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BUSINESS Friday, 20 September, 2013

rupee devaluation not linked with imf

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed. — Henry Ford

(DEPRECIATION OF RUPEE)

SBP moPPing uP dollarS from oPen market KARACHI

t

LAHORE: State Bank Governor Yaseen Anwar has dispelled impressed that rupee devaluation had anything to do with agreement reached with the IMF. Talking to media here on Thursday, he said the government had received first tranche of loan from the IMF, and situation at stock market would be stabilised soon. He further said the government had nothing to do with the devaluation of Rupee against Dollar. online

PtCl, moit ink mou

Staff RepoRt

HE economic observers see the central bank mopping up dollars for the cash-strapped government from the open market where the rupee is touching its lowest ebb against the greenback. The analysts believe that the State Bank by raising dollars from the free market wanted to increase the spread between interbank and open market rates for the US currency. The present situation, they said, had been raising increasing concerns as PKR slid drastically against the USD giving rise to the possibility of a notorious challenge emerging for the economy. According to analysts at InvestCap Research, the increased volatility in PKR against the greenback had made USD an attractive investment thus magnetising considerable investor interest. "This along with repayment of IMF loans due is expected to exert further pressure on PKR," viewed InvestCap analyst Abdul Azeem. He said the massive fall in PKR had been largely led by the repayments of the IMF loans due.

The above mentioned payments were initiated in Jun-12 since the said period PKR had shed its worth by an alarming 10.7 percent up till now. The SBP’s forex reserves have also reduced by 52 percent (USD5.6bn) in the said period. Thursday, the central bank reported that by Sept 13 the country's dollar reserves stood at $10.374 billion of which over $5.256 billion belonged to the commercial banks. Moreover, post the new loan arrangement with the IMF, strong pressure had been witnessed to have built up in the local currency as it touched an all time high level of Rs105.85/USD and Rs106/USD on interbank and open market respectively. During the month (Sep-

13) the country has inked an agreement with the IMF for an Extended Fund Facility of USD 6.6 billion to support balance of payment situation. Out of total amount approved, Pakistan has received only USD5 44mn, where receipt of the remaining amount is dependent upon the fulfilment of the terms and condition set by the Fund. During the remaining period of FY14, the country is liable to repay an amount of USD 2.4 billion to the IMF. However, during FY15 and FY16 USD1.3 billion and USD60 billion respectively is due to be accrued. To Azeem, another growing concern surfacing was that investment in USD was becoming an increasingly lucrative avenue for the investors. "However, the same presents only short-term gain opportunities for individuals playing its due role in attracting speculators willing to grasp the opportunity

(INVESTMENT ROADSHOW) ISLAMABAD: The Ministry of Information Technology (MoIT) and the Pakistan Telecommunication Company Limited (PTCL) have signed an MoU that will enable the MoIT to host e-governance software applications at PTCL data center. The MoU for data center hosting facility was signed by Minister of State for IT and Telecom Anusha Rahman and PTCL President Waleed Irshad. This MoU will provide free of cost services to the ministry for a period of 15 months. It is important to mention that PSDP project titled “Federal Government Data Center and Internet” was approved through executive committee of the National Economic Council (ECNEC) in July, 2004. However, Electronic Government Directorate (EGD) has remained unable to deploy data center to date. online

EXPLORING INVESTMENT OPPORTUNITIES IN KP AND FATA KARACHI Staff RepoRt

Project Management Units of the Government of Khyber Pakhtunkhwa (KP) and Federally Administered Tribal Areas (FATA) Secretariat along with the Multi Donor Trust Fund (MDTF) administered by the World Bank organised the investment Roadshow (IRS) here on Thursday. Theme of the event was ‘Exploring the investment Friendly Environment in KPK & FATA ‘under the Economic Revitalisation of KP and FATA (ERKF) Project. The KP and Fata delegation was led by Minister for Industries, Commerce and Technical Education, KP,

