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Pak-Iran gas pipeline project to meet energy requirements. — Qamar Zaman Kaira
BUSINESS Tuesday, 12 March, 2013
KARACHI ISMAIL DILAWAR
RAGILITY of the investors’ confidence on the country’s stocks market exposed Monday with Karachi Stock Exchange (KSE) nose-diving by 442 points amid panic selling. Threat of the imposition of economic sanctions by the United States, the market observers believe, on Pakistan for clinching the $ 7.5 billion gas pipeline deal with Iran played havoc with investors’ sentiments on the c0uontry’s largest bourse. “Panic selling witnessed at KSE amid the investors’ concerns for US warning Pak-Iran IP gas project could incur sanctions connected with Iran’s nuclear program,” viewed senior equity analyst Ahsen Mehanti. Mehanti, also a director at Arif Habib Securities, said institutional profit-taking was witnessed in stocks across the board post major earning announcements as the investors awaited the outcome of pipeline deal. The first day of the week saw the benchmark KSE 100-share index sliding by 441.62 points or 2.46 percent to close at 17,522.56 points against 17,964.18 of last week on Friday. The intraday high and low were, respectively, recorded at 18,036.90 and 17,493.28 points. The analysts said early morning the index mounted to 18,059 points, but soon lost 258 points and fell to 17,705 points amid fears that Pak-Iran gas deal could upset the equity market
Fear oF IP gas Project sanctIons brIng Kse down by 442 PoInts and investment climate in the country. President Zardari is in Iran to lay foundation stone of the strategic project. “There is panic in market over this gas deal,” they said. The free-float KSE 30 index also lost 371.38 points by dropping to 14,219.36 points from 14,590.74 points of last trading session. Of the total 348 scrips traded, only 51 set in the green zone, while 285 closed in minus and 12 remained unchanged. The trading volume slightly declined to 234.655 million shares from Friday’s 235.847 million. The market capital contracted by Rs 94 billion to Rs 4.368 trillion as against the previous Rs 4.462 trillion. The trading value, however, increased to Rs 8.226 billion from Rs 8.067 billion of last session. PTCL appeared as a volume leader by having its 20.6 million shares traded on the day losing, however, 49 paisas in terms of per share that opened at Rs 20.76 and closed at Rs 20.27. Engro Corporation, Jahangir Siddiqui Co, Fauji Cement, Nishat Mills, Telecard, Maple Leaf, Lotte PakPTA, Byco Petroleum and NIB Bank were others to follow. Turnover on the futures market also remained dismal at 22.89 million as against 35.04 million shares of Friday. “Pakistan and Iran are going to lay foundation stone of the Pak-Iran gas pipeline project that can attract sanctions from America and annoyance from the Saudi Arab,” suggests an early morning account of the investors’ fear on the market. Nauman Khan, a Topline analyst, said besides selection of
PAKISTAN APPROVES TAX BREAK FOR REFINERIES TO PRODUCE EURO 2-COMPLIANT GASOIL ISLAMABAD INP Pakistan has approved raising the tax break offered to refiners on high speed diesel to 9% from 7.5%, to help them recover the cost of upgrading their plants to produce Euro 2-compliant gasoil, a government official said. The Economic Coordination Committee, Pakistan’s highest decision making body, on Friday evening decided to raise the tax break, an official of the Ministry of Petroleum and Natural Resources who attended the meeting confirmed on condition of anonymity. The tax break, commonly known as “deemed duty” will take effect from January 1, 2016, on the condition that refiners have fulfilled their commitment to set up hydro-desulfurizers at their plants, Asim Hussain, advisor to the Prime Minister on energy matters, said March 5. The tax break will stay in place until refiners have recovered the cost of the upgrades. Under Pakistani law, the “deemed duty” cannot be raised without raising the import tax on
gasoil, so the ministry has also proposed increasing the customs duty on imported gasoil to 9%. Pakistan relies on imports to meet 70% of its gasoil demand of 7.2 million mt/year (147,200 b/d). The tax break will help refiners save around Rupees 1/liter (1 cent/liter), said Aftab Hussain, CEO of Pakistan Refinery Limited. So, a refiner selling 1 billion liters/year could save Rupees 1 billion or $100 million, he added. Separately, the Economic Coordination Committee has accepted the petroleum ministry’s demand to extend the deadline for refiners to start producing Euro 2-compliant diesel to December 31, 2015, from June 2014. This is the second time the deadline has been pushed back from its original start in 2012. In order to meet the tighter specifications, refiners are required to upgrade their plants by adding a hydro desulfurization unit, allowing them to cut the sulfur content in gasoil to 0.05% from the current 1%. All refiners, except Pak Arab Refinery Co., had said they could not meet the June 2014 deadline due to the ongoing financial crisis.
