Britain to take majority stake in Lloyds Banking Group

LONDON: The British government said Saturday it will take a majority stake in Lloyds Banking Group and guarantee 260 billion pounds (290 billion euros, 365 billion dollars) worth of its toxic assets.

In a new round of bailing out struggling British banks, the state will increase its ownership of the group from 43 percent to 65 percent. Lloyds Banking Group has also pledged to lend a further 28 billion pounds over the next two years as part of the package.

Under the government's insurance scheme terms, LBG has to take the first "hit" of up to 25 billion pounds on its toxic assets before the government steps in. The deal was hammered out between bank and Treasury officials in recent days.

Ministry approves import of 50,000 tons petrol

ISLAMABAD: Ministry of Petroleum has approved import of 50,000 tons of petrol to meet the petroleum consumption for the months of March and April while a summary, seeking provision of US dollars for the import of diesel, has been moved to Ministry of Finance on Saturday, sources privy to ministry said.

Sources in Ministry of Petroleum and Natural Resources told Geo News the repair work on the Attock Refinery has also cut its 50 per cent petroleum production whereas Pak Arab Refinery Company (PARCO) has been managing to produce 75 per cent of its potential owing to financial crisis leading to petrol import in March and April.

The diesel consumption will likely to surge in next three months due to wheat harvesting. While 600,000 tons of diesel will be imported in next two months to come, sources informed.

Bearish trend continues at KSE; KSE down 40 points

KARACHI: Selling pressure continued at Karachi Stock Exchange (KSE) on Friday as the KSE-100 Index closed 40 points down to 5,748.

Trade activities remained thin on the last trading day of the week as the trade volume was recorded at 69 million shares, which is lowest in three months.

OGDC led the volume leaders which slipped paisas 43 to close at Rs56.60.

Market analysts say the market activities will continue to remain affected until the political uncertainties persist in the country.

Bank of England cuts key interest rate to 5 percent

LONDON: The Bank of England cut its key interest rate by a quarter of a point on Thursday to five percent, balancing the risks of rising near-term inflation and economic slowdown spread by the credit crisis.

The decision, which was in line with market expectations, took short-term borrowing costs to the lowest level since January 2007 and came amid growing concerns over the country's slowing housing market.

The BoE said in a statement that its rate-setting Monetary Policy Committee had decided that the economy would probably experience a slowing of growth because of the global credit squeeze, and this could send inflation below target in the long term.

The Bank of England said in a statement on Thursday: "The disruption in financial markets could lead to a slowdown in the economy that was sufficiently sharp to pull inflation below the target.

Pak to be made leading shipbuilding country in region: Jatoi

KARACHI: Concerted efforts would ensure that Pakistan becomes a leading shipbuilding country in the region in line with its potential and ideal location.

This was stated by the Federal Minister for Defence production, Abdul Qayyum Khan Jatoi here on Thursday.

He was speaking as chief guest at the `Steel-cutting ceremony' of the fourth F22P Frigate at the Karachi Shipyard and Engineering Works (KWSB).

The Minister congratulated those associated with the KSEW for the achievement of this important milestone and appreciated the naval architects, engineers and workers involved to accomplish the prestigious work. He hoped that with speedy pace of construction work, this vessel will join Pakistan navy much earlier that the scheduled time.

Jatoi deeply appreciated the technical and material assistance support from our time-tested, reliable friend China and sit shipbuilding especially the China State Shipbuilding Corporation and China Shipbuilding Trading Company for the construction of the fourth
F22P Frigate at KWSB.

He said that the KWSB is a key organization for supporting Pakistan Navy Fleet in building Navy ships and essential repair works.

The minister further pointed out that today's event is also the continuation of their long lasting commitment with Pakistan Navy and the nation. He also pointed out that he and the Ministry would fully support the great vision for the new shipyards and the development of shipbuilding industry.

SBP gets Rs26 billion from banking system

KARACHI: The State Bank of Pakistan (SBP) has withdrawn an additional amount of Rs26 billion from banking system for six days at an interest rate of 9.15 per cent through the open market operation.

The central bank launched an open market operation here today to absorb the additional amount from the banking system.