Bakht Baidar, who was the keynote speaker. The minister highlighted the major initiatives planned by the new provincial regime and benefits of it. He assured his government’s full support for investors and welcomed them to explore the untapped resources of the province. Arshad Majeed Mohmmand, Secretary FATA Investment Facilitation Authority, briefed about the objectives and rationale of the ERKF Project. He said the IRS meant to act as a curtain raiser to the prevailing policy regime and the plethora of investment opportunities in the region. Muhammad Humayun, Manger Minerals, FATA Development Authority, presented an overview of the minerals sector in FATA. A panel discus-

sion with leading experts on “Scope and Opportunities Forum for Investment in KP and FATA” ended the road show with questions and answers session. Selected investment opportunities and projects were also presented and were appraised of the high return and growth potential in various sectors including power, mines and minerals and industries. The IRS also featured an exhibition, showcasing the products from KP and FATA with high export potential. The road show provided the attendees an unprecedented opportunity to interact with leading corporations that have invested and are operating in the region and gain from their insights and experience.

GOVT WANTS BIFURCATION OF DIAMIR-BHASHA DAM IslAmAbAd

“We need to unbundle Diamer-Basha Dam project. The dam and electricity genFederal Minister for Planning and Devel- eration combined will cost US$12 billion. opment Ahsan Iqbal has said the govern- If only the dam is made, it will cost US$5.5 billion only. The ment has plans to bifurcate the electricity generaDiamer-Basha Dam project into tion part will be two separate projects. We need carried out In a statement issued to unbundle through prifrom his office on Thursvate investday, he said the project Diamer-Basha Dam ment,” he would consist of two project. The dam and told the components including particithe dam for water electricity generation pants of storage which will combined will cost the concost around US$5.5 cluding billion, and the elec$12 billion. If only session of tricity generation plant the dam is made, an energy for which private investconference ment will be sought. it will cost organised by $5.5b only the Institute of Policy Studies and themed "Toward an Energy Secure Pakistan: Road to Recovery and Sustainability - Agenda for Action". He said the construction of DiamerBasha Dam was critical for the country as it was the only dam site on which national AHSAN IQBAL consensus existed and it was the only soFederal Minister lution for the looming water crisis that

welcomingly," he said. The SBP's stance to increase interest rates is expected to curb the fluctuation in USD for an investment prospective, the analyst said. "The recent turn of events lead us to believe in the possibility of SBP mopping up dollars from the open market," Azeem said. He expected such an act to increase the spread between interbank and open market rates for the greenback. In the absence of any sizeable inflow of USD, expectation of PKR depreciation during FY14 remained high. Moreover, poor law and order situation coupled with energy crisis can both be classified as major contributors forcing foreign flows to evaporate and affect the country's exports. However, given the present situation, the balance of payment situation can be supported by privatization of state-owned companies, FDI, 3G Auction, payments from Etisalat, remittances and last but not the least loans from donor agencies. "Though all these options have their due pros and cons, we continue to expect PKR to remain depressed during FY14 with the likelihood of touching Rs110/USD by the year end," said the analyst.

atlas, denSo sign up for $7.2m joint venture KARACHI Staff RepoRt

Pakistan Atlas Hitec (Private) Limited held its plant inauguration ceremony on Thursday marking the official start of its commercial production. The new company is a Joint Venture (JV) between Atlas Group and Denso Corporation, Japan, in which Atlas Group and Denso Corporation hold 74 percent and 26 percent ownership, respectively. Both Atlas and DENSO are renowned names in the manufacturing and marketing of auto products. Akira Ouchi, Consul General of Japan inaugurated the plant. Haruya Maruyama and Michio Adachi - Executive Managing Directors from Denso Corporation and Saquib H. Shirazi - CEO and Hisao Kobayashi - Director from Atlas Honda attended the inauguration ceremony. Atlas Hitec (Private) Limited was incorporated on September 13, 2012. With an initial combined equity investment of $ 7.2 million, the company will produce motor cycle products that meet the market need in Pakistan by utilising Atlas Group’s abundant business expertise in the country and DENSO’s technologies for motorcycle parts. The advanced manufacturing plant will utilise the latest technology available in the production process and, at the same time, meet the highest environmental requirements for producing Honda motorcycles. Initially, the company will employ up to 300 employees.

