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BuSINeSS Friday, 19 April, 2013




O matter which digit the inflation numbers are hitting, the price hike in the country is breaking the back of those earning the lowest among various income groups. And those living in the federal capital, Islamabad, appeared to be most-affected compared to their countrymen residing in other provincial capitals of Pakistan. Monitoring the monthly Consumer Price Index (CPI) inflation, the central bank found that during March, the daily-use food items remained highest to those having the lowest monthly income of up to Rs 8,000 in the country. “The lowest income group (up to Rs 8, 000) has the highest inflation in food group during the month of March,” the State Bank observed. Nisar Ahmed, a peon in a private firm, does not love to talk about inflation, which he says has made life miserable for a commoner. “Let’s not talk about Mehengai (infla-

SECP starts criminal proceedings against Ahmed Nadeem Securities KARACHI STAFF REPORT

The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against Muhammad Ahmed Nadeem, chief executive and shareholder of Muhammad Ahmed Nadeem Securities (Pvt) Ltd and ex-member of Islamabad Stock Exchange, and Muhammad Ahmed Janjua, company secretary. The complaint has been filed under section 32(5) of the Securities and Exchange Commission of Pakistan Act, 1997. “The Court after recording the complainant’s statements and examination of documentary evidence has issued summons to the accused to appear on July 5, 2013,” said a statement issued on Thursday by SECP spokesperson Imran Ghaznavi. Giving details of the case, it said the Commission after receipt of investor complaints against the company regarding non-payment of cash balance available in investors’ accounts, and refusing to transfer their shares took notice of the matter and directed the ISE to take appropriate action against the company. The Governing Board of ISE suspended the company’s trading rights on May 25, 2012, and directed the company to settle investor complaints. Contrary to the directions issued by ISE, the Company on June 02, 2012 filed a winding up petition under Sections 305 and 309 of the Companies Ordinance, 1984 in the Islamabad High Court. Subsequently, ISE notice dated June 12, 2012 cancelled the membership of the company in accordance with the terms of Article 33(b) of Articles of Association of the Islamabad Stock Exchange. The Commission in exercise of the powers under Section 21 of the Securities and Exchange Ordinance, 1969 read with Section 29 of the Securities & Exchange Commission of Pakistan Act, 1997 ordered an enquiry against the Company through an order dated July 31, 2012. However, the Director and Company Secretary did not provide the requisite records required by the enquiry team. In addition, they failed to appear before the enquiry team, despite repeated notices issued by the Commission under section 32 of the Securities and Exchange Commission of Pakistan Act, 1997.

High earning groups face lesser food inflation PRICE HIKE FOR HIGHEST INCOME GROUPS STANDS BETWEEN 5 TO 6% tion) sir. Running kitchen is not possible anymore for the people with lower income,” said Ahmed, who lives hand-tomouth in a two-bedroom house with his four dependents in Junejo Town. For Ahmed, gone are the days when people like him used to have a full-fledged lunch in a city restaurant for Rs 50 to Rs 60. “Now while at work in daytime, I prefer having two Samosas with a cup of tea to fulfill my hunger,” said Ahmed, who is married with one child. Also, he has at home a widowed mother and a schoolgoing brother that depend on him. “I have to do a side business of scrap to meet ends,” Ahmed said, adding that transport fares, utility bills, education expenses of children and other essential expenditures made life miserable for the common man. Ahmed’s sorry state can be substantiated with the official numbers for various categories of inflation for the income group he falls in. Official data shows that for those earning up to Rs 8,000 a month, the rate of food and non-food inflation was 7.6, 7.1 and 8.4 percent in the previous month.

ISLAMABAD MOST EXPENSIVE, LAHORE CHEAPEST CITY OF PAKISTAN This is in spite the fact that Ahmed’s city of residence, Karachi, was last month ranked the country’s fourth costliest city after Islamabad, Peshawar and Quetta. According to SBP’s inflation monitors, the inflation rate in Islamabad, Peshawar, Quetta and Karachi stood at 6.7, 5.9, 5.8 and 5.7 percent, respectively, during March. Lahore, the provincial capital of Punjab, appeared to be the cheapest city with 5.4 percent year-on-year inflation. Ironically, the price hike did not bother those officially categorised as the

