Morning Buzz for Sep 05, 2011 – MR Securities

Karachi: World Bank chief warns of economic danger zone

According to MR Securities,

World Bank Chief Robert Zoellick warned on Saturday that the global economy was heading into a new “danger zone”, as he urged China to speed up structural reforms to help its development.

FHFA sues major banks, FIs
It was a jittery start of the month. On Friday, US Regulator, Federal Housing Finance Agency (FHFA), sued major banks and financial institutions over sub-prime bonds for misleading Fannie Mae & Freddie Mac about the soundness of mortgages, as the values were overstated and, in many cases, excess loan was given to the borrowers.

Fuel shortage
Motorists faced immense difficulties to refuel their tanks here on Sunday as several stations closed their dispensers due to fuel shortage.

Playing it smart: Effectively taxing our capital markets
The Karachi Stock Exchange (KSE) closed fiscal year 2011 with a near 29% growth in equity values. Though highly skewed due to the price movement of certain heavyweights, the growth makes a good headline number.

President’s visit: Exploring new business opportunities with China
President Asif Ali Zardari’s recent visit to China is expected to open up new avenues for boosting trade and regional connectivity.

No free lunch: A powerless private sector for power reforms
When Economic Coordination Committee of Cabinet decided late last month to hand over thermal power generation companies to the private sector for 10 years, though without giving them the power to fire existing workforce, it essentially rolled back on its own new privatisation policy, that present Cabinet had approved on January 6 last year.

‘Rationale for tax amnesty unsound’
The idea behind tax amnesty schemes to unearth huge amounts of undeclared money has become controversial, questionable and useless as it is not adding significantly to government coffers but on the contrary it is encouraging big-time tax evaders and their helpers, said Pakistan Economy Watch (PEW) on Friday.

Energy crisis: SBP urged to finance rice husk power plants
The Union of Small and Medium Enterprises (Unisame) has urged SBP to help rice millers and processors import biomass rice husk gasification power generation systems under pay-as-you-earn scheme to overcome energy crisis.

CASA-1000 project in the doldrums?
The electricity import project codenamed CASA-1000 (Central Asia-South Asia) is in the doldrums as World Bank, the most critical catalyst in project backed by Washington so far, has reportedly requested the Tajik government to review progress of Rogun dam’s environmental assessment studies and its impact on the drying Aral Sea.

SNGPL restores gas to Industrial Zone I
The Sui Northern Gas Pipe Lines (SNGPL) has decided to restore gas to Industrial Zone I, comprising Lahore, Sahiwal and Sheikhupura, from Saturday evening at 1800 hours while the industries in Zone II, comprising Faisalabad, Multan, Bahawalpur, Islamabad and Gujranwala, region will be restored on Monday at 0600 hours.

Thar coal gasification project: first test burn expected next month
The first test burn at the underground coal gasification project at Tharparkar in Sindh province is expected to be conducted next month. 100 megawatt electricity is planned to be generated by the project by December 2013.

SSGC deploys vigilance teams in Sindh, Balochistan
Sui Southern Gas Company (SSGC) has deployed its engineering and vigilance teams to monitor gas distribution system throughout Sindh and Balochistan.

Sales pick up ahead of Eid as law, order improve
Retail sales picked up this week in Karachi as markets, which were spooked by recurring shutdowns amid violence for over a month, opened up and shoppers ventured out in droves ahead of Eid, traders said.

Neelum-Jhelum project contract awarding: delay led India to begin Kishanganga hydel works
The anomalous delay in awarding Neelum Jhelum hydroelectric project by the Ministry of Water and Power paved the way for Indians to start the controversial 330 MW Kishanganga hydro electric project (KHEP) in May 2007.

Planning Commission unveils PSDP report
The Planning Commission of Pakistan has launched Public Sector Development Projects (PSDP) report, highlighting the completion of 167 development projects costing Rs95,294.12 million.

MCB starts process for getting ADRs enrolment
The MCB Bank Limited has initiated the process of getting its shares enrolled for Sponsored Level I American Depository Receipts (ADRs) in New York, a statement said on Tuesday.

Pakistan Steel denies facing political pressure
The present management of Pakistan Steel Mills (PSM) does not believe in any political pressure and influence in affairs of PSM and takes all the decisions in a transparent manner on merit, said PSM in a statement.

Pakistan and Afghanistan joint energy projects: Medvedev sees no progress
Russia on Friday lamented a lack of progress in joint energy projects with Pakistan and Afghanistan that could help bring stability to the volatile region as President Dmitry Medvedev met his counterparts for a security summit.

Handing over power Gencos to private sector supported
Business community has supported proposal of Water and Power Ministry to give control of some Power Generation Companies to private sector for a specified time in a bid to transform them into profit making entities.

Financial documents: Federal Cabinet approves Pepco’s revision
Federal Cabinet has approved Pakistan Electric Power Company’s (Pepco) revision of financial documents at behest of foreign lenders subsequent to their finalisation by relevant ministries for the 425MW combined cycle power project Nandipur (Gujranwala), despite disagreement between the Ministries of Law, Finance and Water and Power.

Ogra empowered to revoke failed companies” licences
Under new LPG policy, Oil and Gas Regulatory Authority (Ogra) has been empowered to revoke licences of those who would fail to demonstrate firm supply commitment of minimum 5 tons / day for a period of 3 consecutive years.

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