Better Economy | FDI 7.7% higher

KARACHI: Pakistan received foreign direct investment (FDI) of $216.2 million in the first quarter of 2015-16, 7.7% higher than the FDI received in the same three-month period of the preceding fiscal year.

According to data released by the State Bank of Pakistan (SBP) on Thursday, FDI increased $15.6 million year on year in July-September, as it amounted to $200.7 million in the corresponding months of 2014-15.

Pakistan has faced low levels of foreign investment in recent years. The SBP has called an increase in FDI “imperative” for the sustainability of the economy’s external sector.

Largest contributor to the FDI in Jul-September was China ($190.2million), followed by the United Arab Emirates ($48.9 million), United Kingdom ($33.4 million), Switzerland ($27.9 million) and Italy ($26.9 million).

Net FDI in September alone clocked up at $96.9 million, up 8% from the net inflow of $89.7 million recorded in the same month of the preceding fiscal year.

The largest net outflow of FDI in July-September was recorded in the petro chemicals ($135.8 million) followed by metal products ($14 million).

The largest increase in FDI in July-September was in the category of power, which attracted $142.5 million. Other sectors that attracted substantial FDI in the first three months of 2015-16 were tobacco and cigarettes ($28.9 million) and oil and gas exploration ($41.4 million). However, the FDI in the oil and gas exploration category dropped 47.5% on a year-on-year basis.

Pakistan received FDI of $709.3 million in 2014-15, which was 58.2% less than the FDI received in the preceding fiscal year. Largest contributor to the FDI during 2014-15 was the United States ($238.7 million), followed by China ($229.5 million) and United Arab Emirates ($222.4 million).

However, the US has pulled out $103.4 million from Pakistan so far in 2015-16 although net inflows from the world’s largest economy amounted to $54.8 million in the same three-month period of the last fiscal year.

DESIGN: NABEEL AHMED

Many foreign investors have left Pakistan for good in recent years because of the energy crisis and bad governance. At least four multinational pharmaceutical companies have left Pakistan for good in the last six years. The category of pharmaceutical and over-the-counter products lost FDI of $47.2 million in the last fiscal year.

However, FDI from China is expected to rise further in view of the recently announced China Pakistan Economic Corridor (CPEC), according to the SBP. “The implementation of infrastructure development and energy projects under the CPEC will further enhance the improving investment environment,” it said in a recent statement.

Published in The Express Tribune, October 16^th, 2015.

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Roshan Pakistan | K2 inagurated at KANUPP

PM Nawaz inaugurates K-2 power plant at Kanupp

DAWN.COM | SHAHID GHAZALI

Prime Minister Nawaz Sharif addresses the inauguration ceremony of K-2 power plant. —DawnNews screengrab

Prime Minister Nawaz Sharif inaugurates K-2 power plant, the largest in the country. —DawnNews screengrab

Prime Minister Nawaz Sharif addresses the inauguration ceremony of K-2 power plant. —DawnNews screengrab

Prime Minister Nawaz Sharif inaugurates K-2 power plant, the largest in the country. —DawnNews screengrab

KARACHI: Prime Minister Nawaz Sharif on Thursday inaugurated the K-2 power project at the Karachi Nuclear Power Plant (Kanupp) during his one-day visit to Karachi.

K-2 power plant, the largest in the country, will generate 1,100MW electricity upon completion.

Nawaz congratulated the Pakistan Atomic Energy Commission on the timely start of concrete pouring of K-2 power plant, which will be built by the China National Nuclear Corporation (CNNC).

Terming the occasion an "important day in Pakistan's history", the prime minister said the project was evidence of cooperation between Pakistan and China in the field of science and technology.

"The construction of K-2 and K-3 power plants will further strengthen the steadfast friendship between the two nations," Nawaz said.

The prime minister thanked the Chinese government, CNNC, and other Chinese organisations for their cooperation in the construction of nuclear power plants.

The groundbreaking of K-2 and K-3 power plants was performed by the prime minister in November last year.

Know more: PM launches major N-power project

The World Nuclear Association had earlier estimated the cost of the new project at nearly $10 billion.

The project had been in the media spotlight for quite some time with representatives of civil society organisations raising a number of reservations over it, with the chief concern being the close proximity of the project to the city.

Also read: Sepa allows construction of nuclear power plants at Paradise Point

Upon his arrival to Karachi, the premier was received by Sindh Governor Dr Ishratul Ibad and Chief Minister Syed Qaim Ali Shah.

