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Pakistan to get 42m Euro aid from EU BERLIN
NDIA will continue to be a focus of the European Community’s humanitarian assistance in 2013, but five major global hotspots of crises, including Pakistan, will receive the largest chunk of over 661 million euros aid earmarked for this year, the European Commission has said. Vulnerable populations subjected to “long-enduring crises” in India and eight other countries in Asia, Africa and Latin America will receive a part of the funds allocated under the commission’s humanitarian aid plan for 2013, which has been just adopted in Brussels.
Cellular service suspension: PTCL regains its glory
For the victims of “forgotten crises”, who receive little media attention, the EU is “often the only major donor”, the commission said in a press statement. Besides India, several communities in Bangladesh, Sri Lanka, Pakistan, Myanmar, Algeria, Yemen, Colombia and the Central African Republic will also receive the EU assistance. “The only new crisis on this year’s list is the one caused by conflict and internal displacement in Pakistan,” the statement said. Pakistan will receive a total of 42 million euros humanitarian assistance from the EU. The crises in the five main regions of the EU’s humanitarian aid operation arise from years of conflict, food shortages or both, the commission said.
It will finance the aid operations in the Sahel region, including its relief efforts in war-torn Mali, with an allocation of 82 million euros while 80 million euros has been earmarked to help ease the sufferings of the population caught up in the conflict in the Sudan and South Sudan. The commission also allocated 54 million euros to cope with the emergency situation created by an escalation of the conflict in the Democratic Republic of Congo while the EU’s relief efforts in Somalia will be financed with an allocation of 40 million euros. Geographically, Sub-Saharan Africa will receive the largest share of the EU humanitarian aid amounting to 344.5 million euros or 52 per cent of the commission’s overall commitments.
The funds will flow to its partner organisations in the recipient countries, which will implement the aid projects. In addition to the funds allocated to cope with the most obstinate humanitarian crises around the world, the commission will also keep reserve resources this year to respond to unforeseen crisis and other emergencies. The EU’s global humanitarian aid is allocated on the basis of an annual global need assessment, in which the commission evaluates the aid requirements of 140 developing countries in terms of their vulnerability and recent occurrence of a crisis. In 2012, the commission identified 68 countries as experiencing at least one humanitarian crisis.
Stocks close lower, rupee weakens
Suspension of cellular service in the wake of law enforcement incidents has increased usage of PTCL land line services in the country. Cellular services suspension caused loss of billion of rupees to cellular companies while on the other hand it increased the importance of PTCL land line network that remains the only source of communication during cellular services suspension. Earlier, millions of consumers in the country were passionate about mobile telecommunication, its growth and penetration in the country and PTCL and other land line networks were being under estimated and their importance had decreased. However, after the new phenomena adopted by the present regime to stop telecommunication through mobile network, have increased the importance of PTCL and large number of mobile phone addicts have turned their attention towards PTCL land line network system. During suspension of cellular networks major sectors including media organisations, law enforcement agencies, health services, ambulances and other departments are dependent on the PTCL landline connections. The importance of landline number is even more in areas where cellular services are not available at all. During a survey from people of different walks of life, people said it seemed imperative that they should keep landline numbers of emergency services and important professional and personal contacts updated to avoid any inconvenience in an emergency situation like this.
KARACHI STAFF RePORT
Pakistani stocks closed lower on Monday amid uncertainty over the outcome of a large political protest planned in the capital and protests over sectarian killings in the financial hub of Karachi. The market fell more than 100 points in the morning session but recovered during the day after the Karachi protests were called off.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.01 per cent, or 1.53 points, lower at 16,633.18. Around 31 million shares were traded in Fauji Cement Company Ltd, representing 36 per cent of the number of shares traded that day, said dealer Samar Iqbal at Topline Securities. Fauji Cement was up 4.3 per cent to 7.03 per share while information technology and communica-
tions company TRG Pakistan rose 15.16 per cent to 6.00 per share. Byco Petroleum fell 0.83 per cent to 13.12 per share and Bank of Punjab was down 0.57 per cent to 8.76 per share. In the currency market, the Pakistani rupee ended weaker at 97.30/97.36 against the dollar, compared to Friday’s close of 97.26/97.32. Overnight rates in the money market rose ending at 9.40 per cent compared to Friday’s close of 9 per cent.
