Latest news with #LuckyCement
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
China powers Pakistan's green energy ambitions amid IMF's loan conditions
Bootstrapped Pakistan has been slapped with 11 new conditions by the International Monetary Fund (IMF) for the release of its next tranche of bailout programme. One of the conditions ties Pakistan's access to the Resilience and Sustainability Facility (RSF) to its efforts to tackle climate change and promote clean energy for long-term economic stability. And Pakistan looks no further than its 'iron brother' China to meet this need. Lucky Cement, one of Pakistan's largest cement manufacturers, now has Chinese wind turbines and solar panels supplying over half of its energy needs at its Karachi plant. This shift has significantly reduced the company's carbon footprint, cutting carbon dioxide emissions by 60,000 tonnes annually, the Financial Times reported on Monday. Chinese solar panel prices have dropped sharply in recent years, while electricity costs from Pakistan's grid have risen. In response, Islamabad imported solar panels with a total capacity of around 19GW last year, the Financial Times quoted Jenny Chase, lead solar analyst at BloombergNEF, as saying. She estimates Pakistan is still importing panels capable of generating 1GW to 3GW each month this year—enough to power a city of millions. China's role in Pakistan's energy transition At the heart of this renewable energy transition is China, which has been Pakistan's largest investor in the energy sector. Since 2005, China has invested over $68 billion in Pakistan, with energy projects accounting for 74 per cent of that total. The China-Pakistan Economic Corridor (CPEC), launched in 2015 as part of Beijing's Belt and Road Initiative, has been the driving force behind this investment, particularly during its first phase, which focused on coal-based power generation. Of the 13 GW of power added to Pakistan's grid, 8 GW came from coal, while renewable sources like solar and wind contributed just 1.4 GW. But now both countries are looking to up the investment in green energy projects. Notable among the projects under the CPEC framework include the Quaid-e-Azam Solar Park in Pakistan's Punjab region. Wind projects in Sindh and hydro plants in the north further diversify the energy mix, supporting the goal of 30 per cent renewables by 2030. Demand for Chinese batteries While a shift to Chinese wind turbines and solar panels has helped companies like Lucky Cement to reduce its carbon footprint, it still relies on fossil fuel generators to ensure a stable energy supply. To address this gap, Lucky Cement is investing 1.5 billion Pakistani rupees ($5.3 million) in Pakistan's largest battery energy storage system (BESS), supplied by China's Contemporary Amperex Technology Co Ltd (CATL). The 20.7 MW system will store renewable energy for use during off-peak hours or in case of grid instability, and it will be capable of powering 20,000 homes for one hour when fully operational. As the prices of wind, solar, and battery technologies continue to fall, Lucky Cement expects a faster return on its investment, allowing the company to further increase its use of clean energy. Karachi-based Diwan International has reported a 33 per cent drop in the price of 5 kWh BYD batteries, making them more accessible to wealthier households, mosques, and businesses. The challenges However, the widespread adoption of renewable energy in Pakistan is not without its challenges. While solar power is becoming more affordable, battery storage remains costly, limiting its reach to lower-income households. The Pakistani government has taken steps to address these issues, including slashing industrial tariffs and offering surplus grid power to sectors such as crypto mining and AI data centres. Despite these measures, the divide between wealthier users shifting to solar and poorer households struggling with rising bills continues to widen. Moreover, attracting clean energy investment in Pakistan has become more difficult. Since the pandemic, only $4.86 billion of Chinese energy capital has flowed into Pakistan, much of it directed towards a single nuclear project in Chashma. Lucky Cement's shift to renewable energy supports the IMF's push for cleaner, more sustainable energy. This move also benefits Chinese companies, as they play a key role in supplying the solar, wind, and battery technologies driving Pakistan's green energy future.
