Ismail Industries acquires 20 percent BoK shares:

Ismail Industries acquires 20 percent BoK shares:

Ismail industries now holds 20% of the stake on Bank of Kyber (BoK) by investing Rs1 billion. Through this acquisition the company has diversified into
the financial market

10 percent cut in taxes for car makers suggested:

10 percent cut in taxes for car makers suggested:




The Ministry of Industries and Production has recommended 10% r
eduction in taxes for local car manufacturers, to be considered by
the ECC. Automobile production has come to a halt with local car
sales plunging by 51% at 19,066 units in the Q1’09. Among major
players, massive drop was witnessed in INDU's sales units with 64%
decline at 4,659 units that is followed by PSMC which registered
48% decline in sales volume over the same period of FY’08.
This could provide support to the ailing auto sector due to weakening
demand. There are, however, reports that FBR is unwilling to give
any concession to the auto sector with the argument that if the
government accommodates one sector all industries would also demand
the similar concessions in which case the sector may end up not
receiving any relief.

Cement export via Gwadar:

Cement export via Gwadar:

manufacturers turn down government proposal:


The cement manufacturers have turned down the government's proposal to
export cement through Gwadar, because they termed it a costly and
unsustainable activity due to high cost of transportation.
APCMA also confirmed that cement manufacturers had rejected the
proposal due to unsupportable infrastructure at Gwadar port and rise
in cost. The exporters said that they are already exporting cement at
lowest margin due to high competition in the world market and
shrinking construction industry in the Middle East and UAE. Cement
export through Gwadar would put additional burden of some US$6-8 per
ton cement, which is unsuitable for the industry. However, he added
that if the government agreed to pay some subsidy on cement export
and provided facilities at Gwadar, then APCMA would consider the
proposal.

Government not to tax agriculture income says Tarin:

Government not to tax agriculture income says Tarin:

Adviser to PM on Finance has said that the government is not planning to impose tax on agriculture as there is no pre-condition from the IMF. However in order to meet the tax to GDP ratio to 15% in a few years the government will have to bring as many sectors as possible in the tax net. The government plans to impose taxes on real estate and stock market as well. For agriculture sector taxes may burden the already struggling sector.

Shelving of QGF sell-off to cost government $1 billion:

Shelving of QGF sell-off to cost government $1 billion:


The federal government has abandoned the idea of divesting Qadipur Gas Field on the pretext that it was being opposed by the workers and opposition parties - a decision that would cost one billion dollars to the federal kitty. Earlier the government had decided to sell off 37% of its share in the Qadirpur gas field for about US$2 billion; however the total value of its assets is of over US$7 billion. This bodes positive for OGDC as, Qadirpur is the second largest gas field after Sui, with OGDC having 75% stakes in it. The field provides 50% of the gross gas revenues for OGDC.

Pakistan gets $3.1bn first tranche of IMF loan

Pakistan gets $3.1bn first tranche of IMF loan

The country received its first tranche of $3.1 bn of IMF loan yesterday as per the spokesman of SBP. This will help to shore up the forex reserves which as per the week ended November 22nd has declined to $6.6 billion. The inflow will help stabilize the Rupee Dollar parity and will give enough liquidity to ensure that the country is able to meet its external obligations for some months to come. However as per the IMF the country needs in excess of $13 billion in the current fiscal to meet its external obligations including the yearly debt services of around $3.5 billion. IMF has pledge around $4.7 billion for the current fiscal while the rest of the amount the Fund envisages will be met by other bilateral and donor institutes.

Forex reserves fall to $6.6bn

Forex reserves fall to $6.6bn

The reserves fell by $ 40 million in the week ended November 22nd to stand at $6.6 billion. The SBP own reserves fell to $3.44 billion from $3.46 billion a week earlier, and reserves held by commercial banks were $3.16 billion compared with $3.18 billion. Earlier SBP received its first tranche of $3.1 billion from IMF and the reserves numbers will show a healthy increase in the figures for the week ended December 4th.