Facebook to make stock market debut

SAN FRANCISCO: Facebook will make its stock market debut in May with a record-setting initial public offering of shares, according to a report Wednesday in the Wall Street Journal.

The world's leading online social network has stopped selling shares on the secondary market in order to get a precise count of investors, the Journal said, citing unnamed sources.

Facebook on Tuesday modified its filing with the US Securities and Exchange Commission to warn potential investors that a patent lawsuit against the company by Internet pioneer Yahoo! could deliver a significant blow to its business.

"If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations," Facebook said in amended paperwork submitted to the SEC.

Yahoo! filed suit against Facebook in a US district court in California on March 12, accusing the company of infringing on 10 of its patents in several areas including advertising, privacy and messaging.In the suit, Yahoo! said that Facebook's growth "has been based in large part on Facebook's use of Yahoo!'s patented technology."

Facebook in February filed to go public and could raise as much as $10 billion in the largest flotation ever by an Internet company on Wall Street.

The paperwork filed for the initial public offering provided the first glimpse of the financial details of the web giant launched eight years ago by Mark Zuckerberg from his Harvard University dorm room.

Facebook, which is shifting operations to a former Sun Microsystems campus in the California city of Menlo Park, reported net income of $668 million last year.

Revenue nearly doubled to $3.7 billion in 2011, with most of it coming from targeted advertising gleaned from personal information shared by the hundreds of millions of users of the platform.

Facebook - the leading social network in all but six countries, notably China and Russia - said it has more than 845 million users including 483 million who log in daily.

Facebook's value has been estimated at between $75 billion and $100 billion. (AFP)

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Asian markets slip on China fears

HONG KONG: Asian stocks were mostly lower on Wednesday, weighed down by concerns over a slowdown in China's economy, while oil prices edged back up after big falls in New York.

Receding concerns over the eurozone debt crisis provided support for the euro, which continued its thrust upwards against the yen and greenback.

Tokyo fell 0.21 percent by the break in the first trading session after closing Monday at its highest level since the quake-tsunami disaster in March last year. Sydney was 0.33 percent off and Seoul fell 0.62 percent.

Hong Kong shed 0.33 percent and Shanghai was 0.32 percent lower.

Concerns about China were raised on Tuesday when BHP Billiton said the country's demand for iron ore looked to be flattening as its economy slows, with exports weakening.

The comments by BHP's iron ore president Ian Ashby added to recent data that showed China's biggest trade deficit in February since records began, manufacturing activity plodding and inflation at its lowest since June 2010.

It also comes after China cut its growth target to 7.5 percent for 2012 from last year's 9.2 percent growth and 10.4 percent in 2010.

Regional countries rely on fast-growing China to help drive their own economic expansion. (AFP)

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KSE comes to a flat end on profitbooking

KARACHI: Stocks at the premiere bourse ended almost flat on Wednesday as investors chose to book profits after the index closed more than 1.7 percent higher the previous day, but losses were curtailed as bargain hunters accumulated middle tier shares, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.08 percent, or 10.21 points, lower at 13,293.12 points.

Volume rose to 266 million shares, compared with 247.8 million traded on Tuesday.

"There was some selling from institutions at higher levels but retail investors were actively buying middle tier shares such as Jahangir Siddiqui and TRG Pakistan," said Shuja Rizvi, a dealer at brokers' Al-Hoqqani Securities Ltd.

Volume leader Jahangir Siddiqui ended 4.34 percent higher at 18.74 rupees, while TRG Pakistan closed 12.95 percent higher at 4.10 rupees. (Reuters)

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Asian shares down on weak China data

HONG KONG: Asian markets were mixed Thursday as more weak data out of China added to concerns over a slowdown in the economy, while the yen was lifted after Japan posted a surprise trade surplus.

The latest batch of downbeat news from Beijing added to already soft trading sentiment after Wall Street provided an anaemic lead owing to poor US housing figures.

Tokyo rose 0.40 percent by the break and Sydney was 0.37 percent higher but Seoul fell 0.18 percent while Hong Kong shed 0.14 percent and Shanghai gave up 0.41 percent.

HSBC's preliminary Purchasing Managers' Index (PMI) showed China's manufacturing activity contracted further in March, continuing a trend that began in November.

The PMI fell to 48.1 in March compared with a final reading of 49.6 in February, HSBC said. A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.

