News Brief

Cement exports go down by 27pc in Nov

Lahore (Staff Reporter): The cement exports continued its declining trend and went down by 27.11 percent in Nov 2017 against the same period of the last year. The data released by the All Pakistan Cement Manufacturers Association states that exports from South-based mills took a major hit as these went down by 45.4 percent from 0.129 million tonnes in November 2016 to 0.070 million tonnes in November 2017. Exports from Northern region also decreased by 8 percent to 0.278 million tonnes last month from 0.350 million tonnes in the same month last year. However, the mills situated in north dispatched 2.96 million tones of cement locally in Nov 2017, which is 10.2 percent higher. The local dispatches in the south rose by 8.4 percent from 0.578 million tonnes in November 2016. The statistics show that drop in exports continued in the first five months of this fiscal year as the exports came down by 18.22 percent to 2.079 tonnes from 2.542 million tonnes during the corresponding period of the last fiscal year. The cement industry is worried over the complacency shown by economic planners towards the cement sector.

The cement sector has so far withstood the impact of decline in exports due to a robust growth in the domestic market. However, the current political uncertainty may impact domestic growth also, said the industry stakeholders adding that the worries are compounded by the fact that more capacities are expected to be commissioned in next three years, starting from January 2018. While all the previous issues raised by cement manufacturers in the last few months have remain unaddressed, increase in duties on coal has increased the cost of production. Auto sales increase by 24pc in 2nd quarter

Lahore (Staff Reporter):  As per the data recently released by Pakistan Automotive Manufacturers Association (PAMA), beginning of the second quarter has been strong for the auto sector with sales increasing by 24 percent MoM to highest-ever monthly sale figures of 23,341 units in Oct 2017. PSMC and HCAR both recorded stellar 31 percent MoM growth in sales, whereas INDU’s sales grew by only 4 percent MoM. While this could be attributed to a low base in Sep’17 (total cars & LCVs sales were down 18 percent MoM), few surprises during the month came in terms of a big jump in sales for Wagon-R (111 percent MoM), LCVs (Bolan and Ravi up 33 percent and 16 percent MoM), Fortuner (up 31 percent) and Honda’s new addition of the year BR-V recording highest monthly sale of 1,091units (up 65 percent).  Pak Suzuki Motors Company (PSMC) has seen major increase in sales (24 percent in 4MFY18) in its 1000cc segment (sole assembler in the segment), with addition of new Cultus and impressive buying seen for Wagon-R.

Mehran sales also accelerated by 18 percent MoM and are up 80 percent YoY in 4MFY18.

Honda’s sales rebounded in Oct 2017 with a 23 percent MoM jump in Civic/City, and a phenomenal rise in BR-V sales to 1,091units (up 65 percentMoM). Corolla sales saw tepid growth of 3 percent MoM in Oct 2017 apparently due to continued capacity constraints while Fortuner sales increased by big 31 percent MoM. FPCCI welcomes foreign investment in LNG sector

Karachi (Staff Reporter): The FPCCI on Sunday welcomed the decision of the foreign investors to invest heavily in the supply of LNG to Pakistan and pour millions of dollars in its infrastructure. The interest of foreign investors proves transparency and success of the project, which can be attributed to the efforts of Prime Minister Shahid Khaqan Abbasi, it said. A Japanese company, specializing in gas-value-chain business, wants to invest in the infrastructure in partnership with Singapore-based firm which is very encouraging, said Atif Ikram Sheikh, Chairman FPCCI Regional Committee on Industries. He said that Japanese company Mitsui planned to further expand its presence in the gas business in the newly emerging LNG markets like Pakistan and it had promised to deliver a key energy infrastructure project of high national importance. Sheikh, who is also running for the vice presidency of FPCCI, praised the efforts of Abbasi for beginning the regular gas supplies which will reduce the gap between demand and supply. OGDCL adds five new oil, gas wells in

production gathering system

ISLAMABAD: (APP): Oil and Gas Development Company (OGDCL) has injected five new oil and gas wells, producing 4,133 barrels crude oil and 891 mmcf gas, in its production gathering system during first quarter of the current fiscal year. “The company, being cognizant of the country’s increasing energy demand, added production of five newly operated wells namely Pakhro-I, Dachrapur-3, Chanda-4 and Qadirpur-58 and HRL-12 in the system,” official sources told APP. They said the OGDCL’s crude oil production had reached 42,529 barrels per day (bpd) in first quarter as compared to the same period of the corresponding year 2016-17, showing 6 percent growth. Similarly, production of LPG witnessed 73 percent surge during the period under review. The production has increased from 342 tons per day (tpd) to 590 tpd, the sources added. The company drilled two new development wells namely Mela-6 and Qadirpur HRL-14, while it made two oil and gas discoveries in districts Sukkur and Hyderabad of the Sindh province.

Replying to a question, they said the company in an effort to explore new oil and gas reserves continued with its seismic data activities and acquired 181 sq. km of 3D and 49 Line Km of 2D seismic data during the period.

In order to arrest natural decline and revive production from mature wells, they sources informed that the OGDCL carried out successful work-over jobs at wells including Kunnar-10 and Pasakhi-7.

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