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PRO 07-11-2012_Layout 1 11/7/2012 12:07 AM Page 1

Wednesday, 7 November, 2012

SIXTH IMF INSTALLMENT

Pakistan to repay $144.5m ISLAMABAD ONLINE

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ESPITE depressive economic situation of the country, the government will repay $144.5 million sixth installment to the International Monetary Fund (IMF) tomorrow (Thursday) from foreign currency reserves held by the State Bank of Pakistan (SBP). A finance ministry official told Online here on Tuesday that the government will repay a total of $534.3 million to IMF during on going month out of which $144.5 million on Thursday (Nov08) and the remaining $389.7 million on November 23.Pakistan has so far paid back $1.42 billion to the Fund. The official said the country’s foreign exchange reserves will continue to face pressure due to re-payment of IMF loans in the next more than three years as Pakistan is likely to go to the International Monetary Fund (IMF) in fresh loan in current fiscal year 2012-13 to seek loan for the retirement of IMF’s Stand-by Arrangement (SBA) facility. According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7 billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco. Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.

OGDCL rigs bidding process in accordance with PPRA rules ISLAMABAD STAFF REPORT

OGDCL rigs tender bidding process has been concluded strictly in accordance with the terms and conditions of the tender enquiry while following the PPRA Rules. The bidders were evaluated as per the given criterion and after necessary processing the lowest evaluated bidder has been awarded the contract i.e. the contract has been awarded to the technically qualified and financially lowest bidder. The distorted information as reported suggests that this has been done at the behest of some interested party and is thus motivated. We have reasons to believe that this is a sponsored arrangement and done with the objective of changing

or influencing the final outcome of the bidding process. It is imperative to mention that OGDCL is the largest listed company of the Country and is also listed on the London Stock Exchange. The company has shown impressive growth in terms of recoverable reserves, production and revenues. The pattern of growth witnessed by the company has necessitated augmenting its exploration infrastructure and minimizing reliance on rental equipment and rigs. In furtherance of this concept the company embarked on the course of acquiring rigs to improve its fleet and drilling capability. It is an attempt to understand the transaction has played in the hands of some elements who have direct interest in this matter and are willing to go to

Remittances stabilising economy: Dr Nadeem ISLAMABAD: State Minister for Overseas Pakistanis Dr Nadeem Ehsan said on Tuesday that the foreign remittances and investment in the country by overseas playing a vital role in stabilizing the economy of Pakistan. Talking to APP, he said the overseas Pakistanis are a great asset of the country, who have assisted Pakistan and government is taking several steps for their welfare. To a question, he said MQM has been playing its leading role to make an enlightened, liberal and welfare state. He said that a stable Pakistan was in the best interest of the world adding that the people in Pakistan must be empowered to play an effective role. APP

Pharma companies want govt to consider price adjustment Bureau rejects mere notification of hardship cases KARACHI: The recent notification for increase in prices of a few hardship cases is a revision and not increase, said Tuesday a spokesperson of Pharma Bureau, a representative body of multinational pharmaceutical companies operating in Pakistan. The spokesperson said due to inflation and rising cost of the input materials it had become impossible for the industry to continue producing quality medicines. He said the revision would merely help the industry to continue producing those drugs at break-even, just to keep them available to the patients as otherwise they would have to buy imported drugs at prices as much as ten times higher than the locally produced drugs. The spokesperson said the recent notification by the government to approve increase in prices of few medicines was long overdue and it is much less than the increase which the industry demanded. However, it would help the companies to keep producing these drugs as most of these were being manufactured at loss. The spokesman expressed the hope that the government would consider the price adjustment request by the pharmaceutical companies as they have not been given an increase for the last 10 years whereas the input and operational costs have increased manifold, making it difficult for the manufacturers to produce many important drugs even at break-even. STAFF REPORT

any length for achieving personal benefits disregarding national interest, truth and facts. It may be added that unprofessional, biased and concocted reporting retards investor confidence and can potentially impair growth of any commercial undertaking; therefore

impartiality, independence, research, reason and professionalism are conditions precedent for investigative journalism. The objective should be to inform the public and not spread rumors and disappointment by relying on unsubstantiated, wrong, motivated and mischievous material.

