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BUSINESS Saturday, 20 July, 2013
China to invest $6b in energy sector ISLAMABAD APP
Chinese CWE Investment Corporation will invest $6 billion in the energy sector of Pakistan during the next five years to help the country overcome its energy problems. The company is already running nine projects in Pakistan, CWE Investment Corporation Vice-President Wang Shaofeng said during a meeting with Board of Investment (BoI) Chairman Mohammad Zubair. Shaofeng is leading a six member Chinese delegation in Pakistan. Shaofeng briefed Zubair on the ongoing energy projects saying that the construction of the 50 mw Wind Farm has already been started in January, with its financial closing almost completed. All the civil works and 50 percent wind-turbine installation is scheduled to be completed by the end of the year and the project will begin commercial operation (cod) by June 2014, he added. Shaofeng further said that the 720mw Karot hydropower project is currently going through its feasibility stage and that its tariffs have been approved by NEPRA. Feasibility updating and optimization works are ongoing and will be completed by June 2014 while the project construction is scheduled to start by the end of 2014 and would be completed in 5 years, he added. Shaofeng told Zubair that the 1100mw Kohala hydropower project is at its first stage and tariff negotiation with the NTDC is ongoing since September 2011.Land acquisition and the preparation for construction will completed in 2015 and construction will start in 2016, he added. Furthermore, construction on the 120mw Taunsa hydropower project will start in 2015, and take four years to complete, he added.
TDAP wants expansion of zero-duty US list for Pakistani goods KARACHI
HE Trade Development Authority of Pakistan (TDAP) wants the US government to expand its list of Pakistan-made goods that have zero-duty on entry into America. A formal request was made by TDAP Secretary Rabiya Javeri Agha during a reception for a US delegation led by Overseas Private Investment Corporation (OPIC) President and CEO of Elizabeth Littlefield, who briefed the Pakistani business community on mobilising private capital for growth in Pakistan. The event was organised by the US consulate in collaboration with the TDAP and the Sindh Board of Investment. Littlefield was accompanied by US Ambassador to Pakistan Richard Olson. Agha said that Pakistan was facing numerous challenges developing
mediums for sustainable energy generation, nuclear carbon capture storage and renewable energy. She hoped that OPIC’s investment would help mobilize private capital to solve these critical challenges and to catalyze job opportunities in Pakistan. She also highlighted the role of the TDAP in enhancing trade through investment-promoting events and thanked the US Consul General in Karachi for coordinating with the TDAP to host GSP sessions which were directly broadcasted from the US. Littlefield briefed the Pakistani business community about the details of OPIC products and explained the parameters for such projects. OPIC offers investment and financing to Pakistani companies focused on infrastructure development, sustainable energy and other value added projects. The financing also covers Small and Medium Enterprises (SMEs). She said the OPIC was working in more
PAKISTAN TO PAY $4.6 BILLION IN INTEREST TO IMF
PM takes notice of PSM power disconnection ISLAMABAD Online
Prime Minister Nawaz Sharif on Friday took notice of the situation that arose when the Karachi Electric Supply Company (KESC) disconnected electricity supply to the Pakistan Steel Mills (PSM). The KESC had earlier cut off power supply to the PSM on account of non-payment of Rs 930 million. Since the suspension of electricity the PSM had virtually remained closed. According to media reports Nawaz subsequently took notice of the situation. Meanwhile, following the request of PSM and KESC, Industry and Production Minster Murtaza Jatoi reached Karachi and summoned a meeting pertaining to the matter.
PM summons CCI meeting on energy policy ISLAMABAD inP
Prime Minister Nawaz Sharif on Friday summoned a meeting of the Council of Common Interests (CCI) to be held on July 25 over the country’s new energy policy. According to reports, the new energy policy would be brought up for approval during the meeting. Nawaz is expected to announce the new energy policy after its approval in the CCI meeting. Sources further said that the new policy would increase the electricity tariff for all sectors including industrial, commercial, bulk supply, and agricultural tube wells. Household consumers would be exempted from the tariff hike, sources added.
