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B

BUSINESS

(IMF $6.64B PROGRAM)

Unionists to hinder sale of 65 PSEs KARACHI

Saturday, 7 September, 2013

ISMaIL DILaWaR

LPG prices increased by Rs5 per kg

He 'pro-business' PML-N government is working on a plan to privatise at least 65 Public Sector enterprises (PSes) in line with its assurances to the International Monetary Fund (IMF) on the long-term structural reforms. The labour unions, who also hold a certain percentage of stakes in the public sector loss-making entities like the Pakistan International Airline (PIA), tend to resist the government's privatisation plans tooth and nail. In the Letter of Intent (LoI) titled "Memorandum on economic and Financial Policies" Islamabad submitted to the IMF for the ultimate receipt of a fresh bailout package of $6.64 billion, the Government of Pakistan told the international lender that it would sell some 65 PSes off. Of the number, at least 35 would be made subject to a block sale or secondary public offerings (SPOs) by the end of this month, the LoI said. "The privatisation of Pakistan International Airline, Pakistan Steel Mill (PSM) and Pakistan Rail-

ISLAMABAD: The Liquified Petroleum Gas (LPG) marketing companies on Friday hiked the LPG prices by Rs5 with immediate effect due to rising trend of the commodity at international market. Chairman LPG Distributors Association Muhammad Irfan Khokhar told APP that the move has jacked up price of a domestic cylinder by Rs60 and commercial cylinder by Rs240 while the total raise in per ton reached to Rs5000. As a result of latest increase, the domestic cylinder would be available at Rs1450 Dom with Rs125 per kg in Karachi and Rahim Yar Khan, Sukkar and Hyderabad. The LPG price will be Rs130 per kg and domestic cylinder at Rs1510 in Rawalpindi, Islamabad, Lahore, Gujranwala, Gurat, Sialkot, Okara, Attock, Jehlum, Bahawalpur, DG Khan and Multan. Similarly, the LPG would be sold at Rs1690 per domestic cylinder with Rs145 per kg at Gilgit-Baltistan, Muzaffarabad, FATA, Naran, Kaghan, Nathiagali and Murree, he informed. app

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ways would be of prime importance," said the analysts at Topline Research. The government would be stripping non-viable operations and departments of PIA under another PSe like PIA2. After that, 26 percent shares of the Airline would be offered to strategic investors in privatisation by the end of June 2014. As for the PSM, the Mill's restructuring plan would be approved by endSeptember for which the government has already appointed a professional board. "We believe that the successful reforms would not only result into reduced fiscal deficit, it may also bring foreign investors and foreign exchange into Pakistan," the analysts viewed. Given the fact that the govern-

ment was stuck up with the issue of terrorism and politically-motivated violence in the country, the privatisation plans look optimistic, they said. Divesting from the targeted enterprises, however, has never been an easy going for the democratically-elected governments. "Improving the bad performance of PSes and their privatisation would be a real test ground for the government," said the analysts. Hidayatullah Khan, president of PIA's Collective Bargaining Agent, vowed a strong resistance if the government went for the Airline's sell-off. "The intentions show that they would go for the privatisation that we would resist tooth and nail," Khan told Pakistan Today. The unionist said it was the wrong

Pakistani mangoes get clearance in Australia

Dr al Darweesh visits IIUI faculties ISLAMABAD: President, International Islamic University, Islamabad (IIUI) DR Ahmad Yousif Al-Draiweesh has said that university should focus on standard of education rather than the number of students. Teachers must fulfil their responsibilities with great punctuality and devotions, they present themselves as a role model for the students. These view, were expressed by president while he was addressing to the members of Faculty of Usul- Uddin. Dr Al-Draiweesh put stress on the need that the teachers may develop frequent understandings with students and try to settle their educational matters on priority basis, thinking that students are the precious asset of Ummah and our future associated with them. He emphasised on the requisite of social grooming of the students which is basic thing to achieve the desired results from education. pReSS ReLeaSe