PMEX to launch collateral management body for warehouse receipts KARACHI STAFF REPORT

The Pakistan Mercantile Exchange (PMEX) is in the process of launching a collateral management company for the storage, certification and issuing warehouse receipts. This was stated by Faisal Malik, business head of agricultural products at PMEX, while addressing a seminar jointly organized by the PMEX, Karachi Stock Exchange (KSE) and Institute of Capital Markets (ICM) on the commencement of AGRI Commodities physical deliverable trading here at the KSE Monday. Malik explained investment opportunities and benefits of agricultural commodities futures trading at the PMEX to brokers and general investors. He said the futures contract at PMEX is an agreement between two parties to buy or sell a commodity at a certain time in the future against an agreed price. The PMEX official said the futures contracts can be useful when marketing grains because they can be a temporary substitute for an intended transaction in the cash market that would occur at a later date. In the absence of a proper risk-management tool, banks are reluctant to fund farmers. If they do, the interest rates are very high. The trading of Rice (IRRI-6) and wheat has already started on PMEX. Earlier, Nadeem Naqvi Managing Director

KSE, Javed Hassan CEO ICM, Maroof Moulvi of M.M Group of Companies, Majeed Adam Director PMEX and other agriculture related personnel were present on the occasion. Naqvi opened the seminar by welcoming the guests and explained in detail the importance of commodities in developed economies. He welcomed the steps taken by PMEX on introducing AGRI commodities in their portfolio and encouraged the local players to use these hedging products being offered by the country’s capital markets. Speaking on the occasion, Javed Hasan CEO of ICM said PMEX is the only organization in Pakistan which provides a centralized and regulated system for future trading and is regulated by Securities and Exchange Commission of Pakistan. He welcomed the launch of new contracts at PMEX and maintained that PMEX has a long way to go in the development of commodities trading in Pakistan. Maroof Moulvi of M. M. Group mentioned that his company has been extensively engaged in the process of market development and believed that their role as a market-maker and liquidity provider would be remembered for long period of time.Sani-e-Mehmood Khan, General Manager KSE, added that the availability of futures markets and hedging facilities reduces the risk perception, and with banks willing to provide easy loan to farmers makes the Exchange based futures commodities trading, an easy bit.

Caution before US vote keeps Asian shares steady TOKYO AGENCIES

Asian shares and the dollar steadied on Tuesday with investors’ risk appetite curbed by uncertainty over the outcome of the tight U.S. presidential election and renewed doubts over Greece’s political ability to push through severe fiscal reforms. Risk-aversion underpinned the dollar near a two-month high against a basket of major currencies of 80.843 hit on Monday, while pressing the euro down 0.1 percent to $1.2782, near Monday’s two-month low of $1.2767. The MSCI index of Asia-Pacific shares outside Japan was nearly unchanged, pulled higher by a 0.3 percent rise in Australian shares and a 0.2 percent increase in South Korean shares, but countered by weakness in most other Asian equities. Hong Kong’s Hang Seng Index fell 0.6 percent, dragged down by a drop in the index heavyweight HSBC Holdings. “The main focus is the U.S. election,

and uncertainty ahead of that is going to keep markets, including Japanese stocks, in a range,” said Kenichi Hirano, operating officer at Tachibana Securities. Japan’s Nikkei average fell 0.4 percent. US President Barack Obama and Republican challenger Mitt Romney are essentially tied, but the Democrat has a slight edge in some of the pivotal states where the election will be decided, according to Reuters/Ipsos polling. If the election is too close to call in a number of states and the result is delayed, it could roil markets as it did in the protracted 2000 election battle. Analysts have said Obama’s re-election is perceived as negative for equities, while markets see Romney as stock-friendly. Implications from the outcome of the election may differ by asset class, but markets broadly will be faced with the risk of higher volatility due to difficult negotiations over a “fiscal cliff,” the $600 billion worth of tax hikes and spending cuts set to kick in next year, which threat-

ens the U.S. economy. In addition to the U.S. election, investors need to be mindful of the potential for renewed stress in Europe and China’s political leadership transition, Morgan Stanley said.

