18-Business Pages- 15th September_Layout 1 9/15/2012 5:11 AM Page 1
Saturday, 15 September, 2012
SBP Governor talks up global remittance potential HBL honored as SBP sees huge potential in global remittance market for Pakistan KARACHI STAFF REPORT
OvERNOR State Bank of Pakistan (SBP) Yaseen Anwar has said that there exists a huge potential in the global remittance market for Pakistan. This he stated while addressing an award ceremony held here in recognition of the bankers’ commendable services in facilitating home remittances by Pakistan Remittance Initiative (PRI) Friday. The leading bank in home remittances award for the year 2011 was conferred upon Habib Bank Limited (HBL). The SBP governor said it was quite satisfactory to note that the banks had started to improve their infrastructure and related systems
Lesson in equity investment SECP moves to educate equity investors on fraudulent market risks KARACHI STAFF REPORT
The Karachi Stock Exchange (KSE) Friday held its third session of SECP Investor Education Program for the members of business community and working professionals from diverse backgrounds. The seminar was attended by a number of Karachi-based investors. Senior officials from KSE, Institute of Capital Markets (ICM) and Pakistan Mercantile Exchange (PMEX) presented their views during the session. CEO Institute of Capital Markets Javed Hassan; Head of Marketing and Business Development, PMEX, Hassan Mehmood; Chief Strategy Officer, JS Investments, Maleeha Bangash; General Manager KSE Sani-eMehmood Khan; along with the KSE officials participated in the session. CEO ICM Javed Hassan elaborated the pros and cons of investing in different financial products. He focused on the broad features of investments opportunities available in the country, Pakistan’s economic and financial system, features and characteristics of different financial markets, regulatory framework, market indicators, investment products, financial services and roles and responsibilities of various financial institutions in the country. He also explained the fact that how diversification across various investment instruments safeguards the investors’ interest. The investors were also given an insight about the features of insurance, mutual funds, commodities, debt and equity markets. Head of Marketing and Business Development PMEX Mehmood Hassan also briefed about the role of PMEX in capital markets along with its products and mechanisms. It was also addressed to the participants that in what circumstances and how an investor can lodge complaint with the Exchange / PMEX in case he/she is not satisfied with the services of the broker. Maleeha Bangash briefed participants about the opportunities in mutual funds and the role of mutual funds in creating the saving habits in general investors.
SECP registers 274 firms in August KARACHI: The Securities and Exchange Commission of Pakistan (SECP) registered 274 companies in August, said the apex regulator Friday. The new incorporations during the month include 257 private, followed by 16 single-member, 2 public unlisted companies, and 2 non-profit associations. Trading sector has the highest new incorporation of 44 companies, followed by services with 28 companies, construction with 21 companies, power generation with 18 companies, information technology with 17 companies and textile with 16 companies. Highest company incorporation was witnessed at Company Registration Office (CRO), Lahore of 89 companies followed by CROs Karachi and Islamabad registering 76 and 72 companies, respectively. Remaining CROs of Peshawar, Multan, Faisalabad and Quetta registered 14, 12, 8 and 3 companies respectively. Authorized capital and paid up capital of 274 companies, is Rs1.89 billion and Rs482 million respectively. During the month, 56 companies increased their authorized capital with the aggregate authorized capital increment of Rs2.99 billion and 52 companies raised their paid up capital with the total paid up capital increment amounting to Rs3.20 billion. STAFF REPORT with a view to offering better remittance services to their customers. Anwar observed that the continued impressive growth in worker remittances was the result of the efforts made by SBP and PRI, in collaboration with banks and other stakeholders, to facilitate both overseas Pakistanis and their families back home. He
outlined the steps taken to enhance the flow of remittances through formal channels that he said included: (a) preparation and implementation of national strategy on remittances; (b) playing the advisory role for the financial sector; (c) creating separate efficient remittance payment highways; and (c) becoming a focal point for
overseas Pakistanis through round-theclock call centre with toll free lines. “We cannot afford to be complacent. We can always learn more from other countries’ best practices in facilitating remittance flows including end-to-end efficient systems, maximum satisfaction of both remitters and beneficiaries, highest degree of commitment of the financial sector, and development of new products and services,” he added. He assured full SBP and PRI support in facilitating all efforts of the financial sector towards achieving the desired objective of maximizing the flow of remittances through formal channels into the country. “Remittances sent home by overseas Pakistani workers crossed the $13 billion mark for the first time in country’s history during the last fiscal year,” he said. The SBP Governor distributed the awards amongst banks’ officials in different areas relating to home remittances including remittances services at branch level both in Pakistan and overseas, processing at centralized Home Remittance Cells and IT support for swift remittance delivery. Some 45 officials from a number of banks also received individual performance awards for facilitating remittances into Pakistan.
