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BUSINESS Thursday, 31 October, 2013

SBP to phase out old design Rs 50, Rs 1000 banknotes ISLAMABAD: The State Bank of Pakistan has decided to phase out the old design banknote of Rs 50 and Rs 1000 denominations. The commercial/microfinance banks will stop issuance of old design banknotes of Rs 50 and Rs 1000 denominations with effect from November 1, said an SBP statement on Wednesday. However, the SBP said that these banknotes in circulation would remain legal tender till further order. The commercial/microfinance banks have been advised to accept these banknotes from the public by exchanging the same with banknotes and coins of all other denominations. Banks shall start surrendering the above old design banknotes in suitable lots to the offices of SBP Banking Services Corporation in due course. APP

LPG prices hiked by RS 7 per kg LAHORE: In another drone attack on the poor masses, the price of Liquefied Petroleum Gas (LPG) has been inflated by RS 7 per kilogram (kg). The notification for the price hike shall be made public by November 3. According to the media reports the global LPG price has inflated to 61 dollars per metric ton. With the RS 7 price hike the domestic cylinder would cost RS 80 while for the commercial cylinder an additional 320 Rupees shall now be required. Irfan Khokhar, chairman, LPG Association said the government should put in place a check and balance mechanism in relation to the price hikes while the ministry of petroleum should reflect on providing of a relief to the public. OnLinE

Stocks end higher; rupee weakens KARACHI: Pakistan’s main stock exchange closed slightly higher on Tuesday, pulled up by rises in energy stocks amid a dull trading session. The benchmark 100-share index of the Karachi Stock Exchange rose 0.15 percent or 33.94 points to 22,310.59. Most stocks fell although trading in Oil and Gas Development Ltd and Pakistan Petroleum Ltd helped the index to close with positive gains. Overall, volumes remained dull and activity was confined to mid cap stocks, dealers said. The Oil and Gas Development Co Ltd rose 1.21 percent to 260.99 rupees while Pakistan Petroleum Ltd was up 2.47 percent to 203.50 rupees. The rupee ended weaker at 106.78/106.83 against the dollar, compared to Tuesday’s close of 106.57/106.63. Overnight rates in the money market rose to 8.25 percent from Tuesday’s close of 7.75 percent. STAFF rEPOrT

Just because something doesn’t do what you planned it to do doesn’t mean it’s useless — Thomas A. Edison

nEw sro of moc

Export of gEms and jEwEllEry halts complEtEly ISLAMABAD GHULAM ABBAS

The new rules made by the ministry of commerce to restrict the imports/export of gold last month have caused a complete halt of export of gems and jewellery. The new rules are much restrictive that no exporter/importer is able to go for the business thus causing a total closure of trade in the sector, sources in the jewellery industry told Pakistan Today. The new SRO 760(I)/2013 for import of gold and export of Jewellery issued on September 2, 2013, by the ministry has introduced many amendments and changes in the set rules to restrict gold business. According to it, the imports must be turned around into jewelry and exported within 120 days and has more or less doubled the amount of value that must be added in manufacture. Sales must be officially recognised by legal authorities in importing countries and Pakistan

missions there. Besides, only 25 kilograms of precious metals including gold, silver and platinum can be imported on a revolving basis and could not be used in the domestic market. According to sources in the All Pakistan Gem Merchants and Jewellers Association (APGM&JA), only one importer has so far tried to import of gold while going through all restrictive rules/conditions but he too is unlikely to repeat it near future. The fresh step taken by the ministry has practically shut down the industry affecting thousands of people associated with the sector. The industry representatives have approached the concerned authority of the Trade Development Authority of Pakistan (TDAP) to resolve issues they are now facing under the fresh SRO. After a series of meeting, the TDAP through a letter informed the ministry that the export

of gems and jewellery has registered a massive declining trend since issuance of the SRO. Exports under the new SRO has completely suspended as almost all exporters find it very difficult to fulfill requirements on imports and exports of gold jewellery. Exporters are of the view that until certain amendments are not made in the SRO 760, export of gems and jewellery is not possible. The TDAP through a recent letter, has suggested the ministry that as per para 9 of the SRO 760, wastage norms are actually manufacturing loss while making jewellery gold which is 2 percent of gold content of jewellery by weight for plain gold jewellery and 10 percent of gold content of jewellery by weight for studded jewellery. Since these wastage norms are

