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An advertising agency is 85 percent confusion and 15 percent commission — Fred Allen
BUSINESS Thursday, 3 October, 2013
Reuters CEO warns of ‘tough decisions’ ahead NEW YORK: Reuters Chief Executive Thomson Tuesday warned employees of “tough decisions” ahead for the media and financial information group, which has already announced 2,500 layoffs since the beginning of the year. CEO James Smith announced the appointment of a new “chief transformation officer,” Neil Masterson, to help direct the shifts planned for the British-Canadian company. “I know we’ll have to take many tough decisions to redirect our efforts toward our future potential,” Smith wrote in a letter to the company’s 60,000 salaried employees, extracts of which were published on the web site The Baron. The web site includes former Reuters employees and focuses on company news. “We need to simplify our business,” Smith said in the letter. “We need to respond to opportunities more quickly. We need to better align resources behind our most promising growth opportunities,” he said. AGENCIES
France investing to produce 1,000MW for Pakistan: envoy ISLAMABAD AGENCIES
F
RENCH Ambassador to Pakistan Philippe Thieband said Wednesday France was backing Pakistan in its efforts to overcome energy crisis and was investing to save 1000 MW for the country. Talking to media persons after inaugurating a road show titled, ‘world of energy efficiency for a better Pakistan,” here by Schneider Electric, a company which offers solutions to energy management, the ambassador said France was collaborating with other partners including the Asian Development Bank on different components of energy-related projects and one of these schemes which cost $600 million would help Pakistan save 1000 WM. Replying to a question, he said France had international commitments and would abide by them with regard to the Pakistan-
Microsoft investors push for chairman Gates to step down NEW YORK AGENCIES
Pak starts sending monetary details to IMF ISLAMABAD: The State Bank of Pakistan has started sending the details of financial matters of the country to the International Monitory Fund (IMF) on regular basis. As per sources of the ministry of finance, the State Bank will dispatch the balance sheet to the IMF on daily, weekly, monthly and quarterly basis. Under the terms of agreement with the IMF, Pakistan is legally bound to send details of monetary matters. Reports sending on daily basis include foreign exchange market and Interbank market. While on monthly basis, statistical details of tax collection and subsidy of power sector will be sent. Details regarding statistics of privatization, tax dues and circular debt will be sent to the IMF on quarterly basis while number of taxpayers, collection record of big units including details of production and demand of electricity will be also sent to the IMF. ONlINE
Iran gas pipeline project. The ambassador inaugurating the show, he lauded the mansaid Pakistan is a sovereign state and she agement of Schneider Electric for bringing their whole product profile took decisions on their own for under one roof. meeting its energy needs. He said such road As far as the shows will definitely French government France has leave an impact on was concerned, he international commitenergy efficient added, it would measures in fugo by the interments and will abide by ture. He said national comthem with regard to the the road show mitments, was being adding Pakgas pipeline Pakistan-Iran held under the istan had not project. Pakistan is a umbrella camrequested for paign expericooperation sovereign state and she ence efficiency with regard to takes decisions on her to showcase the the Pak-Iran gas complete energy pipeline project. own for meeting its solution portfolio of He said France energy needs Schneider Electric was focusing on small under one roof. He said projects including the event would act as a plat“Munda Dam” and other hyform to educate the national stakeholders dropower projects to efficiently ease energy crisis in Pakistan. Earlier about energy solutions and seek to ad-
Three of the top 20 investors in Microsoft Corp are lobbying the board to press for Bill Gates to step down as chairman of the software company he co-founded 38 years ago, according to people familiar with matter. While Microsoft Chief Executive Steve Ballmer has been under pressure for years to improve the company’s performance and share price, this appears to be the first time that major shareholders are taking aim at Gates, who remains one of the most respected and influential figures in technology. There is no indication that Microsoft’s board would heed the wishes of the three investors, who collectively hold more than 5 percent of the company’s stock, according to the sources. They requested the identity of the investors be kept anonymous because the discussions were private. Gates owns about 4.5 percent of the $277 billion company and is its largest individual shareholder. The three investors are concerned that Gates’ role as chairman effectively blocks the adoption of new strategies and would limit the power of a new chief executive to make substantial changes. In particular, they point to Gates’ role on the special committee searching for Ballmer’s successor. They are also worried that Gates – who spends most of his time on his philanthropic foundation – wields power out of proportion to his declining shareholding. Gates, who owned 49 percent
