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BUSINESS Tuesday, 13 August, 2013

aziz appointed senior adviser for tsG

Govt to back aPcNGa LNG imPort PLaN: abbasi Minister assures CnG assoCiation of resolution of all outstandinG issues ISLAMABAD

P

KARACHI: Majyd Aziz, former president of the Karachi Chamber of Commerce and Industry, has been appointed as senior advisor for Pakistan for the Transnational Strategy Group LLC (TSG) based in Washington. He is one of 18 distinguished advisers from all over the world. TSG is a commercial, economic/political and policy consultancy providing services to private sector and sovereign government clients. TSG assists its clients with a fully integrated and networked array of services to expand business and attain government goals. Dana Marshall, president of TSG, said he was very pleased that Aziz, a prominent business leader actively involved in Pakistan’s global commercial activities as well as contributing to the development of his government’s business and related policy issues, has been chosen to lead TSG’s efforts in Pakistan. Marshall noted that the contributions of Aziz have been recognized internationally and that Aziz offers extensive experience, relationships and a successful track record in many commercial and government projects. Mr. Aziz will enable investors and organistions worldwide to develop strong business relationships with Pakistani firms, support Pakistani firms in expanding their business operations, and assist the Pakistani government to reach policy goals with the US and other countries. STAFF REPORT

Discount rate to be raised to get imF’s $6.6b bailout package

ISLAMABAD: The government has decided to raise the discount rate between 100 to 150 points to get $6.6 billion bailout package from the IMF. Sources in the Ministry of Finance said this is one of the conditionalities set by the IMF for the bailout package. The State Bank would increase the discount rate in the next monetary policy. They said another condition of increase in the tariff of electricity has already been met with increase in power rates for industrial users from first of August and for domestic consumers from first of October. The government has also assured the IMF to bring into tax net to 50,000 people by 30th September who own luxury vehicles and bunglows and frequently travel abroad. Their record is already available with the FBR. Sources said that in the light of these actions, the government has received a green signal that the package has been increased from $ 5.3 billion to $ 6.6 billion. Reports said that US Secretary of State John Kerry also played a key role in enhancing the package by the IMF and in return Pakistan gave some assurances to the United States. INP

ONLINE

ETROLEuM Minister Shahid Khaqan Abbasi on Monday said the government would extend all possible help to All Pakistan CNG Association (APCNGA) to realise its plan to import LNG which will mitigate energy crisis. He said the government would seriously consider allocation of gas quota to CNG stations, reduce gas load shedding in Sindh and Pun jab, stop theft and misuse of natural gas, hiring third party to reduce complaints of overbilling, and bringing an end to practice of double taxation. Abbasi said this while meeting a delegation led by Ghayas Paracha, chairman Supreme Council APCNGA and central chairman Abid Hayat. The

APCNGA regional chairmen hailing from all provinces were also present. The minister asked the delegation for implementable suggestions for a new gas load management schedule and assured resolution of all just demands of the CNG sector. He said that gas is being sold at highest prices to the CNG sector which is paying highest taxes which the government will consider reducing. Earlier, Paracha briefed the meeting about problem faced by the CNG sector, issues regarding gas load shedding in Sindh and Punjab, issues with OGRA and gas companies and matters pertaining to taxation. He said that some influential get gas connection for one purpose and use it for another which if barred would reduce gas crisis by 25 per cent. The leader of the CNG sector said that allocating gas quota to the CNG filling stations across the stretch of country will reduce losses of operators and save masses from waiting for hours in queues. The minister heard all the demands of CNG association patiently and assured resolution of all the outstanding issues of the CNG sector.

