Issuu on Google+

16-17 Business Pages (01-06-2013)_Layout 1 6/1/2013 4:53 AM Page 1

take the place of those which fail. — Napoleon Hill

B

BuSiNESS Saturday, 1 June, 2013

SHC issues contempt notices to Adil Gilani, Saad Rashid KARACHI STAFF REPORT

Justice Azizur Rehman of the Sindh High Court on Friday restrained Adil Gilani from allegedly misusing the platform of Transparency International-Pakistan (TIP) for damaging the reputation of JS Bank and for promoting the personal agenda of the business opponents and rivals. JS Bank had filed a suit against Saad Rashid, Syed Adil Gilani, Transparency InternationalPakistan and Transparency International Secretariat alleging that Adil Gilani and Saad Rashid were misusing the TIP platform for damaging the business of the bank, its sponsors and subsidiaries. It also submitted that Adil Gilani, who was an employee/business associate of Aqeel Karim Dhedhi, a business rival of Jahangir Siddiqui, was misusing the TIP forum to promote personal agenda to the detriment of bank’s name and business. The Sindh High Court had issued a restraining order against defendants restraining them from making/circulating false and libelous material but in spite of the stay order, Adil Gilani had continued with malicious propaganda. The court has now issued contempt notice to Adil Gilani for June 12.

MAPNA offers solution to Pakistan’s energy crisis

( BHASHA DAM CONSTRUCTION

(

01

PML-N tAkeS NotiCe of GLitCHeS T LAHORE INP

HE Pakistan Muslim League-Nawaz (PMLN) leadership has taken strong notice of the revelation made by a former WAPDA chairman that the World Bank did not want the construction of the Diamer-Bhasha Dam and was making the project controversial. According to PML-N sources, it has been decided by the party leadership to thoroughly probe this new revelation, made by former WAPDA chairman Shakil Durrani that after Kalabagh, the smooth and early construction of the promised Diamer-Bhasha Dam, which would produce 4,500MW electricity and store 8,000,000 acres feet of water, is being endangered both by the World Bank and the present chairman of WAPDA. An official note recently circulated by the former WAPDA chairman and presently adviser to the Ministry of Water and Power Shakil Durrani, to all concerned revealed that the World Bank did not want construction of the dam though the Asian Development Bank (ADB) and Friends of Democratic Pakistan are willing to finance the project. “It is unfortunate that the World Bank is creating a controversy that might result in further delaying a project (Bhasha Dam) which was unanimously endorsed by the Council of Common Interests and has a national consensus behind it,” the adviser said according to media reports. The official note, which has been sent

to the Planning Commission deputy chairman, water and power secretary, WAPDA chairman and others reflected not only on the World Bank’s reservations on the Bhasha Dam but also disclosed how in a high-level meeting the WAPDA chief recently preferred Dasu Dam to Bhasha. Shakil Durrani in his note added that

Bhasha would also serve as a flood control dam and would be instrumental in increasing the life of Tarbela by at least 35-50 years. The flood damages in 2010 amounting to $10 billion and the loss of 2,000 lives could have been avoided if there was a large storage upstream. He also felt that the costs of Dasu

NEC to meet on June 8; PML-N to present first budget on June 12 ISLAMABAD INP

Pakistan Muslim League-Nawaz (PML-N) government will present its first federal budget on 12th June, 2013.

The new Finance Minister Ishaq Dar will present the budget for the financial year 2013-14 and is already in touch with officials of Finance Ministry and Federal Board of Revenue giving them broad guidelines on policies of the PML-N.

