Banking sector spreads decline to 4.89pc

 

Lahore (Staff Reporter): Banking sector spreads have declined marginally to 4.89 percent for Oct 2017 compared to 4.90 percent for Sep 2017 (-1bpsMoM) on outstanding loans. However, spread on fresh disbursements climbed to 3.68 percent for Oct 2017 compared to 3.35 percent for Sep 2017 (+33bps). Experts attribute the surge to a policy of selective high-yield lending and focus on low cost funds mobilization, as the industry battles it out in the last quarter of CY17 to meet year-end targets. Resultantly, in the light of latest data released by the SBP, in addition to 13%YoY increase in government borrowing (PKR 681b at Oct 2017), private sector credit off-takes were also up 21%YoY (Rs 4.5trn at Oct 2017). Conversely, average Cost of Deposits on outstanding and fresh deposits for 10MCY17 remained unchanged at 2.95% and 3.34% respectively, with cost of fresh deposits declining to 3.33% (-24bpsMoM).   Credit spread remained unchanged at 9bps for Oct’17, while the Lending spread registered growth yet again to arrive at 86bps (+9bpsMoM).

 

, cementing almost negligible interest in long-term GOP securities (as evident from NIL acceptances in the most recent PIB issues) and a re-profiling of the earning assets mix following hefty maturities of high-yield PIBs. 

 

Call for promotion of renewable energy

 

LAHORE (Staff Reporter): Despite having a huge potential, renewable energy is yet to gain popularity in Pakistan, primarily due to lack of equipment standardization as well as proper training and awareness. Premier Energy’s (PE) Country Head Daniyal Siddiqui said here Sunday that comprehensive and viable measures were needed at public and private level for the promotion of renewable energy that would definitely help narrow down the power demand and supply gap in the country. Keeping the importance of renewable energy in view, he said that his organisation aimed to revolutionize the energy sector through the provision of superior quality products and exceptional services to all its clients. The PE, he mentioned, has since long been organising training sessions, conferences, seminars and awareness programmes to promote use of renewable energy resources, besides developing young, dynamic and well-qualified individuals to change the energy consumption patterns in Pakistan.

Siddiqui said, the PE and South Eastern Regional College Lisburn (SERC) had agreed to collaborate in the fields of solar energy, electrical installation and environmental technologies. “This initiative will result in planning, execution and operations of a technical training institute in Pakistan that will not only provide Accredited Vocational Training Programmes but also meet the industry’s needs.

 

BMP to set up FPCCI regional offices in South Punjab, Sindh

KARACHI  (NNI): The presidential candidate of the Businessmen Panel (BMP) Senator Haji Ghulam Ali said on Sunday that if he was elected in FPCCI 2018 elections, his first priority would be to set up FPCCI regional office in Multan and Sukkur, so that business community of South Punjab and Interior Sindh could start close coordination with the Federation of Pakistan Chambers of Commerce on important matters. He said the business community of South Punjab and Interior Sindh was being neglected for the last three years, and it was need of the hour to put them in the mainstream. Ghulam Ali said, “We are determined to have a close coordination with the political parties of the country on economy so that long-term policies could be introduced, because we have to understand that without effective economy no country can take off to achieve the required targets.” He also told Pakistan’s trade deficit had been increasing for many years now. But this increase was also due to an increase in imports more than increase in exports.

 

 

[

 

 

 

 

PEW lauds continued improvement in power generation

ISLAMABAD  (INP): The Pakistan Economy Watch (PEW) has lauded the government for continued improvement in the power generation which is necessary for socio-economic development. However, it said that pace of reforms was slower than expected which must be considered by the policymakers in the national interest. PEW President Dr Murtaza Mughal said on Sunday that transmission and distribution losses and theft of electricity should be contained which the circular debt should not be allowed to resurface. He said that twenty independent power producers were facing problems in continuing operations as their overdue amount has jumped to Rs205 billion which had compromised their ability to operate at full capacity. “These IPPs have stopped payments to PSO and others, which is adding to the problem which must be noticed,” he added. Mughal said that the pace of reforms in the power sector should not be allowed to threaten the economic stability of the country.