Bank deposits back to normalcy KARACHI STAFF REPORT
After having witnessed a decline of 5%MoM in Julu-12, the deposits of the total scheduled banks reverted back to their normal pace as they surged by 2.7%MoM to reach at Rs6.3tr in Aug-12. On cumulative basis, the deposits have registered a growth of 6.8%8MCYTD as compared to 4.7% growth witnessed in the deposits during the same period last year. This has been evident in the latest figure of M2 (Aug-31), in which M2 growth reached at 0.3% during the previous two months of FY13 as compared to negative growth witnessed during Jul-12. On the other hand, the 6M KIBOR averaged at 10.93% during Aug-12, as compared to Jul-12 average of 12.01%, showing a decline of 108bps on monthly average basis. “The reason for such decline in KIBOR rate was due to adjustment in yields on the back of SBP’s decision to cut the DR by 150bps in its last MPS (Aug-12),” said the analysts at InvestCap Research. The credit off-take
trend of the banking sector remained sluggish during the review month as it was up by minor 0.3%MoM to reach at Rs3.7tr, while during 8MCY12, the advances of the banking sector increased by 6.3%. The advance to deposit ratio (ADR) of the banking sector has reached 59%, down 138bpsMoM during Aug12 and 28bps during 8MCY12. The investment side of the banking sector on the other hand, showed a significant surge of 14.1% during 8MCY12 with an appreciation of 1.3%MoM witnessed during the month of Aug-12. This growth under the investments head was in line with the extraordinary growth of Gov't borrowing, in which Gov't borrowed Rs200bn from commercial banking channels during the last two months of FY13. As expected, total deposits of the banking sector returned back to their norm after showing decline in the last month and remained in an upward trajectory during 8MCY12. “The Gov't's heavy reliance on banking sector for borrowing is expected to keep the banking investments side higher and advances are expected to remain in sideways going forward,” the analysts said.
Telcos, FBR agree to resolve Rs47 billion tax dispute through table talk MONITORING DESK Five telecom companies and FBR have agreed to resolve Rs. 47 billion tax dispute through out of court settlement, told the FBR head Ali Arshad Hakim during a meeting of the sub-committee of the National Assembly Standing Committee on Information Technology (IT). This is exactly the way the dispute was going to get resolved when FBR was going to give the telcos the waiver on Rs. 47 billion tax on inter-connection charges but NAB had taken the notice of the issue and had reverted FBR’s draft for waiving the tax. However, it appears that the settlement has been reached now between the telcos, FBR and NAB – since the matter is said to be resolved with-in a month’s time through the constitution of Alternative Dispute Resolution Committee (ADRC) and no strict measures, including attachment of banks accounts of the telecom companies, would be taken. Telecom companies, which were earlier seeking the exemption of tax through Section 65 of Sales Tax Act, 1990, later on took a stand that tax was not payable at all and that this was some kind of misunderstanding on FBR’s part.