Pak to generate power through gasification plant ISLAMABAD: Pakistan’s first gasification plant will start generating low cost electricity from next year, said the head of Thar Coal Underground Gasification Project Dr Samar Mubarakmand in an official press release on Wednesday. “The current government has released the second tranche of 10 percent of the plan enabling us to work on fast track in all important low-cost electricity generating project,” said the scientist and the Coordinator General of Thar Coal Project who participated in an international conference in China. “If all goes well, we will be able to demonstrate electricity generated from gasification by October-November next year,” he added. The scientist also visited six cities in China where coal mines are located, and inspected the

the government has released the second tranche of 10 percent of the plan enabling us to work on fast track in all important low-cost electricity generating project. thar coal Underground gasification project coordinator Dr SAMAr MUBArAkMAnD

factory where the state of the art horizontal drilling machine - an important component of gasification project - was being manufactured. Thar Coal mines are constituted of 13 series

of mountains blessed with rich treasure of coal and the government has allocated block V in Thar to Dr Mubarakmand for this important project. Dr Mubarakmand said he had invited gasification experts from Uzbekistan and China to Pakistan. The coal gas will be transported to booming provinces of Zhejiang in east China and Guangdong in the south through pipelines, according to the research paper by Dr Mubarakmand submitted in the conference. The area has estimated coal reserves of 390 billion tones and proven reserves of 213.6 billion tones, the largest coalfield in China. Pakistan has been facing energy shortage that could be reduced once the Thar project starts producing electricity from coal through underground gasification. OnLinE

POL CORRUPT OFFICIALS DEPRIVE TRUE LAND OWNERS ISLAMABAD The Pakistan Oilfields Ltd (POL) officials posted at the Pindori Oil and Gas Fields are ripping off land owners by making payments to individual other than the actual owners. The affected land owners have been sending in complaints to the POL officials, including the company’s chairman, but no remedial action has so far been initiated to take the criminals to task. The Pakistan Oilfields Ltd has acquired land on lease from various land owners in villages Pindori, Mehmooda, Wains and Chak Beli Khan in tehsil and district Rawalpindi to set up oil and gas fields. By virtue of the lease agreement,

the POL makes yearly payments to the land owners on the basis of the yield capacity of crops that could have been grown at each piece of land. However for the last many years the concerned officials have started corrupt practices by depriving the actual land owners from their legal right of receiving rents. There is, for instance, a case of well known senior journalist and researcher, Ghani Jafar, currently employed as Director/Editor at the Institute of Strategic Studies Islamabad. He first came to know about misappropriation of his dues by the POL officials posted at his native village Pindori last year. He personally handed a letter to Chaudhry Akhtar, Assistant Supervisor, for onward

submission to the Administrative Officer, POL Oil and Gas Fields, Village Pindori, way back on November 8, 2013. The said letter informed the administrative officer that Ghani Jafar had taken over the management of his land in the relevant villages from Haji Nisar and that the latter was no longer entitled to receive any payments from the POL on his behalf. It further requested that Ghani Jafar be provided a copy of the complete payments made by the relevant land by the POL from 1999 to date. Despite repeated reminders, no action has been taken on his request. He is not alone to have suffered losses at the hands of the corrupt POL officials. Another notable case concerns the nambardar of

Pindori, Malik Pervaiz Akhtar. He, too, has written several applications to the POL chairman stating that a piece of land owned by him and measuring two kanal, 16 marla (khasra number 1834) had been illegally acquired by the POL which has been making payments to someone else for use of the land for POL’s well number nine. If the present government of Punjab headed by Chief Minister Shahbaz Sharif is serious about the incumbent chief minister’s preelectoral pledges of ending corruption in the province, the illegal and corrupt practices of POL officials at Pindori oil and gas fields should be immediately stopped, and those involved in the criminal acts must be taken to task.

optional but not mandatory for exporters to avail these norms for making export of gold jewellery, the ministry was requested to issue clarification for the FBR that these wastage norms are prescribed up to maximum level and exporters can avail these norms at lower than prescribed level. Custom can not enforce norms at maximum level if exporters are not willing to utilise higher side norms. The authority has, however, appreciated others steps taken to discourage the malpractices in the gold business and encourage actual exporters/importers in the industry. However, sources claimed that the ministry had not accepted the suggestions so far.

