05292016Sun
Last update: Sun, 29 May 2016 10pm

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The government has issued Letter of Intent (LoI) to award the contract for setting up second Liquefied Natural Gas (LNG) terminal at Port Qasim in Karachi. As per details, the Board of Directors of Pakistan LNG Terminals Limited (PLTL) in its meeting held on May 6 approved a financial bid submitted by Pakistan GasPort Limited (Consortium) which includes Fauji Oil Terminal and Distribution Company Limited (FOTCO) which offered a levelized (service) charge of $0.4177 per MMbtu for handling of 600 Million Cubic Feet per Day (MMCFD) of LNG at the terminal. The next process is to sign LNG Services Agreement (LSA) which is under negotiation with successful bidder.

The Federal Board of Revenue (FBR) has proposed to withdraw a number of income tax exemptions in budget (2016-17) including reduced rates of withholding taxes on supplies, services & contracts; dividend from agriculture income; reduced rates of withholding tax on supply of cotton lint, raw wool/rice, exemption on flying allowance; withholding tax on insurance premiums and claims; deletion of option to textile services providers to be assessed under minimum tax and withdraw exemption to the perquisites of judges of courts.
The annual cost of sales tax exemptions is around Rs 208 billion in 2015-16 forcing the Federal Board of Revenue (FBR) to impose sales tax on the machinery, equipment and other education and research related items imported by technical, training institutes, research institutes, schools, colleges and universities in budget (2016-17). Sources told Business Recorder here on Friday that the FBR has proposed measures to reduce the overall cost of sales tax exemptions of Rs 208 billion for 2015-16.
The Federal Public Sector Development Programme (PSDP) will be increased by 14 percent in next year's budget - from Rs 700 billion to Rs 800 billion - while provincial PSDP would increase by 7.5 percent - from Rs 813.7 billion to Rs 875 billion. The Annual Plan Co-ordination Committee (APCC) met under the chairmanship of Minister for Planning, Development and Reforms Ahsan Iqbal.
The Group of Seven industrial powers pledged on Friday to seek strong global growth, while papering over differences on currencies and stimulus policies and expressing concern over North Korea, Russia and maritime disputes involving China. G7 leaders wrapped up a summit in central Japan vowing to use "all policy tools" to boost demand and ease supply constraints.
Ministry of Water and Power has reportedly sought a Rs 208 billion subsidy for power sector in financial year 2016-17 against Rs 144 billion earmarked for the outgoing fiscal year, showing an increase of 44 per cent, well informed sources told Business Recorder. The government had earmarked Rs 118 billion in the budget of 2015-16 as Tariff Differential Subsidy (TDS) to maintain equal tariff within Distribution Companies (Discos) across Pakistan, including K-Electric. However, after inclusion of Rs 9 billion subsidy to AJ&K, Rs 10 billion to FATA and Rs 7 billion to agriculture tube-wells in Balochistan, the total amount of subsidy was Rs 144 billion.
Stocks ended the week on a positive note. The benchmark KSE-100 index closed 153 points higher at 36,694 points under the lead of oil scrips. In the intraday trade, the index showed volatility by hitting the session high and low of 36,776 and 36,531 points. Trading turnover slid to 199 million shares worth Rs 9.43 billion compared to the previous Rs 9.68 billion. Of the 381 scrips traded, 191 appreciated, 163 depreciated and 27 ended unchanged.