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18-Business Pages- 22th September_Layout 1 9/22/2012 6:02 AM Page 1

Saturday, 22 September, 2012

3 Indo-Pak trade agreements inked ISLAMABAD

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HREE Trade agreements were signed between the Secretary Commerce Pakistan Munir Qureshi and Secretary Commerce India

S.R.Rao. The agreements were signed at the end of 7th Round of Pakistan-Indian Commerce Secretary level Talks on “Economic & Commercial Co-operation September 20-21, here on Friday. The agreements signed included Redressal of trade Grievances and Agreement between Government of Islamic Republic of Pakistan and government of Republic of India on co-operation and mutual assistance in custom matters. Besides, Bilateral Cooperation agreement between Pakistan standard of quality control authority, Ministry of Science & Technology and the Bureau Indian Standards Ministry of Consumer Affairs, Food and Public Distribution was also singed.

Want some locomotives? ISLAMABAD: India has offered to sell locomotives to Pakistan at a competitive price. The offer was made during the seventh round of commerce secretary-level talks between the two countries. According to sources Pakistan agreed to consider over buying locomotives made in India and start direct flights between Islamabad and Delhi. The sources said Indians were informed that although bids for the purchase of 150 locomotives against soft loans had already been invited, Pakistan would place advertisements to buy 50 more locomotives in the next few weeks and they were encouraged to participate in the bidding. The Indian delegation quoted a price of 70 million Indian rupees per locomotive. The two-day Pakistan and India talks on promotion of trade relations ended in Islamabad on Friday. Pakistani side was led by Secretary Commerce Munir Qureshi while his Indian counterpart S. R. Rao led the Indian side. Both countries signed on three agreements. These agreements pertain to removing mutual trade grievances‚ cooperation in mutual custom affairs and agreement between Pakistan Standards Control Authority and Bureau of Indian Standards. NNI

‘Negative list to be phased out by Dec 31’ ISLAMABAD: The deadline for phasing out of negative list is Dec 31 and progress is being made in this record. Talking to media, Federal Minister for Commerce Makhdoom Amin Faheem said this. Earlier, he has presided over the ceremony of signing of Trade Agreements between Secretary Commerce of India and Secretary Commerce Pakistan here on Friday. Faheem informed that this is the 3rd meeting between the two secretaries. He appreciated the pace of the talks aimed removing hurdles and bottlenecks in the trade related talks. The MoU’s signing are a testimony to the fact. He emphasized the fact that the wishes of public and business community will be taken into consideration. He also asked the local industries and businesses to bring down consumer prices to facilitate people. Mr. Amin Faheem also requested Pakistan people to protest peacefully against the blasphemous movie and not harm public and government property in the process. Earlier on, Federal Minister for commerce Mr. Amin Faheem held a dinner in honour of the Indian delegation at local hotel here which was also attended by Indian High commissioner Bhaglay. APP

Rejected! PEW rejects LPG import plan ISLAMABAD ONLINE

The Pakistan Economy Watch (PEW) on Friday rejected government’s plan to import 15 thousand tonnes of Liquefied Petroleum Gas (LPG) monthly during winter. The import of 75 thousand tonnes of LPG which will continue for from November to March to reduce shortage of natural gas is aimed to personal welfare while masses will have to pay the bill, it said. The top management of Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited has been directed to buy 500 tonnes of LPG each from Saudi Aramco to be added in gas system after mixing air in it.

Similarly, the SSGC and SNGPL, which will buy 250 tonnes of LPG each, has been directed to make a deal through a broker, highly placed sources in the Ministry of Petroleum and Natural Resources told Abdullah Tariq, SVP, PEW. The present Aramco CP (Contract Price) for LPG is $ 946 per tonne while bringing it to Pakistan will cost another $ 150 per tonne excluding taxes and other expenditures. The move will cost masses Rs 50 million per day for five months or 7 billion and 80 crores in total. Sources further said that the broker with whom deal is almost final will have to pay a commercial bribe of 25000 dollar (Rs 23 lakh) per day which will be deposited in an offshore account of a politician.

If the supply continued for five months, the total kickbacks paid by the Saudi broker will be around Rs 3.5 billion. Abdullah Tariq said that government and private companies in are extracting 1100 tonnes of LPG from all the oil and gas wells in Pakistan which is shrinking natural gas. On the other hand government plans import of LPG which will jack up cost of gas for masses. Theft of gas has reached to 12 per cent of total production or around 504 tonnes. This is the same amount of gas government wants to import but it would not stop leakage. It may be mentioned that price of local gas is $6 per British Thermal Unit (BTU) while cost of imported LPG stands at $ 24 per BTU. Presently country’s total production of

gas stands at 4200 mmcfd (million cubic feet per day) while demand in winter touches mark of 5900 mmcfd cubic feet.