Islamic bond is UK’s latest revival Back to the future. It was April 2007 when the UK government announced it was looking at issuing Islamic bonds. The global financial crisis intervened, and the bonds never emerged. Now the plan has been resurrected, as part of a push to draw new business to London and underpin its status as a global financial center - another reminder that in some ways, the crisis has changed little. Islamic bonds are backed by assets on which investors agree to share risks and returns, receiving a proportionate payment rather than interest, banned under Shariah law. True, the new plan to issue such sukuk securities is much smaller than the previous one. Then the government envisaged a £2 billion ($3.2 billion) issuance program, and even caused some concern about whether it might affect the wider market for UK government debt. That is no longer a worry, given the government is looking at a £200 million fiveyear bond that represents a drop in the ocean of net gilt issuance this financial year of just under £100 billion. Some concerns remain, however: The choice of assets may yet be politically sensitive, and some doubts remain over whether an issue’s Shariah compliance is something investors can rely on. Rather than provide the government with funding or diversifying its investor base, the hope is that this issue might encourage others. It is a bet on future ancillary business coming to London: listings, legal services, financial advice and investment. Islamic finance is undeniably a growth area, as is trade in the Chinese yuan, another area where the government believes London’s standing could be enhanced. But the UK issue will be small relative even to issues from Middle Eastern banks. And while growth rates are fast, that is because they are from a relatively low base: global Islamic banking assets stood at $1.3 trillion in 2011 and are set to rise to $2 trillion by 2014, Ernst & Young thinks; euro-zone banks alone have assets of €31.4 trillion ($43.2 trillion). Global Islamic debt issuance was just $36.9 billion in 2012, Thomson Reuters says. The UK is putting down a marker in aiming to be the first Western nation to issue a sukuk. nEWS DESk


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An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage — Jack Welch

imf mission rEviEws rEforms approvEd by its board T ISLAMABAD

STAFF rEPOrT

HE International Monetary Fund (IMF) Mission held a plenary meeting with the representatives of the government of Pakistan from the ministry of finance and other related ministries and agencies on Wednesday. The mission is in Pakistan to conduct first quarterly review of the

reforms under the Extended Fund Facility (EFF) approved by the IMF Board on September 4, 2013. The IMF had approved a loan of US $6.64 billion and an amount of US 544.5 million had already been released as first tranche to Pakistan. The economic reforms program introduced under the EFF envisages strengthening macroeconomic and structural policies to shore up confidence, reduce economic imbalances, and foster sustained inclusive

analysts warn difficUlt months ahEad as imf tEam visits pakistan former adviser to fm says govt allowed tax concessions contrary to imf conditions

growth and employment generation. The meeting was attended by the officials of ministry of finance, commerce, water and power, petroleum and natural resources, privatization, Securities and Exchange Commission of Pakistan and the federal board of revenue. During the meeting, discussions were held on implementation of various reforms under the EFF. The mission appreciated the progress on achieving the performance criteria, indica-

KARACHI: An International Monetary Fund team is visiting Pakistan to monitor progress on reforms tied to a $6.7 billion loan package, with analysts warning of difficult months ahead. The IMF paid the $540 million first installment of the three-year deal in September, but future payments are dependent on the completion of tough economic reforms measured at quarterly reviews. Pakistan, battling a homegrown Taliban insurgency, is blighted by a dysfunctional energy sector, with severe power shortages limiting GDP growth. Sayem Ali, a senior economist at the Standard Chartered Bank, stated that progress had been made on certain benchmarks. The fiscal deficit for the first quarter was brought down to 1.5 per cent of GDP, against an IMF target of 1.7 per cent. Reducing Pakistan’s fiscal deficit —

Lala Textiles offers EPZA exhibits diversity of choice improved exports in winter fashion performance during 1st Quarter FY 13-14 KARACHI PrESS rELEASE