of Microsoft before it went public in 1986, sells about 80 million Microsoft shares a year under a pre-set plan, which if continued would leave him with no financial stake in the company by 2018. He lowered his profile at Microsoft after he handed the CEO role to Ballmer in 2000, giving up his day-to-day work there in 2008 to focus on the $38 billion Bill & Melinda Gates Foundation. In August, Ballmer said he would retire within 12 months, amid pressure from activist fund manager ValueAct Capital Management. Microsoft is now looking for a new CEO, though its board has said Ballmer’s strategy will go forward. He has focused on making devices, such as the Surface tablet and Xbox gaming console, and turning key software into services provided over the Internet. Some investors say that a new chief should not be bound by that strategy. News that some investors were pushing for Gates’ ouster as chairman provoked mixed reactions from other shareholders. “This is long overdue,” said Todd Lowenstein, a portfolio manager at HighMark Capital Management, which owns Microsoft shares. “Replacing the old guard with some fresh eyes can provide the oxygen needed to properly evaluate their corporate strategy.” Kim Caughey Forrest, senior analyst at Fort Pitt Capital Group, suggested now was not the time for Microsoft to ditch Gates, and that he could even play a larger role. “I’ve thought that the company has been missing a technology visionary,” she said. “Bill (Gates) would fit the bill.”
dress energy challenges by offering solutions that add value to one’s business in the long-run while aimed at all relevant audience of Schneider Electric - end users, government entities and the partners, the event will also touch upon key innovative and industry leading breakthroughs Schneider Electric have achieved globally including Ecostruxure, Struxureware and Smartstruxure. The event is being leveraged as a platform to showcase Schneider Electric’s portfolio of integrated solutions that facilitate intelligent energy management for its customers. Benoit Dubarle, Country President UAE, Oman & Pakistan, Schneider Electric Gulf said, “Our road show offers a unique platform to identify new opportunities and a chance to meet with influential leaders and decision makers in the sectors. We focus on energy, IT, finance, government, hotels, healthcare and manufacturing.”
PTCL bids for rival Warid Telecom DUBAI AGENCIES
Pakistan Telecommunication Co (PTCL), a unit of UAE’s Etisalat, has submitted a takeover bid for rival mobile operator Warid Telecom, according to a filing with the Karachi stock exchange. PTCL made the offer to acquire 100 per cent of Warid on Sept. 30 and it is valid for 30 days, the statement said, without giving the price offered or PTCL’s plans for the company. Reuters reported in June that Warid had been put on the block in a sale likely to fetch up to $1 billion. The sector has been ripe for consolidation as a troubled economy and stiff competition force profit margins lower. Buying Warid would make PTCL’s Pakistani mobile business ufone the country’s second-biggest mobile operator by subscribers, although it is unlikely to be the only bidder. In September, China Mobile’s Zong said it was looking seriously at acquiring Warid, the fifth-biggest Pakistani mobile company. Warid was not immediately available for comment. Vimpelcom’s Mobilink was market leader with 36.7 million subscribers at the end of May, followed by Norwegian company Telenor’s 31.7 million, according to the Pakistan Telecommunications Authority (PTA), the industry regulator. China Mobile’s Zong had 20.2 million, ufone 23.9 million and Warid 12.5 million. PTCL’s statement warned the bid for Warid was subject
to regulatory approvals and could be complicated by a long-running dispute between Etisalat and Pakistan’s government. Etisalat owned 90 per cent of a consortium that paid $2.6 billion for a 26 per cent stake in PTCL - Pakistan’s former monopoly landline operator - in 2006, giving the United Arab Emirates firm a 23 per cent holding. But Etisalat still owes $800 million on the deal, which included transferring ownership of about 3,000 real estate properties to PTCL from the government. Some of those properties remain in state hands and negotiations between the parties are thought to be ongoing. Warid’s subscriber base has fallen by nearly a third from a 2008-9 peak of 17.9 million, while Zong is the fastest-growing operator, nearly doubling its customer base since 2010-11. Pakistan is seen as an attractive market in the long term - only 70 per cent of its 179 million people have a mobile subscription, while the country has yet to issue 3G licences. An auction of the licences has been delayed since at least April 2012, but once awarded, 3G is expected to release pent-up demand for mobile data, boosting operators’ revenue. “Buying Warid can be a good idea for China Mobile, especially when new customer acquisitions have become harder,” China Mobile said in September. “In the absence of organic growth, the only way to leapfrog established operators in terms of subscriber numbers is to make acquisitions.”
