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Stocks to track earnings with an eye on Europe Page 02
Sunday, 15 April, 2012
WALKING ON SUNSHINE
ALL tHE SUrGIcAL INdUStry NEEdS IS A bIt Of SUNLIGHt
SIALKOT STAFF REPORT
akiStaN’S textile mad ups have received a warm welcome in india as the thousands of visitors at life Style Pakistan exhibition showed their interest in the first ever displayed Pakistani products. lawn was one of the major item, being purchased by indians specially women at various stalls. the lightweight lawn cotton suits and kurtas in the exhibition seem to be a rage among women. the stall owners and textile exporters from the country said that they have so far sold out majority of the designs so far. By Sunday they could sale all products in Delhi. in the four days long exhibition, beside the textile made ups, the
precious and semi-precious jewellery, accessories, khussa, furniture, home furnishings, handicrafts, textiles, and fabrics from various cities of Pakistan were also displayed for the indian buyers and people. as the people here are preparing cloths for the summer seasons, the textile items mainly lawn garments attracted the most visitors specially women. talking to Pakistan today, Ziad Bashir, Director of Gul ahmed textile, the leading and popular garment retailer and export house in Pakistan, said that he was very confident of the demand for his products inindia. “the response has been fantastic. lawn cloth is very soft and light, making it perfect for this weather. Women wear them in Pakistan all the time as the weather there is similar,” he said though the products of Gul ahmed
were already popular in india, the exhibition has helped to facilitate the lawn loving people here.” i am in search of distributors and partners to make the company’s products available here at a reasonable cost,” he said adding that his products were being sold at higher prices in different stores of Delhi. the lawn cloths were mainly coming to india via a third country or illegal routes due to the ban on imports. a number of women, who were purchasing the textile items at Paragati Maidan, said that they were already purchasing Pakistani lawns from Dubai at higher costs. “if Gul ahmed opens its own store in Delhiwould be benefited the most,” a women who was holding a dozens of garment suits said. another exhibitor at Pragati said that though they have formal wear, the response for the lawn suits has been tremendous. it
was the finest cotton, and it was good for casual wear. in our casual suits, too, we have embroideries, velvet patches, and other embellishments that allow dual purpose. FASHION, MUSICAL SHOW: earlier of Friday night, a fashion and musical show was also organized by trade Development authority of Pakistan here at taj Palace which attracted hundreds of indians. the fashion designs, cloths of various leading designers and companies of the country were exhibited in the event while prominent musician Marvi and ali Zafar also sung the renowned songs and cultural music. tariq puri, head of tDaP said that the event was not only organized to market and show the country’s talent abroad but also to present soft image of Pakistan.
ialkot based surgical instruments manufacturers and exporters have stressed upon the need of promotion of solar energy in surgical industry of Sialkot, saying that it was the high time that every one should be waken now to play pivotal role in saving and flourishing Sialkot’s surgical industry, which was in dire need of technology of up gradation as well to meet the global trade challenges under this Wto regime. the surgical industry of Sialkot has a huge potential of increasing its exports globally and exploring and capturing the new international trade markets. Chairman SiMa Jehangir Bajwa told the newsmen that more than one century old surgical industry of Sialkot was in dire need of modernization and adopting the positive steps for advanced standers of international marketing and brand developing could help to save the surgical industry’s “titanic” from sinking. He said that both of these sectors (own brand developing and international marketing) still remain ignored by the local manufacturers and exporters due to the alleged slackness of governmental institutes meant for promoting the trade and enhancing the national exports. Due to which this industry was remaining far behind than the developed countries’ surgical industries as well, he added.
