BUSINESS Friday, 22 November, 2013
Punjab to replicate GPATI LAHORE Staff RepoRt The Punjab government has decided to replicate Germany Pakistan Training Initiative (GPATI), launched early this year in Karachi by the German Consulate General, to provide market oriented skills to the youth. To prepare the launching of GPATI in Punjab, which is expected next month, a seminar is being organized today (Friday - 22-112013) at a local hotel by the Technical Education and Vocational Training Authority (Punjab-TEVTA) in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which supports German government to achieve its objective of sustainable development in the field of international cooperation around the globe. In the seminar, experts will share information about the implementation of GPATI, which is initially piloted in Karachi with the support of German and Pakistani companies and training providers and recommend putting in place the required infrastructure in Punjab. Punjab-TEVTA, being the main implementing body for replicating GPATI in Punjab, has already done the required homework and is ready to launch the project in Lahore by mid of December. GPATI is modeled on the German Dual Training System, which is a globally accepted vocational training approach and is being employed successfully in Germany since long. Dual Training System engages youth in a skilled form of occupational activity through an extensive training program in a changing working environment. It’s a combination of on job training at companies/industries and learning at vocational institutes. This unique model system of skill development has been modified as perPakistan’s local environment and needs, making it a cooperative training form to benefit both the employers and workers. Through this approach, employers will have a skilled workforce readily available to them to place in the areas of need. The prospective employees, on the other hand, will gain the necessary occupational experience.
The incestuous relationship between government and big business thrives in the dark. — Jack Anderson
BankS taSked to diSBurSe rS 360 Billion farm loan KARACHI Staff RepoRt
he State Bank of Pakistan (SBP) has, provisionally, set the agricultural credit disbursement target at Rs 360 billion for the banks for fiscal year 201314. The target is 14.2 percent higher than the target of Rs 315 billion and 7.1 percent higher than the actual disbursement of Rs 336.2 billion for FY13. Out of the target, Rs 180.0 billion have been allocated to five large banks, Rs 69.5 billion to ZTBL, Rs 81.4 billion to domestic private banks, Rs 9.0 billion to Punjab Provincial Cooperative Bank, Rs 19.6 billion to seven micro-finance banks and Rs 0.5 billion to three Islamic banks inducted from the current financial year. Against the target of Rs 360 billion, the banks disbursed Rs 91.2 billion during the first four months of FY13, July-October, which is 25.3 percent of the target. The disbursement is 7.0 percent higher than Rs 85.6 billion disbursement during the corresponding period last year. The outstanding portfolio of agri. loans has increased by Rs 37.2 billion i.e. from Rs 230.2 billion to Rs 267.4 billion at end October, 2013 as compared to the same period last year.
Five large banks collectively disbursed agri. loans of Rs 57.0 billion or 32 percent of their annual target, higher by 6.2 percent from Rs 53.7 billion disbursed during the corresponding period last year. The MCB Bank has achieved 38 percent of its annual target while NBP, hBL, UBL and ABL have achieved 36 percent, 33 percent, 22 percent and 20 percent of their individual targets, respectively. Amongst specialised banks, ZTBL could dis-
burse only Rs 9.3 billion or 13.5 percent against its target of Rs 69.5 billion while PPCBL achieved 15 percent of its target by disbursing Rs 1.36 billion during the period under review. The 14 domestic private banks as a group achieved 24.5 percent of their target. however, the banks including Sindh Bank, Summit Bank, Silk Bank, Bank Al habib, NIB Bank and The Bank
TEXTILE EXPORTS UP 7.55% IN JULY-OCTOBER PERIOD ISLAMABAD app The textile exports from the country increased by 7.55 percent during the first four months of current fiscal year against the exports of same period of last year. On year-on-year basis, textile exports during October 2013 increased by 0.40 percent when compared to the exports of October 2012. The overall textile exports during JulyOctober (2013-14) were recorded at $4.69 billion against the exports of $4.361 billion during July-October (201213), according to Pakistan Bureau of Statistics (PBS). The textile products that witnessed surge in trade included raw cotton, exports of which increased by 43.27 percent by going up from $56.924 million during the first four months of last year to $81.556 million during the currentyear. Exports of cotton yarn also increased by 6.39 percent from $712.845 million last year to $758.363 million this year while the exports of cotton cloth increased by 5.2 percent from $899.835 million to $946.601 million. Exports of yarn other than cotton yarn increased by 5.64 percent to reach at $16.984 from $16.077 last year while the exports of bed wear increased by 21.08 percent from