Global economy is better but road remains bumpy: IMF WASHINGTON INP
The global economy is in better shape, but the road to a robust and comprehensive recovery remains bumpy, says IMF Managing Director Christine Lagarde in an introduction to the institution’s annual report published on Tuesday. The report highlights the IMF’s work between May 1, 2012, and April 30, 2011, financial year 2013 for the institution, with an emphasis on the core areas of IMF responsibility: providing IMF member countries with financing for demonstrated needs, assessing their economic and financial
policies, and developing their technical capacities. “Decisive actions by policymakers during the year successfully defused the most immediate risks to the global economy,” observes Lagarde, in her foreword to the International Monetary Fund’s Annual Report 2013: Promoting a More Secure and Stable Global Economy. But global growth remains too weak and too uneven, while in far too many countries, “improvements in financial markets have not translated into improvements in the real economy and in the lives of people.” She also points to a “need for concerted action” for which the
IMF shares responsibility with its 188 member countries. The IMF financing continued to be an important source of support for member countries during the year, as the effects of the global financial crisis persisted and some countries in the euro area remained vulnerable. A substantial part of the financing - 90 percent - went to three euro area countries (Greece, Ireland, and Portugal) hit particularly hard by the crisis. The IMF’s executive board approved 14 new or augmented arrangements during the year for a total of US$113.9 billion; nine of these arrangements were on a concessional basis to low-income
members under the IMF’s poverty reduction and growth trust. During the year, the report notes, the IMF took steps to reform its core responsibility of surveillance - its oversight of member countries’ economic and financial policies - according to priorities identified in a triennial review conducted in 2011. As in recent years, the majority of the IMF’s technical assistance continued to be provided to its low- and middleincome members; its training programs, supported by external donors and training partners, continued to enjoy a healthy level of demand among middle-income members in particular.
Decisive actions by policymakers during the year successfully defused the most immediate risks to the global economy. In many countries, improvements in financial markets have not translated into improvements in the real economy and in the lives of people CHRISTINE LAGARDE IMF MANAGING DIRECTOR
Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats — Howard Aiken
CORPORATE CORNER
Tabba Heart Institute celebrates World Heart Day KARACHI: The highly renowned hospital for the treatment of cardiac diseases, the Tabba Heart Institute, celebrated World Heart Day, by organizing various activities during the week, in order to bring about awareness about cardiovascular diseases, their risks and provide tips for their prevention, through lifestyle modifications and healthy diets, starting at an early age. The World Heart Day is celebrated every year on September 29th, based on a particular theme announced by the World Heart Federation. The purpose is to educate and create awareness about cardiovascular diseases and control the rampant spread of this epidemic. This year’s theme targeted women and children as they are more likely to be affected by this disease. Tabba Heart Institute, as part of its Community Service Responsibilities, commemorates this day every year by organizing various different public awareness activities. This year, numerous activities based on the yearly theme were organized, including cardiac awareness sessions at leading universities were held where presentations on importance of healthy lifestyle and diet were delivered to students and faculty. Interactive session for hospital visitors was organized at the hospital atrium. The flagship activity was conducted in the recently launched, Ocean Towers Mall, where a display stall was put up by Tabba Heart Institute and awareness booklets on Heart Healthy Lifestyle were distributed. Simple questions related to heart health, lifestyle and diet were asked from visitors and the winners were given attractive souvenirs. PRESS RElEASE
