tag:blogger.com,1999:blog-5848640164815342479.post2430715523563867168..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: Pakistan Sees Robust Growth in Demand For Energy, Autos, Cement & SteelRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger76125tag:blogger.com,1999:blog-5848640164815342479.post-62983735907370102902021-01-15T09:15:00.177-08:002021-01-15T09:15:00.177-08:00#Pakistan’s #cement sales in the 2nd quarter of fi...#Pakistan’s #cement sales in the 2nd quarter of fiscal year 2020-21 touched an all-time high of 15.1 million tons, up 11% quarter-on-quarter as well as year-on-year. In the first half of FY21, cement sales rose 16% year-on-year to record 28.6 million tons<br /><br />https://tribune.com.pk/story/2279722/cement-steel-prices-to-remain-high<br /><br /><br />Pakistan’s cement sales in the second quarter of fiscal year 2020-21 touched an all-time high of 15.1 million tons, up 11% quarter-on-quarter as well as year-on-year, according to a report of Topline Securities.<br /><br />In the first half of FY21, cement sales rose 16% year-on-year to 28.6 million tons, it revealed.<br /><br />“Cement prices will register a further hike as capacity utilisation is increasing robustly,” Topline Securities’ Deputy Head of Research Shankar Talreja told The Express Tribune. “The power to influence prices is with manufacturers at present.”<br /><br />Industry utilisation based on total sales came in at 91%, adjusted for closed capacities, in the second quarter (Oct-Dec) of FY21. Based on just local sales, the utilisation stood at around 77% with 86% in the northern region and 48% in the southern region.<br /><br />The strong growth in cement sales could be attributed to economic recovery in the face of low interest rates, announcement of a construction package, allocation of banking sector liquidity to the construction and housing sector and beginning of construction of dams, he said. In the last three months, housing loans increased by Rs43 billion, he added.<br /><br />“During the outgoing quarter, coal prices surged to an average of $60 per ton compared to $55 per ton about six months ago,” he said. “As a result, fuel cost per ton for major cement companies is expected to increase by 10% quarter-on-quarter.”<br /><br />To pass on the impact to consumers, the cement producers hiked prices in December 2020 by around Rs20 per bag in the north to Rs570. JS Global analyst Arsalan Ahmed told The Express Tribune that steel prices were on the rising trend.<br /><br />Pakistan Large-Scale Steel Producers (PALSP) Secretary General Syed Wajid Bukhari said due to shortage of scrap globally, its price had risen above $500 per ton and as a result, rebar rates were increasing in Pakistan. “Local companies, however, are working at margins of less than 5%,” he said.<br /><br />He added that Pakistan was almost totally dependent on imported raw material for producing steel and requested the government to take urgent measures to contain the impact of price hike on the mega infrastructure projects as well as other ongoing construction projects.<br /><br />The industry suggested to the government to remove sales tax for some time and reduce the cost of electricity to offset the impact of soaring raw material prices, which was a global phenomenon, he said.<br /><br />However, the government did not take any measures to address the situation, he lamented.<br /><br />“We believe that the steel sector has been ignored as it is not receiving much-needed attention from the government,” he said.<br /><br />Recently, the demand for steel picked up but margins remained very low and most of the large units were working at 50-60% of their capacity, he said.<br /><br />“In recent months, steel prices have increased by 55% in India,” he said. “In the US, prices are likely to touch $1,000 per ton, which is twice the rate being charged a few months ago.”Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-32906851252984700412020-11-10T09:21:00.635-08:002020-11-10T09:21:00.635-08:00With a big part of the fragmented industry operati...With a big part of the fragmented industry operating in the informal sector, it is almost impossible to estimate the exact domestic demand and supply ratio. But the industry estimates that the per capita steel consumption, according to the Pakistan Credit Rating Agency, has increased to over 43kgs (from less than 25kgs a decade back). Yet the per capita consumption remains one of the lowest in the world against the world average of over 240kgs.<br /><br /><br />https://www.dawn.com/news/1589282/bad-policy-good-intention<br /><br /><br />The steel demand has picked up sharply since June following the resumption of business activities after the decline in the Covid-19 infections in Pakistan. The unaudited accounts of some of the major companies listed on the Pakistan Stock Exchange (PSX) for the first quarter of the ongoing financial year to September confirm that the industry is on the path of quicker recovery from the severe pressures of the International Monetary Fund mandated economic stabilisation policies exacerbated by the negative impact of the coronavirus pandemic in the last quarter of the previous fiscal year.<br /><br />The accounts show that the companies have recorded better top-line growth this year so far when compared with their performance during the corresponding period last year. The bottom lines of the steel manufacturers, who had suffered significant losses last year, are also turning green from red. The rebound in the fortunes of the steel firms is ascribed mainly to the pent-up demand unleashed by the Covid-19 economic stimulus package implemented by the State Bank of Pakistan (SBP), including the reduction of 6.25 percentage points in the policy interest rate to seven per cent, to fight off the effects.<br /><br />“The impact of the construction and housing package announced by the government is yet to come on the steel industry,” Meher Kashif, the managing director of Model Steel, one of the largest steel companies with a manufacturing capacity of 600,000 ton, asserted during an interview with this correspondent. “The demand in the construction sector, which feeds into 35-40 allied manufacturing industries and services, remains subdued so far. The reasons are as clear as day: the public sector development spending has been slashed substantially; no new industrial project is being undertaken, and no large commercial project is coming up,” he elaborated.<br /><br />Speaking about Prime Minister Imran Khan’s generous housing initiative, Kashif explained that the measures announced favoured the large corporate companies, which do not see much demand for housing in the market at this moment. The smaller contractors, who work with a capital of up to Rs100 million, do not find the package attractive enough because of requirements of documentation, he added.<br /><br />“The developers and investors have used the construction package to purchase land but nobody has until now announced any major scheme. That’s why you see the land prices falling again. The government needs to find a solution to support the undocumented small builders who operate in the informal economy to construct one or two houses a year and inspire confidence and bridge the trust gap or the success of its housing initiative.”<br /><br />The raft of lucrative policy, fiscal, and monetary measures announced to push-start construction and housing include no-question-asked-on-source-of-income-amnesty-scheme on the investments made in the construction industry before the end of 2020, and tax cuts and exemptions for real-estate developers and builders. These incentives were topped up later with cash support of Rs300,000 each on the first 100,000 housing units in the price range of under Rs2.5m (this does not include the cost of land) and subsidised mortgage finance for 10 years on the construction of 5-marla and 10-marla housing units.