PRO 18-09-2012_Layout 1 9/18/2012 2:01 AM Page 1
Tuesday, 18 September, 2012
The Doc hankering after power ‘Pakistan has potential for foreign investment in energy sector’ ISLAMABAD
F
OnlinE
EDERAL Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh has said that Pakistan has huge potential of foreign investment in the energy generation and telecom sectors. He stated this in a meeting with Norwegian delegation led by Tide Tec CEO Arne Kollandsrud here on Monday to discuss different matters on introduction of wave/tidal based electricity production in Pakistan. Finance Minister acknowledged and appreciated the idea of tidal based energy generation in the wake of current energy shortage and soaring fuel prices in the country. He informed the delega-
tion that energy wing of Planning Commission mainly dealt with such types of projects and the Deputy Chairman Planning Commission and his team will coordinate with the delegation to move ahead in this regard. Similarly a series of meetings shall be setup with officials of Private Power and Infrastructure Board (PPIB), Ministry of Water and Power, Central Power Purchasing Agency (CPPA, Ex-PEPCO) and Planning Department of Sindh Government within a few days to work further into the details of project, added by Finance Minister. He also assured the delegation that the finance division will provide full support to them on all forums. Earlier, in a detailed presentation, Tide Tec, Consultant, Lunderby briefed the participants of the meeting about the phenomenon, challenges and procedural
steps for installation of wave/ tidal based power plant. He informed the Minister that tidal/wave energy was a form of renewable energy in which power of waves produced in a channel or ocean is used to run the turbines turning on electric generators to produce electricity. The company “Tide Tec” was specialized in developing technology for energy producing bridges by harnessing potential of tidal and wave energy. He also informed that tidal energy was environment friendly and more predictable as compared to wind energy. Cost for establishing wave energy infrastructure was approximately equal to the wind based
power plant. The company will follow the steps of Technology verification, Pre study, Scale Test and Full scale production respectively for establishment of wave/tidal based energy production in Pakistan, informed the delegation.
‘Negative list hinders trade growth’ ISLAMABAD APP
It’s raining cars! Automobile production increases in 1st month of current fiscal year ISLAMABAD APP
Despite challenges of energy shortage, the production of various automobiles witnessed increase during the first month of the current fiscal year as compared to the same month of last year. The production of jeeps and cars witnessed an increase of 2.35 percent in July 2012 as compared to the production of July 2011, according to the data of Pakistan Bureau of Statistics (PBS). The production of cars and jeeps increased from 10,753 units in July 2011 to 11,006 units during July 2012, the PBS data revealed. Similarly, the production of Light Commercial Vehicles (LCV’s) witnessed surge of 45.33 percent by going up from 1,562 units in July 2011 to 2,270 units in July 2012. The production of motorcycles increased from 139,056 units in July 2011 to 139,125 units in July 2012, showing an increase of 0.05 percent. Production of buses increased from 32 units to 36 units, showing an increase of 12.50 percent while the production of tractors increased from 1,735 units to 4,569 units, showing growth of 163.34 units. However, the production of trucks during the month under review witnessed negative growth of 33.15 percent as its production decreased from 178 units in July 2011 to 119 units in July 2012, according to the data. It was pertinent to mention here that the overall Large Scale Manufacturing (LSM) witnessed growth of 0.60 percent during the month of July 2012 as compared to the same month of last year. Among the LSM Sector the indices monitored by Ministry of Industries witnessed increase of 0.26 percent whereas the indices monitored by the provincial Bureaus of Statistics witnessed increase of 0.54 percent. However, the indices monitored by Oil Companies Advisory Committee witnessed negative growth of 0.21 percent, the PBS data revealed.
Extensive sensitive lists being maintained by different countries was hindering progress and growth of trade within SAARC countries, the Attock Chamber of Commerce and Industry (ACCI) observed. “The last two decades have witnessed a number of attempts by South Asian countries to promote intra-regional trade through several agreements but with limited success,” ACCI, President, Tariq Mehmood said while addressing business community. Main reason behind reduced intraSAARC trade, which was hovering around four per cent of the total trade, was large negative trade lists maintained
Pakistan-India Commerce Secretary level talks from 20th ISLAMABAD: The Pakistan-India Commerce Secretary level talks will be held here from September 20. Indian Commerce Secretary, S. R. Rao accompanied with an 11-member delegation is to visit Pakistan on September 20 to hold secretary level talks with his Pakistani counterpart Munir Qureshi here, a senior official in the Commerce Ministry told APP. Both sides will discuss various issues including development on negative list between the two countries, bilateral trade. APP by the member countries which had left all efforts to boost trade almost unsuccessful, he added He was of the view that all countries of the region must realize that trade agreements could be beneficial only when negative lists were maintained on merit and for a specific period
to be phased out eventually. FPCCI Committee on Health, Chairman, Tariq Mehmood, said that all SAARC countries should review the sensitive lists for reduction every two years under the tariff liberalization programme of SAFTA.
