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car SaleS uP by 8Pc IN 3MFy14
Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. — Jack Welch
Govt’s reforms have restored global confidence in Pakistan: Dar FINANCE MINISTER SAYS PAKISTAN WILL HONOR ALL ITS INTERNATIONAL COMMITMENTS
SAYS GOVT HAS DECIDED TO BEGIN WORK ON DASU AND DIAMER BHASHA DAMS SIMULTANEOUSLY
MORE THAN 9,000MW OF ELECTRICITY WILL BE ADDED TO SYSTEM AFTER TWO DAMS’ CONSTRUCTION
WASHINGTON
KARACHI: The latest numbers show that the sale of locally-manufactured cars, including LCVs and Jeeps, swelled to 32,841 units in 3MFY14 from 30,541 units, depicting 8% growth year-on-year. “Delving deeper, the overall growth continued to be driven by improved sales of HCAR,” said Shajar analyst Syed Faizan Ahmed. While PSMC sales grew by a mere 2% to 17,966 units, he added. On the other hand, INDU sales increased by a minor 1% to 8,419 units, said Ahmed. During this period, the HCAR sales rose by a significant 43% to 6,304 units benefiting from higher sales growth of ‘Civic’. Subsequently, HCAR’s market share climbed to 20% in the period under review. In Sep’13, car sales stood at 11,166 units, up 15% from 9,721 units in the same month last year. "Following the diminishing effect of pre-budget buying seen last month, car sales improved by 1% on a MoM basis," the analyst said. Amongst the individual companies, PSMC sales improved in comparison to last year while showcasing an improvement of 5% from last month, and strengthening its market share to 55%. StAFF rEPort
StOckS eND hIGher, ruPee weakeNS KARACHI: The Karachi Stock Exchange closed higher on Friday, with the benchmark 100-share index of the Karachi Stock Exchange rising 100.41 points to 21,775.39. Positive sentiment was witnessed in the market as global markets also ended higher on Friday, traders said. Volume remained less due to the forthcoming holidays next week. The rupee ended weaker at 106.11/106.16 against the dollar, compared to Thursday's close of 106.00/106.10. Overnight rates in the money market fell to 9.40 percent from Thursday's close of 9.50 per cent. StAFF rEPort
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APP
INANCE Minister Ishaq Dar has said that Pakistan's introduction of key reforms and measures to fix the national economy have bolstered international confidence as top world institutions have expressed their willingness to partner in the country's development. Senator Dar, who is leading a Pakistani team of economic managers to the IMF-World Bank meetings, sounded upbeat after holding a series of discussions with leaders of financial institutions and his counterparts from several countries on Thursday. "At each forum our efforts have been appreciated and now the world financial institutions acknowledged a seriousness on part of the government led by Prime Minister Nawaz Sharif towards addressing long-delayed issues and pulling the country out of its economic woes,” he said after meeting with World Bank Managing Director Sri Mulyani Indrawati. He said the PML-N government is implementing its election manifesto and the world now recognises that Pakistan is striving to move the economy forward in its own national interest. Regarding his
meeting with the World Bank MD, the finance minister said he conveyed the government's decision that it has undertaken to simultaneously build both Dasu and Diamer Bhasha dams. Pakistan, he said, is getting support from the World Bank and other institutions while a study on Diamer Bhasha dam is also under way. "We will start our project without waiting for foreign studies --- we will construct both dams in line with our national interest,” he said, adding that the completion of the two projects would not only add more than 9,000 MWs
of power to the system but also help maintain massive water reservoirs. Earlier, the finance minister had useful meetings with his counterparts from Afghanistan and Iran, and president of Japan International Cooperation Agency. Dar said the US has declared Prime Minister Nawaz Sharif's October 23 visit to the White House for talks with President Barack Obama as official working meeting. "As we move forward with reforms and recovery agenda, Pakistan will get the importance it deserves,” he added. Meanwhile, the finance minister also ad-
US debt deal hopes lift world shares, dollar fades LONDON AGENCIES
Firming hopes of a US deal to ensure the country does not default on its debt lifted world shares for a second day on Friday and left the dollar on course for its first weekly rise in five. Republican lawmakers on Thursday offered a plan that would extend the US government's borrowing authority for several weeks, staving off a default that could otherwise come as soon as October 17. While no deal emerged from a meeting with the Democrats at the White House, the two sides appeared ready to end a political crisis that has shuttered much of the US government for over a week and dented Washington's image worldwide.