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-46868547281142655872020-01-11T07:19:50.867-08:002020-01-11T07:19:50.867-08:00Pakistan Energy Mix: Overview of Gas Sector (Upstr...Pakistan Energy Mix: Overview of Gas Sector (Upstream)<br />Pakistan imports almost 80% of its energy sources (oil, gas and LNG). GVS brings out a detailed report on Pakistan’s upstream sector to analyze country’s mammoth challenges. It examines how innovative policy making, better management and vision can still make a difference.<br /><br /><br />https://www.globalvillagespace.com/pakistan-energy-mix-overview-of-gas-sector-upstream/<br /><br /><br />The country used 28.1 million TOE of petroleum products in FY18, with 85 percent imported. Currently, Pakistan has a total of 9 million gas consumers in the country, with an annual addition of 0.5 million consumers. Sindh by far has the country’s largest gas production at 943,644 MCFt (65%), Balochistan at 310,535 MCFt (22%), KPK at 151,178 MCFt (10%), and Punjab 53,580 MCFt (3%).<br /><br />Sindh also has three of the current largest fields producing gas, Mari, Qadirpur, and Kandhkot. Sui gas field in Balochistan, discovered in 1952, was Pakistan’s first and largest gas field found so far, had around 13 TCF of gas. It currently only has one TCF remaining and is nearing the completion of its life. These five fields represent over 50 percent of Pakistan’s recoverable reserves.<br /><br />Gas Consumption<br />Pakistan has experienced major energy crises in the past decade as a result of expensive fuel sources, suffering from chronic natural gas shortages in the winter and electricity shortages in the summer, all exacerbated by the circular debt, and insufficient transmission and distribution systems over the past several years.<br /><br />Roughly, 50 percent (about 105 million people) of Pakistan’s population still use biomass for cooking because of low electricity and gas supply. Natural gas plays a significant role in the energy matrix of Pakistan. In 2018, natural gas accounted for an estimated 30 percent of Pakistan’s primary energy consumption, petroleum at 35 percent, and coal at 16 percent.<br /><br />Pakistan is the 20th largest gas consumer of the world, with an established natural gas industry since the 1950s. However, ironically Pakistan’s gas consumption is nearly the same as in France, which is a developed and industrialized country [with a GDP ten times bigger than Pakistan].<br /><br />Natural gas consumption has increased from 1,377,307 MMCFt to 1,454,697 MMCFt. RLNG imports have increased to 313,902,345 MMBtu. There was a time when Pakistan was self-sufficient in gas. However, increased domestic demand over time, fueled by cheap mispricing of the natural resource, creation of the CNG motor vehicle industry, lack of alternative fuels, and diminishing production have resulted in increased amounts of imported gas.<br /><br />In FY18, approximately 7.7 million TOE LNG gas was imported. Currently, Pakistan has over 9 million domestic consumers of gas, and these are growing by over 8% each year. The majority of domestic consumers, around 5.4 million, are based in Punjab; that account for 60 percent of the total domestic gas consumers, Sindh has 35 percent of the country’s domestic consumers at 2.6 million.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52223321975873732532019-10-04T08:21:40.216-07:002019-10-04T08:21:40.216-07:00#UAE to invest $5 billion in #oil #refinery projec...#UAE to invest $5 billion in #oil #refinery project in #Pakistan by end of 2019. #FDI #Energy<br />https://www.dawn.com/news/1508944<br /><br />In an interview with the publication, UAE Ambassador to Pakistan Hamad Obaid Ibrahim Salem Al-Zaabi said: "We are going to launch very soon one of the biggest investments in a refinery project in Hub. It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (Parco) and OMV [OMV Pakistan Exploration Gesellschaft]."<br /><br />According to Arab News, Al-Zaabi said the project was a result of "extensive discussions" between Mubadala Petroleum, Pakistan's petroleum ministry as well as Parco and OMV.<br /><br />"This project will show the strength of UAE-Pakistan relations and how the UAE is focusing on investment in and future of Pakistan," he was quoted as saying, adding that the two nations were moving forward on new projects and investment.<br /><br />The UAE ambassador said that the two governments were "finalising the minute details of this refinery project".<br /><br />"Many meetings have taken place regarding this project," he added, sharing that a UAE delegation, headed by the chief executive officer of Mubadala Petroleum, had met with the Board of Investment (BoI) chairman and the petroleum minister during a visit to Pakistan a few months ago.<br /><br />"They have discussed this project in detail. We are going to launch it very soon," Al-Zaabi said.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-39343260081285842522018-11-05T22:03:27.107-08:002018-11-05T22:03:27.107-08:00https://www.ceicdata.com/en/indicator/pakistan/oil...https://www.ceicdata.com/en/indicator/pakistan/oil-consumption <br /> <br />Pakistan oil consumption 588,000 barrels per day in 2017<br /><br />https://www.ceicdata.com/en/indicator/pakistan/natural-gas-consumption<br /><br />Pakistan gas consumption 3.94 billion cubic feet per day <br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-70443168773570712792018-08-28T07:43:00.094-07:002018-08-28T07:43:00.094-07:00#Pakistan Total Primary #Energy Consumption in 201...#Pakistan Total Primary #Energy Consumption in 2016: 83.2 million tons of #oil equivalent (MTOE), up 7.6% from 2015. Source: BP Statistical Review of World Energy <br /><br />https://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review-2017/bp-statistical-review-of-world-energy-2017-full-report.pdf …<br /><br /><br />https://twitter.com/haqsmusings/status/1034450542779486208<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-62483935741108743262018-08-22T17:33:01.691-07:002018-08-22T17:33:01.691-07:00Pakistan’s energy-related imports increase 34% to ...Pakistan’s energy-related imports increase 34% to $1.27b<br /><br /><br />https://tribune.com.pk/story/1786223/2-pakistans-energy-related-imports-increase-34-1-27b/<br /><br /><br />Pakistan’s import bill for energy products increased 34% to $1.27 billion, which amounts to one-fourth of the total import bill in July. The rise is due to uptick in demand, global surge in oil prices and rupee devaluation.<br /><br />Cumulative import of petroleum products and gases stood at one-fourth, or $947 million, in the same month of the previous year, according to the Pakistan Bureau of Statistics (PBS).<br /><br />“Imports have (partly) increased due to surge in demand emerging from power houses and rising number of cars on the roads,” Sherman Securities’ analyst Sadiq Samin said in a comment to The Express Tribune.<br />PBC urges Asad Umar to focus on ‘Make in Pakistan’<br /><br />Power production increased 10% to 13,751 gigawatt-hour (GWh) in July 2018 compared to 12,497 GWh in the same month of the previous year, according to National Electric Power Regulatory Authority (Nepra).<br /><br />Similarly, the sales of locally assembled cars surged 9% to 21,344 units in July on year-on-year basis, according to Pakistan Automotive Manufacturers Association (PAMA).<br /><br />Additionally, the notable rebound of 36% in international oil (Brent crude) price to $77.85 per barrel and 19% devaluation of the rupee during the last 12 months have also contributed heavily to elevating the energy import bill in July, the analyst said.