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PRO 21-06-2012_Layout 1 6/21/2012 12:14 AM Page 1

Let’s gape at the oil pendulum Page 02

profit.com.pk

Thursday, 21 June, 2012

JERKS… KNEE-JERKS THAT IS…

SBP GovERNoR AT MF-CIB NATIoNAL RoLL-oUT

The Guvnor’s tutorial on microfinance gets emotional… and personal

Having second thoughts, are we?

The guvnor’s microfinance lecture numero uno states that multiple borrowing and loan defaults are not really the best thing in the world, and that a certain Credit Information Bureau would pull an elephant out of the proverbial hat to reduce that particular risk. And then he went onto blow SBP’s trumpet as to how it has proven itself to be the godfather of the microfinance sector – no real surprises there...

ONLINE

KARACHI

Y

STAFF REPORT

ASEEN Anwar Governor State Bank of Pakistan (SBP) has said that Microfinance-exclusive Credit Information Bureau (MFCIB) would help microfinance banks (MFBs) and microfinance institutions (MFIs) in developing robust risk management system and practices, which in turn reduce the risk of multiple borrowing and loan defaults. Delivering his keynote address at

the national roll-out of MF-CIB here at SBP Learning Resource Centre (LRC) Auditorium on Wednesday, the SBP governor said the Bureau would open access to credit for millions of potential poor borrowers and reduce the credit risk cost of the lenders, besides lowering the loan price for the borrowers. Anwar pointed out that at present even the credit-worthy borrowers of microfinance institutions face difficulty in accessing larger loans from MFBs or commercial banks due to non-availability of their long history of loans and timely repayments with a microfinance institution. “The MF-CIB will facilitate in the ‘graduation’ of such livelihood-based workers into small entrepreneurs,” he added. He said this nation-wide MF-CIB will be a major step for both lenders and borrowers with positive impact. “As the CIB expands its operations across the country, the quality and efficiency of the loan appraisal process will improve significantly.” SBP believes that a policy framework for credit bureaus is essential for their smooth and long-term growth, he said, adding the Government and SBP have already been working on the development of a legal framework, which will strengthen private CIBs by establishing criteria for licensing, issuing regulations, and creating oversight mechanism. “All this will result

ment to reach out to millions of financially excluded people.” The SBP governor pointed out that Pakistan has one of the lowest financial penetration levels in the world with 56% adult population totally excluded, and another 32% informally served. “Therefore, it is imperative that we all endeavor to bring the unbanked people into the formal banking channels to achieve our collective vision of access to all,” he said. Highlighting some of the recent developments in the microfinance sector, he said that first and foremost, many of our MFBs have undergone recapitalization and restructuring in the last two years. Resultantly, strong and strategic investors have now entered and are entering in the microfinance sector, he said, adding that secondly, adoption of new technologies and alternative delivery channels such as mobile phone and agent-based banking have radically transformed the distribution channels and retail capacity of the sector. “Finally, SBP continues to invest in various large-scale initiatives in areas of funding, financial literacy, capacity building, institutional strengthening and innovations,” said he. SBP encourages that credit growth should be fairly distributed across all economic, social, and geographic segments of the target market.

into stakeholders’ satisfaction, and, most importantly, it will boost public confidence,” he added. He said that SBP has played a sterling role in the development of microfinance sector as an alternative to conventional banking to serve the lower end of the market. ‘However, there is a global shift from microfinance to inclusive finance, that is, from supporting microfinance initiatives in isolation to building inclusive financial sector,’ he added. Financial inclusion, which is a core component of SBP’s financial sector development strategy, will also stimulate economic growth for the country, he said, adding that it envisages transforming the financial market into an equitable system with efficient market-based financial services to the otherwise excluded poor and marginalized population including women and young people. Anwar urged upon the CEOs/Presidents of MFBs and MFIs to improve corporate governance, management structures and put in place adequate systems & policies in their respective organizations for ensuring protection of consumer rights. SBP is already in the process of revising regulations to ensure that MFBs follow best standards in these critical areas, he said and added: “We count on your wisdom and commit-

