News Pulse (June 17, 2013) Defence budget rising as percentage of GDP (BR) Not only are country's allocations for defence inching up as a percentage of GDP, these are eating away a higher portion of current expenditure. According to budgetary estimates, Pakistan GDP for 2012-13 is around Rs 22,909 billion. It is projected to go up to Rs 26,001 billion in 2013-14. The expenditure on Defence Affairs and Services was budgeted at Rs 545.4 billion and the revised estimates for 2012-13 is said to be Rs 570.4 billion. For next financial year (2013-14) it has been estimated at Rs 627.2 billion. However, pensions paid to retired military personnel are not part of expenditure on Defence. Pensions to retired uniformed persons are more than three times the pension paid to civilian retirees. Cutting interest rate on credit: IPPs unlikely to entertain Dar's request (BR) Independent Power Producers (IPPs) are unlikely to entertain Finance Minister Ishaq Dar's request for reduction in interest rate on credit to less than Kibor plus two percent and increase in credit period for payment by Pepco from 45 to 60 days, well informed sources in Water and Power Ministry told Business Recorder. "It is impossible for the IPPs to review their contracts in the current circumstances. Who will bear the cost? IPP losses will go up," the sources added. PML-N budgetary measures to up urea bag price by Rs 50-75 (Nation) Following the budgetary measures to enhance tax collection the urea price is likely to jump by Rs50-75 to Rs 1720-1745 per bag from the start of next fiscal year on July 1, 2013, as the price increase in relationship to GST on retail price coupled with increase in its rate will be passed on to the end consumer by the manufacturers. Though tax increase will affect the cost maximum by Rs 7-10 but the mafia is inclined to loot the growers by raising the rate in the range of Rs 50-75 per bag on the plea of jump in levies. Industry sources said that GST has been imposed at retail fertilizer price level instead of ex-factory price level while, in line with other sectors, its rate has also been increased by 1%. They said that subsidy of Rs30 billion has been allocated for fertilizer import as against revised estimate of Rs10 billion in FY13. Coal power plant to generate 239m units: Nepra (Nation) The National Electric Power Regularity Authority (NEPRA) has issued Feasibility study report of first coal run power plant project which will produce 239 millions units of electricity. Feasibility report said that coal run power plant of 50-mega powers would be established in the area of Kalar Kahar. Project cost is Rs 780 millions and would be completed in 24 months.Mega power plant will be able to produce 239 millions units of electricity. Resultantly common man will pay Rs 9.65 per unit. Cement prices may go up by Rs35 per bag (Dawn) Cement prices are likely to go up by Rs30 to Rs35 for a 50kg bag after introduction of taxation measures in the federal budget. A cement maker attributed the possible increase in cement prices to enhancement of the GST from 16 to 17 per cent, and 2pc extra sales tax on non-registered buyers, which would make an initial impact of Rs10 per 50kg bag. A majority of the buyers from the cement industry are unregistered. He said that consumers may witness new prices from next week as Falcon cement price may rise to Rs485-490 from Rs455-460 while Lucky cement would cost Rs475-480 at retail level as compared to Rs445-450. Ambitious agriculture growth target set (Dawn) Despite being unable to meet the target in the outgoing fiscal year, the government has projected a growth rate of 3.7 per cent for agriculture sector in 2013-14 largely to be achieved by increase in major crops. The achievement of the target was linked with sufficient supply of water and energy, suggested data compiled in the Annual Plan 2013-14. The target for wheat production for 2013-14 has been fixed at 25 million tonnes. Despite shale reserves, uncertainty remains (Dawn) Pakistan is among the top 10 countries with shale oil reserves, a study put out by the Energy Information Agency (EIA), the statistical arm of the US Department of Energy reported last week. The current global shale resource base is vast enough to cover more than a decade of global oil consumption, the report underlined. The estimated global reserves of oil in shale rock deposits will boost total world crude resources by 11 per cent, the report said, offering a preliminary glimpse of the hydrocarbons that remain untapped across the world. For further details contact: Hassan Amin [email protected] +9221-111-226-100 – Ext 702 Regards, Research Department Summit Capital (Pvt.) Limited Phone: +9221-111-226-100 Direct: 92-21-32467964 Fax: 92-21-32467959 Email: [email protected]
Posted on: Mon, 17 Jun 2013 05:16:26 +0000
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