12-13 Business Pages (26-11-2013)_Layout 1 11/25/2013 11:31 PM Page 1
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BUSINESS Tuesday, 26 November, 2013
Asia should strengthen economies, financial systems: ADB report
Only he is successful in his business who makes that pursuit which affords him the highest pleasure sustain him. — Henry David Thoreau
Corruption in tDAp: Govt to shift heAD offiCe to islAmABAD FIA IS INVESTIGATING CASES INVOLVING MISAPPROPRIATION OF RS 1.27 BILLION COMMERCE MINISTRY’S SPOKESMAN SAYS SHIFTING OF HEAD OFFICE HAS NOTHING TO DO WITH CORRUPTION CASES ISLAMABAD
ISLAMABAD: Emerging East Asia countries should use the window of opportunity opened by the delay in US monetary policy normalisation to strengthen their economies and financial systems, the latest quarterly Asia Bond Monitor from the Asian Development Bank (ADB) urged. "A delay in US bond tapering gives the region a bit of extra time to make sure its economy and financial systems are resilient enough to face the likely market volatility ahead," said Iwan J Azis, Head of ADB's Office of Regional Economic Integration, which prepared the report. Emerging East Asia remains vulnerable to a shift in investor sentiment when the US eventually scales back its asset purchase programme and as it tackles still- unresolved questions over its government debt ceiling, the report warns. Volatile capital flows make it tougher for policymakers to manage the economies while looming tighter liquidity could push down asset prices, particularly in the property sector, undermining the health of financial firms with large holdings. The report's annual liquidity survey showed concerns about when the US would start to shrink its asset purchase programme was the main factor affecting local currency bond market liquidity. Respondents continue to point to limited investor diversity as the key factor holding back market liquidity. Although government bond trading desks remain the key drivers of trading in the region, the report noted that institutional investors such as pension funds, insurers, private banks, and asset management firms are becoming increasingly important. Other factors include limited hedging mechanisms, transaction funding, foreign exchange regulations and transparency, settlement and custody, and tax treatment. APP
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OLLOWING Prime Minister Nawaz Sharif’s directions to take stern action against corruption in the Trade Development Authority of Pakistan (TDAP), the government is now planning to shift the authority’s head office from Karachi to Islamabad. The Federal Investigation Agency (FIA) is already investigating the cases involving misappropriation of Rs 1.27 billion in the authority while interrogating its two former heads and three other officials.
According to sources, a summary for the shifting of the head office has been sent to the Ministry of Commerce for further discussion and consultation. A committee of the ministry would look into the issue and put it for final decision of the concerned authorities. The fresh corruption cases surfaced in the TDAP, which being the only trade promotional body has earned bad name to the country, has forced the ministry and concerned authorities to have a check/control on the illegal activities in the authority. Besides, the ministry officials have previously been interested in clipping wings of the TDAP since it was transformed into an authority from the former Export Promotion Bureau (EPB) with more financial autonomy. Being a body of the ministry, a row had also been witnessed between former CEs of TDAP and secretaries of the ministry. Through the fresh move a regional setup/office like the same in Lahore, Peshawar, Quetta, etc would be functional in Karachi while the authority’s top officials including chief executive, secretary and director generals would be working in the head office, Islamabad, sources claimed. With this move, the officials, staffs working in Karachi for years are now in great disarray that how they would be able to work with the authority in new city while shifting the whole families here. Besides, sources claim, the government will also be bearing huge cost for the shifting
