Page 1

PRO 16-03-2013_Layout 1 3/17/2013 3:31 AM Page 1



bUSiNESS Saturday, 16 March, 2013

Minimum profit rate on saving bank accounts upped to 6pc KARACHI: The State Bank of Pakistan (SBP) Friday directed the commercial banks to pay minimum annual profit rate of 6.0 percent on all Pak Rupee saving deposits on average monthly balances. The order would take effect from April 1 (2013). This rate of profit would be applicable on all existing and new saving deposits including the term deposits, said a circular issued by the central bank Friday. This step of SBP, the circular said, was likely to promote savings and increase the financial market depth and intermediation. Any violation of the above instruction would render the bank liable for punitive action under the relevant provisions of the Banking Companies Ordinance 1962, warned the regulator. The market analyst, however, expected the central bank to give a retrospective effect to its order. STAFF REPORT

PTCL inaugurates One Stop Shop with a new look KARACHI: Pakistan Telecommunication Company Limited (PTCL) has recently inaugurated a revamped One Stop Shop (OSS) in Sukkur. As part of its ‘Customer First’ initiative, the company is facilitating its customers through its nationwide One Stop Shops offering a wide-range of PTCL landline and broadband services. The One Stop Shop was inaugurated by Kamran Malik, PTCL Executive Vice President (EVP), Customer Care. Abdul Karim Danver, PTCL Regional General Manager (RGM), Sukkur; Naeem Siddiqui, PTCL General Manager, Customer Care and other senior officials of the company were also present at the occasion. PTCL One Stop Shops are strategically placed nationwide, which serve and facilitate the company’ s customers by offering one-window operations including billing adjustments and payments, fault rectification, new service requests, duplicate bills and many other telecom services all under one roof. The company has recently inaugurated its revamped One Stop Shops in all major cities acrossPakistan. NNI

Private sector should be given due role in caretaker setup. — ICCI President Zafar Bakhtawari

PR adds another 10 coaches to fleet ISLAMABAD



AKISTAN Railways on Friday added another 10 newly built coaches in its fleet, imported from China. Addressing the inauguration ceremony, Federal Minister for Railways Haji Ghulam Ahmed Bilour said that these new coaches would help Pakistan Railways to achieve progress. The minister said that these coaches have the capacity to run at the speed of 160 km per hour but due to the dilapidated track it would run at 120 km per hour. He said that every government behaved discriminatory treatment to Pakistan Railways otherwise the railways could have turned into profit-oriented entity. “If the government would approve these seven projects of Pakistan Railways in 2009, the organization would have earn profit,” the minister said. Bilour said that during the last five year, not even a single locomotive was added to the system. The minister said in 2008, an agreement for purchase of 75 locomotives was signed with China but it remained confined to words. The minister said most of the MNAs


ways was carrying only one percent of the freight, adding that nine freight trains were running per week that was insufficient. Around 20 locohave spent billion of rumotives are repees in their constituencies quired to increase but Pakistan Railways reone percent of the ceived not even a penny freight operation. for its uplift. The minister He said that the govalso announced ernment has allocated Rs Rs 3000 cash 70 billion for Benazir Inaward to the come Support Programme every employee but railways was totally ignored. Replying to a ques- Federal Minister for Railways Ghulam Bilour of the Carriage Factory. To antion, the minister said three projects were being run on public-private other question, the minister said that the partnership including Business Train, Shal- Awami National Party would contest the general elections independently and would imar-1 and Shalimar-2. The minister said that Pakistan Rail- think about the coalition after polls. He said

EU envoy proposes Punjab-EU business event STAFF REPORT

The Ambassador of EU appreciated the efforts being undertaken at PBIT and assured of his complete support to PBIT for trade expansion between Pakistan and EU Region. At the occasion the idea to hold a Punjab-EU Business event was also suggested by the Ambassador, which is hoped to create awareness amongst EU and Punjab of each other’s market potential and develop extended business linkages. The Ambassador Mr Lars Gunnar WIGEMARK was optimistic of fruitful business ventures in the future considering the democratic process in Pakistan has seen stability. CEO showcased the recently approved SEZ Act 2012, under which exemption from customs duties and taxes for all capital

goods imported into Pakistan for the development, operations and maintenance of a SEZ; exemption from all taxes on income accruable in relation to the development and operations of the SEZ for a period of 10 years, starting from the date of signing of the development agreement will become affective for the investors. He highlighted that PBIT will be housing the SEZ Authority within PBIT and will play an active facilitator role for prospective local and foreign investors in months to come. It is pertinent to mention here that currently EU region is the largest trade partner of Pakistan with a trade of over 8 million Euros in 2011-12. 70% of the exports of Pakistan to EU consist of textiles.

