BUSINESS ENVIRONMENT IN PAKISTAN

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI
Research Analyst
, PAGE
Dec 01 - 07, 2008

IMF FORECASTS
COUNTRY

GDP GROWTH %

  2008 2009
US 1.4* -0.7*
EURO ZONE 1.2* -0.5*
GERMANY 1.7* -0.8
FRANCE 0.8 -0.5*
ITALY -0.2* -0.6*
SPAIN 1.4 -0.7*
JAPAN 0.5* -0.2*
BRITAIN 0.8* -1.3*
CANADA 0.6* 0.3*
* forecasts revised down since Oct
Source: IMF


PER BARRALS OIL PRICES IN 2008 ($)
MONTHLY BASKET PRICE
8-Jan 88.35
8-Feb 90.64
8-Mar 99.03
8-Apr 105.16
8-May 119.39
8-Jun 128.33
8-Jul 131.22
8-Aug 112.41
8-Sep 96.85
8-Oct 69.16
8-Nov 50.59
WEEKLY BASKET PRICE
29/08/2008 111.2
5/9/2008 104.39
12/9/2008 97.37
19/09/2008 89.2
26/09/2008 98.28
3/10/2008 90.01
10/10/2008 77.98
17/10/2008 67.88
24/10/2008 61.53
31/10/2008 57.64
7/11/2008 56.83
14/11/2008 50.75
21/11/2008 45.4
28/11/2008 44.48
Source: OPEC


PROFIT AND EARNINGS OF THE BANKS

BANKS

PAT (Rs m) EPS (Rs) CHANGE IN %
HY' 08 HY' 07 HY' 08 HY' 07
Allied Bank 2,508 2,752 3.88 4.26 -8.8%
Arif Habib Bank 213 15 0.47 0.03 1311.4%
Askari Bank 409 1,491 1.01 3.67 -72.6%
Atlas Bank (197) 3 (0.39) 0.01 n/m
Bank Alfalah 1,819 1,230 2.28 1.54 47.8%
Bank Al-Habib 1,249 1,128 2.61 2.36 10.8%
Bank Islami (10) (37) (0.02) (0.09) 73.4%
Bank of Khyber 107 166 0.27 0.41 -35.6%
Bank of Punjab (2,629) 1,825 (4.97) 3.45 -244.0%
Cresent Bank (128) (370) (0.15) (0.42) -65.4%
Faysal Bank 746 1,296 1.41 2.45 -42.4%
Habib Bank 6,357 6,576 8.37 8.66 -3.3%
Habib Metro Bank 1,565 1,171 2.60 1.94 33.7%
JS Bank 160 35 0.31 0.07 362.1%
KASB Bank 78 205 0.19 0.51 -62.1%
MCB 7,677 7,663 12.22 12.20 0.2%
Meezan Bank 443 431 0.98 0.95 2.8%
My Bank 431 441 1.02 1.04 -2.1%
NBP 7,881 9,013 8.79 10.05 -12.6%
NIB Bank 659 103 0.23 0.04 541.2%
Royal Bank of Scotland 83 324 0.06 0.24 -74.3%
Saudi Pak (771) 103 (1.54) 0.21 n/m
Soneri Bank 465 498 1.13 1.21 -6.6%
Standard Chartered 1,341 2,569 0.35 0.66 -47.8%
United Bank 5,594 5,631 5.53 5.57 -0.7%
Various sources


PRICES OF OIL PRODUCTS IN PAKISTAN
PRODUCTS JP-1 JP-4 JP-8 PREMIUM MOTOR GASOLINE HOBC KEROSENE OIL LIGHT DIESEL OIL
Jan-08 48.85 51.73 56.64 53.70 64.88 35.23 32.57
Feb-08 47.39 51.06 55.11 53.70 64.88 35.23 32.57
Mar-08 52.77 55.46 60.75 58.70 69.88 38.78 36.07
April-08 59.47 59.17 67.94 62.81 74.77 41.44 38.59
May-08 67.33 65.70 76.20 68.81 80.77 41.44 44.59
June-08 84.90 80.05 94.81 68.81 80.77 41.44 44.59
July-08 82.10 76.79 87.79 75.69 88.85 49.73 49.05
Aug-08 86.11 79.45 92.16 86.66 96.08 58.37 56.50
Sep-08 75.34 72.13 81.39 86.66 96.08 58.37 56.50
Oct -08 69.01 64.36 75.04 81.66 96.08 61.87 60.00
Nov-08 50.90 42.66 57.01 76.66 96.08 61.87 60.00
Nov-15-08 48.57 37.67 54.88 66.66 81.08 56.87 53.00
Source: OGRA