Samsung rises to No. 8 position in Interbrand’s ‘Best Global Brands 2013’ Report LAHORE: Samsung Electronics was recently ranked No. 8 in Interbrand’s ‘Best Global Brands 2013’ report, recognized for its outstanding business management, global growth in brand value through marketing initiatives, and continued market leadership thanks to the release of innovative products such as smartphones and televisions. Rising in rank from its No. 9 position in 2012, this year Samsung recorded a brand value of $39.6 billion (approximately 42.6 trillion KRW), a 20.4% increase compared to last year’s $32.9 billion. Of the Top 100 brands included in the report, Samsung greatly exceeded the average brand’s increase rate of 8%, as well as the average technology business rate of 15%. Samsung Electronics strengthened its No. 1 position in the mobile category by releasing the Galaxy S4 and Galaxy Note 3, as well as by creating a new market with the launch of Galaxy Gear, an innovative and fashionable wearable device. In addition, Samsung ranks No. 1 in the TV sector for the 7th consecutive
BUSINESS B Thursday, 3 October, 2013
Major Gainers
year, introducing new products such as the world’s Coca Cola launches first curved UHD TV. The company is also leading the market with the continuous launch of premium Balochistan earthquake household appliances. PRESS RElEASE relief efforts KASB Bank inaugurates LAHORE: Coca-Cola Beverages Pakistan Limited Business Branch at (CCBPL), with its business deeply rooted in local communities throughout the country, has Trust Plaza G.T Road launched the corporate sector’s efforts to support relief works for the people of Balochistan affected Gujranwala by the recent high-magnitude earthquake. As an immediate measure, CCBPL is dispatching 8,000 unit cases of bottled water and juices valuing about Rs. 2.5 million, to the affected areas where the availability of potable water is scarce even in the best of times. Further, CCBPL has immediately donated another Rs. 2.5 million for the relief efforts being coordinated on the ground in Quetta by the Pakistan Army. “Tens of thousands of people, still shell-shocked from the aftermath of the earthquake, are living out in the open, with the scorching heat causing dehydration and adding to the woes,” said John Seward, General Manager of CCBPL. “While it is the moral duty of everyone to come to the aid of the affected people, CCBPL believed it must take the lead, being in the beverages business as we are. The initial supply of bottled water and juices will be augmented by further supplies, depending on our capability and once an accurate assessment is made of further needs.” PRESS RElEASE
02
LAHORE: KASB Bank in line with its strategy to provide innovative financial products is in process of transforming its 21 conventional branches into Business Branches. Faisalabad Branch, Karachi I.I. Chundrigar Branch, Hyderabad Saddar Cantt Branch,Lahore Gulberg Branch,Lahore Peco Road Branch, Lahore Circular Road Branch, Karachi Korangi Industrial Area Branch and Trust Plaza G.T Road Gujranwala Branch are now functional as Business Branches. Whereas, Karachi Shahra-eFaisal Branch,Islamabad Jinnah Avenue Branch, Rawalpindi Saddar Road Branch, Sheikhupura Bhatti Chowk Branch and Sialkot Shahabpura Road Branch will be converted into a Business Branch by October 15, 2013. In addition to the conventional banking these Business Branches will be offering Credit Facilities, Trade Finance Solutions, Seasonal Financing, FOREX Products and much more. In this regard KASB Bank Gujranwala Trust Plaza G.T Road Branch was inaugurated on October 01, 2013 by KASB Bank President & CEO Mr. Bilal Mustafa. The inaugural ceremony was attended by notable personalities of the city and existing & potential customers of the bank. PRESS RElEASE
Climate solutions for Green Environments introduced in Pakistan
