Currency USA
Buying
Selling 104.40
104.20
UK
148.82
148.53
Euro
117.58
117.35
Canada
80.80
80.65
Switzerland
108.27
108.06
Australia
77.17
77.02
Sweden
15.55
12.53
Japan
0.9991
0.9972
Norway
12.50
12.48
Singapore
77.38
77.23
Denmark
15.81
15.78
Saudi Arabia 27.84
27.78
Hong Kong
13.45
13.43
China
15.85
15.82
Kuwait
346.53
345.87
Malaysia
25.48
25.43
Newzealand
73.58
73.44
Qatar
28.68
28.62
UAE
28.42
28.37
Kr Won
0.0891
0.0889
Thailand
2.959
2.953
1.7m tonnes ... From Page 13 that only 64,000 tonnes mangoes were exported in 2015 against the 120,000 tonnes export in 2013. He said this was the “lowest export” in last five years. He added that it was the responsibility of the government and exporters to plan a vibrant and comprehensive policy to ensure higher exports. He also advised mango growers to maintain quality of the fruit to be able to get proper price in national and international markets. Exporters had set a target of 100,000 tonnes export this year with an expected earning of over $75 million foreign exchange for the country, he added. He said that exporters should try to tap new markets such as China, Russia, Iran, Belarus and Middle East countries, besides catering to traditional markets. “We need to focus on research and development for improving quality of fruit as per demand in international markets,” he said. Meanwhile, All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association president Waheed Alam hoped 35000 ton increase in mango exports this year.—APP
Opec’s woes ... From Page 13 Libyan output remains just a fraction of the 1.6mn bpd pumped before the toppling of Muammar Gaddafi in 2011. The nation pumped 270,000 bpd in May, a decrease of 80,000 from the previous month as a dispute between rival governments in the west and east halted tanker loading at the port of Hariga for several weeks. Many of the country’s oil fields and export terminals are in the hands of armed groups with competing interests. In Venezuela, a severe economic crisis brought about by the slump in oil prices is making it difficult for the state oil company to pay its contractors for work necessary to sustain output, the IEA said. Output last month was 2.29mn bpd, the lowest since 2009, and the Latin American nation is on track for a drop of 100,000 bpd this year, it said. Some additional output could be provided by Iran, which is restoring exports after nuclear-related sanctions were lifted in January. The Gulf nation will boost output to more than 3.7mn bpd next year, having pumped at a five-year high of 3.6mn in May, according to the IEA. Saudi Arabia, the world’s biggest exporter, could also increase output during the summer months to cover an increase in domestic demand, it said. After two years of oversupply, the world’s most industrialised countries have more than 3bn barrels of oil in storage. This “enormous inventory overhang” reduces the prospect of “a significant increase in prices,” according to the IEA. The agency estimates that inventories will decline very slightly in 2017, by an average of 100,000 bpd over the year.— Agencies
Dar urged to roll back changes in Finance Bill for holding companies STAFF REPORTER KARACHI—In a recent letter to Ishaq Dar, Minister of Finance, Revenue & Economic Affairs, President & CEO Engro Corporation, Khalid Siraj Subhani has urged the minister to withdraw the proposed amendments in the Finance Bill 2016 in respect of taxation of inter-corporate dividends and surrender of losses under Group Relief. Through the finance bill 2016, the exemption from tax for inter-corporate dividends in a group structure, prescribed under section 59B of the Income Tax Ordinance, 2001, is proposed to be abolished. It has also been proposed to add a restriction in section 59B whereby the surrender of losses under Group Relief will be restricted to the percentage holding of the holding company in the entity surrendering the losses. While extending his appreciation to the Government and other bodies which introduced the concept of Group Taxation in 2007to foster
corporatization and consortium relief, President & CEO Engro Corporation further stressed the need for keeping the policy in place and withdrawing the proposed amendments. Through Group Taxation, Engro Corporation has beenable to nurture its subsidiaries and offer them in the capital markets of the country, raising the liquidity, market capitalization and turnover as well as giving the common man the opportunity to invest and benefit from well governed and regulated businesses. The withdrawal of exemption for inter-corporate dividends will result in incidence of double (at times, triple) taxation on inter-corporate dividends. Further, one of the major conditions for surrender of losses under group relief is the maintenance of substantial interest or control in the subsidiary company by the holding company. It is an internationally accepted principle that with control, an entity assumes the right to govern all the assets and liabilities of another entity
in their entirety, including losses. To impose a limitation on the right of the holding company to utilize such losses (based on holding percentage) would not only be economically unjust but would also be against the concept of group taxation under internationally accepted norms. Engro Corporation has also made and continues to make significant investments in energy projects under CPEC. The current Engro group structure has been designed to deliver on the Group’s strategy on investments on the back of existing legislation. The proposed amendments in the Finance Bill would necessitate Engro Corporation to rethink its current and future investments. It is pertinent to mention that Pakistan Business Council and Overseas Investors Chamber of Commerce and Industry have also recommended to withdraw these proposals from the Finance Bill, in their respective letters to the Finance Minister.