Pak-Turk businessmen sign MoU

policies of PML-N's Shahid Khaqan Abbasi that made the PIA insolvent and not the employees. "We with 12 percent shareholding are the owners and not employees of PIA," said Khan, a PPP supporter. He said ill-thought-out past policies like Open Sky and the introduction of a faulty cyber system has inflicted huge losses upon the national flag-career. Asked as what had made the PIA a white elephant, the CBA chief said anything but the employees. "The salaries of employees constitute only 16pc of total PIA's income. 84pc is consumed by the fuel and the rest by the management's lavish spending," he claimed. Also, last week the employees of Pakistan Railways took to the street to protest the government's intentions to privatise Railways. The Railways unions took a rally from the City Railways Station to Shaheen Complex on I.I Chundrigar Road. The marchers holding placards, banners and flags shouted slogans against the government and proposed sell-off of the PR. They claimed that talks of privatisation were aimed at depriving the Railways employees of their livelihood.

ISLAMABAD: President International Islamic University Islamabad, Dr Ahmed Yousif al Darweesh addresses faculty members of Usuluddin. pR

Pakistan 4th largest market for Malaysian palm oil KARACHI Staff RepoRt

Pakistan, a big consumer of vegetable oils and fats, remains one of the world's largest markets for palm oil, thus making it an important export destination for the golden crop. In 2012, Pakistan imported over 1.4 million tonnes of palm products from Malaysia valued at over $1.3 billion, said Abu Bakar Mamat, Malaysia's Consul General in Karachi. "We place great importance on this market," he added. This Abu Bakar said at a seminar on "Palm Oil Standardisation" jointly organised by the Malaysian Palm Oil

LAHORE: The Lahore Chamber of Commerce & Industry and Pak Turk Businessmen Association (PTBA) Friday inked a Memorandum of Understanding (MoU) on Turkish investment, promote joint ventures and further strengthen business-to-business relations. LCCI President Farooq Iftikhar signed the MoU on behalf of the Lahore Chamber of Commerce & Industry while Pak Turk Businessmen Association was represented by its Chairman Sahir Rasheed. app

Board (MPOB) and Pakistan Standards Quality Control Authority (PSQCA) here Thursday. He said efforts by the Malaysian government, industry and also by MPOB had been put in to ensure that Malaysian palm oil remained relevant as the major product in Pakistan's edible oil industry. "MPOB is actively involved in developing standards for palm oil products and seats in numerous technical committees in the development of international standards such as the ISO standards, the American Oils Chemist Society and Codex," he said. The Consul General said the regional manager of MPOB Karachi also sat in the technical committee of the PSQCA and provided the technical knowledge and expertise in drafting and proposing related standards on palm oil products in Pakistan. "I am very happy that PSQCA has been able to adopt the Malaysian Standards on palm oil. I believe PSQCA is in the position to establish appropriate standards for edible oil products and thereafter safeguarding the interest of the consumers in Pakistan," he said. He gave an assurance that the consulate general would extend its maximum effort to ensure the quality of Malaysian palm oil in Pakistan. MPOB has a regional office in Karachi, which has been here for 27 years. "The fact that this office is covering 24 other countries from Karachi, is a true manifestation of our commitment to ensure the smooth flowing of quality Malaysian palm oil into Pakistan market. I am happy to say that, with consistent support from all of you, they will be here for many more years," he said. Pakistan is the fourth largest importer of Malaysian palm oil after China, India and eU.

KARACHI: The first complete shipment of the Pakistani mangoes has been given clearance by Custom and Quarantine Department of Australia following the two-day lab test of the consignment which was failed by India last year. Mangoes of Pakistani origin have finally reached in the wholesale markets of the Australia subsequently it was declared as hygienic and high qualitative after two-day lab test of 4.5 ton mangoes. Pakistan’s technology of hot water treatment of fruit has been successful as it has depicted by the approval of Australian authority, which is considered one of the expensive and extremely difficult market for new entrants, said CEO of Pak-Horti Fresh Dr AQ Khan Durrani. The Australian authority has given access to Pakistani company after consecutive three years inspections of plant, technology and fruit quality, hence the country has achieved a landmark this year while leaving behind different countries of the world which had a plan to penetrate in Australia. The taste and aroma of Pakistani mangoes are very famous across the world now its quality has been endorsed by different countries like South Korea and Australia, he said and adding Pakistan’s could grab maximum share of Australian market having annual imports of 15,000 ton. Pakistan’s mangoes will get good price of nearly $7 per kg as compared with $1 kg being sold in Gulf countries. This will enhance exports earning of the country whereas adding popularity of the Pakistani based fruit in the world. Staff RepoRt