ISLAMABAD: Breaking the ground in Green Energy Efficient Solutions in heating, ventilation and airconditioning (HVAC) Industry of Pakistan, first solar-powered AC systems with up to 80% energy savings have been launched in Pakistan by the Extreme Engineering Solutions (EES)Pvt Ltd, a cutting edge engineering solutions company of the country. EES did this in collaboration with MDV, a leading brand of Midea Commercial Air Conditioning China and world renowned company Broad Air Conditioning, which is also leading manufacturer of Absorption Chillers in the world. A launching seminar on “Green Energy Efficient Solutions in HVAC Industry of Pakistan” was held at a local 5star hotel where the audience was briefed about the details of these systems with their energy efficiency and comprehensive solutions. Highlighting the benefits of solar-powered AC systems the speakers informed the audience that the launching of the solar-powered ACs has marked the beginning of a new era of Green Energy solutions in Pakistan. These systems are not only helpful in environmental sustainability but also help the users control their electricity bills with up to 80% saving. While addressing the seminar Executive Director EES Mr. Malik Riaz Awan said that “the energy has become the real power in our world which is led by those who come up with the most innovative, efficient and sustainable energy solutions. Green energy is all about innovation, efficiency and above all the sustainability i.e meeting the needs of today and sustaining our resources for tomorrow”, he added. PRESS RElEASE
BOK Raast Islamic Banking Branch starts operations in Kohat KOHAT: The Khyber Pakhtunkhwa Senior Minister
Finance Mr. Siraj-ul-Haq said that Islam is complete code of life and our prosperity is in compliance of Islamic Code of Finances, our society can flourish only and only when we adopted that Islamic ways in our daily life. This was stated by Senior Minister Finance Mr. Siraj-ulHaq while delivering speech after inaugurating The Bank of Khyber (BOK) Raast Islamic Banking Branch at Main BazzarKohat this morning in a simple but graceful ceremony. Acting Managing Director BOK Mr. Imran Samad, Group Heads and Divisional Heads from Head Office also attended the inaugural ceremony. Mr. Siraj-ul-Haq also spoke on the occasion that the present Provincial Government policy guide lines on Banking, Finance, Trade and Investment and assured that the Government is committed for the well being of common man with its resources. Mr. Siraj-ul-Haq also appreciated the efforts of the BOK Management and staff for the dedicated and devoted services for the significant growth in all operational areas of the BOK, which reflects their honest and sincere services to the masses across the country through BOK network. PRESS RElEASE
SNGPL’S action against gas thieves LAHORE: SNGPL, in its massive crackdown against gas thieves has disconnected over 18,600 consumers in the months of July and August 2013 alone, while detecting theft exceeding Rs. 2.5 Billion and saving over 4,500 Million Cubic Feet of natural gas. The consumer wise breakup of disconnections include 17,514 domestic, 1209 commercial, 55 industrial and 68 special domestic cases. This has only been made possible through hectic round the clock efforts of the Company employees, coupled with absolute support of the various Federal and Provincial Government law enforcement departments. The Company has so far recovered over Rs. 124 Million and efforts are underway to recover the rest through the available legal framework. FIR’s have been lodged and number of culprits have been arrested so far. The prominent industries found involved in gas theft in Lahore include Al-Amin Dyeing and Finishing Industry, Sh. Mansoor Steel Re Rolling Mills, Malik Steel Re Rolling Mills, Amar Brothers Steel Re Rolling Mills, Pak Re Rolling Mills, Muhammad Shahzad Water Heating, Liaqat Steel RR, Imran Nimco, Pak Panther Spinning Mills, Tariq Aziz Box, etc. The prominent industries caught in gas theft in Sheikhupura include Madina Paper Board Mill, Hassan Board, KaramAaz Glass, etc. Such industries in Faisalabad included Makkah Wood Industry, Orient Coating & Finishing Mills, Khawar Saleem Plastic Works, Punjab Industries, Butt Glass Works, etc. PRESS RElEASE