Country facing 2b cubic feet gas shortage: na told could be worse than the energy crisis in the years to come. He said it was criminal on the part of previous regime to ignore this crucial project and waste five precious years out of the nine years that were required to built this dam. He said an integrated approach was needed to improve energy governance of the country. “In 1998, we had a plan to add 2800MW in the national grid by 2010 and we were working towards it but the 1999 coup obstructed that planning. The country was run on ad-hoc basis in the last 14 years and it is our biggest challenge to

fix the wrongs committed during that period”, he stated. The government cannot provide subsidies endlessly if the cost of generation remains increasing hence the tariff needs to be raised. However, all efforts must be made to reduce the power generation cost, he said further. “Drastic reforms needed to revamp the system of governance. The first two years of the present government will be tough, however, I am sure that these testing times will bear fruit and the nation will reap the benefits of good governance and economic reforms”, he claimed.

ISLAMABAD: The National Assembly was informed on Thursday that the country was facing two billion cubic feet gas shortage. Minister of State for Petroleum and Natural Resources Jam Kamal Khan told the House during question hour that there was no plan to decrease the import of crude oil because the country was already running short of gas. He said private sector refineries imported the crude oil and the government could not slash down their imports. He informed the House that over 1.4 million domestic applications of new gas connections were pending with Sui Northern and 33,000 with the Sui Southern Gas Company. online


PRO 20-09-2013_Layout 1 9/20/2013 5:54 AM Page 2

In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later. — Harold S. Geneen

over 10,000 BankS go online in 4QfY13 KARACHI

90 percent. Transactions through debit cards also increased both in volume and value. Staff RepoRt According to the review, the volume of overall ORE than 300 ATMs were installed e-banking transactions during the quarter also deand dozens of bank branches added picted a growth of 6.42 percent which is equal to to the online branch network in the 87.49 million transactions. Of all the e-banking country in the fourth quarter of transactions, mobile transactions showed the highest percentage increase as compared to the previFY13. According to Payment Systems Review of 4th ous quarter of current fiscal year. These transactions increased by Quarter (April to June) FY13 released by 18.05 percent in terms of volume the State Bank of Pakistan on Thursreaching to 1.32 million as comday, the installation of 308 ATMs pared to 1.12 million in the The volume brought the total number to quarter. The value 6,757. Some 67 more bank of overall e-banking preceding of mobile transactions again branches were added to the showed the highest pertransactions during online branch network which centage increase as commakes a total of 10,013 the quarter also pared to the previous branches that are now offerquarter as the value indepicted a growth of ing RTOB services out of creased by 34.35 percent 10,581 total bank branches 6.42 percent which is reaching to Rs 9.9 billion as across the country. The review compared to Rs 7.3 billion in equal to 87.49m said that compared with the the preceding quarter. preceding quarter, the number of transactions The review said that in terms plastic cards (credit cards, debit of volume of overall e-banking cards, ATM only cards, smart cards, Istransactions, ATM transactions have a lamic credit cards) issued to customers increased by 2.53 percent in the fourth quarter of major share of 63.70 percent and average value FY13, thus bringing the total number of plastic per transaction stands at Rs 10,007. In comparison with the number of transactions reported in cards issued to 22.32 million. In comparison with other plastic cards, ATM the third quarter of the current fiscal year, the Only Cards shown the highest growth rate of about overall volume of ATM transactions increased by 4.56 percent, which has raised the total number of 8.00 percent and the value increased by 8.02 perATM Only Cards issued so far to 962 thousand, al- cent. During the quarter, 559 more Point of Sale though debit cards have the highest percentage machines were installed by various banks across share in overall plastic cards which is more than the country.

m

india returns mangoes sent across loC MUZAFFARABAD: The intra-Kashmir trade through the two crossing points on the Line of Control (LoC) may meet a tragic fate as Indian officials have refused to accept items which they allege are not from Azad Jammu and Kashmir. On Aug 29, Indian authorities at their trade facilitation centre in Salamabad, on the other side of Chakothi, returned two trucks from AJK carrying mangoes, saying that the produce belonged to Pakistan, and not Azad Kashmir. The decision caused anger not only here but also among traders on the India-held side. They went on a strike on Sept 3, saying the standard operating procedure (SOP) had no mention of the origin of a product. The same day, Indian officials conveyed to their counterparts in AJK that trade could not be carried on for some time because the traders on their side had gone on a strike. On Wednesday, the AJK Trade and Travel Authority (Tata), which deals with intra-Kashmir trade and travel, sent a written request to officials on the other side for a meeting at the Kaman Bridge on Monday to sort out the issue. On Monday, Tata Director General retired Brig Mohammad Ismail himself went to the crossing point at 10.30am, but no one turned up from the other side. In the afternoon, Ehsanul Haq, custodian of intra-Kashmir trade at the Salamabad centre, met Azad Kashmir’s Trade Facilitation Officer Basharat Iqbal and handed him a copy of a ‘notification’ from India’s Central Board of Excise and Customs, stating that the goods which had their origin in Pakistan, and not in AJK, could not be allowed to be traded across the LoC. aGenCieS

