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Tuesday, 18 September, 2012
The Doc hankering after power ‘Pakistan has potential for foreign investment in energy sector’ ISLAMABAD
EDERAL Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh has said that Pakistan has huge potential of foreign investment in the energy generation and telecom sectors. He stated this in a meeting with Norwegian delegation led by Tide Tec CEO Arne Kollandsrud here on Monday to discuss different matters on introduction of wave/tidal based electricity production in Pakistan. Finance Minister acknowledged and appreciated the idea of tidal based energy generation in the wake of current energy shortage and soaring fuel prices in the country. He informed the delega-
tion that energy wing of Planning Commission mainly dealt with such types of projects and the Deputy Chairman Planning Commission and his team will coordinate with the delegation to move ahead in this regard. Similarly a series of meetings shall be setup with officials of Private Power and Infrastructure Board (PPIB), Ministry of Water and Power, Central Power Purchasing Agency (CPPA, Ex-PEPCO) and Planning Department of Sindh Government within a few days to work further into the details of project, added by Finance Minister. He also assured the delegation that the finance division will provide full support to them on all forums. Earlier, in a detailed presentation, Tide Tec, Consultant, Lunderby briefed the participants of the meeting about the phenomenon, challenges and procedural
steps for installation of wave/ tidal based power plant. He informed the Minister that tidal/wave energy was a form of renewable energy in which power of waves produced in a channel or ocean is used to run the turbines turning on electric generators to produce electricity. The company “Tide Tec” was specialized in developing technology for energy producing bridges by harnessing potential of tidal and wave energy. He also informed that tidal energy was environment friendly and more predictable as compared to wind energy. Cost for establishing wave energy infrastructure was approximately equal to the wind based
power plant. The company will follow the steps of Technology verification, Pre study, Scale Test and Full scale production respectively for establishment of wave/tidal based energy production in Pakistan, informed the delegation.
‘Negative list hinders trade growth’ ISLAMABAD APP
It’s raining cars! Automobile production increases in 1st month of current fiscal year ISLAMABAD APP
Despite challenges of energy shortage, the production of various automobiles witnessed increase during the first month of the current fiscal year as compared to the same month of last year. The production of jeeps and cars witnessed an increase of 2.35 percent in July 2012 as compared to the production of July 2011, according to the data of Pakistan Bureau of Statistics (PBS). The production of cars and jeeps increased from 10,753 units in July 2011 to 11,006 units during July 2012, the PBS data revealed. Similarly, the production of Light Commercial Vehicles (LCV’s) witnessed surge of 45.33 percent by going up from 1,562 units in July 2011 to 2,270 units in July 2012. The production of motorcycles increased from 139,056 units in July 2011 to 139,125 units in July 2012, showing an increase of 0.05 percent. Production of buses increased from 32 units to 36 units, showing an increase of 12.50 percent while the production of tractors increased from 1,735 units to 4,569 units, showing growth of 163.34 units. However, the production of trucks during the month under review witnessed negative growth of 33.15 percent as its production decreased from 178 units in July 2011 to 119 units in July 2012, according to the data. It was pertinent to mention here that the overall Large Scale Manufacturing (LSM) witnessed growth of 0.60 percent during the month of July 2012 as compared to the same month of last year. Among the LSM Sector the indices monitored by Ministry of Industries witnessed increase of 0.26 percent whereas the indices monitored by the provincial Bureaus of Statistics witnessed increase of 0.54 percent. However, the indices monitored by Oil Companies Advisory Committee witnessed negative growth of 0.21 percent, the PBS data revealed.
Extensive sensitive lists being maintained by different countries was hindering progress and growth of trade within SAARC countries, the Attock Chamber of Commerce and Industry (ACCI) observed. “The last two decades have witnessed a number of attempts by South Asian countries to promote intra-regional trade through several agreements but with limited success,” ACCI, President, Tariq Mehmood said while addressing business community. Main reason behind reduced intraSAARC trade, which was hovering around four per cent of the total trade, was large negative trade lists maintained
Pakistan-India Commerce Secretary level talks from 20th ISLAMABAD: The Pakistan-India Commerce Secretary level talks will be held here from September 20. Indian Commerce Secretary, S. R. Rao accompanied with an 11-member delegation is to visit Pakistan on September 20 to hold secretary level talks with his Pakistani counterpart Munir Qureshi here, a senior official in the Commerce Ministry told APP. Both sides will discuss various issues including development on negative list between the two countries, bilateral trade. APP by the member countries which had left all efforts to boost trade almost unsuccessful, he added He was of the view that all countries of the region must realize that trade agreements could be beneficial only when negative lists were maintained on merit and for a specific period
to be phased out eventually. FPCCI Committee on Health, Chairman, Tariq Mehmood, said that all SAARC countries should review the sensitive lists for reduction every two years under the tariff liberalization programme of SAFTA.
