Power tariff goes up by Rs1.33 per unit - The Express Tribune

Increa­se will not apply to househ­old and KESC consum­ers. Increase will not apply to household and KESC consumers. PHOTO: ARIF SOOMRO/EXPRESS/FILE

ISLAMABAD: 

The National Electric Power Regulatory Authority (Nepra) on Tuesday approved an increase of Rs1.33 per unit in power tariff on account of fuel price adjustment for December 2012.

This tariff rise will not cover household consumers and the Karachi Electric Supply Company (KESC).

However, the decision will not be implemented until the Islamabad High Court, which has given a stay order in a case challenging the collection of fuel price adjustment surcharge, gives its ruling.

Following its implementation, power distribution companies are expected to receive an additional Rs8.289 billion, which will help meet their expenses.

Nepra took the decision at a hearing held here at its secretariat, chaired by Habibullah Khilji, in response to a petition filed by the Central Power Purchase Agency (CPPA).

CPPA had sought an increase of Rs1.3655 per unit in electricity rate for December because of high fuel cost.

In the petition, CPPA said it sold 6.233 billion units of electricity to power firms and fuel cost stood at Rs55.825 billion for December. As a result, actual cost of power production for the month was Rs8.95 per unit compared to reference price of Rs7.59 per unit, a difference of Rs1.36.

In the month, 1.655 billion units of hydroelectric power were generated at a rate of Rs0.07 per unit, costing a total Rs127.35 million, 2.52 million units were produced through coal at Rs3.73 per unit, costing Rs9.40 million and 171.52 million units through high speed diesel at Rs21.56 per unit, costing Rs3.699 billion. Similarly, 2.677 billion units were generated through furnace oil at a cost of Rs42.252 billion with per unit cost at Rs15.782, 1.512 billion units were produced through gas at a cost of Rs8.723 billion (Rs5.76 per unit) and 287.75 million units through nuclear resources costing Rs332.02 million (Rs1.15 per unit).

Some 24.10 million units were imported from Iran at a cost of Rs232.56 million (Rs6.65 per unit), 107.10 million units were produced through mixed resources costing Rs1.089 billion (Rs10.169 per unit) and no unit was produced through wind energy.

Published in The Express Tribune, January 30th, 2013.

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US investors take interest in oil, gas exploration - The Express Tribune

Diplom­at asks Pakist­an to public­ise benefi­ts of new petrol­eum policy. Diplomat asks Pakistan to publicise benefits of new petroleum policy.

LAHORE: 

US investors are taking a keen interest in oil and gas exploration in Pakistan in the wake of fresh incentives in the new petroleum policy, but to stimulate investment from other countries the government must publicise benefits and advantages for the investors, says US Commercial Counsellor James Fluker.

Speaking during a visit to the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday, Fluker said new discoveries of oil and gas could help Pakistan overcome, to some, extent the energy problem that has affected all consumers from households to commercial and industrial units with prolonged outages.

In the US, the discovery of shale gas reserves has revolutionised its energy sector. In fact, the US has now become surplus in gas which it can export.

The commercial counsellor said a large part of US assistance to Pakistan was focused on energy as it was alive to the issue. This, he said, reflected the US commitment to helping address economic challenges being faced by Pakistan.

“It is a welcome sign that the private sector in Pakistan is doing well despite a number of challenges,” he remarked.

To a question about cooperation between the two sides in civil nuclear technology, he said nothing should be discarded and be taken up at the higher level.

Speaking on the occasion, LCCI President Farooq Iftikhar called for an immediate US response to Pakistan’s energy woes with some timeframe in this regard. He believed that a lot more problems could be solved if the US granted greater access for Pakistan’s products to its markets, the biggest for Pakistan.

He did mention the ongoing US-led war on terror that had engaged Pakistan for more than a decade and proved to be the biggest hurdle in the way of economic growth. As per some careful estimates, “our involvement in this effort to curb terrorism across the borders has caused losses of almost $70 billion,” he said.

Foreign investment is an area that can give the economy a shot in the arm, but security fears discourage the investors.

Published in The Express Tribune, January 30th, 2013.

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WAPDA to start constructing three dams - The Express Tribune

These have a cumula­tive genera­tion capaci­ty of 1,540MW. These have a cumulative generation capacity of 1,540MW. PHOTO: FILE

LAHORE: 

The Water and Power Development Authority (Wapda) has decided to start the construction work on three hydropower projects in a couple of months as all pre-requisites for initiation of the projects are complete.

With a cumulative generation capacity of about 1,540 megawatts (MW) and gross water storage capacity of 250,000 acre feet, these projects include two hydropower projects namely Tarbela fourth extension and Keyal Khwar, and one energy generation and water storage plan, under which 26 projects capable of producing 21,000MW and storing 13 million acre feet (MAF) of water are in various phases of implementation.