g

India may not inject $10b for IMF immediately NEW DELHI

India may not be called upon to give $10 billion ( Rs. 55,000 crore) it has committed to the IMF for bailing out debt-wrecked Eurozone if the global economic situation improves, Indian media reported on Wednesday. "The amount we contribute is entirely liquid, in the sense that the International Monetary Fund (IMF) assures contributors that it will be available whenever needed. It will, therefore, continue to form part of our reserves," Prime Minister Manmohan Singh said in a statement. Indian officials explained that the situation has not reached a point where the funds committed by Singh at the G20 Summit on Tuesday would have to be transferred to the IMF. According to R Gopalan, Secretary in the Department of Indian Economic Affairs, "the country may not be called upon to give the money if the world situation gets better." India's contribution to the IMF bailout fund, Singh said, "reflects our recognition that as a responsible player in the global community, we must play our part." The G20 countries, he added, have responded to the need to enhance the resources of the IMF to enable it to play its role in the current situation. "India has contributed $10 billion. BRICS and other countries have also contributed, taking the total commitments, including what was earlier agreed in April, to almost $460 billion," Singh added.

CPPs defy logic, belief, reason 20-20 is hindsight; and math… among other things G-20’s is blindsight Captive Power Plants benefit a handful of industries at the cost of load shedding; not an equation Adam Smith – or any economist with half a chicken’s brain for that matter – would be proud of… AMER SIAL ISLAMABAD

The captive power plants (CPP) of influential business groups, which have emerged as a parallel power sector over the decades, while benefiting only a limited number of industries at the cost of load shedding to the entire nation, is now posing a threat to the entire power sector if its unabated natural gas supplies are not immediately stopped. A study carried out by Planning Commission on the gas allocation and its impact on the power sector available with the Pakistan Today notes with concern that CPPs are currently estimated to be using 1.2 billion cubic feet gas per day (bcfd) out of which 250 million cubic feet gas per day (mmcfd) alone is allocated to plants in Karachi, which is higher than Karachi Electricity Supply Company (KESC) supply of 153 mmcfd. For immediate solution to the power crisis, the study recommends diverting 800 mmcfd from CPPs to Independent Power Plants (IPPs), which will increase generation by 3350 MW.

It will help in a savings of $ 5.2 billion. Highlighting that presence of CPP only benefits a few industries while resulting in load shedding for the entire nation, it stresses gas allocation on rational basis as it is a scarce commodity. It says gas consumption in the compressed natural gas (CNG) sector has increased by 363 percent from fiscal year 2004-05 to fiscal year 2010-11, due to its being 33 percent cheaper than petrol and high speed diesel. Diverting 310 mmcfd from CNG will increase power generation by 1300 MW. It will also result in a saving of $ 2 billion on account of low furnace oil consumption. Both these steps will help reduce the load shedding by 80 percent as by a simple decision power generation will increase by 4,600 MW and enhance economic growth. It will also end the circular debt as the power tariff differential subsidy (TDS) will be completely eliminated. It will also allow retaining the fiscal deficit close to the budgetary target. To avoid controversy on the facts,

the study is compiled on the basis of the published government data upto end fiscal year 2010-11. Power crisis is one of the major reasons for massive decline in investment which have fallen from 23 percent of GDP in fiscal year 2006-07 to 13 percent in fiscal year 2010-11. It says TDS has increased 51 percent per annum over the last 5 years. TDS alone contributed to 30 percent in the fiscal deficit last fiscal year. The misallocation of natural gas has intensified the power crisis, points out the study stressing efficient allocation of scarce resource. It says gas allocation policy was blatantly violated since 2005, as general industry fourth in the allocation list were the largest beneficiaries. The gas allocation to industries increased by 34 percent or 766 mmcfd and CNG sector by 363 percent or 310 mmcfd over the same period. While the power third on the priority list, after domestic and commercial consumers, was the major loser since 2005 when its gas allocation decreased from 44 percent or 1.3 bcfd in FY 2005 to 27 percent or 924 mmcfd in FY11.

