Despite the launch of the new WagonR model, Pak Suzuki Motor Co’s (KSE: PSMC) earnings remained subdued during the Apr-Jun period, owing to higher payables. The latest company results show that gross margins posted an increase of 50 percent for the half-year and over 34 percent for the quarter ended June 2014.
The ad hoc basis and lack of planning cannot be better explained the way government is handling the energy woes. It started the tenure with clearing the circular debt (a temporary solution) of nearly Rs500 billion. It had created additional supply immediately, but a year down the road, circular debt crossed Rs400 billion and the energy supply-demand gap has been widened even more than it was then—back to square one. Surprised?! Don’t be! Because this is what that was bound to happen anyways.
It seems that post-election legitimacy issues are not unique to Pakistan. In recent months, elections in Indonesia and Afghanistan have ended up in strife. It warrants an examination of how these two countries have approached the issue. Maybe, Pakistan can learn a thing or two from them.
Country’s economic managers are in Dubai to negotiate on the fourth review with the IMF. This is for the release of fifth tranche of $550 million from the Fund under the extended finance facility of $6.6 billion. The review was due in July but has deliberately been delayed by the lender to let incumbent government achieve a couple of structural benchmarks including hiring of financial advisor for PIA’s privatisation.
Remittance from Saudi Arabia is a gift that keeps on giving. Well, it’s not the kind of gift that Dar proudly received; rather it’s the hard-earned money of Pakistani expats toiling there in sweltering heat. The figure shows that in the last decade, Saudi-origin remittances’ share has doubled in Pakistan’s overall remittances to 30 percent in FY14. These inflows have consistently outgrown and driven Pakistan’s overall remittances during this period.