earning the most the general, food and highest income groups. non-food inflation stood at 5.3, “Income group above Rs 6.0 and 5.0 percent, re35,000 witnessed lower inFor Ahmed, spectively, during the flation than the overall review month. inflation in CPI basket gone are the days For those earnduring March 2013 when people like him ing between Rs for general, food 8,001 and Rs and non-food used to have a 12,000, the groups and lowfull-fledged lunch in a price hike est among the under the above groups,” the cenKarachi restaurant for three heads actral bank moniRs 50 to Rs 60. “Now counted for 8.4, tored. For those 6.7 and 10.2 while at work, I prefer percent. having two Samosas The group with an income with a cup of tea to ranging from Rs fulfill my hunger.” 12,001 to Rs 18,000 saw these figures at 8.0, 6.6 and 9.5 percent, while those pocketing Rs 18,001 to Rs 35,000 had to pay for daily essentials on the three accounts at a rate of 6.1, 6.3 and 5.9 percent. Overall, the headline CPI inflation was recorded in March at 6.6 percent YoY compared to 10.8 percent of the corresponding month of last year. “CPI Inflation on year-on-year basis in provincial capitals of Pakistan was lower than overall inflation during March 2013, while in the federal capital, it was slightly higher than overall inflation,” the State Bank said.

South Asia regaining economic momentum but faces risks: World Bank WASHINGTON

deficits remain high. Fiscal buffers are beginning to be rebuilt in several South Asian countries, most recently in India. Further progress will require imSouth Asia is regaining its economic momentum, but proving tax revenue collection and curbing energy the recovery in the world’s region with the largest subsidies, among other measures. Much of the recent slowdown in economic number of poor people could falter in the absence of a stronger investment climate, said the latest South growth can be attributed to stagnating investment. Total fixed investment grew by 2.6% in 2012, down Asia Economic Focus report of the World Bank. According to the report, the combined growth of from a high of 16.7% in 2010. The performance varies widely across the region. For example, Afghanistan, Bangladesh, Bhutan, India, total investment in Pakistan during the Maldives, Nepal, Pakistan, and Sri 2011/12 fiscal year hit a historic Lanka was just 4.7% in 2012, The region is low of 12.5% of GDP, while substantially below pre-crisis India is projected to register levels. A pick-up to 5.5% now more vulnerable investment at 30.6% for can be expected in 2013 because current account fiscal year 2012/13, only with ongoing efforts to slightly down from the regain fiscal space balances have widened, year. and boost private inforeign direct investment has previous In common with vestment. But global trends, most given the uncertain slowed, and persistently high countries in South global environinflation has limited the ability Asia have increased ment, it will be imtheir levels of forportant to for central banks to use eign direct investstrengthen the inmonetary policy to counter any ment (FDI) over the vestment climate. last decade. But much “How countries economic downturn. Because of of this is skewed tomanage their rising imports, countries in ward the services sececonomies in the face tors, such as construction, South Asia are also more of uncertainties in the financial and business global environment will vulnerable to increases in services, with less going tobe critical not only for adward agriculture or manufacturcommodity prices. dressing near-term current acing. This, to a large degree reflects count and fiscal deficits but also a lack of attractive investment opportufor tackling South Asia’s long-term nities. Some countries, notably Bangladesh and challenges,” said Martin Rama, chief econoPakistan, have recently suffered significant declines mist for the South Asia Region at the World Bank. The report, a twice-yearly look at South Asia’s in overall FDI. “Exports and domestic consumption are execonomic prospects, said that the region is now more vulnerable because current account balances pected to contribute only modestly to growth, and have widened, foreign direct investment has slowed, so a revival in investment will be critical for South and persistently high inflation has limited the ability Asia to regain momentum,” said Rama. “Over the for central banks to use monetary policy to counter next 20 years, more than 1 million new workers will any economic downturn. Because of rising imports, be entering the South Asian labour force each countries in South Asia are also more vulnerable to month. Countries will need to improve their business climate to attract the private sector investment increases in commodity prices. Some countries, notably the Maldives and Pak- needed for these new entrants to find productive istan, have seen their reserves dwindle to critical jobs, thereby reducing poverty and boosting shared levels. And in India, Sri Lanka and Bhutan, fiscal prosperity.” SPEcIAl cORRESPONdENT