Protectionism was conspicuous as top leaders threw their respective toys out of the prams. There was a deadlock over the extension of the ‘trade barrier’ pledge, which was broken by, surprise, surprise, our good friend Supercomrade Putin... g

LOS CABOS AGENCIES

World leaders extended by one year their vow not to put up new trade barriers at the Group of 20 summit on Tuesday in a lastminute deal that exposed deep rifts over protectionism. The agreement to refrain from new protectionist measures until the end of 2014 as part of world leaders' efforts to foster global growth was included in the final G20 communique. Mexican President Felipe Calderon said it was hard won and struck only at the very end of two-day talks in the Pacific resort of Los Cabos. "There was resistance from some countries but beyond that we did manage to get a consensus and arrive at an agreement," he told a news conference after the meeting. Brazil, Argentina and South Africa had resisted extending the trade pledge beyond its current expiry at the end of 2013, while other countries wanted to push it back to 2015, a diplomat with knowledge of the G20 trade talks said. The deadlock was broken by Russian President Vladimir Putin, the diplomat said.

ALARM RISING: Ahead of the summit, Japan and the European Union had sent strong warnings that free trade was under threat as some countries respond to slowing growth by trying to protect their domestic industries. "The EU is sounding the alarm regarding a worrisome rise in protectionism," EU President Jose Manuel Barroso said as G20 members arrived in Los Cabos. Japan's Prime Minister Yoshihiko Noda called for world leaders to stamp out any efforts to lessen free trade. "I see signs of protectionism emerging in the G20 debate, so we should deliver a message to counter (that)," he told reporters. Fearful that trade protectionism would slow global growth, G20 leaders at the height of the financial crisis in November 2008 first pledged to refrain from erecting any new trade barriers, often used to shield domestic businesses from world competition at times of economic stress. Despite that effort, a WB report released on Sunday found that G20 nations have accounted for the vast majority of the more than 1,000 new protectionist measures that have been introduced between Nov 2008 and March 2012.


PRO 21-06-2012_Layout 1 6/21/2012 12:14 AM Page 2

02

Thursday, 21 June, 2012

news

Another bizarre linkup? g

Govt links external debt sustainability with foreign exchange earnings capacity

Let’s gape at the oil pendulum g

While easing oil prices are touted as the outlet of respite in our neck of the woods, probably since the $3.77b C/A gap scares the daylight out of our economic mangers, crude dropped in Asia with profit taking and Fed decision paranoia dragging it down. Meanwhile, Japan feels buying oil from Iran would be a great idea. Yeah, good luck with that! A FEW PARTS OF THE MILKY WAY

ISLAMABAD ONLINE

The government has linked external debt sustainability of the country with foreign exchange earnings capacity of the economy as public debt to revenue ratio is consistently rising against Public Debt-to-GDP ratio, say an official. In the current financial year ending June 30, 2012 public debt to revenue ratio of the country is expected to stand at 414 per cent against Public Debt-to-Gross Domestic Product (GDP) ratio which has been hovering around 60 per cent in last four years. Official said that government was need to contain primary deficit through enhancing revenues and rationalization of current expenditure particularly untargeted subsidies and to improve the external debt sustainability, foreign exchange earnings needs to be enhanced through focusing on exports, workers’ remittances and attracting foreign investment so that public debt can be made sustainable. According to official, the higher fiscal deficit is adding to public debt and pre-empting a major chunk of revenues to service.

