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BUSINESS Wedesday, 14 August, 2013
pak-india trade impacted over loc tension
ISLAMABAD: Trade of fruits and vegetables between Pakistan and India has been impacted as the tension between the two South Asian neighbours over the Line of Control (LoC) is escalating with every passing day. Trade between the two countries has completely stopped at the Chakoti border. On Monday, India violated the ceasefire at the LoC on three occasions by opening unprovoked fire. The deputy high commissioner to Pakistan was summoned to the foreign office where he was informed about the Islamabad’s concern over the repeated ceasefire violations. The situation between Pakistan and India remained tense after New Delhi accused the Pakistan army of killing five Indian soldiers at the LoC, an allegation which was strongly denied by Islamabad. ONlINE
The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those which fail. — Napoleon Hill
$1.4b remittances in July keep bailing pakistan out KARACHI
HE Pakistanis working abroad remitted over $1.404 billion during the first month (July 2013) of the current fiscal year, FY14. The State Bank of Pakistan reports on Tuesday showed an “impressive” growth of 16.57 percent or $199.68 million compared with $1.204 billion the dollar-hungry country received during the same month of last fiscal year, FY13. The remittances received from most of the countries showed growth, said the central bank. The month under review saw inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounting, respectively, to $410.73 million, $252.41 million, $233.06 million, $221.93 million, $161.44 million and $38.59 million. Last year in July, the overseas Pakistan had remitted $349.66 million, $240.54 million, $215.30 million, $148.49 million, $140.36 million and $30.83 million from the above destinations. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries were counted at $86.23 million as against $79.53million received in the same month of FY13.
The central bank tends to attribute the ongoing upward trend in worker remittances to the government’s efforts to channelise the inflow of foreign exchange through legal channels, mostly the banks. It may be recalled that in order to provide an ownership structure in Pakistan for remittance facilitation, the government of Pakistan through the State Bank and the ministries of overseas Pakistanis and finance had launched a joint initiative called Pakistan Remittance Initiative (PRI) in April 2009, said the SBP. “This initiative has been taken to achieve the objective of facilitating and supporting faster, cheaper, convenient and efficient flow of remittances,” the State Bank said. The SBP, the banking regulator, backed by the federal govt,
has long been striving to curb the menaces of “hundi” and “hawala” that ensures the inflows of remittances through undocumented routes. As the cashstrapped government is desperately looking for ways and means to expand the country’s narrowed tax base, some economic observers propose that the workers’ remittances be documented and taxed to get additional revenues. If brought into the tax net, the sending of worker remittances by the Pakistani workers abroad would fetch a handsome amount to the national kitty as billions of dollars are remitted annually. The last fiscal witnessed the dollar-starved country receiving record remittances that were counted in excess of $ 13 billion. Negatives like poor foreign investment, excessive IMF repayments and an unfavourable balance of payment are currently testing the nerves of economic managers who are running from pillar to post to persuade the international donors and lenders to doll out at least $11 billion to Pakistan to avert any possible default on its international financial obligations. The country’s liquid foreign reserves have already contracted to an alarming level of $ 10.230 billion by August 2, said the State Bank. Of this total the central bank holds only $ 5.142 billion. The commercial banks possess $ 5.088 billion.
China set to surpass US as top oil importer LONDON AGENCIES
The rapid redrawing of the world’s energy map is about to hit another milestone with China overtaking the US as the biggest importer of oil. The Energy Information Agency expects China’s monthly net oil imports to exceed those of the US by October, and by next year on an annual basis. “The imminent emergence of China as the world’s largest net oil importer has been driven by steady growth in Chinese demand, increased oil production in the United States, and a flat level of demand for oil in the US market,” the EIA said in its latest outlook. A boom in the US oil production is being driven by new technologies such as hydraulic fracturing or fracking which are opening up huge reserves for development.
The Paris-based International Energy Agency has forecast that the US could become energy independent by 2030, and the world’s biggest producer seven years from
now. The US oil boom is boosting the nation’s level of reserves, reshaping global oil trade flows and driving up demand and salaries for experienced engineers.