Engine failure? What an utter load of drivel! g
Pilot’s mistake not ‘engine failure’ sent taiwanese ship aground at Karachi port g the said pilot gets an earful from just about everyone concerned KARACHI
He taiwanese container vessel that had run aground on Friday evening off the karachi port had grounded not because of the “engine failure”, a reason reportedly quoted by the karachi Port trust (kPt). ever since the media has reported the grounding of YM North a guessing game has started in the ports and shipping circles about the real cause of the ship’s mysterious grounding at around 7pm while en route to berths number 26-27 of the karachi international Container terminal (kiCt) where it was to offload some 1553 teUs of the total 1740 twentyequivalent units it carried. the media reports suggest that the kPt, the port operator, is trying to
give an impression that as if the grounding was caused by an “engine failure” and none of its pilots were aboard or that the ship master was piloting the vessel without the assistance of kPt’s piloting crew. also, kPt Chairman aslam Hayat convened an urgent meeting at the kPt head office on Saturday afternoon to ascertain the cause(s) of and fix responsibility for the grounding that, the shipping experts believe, could be dangerous for a ship carrying thousands of teUs of variable weight and size. according to well-placed sources, the meeting observed that YM North had gone astray from the port’s navigational channel due to “mistake” of the kPt pilot. the meeting was informed that instead of boarding and piloting the ship himself Raja Rafique, the pilot better
known as RR, had conveyed to the captain, naturally ignorant of the channel route, to bring the vessel as nearer as three nautical miles inside the approach channel. the ship master, willy-nilly, followed the advice and steered the vessel towards the boat carrying Rafique on waiting. But, the meeting was told, when the master unfolded the ship ladder to the pilot the rear part of the vessel, known as “aft” in shipping circles, grounded. “this infuriated the captain who exchanged some hot words with the pilot,” sources privy to the meeting told Pakistan today. “i don’t recognize you as a pilot!,” they quoted the captain as shouting at the pilot. the meeting lasted for more than an hour with the participants tending to agree that the fault was lying on their own side, means the pilot.
“Never in the history a ship ever grounded at this point of the channel,” recalled a shipping expert privy to the incident. He said the vessel had run in the shallow waters at Buoy Number S-t in front of the oil Piers. the expert cited three major factors for the grounding of a ship that, he said, include the low tide, engine breakdown or steering failure. “there was high tide at the time of grounding taking the draft above 12 meters in the channel that means tide was not an issue,” the expert said. if tide factor is not there, he said, the grounding mostly takes place when there is a failure of engine or steering. “if these reasons were not involved the grounding is beyond understanding at this very point of the karachi port,” the expert wondered. about the kPt pilot, a source said Rafique was a senior and therefore
experienced pilot and was less likely to have a hand in the ship’s grounding. “i personally know RR. He is a cool minded person and is unlikely to have committed a mistake,” the source opined. However, while the kPt officials led by the chairman are running here and there to unearth the truth the kPt’s intelligence report shows the taiwanese vessel as anchored at berth number 26-27 of the kiCt after, subsequently, being made afloat with the help of at least half a dozen kPt tug boats. though the report does not show name of the shipping agent the sources identified the agent as M/s iN Shipping. Reportedly, Singapore was the last port of YM North which has a loading capacity of 3800teUs and a gross registered tonnage of 46,697, and bears the international Maritime organisation registration No 0415893.
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Sunday, 15 April, 2012
To start gunny bag distribution under Wheat Procurement Drive 2012 Growers to get Rs 7 per 100 kg as delivery charges Experimentation on the cads with new project in Mian Channu LAHORE
FteR suffering their worst two weeks of the year, stocks will look to quarterly to determine whether the recent pullback has been exhausted or more losses are justified. alcoa inc opened the earnings season with a bang, reporting a firstquarter profit on tuesday instead of the expected loss. that positive surprise foretold a trend. of the 32 companies in the S&P 500 that have reported earnings so far, thomson Reuters data showed that 75 percent - or two dozen - have beaten Wall Street’s expectations. Next week will start one of the two busiest weeks of the quarterly earnings reporting period. about 86 companies in the Standard & Poor’s 500 are expected to post results, according to thomson Reuters Director’s Report. at Friday’s close, both the Dow Jones industrial average and the S&P 500 wrapped up their worst two-week percentage drops since late November. the Dow and the S&P each fell 2.7 percent for the two weeks from the close on March 30. “it seems like everybody’s been waiting for this so-called correction to potentially get back into the stock market,” said kei Sasaki, managing director of listed equities at PineBridge investments in New York, which has $67 billion in assets under management. “But i’d point to the extremely high levels of correlation within equity markets that we saw in 2011. that was coupled
IbA, ISb sign MoU g
deal signed with Indian School of business to provide executive education in Pakistan KARACHI STAFF REPORT
He institute of Business administration (iBa) (karachi) took a winning leap as it inked down a Memorandum of Understanding (MoU) with indian School of Business (iSB) to provide executive education in Pakistan.