than 100 countries and moreover, it was directing and guaranteeing loans for all kind of projects ranging from 2 to 40
KARACHI STAFF RePORT
Pakistan’s current account balance dipped by a significant 51 percent in the FY13, and thus the interest payment of $4.6 billion to the IMF will keep pressuring economic managers on the balance of payment (BoP) front. According to analysts at InvestCap Research Pakistan has to pay $3.3b in FY14 and $1.3b in FY15 as interest payments on an IMF loan, which will
add to the burden of the country’s balance of payment account. In FY13 Pakistan’s current account posted a deficit of $2,299m to reach -0.9 percent of the GDP. A major chunk of this contribution came from the services balance where both imports and exports of these services depicted favourable behaviour, the analysts said. The exports of services showed a 31 percent year over year (YoY) increase and reached $6,619m while imports of services fell by six percent to $7,758m. $1.8b was re-
ceived for the Coalition Support Fund (CSF) from the US in exchange for services. The services balance consequently slumped by 64 percent YoY in FY13 to a deficit of $1,139m. The trade balance rose by four percent YoY where the deficit of $15,765m in FY12 declined by 4,709m to reach $15,056m in FY13. And while the exports of goods remained essentially stagnant, the imports of goods witnessed a meagre two percent YoY decline. The analysts said that the income account was the only account that posted an unfavourable balance for the current account. Despite a 22 percent decline in interest payments in FY13 the income balance deficit increased to $3,724m. Worker remittances continued to play their traditional role in supporting the current account balance. They contributed an additional $734m reaching $13,920m in FY13. However, despite this, the current transfers account deficit balance remained essentially stagnant at $17,620m (increasing by a lowly $76m) in FY13. “Going forward we expect the current account to be led by the trade balance instead of the service balance account,” the analysts said, adding that with a lack of clarity at the exchange rate front and chances of power outages continuing (at least in the short run) to cripple the export oriented textile sector, the potential of the latter to play the role of a saviour seemed constrained.
million dollars. She added that the OPIC was already funding the expansion of the Agha Khan University Hospital, a sapphire and a bio-mass energy project. Olson assured Pakistani investors of the continued support of the US government and that after the Dubai Investment Conference $48 million had been set aside as seed money for public-private partnership projects. Sindh Board of Investment (SBI) Chairman Zubair Motiwala highlighted the significance of the OPIC visit to Pakistan which would positively influence foreign direct investment in Pakistan’s key sectors. He also proposed holding road shows in the US to highlight feasible projects in Pakistan to gain the attention of US investors and to promote Pakistan-US investor business relations
ICCI CALLS FOR NEW INCENTIVES TO LURE EXPAT INVESTORS ISLAMABAD Online
Expressing grave concerns over the huge dip in foreign exchange reserves, the Islamabad Chamber of Commerce & Industry (ICCI) called upon the government to take urgent measures to address this precarious trend. In a statement issued on Friday, ICCI President Zafar Bakhtawari said that Pakistan’s foreign exchange reserves have fallen exponentially from $18 billion in July 2011 to a meagre $10.501 billion. He said that Pakistan needs more foreign exchange to fulfil its foreign debt obligations as Pakistan is to repay $5.8 billion to foreign lenders in FY 14, therefore, the government needs to undertake immediate structural reforms to bring stability to these foreign reserves. Due to falling foreign reserves the government will miss all its economic targets as inflation will grow, economic growth will slow down, the budget deficit will further widen and unemployment will rise, Bakhtawari said. The $5.3 billion loan from the IMF will not relax the pressure on foreign exchange reserves and the State Bank of Pakistan (SBP) thus needs to utilize all options to improve the balance of payment situation, he added. Furthermore, he stressed on the need for the government to support and facilitate the export sector and provide new incentives for overseas Pakistanis to improve the country’s foreign reserves.
Bestway Group celebrates 50 years of philanthropy LAHORE STAFF RePORT
The Bestway Group celebrated 50 years of not just commercial success, but of also making a positive impact on local, national and international communities. Inspired by Sir Anwar Pervaiz, the group donated more than 13.5 million pounds in the UK and $9 million in Pakistan to charitable causes. “Bestway at the heart of the community” has been published to mark this special event and explained how one man’s vision had contributed to the transformation of local communities through investments in
schools, universities and hospitals. Established in 1987, the group now contributes approximately 2.5 percent of its profits each year to the foundation established by Pervaiz. In order to enhance the grant giving mechanism, a sister organization was established in Pakistan in 1997 and Zameer Choudrey was appointed its Chairman. In Pakistan, Bestway Cement and the United Bank have donated over $9 million to charitable causes. Moreover, in 1987, over 450 students of south Asian origin were provided scholarships to attend universities in the UK, USA and Canada. They have also trained over 2500 apprentices since 1998. Bestway Cement
has established four BHU’s in Thathi, Chakwal, Hattar and Farooquia giving
free treatment to over 20,000 patients. In December 2005 the foundation adopted 29 village schools under an innovative adoption and management programme whereby over 4,000 children now get free education. Additionally, over $2million has been spent towards natural disaster rehabilitation and relief efforts. As part of its initiatives in the field of education, the group has been financially contributing to the Care Foundation, The Citizens Foundation and the LUMS national outreach programme. Furthermore, they have aided the construction of buildings at Taxila UET, the Nowshera Northern University, the Lahore FC college and others.