No immediate plan to grant india mFN status: Dar ISLAMABAD: Finance Minister Ishaq Dar on Monday said there was no immediate recommendation being considered to grant India the status of most favoured nation (MFN). Speaking in a TV talk show, Dar said there was a need to normalise relations with India on a number of issues. “There is no immediate consideration to grant India MFN status.” Relations between the two South Asian neighbours have been strained after India accused the Pakistan army of killing five soldiers at the Line of Control (LoC). The accusation was rejected by Pakistan. Over the last few days, India has repeatedly violated the ceasefire agreement with Pakistan by opening unprovoked fire and several different sectors along the LoC. Pakistan has expressed concern over these violations by summoning the Indian Deputy High Commissioner to Pakistan to the Foreign Office. INP

SBP may keep policy rate intact despite high inflation KARACHI STAFF REPORT

The Pakistan Bureau of Statistics (PBS) has recently released the figures of Consumer Price Index (CPI) for July13. The CPI for this month was recorded at 8.26 percent YoY, signalling towards rising trend, however, the economic observers believe the State Bank of Pakistan is expected to leave the current 9 percent discount rate (DR) intact until the reveal of inflation in upcoming months. The CPI inflation for July 13, surp r i s i n g l y,

came out to be well above the market consensus of 8 percent YoY and was recorded at 8.26 percent YoY, up by 2.02 percent MoM as compared to 9.6 percent in July 12. The core inflation measured by non-food non-energy CPI (Core NFNE) reached at 8.2 percent during July 13 in comparison with 11.4 percent during Jul-12. On monthly basis, the baseline inflation crept up by 2.02 percent in Jul13 against 0.72 percent a month earlier. The major upsurge was witnessed in food and non-alcoholic beverages (34.83 percent weight), housing, water, electricity, gas and fuels (29.40 perc e n t

weight) and transport (7.20 percent weight) groups due to monthly increase in prices of tomatoes by 79.8 percent, potatoes by 24.9 percent, fresh fruit by 13.6 percent, wheat by 3.5 percent and wheat flour by 2.42 percent. Meanwhile, in non-foods items, cigarettes by 11.9 percent, footware by 6.3 percent, tailoring by 3.72 percent and house rent by 2.54 percent on monthly basis. "Therefore, a rising trend on monthly basis was observed in the CPI during Jul-13," said Abdul Azeem of InvestCap Research. The analyst expects that a normalized CPI post August-13 should determine any change in the monetary policy, as during July 13 high inflation was seen due to rising GST and Ramadan effect. "Therefore, we foresee the discount rate to remain unchanged in the upcoming monetary policy decision," said he. However, the analyst said, upcoming negotiation with the International Monetary Fund could influence the stance of monetary policy towards tightening.

saad orders enquiry into railway land ISLAMABAD: Federal Minister for Railways Khawaja Saad Rafique has directed Pakistan Railways to form an inquiry committee which will investigate all related matters of Railways estate development and marketing company (Radamco) and it will present the report after sixty (60) days. More so the name of Managing Director RADEMCO, Rizwan Bhatti has been included on Exit Control List. According to the spokesperson of PR, the committee is being presided by financial advisor and chief accounting officer while other members of committee include chief marketing manager and DG operations, the Railways Ministry. Radamco was dealing with non core business of Pakistan Railways that includes, Development of lands, business of advertisements and hoardings, and matters relating to franchises. Radamco is a subsidiary of Pakistan Railways. INP

HP seizes thousands of counterfeit products KARACHI STAFF REPORT

The Multinational Company Hewlett Packard (HP) has claimed to have seized over 36,000 counterfeit supplies during raids conducted by the police teams in Lahore. According to a statement issued by the company on Monday, the authorities seized 25 counterfeit ink cartridges, 190 counterfeit toner cartridges and 36,265 various components used to make counterfeit HP cartridges. 1 individual was arrested and will be subject to criminal prosecution. HP collaborated with local law enforcement to make this action possible. HP vigorously defends its brand and intellectual property for Original HP supplies by engaging in industry-leading anticounterfeiting practices to combat the fraudulent manufacture, distribution and sale of counterfeit HP supplies products. Through our anti-counterfeiting efforts, HP is determined to protect our customers and our brand, said David Llamas, Global