with heightened volatility in 2011,” Sasaki added. “even with the down moves in the market over the past several days, the volatility has stayed relatively subdued. “the correlations on a moving average have also stayed relatively subdued, which tells us that investors are still looking at the market in a fundamental way that they haven’t for the past year. So if earnings come in positive for the first quarter, we think they will get rewarded for it,” he said. among the marquee names on next week’s earnings calendar are 10 components: intel Corp , Johnson & Johnson, Coca-Cola Co, DuPont, Microsoft, the travelers Companies inc, Verizon Communications inc, american express Co, General electric Co, and McDonald’s Corp. Financials will be eyed next week on the heels of Friday’s results from JPMorgan Chase & Co and Wells Fargo & Co with both big banks’ earnings exceeding forecasts. in the coming week, earnings are expected from the likes of Citigroup inc , Goldman Sachs and Morgan Stanley. RIDING THE EURO-ZONE ROLLERCOASTER: But even with earnings attracting investors’ attention, equities remain vulnerable to flare-ups in the as the bloc continues to grapple with its debt crisis. “earnings are beating expectations. outlooks still look pretty optimistic,” said Jack ablin, chief investment officer of Harris Private Bank in Chicago. “overall pretty good news, but it takes one lousy headline out of europe to trump the whole thing.” “the MoU was signed by Dr ishrat Husain, Dean and Director iBa and Deepak Chandra, Deputy Dean iSB at the iSB campus, Hyderabad, india on Friday,” said a statement issued by the iBa here on Saturday. the collaboration brings together iBa, the oldest business school outside North america, and iSB’s Centre for executive education, one of the largest executive education providers in asia, to offer open and custom-designed courses for the senior management seeking swift career growth in the country. iSB is recently ranked 12th among the top Global Business Schools and is the only school in South asia which has won the prestigious association to advance Collegiate Schools of Business (aaCSB) accreditation. this alliance is considered a major milestone in iBa’s journey to be ranked among the top100 business schools in the world. Deepak Chandra, Deputy Dean, iSB, while addressing a well attended press conference announced that iBa karachi is the first Business School in emerging countries with which iSB has entered into a partnership. He said, “We are delighted to associate with the iBa (karachi) to provide executive education programmes. this marks the beginning of a new chapter in the history of two
equities snapped a two-day advance on Friday, pulled lower as the rising cost of insuring Spanish debt against default increased concerns about europe’s financial health. the benchmark S&P 500 rose for two consecutive days this week after a drop of more than 4 percent in the previous five sessions - opening the possibility that equities had seen the pullback many analysts were expecting after the S&P 500 climbed 12 percent in the first quarter. the S&P 500 remained near its 50day moving average, a key technical level that could help indicate the next direction for stocks. “technically, we were due for a correction, we started that correction, and the market will always come up with reasons and find excuses that fundamentally will trigger what should happen technically - and it’s happened almost perfectly,” said Paul Mendelsohn, chief investment strategist of Windham Financial Services in Charlotte, Vermont. “How far backwards we are going to fall remains to be seen - we’ve got support at that 1,358 area, and we are playing around the 50-day moving average area.” on Friday, the S&P 500 closed at 1,370.26. CHECKING THE ECONOMY’S VITAL SIGNS: the data will also get plenty of scrutiny next week for signals on the U.S. economy’s health after a weaker-than-expected payrolls report during the Good Friday holiday cast doubt on the strength of the recovery. economic indicators due next week
distinguished business schools in the region. the iBa and iSB are equally dedicated to develop and enhance business leadership through innovative world class programmes in management.” Chandra further added “We are confident that this partnership will help generate tremendous opportunities for crosscollaboration between the two schools and sets the tone for many more future associations aimed at nurturing business leaders and entrepreneurs who would contribute to the growth of business and industry in Pakistan”.
