Page 1

PRO 06-09-2013_Layout 1 9/6/2013 12:00 AM Page 1

01

B

BUSINESS Friday, 6 September, 2013

IMF $6.64b FacIlIty: a challenge oR oPPoRtunIty FoR Ishaq DaR? Equity market shoots up by 575.63 points

(POWER TARIFF INCREASE)

Dar exempts small consumers

ISLAMABAD: Finance Minister Ishaq Dar has said that increase in electricity tariff will not be applied on consumers consuming 200 units of electricity per month or less. The minister and Punjab Chief Minister Shahbaz Sharif were talking to media here on Thursday. Dar added that Rs 30 billion had been allocated for fertilizers’ subsidy in fiscal budget 2013-14. The minister said farmers would be provided electricity on flat rate of Rs 10.5 per unit, adding the farmers would be allowed to pay bills in installments without any extra surcharge, he added. “Agriculture constitutes 24 percent of national economy”, the finance minister mentioned. The minister disclosed that increase of some 200,000 metric ton had been observed in production of fertilizer by providing gas to local industry. He maintained that farmers had been given Rs 23 billion subsidy on electricity bills as progress of agriculture sector is an important part of Pakistan Muslim League-Nawaz’s (PML-N) agenda, Ishaq Dar added. “The government is trying to make buildup performance of departments to abolish over billing”, Dar added. On the occasion, Shahbaz Sharif said that PML-N would strengthen economy soon by eliminating power crisis. He reminded that the former Punjab government had taken revolutionary steps for the betterment of masses during the last five years. ONLINE

Pakistan’s credit rating may improve, way paved for foreign inflows from WB, ADB, IDB

Rupee to gain value as long-term indirect impact

The rupee whereas is bracing for a long-term impact on its value, the country’s vibrant equity market was quick to respond positively on the very next day the international lender okayed the package, to be disbursed in tranches over next F Karachi stocks market is any criterion, three years after quarterly reviews. The first the approval of Wednesday’s $6.64 disbursement would be of $540 million. billion Extended Fund Facility The benchmark KSE 100-share index (EFF) by the International skyrocketed by 575.63 points or 2.63 percent Monetary Fund (IMF) provided the to close at 22,451.46 points compared to country’s dollar-hungry economic Wednesday’s 21,875.83 points. mangers with the much-needed The free-float KSE 30 index too gained breather to revive the ailing economy. 477.33 points or 2.81 percent to close at The IMF bailout came as the cash-strapped 17,485.53 points. country’s dollar reserves have contracted “Pakistan stocks closed bullish in stocks to what the Fund said a critical level across the board after IMF approval for $6.7 and its currency breaking all the previous billion loan for economic reforms,” viewed records by devaluing to Rs 104.90, that too Ashen Mehanti, a senior equity analyst. on the interbank market. The federal cabinet’s decision Wednesday The State Bank Thursday reported that up to Aug 30 for ‘targeted action’ to restore peace in the it reserved foreign exchange worth only $ 4.8 billion, city and the resultant easing political concerns even lesser than $ 5.175 billion possessed by the was another factor that, the analyst said, boosted commercial banks. the investors’ confidence at the KSE. According to currency dealers, the rupee Thursday traded Also, the analysts believe, the statements from the IMF against the greenback at Rs 104.79 and Rs 104.70 on the and the government of Pakistan, in its Letter of Intent to open and interbank markets, respectively. the Fund, eased the investors’ fear on a possible “The IMF package would end the panic buying by the monetary policy tightening by the State Bank which importers caused by six-month forward booking by the was widely expected to up the discount rate by at banks,” opined Malik Bostan, chairman Exchange least 50bps given burgeoning inflationary pressures. Companies Association of Pakistan (ECAP). Mehanti said: “Easing fears for announcements on Terming the development as welcoming, the money Sep 13 regarding major change in the SBP policy exchanger said rupee, like other regional currencies, had rate after (the) CPI (inflation) stood below depreciated against the dollar by five percent since the expectations at 8.55 percent this August played a dissolution of PPP-dominated assemblies. “This huge catalyst role in bullish activity amid higher trades.” forward booking coupled with other factors devalued The central bank is now expected to maintain the rupee to Rs 105 from Rs 99 in the previous status quo by keeping the cost of borrowing at 9 government’s tenure” Bostan said. percent for next couple of months. He, however, added that the currency devaluation was “The focus of the policy makers would once a regional trend as Indian rupee had lost 15 percent again be on promoting investment,” value to the strengthening US currency. The said Nauman Khan of Shajar IMF help, the rupee dealer said, should Research. strengthen the rupee by Rs 100 as the The IMF’s fresh billions, however, exporters were expecting. would only serve their purpose if Referring to the IMF estimates, an Islamabad carried out bold structural economist, however, said the rupee The International Monetary Fund’s three-year $6.6bn loan to Pakistan has reforms especially in energy sector. would further devalue, at least by Rs come just in time. The loan may “stave off a balance of payments crisis, Otherwise, this one too would become 110 in coming months. The Fund cheering investors concerned that foreign reserves had sunk to about six half-paid, like most of IMF’s previous estimates show that baseline for the weeks worth of imports.” According to Bloomberg data, the level of foreign packages. real effective exchange rate for Pak reserves plus gold dropped below a rolling three month average of imports Topline analyst Zeeshan Afzal recalled currency during FY14 would be back in May, and the trend is clear. NEWS DESK that during last 25 years, Pakistan had negative 4.8 percent. The same would entered into 10 IMF programs. “Most further deteriorate up to negative 7.7 of the arrangements were not fully percent under the IMF program. implemented due to inability to bring “The conditions (on ground) are not structural reforms,” he said. hinting at appreciation,” the analyst Out of total agreed amount, Pakistan said. had withdrawn only SDR 7.0 billion. The IMF, in its survey, too foresees a “This is 76 percent of the committed long-term indirect impact on Pakistan’s funds,” Afzal said. exchange rate saying the bailout was The analyst said if the government primarily aimed at macroeconomic introduced the required reforms stabilization namely slashing the properly, one cannot rule out budget deficit and reversing the improvement in Pakistan’s credit rating balance of payments problems. outlook. “The financial support from the IMF Franks, Bostan and Afzal are upbeat and other international partners will that the IMF’s endorsement would help help Pakistan overcome the balance of the dollar-hungry Islamabad receive payment difficulties by stabilising more financial inflows from other foreign exchange reserves and international agencies such as World relieving pressure on the currency,” Bank, Asian Development Bank, said Jeffrey Franks, IMF’s mission chief Islamic Development Bank etc. for Pakistan, in a survey.

