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BUSINESS Tuesday, 23 July, 2013

Foreign investments in energy now that circular debt is cleared: Dar

LSE up by 0.58 points

LAHORE: The Lahore Stock Exchange (LSE) witnessed a slight bullish trend gaining 0.58 points as the LSE-25 Index opened with 5031.12 and closed with 5031.70 points on Monday. The market's overall situation also showed an upward trend as it closed at 6.351 million shares against the previous turnover of 3.243 million shares, marking a rise of 3.160 million shares. Out of the 98 total active scrips, 30 moved up, 44 remained the same while 24 fell. Pakistan State Oil Company Limited, Highnoon Laboratories Limited and Engro Corporation Limited were the major gainers of the day and recorded increases of Rs 16, 6.08 and 4.91 in their respective per share values. National Foods Limited, Adamjee Insurance Company Limited and Engro Foods Limited’s per share values fell by Rs 7.21, 2.90 and 2.44, respectively. The volume leaders of the day included the Bank of Punjab Limited, Fauji Cement Company Limited and Lafarge Pakistan Cement with 1.962 million shares, 1.051 million shares and 879,000 shares, respectively. APP

ISE-10 index gains 90.99 points

ISLAMABAD

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HE clearance of circular debt not only resulted in the addition of 1700MW in the national grid but also allured foreign investors now considering making investments in Pakistan’s energy sector. Finance Minister Ishaq Dar said this during a meeting with a Malaysian delegation led by Felda Global Centures Holdings Berhad CEO Mohammad Emir

business opportunities in Pakistan and that Malaysia was willing to make investments in the country which would act as a ‘spring board’ for re-export to Central Asia and Africa. Dar informed the Malaysian delegation that Prime Minister Nawaz Sharif would soon display an energy policy which would allow additional power generation at affordable prices. “We plan to double Pakistan’s power generation in the next five years,” he said. Furthermore, Dar said that the circular

online

Due to the presence of standout tourist destinations, Pakistan possessed immense potential in creating business opportunities and in tourism development. Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) President Zubair Malik said this during the first meeting of the FPCCI PakistanJapan Business Council. He emphasised on promoting Pakistan as a tourism destination since 48 small and medium enterprises (SME) related to the tourism industry would benefit from it. He advised the council to therefore motivate Japanese tourists to visit Pakistan’s Buddhist destinations. Furthermore, he said Pakistan could learn immensely from the Japanese experience of SME’s which created thou-

sands of jobs, and was detrimental to the country’s growth. FPCCI Pakistan-Japan Business Council Chairman Chaudhry Muhammad Asg h a r stressed on the need to formulate a strategy to enhance the people to people contacts between the two countries for strengthening trade and economic relations. He suggested that the FPCCI should send a trade delegation to Japan in Octo-

debt which had been adversely affecting energy production had virtually been settled. “We have cleared Rs 480 billion to power producing entities and the balance of Rs 23 billion represents the claims pending settlement,” he added. Dar also said that the conclusion of an International Monetary Program (IMF) program sent extremely positive signals to the financial world who welcomed the measures taken by Pakistan’s government for stabilizing the economy and for creating an investor-friendly climate.

Iran signs major gas export deal with Iraq despite severe global sanctions

Pak needs to tap massive tourism and trade potential with Japan KARACHI

ISLAMABAD: The Islamabad Stock Exchange witnessed a bullish trend on Monday as the ISE-10 index went up by 90.99 points and closed at 4406.97 points. A total of 51,500 shares were traded which were 18,000 more than the previous day's 33,500 shares. Out of 139 companies, the share prices of 81 increased while those of 58 decreased. The share price of Pakistan Tobacco increased by Rs 21.65 while Linde Pakistan’s share price fell by Rs 8.24. Bank of Punjab, Maple Leaf Cement and Lafrage Pakistan Cement remained the top trading companies with trading of 17,000, 17,000 and 10,000 shares, respectively. APP

Amvani Abdullah. During the meeting detailed discussions to explore ways to expand trade and economic relations between the two countries took place. “The existing volume of trade between the two countries is not proportionate to the close and brotherly relations existing between the two countries,” Dar said. Dar assured the Malaysian delegation of all possible means of cooperation and facilitation. Emir said there were tremendous

ber/November 2013 for exploring business and investment opportunities in Japan. The meeting concluded that the FPCCI needed to download various projects from the website of the BOI and send them to The Tokyo Chamber of Commerce and Industry. This could help extrapolate the interests of Japanese businessmen and result in establishing joint ventures, it added. Inviting Japanese businessmen to Pakistan to explore business opportunities was also recommended.