of office and arrangement to be made to facilitate the affected officials/staffs. The authority has been in news since the mega scandals of disbursements of funds made under the export incentive schemes/subsidies in 2011 and 2012. The finance division had released Rs 1 billion in 2011 and Rs 2 billion in 2012 for these schemes. However talking to Pakistan Today, Mohammad Ashraf, a deputy secretary who is also the ministry’s spokesman said that the shifting of TDAP’s head office, which was under discussion at the ministry, has nothing to do with the corruption cases being investigated by the FIA. “The shifting of office, which is also not
12 Pakistani exporters set up stalls in Abu Dhabi exhibition ABU DHABI INP
Deputy Prime Minister of United Arab Emirates, HH Sheikh Mansoor Bin Zayed Al Nahyan inaugurated the Fourth edition of SIAL Middle East in Abu Dhabi. The largest Pakistani pavilion in Sial’s four years history was inaugurated subsequently by Syed Ahsan Raza Shah, Charge d’ Affaires of the Embassy of Pakistan. More than 1000 companies from over 30 countries were present in the event. The ceremony was attended by the exhibitors, management of SIAL Middle East, representatives of Abu Dhabi Food Control Authority, prominent retailers and wholesalers of Abu Dhabi and officers of Pakistan Embassy. In the impressive and prominently located green pavilion of Pakistan stalls of twelve leading exporters of rice, meat, cooking oil, beverages, spices and pulses were setup. This year’s participation was 100 percent, highest in last four years. Efforts of Embassy of Pakistan supported by Trade Development Authority of Pakistan
(TDAP) made this growth possible. SIAL is the region’s fastest growing platform for showcasing food, drink and hospitality industries. While addressing the Pakistani exhibitors, Ahsan Raza, Charge d’ Affaires of the Embassy of Pakistan highlighted that there was great demand of halal food in the Gulf countries and Pakistan with its large agriculture base had the potential to meet this demand. He praised consistent efforts of the Commercial Section of Embassy of Pakistan for promotion of exports to the UAE and successful coordination in setting up largest pavilion for promotion of food items export, especially to the rich market of Abu Dhabi. Pakistani exporters who participated in the event included Punjab Food Stuff Sialkot, Reem Rice Mills Lahore, Emirates Foods Industries Karachi, Agro Hub International Karachi, Tata Best Foods Limited, Karachi , KK Foods Pvt Ltd. Karachi, Faisalabad Oil Refinery Pvt Ltd, Shakarganj Food Products Ltd Lahore, Quice Food Lahore, Sufi Group of companies, Qarshi Group and Chappal Traders, Karachi.
at a serious forum so far, will be totally based on operational arrangements to facilitate the exporters,” he said, adding that there has been a demand of major players of export to have the head office in up country. As major units of industries like textile, leather, marble, rice and others are in Punjab and Peshawar, the head office of the authority here would be more helpful to the exporters. “As I am heading the team constituted by the ministry to look into the corruption cases, I confirm it that the shifting of office, if happens, has no connection with the cases of financial reported in the authority,” he added.
Programme launched to eradicate poverty KARACHI APP
A programme of eradication of poverty through entrepreneurship has been launched in the country. The project has been initiated by the Bank Alfalah in collaboration with the Acumen Fund. This was stated by founder and Chief Executive Officer (CEO) of Acumen, Jacqueline Novogratz and CEO of Bank Alfalah, Atif Bajwai, on Monday. They said that Bank Alfalah and Acumen have partnered to launch the programme based on a USD 40,000 grant as part of the Bank's CSR programme. With a view to impacting sustainable development, this may become a multi-year programme based on impact assessment at the end of the first year of the project, it was further stated. As part of this programme, Bank Alfalah will be providing multi-pronged support to Acumen's investee companies with the aim of positively impacting poverty alleviation. They also stated that Bank Alfalah's leadership team will be providing real time technical volunteer support in their respective areas of expertise by conducting a needs-gap analysis for Acumen's investee companies to address key business challenges.
