Briefs Low oil prices new challenges for Saudi economy DUBAI—Falling oil prices may “have slowed down” some of the economic decisions in oil-giant Saudi Arabia, according to an investment expert. However, no projects have been halted so far, and no economic impact, if any, is expected to be seen before the second half of the year, said Francesco Maria Pavoni, Managing Director, Global Executive Committee, at Value Partners, a consultancy group that does majority of its work in Saudi Arabia. Value Partners, a Hong Kong-based asset management company, is the largest hedge fund in Asia. The company was founded in 1993 as a boutique firm by the present Chairman & Co-chief investment officer Dato’ Cheah Cheng Hye, and businessman Yeh V-nee, a non-official member of the Executive Council of Hong Kong from 2009 to 2012. “Saudi is a large and sizeable market, but … it is at a crossroads due to the oil prices putting economic, international and political relations in stress,” said Dubaibased Pavoni in an interview with Gulf News. Oil prices have reached their lowest levels since 2003, reaching $27 (Dh99) per barrel in January. After some recovery, the prices slipped again below $35.00. With a production of nearly 10 million barrels per day, Saudi Arabia is the biggest oil producer and exporter among the member states of the Organisation of Petroleum Exporting Countries (Opec). Asked about the impact of the falling oil prices on the business in Saudi Arabia, Pavoni said “in some selected cases, ‘affected’ means we have some businesses where maybe some of the decisionmaking is slowed down, but none have been truly affected so far.”—Agencies
1957 Ferrari fetches $35m PARIS—A legendary 1950s Ferrari has fetched a world record 32 million euros ($35 million) at auction. Applause broke out after the hammer came down on the bidding for the 1957 335 S Spider Scaglietti at the Artcurial auction house just off the Champs-Elysees. In a sale that generated interest from around the world, the race car fetched 28 million euros plus premiums and taxes taking the overall price to just over 32 million euros. The Spider — which beat the record set in 2014 when a 1962 Ferrari 250 GTO sold for 28.9 million euros — finished sixth in the Sebring 12 Hours race in 1957 and second in the Mille Miglia 1,000-mile road race in Italy. The car was later returned to the factory to have its engine size boosted from 3.6 to 4.1 litres — boosting power from 360 to 400 horsepower, allowing a top speed of 300 kilometres an hour. The Ferrari enabled the Italian manufacturer to win the Constructors’ World Championship title in 1957. The identity of the purchaser of the Spider was not revealed following Friday’s deal but is US-based, according to Matthieu Lamoure, director-general of Artcurial motorcars. “Clearly, we won’t soon forget,” Lamoure told journalists after the hammer came down on the record sale, for which bidding opened at 20 million euros. The sleek machine had belonged to the family collection of the late French racing driver Pierre Bardinon, who died in 2012. The legendary British driver Mike Hawthorn drove the Spider in the Le Mans 24hour race in 1957.—AFP
The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. — Peter F Drucker
Pak ideally located for 3rd country trade: Tanveer STAFF REPORTER KARACHI—Geographically Pakistan is ideally located for the third country trade and to those countries which are landlocked, said Minister for Defence Production, Rana Tanveer Hussain. He was speaking as chief guest at the First Global Edible Oil Conference (PEOC) in Pakistan here on Sunday. The Minister complimented the organisers for what he called taking a great initiative to hold this global moot. Rana Tanveer said he would encourage the country’s associations to suggest ways and means to supply end-products like Ghee and cooking oil to landlocked countries which will give Pakistan additional markets for export of end-products. He also pointed out that Pakistan is a huge market for imports of edible oil and oilseeds. “Our total requirement is around 3.5 million tons per annum,” he added. The Minister was of the view that since “our indigenous production is very slow, Pa-
kistan has to remain dependent on the import of edible oils and oilseeds. The government is undertaking efforts to increase the local cultivation”. He further stated, “our priority crops are cotton, wheat, rice and sugarcane.” The government do increase support price for the farmers to grow more cotton, rapeseed and sunflower seed locally, he added. Rana Tanveer was hopeful that in the time ahead the local production will also increase. He said, “We are fortunate to have excellent logistics for the import of edible oils, we have seaports - Karachi Port and Port Qasim. “Gwadar which is the third one, is progressing well and will be a future destination for import of oils.” The Minister said that energy, betterment of law and order and infrastructure are the priorities of the government under the leadership of Prime Minister Muhammad Nawaz Sharif. To another question, he said PIA is a national organisation and the government is tak- KARACHI: Federal Minister for Science and Technology Rana Tanveer Hussain visiting a stall after inauguration of ceremony of Pakistan Edible Oil Conference here on Sunday.—PO photo ing steps for its betterment.
