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Tuesday, 4 December, 2012
SECP notifies draft regulations for insurance firms KARACHI STAFF REPORT
Cement conjures double digits at home; exports to India dip KARACHI STAFF REPORT
HE decline in the cement exports to India continues unabated where the uptake of Pakistani cement reduced by 38.50 percent during the first five months of the current fiscal year, 2012-2013. During JulyNov 2011 last year, Pakistan exported 298,214 tons of cement to India which reduced to 183,387 tons this year. Although cement sector posted a healthy export growth of 11.71 percent in November 2012,India was the only exporting destination where exports declined in November as well.Pakistan exported 45,096 tons of cement to India in November 2011 which declined alarmingly to only 25,207 tons in November 2012. The cement sector of Pakistan otherwise showed healthy growth in the month of November, as for the first time this fiscal, both domestic consumption and cement exports posted double digit growth, on year to year basis. Total cement dispatches at 2.649 million tons during the month of November were, however, lower than dispatch of 2.766 million tons, a month earlier. However, when compared to November 2011 when the total cement dispatches were 2.255 million tons, the sales in the month of November 2012 were higher by 19.63%. Traditionally, cement dispatches in October are higher than in November. The market analysts term the current domestic market situation encouraging as during past five months of this fiscal, the local consumption has increased in four months and declined only in August by 3.41 percent. The local uptake of the commodity increased in two months out of five during this fiscal by over 19 percent. The first time it posted over 19 percent growth was in September 2012 and the second time in November 2012. The overall growth in local dispatches during the first 5 months of this fiscal was 6.78 percent. The cement exports from South zone during July-Nov 2011 were 0.986 million tons that declined in July-Nov 2012 to 0.837 million tons depicting an overall reduction of 15.06 percent. The cement exports from North zone declined nominally by 0.64 percent during this period to 2.804 million tons from 2.823 million tons in the first five months of this fiscal.
Pakistan and Austria have decided to expand existing bilateral trade and investment relations. The delegation of both countries held bilateral political consultations in Vienna. The Pakistan delegation was led by Ms. Ayesha Riyaz, Additional Secretary (Europe & FoDP), Ministry of Foreign Affairs while the Austrian Delegation was led by Ms. Gabriele Meon-Tschurtz, Head of the Asia Division at the Austrian Ministry for European & International Affairs. The friendly relations between Pakistan and Austria span over more than five decades. Austria, a member of both the EU and the OECD, is an economically developed Western-European nation, hosting the thirdlargest UN Headquarters in Vienna. Diplomatic relations between Pakistan and Austria were established in 1956. Ever since then both the countries have been en-
Securities and Exchange Commission of Pakistan (SECP) has notified draft of accounting rules and regulations for the Life and nonLife Insurance companies. The drafted revised Accounting Formats and regulations for published financial statements and regulatory returns by insurance entities have been notified in the official gazette ofPakistan to elicit public and stakeholders comments. By issuing these accounting formats and regulations, the SECP, as the apex regulator, aimed to protect the interests of policyholders and promote the sound devel-
opment of the insurance industry. The existing SEC [Insurance] Rules 2002, annexed with it were the Accounting Regulations & its Formats were introduced by the SECP in 2002. Since the issuance of these rules, almost a decade ago, there have been remarkable developments and changes in the International Reporting Standards (IFRSs) by International Accounting Standards Board. Accordingly, at the behest of the SECP, the Institute of Chartered Accountants of Pakistan (ICAP) reconstituted the Insurance Sub-
Fahim talks up potential trade numbers with Korea ISLAMABAD
Committee. The Committee comprised of industry experts, senior partners of chartered accountant firms, and representatives from the Insurance Division of the SECP and technical experts from the ICAP. The mandate given by the Commission was to review the current accounting regulations and formats in respect of conventional Life and Non-life Insurers by taking into consideration the International Standards. The Committee was also to address the concerns of the industry in relation to IFRS 4. The underlying objective of IFRS 4 was
Rate-cut of 50-100bps likely as inflation dips to 6.9% KARACHI
Senior Federal Minister for Commerce Makhdoom Amin Fahim said that volume of trade between Pakistan and Korea needs significant increase. In a statement prior to leaving for three days visit to Korea he cited that current visit would strengthen business and commercial interaction between the public and private sector of both countries. He further said the business communities of both the counties need to be sensitized about the available business opportunities. He also said both countries should organize regular trade exhibition of potential products which would explore trade options between two countries. While telling about current trade between two countries the Federal Minister said that Pakistan – Korea volume of trade, which was in the region of US $ 845.18 million in the year 2006-07 reached all time high with effort of current government amounting to US$ 1.189 billion showing an increase of 40%. He also mentioned that Pakistan exports registered 17% increase in 2011-12 as compared to 2006-07.