Euro weakens in Asian trade TOKYO APP/AFP

The euro weakened in Asian trade on Wednesday as worries about the eurozone continued to weigh while traders looked to a US Federal Reserve policy meeting for signs of further stimulus measures. The common currency was changing hands at $1.2670 and 99.97 yen in Tokyo morning trade, easing from $1.2688 and 100.16 yen in New York late Tuesday. The dollar was flat at 78.88 yen."Asian trade lacks direction," said Yukihiro Ichikawa, manager at Hachijuni Bank's forex group. "Worries over immediate eurozone turmoil have receded after the Greek elections, where pro-austerity parties won. "But the bottom-line trend of a weak euro has not changed. Greece will need more money sooner or later." The euro rose overnight after a moderately successful, if expensive, Spanish bond auction. The Tuesday sale saw Madrid raise 3.04 billion euros ($3.8 billion), beating a 2.03.0-billion-euro target and after worries about Spain spiked in the wake of a 100billion-euro bailout to prop up its troubled banks. However Spain still had to pay sky-high rates to lure investors -5.074 percent for 12-month debt and 5.107 percent for 18-month debt. Markets were also eyeing the Fed's two-day policy meeting starting Tuesday, amid speculation that the bank will launch further stimulus, including chopping interest rates, to spur the world's largest economy.

T

STAFF REPORT/AGENCIES

HE analysts foresee a big challenge for the economic mangers in the months ahead as the country’s current account deficit widened to $ 3.77 billion during first 11 months of the current fiscal year, July-May-FY12. The major source of concern for the government, the analysts believe, would be its depleting foreign exchange reserves to be eroded by the hefty debt repayments to the International Monetary Fund (IMF), especially when the inflow of foreign financing is at the lowest level. The analysts at InvestCap Research said the current account gap swelled to $3.77 billion during 11MFY12 compared to a deficit of just $ 79 million last year, up by a whopping $ 3,691 million. “The main reason for this widening CA gap this year is huge trade deficit,” the analysts said. During the review period the country’s trade gap ballooned by up 44pc YoY to $13.8 billion whereas it was $9.6 billion during same period in FY11. The widening deficit gap includes rising import bill (up 13% YoY) and flat exports (down 0.3% YoY). Furthermore, the State Bank of Pakistan reported that the current account deficit stood at $ 414 million in May12 as against $275 million in April12, up 50pc MoM. The statistics also reveals that the country's exports value and volumes stood on the declining side to reach at USD22.64bn during 11MFY12 period as against USD22.7bn recorded during same period last year, down by meager 0.3%YoY. On the other hand, the import during same period were USD36.5bn, up 13%YoY from USD32.3bn recorded last year. On monthly basis, country's exports were valued at USD2.17bn, which was 6% YoY lower than the level of USD2.2bn during May11. However, imports were valued at USD3.32bn in May-12, registering a decline of 0.9% YoY over the import of USD3.35bn during May-11, imports during this year were mainly supported by decline in international

oil prices. The worker remittances inflows offered considerable support to the current account as it posted the growth of 19.5%YoY during 11MFY12 to stand at USD12.1bn compared to USD10.1bn recorded last year. Remittances during May-12 stood at USD1.19bn compared to USD1.05bn during May-11, showing surge of 13.5%YoY. “However, on the other hand, the declining trend of international oil and commodity prices could potentially result in CA numbers delivering some relief in 1QFY13,” said the analysts. Also expected, they said, was improvement in the Pak-US relations that could be a key positive development for re-initiation of Coalition Support Fund program and other civilian and military aid foreign flows which will decrease the pressure on country's external account. CRUDE DOWN IN ASIA ON PROFIT-TAKING: Crude slid in Asia on Wednesday with traders taking profit from overnight gains as euphoria over a speculated US Federal Reserve stimulus offset persistent worries about Europe, analysts said. New York's main contract, light sweet crude for delivery in July, fell 19 cents to $83.84 a barrel on its last trading day and Brent North Sea crude for August delivery shed 13 cents to $95.63. Oil traders were cashing out of the market after a rally in late trade Tuesday fuelled by talk of Fed action to boost the flagging US economy, said Jason Hughes, head of premium client management for IG Markets Singapore. "We've seen the oil price ease a bit in the Asian session so far, perhaps that's in line with the view that people might be taking some short-term gains," he told AFP. The Federal Reserve on Tuesday began another crunch policy meeting under the pall of subpar US jobs growth and a European debt crisis that could slowly squeeze the life out of the global