Sindh produces more cotton than Punjab this season KARACHI Staff RepoRt

The Sindh province has surpassed Punjab in terms of cotton production as the economic observers see the flow of cotton arrivals having resumed with the arrival of Kharif season. According to data released by Pakistan Cotton Ginners Association, the cotton arrivals up till 1st of this month remained essentially stagnant, decreasing by a minor 0.31% YoY. "We have extended our analysis to cover the impact of flood on the same and its expected impact on the economy as a whole," said InvestCap analyst Muniba Saeed. Despite the flood engulfing most of

both Sindh and Punjab, the two main provinces endowing the country with its bread and butter crop cotton arrival remained unaffected at the level of 1,726k bales up till September 1 compared to 1,731k bales of last year. Agriculture contributes 21.4% to the country's gross domestic products (GDP) and textile contributes 52% to the exports. However, interestingly whereas the total pie remained the same size, a notable change was witnessed in the contribution from both provinces where, historically, Punjab contributes 70% to the total production of cotton in the country, the province contributed a meagre 37% in the production this season whereas Sindh supplied the remaining 63%.

Moreover, production from both provinces went in diverging directions, where production from Punjab slid by 33% YoY, arrival of cotton bales from Sindh shot up by 42% YoY. The decline in production of cotton bales in Punjab can be attributed to a number of factors. Firstly, whereas the flood hit northern and southern Punjab, being the main area for cotton cultivation, remained mostly unaffected by the heavy rainfall. "Due to decline in the area under cultivation for cotton in South Punjab this season and inadequate rains, which were insufficient for cotton cultivation, experienced, we saw a decline in production from the province," said Muniba.

Despite inadequate rain witnessed in South Punjab so far, experts are expecting healthy cotton arrivals going forward during this season basing such judgment on the state of the present crop. The significant increase in production from Sindh this year, the analyst said, was due to lower production due to flood last year. The country having produced 12.9mn bales in FY13, Cotton Crop Assessment Committee set an initial target of 13.255mn bales for FY14. However, keeping into consideration the impact of floods and the decline in area for cultivation of cotton in South Punjab,

the same was revised to 12.65mn bales. As outlined above, the flood is expected to have little impact on cotton production this season. "We expect no major hurdle in achievement of this target," said the analyst.


PRO 07-09-2013_Layout 1 9/7/2013 12:16 AM Page 2

02

BUSINESS B

Saturday, 7 September, 2013

Bulls dominate KSE on politico-economic positives KARACHI

T

Staff RepoRt

He Karachi stocks market remained bullish Friday on the back of politicoeconomic positives, prominently the approval of IMF's $6.64 billion threeyear extended Fund Facility for the dollar-hungry Pakistan. Last trading session of the week witnessed the benchmark KSe 100-share index gaining 314.4 points, 1.4 percentage, to close at 22,765.87 points. The index had finished at 22,457.46 points on the previous day. The free-float KSe-30 index too set in the green zone and gained 219.3 points at 17,704.89 points against Thursday's 17,485.53.

"(The) stocks closed bullish amid higher trades led by stocks across the board on easing political concerns, higher global commodities and IMF approval for loan disbursement for economic reforms," said Ahsen Mehanti of Arif Habib Corporation. The trading volume at the ready-counter was recorded higher at 254 million shares compared to 218 million traded a day earlier. The scrips traded also appreciated in terms of value that climbed to Rs10.3 billion from the previous Rs8.4 billion. Of the total 359 scrips traded on the day 248 gained value, 89 lost and 22 remained unchanged. The market capitalisation also rose to Rs5.58 trillion as against Rs5.53 trillion of the previous trading session. Bank of Punjab appeared as a volume leader of the day by counting 28.6 million of

its listed shares traded. The scrip gained value by 43 paisas by closing at Rs12.96. Other well performing equities included Fauji Cement, engro Corporation, PTCL, NIB Bank, NBP, DG Khan Cement, Dewan Motors, engro Foods and KeSC. Also on the future marker the trading turnover swelled to 34.4 million shares from 28.66 million of Thursday. "easing fears for major change in SBP policy rate on Sept 13 after IMF loan approval played a catalyst role in bullish activity despite dismal dispatch data for cement sector during Aug'13," viewed Mehanti, a senior stock analyst. The market observer said institutional interest remained in oil stocks after WTI crude crossed $109 on strong US economic data and renewed foreign interest in selected blue chip stocks.

