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BUSINESS Wednesday, 3 July, 2013

Canadian investors invited to invest in oil and gas sector ISLAMABAD: Inviting Canadian investors to invest in oil and gas sector, Petroleum and Natural Resources Minister Shahid Khaqan Abbasi said Pakistan has huge reserves of natural resources. He expressed these views while talking to High Commissioner of Canada to Pakistan Greg Giokas who called on Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi While talking to the Canadian High Commissioner, Shahid Khaqan Abbasi said that Pakistan enjoys cordial and friendly relations with Canada and pledged to carry these ties forward in the new Government. He observed that Pakistan has huge reserves of natural resources and there is an ample opportunity to invest in the oil, gas and mineral sectors. He said, “We welcome Canadian investment and technical support in the oil and gas sector in Pakistan.” Gres Giokas, congratulated the Minister on smooth transfer of power in Pakistan through a political process to the government, and hoped that this will help strengthen the democratic process in Pakistan. ONLINE

Pakistan-Indonesia forum to be held on 8th KARACHI




CCORDING to Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI) inflation during June stood at 5.85 percent which the market analysts said is surprisingly far below the market consensus of 7 percent. This was compared to 5.13 percent of May. During FY13, the CPI inflation settled at 7.36 percent compared to 11.01 percent in the same period last year. Moreover, Core Inflation CPI (Core NFNE) reached 7.8 percent YoY in June 2013 compared to 11.4 percent in Jun 2012. On a monthly basis core inflation increased by 0.4 percent in Jun-13 as compared to 0.3 percent a month earlier and

0.7 percent in the corresponding period last year. “The below than consensus inflation is mainly due to the partial incorporation of GST impact in the prices of Jun-13 as the impact is expected to distribute in two months (Jun-Jul), therefore the further impact of the GST can be seen in the next month (Jul-13) prices,” said InvestCap analyst Abdul Azeem. However, the analyst said, the rise in petroleum products and CNG was incorporated after the formal government notification. During the month in review (June), in food and non-alcoholic beverages group, the perishable items’ index reduced by 4.8 percent MoM due to decline in prices of onions -14.2 percent MoM, fresh fruits 10.1 percent MoM, fresh vegetables -4.2 percent MoM and eggs -2.62 percent MoM. However, food, alcoholic beverages



In order to further strengthen the trade relations between two brotherly countries, Indonesia and Pakistan, the Ministry of Trade of the Republic of Indonesia in collaboration with Indonesian Embassy in Islamabad and Indonesian Consulate General in Karachi as well as the Pakistan-Indonesia Business Forum (PIBF) will organise a business forum at a hotel on Monday. The forum will be attended by more than 20 Indonesian businessmen who will participate to the International Trade Exhibition ‘My Karachi Oasis of Harmony 2013’ as well as by about 200 Pakistani businessmen. Some high-ranking officials from Indonesian Ministry of Trade and Indonesian Chamber of Commerce and Industry as well as some prominent Pakistani businessmen will attend the seminar as panelists beside the Indonesian Ambassador. It will be followed by a meeting between Indonesian and Pakistani businessmen to discuss business matters.

and tobacco and clothing and footwear were the major items which caused a surge in CPI for Jun-13. In non-food items, the major increased was seen in the prices of cosmetics 6.96 percent, footwear 6. 16 percent, motor fuel 2.16 percent, sewing needle and dry cell 1.76 percent, construction wage rates 1.30 percent, text books 1.23 percent, washing soap 1.20 percent, marriage hall charges and doctor (MBBS) clinic fee 1.12 percent each, blades 0.91 percent and cotton cloth by 0.87 percent. “After the positive reply from IMF for the loan of $5 billion, it is expected that the improved foreign exchange reserves of the country would open the door for fur-