Sluggish demand for furnace oil downs oil sales by 18pc in February KARACHI STAFF REPORT

Expecting fuel consumption to mark a modest 2.5 percent growth in fiscal year 2012-13, the market analysts Friday observed the oil sales, excluding non-energy, posting a hefty 18 percent MoM fall in Feb-13 to 1.4 million tons. This massive decline mainly emanated from a gigantic 30 percent MoM drop in FO demand, 39 percent contribution, which was further dragged by 12 percent and 6 percent fall in Motor Spirit (MS) and High Speed Diesel (HSD), respectively. “As per our discussion with the companies’ management, drop in Furnace Oil (FO) was mainly led by deliberate supply cuts to power sector by major provider i.e. PSO, due to circular debt issue,” said the analyst at Arif Habib Research in a report issued Friday. On the other hand, they said, as far as growth decline in MS was concerned, a high base-

World Consumer Rights Day observed ISLAMABAD NNI

LAHORE Ambassador of European Union delegation to Pakistan Lars Gunnar Wigemark, visited Punjab board of investment & trade (PBIT) today. He was accompanied by his wife and Husnain A. Iftakhar, the trade officer of the EU to Pakistan. The delegation was warmly welcomed by Javed Akbar, Chief Executive Office PBIT at arrival. The Ambassador was given a comprehensive briefing on the economic potential of Punjab and areas wherein the EU can further accentuate the economic development in the region. CEO PBIT appreciated the provision of the Autonomous trade preferences to Pakistan in wake of the devastating floods of 2010 and 2011 and further hoped that Pakistan will be able to gain increased access to the EU market once its inclusion in the upcoming GSP plus scheme of 2014 is finalized. CEO further emphasized on the need to diversify the exportable product range from Pakistan to EU as well as market diversification within the EU region. In the context of trade CEO PBIT highlighted the services such as trade facilitation including matchmaking and market intelligence and alternative Dispute resolution being offered by PBIT.

that there is no future o f Te h r e e k - e Insaf in KPK and would win hardly single seat from Punjab. Chairman Railways and other official of the ministry, division office and Chinese officials were also present on the occasion. Pakistan Railways will receive 202 coaches against a cost of around Rs 16 billion to improve its operations and facilitate the passengers. Out of the 202 coaches of various types, Pakistan Railways has received 55 coaches in Completely Built Unit condition those are being utilized with different trains plying across the country.

to 0.5 million tons, as the effect was in place during OMCs remained relucFeb-13 consumption tant to increase their numbers as Jan-13 Lower gas exposure to the cirsaw massive growth availability for cular debtin petrol sales plagued FO amid gas (CNG) transportation sector market. shortage going coupled with ban on For the through roof. c u m ulative A YoY the installation of 8MFY13, oil comparison for CNG kits in new consumption Feb-13 mirrors remained flat quite an opposite vehicles has led to around 12.6 picture, where the strong substitution million tons as sector posted rather the massive 18 per3 percent YoY effect for petrol cent YoY growth growth in oil consumpachieved in MS volumes tion. This was mainly on was largely diluted by a 3 account of strong demand pullpercent and 1 percent fall in HSD and back in MS and HSD by 27 percent YoY and three percent YoY, respectively, as ex- FO volumes, respectively. The impact of treme scarcity of CNG revitalized the de- mild percentage drop in these segments mand of conventional fuels. FO, on the has a wider impact on the total sales as other hand despite lower hydel generation, later both contribute around 78 percent of posted a YoY drop of 9 percent in Feb-13 the total oil consumption. A steep 35 per-