Business community welcomes successful IMF review ISLAMABAD —The business community of Rawalpindi and Islamabad, Sunday, hailed successful 10th review of the three-year Extended Fund Facility (EFF) programme by the International Monetary Funds (IMF). The review would lead to the release of 10th tranche of $ 500 million under the $ 6.4 billion EFF, which was a great achievement for the government, Islamabad Chamber of Commerce and Industry (ICCI) President Atif Ikram Sheikh said. He said the successful negotiations with the IMF would have positive effect on the country’s economy. The IMF’s approval for release of the tranche proved that the government had adopted sound economic policies and created a conducive environment for business community, he added.
Vice President of Federation of Pakistan Chambers of Commerce and Industries (FPCCI) Zafar Bakhtawari said the successful negotiations with the IMF on 10th review would revive the confidence of business community in the government policies. The release of $500 million tranche would not only help enhance the foreign exchange reserves but also attarct investors from abriad, he added. Former ICCI President ICCI Muzzamil Hussain Sabri said for the first time in the country’s history that a government had carried out steps to benefit the businessmen. The successful review would enhance the trust of both local and foreign investors in Pakistan’s economy, he added.—APP
Chicago Stock Exchange to be sold to a Chinese group CHICAGO—The Chicago Stock Exchange an- review of strategic alternatives for the exnounced on its website that it has entered into a definitive agreement to be acquired by an investor group led by Chongqing Casin Enterprise Group (Casin Group). The Board of Directors of Chicago Stock Exchange has unanimously approved the transaction, the announcement said. But, it still needs to get regulatory approvals, and the final acquisition is expected to close in the second half of 2016. The terms of the transaction have not been disclosed. Chicago Stock Exchange CEO and President John Kerin said the acquisition is the best outcome for the clients, shareholders and the trading community as a whole “after an in-depth
change”. It is learned that the Chinese company will preserve current business operations and proprietary trading platforms of Chicago Stock Exchange, and the management team will remain in place upon the closure of the transaction. Casin Group, headquartered in Chongqing, is a leading diversified holding company in China that has investments in financial services, real estate and environmental services. It would be the first U.S. stock exchange being purchased by a Chinese company. The 134-year-old stock exchange now handles about 0.5 percent of U.S. stock trading.—Xinhua
‘Export deal with Indonesia to revive sinking rice sector’
IBP organizes LEAD 2016 Pakistan K ARACHI —The LIVE SIMULCAST of LEAD 2016, from Nashville, Tennessee, USA broadcasted exclusively by The Institute of Bankers of Pakistan (IBP) in collaboration with Knowledge Now came to its conclusion. The mega event turned out to be a huge success as anticipated with over 150 top level participants, from all across Pakistan, the event was a true reflection of matchless leadership and management. Saeed Ahmed Acting Governor State Bank of Pakistan chaired the auspicious occasion. In his speech, Saeed Ahmed emphasized the importance of leadership and how it can augment and play a pivotal role in the success of an organization or a country. He emphasized that a true leader must have a clear vision with a wish to lead. The speaker panel was a contrast of high level renowned personalities, locally and globally. Saad Amanullah Khan, Mr. Shahid Zaki and Dr. Abdul Bari Khan from the local panel talked about interesting topics such as talent acquisition challenges in global environment and comparison of strategic leadership between NPOs and Non-NPOs. The international Panel had many prominent personalities as well namely, Devin C. Hughes, Arthur Bloom and Stephen M. R. Covey who addressed on the concept of building global leaders, and leveraging their skills of advanced decisions making.—PR
ISLAMABAD—Patron Islamabad Chamber of focus of exporters on profit and availability of Small Traders Shahid Rasheed Butt on Sunday lauded the government for 4-year rice export deal with Indonesia which will bailout the troubled sector and stabilise prices at home. He demanded more long and short term agreements with other countries to boost the rice sector which is facing problems since some tears. Shahid Rasheed Butt said that export of rice to Indonesia will boost overall exports to 4.6 million tonnes which will be a record for which credit goes to the government. Pakistan’s export forecast has recently been raised by 0.1m tonnes in the wake of a deal with Indonesia. He said that reasons behind crisis in rice sector include high production cost, too much
Indian rice on low rates. Local exporters want to sell rice at 950 to 1100 dollars per tonne while Indians offer prices as low as 720 to 850 per tonne because of the low production cost and hidden subsidies. India’s move to sell basmati at lower prices had taken a toll on Pakistan’s exports but our exporters remained unwilling to bring down their prices, said Butt. The veteran business leader said that Iran is another promising market where Pakistani rice is in great demand but payment mechanism continue to discourage exporters. He said that India will be a major competitor to Pakistan in the Iranian market for which exporters and government needs to make an effective strategy.—NNI
