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PRO 08-03-2013_Layout 1 3/8/2013 2:03 AM Page 1

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BUSINESS Friday, 8 March, 2013

KARACHI

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STAFF REPORT

HE central bank might be forced to increase the cut-off rates to continue borrowing from the scheduled banks, economic observers said on

Thursday. According to InvestCap analyst Muneeba Saeed, the SBP’s recent market operations showed that the market participants continued to remain partial towards the shorter term government papers, of three-month maturities. Thus, she said, the SBP might be forced to increase cut-off rates in order to keep borrowing from scheduled banks. “However, if SBP instead chooses to keep rates intact, the

Govt not seeking any package from IMF: Mandviwala ISLAMABAD: Finance Minister Senator Saleem H Mandviwala Thursday said there is neither any programme to seek new loans from the International Monetary Fund (IMF) nor there is any proposal under consideration for this purpose. The finance minister said if the parliament gave its approval for Tax Amnesty Scheme, the government would not need to go to the IMF. He however said if need arose; the option of going to IMF is always there. He said if the Tax Amnesty Bill was passed, it would help overcome the revenue shortfall for the ongoing financial year. Mandviwala rejected the interview of Asian Development Bank Country Director that Pakistan could face difficulty in balance of payment and would need up to $9 billion from the IMF to shield the economy. He also denied having said that the government was going to approach the IMF for new package and instead had stated that the government has made timely payments of 10 installments to the Fund. He said this has improved the credibility of Pakistan in international financial institutions. INP

Electric fans export increases 45.32% in seven months ISLAMABAD: Electric fans exports from the country during first seven months of current financial year increased by 45.32 percent as compared to the exports of same period last year. Electric fans export proceeds reached to US$ 20.13 million during the period from July-January, 2012-13 which were recorded at US$ 13.98 million in the corresponding period of last financial year. According the data of Pakistan Bureau of Statistics, about 895,000 of electric fans were manufactured to export from the country during the period under review which stood at 619,000 in the same period of last year. On-month-on month basis, the export of fans recorded an increase of 39.47 percent in the month of January, 2013 as compared to same months of last financial year. In month of January, 2013 about 170,000 electric fans worth US$3.8 million exported as against 138,000 costing US$ 3.11 million of same months last year. From July-January, 2012-13 the exports of other electric machinery grew by 37.78 percent and country earned US$ 38.97 million while the exports proceeds of electric machinery was recorded at US$ 28.28 million in corresponding period of last financial year. However, the exports of other electric machinery decreased by 2.82 percent on month-on-month basis and reached to US$ 5.05 million which stood at US$5.2 million in the same month of last financial year.

Pakistan is ready for any US sanctions over gas pipeline deal with Iran. – Dr Asim Hussain

SBP may raise cut-off rates as govt borrowing continues

government would be forced to borrow from SBP instead thus inducing upward pressure on inflation,” the analyst said. She said the central bank’s figures for money supply, also called M2, for the current fiscal year up to Feb 22 show a growth of 7.64 percent whereas the same depict a week-on-week (WoW) decline of 36 basis points. On a WoW basis the government’s borrowing increased by Rs 351 million, reaching a level of Rs 680.78 billion on 22nd Feb, they said. The incremental borrowing was backed by Rs3.461 billion borrowed for budgetary operations where as an amount of Rs 3.154 billion was repaid under commodity operations. Under borrowing for budgetary operations head, during the week, the government retired an amount of Rs35 billion owed to scheduled banks thus bringing

The SBP requiring an amount of Rs125 billion to retire maturities due (Rs96 billion for 6M T-bill and 28 billion for 3M T-bill), was only able to raise Rs 89 billion thus giving rise to reliance upon borrowing from SBP instead. In the auction held Wednesday, on March 6, the government targeted Rs125 billion in contrast to which Rs 148 billion was offered by various financial institutions. From the offered amount only Rs132 billion was accepted (Rs135 billion face value). Major participation was witnessed in the 3M tenor which contributed 88 percent to total realized amount (Rs116 billion). The cut-off yields were seen inching up led by the government’s urgent need for funds. The cut-off yields in turn increased by 9bps, 4bps and 8bps for 3M, 6M and 12M T-bill respectively.

down the balance to Rs745 billion. “We saw the gap being filled by borrowing from SBP instead where the government borrowed an incremental amount of Rs39 billion from the SBP as borrowing from the latter increased to a positive Rs20 billion as against negative Rs19 billion last week,” said Muniba. She said the need for such borrowing to have emanated from lack of participation witnessed in the T-bill auction held on 20th Feb where the government targeted an amount Rs175 billion out of which only Rs 88.8 billion was realized. From the total realized amount, Rs83.77 billion was in the short 3-month tenor as market participants avoided participation in the longer tenors due to anticipation of increasing rates after the upcoming MPS expected in Apr-13.