$600.696 million to $727.306 million. According to PBS data, articles (excluding towels and bedwear) during the period under review increased by 9.34 percent to $214.134 million from $195.843 million during last year. The exports of art, skill and synthetic textile also increased by 18.09 percent from $122.571 million during JulyOctober 2012-13 to $144.738 million during July-October 2013-14, whereas the exports of knitwear increased by 1.07 percent from $752.494 million to $763.865 million. The products that witnessed negative growth in exports included cotton (carded or combed), exports of which declined by 70.77 percent, from $568,000 to $166,000. The exports of tents, canvas and tarpaulin decreased from $32.708 million to $27.131 million, showing a decrease of 17.05 million while exports of readymade garments increased from $575.01 million to $620.763 million, showing increase of 7.96 percent. Exports of towels also decreased from $260.673 million last year to $243.862 million this year, showing negative growth of 6.39 percent. The exports of all other textile commodities increased by 7.28 percent, from $135.768 million last year to $145.657 million this year.
of Khyber achieved 73 percent, 41 percent, 40 percent, 36 percent, 33 percent and 32 percent of their annual targets, respectively. Soneri Bank, Bank Alfalah, Faysal and Askari Bank could achieve only 24 percent, 23 percent, 18 percent and 17 percent of their targets, respectively. Seven micro-finance banks as a group disbursed agri. loans of Rs 3.6 billion or 18 percent of their annual target of Rs 19.6 billion. The three Islamic banks as a group disbursed Rs 0.15 million to agricultural borrowers against a target of Rs 0.5 billion under the Islamic modes of financing during the review period.
SBP clarifies bank loan write-off rules KARACHI: The central bank Thursday clarified that the loan write-off includes any form of relief allowed to the customer in terms of dues outstanding towards the banks and Development Finance Institutions (DFIs). This outstanding dues include principal, mark-upn profit and other charges. Referring to BPRD Circular No. 06 of 2007 issued on June 05, 2007, the State Bank said it had received representations from the banks and DFIs seeking explanation on the said circular. The central bank clarified that for the purpose of reporting in e-CIB of SBP, to reflect actual position of write off and recovery, netted balance of write off (principal, markup/profit and other charges) should be updated as and when recovery was made. The regulator issued the clarification to ensure uniform practices across the industry fostering availability of accurate and reliable information to the stakeholders. "Meticulous compliance with the above instructions shall be made; any violation will attract punitive action under the Banking Companies Ordinance, 1962," said the bank. Staff RepoRt
EUROZONE BUSINESS ACTIVITY SLOWS AGAIN: MARKIT BRUSSELS agencieS Business activity in the 17-nation eurozone slowed again in November, adding to concerns that overall growth is softening as the bloc struggles out of recession, a key survey showed on Thursday. Markit Economics said its Eurozone Composite Purchasing Managers Index (PMI) for November fell to 51.5 points from 51.9 points in October, hitting a three-month low. Although November output remained above the 50-points line indicating growth or contraction, this was the second month running for which the closely-watched leading indicator had fallen, after October's reading slipped to 51.9 points from 52.2 in September. But activity in the French economy, the
second-biggest in the eurozone, shrank in November for the first time for three months, the Markit indicator showed. Recent reports from the European Commission, the Organisation for Economic Cooperation and Development and the Standard and Poor's rating agency have expressed strong concerns about prospects for the French economy. Recent data put eurozone economic growth at 0.1 per cent in the third quarter, down from 0.3 per cent in the second when the single currency bloc finally escaped a record 18-month recession. The November PMI report confirms continued weakness in an economy desperate for growth to mend some of the debt crisis damage, especially record unemployment running at more than 12 per cent. Markit said that other PMI measures reflected
similar softness but manufacturing, a relatively small part of the wider economy, held its own. The Eurozone Services PMI for November fell to 50.9 points from 51.6 in October while the Eurozone Manufacturing PMI edged up to 51.5 from 51.3. Chris Williamson, Markit chief economist, said that while it was welcome that the PMI report remained in positive territory for a fifth month in November, “it looks like momentum is being lost again.” The figures thus far suggest that the economy will chalk up “a very modest 0.2 per cent expansion” for the fourth quarter, Williamson said in a statement. The November downturn also shows that the European Central Bank was right to cut interest rates to a record low level at its last meeting given the risk of another recession, he said.