recovery. Many on Wall Street were betting that the bad news forces the Fed to come to the rescue -- altering its bond portfolio or piling more assets on its already considerably swollen balance sheet. But Hughes said traders were taking a second look at their expectations of drastic Fed action to jumpstart the economy of the world's largest oil consumer after the initial euphoria. JAPAN MOVES ONE STEP FORWARD IN BUYING OIL FROM IRAN: Despite the ban from EU, the parliament of Japan has given the approval to accept the government’s guarantee on insurance for importing crude oil from Iran . The decision of the parliament would pave the way for oil purchase for Japan from Iran.The law will take effect on June 27, a government official said on Tuesday. It allows the Japanese government, which has succeeded in getting a waiver from U.S. financial sanctions, to provide cover of up to $7.6 billion for each tanker carrying Iranian crude bound for Japan in the event of accidents. A European Union ban on member countries importing Iranian oil takes effect on July 1 and includes a ban on EU insurance firms from covering Iran's exports. That is a headache for Japan, South Korea, China and India, which together buy two-thirds of Iran's oil exports and rely on EU companies to insure them. EU and U.S. sanctions aim to cut the oil revenues on which Tehran depends to force it to curb its nuclear program. The West suspects Iran's aim is to develop nuclear weapons, while Tehran says it needs reactors to provide electricity.

Pakistan and IMF: a road to nowhere ISLAMABAD STAFF REPORT

Pakistan Institute of Development Economics (PIDE) organized an INVITED lecture on ‘Pakistan and the IMF’ by Dr. Meekal Ahmed, Visiting Senior Fellow, PIDE and formerly Senior Advisor to Executive Director IMF and Joint Chief Economist, Pakistan Planning Commission, here on Wednesday. Mr. Shahid Kardar, former Governor State Bank of Pakistan presided over the invited lecture. In his lecture Dr. Meekal analyzed the IMF’s interaction with Pakistan. He said a great deal is written and said about the IMF’s interaction with Pakistan, none of it good, most of it couched in sweeping negative terms and some of it quite hostile. He held that at the same time in Pakistan who have a deep abiding commitment to economic reform and feel frustrated by the fact that so little reforms has been undertaken think that the IMF have been insufficiently tough on Pakistan, letting Pakistan off the hook time and again rather then taking the opportunity of a critical situation to push through

much-needed reforms. Dr. Meekal added that to some this suggests that the IMF is in cahoots with Pakistan’s elite and is not willing to stare down powerful vested interests in agriculture, the stock market, the real estate sector and services which remain untaxed. “Yet, despite all the programs we have had with the IMF and the legions of technical assistance missions and fiscal experts, the tax system remains dysfunctional, discriminatory, and corrupt with too many exemptions, concessions, tax arrears, non-filers and under-filers. Pakistan’s tax to GDP ratio after 64 years is still amongst the lowest in the world and risks falling further,” he said. He discussed that the fund is accused of being anti-poor forcing countries to cut spending in the social sectors such as health, education and so on, is untrue. The prerogative of where to cut spending, generally a better route to fiscal adjustment than raising taxes, belongs to the country authorities, not the fund. “The fund is neither clairvoyant nor omnipotent and has made mistakes most spectacularly in Asia. For our part, we need to reflect on way we are a ‘prolonged user’ of fund resources

and unable to get out of their clutches and stay out like other successful developing countries have done,” he said. Former Governor State Bank, Shahid Kardar said that in Pakistan we have no proper implementation mechanism to seriously undertake any policy reforms. He said, “We have high default rate in electricity bill payment, as private sector is defaulter of Rs 160 billion the question rises why we not disconnecting them?. On the other hand we have 34, 000 registered electricity commercial users of which only 4000 file tax returns. He emphasized on governance issues and lack luster priorities of policy makers. He categorically pointed out that bureaucracy is just not willing or committed for economic reforms. He pointed out that for political reasons the agriculture sector is not taxed but are getting huge subsidies on fertilizers. While speaking on the occasion, Vice Chancellor, PIDE, Dr. Rashid Amjad said that in last 20 years Pakistan had been through 15 IMF programmes with very little to show for them. In the current uncertainty the investment rate has dropped to 11 percent of GDP the lowest in the country’s history.