<br /><br />Pakistan excessively relies on energy imports in absence of local oil and gas production. It meets over 70% of its energy demand through imports, according to an estimate.<br /><br />LNG import<br /><br />Import of liquefied natural gas (LNG) grew significantly by 144% to $332 million in the month compared to $136.2 million in July 2017 due to inception of several mega LNG-fired power houses in the last one year, according to the PBS.<br /><br />Pakistan swiftly established LNG-based power plants following the formation of the import infrastructure in the last few years. At present, two LNG import terminals (Engro Elengy and Pakistan LNG) are operational with an installed capacity of 600mmcfd each.<br /><br />The projects of a cumulative installed capacity of around 4,000 megawatt-hour have also replaced a number of oil-fired power plants.<br /><br />The shift in power production to gas from furnace oil and diesel also reflected in the import data. The import of refined products dropped 27%. In value terms, it reduced 4% to $556.2 million in the month on a year-on-year basis.<br /><br />Industry officials including Pakistan State Oil (PSO) CEO and MD Sheikh Imranul Haque have linked the drop in import of refined products to the closure or reduction in the use of oil-fired power plants in the country.<br /><br />On the other hand, demand for other refined products like petrol and diesel remained on the higher side with improved performance of large-scale manufacturing industries like fertiliser, automobile, cement and steel and increase in number of cars on the roads.<br /><br />Moreover, the trend of increase in crude oil import maintained its uptrend. The import of crude oil surged 4.5% to 0.71 million tons, or 70% to $332 million, in the month.<br /><br />Samin said the increase in crude’s import may be seen due to expansion of Attock Refinery.<br /><br />In addition, the increase may also be linked with restoration of operations at the country’s single largest oil refinery Byco Petroleum Limited in August 2017.<br /><br />The 120,000-barrel-per-day refinery had to suspend its operation after catching fire years ago.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-31249262948938475962018-07-15T07:36:04.481-07:002018-07-15T07:36:04.481-07:00#Pakistan domestic #cement consumption grows 13.8%...#Pakistan domestic #cement consumption grows 13.8% in fiscal 2017-18, reaches 41 million tons. #CPEC #Housing #Infrastructure https://www.cemnet.com/News/story/164391/pakistan-cement-consumption-grows-13-8-in-fiscal-2017-18.html#.W0tanPkwtUo.twitter<br /><br />Pakistan cement industry ended fiscal 2017-18 on a jubilant note, by posting yearly growth of 13.84 per cent with domestic consumption increasing by 15.42 per cent and exports inching up by 1.77 per cent. This is the first time in nine years that cement exports have registered a growth.<br /><br />According to data released by All Pakistan Cement Manufacturers' Association (APCMA), during the fiscal year 2017-18, domestic consumption stood at 41.147Mt, an increase of 15.42 per cent from 35.651Mt in 2016-17. However, exports grew by only 1.77 per cent from 4.664Mt in 2016-17 to 4.746Mt during 2017-18.<br /><br />In the month of June 2018 alone, the total cement dispatches were 2.979Mt. Out of this, local dispatches in the north were 2.158Mt against 1.897Mt in June 2017 reflecting growth of 13.77 per cent. Cement dispatches in the south amounted to 0.423Mt against 0.485Mt in June 2017, reflecting negative growth of 12.79 per cent. The exports from grinding facilities located in the north amounted to 0.183Mt against 0.223Mt in June 2017 and from the south was 0.215Mt against 0.122Mt in June 2017.<br /><br />The industry dispatched 45.893Mt of cement in 2017-18 against 40.315Mt dispatched in 2016-17. This is the highest ever growth posted by the industry in its history. In fact, the past five years have been positive for the cement industry of Pakistan as annual dispatches increased by 12.46Mt from 33.43Mt in 2012-13 to 45.89Mt in 2017-18. The year 2017-18 has witnessed particularly buoyant times as dispatches grew by 5.5Mt.<br /><br />The industry increased its production capacity by 6.58 per cent during 2017-18 and its capacity utilisation stood at 92.82 per cent, the highest since 1992-93 when its total production capacity was only 8.89Mt compared with 49.44Mt in 2017-18.<br /><br />A spokesman for the APCMA said that the reinvigorated export activity is a welcome sign for the industry and that the decline in rupee value against the dollar is finally restoring lost competitiveness of the cement sector in the global markets. However, the APCMA said that rising input costs, especially coal and fuel prices, are hurting the local industry.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-24736265891833164042018-05-16T20:58:34.269-07:002018-05-16T20:58:34.269-07:00Pakistan’s largest refinery project contract award...Pakistan’s largest refinery project contract awarded to TechnipFMC<br /><br />https://profit.pakistantoday.com.pk/2018/05/16/pakistans-largest-refinery-project-contract-awarded-to-technipfmc/<br /><br />Pak-Arab Refinery Ltd (PARCO) has announced to award TechnipFMC the project management consultancy (PMC) services contract to carry out the management of pre-EPC activities for a grass root, fully integrated and deep conversion refinery to be constructed at Hub near Karachi, Pakistan.<br /><br />The project will be managed and operated by a wholly-owned subsidiary, PARCO Coastal Refinery Limited (PCRL). When completed, the facilities will comprise a modern and deep conversion refinery with a capacity of 250,000 barrels per day, supported by associated marine loading facilities. It will be Pakistan’s largest refinery and serve the rapidly growing domestic markets for refined products.<br /><br />The agreement was signed on May 16, 2018, by PCRL Chief Executive Officer Tariq Rizavi and TechnipFMC Senior Vice President – Project Management Consultancy Riccardo Moizo. Secretary Petroleum Division Sikandar Sultan Raja and PCRL chairman said, “Given the rapidly increasing energy and fuel demand of Pakistan, this project is of great importance to improve the fuel supply situation and will support the continued economic growth of the country.”<br /><br />“This multi-billion dollar joint-venture project will further strengthen the relationship between our two brotherly countries. We believe, as the largest industrial project in Pakistan, it will deliver significant value for all stakeholders and provide many socio-economic benefits for the country,” said Mubadala Investment Company Executive Director Refining and Petrochemicals and PCRL Vice Chairman Khalifa Al Suwaidi.<br /><br /><br /> <br />“We understand the strategic importance of the long-term investment that PARCO is undertaking and are proud to be part of this project, which will help meet the fuel requirements of the country and contribute to the growth of PARCO and Pakistan”, said Riccardo Moizo.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-63910397748700035162018-03-03T19:59:02.209-08:002018-03-03T19:59:02.209-08:00THE EXPRESS TRIBUNE > BUSINESS