PM Nawaz briefed about Karachi operation

After the inauguration ceremony at Kanupp, Prime Minister Nawaz Sharif is currently chairing a high-level meeting of the apex committee to review the city’s law and order situation.

Also attending the meeting are Defence Minister Khawaja Asif, Interior Minister Chaudhry Nisar Ali Khan, State Minister for Water and Power Abid Sher Ali, Rangers Director General (DG) Major Gen Bilal Akbar, Corps Commander Karachi Lt Gen Naveed Mukhtar and other high level officials.

During the meeting, the prime minister was briefed the progress of ongoing Karachi operation, which was launched in September 2013 to free the city of criminals and people associated with terrorist outfits.

Take a look: Karachi operation: 386 ‘criminals’ eliminated this year

Sindh Chief Minister Qaim Ali Shah and Governor Ishratul Ibad also briefed the premier about the implementation of decisions taken by the apex committee with regards to Karachi operation.

Later in the day, the prime minister will also meet with representatives of the city's Parsi community during his one-day visit, according to a reportpublished on the Radio Pakistan website.

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Nandipur Power Plant To Be Fully Operational Soon

ISLAMABAD: Managing Director Nandipur Power Project Muhammad Mehmood on Friday said that the 425 MW Nandipur Power Project would be fully operationalized shortly.

Talking to the media here, the MD said that three units of the plant had already been commissioned and the plant was supply 300 MW to the national grid station.

He said the fourth unit of combine circle would be ready in few weeks which would help attain the plant full generation capacity of 425 MW.

He said that currently the plant was shut down for replacing DC panel at switch yard and would start supplying generation in next three days.

The MD said that the plant would generate 525 MW after gas provision. However, he said that the provision of gas would take around one year.

Replying to a question, Muhammad Mehmood said that the project was completed within its estimated approved PC-1 cost of Rs.58 billion.

He said that the Nandipur power plant was 2nd most efficient thermal power plant after Guddu 747 MW.

It is pertinent to mention here that during the tenure of the previous federal government, the project was delayed for about four years resulting surge in it cost from $329 million to $847m.

(Web Desk)

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Punjab | Electronic Stamp papers introduced

E-Stamp Paper Introduced For The First Time In Pakistan

The Punjab Board of Revenue has decided to introduce e-stamp paper in Pakistan to facilitate the citizens online. This step promises to diminish fraud and bogus stamp papers which, previously, led to a loss of millions of rupees. Here is how the e-Stamp process will work.

Any person willing to buy a high value non-judicial stamp will only require an internet connection to access the system online. The information required to be entered in the system will be the names of the buyer, seller and the person from whom stamps were purchased along with their CNIC.

The entered CNIC information will be verified online through NADRA database in real time. After verification, a challan form 32-A will be generated based on the provided data.

The stamp paper buyer will then take the issued challan form to the nearest branch of National Bank/ Bank of Punjab or at any dedicated bank counters established in the offices of sub-registrars. Once the stamp duty fee is paid, the bank will print and handover the stamp paper on especially designed legal size paper. After the agreement, the stamp paper will be submitted to the sub-registrar/housing society/ authority/land developers or as the case may be.

Stamp paper serve different purposes in Pakistan including purchase and sale of land. The e-stamp paper will make the purchase of land property easy while also restricting the land mafia. The project will also help facilitate women in Pakistan who struggle to acquire inherited property.

An Indian state Karnataka started e-stamp paper in 2006 which resulted in controlling fake stamp papers and land mafias.

The Punjab government has already computerized its land records which let citizens to access their land records within 15 minutes without any charge. The e-stamp process is expected to be launched for the public in a month.

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Pakistan Oilfields earnings up 15pc

Pakistan Oilfields earnings up 15pc

KARACHI: Pakistan Oilfields Limited (POL) recorded an after-tax profit of Rs4.2bn for the first quarter of this fiscal year, translating into earnings per share (eps) at Rs17.62.

It represented a growth of 15pc over Rs3.6bn profit (eps Rs15.25) in the year-ago period.

Investment analyst Muhammad Affan Ismail at BMA Capital Management Ltd said the results were above consensus forecast on account of lower-than-estimated amortisation charges (down 30pc year-on-year) primarily due to high base effect. “To recall, POL reported a hefty amortisation write-off pertaining to reserve downgrade at Manzalai field last year,” he said.

The surge in earnings during July-September could also be attributed to 11pc increase in sales to Rs9.8bn on account of 19pc higher oil production.

Other income of the company declined by 32pc to Rs830m on account of 20pc lower dividend from APL at Rs174m and absence of payout from NRL.