Spain needs no sovereign bailout: German minister German Finance Minister Wolfgang Schaeuble said on Friday that Spain did not need a sovereign bailout on top of the package already agreed for its banks because it was on the right path to regain the confidence of markets.

BERLIN: “Spain needs no program because it is doing the right thing and will be successful,” he told foreign correspondents in Berlin. “What Spain needs is the confidence of financial markets and that is where Spain has real problems.” Schaeuble dismissed as “dangerous” the idea of giving Spain the full 100 billion euros earmarked for the recapitalization of its banks if it needs less than that amount. Regarding Greece, the minister said nobody in the euro zone wanted it to leave the currency bloc but Athens had to prove to the “troika” of international inspectors that it was sticking to the terms of its second international rescue package. Stressing that it had been “very difficult” to convince European leaders to give Greece another bailout, Schaeuble said: “Nobody wants Greece to leave the euro, but the question is whether it has met the conditions of its second aid program.” AGENCIES

Troika report on Greece may come after US vote An EU-IMF report into whether Greece’s debt is manageable looks set to be delayed until after November 6 because policymakers want to avoid any shock to the global economy before the US election, EU officials and diplomats said NEW YORK AGENCIES

The report by the ‘troika’ of Greece’s foreign lenders — the European Commission, European Central Bank and International Monetary Fund — was expected during October, possibly before a meeting of euro zone finance ministers on October 8. The study provides the basis for decisions on whether to disburse the next tranche of aid to Athens, which may otherwise run out of money to pay wages and pensions, default on its debt and perhaps be forced to leave the euro area. Differences inside the troika about the precise extent of Greece’s debt problems, combined with political pressure to hold off for another few weeks, look likely to mean a delay until mid-November. In the meantime, Greece will be kept afloat by issuing short-term treasury bills and its banks will get access to emergency funds from the Greek central bank. “The Obama administration doesn’t want anything on a macroeconomic scale that is going to rock the global economy before November 6,” a senior EU official told Reuters, adding that previous troika reports had also slipped. The European Commission’s representative on the troika, Matthias Mors, denied that the report could be delayed, and an official at Greece’s finance ministry said he

had been assured that there would be no slippage. A U.S. official said the United States had made clear to European officials that it wanted to avoid any “downside” economic surprises because of the fragile U.S. recovery, but denied that it had anything to do with the U.S. election. Several sources in Germany described those conversations with their U.S. counterparts and said the message had been that the Americans didn’t want surprises before the election. Most polls show President Barack Obama leading his Republican rival Mitt Romney, but voters remain sensitive to any event that could damage U.S. economic growth and hurt jobs. “It’s likely the troika report will be pushed back beyond the U.S. election date,” said a Berlin official who spoke on condition of anonymity. Asked if that was a special request from Washington, he replied: “They don’t want any surprises.” The European Commission’s spokesman on finance said on Friday the troika would take a week-long break from its work in Athens, the second time it has interrupted its mission since it began in late July, adding to expectations of a delay.

“The inspectors are expected to return to Athens in about a week,” spokesman Simon O’Connor told reporters. “As for a conclusion of the mission, I don’t have any dates to share with you,” he said, adding that it should be some time during October. “We can’t say exactly when.” “THEY DON’T WANT ROMNEY” Even if the mission does conclude its work on the ground in October, it will still take some time to write up its findings, the focus of which will be whether Greece will ever be able to get its debt down to a sustainable level. That analysis will either show that Athens can reduce its debts below 120 percent of gross domestic product by 2020, as required by the IMF, or that the target will be missed. If Greece is off-target by a wide margin, as many economists predict, financial markets will react negatively, concerned that another round of debt restructuring will be required to get government finances

back on a stable footing. A negative troika report could also revive pressure to force Greece out of the single currency area with potentially devastating knock-on consequences for other European countries and the global economy. European leaders have the same interests as the U.S. president in not destabilizing markets — their own economies have also been badly affected by the fallout from Greece, where the sovereign debt crisis began in January 2010. But one source said EU leaders’ motives went beyond macroeconomic stability. They also had political reasons to avoid rocking the boat before the U.S. election. “As far as European leaders are concerned, they don’t want Romney, so they’re probably willing to do anything to help Obama’s chances,” said the source, an EU official involved in finding solutions to the debt crisis. The problem for Obama is that if Europe’s leaders are seen, implicitly or otherwise, to be working to bolster his reelection chances, it could provide ammunition for the Romney campaign. European leaders have repeatedly been accused of acting too slowly and in a confused way to resolve the crisis, with a knockon negative impact on the United States. If they are now seen to be allying with Obama, it could dent his popularity.