Memon inaugurate...THE EXPRESS TRIBUNE > BUSINESS<br />Memon inaugurates Aisha Steel Mills’ expansion project<br />By Our CorrespondentPublished: December 31, 2017<br /><br />https://tribune.com.pk/story/1597176/2-memon-inaugurates-aisha-steel-mills-expansion-project/<br /><br />Sindh Board of Investment (SBI) Chairperson Naheed Memon presided over a ribbon-cutting ceremony on Saturday to mark the beginning of construction on Aisha Steel Mills’ (ASM) expansion plans.<br /><br />ASM, an Arif Habib Group company, has laid out plans to expand its capacity to a total of 700,000 tons per annum from its current capacity of 220,000 tons.<br /><br />Addressing the ceremony, Memon said, “Initiation of expansion of Aisha Steel Mills reflects the confidence investors have in Sindh and Pakistan, strengthening our resolve to continue on this path of progress. “We are seeing expansion and new projects in almost all areas of manufacturing in Sindh,” the chairperson added, in a statement released by Arif Habib Corp.<br /><br />She said that the board is committed to facilitate industrial investment in Sindh, which has the best infrastructure for setting up industries.<br /><br />Also speaking on the occasion, ASM CEO Dr Munir said, “Our product mix, subsequent to the completion of expansion, will include 450,000 tons of Cold Rolled Coils (CRC) and 250,000 tons galvanised coils.”<br /><br />He said, “The project is progressing on schedule and we are targeting phase-wise production to commence from the second quarter of the next financial year.”<br /><br />On completion of expansion, ASM is expected to contribute over Rs10 billion to the revenues of the government.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-64954358932869737632017-12-06T19:09:17.013-08:002017-12-06T19:09:17.013-08:00'Spectacular' drop in renewable energy cos...'Spectacular' drop in renewable energy costs leads to record global boost<br />Falling solar and wind prices have led to new power deals across the world despite investment in renewables falling<br /><br />https://www.theguardian.com/environment/2017/jun/06/spectacular-drop-in-renewable-energy-costs-leads-to-record-global-boost<br /><br />Renewable energy capacity around the world was boosted by a record amount in 2016 and delivered at a markedly lower cost, according to new global data – although the total financial investment in renewables actually fell.<br /><br />The greater “bang-for-buck” resulted from plummeting prices for solar and wind power and led to new power deals in countries including Denmark, Egypt, India, Mexico and the United Arab Emirates all being priced well below fossil fuel or nuclear options.<br /><br />Analysts warned that the US’s withdrawal from the Paris climate change agreement, announced last week by Donald Trump, risked the US being left behind in the fast-moving transition to a low-carbon economy. But they also warned that the green transition was still not happening fast enough to avoid the worst impacts of global warming, especially in the transport and heating sectors.<br /><br />The new renewable energy capacity installed worldwide in 2016 was 161GW, a 10% rise on 2015 and a new record, according to REN21, a network of public and private sector groups covering 155 nations and 96% of the world’s population.<br /><br />The new record capacity cost $242bn, a 23% reduction in investment compared to 2015, and renewables investment remained larger than for all fossil fuels. Subsidies for green energy, however, are still much lower than those for coal, oil and gas.<br /><br />New solar power provided the biggest boost – half of all new capacity – followed by wind power at a third and hydropower at 15%. It is the first year that the new solar capacity added has been greater than any other electricity-producing technology.<br /><br />“A global energy transition [is] well under way, with record new additions of installed renewable energy capacity, rapidly falling costs and the decoupling of economic growth and energy-related carbon dioxide emissions for the third year running,” said Arthouros Zervos, chair of REN21.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-11572850385056275402017-10-30T10:46:46.647-07:002017-10-30T10:46:46.647-07:00Banks’ growing romance with car industry
https://...Banks’ growing romance with car industry<br /><br />https://www.dawn.com/news/1365688/banks-growing-romance-with-car-industry<br /><br />Car financing in particular and consumer loans in general saw signs of resurging after a gap of several years for the first time in 2013-14 on the back of economic growth.<br /><br />In July-September this year, banks’ auto loans almost doubled to Rs11.1 billion from Rs5.7bn in July-September last year.<br /><br />This is just a continuation of the huge 60 per cent rise recorded in auto loans last fiscal year ending June, according to the latest data of the State Bank of Pakistan (SBP). In 2016-17, banks’ auto financing totalled Rs70.5bn against that of Rs44bn in the preceding fiscal year.<br /><br />According to the Pakistan Automotive Manufacturers Association, auto sales also recorded a matching growth of 60pc, as 44,372 vehicles were sold during July-September 2017 against 27,630 in the same period of 2016.<br /><br />Senior bankers say an increase in auto loans (and also in overall consumer finance) in the first quarter of the fiscal year is always good as during this period net credit to private sector businesses remains negative due to usual heavy credit retirement.<br /><br />‘The acceleration in car loans is demand-driven and bulk of the demand is coming from people employing vehicles in Uber and Careem e-hailing services,’ says the head of consumer banking<br /><br />During the first quarter of this year, “it’s the volume of incremental auto loans (Rs11.1bn) that is noteworthy”, says the head of a local bank.<br /><br />Between July and September this year, net stock of loans to private sector businesses saw a decline of Rs2bn, latest SBP stats show.<br /><br />“The acceleration in car loans is demand-driven and bulk of the demand is coming from people employing vehicles in Uber and Careem e-hailing services,” says the head of consumer banking at a local bank.<br /><br />Increasing car deliveries to people associated with Uber and Careem are helping the creation of full-time jobs for some and part-time opportunities for others. That is good for the economy.<br /><br />What is bad, though, is that in their quest for meeting a demand rush, car assemblers are delaying deliveries.<br /><br />Or this is what bankers tell their customers after sanctioning auto loans at lightning speed and then failing in ensuring vehicle delivery from designated dealers for weeks, and in some cases for months. Failure in timely delivery, regardless of who is responsible, reflects poorly on the auto industry’s reputation.<br /><br />As auto financing fever runs high, banks, in competitive frenzy, are over-committing to car loan seekers. After approving auto loans, many bank branches debit down-payments from customers’ accounts and also make these accounts operational, thus requiring borrowers to start paying loan instalments. But they leave the customers at the mercy of car dealers instead of ensuring car deliveries within the promised timeline.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-79468885605423191912017-10-18T07:21:00.852-07:002017-10-18T07:21:00.852-07:00SIKA EXPANDS IN PAKISTAN WITH NEW PRODUCTION FACIL...SIKA EXPANDS IN PAKISTAN WITH NEW PRODUCTION FACILITY<br /><br />https://globenewswire.com/news-release/2017/10/18/1149038/0/en/SIKA-EXPANDS-IN-PAKISTAN-WITH-NEW-PRODUCTION-FACILITY.html<br /><br />With the commissioning of a new factory for mortar products and concrete admixtures, Sika has expanded its manufacturing capacity in Pakistan and is responding to the country's construction boom. Demand in the infrastructure and residential construction segments in particular is enormous. With its rapidly growing population of over 200 million, Pakistan is one of the world's most populous countries.