Pakistan seeks deal to import up to 1m tonnes of Russian oil per year
|
|
Mohammad Ali, Pakistan’s caretaker energy minister, said that Islamabad was considering signing a long-term deal to buy between 0.7 million and 1 million tons of Russian oil per year. Pakistan’s first cargo, imported by the government, arrived in June and a second government-to-government shipment is under negotiation. Last week, Pakistan refiner Cnergyico imported the country’s first private-sector shipment of Russian crude oil. Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary that procures LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, making it the country’s first spot purchase in over a year.
|
|
|
Amid declining natural gas production by 8-9 percent annually, the country has found promising indications of the presence of heavy reservoirs of shale gas at the pilot well KUC-1, Hyderabad, Sindh. The project was initiated by the Oil and Gas Development Company Limited (OGDCL) in 2020. As per a USAID study, more than 3,000 TCF (trillion cubic feet) shale gas resources exist in various shale horizons of Pakistan. “We have vertically dug the well and discovered two layers of rocks containing shale gas and OGDCL experts will further vertically drill up to the third layer in the first week of next month. The data collected and analyzed after fracking the first two layers showed the presence of shale gas in abundance. After reaching and fracking the third layer, the process of digging the same well horizontally up to 1,500-2,000 meters within a depth of 3,000-6,000 meters would be undertaken,” according to Dr M Saeed Khan Jadoon, adviser to OGDCL on exploration of oil and gas and head of shale gas cell. For fracking the vertical and horizontal layers, OGDCL has already signed an agreement with Schlumberger, Pakistan. Dr Jadoon said that recovering the shale gas on a commercial basis was highly capital intensive and the cost of discovering such unconventional gas would cost $10-15 per mmBtu.
|
|
Pakistan finds indications of shale gas presence in well
|
|
|
Fee slapped on Afghan transit trade
|
|
In a significant move to curb the illegal entry of goods into the country, the government announced on a 10 per cent processing fee on items imported under the Afghan transit trade agreement. The decision — which aims to deter smuggling and ensure proper taxation — comes at a time when the government has ordered all illegal immigrants, including 1.73 million Afghan nationals, to leave the country or face expulsion. According to the Customs Department notification (SRO1381 of 2023), the fee, calculated as 10pc ad valorem based on the original value of goods, must be paid in advance during the declaration process for Afghan transit commercial goods entering Afghanistan via Pakistan. The items affected include confectioneries, chocolates, footwear, various machinery, blankets, home textiles, and garments. 10pc processing charges to be paid in advance at time of declaration for commercial goods imported via Pakistan. However, the notification stipulates that goods declarations filed before Oct 3 will not be subject to these new provisions. Customs officials suspect that certain goods, though destined for Afghanistan, are clandestinely rerouted back into Pakistan, prompting this latest measure. An official noted that cargo volume has surged recently. “Despite Afghanistan’s transit trade demand being $1bn to $2bn per year, we have observed a significant rise. This fee is expected to deter those involved in illicit trading,” the official said.
|
|
|
Pakistan National Shipping Corporation (PNSC) is contemplating procurement of two second-hand ships from M/s Shell Singapore with cooperation of M/s Byco. PNSC has sought permission of the Authority for the procurement of second-hand/ used vessels, crafts, ships and associated equipment/ machinery through negotiated tendering. As per PNSC representative brand new vessels would cost around $ 3.457 million. Pakistan has to pay around $ 7 billion to shipping lines in the absence of owned vessels. With regard to national interest, it may be noted that PNSC is the only flat carrier which can bring commodities like crude oil, etc., from abroad in case of war and emergency. Moreover, being nation’s flag carriers and one of the profitable SOEs PNSC has the potential to earn millions for the national exchequers. PNSC has been asked to explain the price reasonability mechanism for procurement of second-hand/ used vessels. The representative of PNSC responded that inspection mechanism and fair price value mechanism is prevalent in the market for such kind of procurement, third party validator or surveyor provides validation and estimation of the used vessel. The estimation/ validation of all the available used vessels are monitored by the Board of Directors of the PNSC which thereafter gives concurrence. After thorough deliberations, the Board decided to recommend to the federal government exemption under Section 21 of the PPRA Ordinance, 2002 from applicability of Public Procurement Rules, 2004 for the procurement of two second-hand vessels by PNSC. The Board further decided that PNSC shall forward a case through its line Ministry for insertion of a new rule defining mechanism for carrying out procurement of second-hand vessels in future.