Express Tribune
28-04-2025
- Business
- Express Tribune
PSX slides 1,405 points amid Pak-India tensions
The Pakistan Stock Exchange (PSX) witnessed a tug-of-war between the bulls and bears on Monday, as the index swung between a high of 116,659 (+1,190 points) before sweeping downwards to a low of 113,868 (-1,601 points). The KSE-100 index ultimately closed at 114,063.90, a decline of 1,405.45 points, or 1.22%. Analysts noted that the geo-political tensions following India's suspension of the Indus Water Treaty, as well as stalled bilateral trade and escalating tensions between the two countries played a catalyst role in the bearish close. According to Ahsan Mehanti of Arif Habib Corp, stocks fell across the board as investors eyed heightened geopolitical tensions following India's suspension of the Indus Water Treaty and stalled bilateral trade. He added that concerns over deteriorating Pak-India trade ties, and cross-border tensions played a catalyst role in the bearish close at PSX. At the close of trading, the benchmark KSE-100 index recorded a decrease of 1,405.45 points, or 1.22%, and settled at 114,063.90. In its market review, Topline Securities stated that today's trading session witnessed "a classic tug-of-war between bulls and bears." The index opened on a positive note, gaining strong momentum in the early hours, to register an intraday high of 1,189 points. However, the optimism proved short-lived, as intensified selling pressure later in the session caused the index to reverse sharply, touching an intraday low of 1,601 points, noted the brokerage. It added that the prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence. On the positive side, Systems Limited, Lucky Cement, Meezan Bank, and HBL collectively contributed 489 points to the index. Conversely, the bulk of the negative impact came from Engro Holdings, UBL, Mari Petroleum, Engro Fertiliser, and PSO, which together shaved off 907 points from the benchmark, Topline stated. Despite the risk-averse sentiment, overall market participation remained firm, with volumes clocking in at 421 million shares and a turnover of Rs26.43 billion, it mentioned. Arif Habib Limited (AHL) in its commentary said that the week started off poorly due to tensions between India and Pakistan, impacting sentiment to hit the weekly downside objective of 113,700 points on Monday. Some 25 shares rose while 73 fell, with Engro Holdings (-6.21%), UBL (-3.32%) and Mari Petroleum (-2.45%) contributing the most to index declines. On the flip side, Systems Limited (+7.39%), Lucky Cement (+2.45%) and Meezan Bank (+2.08%) were the biggest upside contributors, observed AHL. It added that Indus Motor Company Limited announced 9MFY25 earnings per share (EPS) of Rs210.62, representing a 76% year-on-year (YoY) increase, and DPS of Rs126.0 per share, beating expectations. Additionally, Lucky Cement reported 9MFY25 EPS of Rs18.67, a 46% YoY increase, coming above expectations as well. Fauji Fertiliser Company reported 1QFY25 EPS of Rs12.39, a 25% YoY increase, and DPS of Rs7.0, also surpassing expectations, noted AHL. It concluded that the market can see a bounce once 113,700 points are taken out, but the bias remains to the downside against the "Indus Water Treaty Gap." Ali Najib from Insight Securities remarked in his review that "markets thrive amidst positive vibes, not in warmongering!" Indeed, one can expect a short-lived rally but sustainable positive momentum is unlikely till the recent escalation between India and Pakistan gets settled. That's the tale of today's trading session, he asserted. Overall trading volumes decreased to 423.9 million shares compared with Friday's tally of 471.1 million. Shares of 449 companies were traded. Of these, 93 stocks closed higher, 313 fell and 43 remained unchanged. Bank of Punjab was the volume leader with trading in 23.7 million shares, falling Rs0.41 to close at Rs9.3. It was followed by Power Cement with trading in 21.6 million shares, falling Rs0.99 to close at Rs13.29 and WorldCall Telecom with 18.3 million shares, falling Rs0.03 to close at Rs1.26. During the day, foreign investors bought shares worth 209.2 million, the National Clearing Company of Pakistan Limited (NCCPL) reported.