<br /><br />The new factory for concrete admixtures and mortars is located in Pakistan's second biggest city - Lahore, in the north of the country and one of the world's largest metropolitan regions. With the new investments and the simultaneous relocation of an existing mortar manufacturing facility from Lahore to Karachi in the south of the country, Sika is creating the basis for future growth in a booming market. It is estimated that the construction industry in Pakistan will grow on average by 12% a year between now and 2020.<br /><br />Ivo Schädler, Regional Manager EMEA: "Our expansion of local production capacities is in response to existing bottlenecks. The new facility in the north and the expansion of our location in the south will enable us to continue to grow significantly faster than the construction market in Pakistan, and hence to strengthen our competitive position thanks to local production. Our focus in Pakistan is on the Concrete, Refurbishment and Flooring target markets, in which we want to continue driving forward our business activities."<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52596414766816829792017-10-07T17:28:01.351-07:002017-10-07T17:28:01.351-07:00Trafigura prompts Pakistan’s fuel retail monopoly ...Trafigura prompts Pakistan’s fuel retail monopoly to revamp<br /><br />http://www.gulf-times.com/story/566568/Trafigura-prompts-Pakistan-s-fuel-retail-monopoly-<br /><br />The government-owned Pakistan State Oil, which caters to almost half of the nation’s fuel needs, is looking to open 100 new convenience stores at some of its 3,500 fuel pumps after a successful trial programme two months ago, according to its chief executive officer Sheikh Imran Ul Haque.<br />Pakistan’s largest fuel retailer has a plan to entice motorists as its dominance is challenged by foreign competition: sell sugary drinks and snacks along with gasoline.<br />The government-owned Pakistan State Oil Ltd, which caters to almost half of the nation’s fuel needs, is looking to open 100 new convenience stores at some of its 3,500 fuel pumps after a successful trial programme two months ago, according to chief executive officer Sheikh Imran Ul Haque. PSO also wants to add as many as 70 new fuel outlets this year as companies, including Trafigura’s Puma Energy BV, enter South Asia’s second-largest economy.<br />“The whole game is bringing that customer in and emptying his pockets,” Haque said in an interview at the company’s headquarters in the port city of Karachi. The strategy is aimed at increasing the number of PSO customers from the current three million a day, he said.<br />Foreign entrants have been lured to Pakistan as a growing economy and a rising middle class creates demand for goods and services. Gasoline sales more than tripled to over 6.7mn tonnes in the fiscal year ended June since 2010, according to Shajar Capital Pakistan Pvt. With disposable income rising, the nation of more than 200mn people is also the world’s fastest growing retail market.<br />Trafigura’s Puma Energy plans to invest in Pakistani fuel retailer Admore Gas Pvt, while other local companies, such as Hi-Tech Lubricants Ltd and WAK Group, are planning to build gas stations for the first time. Puma, should the deal go through, will follow Vitol SA, the world’s biggest independent oil trader, which acquired a stake in Karachi-based Hascol Petroleum Ltd in 2015 and supplies most of its fuel. Vitol exercised an option to increase its stake in Hascol by a further 10% to 25% in July.<br />Shares rose as much as 1.6% to Rs435.99 in Karachi. The benchmark Karachi Stock Exchange was 1% higher as of 10am local time.<br />“We believe they are at inflection right now and hopefully going to grab market share from here,” said Suleman Rafiq Maniya, research head at Shajar Capital. “Hascol and the rest were taking the share basically the last three to four years.”<br />Haque, who joined PSO two years ago, is attempting to push the bureaucratic state-owned company into the future. The company expects to spend 40bn rupees ($379mn) in the next three years to add storage tanks, upgrade 200 of its oldest fuel stations – targeting those in tourist spots – while building about 70 new stations each year. In a first for the state-owned company, Haque also temporarily slashed prices to lure customers during the holy Islamic month of Ramadan this year.<br />Haque said PSO is now having to evaluate its fundamental sales options since half come from supplying furnace oil to power plants – a line of business that will be phased out by the end of 2019. Those plants will be replaced by gas- and coal-fired plants as Pakistan attempts to end crippling power shortages that have blighted industry and residents for decades, Prime Minister Shahid Khaqan Abbasi said in an August interview.<br />Haque expects industry furnace oil sales to decline by 0.5mn tonnes this fiscal year, but believes it will take about five-to-six years for the plants to go offline.<br />The company is also looking to get into refining in a nation that spent a fifth of its total import bill in the past fiscal year on petroleum products including petrol and diesel. Pakistan’s regulator in March approved the retailer’s plan to increase its stake up to 49% in Pakistan Refinery Ltd. The company will look at another joint venture refinery with a capacity of 250,000 barrels a day in five-to-seven years, said Haque.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-62173583341130020382017-09-11T11:12:58.282-07:002017-09-11T11:12:58.282-07:00#Pakistan #cement capacity reaches 47 million tons...#Pakistan #cement capacity reaches 47 million tons. Utilization at 87% with shipments at 41 million tons. #CPEC<br /><br />http://nation.com.pk/business/11-Sep-2017/cement-industry-s-despatch-capacity-rises-to-47m-tons<br /><br />The capacity utilisation of the cement industry was high at 86.46 percent in July 2017, while the annual cement despatch capacity of the industry has increased to 46.94 million tons.<br /><br />Local dispatches from units based in northern region of the country were 2.423 million tons while their export despatches were 0.338 million tons in July 2017 as opposed to 1.516 million tons local and 0.306 million tons export despatches in July 2016. The turnaround after a dismal performance in June 2017 took the industry by surprise and the sharp increase in despatches in July 2017 revived hopes for the sector. The despatches were achieved despite political turmoil in the country and unprecedented rains throughout the country which depicts the maturity of the construction sector of the country. South based mills also recorded a growth in local despatches which increased from 0.352 million tons in July 2016 to 0.483 million tons in July 2017; whereas, exports took a hit going down to 0.138 million tons from 0.159 million tons in July 2016. A spokesman of All Pakistan Cement Manufacturers’ Association said that the despatch figures for July are most encouraging. However, he said that this does not mean that the economic planners ignore the genuine difficulties faced by this sector.<br /><br /> He said the industry is performing in stiff regulatory environment and is only surviving because it has upgraded its technology that has provided it the strength to take any challenge head on.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-34612068746755492572017-08-16T08:21:41.302-07:002017-08-16T08:21:41.302-07:00#Pakistan #Oil Ports Face Facilities Congestion As...#Pakistan #Oil Ports Face Facilities Congestion As Imports Soar<br /><br />https://www.porttechnology.org/news/pakistan_ports_face_traffic_crisis<br /><br />Pakistan’s oil importing facilities at Karachi Port and Port Qasim currently face congestion because of port constraints as well as traffic on roads and at sea, according to Dawn.<br /><br />The situation was created by inefficiencies in port handling and trouble with onward transit to the north, according to an unnamed government official.