Brand Protection and Anti-Counterfeit Manager, Printing and Personal Systems, HP. “Our commitment to our customers is the driving force behind the vigilance of our anticounterfeit team, as we understand how the sale of counterfeit HP products negatively impacts our customers and the HP brand. With counterfeit HP print cartridges, customers purchase what they often assume to be a genuine HP product, but they instead receive a cartridge that provides them with inferior print quality at best and often times a cartridge that fails to perform at all”. A counterfeit product is a product which has been made to look identical to or substantially indistinguishable from the genuine or original product, usually for the purpose of deceiving customers. Counterfeiting of printing supplies usually involves the illegal printing of HPbranded boxes, labels and security seals. Often refilled cartridges containing inferior inks and toners are used and inserted into this packaging that closely

resembles genuine HP packaging. The counterfeit cartridges are ultimately purchased by customers who believe them to be genuine. The diligence of the HP anticounterfeiting program in the Asia Pacific region has resulted in law enforcement agencies successfully confiscating more than 25 million units of counterfeit cartridges and components in the last 4 years. On a global level, HP maintains an aggressive approach to anti-counterfeiting and has conducted more than 4600 investigations in 88 countries over the last 4 years. This activity has resulted in the

seizure of more than 36 million units of counterfeit printing cartridges and components worldwide over the same period. As part of its global anti-counterfeiting program, HP takes a proactive approach to alerting and educating customers on how to identify counterfeit printing supplies. HP also incorporates state-of-the-art technology in their products and cartridge packaging to help customers identify fraudulent supplies. All HP cartridge packaging in the Asia Pacific region displays a security seal with color shifting technology that helps customers easily identify Original HP supplies.


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02

BUSINESS B Tuesday, 13 August, 2013

risiNG GoLD Prices threateN

Major Gainers ComPany Wyeth pak ltd rafhan Maize siemens pakistan shezan inter. sanofi-aventis

saudi factories with closure Gold priCes deCline by 0.2 perCent JEDDAH

t

NNI

HE rising prices of gold during the past two weeks caused stagnation in the Saudi market, and pushed gold merchants to activate sales because factories didn’t halt their production, according to the National Committee for Precious Metals. The price of the precious metal has registered the second weekly decline, while the dollar has recovered from its lowest value since seven weeks ago. Speculation about the uS Federal Reserve to reduce the bonds purchase programme with a value of $85 billion a month was triggered by the low price of gold, which reached its lowest levels this week. “Gold merchants didn’t lose because of the declining world prices, because most of them deal with gold as physical balance, and most merchants have sufficient gold accounts,” said Ahmad Al-Sharif, member of the National Committee for Precious Metals.

Gold prices declined by 0.2 percent, to $1,308 per ounce, and the market is about to close at 0.25 percent. Delayed uS gold contracts, which will be delivered in December declined by $2, to $1,307.90 per ounce. Silver prices stabilized at $20.19 per ounce, while platinum gained 0.1 percent to $1,488 per ounce. Palladium rose 0.1 percent to $736.97 per ounce. Meanwhile, the National Committee for Precious Metals is attempting to ferret out illegal gold sellers, which had controlled as much as onequarter of the gold market. “Workshops have been organised, which held unknown names in the gold trade, or operated from places that didn’t have defined headquarters contained products with ambiguous origins were combated,” said Al-Sharif. “We are working on a mechanism to combat violating workshops, and educate consumers and merchants who deal with such workshops. We advise merchants, and gold market clients to buy gold from approved individuals.”