The figures will fuel fears that the world's number-two economy is losing its strength after a string of negative data that have showed a marked slowdown in inflation and a record trade deficit.

Beijing's decision to target growth of 7.5 percent this year - below eight percent for the first time since 2004 - has also added to weak sentiment.

he export-dependent economy has come under severe strain as key markets in the United States and Europe struggle to get back on track. (AFP)

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Profitbooking tones down trade at KSE

KARACHI: Stocks at the apex capital market ended lower in dull trade on Thursday as cautious investors choose to book profits ahead of Friday's public holiday, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.15 percent, or 19.85 points, lower at 13,273.29 points.

Volume fell to 103 million shares, compared with 266 million traded on Wednesday.

"Due to the long weekend, investors preferred to remain on the sidelines and volume remained confined towards small cap stocks such as JSCL (Jahangir Siddiqui Co Ltd) and ANL (Azgard Nine)," said Samar Iqbal, a dealer at Topline Securities.

Volume leader JSCL ended 5.38 percent higher at 19.58 rupees and ANL closed 14.53 percent higher at 7.88 rupees. (Reuters)

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Asian markets mostly up

HONG KONG: Asian markets were mostly higher on Monday following a positive lead from Wall Street and bargain hunting after last week's losses but gains were capped by lingering concerns over China's economy.

Tokyo was 0.20 percent higher by the break and Sydney added 0.18 percent while Hong Kong was 0.16 percent higher and Shanghai was flat while Seoul fell 0.46 percent.

Traders were given few leads save Friday's positive close on Wall Street, where the Dow Jones index capped a three-session losing streak despite weak US housing data.

"Risk sentiment starts the week in positive mode," Credit Agricole said in a note to clients, according to Dow Jones Newswires.

However, it added that end-of-the-quarter "window-dressing", or book balancing, had also played a part in selling pressure, while warning "there are still plenty of factors to dent risk appetite over coming days, not least of which is the gyrations in oil prices".

Regional markets were hit last week by a combination of poor data from China indicating a slowdown in the world's number two economy, weaker-than-forecast US housing figures and a bout of profit-taking after a strong rally at the start of 2012.

Among the big gainers of the day was Australia's Qantas, which rose 2.6 percent after it announced plans to launch a joint-venture budget carrier for Asia with China Airlines.

Jetstar Hong Kong will launch next year and fly short-haul routes, including in China, Japan, South Korea and Southeast Asia, the firms said in a statement as they try to tap the huge Chinese market.

On currency markets the euro bought $1.3269 and 109.69 yen in Tokyo morning trade, compared with $1.3268 and 109.28 yen in New York late Friday. The dollar firmed to 82.74 yen from 82.33 yen.

Investors are looking to speeches later in the day by US Federal Reserve chief Ben Bernanke and Philadelphia Fed president Charles Plosser.

With two other Fed regional bank presidents voicing opposition to any new rounds of easing, further resistance from Plosser may lead Fed policymakers to take the view that additional easing measures were unnecessary, said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.

"This could support the dollar against the yen," she said.

The euro was also buoyed by signs from Germany indicating it was contemplating allowing the eurozone's new, permanent rescue fund run in tandem for a while with its temporary predecessor.

Though the total lending capacity of the permanent fund, or European Stability Mechanism, would stay at 500 billion euros, the move would increase the combined firewall to 700 billion euros.

While boosting the fund has been regarded in international circles as essential in saving the currency bloc from fresh turmoil German Chancellor Angela Merkel had previously resisted such a measure.

On oil markets, New York's main contract, West Texas Intermediate crude for delivery in May, shed 25 cents to $106.62 per barrel while Brent North Sea crude for May was down 15 cents at $124.98.

Gold was at $1,664.05 an ounce at 0300 GMT, compared with $1,650.60 late Friday. (AFP)

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Stocks prices end flat at KSE

KARACHI: Stock prices at Karachi Stock Exchange (KSE) ended almost flat on Monday as investors booked profits in blue chip companies such as Oil and Gas Development Co Ltd (OGDCL) but bargain hunters accumulated shares of middle-tier companies, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.10 percent, or 13.44 points, higher at 13,286.73 points.

Volume rose to 278 million shares, compared with 103 million traded on Thursday. Friday was a public holiday.

"Stocks closed higher amid investor interest in second and third tier stocks," said a stock dealer.