FBR imposes tax on import of mobile phones ISLAMABAD ONLINE

An Iran-based global company has offered immediate solution to the Pakistan’s prevalent power crisis which has pulled the economy down and crippled general life. Iran Power Plant Projects Management Company (MAPNA), the sixth largest power company in the world says it can bridge the gap between demand and supply of electricity within months. A delegation headed by Muhammad Hussain Baqri, head of international communications MAPNA said this while talking to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal. He said Iran’s installed capacity is 70,000 MW out of which MAPNA is providing 67,000 MW and can easily provide up to 10,000 MW to Pakistan on very economical rates compared to any other neighbouring country. Pakistan’s current electricity shortfall stands at 7,000 MW. Baqri said MAPNA, having 39 subsidiaries, has its own gas fields and power plants construction facilities. It has been operating in 18 countries and it can also build power plants having international standards within 15 months with 20 percent discounted rates. He said the EUR 30 billion company also has interests in oil and gas, wind power and railways and it is willing that Pakistan improve its railways. The delegation also expressed interest in setting up power plants with 1,000 MW capacities and to supply and install 25 MW small power plants on ground as well as on barges to help Pakistan in overcoming the energy crisis on an urgent basis.

ISLAMABAD ONLINE

In a surprising move, the Federal Board of Revenue (FBR) imposed sales tax ranging between Rs 150 to Rs 500 on import of all types of mobile phones whereas tax was also imposed on sale and activation of SIM cards. On the import of cheap mobile phones‚ Rs 150 per unit sales tax will be payable‚ Rs 250 on expensive mobiles while Rs 500 would be payable on the import of smart phones. In a notification issued by FBR, tax rates on mobile phones were revised downwards with three slabs and tax collection at the time of sale of each new SIM was re-imposed. This new notification, SRO 460 of sales tax, said tax on mobile

Dam have been understated and the construction period deliberately condensed by the World Bank. The actual cost of the Bhasha Dam would not be more than $2 billion as compared to that of Dasu Dam, he said. In the report he said a lobby in the World Bank was against the Bhasha Dam construction.

phones will be collected at two levels, one at source while another collection will be made at the time of sale of each new SIM.According to the SRO, Rs 150 sales tax is imposed on phones with a 2.0 mega pixel camera or less, and or with a screen size of 2.6 inches or less. A tax of Rs 250 will be deducted at source for all dual camera p h o n e s

(front and rear) with cameras ranging from 2.1 to 10 mega pixel, screen size of 2.6 inches to 4.2 inches or with processors lesser than 2.0 GHz. Rs 500 tax will be deducted at source if the phone has cameras of over 10 mega pixel resolution, touch-screen with more than 4.2 inches and/or dualcore or higher processors. All iOS phones, Android 2.3 or higher, Windows 8 or Blackberry devices will qualify for a Rs 500 tax automatically. Moreover, Rs 250 as sales tax will be deducted from mobile phone operators on sale of each new SIM. With this, the activation tax on new SIMs, which was – according to the April 4th SRO – transferred to mobile phone imports, is now re-applied. Mobile phone companies will have to maintain proper records of all SIM cards sold or activated for a period of three years.

Official sources said on Friday that before the budget, National Economic Council (NEC) will meet on June 8th. NEC session will be chaired by Prime Minister Nawaz Sharif and attended by chief ministers and finance ministers of all four provinces.

Higher input costs weigh in on sugar sector KARACHI: The profitability of local sugar industry is expected to remain subdued as the sector is facing high input costs in the form of increased sugarcane prices, said market observers. Moreover, they said, the withdrawal of inland subsidy of Rs1.75 per kg on export is also discouraging the export of sugar resulting in further downward pressure. The government had set an export target of 1.2 million tonnes of sugar for the current season. The total sugar export till April end 2013 remained at 0.78 million tonnes, leaving a shortfall of 0.42 million tonnes. “Furthermore, the expected stock of 6 million tonnes is sufficient to meet the local demand of 4.3 million for the current season and this further reduced the chances of a sugar price hike,” InvestCap analyst M Irfan Saeed said in his report issued on Friday. The topline of the sample companies, he said, had increased by 15% year-on-year (YoY) to Rs 30.82 billion during the second quarter of financial year 2013 (2Q13) ended March’13 as compared to Rs 26.9 billion in the corresponding period last year. “The main reason behind the rise in sales is increasing off-take of the sector,” the analyst viewed. During the said quarter, he said the rise in topline was due to better off-take as most of the sugarcane was crushed during the first quarter and sold during the second. The analyst based his analysis on the sample of 24 listed, out total 28, sugar mills. However, the decline in average sugar prices, 6% YoY, to Rs 52.70 per kg during the second quarter suppresses the topline growth, he said. A massive surge in the sugarcane purchase price (16% YoY) paid by sugar mills (Rs 174 per 40 kg as compared to Rs150 per 40 kg during last season) was the major reason behind the phenomenal decline in gross profit of the sector, he said. STAFF REPORT


16-17 Business Pages (01-06-2013)_Layout 1 6/1/2013 4:54 AM Page 2

difficult task that demanded our best.