EXCHANGE RATES OF PAKISTAN DURING 2008

COUNTRY

CURRENCY 27TH NOVEMBER 2ND JANUARY CHANGE
USA UD$ 78.70 61.45 (17.25)
United Kingdom Pound 120.85 121.93 1.08
Euro Euro 102.11 89.88 (12.23)
Canada C$ 63.90 61.99 (1.91)
Switzerland Swiss franc 66.21 54.28 (11.93)
Australia Aus$ 50.77 54.08 (3.31)
Sweden Korona 9.92 9.52 (0.4)
Japan Yen 0.8276 0.5496 (0.278)
Norway Krone 11.32 11.32 0
Singapore Sing$ 52.13 42.63 (9.5)
Denmark Krone 13.70 12.05 (1.65)
Saudi Arabia Riyal 20.98 16.38 (4.6)
Hong Kong HK$ 10.15 7.87 (2.28)
China Yuan 11.53 8.42 (3.11)
Kuwait Dinar 289.20 224.74 (64.46)
Malaysia Ringgit 21.74 18.57 (3.17)
New Zealand NZ$ 43.17 47.31 4.14
Qatar Riyal 21.61 16.88 (4.73)
UAE Dirham 21.43 16.73 (4.7)
Source: Forexpk


THE KARACHI ELECTRIC SUPPLY COMPANY LIMITED CATEGORY-WISE TARIFF RATES (01.09.2008)
CATEGORY TARIFF FIXED CHARGES RS./KW -1 ENERGY CHARGES RS./KWH-2 FUEL ADJ. CHARGES RS./KWH-3 ADDITIONAL SURCHARGE RS./KWH-4 VARIABLE CHARGES RS./KWH-5(2 TO 4) ELECTRICITY DUTY
. . . . . . SINDH BALOCHISTAN
. . . . . . % OF ENERGY CHARGES (2)
DOMESTIC
(TAX CHARGED ) A1-R
. . . . RS. % %
upto 50 kWh . 0.61 0 0.79 1.4 6 7.35
FOR CONSUMPTION ABOVE 50 UNITS
1 to 100 kWh . 0.46 0.87 1.74 3.07 6 6.8
101 to 300 kWh . 0.63 1.7 2.47 4.8 6 5.94
301 to 1000 kWh . 1.56 2.88 3.82 8.26 6 5
Above 1000 kWh . 1.93 3.32 4.69 9.94 6 3.57
DOMESTIC ( TAX FREE ) A1-R
upto 50 kWh . 0.61 0 0.79 1.4 0 0
FOR CONSUMPTION ABOVE 50 UNITS
1 to 100 kWh . 0.46 0.87 1.74 3.07 0 0
101 to 300 kWh . 0.63 1.7 2.47 4.8 0 0
301 to 1000 kWh . 1.56 2.88 3.82 8.26 0 0
Above 1000 kWh . 1.93 3.32 4.69 9.94 0 0
COMMERCIAL ( TAX CHARGED ) A2-C
Upto 100 kWh . 2.91 2.84 4.18 9.93 4 2.78
Above 100 kWh . 3.15 2.77 4.3 10.22 4 2.5
COMMERCIAL ( TAX FREE )A2-C
Upto 100 kWh . 2.91 2.84 4.18 9.93 0 0
Above 100 kWh . 3.15 2.77 4.3 10.22 0 0
INDUSTRIAL B
B-1 (upto 40 kW) . 1.86 2.31 3.37 7.54 3.5 2.55
B-2 (41-500kW) 300 1.35 2.19 2.5 6.04 3.5 4.2
B-2 TOD (OFF PEAK HRS) 300 1.25 1.69 2.34 5.28 3.5 4.2
(Peak Hours) 300 2.03 2.81 3.13 7.97 3.5 4.2
B-3 11KV (501-5000kW) 290 1.34 2.07 2.34 5.75 3.5 4.3
B-3 TOD 11KV (501-5000kW) (OFF PEAK HRS) 290 1.2 1.43 1.91 4.54 3.5 4.3
(Peak Hours) 290 2.02 2.54 2.66 7.22 3.5 4.3
B-4 66/132KV (over 5000kW) 280 1.29 1.92 2.15 5.36 3.5 4.75
B-4 TOD 66/132KV (over 5000kW) (OFF PEAK HRS) 280 1.16 1.45 1.77 4.38 3.5 4.75
(Peak Hours) 280 1.92 2.41 2.56 6.89 3.5 4.75
B-5 220KV and above for all loads 273 1.29 1.85 2.08 5.22 3.5 4.75
B-5 TOD 220KV & above for all loads (OFF PEAK HRS) 273 1.16 1.59 1.7 4.45 3.5 4.75
(Peak Hours) 273 1.92 2.37 2.51 6.8 3.5 4.75
BULK SUPPLY C
C-1 400 Volts 220 1.14 2.78 3.54 7.46 4 4
