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BUSINESS Tuesday, 14 May, 2013
Remittances rise to $11.57bn in 10 months KARACHI STAFF REPORT
Pakistanis working abroad remitted over $11.569 billion during the first 10 months of the current fiscal year, July–April 2012-13. This, the central bank reported, shows a growth of 6.37 percent or $692.83 million compared with $10.876 billion the country had received in the corresponding period of last fiscal year. The inflow of remittances in July-April from Saudi Arabia, UAE, USA, UK, GCC countries, including Bahrain, Kuwait, Qatar and Oman, and EU countries amounted to $3.371 billion, $2.312 billion, $1.819 billion, $1.611 billion, $1.331 billion and $297.69 million, respectively. Last the country had received from these destination $2.987 billion, $2.386 billion, $1.922 billion, $1.263 billion, $1.226 billion and $304.59 million, respectively. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the review period amounted to $825.80 million as against $785.65 million received in July-April FY12. The monthly remittances for the period averaged at $1.156 billion as compared to $1.087 billion during the corresponding period of last year. During the month of April, the inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC and EU countries stood at $392.28 million, $226.07 million, $183.19 million, $176.14 million, $135.81 million and $28.65 million, respectively, compared with the inflow of $332.43 million, $ 245.33 million, $198.00 million, $131.82 million, $127.12 million and $31.14 million received in April 2012. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the month were counted as $73.76 million.
Pak election outcome could augment stability of ‘B-’ Sovereign Rating SINGAPORE
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INP
TANDARD & Poor’s Ratings Services said Monday that Pakistan’s parliamentary election results has set the stage for longer-term stability of our ‘B-’ sovereign credit rating on the country. Partial results from the elections held on May 11 indicate a strong lead for the Pakistan Muslim League-Nawaz (PMLN). The elections were the first in the country’s history in which an elected government handed power to another elected government. “This is a key achievement for Pakistan’s maturing democracy, in the face of general economic malaise, widespread and incessant sectarian and political violence, large-scale domestic insurgencies, and ongoing tension with neighboring India,” said Standard & Poor’s credit analyst Agost Benard. In a commentary titled “Successful Elections Are Crucial As Pakistan’s Bal-
ance Of Payments Pressures Mount,” published April 4, 2013, we outlined our view that timely, successful, and credible elections were essential for Pakistan to deliver a government with a reasonable chance of tackling the country’s economic imbalances, including a looming balance of payments crisis. Preliminary election results indicate such an outcome. The elections took place on schedule, without major shortcomings that would result in a disputed outcome, and with a large voter turnout despite intimidation and bombings on election day by extremist elements. The 60% voter turnout, compared
with 44% in the 2008 elections, ensures greater legitimacy for the new government. Moreover, the results suggest that PML-N is likely to have a lead that will enable it to form a coalition without the support of major political rivals or the minor parties. “We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon,” Mr. Benard said. This is needed to stabilize external finances and to provide the policy framework for necessary fiscal and energy sector reforms. If successful, these efforts will underpin the continued stability of the sovereign ratings at the current ‘B-’ level.
We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon. – Agost Benard
KARACHI STAFF REPORT
The Karachi stock market rose to a record high on Monday after reports that Pakistan Muslim League-Nawaz (PML-N) was taking a clear lead to form government in Islamabad. The benchmark KSE 100 Index gained 1.6 percent, the most since March 12, to 20,229 as of 9:49 am, taking its rally this year to 19 percent. The KSE 100 Index surged this year as higher commodity prices and consumer spending boosted earnings of the gauge’s companies by 43 percent in the past 12 months, the most among 17 Asian equity indexes, data compiled by Bloomberg showed as of May 9. That profit growth lured $202 million of stock purchases from overseas investors this year, the most since the same period in 2010, the data show.
ISLAMABAD ONLINE
PIAF greets PML-N LAHORE APP
The Pakistan Industrial & Trader Associations Front (PIAF) Monday congratulated Pakistan Muslim League-Nawaz for its landmark victory in the general election2013 and hoped that the economic situation would take a positive turnaround. In a felicitation message, Chairman PIAF Malik Tahir Javed, Senior Vice Chairman Khamis Saeed Butt and Vice President Amjad Ali Jawa said that success of PMLN has revitalized hopes of business community which was in deep trouble because of sever energy crisis, corruption, deteriorating law and order situation. They said that because of lack of interest of the previous regime, industrial production was at the lowest ebb while the exports and foreign exchange reserves were declining with every passing day.
