Category: Affairs

Pakistan’s Minister for Power, Khurram Dastgir Khan, said that, with the inception of the China-Pakistan Economic Corridor (CPEC) 10 years ago, relations between the two countries qualitatively changed into a deep economic partnership.

“CPEC is a deep commitment by the government and the people of China, to the future economic development of Pakistan,” the minister told the celebrations of safe operation for 1,000-days of ±660kV Matiari-Lahore high-voltage direct current (HVDC) transmission project under CPEC.

Highlighting the 10th anniversary of CPEC, he said, Pakistan had crippling energy shortages with regular load shedding, along with a strong wave of terrorism a decade ago, due to which none of its international partners were willing to come out actively for its support.

“China came and stood beside Pakistan shoulder to shoulder,” Khan said, adding that, “it is the tough times that allow you to recognise your true friends.”

Regarding the Matiari-Lahore transmission line, the minister said, this 886-km-long network, connecting the power projects from Pakistan’s northern mountains, all the way up to the southern parts, represents a deep bond of friendship between the two countries.

On the occasion, Li Yong, counsellor of commercial affairs at the Chinese Embassy in Pakistan, said, the only power transmission project under CPEC, has already delivered almost 27 billion kilowatt-hours (kWh) of electricity.

“The Chinese side is willing to work closely with the Pakistani counterpart, to fully implement the consensus reached by the leaders of the two countries, to promote the high-quality development of CPEC and turn it into a high-quality demonstration project for Belt and Road cooperation.”

Launched in 2013, CPEC is a corridor linking the Gwadar port in south-western Pakistan with Kashgar in north-west China’s Xinjiang Uyghur Autonomous Region, which highlights energy, transport and industrial cooperation.

The Matiari-Lahore transmission project was invested and constructed by the State Grid Corporation of China. The construction started in Dec, 2018, and around 7,000 jobs had been created for the locals during the construction period.

The commercial operation of the project, which has the maximum capacity to transmit electricity of 35 billion kWh annually, started in Sept, 2021

Source: Nam News Network

The National Electric Power Regulatory Authority (NEPRA) Tuesday announced an increase in electricity prices by Rs. 1.25 per unit.

According to a notification issued by NEPRA, the increase was approved on the requests filed by XWDISCOs for periodic adjustment in tariff for the 3rd quarter of FY2022-23.

NEPRA said that XWDISCOs, in line with NEPRA Act and the prescribed quarterly adjustment mechanism, as per their tariff determination, filed their adjustment requests on account of variation in PPP, including the impact of TandD losses etc., for the 3rd quarter of the FY 2022-23 i.e. from January to March 2023.

The Authority has allowed positive quarterly adjustments of Rs. 46,536 million (per unit impact of Rs. 1.25) pertaining to the 3rd quarter of the FY2022-23, to be recovered from the consumers in a period of 03 months i.e. July, August and September 2023.

Source: Pro Pakistani

Cement sales in Pakistan declined by 22.80 percent in June 2023, while total despatches during June 2023 were 4.063 million tons against 5.264 million tons during the same month of the previous fiscal year.

According to the data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement despatches by the industry during the month of June 2023 were 3.487 million tons compared to 4.979 million tons in June 2022, showing a decline of 29.97 percent.

Export despatches increased by 102.59 percent as the volumes increased from 284,471 tons in June 2022 to 576,309 tons in June 2023.

In June 2023, North-based cement mills despatched 2.950 million tons of cement showing a decline of 30.08 percent against 4.220 million tons despatches in June 2022. Meanwhile, south-based mills despatched 1.113 million tons of cement during June 2023 which was 6.60 percent more compared to the despatches of 1.044 million tons during June 2022.

North-based cement mills despatched 2.855 million tons of cement in domestic markets in June 2023 showing a decline of 30.75 percent against 4.122 million tons despatches in June 2022. South-based mills despatched 632,093 tons of cement in local markets during June 2023 which was 26.23 percent less compared to the despatches of 856,863 during June 2022.