C-2 11 Kv 216 1.11 2.69 3.45 7.25 4 7.14
AGRICULTURE D
D-1 72 0.8 1.33 2.36 4.49 4 10
D-2 176 0.8 0.95 1.72 3.47 4 10
Public Lights G . 2.2 2.94 4.88 10.02 4 4
G 2a for 60 watts 495 (per year per lamp) . 4.7 4.7 . .
G 2b for 100 watts 908 (per year per lamp) . 4.7 4.7 . .
TEMPORARY E
E-1 (i) Domestic 2.16 3.32 3.88 9.36 6 6
E-1 (ii) Commercial . 3.86 2.84 5.28 11.98 4 4
E-2 (i) Industrial . 2.41 2.99 3.82 9.22 3.5 4.2
E-2 (ii) Bulk
(a) at 400 Volts
. 1.81 3.24 4.09 9.14 4 4
(b) at 11 Kv . 1.69 3.24 3.91 8.84 4 7.14
E-2 (iii) Bulk Supply to other consumers . 1.9 3.24 4.07 9.21 4 7.14
MINIMUM CHARGES SINGLE PHASE THREE PHASE
A1-R Rs.45/- Rs.100/- upto 5 kW plus Rs.25/kW in excess of 05 kW.
A2-C Rs.150/- Rs.300/- upto 10 kW plus Rs.30/kW in excess of 10 kW.
B-1 Rs.70/- per kW upto 20 kW plus Rs.90/- per kW for load between 20-40 kW.
E-1(i) & E-1(ii) Rs.46/- per day subject to minimum of Rs.200/- per day for the entire period of supply. Remaining tariff as per fixed charges.
Monthly Meter Rent *Electricity duty rates of Domestic = 6% Commercial / Bulk Supply & Agricultural = 4% Industrial 3.5% of Energy charges
Single phase Rs 7.50
Polyphase upto 20 Amps 15.00
Polyphase 20-90 Amp 20.00
Income Tax Industrial and commercial consumers are also subject to Income Tax
Taxable Amount = Energy Charges + Fuel Adj. Charges + Addl. Charges + Fixed Charges + Electricity Duty + Meter Rent + PF Penalty As per notification of CBR.
(i) Does not exceed Rs. 400/- Rs. 60/- (vii) Rs.3001 to 4500/- Rs. 450/-
(ii) Rs. 401 to 600/- Rs. 80/- (viii) Rs. 4501 to 6000/- Rs. 500/-
(iii) Rs.601 to 800/- Rs. 100/- (ix) Rs. 6001 to 10000 Rs. 650/-
(iv) Rs.801 to 1000/- Rs. 160/- (x) Rs. 10001 to 15000 Rs. 1000/-
(v) Rs. 1001 to 1500/- Rs. 300/- (xi) Rs. 15001 to 20000 Rs. 1500/-
. (vi) Rs. 1501 to 3000/- Rs. 350/- (xii) Rs. 20000 and above 10% of the TaxableAmount
General Sales Tax General Sales Tax as per notification of CBR
Taxable Amount = Energy Charges + Fuel Adj. Charges + Addl. Charges + Fixed Charges + Electricity Duty + Meter Rent + PF Penalty Domestic 16% of Taxable Amount, except consumption under 100 Units
. Agricultural 16% of Taxable Amount, except for Tube well consumers
. Commercial 16% of Taxable Amount
. Industrial 16% of Taxable Amount
. Steel Melters Rs./ 6.00 per Unit
. Industrial Zero Rated Consumer List Provided by CBR
OTHERS CHARGES
TV License Fee Domestic @ Rs. 25/= per TV Set, implemented since 01-08-2004
. Commercial / Industrial @ Rs. 50/= per TV Set, implemented since 01-08-2004
Bank Charges . @ Rs. 8/= per Payment implemented since 01-07-2006.
Source: KESC