While China’s breathtaking pace of economic expansion has slowed, its demand for oil to fuel a massive manufacturing sector is set to continue growing at a much faster pace than it can ramp up its own production. China demand for liquid fuels will have grown by 13 percent between 2011 and 2014 to more than 11 million barrels per day, while its production will increase by just 6 percent, according to the US EIA. Over the same period, US total annual oil production will have risen by 28 percent to nearly 13 million barrels per day, as demand hovers around 18.7 million, well below the 2005 peak of 20.8 million, the EIA said. China will open up an even bigger gap in terms of net imports beyond 2014, it said. The EIA report is based on a broad measure of net oil imports, including crude oil, condensates, natural gas liquids, biofuels and other liquids.
Farming fruit on modern techniques! Harvest tradings CHief exeCutive urges govt to replaCe fruits produCtion in BaloCHistan from traditional to latest sCientifiC metHods
Officer Harvest Tradings Chief Executive Ahmad Jawad said Balochistan produces nearly one million ton of fruits annually with 90 per cent of grapes, cherry, almonds; 60 per cent of peach, pomegranate, apricot; 34 per cent of apples, and 403,584 ton dates. Talking to Quetta Women Chamber of Commerce Founder President Fehmida Jamali, Jawad said Balochistan had tremendous potential for developing fruit farms. He said serious efforts should be made towards bringing about a shift from traditional to technology-based farming as various studies reveal that a large quantity of fruits was lost due to various reasons beginning from their production points till they reach the costumer. On the occasion, Fehmida Jamali said that local farmers were faced with a plethora of problems from planting to the marketing of their products as they lack essential facilities and infrastructure to market their products and earn profits. Moreover, the absence of cold storages and air-conditioned transportation facilities for fruits like grapes also increase the risks of damage to fruits. Soil test also needs to be conducted on regular basis at the time of planting a fruit crop. For instance, planting season for apple crop in Northern Balochistan commences from February 15 to March 15. There is also a need to ensure supply of fertilisers to the fruit growers at subsidised rates.” “What is direly needed is to enable the farmers to sell their produce directly eliminating the role of middlemen in the marketing channel,” Jawad said. Jawad further suggested that the government should provide relief to the local growers; All efforts were needed to be directed for bringing about a shift from traditional to a technology-based farming system, he added. Fehmida Jamali requested the government that they should extend credit to small farmers especially women for horticulture and empowering the women development sector as lack of finance does not enable the cash-starved small farmers to harvest and market their fruit crop.
PTA seizes 89 exchanges in 2013 ISLAMABAD APP
The Pakistan Telecommunication Authority (PTA) with the help of the Federal Investigative Agency (FIA) confiscated 89 exchanges and arrested 21 persons in 22 raids conducted across Pakistan in 2013. According to a report released by the PTA, this year till May, the authority conducted four raids in Islamabad during which it confiscated eight exchanges and arrested three persons. From the period from June to August 2013, the PTA conducted 18 raids, confiscated 81 exchanges and arrested 18 persons across Pakistan. In Karachi, five raids were carried out, 43 exchanges were confiscated and 18 persons were arrested. Two raids were made in Multan, one in Islamabad and four raids were conducted in Rawalpindi. Some 24 exchanges were seized and four persons were arrested. One raid was conducted in Peshawar, three raids were conducted in Sargodha and nine exchanges were confiscated. In Sahiwal, one raid was conducted which resulted in confiscation of one exchange and arrest of a person while in Lahore one raid was conducted, four exchanges were seized and one person was arrested. The ministry of information technology and telecommunications issued a policy directive on Au-
gust, 13, 2012, for establishment of International Clearing House (ICH) Exchange for international incoming calls for Long Distance International, FixedLine Local Loop, Wireless Local Loop and Mobile Operators. The FIA director general constituted a committee and requested for coordination from the PTA to curb menace of grey traffic. Accordingly, a separate committee has been constituted in May 2013, comprising of officers from the PTA and the FIA with a scope of investigation and detections of illegal setups, planning of raid actions and follow-up of the cases. It was decided that the meeting of the committee will be held twice in a month. In general, the grey traffic can be defined as “the use of illegal gateway exchanges to bypass the legal gateways and terminate/originate international traffic, through VoIP gateways to avoid applicable taxes and/or regulatory fee”. According to Deregulation Policy 2003, net incoming international traffic generates a financial premium over the cost of conveying and terminating the traffic into Pakistan, called “Approved Settlement Rate” (“ASR”). The ASR has two portions - “Access Promotion Contribution” (“APC”) used for infrastructure development which is deposited in Universal Service Fund (USF) and Long Distance International (LDI) Operator’s share. To curb the menace of grey traffic, the PTA has taken effective measures as per its