LSM grows 6.5% in November, 2.38% in five months ISLAMABAD APP
The country’s Large Scale Manufacturing (LSM) has registered positive growth of 2.38 percent during the first five months of the current fiscal year over the corresponding period of the last financial year. On a year-on-year basis, the LSM grew by 6.5 percent during the month of November 2012 when compared to the same month of last year, according to the data of Pakistan Bureau of Statistics (PBS). The overall Quantum Index Numbers (QIN) of LSM stood at 105.66 points during July-November (2012) against 103.20 points during July-November (2012). During the period under review, industries monitored by Oil Companies Advisor Committee (OCAS) registered increase of 0.63 percent growth while the indices of Ministry of Industries grew by 0.48 percent and that of Provincial Bureaus of Statistics by 1.27 percent. The manufacturing items that witnessed growth during the first five months of the current year over the same period of last year included food beverages and tobacco (7.96%), Iron and Steel products (16.80%), coke and petroleum products (9.86%), paper and board (33.68%), chemicals (0.17%), rubber products (30.02%), pharmaceutical (6.17%), non-metallic mineral products (3.35%) and textile (0.01%). The manufacturing items that witnessed decrease in production during the period included fertilizers (14.54%), electronics (13.62%), leather products (5.10%), wood products (19.18%), engineering products (10.95%) and automobiles (8.73%). Meanwhile, the industrial growth during November 2012 increased by 6.50 percent but decreased by 1.12 percent when compared to the growth of November 2011 and October 2012 respectively. The manufacturing items that witnessed growth in November 2012 over the same month of last year included beverages and tobacco (6.09%), Iron and Steel products (35.80%), coke and petroleum products (21.36%), paper and board (49.64%), chemicals (0.46%), rubber products (19.64%), pharmaceutical (9.91%), non-metallic mineral products (13.60%) and textile (1.09%). The manufacturing items that witnessed decrease in production during November included fertilizers (3.88%), electronics (35.31%), leather products (20.02%), wood products (22.72%), engineering products (1.37%) and automobiles (8.60%).
Local industries to suffer from India MFN, says USAID ISLAMABAD Online
A study conducted by US Agency for International Development (USAID) said that opening of free trade with India under Most Favourite Nation (MFN) will be an onslaught on local industry by Indians, and the agriculture sector will suffer. The study recommended that tariff quota method should be adopted for import of steel, iron, pharmaceutical and agriculture sector goods from India under MFN status regime. The report further revealed that in the global scenario, Pakistan’s export to India will grow. The report revealed that though India had not been given (MFN) status, Pakistan had already operated under it by liberalising 97 percent trade for Indian goods. Commerce Ministry was required to conduct a study regarding impact of liberalising trade with India before taking the decision to grant MFN status
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to India. It had got the approval of Cabinet to grant MFN status to India by December end 2012. “But the study has been conducted in January 2013 which exposed the flawed plan of commerce ministry to grant MFN status to India without going through any comparative analysis,” an official said adding that USAID study had confirmed the concerns raised by all stakeholders including textile, industry and agriculture sectors. According to a study conducted with the technical assistance of USAID to assess the impact of liberalising trade with India following MFN status, Indian trade regime is more restricted for Pakistani exports. The
study noted that Pakistan had given much more to India in allowing items to export to Pakistan. “However, India has liberalised only 43 percent trade for Pakistani goods and our major exports are not being given preferential treatment by the former,” the renowned economist Hafeez Pasha said in a report. The study recommends that Pakistan should not discontinue negative list at all. It said the complete phase out of negative list should be avoided to protect the local industry and agriculture sector. The report observed that agriculture sector was
a real issue for Pakistan to open for trade with India under MFN status and recommended that sensitive list on agricultural goods should be expanded to protect the major crops. It noted that tariff on cotton import from India is zero but India had tariff restriction in this regard. The study also accepted that cotton was a genuine issue and recommended a quota system for Indian cotton exports to Pakistan should be introduced to protect the farmer community. It said there should have been parity in textiles. The report revealed that India was giving subsidy of $ 297 per hector whereas Pakistan gave $ 188 per hector. India is giving subsidy almost on all items including fertilizer and power. The opening of trade for Indian industry will be an onslaught by Indian Industry and therefore the study recommended that “we should give a chance to industry to survive under MFN status with India”.
