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Big institutions visit markup rate more frequently Regulator to make public bank-wise quarterly interest rate corridor activity KARACHI
flexibility, through DMMD Circular Number 21 issued on October 5 last year, with enhancement of reserves maintenance period to two weeks and reduction in daily minimum Cash Reserve Requirement (CRR) to 3.0 percent. “Hence, (the) SBP believes that broadcasting of this data would promote transparency and encourage banks and DFIs to improve their liquidity management practices and ensure smooth functioning of the interest rate corridor,” said the regulator. It may be pointed out that the Domestic Markets and Monetary Management Department (DMMD) of the State Bank currently publishes consolidated and bankwise weekly reports on the Excess Cash Reserves (ECR) held by the banks over and above the required CRR on SBP website. “The objective of publishing these reports was to bring more efficiency in the money market operations of the banks and to improve banks/DFIs’ own liquidity management, which have implications on SBP’s monetary operations,” said the central bank. In addition to these reports, the DMMD also was disseminating data of consolidated access to SBP Repo/Reverse Repo facilities by the institutions on daily basis, for maintaining transparency of the SBP’s money market operations, it said.
SBC Bank Middle EastPakistan, JS Bank, the Bank of Punjab and the National Bank of Pakistan topped the list as the central bank Wednesday made public its data of the individual institutions having visited the regulator’s interest rate corridor during the last quarter. The central bank Wednesday declared to have decided to make public an additional report titled “Bank-Wise Access to Overnight Repo/Reverse Repo Facilities on Quarterly Basis” on its website. According to SBP data, during the second quarter of current fiscal year, Oct-Dec FY13, some 36 banks and investment firms had accessed its interest rate corridor 163 times. This number is reduced by 152 when compared to first quarter, July-Sep FY13, which saw individual institutions availing the SBP facility 315 times. According to the regulator, during the just-concluded quarter each of the HSBC Bank, JS Bank and the Bank of Punjab accessed the interest rate corridor 9 times while the NBP availed it 8 times. Others to follow are the KASB Bank 7 times, Bank of Khyber 7, Citibank 6, Pak KARACHI: Pakistan should honour its commitment in granting the MFN status to India. This was stated by S. M. Muneer, President Indo-Pak CCI and former President FPCCI. He said that Pakistan announced in October 2011 that it will grant MFN status to India from January 1, 2013 and the delay in the matter would jeopardize the process of liberalization of trade between the two countries. Muneer said that the trade between Pakistan and India is about $2.6 billion in
Kuwait Investment Company 6, SAMBA Bank 6, 5 each of the Barclays Bank, Deutsche Bank, Habib Metropolitan Bank, Saudi Pak Industrial and Agricultural Investment Company, Sindh Bank, Soneri Bank, Summit Bank, United Bank Limited, 4 each of the Allied Bank, Askari Bank, First Women Bank, Industrial & Commercial Bank of China, NIB Bank, PAIR Investment Company, Pak Oman Investment Company, 3 each of the Bank Al-Falah Limited, Bank Al-Habib, Faysal Bank, Habib Bank Limited, Pak Libya Holding Co, Bank of TokyoMitsubishi UFJ, two each of the Industrial
Development Bank, MCB Bank, Pak-China Investment Company and Silkbank and Standard Chartered Bank. Pak Brunei Investment Company was the only entity that did not access the SBP’s interest rate corridor during the quarter in review. The investment company however had availed the facility 15 times during the first quarter. The State Bank said online publication of the report would provide the market with details of number of times the individual institutions had accessed the SBP’s interest rate corridor during the preceding quarter. The banks have already been given
‘Let’s give India the MFN status’ 2011 while the informal or third country trade between the two countries is more than $3 billion. According to an estimate, the impact of trade liberalization would be of about $6 billion of bilateral trade. India had granted MFN status to Pakistan in 1996. Granting the MFN status to India and dismantling the negative list are important for bilateral trade because India in return will bring down its SAFTA
sensitive list to 100 tariff lines at six digit level by April 2013, he added. He stated that in the ministerial and commerce secretary level talks of India and Pakistan this year, it was agreed that after approval by the cabinet the negative list would be removed and Pakistan would transition fully to the MFN status for India by endDecember 2012. MFN status is a WTO obligation and Pakistan has to grant the