The Gross Domestic Product (GDP) of Pakistan could be at least 1.5 percent higher than the expected growth by 201415 if trade with India is fully normalised, trade experts said here Tuesday. They were speaking at seminar titled, ‘PakistanIndia Trade Normalisation’ organised by the Ministry of Commerce. This was the first of a series of seminars to engage stakeholders in dialogue on the way forward for trade normalization with India. The normalisation of trade with neighbouring country could create approximately 169,000 jobs besides saving Rs 70 billion annually on purchase of goods. Addressing the participants, secretary commerce, Qasim Niaz said that regional trade was very important to spur development and growth. He said that there were several examples of successful regional trade that led to development in European countries,

South America and East Asia, so promotion of regional trade in South Asia would bring good fruits also. He said that efforts were made in past to rationalise trade, however these could not materialize the full trade potential between two major economies of Asia, however added that paradigm shift was made in April 2011 by moving from positive to negative list of trade. He expressed the hope that experts of the seminar would come up with concrete recommendations for the development of trade between both the countries. Speaking on the occasion, Pakistan’s former ambassador to the World Trade Organisation (WTO) and renowned economist Dr Manzoor Ahmed identified five essential steps to normalise trade with India. He said that granting Most Favoured Nation (MFN) status to India or eliminating negative list, opening new land routes, developing infrastructure and border stations, enhancing trade facilitation and building capacity of National Tariff Com-

missions were the major steps to normalise trade between the two countries. With the help of trade data of last three years, he explained how the process of normalisation of trade had greatly benefitted the economy of Pakistan. He said that Pakistan’s exports through Wagah had gone up from almost zero in 2009-10 to Rs 15.9 billion in 2012-13. Similarly, the revenue collected has increased from just Rs 3 million in 2007-08 to almost Rs 3 billion. He said that these are exceptional growths that Pakistan has not achieved with any other country adding if it wants to achieve higher growth, the trade normalization with India would be the best route. During the seminar, the organizers disseminated a set of research conducted by the Institute of Public Policy (IPP) of the Beconhouse National University on the dynamics and impact of liberalization trade between Pakistan and India. The research was led by renowned economist Dr Hafiz Pasha. According to the research, conservative estimates indicate that the opening of trade with India will predominantly benefit Pakistan and could increase GDP by at least 1.5 percent in 2014-15 over the growth estimates.

ther assistance from ADB, WB and other donor agencies,” said the analyst. Therefore, he said, a better dollar reserves position would strengthen the rupee against the dollar, bringing stability in the prices of imported items. On the other hand, Abdul Azeem said, the IMF’s pressure on the government to reduce fiscal deficit either by improving tax revenue or by reducing power subsidy was expected to balloon up the inflation. “Therefore, we expect a rise in CPI for FY14 to 9.0 percent to 9.50 percent as against the target of 8 percent set by PML-N government,” said he.

PPL successfully tests gas-condensate in Sindh KARACHI NNI

The Pakistan Petroleum Limited (PPL), operator of Block 2568-13 (Hala) Exploration Licence with 65 percent working interest along with its joint venture partner Mari Petroleum Company Limited with 35 percent interest have announced the successful production testing of gascondensate from a deeper reservoir at Adam X-1 exploration well, located in District Sanghar, Sindh Province. The potential of deeper reservoir of Lower Basal Sands (Lower Goru formation), at a depth of 3450 meters was evaluated at Adam X-1 during May-June, 2013. During testing the well flowed 14.3 million cubic feet per day of gas and 125 barrels per day oil (condensate) at 40/64” choke. The well will be put on production immediately. The additional hydrocarbon reserves will reduce the gap between supply and demand of oil and gas during the current energy crisis in the country.