WASHINGTON: A team of the International Monetary Fund (IMF) will visit Islamabad in late June to continue the policy discussions with the new government on mitigating economic vulnerabilities in Pakistan. Answering a question at a press conference whether the Fund had offered $5 billion aid to Pakistan and were there any conditions attacked with it, Gerry Rice, IMF Director Communications Department, said that there has been no formal request for a programme from the Pakistani authorities as yet. Rice however admitted that the authorities met with the Fund during the spring meetings a few weeks ago. He said discussions there cantered around the difficult economic challenges facing Pakistan, and our urging of the authorities to begin taking the necessary actions to help stabilize the economy and lay the groundwork for future growth. INP
KSE rises to record high
SC seeks notification of PIA chairman’s appointment The Supreme Court (SC) has sought notification of the appointment of PIA chairman. A three-member bench of Supreme Court (SC) headed by Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry took up the PIA corruption case for hearing on Monday. The court was informed during the course of hearing that notification of appointment of the PIA chairman could not be produced so far, therefore, more time be allowed. The court adjourned the hearing of the case for two weeks.
IMF team to visit Pakistan in June
KARACHI: A man looks at the values at KSE-100 index in Karachi. ONLINE
ICCI organises Pak-Azerbaijan business forum
Pakistan’s first tight gas expected in July-August KARACHI ONLINE
ISLAMABAD ONLINE
In order to highlight the trade and business opportunities between Pakistan and Azerbaijan, the Islamabad Chamber of Commerce & Industry (ICCI) organised Pak-Azerbaijan Business Forum. Dashgin Sharirov, Ambassador of Azerbaijan, Atadjan N Movlamov, Ambassador of Turkmenistan, Gononov S. Sherali, Ambassador of Tajikistan, Sulyeman Suha Zulfiqar, First secretary Deputy Head of Mission Turkey, Dr Ismatulla Fayzullaev, Deputy Head of Mission, Embassy of Uzbekistan, Dr Muhammad Masoom Yasinzai, VC of Quaid-e-Azam University and International Islamic University and Dr Abdul Basit, Chancellor Preston University, Sahibzada Abdul Qadoos, President of CCCI and Haji Muhammad Zahir, President JCCI were also present on
the occasion. Speaking on the occasion, Dashgin Sharirov, Ambassador of Azerbaijan, said that his country wanted to strengthen its bilateral, economic and commercial ties with Pakistan. He said that Azerbaijan has huge reserves of oil and gas and had expertise in energy sector, while Pakistan had expertise in agriculture sector and dairy products. Therefore, both the countries could cooperate in these areas to further enhance their bilateral relations, he added. In his welcome address, Zafar Bakhtawari said that Pakistan attached great importance to enhance its relationship with all Central Asian Republic States and countries of ECO region. He said that Pakistan is keen to strengthen its cooperation with Azerbaijan, especially in energy field to overcome the adverse effects of energy crisis on its economy.
ICCI President said that that there should be direct air link between Pakistan and all Central Asian Republic States. He informed the meeting that ICCI also requested Turkish Airline to consider connecting Istanbul and Islamabad via Baku/Dushanbe/Ashkhabad which would directly establish direct air link of Pakistan with Azerbaijan, Turkmenistan and Tajikistan. Dr Muhammad Masoom Yasinzai, Vice Chancellor of Quaid-e-Azam University and International Islamic University and Dr Abdul Basit, Chancellor Preston University emphasised on knowledge-based economy and said both the countries should cooperation in education sector by opening branches of universities in each other countries. They also lauded the initiative of Embassy of Azerbaijan for announcing 36 education scholarships for the deserving students of Pakistan.
Pakistan is expected to start producing 30 Million Cubic Feet per day (MMCFD) of tight gas in July-August this year from Sajawal gas field located in the district of Dadu. According to media reports quoting government officials this would be first time the country would be producing tight gas. Pakistan has estimate tight gas reserves of about 40 Trillion Cubic Feet (TCF). The first tight gas sales and purchase agreement was signed on November 13, 2012 in Islamabad for production from a tight gas reservoir in Pakistan from Kirthar Block in Dadu, Sindh. The Kirthar Block is jointly owned by Polish Oil and Gas Company (PGNiG), which has 70 percent stake and Pakistan Petroleum Limited owns 30 percent. For the implementation of this project, SSGC has been awarded a contract for the construction of 52-km pipeline from Kirthar Block’s Rehman Gas Field which will be integrated into SSGC’s system at Naing Valve Assembly through the Bhit gas pipeline.