KARACHI

ISMAIL DILAWAR

I

Pakistan / IMF loan: the one chart

to get used ASSIST PAKISTAN, SETHI EXHORTS DEVELOPMENT PARTNERS PR locomotives: what ISLAMABAD APP

The present government has adopted a realistic socio-economic development approach in tandem with ensuring transparency, so it is high time for development partners to come forward and assist Pakistan to achieve ultimate progress and prosperity, Economic Affairs Division Secretary Nargis Sethi said on Saturday. While chairing the 6th meeting of D10 Forum, Nargis Sethi said the government was placing significant emphasis on improving the quality of governance and introducing reforms in public sector institutions to achieve maximum results in addition to improving country's economy with an objective to improve the living standards of the people. "The government has presented a comprehensive agenda for national re-

newal and real change, which seeks socioeconomic development by generating opportunities and jobs, promoting equity, fairness and justice, on the foundation of democratic principles and above all, the rule of law," she added. She said the government envisaged a country with energy security, food security, economic revival, a new framework for social development, scientific and technological progress, provision of speedy and inexpensive justice, elimination of corruption, and promotion and protection of rights of women and non-Muslim Pakistanis. She urged the development partners to come forward in assisting Pakistan to overcome the challenge of energy scarcity, saying "the more we invest in this sector, the more we will be in a position to transform the living standards of our people."

