell off, adding that if the board clears the proposals, then it
would be submitted to the Cabinet Committee on Privatisation (CCoP) that is
expected to meet on January 20. Finance Minister Senator Ishaq Dar will preside
over the CCoP meeting.
Debt
securities trustee: SECP fixes Rs 50 million minimum equity requirement
The
Securities and Exchange Commission of Pakistan (SECP) has fixed Rs 50 million
as minimum equity requirement for performing functions of a debt securities
trustee. The SECP has issued Debt Securities Trustees Regulations, 2017 to give
a comprehensive regulatory framework under the Securities Act, 2015 for
licensing and regulation of debt securities trustees (DSTs). According to
sources, the validity of DSTs' licence has been reduced from three years to one
year as per requirement of the Securities Act. Banks, development financial
institutions and investment finance companies may act as DSTs subject to the
condition that they remain compliant with the requirements of the act and the
regulations at all times. In order to facilitate the development of the debt
market, DST has been allowed to make investment up to 10 per cent in the debt
issue of which it is acting as a DST, subject to the condition that it would
hold such investment till maturity.
SECP
issues Share Registrars & Ballotters Regulations:
The
minimum paid-up capital of Rs 3 million has been fixed by the Securities and
Exchange Commission of Pakistan (SECP) for grant of license to any public
limited or private limited company for working as share registrar and
ballotter. Through an SRO 16(1)/2017, the SECP has issued Share Registrars and
Ballotters Regulations, 2017 which would be applicable on Share Registrars and
Balloters. The SECP said that no person shall act or perform the functions of a
share registrar and balloter unless such person is licensed as a share
registrar and balloter by the Commission under these regulations. Provided that
a person registered as a share registrar and balloter under the Balloters and
Transfer Agents Rules, 2015, prior to coming into force of these regulations,
shall be deemed to be licensed as a share registrar and balloter under the Act
and these Regulations till the time its existing certificate of registration
remains valid. The share registrar and balloter shall obtain licence under the
Act and these Regulations upon expiry of its certificate of registrations
granted under the Balloters and Transfer Agents Rules, 2015.
240
LNG shipments: financial bids for supply to open on January 19:
Pakistan
LNG Limited (PLL) is to open financial bids for the supply of 240 shipments of
liquefied natural gas (LNG) on Jan 19, while contracts to successful bidders
will be awarded on Jan 31, it is learnt. Reliable sources in the Ministry of
Petroleum and Natural Resources told Business Recorder on Saturday the
state-owned PLL issued two separate tenders for the supply of 200 million cubic
feet per day (mmcfd) of LNG and in response a total 14 global LNG suppliers
submitted their bids to be completed on Jan 31. Sources maintained that PLL on Dec
20 opened technical bidding of two tenders issued last month. The mid-term
tender covers a period of five years and calls for 60 shipments, while the
long-term tender is for 15 years and 180 shipments.
Pakistan
likely to sign FTA with Turkey, Thailand:
High
level delegations from Turkey and Thailand will visit Pakistan on January 17 to
negotiate Free Trade Agreements (FTAs), which are likely to be signed within
three months. "Delegations from Turkey and Thailand are coming for
negotiations on January 17 to speed up the process and negotiate commodity
lists and tariff rates," a top official in the Ministry of Commerce said.
Talking about the FTA with China, the official said that Phase-II of the FTA
with China was also due. He said FTA between the two countries was signed back
in 2007. He, however, added that Pakistan was desirous to have duty relaxation
on 50 products before launching the phase-II. He said that Pakistan wanted
relaxation on these products to protect the local market and ensure competitiveness.
Multi-phased
CPEC to enhance exports, foreign exchange:
China
Pakistan Economic Corridor (CPEC) - a multi-phased project about binding people
through the bond of shared development and prosperity - is set to take Pakistan
to new horizons on economic front. CPEC which is not just a corridor of
connectivity to bring the places closer but a project of immense potential
bound to change the destiny of the whole region. One of the most important
phase of China Pakistan Economic Corridor (CPEC) is its industrial phase which
will start soon, according to which 36 Economic Zones will be set up in various
areas of the country. According to estimates under recently enhanced version of
CPEC, as many as 2.3 million jobs for skilled and professional staff will be created
through different ventures. Jobs for semi skilled and unskilled persons and
indirect jobs will also be in millions.
Bank
deposits rise:
The
government raised Rs251.19bn from the auction of Market Treasury Bills of
various tenors held on Jan 5, surpassing its target of Rs200.00bn. Of the
total, six month T-bill fetched Rs216.55bn at a cut off yield of 5.99pc,
followed by 12 month T-bill with Rs23.59bn at 5.99pc, and three month bill
Rs11.05bn at 5.95pc. The central bank had received total bids worth Rs634.43bn:
6 month T-bill Rs351.41bn, followed by three month T-bill Rs180.03bn and 12
month T-bill Rs102.98bn. According to the weekly statement of position of all
scheduled banks for the week ended Dec 30, 2016 deposits and other accounts of
all scheduled banks stood at Rs11,202.89bn after a 5.06pc increase over the
preceding week’s figure of Rs10,663.65bn. Compared with last year’s
corresponding figure of Rs9,675.59bn, the current week’s figure was higher by
15.78pc.
Banks’
renewed interest in project financing:
Whatever
banks have done in project financing over the last three years has prompted
them to take further steps in 2017. And, as the economy looks set to grow at a
5pc plus rate and as new CPEC-related projects keep coming up, banks are
getting ready for big lending. “This means we’re going to see a sort of
industrial revival taking place in coming years. I hope project financing is
going to remain robust in 2017 and beyond,” says a senior official of the
Pakistan Banks Association. So far bank financing has not only gone into
financing traditional balances, modernisation and rehabilitation of
manufacturing facilities but also into Greenfield projects, top bankers say.
Introducing
negative income tax:
The
concept of modern state in the 21st century is based on the social and economic
welfare of the people. The state, under the cover of social contract, as
enshrined in the constitution, has obtained the power of taxation with a
promise to spend the collected money on public welfare. The annual budget of different
governments contains subsidies and welfare grants for the marginalised or poor
segments of the society. These subsidies and grants are disbursed from the
taxes collected.
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