A business that makes nothing but money is a poor business. — Henry Ford
BUSINESS B Friday, 22 November, 2013
Asian shares hit by Fed taper talk, Tokyo up on weak yen HONG KONG agencieS Asian shares slipped Thursday after minutes from the Federal Reserve's latest meeting showed it was considering winding down its stimulus “in coming months”. But Tokyo rallied as the comments sent the dollar surging against the yen. The regional decline followed losses on Wall Street as another batch of data provided evidence of an uptick in the US economy fuelling fears the Fed's bond-buying could be nearing its
end. Tokyo climbed 1.92 per cent, or 289.52 points, to 15,365.60 as the dollar advanced against the yen, hitting a fourmonth high at one point. However Sydney eased 0.37 per cent, or 19.4 points, to 5,288.3 and Seoul fell 1.16 per cent, or 23.46 points, to 1,993.78. Shanghai closed flat, dipping 0.48 points to 2,205.77 after a late rally, while Hong Kong lost 0.51 per cent, or 120.57 points, to end at 23,580.29. The two markets faced added selling pressure after HSBC said growth in Chinese manufacturing activity slowed in
ITALIAN INVESTORS URGED TO INVEST IN PAKISTAN LAHORE app
Pakistan Muslim LeagueNawaz Lahore President Pervez Malik on Thursday urged Italian investors to join hands with Pakistani counterparts as the present government was taking measures to facilitate foreign investments. According to a news release, he was talking to Ambassador of Italy Adriano Chiodi at his residence. head of economic and Commercial Dr Federico Bianchi, MNA Shaista Pervez Malik, Ali Pervez and Barrister Ahmad Pervez were also present. he said since Asia was fast emerging as future market of the world, therefore, the Italian businessmen should visit Pakistan to have first hand knowledge about business potential of this resourceful country. he said an availability of cheap labour and abundance of
natural resources were great attraction for the foreign investors. Pervaiz Malik said a climate for foreign investors was so conducive that they could now have 100 per cent equity. he said Italian investors could invest in agro-based industries, construction, mining, textiles and tourism sectors where Pakistan could contribute and find complimentary areas in design and fashion. he said Italian businessmen could take an advantage from the investment-friendly climate of Pakistan that offered the best return on the foreign investment with economic policies providing for legal protection to foreign investment. earlier, in his address, Italian Ambassador Adriano Chiodi highlighted economic outlook of his country saying that Italy has a diversified industrial economy.
lCCi urgeS dar to Bar fBr from raiding Paint unitS LAHORE: The Lahore Chamber of Commerce & Industry on Thursday appealed to Federal Finance Minister Ishaq Dar to stop Intelligence Units of the Federal Board of Revenue (FBR) from conducting raids at Paint Manufacturing Units as are creating unrest and harassment among the business community. The LCCI Acting President Mian Tariq Misbah and Vice President Kashif were talking to a 50-member large delegation of paint manufacturers here at the LCCI. The LCCI office-bearers said that it was very unfortunate that despite clear direction of the Federal Finance Minister and Chief Minister Punjab, the bureaucracy is creating an atmosphere of harassment for the businessmen people who are backbone of the economy.
November. Minutes from the Fed's October policy meeting showed board members felt recent economic indicators showed the time was approaching to start cutting down its $85 billion a month bond-buying scheme. “They generally expected that the data would prove consistent with the committee's outlook for ongoing improvement in labour market conditions and would thus warrant trimming the pace of purchases in coming months,” the minutes said. They reiterated that any such move was contingent on a continued
strengthening of the US economy, and stressed that even if the programme was ended the bank was looking at other ways to keep short-term interest rates down. Traders on Wall Street reacted negatively to the remarks, which came as official data showed stronger than expected retail sales in October as well as a pick-up in business hiring. The Dow fell 0.41 per cent, the S&P 500 slipped 0.36 per cent and the Nasdaq lost 0.26 per cent.