EU Parliament approves Autonomous Trade Preferences ISLAMABAD STAFF REPORT
The European Parliament approved yesterday with an overwhelming majority a package granting the EU Autonomous Trade Preferences (ATPs) for Pakistan. The package would allow tariff free export of 75 Pakistani products - mostly textiles to EU markets until 31 December 2013. The ATPs are expected to become effective around end October 2012 following completion of administrative procedure. The grant of ATPs is in response to President Zardari’s appeal for enhanced market access to the EU, first made during the Pakistan-EU Summit held in Brussels in 2009. Earlier in June 2012, the European Parliament approved a new GSP+ scheme. Under the new scheme Pakistan would be able to apply and if all the necessary conditions are fulfilled, our export to the EU would receive duty free treatment from January 2014.
BUT IT’S THE GLOBAL MELTDOWN’S FAULT! Growth in Pakistan’s trade gap due to global economic slowdown: Ameen Fahim KARACHI STAFF REPORT
Minister for Commerce Makhdoom Ameen Fahim Friday said increase in the country’s trade deficit to a huge $ 15 billion was because of the international financial crises. During FY12 Pakistan’s trade deficit swelled beyond $ 15 billion with imports ballooning to over $ 40 billion and exports standing slightly below $ 25 billion. This increase in the country’s trade gap widened Pakistan’s current account deficit to over $ 4 billion during FY2011-12. The federal minister, however, was upbeat that events like Expo Pakistan Exhibition 2012 would help the dollar-hungry country increase its exports as well as attract the much-needed foreign investment. He was briefing reporters here at Trade Development Authority of Pakistan (TDAP) after chairing a review meeting on the mega exhibition in which, the federal minister said, a large number of buyers
from across the globe had assured their participation. Fahim said the event would be organized in line with international standards so Pakistani products could be better introduced to the foreign buyers who usually stay away from the country for their perceived security concerns. Fashion
industry, he said, was world over flourishing and fashion shows were being held in almost all exhibitions. He said women were the best buyers and in Pakistan constitute 50 percent of the population. About problems of the stakeholders, the federal minister said his ministry had directed
TDAP to hold a regional conference to address the same. He said Pakistan’s commercial counselors deputed abroad would also be called in to attend the moot. To a query, he said the commercial counselors were given another month to arrive back in Pakistan to attend the Expo event.
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Apple extends gains after iPhone 5 launch NEW YORK AFP
PPLE shares extended their gains Thursday amid a generally positive response to the launch of the new iPhone 5, aimed at keeping the California firm ahead of its peers in the hot smartphone market. Apple shares added 1.97 percent to close at $682.98, building on modest gains on Wednesday. Brian White at Topeka Capital Markets said he maintains a strong buy rating for Apple. "We felt Apple executed to perfection and we believe the iPhone 5 was even more aesthetically pleasing than many had expected with a completely redesigned architecture," he said. "As such, we remain aggressive buyers of Apple as the iPhone 5 rolls out around the world and potential new products are unveiled." Trip Chowdhry at Global Equities Research said that with the new
iPhone, Apple appears to be assuring its place as one of the leaders in the sector, along with handsets powered by Google's Android system. In a note to clients, Chowdhry said "98 percent of (the) mobile market will be shared by Google Android and Apple iOS. There will not be any third spot left. Nokia, Microsoft and (BlackBerry maker) Research in Motion will struggle in the remaining two percent of the market." He added, "Innovation velocity of both Apple and Google far exceeds that of its peers." Analyst Shaw Wu at Sterne Agee said the iPhone 5 "is a significant upgrade and will drive a powerful product cycle." He added that the quick deliveries, set to start September 21, will mean strong sales but that fourth quarter deliveries "could be limited by supply constraints." The new iPhone has a rich fourinch (10-centimeter) display prime for the red-hot smartphone market, in which screen size is a key factor for buyers, according to Nielsen senior vice president Jeff Wender.
ICCI whines over taxpayer harassment
india inflation rises, putting off rate cut NEW DELHI AFP
Indian inflation rose in August to 7.55 percent on a 12-month basis, official data showed on Friday, further reducing the chances of an interest rate cut from the central bank next week. India's central bank will meet in Mumbai next Monday to consider its interest rate policy where it will also have to consider a 12-percent rise in the price of diesel ordered by the government that will push inflation higher. The Wholesale Price Index rose to 7.55 percent from 6.87 percent in July, which was a near three-year low. The diesel price hike, announced late Thursday, was hailed by some as a sign of intent by the government that it is prepared to tackle difficult economic reforms and the widening hole in the public accounts.