Asia Times
24-04-2025
- Business
- Asia Times
Balochistan gold rush promises Pakistan mining boom
At the Pakistan Minerals Investment Forum 2025, Muhammad Ali Tabba, chairman of National Resources Limited (NRL) and CEO of Lucky Cement, unveiled what he claimed are hitherto unknown substantial gold and copper reserves in Balochistan's Chagai district. Announced in the company of Pakistan's Prime Minister Shehbaz Sharif and Army Chief General Muhammad Asim Munir, Tabba's claimed discovery signals a potential turning point for Pakistan's laggard mining industry at a time global gold prices are touching record highs of over US$3,400 per ounce. NRL, a wholly Pakistani-owned firm under the umbrella of Fatima Fertilizer, Liberty Mills, and Lucky Cement, obtained an exploration permit in Chagai in October 2023. Within 18 months, it claims to have pinpointed 16 mineral-rich locations across a 500-square-kilometer expanse, with drilling at the Tang Kor, Chagai site reportedly confirming significant deposits. Balochistan, Pakistan's largest province by area, is a geological treasure trove. The Chagai region lies within the Tethyan Magmatic Arc, a mineral-laden zone spanning Europe to Southeast Asia renowned for its copper and gold wealth. The nearby Reko Diq mine holds an estimated 5.9 billion tonnes of ore, grading 0.41% copper and 0.22 grams per tonne of gold, ranking it among the world's largest untapped reserves. NRL's Tang Kor website entry complements this, with early drilling showing copper concentrations from 0.23% to 0.48%, along with traces of gold and silver. Thirteen diamond drill holes totaling 3,517 meters all reportedly struck mineralized zones, underscoring the deposit's vast potential. Pakistan faces a dire economic situation with shrinking foreign currency reserves, mounting debt and import dependency, making this discovery a potential lifeline. The nation's mineral wealth, valued at $6 trillion, has been largely untapped. NRL's find, alongside developments like Reko Diq (where Barrick Gold targets 200,000 tonnes of copper and 250,000 ounces of gold yearly by 2028), could pump billions into Pakistan's economy and Balochistan's development. At the same time, the golden discovery is sparking age-old concerns about fair revenue allocation for and ecological impact on Balochistan, one of Pakistan's most undeveloped and historically restive regions. Ethnic Baloch insurgent groups frequently target resource and infrastructure investments in the province, in part on the grounds that they disproportionately serve Islamabad and its allied foreign interests, including Chinese companies, rather than local communities. NRL's partnerships with the Balochistan government and the Special Investment Facilitation Council (SIFC), plus a $100 million exploration budget for two new licenses, thus reflect a determined effort to capitalize on this opportunity. Balochistan's resource riches stand in stark contrast to its poverty. Supplying 35–45% of Pakistan's natural gas and brimming with minerals, the province still ranks lowest on basic human development metrics. Around 85% of the province's residents lack clean water, 75% have no electricity and 63% live in poverty. However, these newly discovered troves could shift Balochistan's dire narrative if handled prudently and equitably. The company's stated commitment to creating local jobs and community engagement aims, at least rhetorically, to help address these gaps. There is precedent to be doubtful about corporate vows of trickle-down. For instance, the Saindak mine, active since the 1970s, yields 15,800 tonnes of copper, 1.5 tonnes of gold and 2.8 tonnes of silver annually, yet benefits rarely reach locals. The economic potential is immense. Reko Diq could generate $70 billion in free cash flow and $90 billion in operating cash flow over decades, according to company estimates. Should NRL's deposits match this scale, their extraction could elevate GDP, create substantial well-paying jobs and fund badly needed Balochistan infrastructure. A homegrown player like NRL could keep more profits in-country, unlike past foreign-led ventures. Its agreements with the Oil and Gas Development Company (OGDC) and efforts to draw investors point to a scalable strategy. Yet, optimism must be tempered. Past projects like Saindak and Reko Diq have faced disputes over revenue splits and local neglect, with Balochistan once receiving just 2% of Saindak's earnings. For NRL's success, fair policies—guaranteeing royalties, local employment and investments in health, education and water—are essential. Frameworks like the Balochistan Development Plan and the China-Pakistan Economic Corridor (CPEC) Gwadar Port offer a blueprint but fair implementation will be critical. The economic upside, of course, comes with environmental trade-offs. Balochistan's climate, with summers hitting 53°C and winters plunging to -20°C in higher elevations, is as harsh as it is fragile. Mining demands substantial water and energy, both scarce resources in Balochistan. Saindak has faced backlash for depleting water and polluting groundwater with tailings and residues. Tang Kor's drilling and potential processing could worsen these problems, especially if NRL opts for downstream operations that could pollute rivers, hurt crops and aggravate health crises. Extracting copper and gold generates significant emissions—mining contributes 4–7% of global greenhouse gases, with copper production emitting roughly 2.5 tonnes of CO2 per tonne. At Reko Diq's scale, NRL's output could add hundreds of thousands of tonnes of emissions yearly, straining a region already hit by climate shifts like erratic rains and desertification. Dust from mining could also harm air quality and public health. Balochistan's climate is already under siege, and mining could amplify the woes. The province has seen a rise in extreme weather—floods in 2022 devastated crops and displaced thousands, while prolonged droughts have shrunk arable land. Chagai's arid ecosystem, home