Day: October 1, 2023

Interim Finance Minister Dr Shamshad Akhtar has extended her unwavering support to Securities and Exchange Commission of Pakistan’s (SECP) initiatives aimed at establishing financial institutions backed by private funds to serve as a catalyst for economic revival.

Chairing the meeting held by SECP to discuss proposals for establishing financial institutions backed by private funds to serve as a catalyst for economic revival, she asked the fiscal and regulatory sides, including the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), and the SECP, to extend complete support to the initiatives of seeking investments from local financial institutions, institutional investors, government DFIs, and corporate entities with the potential to attract foreign capital.

The minister suggested making efforts, particularly to attract climate and ESG-focused international institutional investors. She stressed the urgency of implementing these initiatives to signal Pakistan’s readiness for business and economic growth to the global market and foreign investors.

The meeting brought together leaders from commercial banks and development finance institutions (DFIs). SECP Chairman Akif Saeed welcomed participants at the meeting, while Commissioner Mujtaba Ahmad Lodhi discussed SECP’s commitment to creating an enabling regulatory environment and its active engagement with banks and DFIs.

Habib Bank Limited, representing a consortium of banks, proposed the establishment of a Climate Resilience (CR) Fund under the SECP Private Fund Regulations, 2015. Khalida Habib, Executive Director Specialized Companies Division at SECP, on behalf of the DFIs, elaborated on the proposal for setting up a similar fund backed by DFIs. Whereas, Bank Alfalah presented a promising proposal to create a Special Purpose Vehicle (SPV) under the Asset-Backed Securitization Regulations, 2022 to securitize rupee-denominated debt to dollar denomination.

Saeed highlighted that regulatory requirements for effectively structuring a Private Fund ensure that professional fund management teams, independent of financial institutions, oversee fund management, bringing expertise in private equity, structured finance, and green investments. He also noted that the asset securitization proposal can potentially pave the way for unlocking new avenues in Pakistan’s Debt Capital Markets, benefiting all stakeholders.

The meeting concluded with commitment from all participants, including banks and DFIs, to work together for the greater good of Pakistan’s economy.

Source: Pro Pakistani

The Oil and Gas Regulatory Authority (OGRA) has jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs. 20.84 per kg, increasing the price of 11.8 kg domestic cylinder by Rs. 246 or around 8.6 percent for October.

In a notification, the regulator set the price of LPG at Rs. 261 per kg for October compared to Rs. 240 in September. The 11.8 kg domestic cylinder price was set at Rs. 3,079 in October compared to Rs. 2,833 in September.

As per OGRA’s calculation, the producer price of LPG (propane 40 percent and butane 60 percent) has been determined at Rs. 181,506 per tonne for October.

With the addition of Rs. 4,669 per tonne of petroleum levy and 18 percent sales tax of Rs. 33,511 per tonne for October, the maximum producer price was worked out at Rs. 219,686 per tonne for October. The maximum producer price for the domestic cylinder of 11.8 kg was thus calculated at Rs. 2,592 per kg for the current month.

For consumer price, another Rs. 35,000 per tonne of marketing, distribution, and transportation margin was added to the maximum producer price besides another 18 percent GST (Rs. 6,300 per tonne on this margin). Thus the consumer end maximum LPG price was fixed at Rs. 260,986 per tonne (Rs. 3,079 per cylinder of 11.8 kg) for October.

It is pertinent to mention here that last month, the regulator increased the price of indigenous liquefied petroleum gas (LPG) by Rs. 39 per kg.

Source: Pro Pakistani

The Competition Commission of Pakistan (CCP) has granted approval to a UAE-based company for the acquisition of two entities engaged in the establishment and operation of an LNG terminal, as well as the import, storage, and distribution of Liquefied Natural Gas (LNG) and Re-gasified Liquefied Natural Gas (RLNG) in Pakistan.

The approval will pave the way for Foreign Direct Investment (FDI) and the potential mitigation of Pakistan’s gas shortage.

CCP has processed the two mergers, approving the 100 percent acquisition of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited (TEMPL) by the UAE-based Bison Energy FZCO.

As a result of the merger transactions, Bison Energy FZCO has acquired 100% shareholding of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited from Diamond Gas International Japan Co. Limited.

The transaction will result in foreign direct investment in Pakistan and help alleviate the gas shortage.

It is noteworthy to mention here that CCP completed the Phase-1 competition assessments, conducted in accordance with Section 11 of the Competition Act, 2010. As the proposed transactions did not raise any competition concerns, the mergers were approved.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) surpassed the revenue collection target for the first quarter of the current fiscal year by Rs. 63 billion.

According to details issued by FBR, the tax collection for the first quarter of the current fiscal year came in at Rs. 2,041 billion against the assigned target of Rs. 1,978 billion, exceeding the target by Rs. 63 billion.

For September, the FBR collected Rs. 834 billion against a target of Rs. 794 billion while refunds amounting to Rs. 37 billion were issued compared to Rs. 18 billion issued in September 2022.

FBR said that severe import compression was witnessed during September 2023. During the previous month, taxes collected at the import stage stood at Rs. 299 billion whereas during the current month taxes at the import stage were only Rs. 254 billion. However, FBR was able to make up the shortfall of Rs. 45 billion through domestic taxes, especially direct taxes.

The state by FBR further added that it is committed to not only achieving the assigned target for the coming months of the current financial year but also surpassing it.

Source: Pro Pakistani