Furnace oil sales by oil marketing companies managed to recover after the government bailed out the power sector in June last year. The temporary pain relief for power sector improved furnace oil sales that accounts for around 50 percent of the total oil sales by the OMC sector.
The recently concluded fiscal year FY14 failed to be as impressive as yesteryears for mutual funds. A comparison of returns in FY14 with that of the preceding year shows the returns for all categories of mutual funds narrowed down with the exception of aggressive fixed income funds.
Equity funds category closed the year with an average absolute return of 34.23 percent, 15.77 percent lower than FY13. The return is even lower when compared to the benchmark KSE-100 index that yielded 41.16 percent in FY14.
The eleven-month import numbers are out and they don reflect any substantial shift from the broad composition observed in 10M FY14. Data released by Pakistan Bureau of statistics continue to show an increase in capital expanding imports--such as machinery--along with a corresponding decline in consumption oriented imports that kept total imports in 11M FY14 almost at the same level as that in the year-ago period. However, there have been some noteworthy developments on month-on-month basis.
It is a collective perception that under-invoicing and under-valuing imports from United Arab Emirates are a source of leakage from the revenue collection. This is particularly in case of Dubai where Pakistani importers first land their consignments before dispatching them to the country. The damage comes in when these consignments are under-invoiced to evade taxes and duties, and hence bypass the governments tax authorities.
A little less than a month since the budget speech and the government may already be humbled. While the Finance Minister announced a 4.24 percent year-on-year growth in exports over the 10-month period, the figure has taken a dip and now stands at 3.5 percent over the 11-month period compared with close to 6 percent during the corresponding period of last fiscal year.
According to the economic think tank, Indian Council for Research on International Economic Relations (ICRIER), there is an untapped trade potential of USD1.6 billion between India and Pakistan. Exploring this untapped potential can lead to boosting the trade and competitiveness of the two countries, a recent study done by ICRIER pointed out.
The Nawaz Sharif government is rightly or wrongly also known as pro-industry. One is not sure fertiliser is considered as part of industry or whether the definition fails to go beyond textiles and industries surrounding Central Punjab. Whatever the case is, the government has erred big time and that too on the policy front, while deciding GIDC rates for the fertiliser industry.