Morning Briefing for Feb 16, 2012 – Standard Capital

Karachi: DGKC gets UN carbon credits

D.G. Khan Cement Company announced on Tuesday: “The Waste Heat Recovery Project of the company situated at Dera Ghazi Khan, generating 10.4MW of electricity has been successfully registered with the United Nations Framework Convention on Climate Change (UNFCCC) for carbon credit.”

According to Standard Capital, the company stated that the project was expected to generate 33,845 metric tons Carbon‐di‐Oxide (CO2) equivalent per annum for a credit period from Jan 2012 to December 2021.The company secretary observed that the information was being conveyed as “material information” to the stock exchanges in accordance with Clause (xxiii) of the Listing Regulation No.35 (Code of Corporate Governance) for circulation amongst the members of the exchange and other stakeholders. Commented that DGKC had earlier applied for car‐ bon credits‐tradable certificates for allowing a company to monetize the benefits of reduced carbon emissions.

Foreign portfolios dive 163% in 7 months Total foreign investment drops 64%

Foreign investment in the country fell 63.9 % to $446.2 mn in the first seven months of fiscal year 2011‐12 because of a decrease in foreign direct investment and foreign portfolio investment, the central bank said on Wednesday. Foreign investment totalled $1.24 billion in the same period last fiscal year. Foreign direct investment fell 40.7 % to $593.9 mn in the July‐ January period of 2011‐12 fiscal year, from $1 billion in the same period last fiscal year, the State Bank of Pakistan said. Pakistan’s unstable security, a Taliban insurgency in the country’s northwest and chronic power shortages have put off long‐term investors, analysts say. At least 400 people were killed in July and August last year in violence in Karachi, and investors have been shunning the country’s main stock exchange. Foreign portfolio investment fell 162.% with outflows of $147.7 mn in the first seven months of fiscal year 2011‐12, compared with inflows of $234.8mn in the same period last year.

Net FDI declines by 63.9% in 7MFY12
The net foreign direct investment (FDI) inflows continued to squeeze in every coming month as it fell 63.89 %to $446.2 mn in seven months of the current fiscal year as against $1236 mn in the same period of last fiscal year, with constant outflow of foreign portfolio investment (FPI) and foreign investment, State Bank of Pakistan (SBP) statistics said on Wednesday. The net FDI investment landed at $446.2 mn during July to January 2011‐12 after $147.7 mn outflow of capital was brought back by the foreign investors in the bonds and stock markets. FDI has registered a decline of 40.7 % to reach $593.9 mn in the first seven months of the current financial year 2011‐12 as against $1002 mn. The FPI recorded outflow of $147.7 mn in July to January 2011‐12 as compared with the previous year’s $234.8 mn inflow during the period under review.

Pakistan allowed trade concessions on 75 products
The General Council of the World Trade Organization (WTO) unanimously approved the draft decision, according to which the European Union (EU) is now authorized to provide trade concessions to Pakistan on 75 products. Ministry of Commerce statement issued here on Wednesday stated that after developing consensus by the Council on Trade in Goods of the WTO, the request of EU to provide unilateral market access to Pakistan at zero duty was forwarded by the committee to the General Council for approval of the draft decision.