TEHRAN: Iran finalised a major contract worth $3.7 billion a year to export gas to neighbouring Iraq. It was unclear how the transactions would be conducted as Iran’s access to the global banking system was being severely monitored by international sanctions over its nuclear ambitions. Under the terms of the contract signed in Baghdad on Sunday, Iran would eventually feed Iraqi refineries with 25 million cubic metres of gas per day, Javad Ouji said. Iran already had a $7.5 billion gas pipeline project deal with Pakistan in 2010 to export 21 million cubic meters (742 million cubic feet) per day, but the plan had repeatedly run into trouble amid US opposition to the deal. Iran sits on the world's second largest natural gas reserves and currently produces some 600 million cubic metres a day, almost all of which is consumed domestically due to lack of means of exports. APP

MAZARI IDENTIFIES 7 IRREGULARITIES IN GOVT’S LNG DEAL WITH QATAR ISLAMABAD online

The Pakistan Tehreek-e-Insaf’s (PTI) Central Information Secretary Shireen Mazari on Monday issued a strong critique of the Qatar LNG deal agreed by the Pakistan Muslim League- Nawaz (PML-N) government. Mazari stated that the LNG deal in its present form was nothing less than a mega scam costing an astounding Rs 18 billion per year for 20 years. The LNG would be procured by the government from a private US energy company, Conoco Phillips(CP), and not from Qatar unlike the government to government transfer claimed by the PML-N. She stated some of the irregularities in this hastened deal. The first was the base cost of LNG from CP at Brent at $110/b was $16.99/mmbtu plus additional cost of about $2.50/mmbtu to be paid to ENGRO, resulting in a RLNG (Re-gasified LNG) cost of $19.49/mmbtu compared to $ 17.707/mmbtu. This would rob the people of Pakistan by about $180 mil-

lion (or Rs 18 billion) per year, she added. Furthermore, she said that the deal would not allow any price re-opener in the LNG price for the duration of the contract (20 years), whereas prices were expected to exponentially fall after 5 to7 years. Another irregularity was that the deal required the government to ‘take or pay’ the committed LNG irrespective of Pakistan’s ability to lift, she added. Moreover, she said that no tender was called by the ministry of petroleum and natural resources (MP&NR) for tolling, to store the LNG, re-gasify and deliver the RLNG to SSGC. A note by the MP&NR Secretary to the ECC claimed that only the EVTL could provide these facilities on a fast track basis, which was an attempt to fool the ECC according to Mazari. Mazari claimed that a better option of using the existing jetty/terminal facilities was available from a major port facility operator but the MP&NR, in its haste to justify the deal, was favouring the pre-selected ENGRO group. She also claimed that the MP&NR had not considered the technical issues with the proposal, whereby

ENGRO would supply the FSRU and deliver 500 mmcfd for about 5-6 days via two shipments a month to the SSGC. She added that Qatar had explicitly required to supply the LNG using its own Q-Flex carriers, and may not deliver the LNG to ENGRO-rented FSRU. The deal had also not considered that the Qatar Q-Flex carrier could not berth at ENGRO EVTL terminal, she added. Mazari’s sixth point was that on 14th June 2013 the Supreme Court had directed that the government to ensure transparency and compliance with PPRA rules in the matter of LNG imports. An ENGRO company was one of the three companies whose bids were scrapped in an earlier round. Surprisingly, the Qatar deal was being negotiated with another Engro company, she added. Her last observation was that the LPG terminals of SSGC and Engro which were to be converted to LNG terminals were in the main Port-Qasim area. She added that due to safety issues LNG terminals we not located near the main port areas anywhere else in the world. She claimed that authorities at Port Qasim were being pres-

surized by the MP&NR to agree to such unsafe terms. Dr Mazari raised the issue of whether all these facts were brought to the notice of ECC members before getting them to approve the LNG deal on 18th July. ECC summaries were circulated 2 weeks in advance under normal circumstances which caused considerable doubt over the transparency of this deal, she added.


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BUSINESS B Tuesday, 23 July, 2013

US keen to enhance trade and investment ties with Pakistan: Vinay Chawla FAISALABAD