18-Business Pages- 22th September_Layout 1 9/22/2012 6:02 AM Page 2

02 Business

Wall Street up on Spain optimism, Apple scales new peak Stocks opened higher on Friday as Spain moved toward reform measures in anticipation of a bailout package and as Apple debuted its latest iPhone worldwide, sending its shares up to a new peak. NEW YORK

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PAIN is considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package, sources with knowledge of the matter said. The country’s deputy prime minister later denied the government was mulling the freezing of pensions and the German finance minister said the country did not need a sovereign bailout on top of the package already agreed for its banks. “There is that news out of Europe, where they seem to be making more progress towards helping Spain out, so that is going to continue to kind of support us, for sure,” said Ken Polcari, Managing Director at ICAP Equities in New York.

China vows ongoing support to resolve euro crisis

After gaining about 6 percent since the start of August on expectations for new economic stimulus measures by world central banks, the S&P 500.SPX has seen muted action this week, barely moving 0.4 percent in either direction daily. There may be increased volatility towards the close Friday due to ‘quadruple witching’ - the quarterly settlement and expiration of four different types of September equity futures and options contracts. Expiration can lead to greater volume and volatility as players adjust or exercise their derivative positions.

“The option expiry is going to create this massive volume - as it did on the opening - at the close,” said Polcari. The Dow Jones industrial average .DJI gained 35.00 points, or 0.26 percent, to 13,631.93. The Standard & Poor’s 500 Index .SPX rose 5.31 points, or 0.36 percent, to 1,465.57. The Nasdaq Composite Index .IXIC advanced 17.33 points, or 0.55 percent, to 3,193.29. Apple Inc (AAPL.O) climbed 0.9 percent to $704.80, after earlier hitting an all-time high of $704.85. The company’s iPhone 5 hit stores around the world, giving the consumer giant a boost ahead

of the crucial end-of-year holiday season, even as rival Samsung Electronics Co (005930.KS) steps up its legal challenge over key technologies. Housing shares advanced, led by an 8.8 percent jump in KB Home (KBH.N) to $14.27 after the fifth-largest U.S. homebuilder posted a surprise quarterly profit and said its revenue backlog rose to a four-year high. The PHLX housing sector index .HGX climbed 2 percent. Oracle Corp (ORCL.O) added 0.9 percent to $32.54 after the software maker’s first-quarter met Wall Street expectations, and though the company hardware sales are expected to drop further after tumbling 24 percent from a year ago. Michael Kors Holdings Ltd (KORS.N) surged 6.4 percent to $55.85 after the company said it will likely earn more than it expected in the second quarter as the fashion and accessory designer banks on strong global sales. Darden Restaurants Inc (DRI.N) posted first-quarter earnings that beat analysts’ estimates, and the company stood by its sales and profit forecast for the year. Shares rose 4.5 percent to $57.18. Vivus Inc (VVUS.O) plunged 11 percent to $21.11 after the company said it expects a European committee to recommend against the approval of its obesity drug Qsiva, based on preliminary feedback from the committee.

WAPDA to start construction of four more dams

ATTOCK ONLINE

The Attock Chamber of Commerce and Industry (ACCI) on Friday reposed fullconfidence in the leadership of Tariq Sayeed and Iftikhar Ali Malik whose lifetime services have earned them unparalleled respect on national and global level. These two business leaders united the scattered and directionless business community and served their interests selflessly for decades which helped them earn admiration as well as confidence of 98 per cent of the community, said Tariq Mehmood, President ACCI. Speaking to business community, he said that Sayeed and Malik have always demonstrated leadership qualities on local, regional and international level which has resulted in improved trade and political relations with India, China, Iran and other countries. Tariq Mehmood said that people like Tariq Sayeed, Iftikhar Ali Malik and President FPCCI Haji Ghulam Kadir Sherani are like father figures to the community which get inspiration and strength from them. “We are all united, trust vision of our leaders and will continue to strive for the betterment of the country by all means,” he said. Tariq Mehmood, who is also Director Pak-UK Business Council and Chairman FPCCI Committee on Health, said that our leaders have ability to get many policies framed, amended and reversed for the economic revival. They have the skills to be heard by the policymakers at home and abroad and their greatest contribution is to keep hope alive in the hearts and minds of business community in the challenging times.