Pakistani businessmen should set base in Malaysian markets: HC

ISLAMABAD INP

Business community of Pakistan should establish a base in Malaysia for attaining maximum trade benefits in ASEAN countries that would not only help in boosting trade activities but also prove beneficial for introducing Pakistani products in ASEAN countries which have population of over 600million. Malaysian High Commissioner in Pakistan, Dr. Hasrul Sani Bin Mujtabar made these remarks while addressing business community at Islamabad Chamber of Commerce & Industry

(ICCI). He said that Malaysia and Pakistan are two brotherly Muslim countries which are enjoying cordial relations since long and stressed that these ties should further be strengthened with the passage of time. Malaysian High Commissioner said that 80,000 Pakistani tourists visit Malaysia per annum and the tendency was on the rise, adding that currently there were 30,000 Pakistani living in Malaysia. He also appreciated the idea of initiating Pak-Malaysia Business Council North which would be a vital platform to spearhead more business interactions as well as social and cultural

exchange between the two countries. He advised the Pakistani business community to actively participate in international conventions scheduled to be held in Malaysia in forthcoming months and also urged Pakistani businessmen to be more participative in terms of business activities in Malaysia to compete with other competitive markets. Zafar Bakhtawari, President ICCI said that Pakistan and Malaysia have historic brotherly relations, thus both the countries should further strengthen the mutual trade relations by promoting business relations. He said that Pakistan has free trade agreement (FTA) with 3 countries that are Malaysia, China and Sri Lanka and Malaysia is the first Muslim country that have signed FTA with Pakistan which also reflects the importance of Malaysia for Pakistan. He further said that Malaysia should also help Pakistan in becoming full-dialogue partner in ASEAN regional bloc. Bakhtawari said that we could strengthen our economy by adopting development and progress of Malaysia as a model in numerous sectors especially in political democracy and stability as political stability is a key to economic development for any country.

If SBP chooses to keep rates intact, the government would be forced to borrow from SBP instead thus inducing upward pressure on inflation MUNNEBA SAEED analyst

CNG body threatens hunger strike on 12th

ISLAMABAD: To exert pressure on the government before it is dissolved for elections, All Pakistan CNG Association has threatened to go on hunger strike on March 12 if their demands were not met. Owners of CNG filling stations came from all over the country, including Sindh and Khyber Pakhtunkhwa to accuse the Petroleum Ministry and Ogra of not issuing marketing licences to many stations for over 18 months despite instructions from the prime minister and the judiciary. Ghiyas Paracha, chairman of APCNGA, said that the petroleum ministry has been using illegal measures to discourage CNG sector for the past five years. Paracha added that the hunger strike had been originally planned on March 11. However, the IranPakistan Gas Pipeline is scheduled to open on that day thus hunger strike would be held on March 12. STAFF REPORT

Alternate energy only ray of hope for Pakistan KHAIPUR PPI

Unprecedented energy crisis has dealt a fatal blow to the economy of Pakistan, shattering both agriculture and industry sector, and in this bleak scenario the option of alternate energy is the only hope to save Pakistan from a complete crumble, said speakers of the third International Conference on Computer & Emerging Technologies (ICCET 2013) held at Shah Abdul Latif University (SALU). In a panel of discussion on the Role of ICT and Consumer to Mitigate Energy Crisis in Pakistan, Dr Raziq Yaqub, Director Technical Training, NIKSUN, USA suggested using solar panels to run tubewells. Small-scale electricity could also be generated from the water flow of tubewells. Similarly, flow of water in kitchen tap and bathroom shower in houses could be used for this purpose. Dr Zubair A Shaikh said Pakistan is an agricultural country with vast opportunities to generate electricity from bio-waste. Such plants could be established at sugar