MSCI's world shares index .MIWD00000PUS, which tracks stocks in 45 countries, was up almost 0.5 percent by mid-session in Europe as a 0.4 percent rise by European shares .FTEU3 followed a rally in Asian and US markets overnight. Stock futures pointed to modest gains of around 0.1 percent on Wall Street when trading resumes with investors expected to be cooler after the S&P 500 .SPX on Thursday enjoyed its best day since January. One senior Republican politician said a US deal could be struck as early as Friday and Nick Beecroft, chairman of Saxo Capital Markets, said he expected a short-term agreement which would give 6 weeks of breathing space, by Tuesday at the latest. "I think when we
see an agreement on the debt ceiling we will see the high in US Treasury yields drift down due to relief out of that and the stock market will probably do well," Beecroft said, adding there were other implications for financial markets too. "I think it lends even more support to what I am beginning to feel, which is that tapering is not going to happen until March. When the data eventually comes through, it will look so subdued that there will be no way the Fed's hurdles (to start stimulus withdrawal) would have been met by December." That view saw the dollar .DXY slip back 0.2 percent against a basket of currencies. However, gains made earlier in the week left it on course for its first weekly rise since early September.
dressed a gathering of Pakistan Bank Fund Staff Association that comprises World Bank and IMF employees of Pakistani origin. He informed the experts of some bold and difficult reforms and austerity measures the government has put in place to revive the national economy. He also defended the International Monetary Fund programme for the country. Dar told the participants that the Fund had nothing to do with recent currency devaluation in Pakistan. He said Pakistan will honor all its international commitments as the government is determinedly working to turn around the economy.
Pakistan, OFID sign $50m loan agreement for Neelum Jhelum project WASHINGTON: Pakistan and the OPEC Fund for International Development entered into a loan agreement on Friday under which the OFID would provide $50 million for completion of the Neelum Jhelum Hydropower Plant Project. Finance Minister Ishaq Dar and the director general OFID signed the agreement. The objective of the original project is the construction of a hydroelectric power plant, involving the diversion of the Neelum River through an underground tunnel system. The project is aimed at meeting growing electric power demand through improved access to electricity and reliable power supply while boosting the share of hydro-generated power in the overall mix of electricity generation of Pakistan. The OPEC Fund for International Development (OFID) is the development finance institution established by the Member States of OPEC in 1976 as a collective channel of aid to the developing countries. APP
IMF CHIEF SEES MULTI-POLAR GLOBAL ECONOMY, DEEPER FINANCIAL INTEGRATION LAGARDE SAYS OVER THE NEXT GENERATION, THE RATE AND REACH OF CHANGE IS LIKELY TO BE EVEN GREATER THAN BEFORE WASHINGTON SPECIAl CorrESPoNdENt
International Monetary Fund (IMF) Managing Director Christine Lagarde outlined long-term trends facing the global economy and implications for the Fund in a keynote speech at the plenary session of the IMFWorld Bank 2013 meetings. Even while grappling with a range of difficult transitions in the aftermath of the global financial crisis, Lagarde pointed to the longer-term trends and “frontier risks” facing the IMF’s 188 countries. “Over the next generation, the rate and reach of change is likely to be even greater than before. With that, the needs of our members will change. So too must the Fund.” She mapped out three milestones
for the road ahead including a more multipolar global economy. In the next decade the share of emerging and developing economies in global GDP will increase from about half to nearly two-thirds, Lagarde stated, setting the stage for a world where economic power will be far more dispersed across all regions. The IMF must mirror this shift and be more representative, Lagarde said. The institution is already moving in this direction, Lagarde added, referring the 2010 governance reforms, which once implemented, would provide a platform on which to build further. Representation is also about how the IMF engages with its members, Lagarde stressed. “To be their trusted advisor, our analysis and advice must meet major tests: it must be of the highest quality; it must be objective; and it must be even-handed.” The IMF chief also envisaged a more financially integrated global economy. “As emerging and developing countries grow and converge, their financial interconnections will become deeper and more complex. Deeper integration will fuel growth, but it will not be without risk,” Lagarde warned. “Experience teaches us a
vital lesson: greater financial integration raises the probability and size of financial crises,” she stated. Lagarde underlined other long-term trends—demographic shifts, income inequality, and environmental sustainability—that will affect growth and stability. Where these issues affect the macroeconomic health of the IMF’s member countries, they must be “part of our work,” she said. In all these new areas of risk, Lagarde said that it would be important for the IMF to cooperate more effectively with other institutions and help to focus global attention
on specific issues. Lagarde gave the example of how the IMF’s fiscal advice could help countries cope with proper carbon pricing. She also cited a new IMF study that showed that enabling women to participate in the workforce could be an “economic game changer,” with substantial increases in per capita incomes in countries all over the world. At the same time, she said, the Fund's comparative advantage is to bring its macro-critical perspective to bear. “Maintaining that focus is what, above all, has
As emerging and developing countries grow and converge, their financial interconnections will become deeper and more complex. Deeper integration will fuel growth, but it will not be without risk CHRISTINE LAGARDE IMF MD made the IMF an effective institution in the past,” Lagarde said. “Retaining that focus will enable us to serve our membership effectively in the future.”
