Last update: Wed, 27 Jul 2016 08pm

BR Research: All


Much like every other sphere of life, in politics too, people only see what they want to see. Knee-jerk reactions at the stock market are also often a result of similar thinking. But, sooner or later, reality sets in and shaves off flawed perceptions.
Like most things in Pakistan today, the fate of Gas Infrastructure Development Cess (GIDC) is uncertain at best. The Supreme Court has reportedly annulled the cess terming it unconstitutional, ordering the authorities to reimburse the amount collected. Whether or not, actual reimbursement takes place is another story; but, it is sure to have an impact on the fertiliser industry dynamics.
The circular debt has crossed the Rs500 billion mark; thanks to increasing power sector receivables. And as per media reports, the growth in receivables is staggering as they jumped up by around four percent month on month in only one month, i.e. July 2014. Normally rising circular debt level starts haunting petroleum sales particularly that of furnace oil, when circular debt rises, power generation decreases and the fuel suppliers like PSO, APL and Shell lose sales volumes.
Aside from implications of the current political impasse in the country, news from the international front is seemingly not very encouraging for Pakistan’s cement sector. Recently, the International Trade Administration Commission of South Africa accepted an application by South African cement manufacturers, which alleges that Portland cement imported from Pakistan is being dumped on the South African Customs Union (SACU) market.
There is no scarcity of problems in this world. And when it comes to global economics, problems are, in fact, in abundant supply. But, what really are the biggest three economic problems faced by the world today?
When it comes to core banking, Silk Bank passes the test without a hitch. With an Advances-to-Deposits Ratio (ADR) of 73 percent and Investments-to-Deposits Ratio (IDR) ratio of 19 percent as of June 2014, the banks standing as a core banker seems quite convincing. Unlike its peers, Silk Bank is certainly not under the magic spell of lucrative yields on government securities rather it is excelling by boosting its advances portfolio.
FY14 was the year of overhauls and repairs for major independent power producers. And thus their profitability that picked up right after the settlement of circular debt remained stunted in year ending June 2014. But, for Kot Addu Power Company (Kapco) things started improving from the third quarter of FY14.