to sparse vegetation and rare species like the Balochistan bear, faces disruption from mining sprawl. Water-intensive operations risk drying up springs and wells, vital for nomadic herders and small farmers. Meanwhile, heavy machinery and blasting could destabilize the region's rugged terrain, increasing landslide risks in a province prone to seismic activity. Without careful and studied planning, NRL's projects could tip Balochistan's delicate environmental balance toward collapse. On the flip side, copper is vital for green tech like wind turbines and electric vehicles, potentially aiding global decarbonization. NRL's local control could enforce tougher environmental rules than foreign firms have historically followed. Solar energy or water recycling, used in some advanced mines, might mitigate the damage. The $100 million exploration fund could be deployed to support sustainability research, balancing profit with preservation. If NRL invests even a minor share donation into Balochistan's Climate Resilience Fund, it could build trust and social license among Chaghi's indigenous communities. NRL's Chagai find is a potential defining moment for Pakistan and Balochistan, but a positive and equitable outcome depends on learning from the past. The discovery could ease import reliance, shore up foreign currency reserves and lift Balochistan from poverty if substantial profits stay local. The 2025 Pakistan Minerals Investment Forum, where global eyes were suddenly fixed on Chagai, highlights the stakes. Saudi Arabia's possible 15% Reko Diq stake and Barrick's $2 billion investment suggest Pakistan's mineral wealth is prime for profitable extraction. Ultimately, NRL's gold and copper reserves are more than a geological windfall – they are crucial for Pakistan's pursuit of equitable and lasting economic progress. For Balochistan, the discovery could herald a future where riches benefit its people and environment, not just local elites or outsiders. The task ahead for Pakistan and Balochistan is to ensure this hope doesn't fade into another tale of squandered promise.
Express Tribune
15-04-2025
- Business
- Express Tribune
Bourse extends gains on rating upgrade
Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE Listen to article Pakistan Stock Exchange (PSX) on Tuesday continued its upward momentum as investors remained optimistic in the backdrop of positive triggers, particularly the upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. Analysts mentioned that a surge in global equities, alongside easing inflation and upbeat remittances data, drove the rally. The benchmark KSE-100 index, following continuous fluctuations, reached its intra-day high at 117,362 points after midday. Later, it started descending gradually and hit the day's low at 116,646 just before close. It ended the day with a gain of 385 points at 116,775. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher in the earnings season rally amid reports of Fitch Ratings' upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. He added that surging global equities, upbeat remittances data and lower inflation played the role of catalysts in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 385.47 points, or 0.33%, and settled at 116,775.50. In its review, Topline Securities commented that the PSX ended on a strong note, with the KSE-100 index gaining 385 points. The positive momentum was supported by the stability in global markets and the onset of corporate results season, prompting investors to take fresh positions. Gains were largely driven by key index movers including Engro Holdings, Lucky Cement, Oil and Gas Development Company, TRG Pakistan and Pakistan State Oil (PSO), which added 325 points, it said. In its report, Arif Habib Limited (AHL) remarked that early gains failed to sustain above the 117,000 level and the "Monday Tariff Gap" continued to cap gains. Some 51 shares rose while 45 fell on KSE-100. Lucky Cement (+1.58%), TRG Pakistan (+6.28%) and Oil and Gas Development Company (+1.08%) contributed the most to the index gains while Hub Power (-0.89%), Meezan Bank (-0.82%) and Mari Petroleum (-0.58%) were the biggest drags, AHL noted. It added that Fitch upgraded Pakistan's long-term foreign currency debt rating to B- from CCC+. The upgrade reflects Fitch's increased confidence that Pakistan will sustain its recent progress on narrowing budget deficits and implementing structural reforms, supporting its IMF programme performance and funding availability. Additionally, the government forecast production of 28.6 million tons of wheat, a decrease of 10.6% year-on-year. The brokerage house said that the "Monday Tariff Gap" between 117,600 and 118,600 points remained the key level for the current week. JS Global analyst Muhammad Hasan Ather stated that KSE-100 continued its upward trajectory, rising 0.8% to reach the intra-day high of 117,362 amid strong trading volumes. It was fuelled primarily by record-breaking remittances of $4.1 billion and the SBP governor's projection of $14 billion in foreign currency reserves by June 2025. Market sentiment received additional support from the Fitch rating upgrade. With improving external accounts and strong liquidity flows, "we expect continued positive momentum in the market, particularly in banking and export-oriented sectors", the analyst said. Overall trading volumes decreased to 479.5 million shares compared with Monday's tally of 484.5 million. The value of shares traded during the day was Rs30.4 billion. Shares of 447 companies were traded. Of these, 219 stocks closed higher, 174 fell and 54 remained unchanged. Cnergyico PK was the volume leader with trading in 32.1 million shares, falling Rs0.11 to close at Rs8.53. It was followed by TRG Pakistan with 21.5 million shares, gaining Rs4.01 to close at Rs67.90 and The Bank of Punjab with 20.8 million shares, falling Rs0.19 to close at Rs11.17. During the day, foreign investors sold shares worth Rs527 million, the National Clearing Company reported.