Investment in electronic media to rise to Rs 41b by 2015 ELECTRONIC MEDIA WILL BE EMPLOYING ABOUT 60,000 SKILLED PEOPLE BY 2015 ISLAMABAD APP

Electronic media is projected to get investment of around Rs 41 billion by 2015 while generating employment for 60,000 persons. According to official figures, projected investment in satellite television will be Rs 20 billion, Rs 13 billion will be invested in cable television and FM Radio will draw investment of Rs 1 billion. Multichannel multipoint distribution system (MMDS)/wireless broadband (WIBRO) will get investment of Rs 1.5 billion, internet protocol television (IPTV) Rs. 1.5 billion and interactive internet TV Rs 1 billion. Satellite radio and direct to home (DTH) are expected to get Rs 0.5 billion each of investment and mobile TV (content provision)

and mobile audio (content provision) will generate investment of Rs 1 billion each. Media in Pakistan has displayed massive expansion and growth during the last two decades owing to better liberalisation policies and effective regulatory procedures. The print media which is overwhelmingly a private sector monopoly is progressing both in terms of content and technology. The electronic media, a part of which is owned and operated by the state, has also expanded in terms of technology and outreach. In Pakistan, electronic media, both television and radio, is predominantly in the private sector while global media contents are available to Pakistani viewers through cable and satellite networks under the regulatory landing rights. The electronic media will be employing about 60,000 skilled people by 2015. 21,000 persons will get jobs in satellite television, 5000 in FM radio stations and 30000 in cable television by year 2015. 4000 persons will get jobs in sectors of multichannel multipoint distribution system (MMDS)/wireless broadband (WIBRO), internet protocol television (IPTV), interactive internet TV, satellite radio, direct to home

(DTH), mobile TV and mobile audio. The government has in place a policy in line with its framework for economic growth to promote electronic media. It plans to provide 100 percent TV coverage, including cable, especially in remote and less developed areas of the country and create a network of community-based FM radio stations through private sector in all the districts. Other steps include strengthening and enhancing the partnership between public and private sector in radio and TV and strengthening the technological base of public sector electronic media through replacement of the existing electronic equipment by state-of-the-art equipment. Switching over to digital broadcasting, installation of powerful medium and shortwave transmitters for regional and international coverage and enhancing the role of new media-mobile TV, mobile audio and internet Protocol TV are also part of the policy. In Pakistan, television viewership has reached 150 million people and radio receivers cover 100 percent population. According to official figures, there are 10 million cable subscribers, 2,700 licenced cable operators, 150-200 satellite channels

providing global content and 89 local satellite channels. Two companies are providing internet

protocol television, four mobile TV (content provision) and two are providing mobile audio (content provision).

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BUSINESS B Wednesday, 3 July, 2013

‘I have a passion for education’ LAHoRe



LAN Hatfield is the director learning of the Association of Chartered Certified Accountants (ACCA). He is responsible for developing and maintaining ACCA’s qualifications and continuing professional development requirements and ensuring that they are business-relevant and fit for purpose. With 20 years of experience, Alan is leading ACCA’s learning directorate since September 2010. Alan is a history graduate from Glasgow University and a member of the Institute of Chartered Secretaries and Administrators. He recently completed his MBA with distinction from Oxford Brookes University. Why DID you chooSe to Work In the eDucAtIon Sector? I chose to work in the education sector because I have a passion for education and how it can change peoples’ lives. Working for ACCA which I have done for over 20 years has allowed me to see how professional accountancy education, through the ACCA Qualification, can change people’s lives on a global scale as well as contribute to the growth of economies worldwide. Lifelong learning is very important to me and to the ACCA and I’m very proud that we offer qualifications and learning opportunities which support every stage of the careers of our students and members. WhAt LeD AccA to Work In PAkIStAn? ACCA has been working in Pakistan for more than 20 years. We had long recognised the huge potential in the country – with talented young people and a business sector that needed and still needs highly qualified finance professionals. We now have three offices in Pakistan – in Lahore, Karachi and Islamabad which provide services for students and members, along with ensuring we can connect with employers and tuition providers who are critical to our students and members enjoying successful careers hoW IS your exPerIence of WorkIng In PAkIStAn So fAr? We have been very impressed by the quality of students in the country and have enjoyed working with a range of stakeholders to help develop the profession here. There have been challenges recently as a result of a notice issued by ICAP. That is currently the subject of legal action involving the Competition Commission of Pakistan but we hope that will be resolved and we look forward to working in partnership with ICAP, a body for whom we hold the highest regard, in future to continue to develop the accounting profession. WhAt IS your ASSeSSMent of the PAkIStAnI StuDent BoDy? Pakistani students enjoy considerable success in the ACCA exams, with many going on to enjoy successful and rewarding careers in finance and business. They are very involved in student matters, and participate in networking events as well as engaging with social media on a range of issues which are of direct importance to them. There are students who will need additional support and we work to ensure that they have access to necessary resources and guidance, through as range of partnerships we have in Pakistan. WhAt PotentIAL Do you See In AccountIng AnD fInAnce AS A ProfeSSIon?

