Exports increase 18% YoY

The trade deficit was recorded at $1.43 billion in February 2014, lower by 7.5% or $115 million when compared with February 2013, showed the trade summary released by the PBS. PHOTO: FILE

ISLAMABAD: Pakistan’s exports increased dramatically by 18% in February compared with the corresponding month last year, almost three times more than the growth in imports, clocking in at $2.2 billion, according to the Pakistan Bureau of Statistics (PBS).

The growth in imports was recorded at 6.4% in February over the corresponding period of the previous year. Due to exceptional growth in exports, the trade deficit contracted in February compared to the same month last year, according to the PBS.

The trade deficit – gap between imports and exports in trade of merchandise goods− was recorded at $1.43 billion in February 2014, lower by 7.5% or $115 million when compared with February 2013, showed the trade summary released by the PBS.

In February 2014, imports stood at $3.6 billion, which were 6.4% or $217 million higher than the imports in February 2013.

For the first time in recent months, the monthly import bill has remained lower than official foreign currency reserves held by the State Bank of Pakistan (SBP). The SBP’s reserves stood at $3.9 billion by the end of February as a result of ‘aid’ given by ‘friendly countries’ to the Pakistan Development Fund (PDF), established after the changing geopolitical situation in gulf countries.

Meanwhile, the Pakistani currency continued appreciating against the United States (US) dollar. On Monday, the inter-bank rate further came down to Rs102.2, thanks to contributors of the PDF.

The terms of trade are expected to improve further in coming months, if the exporters are able to fully exploit the benefits offered to them under the duty free access to the European Union markets, according to analysts. The Generalised System of Preference Plus facility became effective from January.

On a month-on-month basis, the trade deficit in February over January dramatically contracted 31%. The trade deficit was $1.43 billion in February, $643 million lower than the trade deficit posted in January. Exports grew 5.2% month-on-month while imports contracted 13% in February over January, according to the PBS.

For the period from July-February of the fiscal year 2013-14, the trade deficit stood at $12.6 billion, which was 4.9% or $645 million less than the deficit the country posted in the corresponding period last fiscal year, according to the PBS.

Import payments in the period under review were $29.4 billion, $339 million or 1.2% higher than the payments made in the comparative period of the previous year, according to the PBS.

Exports during July-February remained at $16.9 billion as compared to $15.9 billion of the previous year, showing growth of 6.2% or $984 million.

For the current fiscal year, the government has targeted increasing exports to $26.6 billion and estimated that its import bill will remain at $43.3 billion, showing a gap of $16.7 billion in trade of merchandise goods.

Canadian oil firm wraps up Pakistani operations

AROL had a non-operating 10% working interests in Gambat South, Naushehro Feroz and Kotri North exploration blocks in Pakistan. PHOTO: FILE

ISLAMABAD: 

As Canadian-based firm Asia Resources Oil Limited (AROL) decides to divest interest in all its assets in Pakistan, Pakistan Petroleum Limited (PPL) has decided to acquire shares in three of its fields with potential reserves of tight and shale gas.

Several foreign firms have sold their assets in Pakistan due to poor law and order situation, low incentives and bureaucratic hurdles. AROL will add to the growing list.

The government is heading to form a subsidiary of PPL to acquire AROL’s assets. The three blocks are identified by PPL as ideally located in the unconventional exploration fairway of the Middle Indus Basin for tight and shale gas. PPL is spearheading the unconventional exploration initiative in the country, acquiring these blocks of strategic value to kickstart the exploration programme.

Sources said that the petroleum ministry had moved a summary to the Economic Coordination Committee (ECC), seeking approval for forming the subsidiary and acquiring AROL assets in Pakistan.

AROL, a British Virgin Islands (BVI) registered company with an office in Calgary and non-operating 10% working interests in Gambat South, Naushehro Feroz and Kotri North exploration blocks in Pakistan, is divesting its interest in all its assets. PPL, being the operator and a majority interest holder in the three exploration blocks, has an agreement with AROL on right of first refusal upon divestment of AROL’s working interests in the blocks. This means that in the event of AROL selling its stake, PPL will have to be offered the sale before the open market.

In Gambat South Block, PPL recently made two successive hydrocarbon discoveries and plans to drill further exploratory and appraisal wells. In Naushehro Feroz Block, drilling of an exploratory well is currently in progress. Furthermore, drillable prospects have been identified and land acquisition for drilling site is in progress in Kotri North Block.

Petroleum ministry had informed the economic decision-making body that the proposed acquisition by PPL would protect the three assets from being sold by AROL to small entities thereby creating hindrances for PPL in the fast-paced exploration required in these blocks. Moreover, through this acquisition, it would become relatively easier for PPL to raise foreign currency project financing for partly meeting the Gambat South field development costs.