Volume leader Azgard Nine ended 12.71 percent higher at 8.87 rupees and TRG Pakistan closed 10.78percent higher at 4.42 rupees. (Reuters)

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KSE 100-share index gains 163 points

KARACHI: The Karachi Stock Exchange (KSE) benchmark 100-share index ended 1.23 percent, or 163 points, higher at 13,449.73 points. Volume fell to 166 million shares, compared with 278 million traded on Monday.

Stocks ended more than 1.2 percent higher on Tuesday led by the cement sector, but volume was dull as investors preferred to stay on the sidelines following violence in Karachi, the country's financial hub, dealers said.

"Concerns about law and order in the city affected the sentiment at the market today," said director at Arif Habib Corp.

"Investors looked keen to invest in the cement sector due to expectations of good earnings this year," said a dealer at Topline Securities. (Reuters)

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Karachi stocks end at four-year high

KARACHI: Stocks at the apex bourse climbed 0.9 percent to close at a four-year high on Wednesday, led by banking and cement shares on hopes of healthy earnings, dealers said.

The Karachi Stock Exchange benchmark 100-share index ended125.68 points higher at 13,575.41 points, its highest close since May 2008. Volume rose to 450 million shares, compared with the 166 million shares traded on Tuesday.

"National Bank of Pakistan once again closed at its upper limit as investors hoped that 2012's earnings will be better than last year," a dealer said, adding: "Cement stocks continued to remain in the limelight".

NBP closed 5.0 percent higher at 43.06 rupees, with D.G. Khan Cement up 2.3 percent to end at 34.45rupees. (Reuters)

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Asian markets lower on weak data

HONG KONG: Asian markets slipped on Thursday as more weak economic data out of the United States and Britain stoked concerns about the global economy.

Oil prices retreated after a report showed a bigger-than-expected rise in US stockpiles - indicating slowing demand - while they were also weighed by talk in some Western nations of tapping reserves to nullify a recent spike in costs.

Tokyo stocks fell 0.67 percent, or 67.78 points, to 10,114.79, Sydney was 0.13 percent lower, losing 5.6 points to end at 4,337.9, and Seoul fell 0.85 percent, or 17.33 points, to 2,014.41.

In the afternoon Hong Kong shed 1.43 percent and Shanghai lost 0.13 percent.

The losses followed a fall on Wall Street after figures from the US Commerce Department showed a slower-than-expected rise in new orders for manufactured durable goods.

That came after an index of US consumer confidence on Tuesday showed a slip, while home prices continued to fall in January.

The results - added to a cool assessment of the US economy by Federal Reserve chief Ben Bernanke - come after a run of upbeat jobs data that had lifted hopes the recovery is picking up. (AFP)

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KSE tad lower as investors book profits

KARACHI: Local stocks ended slightly lower on Thursday as investors booked profits at higher levels after the market closed at a four-year high the previous day, dealers said.

The Karachi Stock Exchange benchmark 100-share index ended 0.12 percent, or 16.31 points, lower at 13,559.10. The KSE-index ended at 13,575.41 points on Wednesday, its highest close since May 2008.

Volume fell to 344.56 million shares, compared with the 450 million shares traded on Wednesday.

"Some profit taking was witnessed at Karachi Exchange ... however active participation was seen in Lafarge Pakistan and Bank Islami and National Bank closed at upper limit in anticipation of excellent results for the quarter ending March 2012," said Samar Iqbal, a dealer at Topline Securities Ltd.

Volume leader Lafarge Pakistan closed 14.39 percent higher at 4.53 rupees, National Bank of Pakistan rose 4.99 percent at 45.21 rupees, and Bank Islami gained 14.16 percent at 8.06 rupees. (Reuters)

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Stocks at KSE scale a 4-yr peak

KARACHI: Trade at the main stock market ended on a fresh four-year high on Friday led by buying in cement shares which are benefiting from hopes of healthy profits this year, dealers said.

The Karachi Stock Exchange benchmark 100-share index ended 1.49 percent, or 202.66 points, higher at 13,761.76, its highest close since May 2008.

Volume rose to 413.94 million shares, compared with 344.56 million shares traded on Thursday.

"Leading cement manufacturers like Lucky Cement and DGKC (D.G. Khan Cement) closed at the upper limit," said Samar Iqbal, a dealer at Topline Securities.