GAS SALE PRICE FOR CONSUMERS HAVING CONSUMPTION

UPTO 200 M3 PER MONTH RS./MMBTU
(i) 0 - 50 M3 per month 78.38
(ii) Over 50 - upto 100 M3 per month 82.07
(iii) Over 100 - upto 200 M3 per month 149.40
OVER 200 M3 -UPTO 300 M3 PER MONTH
(i) 0 - 100 M3 per month 82.07
(ii) Over 100 - upto 200 M3 per month 149.40
(iii) Over 200 - upto 300 M3 per month 313.10
OVER 300 M3 - UPTO 400 M3 PER MONTH
(i) 0 - 200 M3 per month 149.40
(ii) Over 200 - upto 300 M3 per month 313.10
(iii) Over 300 - upto 400 M3 per month 407.31
OVER 400 M3 - UPTO 500 M3 PER MONTH
(i) 0 - 300 M3 per month 313.10
(ii) Over 300 - upto 400 M3 per month 407.31
(iii) Over 400 - upto 500 M3 per month 529.50
OVER 500 M3 PER MONTH
(ii) 0 - 400 M3 per month 407.31
(ii) Over 400 -upto 500 M3 per month 529.50
(iii) All over 500 M3 per month 688.35
Minimum charges........Rs.105.72 per month  
Source: OGRA


PAKISTAN'S FINANCIAL POSITION IN THE IMF AS OF OCTOBER 31, 2008

I. MEMBERSHIP STATUS: JOINED: JULY 11, 1950;
II. GENERAL RESOURCES ACCOUNT: SDR MILLION %QUOTA
Quota 1,033.70 100
Fund holdings of currency 1,041.48 100.75
Reserve Position 0.12 0.01
Holdings Exchange Rate    
III. SDR DEPARTMENT: SDR MILLION %ALLOCATION
Net cumulative allocation 169.99 100
Holdings 132.75 78.1
IV.OUTSTANDING PURCHASES AND LOANS: SDR MILLION %QUOTA
PRGF Arrangements 779.07 75.37
Extended Arrangements 7.9 0.76
V.LATEST FINANCIAL ARRANGEMENTS:
TYPE DATE OF ARRANGEMENT EXPIRATION DATE AMOUNT APPROVED (SDR MN) AMOUNT DRAWN (SDR MN)
PRGF Dec 06, 2001 Dec 05, 2004 1,033.70 861.42
Stand-By Nov 29, 2000 Sep 30, 2001 465.00 465
EFF Oct 20, 1997 Oct 19, 2000 454.92 113.74
VI. PROJECTED PAYMENTS TO FUND1/
(SDR Million; based on existing use of resources and present holdings of SDRs):
 

FORTHCOMING

  2008 2009 2010 2011 2012
Principal 29 146.36 172.28 172.28 146.44
Charges/Interest 2.3 4.25 3.36 2.5 1.67
Total 31.3 150.61 175.64 174.8 148.1
1/When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
VII. IMPLEMENTATION OF HIPC INITIATIVE: NOT APPLICABLE
VIII. IMPLEMENTATION OF MULTILATERAL DEBT RELIEF INITIATIVE (MDRI): NOT APPLICABLE
Source: IMF