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In the end, all business operations can be reduced to three words: people, product, and profits. — Lee Iacocca
textIle ScrIPS Fetch 150PC MORE PROFIT IN FY13
Only long-term plan to ease dollar pressure on rupee LAHORE
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BUSINESS B Saturday, 12 October, 2013
Major Gainers COMPANY Rafhan MaizeXD Wyeth Pak Ltd Khyber Tobacco Pak Services Mari Petroleum
OPEN 5181.00 4240.00 270.77 277.75 156.04
HIGH 5370.00 4300.00 280.00 286.90 163.84
LOW 4950.00 4100.00 257.24 286.50 157.00
CLOSE CHANGE 5246.67 65.67 4250.00 10.00 280.00 9.23 286.90 9.15 162.96 6.92
TURNOVER 80 700 1,400 200 977,700
580.00 151.05 457.00 107.00 191.00
551.00 151.05 450.00 100.70 187.00
551.00 151.05 451.28 101.43 187.00
-25.79 -7.95 -5.09 -4.57 -4.00
500 200 32,250 11,000 6,000
61.25 26.43 6.13 10.52 8.79
59.30 25.70 5.75 10.28 8.21
59.86 25.87 5.81 10.39 8.47
-1.05 -0.01 0.08 0.20 0.31
6,798,500 5,034,500 4,927,500 4,440,500 3,732,500
INP
KARACHI
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EXTILE being the country's largest industry remained a shining star in terms of profitability at local bourse due to strong regional demand and better margins in FY13, said the market analysts. Further boost to the profits of textile firms was provided by depreciating Pak rupee and cheaper financing, they said. "Due to these factor, profits of our sample listed textile firms increased by 150% to Rs30.6bn in FY13," said Muhammad Tahir Saeed of Topline Research. He said the same glory was also reflected at KSE as the shares of these listed textile firms showed abnormal price performance of 94% vs. benchmark KSE 100 index return of 49% in FY13. Favoring fortunes resulted into improved overall textile output in FY13 which can be gauged from 5.9% (14.7%) growth in textiles exports to $13.1bn (Rs1.3trn). The same is reflected from listed textile companies’ profits which increased by Rs18.3bn (150%) to Rs30.6bn in FY13 compared to Rs12.3bn last year. "Our analysis is based on selected textile firms (55 companies) including spinners, weavers and composites. Our sample includes all textile units having a minimum of Rs250mn market capitalization at KSE. However, for the sake of comparability, we have omitted the companies which have not yet announced their FY13 results and Azgard Nine due to its abnormal and volatile bottom-line. Though our sample covers 85% of textile sector market cap, it is very small compared to total Pakistan textile in-
dustry. So the actual profits of the textile industry would be much more than Rs30.6bn," said Saeed. The analyst believes that upward trajectory of profits was mainly attributed to higher volumetric sales and improved margins. Strong cotton yarn and grey cloth demand from China and its neighboring countries had contributed to higher units sales while margins increased due to stable cotton prices and 8% Pak rupee depreciation against US dollar. To recall, textile makers’ margins got a severe hit in FY12 due to sharp volatility in cotton prices. In FY13, local cotton prices remained stable at an average of Rs 6,540 per 40kg whereas in FY12 price range was Rs5,252-9,003 per 40kg which depicts high volatility. However, the analyst said, things were little different in 4QFY13 when profits of these firms decreased by 21% QoQ to Rs7.9bn. "For the decline, we believe, company specific issues (especially Amtex Limited) were the culprit this time. If we omit Amtex Limited from the sample, quarter-onquarter decline reduces to mere 5%," he said. In 4QFY13, Amtex Textile posted loss of Rs1.7bn compared to loss of Rs126mn in 3QFY13.