Exports from North-based mills dropped by 1.88 percent as the quantities reduced from 97,163 tons in June 2022 to 95,333 tons in June 2023. Exports from the South increased by 156.78 percent to 480,976 tons in June 2023 from 187,308 tons during the same month last year.

During the fiscal year 2022-23, total cement despatches (domestic and exports) were 44.579 million tons, 15.71 percent lower than 52.891 million tons despatched during the last fiscal year. Domestic despatches were 40.013 million tons against 47.635 million tons during last year showing a reduction of 16.00 percent.

Export despatches were also 13.13 percent less as the volumes reduced to 4.566 million tons during the fiscal year 2022-23 compared to 5.256 million tons of exports done during the last fiscal year.

North-based Mills despatched 32.776 million tons of cement domestically during the fiscal year 2022-23 showing a reduction of 16.89 percent from cement despatches of 39.439 million tons during the last fiscal year. Exports from the North increased by 17.41 percent to 1.069 million tons during the fiscal year 2022-23 compared with 911,065 tons exported during the last fiscal year.

Total despatches by North-based Mills reduced by 16.12 percent to 33.846 million tons during the fiscal year 2022-23 from 40.350 million tons in the same period last year.

Domestic despatches by South-based Mills during the fiscal year 2022-23 were 7.237 million tons showing a reduction of 11.70 percent over 8.196 million tons of cement despatched during the last fiscal year. Exports from the South declined by 19.53 percent to 3.496 million tons during the fiscal year 2022-23 compared with 4.345 million tons exported during the last fiscal year.

Total despatches by South-based Mills reduced by 14.41 percent to 10.734 million tons during the fiscal year 2022-23 from 12.541 million tons last year.

An APCMA spokesman said the government should facilitate export-oriented industries so that we can regain momentum in the international markets and the country can come out of the difficult times. Boosting exports will play a pivotal role in the revival of our economy. The signing of a standby agreement with the International Monetary Fund is only an interim solution and we must use our own resources in order to build a stronger Pakistan, he added.

Source: Pro Pakistani

The Pakistan Stock Exchange, yesterday, witnessed a historic single-day gain, in the first trading session, following a staff-level agreement with the International Monetary Fund (IMF).

The Pakistan Stock Exchange’s benchmark KSE 100-Index, moved up by 5.57 percent or 2,446.32 points, to close at 43,899 points yesterday, when compared with 41,452.68 points reported in the previous session.

According to market analysts, the bull run in the stock market is a direct outcome of the country’s agreement with the IMF.

The IMF and the Pakistani authorities reached a staff-level agreement last week, on a nine-month Stand-By Arrangement, in the amount of around three billion U.S. dollars, which is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

The market has been witnessing a depressing trend in the past months, due to the uncertainty that was looming around the approval of the IMF programme.

The arrangement brought a significant positive sentiment in the market and among the traders, which resulted in record gains in the market, according to analysts

Source: Nam News Network

Finance Minister Ishaq Dar has said that Consumer Price Index (CPI) inflation in the month of June 2023 remained 29.4 percent as compared to thirty-eight percent last month.

In a tweet on Monday, he said that Pakistan Stock Market added 2,334 points by one pm today.

The Finance Minister said that the value of rupee against dollar in the open market is 270 and 272.

Source: Radio Pakistan

The abnormal strength of the stock market even as inflation and political uncertainty batter the Pakistani economy has baffled and excited many observers today.

The KSE-100 index rallied nearly 6% higher in the first hour of trade today as markets began spreading last week’s IMF glee all over the space, and it has since gained nearly 2,400 points to current levels above 43,933.

The expectation is today’s rally will buy investors the maximum amount of optionality by signaling a few more recoveries throughout July, aligned with market expectations, and will guide towards a big skip instead of an extended pause till December 2023 to sit and observe the effects of the IMF bailout and the State Bank of Pakistan’s (SBP) surprendre 22% interest rate to begin the new fiscal year.

Worries were amplified last month by concerns of a possible downturn in index growth, with investors eagerly awaiting a decision on the IMF cash and Finance Minister Ishaq Dar’s controversial budgetary exercise. Consequently, all indices managed to recover smartly today, led by an upside in banking, oil and exploration, and fertilizer stocks.