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BUSINESS B Saturday, 20 July, 2013
GOVT TO GRANT LOANS OF UP TO RS 2M TO YOUTH AT 8PC MARK-UP: ISHAQ DAR g
INANCE Minister Senator Ishaq Dar on Friday said that in the budget for 2013-14, a scheme enabling the youth to start their own businesses had been established whereby loans through the banking system would be made available in a transparent manner. “Under the scheme loans ranging from Rs 100,000 to Rs two million would be available at a mark-up cost of 8 percent. The remaining cost of mark-up would be borne by the government. A sum of Rs 2 billion had also been earmarked for macrofinance to encourage small businesses,” Dar said while talking to a USAID delegation led by Director
Gregory C Gottlieb. He added that small and medium enterprises had a special place in the strategy being formulated by the government to revive the country’s economy. Dar added that during the previous government of Prime Minister Nawaz Sharif, institutions like the Board of Investment (BOI) and Small and Medium Enterprises Development Authority (SMEDA) were established to encourage businesses in a conducive environment. Furthermore, Dar said that the government intended to revamp the BOI with the objective of making it a one-window one-stop operation for investors. He added that the revival of SMEDA was also on the cards, with the aim to reconnect it with the private sector so that they
Packages Ltd. Atlas Battery Ltd. Service Ind.Ltd MithchellsFruit Philip Morris Pak.
The Sensitive Price Indicator (SPI) for the week ended on July 19 where the lowest income group up to Rs 8,000 registered decrease of 0.18 percent as compared to the previous week. The SPI for the week under review for the above mentioned group was recorded at 195.33 points against 195.69 points registered in the previous week, according to data of the Pakistan Bureau of Statistics (PBS). The weekly SPI was computed with base 2007-2008=100
covering 17 urban centers and 53 essential items for all income groups and combined. The SPI for the combined group decreased by 0.38 percent as it went down from 201.25 points to 200.48 points during the same period, the data stated. In contrast to the corresponding week of last year, the SPI for the combined group in the week under review witnessed an increase of 8.37 percent. In contrast to the previous week the SPI for the income groups from Rs 8001-12,000, 12,00118,000, 18001-35,000 and above Rs 35,000 decreased by 0.26 ,0.34 ,0.41
OPEN 1851.00 1777.00 536.99 566.67 309.98
HIGH 1899.99 1810.00 558.97 585.00 325.47
LOW 1851.00 1750.00 512.00 560.00 310.00
CLOSE CHANGE 1880.00 29.00 1800.00 23.00 558.97 21.98 583.18 16.51 325.45 15.47
TURNOVER 2,920 5,560 200 550 2,300
245.00 380.45 257.01 509.66 307.68
248.50 373.10 256.51 505.00 307.68
233.00 372.61 250.00 505.00 300.00
235.13 372.61 250.00 505.00 303.50
-9.87 -7.84 -7.01 -4.66 -4.18
29,400 400 3,300 600 2,200
27.21 14.27 11.90 14.30 56.40
26.00 13.06 10.92 13.81 54.01
27.21 14.12 11.76 14.14 54.67
1.29 0.85 0.60 0.27 -0.88
19,701,500 15,853,000 11,401,500 11,097,000 10,656,000
Volume Leaders Maple Leaf Cement B.O.Punjab Faysal Bank Fauji Cement National Bank.
25.92 13.27 11.16 13.87 55.55
Interbank Rates could benefit from the institution via setting up small and medium term businesses. Gottlieb said that the USAID was ready to work with the Pakistani government and that it would provide technical and
technological support to BOI and SMEDA. This would help enhance the capacity of these organizations and result in them playing an effective role in fulfilling their mandate, he added.
WEEKLY INFLATION FALLS BY 0.18 PERCENT ISLAMABAD
COMPANY Colgate Palmolive Wyeth Pak Ltd Sanofi-Aventis Indus Dyeing Liberty Mills
REVAMPING OF BOARD OF INVESTMENT, SMEDA ON THE CARDS ISLAMABAD
and 0.46 percent, respectively. During the week under review the average prices of 14 items registered decreases, 17 items showed increases while the remaining 22 items prices remained unchanged. The items which registered decreases included tomatoes, chicken live (farm), onions, red chillies (powder), gram pulse (washed), rice (irri6), egg hen (farm) LPG, sugar, kerosene oil, rice basmati (broken), vegetable ghee (loose) mustard oil and mash pulse (washed). The items which recorded increases in their average prices included bananas,
cooked daal, wheat flour (bag), gur, cooked beef, wheat, moong pulse (washed), salt (powdered), curd, garlic, bread (Plain), potatoes, milk (fresh), long cloth, beef, masoor pulse (washed) and shirting. The items with no change in their average prices during the week under review included mutton, milk (powdered), cooking oil (tin), tea (packet), tea (prepared), cigarettes, lawn, georgette, sandal (gents) chappal, sandal (ladies), electric charges, gas charges, firewood, energy savor, washing soap, match box, petrol, diesel, telephone local call and bath soap.