The All Pakistan Business Forum has said that the government has to make a long-term strategy to control import bill, as the demand of hundreds of millions of dollars for crude oil purchase is the major reason of free fall of rupee. “Major banks wanting to cover the oil import deal rush to open market for maximum buying of dollar, putting abnormal pressure on a local currency market. So, government has to find out alternative solutions of energy to minimize its dependence on import of oil- the main cause of dollar pressure on rupee,” APBF Chairman Nabeel Hashmi said. He stated that there is no short-term solution to control the rupee deprecation, because it remains under pressure when imports increase against exports. So, to ease pressure on rupee, the economic managers have to control widening gap of trade deficit by enhancing exports through providing incentives to industry, he added. The APBF chairman urged the government to stabilize US dollar at Rs.104 as basic fundamentals of economy are comfortable and not so bad. Nabeel Hashmi expressed the hope that exchange rate will be stabilised soon due to buoyant inflow of remittances by the overseas Pakistanis ahead of the Eidul Azha, supporting the rupee against the US dollar. However, he said that the continued capital outflows should also be curbed through implementation of anti-money laundering laws effectively by setting up monitoring and reporting about the foreign exchange transactions.
Major Losers Shezan Inter. SPOT 576.79 Shield Corp.SPOT 159.00 Millat Tractors XDXB 456.37 AL-Abbas Sugar 106.00 Tri-Pack Films 191.00
Volume Leaders Hub Power Co. P.T.C.L.A Telecard Limited B.O.Punjab Jah.Sidd. Co.
60.91 25.88 5.73 10.19 8.16
Interbank Rates USD GBP JPY EURO
PKR 106.1586 PKR 169.7263 PKR 1.0790 PKR 144.1315
Forex UK Pound Sterling Euro US Dollar Canadian Dollar Australian Dollar Japanese Yen Saudi Riyal UAE Dirham China Yuan
BUY
SELL
168.75 142.75 106.35 101.75 99.75 1.087 28.1 28.8 17.2
169 143 106.6 102 100 1.18 28.35 29.05 17.35
CORPORATE CORNER
KARACHI: Sindh Minister Rubina Qaimkhani presents a Sindhi traditional gift to Turkish Ambassador Sadik Babur Girgil who called on her on Friday. Pr
SkMch launches hides’ collection campaign LAHORE: Shaukat Khanum Memorial Cancer Hospital & Research Centre is going to launch its “Hide Collection” campaign this year as well on Eidul Azha. The hospital has planned to extend this campaign in 20 major cities of Pakistan this year, other than Lahore, including Karachi, Peshawar, Rawalpindi, Faisalabad and Multan where the Hospital have made the arrangements for Hide Collection. As per previous practice, a large number of volunteers and the Hospital staff is going to participate actively in this campaign. The Hospital management has also established a call-centre in the Hospital to entertain the telephone calls from the hide donors in this regard and the team of volunteers and the Hospital staff will collect hide from homes on a phone call as well. It may be recalled that the money collected from this campaign is spent on the treatment of poor cancer patients. 75% of the patients are being treated free of cost in this Hospital. The Hospital management has appealed to the people to donate the hide of their sacrificial animals to SKMCH&RC this year as well so that the mission to treat poor cancer patients could go on. PrESS rElEASE
young leaders conference (ylc) 2013 from Dec 26 LAHORE: School of Leadership’s (SoL) legacy comes around with its 12th edition to be held from 26 December, 2013 to 01 January, 2014 at the Dreamworld Resort in Karachi. Young Leaders Conference (YLC) 2013 is an event that Pakistan’s youth aspires to attend. With immense pride we call it Pakistan’s most sought-for event, where
thousands of aspirants endeavour to enrol amongst the fortunate few. The theme “KHALBALI” is about restlessness. Team YLC tends to bring out the creative spark in participants. To unlearn the learned, to explore the unexplored, we aspire to ignite the spark in youth that will enable them to see their future and have the courage to face it to achieve. YLC 2013 is being led by two champions; Saadi Makhdoom and Quratulain Awan and the conference will be supervised by School of Leadership with the superb support of the Board. More than fifty experts; renowned gurus and specialists will facilitate the diverse program. The 7days will be packed with activities revolving around the day themes, focusing on specific topics; culture, religion, science, environment, health, politics, entrepreneurship and much more. Various private and social sector organizations, such as Friedrich Naumann Stiftung, English Biscuits Manufacturer, GreenStar, Thal Engineering, Habib Oil Mills, Habib Metropolitan Bank, Fauji Fertilizer Company, Shamrock Communications and Atrium Mall are partnering with SoL in this initiative. PrESS rElEASE
energy revolution through hydrocarbon resources atc from Nov 26