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HE US Government is extremely interested in enhancing bilateral trade and investment relations between the two countries. Many bilateral programs had been initiated through the USAID in Pakistan, US Embassy Deputy Coordinator for Development and Assistance Vinay Chawla said on Monday while addressing the members of the Faisalabad Chamber of Commerce and Industry (FCCI). Chawla said that the US Government wanted to enhance its economic relationship with the present Pakistani government, adding that the US civilian assistance in Pakistan had a five-pillar strategy which included energy, economic growth, community stabilization, education and health. He said the US government’s development cooperation budget for Pakistan was the second largest in the world, adding that the USAID had provided over $2.8 billion in assistance since 2009 and an additional $723 million were to be pro-

vided in 2013. In a presentation he revealed that all priorities were jointly developed with the government of Pakistan at the federal and provincial levels, and furthermore, the work was largely carried out by Pakistani institutions thus creating local employment opportunities and bolstering economic growth. Furthermore, he said that large-scale energy projects had added 900 MW to the power grid which would reach 1200 MW by 2014. He also said that they would support the Faislabad Electricity Supply Cooperation (FESCO) to improve its operational performance via a power distribution program. Chawla added that civil society support and gender equity programs aimed at enhancing women’s empowerment, access to justice and combating gender-based violence would also be launched. Moreover, a $14 million support program planned to improve the productivity, yield and income of dairy farmers along with the new projects in basic education, advanced studies, health, workforce development would also be pursued, he added. FCCI President Mian Zahid Aslam said that role of the US Government for the expansion of bilateral economic cooperation with Pakistan was appreciable, adding that “the USAID was engaged in providing assistance and support in many areas as to strengthen Pakistan’s energy sector to improve efficiency, modernize equipment, technical support and training, increase the educational economic opportunities to Pakistani citizens, improve the provision of health care services and meet critical infrastructure needs in remote mountain areas. The services of the USAID to provide relief and recovery assistance at the time of super floods in 2010 was also commendable.”

World Bank, LCCI discuss Pak-India trade LAHORE: A 12-member World Bank (WB) mission discussed ‘Pak-India trade through land route’ with members of Lahore Chamber of Commerce and Industry (LCCI) on Monday. The WB team headed by South Asia Regional Integration Senior Operations Officer Diep Nguyen-van Houtte spent over an hour at the LCCI to acquire information about facilities at the Wagah Border. Nguyen said that the LCCI’s proposals and suggestions would significantly help in the early-phase development of much needed infrastructure at Wagah, which would enable the WB to finalise a trade facilitation policy between India and Pakistan. LCCI Senior Vice President Irfan Iqbal Sheikh said that Pakistan and India could play an important role in the economic development of this region. Pakistan was keen on establishing strong trade ties with India, he said, adding that a platform should be created to facilitate businessmen on both sides to improve the flow of bilateral trade. Sheikh said that private donors needed to support the cause so that infrastructure could be developed in order to ease the trade activity via borders. The current facilities available for trade through the land route needed Expansion and electronic data exchange should be introduced because trade expansion required more specialised logistic services, he said. Furthermore, Sheikh said that testing facilities should be made available at the border and that mutual recognition agreements should be signed. APP

PPL makes another gas/condensate discovery in Sanghar KARACHI

Major Gainers COMPANY Colgate Palmolive Rafhan Maize Wyeth Pak Ltd Liberty Mills P.S.O.

OPEN 1800.00 5400.00 1835.10 341.60 341.91

HIGH 1850.00 5440.00 1865.00 358.58 359.00

LOW 1850.00 5440.00 1845.00 358.45 343.01

CLOSE CHANGE 1850.00 50.00 5440.00 40.00 1865.00 29.90 358.58 16.98 358.52 16.61

TURNOVER 20 20 300 200 5,162,500

615.00 171.75 212.00 5300.00 75.35

600.00 171.71 193.13 5300.00 75.35

615.00 171.71 195.00 5300.00 75.35

-14.00 -9.03 -8.24 -5.00 -3.94

250 1,900 11,500 20 1,500

15.29 15.17 26.83 10.10 9.32

14.20 14.25 25.75 9.40 8.70

15.02 14.95 26.80 9.83 8.78

-0.05 0.57 1.24 0.30 -0.21

63,071,000 38,664,500 26,092,000 17,895,500 11,552,500

Major Losers

APP

Pakistan Petroleum Limited (PPL) announced another gas and condensate discovery in Sindh’s Sanghar district on Monday. “PPL’s operator of block 2568-18 (Gambat South) EL with 65 percent working interest (WI) along with our joint venture partners, Government Holdings Private Limited (GHPL) and Asia Resources Oil Limited (AROL) with 25 percent and 10 percent WI, respectively announce a gas and condensate discovery over our second exploration well Shahdad X-1 located in Sanghar,” a PPL statement said. This was the second discovery in the block in as many wells, as the first well, Wafiq X-1, had also yielded a gas and condensate discovery. “The exploration well Shahdad X-1 was spud on March 30 and reached a final depth of 3,665 meters on June 19. Based on wireline logs, potential hydrocarbon bearing zones were identified,” the report said. The initial testing in the massive sand of lower goru formation showed a flow of 27.8 MMscfd of gas along with 337 barrels per day (bbl/d) of condensate at 64/64 choke size, thus confirming the presence of commercial quantities of natural gas and condensate at Shahdad X-1, the report added. The report added that the final flow potential of the well would be determined after its completion.