mills, rice husking mills, livestock farms and food processing centers. Bio-waste in homes and villages could also be used to generate energy. Other speakers including Dr Mahmood Shah, Dr Thuy, Nisar Ahmed Siddiqui, Dr Syed Irfan Haider, Dr Nisar Ahmed Memon, Dr Abdul Rehman Abbasi, and Yasir Ahmed suggested manufacturing of domestic type, home-grown, mini wind turbines. The speakers highlighted the role of solar energy and said solar panels should

be used for streetlights and other purposes. Solar technologies should be given priority, particularly for being used in Agriculture. Loans can be arranged by banks to purchase solar panels. They said energy efficient buildings should be constructed that may have skylight windows (to eliminate the need of bulbs). They said better adaptive insulating material saves energy as it changes properties with outside climate. They said

this material if used in construction that absorbs and reflect heat as per weather requirement saves energy spent on heating and cooling the house. They said calculators should be developed to calculate energy requirements of new constructions like big plazas, buildings and complexes. They urged encouraging distributed/localized generation to avoid transmission losses. They said line losses are the biggest water of energy in Pakistan.


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More delegations, land routes with Iran will increase trade. – Pakistan Iran Business Council chief Tariq Sayeed Sports exports witness positive growth ISLAMABAD: Exports of sports goods witnessed positive growth of 0.31 percent during the first seven months of the current fiscal year and 3.57 percent in January 2013. Exports of sports goods were recorded at $177.055 million in July-January (2012-13) against the exports of $176.505 million registered in July-January (2011-12), according to the data of Pakistan Bureau of Statistics (PBS). Among the sports goods, the highest increase of 25.06 was witnessed in the trade of gloves, exports of which increased from $57.796 million last year to $72.280 million during the current year. However, the exports of footballs decreased by 2.81 percent during the period under review by going down from $79.206 million to $76.679 million. The exports of other sports goods also decreased from $39.503 million in 2011-12 to US$ 27.796 million in 2012-13, showing negative growth of 29.64 percent, the PBS data revealed. Meanwhile, on year-on-year basis, the export of sports goods witnessed increase of 3.57 percent during January 2013 when compared to the same month of last year. The sports goods exports during January 2013 stood at $27.382 million against the exports of $26.437 million during January 2012. During the month under, the exports of gloves increased by 28.79 percent while the exports of football and other sports good decreased by 38.69 percent and 12.66 percent respectively as compared to the same month of last year. On month-on-month basis, the exports of sports goods increased by 7.09 percent January 2013 as compared to the exports of $25.569 million in December 2012, the data said. APP

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BUSINESS B Friday, 8 March, 2013

‘More teams, land routes with Iran will increase trade’ ISLAMABAD

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NNI

ARIq Sayeed, Chairman of the Pakistan Iran Business Council of FPCCI and former President of FPCCI and founder and former President of SAARC CCI has stressed the need for exchange in trade delegations and opening new land routes in Iran in order to increase the level of formal trade between the two countries. He stated this while welcoming Mehdi Sobhani, the Consul General of Iran in Karachi, during his visit to the Federation of Pakistan Chambers of Commerce and Industry Head Office. Tariq Sayeed appreciated the recent progress on the Pak-Iran pipeline project and called for its early completion in order to address the energy crisis facing Pakistan. He said that he was pleased to note that the Government of Pakistan was not backing down on this issue in spite of international pressure. He reiterated that Pakistan was a sovereign state, and nobody could dictate us on issues of national interest. He said that Pakistan was currently facing an acute shortage of gas, and the pipeline project would help address this shortage to a great extent. He also appreciated the role of the Iranian Government in financing the project. Tariq Sayeed spoke about the need to curb smuggling along the Pak-Iran border, ensuring better access for Pakistan’s competitive items such as rice and citrus fruits, and the duty structure in Iran for textile products. He also expressed FPCCI’s desire to organize a single country exhibition for Pakistani products in Iran, which would allow Pak-

Major Gainers COMPANY Unilever Pak Unilever Food Colgate Palmolive Indus Dyeing sD Exide (PaK)

