News Pulse (September 17, 2013) ADB projects worth $12.4 billion deemed failures (TN) At least 77 percent Asian Development Bank (ADB) projects - costing $12.4 billion – being funded for Pakistan have failed to achieve the desired results, The News has learnt. An internal report prepared by the Economic Ministry — a copy of which is with The News — has disclosed that only 22.2 percent ADB projects remained successful during the last decade, resulting in increased debt burden for the country. It was said Pakistan was paying commitment charges in the range of $30 to $50 million per annum because of its inability to utilize approved the projects. ‘Pakistan likely to get GSP Plus in December’ (TN) The European Parliament will likely grant GSP Plus status to Pakistan in its upcoming meeting scheduled for December, 2013, according to Danish Ambassador to Pakistan Jesper Moller Sorensen. “Pakistani exports to the European market would get a considerable boost as soon as the country gets GSP Plus status from EU parliament, said ambassador during a meeting with LCCI President Farooq Iftikhar here at the Lahore Chamber of Commerce and Industry (LCCI) on Monday. Sorensen said Pakistan is a lucrative market with enormous business opportunities, low labour costs, a rising middle class and a large youth population, “Our goal is to increase Danish exports of goods to Pakistan by 40 percent over the next three years,” he said, adding that Denmark is keen on strengthening bilateral trade relations with Pakistan. FDI rises by over 100pc in two months (TN) Foreign direct investment (FDI) surged by more than 100 percent on year-on-year basis during July-August due to investors’ confidence in government policies, data from the State Bank of Pakistan (SBP) showed on Monday. Pakistan attracted $105.4 million in FDI during July-August, up by 101.2 percent from the corresponding period last fiscal year. The FDI volume amounted to $52.4 million in July-August 2012. Oil and gas exploration, chemicals and food sector accounted for almost more than half of the total FDI inflows during the period under review, it showed. During August, the volume amounted to $2.5 million. PRL approves $50m for isomerisation unit (TN) The board of directors of Pakistan Refinery Limited (PRL) on Monday took the final decision to invest $50 million to install an isomerisation unit. According to Asim Akhund, company secretary, the company had completed the front end engineering design (FEED), following which the board approved the project.With the introduction of the isomerisation unit in the refinery, PRL will be able to double its production of petrol from 11,000 tons to 12,000 tons per month to 23,000 to 24,000 tons, leading to saving of foreign exchange and reducing the trade deficit. $1b funds for CASA-1000MW project arranged (Nation) Afghanistan, Kyrgyz Republic, Tajikistan and Pakistan on Monday officially signed an Inter-Governmental Council (IGC) resolution to develop the CASA-1000 mw project while Power Minister Khawaja Muhammad Asif has claimed arrangement of required funds to materialise the landmark energy project. A meeting of four countries hosted by the Pakistan was held here to materialise the import of electricity under the Central Asia South Asia Electricity Transmission and Trade Project, best known as CASA-1000. The four participating governments of Afghanistan, Kyrgyz Republic, Tajikistan, and Pakistan signed their commitment to develop the energy project in 2014 by officially signing the IGC resolution on project structure and key commercial principles at the ministerial level meeting. Rs 165 billion in two months: Ministry told to explain circular debt resurgence (BR) The Ministry of Water and Power has been asked to explain the reported resurgence of circular debt to the tune of Rs 165 billion within two months despite payment of Rs 480 billion to clear the circular debt. A Senate sub-committee on Water and Power expressed dismay over resurgence of the circular debt and remarked that the committee would like to know from the ministry how much electricity was added to the system by the Independent Power Producers (IPPs) after the circular debt was cleared earlier. The committee also sought reports from Ministry of Water and Power on cost escalation of Nandipur power project as well as names of IPPs and their owners whose debt was cleared. Senator Maula Bux Chandio who led a three-member parliamentary committee stated that the committee would probe and expose those responsible for the delay and cost escalation of Nandipur power project. He added that the delay in the project and cost escalation was mentioned by Prime Minister Nawaz Sharif in his speech and people need to know the reasons for the delay. E&P companies: tax concessions cannot be unilaterally withdrawn: MoP (BR) The Ministry of Petroleum has conveyed to the Federal Board of Revenue (FBR) that duties and taxes concessions granted to oil and gas exploration and production (E&P) companies cannot be unilaterally withdrawn without renegotiating with the E&P companies. Sources told Business Recorder here on Monday that the tax concessions to the E&P companies came to the light during the first meeting on review of concessionary regime convened at the FBR House. A high-level committee on regulating concessionary regime under SROs has been recently held at the FBR. Cement producers ‘salvage’ cartel (Dawn) Cement producers in the country managed to salvage the ‘quota and price arrangement,’ widely known as ‘cartel’, on Monday, after the estranged biggest player in the industry, Lucky Cement Company Limited was persuaded to return to the fold of the manufacturers’ lobby, the All Pakistan Cement Manufacturers’ Association (APCMA). Lucky had earlier resigned on differences with other competing cement producers. CEO Lucky Cement Muhammad Ali Tabba confirmed to Dawn on Monday afternoon that Lucky has rejoined APCMA. For further details contact: Hassan Amin [email protected] +9221-111-226-100 – Ext 702 701-702 7th Floor, Business & Finance Centre, I.I. Chundrigar Road, Karachi, Pakistan Regards, Research Department Summit Capital (Pvt.) Limited Phone: +9221-111-226-100 Direct: 92-21-32467964 Fax: 92-21-32467959 Email: [email protected]
Posted on: Tue, 17 Sep 2013 04:28:30 +0000