Four continents, three launches, one day Emirates highlights its global reach KARACHI: Emirates’ expansion reaches new heights today with the launch of flights to Clark in the Philippines, the inauguration of a route between Milan and New York, and a brand new A380 service to Brisbane – all on the same day in four different continents. First to take off from Dubai International at 0440hrs this morning was EK 338, a Boeing 777-200LR, bound for Clark International in the Philippines. This was followed by EK 205, pushing back at 0905hrs for Milan, where the Boeing 777-300ER stops before embarking on a brand new transatlantic connection to New York. Next in line was EK 434, departing Dubai at 1025hrs for the airline’s latest A380 destination, Brisbane. Tim Clark, President, Emirates Airline, said: “Today is an extremely significant day for our network – we are connecting two great cities across the Atlantic, opening an important new gateway into the Philippines, which helps link Filipino communities across the world, and our magnificent flagship aircraft will quietly descend into yet another destination.” “These multiple activities embody the scale of our growth, the increasing reach of our network and the role we play in connecting people, minds and cultures as Emirates navigates a path to becoming a top global lifestyle brand,” said Mr Clark. Clark will be Emirates’ second gateway into the Philippines after Manila. The airport is located 80 kilometres north of the capital, in Angeles City. With a catchment area of 17 million people, the region is poised to become a new tourism and commercial hub. The flight will also help connect the sizeable Filipino communities around the world. PRESS RElEASE
COMPANY OPEN Nestle Pak. 6000.00 Wyeth Pak Ltd 4013.33 Indus Dyeing 901.66 Philip Morris Pak. 340.00 Sapphire Fiber 198.00
HIGH 6200.00 4200.00 923.99 357.00 207.90
LOW 6200.00 4001.00 923.99 357.00 207.90
CLOSE CHANGE 6200.00 200.00 4148.89 135.56 923.99 22.33 357.00 17.00 207.90 9.90
TURNOVER 20 480 50 4,500 1,000
Major Losers Rafhan MaizeXD Island Textile Siemens Pakistan MCB Bank Ltd.XD ICI Pakistan
4999.95 949.05 988.60 290.63 187.22
5024.90 901.60 975.00 293.80 189.99
4749.96 901.60 950.00 276.10 177.87
4789.18 901.60 950.51 276.89 178.94
-210.77 -47.45 -38.09 -13.74 -8.28
420 50 1,400 635,200 103,300
Volume Leaders B.O.Punjab Telecard Limited National Bank. P.T.C.L.A Media Times Ltd
12.30 6.29 53.96 27.27 2.95
12.49 6.79 54.80 27.74 3.55
11.75 6.35 51.27 26.40 3.00
11.83 6.42 51.88 26.68 3.30
-0.47 0.13 -2.08 -0.59 0.35
14,979,500 10,515,500 10,315,000 9,485,000 7,185,000
Interbank Rates USD GBP JPY EURO
PKR 105.7353 PKR 170.0118 PKR 1.0725 PKR 142.8379
Forex UK Pound Sterling Euro US Dollar Australian Dollar Canadian Dollar Japanese Yen Saudi Riyal UAE Dirham China Yuan
BUY
SELL
173 145.75 108 101.5 104.85 1.0861 28.85 29.6 17
173.25 146 108.5 101.75 05.1 1.0964 29.1 29.85 7.25
3G licenses will be auctioned fairly, says PTA chief ISLAMABAD
stituted. The advisory committee, to be chaired by the minister Senate standing committee on of finance, who will examine information technology and and finalise policy directive telecommunications was in- on spectrum auction for next formed on Wednesday that the generation networks (3G). The newly-appointed Actauction and licensing process of much awaited 3G technol- ing Chairman of PTA, Dr Isogy will re-initiated once pol- mail Shah, informed the icy directive on spectrum committee that as per direcauction for next generation tion of the apex court the process of appointment of networks (3G) is finalised. chairman and members had been completed and assured all matters including auction of 3G licensing would be The advisory resolved transparently. committee would He said the advisory committee would also oversee the also oversee the aucauction process of 3G tion process of 3G lilicenses which would censes which would be conducted in near fube conducted in ture. During the meeting, numerous questions were near future raised with regard to gray telephony, roaming issues with Afghanistan and promotion of The committee, met with IT facilities in rural areas. The Senator Muhammad Idrees PTA chairman said the govof Khyber Khan Safi in the chair, was ernment also informed that the Pak- Pakhtunkhwa had written a istan Telecommunication Au- letter to suspend mobile thority (PTA) had now phone roaming service with received the notification of Afghanistan as part of security the ministry whereby an advi- measures being adopted to sory committee has been con- combat terrorism. APP
DUBAI: Mohammad H Mattar, Emirates’ Divisional Senior Vice President, Emirates Airport Services and Grace Relucio Princesa, Philippines Ambassador to UAE pictured at the departing ceremony of EK-338 to Clark International in the Philippines. PR