BlackBerry says it’s open to sale TORONTO AGENCIES

Canadian smartphone maker BlackBerry, struggling to compete in a difficult market, has set up a committee to look at options, including joint ventures, partnerships or a sale of the company. In a statement released before the market opened on Monday, the company said board member Timothy Dattels, an investment banker and former Goldman Sachs executive, will chair the new committee, which will also include Blackberry Chief Executive Thorsten Heins. “Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives,” Dattels said in a statement. BlackBerry pioneered on-your-hip email with its first smart phones and email pagers. But it has struggled to compete against the likes of Apple Inc and phones using Google Inc’s Android operating system, and its new BlackBerry 10 smartphones have failed to gain traction. Reuters last week quoted sources familiar with the situation as saying BlackBerry was considering going private to give it some breathing

room as it works through its turnaround. BlackBerry shares rose 9.4 percent in premarket trading. “While a change in structure could result in a higher stock price in the near term, we do not envision any changes that would help BlackBerry reverse the significant smartphone share loss or rapid decline in service revenues,” said Tim Long, an analyst at BMO Capital markets. Heins said he was pleased with the progress that has been made and still sees compelling long-term opportunities for the BlackBerry 10. He said the company will continue a cost-cutting drive that has already shrunk the company considerably. Dattels is a senior partner at private equity firm TPG Capital and a former top investment banker at Goldman Sachs. His appointment to BlackBerry’s board last year sparked a flurry of speculation that the company might consider a leveraged buyout or going private. Dattels’ nomination to the board came in June 2012, shortly after BlackBerry hired JPMorgan and RBC Capital Markets to help it evaluate strategies, including a possible overhaul of its business model, as well as other moves like expanding the BlackBerry platform through partnerships and licensing deals.

He pointed to the existence of “workshops alien to the market” that had a large share before prices rose, which control 25 percent of the market, Arab News reported Monday. “After the rising prices a large number of these workshops sold their stocks and changed their activities because they were illegal dealers,” he said. “After strict controls and the correction of labor status these violating workshops will be eliminated, because most of them are illegal workers who practice their business in un licensed areas.” “At the present time, and because of the strict control of the Passport Department and the Ministry of Labor, these workshops have 10 percent of the market share,” he said.

oPen 2224.27 5125.00 1016.40 623.90 614.99

HigH 2335.48 5199.95 1067.22 655.00 644.97

Low 2322.00 5199.95 1026.00 640.00 610.00

CLoSe CHange 2335.48 111.21 5199.95 74.95 1067.22 50.82 655.00 31.10 643.99 29.00

Turnover 1,460 20 16,250 200 1,000

6480.00 374.38 350.00 1900.00 209.00

6250.00 355.67 342.00 1900.00 209.00

6250.00 355.67 343.50 1900.00 209.00

-50.00 -18.71 -16.50 -11.00 -10.50

120 2,000 4,500 20 500

14.67 15.95 58.65 27.68 2.82

13.47 14.85 56.50 26.60 2.58

14.62 15.95 57.09 27.09 2.67

0.94 1.00 -0.24 0.23 -0.03

52,329,000 23,721,500 17,308,500 11,077,000 9,843,000

Major Losers nestle pak. Gillette pak exide (paK) XdXb Colgate palmolive sunrays textile

6300.00 374.38 360.00 1911.00 219.50

Volume Leaders b.o.punjab fauji Cement national bank. p.t.C.l.a Xd nib bank limited

13.68 14.95 57.33 26.86 2.70

Interbank Rates usd Gbp Jpy euro

pKr 102.6785 pKr 158.9257 pKr 1.0608 pKr 136.4802

Forex

PtcL files review petition against sc decision ISLAMABAD: The PTCL has filed review petition in Supreme Court against apex court decision in connection with audit of its accounts by auditor general of Pakistan (AGP). The petition has been filed through advocate on record Mahmood A Sheikh. It was taken the plea in the petition that PTCL does not receive any amount from the government. “We audit our accounts at our own level as we have in place a complete system of our own. It is not binding on us to get audit our record from AGP”, petition said. SC was requested to review its decision. ONLINE

FPcci calls to hand over sindh to army KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded that the government hand over Sindh to the army for 4 to 6 weeks. In a statement issued on Monday, the FPCCI said increasing incidents of kidnapping for ransom and killings during Ramadan added to the prevailing sense of insecurity among the business community. The FPCCI demanded of the Sindh and federal government to hand over the province to Army for four to six weeks for the sake of restoration of law and order. ONLINE

uK pound sterling euro us dollar Canadian dollar australian dollar China yuan Japanese yen saudi riyal u.a.e dirham