NccPL collecting cGT under new regime KARACHI STAFF REPORT
The NCCPL has started the collection of CGT on behalf of the federal board of revenue (FBR) with effect from Thursday, 13th Sept. The new system would be applicable to individual investors, brokers and corporate entities only. While the mutual funds, banking companies, NBFIs, insurance companies, Modarabas and foreign institutional investors do not come under the newly implemented system, as they will have to file CGT on their own.
‘Unnecessary harassment of taxpayers discourage tax compliance in our country’ ISLAMABAD ONLINE
Islamabad Chamber of Commerce and Industry (ICCI) organized a seminar, titled “Tax Compliances for Corporate and Non Corporate tax payers”. Haroon Tareen, Chief Commissioner Inland Revenue Regional Tax Office (RTO) was also present on the occasion. Speaking on the occasion, Chief Commissioner IR, RTO raised a concerning issue, by saying that a large number of people in Pakistan are not paying taxes. He said that tax laws are not as such complicated in our country and there is a greater need to promote voluntary tax compliance for increasing the tax compliance rate which would definitely improve Tax-to-GDP ratio. Yassar Sakhi Butt, President ICCI highlighted various causes of low tax revenue in Pakistan and said that factors like discretionary audits, frequent amendments in tax laws, high tax rates, risk of penalties and interest charges on late tax payments, late filing of returns and other obligations under tax laws and on top of all corruption unnec-
essary harassment of taxpayers have tended to discourage tax compliance in our country. He was of the view that friendly tax laws and reduction in high tax rates are need of the hour and further more giving attractive incentives to high taxpayers to recognize their tax contribution, reducing interaction between tax collectors and taxpayers could help in improving tax compliance in Pakistan. ICCI President suggested that instead of burdening the already existing taxpayers, FBR should take measures to broaden the tax base and its extremely important to bring all those sectors as well as individuals in tax net that are capable of paying tax. Mian Muhammad Ramzan, Chairman Taxation Sub-Committee Committee gave a presentation on basic tax compliance of Income Tax and Sales Tax for corporate and not tax payers where he explained the regular compliance requirements for corporate and non corporate tax payers. He added that business community normally pays taxes but due to non fulfillment of legal compliance requirements, they have to face complications and litigations which is wastage of resources, time and cost.
Major Gainers COMPANY UniLever Pak Rafhan Maize Prod. Siemens Pakistan Bata (Pak) Limited National Foods
OPEN 9240.00 4198.00 940.00 989.00 252.23
HIGH 9700.00 4407.00 987.00 1038.00 264.84
LOW 9700.00 4407.00 987.00 950.00 255.00
CLOSE CHANGE 9700.00 460.00 4407.00 209.00 987.00 47.00 1028.99 39.99 263.83 11.60
TURNOVER 20 20 50 1,350 44,500
291.00 414.99 236.42 525.00 349.90
291.00 400.00 226.50 516.10 344.00
291.00 400.00 226.53 519.10 347.45
-15.08 -14.99 -9.89 -6.90 -6.09
100 11,600 800 13,400 600
3.65 19.34 3.20 21.60 5.65
3.25 18.96 2.96 19.80 5.45
3.33 19.19 3.01 21.10 5.49
0.13 0.36 0.07 0.52 0.06
17,661,500 9,455,000 5,899,000 5,851,000 5,648,000
Major Losers Island Textile Indus Dyeing Pak Gum & Chemical Millat TractorsSPOT Exide (PAK)
306.08 414.99 236.42 526.00 353.54
Volume Leaders Telecard Limited 3.20 P.T.C.L.A 18.83 WorldCall Telecom 2.94 Netsol Technologies 20.58 Lafarge Pakistan 5.43
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.5483 153.1778 1.2089 123.2438
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
94.50 123.08 152.32 1.1940 96.29 11.98 25.58 25.06 98.74
95.00 124.34 153.84 1.2059 97.76 12.17 25.81 25.26 101.18
