Last update: Tue, 09 Feb 2016 06pm

BR Research: All


The power sector did not start FY14 with a bang. Though the partial resolution of circular debt in July 2013 did bring a respite in the sectors finance cost, it is apparent that improvements in the sectors financial performance greatly depends on a permanent removal of circular debt as well as improved plant efficiencies.
The government anticipates an increase in export earnings from the textile sector during the current fiscal year after the grant of the GSP plus status to Pakistan by the European Union. Is concentrating on the traditional US and EU market enough? As leading players like Bangladesh have total garment exports of around $22.50 billion last year, in just these two markets alone.
If the latest fertiliser numbers are anything to go by, farmers economy is surely looking up. The ongoing Rabi season has proved to be the best in terms of nutrient off-take in recent memory. The calendar year gone by was equally good, if not better, with urea off-take registering a massive rise of 37 percent year on year.
High volatility in the perishable food prices sub index drove the monthly hike in consumer price index at 0.96 percent to register the yearly increase of 8.53 percent in March 14. Perishable food index after a decline of 33 percent in the previous three months was up by 11 percent in March owing to high vegetable prices. Non-perishable food items increased by One percent in June and due to its high weight significantly lowered the impact of perishable to make the overall food index to soar by 2.2 percent.
Say what you like, condemn all you want, but in retrospect there seems to be a method to this madness that helped the currency recover from Rs106 against the dollar in mid-February to Rs98 by March 31.
Pakistan is in the spotlight these days. Not only are the economic statistics showing an encouraging sign, developments on the external front appear to be moving in favour of Pakistan.
Poor Gross Refining Margins (GRMs) comprehensively sum up the downstream oil and gas sectors refinery segment in 1H FY14. Therefore, the sector has generally underperformed the broader market; apart from some price sensitive occurrences in the industry (see Whats going on with PRL? published March 26, 2014).