status for enhancing the trade. Development of Indo-Pak relations were based on reciprocal basis with consideration and implementation from both ends. He lauded the efforts of Federal Minister Makhdoom Amin Fahim and Mr. Munir Qureshi Secretary Commerce and appreciated their key role in highlighting true perspective of Indo-Pak relations with its due importance before their Indian counterpart and other leaders across the border to bring normalcy in ties. NNI
PIA to have a new look by April 2015: chairman ISLAMABAD ONLINE
Pakistan International Airlines (PIA) would start replacing some of its fleet and revamp the present planes as well as evaluate the existing routes and would open new destinations by expanding its network. It was stated by Lt Gen (R) Asif Yasin Malik, Chairman, Pakistan International Airlines (PIA) while addressing the business community at Islamabad Chamber of Commerce and Industry (ICCI). Senator Mohsin Gilani, General(R) Ali Abbas, Faisal Mushtaq and Agha Ali Akhtar Pathan were also present on the occasion. He said that 54% of PIA’s revenue was spent on fuel consumption while 12%-14% was the establishment cost, however, PIA is operating profit since October 2012 as well as its share in stock exchange market has increased by 26% due to efficient monitoring system. He said that 12 plane are been taken on lease because of higher average fleet of existing planes. Lt.Gen. (retd) Asif Yasin Malik further informed that under the PIA Revival Plan each operational area and department is under study and soon major decisions would be in place to obtain greater potential needed for the turnaround of the airline. Wrong aircraft for the wrong destination was the main reason of incurring losses but PIA would have a new look by April-2015, Chairman added. Speaking on the occasion, Mr.Zafar Bakhtawari, President ICCI Pakistan International Airlines should reduce its fuel cost through fuel efficiencies, capacity/route rationalization and deployment of suitable aircrafts for the routes and passenger load, proper maintenance. He said that most of the economic issues of our economy would be solved if department of PIA would start working efficiently as PIA losses had increased to Rs.150 billion while Rs.600billion were the accumulated losses of other Public Sector enterprises that were more than our defense budget of Rs.545billion which need to be monitor by adopting good governance. ICCI President said that PIA should conduct a study to increase its destinations and initiate direct flights to those destinations which are potential market for Pakistani products that would ultimately help our country to get rid of isolation.
FROM RUSSIA, WITH KEEN INTEREST Russians want to up trade volume with Pakistan KARACHI NNI
Andrey V Demidov, Consul General, Consulate General of the Russian Federation at Karachi, visited S.I.T.E. Association of Industry wherein he was welcomed by. Naseem Anwar, Senior Vice Chairman and Chairman, Int’l Relations, Diplomatic Affairs Sub-Committee, S.I.T.E. Association of Industry, alongwith the Members of Executive Committee of the Association. A brief introduction of S.I.T.E. Association of Industry was given to the Consul General, who was informed that the industries of various sectors are operating in this biggest and oldest industrial estate of the country, having potential to increase bilateral trade ties between Russia and Pakistan. The Russian Federation being a growing economy and associate of BRICS(Brazil, Russia, India, China and South Africa), can play its role in the development of Pakistani economy. The Consul General was highlighted to resolve bottlenecks and hindrances in enhancing the trade relation between the two countries. Pakistan being the 5th largest wheat, rice, cotton, milk and onion producing country has ample po-
Thursday, 3 January, 2013
tential to promote bilateral trade relations for promotion of economies of both the countries. It was also pointed out that there exists a severe lack of communication which can be bridged through sector wise B2B exchange programs, sector specific company information .The Power & Gas sectors, where Pakistan is facing serious problems and needs Joint Ventures for IPPs. The small and medium sized Hydal Power projects including the run of the river type projects be initiated between Russia and Pakistan. There is a need of creating linkage between Moscow Chamber of Trade & Commerce with S.I.T.E. Association of Industry so that direct access is available. A focal person from S.I.T.E. Association of Industry & Russian Consulate should be nominated so that progress is made. Meetings on quarterly basis to ascertain the progress would be more fruitful. Regarding export of Textiles and problems faced by the Pakistani exporters with Russia due to non availability of Banking Channels, L/C problems and non transparent mode of payment stops business in moving forward with Pakistan & Russia. The buyers are reluctant due to the varying tariff on the textile goods which needs standardization. It was also discussed that despite
cordial relations with Russia the problems of shipment regarding import from Russia through mediatory party via
