• Local, foreign firms brief PM Shehbaz on 3-year plan
• 240 potential sites to be excavated
• Dar-led committee to formulate policy on reserves
• PM wants MoUs signed with China implemented soon
ISLAMABAD: Local and international firms have announced an investment of $5 billion during the next three years in Pakistan’s oil & gas exploration and production (E&P) sector.
The announcement was made in a meeting presided over by Prime Minister Shehbaz Sharif at PM House on Saturday.
A delegation of companies from the oil and gas exploration and production sector informed the meeting that during the next three years, around 240 potential reserves sites would be excavated with an investment of $5bn to explore petroleum and gas.
The PM constituted a committee under the chairmanship of his deputy, Ishaq Dar, which would include experts, secretaries of relevant ministries, and other authorities.
The committee, after consultation with the E&P sector representatives, would formulate proposals to create an attractive policy for exploration and development of petroleum and gas reserves.
The PM also directed the relevant authorities to solve the issues faced by the companies and submit policy proposals to the newly-constituted committee immediately.
The meeting was informed that currently Pakistan’s domestic oil and gas production stood at 70,998 barrels and 3,131 million standard cubic feet per day (MMSCFD), respectively.
The prime minister invited petroleum and gas exploration and production companies to also work on offshore sites and called the exploration of new reserves “top priority”.
The government spends billions of dollars every year to import oil and gas, and production from local reserves would save this valuable foreign exchange, the PM said.
He said local reserves will also make fuel and gas affordable for common people.
State Bank Governor Jamil Ahmed told the meeting that as per the PM’s instructions, oil and gas production companies have been allowed to remit profits to their respective countries.
The meeting was also attended by Deputy PM Ishaq Dar; federal ministers Ahad Khan Cheema, Muhammad Aurangzeb, Mohsin Naqvi, Amir Muqam, Ahsan Iqbal, Sardar Awais Leghari; Planning Commission Deputy Chairman Jehanzeb Khan; Federal Board of Revenue Chairman Amjed Zubair Tiwana; and representatives of domestic and international E&P companies.
‘MoUs’ implementation’
PM Shehbaz also chaired a meeting to review the implementation of agreements and MoUs signed between Pakistan and China during his recent visit to China, the PM Office Media Wing said in a press release.
The PM said he would not tolerate any disruption in the implementation of the agreements, which he would personally supervise.
He referred to the “time-tested Pak-China friendship” and said Beijing had always supported Pakistan in difficult times.
China has emerged as a strong economic power, and Pakistan can emulate its development, he added.
The PM observed that a delegation of Chinese shoe manufacturing companies had recently visited Pakistan to discuss the relocation of their plants.
He said those companies had the capacity to invest about $5-8bn in Pakistan and that the local shoe manufacturers association was in constant contact with the Chinese companies on this issue.
He also said negotiations with Chinese companies for relocating their solar panels and its accessories manufacturing units to Pakistan should be accelerated.
PM Shehbaz also said that about 12 renowned Chinese companies working in the agriculture sector would be taking an active part in the Food and Agri Expo being held in Pakistan.
Agri training programme
The PM also reviewed the progress on sending around 1,000 students on government scholarships to China for latest training to work in the agriculture sector. He said students from backward areas of Balochistan should be prioritised, besides other students from the four provinces, Gilgit-Baltistan and Azad Kashmir on merit.
The Ministry of Information Technology and Telecommunication informed the meeting about the progress made on Huawei’s technical training programme for around 300,000 students and other projects, including a one-stop operation for business facilitation, smart governance and smart cities.
The meeting also discussed the progress made on different projects related to communication infrastructure, power, and Gwadar. PM Shehbaz issued directions for expediting the development of the port, airport and industrial zone in Gwadar.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