The free-float KSE 30 index also lost 371.38 points by dropping to 14,219.36 points from 14,590.74 points of last trading session. Of the total 348 scrips traded, only 51 set in the green zone, while 285 closed in minus and 12 remained unchanged.
the caretaker set-up, development on IP gas deal had got the investors’ eyes on the Karachi bourse. This, he said, could strain Islam-
abad’s ties with its largest donor, the US. Khan said US’s expression of reservation over the project could potentially have implications for the
country’s aid as well as trading environment. “The uncertainty is creating a wave of uneasiness amongst the investors and was one of the reasons behind 1% or 221 points fall in KSE100 last year,” said Khan adding the ground breaking ceremony of $7.5 billion pipeline project Monday created uneasiness amongst the investors. “Though, we flag that threat of sanction is still in its infancy stages but it has created some nervousness amongst the investors,” the analyst said. To recall, sanctions imposed on Pakistan have span over 3phases i.e. 1979-1990, 1990-1998 and 1998-2001. In the last phase, imposed due to 1998 nuclear test, amongst other steps economic de-
REMITTANCES SWELL TO $9.23 BILLION IN FIRST 8 MONTHS KARACHI STAFF REPORT
Pakistanis working abroad remitted over $9.234 billion during the first eight months of current fiscal year, July–February FY13, reported the central bank Monday. This, the bank said, showed a growth of 7.47 percent or $641.93 million compared with $8.592 billion the dollar-hungry country had received during the corresponding period of last fiscal year. The inflow of remittances in the said period from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $2,627.78 million, $1,865.73 million, $1,461.13 million, $1,284.75 million, $1,067.50 million and $242.61 million, respectively, compared with the inflow of $2,325.98 million, $1,903.89 million, $1,525.45 million, $991.20 million, $968.91 million and $244.91 million respectively in July-February 2012. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first eight months of current fiscal year (July-February FY13) amounted to $685.17 million as against $632.45 million received in the first eight months of last fiscal year (July-February FY12). The monthly average remittances for July‐February 2013 period comes out to $1,154.34 million as compared to $1,074.10 million during the corresponding period of the last fiscal year. An amount of $1,028.33 million was remitted by overseas Pakistanis in February 2013 as against $ 1,156.81 million in the same month of the last fiscal year (February 2012). In February 2013, the
inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $335.76 million, $196.37 million, $137.13 million, $129.40 million, $125.67 million and $24.72 million respectively as compared with the inflow of $317.51 million, $259.55 million, $197.14 million, $137.73 million, $123.50 million and $29.27 million respectively in February, 2012. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the eighth month of the current fiscal year (February FY13) amounted to
velopment assistance was terminated; foreign military sales were suspended; credits by the US suspended; US banks withheld all loan trenches; loans from donors agencies, such as the IMF and World Bank, were suspended. However, several important components of the sanctions were waived during 1998. Also, Arif Habib’s Mehanti said factors like security unrest in the city after Abbas Town blast, dismal cement sales for Feb’13 and economic uncertainty adversely impacted the sentiments on Monday. This, he said was despite easing gas shortfall issues in fertilizer sector and ECC’s approval for raise in refineries deemed duty to 9 percent.
$79.28 million as against $92.11 million received in the eighth month of last fiscal year (February 2012). According to the State Bank, the continued growth in workers remittances is the result of the efforts made by Pakistan Remittance Initiative (PRI) in collaboration with other stakeholders to facilitate both Overseas Pakistanis and their families back home. Since its inception, PRI has taken a number of steps to enhance the flow of remittances through formal channels which include: (a) preparation of national strategies on remittances (b) taking all necessary steps to implement the overall strategy (c) playing the advisory role for financial sector in terms of preparing a business case, relationship building with overseas correspondents, creating separate efficient remittance payment highways and (d) becoming a national focal point for overseas Pakistanis through round the clock call centre with toll free lines, separate web site etc. It may be recalled that in order to provide an ownership structure in Pakistan for remittance facilitation, the Government of Pakistan through the central bank and Ministries of Overseas Pakistanis and Finance had launched a joint initiative called PRI in April 2009. This initiative has been taken to achieve the objective of facilitating & supporting faster, cheaper, convenient and efficient flow of remittances.