cent fall in FO volumes led PSO’s market share to drop by 5 percentage points to 59 percent in Feb-13 compared to 64 percent in Jan-13 as FO constitutes around 50 percent of the total volumetric sales of PSO. However on a cumulative 8MFY13 basis, the Oil Giant holds its leadership position at 64 percent market share. Lower gas availability for transportation sector coupled with ban on the installation of CNG kits in new vehicles has led to strong substitution effect for petrol, evident from a massive 14 percent YoY jump in MS sales to 2.1 million tons. “We believe this demand momentum to gather pace going forward, as continued substitution effect is expected to take MS demand up 18 percent YoY in FY13 to 3.2 million tons,” said the analysts. They said that increased use of CNG in public transportation across the country had been taking its toll on the HSD demand leading to a 3 percent YoY drop in 8MFY13.

The World Consumer Rights Day was observed across the globe including Pakistan on Friday. ‘Consumer Justice Now!’ is theme of World Consumer Rights Day (WCRD) 2013. International Consumer Rights Day is an occasion that relates to any and every person on this planet i.e. from children’s diet to the services a person buys. The Day holds a unique history of integrated association among National Consumers Organizations to establish International Organization of Consumers Union back in 1960 in London‚ though awareness of the concept was in USA by the efforts of Standards Organizations as early as 1900. However‚ on March 15‚ 1962‚ US President John F. Kennedy made a historic speech and highlighted four basic rights of consumers which led to the creation of

The basic objective of the day is to promote the fundamental rights of the consumers Consumers Bill of Rights. The United Nations through the United Nations Guidelines for Consumer Protection endorsed the idea and in 1985 expanded these into 8 rights‚ and thereafter Consumers International (a movement that now represents over 220 member organizations in 115 countries around the world) adopted these rights as a charter and started recognizing March 15 as World Consumer Rights Day.However the day was first observed on 15 March 1983. The Network for Consumer Protection‚ commonly known as “The Network”‚ was founded in 1992 as NGO with focus on medicines and public health‚ later expanded its attention to consumer protection in general. The basic objective of the day is to promote the fundamental rights of the consumers. Every year on 15 March‚ the global consumer movement unites around a common theme to deliver an exciting array of campaigning activities. WCRD 2013 will be an important opportunity for consumer organizations to draw the world’s attention to the crucial role that consumer protection plays in making societies safer and fairer. Transitional economies and the developing world can all benefit from improvements in consumer protection. The day will also focus on bringing attention to those areas which desperately need improvement.

PRO 16-03-2013_Layout 1 3/17/2013 3:31 AM Page 2

US-Pakistan relations ‘back on track’. — Ambassador Masood Khan


bUSiNESS B Saturday, 16 March, 2013

Pakistan most promising country for Korean investment, says KCCI president KARACHI



ARACHI Chamber of Commerce & Industry’s President Muhammad Haroon Agar has expressed that Pakistan is the most promising country for investment by Koreans; immense opportunities exists to enter into joint ventures in Pakistan in the alternate energy, agriculture and engineering sectors. While exchanging views with the Consul General of the Republic of Korea in Karachi Chang Hee Lee, he was of the view that owing to Pak-Korea great trade potential, the recent trade of about $1.3bn may incline to $3~5bn in next five years while effectively tapping the existing true potential. In 2012, Pakistan’s total exports to Korea stood at $4.99 Million while importers from Korea were $6.11 Million, he said. He stated that many Korean giants like Lotte, Samsung, LG, Hyundai, Daewoo etc. are operating business successfully in Pakistan, therefore, he said, establishing Korea Special Economic Zone in Karachi is indispensable. “The Government of Pakistan has already passed Special Economic Zone Law and likewise,

establishment of Japan Special Economic Zone is in progress. The Leaders of Pakistan and Korea have agreed to promote cooperation in a number of areas like manufacturing, finance, transport, education and culture. An estimated $5 Billion of Korean investment is in pipeline,” he said. “During official trip of Pakistani President Korea two countries signed framework agreement for Grant-Aid for poverty reduction through Korea International Cooperation Agency (KOICA), Malakand Tunnel Project $ 78 Million loan Agreement to be provided by EXIM Bank Korea, MoU between Korean Ministry of Land, Transport and Maritime Affairs and Pakistani Ministry of Railways on Railway Development cooperation. It is learned that Lotte the Korean giant in Pakistan was further expanding its busi-