Efforts required to curb smuggling on Pakistan-Iran border ISLAMABAD APP
Azad Group Lahore Chamber of Commerce Chairman Raja Hassan Akhtar and President Salman Ali said that the visit of President Tehran Chamber of Commerce would bring the two countries closer to each other through bilateral trade and mutual contacts. In a joint statement issued here on Monday, they said Pakistan wanted friendly relations with all countries including India, Afghanistan and Iran. “Azad Group Lahore Chamber of
Commerce welcomes Iranian trade delegation with the bottom of heart”. Azad Group Secretary General Mian Shabbir, Senior Vice Chairman Muhammad Yasin, Mian Nawaz, Mian Imran Asghar, Manzoor Butt, Idrees Tabassum and other leaders urged the government to stop forthwith the smuggling going on at Iran-Pakistan border and legalize this illegal trade. They also stressed upon issuance of visa through simple means that will boost up confidence of traders of both countries. “There is a large market for Pakistani goods in Iran and several Iranian goods could make inroads in Pakistani markets with ease”.
‘Rs.115.3 billion transaction proceeds till June 30, 2012’ ISLAMABAD OnlinE
More than 28.4 million transactions worth of Rs.115.3 billion have been processed during the quarter ending June 30, 2012 a state bank official said. The State Bank official said the number and value of transactions per quarter have grown rapidly during the second quarter (April-June) 2012 and 35 per cent respectively. The growth in value of transactions was almost 3 times more than the growth in number of transactions; accordingly the overall average size of transaction was increased from Rs 3,853 to Rs 4,065 during the quarter. The official further said the composition of transactions remained almost similar to the previous quarter. In value terms agents, bulk transfers purchasing e-float, depositing excess cash in their accounts etc. topped by 41 per cent share followed by P2P and bill payments and Mobile Top-ups with 35 per cent and 11 per cent shares respectively. In number of transactions, bill payments and Top-Ups have the biggest share of 50 per cent followed by P2P transactions with 6 per cent share.
CNG association to devolve future strategy ISLAMABAD OnlinE
All Pakistan CNG Association has decided to meet tomorrow (Wednesday) to devise their strategy against the rising trend of CNG prices in the country. Talking to online here on Monday All Pakistan CNG association (APCNGA), Chairman, Ghiyas Paracha said that after recent increase of Rs 6.20 in the price of CNG was unjustified and unfair with the already price stricken masses of the country. He said that this increase would not favor the interest of common man and will boost inflation in the country thus directly affecting lives of masses. Paracha said that it was very unfortunate that government had given the authority to Pakistan State Oil (PSO) to regulate the prices of CNG as with the prices of petroleum products PSO increases the prices of CNG. He said that CNG sector was paying Rs 1110 as tariff while other sectors including industry were paying Rs 510 tariff , therefore, being largest payer government should facilitate CNG sector. Ghiyas Paracha alleged that being a regulator of this sector Oil and Gas regulatory Authority (OGRA) was not working according to its given mandate and behaving like step mother with this important sector.
E&P sector’s contrasting performances KARACHI STAFF REPORT
Topline of the E&P Sector experienced impressive escalation of 25% YoY mainly due to 4.4% YoY depreciation of Pak Rupee (PKR) against the Greenback (USD), handsome increase of 21% YoY in the price of crude oil (Arab Light) and rise in the well head price of major gas producing fields (Qadirpur up 3% YoY and Sui up by massive 24% YoY). Despite the up tick in the operating cost coupled with 28% YoY increase in the royalty during the period under consideration the gross margins of the sector experienced minor expansion of 2pps. Exploration costs of the sector were dampened by 40% during FY12, highlighting the passive exploration policies that were followed by the com-
panies in PPL, POL & OGDCL for the majority of the year, said the analysts at InvestCap Reserach. They said the mammoth increase of 150% YoY experienced under the other income head primarily due to the increase of astounding 161% YoY felt by PPL in the other income due to reversal of provision for workers welfare fund amounting to Rs4.4bn was the prime driver in swelling the sectors net margins by 5.5pps during FY12. As a result the sector’s bottom line felt robust growth of 41% YoY during FY12. Despite additional production coming in from Makori East, topline of the sector during 4QFY12 remained stagnant at Rs87bn. This was primarily due to 9% QoQ reduction in the price of crude oil (Arab light) coupled with mere 1.7% depreciation of PKR against
USD during the mentioned period. In addition to sluggish topline performance, the operating cost of the sector was jacked up by huge 80% as compared to previous quarter, which resulted in contracting the gross margins by meaningful 9pps QoQ. 49% QoQ increase in the exploration cost point towards the fact that companies adopted aggressive exploration activities to achieve their exploration targets. Bottomline of the sector was tapered off 10% during 4QFY12 against the previous quarter. However, the mentioned head could have thinned by
20% QoQ had it not been for the massive Rs4.4bn increase in other income head of PPL, which bolstered the sector’s other income by astonishing 127% QoQ. With fall in the US oil stocks due to hurricane Isaac we expect exuberant buying to come in from the US, coupled with the stimulus policy announced by the Fed was foreseen to inflate the price of the commodity in the international markets, therefore bolstering the profitability of the local E&P companies going forward.