mandate including both technical and regulatory measures. Regulatory measure include rationalisation of the ASR and the PTA as per provision of de-regulation policy reviews the ASR rate at which operators obtain traffic from foreign carriers. Technical measure includes monitoring of international traffic and the PTA deployed a technical system for monitoring and reconciliation of international telephone traffic with the funding of LDI operators. The system became functional in May 2008. The aim was to monitor all international traffic being terminated into Pakistan. Currently the system is only monitoring 6 percent of the total bandwidth and its capacity is decreasing on daily basis.
With the issuance of International Clearing House (ICH) Policy Directive by the ministry of IT & Telecom, a new system has been purchased and the same has yet to be installed in the ministry of IT & Telecom. The reports of setups with irregular traffic patterns achieved through system and analysis of heavy callers’ data were shared with the FIA for raid action. A total of 88 joint raids with the FIA have been carried so far across the country since 2009. Some 78 persons including six foreigners were apprehended during the raids beside confiscation of a total of 591 illegal gateway equipment. Mobile numbers involved in illegal call termination (Grey Traffic) are being identified by law enforcement agencies and Vigilance Directorate PTA.
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Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best. — Theodore Isaac Rubin
icci lauds govt’s initiative For peace ISLAMABAD
HE Islamabad Chamber of Commerce and Industry has welcomed the government’s initiative to devise a first of its kind multilayer comprehensive national security policy and termed it a positive measure as it would grapple complex security landscapes and unprecedented challenges to peace and stability. Talking to businessmen, Islamabad Chamber of Commerce and Industry President Zafar Bakhtawari said the new policy should address all security challenges that the country was facing since 9/11. He said no such security policy would be effective to achieve the target of peace and stability unless drastic change was brought in it. Since no comprehensive security plan had been put in place despite heavy toll exacted by terrorism and vulnerable state of law and order in the country, it would be a rational approach of the government for bringing economic stability, he added. Since independence, he said, Pakistan had been facing many internal and external security challenges for its national security and Pakistan always played a frontline role to counter terrorism. Now it had become imperative to design and seriously implement security policy for economic development of the country which had suffered a lot due to terrorism and unemployment which was root cause of promoting alarming criminal activi-
( SECURITY POLICY FOR ECONOMIC DEVELOPMENT
ties within the country, he added. The ICCI president said that rising security threats were badly damaging business activities and discouraging investment, therefore, the government should take measures to curb this trend. He said Pakistan security situation had greatly affected their economic growth which had slowed to 2.9 pc per annum and investment was down to 50 years low at 12.5 percent of GDP. Moreover, foreign direct investment simply collapsed from $7billion to $1 billion in the last 10 years. Similarly, export was still stagnant at $24 billion for the last two years, so proactive measures should be taken to resolve these economic issues, he added. He appreciated the determination of government to bring peace for economic stability at all costs and was of the view that this five-layer approach of national security policy would help design dismantling, containing, preventing, educating and reintegrating all dimensions of security problems at all levels. Therefore, the government should consider inter-state as well as its intra-state security issues, he added. He proposed that Pakistan should follow China’s backburner security model in Hong Kong and Mahathir Mohamad’s security policy in Malaysia, and many other countries like USA and Russia security strategic models to tackle law and order situations, energy and natural resources security issues for economic revival of the country.