The Consumer Price Index (CPI) inflation in the country during the month of November was recorded further downward at the lowest level of its revised based at 6.9 percent as against 7.7 percent in October. “The number is far below the market consensus which was expecting it in the range of 7.5-8 percent,” said Topline analyst Nauman Khan. On MoM basis, inflation stood at –ve 0.4 percent as against 0.4 percent last month, while the average inflation in 5MFY13 stood at 8.4 percent versus 10.2 percent in the same period last year.
“Though, we still await how individual heads contributed to subdued number but we believe subdued food inflation would be the chief contributor on account of post Eid phenomena,” said Khan. The soft inflation number heightened the chance of average FY13 inflation to fall well below the government expectation of 9.5 percent, even after incorporating in high MoM inflation in 2H. “We maintain our view that soft inflation numbers could allow the room for the central bank to continue the process of monetary easing and we expect another 50-100bps cut in the policy rate in the upcoming monetary policy schedule due in second week of December,” said the analyst. He said his conviction to the idea also comes from the central bank’s recent focus on growth dynamics which was also highlighted in the recent SBP governor’s interview.
Fiscal bonding in Vienna Pakistan, Austria agree to boost bilateral relations
joying cordial relations. During the Bilateral Consultations, the two sides took stock of the current status of bilateral relations including political ties,
to achieve global harmonization of the diverse accounting disclosures and practices in the insurance industry. After in-depth deliberations, the SECP notified the draft rules and regulation format for public consultation. Only those comments and suggestions shall be considered and incorporated which are found viable and in the spirit of law thereafter the final rules and regulations shall be announced. It is envisaged that the revised set of accounting rules and regulations shall bring in more transparency, establish enhanced disclosures requirements that would be useful in decision-making by present and potential policyholders, investors, lenders, etc.
economic cooperation, trade and investment, collaboration in the field of education and science & technology, and cultural and parliamentary exchanges. Both sides
emphasised the need to enhance higher level political contacts, including parliamentary exchanges, to further intensify the existing bilateral relations.
They noted that there has been a steady growth in the bilateral trade volume over the past years, and agreed to undertake suitable measure to sustain this positive trend. The two sides also agreed to convene the 5th session of the PakistanAustria Joint Working Group on Trade and Economic Cooperation at an early date. The Additional Secretary briefed the Austrian side in detail on the investment opportunities in the country. Both the sides noted with satisfaction that OMV, an Austrian oil and gas company, has one of its largest overseas investments in Pakistan. They agreed to strengthen interaction between their respective business communities to further expand the existing trade and investment relations. The two sides exchanged views on regional and international issues of mutual interest including the situation in Afghanistan and counterterrorism.
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Oil prices up in Asia on Middle East fears SINGAPORE AGENCIES
Crude prices rose in Asia Monday after UN chief Ban Ki Moon warned that Israel’s new resettlement plans would deal an “almost fatal blow” to any prospects for peace with Palestinians, analysts said. Israel’s move is likely to heighten geopolitical tensions in the crude-producing Middle East. New York’s main contract, light sweet crude for delivery in January, gained 11 cents to $89.02 a barrel and Brent North Sea crude for January delivery added 15 cents to $111.38. “The market continued to balance risks to demand from the US budget standoff against concerns about disruption to Middle East supplies,” Phillip Futures said in a report. Crude had been weighed over the past week by concerns over increasingly difficult deficit negotiations in Washington on the looming US fiscal cliff, which could see the world’s largest economy tip into recession next year. But Israel’s announcement on the new settler homes in the West Bank and East Jerusalem a day after a UN vote recognised Palestine as a non-member state of the world body fuelled concerns about the Middle East. Israel had also on Sunday said it will not transfer tax and tariff funds it collects for the Palestinians this month, ratcheting tensions up another notch.