There’s good news for ‘Prime Customers’ g

They may get Rs5m clean credit card, personal loan from banks KARACHI STAFF REPORT

The State Bank of Pakistan (SBP) has allowed the banks and Development Finance Institutions (DFIs) to assign clean credit card and personal loan limits up to a maximum of Rs 5 million with a sub-limit of Rs 2 million on clean personal loans to their “Prime Customers”. The higher clean limits facility has been provided to banks and DFIs with a view to providing flexible treatment to their prime customers. However, aggregate exposure of banks and DFIs in respect of prime customers has been capped at up to 20 percent of the total exposure on account of credit cards and personal loans, said an SBP circular issued to the banks and DFIs on Wednesday. In view of this facility to prime customers, the following paragraph has been added after Paragraph 3 of Regulation R-7 of Prudential Regulations for consumer financing.

BHARAT RAJ AT LCCI! g

No we’re not going back to the late 1930s, that’s the name of the Nepalese ambassador LAHORE ONLINE

The Nepalese ambassador Bharat Raj Paudyal has said Pakistan and Nepal should focus on the promotion of bilateral business relations ensuring continued partnership for progress. Speaking to the business community during his visit to Lahore Chamber of Commerce and Industry (LCCI), he said the economic ties between the two countries can be enhanced to the best possibility. The ambassador of Nepal said Nepal greatly valued its relations with Pakistan that were based on mutual respect, trust

and shared perceptions on regional and international issues. Exchange of sector-specific trade delegations, single country exhibitions, dissemination of economic data and a proactive involvement of chambers of commerce in the two countries can do miracles as far as two-way business is concerned, he added. He said Nepalese businessmen felt quite comfortable while dealing with their Pakistani counterparts. He expressed the opinion that the fast changing global scenario called for innovative economic strategies therefore the businessmen in the two countries should join hands for a better tomorrow. He said that at present the mutual trade ties between

Pakistan and Nepal are negligible and the state of affairs asked for an increased frequency of reciprocal visits by the Pakistani and Nepalese business community. The Ambassador urged the Acting President, LCCI, to bring a delegation of LCCI to Nepal for having first hand knowledge about the economic opportunities in Nepal as frequent visits were a way to expand business ties. His deputy, DP Bhandari also gave a detailed presentation on available business opportunities in Nepal. The LCCI Acting President Kashif Younis Meher, Vice President Saeeda Nazar and Vice President SAARC Chamber of Commerce and Industry Iftikhar Ali Malik,

Former LCCI Senior Vice President Abdul Basit and former Vice President Aftab Ahmad Vohra shared their point of view on the subject. The LCCI Acting President Kashif Younis Meher termed Nepal as an important partner for Pakistan in the SAARC region. “As far as mutual trade ties are concerned, both the sides need to do much more to know about each others' potential areas,” he noted. He emphasized on an improved people-to-people contacts on regular basis to add new impetus to and further invigorate existing cordial ties. He suggested that both the countries should appoint distributors of their respective famous brands in

the two countries. He also suggested joint endeavors for promoting cooperation in different fields including health, human resource development and agriculture and setting up of joint ventures in textiles and pharmaceutical sectors. Furthermore, he said, people to people contact, tourism links, exchange of business delegations, direct air link between Pakistan and Nepal and establishment of display centers in each other's countries can considerably upgrade the bilateral trade. LCCI Executive Committee Members including Shoaib Zahid Malik, Sheikh Mohammad Ayub and Ahmad Husnain also spoke on the occasion.