Theodore Isaac Rubin

02

BuSiNESS B Saturday, 1 June, 2013

kSe index gained 15pc in May, highest in 50 months KARACHI STAFF REPORT

The Karachi Stock Exchange 100 index posted a return of 15 percent in May 2013 as equity investors cheered the change in political setup after May 11 elections. “Further support was added by strong foreign flows,” said a report issued on Friday by Topline Research. The benchmark KSE100 index gained 2,841 points in May. The report said bifurcating the numbers, index rallied 934 points before elections while post elections it gained 1,907 points. “This is the highest monthly return posted by the market since March, 2009, where the market was in the recovery phase post 2008 crisis,” the report said. Average daily traded volume stood at Rs 10 billion ($102.8 million) during the month, up 96 percent against the 12 month per day average of Rs 5.2 billion ($52.4 million), while they are the highest since October, 2009. In share terms, average volume stood at 340.7 million a day in May. Net foreign buying recorded at $265 million, which included $172 million worth of net buy in ULEVER, according to NCCPL data (May 30, 2013).

india’s economic growth falls to decade low of 5%

NEW DELHI

I

INP

NDIA’S economy grew 5 percent in 2012-13, its lowest rate in a decade, government data showed on Friday. Gross Domestic Product (GDP) grew at 4.8 percent in the quarter ending March 31. Low business confidence, slumping investment, high infla-

tion and weak export demand from Western countries were blamed for the bleak performance which comes ahead of national elections scheduled for next year. In the fourth quarter to the end of March, GDP grew by 4.8% year-on-year (YoY), slightly higher than the previous quarter when it expanded by 4.5%, according to the data from the statistics ministry. Despite government efforts to talk up the economy after a burst of pro-market reforms at the end of

last year, most independent analysts see continuing slack demand and few quick fixes. Global ratings agency Standard and Poor’s warned earlier this month that India faces at least “a one-in-three” chance of losing its prized sovereign grade rating amid new threats to economic growth and reforms. India’s BBB-minus investment rating is already the lowest among its BRICS peers Brazil, Russia, China and South Africa and cutting it to “junk status” would raise the country’s hefty borrowing costs. The government led by Prime Minister Manmohan Singh and the Congress party has been dogged by corruption scandals during its second term in office and has struggled to push through promised pro-business legislation. It is scheduled to face the electorate next year having been unable to sustain the scorching growth rates of the last decade which were frequently near 10%. India’s wholesale inflation, its most widely watched measure, cooled last month to a surprise 41-month low of 4.89%. But the consumer price index is at 9.39%, led mainly by high food and beverage prices.

Major Gainers COMPANY Wyeth Pak Ltd Nestle Pak. Shezan Inter. MithchellsFruit Sanofi-Aventis

OPEN 1417.00 6542.00 652.78 454.84 407.78

HIGH 1487.00 6600.00 685.40 477.58 426.99

LOW 1410.00 6600.00 685.40 435.00 426.99

CLOSE CHANGE 1487.00 70.00 6600.00 58.00 685.40 32.62 474.33 19.49 426.99 19.21

TURNOVER 650 100 100 7,500 100

1730.01 1810.00 773.99 448.50 190.00

1730.00 1810.00 700.63 437.00 190.00

1730.00 1810.00 713.70 438.39 190.00

-70.00 -39.99 -23.80 -11.61 -10.00

100 100 4,300 1,300 500

5.16 3.00 11.88 14.80 14.14

4.35 2.66 10.67 14.10 13.45

5.16 2.97 11.81 14.80 13.77

1.00 0.32 0.93 1.00 0.59

51,050,000 46,435,500 46,353,500 32,281,000 31,226,000

Major Losers Bata (Pak) Colgate Palmolive Island Textile Exide (PAK) Sunrays Textile XD

1800.00 1849.99 737.50 450.00 200.00

Volume Leaders B.O.Punjab(R) NIB Bank Limited TRG Pakistan Ltd. B.O.Punjab Jah.Sidd. Co.

