Tag Archives: Alfalah Securities Limited

Govt. raises PKR 214 bn through T Bill Auction – Alfalah Securities Limited

Karachi, February 07, 2013 (PPI-OT): State Bank of Pakistan has accepted bids worth of PKR 214.5 bn as against the total bids received worth of PKR 223 bn where the highest bids were received in 6M tenor out of which SBP raised PKR 135.6 bn.

According to Alfalah Securities Limited, in the recent Treasury bill auction, the cut-off rates have remained unchanged. The cut-off yield on 3M, 6M and 12 papers remained at 9.0942%, 9.1645% and 9.2553 % respectively. State Bank of Pakistan (SBP) is due to announce the monetary policy statement in the beginning of February where Alfalah Securities Limited expects that the discount rate may be kept unchanged at the current levels of 9.5%.

PM approves investment Policy 2013 – Alfalah Securities Limited

Karachi, February 07, 2013 (PPI-OT): Prime Minister Raja Pervez Ashraf has approved Investment Policy 2013 prepared by the Board of Investment (BOI).

According to Alfalah Securities Limited, the policy would now be submitted to the Cabinet for approval. The 5-year Investment Policy 2013 includes gross Foreign Direct Investment (FDI) target of USD 5.5 bn where the federal government anticipates a progressive increase in net FDI inflows of USD 2 bn in the first year and an increase of about 25% in subsequent years to USD 2.5 bn in 2014, USD2.75 bn in 2015, USD 3.25 bn in 2016 and USD 4 bn in 2017. The government is eyeing an average annual GDP growth of 5% and FDI stock at 20% of GDP.

To achieve the FDI targets, a FDI Strategy for Pakistan 2013-17 was also formulated that includes reducing the cost of doing business in Pakistan, reducing the process of doing business and ease of doing business with creation of industrial clusters and special Economic Zones. It also covers the idea of linking trade industrial and monetary policies for greater convergence and to facilitate market entry of Small and Medium Sized Enterprises (SMEs). The draft proposes removal of State Bank of Pakistan and SECP equity caps on banking and non-banking financial institutes.

ECC approves gas pricing criteria of marginal gas fields – Alfalah Securities Limited

Karachi, February 07, 2013 (PPI-OT): Economic Coordination Committee (ECC) of the Cabinet has approved the gas pricing criteria for marginal gas fields.

According to Alfalah Securities Limited, as per the approved criteria, an additional premium of USD 0.25 / mmbtu will be offered on the 3 zones as defined in Exploration and Production Policy 2012.

Marginal gas fields are those oil and gas reservoirs that are not economically viable to be exploited under the existing exploration and production policies, pricing structure and available technologies.

The Price so determined for the Marginal gas fields will be referred to as “Base Price” will be allowed for pipeline specification. The government shall have the first right to purchase pipelines specification gas from the Marginal Gas Fields at a price to be determined in accordance with the policy where it shall exercise this right within 90 days from the date of application for declaration of a Marginal Gas Field beyond which the E and P Company will be free to sell the gas to the third party at negotiated rates either through pipeline or virtual pipeline. The windfall levy above the base price will be applicable to extent of 50% on the difference between the applicable base price arid the 3rd party sale price for the sale of gas from Marginal gas field to third parties and all the benefits of windfall levy may be equally divided between the Federal Government and concerned Provincial Government. The decision is taken to utilize every available option to lower the gas supply shortfall in the country which would be positive for the overall economy.

FBR proposed withdrawal of WHT concesionary rates – Alfalah Securities Limited

Karachi, February 06, 2013 (PPI-OT): Federal Board of Revenue has proposed withdrawal of concessionary rates of withholding tax (WHT) on imports by imposing it at a uniform rate of 5 % on imports of both manufacturers and commercial importers.

According to Alfalah Securities Limited, it is not only done to increase revenue generation but also to create a level playing field for tax payers. However, it would also increase the rates of imported products within the country.

Currently, part II of Second Schedule to the Income Tax Ordinance, 2001 relating to the reduction in tax rates stipulates that the tax under section 148 of the Ordinance shall be collected at the rate of 3% on the import value of raw material imported by an industrial undertaking for its own use, while there is rate of 1% of the withholding tax under various clauses of part II of Second Schedule to the Ordinance for different categories of taxpayers.

Industries assured of uninterrupted power supply – Alfalah Securities Limited

Karachi, February 06, 2013 (PPI-OT): President has instructed the Ministry of Water and Power to ensure uninterrupted power supply to the industrial sector of Punjab as hydro electric generation has been added in the system after opening of canals.

According to Alfalah Securities Limited, it bodes well for the smooth functioning of the industries and the cost of doing business also curtailed which is necessary for keeping the produce competitive in the domestic and foreign markets.

PPL announced healthy 1HFY13 results – Alfalah Securities Limited

Karachi, February 06, 2013 (PPI-OT): Pakistan Petroleum Ltd. (PPL) has announced healthy 1H FY13 results posting profit after tax of PkR 22.3 bn (EPS: PkR 13.58) depicting a surge of 11% YoY as against PkR 20.1 bn (EPS: PkR 12.24) during the same period last year. PPL’s management has also announced an interim cash dividend of PkR 5.0 per share.

According to Alfalah Securities Limited, the net sales increased by 12% YoY to PkR 50.7 bn in 1HFY13 due to higher production of oil and gas particularly from Nashpa fields, higher well head gas prices and devaluation of Pak Rupee against US dollar. Alfalah Securities Limited recommends a Buy on PPL with target price of PkR 222.0 per share.