18-Business Pages- 14th November_Layout 1 11/14/2012 6:48 AM Page 1
Wednesday, 14 November, 2012
‘Whatever is doable, shall be done’ Addressing entrepreneurs at LCCI, PM discussed all things fiscal LAHORE
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RIME Minister Raja Pervaiz Ashraf said on Tuesday that country’s progress and prosperity hinges on well-being of the business community and the government is making all-out efforts to ensure enabling environment for the trade and industry. Addressing the business tycoons at Lahore Chamber of Commerce and Industry here, the Prime Minister said, “If business prospers, the country will automatically be on the track to economic growth.” Acting Punjab Governor, Rana Muhammad Iqbal, Federal Finance Minister, Dr Abdul Hafeez Sheikh, Federal Minister for Kashmir Affairs, Mian Manzoor Ahmad Wattoo, Federal Commerce Secretary Munir Qureshi, FBR Chairman, Ali Arshad Hakeem, LCCI President, Farooq Iftikhar and other-office bearers as well as a large number of industrialists, businessmen and traders were also present. The prime minister said the PPPled government was ready to implement all doable proposals on any sort of issue/project by the business community without any let and hindrance, because it believed in private sector’s growth. The government and the private sector were on the same page to rid the country of
economic ills being faced today, he added. The Prime Minister said the government was working on a number of alternate energy resources including coal and solar power. He said the solar energy projects were not that inexpensive as being portrayed, however, with the passage of time the solar panels would be in easy access of the consumers. Raja Pervaiz said that on the advice of Dr Samar Mubarik Mund, the government gave instant response to Thar Coal gasification, as a number of such projects was well underway. He, however, made it clear these projects entails a lot of many things including
power generation stations and transmission lines for their connectivity with the national grid that would definitely take time to trickle its effects down to the common man. The Prime Minister said the government was also focusing on the hydel component of the electricity and had expedited work on all ongoing hydel projects as well as those on the drawing board. If all the federating units develop a consensus on Kala Bagh Dam today, the government would initiate construction of the dam immediately, he maintained. The Prime Minister said that it was not only Pakistan but many other countries including India, Middle East, Bangladesh, Bhutan and other
Engro has gas troubles Fertiliser business of Engro to remain in loss due to gas curtailment KARACHI STAFF REPORT
With continuous curtailment and government’s considerations to allocate gas to other sectors ahead of the general elections, the market analysts foresee the fertilizer business of Engro Corporation to remain affected. After evaluating various gas scenarios, the analysts at Topline Research have concluded that Engro Corporation’s earnings would range from Rs 5 to Rs9 per share in next couple of years (20132014). Where other businesses like food, power and terminal would continue to perform, the fertilizer business would remain in losses at least till 2014 impacting the overall profitability of one of the largest conglomerate of Pakistan. “Hence given unpredictability of cash flows in next few years, we have valued fertilizer business on net realizable method,” said Topline analyst Farhan Mahmood. For Engro, the analyst said, gas sup-
plies would remain a concern at least for next two years. Among various longterm options proposed, the construction of a dedicated pipeline to Engro would take at least two years, assuming 0.5km of pipeline is constructed each day, after the final approval of the project. “Our understanding suggests that the construction of the pipeline would be started at different locations from each gas field,” Farhan said. In the proposed scheme, he said, the new plant was likely to get gas from Kunnar Pasakhi, near Hyderabad, which has a distance of 300km from Dharki where the new Enven plant is located. Moreover, some portion of gas from Reti Maru, located near Ghotki, was also likely to supply gas to Enven. “In such a scenario, we believe the full operations are expected to commence somewhere in mid of 2015,” said the analyst. Farhan says a hope that can restore gas to Engro’s new plant for few months was the change in the current political set up. “In case PPP-led coalition government does not come to power in the up-
coming election, chances are high that decent quantity of gas could be allocated to Enven,” he said. In this case also, the formation of government and allocation of ministries would take another nine months. “Thereafter, negotiations would be held and that is why we don’t expect any substantial gas allocation in the calendar year 2013.” The analyst said despite various shor-term options being discussed including diversion of idle gas from Guddu to Even and gas supplies on rotational basis, gas availability to both the plants, old and Enven, was highly unlikely. “This is due to growing gas demandsupply gap in upcoming winter and government’s top priority to supply gas to power units in the run-up to elections in order to overcome load shedding,” he said. In such a scenario, Farhan said, only Enven might be seen, which is currently operating on Mari gas network, continuing its production in 2013 while old plant to remain suspended.