‘Hike in power tariff will badly shake industry’ KARACHI NNI
SITE Association of Industry Chairman Dr Arshad A Vohra has taken a strong exception to the recent increase in electricity tariff for industrial, commercial and bulk consumers of all distribution companies including the Karachi Electric Supply Company Limited (KESCL) with immediate effect. He said the power tariff hike would increase the cost of doing business and render the country’s exports uncompetitive in world markets and resultantly the countries with less production cost would capture global markets presently dominated by Pakistani exporters. This increase will mostly benefit textile industries of other countries at the cost of Pakistani industry as their products would become more attractive in the world market. He further said the government should have taken all the stakeholders on board and understand the difficulties of increase in electricity rates before making any drastic changes in the electricity tariff, the one sided decision will result in massive loss to trade and industry and country’s exports. The government is not in a position to provide uninterrupted power and gas supply to the industry due to which industry was faced with higher cost on operating below the capacity. The decision of hefty increase in power tariff is bound to damage the manufacturing sector and exports, he lamented.
BUSINESS B Wedesday, 14 August, 2013
Major Gainers COMPANY Wyeth pak ltd nestle pak. siemens pakistan indus dyeing philip morris pak.
OPEN 2335.48 6250.00 1067.22 659.00 299.25
HIGH 2452.25 6500.00 1120.58 674.00 314.21
LOW 2435.00 6360.00 1120.58 674.00 290.00
CLOSE CHANGE 2452.25 116.77 6360.00 110.00 1120.58 53.36 674.00 15.00 314.21 14.96
TURNOVER 560 320 1,950 100 25,600
400.01 672.95 337.89 574.90 193.70
391.00 625.00 337.89 558.00 193.70
391.00 625.00 337.89 558.99 193.70
-19.00 -18.99 -17.78 -12.55 -10.18
2,200 400 100 10,650 500
14.78 16.50 13.15 27.39 5.13
14.15 15.50 12.40 26.10 4.18
14.49 15.74 12.89 26.47 5.03
-0.13 -0.21 0.60 0.37 0.90
31,544,000 19,426,500 16,202,000 11,682,000 10,717,000
Major Losers fazal textile sanofi-aventis gillette pak millat tractors Zil limited
410.00 643.99 355.67 571.54 203.88
Volume Leaders B.o.punjab fauji Cement Jah.sidd. Co. sui south gas Js Bank ltd
14.62 15.95 12.29 26.10 4.13
Interbank Rates usd gBp JpY euro
pKr 102.6533 pKr 158.7943 pKr 1.0482 pKr 136.6315
Forex uK pound sterling euro us dollar Canadian dollar australian dollar China Yuan Japanese Yen saudi riyal uae dirham
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
CORPORATE CORNER ptcl rewards customers with 50% off on monthly charges of evo products ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) is rewarding its EVO customers by offering them massive savings of 50 % on monthly charges of its EVO USB and EVO Wingle devices. Applicable on EVO USB and EVO Wingle Unlimited packages purchased between 9th and 16th August 2013, the ‘Happy Week’ offer enables customers to enjoy lifetime discount of 50% on monthly charges. Whether casual Internet surfing, live streaming or an HD movie download, EVO prepaid and postpaid packages are designed to suit every customer’s lifestyle and offers absolute freedom of connectivity. Omer Khalid, PTCL Executive Vice President (EVP) Wireless Services commented at this offer “Through constant innovation, wide range of products and the most economical packages, PTCL EVO has become one of the most powerful brands in Pakistan”. “This special offer rewards our valued customers and appreciates their support in making PTCL EVO the most popular wireless internet brand in the country”, added Omer Khalid. During the ‘Happy Week’, customers can avail the EVO Max 3.1 device for only Rs 1,050 per month, while Wingle unlimited is available for only Rs 1,250. PrESS rElEASE
Foundation joined hands to provide scholarships to 40 deserving students. In a ceremony held at Standard Chartered Head office, Karachi, the Bank committed to cover training costs for 40 students to acquire Diploma from City and Guilds UK. The support is extended to students of Hunar Foundation enrolled in July 2013 and to be graduated in June 2014. These scholarships are aimed to provide to students, internationally recognised technical qualifications that open new horizons. Technical education helps encourage entrepreneurship and self reliance; traits which are vital for sustainability. Commenting on this ceremony, Mohsin A. Nathani, Chief Executive, Standard Chartered Pakistan said, “The Bank believes in the power of education to change lives for the better. Vocational training helps young people get employment and become positive contributors to their families and the society at large. We are happy to be partnering with Hunar Foundation to educate talented students in an effort to produce a stream of valuable human resources for Pakistan”. PrESS rElEASE