There is a huge potential for finance professionals with a complete range of skills, particularly in a rapidly emerging economy such as that of Pakistan, as well as in the wider region. There is also a demand across all sectors – whether in business, in banking, in the public sector or in practice, providing services to organisations and individuals alike, there are a great many opportunities. Increasingly, those with a background in finance or accountancy are getting to the very top of the business tree, as Finance Directors, Chief Financial Officers or as Chief Executives because they are seen as having the right skills to help organisations to meet the challenges in an increasingly complex and globalised marketplace hoW IS the ProfeSSIon rAnkeD In PAkIStAn? The profession is ranked very highly reputable in Pakistan. Professional accountants from Pakistan contribute to the business and economic growth of not only Pakistan but Middle East and South Asian region in particular and the whole world in general. The profession has become increasingly vibrant in the last few years leading the discussions on corporate governance, business ethics, the changing role of finance professionals, sustainability reporting, diversity in the profession and internationalisation of financial reporting and auditing standards. ACCA has been very pleased to share its highly influential globally impactful research in shaping these debates. WhAt hAS Been the trenD of AccA StuDIeS In PAkIStAn AnD hoW Do you thInk It hAS Been DIfferent froM gLoBAL trenD? Pakistan is different to many other markets, for example Europe where the employers play a significant role in the funding of ACCA students tuition. In Pakistan, employers generally do not financially support trainee exam and tuition related costs. They are not actively involved in monitoring the academic performance or providing trainees support to pass their exams. In Pakistan majority of ACCA students tuition and exam costs are financed by parents. We are working with the employers to ensure they are more actively integrated in the ACCA tuition and exams performance as it would motivate trainees to focus more dedicatedly on their ACCA studies and it will also support employers talent management agendas. Please share your views on the potential of the Pakistani students in the global market? Also for the aspiring local students shed some light on the career opportunities open after completing the qualification? There are a great many opportunities for students – as already mentioned, there is a huge shortage and therefore huge demand for highly qualified finance professionals. Many organisations, which have operations in Pakistan and around the world look for students with globally recognised qualifications, based on international standards, which enable finance professionals to work in a greater number of jurisdictions. ACCA has worked with tuition providers to meet that demand, and regularly surveys employers to ensure that we meet their needs for a skilled workforce. SInce you Are ALSo In-chArge of ADAPtIng the courSe to the chAngIng neeDS, teLL uS WhAt MAjor ShIftS In PAkIStAnI BuSIneSS Scene hAve you oBServeD over the PASt? Pakistani businesses have become more aware of the reporting trends internationally. We have seen