The ECC has been informed that it is therefore of strategic national importance for PPL to acquire the 10% working interest and restructure it to source unconventional exploration technology through it from Canada.

For the corporate acquisition of AROL and three target assets through PPL’s wholly-owned subsidiary, an investment will be required to meet the immediate acquisition cost and for the subsequent exploration and appraisal plan costs for the Gambat South discovery. This amount will be injected by PPL in the form of equity contribution to PPL’s wholly-owned subsidiary.

The acquisition will contribute significantly to the long-term energy security of the country by enabling technology transfer in exploring unconventional hydrocarbon reserves (shale and tight gas).

The petroleum ministry has sought the ECC’s approval for equity investment by PPL. It had also sought approval of external debt financing in foreign currency which may be wholly or partly secured through PPL’s assets in Pakistan.

Freight charges: ECC likely to rule in favour of Pak Arab Refinery

The Inland Freight Equalisation Margin allowed the government to ensure a uniform price for fuel across the country by distributing the cost of transport equally. PHOTO: FILE

ISLAMABAD: 

The Economic Coordination Committee (ECC), scheduled to meet today, is likely to direct the regulator to implement the decision by the previous government to allow Pak Arab Refinery Limited (Parco) to charge freight on High Speed Diesel (HSD), leading to an increase of Rs0.18 per litre in its price.

It may be noted that Byco refinery had already approached the Competition Commission of Pakistan (CCP) over discriminatory treatment of Inland Freight Equalisation Margin (IFEM) incentives to the refineries. They had quoted the examples of Parco and Attock Refinery which were allowed to charge IFEM.

Sources told The Express Tribune that Oil and Gas Regulatory Authority (Ogra) had not implemented the decision of the previous government, saying that Parco had already reaped hefty profits due to incentives given by the federal government. The regulator had recommended that the decision regarding freight charging on HSD by Parco should be deferred until the complete deregulation of upstream and midstream sector.

“The estimated annual impact of crude transportation reimbursement on HSD will be Rs1.26 billion and per litre incidence on the HSD price will be Rs0.18 per litre. Existing annual crude reimbursement on Motor Spirit (MS) and Light Diesel Oil (LDO) is Rs945.37 million,” the regulator said.

Ogra said that since its establishment the Parco refinery had been given various protections/incentives by the federal government including a 25% guaranteed return regime and import parity price (IPP) price based on its implementation agreement and petroleum policy 1994. As a result, Parco had been earning a handsome pre-tax profit, earning a total profit of Rs74.88 billion till financial year 2011-12.

As per its IPP, Parco was allowed to include applicable inland freight from Karachi to Parco’s refinery in its ex-refinery price till the same were regulated. However, after controlled deregulation in June 2011, Parco was allowed to include crude pipeline transportation rates in its ex-refinery prices of MS, LDO and High Octane Blending Component (HOBC) instead of the applicable road freight on the same.

This decision resulted in passing the benefit of deregulation to the consumers and prevented Parco from charging higher road freights.

“In view of the federal government’s policy of liberalisation/deregulation in the petroleum sector, it is recommended that Parco crude transportation cost recovery on petroleum, oil and lubricants (POL) products should be deferred till complete deregulation of petroleum prices in the midstream and upstream sector. This proposal will add to the HSD price about Rs0.18 per litre which is not appropriate keeping in view the profitability of the refinery,” Ogra said.

Small farmers bear the brunt: Govt to keep wheat support price unchanged

Finance Minister Ishaq Dar chairing the ECC meeting on Tuesday. PHOTO: PID

ISLAMABAD: The government decided on Tuesday to keep wheat support price unchanged at Rs1,200 per 40 kg while approving an 8-million-metric-tonne procurement target for the new crop. The move may create resentment among the farmers but policy makers consider it necessary to keep staple food prices in check.

The decision was taken by the Economic Coordination Committee (ECC) of the cabinet, which had a meeting with Finance Minister Ishaq Dar in the chair.

It was for the first time in six years that the farming community will not reap benefits of the increased support price – the minimum rate at which government agencies procure commodity from the farmers. In its five-year tenure, the PPP government had increased commodity prices manifold, almost tripling it from Rs425 per 40 kg in 2008 to Rs1,200 kg in 2012.

The last price increase was announced just months before the last year’s general elections when the PPP government raised the support price for wheat by Rs150 per 40 kg to Rs1,200 – up by 14.3%. The decision not to increase the prices was taken by the Ministry of Food in consultations with the provinces, said officials.

The ECC approved the summary of Ministry of National Food Security and Research for fixing procurement target for the wheat crop 2013-14 at 8 million metric tonnes. The federal government and the four provincial governments will require Rs240 billion financing to procure the commodity from the farmers, according to the officials.

