World oil prices extend losses on fresh supply glut fears

LONDON (AFP): Oil prices slid to fresh three-month lows Wednesday as worries about a global oversupply resurface ahead of the release of US stockpiles data later in the day. With the US summer driving season -- when demand peaks -- drawing to a close investors are growing increasingly concerned that stocks in the world's top crude consumer remain at elevated levels. The Energy Information Administration is due to release a report Wednesday, with a survey of analysts warning gasoline inventories rose in the previous week, while oil supplies dipped for a tenth week. The EIA last week announced a smaller-than-forecast drop, which sparked a sell-off in the commodity. On Wednesday at around 1115 GMT, US benchmark West Texas Intermediate was down 29 cents at $42.63 while Brent fell 51 cents to $44.36. The losses come after a three-day sell-off. "The general driver behind the negativity seems to be the excess crude and gasoline stockpiles," Angus Nicholson, a markets analyst at IG Ltd. in Melbourne, said.

"The market is very much in a down trend and it doesn't look like it's going to reverse at the moment. There is some key technical support around $40 a barrel."

Adding to the downward pressure was a pick-up in the dollar following a series of strong US economic figures as well as an increase in the number of rigs coming online, meaning more production.

After topping $50 a barrel early last month on the back of output disruptions, the cost of crude has tumbled about 15 percent in recent weeks as the crucial US holiday driving season comes to an end and global demand remains weak.

It had fallen to near 13-year lows below $28 in February, as world markets were crippled by worries over China's economy, weak demand, tepid global growth and a supply glut.

Issue of input tax adjustment yet to be resolved: PIAF

LAHORE (Staff Reporter): The issue of settlement over input tax adjustment on services between federal government and provincial government has not been resolved yet, causing undue worries and disturbance for the business community. Putting the burden of this tax on business community is quite wrong and un-logical and unethical, said Mian Anjum Nisar, the patron in-chief of PIAF. “It would lead to dual taxation as indirect taxes paid to the provinces would not be adjusted in the sales tax paid to the central government.” If provincial as well as the federal tax departments have some issues and lack proper coordination then why manufacturers are being punished due to their mistakes. He said that Tax act section 2(14) (d) has been abolished in the federal budget 2016-17 in which adjustment was available for the manufacturing sector on services of provincial sales tax. He requested the FBR authorities not to exempt this clause from federal budget.

 “This adjustment will increase the cost of production and also make our products uncompetitive internationally,” he said.

“It is the responsibility of the government to register businesses whereas the already registered ones are constantly penalized for being in the tax net,” he said. Its practiced globally that on one end provincial tax is paid and on other end it is claimed, but this practice has been stopped since 1st July 2016-17 which greatly discourages the tax payers.

 Rs115b invested in Railways to improve its efficiency: Ahsan

KARACHI (INP): Minister for Planning, Development and Reforms Ahsan Iqbal said on Wednesday that completion of China-Pakistan Economic Corridor would not only change fate of Pakistan but also benefit the entire region. Talking to media men after his address to traders and industrialists at Pakistan Stock Exchange in Karachi, he said due to government’s measures economy had been put on the right path. Ahsan boasted positive signals were coming from all the sectors because of vibrant and effective economic policies adopted by the government. He said special attention was being paid on infrastructure development and strengthening the national economy. The minister said that Rs115 billion had been injected into Railways alone to improve its efficiency. He further said that bullish trend at Pakistan Stock Exchange continued so much so that it had become the symbol of Pakistan. Ahsan expressed the hope that energy crisis would be overcome by 2018.

PBIF lauds LNG achievements of government

KARACHI (NNI): PBIF President Mian Zahid Hussain on Wednesday lauded the govt for its LNG related achievements. “Around 3,600 megawatt of electricity will be included in the system within one year with the help of three state-of- the-art LNG plants, which will cut summer shortfall to half while triggering economic activity in various sectors,” he said. Zahid said that new power plants would be consuming almost half of the gas as compared to the existing power plants, resulting in cheap electricity having an impact on agricultural and industrial production, job market and revenue. He said the govt had entered into a 15-year LNG deal at 13.35 percent of the Brent Crude; however price can be reduced if private sector is encouraged to step into import and marketing of the gas. Killing competition is not in the interest of masses which is resulting in suspicions and rumours, he said adding that at one hand govt is privatising different entities while on the other it continue to establish companies to import gas which is amazing.