emirates announces fifth route to pakistan
standard chartered joins hands with Hunar Foundation to provide vocational training
KARACHI: Standard Chartered remains consistent to its long term commitment to the country by contributing to the real economy, promoting sustainable finance and leading the way in the communities. Standard Chartered, the oldest and largest international bank in Pakistan and Hunar
KARACHI: Emirates, one of the world’s fastest growing airlines, today announced it is to launch services to Sialkot, its fifth route to Pakistan. The service will commence from 5th November 2013 with four weekly flights operated by an Airbus A330-200 aircraft in a two-class configuration 54 seats in Business Class and 183 in Economy Class. The aircraft can carry up to 17 tonnes of cargo, giving a boost to trade opportunities. Sialkot is the capital of Sialkot District located in the north-east of the Punjab province in Pakistan. Situated around 125 kilometres north of Lahore, it provides customers with a convenient alternative gateway to the Export Triangle of Pakistan – the area encompassing Gujrat, Sialkot and Gujranwala. The area is famous for producing and exporting sports goods and clothing, gloves, surgical instruments, cutlery, ceramics and leather garments, whilst imports to the region
LAHORE: Huawei Pakistan Director Bruce during a visit to Xinhua Mall. Pr focus on the supply of raw materials for manufacturing those products. “Pakistan was the first country on our route network when we launched services to Karachi in 1985”, said Barry Brown, Emirates’ Divisional Senior Vice President Commercial Operations East. “With the addition of this fifth destination the airline will operate 63 flights a week between Dubai and Pakistan. Twenty eight years since our first flight, this new service to Sialkot continues to demonstrate the strong ties between the two countries and reinforces Dubai as a conveniently located hub for onward travel on Emirates’ network of 134 destinations. Besides boosting global trade and economic opportunities, this new route will provide additional travel options to Pakistanis wanting to connect with friends, families and colleagues worldwide.” PrESS rElEASE
arif suleman appointed as pak-thai business council chairman KARACHI: The Federation of Pakistan Chambers of Commerce and Industry has appointed Arif Suleman as chairman of Pakistan-Thailand Business Council of FPCCI. Arif Suleman is the Honorary Trade Advisor for Government of Thailand in Pakistan. He has over three decades of association with Thailand and is the only Pakistani to have received Royal Decoration from the King of Thailand along with the Friend of Thailand Award from Prime Minister of Thailand. His appointment will further strengthen and boost the trade and economic relations between Pakistan and Thailand. PrESS rElEASE
soneri bank’s atm inauguration
KARACHI: Soneri Bank officially inaugurated its ATM at the Ocean Mall and Tower on Tuesday 6th Aug 2013.Present at the ceremony was the President & CEO of Soneri Bank, Mr.Mohammad Aftab Manzoor, Director Siddiqsons Group, Mr. Tariq Rafi, Head of Corporate & Investment Banking Soneri Bank, Mr. Bilal Asghar, Head of Marketing Soneri Bank, Ms. Fariya Zaeem, the Retail & Product Team, ADC, Operations & IDT Team. The marketing team has conceptualized and designed a unique ATM vestibule branding keeping in view the brand philosophy of Soneri Bank reflecting transparency in all business aspects. The ethos of the Soneri Sun rays has been creatively captured in the ingenious execution of the vestibule. Speaking on the occasion the President & CEO of Soneri Bank said “With our wide distribution network of over 233 branches and 260 ATMS we are committed to better serve our valued customers and provide innovative and efficient financial solutions.” PrESS rElEASE