Germany, Pakistan sign 102.5m euro agreement ISLAMABAD app

Pakistan and Germany Friday finalised the bi-annual government to government negotiations for calendar year 2013 and signed eruo 102.5 million agreement for executing various new and existing projects in education, energy, governance and health sectors.

After the approval by Federal Cabinet, the signing of the agreement was carried out by Secretary economic Affairs Division (eAD), Nargis Sethi and Director General europe, Middle east and Asia; Multilateral Development Policy of the German Federal Ministry for economic Cooperation and Development, Dr Uta Boellhoff here. The geographical focal areas of

cooperation remain in the provinces of Khyber Pakhtunkhwa (KP) and the Federally Administered Tribal Areas (FATA), said eAD press statement issued here. In addition selected national programs and projects focusing on the metropolitan areas of and around Lahore and Karachi are in implementation, it added. German Development Assistance to Pakistan

has contributed more than eUR 2.5 Billion since 1961. On this occasion the Secretary eAD said that this Financial and Technical assistance, some of which has already started flowing, will enhance the efforts of federal and provincial governments in Pakistan in the fields of governance, basic education, basic health and renewable energy.

Major Gainers COMPANY OPEN Rafhan MaizeXD 4882.40 Wyeth Pak Ltd 2900.13 Colgate PalmolivSPOT 1734.50 Island Textile 749.00 Unilever Food 5180.00

HIGH 5124.90 3044.00 1821.00 786.00 5210.00

LOW 4700.00 2900.00 1697.00 786.00 5210.00

CLOSE CHANGE 5124.90 242.50 3005.93 105.80 1799.00 64.50 786.00 37.00 5210.00 30.00

TURNOVER 80 1,640 560 50 20

308.00 232.75 610.00 198.69 125.01

298.00 232.75 609.95 179.77 125.00

300.00 232.75 609.98 179.77 125.00

-12.85 -12.25 -10.02 -9.46 -4.99

7,900 500 200 1,158,800 5,000

13.14 13.86 152.59 26.74 2.45

12.60 13.30 146.63 26.01 2.31

12.96 13.50 152.19 26.54 2.40

0.43 0.18 6.86 0.43 0.04

28,679,500 18,625,500 12,358,100 9,337,500 8,231,000

Major Losers Murree Brewery Glamour Textile Shezan Inter. Mari Petroleum J.D.W.Sugar

312.85 245.00 620.00 189.23 129.99

Volume Leaders B.O.Punjab Fauji Cement Engro Corporation P.T.C.L.A XD NIB Bank Limited

12.53 13.32 145.33 26.11 2.36

Interbank Rates USD GBP JPY EURO

PKR 104.6880 PKR 163.1981 PKR 1.0507 PKR 137.2983

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

BUY

SELL

104.55 136.80 162.43 1.0475 99.66 13.26 28.40 27.80

104.80 137.04 162.68 1.0579 101.34 13.49 28.65 28.05

CORPORATE CORNER

IPR awareness, implementation vital for socio-economic prosperity: CAP

KARACHI: Kafeel Burney, Head of Pubic Affair MCB Bank Ltd along with his wife Dr Ayesha Kafeel Burney called on president elect Mamnoon Hussain at State Guest House Karachi to present her book. pR

KARACHI: Amer Bin Khayal is receiving performance award from ZONG CFO Feng Tuixian at China Mobile's mid-year conference. pR