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Why oh why!?
PSM Board appreciates expansion plan of Pakistan Steel KARACHI
Trade, industry condemns increase in POL prices KARACHI STAFF REPORT
The trade and industry sector has condemned the second-time increase in the POL and CNG prices within a short span of one month by the government. In a joint statement issued on Monday Korangi Association of Trade and Industry (KATI), Patron In-Chief, S M Muneer, Chairman Ehtesham Uddin, All Karachi Industrial Alliance, President, Mian Zahid Hussain, Vice Chairmen Hasham A Razzak and Tariq Malik said that the government on the pretext of increase in POL prices in international market was rapidly skyrocketing prices in local market. They said the increase in POL prices had nothing to do with the price fluctuation in international market as the real factor behind all this practice was to make money and squeeze the masses to overcome budgetary losses. They said that the rulers were punishing the masses and business community to conceal its policy failure. They warned that such practice by the rulers was real dangerous and against the national interest as trade and industry as well as general masses were near bankruptcy. They asked the government not to take revenge of failure of its policies from the public and not to undermine the democratic set up as public was extremely upset due to unabated and cruelly increased prices of utilities. The industrialists and traders demanded of the government to immediately reverse the decision of massive increase in POL and CNG prices. They also demanded of the government to do away with weekly review of prices as the ministry and OGRA were only reviewing POL prices upwards.
Business 02 Major Gainers OPEN COMPANy Atlas BatteryXDXB 237.30 National Refinery 230.19 Pak Oilfields 420.32 Pak Gum & Chemical226.53 Service Industries 180.00
HIGH 249.16 240.40 433.60 231.90 185.50
LOW 238.60 225.00 421.00 231.00 177.50
CLOSE 249.16 236.24 426.33 231.30 184.58
CHANGE 11.86 6.05 6.01 4.77 4.58
TURNOvER 10,600 388,500 1,460,400 300 2,700
4100.00 1168.00 1078.99 967.00 333.53
4100.00 1066.99 1000.00 960.00 330.46
4100.00 1066.99 1002.00 962.37 330.48
-75.00 -46.34 -26.99 -20.96 -17.37
20 150 1,950 150 1,200
2.66 6.59 71.25 3.47 14.16
2.41 6.10 69.10 3.09 13.62
2.52 6.22 70.98 3.13 13.72
0.11 -0.26 2.02 -0.20 -0.23
16,444,000 9,869,000 8,149,000 3,913,500 3,409,000
HE 36th meeting of Pakistan Steel Board of Directors held in PS Operations building covering the agenda about the business plan, marketing strategy and expansion project of Pakistan Steel. Pakistan Steel, Chief Executive Officer (CEO), Major General Muhammad Javed (Retd) while briefing about the Marketing & Sales plan, said that PSM was trying to dispose off the available inventory of PS Products and working in conformity with the market demands. Pervaiz Iqbal while briefing of expansion plan said that PSM expansion plan will open new doors of prosperity and betterment for Pakistan. A MoU was likely to be signed between governments of Pakistan and Russian Federation on the event of Russian President Putin visit to Pakistan in the near future. The board discussed the progress of busi-
Major Losers Nestle Pakistan Ltd. 4175.00 Colgate PalmolivXDXB 1113.33 Bata (Pak) Limited 1028.99 Wyeth Pak Limited 983.33 Mithchells Fruit 347.85
ness plan and stressed on the effective implementation of business plan to achieve the future targets. The board appreciated the efforts of PSM management regarding the expansion plan of Pakistan Steel. It was discussed that complementary support plans in terms of logistic arrangement, production cycle and marketing forecast should be developed at priority to ensure success of the Business Plan.