Volume leader Lafarge Pakistan closed 10.05 percent higher at 4.82 rupees, D.G. Khan Cement rose 4.99 percent to close at 36.37 rupees and Lucky Cement ended 5 percent higher at 113.45 rupees. (Reuters)

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Pakistani stocks make strides in 1Q2012

KARACHI: According to a market report local stocks showed a sterling performance in 1Q2012 in the face of challenging security environment, prevalent energy crisis, and structural weakness bearing on the economic condition.

The report said that during the three-month period, the benchmark KSE100 index posted a gain of 2,414pts or 21% (US$20%).

Moreover, the float based KSE-30 rallied by 19% (US$18%) while MSCI Pakistan posted a handsome gain of 17%. Market capitalization also inched up 19% during the quarter to reach US$39bn (Rs3.5tn).

The 21% gain in 1Q2012 was the highest return after 9-quarters. Interestingly this was the highest 1Q gain since 2006.

Rejuvenated interested particularly from retail investors has also added much needed depth to the market with average trading value increasing to 196mn shares or Rs4.7bn (US$52mn). In terms of shares last quarter volume has come to pass after 14 quarters and in terms of value after 3 quarters.

The major impetus to market primarily came from Finance Minister's acceptance of SECP's gain tax revamp proposals on Jan 21, 2012. This has reignited the investors particularly of individual investors, which were sidelined after imposition of CGT & its cumbersome calculation methodology as most of gains generated in last 36 years were not properly declared.

Now investors hope that tons of money will come back to the stock market once the Presidential Order is issued. Moreover, dividends payouts by listed firms were also better than expected which helped market to recover.

Lastly, foreign fund managers (as of March 29) turned net buyers after a gap of 3-quarters. They bought shares worth US$189mn & sold US$164mn resulting in net buying of US$25mn.

The performance of Pakistan market in the outgoing quarter was far better than its regional peers. MSCI Pakistan gain of 17% (As of March 29) was better than MSCI Asian EM and MSCI FM Asian that posted an improvement of 12% and 8%, respectively. Similarly, amongst the Asian FM markets as defined by MSCI, Pakistan remained second to only Vietnam.

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CNG likely to go up by Rs11.58/kg

ISLAMABAD: The government is likely to raise the Gas Development Surcharge on compressed natural gas by 20 percent, which would push the per kilogram price of the CNG up by at least Rs11, 

According to sources privy to the matters, Ministry of Petroleum has recommended that CNG’s price should be at least 55 percent of the gasoline's per liter price, which currently stands at 49 percent.

A hike in the levy is seen raising the CNG retail price by Rs11.58 in Khyber PakhtunKhwa, Balochistan, and parts of Potohar region, whereas in Sindh, Punjab, and some other parts of Potohar it could go up by R9.93.

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Gold shines up at Rs49,414 per 10 grams

KARACHI: Gold surged by Rs 129 to Rs 49,414 per 10 grams in the local market Friday as its international price improved to $ 1,665 an ounce, market sources said.

According to Karachi Saraf Association official, tola (11.664 grams) price also went up by Rs 150 at Rs 57,650.

Silver closed higher at Rs 925.71 per 10 grams. (APP)

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LPG price drops by Rs22 in two days

ISLAMABAD: Chairman of Liquefied Petroleum Gas Distribution Association, Irfan Khokher Saturday said that the LPG prices have reduced by Rs22/kilogram in the last two days,

He said, "Distributors have decreased the LPG prices by Rs22 per kilogram

throughout the country owing to a bearish trend in the international markets."

The new price has been set at Rs110/kilogram taking effect from April 3, 2012.

On the other hand, according to chairman of FPCCI Standing Committee on LPG and Pattern in Chief of All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan, the international price has plunged by $ 202 to $ 993 per ton for April 2012, slashing its import price by Rs 18,400 to Rs 122,000 per ton.

He said Saudi Armco Contract Price (CP) has dropped due to fall in prices of butane by $ 185 per ton while propane is up by $ 240 per

ton.

Hadi pointed out that due to fall in international price, the domestic price of LPG will be decreased by Rs 18 per kilo, 11.8 kilo cylinder by Rs 212 and 45.4 kg cylinder by Rs 835.

He stressed upon local producers to reduce their price in the country on April 3, 2012, in accordance with the drop in international prices so that the falling sales of LPG are stabilized.

Hadi said that LPG prices have declined after a long time and this decrease should be passed on to local consumers who have abandoned the use of LPG due to extraordinary high prices.