Express Tribune
08-04-2025
- Business
- Express Tribune
PSX rebounds on back of global recovery
Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE Listen to article Pakistan Stock Exchange (PSX) on Tuesday staged a robust recovery from the previous day's widespread sell-off as the benchmark KSE-100 index hit an intra-day high of 116,692, with gains of 1,783 points. The index, which closed the day at 115,532, up 623 points, was lifted by across-the-board interest in stocks amid a rebound in global equities and crude oil prices. Analysts attributed the bullish close to institutional support, fuelled by the anticipated release of second International Monetary Fund (IMF) loan tranche next month. Further expected monetary easing by the State Bank of Pakistan (SBP) and the government's commitment to tackling circular debt were the other positive triggers. Analysts highlighted that although the market showed signs of recovery, the durability of the rally would depend on global developments, specifically post-implementation of Trump's new trade tariffs on April 9. According to Ahsan Mehanti of Arif Habib Corp, Pakistan's stocks staged recovery on the back of across-the-board activity amid a rebound in global equities and crude oil prices as investors eyed negotiations on Trump's tariff levies. He added that institutional support, driven by the anticipated release of IMF's tranche next month, alongside potential SBP policy easing and the government's resolve to address the Rs1.5 trillion worth of circular debt, played the role of catalyst in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 622.95 points, or 0.54%, and settled at 115,532.43. In its market review, Topline Securities commented that KSE-100 saw a day of recovery, in line with global trends. The positive momentum was mainly driven by strong performances from Lucky Cement, Mari Petroleum, Meezan Bank, Bank AL Habib and Bank Alfalah, which contributed 688 points to the index, it said. Arif Habib Limited (AHL) commented that while retracing Monday's sharp decline, the KSE-100 rallied up to 116,700 before closing at 115,532, up 0.54%. Some 72 shares rose while 23 fell with Lucky Cement (+6.65%), Mari Petroleum (+5.05%) and Meezan Bank (+1.46%) contributing the most to index gains. On the flip side, United Bank (-3.52%), Engro Fertilisers (-1.97%) and Systems Limited (-2.15%) were the biggest index drags, it noted. AHL added that National Resources, a joint venture between Lucky Cement and Fatima Fertiliser with 33.33% shareholding each, made a significant copper, gold and silver discovery in Chagai, Balochistan. "Monday gap" remains the main obstacle to KSE-100, below which near-term bias is to the downside, it said. Ali Najib from Insight Securities remarked that post-Monday sell-off, the PSX exhibited some signs of recovery. The KSE-100 commenced the day on a positive note with an enormous gain of 1,100 points. The strong momentum continued until the market reached the intra-day high at 116,692, translating into a rise of 1,783 points, he said. However, "yesterday's brave value hunters became profit takers today as they started to trim their positions at high levels". It weighed on bullish sentiment and ultimately led the index to shed some earlier gains and called the day at 115,532, Najib said. He added that after witnessing market action, one would ask whether it was a "genuine recovery" or was a "dead cat bounce". "To know the answer to this question, we need to wait and keep an eye on market behaviour post-April 9, the day when new trade tariffs will be implemented globally, and observe their repercussions." Overall trading volumes decreased to 530.7 million shares compared with Monday's tally of 710.8 million. Shares of 454 companies were traded. Of these, 273 stocks closed higher, 127 fell and 54 remained unchanged. The value of shares traded was Rs33.7 billion. Cnergyico PK was the volume leader with trading in 121.7 million shares, gaining Rs0.57 to close at Rs8.4. It was followed by Bank Alfalah with 32.6 million shares, gaining Rs1.87 to close at Rs75.3 and K-Electric with 19.04 million shares, gaining Rs0.09 to close at Rs4.28. During the day, foreign investors sold shares worth Rs1.7 billion, the National Clearing Company reported.