Banks offered Rs32 billion for buying six-day treasury bills but the central bank obtained Rs26 billion at an interest rate of 9.15 per cent.

Today, the banking system received an amount of Rs30 billion through maturities.

KSE bounce back, as index surges by 200 points

KARACHI: Karachi Stock Exchange (KSE) at the onset of trading today showing its inherent resilience bounced back from the yesterday’s jolt, following Sri Lanka team attack in Lahore and traded briskly this morning, much to the relief of the stakeholders in the market.

Investors finding the low prices of stocks profitable went on buying spree unleashing upbeat in the market, which saw the index shooting up by 203 points to 5800 marks, until the filing of this report.

Market pundits hoped that the investors’ optimism was likely to continue at least for the rest of the day’s trading.

KPT deep-draft container terminal inauguration this month

KARACHI: Karachi Port Trust (KPT) deep-draft containers terminal will be inaugurated this month.

Sources said that the work on this project could not be started, despite an agreement was made two and a half year ago due to technical difficulties, dredging more than earlier estimated and larger proportion of foreign exchange component.

KPT General Manager (planning and administration), Brigadier Jamshed Zaidi said that KPT gets its revenue in foreign exchange and, therefore, the objection on more foreign exchange has been removed. He said that the dredging work has started under the project at a cost of Rs19.50 billion, which was Rs2 to Rs2.5 billion more than the initial estimate.

He further said that the total cost on the project would be $700 million, out of which $100 million would spent by the contracting firm, while rest of the mount would be arranged by KPT from its own resources.

Gas demand goes up 10 pc annually

KARACHI: Demand for gasoline consumption is going up by 10 percent annually here in Pakistan; experts said adding it is necessary to find new oil and gas reservoirs to meet the rising demand.

In a report on energy in Pakistan, it is stated that country’s daily gas demand was 4731 mmcfd while locally we produce 4528 mmcfd.

Pakistan remain short of 203 mmcfd gas daily while mere 17 percent of the total population have access to gas in country.

Inter-bank initial interest rate slides below 13 pc

KARACHI: Inter-bank initial interest rate dropped down below 13 percent, as six months’ Kibor stood at 12.85 percent.

Money market dealers said that the interest rate of six months’ Kibor during January 1 till to date shrank by 2.83 percent due to existing additional liquidity in the banking system and, therefore, the money market dealers were expecting a cut in interest rate.

On the other hand, inter-bank one year T-Bills cut off yield was 13 percent on February 25, which now after the shrink traded at 12.85 percent.

Economists said that the banks preferring investment in government securities instead of giving loans to the private sector and avoiding taking any risk. In this backdrop, private sector was also reluctant taking loans at high rate of interest.

According to State Bank disbursement of loans to the private sector as against previous year remained 47 percent low.

Stock exchange crisis diluted, on way to recovery: Tarin

KARACHI: Finance Advisor Shaukat Tarin has said that the stock exchange crisis has died down and it was now on its way to recovery.

Addressing a gathering here, Finance Advisor, Shaukat Tarin said that the government was gearing up the process of privatization for boosting foreign investment. He said that further $4.5 billion would be required for the improvement of balance of payments.

Shaukat Tarin said that Pakistan economy being adversely affected in the war against terror.

IMF agrees on interest rate cut if inflation declines: Tarin

DUBAI: Federal Finance Advisor Shaukat Tarin Thursday said IMF has agreed on cutting the rate of interest once the prevailing high inflation is brought down.He was talking to Geo News after holding talks with IMF.Shaukat Tarin said pressure will be exerted for paying tax on the non-tax payers with a view to broaden the existing tax base.

Crude oil prices dropped in Asian market today

SINGAPORE: Oil prices rose in Asian trade Thursday, pushed up by a surprise drop in US gasoline reserves, dealers said. New York's main contract, light sweet crude for April delivery, gained 23 cents to 42.73 dollars a barrel. Brent North Sea crude for April delivery was up 21 cents to 44.50. The unexpected drop in US gasoline supplies is the main factor behind the jump in crude oil prices but this is likely to be short-lived, said Victo