Morning Buzz for July 03, 2012 – MR Securities

Karachi, July 03, 2012 (PPI-OT): GOVERNMENT LOOKS TO RENEGOTIATE WITH RPPS

Amid extensive power outages and a Turkish firm’s decision to move international courts over a power deal gone sour.

According to MR Securities, Pakistan is working on a plan to renegotiate with the controversial rental power plants.

NO END IN SIGHT TO POWER LOAD-SHEDDING
The government appears to have failed to control inter-corporate debt that has reached Rs783b, including both receivables and payables, due to low recovery of bills, particularly from government departments.

AUCTION FOR 3G LICENCES: SBP SEES $630 MILLION REVENUE
The State Bank of Pakistan has estimated that $630 million could be generated from the auction for 3G licences to support external and fiscal deficit. Meanwhile, however it has also suggested some changes in the Information Memorandum issued by the Pakistan Telecommunication Authority (PTA) for the auction.

VIOLATION OF GUIDELINES FOR SELECTION OF CONSULTANTS: BISP REQUIRES SHARING AGP FINAL REPORT WITH BANK: WORLD BANK
The World Bank has said that the Benazir Income Support programme (BISP) is required sharing final report of external audit by the Auditor General of Pakistan (AGP) with the Bank for each Financial Year. The World Bank was sent a question by this scribe as follows.

‘OFF-US’ ATM TRANSACTIONS: CCP IMPOSES PENALTY ON BANKS FOR UNIFORM CUSTOMER CHARGES
The Competition Commission of Pakistan (CCP) on Monday imposed a total penalty of Rs 770 million, including Rs 50 million on 1-Link (Guarantee) Limited, Rs 50 million each on its 11 founding member banks and Rs 10 million on each of its 17 non-founding member banks, for imposing uniform customer charges on “OFF-US” ATM cash withdrawal transactions.

MOI PREPARES RS 2.532 BILLION RAMAZAN RELIEF PACKAGE
Ministry of Industries (MoI) has prepared Ramazan relief package of Rs 2.532 billion. According to which, prices of dozens of essential items will be reduced from 5-15 percent, well informed sources told Business Recorder. It will be implemented through Utility Stores Corporation (USC).

PEPCO HINTS AT EARLY DISTRIBUTION OF FREE ENERGY SAVERS
Pakistan Electric Power Company (Pepco) carried out supply contract of 20 million Compact Fluorescent Lamps (CFL) on cost insurance and place of destination (CIP) under the “National CFL Project- Prime Minister Energy Saver Programme” with M/s Philips Electrical Industries of Pakistan.

DECREASE IN POL PRODUCTS’ PRICES: STEPS TAKEN TO CURB CROSS-BORDER SMUGGLING: FBR
On the request of the Ministry of Petroleum and Natural Resources, the Federal Board of Revenue has taken strict measures to check cross-border smuggling of petroleum products in view of considerable decrease in the POL products prices in Pakistan.

OGDCL UNVEILS FIVE NEW DISCOVERIES IN LAST 11 MONTHS
Oil and Gas Development Corporation Limited (OGDCL) has discovered five new discoveries during this last eleven months of this year under its vision to meet energy needs of the country.

NANDIPUR POWER PROJECT: GOVERNMENT DECIDES TO ALLOCATE 75 MMCFD GAS TO SNGPL
The government has decided to allocate 75 MMCFD gas from Makori field to SNGPL system, which will be given to Nandipur power project, official sources told Business Recorder.

COMMERCE MINISTRY GRILLED FOR ‘PROTECTING’ AMIN, GHANI
National Assembly Standing Committee on Commerce on Monday grilled top brass of Commerce Ministry for allegedly protecting Commerce Minister, Makhdoom Amin Fahim and former Commerce Secretary, Salman Ghani, in the National Insurance Company Limited (NICL) scam.

GOVERNMENT REJECTS PEW REPORT ON THE ECONOMY
The spokesperson of the Prime Minister’s House rejected assertions contained in a recent report of Pakistan Economy Watch (PEW), which said political developments had taken a toll on the economy.

‘BEWARE OF TERRORIST FINANCING’
The State Bank of Pakistan (SBP) has stressed the need for exchange companies to understand the anti money-laundering (AML) and terrorist financing risks associated with their business transactions and asked them to ensure compliance with regulations of AML/CFT (combating financing of terrorism).

PETROLEUM MINISTRY WANTS CONTROL OF OGRA
The Ministry of Petroleum and Natural Resources (MoPNR) is trying hard to bring Oil and Gas Regulatory Authority (Ogra) under its control for smooth sailing of projects to import LNG and LPG as the regulator is consistently opposing the said project because of various reasons.

CNG SECTOR MAY CONSUME 27PC OF LOCAL GAS SUPPLY IN FIVE YEARS
Gas consumption by the CNG sector is the fastest growing sector in the country and if the current trend continues, CNG consumption of gas would be 27 percent of the local gas supply in less than five years.