Dubai are also a hurdle due to which no direct import / export between the two countries could be enhanced. It was also discussed that Tourism Industries of both the countries can play a vital role to boost up the economy of each other by exchange of visitors bilaterally. Russia being rich in Oil & Gas resources may come forward to resolve the energy crisis of our country. It was also discussed that efforts be made to proceed towards execution of Free Trade Agreements between both the countries, which may prove one of the best ways to enhance volume of bilateral trade. The Consul General of Russian Federation thanked the participants for the warm welcome extended to him. He said that new ideas for promotion of bilateral trade are useful in the changing world where priorities have changed and although there are some constraints which we have to mutually resolve. He took keen interest for import of potatoes from Pakistan to Russia, there is potential of cooperation but the absence of direct air link / seaport link and misinterpretation of the image of Pakistan by the media, hinders the true vision of Pakistan as a potential country for mutual
trade. He said despite of signing MOUs no tangible progress seem to be made as yet as such we have to go beyond MOUs. He further said that lack of proper information of different business sectors need to be revisited and for that reason PakRussia Business Council has been formed at FPCCI where the current information regarding the specific topics of trade & exhibitions schedule for Pak-Russia Business / trade can be obtained. He said that Consulate has recommended to the Government of Russia for Single Country Exhibition in Pakistan. He assured to resolve the L/C problem and desired that a complete list of problems be forwarded to the Consulate regarding energy requirements a proposal may also be submitted. He assured full cooperation for issuance of visa to the Pakistani business and tourist delegations intending to visit Russia. Others present in the meeting were Dr. Qazi Ahmed Kamal, Vice Chairman, S.I.T.E. Association of Industry, Mr. Muhammad Yasin Saya, Mr. Ali Ahmed, Mr. Ahsan Arshad Ayub, Mr. Muhammad Saleem, Mr. Tahir Zaman, Mr. Yousuf Yaqoob, Members Executive Committee & Mr. Asad Nisar, Immediate Past Sr. Vice Chairman.
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Business 02 Pakistani stocks plunge over 300 points, rupee weakens
Mauritius willing to ink FTA with Pakistan KARACHI STAFF REPORT
Pakistani stocks closed lower on Wednesday amid concerns over political stability and weaker interest in energy stocks, dealers said. The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 1.82 per cent, or 304.88 points, lower at 16,489.99. Despite a rally in regional markets and oil prices, heavyweight energy companies Oil & Gas Development Corporation, Byco Petroleum and Pakistan Petroleum Ltd. all fell in value, said dealer Samar Iqbal at Topline Securities. Byco Petroleum fell 7.09 per cent to 13.10 per share. Financial services firm Jahangir Siddiqui was down 5.01 per cent to 14.80 per share. In the currency market, the Pakistani rupee ended weaker at 97.34/97.39 against the dollar, compared to Monday’s close of 97.18/97.23. Overnight rates in the money market ended at 6.50 per cent compared to Monday’s close of 8 per cent. On Tuesday the currency market and money markets were closed due to a bank holiday.
The traders and industrialists here have stressed the need for signing a Free Trade Agreement (FTA) with Mauritius which is willing to further economic ties with Islamabad beyond the already-signed Preferential Trade Agreement (PTA). President Karachi Chamber of Commerce and Industry Muhammad Haroon Agar Wednesday urged to pave the way forward to sign an FTA between Pakistan and Mauritius. His remarks came during a meeting with High Commissioner of Mauritius to Pakistan Mohammmad Rashad Daureeawo who visited the KCCI here Wednesday. Agar said in 2007 Pakistan and Mauritius had signed a PTA that allowed hundred tariff lines to be traded between the two countries on preferential terms. The ultimate objective of this PTA was to pave the way for an FTA encompassing almost all products, trade and services. He said serious efforts were required from both the governments and business communities to enhance bilateral trade and to double the trade volume between the two friendly countries. Pakistan and Mauritius can join hands to have joint ventures in Mauritius Exclusive Economic Zone to extend their trade to various African countries and reciprocally Pakistan could help Mauritius to extend trade from Gwader port to Central Asian Republic, SAARC block, Middle East and GCC countries. India, Agar said, was giving much attention to Mauritius and Pakistani investors too should come forward and capture their market share in Mauritius. “Mutual Economic and Commercial Cooperation opportunities exist in tourism, textile, sugar, healthcare, education and financial services,” he said. Pakistan can export to Mauritius meat, fish fillets, fruits and vegetables, flowers, textiles, gar-