Efforts required to curb smuggling on Pakistan-Iran border ISLAMABAD APP
Azad Group Lahore Chamber of Commerce Chairman Raja Hassan Akhtar and President Salman Ali said that the visit of President Tehran Chamber of Commerce would bring the two countries closer to each other through bilateral trade and mutual contacts. In a joint statement issued here on Monday, they said Pakistan wanted friendly relations with all countries including India, Afghanistan and Iran. “Azad Group Lahore Chamber of
Commerce welcomes Iranian trade delegation with the bottom of heart”. Azad Group Secretary General Mian Shabbir, Senior Vice Chairman Muhammad Yasin, Mian Nawaz, Mian Imran Asghar, Manzoor Butt, Idrees Tabassum and other leaders urged the government to stop forthwith the smuggling going on at Iran-Pakistan border and legalize this illegal trade. They also stressed upon issuance of visa through simple means that will boost up confidence of traders of both countries. “There is a large market for Pakistani goods in Iran and several Iranian goods could make inroads in Pakistani markets with ease”.
‘Rs.115.3 billion transaction proceeds till June 30, 2012’ ISLAMABAD OnlinE
More than 28.4 million transactions worth of Rs.115.3 billion have been processed during the quarter ending June 30, 2012 a state bank official said. The State Bank official said the number and value of transactions per quarter have grown rapidly during the second quarter (April-June) 2012 and 35 per cent respectively. The growth in value of transactions was almost 3 times more than the growth in number of transactions; accordingly the overall average size of transaction was increased from Rs 3,853 to Rs 4,065 during the quarter. The official further said the composition of transactions remained almost similar to the previous quarter. In value terms agents, bulk transfers purchasing e-float, depositing excess cash in their accounts etc. topped by 41 per cent share followed by P2P and bill payments and Mobile Top-ups with 35 per cent and 11 per cent shares respectively. In number of transactions, bill payments and Top-Ups have the biggest share of 50 per cent followed by P2P transactions with 6 per cent share.
CNG association to devolve future strategy ISLAMABAD OnlinE
All Pakistan CNG Association has decided to meet tomorrow (Wednesday) to devise their strategy against the rising trend of CNG prices in the country. Talking to online here on Monday All Pakistan CNG association (APCNGA), Chairman, Ghiyas Paracha said that after recent increase of Rs 6.20 in the price of CNG was unjustified and unfair with the already price stricken masses of the country. He said that this increase would not favor the interest of common man and will boost inflation in the country thus directly affecting lives of masses. Paracha said that it was very unfortunate that government had given the authority to Pakistan State Oil (PSO) to regulate the prices of CNG as with the prices of petroleum products PSO increases the prices of CNG. He said that CNG sector was paying Rs 1110 as tariff while other sectors including industry were paying Rs 510 tariff , therefore, being largest payer government should facilitate CNG sector. Ghiyas Paracha alleged that being a regulator of this sector Oil and Gas regulatory Authority (OGRA) was not working according to its given mandate and behaving like step mother with this important sector.
E&P sector’s contrasting performances KARACHI STAFF REPORT
Topline of the E&P Sector experienced impressive escalation of 25% YoY mainly due to 4.4% YoY depreciation of Pak Rupee (PKR) against the Greenback (USD), handsome increase of 21% YoY in the price of crude oil (Arab Light) and rise in the well head price of major gas producing fields (Qadirpur up 3% YoY and Sui up by massive 24% YoY). Despite the up tick in the operating cost coupled with 28% YoY increase in the royalty during the period under consideration the gross margins of the sector experienced minor expansion of 2pps. Exploration costs of the sector were dampened by 40% during FY12, highlighting the passive exploration policies that were followed by the com-
panies in PPL, POL & OGDCL for the majority of the year, said the analysts at InvestCap Reserach. They said the mammoth increase of 150% YoY experienced under the other income head primarily due to the increase of astounding 161% YoY felt by PPL in the other income due to reversal of provision for workers welfare fund amounting to Rs4.4bn was the prime driver in swelling the sectors net margins by 5.5pps during FY12. As a result the sector’s bottom line felt robust growth of 41% YoY during FY12. Despite additional production coming in from Makori East, topline of the sector during 4QFY12 remained stagnant at Rs87bn. This was primarily due to 9% QoQ reduction in the price of crude oil (Arab light) coupled with mere 1.7% depreciation of PKR against
USD during the mentioned period. In addition to sluggish topline performance, the operating cost of the sector was jacked up by huge 80% as compared to previous quarter, which resulted in contracting the gross margins by meaningful 9pps QoQ. 49% QoQ increase in the exploration cost point towards the fact that companies adopted aggressive exploration activities to achieve their exploration targets. Bottomline of the sector was tapered off 10% during 4QFY12 against the previous quarter. However, the mentioned head could have thinned by
20% QoQ had it not been for the massive Rs4.4bn increase in other income head of PPL, which bolstered the sector’s other income by astonishing 127% QoQ. With fall in the US oil stocks due to hurricane Isaac we expect exuberant buying to come in from the US, coupled with the stimulus policy announced by the Fed was foreseen to inflate the price of the commodity in the international markets, therefore bolstering the profitability of the local E&P companies going forward.