|
|
PNSC buying two second had vessel
|
|
|
Pakistan likely to get $3.4bn out of $10.9bn pledged in Geneva
|
|
Pakistan faced unprecedented devastation due to torrential rains and flooding in most parts of the country, affecting 33 million people and resulting in economic losses $30 billion. A detailed scrutiny of committed pledges of $10.9 billion by the international donors for flood-hit areas shows that Pakistan is expected to receive approximately $3.4 billion only as net funding to execute the infrastructure projects. Now the Government of Pakistan has approved the execution of almost 13 development schemes for flood-affected areas out of which six projects were approved for Sindh, five projects for Balochistan, and one project each for Punjab and Khyber Pakhtunkhwa. As far as the disbursement of the committed amount is concerned, Pakistan has only received $1.48 billion in shape of both project loans and commodities financing from multilateral and bilateral creditors out of total Geneva pledges of $10.9 billion. The project financing has remained dismally slow and stood at just $780 million as of September 2023. According to an official statement, the Ministry of Planning Development & Special Initiatives has expedited the process for implementation of development projects being executed in the flood-affected area under the Resilient, Recovery, Rehabilitation & Reconstruction framework (4RF) as the second meeting of Federal Steering Committee on 4RF was held. The Federal Steering Committee on 4RF was constituted for implementation of development projects in the flood–affected areas after the flood of 2022 which badly affected the country particularly Balochistan and Sindh.
|
|
|
Pakistan’s textile exports, a key source of foreign exchange for the cash-strapped country, fell 12 percent year-on-year in September, extending a streak of declines that started a year ago, data from an industry body showed. The All Pakistan Textile Mills Association (APTMA) said textile shipments abroad amounted to $1.35 billion in September, down from $1.53 billion in the same month last year. In the first quarter of the current fiscal year, which began in July, textile exports dropped 10% to $4.12 billion from $4.59 billion in the same period a year ago. The textile sector, which accounts for more than 60 percent of Pakistan’s total exports, has been struggling with a host of challenges, including high energy costs, limited access to bank financing, and delayed refunds of sales tax and other duties. These factors have eroded the sector’s profitability and output. Since October 2022, export earnings from this major segment of the economy have continuously dropped in double digits.
|
|
Textile exports slump for 12th month in a row
|
|
|
Cotton output to jump 127%
|
|
The government has projected cotton production at 11.5 million bales from cultivation over an area of 2.4 million hectares this season, which shows a significant jump of 126.6% over output of last year.
|
|
|
Caretaker Interior Minister Sarfraz Bugti announced a November 1 deadline for illegal immigrants in the country to leave Pakistan, otherwise, all law enforcement agencies would deport them. The interior minister was addressing a press conference in Islamabad and briefing the media on the details of the decisions taken during a meeting of the apex committee on the National Action Plan at the Prime Minister’s House. The army chief, federal ministers, provincial chief ministers and heads of all civil and military agencies were present at the meeting. “The most important thing that was decided was that the welfare and security of a Pakistani are most important for us over any country or its policy. The first decision taken is about our illegal immigrants who are living in Pakistan through illegal means. “We have given them a deadline of Nov 1 to willingly return to their countries and if they don’t, all law enforcement agencies (LEAs) of the state and provinces will deport them.” He added that there were currently 1.73 million unregistered illegal Afghans living in the country.