ments, sugar, sports and surgical goods, footwear etc. The KCCI president requested the Mauritius high commissioner to invite exhibitors to participate in the KCCI’s My-Karachi Oasis of Harmony Exhibition scheduled to be organized in July 2013. On the occasion, High Commissioner of Mauritius Mohammmad Rashad Daureeawo said Mauritius, being a gateway to Africa, had a huge scope for Pakistani furniture, textiles, tiles and sanitary ware, carpets and mangoes and these marvellous opportunities must be tapped. He asserted upon the need to sign MoU between KCCI and Mauritius Chamber of Commerce and Industry for enhanced mutual cooperation to facilitate business communities of the two countries. Pakistan-Mauritius trade and investment ties are presently low and simply call for aggressive measures. He said that Pakistani goods are best of the best in the world and has the potential to win respectable place in Mauritius market. It is very encouraging that Mauritius-Pakistan Joint Working Groups is now envisaging negotiations for an FTA that hopefully would play very useful role. To establish direct air-link between two countries talks are underway between Air Mauritius and PIA, he informed. If basic visa requirements are completed, Mauritius High Commission in Islamabad can issue visa in one day, he conversed. Pakistan exports to Mauritius comprise rice, cotton yarn, woven fabric, cotton fabric, bakery items and medicament mixtures while Pakistan imports from Mauritius sugar, food processing items, rubber and wood articles etc. He informed that Mauritius tops 2011 World Bank Report Ease of Doing Business Ranking due to soft and encouraging tax regime in the country whereby any foreign company can get registration in just three days.
Major Gainers COMPANY
Jubilee General Ins. 67.11
Ghani Glass Ltd.XB 61.45
10050.00 1389.99 401.62 385.12 775.00
9801.01 1284.00 401.62 365.87 758.00
10000.00 1301.00 401.62 365.87 764.20
-100.00 -50.00 -21.13 -19.25 -10.48
300 150 100 2,600 4,550
10.85 4.47 14.80 16.29 2.30
9.70 3.84 14.02 15.50 2.18
9.71 4.42 14.10 15.58 2.21
-0.99 0.39 -0.35 -0.56 -0.07
15,818,000 11,324,500 8,232,000 7,833,000 5,100,000
Major Losers UniLever Pak 10100.00 Bata (Pak) 1351.00 Shezan Inter. 422.75 Mithchells Fruit 385.12 Siemens PakistanSPOT774.68
Volume Leaders B.O.Punjab P.I.A.C.(A) Byco Petroleum Jah.Sidd. Co. SilkBank Limited
10.70 4.03 14.45 16.14 2.28
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.1365 157.0017 1.1281 128.1327
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
97.40 127.83 156.26 1.1193 96.69 12.31 26.40 25.90 99.96
SELL 98.10 129.58 158.35 1.1335 98.63 12.59 26.71 26.16 102.79
CORPORATE CORNER Samsung Galaxy Music Duos inspires music lovers KARACHI: Samsung Electronics Ltd. the global leader in telecommunications and digital technology has now launched a new smartphone packed with premium music, games and multimedia features. The Samsung Galaxy Music Duos is designed to deliver premium sound quality and musical output, along with great connectivity in its stylish design which is available in three vibrant colors, Splash Blue, Ceramic White and Yellow. The phone features powerful dual front speakers providing loud & clear sound. The device also boosts sophisticated musical features like the SRS and Surround-Sound with SoundAlive2 enhancements. An embedded FM Radio with built in antenna, provides superb musical entertainment on the go. Users can also enjoy preloaded ChatON for free and easy messaging, group chats, Buddy networking and convenient Multi-media sharing with friends. This device acts as an all-round entertainment and networking center as it allows you to connect using social media applications.
FFC trains community in industrial disaster management
KARACHI: Fauji Fertilizer Company Limited (FFC) is the largest urea manufacturer in Pakistan, operating three world scale urea plants with an aggregate capacity of over 2 million metric tonnes per annum. Along with financial progress, FFC Corporate Social Responsibility programs contribute generously in the areas of education, health, disaster relief and environmental protection. In order to enhance effectiveness in combating an industrial disaster, FFC has an active “Community Awareness & Emergency Response” (CAER) program, along with well defined “ON SITE” disaster handling procedures. One of the main responsibilities of this program is to create awareness about industrial disaster management by engaging the
community living adjacent to FFC plants and facilities. FFC coordinated a training exercise with the villagers and Government authorities to handle an industrial disaster at Basti Ahmed Khan, Sadiqabad. In this successful joint exercise, Rescue-1122, DDMA, TMA, THQ Hospital, along with volunteers, the Police and Motorway Police, actively participated in handling an industrial disaster. A large number of spectators from the surrounding villages and industries also gathered at the site during the exercise.