He underlined the need for an increase in local production, which has shrank to 900 to 1100 ton per day in the last one year. Local oil refineries should also reduce their shut downs to meet local demand

for LPG, he noted.

He observed that LPG use in automotive sector has been slashed by 60 percent due to uncontrolled price jacks by local producers.

Similarly, more than 1000 LPG outlets have been closed down due to

price hike.

Hadi argued that local LPG production is de-linked with international price, yet local producers are increasing prices in accordance with Aramco prices. He noted that LPG business is rendered unattractive in the country due to very high prices.

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PASSCO to sell 0.450mn tonnes of wheat

LAHORE: Pakistan Agriculture Storage and Services Corporation Limited (PASSCO) has contacted interested local buyers to sell 0.450 million tonnes of wheat and made agreement in this regard.

According to PASSCO sources, transportation of wheat is going on and this process would continue till April 15,2012. (APP)

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Pakistan seafood exports surge by 15pc

Pakistan seafood exports surge 15pc in 8 months

ISLAMABAD: The exports of fish and fish preparations surged by 14.69 percent during the first eight months of current fiscal year (2011-12) against the corresponding period of last year.

The exports of fish and fish preparations were recorded at $195.284 million during July-February (2011-12) as against the exports of $170.274 million during July-February (2010-11), according to data of Pakistan Bureau of Statistics (PBS).

However, in terms of quantity, the fish exports witnessed nominal increase of 0.34 percent by going up from 74,265 metric tons to 74,518 metric tons.

On month-on-month basis, the seafood exports also witnessed positive growth of 13.88 percent during February 2012 when compared

to the same month of last year.

The fish exports during February 2012 were recorded at $21 million against the exports of $18.441 million during February 2011.

However, as compared to the exports of $21.401 million recorded during January 2012, the exports during February witnessed negative growth of 1.35 percent, the data revealed.

In terms of quantity, the fish exports increased by 5.57 percent in February 2012 when compared to the exports of February 2011, however decreased by 2.62 percent when compared to the exports

of January 2012.

The overall food exports from the country witnessed nominal increase of 0.59 percent during the first eight months by going up from $2.601 billion during July-February (2010-11) to $2.616 billion in July-February (2011-12).

The major food products that witnessed positive growth in exports included.

The food products that witnessed increase in exports during the period under review included rice (other than basmati), exports of which increased by 2.91 percent, fruits (15.02%), leguminous vegetables (1,315%), tobacco (37.85%), oil, seeds, nuts and kernels (59.84%), meat and meat preparation (16.46%) and other food products

(45.80%).

The commodities that witnessed negative growth in exports included basmati rice (17.78%), vegetables (36.69%), wheat (53.22%) and spices (1.49%).

The overall exports from the country during the period under review witnessed negative growth of 0.48 percent by going down from $15.263 billion to $15.189 billion.

Imports into the country, during the period, increased by 16.36 percent by going up from $25.600 billion to $29.788 billion.

Based on the figures, the trade deficit during the first eight months of the current fiscal year was recorded at $14.599 billion, against the deficit of $10.337 billion last year, showing an increase of 41.23 percent. (APP)

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Profit rates on savings schemes increase

ISLAMABAD: The Central Directorate of National Savings (CDNS) has revised the profit rates on National Savings Schemes effective from April 1.

According to a notification, the profit rate on Special Savings Certificates (Registered) Accounts has been increased from 11.67% to 11.87% per annum. Similarly the profit rate on Regular Income Certificates has been enhanced from 11.76 % to 12.12% p.a.

Likewise, the profit rate on Bahbood Savings Certificates has been raised from 13.86% to 14.28% p.a.

The profit rate on Pensioner Benefit Account has been increased from 13.86% to 14.28% p.a., on Defence Savings Certificates from 11.90% to 12.33% and on Savings Accounts from 8.25% to 8.40% p.a.

Meanwhile, Zafar M.Shaikh, Director General of National Savings, chaired a meeting at the Directorate of Inspection and Accounts here on Friday to monitor the progress in respect of outstanding recoveries,

pending audit position, annotated replies to audit reports and random surprise visits of National Savings Centers by the officers posted at DIA, Zonal Heads as well as through Inspecting Officers.

The meeting attended among others by Muhammad Anwar, Director (Admn), Raja Khan, Director (DIA),Talib Hussain Awan, Joint Director and Nadir Zaman Khan, Assistant Director. Raja Khan, Director, DIA given detail briefing to worthy Director General.