IMF’s nod remained key to calm market nerves, the new arrangement is expected to boost investor confidence, at least in the near future. Extended market rally and unlocking of valuations would likely be subject to execution of reforms yet again highlighted by the Fund, which include reforms in the energy sector, control on inflation and fiscal discipline.

PSX negated last week’s bearish formation formed by rising above 43,700+. It has now formed a bullish piercing pattern but needs to break out of the current band to show acceleration above 44,000 in the coming days.

Industry experts say that many investors are still wary of the $3 billion IMF financing. They said the approval and potential disbursal would offer more liquidity and open a path for other creditors to release last year’s $11 billion in pledges, but uncertainty over General Elections in October 2023 might offset market sentiments.

“A falling trend in SBP interest rates will also funnel additional capital to the stock market, opening the way for a +25% surge till June 2024,” they also opined.

Responding to a query by ProPakistani, JS Research said any close above 43,800 today will continue the bullish momentum with the next target falling between 44,700 to 45,000 which may further rise to 46,200, though a minor resistance at 44,300 cannot be ruled out. On the downside, today’s gap opening at 41,450 remains a key risk.

The KSE100 Index continues to trade at attractive multiples of sub 3x, pricing in lower investor confidence, which was due to the delay in the IMF deal. JS Global believes energy stocks such as OGDC, PPL, SNGP and MARI would garner interest and prefers UBL, BAFL, MEBL, HMB, BAHL and MCB as picks from the banking sector amid attractive valuations.

The Cement sector with MLCF, PIOC and KOHC is some of the top picks that might drive the benchmark index in the coming days. Bulls could seek additional rallies via the pharmaceutical sector amid talks on drug price hikes, where the research sees AGP Limited among the top picks.

Source: Pro Pakistani

Zarai Taraqiati Bank Ltd (ZTBL) has rehired seven top executives on a contract basis without a competitive process, paying them three to four times more than before despite accumulated losses of over Rs. 100 billion.

There have been 13 new inductions for top positions in the agriculture bank, including six from the market. All 13 executives, including the ZTBL acting president, would be entitled to a monthly salary ranging from Rs. 1.5 million to Rs. 2 million, as well as club memberships, in addition to petrol and other utilities, reported Dawn.

The Ministry of Finance and the State Bank of Pakistan had objected to the new inductions but the board rejected their concerns and endorsed its decision on the matter.

In a written response, the ZTBL upheld the board’s decisions, while Acting President Asadullah Habib declared through a spokesperson that the current Secretary of Finance was from his hometown, consequently ‘ensuring’ that the Ministry of Finance would shelve the matter.

The board employed four top executives from the market about six months ago to streamline the bank’s operations, but the results were negligible during the period. This created an opportunity to rehire some of the existing executives following their retirement or early exit at comparable pay scales.

Group Head Operations Zahid Hussain, SEVP Azfar Latif, Vice President Sabahat Batool, and Head of Digital Zeeshan Zafar were among those hired from the market. The notification for two further inductions for positions listed in the media is still pending.

These inductees were all previously employed by ZTBL and earned yearly wages ranging from Rs. 3.6 million to Rs. 4.5 million. According to sources, the ZTBL Act and Service Rules were not followed during the induction process.

The board likely contracted third-party services for the hiring process.

ZTBL stated that the central bank had voiced concerns about the terms and circumstances being given in March 2023, but the board opted to reappoint the seven executives after addressing the regulator’s concerns.

ZTBL added the seven inductees were already part of the regular staff when they were promoted in October 2022 after a competitive internal process headed by a Departmental Promotion Committee formed by the bank’s Board of Directors.

Source: Pro Pakistani

Finance Minister Mohammad Ishaq Dar has announced that the price of petrol will remain unchanged for next fifteen days.

However, he said the price of diesel has been enhanced by 7.5 rupees per liter due to increasing prices of petroleum products in the international market during past couple of days. Diesel would be now sold at 260.5 rupees per liter.

The Finance Minister said the Oil and Gas Regulatory Authority did its best to pass on minimum possible burden of increasing prices to people.

Source: Radio Pakistan