Emirates Doubles A380 Capacity to New York and Paris
KARACHI: Emirates has doubled its A380 capacity to New York’s John F. Kennedy and Paris’ Charles De Gaulle airports with a twice daily A380 service from Dubai now operating into both cities. Upgrading capacity into New York by 1848 seats per week, flights EK203 and EK204 will now be operated by the Airbus A380-800. EK203 departs from Dubai at 0225hrs, arriving at JFK at 0745hrs. The return sector EK204 leaves JFK at 1040hrs arriving in Dubai at 0810hrs the next day. In Paris, an additional 2198 seats per week will be added; EK 075 leaves Dubai at 1500hrs and arrives in Paris at 1930hrs. The return flight, EK 076 departs Paris at 2110hrs and gets into Dubai at 0640hrs the next day. “The decision to commit a second A380 to both New York and Paris is a clear indication of customer demand, for the state-of-the-art aircraft and these two popular destinations,” said Thierry Antinori, Emirates’ Executive Vice President, Passenger Sales Worldwide. “New York and Paris are both important routes for Emirates and its customers. Adding larger capacity aircraft is central to helping us meet growing passenger demand and will also boost economic support for American and French international commerce.”
PTCL organises Inter-Zonal Cricket tournament for its employees
ISLAMABAD: In an exciting contest, Pakistan Telecommunications Company Limited (PTCL) North Zone won the PTCL Inter-Zonal Cricket Tournament held at F-9 Cricket Ground, Islamabad. Played between PTCL’s four zonal teams comprising PTCL Headquarters, Business Zone Central, Business Zone South and Business Zone North, the tournament exhibited enthralling and intense cricketing competition. PTCL Senior Executive Vice President (SEVP) HR & Admin, Syed Mazhar Hussain commented on the occasion, “PTCL regularly holds such sporting events to promote healthy activities among its employees and giving them opportunities to showcase their athletic abilities and team spirit.” The final match of the tournament was played between PTCL Business Zone North and PTCL Head Quarters while PTCL Business Zone Central stood third and PTCL Business Zone South got the fourth position. PTCL Senior Executive Vice President (SEVP) HR & Admin, Syed Mazhar Hussain was the chief guest on the occasion and presented the trophy as well as other prizes amongst the winners. Abrar Ahmed Babar was named Man of the Series and Best Batsman, while Muhammad Zeeshan was the Man of the Match for the final and Salman Arshad the Best Bowler. Employees and their families also participated enthusiastically in the day-long event.
However the bank was granted full fledged license for operations in April 2011. It has now an overall network of 160 branches across 80 cities in all provinces of the country including Azad Jammu Kashmir (AJK), with specific preference in Sindh province where the branch network is 100. SBL is the only bank in the country to have established 160 branches in less than two years of its operations. The Bank’s performance has been excellent in terms of its profitability and deposit mobilization. In its first year of operation’s ended December 31, 2011, the bank posted a pre-tax profit of Rs 1,140 Million and deposit base of Rs 23,517 Million. This has further improved to around Rs 1.3 Billion as operating profit and Rs 31 Billion in terms of deposits by end December 2012. The JCRVIS Credit Rating Company Limited has assigned medium to long term entity rating of AA- (Double A Minus) with a “stable outlook” and short term rating of A1 (A One). Besides general banking operations and attractive deposit schemes, the bank has launched several innovative initiatives specially geared to support efforts aimed at boosting Women Entrepreneurs, Agriculture and promoting Education.
Sindh Bank’s performance KARACHI: Subsequent to the grant of Banking license by State Bank of Pakistan on Dec 2, 2010 the bank commenced its operations with the inauguration of its first branch at Naudero on Dec 26, 2010 by the President of Pakistan, His Excellency Mr. Asif Ali Zardari.
KARACHI: Masood Hashmi presenting memento at 13th MAP Convention to Shahid Javed Burki, Ex-Finance Minister & Ex-Vice President of the World Bank. Saad Amanullah Khan - CEO, Gillette Pakistan Limited can also be seen here.
Thursday, 3 January, 2013
Published on Jan 3, 2013