Oil rebounds in Asia on Spanish bailout talk

BRUSSELS AFP

China pledged continued assistance to help tackle the eurozone debt crisis, saying Europe was “on the right track” but needed to implement the measures agreed to fix its problems. Premier Wen Jiabao told EU and Chinese business leaders that Beijing had continued purchases of European government bonds in recent months and discussed cooperation with the new eurozone rescue fund, the European Stability Mechanism (ESM). As the 500-billion-euro ($648 billion) ESM becomes operational next month, “China will continue to play its part in helping resolve the European debt issue through appropriate channels,” Wen said. “Europe is on the right track in tackling its debt issue... What is crucial now is to fully implement the policies agreed” to put it on firmer ground, he told the meeting, held alongside the annual European Union-China summit. The EU and China form “one of the most important partnerships in the world,” added Wen. “I hold the development of this relationship close to my heart,” he said after signing a 49-point, four-page agreement with the EU ranging from foreign policy to research and development, and thousands of student scholarships.

ACCI reposes confidence in Sayeed, Malik

SINGAPORE LAHORE STAFF REPORT

The construction work on Naulong, Nai Gaj, Ghabir and Kurram Tangi dams – one each in Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa/FATA respectively – is being started on fast track basis, as the consultants and the contractors are being mobilised to the sites for the purpose. This was stated by the Pakistan Water and Power Development Authority (WAPDA) Chairman Syed Raghib Abbas Shah in a meeting with WAPDA senior officers here at

WAPDA House. The Chairman, while speaking of his priorities, said that in addition to initiating new schemes in water and hydropower sectors, completion of the under-construction projects in shortest possible time is the foremost priority of the present management of WAPDA. He said that on-time completion of the projects is vital in view of the increasing needs of water and electricity in the country. He directed the project authorities to expedite their efforts in completing the projects, so that their benefits could be accrued to mitigate water and power shortfall. Dilating upon his organisation’s chartered of duties, he

said that WAPDA should come up to the expectations of the people, as it deals with the two vital sectors in the country i.e. water and hydropower. He vowed that the present management will leave no stone unturned to make WAPDA an engineering organisation par excellence, adding that any suggestion for improvement in functioning of WAPDA will be highly valued. WAPDA Member (Power) Muhammad Qasim Khan, Member (Finance) Syed Nazakat Ali Shah, Secretary Muhammad Imtiaz Tajwar, General Managers, Chief Engineers and Director Generals of various formations attended the meeting.

AFP

Crude rose in Asia Friday on rumours that talks were under way to provide fresh help for the struggling Spanish economy, analysts said. New York’s main contract, light sweet crude for delivery in November, gained 61 cents to $93.03 and Brent North Sea crude for November delivery added 48 cents to $110.51. Trader sentiment was lifted by “rumours that the Spanish might be about to put on the table terms of a bailout”, said Jason Hughes, head of premium client management for IG Markets in Singapore.

Transworld musters positive response g

Transworld Enterprise services showcases Internet and Data products at 12th ITCN Asia KARACHI STAFF REPORT

The Transworld Enterprise Services (TES) and its exhibited products were positively received by conference delegates at the ITCN Asia exhibition, held from September 18th to 20th, 2012 at the Karachi International Expo Center. At the event, TES showcased its Premium IPT, MPLS/IPLC and Datacenter portfolios and did a soft launch for its Managed Cloud Services. These services leverage the infrastructure of its parent company, Transworld Associates Private Limited, which is Pakistan’s first privately owned Tier 1 submarine cable operator with local and international peering. “Such events have turned out to be quite successful in providing a single venue where one can converse with many current and potential customers”,

commented Mr. Zulfiqar Qazilbash, Vice President Commercial Operations, Transworld. “TES expects to significantly increase visibility through networking and collaboration opportunities available at ITCN Asia”, he mentioned. At this occasion TES also signed a contract with Credit Market Solutions for providing them premium Internet bandwidth. TES, a wholly owned subsidiary of Transworld, is providing connectivity based services to major enterprise customers of Pakistan. These services are designed to achieve optimum results for enterprise requirements like broadband connectivity, data transmission, application hosting, and disaster recovery. Premium products of TES include MPLS, Premium Internet bandwidth for businesses (IP Transit), Collocation in Landing Station Data Center & Managed Cloud Services.

Saturday, 22 September, 2012


Profit E-paper 22nd September, 2012