a number of Pakistani businesses buy into sustainability reporting principles coming up with their own sustainability reports as evidenced by increasing number of entries for ACCA-WWF Pakistan Environmental Reporting Awards. Islamic finance is becoming very popular in Pakistan. Awareness of the value of business ethics and the need to be more diverse in talent recruitment and management are few other trends we have observed. The role of CFO is changing and Pakistani businesses are keen to explore the new dimensions of the role whether it is to be a strategist, a decision maker, a trusted advisor to CEO, integrated reports initiator or the custodian of best practices of governance. All these trends have been part of ACCA qualifications and our members and students have played their role in making Pakistan businesses more integrated with international best practices. teLL StuDentS WhAt IS the BeSt WAy of StuDyIng AccA In PAkIStAn? In Pakistan we have a well-established network of Approved Learning Partners (ALPs) in major cities of Pakistan. They have a proven record of providing adequate support to students to pass ACCA exams. We have invested in Pakistan by working on a number of ALPs tutors capability building initiatives including Train the Trainer. We do recommend that students study at ALPs but there are number of other option available for example online learning and self-study. hoW Do you thInk StuDentS WILL BenefIt froM the AccA founDAtIon DIPLoMA? One of ACCA’s missions is to provide opportunity and access to people of ability around the world and support our members throughout their careers in accounting, business and finance. Since our beginnings, ACCA has worked to ensure that pathways into the accountancy profession are open and accessible, regardless of people’s background and previous experience. With that in mind and in order to give all our aspiring finance professionals in Pakistan every opportunity for success, we have been working closely with learning partners here to develop a Foundation Diploma, which offers the best preparation for students to progress to the Masters Degree level ACCA Qualification. It is important that students have the relevant knowledge and skills to enable them to advance onto this challenging qualification, and the Foundation Diploma offers just that. The Foundation Diploma was created after detailed consultation with employers, ACCA learning providers, members, students and other professional accountancy bodies and regulators. Youngsters increasingly aspire to have a qualification that is recognised globally, and gives them the chance to have a great career. Ultimately, ACCA’s Foundation Diploma will allow many students to have access to a global recognised qualification, which will give them the best possible career options. Any feeDBAck or ADvIce to StuDentS? I would advise them to be focussed on their studies. To achieve exam success, do a lot of practice and have a sound exam technique. Every student has to ultimately work and students in Pakistan need to work on being work ready. They should invest time in enhancing personal skills for example communication skills, CV writing skills, interview skills, commercial acumen and awareness of what is happening in the business world. Read newspapers and use internet to increase your understanding of the business world challenges and to improve your personality.

Major Gainers COMPANY Nestle Pak. Wyeth Pak Ltd Attock Petroleum Philip Morris Pak. Lucky Cement

OPEN 6174.05 1600.00 556.00 231.00 208.66

HIGH 6295.00 1680.00 572.00 242.55 218.85

LOW 6295.00 1640.00 564.99 235.00 208.95

CLOSE CHANGE 6295.00 120.95 1680.00 80.00 569.14 13.14 242.55 11.55 218.08 9.42

TURNOVER 20 1,220 114,500 34,900 1,250,700

1800.00 524.94 207.00 304.00 599.00

1700.00 511.00 200.06 304.00 590.00

1700.00 511.00 201.49 304.00 590.00

-89.00 -8.00 -7.71 -6.40 -6.00

520 500 2,100 200 200

23.27 14.44 4.69 18.96 89.20

22.22 13.95 4.40 18.60 85.80

23.26 14.26 4.49 18.80 88.18

1.09 0.19 0.17 0.25 2.41

25,863,500 23,450,000 10,368,500 10,152,500 9,407,000

Major Losers Bata (Pak) MithchellsFruit Pak.Int.Cont.SD Indus Motor Co XD Island Textile

1789.00 519.00 209.20 310.40 596.00

Volume Leaders P.T.C.L.A 22.17 Fauji Cement 14.07 Wateen Telecom Ltd 4.32 Bank Al-Falah 18.55 D.G.K.Cement 85.77