4.16 2.65 10.88 13.80 13.18

interbank Rates USD GBP JPY EURO

PKR 98.5392 PKR 149.7895 PKR 0.9802 PKR 127.9039

Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal

99.70 127.63 149.42 0.9717 94.84 12.56 26.90 26.40

SELL 99.95 127.89 149.68 0.9818 96.52 12.79 27.15 26.65

CORPORATE CORNER PC Rawalpindi wins int’l Hotel Award 2013-14

KUALA LUMPUR: The elite of the Asian hospitality industry gathered at the Shangri-la Hotel in Kuala Lumpur to hear the long-anticipated results of the Asia Pacific Hotel Awards. Pearl Continental Hotel, Rawalpindi won an award for the category of Best Airport Hotel for Pakistan. A total of 94 awards were given to 19 countries in the region for a variety of hotels, ranging from small to large and general to specialty. Sheharyar Mirza, General Manager Pearl Continental Hotel, Rawalpindi, said “Congratulations to all Pakistanis, It is the victory of whole nation, It’s an award for the Country and we are proud to hold the green flag high in international competitions” The International Hotel Awards received entries from Asia Pacific companies in 19 countries. Newcomer countries to the competition were Turkmenistan, Pakistan, New Zealand, Laos and Macau. PR

Rs 1bn LUMS-DfiD partnership for poverty alleviation LAHORE: The UK government and the Lahore University of Management Sciences (LUMS) will work together to help nearly 400 of the brightest students from disadvantaged households in Pakistan attain quality higher education. According to an agreement, signed Thursday, LUMS and the UK Government’s Department for International Development (DFID) agreed to launch the Empowerment through Education Initiative, which aims to help alleviate poverty through quality education, allowing these young people to go on to earn more money through better jobs and so lift themselves and their families out of poverty. The five-year programme will be managed by LUMS, Pakistan’s leading University, which will identify and support students who would otherwise be unable to afford quality higher education, for undergraduate and graduate degrees. The programme will target impoverished regions of the country. It will also have a special focus on girls – to increase their access to higher education. PR

New SMeDA plan to create 0.27m new enterprises LAHORE: The new five year business plan being developed by the Small and Medium Enterprises Development Authority (SMEDA) for sustainable development of the country will create 0.27 million new enterprises within next five years. It was disclosed SMEDA CEO Sardar Ahmad Nawaz Sukhera while giving a press briefing on today at a local hotel. He informed that the country had 1.73 million enterprises at present and the implementation on SMEDA proposed plan would raise the number up to 2 million by the year 2018 with an addition of 0.27 million new SMEs, which will create 10 million new jobs by enhancing number of 14.85 million jobs at present to 25 million jobs by the year 2018. PR

Standard Chartered unveils Digital Banking vision in Pakistan

KARACHI: Standard Chartered announced its digital banking vision aimed at enhancing the customer banking experience in Pakistan. This is part of the Bank’s global focus on ‘Digitisation’ - socialising personal banking and extending customers’ digital lifestyle into banking. At a mesmerising themed event held in Karachi today, the Bank launched ‘Breeze’, its award-winning Mobile Banking application, making Pakistan the second market in the MEPA region where this application is available. Breeze Mobile banking is designed to address the needs of globally-connected customers who are onthe-go, tech-savvy, and who value transaction freedom and convenience. Breeze’s introduction to Pakistan follows successful launches in India, Malaysia, Singapore, Hong Kong, Korea, China, Thailand and UAE. Commenting on the Bank’s focus on Digitisation, Raheel Ahmed, Regional Head of Consumer Banking, Middle East, Pakistan and Africa at Standard Chartered Bank said: “Today’s consumers are tech-savvy and mobile. They want banking that not only meets their financial needs but anticipates them. At Standard Chartered our focus on digitisation revolves around the customer; we believe that technology has to be useful, intuitive and most importantly seamless. We believe that