The ECC decided that Pakistan Agriculture Storage and Supply Corporation will buy 1.6 million metric tons of wheat. The maximum procurements will be made by the Punjab government which will procure 4.5 million tons, followed by Sindh (1.3 million metric tonnes), Khyber-Pakthunkhwa (450,000 metric tonnes), and Balochistan (150,000 metric tonnes).

Province/Agency	Target (Million Tons)
Punjab	4.500
Sindh	1.300
Khyber Pakhtunkhwa	0.450
Balochistan	0.150
PASSCO	1.600
Total:	8.000

Ban on gold import

For a second consecutive time, the ECC has decided to extended ban on the import of gold till the end of current month. The Finance Minister has repeated his previous directions to the Ministry of Commerce, asking it to reexamine the issue holistically for submission of the matter to the ECC in its next meeting, according to an official handout.

The ECC had temporarily imposed a ban in July last year after reports that the importers were smuggling gold to India and reaping benefits. The imports and subsequent smuggling adversely affected the foreign currency reserves of the country.

In contrast, Dar asked the Commerce Ministry to lift restrictions on the export of gem stones imposed last month.

Export of sugar

The Finance Minister had directed the officials of the Ministries of Commerce and Industries to ensure shipment of export quota of sugar up to 500,000 metric tons. He said that both the ministries and the State Bank of Pakistan should reconcile their data on sugar export.

He also directed the Commerce Ministry to submit a comprehensive policy on sugar.

During the meeting, the finance minister said that all economic indicators were on the positive trend. He said growth was moving up, inflation was going down. He further said the foreign exchange reserves were growing and value of rupee was appreciating. He added that the economic scenario of the country was moving in the right direction.

KPK initiates 4 Mega Projects for Peshawar communication

PESHAWAR – Speeding up efforts for a smooth communication system in the city,Khyber Pakhtunkhwa government completes feasibility of four major projects.

The projects launching of Mono-train, rapid bus service, Peshawar Beautification and Widening of existing road network.

The projects will be give a sigh of relief to the Peshawariites irked with the congested roads and growing vehicles.

Jamrud Road, as per plan envisaged, will be widened to up to three lanes from Phase III Hayatabad Intersection to Karkhano Market.

Works on laying carpeted road for Rapid Bus Service has already been commenced from Nasirpur GT Road to Karkhano Hayatabad of the provincial capital.  It will take one year to be compeleted.

Oscar Pizza delivery man gets 1000 dollar tip for delivering !!!!

Oscars night was not only the biggest night for Hollywood this year. The pizza delivery man who fed stars at the Oscars too had his share. He was awarded the best tip for a supporting player: Ceremony hostEllen DeGeneres handed the pizza delivery guy $1,000 in cash.

Oscar host Ellen DeGeneres with pizza delivery man, Edgar Martirosyan, on stage at the Dolby Theatre on March 2, 2014 in Hollywood, California. (AFP Photo)

The tip included money collected from A-list celebrities who chowed down on the pies during the ceremony Sunday and from DeGeneres herself.

READ: TWEEPLE TO ACADEMY, PLEASE GIVE LEONARDO AN OSCAR

Edgar Martirosyan received the tip during a visit on Monday to The Ellen DeGeneres Show.

DeGeneres said she passed Pharrell Williams' oversized hat at the Oscars and collected about $600, then contributed more.

The Big Mama's & Papa's delivery guy said he had already gotten a reward: serving Julia Roberts, whom he called the woman of his dreams.

DeGeneres received her own Oscars spiff. Her talk show's producer, Telepictures Productions, said that Monday's episode was the highest-rated in the series' 11-year history

Captain America Chris Evans to take a break from acting -

Actor Chris Evans is planning to take a break from acting after he is done playing a superhero in Captain America.

The 32-year-old actor, best known for his role in the Marvel's franchise, is slated to hit the silver screens this April with the release of Captain America: The Winter Soldier.

"I think when I'm done with this Marvel contract, I'll take a little break from acting," Evans told Glamour UK.

"With acting, you're one piece in a very big puzzle. It's like you helped buy a gift but you don't know what the gift is, so you come back and see the movie. Sometimes it's nice, sometimes it's tragic," he said.

But the superhero is keeping him busy these days. Evans reprised his role as Captain in 2012's The Avengers and also made a cameo in 2013's Thor: The Dark World. He is putting on his superhero dress again for 2015's Avengers: Age of Ultron, co-starring Robert Downey, Jr, Chris Hemsworth, Samuel L. Jackson, Scarlett Johansson, Elizabeth Olsen, Jeremy Renner, Mark Ruffalo, James Spader and Aaron Taylor-Johnson.

The actor is also hoping to go behind the camera. He starred in his directorial debut 1:30 Train in December 2013.

"You're involved in every single decision. If I hadn't done it, I'd be really kicking myself. At the time, it was a daunting task or a number of reasons, but in hindsight it was the right move," he said about his debut.

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