Unjust gas distribution causing problems for the people: APCNGA ISLAMABAD APP

Unjust gas distribution has led to closure of varGAS SHORTFALL: ious industrial units, RESTORATION OF triggering brain drain and flight of capital from SUPPLY TO PUNJAB the country, Abid Hayat, CITIES RESCHEDULED Chairman All Pakistan (CNG) Association LAHORE: Sui Northern Gas (APCNGA) said on Pipelines Limited (SNGPL) Thursday. has changed the schedule Talking to reporters, of provision of gas to CNG he said the previous govstations in Punjab because ernment did not listen to of damage to major gas the recommendations of supply lines in Hassan the APCNGA, which Kounj and Pir Koh. Earlier could have prevented the gas supply to CNG stations citizens from suffering in Lahore, Sheikhupura, from the energy crisis. Sahiwal, Multan, Lauding the NAB Gujranwala and Gujrat move to probe captive regions was to be restored scam, Hayat said the deat 6am on Thursday but the velopment has proved authorities concerned had that APCNGA’s stance to reschedule the supply to on unjust gas distribuFriday morning due to tion, increased oil import destruction of gas pipelines bill and failure to introat two localities by duce liquid gases was militants. INP true. All those who had pushed the country into darkness for personal gains should be made accountable and trillions be recovered from them, he said. Speaking on the occasion, Ghiyas Abdullah Paracha said that those terming captive power plants state-ofthe-art are misguiding the masses. These plants have efficiency level of around 18 per cent and waste 454 mmcf gas. Disconnecting gas to private power plants and provision to efficient power houses would have increased power generation by 2.5 thousand megawatt and reduced load shedding to a great extent, he claimed. Owners of captive power plants are making electricity at the cost of Rs 5 per unit and selling it at Rs 18 per unit in connivance with the government officials, he alleged.

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BuSINeSS B Friday, 19 April, 2013

Economic, social survey of Asia Pacific launched ISLAMABAD: Asia-Pacific economies will see subdued growth in 2013 after last year’s sharp slowdown caused by external factors, the United Nations said during launch of economic and social survey of Asia and the pacific region 2013. Report says that efforts to stimulate demand must go hand in hand with macroeconomic course correction to promote broad-based and sustainable development. In her video address, United Nations Under-Secretary-General and Executive Secretary of ESC Dr Noeleen Heyzer said in her preface to the Survey that the 2013 Survey reminds us that this is no time for complacency, as the need for a more inclusive and sustainable pattern of economic and social development continues to be critical. “In the light of the region’s high degree of economic insecurity, large development and infrastructure gaps and heightened environmental fragility along with extreme exposure to climate change-related risks, it is necessary to better balance the stabilization and the developmental roles of macroeconomic policies,” Executive Secretary Heyzer added. Inclusive and environment-friendly growth is key to creating new sources of economic dynamism amidst the persisting global uncertainty, says the flagship publication of the Bangkok, Thailandbased United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) which estimates that economic policy uncertainty in the eurozone and the United States since the onset of the global crisis has shaved 3 per cent off regional GDP – a loss of $870 billion in output. ONlINE

Regulators smell ‘insider trading’ as NRL unveils misleading financial results KARACHI ISMAIl dIlAWAR

The front regulators at the Karachi Stock Exchange (KSE) are suspecting foul play by the management of the National Refinery Limited (NRL) which first communicated erroneous financial results to the Exchange and then took hours to rectify the mistake. The NRL management, on the other hand, has regretted the incident that Company Secretary Nouman Ahmed Usmani dubbed as a “purely human error”. The KSE, however, has taken a strong exception to the hours-long delay the NRL made while communicating its correct financial results for the third quarter ending on March 31 this year. The official documents reveal that the KSE is suspecting an element of “insider trading” during the April 16 trading session and has asked the company for an immediate explanation. If they fail to ally the regulators’ concern, the NRL and its management would be facing a penalty ranging from Rs 100,000 to Rs 1 million under Listing Regulation No 16(3) and 16(4) of the Exchange. According to an official narrative, the Refinery, at 12:27pm last Tuesday, sent its financial results to the Exchange with what the KSE called it a “major difference” in the company’s earnings and profitability. Sensing what the company secretary termed as a human error, the NRL sent an amended version of its balance sheet to the Exchange at 3.46pm. “It is regretted that… the amendments in the figures was communicated after the lapse of over three hours and after closure of trading hours,” said KSE’s Deputy General Manager Companies Af-