ISLAMABAD: The Annual Technical Conference 2013 being jointly organized by the Society of Petroleum Engineers and Association of Pakistan Geoscientists (PAPG) will be held at Islamabad on November 26-27. The theme of conference is “Energy Revolution Through Hydrocarbon Resources”. Federal Minister for Petroleum and Natural Resources Shaid Khaqan Abbasi will inaugurate the conference and likely to deliver the key note address. The meeting of all CEOs and representatives of various companies was held in Islamabad. The objective of the meeting was to brief the participants about the arrangement of the conference. The Chairman of the conference Dr. M. Saeed Khan Jadoon briefed the participants about the conference programme. He expressed his gratitude to all the representatives of E&P companies and services providers for the financial and technical support for organizing the conference. It was explained to the participants that it is only premier event of Pakistan Petroleum Industry in
which professionals from E&P companies, Academia and Services Providers will present their technical papers, application of innovative technical and share experience. This forum will provide excellent opportunity to Academia to directly interact with industry and discuss the prevailing technical issues and problems. PrESS rElEASE
judges, to select participants for a second round of auditions. Farid Ahmad, Vice President Marketing Mobilink said, “Our support for ‘Pakistan Idol’ is a means of providing an avenue for Pakistan to show case its talent to the entire world. The introduction of the mobile auditions aims at building on the strengths of our nationwide coverage to increase the access of the show and to unearth talent from every corner of the country.” PrESS rElEASE
Mobilink Foundation food assistance reaches over Fanta rocks journey 7,000 affectees in awaraan climaxes with music LAHORE: Mobilink Foundation has reached out to video release over 7,000 earthquake affectees as part of the first phase of its relief operations in Awaraan, Balochistan. Mobilink Foundation collaborated with the Government of Baluchistan to distribute food assistance in various relief camps in the vicinity of Awaraan and surrounding areas. A combined task force of the Pakistan Navy, Pakistan Army, Sindh Police, Pakistan Rangers and Frontier Constabulary provided logistical support in order to ensure safe convoy for the relief items. Mobilink Foundation was the first from the corporate sector to mobilize relief for affectees. This initiative began with the delivery of water supplies in the week following the disaster. This has now been followed up with food supplies delivered to various relief camps in Awaraan and its surrounding facilities. Omar Manzur, Head of Corporate Communication, Mobilink highlighted, “The situation in Baluchistan is grave with the lack of shelter being compounded by a scarcity of food and water. As in the past, Mobilink Foundation and its Torchbearers have been the first to respond to Pakistan’s time of need, and we are preparing to reach out to even more affectees of the earthquake in the next few weeks.” PrESS rElEASE
Mobilink introduces mobile auditions to increase outreach of ‘Pakistan Idol’ LAHORE: Mobilink has introduced mobile based auditions for ‘Pakistan Idol’, offering an opportunity for millions of Pakistanis to become part of Pakistan’s largest music reality show. Mobilink is the exclusive cellular partner for ‘Pakistan Idol’, which is currently conducting nationwide auditions for the first edition of the show in Pakistan. Mobilink has increased the outreach of these auditions through the introduction of the mobile auditions that can be accessed from any part of the country. Participants will be able to record a 60 second audition, which will then be evaluated by a panel of
LAHORE: ‘Fanta Rocks’, the fun-filled music talent hunt that was launched earlier in the summer by Fanta, climaxed this week with the launch of the Fanta Rocks song, rendered beautifully by the winners of the talent hunt, singing together with iconic rock band, Noori. The music video of the song also features the 2 young winners of the talent hunt, Shaheer Naveed and Maria Fatima, who had emerged as winners from the talent hunt that extended to 200+ schools and reached out to an estimated 120,000+ schoolchildren between the ages of 12 and 17. The 2 winners first got the unique chance of composing the song together with Noori, and then shooting an exclusive music video with the band. During the process they were also given the opportunity of living the life of rock stars and interacting with the band all the way at the Fanta Rock Station. With the release of the funfilled and playful music video, Fanta has fulfilled the promise it made to all its followers. Following the release, the music video has immediately started gathering a strong fan following. Speaking about the Fanta Rocks initiative, Rizwan U. Khan, General Manager, The Coca-Cola Export Corporation, Pakistan & Afghanistan stated, “Fanta has a strong association with teenagers and this initiative is our way of giving young consumers an opportunity to participate in an exciting and competitive activity that succeeded in bringing out their hidden talent”. PrESS rElEASE