ness while companies in steel sectors were also interested in invest in Pakistan”, he said. He said that Lahore-Islamabad Motorway, Lowari Tunnel, Hyderabad-Mirpurkhas dual carriage Highway projects endorse the Pak-Korea deep friendship. He admired that despite of negative travel advisory, the Korean do not hesitate to visit Pakistan. He also urged both governments to expedite negotiations to sign Free Trade Agreement (FTA). He also enlightened the Consul General about the key role of Karachi Chamber in the socio-economic development of Pakistan and informed about the aims of KCCI to develop regional trade. He also requested the Consul General to invite business delegation and exhibitors to participate in the Karachi Chamber’s My-Karachi Oasis of Harmony Exhibition scheduled to be organized in July 2013. Consul General of the Republic of Korea in Karachi Chang Hee Lee recognized the vibrant role of Karachi Chamber to promote trade and industry. Immense possibility of economic and commercial cooperation do exist, he said. He was of the view that the Chambers of two countries should play vibrant role to facilitate the private sectors of both sides. He assured best support from the Korean Consulate General to the members of KCCI. He said that the Korea Trade Investment Promotion Agency (KOTRA) was committed to facilitate business community and interested businessmen may contact KOTRA for their business queries. Senior Vice President KCCI Shamim Firpo and Managing Committee Members also participated in the meeting. President KCCI also presented Chamber’s crest to the Korean Consul General.

Major Gainers COMPANY OPEN Philip Morris Pak. 221.44 Exide (PAK) 331.02 Pak.Int.Cont.SD 177.00 Millat Tractors XDXB 506.64 Attock Petroleum Ltd479.05

HIGH 232.51 344.99 185.85 516.00 485.00

LOW 220.05 336.00 180.00 506.25 480.00

CLOSE 232.51 340.00 185.85 513.35 482.38

CHANGE 11.07 8.98 8.85 6.71 3.33

TURNOVER 12,800 1,500 11,300 14,400 31,600

10700.00 1260.00 480.00 454.50 207.90

10500.00 1260.00 447.00 445.11 201.00

10644.75 1260.00 464.40 448.64 204.46

-55.25 -20.00 -5.60 -5.33 -5.27

80 100 1,200 381,000 900

7.96 20.75 121.25 14.44 7.17

7.45 19.72 118.30 13.91 6.55

7.74 20.49 119.61 14.25 6.62

0.32 0.28 -3.75 0.28 -0.19

13,199,000 10,447,000 9,025,300 7,086,500 6,607,000

Major Losers UniLever Pak Bata (Pak) Indus Dyeing SD Pak Oilfields XD Abbott Lab.

10700.00 1280.00 470.00 453.97 209.73

Volume Leaders Lotte PakPTA P.T.C.L.A Engro Corporation Jah.Sidd. Co. P.I.A.C.(A)

7.42 20.21 123.36 13.97 6.81

interbank Rates USD GBP JPY EURO

PKR 97.9654 PKR 148.3196 PKR 1.0187 PKR 127.8351

Forex Australian Dollar UK Pound Sterling Euro US Dollar Canadian Dollar Japanese Yen Saudi Riyal U.A.E Dirham China Yuan



102 150 131 99.2 97.5 1.028 26.3 26.85 13.5

103 151.5 132 99.45 98 1.15 26.5 27.05 14

CORPORATE CORNER NBP to establish largest financial data centre in country

KARACHI: In line with the NBP President’s vision of technology at the core of banking, National Bank of Pakistan inked its Data Center Project on turnkey basis with Getronics (AGCN) Pakistan. The project shall be an International Standards Certified Tier III Data Center Project. This Data Center facility will serve more than 1290 online branches for Centralized Banking Applications; to ensure 24x7x365 (Always Online) IT services across the bank and all its applications including a 24 hours IT services monitoring & operations center. The Project Head NBP Mr. Qasim Y. Khan (Vice President/Wing Head IT Strategic Planning Wing) and country manager Getronics Pakistan Mr. Faisal Rao signed the contract in the presence of the President, National Bank of Pakistan Dr. Asif A. Brohi and senior executives of the bank. Mahmood Siddique (Chief Information Officer) and Mr. Yasir Ansari (Deputy CIO) acknowledged the project to be a success for the future NBP services & increase customer satisfaction through highest availability and resiliency. This is one of its kind projects in the financial industry of Pakistan with latest equipment and technology and an IT milestone for the largest commercial bank of Pakistan. PRESS RELEASE