Buy

SeLL

157.8 136 103 99.3 93 16.25 1.044 27.1 27.7

158.05 136.25 103.25 99.55 93.25 16.5 1.065 27.35 27.95

aPtma criticises increase in power tariff KARACHI: APTMA spokesman strongly criticises announcement of increase in electricity prices up to 70 percent by the Government and urged to withdraw the rise in electricity tariff. He said that it is understandable if the tariff is raised by about 10 percent to 15 percent but not such a drastic increase of 70 percent. APTMA spokesman said that the recent hike in electricity tariff would make textile export costlier and render Pakistani textile exports uncompetitive in the international market. Subsequently, India, China and Bangladesh would capture markets presently dominated by Pakistani exporters. This increase will mostly benefit Indian textile industry at the cost of Pakistani textile industry as their products would become more attractive in the international market. He suggested the government that before making any dramatic changes in the electricity prices, the stakeholders of the industry should have been taken into confidence and engaged to work out the electricity tariff. APTMA spokesman said that the government is not in a position to provide uninterrupted power and gas supply to the industry due to which industry is facing increase in cost as a result of less than capacity output and now such a hefty tariff increase cannot be justified. He said that since the country is passing through an era of economic uncertainty persistent inflation, high cost of doing business as a result of which industry is facing severe challenges such as war on terror and insecurity etc. such cost increases could lead to decrease in export earnings and escalating trade deficit. NNI

CORPORATE CORNER artezia: the Next big brand

Anoushey Ashraf hosted the Red Carpet followed by a Fashion Presentation by renowned Models in Artezian Outfits. Make Up and Styling was done by Maria Saleem (Maria’s Salon and Institute). Anoushey wore the light blue Artezian, which she found the best among all. Mrs. Karim, a walk in customer said, " the collection offered by Artezia is class apart, there outfits are unique and can be worn at any occasion". PRESS RELEASE

intuitive user experience. “Our definition of innovation today is technology that truly resonates with consumers,” said Dr. Jong-seok Park, president and CEO of LG Electronics Mobile Communications Company who welcomed the guests to the event. “We have always listened to and learned from consumers in pursuit of innovation. We took this research to new heights in developing LG G2, the most exciting and ambitious phone in our company’s history.” PRESS RELEASE

LG G2 introduces new direction in smartphone design

KARACHI: Artezia, a new addition to the fashion industry launched itself to the fashion lovers on 31 of July. The brand represents a fast fashion and lifestyle brand that embodies the Artezian ethos of beauty and glamour for the modern woman of today. Artezia launched its signature collection at The Forum, a well known mall located at the heart of Karachi. The event was attended by celebrities, guests and media personnel. Artezia also came up with the pop-up Store idea (temporary store at a mall) which is unique and effective in various ways. Shoppers are loving the concept as Eid is just few days away and they are also hoping that Artezia will come up with more Creative concepts in the coming months and years. Famous Anchor/VJ

KARACHI: LG Electronics (LG) today unveiled its latest flagship smartphone LG G2, the first smartphone introduced under LG’s new “G” Series for premium devices. Nearly 700 guests from over 30 countries converged at the renowned Frederick P. Rose Hall, Home of Jazz at Lincoln Center in New York for the global introduction of the device. The LG G2 exemplifies LG’s aim to bring forth more customer-centric innovations. Based on LG’s research of consumer lifestyle and beha-viors, the smartphone offers users more reallife benefits such as ergonomic design, practical functions and an

LAHORE: Ufone has chosen SOS village Lahore as the winner of its ‘Ufone-Friends of the Environment’ competition. The winning SOS village won a completely equipped gymnasium as a prize. Picture shows Akbar Khan, CMO, Ufone unveiling the plaque of gymnasium along with Director SOS village Almas Butt and Chairperson SOS Schools Rubina Ali. PR

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