IRAN NUCLEAR DEAL SHIPPING INSURANCE ELEMENT MAY HELP OIL SALES US GOVT FACT SHEET SAYS FINANCIAL SECTOR SANCTIONS REMAIN INTACT DUBAI AGENCIES
Iran's nuclear deal with the West is not intended to let more of its oil into the market, the White House said, but an easing of the ban on European shipping insurance may help smooth crude exports to its big Asian customers. Iran and six world powers reached a deal early on Sunday to curb Tehran's nuclear programme in exchange for limited sanctions relief. US and European Union sanctions that prevent energy companies from investing in
Iran, and have slashed Tehran's oil exports from 2.5 million barrels per day (bpd) to around 1 million bpd, remain in place. "In the next six months, Iran's crude oil sales cannot increase," a fact sheet posted by the White House on the US State Department's website on Sunday said. "Under this first step, the EU crude oil ban will remain in effect and Iran will be held to approximately 1 million bpd in sales, resulting in continuing lost sales worth an additional $4 billion per month, every month, going forward." In addition to having to reduce their purchases to win waivers from US sanctions, Iran's big oil customers in Asia have been put off importing even permitted volumes because of difficulties getting insurance for shipments. India's imports from Iran also dived in the first nine months of
this year as refiners cut purchases because European reinsurers added a clause that could mean claims arising during the processing of Iranian oil would not be met. The US government fact sheet says that financial sector sanctions, including many types of insurance, remain intact. But a senior western official said on Sunday that some relief on EU sanctions on oil shipping insurance was included in the deal. The agreement also suspends sanctions by the United States and the EU on several other sectors of Iran's economy in the initial sixmonth period. The relief, which the US State Department said is "limited, temporary, targeted and reversible," would potentially allow Iran to collect about $1.5 billion from resumption of trading gold and precious metal and resuming some trade for its auto and petrochemical exports sectors.
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In the business world, the rearview mirror is always clearer than the windshield. — Warren Buffett
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FOOD EXPORTS UP 6.85 PERCENT IN FOUR MONTHS COUNTRY EARNED $46.417 MILLION BY EXPORTING DIFFERENT VEGETABLES IN FIRST FOUR MONTHS ISLAMABAD
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OOD export groups from the country during first four months of current financial year grew by 6.85 percent as compared to same period of the last year. During the period from July-October 2013, different food commodities worth $1.311 billion exported as against the $1.227 billion exported in same period of last year. According the data of Pakistan Bureau of Statistics (PBS), rice exports from the country grew by 27.80 percent and reached to 882,132 metric tons valuing US$ 566.79 million, which was recorded at 711,393 metric tons costing US$ 443.50 million in the same period of last financial year. The export of basmati rice shrunk by 7.46 percent in first four months as 203,712 metric tons of
basmati rice worth $189.80 million was exported as compared to 213,197 metric tons costing $205.09 million exported in the same period of last year, the data revealed. However, exports of rice other than basmati swelled by 58.13 percent and recorded at 678,420 metric tons worth $376.99 million which stood at 498,196 metric tons of $238.40 million during first four months of last year. Meanwhile, fish and fish preparations exports increased by 19.16 percent during the period under review and about 48,729 metric tons of fish and fish preparation worth $117.65 million exports. The export of fish and fish preparations during first four months was recorded at 41,851 metric tons valuing $98.73 million, the data revealed. From July-October,
2013, fruit and vegetable exports grew by 37.98 percent and 28.85 percent respectively as about 171,926 metric tons of fruit valuing $115.28 million was exported as compared to 161,821 metric tons costing $83.55 million of same period last year. In first four months of current financial year, country earned $46.417 million by exporting different vegetables which stood at
81,296 metric tons worth $36.02 million of same period last year. Exports of leguminous vegetables (pulses) witnessed tremendous growth of 221.36 percent. About 3,620 metric tonnes of pulses worth $3.114 million were exported against 1,202 metric tons costing $0.092 million exports of last year, the data revealed. The other food commodities which recorded positive growth in their exports during the period under review included tobacco, 124.43 million, oil seeds, nuts and kernels by 84.29 percent, meat and m e a t preparations by 0.74 percent. T h e other commodities which witnessed negative growth in their exports in first four months of recent year included wheat by 78.99 percent, sugar by 14.15 and all other food items by 14.15 percent.