SAARC countries were also facing the demand and supply issue of the electricity. He also announced to take LCCI as member in the Energy Crisis Committee under his (Prime Minister) chairmanship. He said the government has also reset its priorities by laying greater focus on improving law and order situation, fulfill the gas and electricity requirements of the business and industry, equitable electricity loadshedding and promotion of private sector. “We believe in our people, particularly the businessmen and industrialists that together we will steer the country out of prevailing challenges,” he added. With regard to trade with India, the Prime Minister said that government was committed to facilitate the business community, adding, the government was watching the entire development on the subject and the Pak business community’s interests would not be compromised. Raja Pervez said the government, and industry and business community were not opponents but basically, “We are one, and our destination is only and only the development of Pakistan and well-being of her people. We have to promote this aspect that all institutions- Supreme Court, Armed Forces, Parliament, media and business community- are ours.” The prime minister said that despite all odds, the PPP-led coalition government
manage effectively to promote the democracy as well as implement 75 percent of its (PPP) manifesto by achieving fiscal target; bringing down the inflation rate to a single digit, while the GDP was also all around in agriculture and manufacturing sectors. Earlier, highlighting the economic steps, the Federal Finance Minister Dr. Abdul Hafeez Sheikh said that despite being a political government, it had stabilized electricity tariff; deregulated the petroleum prices and rationalized the gas prices, besides, reducing the government expenditures up to 7 percent annually. The federal government, he added, had strengthened the provinces by giving them fiscal and resources autonomy, and the provinces received Rs 5000 billion, while, an additional amount of Rs 1000 billion was also given to provinces under the changed National Finance Commission. Dr. Hafeez said the federal taxes showed up to Rs 350 billion more revenue collection during last fiscal year, adding, the national tax deficit could be eliminated with the cooperation of provincial governments. Under the new tax reforms, he said, the federal government had abolished Regulatory Duty on 392 out of the total 397 items, while, Federal Excise Duty (FED) was either abolished or brought down to half on various items and the FED would completely be abolished within next two years.
Incumbent govt has given Rs 1,400 bn electricity subsidies: Dr Hafeez Sheikh
ISLAMABAD ONLINE
Federal Minister for Finance and Revenue Dr.Abdul Hafeez Sheikh has said that the incumbent government has given Rs.1400 billion on electricity subsidies in last four and half years. Addressing at the 28th Annual General Meeting and Conference organized by Pakistan Society of Development Economics here on Tuesday, Dr.Abdul Hafeez
Sheikh said the government was pursuing regional balance in development focusing on Balochistan, Gilgit-Baltistan and Federally Administered Tribels Areas (FATA) where special projects have been launched to improve the socio-economic conditions of the people. He said that after 7th NFC award the provinces have been given more resources to improve the socio-economic conditions of the people as the government had provided Rs.5000 billion to the provinces which will help them to manage their affairs whereas under the changed formula of NFC, additional Rs.1000 billon were given to the province in the last two years. He said Rs. 260 billion were also distributed among 3 million poor families in the country. “People who are not paying their due taxes will be brought under tax net and those people who are already paying their taxes are being facilitated by reducing tax burden on them,” finance minister said. He said during ongoing financial year 2012-13 the government will give special focus on expanding income tax base whereas in last two years focused was given on sales tax and had brought about many changes in the overall taxation system.
NBP EyEs sri LaNka for sharE hikE iN rEmittaNcEs KARACHI ISMAIL DILAWAR
Having all other heads rested in the red zone on the current account list, the federal government seems currently to have focused more on the ever-burgeoning worker remittances that are peaking to record highs recently. Having crossed the historic $ 12 billion mark during FY11, the remittances sent back home by overseas Pakistanis marked another month-on-month record last month in October (2012) by seeing record dollar inflows worth $1.365 billion in a single month. National Bank of Pakistan (NBP), one of the major contributors in the remittance basket with 11 percent share, is all out to materialize the real $ 20-25 billion potential of Pakistan in terms of foreign remittances. Tuesday saw the bank officials meeting K. Abdul Baiz, Chairman Puttalam Urban Council of Sri Lanka, here at a local hotel.