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Business 02 Remittances to swell by $16b by end of FY13 KARACHI
S TA FF ReP O RT
CONOMIC observers expect the inflow of ever-increasing worker remittances to the country rise to a historic $ 16 billion by the end of this finan-
cial year. “Home remittances continue to remain upbeat reaching the level of USD 7.1 billion during the first six months of FY13,” said analysts at InvestCap Research. Terming it as one of the major supporting tools for the current deficit, the remittances from expatriates, they said, continued its upward trajectory. During the first half of FY13, remittances posted a colossal growth of 12.5% YoY to USD 7.12 billion, in absolute terms increasing by USD 791 million. However, on a monthly basis, the head registered a growth of 11% reaching USD 1.13billion in December 2012. Such increase was however misleading, emanating from a low base effect of November, 2012, rather than depicting an actual increasing trend. “The country witnessed a huge influx of
remittances, touching USD 1.37 b, in October, 2012, due to the Eid factor,” viewed Abdul Azeem at the InvestCap Research. Following this, the analyst said, remittances in November, 2012, remained extraordinarily depressed at the level of USD 1.02 billion thus leading to a low base effect in December, 2012. The huge chunk of remittances received from the Middle East continued to play a significant role in the overall inflows into the country. Within this region, the major oil economy, Saudi Arabia remained the key contributor with 28% weight in total remittances; remittances from Saudi Arabia posted a growth of 18% YoY to USD 1.96 billion during the first half of FY13. One of the strongest economies of the world, Saudi Arabia continued to import employees from Pakistan, therefore, a positive impact was observed in remittances from this country. Another region of the Middle East, United Arab Emirates also remained a key source of remittances as it maintained 21% weight in total remittances from where the over all remittances increased by 3% YoY to USD 1.46 billion in the first half of FY13. Amongst the Western countries, USA
Services trade deficit shrinks to 78.91% ISLAMABAD: The services trade deficit during July-November (2012-13) decreased by 78.91 percent as compared to same period of last year as its exports surged by 41.6 percent with imports showing negative growth of 2.11 percent during first five months of the current fiscal year. The services’ exports from the country were recorded at $2.937 billion during July-November against the exports of $2.074 billion during July-November (201011), showing growth of 41.6 percent, according to the data of Pakistan Bureau of Statistic (PBS). On the other hand, the imports of services into the country during first five months of current year decreased by 2.11 percent by going down from last year’s imports of $3.255 billion to $3.186 billion, the data revealed. Based on this data, the services trade deficit in November 2012 increased by 8.22 percent and 25.03 percent when compare it with October 2012 and November 2011 respectively. The exports of services during November 2012 were recorded at $346.19 million against the exports of $403.05 million in November 2011 showing a decrease of 14.11 percent while imports during November 2012 edged up by 0.04 percent going up from $631.11 million to $631.34 million in November 2012. As compared to the exports of $470.76 million during October 2012, the exports during November 2012 decreased by 26.46 percent, while imports of services during November 2012 also decreased by 14.02 percent as compared to the imports of $734.25 million in October 2012. APP
was the most important contributor, accounting for 16% share in the total home remittances although the growth was flat (0.5% YoY) but inflow of USD 1.16 billion was witnessed during the first six months of FY13. Furthermore, remittances coming in from the UK experienced massive growth of 38% YoY during the same period. UK ranked second amongst the major contributors to increase in remittances in the first six months of FY 13. “We expect the consistent upward trend in remittances to provide support to the current account (C/A) during the remaining period of FY13,” Azeem said. However, he warned, IMF payments were likely to exert pressure on the current account deficit, as the country has to pay USD 1.7billion during the second half of FY13. Although, lower imports and rising exports continue supporting the trade deficit, in the latter half of FY13, we expect a significant draw back to be evident in the form of shortage of gas, absorbing any such positives. We foresee such shortage to injure exports of the country, mainly the textile sector, being a major contributor to the country’s exports.
Major Gainers CompanY
Nestle Pakistan Ltd. 4600.00
Millat Tractors Ltd. 600.37
Attock Petroleum Ltd 507.01
Philip Morris Pak.
EFU Life Assr.