She was of the view that Pakistan was a country of nearly 200 million people with unique geographical location and prospects to serve as trade corridor to the Central Asian countries. However, she added, presently the country was facing serious challenges of terrorism, militancy, acute energy shortages, poverty, unemployment, water shortages and also natural calamities. Despite these challenges it demonstrated remarkable resilience and has not given up as its economy is still growing and progressing. She said the government was determined to work in unison with all its development partners in its endeavours to bring in structural reforms and also in the pursuit of its socio-economic development agenda. She informed the forum that EAD had established foreign Assistance Monitoring

Cell to keep a close watch on the effective utilization of the assistance from development partners. She said in a short span of less than 30 days, the cell had identified some 50 projects, where improvement was needed. She appreciated the support of development partners over the years and expressed the hope that they would continue to do so in future. She said the present government had come up with a vision of Kashgar-Gwadar Economic Corridor that would not only be beneficial for Pakistan but will be a game changer for the three billion people of South Asia, Central Asia and the region. On the occasion, the D-10 forum members agreed to hold next meeting within next three months and underline the importance of improving cooperation between various stakeholders to fast track work on socio-development projects.

about new ones?

ISLAMABAD: The Pakistan Railways (PR) will float international tender for obtaining used locomotives on lease and deferred payment basis. An official of the PR told APP that the maintenance of these locomotives would be the responsibility of the successful bidder during the contract period. To a question, he said, the contract agreement for procurement of 58 (3000/2000 horse power) diesel-electric locomotives amounting to US $ 48.431 million has been signed to M/s CSR Ziyang, China on 07-12-2012. He said locomotive were scheduled to be arrived here by the end of November, 2013 to June, 2014, he added. To a question, he said, there was no proposal under consideration to ply new trains during the current financial year 2013-2014. APP


PRO 06-09-2013_Layout 1 9/6/2013 12:00 AM Page 2

02

BUSINESS B Friday, 6 September, 2013

Dutch business circle inauguration Marcel de Vink says Pakistan should be more than a market for adventurous investors KARACHI

n

STAFF REPORT

ETHErlAND wants to establish relationship with Pakistan on equality and move forward from one-way donorship to two-way business ties. Ambassador of Kingdom of Netherland to Pakistan Marcel de Vink stated this at an inauguration of Dutch Business Circle in Pakistan on Thursday night. “Netherland felt that it would be the right time to start a new era of trade with Pakistan when new

democratically-elected government sworn in,” he expressed. “Willingness of the present government to improve economic condition of the country and some initiatives in this regards at its onset has attracted a number of Dutch businessmen and we are here to launch a business circle,” he added. “But we want to strengthen bilateral ties with people of Pakistan instead of the government,” the ambassador said, adding that “If launch of business circle stood successful then it would help Pakistan to attract more Dutch companies to Pakistan.” Netherland encouraged the new Pakistani government which had committed itself to deal with

challenges that condition the investment climate and had unfolded new policy initiatives in the financial, economic and energy field,” he said, adding that “While such new policies certainly demonstrate the will to tackle the problems but implementation of these policies is the key to success. “Tackling the energy crisis, improving tax collection, investing in infrastructure and human capital, curbing corruption and ending terrorism and violence are crucial to create a thriving business environment in Pakistan,” the ambassador observed, adding that “It is true that Pakistan currently offering high yields to many investors who came here in spite of these challenges, but in my views Pakistan can and should be more than just a market for adventurous investors. “We named this platform a business circle instead of chamber, council or forum where no one has a special place at the table and where the small, big, old and new companies participation would be treated on equality basis,” the ambassador briefed, adding that “The circle would be informal, flexible and provide opportunity to the businessmen for creating friendly relationships instead of dictation.” recalling the history of bilateral ties between the two countries, he said the business ties between Netherlands and Pakistan go back a long way. “More than 350 years ago, we have first business contact when Dutch East Indies Company established a trading post not far from here at Thatta,” he recalled. “With the seaport of rotterdam -the largest in Europe- and the airport of Amsterdam, the Netherlands is a gateway, linking Europe with other continents,” he said, adding that “Trade and services are the backbone of the Dutch economy while Dutch expertise in logistics is well-known throughout the world.”