Baiz along with a delegation visited Pakistan on the invitation of KMC Administrator for deliberation on proposed Karachi-Puttalam Sister City Arrangements. Led by Khalid Bin Shaheen, Senior Executive Vice President and Group Chief and Chairman of NBP’s Exchange Companies Wing, the NBP side was represented among others by Farooq Ahmed, senior vice president/wing head, Ahmed Naseem, vice president, and Shahbaz Ahmed Khan, wing head assistant VP. According to NBP officials, in last month’s record remittances the bank’s contribution stood at $ 136 million. And that during January-October (CY2012), the NBP had counted its remittance receipts at $ 1.1 billion with the figure moving further northward. “Remittances have been the second lifeline after export proceeds, but since the exports are now subdued the remittances have clinched almost the Number 1 position,” said Shaheen.
It was since 2009 with the formation of Pakistan Remittance Initiative (PRI), he said, the government was focusing more on this head. Without elaborating, Shaheen said the government was facing many challenges in this regard. “NBP has increased its remittance contribution from 5-6 percent in 2007-08 to the current 11 percent,” said the NBP official. He said the NBP had made the largest number of tie-ups with international entities for the receipt of remittances through formal
channels. “We have done 30 to 35 tie-ups with organizations across the globe,” he said adding that “Improved services have brought a sort of cultural change at the NBP which is visited by over 2 million people every year for carrying out some 2.2 million transactions.” Shaheen said the bank had placed stickers in its branches prompting and enabling the customers to lodge their complaints with the NBP or even the State Bank in case they are poor-served. Another NBP official Ahmed Naseem lauded the Ministry of Overseas Pakistan for sending abroad last year the highest number of Pakistanis, some 0.7 million, who, he said, would increase the volume of remittances by sending back home foreign exchange. Farooq Ahmed, senior vice president, said the total official number of Pakistanis working overseas was 7 million, but the number was much more than what was undocumented by the government. “It may be
around 20 million Pakistanis working legally and illegally abroad,” he opined. On the occasion, Puttalam Urban Council Chairman K. Abdul Baiz said his side was keen to promote bilateral trade on provincial and local level. Pakistani textile, he said, had a great appeal for the female Sri Lankan Muslims. Abdul Baiz said Islamic banking had become very popular among the Muslim population of his country. “The Muslim businessmen in Sri Lanka are very religious,” he said. Baiz pledged to convey the message to his higher ups, when Shaheen expressed the will to explore new avenues on the trade and remittances front. The NBP also plans to open its branch in Colombo, the federal capital of Sri Lanka. Baiz, however, urged the Pakistani side to think beyond Colombo while setting up such ventures as there was a huge potential in other cities also to be tapped in banking sector.
18-Business Pages- 14th November_Layout 1 11/14/2012 6:48 AM Page 2
LSE, ISE bear with losses LSE loses 35 points, ISE sheds 40 LAHORE
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EARISH trend prevailed in Lahore Stock Exchange on Tuesday as it shed 34.80 points, following the LSE-25 index opened with 3967.37 and closed at 3932.57 points. The market’s overall situation also did not correspond to an upward trend as it remained at 1.904 million shares to close against previous turnover of 3.506 million shares, showing a downward move of 1.602 million shares. While, out of the total 96 active scrips 11 moved up, 32 shed values and 53 remined equal. Pakistan Reinsurance Company, Engro Corporation Limited and Adamjee Insurance Company were Major Gainer of the day by recording increase in their per share value by Re 1.00, Re 0.65 and Re 0.31 respectively. Muslim Commercial Bank Limited, Pakistan Petroleum Limited and Treet Corporation Limited lost their per share value by Rs 3.14, Rs 2.40 and Rs 1.50 respectively. The Volume Leader of the day included NIB Bank Limited with 217,000 shares, Byco Petroleum Pakistan with 203,000 shares and First FID Leas. (Nishat) with 200,000 shares. ISE-10 wItnESSES BEarISh trEnd: Islamabad Stock Exchange witnessed bearish
trend here on Tuesday as the ISE-10 index was down by 39.36 points to close at 3,194.80 points in today’s trading. A total of 102,500 shares were traded, which were up by 79,800 shares when compared with previous day’s trading of 22,700 shares. Out of 124 companies, share prices of 54 companies recorded increase, share prices of 70 companies registered decrease while that of zero company remained stable. The share prices of Fazal Textile increased by Rs 6.00 per share, while the share prices of MCB decreased by Rs 3.04 per share. First Fidelity Leasing Modaraba, SilkBank and Nishat Mills remained the top trading companies in Tuesday’s trading with 200,000, 75,000 and 4,000 shares respectively.