Dollar at four-month low against euro in Asia SINGAPORE AFP
The dollar fell to a four-month low against the euro in Asia Monday as the Federal Reserve’s open-ended stimulus continued to weigh on the greenback, analysts said. The single currency bought $1.3132 in the morning —its highest since early May — compared with $1.3127 late Friday in New York Friday. The euro was also trading at 102.70 against the yen, from 102.90 yen on Friday, while the dollar was at 78.21 yen from 78.37 yen.
“The dollar fell broadly, dropping to a fourmonth low versus the euro, after the Fed’s Thursday announcement of a third bond-buying programme,” Phillip Futures said in a report. The Fed said Thursday it would start a third programme of bond-buying, or quantitative easing, by purchasing $40 billion a month in mortgagebacked bonds and would keep the scheme in place until it saw substantial improvement in the jobs market. The measure will see a flood of dollars hitting the market, likely weakening the unit.
NIB Bank Limited Fauji Cement Engro Foods Ltd. Telecard Limited Jah.Sidd. Co.
2.41 6.48 68.96 3.33 13.95
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.5497 153.4163 1.2054 123.9641
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
94.50 123.10 152.53 1.1907 96.38 11.99 25.61 25.09 98.35
95.00 124.36 154.05 1.2025 97.85 12.18 25.84 25.29 100.78
OBS CEO Mr.Tarek M.Khan with students of iBA, Maham Aftab and Myra Saeed, at a reception to meet media.
CORPORATE CORNER NPO and Ministry of Textile signs agreement of Rs 9.2m
ISLAMABAD: Ministry of Textile & National Productivity Organization (NPO), Ministry of Industries signed agreement of Rs 9.2 million for Textile Sectors. Federal Minister for Textile Industry, Mr. Makhdoom Shahabuddin was also present at agreement signing ceremony. NPO CEO Mr. Khawaja Muhammad Yousuf and Secretary Ministry of Textile, Mr. Shahid Rashid closed the deal with firm commitment to establish quality standards within textile industry.
Etihad Airways awaits the arrival of the Boeing 787 Dreamliner
Ribbon ceremony of Color a Butterfly in Pakistan College of Commerce & Management
KARACHi: The edition of the annual Pakistan navy Maritime Exercise SEASPARK-12 had commenced yesterday. The Exercise will be conducted in the general area north Arabian Sea.
Warid MMS now reaches 175 countries worldwide KARACHI: Aimed at best serving the needs of today’s tech savvy customers, Warid has increased the scale of its International MMS service. Warid subscribers can now share International MMS with their friends and relatives through 483 international operators in 175 countries all around the globe.
Participants of the Tetra Pak Dairy Extension training course during a session at the Solve Agri Dairy institute. The four month training programme was conducted for Dairy Hub staff and covered a diverse range of topics including farm management, farm economics, and milk hygiene
Memorial Symposium on the work of artist Lubna Agha KARACHI: A memorial symposium and exhibition on the life and works of Lubna Agha, a distinguished Pakistani-American artist, was held at the Indus Valley Gallery. Lubna passed away in May this year in her Boston home.
LAHORE: Etihad Airways, the national airline of the United Arab Emirates, recently announced its plans to take delivery of more 777s and awaits the arrival of the 787 Dreamliner. Last December, Etihad Airways announced it was taking its total order book for the Boeing 787-9 Dreamliner to 41, the first of which arrives in the last quarter of 2014.
KARACHI: 105 deaf students of Deaf Reach School and Training Center Karachi (a project of Family Educational Services Foundation [FESF]) celebrated the completion of a six month skills training program on Wednesday.
UBL Funds to launch Islamic Scheme KARACHI: UBL Fund Managers, one of Pakistan’s leading Asset Management Companies, had announced the launch of its new Shariah-compliant investment scheme.
NADRA special arrangements for flood victims ISLAMABAD: National Database & Registration Authority (NADRA) made special arrangements to help flood victims of Sindh, South Punjab and Baluchistan in obtaining computerized national identity cards (CNICs) free of cost.
KARACHi: Dawood Global Foundation (DGF) held 3rd lADiESFUnD® Entrepreneurship Conference (lEC 2012) yesterday. More than 500ViPs, women entrepreneurs, male and female students and media gathered to hear the inside scoop to success.
Kyrgyz, Ambassador to Pakistan Alik Orozov being warmly received by Pearl Continental Hotel, Acting General Manager, Mr. Abdul Hayee upon his arrival at the Hotel.
Tuesday, 18 September, 2012