Major Losers Bata (Pak)
Volume Leaders Fauji Cement
TRG Pakistan Ltd. 5.21
Initial run of Byco’s new refinery
KARACHI: Byco’s newly completed oil refinery successfully completed its initial run of about 48 hours and was able to produce high speed furnace oil (HSFO), high speed diesel (HSD) and Naphtha according to the required specifications. An official said on Monday that this initial run was conducted during the course of pre-commissioning and commissioning activities. Following this activity, the new Refinery will shortly be put to continuous 72 hours trial run. This is yet another milestone achieved which is a step forward towards smooth and safe commercial production, it was further stated. Qaiser Jamal, the chief executive officer (CEO) of Byco Oil Pakistan Limited, said that this is yet another significant achievement by the Refinery’s Commissioning and Operations teams. The new refinery with a crude oil processing capacity of 120,000 barrels per day will be the largest in the Country. Based on full throughput it is expected to produce on annual basis about 1.6 million tons of HSFO, 2.4 million tons of HSD and 1.1 million tons of MS. As all these products are in deficit and are being imported therefore, production from this new refinery will replace import and thus help save foreign exchange for the country. APP
Forex Rates BuY US Dollar
Great Britain Pound
Hong Kong Dollar
Sialkot exporters appreciate Coca-Cola pledges Rs 9.8m to Kashf Foundation DS-Concept KARACHI: Following the success of the 2011/12 Coca-Cola Pakistan and Kashf Foundation partnership to promote women empowerment, Coca-Cola has extended its project appropriately titled “Women Economic Empowerment” for another year. A further grant of Rs. 9.8 million will be utilized for establishing sustainable income streams to economically empower women through microfinance. The project intends to provide direct financial access via soft loans to 350 female clients from South Punjab and Sindh, whilst simultaneously building support networks and developing personalized entrepreneurial skills amongst the beneficiaries, to augment their business acumen. It is projected that within 2 years, these women entrepreneurs will already be seeing a 10% increase in their annual income. Speaking about the Coca-Cola and Kashf Partnership, Rizwan U. Khan, General Manager, the Coca-Cola Export Corporation, Pakistan and Afghanistan stated: “At Coca-Cola we believe that women are a vital pillar of society and an integral facet for the economic development of Pakistan. The Coca-Cola and KASHF Partnership serves as a prime example of empowering women and communities to help build a sustainable tomorrow for the people of Pakistan.” PReSS ReleASe
(L-R) Fatima Nissa (Asst Manager Operations, DS-Concept), Rafi-ul-Hasan (AVP, DS-Concept), Abdul Majeed (President, SCCI), Shafiq-ur-Rehman (Finance Secretary, SCCI) and Ikram-ul-Haq (Vice President, SCCI). PR
KARACHI: Sialkot-based exporters have appreciated the services provided by DS-Concept to increase export turnover. The Sialkot Chamber of Commerce and Industry (SCCI) office-bearers said this to German Consul General Dr Tilo Klinner who visited Sialkot. SCCI President Abdul Majeed, the vice president and other office-bearers told the German consul general that Sialkot was the second largest source of foreign exchange earnings after Karachi. Majeed also told Klinner that Sialkot was renowned in the world for its sports goods and surgical instruments. The SCCI official told Dr Klinner that DSConcept, a German firm, was helping Sialkot’s exporters by providing immediate post-shipment financing along with 100 percent invoice insurance. PReSS ReleASe
KARACHI: The honorary trade adviser of the Thai government and President PTFA&BF, Arif Suleman presents a shield to the Deputy Prime Minister and Foreign Minister Surapong Tovichakchaikul during his recent visit to Pakistan. The Ambassador of Thailand in Pakistan Marvin Tan-Attanawin, Consul General of Thailand in Karachi Wichai Sirisujin, Irshad Adamjee and Rehman Khan are also present on the occasion. PR
Warid Telecom launches two interactive mobile apps for its customers LAHORE: Warid Telecom, leading innovators in Pakistan’s telecom industry, has launched two interactive mobile apps for its customers. The launch of PakWheels and Hari Bati mobile applications is a key step by Warid Telecom towards service innovation. Warid has joined hands with PakWheels.com to bring car buying and selling on all Android mobile phones using version 2.1 and above. Customers can buy and sell cars and view price information of popular car models in Pakistan. The PakWheels Android application will allow users to quickly and easily search and locate used cars in their city and also enable them to put their cars up for sale. In addition to PakWheels, Hari Bati is a fascinating new mobile application by Warid Telecom developed in collaboration with Train of Thought (Pvt) Ltd.; which has the ability to show street traffic on a map based interface. Allowing users to mark frequently visited routes
LAHORE: Bata Pakistan MD Muhammad Qayyum inaugrating Bata’s flagship concept outlate at G-1 commercial market, Johar Town. PR
and receive constant updates regarding the traffic situation directly on their handsets. The application has an in-built notification system which will push alerts to the user when he or she is approaching a traffic jam so that the user can change course and avoid traffic. Both applications are free to download. Applications are only downloadable through a Warid GPRS connection. Once downloaded, updates on the app can be received using a wi-fi connection in addition to using GPRS. PReSS ReleASe
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