KARACHI PrESS rELEASE

Following the launch of their winter collection ‘La Femme’, renowned textile house Lala Textiles has introduced three new exclusive winter collections; ‘Afreen Exclusive Winter Collection’, ‘Sana & Samia Khaddi Collection Vol 3’ and their latest bale collection ‘Turkish Linen’. The ‘Afreen Exclusive Winter Collection’ is an amalgamation of eastern and traditional designs portraying the rich cultures of the sub-continent with a modern twist. Using slub khaddi, cotton and satin, the ‘Afreen Exclusive Winter Collection’is currently available in 7 modern designs. The ‘Sana & Samia Khaddi Collection Vol 3’ features 10 exclusive designs in 2 colourways, consisting of elegant designs in varied colour combinations, which are ideal for the upcoming winter season. The collection focuses on classic designs while emphasizing embroideries that enhance the original Sana & Samia design ethos. Available in bales, Lala’s ‘Turkish Linen’ collection comprises 11 designs in 2 colourways. All three collections are available at all leading retailers nationwide.

Export Processing Zones Authority EPZA has demonstrated improved performance during the first quarter of financial year 2013-14. In the month of July Exports from EPZA registered a significant increase of 33% as compared with the figures of last year for the same month. In July 2012-13 Export figures from EPZA stood at US$21.756 million which increase to US$ 29.041 during the same month of FY 201314. In the month of August, Exports from EPZA registered an increase of 0.24% as compared with the figures of last year for the same month. In August 2012-13 Export figures from EPZA stood at US$24.164 million which increase to US$ 24.223 during the same month of FY 2013-14. In the month of September, Exports from EPZA registered an increase of 12% as compared with the figures of last year for the same month. In September 2012-13 Export figures from EPZA stood at US$24.752 million which increase to US$ 27.729 during the same month of FY 2013-14.

Education ministers at WISE Explore Innovative Practices in Policy Making DOHA PrESS rELEASE

Education Ministers from across the globe met at the World Innovation Summit for Education (WISE) in Doha, Qatar, to discuss best practices and the importance of promoting innovation in education. Chaired by the Minister of Education and Higher Education of Qatar, H.E. Mohammed Bin Abdul Wahed Ali Al Hammadi, the inaugural Ministers Session included 16 leading policymakers from territories including Japan, Nigeria, Cuba and the European Com-

tive target and structural benchmark agreed for the first quarter of the program. During the meeting, the course of action for complying with various performance indicators and structural benchmarks also came under discussion. During its stay, the mission will hold detailed consultations with the respective ministries and agencies on the economic reforms program under the EFF and conclude its review by November 7, 2013.

which neared nine per cent of gross domestic product (GDP) last year — to a more sustainable level was a key aim of the IMF package. The Washington-based lender envisages the deficit falling to 5.8 per cent of GDP this financial year, and 3.5 per cent by the end of the program. However, the government has missed the target for foreign exchange reserves by $300 million, which have fallen alarmingly this year, with just $4.2 billion dollars held. Saqib Sheerani, a former advisor to the finance minister, warned of tough times ahead as Prime Minister Nawaz Sharif’s government tries to increase Pakistan’s meagre tax receipts. “There are some tax concessions that the government allowed recently, and they are contrary to the conditions,” Sheerani said.AGEnCiES

mission. The informal meeting was a transnational effort to share best practices in education from policymakers around the world who discussed a variety of ideas – from fostering innovation through curriculums, to innovative funding mechanisms. The session was hosted by the Chairman of WISE, H.E. Sheikh Abdulla bin Ali Al-Thani, Ph.D., who said: “WISE was established to bring education to the top of the global agenda as a key to building secure and thriving societies. This meeting, in which the education ministers discussed their ideas on innovative and effective policy-making, is a step toward achieving that goal.” He added: “WISE is a multisectoral platform where decision-makers interact directly with a great variety of education stakeholders, providing rich opportunities for partnerships with the goal of putting the best, most effective practices into action.”