Published in Dawn, November 1st, 2014

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Improvement in PIA

PIA has cut losses of Rs13.5bn this year: aviation adviser

ISLAMABAD: Adviser to Prime Minister on Aviation Affairs Shujaat Azeem said on Friday that the annual loss of Pakistan International Airline (PIA) had been reduced to Rs18 billion from Rs31.5 billion during the previous year.

He said the PIA was also paying Rs3.29 billion interest on legacy loans that were taken in 1992.

Speaking to reporters in the federal capital, the premier's adviser said that 10 more narrow-body airbuses and five aircraft manufactured by French-Italian manufacturer ATR would be inducted in PIA by the end of December this year.

Induction of more aircraft would help boost PIA's performance which would assist in generating more revenue, Azeem said.

Praising the initiatives for the improvement of the national carrier, he said the government was working towards introducing a new aviation policy to discourage corruption within PIA.

PIA had received delivery of its eight A-320 aircraft acquired on long-term dry lease from General Electric, Azeem added.

He also said that the PIA has 25 operational airbuses and 11 ATR aircraft at present and increasing the number would also help overcome its financial difficulties.

 

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New discoveries | PPL on the roll

 New findings: PPL on a roll, makes fourth discovery

The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day. PHOTO: KASHIF HUSSAIN/EXPRESS

KARACHI: 

Pakistan Petroleum Limited (PPL) has announced that it hit another petroleum reserve in the Gambat South Block, its fourth discovery in the particular lease, which is located in Sanghar district, Sindh.

The exploration well, Kinza X-1 was spud on July 28 this year and reached the final depth of 3,695 metres on September 13.

“Initial testing flowed 12 million cubic feet per day (mmcfd) of gas along with condensate, thereby confirming presence of commercial quantities,” the company said in a statement.

PPL is the operator of Gambat South block with 65% working interest along with its joint venture partners Government Holdings and Asia Resources Oil Limited, which holds 25% and 10% interest, respectively.

In the same block, it has already found three producing wells – Wafiq, Shahdad and Sharf.

“Based on wire line logs, potential hydrocarbon bearing zones were identified in the Massive Sand of Lower Goru Formation, which are under testing,” PPL said.

The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day, it said.

The well is being flowed at different choke sizes to measure gas flow rates and the actual flow potential will be determined after the completion of the test.

In August, the company announced discovering 42 mmcfd of gas in Gambat South, its third and biggest discovery in the block. At the time, PPL said it was expecting the production to go up to 60 mmcfd.

It made the first two discoveries in Gambat last year.

Last month, another producing well was discovered in the Hala block, located in Sanghar and Matiari districts, Sindh.

The company said the well could produce 18.6 mmcfd of gas and 31 bpd of condensate from exploratory well Adam West X-1.

Hala is a joint venture between PPL and Mari Petroleum Company Limited, with 65% and 35% working interest, respectively. It covers as area of about 395 square kilometres.

PPL currently produces 10 mmcfd of gas and 150 bpd of condensate from another well in the Hala block.

PPL, which has a portfolio of 47 exploration blocks, has been aggressively searching for new hydrocarbon finds since last year to compensate for the decrease in production from its established fields like Sui.

State-run PPL had earmarked Rs10 billion to be spent on exploration activities during the last fiscal year with most of the focus on Gambat South.

The company accounts for 22% of the country’s gas production. In the fiscal year 2013-14, PPL posted a profit of Rs51.41 billion, up 23% over the previous year.

It has been trying to cut the depletion rate of its fields by installing compressor plants and drilling more wells.

PPL’s six producing fields include Sui, Kandhkot, Adhi, Mazrani, Chachar and Hala, while it has working interest in eight partner-operated fields.

Published in The Express Tribune, October 15^th, 2014.

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Civil disobedience failed | Remittances hit $ 4.69 B

 Remittances grow 19.5%, hit $4.69b

Pakistanis based in foreign countries sent home $1.71 billion in September, which translates into an increase of 33.7% on a yearly basis. STOCK IMAGE

KARACHI: Paying little heed to passionate appeals by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, overseas Pakistanis seem to be in no mood to observe civil disobedience for now.

Despite Khan’s call to abandon formal banking channels for transferring money to their home country, overseas Pakistanis sent remittances amounting to $4.69 billion in the first quarter of the current fiscal year. This reflects growth of 19.52% as the remittances totalled $3.92 billion during the same three-month period of the previous fiscal year.