|
|
Govt sets deadline of Nov 1 for illegal immigrants to leave Pakistan
|
|
|
UAE company allowed to acquire two energy firms
|
|
The Competition Commission of Pakistan (CCP) has given the green light to two mergers paving the way for foreign direct investment (FDI) and the potential mitigation of Pakistan’s gas shortage. The CCP has granted a UAE-based company approval for the acquisition of two entities engaged in the establishment and operation of an LNG terminal, as well as the import, storage, and distribution of Liquefied Natural Gas (LNG) and re-gasified liquefied natural gas (RLNG) in Pakistan. The watchdog approved the 100 per cent acquisition of Tabeer Energy (Pvt) Ltd (TEPL) and Tabeer Energy Marketing (Pvt) Ltd (TEMPL) by the UAE-based Bison Energy FZCO. It has completed the phase-1 competition assessments, conducted as per Section 11 of the Competition Act 2010. As the proposed transactions did not raise any competition concerns, the mergers were approved. As a result of the merger transactions, Bison Energy has acquired the entire shareholding of TEPL and TEMPL from Diamond Gas International Japan Co Ltd.
|
|
|
The Pakistan Business Forum (PBF) praised the finalisation of a free trade agreement (FTA) between Pakistan and the Gulf Cooperation Council (GCC), calling it a “remarkable step” for export growth. The FTA, which was signed in Riyadh, is the first by the GCC with any country since 2009 and is expected to increase trade between the two sides by up to 50 percent. “We have excellent relations with all the countries of the GCC, and this FTA will ensure that our economic ties are commensurate with these excellent relations,” PBF President Mian Usman Zulfiqar said in a statement. He said the FTA would provide a competitive level playing field to Pakistan compared with its South Asian neighbours.
|
|
Pakistan-GCC free trade deal hailed as ‘remarkable step’ for export growth
|
|
|
Govt considers imposing taxes on agriculture, retail, real estate sectors
|
|
The caretaker government is considering amendments to taxation regime for retail, agriculture and real estate sectors. Imposition of wealth tax on moveable assets is also being proposed. “The caretaker government has plans for materialising the FBR’s tax collection target of Rs9.2 trillion and increase tax-to-GDP ratio to 15 per cent, equivalent to Rs13 trillion, over the next two years,” official sources confirmed while talking to media. The Cabinet Committee on Economic Revival (CCER) was informed the government is considering amendments to the taxation regime for retail, agriculture and real estate sectors and impose wealth tax on moveable assets. The government is also considering removing tax exemptions on three major taxes being enjoyed by influential segments and powerful lobbies to the tune of Rs1.3 trillion on a per annum basis. The taxation plan is being considered by both the federal and provincial governments, keeping in view the fiscal arrangements enshrined in the 1973 Constitution.
|
|
|
Gamer Pakistan is an early-stage technology and e-sports company focused on game development, in-game AI community engagement and organisation of e-sports events in Pakistan. E-sports entail the competitive playing of video games by amateur and professional teams or individuals for cash and other prizes. The firm raised $6.8 million by selling 1.7m shares worth $4 apiece on New York-based Nasdaq, the world’s second-largest stock exchange in terms of the value of shares traded. It’ll use the proceeds to build infrastructure, organise and promote e-sports tournaments in Pakistan, increase staff, acquire e-game developers and provide general working capital. In addition, the company aims to gather “unique data” on college students in Pakistan, focusing on their mobility patterns related to video gaming and then “sell the data in ad exchanges, fuelling advertising innovation and reaching a targeted audience”. The company expects to take advantage of “nearly half a billion people” worldwide who consume e-sports content. It creates live events in Pakistan focused on university students. It’s currently building an e-sports platform to scale engagement and revenue opportunities.
|
|
Pakistani firm gets listed on Nasdaq
|
|
|
© 2023 Alpine Marine Services Private Limited all rights reserved
|
|