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BUSINESS B Tuesday, 14 May, 2013
SAARC CCI congratulates PML-N over poll victory ISLAMABAD ONLINE
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HE SAARC Chamber of Commerce & Industry (SAARC CCI) has felicitated the Pakistan Muslim League-Nawaz (PML-N) for overwhelming success in the general elections while hoping that it would not only improve Indo-Pakistan relations but also help deepen regional integration process in South Asia. President SAARC CCI Vikramjit Singh Sahney in his statement welcomed the invitation extended by Indian Prime Minister Dr Manmohan Singh to prime ministerin waiting Nawaz Sharif to visit India terming it as a gesture that
would help redefine cordial relations between two major nations in South Asian region. “Success of PML-N through democratic process is a reflection of positive change in society of Pakistan,” he said, hoping that the Nawaz government would be instrumental in establishing amicable and long term relations with India. Iftikhar Ali Malik, Vice President SAARC CCI (Pakistan), also congratulated the PML-N leadership and expressed the hope that being a business tycoon himself and a matured politician, Nawaz Sharif and his team would take immediate and proactive measures to usher country’s economy on track of development by finding permanent solutions to the core issues like energy, unemployment, inflation and poverty alleviation.
CCP chairperson, 4 members’ authority questioned in SHC KARACHI
COMPANY Wyeth Pak Ltd Murree Brewery Siemens Pakistan Bhanero Tex. Island Textile
OPEN 1514.87 352.30 646.68 320.00 622.00
HIGH 1560.00 369.91 670.00 334.99 635.00
LOW 1475.00 350.00 646.00 333.00 591.00
CLOSE CHANGE 1534.60 19.73 369.91 17.61 662.33 15.65 334.99 14.99 635.00 13.00
TURNOVER 1,100 15,500 5,100 200 300
4305.00 1905.05 620.00 420.00 499.00
4236.91 1905.00 608.99 399.64 499.00
4236.91 1905.01 608.99 401.82 499.00
-222.99 -79.99 -32.05 -18.85 -13.00
140 300 1,600 2,300 1,100
10.81 10.31 12.16 75.44 27.47
10.37 9.85 11.53 73.80 26.43
10.58 10.31 11.93 74.96 27.47
0.40 1.00 0.65 3.11 1.30
31,812,500 14,844,500 13,764,500 11,790,500 10,847,000
Major Losers Rafhan Maize XD Bata (Pak) XD Shezan Inter. MithchellsFruit Indus Dyeing
4459.90 1985.00 641.04 420.67 512.00
Volume Leaders Fauji Cement B.O.Punjab XR Jah.Sidd. Co. D.G.K.Cement Pioneer Cement
10.18 9.31 11.28 71.85 26.17
Interbank Rates USD GBP JPY EURO
PKR 98.4476 PKR 151.2253 PKR 0.9688 PKR 127.7554
Forex BUY
Karachi businessmen felicitate Nawaz on winning polls
ONLINE
Appointment of chairperson Competition Commission of Pakistan (CCP) Rahat Konain Hasan and other four members of CCP was challenged in the Sindh High Court on Monday. Rana Azmul Hassan filed a writ petition through Ziaul Haq advocate contending that appointments of Rahat Konain Hasan and other members were made under Competition Commission Ordinance which lapsed on August 16, 2010 while the present Competition Commission Act 2010 was promulgated on October 13, 2010. The petitioner contended that notification of appointment had been made under a defunct ordinance and unfortunately through another notification dated 15.01.2011 the federal government erred in law to give retrospective effect of the appointment of the chairperson. Petitioner further argued in the writ petition that said appointments have been made in violation of the provision of the competition Act 2010 and Constitution of Pakistan as the notification for appointment of the chairperson and the four members are not validated under the new competition Act therefore, the notification dated 15-01-2011 is void.