“Markets are currently beset by opposing (positive and negative) factors, with the weight of upcoming risk events now turning us decidedly more cautious ... Risks of a messy negotiation around

the fiscal cliff are likely to increase volatility at minimum,” it said in a research note. China’s ruling Communist Party will unveil its new top leadership team as the Chinese congress convenes on Nov. 8, but expectations for stimulus from the new administration look to be unfounded, given the timeline of the prolonged political transition that ends in first quarter 2013, Morgan Stanley said. For Asia this session, investors will eye whether the Reserve Bank of Australia’s will announce another interest rate cut in its decision due at 0330 GMT. Market views are divided. The Australian dollar was steady around $1.0365. U.S. crude futures were down 0.1 percent at $85.59 a barrel and Brent inched up 0.2 percent to $107.92. Asian credit markets were subdued with investor risk aversion intact, leaving the spread on the iTraxx Asia ex-Japan investment-grade index little changed from Monday.


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Pakistan unveils its armaments as IDEAS 2012 kick starts KARACHI

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Major Gainers COMPANy Wyeth Pak Limited Island TextileXD Indus DyeingXD Mithchells Fruit Sanofi-Aventis Pak

OPEN 890.00 422.05 495.01 351.00 330.62

HIGH 934.00 443.15 510.00 368.55 340.00

LOW 905.00 443.00 500.00 333.45 340.00

CLOSE 931.00 443.10 510.00 360.50 340.00

CHANGE 41.00 21.05 14.99 9.50 9.38

TuRNOvER 150 500 3,100 1,000 100

9601.00 4560.00 1498.50 1268.00 299.90

9500.00 4560.00 1406.00 1268.00 287.46

9600.50 4560.00 1406.00 1268.00 290.07

-249.00 -240.00 -74.00 -22.00 -12.51

4,500 40 700 50 41,600

6.85 76.67 53.60 9.55 10.24

6.57 72.15 52.50 8.45 9.85

6.68 76.60 53.20 9.34 9.98

-0.15 3.58 -0.59 0.40 -0.27

16,003,000 11,272,000 6,046,500 5,404,500 5,166,000

Major Losers

STAFF REPORT

HE Ministry of Defence Production is all set to showcase some of the military equipment manufactured in Pakistan as around 80 foreign delegations fro across the globe have arrived in this metropolis to participate in the 7th International Defence Exhibition and Seminar (IDEAS) commencing from today, Wednesday, at the Karachi Expo Center. “Some of the major indigenously developed products to be showcased in IDEAS2012 include Main Battle Tank Al–Khalid, JF–17 Thunder Fighter Aircraft, Jet Trainer Aircraft and UAVs etc,” Commodore Siddiq Akbar, Director (Media) of Defence Export Promotion Organization (DEPO), Ministry of Defence Production, told a curtain-raiser briefing here on Monday. He said around 80 delegations would represent different countries from around the globe, of which around 24 delegations are high-level, headed either by the defence ministers, secretaries or service chiefs of the respective countries. In addition to this, 209 firms would exhibit their products, of which, 135 are foreign and 74 are local. “We have booked a major portion of available space at the Expo Center to accommodate defence companies from Turkey, China, North America, South America, Europe, Asia, Far East,” he added. Despite the fact that the exhibition is being held after a gap of four years, we have received overwhelming response from the exhibitors as well as delegations from around the globe, said Commodore Akbar. Brigadier Mazhar, Director Coordination, DEPO and Zulfiqar Ali Mahar, SSP Traffic Central were also present on the occasion. The exhibition, Akbar said, would be open for officially invited delegations comprising senior officials of foreign countries and trade visitors from abroad and inland. Last Day of the exhibition would be reserved for the students of colleges and universities, he added.