KSE index posts maximum weekly gain since 2013 OBSERVER REPORT K ARACHI —A historic last week at the bourse saw the KSE-100 index pushed to its all-time high and close at 38,776.94 as the market celebrated news of MSCI reclassifying its Pakistan index to emerging market status early on Wednesday. The reclassification, which would take effect next year, helped the market
rally up 1,000 points on Wednesday with the next two days being rather subdued. Nevertheless, the index gained 5.0 per cent (1,836 points), for its highest weekly gain since the first week of July 2013. The news drove broad based buying interest and
the market witnessed historic highs during the week with key interest in the list of stocks to be included in both small-cap and main index. Amidst euphoric trading sessions, the market completely disregarded negativities such as PakAfghan border tensions and turbulence in the political landscape. The MSCI reclassification and Senate’s approval of
corporate restructuring Companies bill 2016 meant that the banking sector remained in the limelight during the week, posting 13.1 per cent return during the week with Habib Bank Limited, MCB and United Bank Limited posting double digit return of 20.9 per cent, 14.8 per cent and 12 per
cent respectively. Furthermore, HBL, MCB and UBL cumulatively added 901pts in the index. The cement sector followed on as it increased 6.2 per cent. Engineering was among the under performers as it fell 1.3 per cent during the week. Moreover, investors also showed insensitivity towards 6per cent week-onweek decline in international crude oil prices as observed from 0.4per cent week-onweek increase in index heavyweight oil and gas sector. Dawood Hercules Corporation accumulated 97 points on the back of substantial holding in Engro, another MSCI EM constituent, which helped scrip remain in the limelight. Additionally latest news sources confirm the Economic Coordination Committee (ECC) has ordered an increase in the price of RLNG by US$1.2/mmbtu, allowing a series of factors that were previously rejected by Oil and Gas Regulatory Authority (OGRA). Foreigners also continued to make thematic investments (pertaining to MSCI and China Pakistan Economic Corridor) during the week with net inflow recorded at $19.6 million.
The average traded volume jumped 21 per cent week-on-week to 183 million shares while average traded value increased by 57 per cent week-on-week to $124 million. Average daily volume increased 21 per cent to 183.4 million shares, coupled with 57 per cent rise in average daily value to Rs13.0 billion/$124.1million. Habib Bank Ltd operates commercial bank in Pakistan. The bank offers commercial, corporate, Investment, retail and International Group Banking. Pakistan Services Limited is the holding company for Pearl Continental Hotels (Private) Limited, which constructs, operates and manages hotels. The group also owns a number of smaller companies that provide renta-car, travel arrangements and tour packages. National Refinery Limited manufactures and distributes lube base oils and petroleum fuels. The company markets its products to customers throughout Pakistan. EFU Life Assurance Ltd provides a variety of insurance services. The company’s services include loan protection plan, savings plan, executive pension plan and education plan.