include the empire State and Philadelphia Federal Reserve’s manufacturing surveys, retail sales for March, housing starts and existing home sales. “it will be interesting to see if this is the beginning of a soft patch, if this unemployment number is a harbinger of more,” said Stephen Massocca, managing director of Wedbush Morgan in San Francisco. the March nonfarm payrolls report, which was released on Good Friday when the cash U.S. stock market was closed, showed just 120,000 jobs added last month. that figure fell far short of the forecast for 203,000 new jobs and raised questions about whether the recovery in the U.S. labor market was stalling. Sasaki of PineBridge investments pointed out that “employment’s been under everybody’s watch since last Friday. We still continue to see improvement. We believe it was a hiccup but in aggregate, we think the economic recovery is still continuing to improve.” But even if earnings are solid and data shows improvement, markets could be susceptible to further losses if more signs of fiscal distress in the euro zone emerge. “You have to put europe, Spain and , on any ‘watch list’ at this point. that may even be more important than earnings,” Massocca said. “it’s not really a liquidity issue. it’s a solvency issue, and there are a lot of political whirlwinds around that, and there are a lot of concerns that the political will to actually do something is not going to be. We shall see.”
expressing his pleasure, Dr. ishrat Husain, Dean and Director, iBa shared, “i am delighted to be here at Hyderabad to sign this MoU with one of the top ranking Global Business schools— the indian School of Business. this start is on a modest scale but we will build up our relations over time as each one of the two institutions gets to know the other. as a long time advocate and firm believer in friendly relations between the two neighborly countries for peace and prosperity of our people this event represents a turning point.” Foreseeing
akiStaN agricultural Storage and Services Corporation (PaSSCo) is likely to start gunny bag distribution under ‘Wheat Procurement Drive 2012’ from the last week of the current month while initiate receiving wheat bags from growers from May 01, 2012. the corporation has also planned not to issue gunny bags during first 10 days of its procurement drive to any grower having over 12 acres of land to fully accommodate the small growers. ‘in this regard we will consult the lists provided by the provincial revenue department to the Corporation so as no small grower is denied gunny bags,’ said an official of the corporation. Growers will be given Rs7 per 100 kilograms as delivery charges besides the government announced support price. initially arrangements had been made to procure 1.5 million tons of wheat but the economic Coordination Committee (eCC) had increased the target assigned to PaSSCo to two million tons for the current year in a recently held meeting. all the arrangements, including financing had been arranged and now finance wing of the corporation is in negotiation to arrange finances for the enhanced target and hopefully make it before the start of distribution of the gunny bags, official added. PaSSCo is also going to experiment a new project on pilot basis in Mian Channu (khanewal Zone) where growers who had obtained loan from the Zaraitaraqiati Bank limited (ZtBl) for sowing of wheat would be given priority. the corporation would buy their wheat on priority basis and their payment would be deposited with the ZtBl branch concerned. the Bank after deducting its payment would deliver rest of the money to the said growers. this arrangement would ensure that the small farmers who rely on loaning for growing their crop could sell their produce on priority basis thus ensuring paying back the debt as well as getting their amount in time through banking channel. the future Dr. ishrat said, “this collaboration between iBa and iSB is just the foundation of a long term broad based relationship in which the two institutions will pool resources for curriculum review, faculty development, joint research & case studies, students & faculty exchange and much more in future.” He hoped that the two institutions will make further strides in the future that will add value to students, faculty and corporate sectors in the two countries. the course offerings would include ‘open Programmes’ or short-duration programmes that are driven by research, ‘Custom-Designed Programmes’ or specialized courses devised to cater to specific needs of a particular organization as well as workshops and seminars. to begin with, the proposed programmes would focus on family business, entrepreneurship, business leadership, strategy and related domains. this would later be expanded to include programmes on Public Private Partnership (PPP) as well. it is planned to attract participants from the private corporate, family businesses, public sector corporations, government departments and nongovernmental organizations. these participants will receive certificates from iSB.