Interbank Rates USD GBP JPY EURO

PKR 99.6156 PKR 151.4356 PKR 0.9985 PKR 129.8091

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

100.40 129.47 150.83 0.9870 93.88 12.67 27.15 26.64

SELL 100.65 129.47 150.80 0.9954 95.38 12.89 27.35 26.85

Senate body urges overseas Pakistanis for investment ISLAMABAD

committee on Tuesday. Senator Haji Saifullah Bangish, Vice Chancellor Sindh University Senate’s Standing Committee Nisar Ahmed Mughul and other on Commerce Convener Dr officials attended the meeting. Karim Ahmed Khawaja on Mughul informed the commitTuesday said the Pakistanis who tee that Pakistani people who migrated to the US are migrated to other counserving in different tries at the time of Dr Khawaja fields including EnPartition should be medattracted to invest says education gineering, ical and in the country. and energy sector education in the He said at the US. Dr time of partican be improved Khawaja said tion, hundreds that overseas of families mi- by facilitating 321 Pakistanis should grated to Europe Pakistani-origin be attracted to inand Arab countries investors vest in Pakistan and established their through Interior Minbusinesses abroad. “Pakistani billionaires living abroad istry, Foreign Ministry and specially in Saudi Arabia, Hong commercial attaches abroad. “If Kong, Australia, and India overseas Pakistanis use their should be facilitated and given sources in Pakistan, the country maximum opportunities to in- can get rid of depending on vest in Pakistan”, Dr Karim other countries and loan providKhawaja said while chairing the ing international institutions.” APP

CORPORATE CORNER ffC holds free eye camps in Pindi rural areas

June 2013 in Chakbeli Khan, District Rawalpindi where local community was benefitted by free eye checkup, medicine and minor operations were carried out by competent doctors of Al-Shifa Eye Trust. The doctors saw over 800 patients, issued medicines and glasses after on spot checkups. About 30 patients were selected for minor operations at Al-Shifa Eye Trust Hospital, Rawalpindi. FFC reaffirmed its commitment to helping the community through its CSR programs in future. PR

ogdCL follows PPara procurement rules RAWALPINDI: FFC Corporate Social Responsibility program has diverse objectives for uplift of community in Health, Education and through other Relief Programs for underprivileged. FFC along with Al-Shifa Eye Trust has planned to organize series of free eye camps in rural areas near Rawalpindi District. The first eye camp was organized on 24

ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) follows Procurement rules and regulations of PPRA. All the bidding process is being carried out in transparent manner. Technical Evaluation of for award of Nashpa EPCC Contract has been completed and being processed for financial bid opening and evaluation strictly as per PPRA and OGDCL’s rules. Technical Evaluation has been placed on 20-06-2013 at OGDCL website for information of all the bidders. OGDCL is under

obligation to respond any grievance made by the bidders under the PPRA Rules. Furthermore, some of the information given in the news report are not correct. M/s ADNOC and ARAMCO have not participated in Nashpa EPCC Tender. Incharge for KPD Project has been established and OGDCL shall ensure timely completion of the said project. PR

PaCra maintains ratings of Soneri Bank Limited ISLAMABAD: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and shortterm entity ratings of Soneri Bank Limited at “AA-” (Double A minus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect improving business profile of SBL emanating from (i) growth in system share, albeit gradual (ii) increasing outreach and (iii) improving profitability mainly supported by trade finance linked non-fund based income. Although SBL carries cautious credit

expansion, it could not isolate itself much from the impact the weak socio-economic environment. The bank’s asset quality remained under pressure with limited improvement. Keeping in view, the bank has been continuously improving its risk management infrastructure. Meanwhile, the management has geared up recovery efforts against existing infected portfolio. Going forward, the bank, while largely consolidating its existing infrastructure, would focus on a cautious growth strategy to fortify its market positioning in the highly competitive banking industry. The bank maintains good liquidity profile and adequate risk absorption capacity. PR

Communications secy makes surprise raid ISLAMABAD: Federal Secretary Communications Arshad Bhatti made a surprise visit to General Post Office Islamabad. Chief Post Master Zulfiqar Hasnain was suspended for negligence and mismanagement while notices were issued to officials found absent. Bhatti has directed the Post Master General and his team to make surprise visits to all post offices. PR

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