02 Business Trade deficit shrinks, exports rise, imports fall in four months ISLAMABAD APP
The country’s trade deficit decreased by 6.79 per cent, with exports witnessing growth of 4.98 per cent and imports decreasing by 0.54 per cent during the first four months of the current fiscal year (2012-13), showing a positive development in trade balance. The overall exports from the country increased from US$7.814 billion in July-October (2011-12) to US$8.203 billion during July-October (2012-13), according to the data of Pakistan Bureau of Statistics (PBS). The imports during the period under review were recorded at US$14.643 billion against those of US$14.723 billion during last year, showing negative growth of 0.54 per cent, the data revealed. Based on the figures, the overall trade deficit during the period was recorded at US$6.440 billion against that of US$6.909 billion last year, showing a negative growth of 6.79 per cent. Meanwhile, during October 2012 the exports grew by 7.23 per cent while imports increased by 5.07 per cent as compared to those during the same month of last year. The exports during October 2012 were recorded at US$2.016 per cent against those of US$1.880 billion in October 2011 while the imports stood at US$3.790 billion against those of US$3.607 last year. As compared to US$ 2.219 billion in September 2012, the exports during October 2012 decreased by 9.15 per cent.
Major Gainers COMPANY Bata (Pak) XD Island TextileXD Indus DyeingXD Wyeth Pak Limited Pak.Int.Cont. SD
OPEN 1319.50 512.93 517.63 931.00 154.87
HIGH 1385.45 538.57 539.00 950.00 162.61
LOW 1385.45 538.57 491.75 925.00 156.10
CLOSE CHANGE 1385.45 65.95 538.57 25.64 539.00 21.37 950.00 19.00 162.61 7.74
TURNOVER 50 200 5,000 100 15,100
1385.45 538.57 539.00 950.00 162.61
1385.45 538.57 491.75 925.00 156.10
1385.45 538.57 539.00 950.00 162.61
65.95 25.64 21.37 19.00 7.74
50 200 5,000 100 15,100
17.05 6.75 7.75 7.26 9.64
15.85 6.50 7.25 7.00 9.08
16.45 6.52 7.33 7.07 9.13
0.31 -0.12 -0.26 0.07 -0.46
35,777,000 13,073,500 9,759,000 8,932,000 7,032,500
Major Losers Bata (Pak) XD Island TextileXD Indus DyeingXD Wyeth Pak Limited Pak.Int.Cont. SD
1319.50 512.93 517.63 931.00 154.87
Volume Leaders Jah.Sidd. Co. Fauji Cement Azgard Nine Lotte PakPTA JS Investments
16.14 6.64 7.59 7.00 9.59
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.9535 152.4413 1.2102 121.7170
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
95.90 120.67 150.79 1.1909 94.50 12.17 25.90 25.29 98.67
SELL 96.40 122.78 153.39 1.2113 96.64 12.40 26.32 25.68 101.83
CORPORATE CORNER Qatar Airways begins historic 787 week
Etihad Airways offers deals for November KaraChI: Etihad Airways, the National airline of the United Arab Emirates, is offering a special discount for travelers flying in the month of November. In Economy Class, Customers can fly at an amazingly low fare to destinations in Europe and Africa from Karachi, Lahore, Islamabad and Peshawar. This special fare is available on tickets purchased till 18 th November only. After buying the ticket, you can avail it till the 31 st of December, 2013. Etihad today offers more than 75 popular destinations around the world, operating 23 weekly flights from Pakistan, which include daily flights from Karachi, Lahore and Islamabad along with weekly two flights from Peshawar via Abu Dhabi to the world.
dOha: Qatar Airways has unveiled a new video showing the making of its first Boeing 787 Dreamliner just days before the aircraft’s scheduled delivery to the Doha-based airline. The dramatic three-minute footage shows the aircraft being assembled and painted at Boeing’s 787 production line in Seattle before being rolled out for test flights. The video can be viewed on the airline’s Facebook site, facebook.com/qatarairways and is also posted on You Tube. Qatar Airways is the Middle East launch customer of the 787 with 60 aircraft on order. The first is due to be delivered this week making its maiden journey from Seattle to Doha, capital of the State of Qatar. Chief Executive Officer Akbar Al Baker said that aside from aviation enthusiasts, the video would appeal to people of different ages and interests. “This is a fascinating insight into the world of aviation and promises to be an eye opener for many people as they see the assembly of our first Boeing 787, the world’s most advanced passenger aircraft,” he said. “Special cameras and technology have been used to film the video over many months as our aircraft is assembled in Seattle, painted and rolled out of Boeing’s production line. This is an historic week as we officially take delivery of our first 787 and prepare to fly it home to Doha for what truly will be a moment of pride and joy for all those associated with the newest aircraft to join our fleet.”