USD GBP JPY EURO
PKR 100.7761 PKR 153.1192 PKR 1.0060 PKR 132.1577
Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
102.80 132.92 154.48 1.0065 97.22 12.95 27.75 27.25
SELL 103.05 133.17 154.73 1.0167 98.90 13.19 28.00 27.50
LoC traders to pitch for transit trade during historic AJK trip SRINAGAR: The first-ever traders delegation from Jammu and Kashmir would go to Azad Kashmir in August which would help promote transit trade on the LoC on the pattern of the Wagah border. Traders said that the LoC trade between Uri and Muzzafarabad possessed huge potential for transit trade. A 45-member delegation of traders would visit Azad Kashmir on August 26 to explore possibilities of strengthening trade-ties between the two parts of Kashmir. “We will stress on increasing the number of tradable items as the governments of Indo- Pak had limited these to 21 items. We will try to ask for imported cement from Azad Kashmir,” said Kashmir Chamber of Commerce and Industries (KCCI) President Abdul Hamid Punjabi.
CORPORATE CORNER P&G PAyS TrIbUTe To MoTherS Karachi: P&G Pakistan celebrated its annual Sponsor’s Day to acknowledge diversity at the workplace and thank mothers for their support to enable their offsprings to work and fulfill their dreams. The event that was held at their Karachi office was attended by the employees and their mothers. Sponsor’s Day is a tribute to the mothers who support their children to do the best in life and achieve success. The event gave P&G employees an opportunity to thank their mothers for all they have done for them and for giving them the courage to believe in themselves and excel in their careers. P&G believes that behind the success of its employees are their mothers who guide
and encourage them to do their best. “P&G brands are an indispensable part of the everyday lives of Pakistani women. We believe we can best meet the needs of Pakistani consumers when our workforce reflects the same diversity that exists in this nation. This is why we hire people from diverse backgrounds. This is why we provide a work environment that enables everyone to succeed. And this is why we seek to help them manage their personal and professional lives with flexibility,” said Faisal Sabzwari, Country Manager P&G Pakistan. He thanked the mothers present on the occasion for their tireless efforts and their unconditional love towards their children. PReSS ReleASe
Karachi: Yaseen anwar, governor State Bank of Pakistan, addresses the launch ceremony of the nationwide media campaign on islamic banking on Thursday. STAFF PHOTO
UnIverSITy of CenTrAl PUnjAb All ePZA chairman urges officers to enhance SeT To hoST roboSPrInT 2013 lahore: University of Central Punjab will be hosting RoboSprint 2013, one of the largest robotics competitions in Pakistan on August 21, 2013. University of Central Punjab won the bid to host this event competing against four leading universities. A unique feature of this event is the National Education Campaign, funded by the British Council as a Strategic Partner. In this campaign engineering faculty members from the University of Central Punjab delivered lectures and conducted training workshops on robot design at institutes all the way from Karachi to Peshawar. The response to this campaign was excellent and as a result 68 teams from 20 different institutes have registered to participate in this mega event. The field of robotics combines concepts of electronics, computer programming and mechanical engineering. Any student that undergoes the process of developing an intelligent autonomous robot also goes through a tremendous amount of learning in these three areas. It’s the perfect forum for any engineering student to get a practical hands-on experience for the subjects he studied in class. PReSS ReleASe
Karachi: By enhancing professional skills, officers must perform their duties, said Chairman EPZA Saadat S Cheema. Keeping in view the current country situation, all employees must pay their role by utilizing their potential for the betterment of the country, Cheema said while addressing top EPZA officers. He further said that in accordance to Prime Minister message the presently inefficiency, unfriendly attitude towards public and corruption shall be removed, and / or their contracts cancelled forthwith. The imperatives of good governance are not complete without strict observance of official code of conduct. PReSS ReleASe
Karachi: Pak Suzuki Motor company ltd launched Suzuki Genuine Differential oil in collaboration with hi-Tech lubricants. The agreement signing ceremony was held at Pak Suzuki Motor company limited. The product is available at all Suzuki authorized 3S dealerships. PR