Major Gainers COMPANY Rafhan MaizeXD Unilever Food Wyeth Pak Ltd Siemens Pakistan Pak Oilfields

OPEN 4650.00 5000.00 2815.52 870.92 465.89

HIGH 4882.40 5180.00 2950.00 914.46 484.00

LOW 4790.00 5180.00 2850.00 827.50 466.00

CLOSE CHANGE 4882.40 232.40 5180.00 180.00 2900.13 84.61 913.81 42.89 480.78 14.89

TURNOVER 340 20 2,620 14,200 150,100

6025.00 70.81 195.00 90.00 36.79

5842.50 70.81 190.00 85.73 36.79

5842.50 70.81 194.25 87.72 36.79

-307.50 -3.72 -3.43 -2.52 -1.93

540 500 6,300 195,000 500

13.48 22.10 12.59 76.86 26.11

12.24 20.05 11.98 71.20 25.00

13.32 22.10 12.53 76.77 26.11

0.74 1.05 0.59 3.57 1.24

27,576,000 22,595,000 17,886,500 11,149,000 9,846,000

Major Losers Nestle Pak. Khyber Textile Tri-Pack Films Highnoon (Lab) Mirpurkhas

6150.00 74.53 197.68 90.24 38.72

Volume Leaders Fauji Cement Maple Leaf Cement B.O.Punjab D.G.K.Cement P.T.C.L.A XD

12.58 21.05 11.94 73.20 24.87

Interbank Rates USD GBP JPY EURO

PKR 104.7996 PKR 163.6236 PKR 1.0494 PKR 138.2412

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

104.55 136.15 161.93 1.0336 98.39 13.24 28.35 27.75

SELL 104.80 136.39 162.18 1.0438 100.06 13.47 28.60 28.00

CORPORATE CORNER

too quIck to act! The ministry of water and power finalises a master plan to construct seven dams in country ISLAMABAD: The ministry of water and power has finalised a master plan to construct seven new dams in the country to meet energy and water requirements of the country. Among these dams, the Naulong Dam will be constructed at the river Mula in Balochistan and the construction work will be completed in three years. The dam will conserve flood water of the river for irrigation purposes, hydro power generation and socio-economic uplift and poverty reduction in the area. The Vandar Dam will be constructed at the river Vandar in district Lasbla, Balochistan, in three years. The Hangol Dam will be constructed at river Hangol, district Lasbela, Balochistan and for construction of the dam bidding are being invited and the said dam will also be completed in three years. The construction of Winder and Hangol dams would help cultivate 70,000 acres of additional land in Balochistan. The Grok Dam will be constructed at the river in district Khazan in South East Balochistan and the dam will completed in three years. The Piler Dam will be constructed at river Nal in district Aoran, Balochistan, which will be completed in three years. The Ghambhir Dam will be constructed at Gabhar Nala and construction of the said dam will be completed in three years and the overall 20,000 acre land would be irrigated after the construction of the dam. The Papin Dam will be constructed at river Sohan in Rawat district, Rawalpindi. With the construction of the dam, the issue of water scarcity issue would be resolved. The construction of additional reservoirs would help protecting infrastructure from the onslaught of floods and create employment opportunities in the area. Talking to APP, an official of the ministry of water and power said the construction of seven new dams would ensure a new era of socioeconomic development for the country by preserving the scarce water resources, mitigation of floods, promoting forestry and fisheries, creation of job opportunities and most importantly enhancing the power generation capacity of the country to meet the rising demands of energy of a rapidly growing population. APP

acca signs Mou with hailey college

cement dispatches down by 5percent in two months

LAHORE: ACCA Pakistan signs MoU with the Hailey College of Commerce, University of the Punjab – One hundred and fifty scholarships worth Rs 6.9 million being offered to the alumni, graduates and undergraduates of the Hailey College of Commerce, University of the Punjab and its affiliated colleges. Scholarships worth 6.9 million rupees are to be offered to one hundred and fifty students and alumni of Hailey College of Commerce, University of the Punjab, which will help them to study for the prestigious ACCA Qualification. This is an exceptional opportunity for the undergraduates, graduates and alumni of the Hailey College of Commerce, University of the Punjab and its affiliated colleges as ACCA is the ‘only international professional accounting qualification recognised by the Higher Education Commission in Pakistan’. It is also globally recognised by employers and as well as academia. The MoU was signed by Arif Masud Mirza, the Head of ACCA Pakistan, and Prof Dr Liaqat Ali, Principal, Hailey College of Commerce on 5 September 2013 here at the Quaid-e-Azam campus of the University of the Punjab. PRESS RELEASE