Business 02 UniLever Pak Nestle Pakistan Ltd. Bata (Pak) XD Colgate Palmolive National FoodsXD

9849.50 4800.00 1480.00 1290.00 302.58

Volume Leaders Fauji Cement Engro Foods Ltd. D.G.K.CementXD Quice Food Maple Leaf Cement

6.83 73.02 53.79 8.94 10.25

Interbank Rates US Dollar UK Pound Japanese Yen Euro Holding of IDEAS-2012 is a proud moment for all of us and is a clear manifestation of the fact that Pakistan does not lack behind in quality defence production. Meanwhile, the commodore said, during the five-day event there would be over hundreds of high level meetings planned on the sidelines of the exhibition between foreign delegates, key government officials and participants of the exhibition for forging alliances in defence production. International Defence Seminar is another important facet of IDEAS, which would be held in a five-star hotel in the evening of 7th Nov. From this time around, another intellectual forum has been introduced in the shape of Side Line Conferences. These Conferences would be held at the venue of IDEAS on 8th Nov. During these conferences, the challenges being faced by the armed forces of Pakistan in particular, and international forces in general, would be highlighted. “We have made special arrangements to facilitate coverage of the event by local and international media as media’s role in the present

era could not be undermined,” he said. He added that the presence of large number of international media depicts the importance of IDEAS-2012. Media would play a key role in promoting potential of Pakistan Defence Industry on the international horizon. On the occasion, Zulfiqar Ali Mahar, the SSP Traffic Central also briefed the media about the traffic plan and alternate arrangements for traffic, in order to facilitate public during the rush hours of IDEAS-2012.

96.2773 153.8801 1.1996 123.1387

Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar

Buy

SELL

96.15 121.66 151.76 1.1781 95.25 12.17 25.90 25.29 98.67

96.65 124.02 154.67 1.2006 97.58 12.43 26.37 25.73 102.02

Business community can play role in country’s development: ICCI ISLAMABAD: The business community of the country can play vital role in economic development of the country. “The nations who gave importance to its business community, have always succeeded,” Zafar Bakhtawari, President of Islamabad Chamber of Commerce and Industry (ICCI) said here at a dinner organized by former director Islamabad Stock Exchange, Naeem Siddiqui. Bakhtawari said that by following the rules of Islamic civilization, we all should follow best business practices which create an environment of mutual respect and trust. Munawar Mughal, Former President ICCI said that ICCI had always served the cause of small traders and highlighted their issues at all relevant forums, which showed that the ICCI was a true representative of traders. He said that the traders of the federal capital were facing big housing problems and demanded that the CDA should also consider a separate housing society for the traders. He said that non-existence of a balanced rent law in the federal capital was the main cause of rising rent disputes between tenants and landlords and this situation was also affecting business activities. APP

CORPORATE CORNER PTCL inaugurates One-Stop Shop in Cantt, Rawalpindi

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) inaugurated another revamped and remodeled PTCL One Stop Shop (OSS) in Cantt, Rawalpindi, as part of its new “Customer First” campaign, which focuses on building an enhanced customer care experience. Widely recognized as the Company’s public face, PTCL’s nation-wide 191 One-Stop Shops are facilitating customers by offering them quality products and tremendous services in billing adjustments, fault rectification, new service requests, duplicate bills, billing installments and payments all under one roof. Guest of honor, Senior Executive Vice President (SEVP) Commercial, Naveed Saeed inaugurated the newly renovated One Stop Shop. Executive Vice President (EVP) Customer Care, Kamran Malik; Executive Vice President (EVP) Business Zone North, Abdul Sattar Naeem; General Manager Commercial-North, Jawad Saleem; Regional General Manager (ITR), Nadeem Akhtar Awan; Regional General Manager (RTR), Zafar Shafique; and Senior Manager (HR&A), Taimoor Ahmed also attended the ceremony. “PTCL One Stop Shops bring all facilities for customers under one roof” said Senior Executive Vice President (SEVP) Commercial, Naveed Saeed while inaugurating the OSS. “We aim to exceed customer expectations by providing services and requisitioning requests in minimum of time”. Equipped with latest products and services, these outlets are offering one window operations at strategic locations spread all over the country to reach every customer. PRESS RELEASE

Etihad Airways increases coral economy

have a strong linkage and create a bridge between ACCA and the public sector”, said Noor Aftab, head of ACCA Islamabad. PRESS RELEASE