02

BUSINESS B Thursday, 31 October, 2013

Major Gainers company opEn Wyeth Pak Ltd 4100.00 Bata (Pak) 1700.00 Bhanero Tex. XD 375.00 Service Ind.Ltd XD 281.99 Murree BreweryXDXB 286.33

high 4305.00 1785.00 393.75 296.08 300.40

low 4225.00 1725.00 393.75 282.99 290.00

closE changE 4305.00 205.00 1785.00 85.00 393.75 18.75 296.08 14.09 299.75 13.42

tUrnovEr 1,040 4,160 100 15,800 2,500

5050.00 910.00 126.65 112.50 246.75

5050.00 900.00 126.60 110.16 239.50

5050.00 900.00 126.62 110.90 240.11

-196.67 -14.78 -6.63 -5.05 -4.01

20 950 500 12,400 407,100

27.24 8.51 12.94 22.75 10.94

26.50 7.33 12.31 21.70 10.46

26.98 7.35 12.35 22.41 10.51

0.53 -0.98 -0.16 0.54 -0.23

16,679,500 14,550,000 12,115,500 8,179,000 6,929,000

Major Losers Rafhan MaizeXD Siemens Pakistan J.D.W.Sugar Mehmood Tex XD Lucky Cement XD

5246.67 914.78 133.25 115.95 244.12

Volume Leaders P.T.C.L.A Lafarge Pak. Fauji CementXD Bank Al-Falah B.O.Punjab

26.45 8.33 12.51 21.87 10.74

Interbank Rates USD GBP JPY EURO

PKR 106.4734 PKR 171.9759 PKR 1.0937 PKR 146.5287

Forex Australian Dollar Canadian Dollar China Yuan Euro Japanese Yen Saudi Riyal U.A.E Dirham UK Pound Sterling US Dollar

bUy

sEll

101.75 102.75 17.25 144.75 1.087 28.1 28.8 171.25 106.5

102 103 17.4 145 1.18 28.35 29.05 171.5 106.75

KARACHI: Consul General of Turkey Murat Mustafa Onart hosted a reception on the occasion of the 90th Anniversary of the Proclamation of the Republic of Turkey at his residence. Picture shows Adviser to the Chief Minister Rashid Rabbani, Special Assistant Waqar Mehdi, MPA Sharmila Farooqui, TV Artist Shazia Akhtar and Iftekhar Hussain. Pr

Pakistani companies in Iraq exhibition attract int’l buyers KARACHI PrESS rELEASE

It was a wise decision taken by the Trade Development Authority of Pakistan (TDAP) to put up a Pakistani pavilion in the Project Iraq exhibition which concluded in Erbil on Oct 31st. 6 stalls in the Pakistani pavilion displayed the country’s potential for the export of construction materials in Project Iraq which is an exclusive B2B exhibition. The event begun with its customary opening ceremony, attended by high ranking officials and dignitaries including Kameran Ahmed Abdullah, KRG’s Minister of Construction and Housing, Falah Mustafa, Head of KRG’s Foreign Relations Department and Nawzad Hadi, Governor of Erbil in addition to ambassadors, consuls. On this occasion, Kameran Ahmed, KRG’s Minister of Construction and Housing announced that the opening of such annual exhibitions, the 6th of its kind in the Kurdistan region helps optimize the role of the private and public sectors in reviving the construction sector and modernize the economic infrastructure of the Kurdistan region. This year, Project Iraq features the participation of more than 27 countries including Armenia, Spain, Germany, UAE, Ukraine, Italy, Iran, Pakistan, and many others. 15 of these countries participate with official national pavilions sponsored by corresponding official bodies and organizations in their countries.

ISLAMABAD: Loechai Jantarasombat, Deputy Head of Mission The Royal Thai Embassy Islamabad, addresses the audience during Thai Culture & Food Festival at Marriott Hotel Islamabad arranged by Hashoo Foundation Pakistan and The Royal Thai Embassy Islamabad. Pr

KARACHI: Dawlance in collaboration with United Sales Limited conducted live microwave oven cooking show with celebrity brand ambassador Chef Mehboob. Also seen in the picture are Col Fazal Rehman, USL SVP Receivables and Hadi Raza Vazir, Dawlance Microwave Oven category manager. Pr

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