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If given a chance I can turn Pakistan into Dubai and Europe. — Malik Riaz
BUSINESS B Tuesday, 12 March, 2013
Malik riaz signs $20b MoU with Us group RAWALPINDI: Bahria Town and a US investment group signed an memorandum of understanding (MoU) for $15 to 20 billion investment on Monday. Former Chairman of Bahria Town Malik Riaz and US investment group Thomas Kramer inked the MoU on behalf of their respective companies for the Bodha Island City project. Under the project Bahria Town in collaboration with the foreign companies associated with prominent US investor Thomas Kramer would construct the world’s tallest building and a number of other projects some 3.5-kilometres off the Karachi shore. Malik Riaz speaking on the occasion said that if he is given a chance he would make Pakistan into Dubai and Europe. He said that the project would help provide employment to the unemployed and this in turn would help eliminate terrorism. He said that we would continue to invest in Pakistan despite all odds and we are in talks with foreign investors. Malik Riaz said that he promises the nation that in next few years he would bring foreign investment worth more than Rs 50 billion and no one can stop that. He said that until
Major Gainers COMPANY Colgate Palmolive Sapphire Fiber XD Ismail Industr Faisal Spinning Sana Industries
OPEN 1764.01 165.45 161.00 93.89 52.50
HIGH 1810.00 171.90 167.00 96.99 54.98
LOW 1810.00 171.75 167.00 96.95 54.90
CLOSE CHANGE 1810.00 45.99 171.83 6.38 167.00 6.00 96.99 3.10 54.90 2.40
TURNOVER 50 200 500 3,000 1,000
11550.00 1280.00 291.00 319.00 342.01
10702.00 1280.00 291.00 295.45 328.01
10720.00 1280.00 291.00 297.42 332.65
-280.00 -45.00 -14.55 -13.58 -12.22
320 250 100 21,800 2,000
21.49 130.80 15.14 8.25 78.20
20.11 121.59 13.94 7.78 73.90
20.27 122.53 13.94 7.90 74.35
-0.49 -5.45 -1.00 -0.28 -3.43
20,638,500 18,667,100 17,915,500 13,535,000 12,476,000
Major Losers UniLever Pak Bata (Pak) Bhanero Tex. National FoodsSPOT Exide (PAK)
11000.00 1325.00 305.55 311.00 344.87
Volume Leaders P.T.C.L.A Engro Corporation Jah.Sidd. Co. Fauji Cement Nishat Mills Ltd
20.76 127.98 14.94 8.18 77.78
Interbank Rates USD GBP JPY EURO
PKR 97.8801 PKR 146.0274 PKR 1.0183 PKR 127.2735
Bodha Island City would be developed within a period of five to 10 years. The project would comprise, Net City, Education City, Health City, Port City and other infrastructure projects children are given quality education Pakistan cannot excel. A spokesman for the Bahria Town said the project called Bodha Island City would be developed within a period of five to 10 years. He
said the project would comprise, Net City, Education City, Health City, Port City and other infrastructure projects. He said the worlds’ most modern shopping mall would also be
built on the Island City, which would deal with international brands. According to reports, the Island City would be linked with Karachi through a six-lane bridge. ONLINE
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.30 127.93 146.34 1.0179 95.17 12.51 26.82 26.32
99.55 128.15 146.52 1.0258 96.61 12.72 27.00 26.50
CORPORATE CORNER LAHORE: The Punjab Provincial Cooperative Bank is sending five employees on haj. The employees were selected after balloting in the committee room carried out by President Talat Mahmood. The fortunate employees are Shahid Bukhari, Muzafar Sultan, Sarfraz Ali, Fiazul Hasan and Rehmat Ali.
Lahore Auto-Show 2013 promises to be biggest Auto event KARACHI: The management of the Pearl Continental Hotel Karachi held Sunday brunch with Masala HUM TV Network. Picture shows chef Shireen Anwar with the chefs of the hotel. PR
KARACHI: Kaukab Iqbal, Chairman Consumers Association of Pakistan, presents crest to Syed Ejaz Mazhar, Director Customers Services PIA. Muhammad Ishaq Abbasi, Vice Chairman Consumer Association of Pakistan was also present at the occasion. PR
KARACHI: The Lahore Auto Show to be held on the 17th of March at the Liberty Market promises to be the biggest Auto event in the city, with a static display of more than 500 exclusive cars and motorbikes. Glow by Warid will be presenting the event while Shell Helix Motor Oil is the gold partner for the show. PakWheels.com along with TDCP has organized the event under the auspices of the Government of Punjab and PHA as part of the Range-Lahore celebrations. This extravaganza is aimed at nurturing the automotive industry in Pakistan, through an extravagant display of vehicles, where the young fans can also gain insight on the hazards of street racing and reckless driving. The Marketing Manager of PakWheels.com – Mr. Ahmed Saeed said; “PakWheels has a history of orchestrating successful auto-shows in numerous cities of Pakistan, that attract thousands of visitors from all walks of life. We are delighted to have “Glow” by Warid and Shell Helix Motor Oil as our premium partners and are thankful to TDCP for helping us in organizing such a grand event as part of the Rang-e-Lahore celebrations”.
strategy. My objective here is to contribute to Lafarge Pakistan’s mission to supply the best construction solutions for customers, safely, with sustainability and at peak quality. We hope to work together on boosting domestic sourcing of energy and components to improve costs and reliability”, said Hoddinott. Mr. Hoddinott paid a visit to the Syntronics plant at Hattar to appraise the prospect of exporting cement packaging material from Pakistan in order to support the local economy. He also visited the coal mines at Kallar Kahar.