KARACHI: A spokesman of All Pakistan Cement Manufacturers Association has said that in the first two months of current fiscal year the dispatches of cement have declined by almost 5 percent. In August 2013, total dispatches of cement were 2.251 million tons against 2.283 million tons during the same month of last year. Exports from North declined from 0.512 million tons in August 2012 to 0.438 million tons in August 2013. Domestic cement market in the North registered a little increase with dispatches of 1.312 million tons in August 2013 against 1.287 million tons during the same month last year. Local cement dispatches in South declined by 11.65 percent while exports increased by 15.48 percent. The exports from South in August 2012 were 0.188 million tons that increased to 0.239 million tons in August 2013. Local sales during the same period declined from 0.296 million tons to 0.239 million tons. Overall decline in exports in the first two months of this fiscal was 1.97 percent as 1.426 million tons of cement was exported in the first two months of 2013-14 against 1.455 million tons in the first two months of 2012-13. The recent increase in power tariff and fuel prices had increased the input and transportation costs putting more pressure on manufacturers. STAFF REPORT

canadian orthopedic & Rehabilitation centre opens LAHORE: Canada Orthopedic & Rehabilitation Centre (CORC), a subsidiary of Canadian Decompression & Pain Centres (CDPC) is a pioneer in Spinal Decompression and Traction. Through highly qualified and prestigious orthopedic doctors and physiotherapists, CORC provides comprehensive, multi-disciplinary therapeutic services to patients suffering from intense chronic pain. CORC, with a promise to revolutionize and deliver solution for chronic and spinal issues, is credited for introducing breakthrough international technologies called “Spinal Decompression” and “Shock Wave Treatment” to Pakistan. Represented by Dr Syed Shamssaddin Shams, one of the top Canadian consultants and trainers, and advocate of CDP’s exclusive and patent Neuro Oxygen Spinal Decompression treatment, the Canadian consumer’s choice award winning technologies help eliminate pain caused by numerous orthopedic disorders. While giving a brief on the technology Dr Shams said, “Decompression therapy is a nonsurgical treatment for disc bulges, herniated discs, degenerative disc disease and spinal arthritis; Spinal Decompression has the capability of relieving pressure on the spinal nerves caused by disc herniations and degenerative disc disease, and is helpful for conditions such as sciatica and facet syndrome.” CORC facilitates with the state of the art ortho physical rehab department for exercise and manual treatment with American treatment machines inclusive of Shortwave Diathermy, Ultrasound Machines, TENS, Infrared Lamps and Diaphragm Machines for pain relief and cure of orthopedic issues. Jawad Qureshi, CEO Canada Orthopedic & Rehabilitation Centre further added, “CORC is Pakistan’s first global centre for excellence in orthopaedic treatment at technologies. A revolutionary innovation in the field of orthopedic sciences, it is a pioneer in introducing world’s award winning technologies in Pakistan. Our mission is to inform, educate, treat and cure all Pakistan’s afflicted with neck and back pain with the higher standard of patient care and innovative technologies. Our facilities are just one point of contact where we provide excellent health care and cure to years of suffering.” PRESS RELEASE

seminar on Palm oil and standardization

KARACHI: 1st Seminar on “Palm Oil and Standardization jointly organized by the Pakistan Standards & Quality Control Authority (PSQCA) and the Malaysian Palm Oil Board (MPOB), Karachi. Mr Abu Bakar Mamat, Consul General of Malaysia was the Chief Guest on the occasion. Mr Pir Bakhsh Jamali, Director General, PSQCA, in his speech said that standard and quality are quite important for a country’s economics and to protect the consumer’s interest and without adopting standards quality cannot be maintained, he talked about companies who are most successful in their sectors recognize that standards and conformance are business tools that should be managed right alongside their quality, safety, intellectual property, and environmental policies. PSQCA has mandate of developing national quality infrastructure in the Pakistan. It has also played a significant role in economic development of Pakistan. We deal with all aspects of quality infrastructure including standardization, legal metrology standards conformity assessment and testing at the national level. He further said that the purpose of this Seminar is to give awareness to companies and consumers about Pakistan standards and conformity assessment procedures. I hope you all will support PSQCA’s membership campaign of Technical Committees on Standards Development. These technical committees will act as quality circles to disseminate information in the industry regarding standardization. I believe that Awareness about standards and conformity assessment procedures contribute from tangible improvement of consumer interest, the growth and development of businesses and indeed to sustainable economic, social and cultural development. PRESS RELEASE


Pro 06 09 2013 layout 1  
Advertisement
Read more
Read more
Similar to
Popular now
Just for you