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Sunday, 15 April, 2012
Overseas remittances trace upward spiral
Agri forum vies to save Pakistan Peddles dam construction as the key to trade deficit reduction g dams would also solve the electricity predicament g
LAHORE STAFF REPORT
Overseas Workers’ remittances up 21.45 percent to $9.73 billion ISLAMABAD
VeRSeaS Pakistanis remitted an amount of US $ 9,735.56 million in the first nine months (July 2011- March 2012) of the current fiscal year 2011-12 (FY12), showing an impressive growth of 21.45 percent or $ 1,719.38 million when compared with $8,016.18 million received during the same period of the last fiscal year (July-March 2011). Remittances received from all countries of the world showed growth during the first nine months of the current fiscal year, a statement of State Bank of Pakistan (SBP) said. the inflow of remittances during JulyMarch 2012 from Saudi arabia, Uae, USa, Uk, GCC countries (including Bahrain, kuwait, Qatar and oman) and eU countries amounted to $2,655.38 million, $2,140.91 million, $1,724.27 million, $1,131.81 million, $1,099.39 million and $273.42 million respectively compared with the inflow of $1,822.00 million, $1,859.28 million, $1,491.05 million, $879.53 million, $ 948.12 million and $ 255.73 million
respectively in July- March 2011. Remittances received from Norway, Switzerland, australia, Canada, Japan and other countries during the first nine months of the current fiscal year (JulyMarch 2012)amounted to $710.38 million as against $760.42 million received in the first nine months of the last fiscal year (July-March 2011). the monthly average remittances for July-March 2012 period comes out to $1,081.73 million as compared to $890.69 million during the corresponding period of the last fiscal year, registering an increase of 21.45 percent. last month, an amount of $1,142.77 million was sent home by overseas Pakistanis, up by 8.54 percent, compared with $1,052.90 million received in the same month of 2011. almost all of this growth in remittances during March, 2012 over the corresponding period of the last fiscal year was through banking channels. in March 2012, the inflow of remittances from Saudi arabia, Uae, USa, Uk, GCC countries (including Bahrain, kuwait, Qatar and oman) and eU countries amounted to $329.40 million, $237.02 million, $198.82 million, $140.61 million, $130.48 million and $28.51 million
respectively compared with the inflow of $259.00 million, $232.19 million, $192.79 million, $108.62 million, $128.10 million and $35.49 million respectively in March 2011. Remittances received from Norway, Switzerland, australia, Canada, Japan and other countries during March 2 2012 amounted to $77.93 million as against $ 96.69 million received in the same month (March 2011) of the last fiscal year. the continued impressive growth in workers’ remittances is the result of the efforts made by Pakistan Remittance initiative (PRi) in collaboration with other stakeholders to facilitate both overseas Pakistanis and their families back home. Since its inception, PRi has taken a number of steps to enhance the flow of remittances through formal channels which include: (a) preparation of national strategies on remittances (b) taking all necessary steps to implement the overall strategy (c) playing the advisory role for financial sector in terms of preparing a business case, relationship building with overseas correspondents, creating separate efficient remittance payment highways and (d) becoming a national focal point for overseas Pakistanis through round the clock call centre (021-111-222774) with toll free lines,separate website etc. it may be recalled that in order to provide an ownership structure in Pakistan for remittance facilitation, the Government of Pakistan through State Bank of Pakistan, Ministry of overseas Pakistanis and the Ministry of Finance had launched a joint initiative called Pakistan Remittance initiative (PRi) in april 2009. this initiative has been taken to achieve the objective of facilitating & supporting faster, cheaper, convenient and efficient flow of remittances.