<br /><br />Constraints included handling traffic increases, limited storage at ports, inability to use an oil pier, and long oil testing and sampling times.<br /><br />Pakistan's Government is discussing building a new terminal at Port Qasim, on receiving a report advising on the congestion issue.<br /><br />The report uncovered a need for added tank storage at Keamari.<br /><br />A ban on new tank build at Keamari as well as land availability for this magnitude of storage development is a major limitation for the port, it found.<br /><br />Oil handling facilities at the Port Qasim are expected to reach capacity at 2019-20 and government should plan to build a new terminal.<br /><br />Over six months, ships collectively had faced added waiting time amounting to 274 days at the outer anchorage and 63 days on berth.<br /><br />Already Ministers from Malaysia and Pakistan have agreed to form a joint working group on maritime cooperation that could develop Pakistani port terminals for transhipment.<br /><br />Port Quasim is expanding, however. Recently port Qasim in Pakistan inaugurated its first state-of-the-art coal, clinker and cement bulk terminal.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-47934593969543781622017-08-03T07:39:11.137-07:002017-08-03T07:39:11.137-07:00(Pakistan Cement) Industry data on Wednesday showe...(Pakistan Cement) Industry data on Wednesday showed that local cement sales rose 10.4 percent to 36.4 million tonnes during the last fiscal year, while exports sharply fell 22.8 percent to 4.5 million tonnes. <br /><br />https://www.thenews.com.pk/print/214600-Cement-sales-up-54pc-to-409MT<br /><br />Cement industry witnessed a 5.4 percent surge to 40.9 million tonnes in its sales during the last fiscal year of 2016/17 as local construction sector boomed to have broken its annual growth record of the past five years. <br /><br /><br />Analyst Nabeel Khursheed at Topline Research attributed the double digit growth in local sales for the second year in a row to ongoing residential construction projects and infrastructure development under China-Pakistan Economic Corridor (CPEC).<br /><br />Khursheed said the government released Rs715 billion under public sector development programme for FY17, 90 percent of the total allocation, “which bodes well for the construction sector.”<br /><br />Industry’s annual capacity utilisation reached 89 percent, a rate that was last achieved in the fiscal year of 2005/06. The capacity utilisation stood at 85 percent in 2015/16.<br /><br />Construction sector reported 9.1 percent growth in FY17, while annual growth for the last five years (FY12-16) growth averaged at 6.3 percent. Credit offtake in construction sector was up 40 percent to Rs129 billion in the last fiscal year over the previous year.<br /><br />Stock analyst said exports fell short of expectation due to manufacturers’ increased focus to local market, tapering export to Afghanistan, which consumes 40 percent of Pakistan’s cement outflows, and competition from the Iranian substitute.<br /><br />Sales from cement factories located in north region increased 10 percent in FY17 to 29.817 million tonnes, while cement makers based in south recorded 11 percent growth in sales to 6.594 million tonnes. <br /><br />Exports of north as well south cement mills decreased 16 percent to 2.889 million tonnes and 33 percent to 1.643 million tonnes, respectively. <br /><br />In June, cement sales remained flat at 3.354 million tonnes as compared to the same month a year earlier, while export fell 10 percent over May. <br /><br />“The decline in monthly sales figures is due to slowdown in construction activities during Ramazan coupled with the prolonged Eid holidays,” said Fatima Mohsin Ali, an analyst at Taurus Securities Ltd.<br /><br />Generally, growing local demand gave a leeway to cement markers to increase prices and avert the pressure built due to high coal prices previously. <br /><br />“Players were able to pass on the impact of federal excise duty (FED) by increasing prices by additional Rs15-20/bag thanks to robust demand outlook,” Khursheed said. “We believe if demand remains strong, pricing arrangement will continue.”<br /><br />Government raised FED on cement to Rs1.25/kg from Re1/kg in the budget announcement for the current fiscal year of 2017/18.<br /><br />International coal prices averaged $76/tonne as compared to its peak of $91/ton in November 2016.<br /><br />Market researchers said cement mills based in north region factored in FED impact by pushing up prices by Rs15 to 20/bag to Rs545 to 575/bag. Prices in southern region are still hovering between Rs560 and 585/bag. <br /><br />Ali expected an upward revision in cement prices by southern players too in the next one week, “settling in the range of Rs575 to 600/bag.”<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-28779071595799358802017-05-16T08:11:12.208-07:002017-05-16T08:11:12.208-07:00#China building boom to churn out #Pakistan's ...#China building boom to churn out #Pakistan's largest steel IPO with #steel output growing 23% in 2016. https://www.bloomberg.com/news/articles/2017-05-15/china-building-boom-to-churn-out-pakistan-s-largest-steel-ipo … via @markets<br /><br />Agha Steel Industries Ltd. is planning Pakistan’s biggest-ever private sector initial share sale this year to help boost output as China funds more than $55 billion in infrastructure projects across the nation and a buoyant stock market spurs investor demand.<br /><br />The Karachi-based company plans to raise as much as 10 billion rupees ($95 million) selling a 25 percent stake, Executive Director Hussain Agha said in an interview. The sale will be the largest since the 12-billion rupees government stake sale of Habib Bank Ltd. in 2007, the country’s largest IPO yet.<br /><br />Steel and cement makers in Pakistan are expanding to meet demand as the “One Belt, One Road” trade route financed by China spurs construction. The nation’s economy has grown at about 5 percent annually since 2013, encouraging Agha’s peers including International Steels Ltd. and Aisha Steel Mills Ltd. to lift production.<br /><br />“You need roads, sky rises and housing,” said Agha. “Pakistan’s steel industry is in an infancy stage and growing at a massive pace -- the whole environment will change.”<br /><br />Read more: Chinese Largesse Lures Countries to Its Belt and Road Initiative<br /><br />The company will use the funds for $50 million expansion that will triple output to 500,000 metric tons within two years. Production will then double to a million tons by 2023, he said. Habib Bank has been appointed financial adviser while Arif Habib Ltd. and BMA Capital Ltd. were picked as book runners for transaction.<br /><br />Pakistan’s steel output grew 23 percent to 3.6 million tons in 2016, the biggest gain among 40 nations, according to the World Steel Association. Agha Steel expects construction-grade steel, such as rebars and wire rods, to grow as much as 12 percent annually for the next three years.<br /><br />The construction sector expanded 13 percent in year ended June 2016, more than twice the pace in the previous 12 months, according to State Bank of Pakistan’s annual report. Rapid urbanization and rising income levels has left the nation with an annual shortfall of 500,000 homes, according to real-estate developer Arif Habib.<br /><br />“Real-estate is the main engine for this growth, it has really picked up,” said Ayub Khuhro, chief investment officer of Karachi-based Faysal Asset Management Ltd., which has about 8 billion rupees in stocks and bonds. “The government is also willing to protect companies with anti-dumping measures.”Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-77873849951438612622017-04-11T10:39:45.250-07:002017-04-11T10:39:45.250-07:00#India's fuel consumption grows at slower rate...#India's fuel consumption grows at slower rate of 5% in FY17. #energy #oil<br /><br />http://www.business-standard.com/article/markets/india-s-fuel-consumption-grows-at-slower-rate-of-5-in-fy17-117041000750_1.html<br /><br /><br />India's fuel consumption grew at a slower rate of five per cent in the previous financial year ended on March 31 as diesel demand slowed.<br /><br />The world's third largest oil consumer saw demand for fuel and petroleum products rise to 194.2 million tonne in 2016-17, up from 184.6 mt in the previous financial year, according to the data from Petroleum Planning and Analysis Cell (PPAC) of the oil ministry.<br /><br />The demand growth was slower than 11.5 per cent recorded in 2015-16 when consumption had jumped to 184.67 mt from 165.5 mt in the previous year.<br /><br />Demand for diesel, the most consumed fuel in the country, grew by 1.8 per cent to 74.6 mt in 2016-17. Diesel consumption has soared 7.5 per cent in 2015-16.<br /><br />Last financial year saw LPG sales move up by 9.8 per cent to 19.6 mt as government released two crore new connections for the poor.<br /><br />Petrol consumption was up 8.8 per cent to 21.84 mt on the back of rise in two-wheeler and car sales. Jet fuel sales were up 12 per cent at 6.2 mt.<br /><br />Kerosene demand however declined by a steep 21 per cent to 6.8 mt as government restricted supply of subsidised cooking fuel only to the identified needy. Also, LPG replaced it as a cooking fuel in many households.<br /><br />During March, fuel demand fell 0.6 per cent to 17.35 mt.<br /><br />Petrol sales were up 2.9 per cent at 2.1 mt but diesel consumption showed a marginal 0.3 per cent rise at 6.8 mt. LPG demand was too was up only 1.9 per cent while kerosene sales fell by a massive 26 per cent to 414,000 tonne.<br /><br />While naphtha demand surged 1.8 per cent to 1.14 mt, sales of bitumen, used for making roads, was 12.2 per cent lower. Fuel oil use edged lower 23.4 per cent to 567,000 tonne in MarRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41798888446384859902017-04-04T20:00:48.967-07:002017-04-04T20:00:48.967-07:00#Pakistan: domestic demand for cement up 6.7% in F...#Pakistan: domestic demand for cement up 6.7% in Feb 2017. First 8-month FY17 domestic cement consumption up 9.12% http://www.cemnet.com//News/story/161268/pakistan-domestic-demand-up-in-february.html#.WORc6l6x6fE.twitter …<br />Total cement sales in Pakistan in February 2017 were 3.435Mt, down by 0.41 per cent from 3.449Mt during the corresponding month of last year, according to the All Pakistan Cement Manufacturers Association (APCMA). <br /><br />Domestic cement sales reached 3.181Mt, up 6.7 per cent YoY. While domestic sales rebounded in February, exports saw a 45 per cent drop. Exports reached 0.254Mt, representing a 45.7 per cent fall when compared with February 2016. <br /><br />On cumulative basis, during the first eight months of the fiscal year the country dispatched 26.339Mt cement, showing an overall growth of 6.4 per cent over the corresponding period of last fiscal. During this period the domestic consumption increased by 9.12 per cent, but exports declined by 8.54 percent. <br /> <br />APCMA once again urged the government to take effective steps to stop the penetration of Iranian cement in Pakistani markets on the strength of significant under-invoicing and misdeclaration. A proper vigilance and accountability system needs to be put in place to stop cement smuggling into the country. Government should also increase import duty for import of clinker and cement to protect the local industry, said APCMA.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-31755358441611433172017-03-29T03:55:18.483-07:002017-03-29T03:55:18.483-07:00Pakistan Zinda bad
Feeling proud.
Finally the best...Pakistan Zinda bad<br />Feeling proud.<br />Finally the best time is coming that we were waiting to many decades.i am 100% sure investment volume will increase more then 150 billion US dollars.and Growth rate will increase up to 8 % in 3 years.Anonymoushttps://www.blogger.com/profile/10899839697185801290noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-59241417551863084242017-03-26T10:14:35.522-07:002017-03-26T10:14:35.522-07:00#Pakistan Iron/Steel mfg output up 17.46%, electro...#Pakistan Iron/Steel mfg output up 17.46%, electronics up 13.5%, pharma up 7.5%, autos up 6.9% in 7 months of FY17 https://www.thenews.com.pk/print/192907-LSM-posts-348-percent-growth-in-July-January …<br /><br />In January, LSM output edged up 1.08 percent over the same month last year and rose 2.78 percent as compared to December 2016. Iron and steel production was also the highest (28.02pc) among all the main industries in January, closely followed by engineering products (27.69pc). <br /><br />Engineering sector’s output, however, slid 0.54 percent in July-January, while textile sector – having the largest weight in the LSM basket – registered the lowest 0.29 percent growth during the period. Textile output marginally increased 1.23 percent in January. <br /><br />The PBS data showed that electronics sector was the second after iron and steel in terms of growth in the seven months with 13.49 percent, followed by non-metallic products (7.78pc), pharmaceutical (7.57pc), automobiles (6.91pc), paper and paper board (6.61pc), food, beverages and tobacco (4.79pc) and rubber products (0.38pc). <br /><br />The sectors, which posted decline in production in July-January FY17, included wood products (95.82pc), followed by leather products (17.54pc), chemicals (2.13pc) and coke and petroleum (0.67pc).<br /><br />The LSM’s quantum indices are based on data from Oil Companies Advisory Committee (OCAC), ministry of industries and provincial bureau of statistics. Ministry of industries, which logs production stats of 36 items, recorded 3.78 percent increase during the July-January period of 2016/17. <br /><br />The ministry recorded the highest production growth in tractors’ output. Total 25,983 were manufactured during the period, up 79.42 percent over the corresponding period last year. The second significant percentage growth (54.93pc) was recorded in production of trucks, followed by billets/ingots (29.65pc), buses (26.19pc), sugar (22.25pc) and motorcycles (20.09pc). Mills produced 2.893 million tonnes of sugars in July-January FY17 as compared to 2.366 million tonnes in the corresponding period of FY16. <br /><br />Provincial bureau of statistics, which measures outputs of 65 products across the country, registered 3.48 percent rise in the period under review. Production of deep freezers jumped 52.64 percent to 53,509 units, followed by electric fans (27.94pc), refrigerators (22.59pc), woolen and carpet yarn (18.91pc), electric bulbs (16.37pc) and electric meters (15.71pc).<br /><br />OCAC, which calculates production of 11 petroleum products, registered a marginal 0.29 percent increase in outputs. Production of liquefied petroleum gas rose 10.49 percent to 276.687 million litres. Motor spirits’ output soared 8.66 percent to 1.438 billion litres. Jute batching oil production increased 5.68 percent, followed by jet fuel oil (3.83pc) and high speed diesel (1.67pc). <br /><br />Diesel oil production, however, fell 44.51 percent in July-January FY17 over the corresponding period of FY16, followed by solvant naptha (18.78pc), kerosene oil (13.27pc) and lubricating oil (2.49pc).<br /><br />https://www.thenews.com.pk/print/192907-LSM-posts-348-percent-growth-in-July-JanuaryRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-56675324807965074492017-03-14T08:39:56.710-07:002017-03-14T08:39:56.710-07:00#Pakistan's #oil demand jumps 13% on low price...