Naphtha exports bouncing back (More news updates included) – BR Research
By: Business Recorder Research
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From zero to almost 693 million metric tons, the rise in naphtha exports for 10MFY14 is phenomenal. However, this is not only due to improvement in the ongoing fiscal year, but mostly because of significantly low volumes during the previous year. In 10FY13, the country’s export volumes of naphtha were zilch, while FY13 on the whole saw only 25 million metric tons of the same.
Shying away from spending
The ‘pro-business’ PMLN government has drastically cut the development spending to curtail fiscal deficit. Talk about ironies. Federal PSDP disbursement was Rs230 billion out of budgeted Rs431 billion in little over ten months while the 70 percent of foreign aid component has been released. The Finance Minister is penalizing the development budget by Rs115 billion on bad performance of FBR. PSDP is expected to fall short by Rs200 billion, for details see BR Research’s article “PSDP’s familiar fate” published on May 19, 2014.
Leather exports up, but future dicey
According to Pakistan Tanneries Association, leather industry is the second biggest dollar earning sector after textiles in Pakistan. Well, we don’t know what kind of data are they watching, but according to latest trade numbers released by Pakistan Bureau of Statistics, leather has the third biggest share (4.5 percent) in the country’s total exports, after textile (54%) and rice (9%) – a position that it shares with the chemical industry.
The lost charm of treasury bills
Single-digit rates are not exciting enough anymore. Even with the rate cut view for the longer run maintained by the market, there were no takers for 12-month treasury bills in the latest MTB auction held on May 28, 2014. A look at the latest auction result makes the previous auction look like one from another world and another time.
Interview with Kimihide Ando, General Manager for Pakistan, Mitsubishi Corporation.