digitisation goes beyond online and mobile banking services; we continue to transform our business and invest for long-term growth, with a focus on digital technologies that we believe will shape the future of banking.” The Bank is investing in technologies that will enhance customer interaction by making banking experiences more secure, efficient and money management simpler while complementing the rest of the banking channels and services. Commenting on the launch of Breeze, Naseer Hassan, Head of Consumer Banking, Pakistan, Standard Chartered said: “The launch of Breeze follows extensive research into the banking behavior of individuals and aims to provide customers with an easy, secure, and user-friendly banking channel. By adopting a digitisation strategy and providing our customers with digital banking tools, products and services, we aim to extend the customer’s digital lifestyle into banking and enhance the way our customers interact with us.” Breeze is available for Android, iPhone, BlackBerry and Nokia Symbian devices. iPhone customers can download the ‘Breeze Pakistan’ application from the App store.PR

energy efficient: the LVS Refrigerator series from Dawlance gets cooler KARACHI: Known for its reliability, Dawlance the number 1 home appliance brand of Pakistan has yet again introduced an innovative product that has been especially designed to counter the ongoing energy crisis. The Low Voltage Startup (LVS) series of refrigerators is equipped with technology that ensures regular cooling of the refrigerator even when the voltage power is as low as 135 V. With thicker insulation, the refrigerator is capable of retaining the cooling for up to fifteen hours without electricity. The design has been crafted to cater to the decor of every household and caries a spacious interior which is 10% bigger than other refrigerator brands available in the market. PR

Hair & Scalp Health Week’ celebrated by Head & Shoulders KARACHI: Head & Shoulders, the world’s leading anti-dandruff shampoo recently partnered with renowned dermatologists from across Pakistan to celebrate the third ‘Hair and Scalp Health Week’, held from May 24 to May 26. Head & Shoulders partnered with top dermatologists from twelve cities across Pakistan including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Bahawalpur, Multan, Sahiwal, Chakwal and Abbottabad, to provide consumers with free hair care consultation. The interested people could book an appointment by simply calling a toll free number from anywhere in Pakistan. PR

kASHf Microfinance Bank announces fiNCA acquisition LAHORE: Kashf Microfinance Bank Limited (KMBL) today announced an equity injection of PKR 824.7 million by FINCA Microfinance Cooperatief U.A. (Netherlands). With this transaction, FINCA becomes the majority shareholder of KMBL, acquiring 82.8 percent of the shares. Speaking at a ceremony in Islamabad to mark the occasion, M. Mudassar Aqil, CEO of KMBL, characterized the transaction as an ideal match of FINCA’s global reach with KMBL’s local depth. “KMBL was founded to serve the citizens of Pakistan with the financial tools everyone needs to fuel their productivity and create a better life. Now, with a strengthened capital base and with the technical support made possible from FINCA’s 28year history of global leadership, KMBL stands today even better positioned to fulfill our mission of job creation and poverty alleviation.” PR

NBP eyes energy farm sectors KARACHI: After implementing core banking application, National Bank of Pakistan (NBP) now intends to prioritise financing energy (Rs,125 Billion) and agricultural sectors over the coming years. National Bank had successfully implemented core banking application in its main branch to provide ‘superb’ customer services, besides ensuring efficiency across the banking functions.”The NBP has launched core banking application to strengthen its internal banking system, facilitating its customers. After the successful launch of the main branch, the bank is planning to introduce core banking application in all its branches. According to the plan, core banking application will be implemented in 250 branches over the next four months. NBP has already completed a pilot project of online system and at present, with 1,300 online branches, the bank has become the largest bank with 100 percent online branch network.”As the entire country is facing a serious crisis of energy followed by mounting circular debt, the bank is also planning to extend its financing to the energy sector. NBP “will finance energy-related project on top priority”. PR

ISLAMABAD: Zong representatives hand over car keys to Muhammad Salman of Hyderabad and Fahimullah of Islamabad, winners of Zong Carnama offer. PR


Pro 01 06 2013 layout 1