02

BUSINESS B Friday, 20 September, 2013

Major Gainers COMPANY Wyeth Pak ltd island textile Bata (Pak) Murree Brewery attock refineryXd

OPEN 3470.58 917.98 1814.50 308.52 220.16

HIGH 3640.00 963.87 1850.00 323.90 231.16

LOW 3500.00 963.87 1840.00 299.01 216.50

CLOSE CHANGE 3640.00 169.42 963.87 45.89 1840.00 25.50 319.30 10.78 230.06 9.90

TURNOVER 1,660 100 120 13,300 580,100

1016.00 399.00 200.99 610.00 232.00

943.00 398.05 200.22 610.00 232.00

967.00 398.05 200.61 610.00 232.00

-24.76 -20.95 -10.14 -7.50 -6.00

11,500 3,700 5,500 100 300

13.29 2.72 55.08 8.85 4.40

12.70 2.35 52.69 8.00 3.40

13.10 2.67 55.08 8.50 4.17

0.46 0.33 2.62 -0.05 0.66

28,288,500 19,000,500 15,245,500 14,487,000 13,258,500

Major Losers siemens Pakistan Bhanero tex. treet Corporat shezan inter. Pak services

991.76 419.00 210.75 617.50 238.00

Volume Leaders B.O.Punjab niB Bank limited national Bank. P.i.a.C.(a) askari Bank(r)

12.64 2.34 52.46 8.55 3.51

Interbank Rates Usd GBP JPY eUrO

PKr 105.8168 PKr 169.9947 PKr 1.0691 PKr 143.4135

Forex UK Pound sterling euro Us dollar Canadian dollar australian dollar Japanese Yen saudi riyal Uae dirham China Yuan

BUY

SELL

170.25 143 106.75 103.25 100 1.064 28.3 28.85 16.5

170.5 143.25 107 103.5 100.25 1.078 28.55 29.1 16.75

CORPORATE CORNER Distribution, Mr. Nauman Fakhar, VP Customer Services and Mr. Adnan Anjum, Director Marketing Strategy and Pricing from Warid Telecom. Mr. Azfar Jamal, Head of Branchless Banking and Mr. Ghanzfar Ali Khan, Head of Sales Branchless Banking from HBL. pReSS ReleaSe

ISLAMABAD: OGDCL Managing Director Muhammad Riaz Khan and E&P MOL Group (Hungary) Executive Vice President Alexander Dodds sign MoU for collaboration in upstream sector at OGDCL headquarters. pR

Warid, HBl sign agreement for provision of uSSd Channel for HBl express

LAHORE: Habib Bank Limited and Warid Telecom signed an agreement today for a strategic alliance whereby Warid Telecom will provide Habib Bank Limited with access to Unstructured Supplementary Service Data (USSD), enabling ‘HBL Express’ (Habib Bank Limited’s branchless banking project) to conduct financial transactions in the most reliable and secure manner. Telecom companies are uniquely placed in the branchless banking ecosystem since they have the required technology and resources to enhance the growth and uptake of this burgeoning industry. This partnership will allow HBL Express to expand its branchless banking footprint in Pakistan while providing peace of mind to its consumers since all financial transactions carried out will be completely safe and secure. The provision of USSD services is the first step in this alliance which will provide financial and commercial benefit to both organisations in the coming future. The agreement was signed at Warid Telecom’s Head Office in Lahore between Mr. Tariq Gulzar, Chief Financial Officer, Warid Telecom and Mr. Faiq Sadiq, Head of Payment Services, HBL. The ceremony was also attended by senior executives from both organisations, including Mr. Younas Iqbal Sheikh, Chief Commercial Officer, Mr. Suhail Jan, VP Sales &