Shezan Inter. 629.00 Shield Corporation 180.74 Linde Pakistan 203.24 Unilever Food 5305.00 Bestway Cement XD 79.29

Volume Leaders B.O.Punjab Fauji Cement P.T.C.L.A Lafarge Pak. P.I.A.C.(A)

15.07 14.38 25.56 9.53 8.99

Interbank Rates USD GBP JPY EURO

PKR 100.7426 PKR 154.0052 PKR 1.0071 PKR 132.5772

Forex UK Pound Sterling Euro US Dollar Canadian Dollar Australian Dollar China Yuan Japanese Yen Saudi Riyal UAE Dirham

BUY

SELL

156 134.25 102.75 98.5 94.25 16.08 1.02 27.25 27.85

156.25 134.5 103 98.75 94.5 16.13 1.1 27.5 28.1

Ahmad stresses on modern farming techniques to slash losses LAHORE APP

Pakistan needs to shift its focus from its conventional agriculture methodology to modern farming techniques to curtail post-harvest losses and for ensuring proper wheat storages at production areas. Harvest Trading CEO Ahmad Jawad on Monday said that modern cold storages, testing laboratories and local trainings were needed to boost Pakistan’s share of agricultural products in the fast-growing global market. "It' is time to focus on the unexplored potential of the dairy industry and horticulture sector to push the overall agriculture growth rate," he added. Jawad proposed that international agricultural experts needed to be invited

to find means for increasing per acre yield, proper training in crop management and for promoting and reactivating agricultural research institutions. Furthermore, he said that Pakistan could not become an agricultural country in the true sense until conventional agricultural methods were replaced with modern farming techniques and hybrid technology.

CORPORATE CORNER PTCL inks cloud computing agreement with AIOU

each semester. The signing ceremony was witnessed by Dr. Nazir A Sangi, Vice Chancellor AIOU and Samer Ajjawi, Advisory Team Member Business Development Etisalat. The agreement was signed by Zahid Mahmood, PTCL GM Corporate Sales North and AIOU Registrar Muhammad Bashir Chaudhry. PReSS ReleASe

Virtual University organises ‘Test Item Development’ workshop ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), the largest Information Communication Technology (ICT) service provider in Pakistan, on Monday inked an agreement for providing Cloud Computing Services to Allama Iqbal Open University (AIOU). Under the umbrella of Cloud Computing Services, PTCL shall be offering the Web Space, Email, Unified Collaboration Services bundled with EVO access for the Students, Teachers and Management of AIOU. The service shall benefit more than 1.3 million students of AIOU, enrolled in various courses from across Pakistan. AIOU enrolls more than 700,000 students every six months and an equal number passes out

of the workshop series was to train faculty members of Virtual University on development and analysis of test items. The workshop was attended by 30 faculty members from different departments of the University. Resource persons of the workshop series including Dr Nasir Mehmood, Dr Rizwan Akram Rana, Dr Muhammad Saeed and Dr Zafar of University of the Punjab. Resource persons focused on main objective in all series and VU’s faculty members benefitted from the workshop which will help them to further ensure quality education in VU. The series was concluded by Rector VU, Tajdar Alam, who distributed certificates among participants. PReSS ReleASe

Planning minister visits NUST

LAHORE: A series of eight workshops on “Test Item Development" was organised by Virtual University of Pakistan from May 16, 2013 to July 05, 2013 at its Lawrence road office, Lahore. The key objective

ISLAMABAD: Ahsan Iqbal, Federal Minister for Planning & Development paid his visit to National University of Sciences and Technology here on Monday. Upon his arrival, he was warmly welcomed by Rector NUST Engr Muhammad Asghar. The esteemed guest had a meeting with Rector before the former was given a detailed briefing on the functioning and rapid growth of NUST being the leading university in Pakistan. Mr Ahsan Iqbal was also apprised of NUST future plans. While acknowledging the University’s substantial pace, Federal Minister for Planning &

KARACHI: CEO Media West Pakistan Hasham Rathore, JS Group Chairman Ali Siddiqui, CE JS Group Kamran Nasir, Pak Media Come GM Nazir Ahmed, JS Bank Manager Syed Naved Rahman and others at an Iftar dinner hosted by JS marketing department. PR Development lauded the efforts of NUST management, faculty and scholars towards developing it as a centre of excellence in Pakistan. In his remarks, the Federal Minister also asserted on the need for promoting quality education and hoped other institutes of higher education to follow the precedent set by NUST. PReSS ReleASe

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