Major Gainers
KARACHI APP
The business community of Karachi has felicitated the chief of Pakistan Muslim League-Nawaz on his victory in the elections 2013. Chairman Businessmen Group and former President Karachi Chamber of Commerce and Industry (KCCI) Siraj Kassam Teli, Vice-Chairmen Businessmen Group and Former Presidents KCCI Tahir Khaliq, Muhammad Zubair Motiwala, Haroon Farooki, Anjum Nisar,
President KCCI Muhammad Haroon Agar, Senior Vice President Shamim Firpo, Vice President Nasir Mehmood and Managing Committee Members of KCCI congratulated Nawaz Sharif on winning majority of National Assembly’s (NA) seats in the elections. “We hope after assuming charge the newly elected government will make sincere efforts to resolve the social and economic challenges faced by the country, bring economic reforms, resolve energy crises and maintain law and order,” they said in a joint statement issued here.
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.70 127.78 150.63 0.9628 97.06 12.56 26.90 26.40
SELL 99.95 128.02 150.85 0.9729 98.76 12.79 27.15 26.65
CORPORATE CORNER
ISlAmAbAd: Ishtiaq Ahmed, winner of ZONG’s Ghar offer stands in front of his new house along with ZONG officials. PR
Samsung announces world’s first 5Gmm wave mobile technology KARACHI: Samsung Electronics Co., Ltd., announced that it has successfully developed the world’s first adaptive array transceiver technology operating in the millimeter-wave Ka bands for cellular communications. The new technology sits at the core of 5G mobile communications system and will provide data transmission up to several hundred times faster than current 4G networks. 5G mobile communications technology is the next generation of the existing 4G Long Term Evolution (LTE) network technology. 5G will be capable of providing a ubiquitous Gbps experience to subscribers anywhere and offers data transmission speeds of up to several tens of Gbps per base station. PR
Emirates dominates int’l awards
ISlAmAbAd: Prime minister Justice (R) mir Hazar Khan Khoso chairs a high-level meeting to review the economic situation of the country on monday. NNI
1 billion SMSs exchanged during election days ISLAMABAD AGENCIES
Mobile phone operators in the country cashed the boom and enthusiasm of voters during elections 2013 campaign and generated revenues as SMS traffic went up to one billion text messages per day. Thousands of candidates in the country made full use of the modern communication facilities and continuously tried to convince voters in their constituencies through text messages. According to rough figures, one
billion short messages (SMS) were exchanged on a daily basis in the country when the election was drawing nearer. “A huge rise in the usage of SMS was observed and not only the political parties used the SMS, but their supporters also exchanged a lot of SMS. Subscribers in Pakistan usually spend about a billion rupees a month on SMS,” said an official from a mobile service provider. This increase in revenue is not only good for mobile companies but the medium used for campaigning is also very effective as there are 120
million mobile phone users in Pakistan. Mobile phone companies also used Election 2013 as an opportunity and promoted different offers for their users. The subscribers were able to get all the information through text messages. Pakistan is one of the countries where per user SMS ratio is quite high. A general user generates 176 SMS per month in Pakistan. In China this number is 99 SMS per month, for India this figure is 53 per month, in USA this figure is 617 and in Brazil this figure is 22 SMS per month.
KARACHI: Emirates’ innovation, investment and customer service was further recognized at an international level last night with an array of awards from two prestigious awards ceremonies. At the Business Traveller Middle East Awards, Emirates was crowned Best Airline Worldwide as the carrier received its 32nd A380, pushing its modern fleet to 200 aircraft. Emirates was also named Airline with the Best Business Class, Airline with the Best Economy Class and Best Regional Airline Serving the Middle East during the event at The Address Dubai Marina. “This is a superb collection of awards for Emirates, said Thierry Antinori, Emirates’ Executive Vice President, Passenger Sales Worldwide, who attended the ceremony. “In a fiercely competitive environment and under the scrutiny of Business Traveller Middle East readers, we have truly shone with our products, services and value for money.” Meanwhile, at the World Travel Awards for the Middle East region, held at Le Royal Meridien Beach Resort & Spa, Emirates picked up three more awards. The airline won the Middle East’s Leading Airline Business Class, the Middle East’s Leading Airline Rewards Programme and the Middle East’s Leading Airline Website. Kevin Griffiths, Senior Vice President, Cabin Crew, was on hand to receive the awards. The World Travel Awards are voted on by travel and tourism professionals worldwide, recognising a commitment to excellence in the previous twelve months. PR