Pakistan Forex Reserves Edge Up To $16.51 Bln

Pakistan’s foreign exchange reserves rose to $16.51 billion in the week ended March 30, from $16.44 billion in the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $11.84 billion from $11.77 billion a week earlier, while those held by commercial banks remained unchanged at $4.67 billion.

Foreign exchange reserves hit a record $18.31 billion in July last year, boosted by inflows of $411 million, including a $191.9 million loan from the World Bank and a $196.8 million loan from the Asian Development Bank.

Higher exports and record remittances have also supported Pakistan’s reserves.

Remittances from overseas Pakistanis rose 23 percent to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion a year earlier.

In February, overseas Pakistanis sent back $1.16 billion. Reserves have since been drained by debt repayments, including $399 million in the week ending Feb. 24 due on an $8 billion International Monetary Fund loan.

The next repayment is due in April.

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Pakistan Fuel Oil Imports Rise 18 Per Cent

Pakistan bought more than 450,000 tonnes of fuel oil in March, its highest level this year, led by higher imports of high-sulphur grade fuel, official data showed on Thursday.

Total fuel oil imports, used for power generation, climbed 70,328 tonnes to 460,688 tonnes, up around 18 per cent, figures from the Oil Companies Advisory Committee showed.

High-sulphur fuel oil (HSFO) volumes rose by 132,492 tonnes at 392,499 tonnes, while low-sulphur fuel oil (LSFO) fell 62,164 tonnes to 68,189 tonnes.

The rise was in line with expectations, as Pakistan imported only about 390,000 tonnes last month, out of the term volume of 890,000 tonnes state-owned company Pakistan State Oil (PSO) purchased for delivery between February and March.

PSO has also sought similar second quarter volumes, but has refrained from buying expensive low-sulphur fuel oil.

The country is looking to increase its hydropower capacity through a recently approved $1 billion World Bank loan in an effort to reduce its reliance on fuel oil imports.

The bank said $840 million of the loan will be used to boost capacity at the Tarbela hydro power project, northwest of Islamabad, by 1,410 megawatts.

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Oil Recovers In Asian Trade

Oil recovered in Asian trade Thursday after sharp overnight losses triggered by a larger-than-expected jump in US crude stocks, analysts said.

New York’s main contract, West Texas Intermediate crude for delivery in May, gained 49 cents to $101.96 per barrel while Brent North Sea crude for May settlement was up 33 cents at $122.67.

Investor sentiment had taken a hit after the US Department of Energy said Wednesday in its weekly report that national crude reserves soared by nine million barrels in the week ending March 30.

That was a far bigger increase than the average estimate of 1.9 million barrels, according to analysts polled by Dow Jones Newswires.

Jonathan Barratt of Barratt’s Bulletin commodity research firm said Thursday’s recovery in crude prices reflected an improvement in investor sentiment towards the US economy which is the world’s number one oil user.

“The important thing to note is regardless what the numbers say is that the Fed has withdrawn any chance of a QE3,” Barratt told AFP from Sydney.

“What this tells us is the Fed is comfortable with the US economy. The market is coming to a little bit more common sense.”Minutes from the US Federal Reserve’s March 13 policy meeting published Tuesday eased the likelihood of a third round of quantitative easing (QE) to boost growth in the world’s largest economy.

The Federal Reserve has previously introduced two rounds of massive stimulus spending in an effort to kick-start the US economy.

At the height of the 2008-2009 financial crisis, the US central bank injected more than $1.5 trillion into the markets.

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Euro Weak On Eurozone Debt Crisis Distress

The euro remained weak against the dollar and yen in Asian trade Thursday as new worries over Europe’s fiscal woes prompted traders to look for safer bets.

The single currency bought $1.3136 and 108.12 yen in Tokyo in the morning, compared with $1.3141 and 108.35 yen in New York late Wednesday. The dollar edged down to 82.28 yen from 82.46 yen.

On Wednesday, the euro unit hit $1.3107 at one stage, its lowest level since March 16 as Spain’s borrowing costs rose sharply at a disappointing bond sale, its first since passing a tough austerity budget last week.

A key survey on Wednesday also showed that eurozone private sector activity retreated in March, fresh evidence that the 17-nation bloc was in recession.

Junichi Ishikawa, forex analyst at IG Market Securities in Tokyo, said the euro could test the $1.3000 mark as dealers seek out safer assets.

Risk appetite was also subdued ahead of Friday’s US non-farm payrolls data and the Easter holiday weekend, he told Dow Jones Newswires.

“With the prospect of little additional monetary policy accommodation globally and despite the signs of modest global growth, markets have refocused on the worst-case scenario,” National Australia Bank said in a note.

“A rotation back to euro-area worries sees equities and commodities slump, the dollar rally and yields (outside the EU periphery) fall,” it said.

“Europe’s woes never really went away, and it was nice while it lasted, but we are returning to the inevitable discussion of who’s next.”

The European Central Bank on Wednesday ruled out winding down its anti-crisis measures for now and kept key interest rates at record lows, after regional finance ministers reached a deal on expanding a so-called firewall to battle the eurozone’s debt crisis.

ECB chief Mario Draghi also said it was “important to keep in mind that all our non-standard monetary policy measures are temporary in nature and that all the necessary tools are available” to fight inflation if it got out of hand.