Samsung introduces GALAXY S4 LAHORE: Samsung Electronics announced today the fourth generation GALAXY S, the GALAXY S 4, designed to get you closer to what matters in life and bring your world together. Understanding what matters most to us in our lives, the Samsung GALAXY S 4 was developed to redefine the way we live and to maximize our fulfillment of life. This sleek and innovative smartphone makes every moment of life very meaningful; it understands the value of relationships, enabling true connections with friends and family. It believes in the importance of an effortless user experience, making your life easy and hassle-free; and, it empowers your life, helping take care of your well-being. The beauty of the phone is the highly crafted design encompassing a larger screen size and battery, minimized bezel; all housed in a light (130g) and slim (7.9mm) shape. The Samsung GALAXY S 4 is slimmer yet stronger, with less to hold yet more to see. It has come up with simply unreal beauty. At launch, two color options will be available - Black Mist and White Frost; with a variety of additional color options to follow later this year. “With the GALAXY S 4, Samsung is again going to enhance the way we live,” said JK Shin, President and Head of IT & Mobile Communications Division at Samsung. “All the innovative features of GALAXY S 4 were developed based on the insights and needs we found from our consumers all around the world. Following the successful GALAXY S series, this phone is yet another great proof point of peopleinspired innovation. At Samsung we’ll never stop pursuing innovation conceived by people, so we can inspire them in return.” PRESS RELEASE

London from sectors including retail and financial services for the inaugural UK - Pakistan Trade and Investment Conference at an event to promote opportunities, share knowledge and make connections with senior business representatives from Pakistan. Baroness Warsi said: “We simply do not hear enough about the enormous opportunities that Pakistan offers. Pakistan is an investorfriendly and relatively open economy. Over 100 British businesses are already there and more should look at the opportunities. They should think of the Foreign Office and UK Trade and Investment as their support network on the ground through our dedicated trade offices in Karachi, Lahore and Islamabad.” Currently over £2 billion in goods and services is traded between the UK and Pakistan every year. The governments of both countries have committed to increasing this to £2.5billion by 2015 and are on track to meet that commitment. PRESS RELEASE

McDonald’s Pakistan participating in global celebrations for National Breakfast Day LAHORE: McDonald’s Pakistan will be amongst almost five thousand McDonald’s restaurants in Asia, Middle East and Africa - offering up to one thousand free Egg McMuffins to their customers during breakfast hours (6:00am to 10:00am) on March 18th, 2013. McDonald’s is calling this

KARACHI: The Country Head of DS Concepts Qaseen Jafri pictured with Australian High Commissioner Peter Heyward at Farooqui House reception. PR National Breakfast Day. With so many participating restaurants, the numbers involved become significant – potentially, this will be a free breakfast for five million McDonald’s customers throughout Asia, Middle East and Africa. – and more than 1000 customers in each participating McDonald’s on this one morning in Pakistan. “And we fully expect to serve this number,” says Jamil Mughal, Director Marketing, McDonald’s Pakistan. “We want to demonstrate to our busy consumers in a truly tangible way that we are an affordable and tasty way to start the morning. National Breakfast Day with McDonald’s on March 18th is a way to illustrate that no one else can do it like McDonald’s.” PRESS RELEASE

UK companies making most of strong ties with Pakistan LAHORE: Begum Zakia Shahnawaz and Professor Hina Tayyaba, vice chancellor PIFD, present laptops to PIFD students. PR

LONDON: Senior FCO Minister, Baroness Warsi, addressed more than 60 UK companies gathered in

KARACHI: Consul General of Malaysia Abubakar Mamat, Vice President Emirates Pakistan Khalid SS Bardan and others at Malaysia Grand Prix Tickets and Giveaway Ceremony at Malaysian Consulate. STAFF PHOTO

profitepaper pakistantoday 16th March, 2013  

profitepaper pakistantoday 16th March, 2013