PTCL to invest in Fourth Islamabad Marriott International Submarine Hotel chooses Aruba Networks to boost Wi-Fi Cable System ISLAMABAD: Recognising the ever changing need and increased technology requirements of the guests the Islamabad Marriott Hotel, after a significant investment in the Wi-Fi structure, has deployed Aruba’s wireless LAN infrastructure to deliver faster and more reliable complimentary wireless internet access across the property. Offering first class connectivity business and leisure guests can now stay connected and be productive while staying at the hotel, eliminating the need to be confined to Wi-Fi hotspots. Being an essential amenity this free high speed Wi-Fi service will enhance guest experience offering a seamless transition from the work or home environmentmaking remote working stress-free and keeping in touch even easier. Guests can now connect multiple devices to the network and seamlessly download files, send and receive emails, connect with family or friends on Skype, Facebook and Twitter or just simply browse the internet on their tablets, smart phones and lap tops. pReSS ReLeaSe

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) is set to invest in yet another international submarine cable consortium system in collaboration with leading operators in the region. This cable will be spanning from Far East to Europe with multiple landing points in Middle East. This will be PTCLs’ fourth submarine cable system encompassing a multimillion dollar investment. With this cable, PTCL will be adding terabits of bandwidth in its international capacity, besides building redundancy to its existing international infrastructure on eastern and western side of the Arabian Sea. This investment marks the vision of the Company to cater for the growing bandwidth demand of both consumer and corporate segments in the Country for Broadband and data services. The new cable link synergises with PTCL’s three existing cable consortium systems including SMW3, SMW4 and IMEWE which connect Pakistan with rest of the world. pReSS ReLeaSe

KARACHI: The new government should focus on the neglected issue of Intellectual Property Rights (IPR) which awareness and implementation is crucial for economy, businesses and consumers protection in the country. This was stated by Kaukab Iqbal, Chairman Consumers Association of Pakistan (CAP) in a press conference at Karachi Press Club urging the new government for taking immediate steps for the enforcement of IPR laws in the country. Zakauddin Sheikh Chairman Forivil Cosmetic (Pvt.) Limited and Elite Traders was also present on the occasion. Zakauddin said that they have suffered a lot of miseries and a loss of his son only because of trade mark dispute. So, the government must provide relevant protection to the holder of trade mark registration. He also said that Bio Amla shampoo is registered in the name of Mr Zaka since 1982. But, the opponent is regularly doing illegal manufacturing and no government authority is there to stop them. pReSS ReLeaSe

NBP marks Defence Day KARACHI: National Bank of Pakistan (NBP) celebrated 6th of September as Defence Day. On the occasion National Bank of Pakistan (NBP)’s Executives visits to Abbasi Shaheed Hospital. This occasion organise by NGO Firdose Ittehad with the cooperation with Commissioner- Karachi Mr Shoaib Ahmed Siddiquie and support of NBP. To commemorate and remember this Day, Syed Ibne Hassan, NBP Divisional Head / Corporate Communication Division along with Mr Ghulam Ahmad Khan, Mr Mujaid Jatoi and Doctors visited Abbasi Shaheed Hospital Nazimabad and distributed sweats and flowers to children/patients on the occasion, during the visit, Mr Hassan briefed to Doctors for roll of NBP’s CSR activities and praised the efforts of hospital management and felicitated them for their significant contribution in health sector of Karachi. Divisional Head NBP wished the Commissioner- Karachi Mr Shoaib Ahmed Siddiquie and hospital management a good luck in future. pReSS ReLeaSe

Design the story of your life with Samsung GALAXY Note 3 KARACHI: Samsung Electronics Co., Ltd. today introduced GALAXY Note 3, the latest update to the Note product line. The new Samsung GALAXY Note 3 adds delight to daily tasks and infuses innovative features that help consumers tell the story of their lives. Samsung GALAXY Note 3 delivers a larger and better screen for the best viewing experience and more powerful multitasking, and introduces significant S Pen improvements that make everyday life easier and faster. “We introduced the original GALAXY Note in 2011 and launched a whole new smart device category. The undeniable success of the GALAXY Note strengthened our conviction that consumers want higher quality features for smart devices and they want those new features to make their lives better,” said JK Shin, CEO and President of IT & Mobile Division at Samsung Electronics. pReSS ReLeaSe

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