The Director General stressed that the outstanding recoveries should be made on war footing basis and all types of audit observations may be settled on priority.

In this context the Director General and the Deputy Director will personally visit all the regions to settle the issue on the spot. (APP)

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Rupee remains strong in currency market

KARACHI: In the currency market, the rupee ended firmer at 90.61/66 to the dollar, compared with Thursday's close at 90.62/67 amid a lack of import payments.

The rupee has been supported recently by remittances from Pakistanis overseas, which rose by nearly a quarter to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the 2010/11 period.

In February, remittances totaled $1.16 billion.

In the money market, overnight rates were flat at the top level of 11.90 percent. (Reuters)

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Euro rebounds in Asian trade

TOKYO: The euro rebounded against the dollar and yen in Asia on Friday after slipping against the greenback overnight in New York as eurozone finance ministers prepare for high-level debt talks.

The euro bought $1.3352 and 109.56 yen in Tokyo trade, compared with $1.3301 and 109.64 yen in New York.

The dollar edged down to 82.04 yen from 82.42 yen in New York.

Finance ministers from the 17-nation currency bloc meet on Friday and Saturday in Copenhagen to discuss expanding the eurozone's financial firewall by combining the European Financial Stability Facility, used to rescue Portugal, Ireland and Greece, with the permanent European Stability Mechanism.

The move would temporarily raise the size of the rescue mechanism to 940 billion euros ($1.25 billion), seen as necessary to stem market volatility tied to the eurozone's fiscal woes.

But member countries are divided over how much should be laid aside, with France and the European Commission eyeing near to a trillion euros in funds while Germany, Europe's top economy and paymaster, remains much more cautious.

Europe's partners from Washington to Tokyo and including groups such as the International Monetary Fund want to see the bloc ring-fenced as effectively as possible against a new crisis that would affect the world economy. (AFP)

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Oil prices higher in Asian trade

SINGAPORE: Crude rebounded in Asian trade Friday after the United States said no decision had been made on tapping strategic oil reserves, analysts said.

New York's main contract, West Texas Intermediate crude for delivery in May, gained 66 cents to $103.44 per barrel while Brent North Sea crude for May settlement was up 47 cents at $122.86.

"Despite the widespread speculation, nothing has come to fruition so far about the release of oil reserves and I think the market is reacting to that," said Justin Harper, market strategist at IG Markets Singapore.

White House spokesman Jay Carney said Thursday: "I will say, as I have said repeatedly, that this option is on the table, but no decisions have been made and no specific actions have been proposed."

Oil prices had dipped in recent days on speculation that major consumer nations such as the United States, Britain and France could tap their strategic reserves to increase supply.

Prices also remain supported by wariness over a possible supply crunch brought on by Western sanctions on Iranian oil.

"The concerns are still there about Iran and a disruption in the Middle East," said Harper.

Output from one of OPEC's biggest producers has shrunk considerably on the back of sanctions from the US and its Western allies, who believe that Tehran is working towards nuclear weapons capability despite Iranian denials. (AFP)

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Russia eyed for Iran-Pak gas pipeline

ISLAMABAD: Pakistan said Thursday it would seek Russian funding for a multi-billion dollar gas pipeline from Iran amid Chinese reluctance to invest in the project over fears it could be hit by sanctions.

The quest for alternative sources of funds began when the Industrial and Commercial Bank of China (ICBC) failed to sign up to a consortium to finance Pakistan’s $1.5 billion share of the project.

“Pakistan’s technical delegation will visit Moscow early next month to have discussions on this subject,” said foreign ministry spokesman Abdul Basit.

The Pakistan team will hold talks with relevant officials and different companies, including Russian gas giant Gazprom, Basit said.

A petroleum ministry official confirmed that Russia was a possible source of funding, given that there has still been no formal response from ICBC.

The United States wants Islamabad to abandon the project because of sanctions against Iran over its nuclear programme, but Pakistan has insisted it is vital in helping to overcome a debilitating energy crisis.

Pakistan and Iran signed a deal in 2010 in which Tehran would supply natural gas to its eastern neighbour from 2014, with sales to reach 750 million cubic feet to one billion cubic feet per day by mid-2015.

Pakistan, which produces just 80 per cent of its own electricity needs, has presented the $7.5 billion gas project as a partial answer to the energy crisis, which has led to blackouts and has suffocated industry. (AFP)

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