KARACHI: November 6, 2012 – Etihad Airways, the national airline of the United Arab Emirates, today increased the complimentary baggage allowance for Coral Economy class guests to 30kg.* Members of the Etihad Guest program will enjoy additional allowances. For example, an Etihad Guest Elite member traveling in Economy will now be able to check as much as 50 kilos of baggage on a complimentary basis. Peter Baumgartner, Etihad Airways Chief Commercial Officer, said: “We are continuously looking at ways to improve our offering for guests. We believe our generous baggage allowances will prove very popular with our guests across all cabins, from Coral Economy to Pearl Business and Diamond First class, while our Etihad Guest members enjoy even more baggage rewards.” In March 2012, Etihad Airways increased the baggage allowance for premium passengers to 40kg for Pearl Business class and 50kg for Diamond First class. PRESS RELEASE

PIA post Hajj flights operate as per schedule

ACCA Islamabad inaugurates Public Sector Group ISLAMABAD: ACCA Islamabad launched the Public Sector Group recently, to share experiences and insights matters related to public financial management, good governance and people skills and ethics across the public sector. The launch of the Public Sector Group includes representation from the key public sector stakeholders to discuss challenges and opportunities that matter to them. This group will enable ACCA to create a strong integration between its private and public sector stakeholders, policies and best practices. “We seek to open a dialogue with public sector organisations and develop an agenda to drive improvements that serve economic growth and stability. Islamabad serves as the national hub for policy making and agenda setting and is home to government, NGOs and the donor community making it an ideal city to host this group. The same sound principles of financial management apply to both the private and public sector. Our ambition is to

LAHORE: PIA Post Hajj flights are now operating as per schedule PIA spokesman said here on Monday while briefing media persons at Jeddah. PIA has so far operated 46 Post Hajj flights bringing over 20,000 Hajjis back to Pakistan, the flights from Jeddah on Monday to Lahore, Karachi and Quetta arrived according to the expected time of arrival (ETA) at their respective destinations. PIA Spokesman said that so far the PIA has operated 46 flights from the Jeddah Hajj Terminal with over 20,000 Hajjis on board. According to the flight statistics released from the Jeddah Airport of the 60 different airlines, released by the Saudi Civil Aviation Authorities, the departure of airlines delay from the Jeddah Haj Terminal for the first 4 days of returning Hajjis ranged from half an hour to 15 hours. He stated that two of the African airlines, the average delay was from two to 15 hours while the Shaheen Air of Pakistan operating four flights daily was behind schedule by 12 hours. PRESS RELEASE

and innovation in all fields of wireless communications for the last 80 years. The EMBRAER Defense & Security has been commissioned by the Brazilian government. The company builds a new military transport aircraft called KC-390 which is the latest generation of transport aircraft equipped with R&S M3AR airborne transceivers from Rohde & Schwarz. These transceivers are already being used in various other aircraft types such as the A400M, Eurofighter, NH90, TIGER and F16. Customers around the world depend on the R&S M3AR to provide secure and reliable radio communications in the most challenging environments. Launched in 2008, IDEAS is the only specialized defense exhibition in the Southeast Asia region that brings together companies delivering cutting-edge technologies designed to meet armed forces’ security challenges of the 21st century. STAFF REPORT

Advance Telecom wins ‘Best Distributor of Nokia Award’ for 5th consecutive time

World famous Rohde & Schwarz, EMBRAER also exhibit in IDEAS 2012 KARACHI: The world’s leading companies related to the manufacturing of highly sophisticated defence equipment would be showcasing their latest products as the International Defense Exhibition and Seminar (IDEAS) 2012 is going to start from today, Wednesday. Rohde & Schwarz and the EMBRAER Defense & Security are two of the scores of globally renowned entities that are participating in the five-day event. The annual exhibition would be held here at the Karachi Expo Center till Sunday, November 11. Rohde & Schwarz is the world’s famous quality, precision

KARACHI: Advance Telecom, Pakistan’s largest mobile phone sales, distribution and warranty claim network, has won Nokia’s Best Distributor Award for the 5th consecutive time. The award was presented to Mr. Rizwan Majid (CEO, Advance Telecom) and Mr. Hannan Asif (Director, Advance Telecom) by Mr. Shiv Shiva Kumar (SVP Nokia IMEA Sales) at “Nokia Annual Conference 2012” held in Berlin, Germany. This accolade was won amongst 92 countries participating in the IMEA region. PRESS RELEASE

Wednesday, 7 November, 2012


profitepaper pakistantoday 07th November, 2012