As part of his ongoing protest in Islamabad that began in the first half of August, Khan had urged overseas Pakistanis to send money home via hundi, which is the illegal way of transferring currency across international borders.

But the year-on-year comparison of data shows the public has turned a deaf ear to Khan’s appeal to dodge official money transfer channels.

According to data released by the State Bank of Pakistan (SBP) on Wednesday, Pakistanis based in foreign countries sent home $1.71 billion in September, which translates into an increase of 33.7% on a yearly basis.

Inflows from Saudi Arabia have been the largest source of remittances so far in 2014-15. They amounted to $1.34 billion in the first three months of the current fiscal year. They are up 21.77% from the corresponding period of 2013-14.

Remittances received during the last three months from the United Arab Emirates (UAE) increased 31.54% to $1.03 billion on a year-on-year basis. Inflows from the UAE registered the largest increase from any country during the last three months.

Remittances from the United States and the United Kingdom were $235.99 million and $218.38 million, respectively. The year-on-year increase in remittances from the US and the UK has been 10.77% and 4.67%, respectively.

Remittances from Gulf Cooperation Council (GCC) countries, excluding Saudi Arabia and the UAE, clocked up at $545.04 million from July to September, which is 21.89% higher than the remittances received in the same period of the preceding fiscal year.

Remittances from Kuwait reached $200.6 million while those from Oman, Bahrain and Qatar amounted to $165.61 million, $90.5 million and $88.33 million, respectively.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $125.33 million, up 47.8% from $84.75 million in the same month of the preceding fiscal year.

In the last fiscal year, overseas Pakistanis sent home $15.8 billion, which was 13.7% higher than the remittances of $13.9 billion received in 2012-13.

People associated with money-remitting businesses had predicted that a majority of overseas Pakistanis would refrain from remitting money illegally in response to Khan’s appeal to boycott legal banking channels. Their expectation was because of the convenience and cost-effectiveness that legal money transfer channels offer to overseas Pakistanis.

The SBP offers banks a rebate facility through the Pakistan Remittance Initiative (PRI). Under the rebate scheme, neither the remitter nor the beneficiary is supposed to pay any remittance fee to the money transfer company.

The SBP reimburses the Pakistan rupee equivalent of 25 Saudi riyals to banks upon each remittance of $100 or more, provided that senders and receivers of remittances do not have to pay any fee. The bank, in turn, shares the rebate with its respective money transfer company as per their mutual understanding.

Published in The Express Tribune, October 16^th, 2014.

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#RoshanPakistan | 46 solar power projects planned in the Punjab

Let there be light: 46 solar power projects planned in the Punjab

By Our Correspondent

Published: October 13, 2014

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Punjab Chief Minister Shahbaz Sharif. PHOTO: APP

LAHORE: 

The government has selected 46 sites in the province where small-scale solar power projects will be set up to reduce the power shortage, Chief Minister Shahbaz Sharif said on Sunday. He said there was vast scope for generating electricity from solar energy in the Punjab.

He was presiding over a high-level meeting to review prospects of setting up solar energy projects in the province.

Dr Gerwin Greesman, a German expert on solar energy, and Energy Additional Chief Secretary Jehanzeb Khan gave a briefing on small-scale solar power projects. The chief minister said it was essential to resolve the energy crisis to eliminate poverty and unemployment and boost trade and economic activities.

He said the government was taking all possible measures to deal with the energy crisis. He said ill-timed protests and sit-ins had wasted precious time. There was no room for further delay. “We must work together to banish darkness from the country… relevant departments and institutions will have to perform their duties with a renewed spirit.”

Sharif said the energy crisis had badly affected education, health and agriculture. It was absolutely necessary to solve the crisis in order for the government to promote industries. The chief minister said the prime minister was making sincere efforts to deal with the energy crisis.

He said there was vast potential to generate electricity through solar panels. Erecting 150MW solar power projects in the province would go a long way in decreasing the shortage of electricity. He said relevant departments will have to work on the projects on war footing.

Sharif said a team will be formed soon to ensure speedy and transparent execution of these projects. He said the provincial government would initially set up a 100MW solar project in the Quaid-i-Azam Solar Park in Bahawalpur using its own resources. He said the park will start producing electricity by the end of the current year.

The chief minister said that the provincial government was also working on coal, hydel, biogas and biomass.

He said there was vast scope for producing electricity using biomass. He said the government was working round-the-clock to solve the energy problem.

“It should not be long before we put the country on the road to progress and prosperity.”

Published in The Express Tribune, October 13^th, 2014.

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