That was a signal that the ECB would not hesitate to raise rates if it felt that new liquidity being pumped in the financial system posed an inflationary danger. The bank is aiming to keep inflation below 2.0 percent.

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Stocks End At Fresh Four Year High Rupee Firms

Pakistan stocks rose almost 1.8 per cent to a new four-year high on Wednesday, led by blue chips on hopes of progress on capital gains tax (CGT) reforms, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended up 1.79 per cent, or 244.83 points, at 13,945.30 points, its highest close since May 2008.

Volume rose to 409.3 million shares, compared with 318.14 million shares traded on Tuesday.

“Investors remained interested in blue-chip stocks as volumes climbed to 9 billion rupees ($99 million),” said Samar Iqbal, a dealer at Topline Securities Ltd.

Among heavyweight companies, the National Bank of Pakistan ended 5 per cent higher at 49.40 rupees, Pakistan Telecommunication Co Ltd closed up nearly 1 per cent at 12.61 rupees and Oil and Gas Development Co Ltd rose 2.5 per cent to 168.15 rupees.

In the currency market, the rupee ended firmer at 90.30/35 to the dollar, compared with Tuesday’s close of 90.49/54 to the dollar amid a lack of import payments.

The rupee has also been supported recently by remittances from overseas Pakistanis, rising by nearly a quarter to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the 2010/11 period.

In February, remittances totaled $1.16 billion.

In the money market, overnight rates fell to 9.10 per cent, compared with the previous day’s close of 9.75 per cent amid increased liquidity in the interbank market.

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Govt Ready To Support SMEs: Pervaiz Elahi

Senior Federal Minister Industries and Defence Production Chaudhry Pervaiz Elahi on Monday said the government would extend its support to SMEs for economic prosperity in the country.

Presiding over a meeting held to review operational mechanism of the PSDP projects, being undertaken by Small and Medium Enterprises Development Authority (SMEDA), he expressed satisfaction over transparent and smooth execution of projects by SMEDA through Public Sector Development Program.

The Senior Minister, while exchanging his views with SMEDA management reiterated that the government was aware of the significance of SMEs for economic prosperity of the nation.

He assured his cooperation in overcoming the difficulties being faced by the SMEDA in serving its basic mandate of SME development as well as successful execution of the PSDP projects.

Responding to a question regarding operational mechanism and management structure of the PSDP Projects, Pervaiz Elahi was informed that the PSDP projects to be executed by SMEDA were being run under Public-Private Partnership.

Whereas the procurements of these projects are strictly made in compliance with Public Procurement Regulatory Authority (PPRA) rules and regulations.

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Stocks O/N Rates End Lower Rupee Flat

Pakistan stocks fell on Monday as traders booked profits from last week’s rally to a four-year high, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended down 0.72 per cent, or 98.44 points, at 13,663.32 points.

The index closed at 13,761.76 on Friday, its highest since May 2008.

Volume fell to 147.84 million shares, compared with 413.94 million shares on Friday.

“After a gain of 4 per cent last week, investors preferred to book profits,” said Samar Iqbal, a dealer at Topline Securities.

Dewan Cement surged 17.5 per cent in the biggest volume of the day, while Lafarge Pakistan closed up 0.8 per cent.

“Dewan Cement and Lafarge Cement remained in the limelight as investors were hopeful that there will be a turnaround in their profits in 2012,” Iqbal said.

The rupee ended almost flat at 90.63/68 to the dollar, compared with Friday’s close of 90.61/66 to the dollar.

The rupee has been supported recently by remittances from overseas Pakistanis, which rose by nearly a quarter to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the 2010/11 period.

In February, remittances totaled $1.16 billion.

In the money market, overnight rates fell to 9.10 per cent, compared to Friday’s close of 11.90 per cent amid increased liquidity in the inter-bank market.

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Philippine Operator To Buy 35 Per Cent Of Pakistani Container Terminal

Philippine port operator International Container Terminal Services Inc (ICTSI) said on Monday that its subsidiary has signed a deal to acquire 35 per cent of Pakistan International Container Terminal Ltd (PICT) at an undisclosed price.

ICTSI Mauritius Ltd signed a share purchase agreement with substantial shareholders of the Pakistan container cargo company HS Group and JS Co for the sale of a 35 per cent stake at “a minimum offer price” to be set according to takeover laws in Pakistan, parent ICTSI said in a disclosure to the Philippine Stock Exchange.

It said the transaction, which requires clearance from government agencies in Pakistan, would be completed within a maximum of 180 business days.

In March, ICTSI said it was in talks to acquire 35 to 55 per cent of the issued and paid-up ordinary shares of PICT.

PICT, located at Karachi port, has a maximum handling capacity of 750,000 TEUs. For the fiscal year ended June 2011, the terminal saw an 11 per cent growth in cargo handled to a total 669,806 TEUs compared with the previous year.

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CPI Up 10.79 Per Cent: Statistics Bureau

Pakistan’s Consumer Price Index (CPI) rose 10.79 per cent in March from a year ago, the Pakistan Bureau of Statistics said on Monday.

On a month-on-month basis, the CPI rose 1.17 per cent from February, according to the bureau.

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