Achieving environmentally safe ship-breaking activities pledged I SLAMABAD —Stakeholders have pledged to join government’s efforts for achieving Sustainability of shipbreaking activities while ensuring conservation and protection of coastal and marine ecosystems in the coastal areas of the country. Coastal and marine ecosystems were exposed Sunday to an escalating contamination of seawater and marine ecology because of the ship-dismantling activities, which are carried out not in conformity with environmental safeguards, they emphasised at a national consultative policy workshop on Sustainable and EnvironmentallySound Management of Waste from Ship-Recycling In Pakistan. Role of investors in ship-breaking activities and owners of the Gadani Shipbreaking yards was vital to the conservation efforts, Muhammad Ashraf, additional secretary at the ministry of science and technology, highlighted in his keynote speech to the participants of
the consultative workshop. He said, “Thousands of tonnes of hazardous waste was piling up at Gadani shipbreaking yard in Balochistan’s coastal area, which badly harmed the marine ecosystem, overall environment, the life of workers at the shipbreaking yards and those live around the area, environmentalist,” “There is a pressing need to put in place facilities in consultation with relevant stakeholders to handle hazardous waste in scientific and environmentallysafe manner to save shipbreaking activities from any punitive action/ban under the European Union’s certain regulations,” Ms. Susan Wingfield told the workshop participants, who is programme officer at the Geneva-based Secretariat of the Basel, Rotterdam and Stockholm Conventions. She pointed out that the main reason behind the growth of shipbreaking industry in Pakistan is comparatively low cost of labour, weak implementa-
tion of laws pertaining to environmental protection, workers’ rights. “Yet, we would help Pakistan in all possible ways to save its marine and coastal ecologies by making the ship-breaking activities environmentally-safe. Joint Secretary (International Cooperation), the Climate Change Ministry, Iftikhar-ul-Hasan Shah Gilani said the basic responsibility for clean and safe ship recycling lies with the ship owners, who have commercially benefited from vessels. “Therefore, they must show their will and play their part in achieving the goal of shipdismantling activities environmentally-safe,” he stressed. The joint secretary Gilani highlighted that the present government is committed to making shipbreaking industry a ‘green’ and environmentally-safe by following the mechanized system of dismantling in compliance with available legislative frameworks without harming employment of workers.—Agencies
China economy stabilising: report
Huge funds allocated for Western route of CPEC: Ahsan I SLAMABAD —Minister for been allocated for BurhanPlanning and Development Ahsan Iqbal has said the government has allocated
huge funds for completion of Western route of China Pakistan Economic Corridor (CPEC). In a statement, he said up to 22 billion rupees have
Gree launches digital campaign
BEIJING—A slew of official data points to the stabilizing Chinese economy, and slower growth could prompt additional policy support, said a report released by Swiss bank UBS. Most headline numbers for the Chinese economy released during the past week were in line with expectations. While fixed-asset investment disappointed, imports surprised on the upside, and firmer domestic demand saw industrial output growth stabilize, according to the report. On the downside, manufacturing and private investment weakened further in May, UBS noted, adding that pro-growth policies may intensify again once growth further slows The bank expects the still strong property sector and the unfolding effects of earlier or ongoing easing measures to help strengthen sequential gross domestic product (GDP) momentum in the second quarter. “We expect growth in the second quarter to be firmer than the first on a sequential basis, but not much improved on a yearon-year basis, and to lose steam later in the year,” the report said. The bank saw macro policies “staying on hold” until the fourth quarter, when slower growth may prompt additional support again, and maintain its full year GDP growth forecast of 6.6 percent. China’s GDP expanded 6.7 percent year on year in the first quarter, the slowest growth since the global financial crisis in early 2009.—Xinhua
Hakla route. He said the 285kilometer motorway project to connect Dera Ismail Khan to Hakla area will be completed in two years at a cost of over 129 billion rupees. He said five billion have been allocated for GwadarTurbat-Hoshab section and four billion for HoshabNag-Basima-Surba section of Western route of CPEC. He said work on the Western route is in full swing and Gwadar-Surab Section will be completed by December 2016 while D.I. Khan section will be completed by July 2018. The Minister said the government is determined to completing the Western on priority basis by providing all the required funds for it.—Agencies
STAFF REPORTER LAHORE—Gree has launched a fresh digital campaign to highlight its recognition as the most reliable brand in terms of performance and quality. The campaign will communicate GREE Inverter AC’s ability to save upto 65 per cent on energy, while consistently giving the most powerful cooling. It also shows the other unmatched features of Gree products to create awareness among the consumers. Information about the robust business performance of the GREE brand will also be provided to the consumers through this digital campaign. Gree has been consistently innovating new technologies to create the best-suited products, in accordance with the experts’ insights and the changing needs of the consumers. Whereby Gree’s most advanced INVERTER technology can now ensure faster cooling with much lower consumption of electricity. Due to the hot weather conditions, rising costs and unstable supply of electricity in Pakistan, Gree has created the most reliable air conditioners, to ensure best performance in Pakistan.
LG stylus 2 plus offers upgraded features STAFF REPORTER I SLAMABAD—The LG Stylus 2 Plus, the latest edition of its large-format Stylus series, begins its global rollout with its launch today in Taiwan. The LG Stylus 2 Plus will make its way to customers in other key markets in Asia, South America, Europe and North America in the weeks to come. While the design remains consistent with the original LG Stylus 2, the smartphone features significantly better performance than its original cousin. At its heart is a faster 1.4GHz Octa-Core processor, a sharper 5.7-inch Full HD IPS
display and higher resolution 16MP rear camera, with a flash on both sides for clearer photos and videos in low light. Other improvements include more RAM and the choice of colors: Titan, Gold and Brown. The Stylus 2 Plus carries over the nano-coated stylus which provides the tactile feedback of a quality fountain pen when writing on the screen. Using the stylus is made even more useful with UX features such as Quick Memo and Off Memo and Pen Keeper, which displays a warning when the stylus strays too far from the phone, or vice versa.