#Pakistan's #oil demand jumps 13% on low prices, growing #economy - Oil | Platts News Article & Story. #energy http://www.platts.com/latest-news/oil/singapore/pakistans-oil-demand-jumps-13-on-low-prices-economic-27790199 …<br /><br />Pakistan's oil consumption from July 2016 to February 2017 jumped 13% year on year, owing to lower petroleum product prices and higher economic activity, driven by GDP growth, foreign investment and greater political stability. <br /><br />Pakistan's economy expanded 4.2% in 2016, foreign investment has continued to grow -- attracted by the multi-billion dollar China-Pakistan Economic Corridor project -- and improvements in the country's security front, following the government's efforts to combat terrorism, have also led to economic gains and additional investment. <br /><br />Oil sales during the first eight months of the current fiscal year rose 13% year on year to 16.67 million mt, according to data from oil marketing companies and the Pakistan's Oil Companies Advisory Committee. Pakistan's fiscal year runs from July to June. <br /><br />Motor gasoline sales increased to 4.36 million mt, up 20% year on year, while demand for high speed diesel increased 15% to 5.46 million mt, the data showed. <br /><br />"Sales of both products moved north due to significantly lower prices and lower availability of compressed natural gas in the transport sector," said Muhammad Saad Ali, research analyst with Karachi-based brokerage Inter Market Securities. <br /><br />The price of Pakistan's motor gasoline peaked in October 2013 at Rupees 114 ($1.1)/liter compared with Rupees 73/liter currently, while high speed diesel was at Rupees 117/liter versus the current price of Rupees 82/liter. <br /><br />Sales of furnace oil also increased to 6.21 million mt from July 2016 to February 2017, up 10% year on year, driven by higher consumption by the power generation sector amid lower water levels and weak hydroelectric production. <br /><br />CONSUMPTION OUTLOOK <br /><br />Looking ahead, Pakistan's oil products demand is expected to see substantial growth over the next three years because of rising per capita income, higher automotive sales and growing foreign investment, according to data from energy experts and analysts. <br /><br />"We believe that oil marketing companies' sales will increase in the backdrop of active transportation activity owing to projects near the China-Pakistan Economic Corridor, rising auto-financing loans and higher per capita income," said Ayesha Fayyaz, research analyst at Karachi-based brokerage Shajar Capital Ltd. <br /><br />Gasoline demand is expected to increase to 10.9 million mt in the fiscal year ended June 30, 2020, from 5.8 million mt in the year ended June 2016. <br /><br />The forecast is well above earlier estimates made by Pakistan's Oil Companies Advisory Committee, expecting gasoline demand to reach 8.78 million mt by 2019-20. <br /><br />"Motor gasoline and high speed diesel sales will continue to be driven by improving macroeconomic factors, and rising sales of cars, bikes and rickshaws," analyst Umair Naseer of Karachi-based Topline Securities said. <br /><br />"Under CPEC, there will be construction of road infrastructure and industrial units. This, we believe, will lead to an increase in transportation activity and higher gasoline and diesel demand," Naseer added. <br /><br />The outlook seems less promising for furnace oil, Fayyaz said. <br /><br />"We are conservative about the volumetric growth in furnace oil due to the expansion of the LNG and hydroelectric power sectors," she said. Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-58998157055718671502017-02-13T10:13:58.036-08:002017-02-13T10:13:58.036-08:00An analyst said the new companies are joining the ...An analyst said the new companies are joining the sector due to significant surge in demand for petroleum products and relaxation of conditions to become an oil marketing company in the country. The Pakistan Bureau of Statistics (PBS) reported a 50% increase in the import of petroleum products in the six months when Ogra issued new oil storage construction licences.<br /><br />Pakistan has imported 11.76 million tons of refined and crude oil during July-December 2016 as compared with 7.82 million tons in the same period in 2015, according to the PBS.<br /><br />Imported oil meets around 75% of the country’s demand, while the remaining is met through local production.<br /><br />A local brokerage house reported the other day that oil marketing companies sold a total of 15.17 million tons in the first seven months (July 2016 to January 2017) of the current fiscal year 2017 – a year-on-year growth of 17%.<br /><br />Moreover, in 2010, the then government exorbitantly relaxed the criteria for establishing a new oil marketing company. Accordingly, a new company in the making now may kick start its journey with minimum Rs100 million equity in hands and Rs500 million investment size.<br /><br />Ghaznavi said Ogra has issued marketing licences to four companies since July 2016. “They have met the basic criteria of establishing storage facilities. Now, they would start opening petrol pumps in the areas and provinces where they have constructed the storage infrastructure,” he said.<br /><br />https://tribune.com.pk/story/1321081/july-december-two-dozen-firms-jump-oil-marketing-bandwagon/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-8051900780787627342017-02-13T10:09:35.726-08:002017-02-13T10:09:35.726-08:00#India's #oil demand plunges the most in 13 ye...#India's #oil demand plunges the most in 13 years after #Modi's #demonetization https://www.bloomberg.com/news/articles/2017-02-13/india-s-oil-demand-plunges-most-in-13-years-amid-cash-crackdown … via @markets<br /><br />India’s monthly oil demand fell the most since May 2003 as the government’s crackdown on high-value currency notes continued to reverberate through the country’s $2 trillion economy.<br /><br />Fuel consumption fell 4.5 percent to 15.5 million tons in January from 16.2 million tons a year ago, the Oil Ministry’s Petroleum Planning and Analysis Cell said Friday. Diesel use, which accounts for about 40 percent of total fuel demand in India, dropped 7.8 percent to 5.8 million tons, the biggest decline since September. Gasoline consumption fell the most since June.<br />Expansion in the world’s fastest-growing major economy is under pressure after Prime Minister Narendra Modi in November withdrew high-value currency notes in a country where almost all consumer payments are in cash. Growth in gross domestic product may slow to 6.5 percent in the year through March from 7.9 percent the previous year, according to an Economic Survey presented by the finance minister’s advisers.<br /><br />“This decline in demand is due to demonetization,” according to Tushar Tarun Bansal, director at Ivy Global Energy. “I would expect this decline to be a one off and dissipate from February. This should result in a slower demand growth for diesel in the first quarter in 2017.”<br /><br />India imports more than 80 percent of its crude requirement and the International Energy Agency expects it to be the fastest-growing consumer through 2040. In most areas people are spending the same amount on fuel that they did before the money crackdown, although some rural areas and small businesses are still affected, according to Bansal.<br /><br />Petcoke consumption fell for the first time in more than a year, declining about 9.9 percent to 1.95 million tons. Gasoline consumption fell 0.6 percent to 1.8 million tons. Liquefied petroleum gas use expanded 16.4 percent to 2 million tons, while jet fuel demand increased 17.8 percent to 627,000 tons.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com