fairs Muhammad Ghufran in an official communiqué to the NRL. This, he apprehended, may lead to “an element of insider trading” for delay in communicating the correct financial results. Asking for an explanation from the company, Ghufran said the NRL shares were one of the actively-traded issues on the KSE. “Negligence on the part of the company while communicating such price sensitive material information is neither desirable nor in line with the Code of Corporate Governance applicable to all listed companies,” he said. Additionally, he said, Listing Regulation No 16(3) and 16(4) of the Exchange required the listed firms to communicate their accurate and complete financial results and any other price sensitive information. The issuers, he said, were also required to ensure timely communication of complete and accurate financial results and in case of non-compliance it was liable for action required therein. In response, NRL’s Company Secretary Nouman Ahmed Usmani clarified that there were “malafide” or “deliberate” intentions on the part of his management. “This is purely a human error,” he added. The secretary reminded the KSE that as soon as his side realized that a mistake had been occurred in communicating the results, it promptly sent the KSE a letter of factual information without waiting any communication from the regulator. “Considering the seriousness of the matter and inconvenience caused to the investors we sincerely regret this incident,” he said. The NRL assured the front regulators of having adopted sufficient corrective measure to avoid the recurrence of such errors.

Major Gainers COMPANY Wyeth Pak Ltd XD Bata (Pak) XD Gillette Pak Indus Dyeing MithchellsFruit

OPEN 1154.00 1750.00 204.75 380.00 342.10

HIGH 1211.00 1800.00 214.98 395.00 352.97

LOW 1111.00 1750.00 209.99 390.00 345.00

CLOSE CHANGE 1210.00 56.00 1800.00 50.00 214.98 10.23 390.00 10.00 351.55 9.45

TURNOVER 3,850 750 9,000 200 600

4750.00 301.50 285.00 241.00 183.00

4560.00 301.39 278.14 241.00 177.83

4560.00 301.39 278.14 241.00 177.85

-240.00 -15.86 -14.63 -11.65 -9.33

80 300 5,300 200 41,200

18.39 18.90 135.50 8.55 12.27

17.05 18.22 127.50 7.80 11.15

18.36 18.46 134.58 7.96 11.67

0.97 -0.71 4.04 -0.36 -0.33

19,456,000 14,139,000 13,093,500 12,470,500 11,089,000

Major Losers Unilever Food XD Bhanero Tex. Philip Morris Pak. Fazal Textile Atlas Honda Ltd

4800.00 317.25 292.77 252.65 187.18

Volume Leaders Maple Leaf Cement P.T.C.L.A Engro Corporation TRG Pakistan Ltd. Jah.Sidd. Co.XD

17.39 19.17 130.54 8.32 12.00

Interbank Rates USD GBP JPY EURO

PKR 98.3972 PKR 150.4198 PKR 1.0023 PKR 129.7564

Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal

99.20 127.81 149.16 0.9974 94.81 12.46 26.70 26.20

SELL 99.45 128.06 149.41 1.0079 96.50 12.70 26.95 26.45

CORPORATE CORNER PSO opens world’s first ‘Community Owned Petrol Station’ in Pakistan

LAHORE: LESCO CEO Muhammad Saleem attending first meeting of the new LESCO Board of Directors along with other members. PR

HBL signs strategic partnership agreement with Daewoo Express

KARACHI: Habib Bank Limited (HBL), Pakistan’s largest bank, recently signed an agreement with Daewoo Pakistan Express Bus Service Ltd., the first and largest foreign investment company with an advanced and organised transport system in Pakistan, to provide state-of-the-art electronic cash management solutions. The agreement was signed by Mr. Faiq Sadiq, Head - Payment Services HBL and Mr. Faisal Siddiqui, Director - Investment Planning Daewoo Express Bus Service Ltd. Under the agreement, HBL will provide electronic and alternate delivery channels to Daewoo Pakistan, including Cash-in-Transit (CIT) management, panPakistan ATM deployment and other electronic banking services. Also, as part of the agreement, HBL recently installed 12 ATMs at Daewoo terminals, with 10 more ATMs to be installed over the next few months. Addressing the occasion, Faiq Sadiq, Head - Payment Services said “HBL has always been at the forefront in delivering and meeting the demands of customers. This agreement is a beginning of a strategic relationship with Daewoo which will bring innovative solutions that meet the banking needs of our customers.” PR