Pia’s 46 flights airlift 19,000 intending Haj pilgrims

Officer, Tariq Chaudhary said, "Junaid is a wellknown visionary executive in Pakistan and a brilliant strategist. I look forward to working with him and making Airblue as one of the best airlines in the region." pReSS ReleaSe

kaY & emmS receive 4th global Hr excellence awards 2013

KARACHI: Pakistan International Airlines on the tenth day of its Hajj Operation operated four special hajj flights while carrying over 16,00 Hujjaj to the Holy Land. On Wednesday, PIA’s PK2119 carrying 487 Hujjaj left Karachi at 6.25AM, from Peshawar PK2617 carrying 324 at 09.20AM, from Multan PK2319 carrying 502 at 7.35PM and from Quetta PK2719 took off at 10.00PM carrying 329 pilgrims to holy land. The departure and arrival of all flights was on time. Till now the total uplift of intending pilgrims stand at 19,000 by forty six hajj flights. So far, six Hajj flights from Karachi carried 2,413, nine flights from Lahore 4,457; nine flights from Islamabad 4,311; eleven flights from Peshawar 3,851; six flights from Quetta 1,972 and four flights from Multan carried 2,010 Hujjaj to Saudi Arabia. On Thursday, 19th September, a total of five special flights operated; two from Peshawar and one each from Karachi, Multan and Quetta. pReSS ReleaSe

airblue appoints Junaid khan as md ISLAMABAD: Airblue announced that it has appointed Junaid Khan as Managing Director of the airline, effective September 16, 2013. The appointment of Junaid Khan, a leading executive in aviation and technology sectors, signals a renewed focus on product innovation for one of the Asia's finest airlines. In his remarks Junaid Khan said "I am honored and delighted to lead Airblue, a premier airline with growing destinations and Pakistan's youngest aircraft fleet. I look forward to working with the Company's dedicated employees to bring innovative products and personalized service to our passengers". Airblue Chief Executive

PtCl announces special discount for new customers ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), the largest integrated ICT services provider, is rewarding its EVO customers by offering discount on new PTCL EVO Max and PTCL EVO Tab devices. The two-pronged campaign enables EVO Max customers to enjoy 50% discount on line rent charges till June 30th, 2014 while EVO Tab customers can relish savings of Rs. 3,500 on new purchase and also receive 3 months free unlimited internet access. Omar Khalid, PTCL Executive Vice President (EVP) Wireless Services commented at this offer, “Through its vast data network and widest coverage, PTCL EVO broadband is empowering people to reach out to new opportunities and making access to information more convenient for people across Pakistan”. pReSS ReleaSe

virtual university partners with uSaid for teachers’ education

KARACHI: KAY & EMMS was conferred the 4th Global HR Excellence Awards-2013 at a marvelous ceremony held and attended by glitterati of Pakistani business and social sectors. Sindh Minister for Environment Dr. Sikandar Ali Mandhro was the chief guest. KAY & EMMS (PVT) Limited honored for this unique and exclusive HR Excellence award for its innovative & best HR practices based business operations. Moazzam Tariq, Director Operations, KAY & EMMS (Pvt.) Limited, received the award on behalf of Dr. Khurram Tariq CEO, Kay & Emms. At the occasion, Dr. Sikandar Ali Mandhro additionally also appreciated the noble efforts of KAY & EMMS for greener Pakistan. He impressed with the best HR practices and best green practices of Kay & Emms and he strongly emphasis the corporate and export businesses to follow the path of KAY & Emms. Kay & Emms is being ranked among top 15 knitted garments companies of South Asia. It is one of the leading knitted fabric and garments manufacturing and export company of Pakistan, which have certified in WRAP and other social and environment related compliances standards. The organization is very much committed in more excellence in HR Practices & protection of Environment. pReSS ReleaSe

LAHORE: Virtual University of Pakistan collaborated with USAID initiative to equip local teacher educators with modern teaching techniques. For this purpose, USAID organized technology oriented online teacher education workshops. Experts from Massachusetts Institute of Technology (MIT) conducted different workshops about “Online teacher education”. Being the leading online education provider of the country, Virtual University hosted all the online and face-to-face workshops in which teachers from different institutions from all over the country participated with great enthusiasm and interest. pReSS ReleaSe

KARACHI: Ibrahim Ihsan Khan receives ‘Excellence in Community Services’ award from Karachi commissioner during the 10th NEFH Awards. pR

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