OPEN 10575.00 4255.00 1600.01 447.75 313.00

HIGH 11103.75 4345.00 1680.01 470.00 328.65

LOW 10700.00 4320.00 1600.00 460.00 313.00

CLOSE 11103.75 4345.00 1680.01 468.33 328.65

CHANGE 528.75 90.00 80.00 20.58 15.65

TURNOVER 4,920 60 2,300 600 11,100

1400.00 350.00 121.84 232.44 516.00

1377.99 325.01 121.84 221.00 504.00

1392.67 327.84 121.84 223.93 505.21

-57.33 -11.87 -6.40 -5.84 -4.80

250 9,500 1,000 115,600 11,100

6.34 8.56 16.08 8.08 123.80

6.06 8.26 15.03 7.65 119.50

6.16 8.33 15.16 7.77 122.17

0.27 0.10 -0.46 -0.05 2.14

21,988,500 13,153,000 10,280,500 9,272,000 8,645,200

Major Losers

Pakistan is a sovereign state and nobody can dictate us on issues of national interest TARIQ SAYEED istan’s exports to gain more visibility in the neighboring country. Appreciating the efforts of Mr. Sobhani’s predecessor in Karachi to increase PakIran trade, he hoped that FPCCI and the Iranian Consulate would continue to have as strong a working relationship in the future as had been witnessed in the past. Mehdi Sobhani said that the Iran-Pak pipeline would meet one third of Pakistan’s energy needs. He said that Iran was importing 1 million tons of rice from around the world every year, while Pakistani rice was already highly appreciated in Iran. Pakistan also had very good quality textiles, which Iran could use. Iran could provide requisite technology to Pakistan in meat and agri-processing. He announced the commencement of a direct flight between Karachi and Mashhad. He pledged his round-the-clock assistance in resolving visa issues for business travelers from Pakistan.

Bata (Pak) Indus Motor Co Khyber tobacco national Refin Millat tractors XDXB

1450.00 339.71 128.24 229.77 510.01

Volume Leaders lafarge Pakistan Fauji Cement Jah.sidd. Co. lotte PakPta Engro Corporation

5.89 8.23 15.62 7.82 120.03

Interbank Rates UsD GBP JPy EURO

PKR 98.0183 PKR 146.9392 PKR 1.0403 PKR 127.7669

Forex BUY Us Dollar Euro Great Britain Pound Japanese yen Canadian Dollar Hong Kong Dollar UaE Dirham saudi Riyal

99.10 128.91 147.87 1.0347 95.00 12.51 26.85 26.35

SELL 99.35 129.16 148.10 1.0455 96.69 12.77 27.10 26.55

CORPORATE CORNER

KARACHI: Ahsan Ahmad, CEO of Urban Souk (Pvt) Ltd addresses a ceremony on the launch of ELSOLPK IT Group’s online fashion portal. STAFF PHOTO

Humaima Malick named Brand Ambassador for Samsung Galaxy

LAHORE: Samsung Electronics has signed on famous film and fashion icon Humaima Malick as its brand ambassador for Samsung Galaxy series mobile devices. This announcement was made at a press conference held by Samsung at a Country Club in Lahore. In this role, Humaima will be working with Samsung to raise awareness about Samsung mobile devices and ultimately make Samsung Galaxy series the preferred smartphones in Pakistan. Commenting on his association with Samsung, Humaima remarked that ‘Samsung is a brand that celebrates talents and creates the future we are all working hard for. I tend to endorse brands very selectively as I need to relate to the brand as well as believe in it. PR

Samsung unveils the Galaxy ‘Grand’ smartphone in Pakistan KARACHI: Samsung Electronics Ltd. a global technology leader has launched its latest Galaxy “Grand” smartphone in Pakistan. A vibrant launch ceremony was held at the Royal Palm Golf &

Country Club, followed by an enjoyable movie show attended by a large number of celebrities from television, film and fashion industry of Pakistan. The guests at the launch event were also given opportunities to win fabulous prizes including Samsung Galaxy “Grand” smart-phones, through a lucky draw. Farid Ullah Jan - Head of Mobile phones division at Samsung EC Pakistan said; “Samsung, as a brand, is born out of a commitment to relentlessly pursue a better tomorrow with a revolutionary freedom of communication. PR