McDonald’s celebrates World Tourism Day
LahOrE: McDonald’s Pakistan joined hands with Pakistan’s tourism industry in celebrating World Tourism Day on September 27 in a befitting manner. It partnered with the Tourism Development Corporation of Punjab (TDCP) to sponsor a Photography and Painting Contest on the occasion. Hotels and restaurants play an important role in the promotion of both domestic and foreign tourism everywhere in the world. Occupying a prominent position in Pakistan’s restaurant industry, McDonald’s Pakistan has always been taking keen interest in patronizing and sponsoring healthy lifestyle and recreation activities in the country to make sure that acts according to its business values regarding corporate social responsibility.
Wateen Telecom CEO participates in Forbes Global CEO Summit
KARACHI: Thai Airways organised “Thai Face of the Season” contest at Dolman Mall, Mr.Haroon Agar President KCCI along with Mr. Polapat Neelabhamorn GM Pakistan Thai Airways Pakistan inaugurate the event.
LahOrE: Wateen Telecom, Pakistan’s leading converged communications provider, was recently invited to participate in the prestigious Forbes Global CEO conference, held recently in Dubai, from 21st-23rd October 2012. The Forbes Global CEO Summit takes place annually and aims at creating an opportunity for global leaders to meet, engage in business and discuss visions for a sustainable future. The summit, which concluded successfully in Dubai, gathered some 400 global
CEOs, tycoons, entrepreneurs, up-and-comers, capitalists and thought leaders to discuss the latest trends and innovations that would drive the global economy in 2013 and beyond.
India intends to learn from the experiences of BISP: Nitish Kumar
ISLaMaBad: Benazir Income Support Programme (BISP) is a commendable initiative aiming at poverty alleviation and women empowerment. Various interventions including those in health and education sector have been introduced to uplift the living standards of underprivileged segments of society. India wants to learn from the experiences and success of BISP. These were the views expressed by Mr. Nitish Kumar, Chief Minister of Indian province Bihar during a meeting with Federal Minister and Chairperson BISP Madame Farzana Raja here on Tuesday.
Habib Metropolitan Bank earns top global recognition from IFC
President felicitates foreign minister, foreign office ISLaMaBad: President Asif Ali Zardari has felicitated Foreign Minister Ms. Hina Rabbani Khar and the Foreign Office on the election of Pakistan today as member of the Human Rights Council of the United Nations. Pakistan has been elected for a three year term to the United Nations Human Rights Council, an intergovernmental body within the UN system by securing 171 votes out of the total 191 votes in the election held today in New York. Congratulating Foreign Minister Ms. Hina Rabbani Khar, the President said that the election of Pakistan demonstrated the trust and confidence of the international community in Pakistan as much as it was recognition of efforts for the promotion of human rights in the country.
Pakistan Fashion Week
LOndOn: After two success Hits, Pakistan Fashion Week3 is about to kick start in the city of fashion, glamour and romance LONDON. The Fashion week is going to begin on the 16th Nov to 18th November 2012 at The Great “Connaught Rooms” London. A three days event of PFW3 will feature 35 designers from Pakistan as well as some international designers. It is going to leave a thrilling impact as the Pakistan’s most talented and electrifying Designers are all listed to showcase their creations on PFW3. Some big names are ready to endorse the ramp.
LG enhances Smart Hotel TV lineup
KaraChI: Habib Metropolitan Bank was recently awarded by International Finance Corporation (IFC) – a member of World Bank Group at their 5th Annual Bank Partners Meeting in Dubai, as the “BEST GTFP ISSUING BANK FOR SOUTHSOUTH TRADE”. Habib Metro, one of the largest trade finance banks, has the distinction of being the first bank in the world to have undertaken the transaction under the Global Trade Finance Program (GTFP) of IFC and only the second bank of the world to sign the agreement with IFC in 2005. Mr. Aamir Dar, Head of Financial Institutions at Habib Metropolitan Bank received the award certificate from Ms. Georgina Baker, Director of Global Trade & Supply Chain Solutions at IFC, recently in Dubai.
LahOrE: LG Electronics (LG) today announced the latest models in its Pro:Centric® Smart Hotel TV series designed for the hospitality industry. Pro:Centric is LG’s solution for hoteliers that allows them to easily customize the in room experience, providing a convenient way to interface with interactive program guides and internet data feeds and connects customers to hotel services in and outside the guest rooms.
Wednesday, 14 November, 2012