The 1,410MW-Tarbela fourth extension project is being undertaken as the fourth extension of the Tarbela hydel power station. Three generating units of 470MW each will be installed to enhance the capacity of the Tarbela power station to 4,888MW from 3,478MW. The annual energy contribution of the Tarbela fourth extension project has been estimated at 3,480 million units. The World Bank is providing $840 million for the project.

Keyal Khwar Dam is located in Khyber-Pakhtunkhwa. With a power generation capacity of 122MW, the dam’s annual energy contribution is estimated to be 426 million units with estimated annual benefits of about Rs3.5 billion.

Published in The Express Tribune, January 30th, 2013.

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Market watch: Bourse continues to breach historic highs - The Express Tribune

Positi­ve local and foreig­n intere­st, macroe­conomi­cs boost KSE 167 points. Positive local and foreign interest, macroeconomics boost KSE 167 points. PHOTO: AFP

KARACHI: 

Breaching all-time highs has become routine for the largest stock market of Pakistan as the Karachi bourse once again closed at a historic high on the back of foreign interest, institutional buying and the government’s decision to shuffle up priorities in its new gas management policy. Moreover, expectations regarding a healthy corporate results season catalysed buying.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.98% or 167.05 points to end at 17,172.04 point level. Trade volumes rose nominally to 197 million shares compared with Monday’s tally of 190 million shares.

“Attractive dividend yields and healthy anticipated earnings growth helps the index continue breaking records,” reported Khalil Usmani, analyst at JS Global Capital. Rumours of foreign interest also continued to build investor confidence as the KSE is still the cheapest in the region, added Usmani.

The value of shares traded during the day was Rs5.99 billion.

Among macroeconomic triggers, the Economic Coordination Committee (ECC) decided to give preference to industries and fertiliser producers for gas allocation over the CNG sector in its new gas load management strategy.

The decision of the ECC initiated a rally in the fertiliser sector as Engro Corporation, deemed to be the largest beneficiary of the new policy, closed near its upper limit and among the top five on the volume leader board, according to Elixir Securities daily review of the market.

Cements continued to attract buying over earnings excitement. Telecoms also witnessed buying as investors expect higher international call termination rates, which rolled out from October 1, 2012, to propel sector’s earnings.

The index-heavyweight oil sector, which was out of favour, made a decent comeback with the Oil and Gas Development Company and the Pakistan State Oil generating good interest.

Telecard Limited was the volume leader with 34.71 million shares gaining Rs0.72 to finish at Rs3.43. It was followed by Fauji Cement with 18.98 million shares shedding Rs0.17 to close at Rs7.95 and DG Khan Cement with 13.24 million shares rising Rs1.24 to close at Rs55.57.

Foreign institutional investors were net buyers of Rs340.2 million ($3.47 million), according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 30th, 2013.

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Crop, livestock insurance products launched - The Express Tribune

Weathe­r-indexe­d facili­ty to protec­t small farmer­s. Weather-indexed facility to protect small farmers. PHOTO: FILE

ISLAMABAD: 

The Pakistan Poverty Alleviation Fund (PPAF) has launched the first-ever weather-indexed micro-insurance products to facilitate and compensate small farmers in Pakistan.

In this connection, a ceremony was arranged here on Tuesday, presided over by Securities and Exchange Commission of Pakistan Commissioner Muhammad Asif Arif and attended by representatives of the State Bank of Pakistan, World Bank, International Fund for Agricultural Development (IFAD), KfW – German development bank, UKAID, Tameer Microfinance Bank and others.

Speaking on the occasion, Arif said micro-insurance stands at a critical juncture in Pakistan and praised PPAF for introducing indexed crop and livestock insurance products.

He reaffirmed SECP’s commitment to promoting micro-insurance through research, introducing pivotal regulations and promoting a healthy policy environment.

PPAF board member Zubyr Soomro pointed out that the need for micro-insurance has been felt over the years and it is the tipping point to give it a big push. “We would have to make the most of this opportunity,” he said, adding sincere efforts are needed to make micro-insurance sustainable.

PPAF Chief Executive Qazi Azmat Isa attributed the micro-insurance initiative to close collaboration between PPAF and IFAD. He said farmers are badly affected by climate change, fluctuation in prices of their produce and poor quality of agricultural inputs and micro-insurance would prove to be a vital instrument in fight against poverty.

Senior Joint Director Agricultural Credit & Microfinance Department of State Bank of Pakistan, Kamran Bakshi, said the launch of indexed and hybrid weather micro-insurance has provided a unique platform to market leaders to serve the poor, particularly the farmers. He stressed that focus must be on protecting the borrowers.