Asian markets boosted by China manufacturing data
SIAN markets climbed on Monday after data showed Chinese manufacturing activity had picked up pace in November, while increased global confidence provided support for the euro. Tokyo rose 0.66 percent by the break, Hong Kong was 0.10 percent higher, Sydney added 0.59 percent and Seoul climbed 0.23 percent while Shanghai was flat. Beijing said Saturday that factory activity grew for the second month in a row in November, the latest figures showing the world’s number two economy is emerging from its recent slowdown. The country’s official purchasing managers’ index (PMI) reached 50.6, up from 50.2 in October and 49.8 in September and the highest since hitting 53.3 in April. Anything above 50 indicates expansion. In a separate survey, HSBC said its PMI hit a 13-month high of 50.5 in November from 49.5 in October. Chinese manufacturing has been hit by weaker demand in Europe and the United States, with economic growth hitting a more than three-year low of 7.4 percent in the JulySeptember quarter. A more upbeat outlook for China filtered through to currency markets, where the euro continued its recent rise. The single currency gained to $1.3040 and 107.42 yen in early trade, from $1.2982 and 107.07 yen in New York late Friday. The dollar eased to 82.37 yen from 82.48 yen in US trade. The yen has weakened over the past few weeks as investors expect a win in December 16 polls for Shinzo Abe, the opposition leader who has pledged to carry out more aggressive monetary easing measures to kickstart Japan’s limp
Major Gainers COMPAny OPEn Island Textile 951.18 Sanofi-Aventis Pak 366.03 Exide (PAK) 313.00 Fazal Cloth MillXDXB130.16 Gadoon Textile 110.77
HIgH 998.73 375.00 319.74 136.66 116.30
LOw 998.73 375.00 315.00 136.66 114.05
CLOSE 998.73 375.00 319.74 136.66 116.30
CHAngE 47.55 8.97 6.74 6.50 5.53
TuRnOvER 200 100 3,000 1,500 73,500
4655.00 10000.00 1725.00 296.90 124.00
4423.00 9800.00 1660.00 287.00 116.85
4423.00 9995.96 1660.00 291.01 116.85
-232.00 -163.58 -62.00 -6.99 -6.15
100 6,480 350 300 4,500
25.15 17.35 7.09 17.88 50.70
23.98 16.61 6.87 17.15 48.90
24.13 16.81 6.91 17.56 49.08
-0.03 0.07 -0.04 0.33 -0.78
16,008,000 14,642,500 13,012,000 12,054,500 8,265,500
Major Losers Nestle Pakistan Ltd. UniLever Pak Bata (Pak) National Foods Blessed Tex.
4655.00 10159.54 1722.00 298.00 123.00
Volume Leaders Sui North Gas Bank Al-Falah Fauji Cement Jah.Sidd. Co. National Bank Pak economy. However, there are worries over the lack of progress US lawmakers are making in agreeing a deal to avoid the fiscal cliff of tax hikes and spending cuts due to come into effect on January 1 and which could tip the economy into recession. Republican House Speaker John Boehner told the Fox News Sunday TV show that talks were going “nowhere”. He said he was “flabbergasted” when Treasury Secretary Timothy Geithner, President Barack Obama’s pointman for the talks, presented the White House’s proposal, which included huge tax increases for the rich. “I looked (at) him and said, ‘You can’t be serious,’” Boehner recounted, saying three of the seven weeks available had “been wasted with this nonsense”.
24.16 16.74 6.95 17.23 49.86
Interbank Rates US Dollar UK Pound Japanese Yen Euro
96.5473 155.0163 1.1760 125.8494
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
96.90 124.89 153.84 1.1574 95.83 12.21 26.08 25.58 99.24
97.40 126.82 156.18 1.1750 97.79 12.46 26.45 25.90 102.20
SBP moves to revive SMEs, agri activities in flood-hit areas KARACHI: The central bank has extended the expiry date of the Refinance Scheme for Revival of SMEs and agricultural activities in the flood-affected areas by one year. According to a circular issued Monday by the State Bank of Pakistan, the refinance limits already sanctioned in favor of selected banks under this scheme would also continue to be available up to Nov 30, 2013. The banks and the Development Finance Institutions (DFIs) can also apply for enhancement of limits after utilization of their existing limits. Further, other interested banks and DFIs, having branches in flood affected areas, might also apply to IH&SME Finance Department of SBP for sanctioning of fresh limits under the scheme separately for agriculture and SMEs. STAFF REPORT
CORPORATE CORNER Qatar Airways Facebook contest Etihad Airways increases flights in Pakistan
DOHA: Qatar Airways’ innovative Dream Maker contest for Facebook fans giving them a chance to be the first to fly on its maiden Boeing 787 Dreamliner to London Heathrow next month, is gathering momentum with just one day left to participate. This fabulous online competition, launched to celebrate the recent delivery of the airline’s first Dreamliner, will enable two lucky contestants to win a dream holiday to the UK with a pair of tickets each, including two night’s accommodation in London. Entrants must be over the age of 18, and the criteria to enter is to simply “like” the airline’s Facebook page and answer a set of questions regarding the 787 related videos on the site. The contest closes at midnight tomorrow December 3. Qatar Airways has also launched a dedicated website revealing features and stories about the airline’s latest aircraft. The new dedicated site www.qatarairways.com/787 provides an experiential journey into the airline’s award-winning product. The story is told through a series of interactive video vignettes which can be viewed and shared across all social media.
