North Atlantic Treaty Organisation Supply routes resumed – Alfalah Securities Limited

Karachi, July 04, 2012 (PPI-OT): Govt. of Pakistan has decided to reopen the Ground Lines of Communication (GLOC) for NATO troops fighting in Afghanistan after the United States apologized over the killing of Pakistani soldiers on the Salala check post in the November.

According to Alfalah Securities Limited, the decision was taken at a meeting of the Defence Committee of the Cabinet (DCC) that the NATO supply routes will re-open for non-lethal cargoes without charging any transit fee.

However, as part of the deal, United States has agreed to release around USD 1.1 billion to Pakistan’s military upon removal of a blockade on NATO supply convoys into Afghanistan. Alfalah Securities Limited believes that the resolution of NATO Supply resumption would bode well for the capital markets as the uncertainty has been removed while an inflow of USD 1.1 billion would also lead to stabilize deteriorating economic situation on the external front, thereby, providing some cushion to the on-going steep devaluation of Pak Rupee.