Lenovo unveils 1st tango-enabled smartphone STAFF REPORTER ISLAMABAD—Lenovo (HKSE: 992) (ADR: LNVGY) today launched the much anticipated PHAB2Pro– the world’s first Tango-enabled smartphone to enable augmented reality experiences – plus the dual-camera PHAB2 Plus and full-sized PHAB2 smartphones. Unlike any other phone, the PHAB2 Pro, powered by Tango technology–a set of sensors and software from Google that senses and mapsits surroundings–makesa host of cutting-edge smartphone augmented reality (AR)experiences possible.
For example, using AR apps, students can place true-to-scale virtual dinosaurs in their classrooms and enhance their learning through AR data overlays that appear while they walk around the creatures. AR gaming experiences let you play virtual dominos on your kitchen table, raise a digital pet in your bedroom and fight back swarms of aliens invading your house. With Tango technology the PHAB2 Pro can even begin to change the way people think about mapping indoor spaces to create new experiences like future augmented reality museum tours via the GuidiGO app.
Tracing global market thread that could be unravelled by Brexit LONDON—If Britons vote to take have far fewer options open to years. their country out of the European Union on June 23, no corner of the global financial market complex will emerge unscathed. The invisible thread that links assets as diverse as gold, bank stocks, the Japanese yen and government bonds would be yanked sharply by Brexit, an event the Bank of England said on Thursday risks “adverse spillovers to the global economy”. With global interest rates and bond yields the lowest on record, central banks running low on crisis-fighting tools and the post2008 economic recovery flagging, that thread could quickly unravel, with serious consequences for all markets. So why will the will of one country’s people in one referendum have such a profound impact on global markets? The answer is partly how interconnected global markets are, and partly timing - the world economic cycle is already very long in the tooth and central banks
them after nearly a decade of extraordinary policy support. Global interest rates are their lowest for 5,000 years, according to Bank of America, but central banks could still cut them further. That could mean the U.S. Federal Reserve reversing its slow-starting tightening cycle, and European Central Bank and Bank of Japan rates going deeper into negative territory. Lower rates would also depress bond yields even further, tightening the screw on central and commercial banks. Over $8 trillion worth of sovereign bonds already carry a negative yield, according to JPMorgan. This means holders of Japanese, German and Swiss debt are paying these governments for the privilege of lending to them, in some cases out to 20
They are willing to accept they will not get all their money back. Even deeper negative yields would increase these losses, rais-
ing further doubt that these are truly “safe haven” assets. But the immediate economic and political uncertainty after a Brexit vote would likely be so great that demand for these bonds would rise anyway, pulling yields even lower. Yield curves, the difference between short- and
longer-dated bond borrowing costs, would flatten further. They are already their flattest for years around the developed world, meaning the premium investors expect for holding longerdated bonds is shrinking. This is often an ominous signal of low inflation or deflation, and slowing economic growth or possibly recession. If “core” bond yields would likely fall, yields on lowerrated and riskier bonds would likely rise, widening the spread between the two. This would increase the financing pressure on a wide range of companies around the world and governments in euro zone “periphery” countries like Greece, Italy and Spain. Flat yield curves are bad news
for banks, who make money from borrowing short-term at low rates and lending longer-term at higher rates. Financial stocks have been hit hard this year as the curve flattening has accelerated. Euro zone banks are down 30 percent this year, Japanese banks 35 percent, UK banks 20 percent, and U.S. banks 10 percent. Banks are also being squeezed by negative deposit rates. The ECB, Bank of Japan and Swiss National Bank all charge banks for depositing cash. It may even become cheaper for banks to put billions of yen, euros or francs of their customers’ cash in vaults — a possibility German lender Commerzbank is examining. As for central banks, any move deeper into the uncharted world of negative interest rates would be taken reluctantly. In the case of the ECB, declining yields would further cut the amount of bonds eligible for purchase as part of its quantitative easing stimulus program.
That would make its inflation target of just under 2 percent much harder to achieve, in turn putting its credibility under even greater scrutiny. Just as the 2007-08 financial crisis was caused by unprecedented stress in the banking system, analysts fear Brexit fallout could again threaten to block the global financial system’s plumbing. Banks have recovered from 2007-08 but stresses are already appearing in more obscure pockets of dollar-based FX and rates markets that are hitting levels more associated with periods of crisis. The premium for dollars over yen in the cross currency basis market is its highest in years. Spreads between Libor rates and overnight index swap (OIS) rates, broadly a measure of investors’ perception of credit risk in the banking system, are also widening. In normal conditions, Libor/OIS spreads should be virtually zero.—Reuters