Honda motor company unveils various upcoming models of Automobiles and Motorcycles on the Press day at the 43rd Tokyo Motor show in presence of International and local Japanese media. A media delegation from Pakistan also witnessed the impressive unveiling ceremony. Addressing to the press conference President of Honda Motor Company Japan, MrTakanobu Ito said “Live outside the box” is the theme of the Honda booth for this motor show. This theme represents Honda's passion and strong belief toward the art of creating things which is not bound by conventional wisdom or past precedent. Our belief in living outside the box has been inherited by Honda associates from one generation to the next, and today, we would like to introduce our new sports models created based on such a challenging spirit and unique Honda inspirations. He introduced the next-genera-
tion super sports car, the NSX CONCEPT, which realizes both outstanding driving and environmental performance. NSX was developed in the pursuit of the joy of driving on a different level, the NSX will carve out a new era for mid-ship super sports car. Mr. Ito also introduced the
much-awaited next-generation minisports model, the Honda S660 CONCEPT. The Honda S660 CONCEPT features nimble and dynamic driving, outstanding stability and a dynamic design that are only possible with a mid-ship layout. This model embodies the freewheeling thinking of young Honda
engineers, who want to make a cool car that is unique to Honda. Another model introduced at the occasion wasAll new SUV named the VEZEL, The VEZEL is a completely new model that goes beyond the boundaries of automobile categories by fusing together multifaceted values at a high level, including the dynamic qualities of an SUV, the elegance of a coupe. The N-WGN a mini-vehicle was also introduced at the occasion, which balances everything at a high level, including spaciousness, safety and driving performance. The NWGN is a part largest selling mini vehicle Honda’s N Series in Japan’s market Also unveiled the world premiere of a new Street Muscle Cruiser, the GOLDWING F6C. This GOLDWING F6C adopts Honda's original 1800cc horizontally-opposed V6 engine. Other 18 new motor bike models were also displayed which will be launched in next year. PrESS rELEASE
Govt asked to enhance tax net RCCI PRESIDENT SAYS CHAMBER’S PRIME GOAL IS TO MOBILISE ALL MEMBERS TO PLAY THEIR DUE ROLE IN ECONOMIC UPLIFT RAWALPINDI ONLINE
The president of the Rawalpindi Chamber of Commerce and Industry (RCCI) Dr Shimail Daud Arain has
said that the chamber is striving hard to provide best facilities to the business community and highlight the problems face by the said community at every forum. The standing committees are the source of direct interaction for the members with the chamber to convey their problems. He was exchanging these views with the chairman and vice chairman of the standing committees of the RCCI in a meeting held on Monday. Group leader Sheikh Shabbir, Senior Vice President Malik Shahid Saleem, Vice President Muhammad Alam Chughtai, Former Presidents,
Member Executive Committee and other members of the Chamber were also present on the occasion. Dr Shimail Daud has said that chamber’s prime goal is to mobilize all the members to play their due role in economic uplift. He said that business community is sincere to endorse business activities but it is the duty of the government to facilitate them. He further said that chamber is bridging the gap between businessmen and the government. The RCCI president said that industry is facing immense problems and energy crisis is the biggest threat for the future development. He said that taxpayers are facing troubles
COMPANY Unilever FoodsXD Wyeth Pak Ltd Shezan InterXDXB Siemens Pakistan Pak TobaccoXD
OPEN 7190.00 4379.00 500.00 1100.00 369.00
HIGH 7227.21 4484.00 525.00 1156.51 376.00
LOW 7190.00 4379.00 500.00 1075.00 369.00
CLOSE CHANGE 7205.40 322.34 4442.00 171.41 525.00 25.00 1120.60 19.16 373.50 15.20
TURNOVER 60 580 20,700 13,050 38,200
1505.00 340.00 6120.00 154.00 320.00
1480.00 340.00 5737.60 146.70 320.00
1488.33 340.00 6030.00 147.88 320.00
-11.67 -10.00 -9.57 -6.24 -5.00
280 200 860 7,065,000 300
30.70 13.36 8.23 8.06 9.48
29.30 13.00 7.83 7.65 9.00
29.91 13.07 7.89 7.87 9.17
0.58 0.05 0.33 0.33 0.05
48,033,000 13,643,500 12,948,000 12,544,500 10,872,000
Major Losers Colgate Palmoliv Philip Morris Pak. Rafhan MaizeXD Engro Corporation Fazal TextileXD
1500.00 340.00 5737.60 153.75 320.00
Volume Leaders P.T.C.L.A Fauji CementXD P.I.A.C.(A) Lafarge Pak. Jah.Sidd. Co.