“The view still is that there is a chance the Fed could taper in December,” Michael Woolfolk, senior currency strategist at Bank of New York Mellon, told Dow Jones Newswires. And Harm Bandholz at UniCredit said: “There can be no doubt that the Federal Reserve is again getting closer to...moderating its asset purchases.”
Draft on strategic plan proposed to increase IT industry size ISLAMABAD app
Pakistan Software export Board (PSeB) has proposed a four-year draft of strategic plan to help increase size of Information Technology (IT) industry to US $ 10 billion. The PSeB, an attached department of Ministry of Information Technology and Telecommunications, is also in process of reclassifying the revenue stream under Information Technology (IT) services to give a significant boost to IT exports. Official sources on Thursday said to achieve the task, PSeB has identified eight strategic areas with missions and annual targets. These include facilitation, human resource development, industry finance, marketing, office space provision, public policy, quality and telecom bandwidth provision. They said the Board has provided an export plan to Planning and Development Division for incorporation into Pakistan's overall export strategy and targets. The sources said in conjunction with stakeholders, the industry association, Planning Commission, State Bank of Pakistan (SBP), industry and Ministry of IT, PSeB has developed a vision and strategic roadmap to fasttrack the IT industry's growth. They said one of PSeB's major objectives is
to enhance Pakistan's software export, and these targets are annually set for it by the Ministry of Information Technology. PSeB has consistently exceeded expectations for the last two years. With regard to IT services exports, the sources said the country plans to increase them by 271 percent in the next five years. It said 25 percent growth ratio in IT services would be
achieved in 2013-14, 28 percent growth in 2014-15, 30 percent in 201516, 32 percent in 2016-17, 35 percent in 2016-17 and 35 percent IT services growth targets have been set for the financial year 2017-18. As per data, the country has set the targets of achieving US$ 3,774.285 million IT services exports in the next five years. In 2013-14 the
IT services exports have been fixed at Rs 414.389 million, $ 530.418 million in 2014-15, $689.543 million in 2015-16, $ 910.197 million in 2016-17 and $ 1,229.738 million in 201718. A total of 17 private enterprises of the country have achieved the targets of exceeding one million US dollars in IT services exports, the data said. Pakistan's IT services exports were US$ 333.51 million with the growth rate of 21.07 percent in financial year 2012-13. In the financial year, 2011-12, the country's exports grew by 16.35 percent, and remained US$ 273.814 million. The IT services growth were 14.93 percent, while total exports were US$ 235.334 million in the financial year 2010-11. Likewise, in 2009-10, the country's IT services exports were US$ 204.763 million, a growth of 1.41 percent. In 2008-09, the country's exports were US$ 201.903 million-thus having a growth ratio of 19.46 percent. Over 100 countries are procuring IT services from Pakistan.
CORPORATE CORNER iCuBe-1 launCh: a StuPendouS aChievement By inStitute of SPaCe teChnology Pakistan’s first Cubesat satellite, iCUBE-1, was launched on Thursday at 1210 hrs on-board Dnepr launch vehicle from Yasny launch base, Russia. It is welcoming news for Higher Education Institutions, students and researchers of Pakistan that Institute of Space Technology (IST) has etched its name among the foremost universities in the World who have built and launched a cubesat satellite. This cubesat satellite will open up a wide vista of future experiments that can be carried on
cubesats in the domain of imaging, microgravity, biology, nano technology, space dynamics, chemistry, space physics and various other fields. Cubesats can also provide a test bed for developing satellite constellations for specific applications. Institute of Space Technology has achieved this astounding success in a short span of ten years, owing to the concerted efforts by its leadership, students and faculty to standout in this field and to create a national center of excellence in space technology.
COMSATS Rector Dr. Junaid Zaidi is addressing the participant of Italy Day.
Dawlance Exclusively represents Pakistan at 114th China Canton Fair, 2013.
The ambassador of Brazil, HE Alfredo Leoni, has inaugurated, together with the Rector of the National University of Sciences and Technology Engr Muhammad Asghar, inaugurated the photo exhibition “Islam in Brazil” on Thursday, November 21, at NUST.