Khosa visits Fars fars Governor General proposes more business exchanges g Zulfiqar Khosa touts it as a landmark moment g
N the second phase of the official tour of iran, Punjab delegation led by Senior advisor to Chief Minister, Senator Sardar Zulfiqar ali khan khosa visited Shiraz and held meeting with Hossein Sadegh abedin, Governor General of Fars Province to discuss the prospects of establishing strong economic relations between two sides. the
Governor General of Fars proposed that there should be more exchanges of business delegations to establish strong trade network. Zulfiqar khosa invited Governor General Fars on behalf of the Chief Minister Punjab to visit lahore along with a delegation of relevant officials and businessmen. the Governor accepted the invitation and said that he will soon visit lahore to explore opportunities for trade and investment. Speaking on this occasion Senator Zulfiqar
khosa said that it was a landmark visit as this is the first time that an official delegation from Punjab had visited Shiraz to establish economic ties between provinces of Punjab and Fars. He said both Punjab and Shiraz share similar culture, literary heritage and economic conditions and there is a great scope of business relations between the two provinces. the delegation also visited Shiraz Chambers of Commerce & industry and held meeting with the leading Ceos of Shiraz. Zulfiqar khosa, while addressing the Ceos, invited them to invest in agriculture, livestock, Dairy, energy and infrastructure sectors of Punjab. He assured the businessmen that
oNStRUCtioN of new dams will help Pakistan to produce 50,000 mega watt of electricity per annum besides lowering its import bill from present Rs 1563 billion to Rs 800 billion only. it would decrease our trade deficit also which would come down to Rs 700 billion from present Rs 1400 billion, claimed agri Forum Pakistan Chairman Muhammad ibrahim Mughal while addressing a seminar here on Saturday. the seminar was arranged by ‘Save Pakistan’ movement. He said that this year Pakistan imported human food worth Rs 463 billion while oil worth Rs 1100 billion was imported. ibrahim Mughal said that the construction of a single dam could bring down our import bill while also provide more water for irrigation helping increase the per acre yield of crops. While the electricity produced by this dam would be cheaper as compared to
electricity produced through diesel while it would also bring down the consumption of diesel in the country. at present Pakistan was consuming 10 billion liter of diesel per annum which could bring down to 6 billion liter per annum. He said that electricity produced by the dams would cost only Rs 2 per unit as compared to electricity produced through diesel which cost Rs 12 per unit. it would also ensure 24 hours availability of cheaper power to Pakistanis, he observed. agri Forum Chairman further said that the country needs 45,000 mega watt of electricity by year 2025, so Pakistan should start construction of new dams right now keeping in view this demand. He proposed that new dams could be constructed in joint venture with China or overseas Pakistanis. it would not only control the trade deficit but would also arrest the ever increasing inflation, improve the environment and create job opportunities for the countrymen besides making Pakistan self-reliant, he concluded.
‘fuel adjustment charges akin to robbery’ PIAf whines about ‘self-made’ tax g reminds PM about the industry being in a mess g
LAHORE STAFF REPORT
akiStaN industrial & traders association (PiaF) while terming the fuel adjustment charges in the electricity bills a “robbery” and urged the Prime Minister Syed Yousaf Raza Gillani to abolish this selfmade tax immediately. in a press statement issued here Friday, Chairman PiaF eng. Sohail lashari said that industrial sector was already in deep trouble due to various challenges including energy crisis, deteriorating law & order situation and high cost of doing business but instead of taking some relief measures, NePRa and other departments were busy create more hurdles for the business doing people. the PiaF Chairman said that continuous raises in electricity tariff were earning bad name for the government besides hitting economic targets hard. He said that soon after
he will personally ensure that they are facilitated and provided all necessary support. He urged the iranian side to increase trade with Pakistan in Meat, Wheat, Rice, oranges and Maize. He asked the President of Shiraz Chamber to hold a mango exhibition in the month of June and Punjab Government will send Mangoes for the exhibition. He also invited the business community to participate in the iran Single Country exhibition to be held in lahore expo Center on 29th May 2012. Shiraz Chamber President showed his keen interest in the exhibition and promised that a delegation from Shiraz will participate in the exhibition. the delegation includes Raza ali
assuming the office, the Prime Minister had announced a number of projects to enhance electricity production but unfortunately the electricity situation still the same. He said that industrial growth in the country was the lowest in the region while the rate of inflation was the highest when it was compared with other regional countries. Not only the graph of poverty was going up with every passing day but unemployment was also touching the alarming levels, he added. He said that despite a strong opposition by the private sector, the government adopted the path of rental power stations that have jacked up the cost of Pakistani products manifold and the same are fast becoming uncompetitive in the international market. He said that due to unrealistic policies of the present regime, a large number of industrial units have shifted their operations to the other countries while a number of industrialists were posing for the same. Gilani, MPa, Mushtaq ahmad, Secretary agriculture, Hamid Yaqub Sheikh, Secretary livestock & Dairy Development, Habib Gilani, DG, PBit, Mohsin Bukhari, representative of lahore Chamber of Commerce and industry, Professor Saleem Mazhar of Punjab University and Dr. Junaid Sarfraz of University of Health Sciences.