11th International Machinery Exhibition of Garment & Textile Technology KARACHI: After the 10 years of continuous success¸ Pegasus Consultancy launches the 11th Edition of the International Machinery Exhibition of Garment & Textile Technology – MEGATECH Pakistan 2013. The Exhibition will take place from 28-30 March, 2013 in Expo Centre, Lahore. The exhibition will showcase the innovative machinery and technology related to Textile, Garment, Embroidery and Leather sectors. Mega Tech Exhibition, 2013 event will bring in investment opportunities for local and international exhibitors, brand owners and manufacturers. Renown Companies are expected to gather at the platform to display their products and many international countries will be participating in the Exhibition.
Kamal Lawn by Zara Shahjahan comes to town with a big bang!
Lafarge EVP Energy and Strategic Sourcing visits Pakistan
Etihad Airways switches flights KARACHI: Etihad Airways has announced that from March 10 the airline’s double-daily flights from Abu Dhabi will operate to Amman’s new Queen Alia International Airport. Captain Richard Hill, Etihad Airways’ Chief Operations Officer, said: “We believe moving to the new airport is a positive step which will continue to meet our guests’ expectations of travelling with the world’s leading airline.” The new airport is designed to accommodate the rapid increase in passenger numbers and is expected to almost triple the airport’s capacity. The terminal, designed by Foster + Partners, is 103,000 sqm and should increase capacity by 60% to nearly twelve million passengers per year.
Punjab Co-Op Bank to send 5 employees on Haj
ISLAMABAD: Peter James Hoddinott, the Executive Vice President of Energy and Strategic Sourcing at Lafarge, visited Pakistan from 6th - 8th March, 2013 to review the country’s potential as a major exporter for raw and finished materials. The EVP commended Lafarge’s local team on upholding the organization’s guiding principle of sustainable development and making industrial operations safer for both employees and the environment the company operates in. “It is a real pleasure to be able to visit one of the reference cement plants for the Lafarge Group. This team has succeeded in achieving sustainability and competitiveness with an impressive alternate fuels
KARACHI: The rumblings in the city notwithstanding, renowned designer Zara Shahjahan certainly made her presence felt with a fantastic launch of Kamal Lawn. The entire fashion fraternity was present at the event to make it a huge success. With exciting energy and charm, Dolmen Mall was the center of attention as people flocked in to see the vibrant and enticing colors of the latest addition to the wave of lawns that the city is being introduced to.Kamal lawn extends their
success story by launching a brand “So Kamal” in collaboration with Zara Shahjahan who has given the brand an aura of feminine aesthetics. Kamal lawn offers extravagant spring / summer collection. Mahrukh Anwar, Brand Manager at Kamal Limited said” It was a marvelous event and the turnout of people was amazing. Kamal Lawn by Zara Shahjahan will definitely steal the show this year”. The three day exhibition at Dolmen Mall, Clifton started with an exclusive fashion show which included voguish models such as Maham, Areeba, Bakhtawer, Marvi Sarfaraz, Fauzia, Mahek, Falak, Abeer, Nadia &Sana Khan. It also featured renowned model Aamina Sheikh, the brand ambassador of Kamal lawn.
PTCL holds HR Conclave 2013
ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has organized a one-day HR Conference entitled HR Conclave 2013. The Talent Management & Learning function of HR at PTCL, in lieu of the strategic transformation of HR, joined hands to “Unleash HR Potential”. The conference served as a shared platform for representatives of the HR Community at PTCL to recap the achievements of the past year while projecting towards the future of HR. The conference was led by Syed Mazhar Hussain, PTCL Senior Executive Vice President (SEVP) HR, accompanied by Muhammad Nehmatullah, PTCL Senior Executive Vice President (SEVP) Finance; Jamal Hussain Al Suwaidi, PTCL Senior Executive Vice President (SEVP) Procurement & Supply Chain Management; Mateen Malik, PTCL Executive Vice President (EVP) Operations and Maintenance; Abdul Sattar Naeem, PTCL Executive Vice President (EVP) HR Services; Shahzad Safdar Khan Executive Vice President (EVP) Talent Management & Learning and Naushad H Javaid, PTCL Executive Vice President (EVP), Leadership and Organizational Development. During the course of the conference, HR officials representing the headquarter and regional offices of PTCL identified areas of focus for the year 2013 to strategically align the goals and objectives of the HR Department with the organization’s vision and mission. Interactive team based activities were conducted to instill values of motivation and teamwork. After the conference, Syed Mazhar Hussain also inaugurated the newly built cafeteria at PTCL academy. A corporate dinner and musical evening was also held to commemorate the successful implementation and management of the HR Conclave 2013.