29.50 13.15 7.86 7.69 9.24
Interbank Rates USD GBP JPY EURO
PKR 108.0483 PKR 175.0059 PKR 1.0623 PKR 146.0705
Forex Australian Dollar Canadian Dollar China Yuan Euro Japanese Yen Saudi Riyal U.A.E Dirham UK Pound Sterling US Dollar
BUY
SELL
99.5 102.25 17.65 146.25 1.0701 28.85 29.25 175.5 109.05
99.75 102.5 17.9 146.5 1.0805 29.1 29.5 175.75 109.3
CORPORATE CORNER ACCA pakistan’s talent Gymnasium 2013
Honda unveils new models at 43rd Tokyo Motor Show ToKyo
Major Gainers
rather than non taxpayers. He demanded of the government to enhance tax net and reduce the burden of existing taxpayers. He said that basic purpose behind formulation of standing committees is to give direct access to members to communicate their problems to their apex body. “Every member of the chamber is invited to become the member of any standing committee of his/her choice to convey problems to the chairman of the committee and it is now Chairman committee responsibility to address the issue and Chamber play a facilitator’s role in this regard,” he said.
KARACHI: ACCA Pakistan organised Talent Gymnasium 2013 for ACCA Affiliates and Finalists. It was an exciting event which fulfilled dual objectives of honing professional skills of finance and accounting trainees and bringing together ACCA’s key employers and talented trainees on an interactive platform. The event started with welcome remarks by Mr. Rehan Uddin, Head of ACCA, Karachi who emphasized the importance of becoming work ready and a complete finance professional. This was followed by a powerful session conducted by Mr. Taimur Beiram Khan, Business Development Manager at ACCA Pakistan on how to build effective habits for workplace. There were presentation sessions by Karachi Electric Supply Company, Meezan Bank Limited, Elixir Securities, Mazik Global Inc and Arthur Lawrence. These employers shared their business models, recruitment cycles and details of successful ACCA Trainee Programmes in their respective organisations. Arthur Lawrence also conducted on spot interviews for their operations at end of the event. ACCA members Mr. Atif Anwar (EVP, EFU General Insurance Ltd) and Syed Muhammad Fahad, (VP Meezan Bank and Vice Chairman, ACCA Pakistan Members Network Panel also addressed the audience. PrESS rELEASE
pakistan state oil prevents oil theft worth millions KARACHI: Pakistan State Oil (PSO) unearthed a mud passage near the Lalpir-Kapco pipeline and prevented oil theft worth millions of rupees. Over the weekend, PSO security staff which was on routine patrolling duty along the Lalpir – Kapco pipeline noticed the presence of black slush and a pit near Sinawan close to the route of the aforementioned pipeline. Upon receipt of this information, the PSO depot officer hurried to the location for inspection purposes. To rule out any possibility of un-authorized or illegal activity, the Company decided to carry out excavation of the suspected area. In light of this decision, immediate arrangements were made for the excavation of the area. During the digging activity a 3 foot wide mud passage was discovered approximately 5 feet away from the oil pipeline. PrESS rELEASE
KARACHI: Education Fund for Sindh has committed funding of Rs 284.3 million to BRAC Pakistan for establishing 700 schools aimed at providing quality education in Sindh’s underprivileged communities. Seen in picture are EFS CEO Khawaja Adeel Aslam, BRAC Education Director Dr Safiqul Islam and BRAC Pakistan CEO Muzafaruddin. Pr