PPAF’s Senior Group Head Ahmad Jamal said the fund is committed to grassroots development and micro-insurance would prove to be one of the instruments in alleviating poverty. He said PPAF would capitalise on its outreach so that maximum people could benefit from micro-insurance.

PPAF’s Financial Services Group Head Yasir Ashfaq stressed that indexed insurance products are easy to administer, transparent, innovative and significantly reduce chances of moral hazard or fraud.

He said PPAF envisions increasing the scope of these products across the country, preparing detailed indices for various districts with the support of stakeholders including government agencies, donors, microfinance institutions and insurance companies.

The insurance products have been designed by PPAF, with the support of IFAD through a strategic partnership with SECP. These products have been developed in collaboration with the Meteorological Department and Livestock Research Institute and are based on needs of low income farmers. PPAF has launched these products as a pilot project in collaboration with insurance companies in the districts of Khushab and Chakwal.

Published in The Express Tribune, January 30th, 2013.

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New NBP head: Stock investors welcome change - The Express Tribune

NBP’s share price on the KSE has increa­sed by Rs3 to Rs51.50 since the appoin­tment of the new head on Januar­y 18.

KARACHI: Stock investors have warmly welcomed a change at the helm at the National Bank of Pakistan as NBP’s share price on the Karachi Stock Exchange has increased by Rs3 to Rs51.50 since the appointment of the new head on January 18. According to a press release, the bank’s share was traded at Rs51.50 on January 24, the last working day of the previous week, compared to Rs48.50 on January 18. Dr Asif A Brohi, who was appointed President and CEO of NBP on January 18, holds a Masters in Business Administration from Northrop, California and Doctorate in Public Administration. He had joined NBP in 1984 as an assistant vice president. NBP says investor confidence has been restored because they feel that a permanent employee has been made president of the bank after a very long time. “This move will result in positive changes,” it says.

Published in The Express Tribune, January 29th, 2013.

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Smart monitoring: TDAP to utilise market intelligence to enhance exports - The Express Tribune

Says it is focuss­ing on expand­ing trade with the help of proper data. The LCCI president observed that Pakistan’s total share of exports to Africa was 5.5% in 2007, which inched up marginally to 6.7% in 2011. DESIGN: MOHSIN ALAM

LAHORE: The Trade Development Authority of Pakistan (TDAP) has worked out a plan to ensure a substantial increase in Pakistan’s exports, says the authority’s Chief Executive Abid Javaid Akbar.

Akbar, who was speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Monday, said that Pakistan’s exports can go up to $50 billion in the coming years, as TDAP has adopted a focused approach to enhancing exports on the basis of information received from 45 Pakistani missions abroad.

Akbar also hinted at the possibility of initiating barter trade with Developing 8 (D8) countries that have weaker banking and financial systems. He said that the proposition was discussed especially with Iran and Nigeria during the recently-concluded D8 Summit.

He also said that TDAP is ready to work with LCCI proposals regarding holding of exhibitions at the Lahore Expo Centre and patronising the chamber’s delegations on visit to various global destinations. Akbar said that TDAP is presently working on creating awareness among businesspersons regarding the right market places for their products.

“TDAP is a facilitator and will extend maximum facilitation to entrepreneurs. The government is quite wary of the issues and challenges faced by the business community and is taking necessary measures to overcome these problems,” he said.

Speaking on the occasion, LCCI President Farooq Iftikhar urged TDAP to focus on exploring markets for Pakistani value-added items, as about one half of Pakistan’s exports go to seven countries only while a fourth of exports consistently finds its way into the European Union.

He said that there is a lot of potential in trading with regional countries and blocs like the South Asian Association for Regional Cooperation (Saarc), the Association of Southeast Asian Nations (Asean), the Organisation of Islamic Cooperation (OIC), the Central Asian republics, the Middle East, Africa, China, Iran and India, but unfortunately no strategy has been adopted to tap this potential.

The LCCI president observed that Pakistan’s total share of exports to Africa was 5.5% in 2007, which inched up marginally to 6.7% in 2011. “It speaks volumes about our failures in tapping such a huge market,” he observed. “TDAP must spearhead efforts to increase our share in Africa. It is high time that the government follows the EU model for promoting regional trade under Asean, Saarc, OIC and D8,” he added.

The LCCI president also urged TDAP to study the reasons of decline in intra-Saarc and intra-OIC trade. “While suggesting ways to reverse these trends, TDAP should also focus on increasing the share of intra-Asean trade,” he added.

Published in The Express Tribune, January 29th, 2013.

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