KARACHI: CEO Shafqat Sultana ,Majeed Aziz Begum Salma ,Mirza Ishtiyaq baig 23rd Celebration of women bank the Cake catting at local hotel.
KARACHI: Etihad Airways, the national airline of the United Arab Emirates, is boosting its services to Pakistan between January 2 and March 27 2013. Starting from January, the airline will operate four additional services to the northern city of Lahore, increasing the number of services from seven to 11 a week and offering passengers more convenient travel options. With the addition of the new services, Etihad Airways will now offer 27 weekly flights from four destinations in Pakistan, which along with Lahore include Karachi, Islamabad and Peshawar.
Revolutionary PRP technique
Teradata inaugural invitational Mobilink contributes Rs 3m for golf championship OPD facility at SKMCH KARACHI: Teradata (NYSE:TDC), the leading analytic data solutions company, held its first Teradata Invitational Golf Championship at Defence Authority Country and Golf Club Karachi. Around 71 golfers from the financial sector of Pakistan participated in the event which was followed by a prize distribution ceremony. The net winner was Jamil Iqbal (HBL) and the net runner up was Col. (R) Omar J. Qureshi. Where as the gross winner position was taken by Brig. Hassan Rafi (R) and Lt (Col) Hussain Ali (R) took the gross runner up. Longest drive was won by Bilal Nasim (Bank Al Habib), nearest to the pin went to Atif Jamali (Citibank). The Ladies’ Net Winner went to Tahira Raza (NBP).
PIA bars certified airline
KARACHI: To cater to the ever increasing interest of the public in non-surgical methods of youth maintenance and rejuvenation, a live demonstration of the revolutionary PRP technique, was conducted by Dr.Tania Shaikh, at Dr.Afzaal Lodhi & Associates. A large number of people from all ages and walks of life attended the event, where they were not only able to witness the procedure being carried out in front of them, but also share their views on the technique, with representatives of the print and electronic media who were covering the event. A demonstration of such a newly introduced cosmetic technique in Pakistan is a fresh approach and was highly appreciated by all the attendees, as it not only added to their knowledge but also allowed them to interact with the doctor and patient to get their views on the details of this ground-breaking procedure. The PRP or Platelet Rich Plasma is a non-invasive anti-aging technique that utilizes several different growth factors and hormones extracted from a patients own blood plasma to stimulate the repair and regeneration of skin and collagen.
KARACHI: Flight Safety Foundation a renowned International body for promotion of Aviation Safety has awarded Pakistan International Airline, Basic Aviation Risk Standard (BARS) Certification for maintaining safety standards. Muhammad Junaid Yunus MD-PIA resolved that the National Flag Carrier give top priority to Safety Standards and Training of its Pilots, Cabin Crew and Employees to manage the aircraft and the passengers safely in abnormal situations. “We are committed to excellence in service”.
LAHORE: Mobilink Foundation has contributed PKR 3 million towards the construction of an outpatient facility at the under-construction Shaukat Khanum Memorial Cancer Hospital and Research Center (SKMCH&RC) in Peshawar, Khyber Pukhtunkhwa. A cheque for this contribution was presented by Tariq Durrani, Regional Director (Sales), Mobilink to Dr Faisal Sultan, CEO SKMCH&RC at a ceremony organized in SKMCH&RC Lahore. Since the commencement of SKMCH&RC’s first facility in Lahore, nearly 40,000 patients have visited the facility from the province of KPK. The need for a facility in the province is further amplified by the existing lack of access to diagnosis and treatment. The contribution by Mobilink Foundation is intended to assist SKMH’s efforts to provide state-of-the-art facilities to the people of Khyber Pukhtunkhwa (KPK).Construction on the project has started in March 2011 and is expected to be completed within 3 years.
RAWALPINDI: Hashoo Foundation and City & Guild’s UK staff group photo at the launching ceremony of Accreditation of Hashoo Foundation Vocational Qualifications in hospitality services, at Pearl Continental Hotel.
Tuesday, 4 December, 2012
Published on Dec 2, 2012