Mir Javed Hashmat appointed Acting Managing Director BOK PESHAWAR: The Government of Khyber Pakhtunkhwa Finance Department has notified the appointment of Mir Javed Hashmat as Acting Managing Director of The Bank of Khyber (BOK). He was working as Executive Director of the Bank and join BOK as Member Board of Directors in September 2008. Prior to joining Bank of Khyber Board of Directors he was active member of Business community and office bears of various industrial and business organizations , as a Member Board & later as Executive Director of BOK bring with him 35 years of Corporate & Investment Banking experience with professional background in Banking and Financial industry where he worked on senior positions. Mir Javed Hashmat started his career in 1974 by joining Industrial Development Bank of Pakistan (IDBP) as Project Evaluation Officer and served the IDBP for over 25 years on various important positions besides IDBP’s Provincial Chiefs for Khyber Pakhtunkhwa & Baluchistan Provinces. PR

Qatar Airways heralds 2013 as exciting year BERLIN: Qatar Airways today spoke of how 2013 will be an exciting year and chapter for the State of Qatar’s aviation industry as the country prepares for the opening of the brand new Hamad International Airport. The iconic facility, built at a cost of over US$15.5 billion, is set to open in phases, beginning April 1 with a select-few airlines moving from the current Doha International Airport. PR

New USAID-funded computer center helps power MEPCO MULTAN: Helping to strengthen Pakistan’s energy sector in ways that increase the supply of electricity to consumers is a top assistance priority for the United States government. That’s why yesterday the United States Agency for International Development (USAID) inaugurated a brand-new planning and engineering computer center at the Multan Electric Supply Company. This center is equipped with the latest generation of sophisticated computers and software that engineers at the Multan Electric Supply Company will use to help ensure a more reliable supply of power to consumers. At the event, USAID Mission Director Jock Conly remarked, “Distribution companies don’t have a system to assess energy losses. That makes it difficult to come up with a solution to the energy crisis. PR

Telenor Pakistan wins ‘Top Employer Award’ by ROZEE.PK

KARACHI: Telenor Pakistan has won the ‘Top Employer Award’ by ROZEE.PK recently. Picture shows: Muhammad Shoaib Baig, Chief Human Resources Officer, Telenor Pakistan along with Muhammad Sajwani, Director HR Shared Services, Telenor Pakistan receiving the award by Monis Rahman, CEO of ROZEE.PK during a prestigious award distribution ceremony held in Islamabad. Telenor Pakistan was also ranked the most preferred employer in ROZEE.PK survey back in 2009. PR

OMD named most creative media agency KARACHI: For the seventh time, Omnicom Media Group Agency OMD Worldwide has been named the world’s most creative media agency by the Gunn Report for Media. The Gunn Report for Media is the

industry standard for evaluating media creativity, ranking agencies according to their performance in the top industry awards shows around the world. PR

NBP announces Haj balloting for employees

KARACHI: National bank of Pakistan conducted Hajj 2013 balloting for 27 employees (5 Executives, 10 officers and 10 clerical/non clerical staff & 2 retired employees) for performance of hajj on Bank’s expenses for the year 2013. NBP President & CEO Dr. Asif A. Brohi, presided over the hajj balloting ceremony, Mr. M. Rafiq Bengali, SEVP/Group Chief, Overseas Banking Group, Mr. Tariq Jamali, SEVP/Group Chief Compliance Group, Mr. Khalid Bin Shaheen, SVEP/Group Chief Home Remittance Management Group, Mr. Muhammad Hassan Khaskheli, EVP/Divisional Head, Personnel & Industrial Relations Division HRM & AG, HO, Mr. Qamar Hussain, EVP DH, HR Division, HRM & AG, HO, Mr. Zia Ahmed Jan, SVP/Wing head, IR & EGW, P&IRD, HRM&AG, HO and representatives from CBA Unions and Officers Association and Divisional Head, Corporate Communication Division, Executives and officers from Corporate Communication Division attended the ceremony. PR

ZRG presents emerging concepts in CRM

KARACHI: ZRG Int’l, the market leader in unified customer contact center and CTI solutions, presented innovative ideas and best practices in customer relationship management during a financial industry conference on Branchless Banking. The oneday conference, organized by 1Link, was inaugurated by Kazi Abdul Muktadir, Deputy Governor, SBP and was attended by over 250 leading professionals from the financial sector. The Branchless Banking model will allow financial service providers to offer banking services to consumers without the need for setting up traditional style Brick-and-Mortar branches. PR


profitepaper pakistantoday 08th March, 2013