GUJRAT: Pakistan State Oil (PSO), the nation’s leading energy company has inaugurated the world’s first ever “Community Owned Station” in Pakistan at Khwaspur Chowk, District Gujrat under the leadership and guidance of its CEO & MD Mr. Naeem Y. Mir. This retail outlet is the first ever of its kind in the world and the credit of its creation goes to Pakistan State Oil. This station has been established as per the Company’s new vision of social emancipation through which the management intends to empower local communities and provide them with the tools they need to improve their status quo. This project is another milestone in PSO’s long list of achievements and will help support local communities to own their own business, generate employment opportunities for themselves and increase their standards of living. Through this initiative, retail outlets will be developed in underdeveloped areas, the dealership of which will be extended by the company to the local residents. Under this program, the entire worth of the station will be divided into shares for the community. Furthermore, PSO plans to replicate this concept by establishing two such retail outlets in each province of the country, for a total of ten outlets nationwide in this year alone. PR

Doha airport retains title of world’s best premium service airport

two key categories at a ceremony held in Geneva. For the third consecutive year, Qatar Airways’ Premium Terminal at Doha International Airport (DIA) was named World’s Best Premium Service Airport, recognised for its superior Five Star service and excellent customer care. Qatar Airways-owned Oryx Rotana has also achieved a remarkable milestone, rising to be named among the top three airport hotels in the world after winning the Best Airport Hotel in the Middle East award for the second year running. This year’s win moved the carrier’s five-star hotel at Doha International Airport from 10th to third position in the Skytrax Airport Hotel global category. PR

Taba Foundation health camp benefits 1,000 patients in Kasur LAHORE: TABA Foundation, an umbrella organization bringing all welfare trusts of Pakistan & International NGOs on one platform, brought 10 international/national nonprofit organizations and Rescue 1122 together to hold a joint health camp at Village Khurram, Union Council DhollanHittar, DistrictKasur on 14th April 2013. The organizations, grouped under the TABA Health Cluster, joined hands to address the health issues the local populace is facing day in and day out. Following are the organizations which took part in the activity: Akhuwat, Human Relief Foundation UK, NaimUnNaseer Welfare Trust, Milestones, Al Ehsan Welfare Society, Kawish Welfare Trust, Sundus Foundation, Custom Health Care Society, Waseela Foundation, Heal Pakistan and the public sector would be represented by Rescue 1122. The camp

will provide medical assistance related to mother & child problems, eye diseases and general medical issues. This model of joint services will be replicated during Disasters/ Calamities to save time, Materials and Human resources. PR

Al-Tuwarqi group visits NBP head Office

KARACHI: The President Al Tuwairqi Steel Mills Limited along with his team visited National Bank of Pakistan to felicitate on the successful operation of Tuwairiqi Steel Mills Limited (TSML), which was inaugurated in the month of January 2013. “With NBP’s support and trust, TSML has been able to turn its vision into reality,”said President TSML. TSML has an operating capacity to produce 1.28 Million tons of high quality DRI per annum, TSML is the largest private sector integrated iron & steel manufacturing project in Pakistan. The Project is a joint venture between AL TUWAIRIQI HOLDING of Saudi Arabia and steel giants POSCO of South Korea, who are the world’s third largest steel makers by market value and Asia’s most profitable steel maker. This has also paved the way for foreign investments in Pakistan from not only the Middle East but also other Asian economic multinationals. PR

Film making workshop held at PNCA ISLAMABAD: A workshop on the art and technique of Short Film Making was held here on Thursday at Pakistan National Council of Arts. The workshop sought to orientate young and aspiring filmmakers about different aspects of filmmaking to enable them participate meaningfully in the ongoing short film contest being jointly organized by PNCA and Midas Communications, Islamabad. Industry

GENEVA: Qatar Airways has once again been honoured with accolades at the annual Skytrax 2013 World Airport Awards by retaining awards in

stalwarts like Agha Nasir, Shahid Masood, Syed Taufiq Shah and Azhar Niaz apprized the participants of various technical aspects such as script, technique and content etc. Director General PNCA, Tauqir Nasir deliberated upon the importance of the initiative and called upon prospective filmmakers to document the constructive side of the Pakistani society to affect a change in overall national narrative. PR

Profit E-paper 19th Aapril, 2013  

Profit E-paper 19th Aapril, 2013