CORPORATE CORNER Eid becomes ‘Smart’ for Samsung customers LAHORE: Eid ul Fitr this year was extra special. Despite the heat of the season that could have spoiled the fun, Pakistanis had a festival like never experienced before. With fabulous prizes to be won as Eidi through the Samsung’s “Eid Banao Smart” campaign, Samsung was talk of the town for the entire month of Ramazan! The lucky winners found it difficult to hide their expressions of joy. “Samsung ‘Eid Banao SMART’ was a life-changer! I always seek superlative value for my money. Delightfully, my new Samsung Smartphone is a masterpiece of next-generation technology and winning Rs. 1,000,000 came as a truly exhilarating surprise”.said Mr. Shahzad Aslam from Lahore, winner of the Grand Eidi Prize. Brimming with excitement, one of the 15 laptop winners from across Pakistan, Mr. Nazamat Deen of Quetta said; “I am thoroughly enjoying the powerful Samsung Smart-phone features. The shopping experience at Samsung dealership was inspiring, as I gained information on many authentic products, along with a reliable warranty certificate from their well-trained, courteous staff. To top it all off, I won an amazing prize with revolutionary features. I cannot wait for another campaign to be launched.”
Off to the American discos! ISLAMABAD: In order to strengthen the planning and engineering function at DISCOs, a team of senior planning and engineering officials from Pakistan’s power distribution companies (DISCOs) will visit several well-run power utilities in the United States from September 14-22. “The U.S. government is committed to helping the Government of Pakistan improve its power distribution system,” said Jock Conly, Director of the U.S. Agency for International Development (USAID) Mission to Pakistan. “Planners and engineers who experience well-run utilities in the United States firsthand, return to Pakistan with practical ideas to improve DISCO operations, reduce losses and, ultimately, to make sure consumers have a more reliable supply of power.” The team will visit power utilities in Cincinnati, Ohio, and New Haven, Connecticut. This is the fifth study tour for DISCO officials organized by USAID under its Power Distribution Program. ONLINE
KARAchi: The consul General of Malaysia and Mrs.hidia Abu Baker, hosted a reception to celebrate the 55th National day. Picture shows Speaker Sindh Assembly Nisar Khuro, Minister Raza haroon, haji Muzaffar Shujra, KMc Administrator Syed Matanat Ali, chairman EPZ Syed Tariq hassan, Barrister Abdul R.Sattar, Kalim Farooqui, Ayesha curmally, of Sheraton hotel, with other guests.
Oil rises in Asia on Fed stimulus SINGAPORE AFP
Oil prices rallied in Asia Friday as traders celebrated a fresh round of quantitative easing announced by the US Federal Reserve, analysts said. New York's main contract, light sweet crude for delivery in October surged 65 cents to $98.96 a barrel and Brent North Sea crude for November delivery added 56 cents to $116.44.
Brent crude for delivery in October had late Thursday soared to a four-month high of $116.90 before closing. Crude markets rose after traders' hopes for stimulus announcements at the end of a twoday Fed meeting Thursday were met, IG Markets said in a report. "Never fear, QE3 is here. At long last the markets got what they wanted as (Fed chief Ben) Bernanke finally announced another ambi-
tious bond-buying programme he hopes will lead to a sustainable recovery in the US economy," the report stated. "The icing on the cake announced last night was that no defined time limit was announced for QE3." The Fed late Thursday announced a new, open-ended $40 billion per month bond-buying program which would remain in place until there was substantial im-
provement in the jobs market where 8.1 percent of Americans remain unemployed. "QE3" -- the Fed's third "quantitative easing" program in less than three years -- would take the central bank's total monthly purchases, including ongoing programs, to $85 billion a month, it said. In addition, the Fed also pledged to keep its benchmark interest rate at ultra-low levels until at least mid-2015.
Saturday, 15 September, 2012
Published on Sep 14, 2012