Price controls fuel illegal trade in Venezuela CARACAS —Venezuela’s President Nicolas fortunately, the only loser is the consumer.” Maduro is struggling to deal with an economic slowdown that has been partly blamed on the Socialist government’s policies, including a complex exchange-rate system. The Venezuelan trade ministry says it is being corrected in the latest attempt to bring down one of the highest inflation rates in the world. But price controls have only boosted illegal trade. Miguel Perez, an illegal food trader, says: “We work directly with the Chinese shop-owners who sell us the subsidised goods for a profit. We turn around and re-sell them for more. Un-
Government subsidies, in place for more than a decade, have created the perfect breeding ground for a black market. And with inflation wresting value from salaries, more and more Venezuelans are joining Perez’s illegal line of business. So much so, that a new word - bachaqueros - has even been coined for this new breed of entrepreneurs which comes after a native ant. Like their namesake, the illegal traders work hard, and usually at a small scale. “I don’t see it as a crime, but I do see it as a deterioration of society, because in the long-run we are all harming each other,” says Perez.—Agencies
Iran’s oil sales to Europe above 300,000 barrels D UBAI —Iranian Oil Minister Bijan
KARACHI: Wajahat Hussain CEO UBL presenting UBL Excellence Award to Ameena Saiyid OBE. MD Oxford University during 7th Karachi Literature Festival at Beach Luxury Hotel.—PO photo
Zanganeh said that Iran’s crude oil sales to Europe after the lifting of international sanctions on Tehran had already reached above 300,000 barrels, according to the ministry’s news agency. Iran’s oil exports, which had peaked at more than 3 million barrels per day (bpd) in 2011, fell to a little more than 1 million bpd after tougher sanctions were imposed in 2012 because of its nuclear programme. After the rubber-stamping of the nuclear deal with world powers last year, however, Tehran has ordered a 500,000 bpd increase in oil output.
“Based on the contract signed between the National Iranian Oil Co and France’s Total, it was agreed that Total will buy 160,000 bpd of crude oil from Iran to be delivered in Europe,” Zanganeh was quoted as saying by news agency SHANA, adding that the contract would be finalised on Feb 16. He also said representatives of Italy’s Eni would visit Iran in near future to discuss a contract for buying 100,000 barrels of crude oil. “Eni has voiced its interest in one of Iran’s fields which will be treated like the agreement reached with Total,” he said.
Iran’s oil minister said Italian refiner Saras was interested in buying 60,000 to 70,000 barrels of crude oil from Iran. Tehran is sweetening the terms it offers on oil development contracts to draw the interest of foreign investors deterred by sanctions and low crude prices, as its pragmatic president seeks to deliver on his promise of economic recovery. The new contracts, which include those in the upstream exploration and development sectors are expected to attract more than $40 bn in foreign investment.—Reuters
Experts call for legislation to protect women labourers’ rights I SLAMABAD —Labour rights activists women workers employed in different women workers should be given their due sector rapidly. and experts have urged government to legislate for the rights of formally Home Based Workers (HBWs), Domestic Workers (DWs), factory workers and other women workers employed in different sectors. They said that that government had the mandate to work for welfare of labour and their families and to align national labour laws with the Pakistan’s international obligations on labour standards. National Trade Union Federation Pakistan (NTUF) Deputy General Secretary, Nasir Mansoor has urged to legislate for the rights of formally own Home Based Workers (HBWs), domestic workers (DWs), factory workers and other
sectors. He said that it was imperative that the government should immediately determine the minimum wages for DWs, define terms of their employment and ratify the ILO Convention C-189 that talks about their rights. Syeda Ghulam Fatima, general secretary of the Bonded Labour Liberation Front Pakistan (BLLF) said women’s empowerment could not be achieved without economic empowerment. “There is a need to identify the barriers to women’s economic empowerment, and find ways to remove them”, she added. She said that millions home-based
rights as per the constitution and labour laws. Fatima, however welcomed the action against brick-kiln owners, terming it a wise decision by the government. She lauded government for constituting Vigilance Committee (VC) to address issues of child labour at brick-kilns across the country. Appreciating the new law in Punjab regarding child labor at brick-kilns, she said the District Administration should adopt and implement the law in letter and spirit. Zehra Khan, Labour rights expert said in Pakistan, the economy had been shifting from the formal to non-formal
She said that all these basic rights that should had been given to them as per the constitution of the country, labour laws and different international labour conventions and standards, were being denied. Bangle Workers Welfare Association Union General Secretary Jameela A Latif told APP that tripartite labour conferences should be held in all provinces assuring the participation of the representatives of the federation of the homebased women workers. The federal government was functioning in close coordination with the Provincial Governments to revive new labour and employment laws which were
on its concurrent legislative list, an official of Ministry of Overseas Pakistani and Human Resource Development told APP. As the subject of labour and employment under the Constitution of the Islamic Republic of Pakistan, 1973 is on the top priority of the Government, he said. He said that under the Rules of Business, 1973 it has the mandate to seek employment opportunities for Pakistanis abroad, work for the welfare of labour and their families, within Pakistan as well as abroad and coordinate with provincial governments to align national labour laws with the Pakistan’s international obligations on labour standards. —APP