Morning Buzz for July 20, 2012 – MR Securities

Karachi, July 20, 2012 (PPI-OT): Engro seeks loan rescheduling to avoid default on TFC

The Engro Corp. has approached financial institutions to get rescheduling of its loans as the group is facing a liquidity crunch in the absence of cash flows from its fertilizer business.

According to MR Securities is in discussions with financial institutions to reschedule loans due as MR Securities’ new plant is idle due to the non-availability of the gas supply, a company spokesperson said.

Forex reserves rise to $14.93 billion
The country’s liquid foreign exchange reserves rose by $30.7 million to $14.939 billion during last week. According to State Bank of Pakistan, foreign exchange reserves stood at $14.908 billion a week earlier.

Remittance inflows: Pakistan ranked seventh in world
Pakistan is ranked seventh globally among the list of countries that are receiving large inflows of remittance as the country received net remittance of $9.7 billion in 2010.

Release of development funds yet to start in FY13
Development funds for 1,125 schemes across the country could not be released since start of current fiscal year as government has yet to appoint secretary of the Planning and Development Division (P and D).

SBP extends LTFF scope
SBP allowed banks/ development finance institutions (DFIs) to provide financing facilities for new imported and locally manufactured plant, machinery and equipment to be used by the export-oriented projects for producing soda ash under the long-term financing facility (LTFF).

EU trade concessions to transfer little benefit
The European Union (EU) Parliament will vote in two months to approve a limited trade concessions package for Pakistan. “The EU Parliament is scheduled to vote in September on duty-free trade concessions for Pakistan,” Lars Gunner Wigemark, the EU’s Ambassador to Islamabad.

Ministry’s plan to take control of OGRA gets stuck
A plan to give control of the Oil and Gas Regulatory Authority (Ogra), the oil and gas industry regulator which comes under the Cabinet Division, to the Ministry of Petroleum and Natural Resources has got stuck as the Ministry of Law terms the move unconstitutional.

Government to ban local diesel if Euro-2 standards not met
The government has decided to impose a ban on the sale of diesel by local refineries if they fail to set up plants and upgrade the product to Euro-2 standards by July 1, 2014.

Governance and security are the core concerns for the country’s current predicaments
Mohammad Saber is Lead Economist at the Social Policy Development Centre. Besides undertaken comprehensive and ground breaking research in economic and social issues in the country, he has advised the Government of Sindh on the 7th NFC Award.

KESC seeks uninterrupted 400MMCFD gas supply
KESC has demanded at least 400MMCFD gas from government in order to provide affordable electricity to its millions of consumers.

Fixation of POL prices on weekly basis: ECC rejects petroleum ministry”s proposal
The Economic Co-ordination Committee (ECC) of the Cabinet has rejected a proposal regarding fixation of prices by the petroleum ministry on weekly instead of fortnightly basis, sources close to the Petroleum Secretary told Business Recorder.

Barter trade deal: deadlock between Pakistan, Iran ends
Deadlock between Pakistan and Iran ended at last as the after agreed in principle to import one million tons wheat from the former under barter trade deal at prevailing price in the international market.

Oil and gas sector: Pakistan to provide all possible help to Iraq, says Asim
Dr Asim Hussain, Advisor to the Prime Minister on Petroleum and Natural Resources, has expressed confidence that Pakistan would provide all possible help to Iraq in Oil and Gas sector.

Oil refineries accused of producing low quality products
The oil refineries are involved in producing low quality products and are resisting up-gradation of plants, a senior official of Petroleum Ministry told a high level meeting of Ministry of Climate Change.

Hefty trade deficit at end- FY12
The curtain finally closed on the balance of payments for Pakistan with the current account deficit clocking in at a whopping $4.5 billion for FY12 against a surplus of $214 million in FY11.

Mechanism to rationalize drug prices
The federal government has decided to introduce a comprehensive drug pricing policy and a mechanism to rationalise the prices of life-saving medicines.

New pharmaceutical companies: Fed govt approves 32 licences
The federal government on Thursday approved 32 submissions for licensing to new pharmaceutical companies as well as fresh subjects of existing companies.