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Thursday, 21 June, 2012

03

news

Another twist in the tale? g

Shares rise as investors bet Fed will 'Twist' again SINGAPORE APP/REUTERS

Asian shares rose on Wednesday and the euro clung to most of the previous session's gains as investors bet that Europe's worsening debt crisis and faltering global growth will prompt major central banks to launch a new round of monetary stimulus. The U.S. Federal Reserve concludes a two-day policy meeting later, with expectations high that the central bank will extend its bond-buying programme dubbed "Operation Twist". MSCI's broadest index of Asia Pacific shares outside Japan rose 0.4 percent, while Japan's Nikkei share average climbed 0.8 percent, though U.S. stock futures pointed to a slightly weaker open on Wall Street. "The market is waiting for the outcome of the Fed meeting, and many expect some kind of easing steps," said Yutaka Miura, senior technical analyst at Mizuho Securities in Tokyo. "If they're disappointed, U.S. stocks would fall, so that risk will likely keep the market here from pushing the upside too far." The liquidity hit provided by previous doses of Fed stimulus has lifted riskier assets, and financial markets have become highly sensitive to expectations of further moves, with global equities and commodities tending to rise and the dollar coming under pressure when action is seen as increasingly likely. U.S. stocks rose around 1 percent on Tuesday, and industrial metals and the euro also gained ground.

Major Gainers

CAUTIoN: BEARS AHEAD

Bears breed on paranoid investors g

KSE shed 16 points, owing to cautious activity in blue chip stocks. For the record, the speaker opened the honey jar... KARACHI

P

STAFF REPORT

AKISTAN Stocks closed lower amid record low trades on cautious activity in blue chip stocks after verdict on speakers ruling case. This was viewed by Ahsan Mehanti, Director at Arif Habib Investments Limited. The Karachi Stock Exchange (KSE) 100-share index declined 15.81 points or 0.12 percent to close at 13,667.18 points as compared to 13,682.99 points of the previous session. The KSE 30-share index shed 17.07 points to close at 11,835.43 points as compared with 11,852.50 points. The market turnover was down to 47.417 million shares after opening at 75.992 million shares. The overall market capitalization declined 0.02 percent and traded Rs 3.488 trillion as against Rs 3.492 trillion. Losers outnumbered gainers 117 to 144, while 86 stocks were unchanged. Mehanti added that the investor awaited announcements regarding nomination of new PM and KSE 100 index traded in narrow range despite recovery in global stocks and commodities. The KMI 30share was down by 37.95 points to close at

23,667.83 points from its opening at 23,705.78 points. The KSE all-share index closed with a loss of 12.90 points to 9,625.90 points as against 9,638.80 points. Jahangir Siddiqui Company was the volume leader in the share market with 4.696 million shares as it closed at Rs 13.32 after opening at Rs 13.46. D.G.K Cement traded 3.450 million shares as it closed at Rs 40.03 after opening Rs 40.34. Hub Power Company traded 2.905 million shares as it closed at Rs 41.80 from its opening at Rs 41.99. Lotte Pakistan PTA traded 2.618 million shares and closed at Rs 7.57 as against its opening at Rs 7.35. Fauji Fertilizers Bin traded 2.389 million shares as it closed at Rs 41.11 as compared to its opening at Rs 40.93. He said that the Gas shortage for fertilizer sector, power crises for industrial sector and circular debt issues in energy sector played a catalyst role in bearish sentiments at KSE. On the future market, the turnover down by over 4 million to 4.973 million against 8.385 million shares of Tuesday. The Unilever Pakistan XD and Nestle Pakistan Limited, up Rs 39.09 and Rs 25.14, led highest price gainers while, Mithchells Fruit and Island Textile down Rs 13.29 and Rs 9.43 respectively, led the losers.

Company

Open

High

Low

Close

Change

Turnover

UniLever Pak Nestle Pakistan Ltd. Bata (Pak) Limited Siemens Pakistan Philip Morris Pak.

7260.91 4054.43 640.00 675.00 173.00

7380.00 4249.00 654.95 708.75 181.65

7200.00 4055.00 640.00 675.00 173.00

7300.00 4079.57 654.95 688.06 181.61

39.09 25.14 14.95 13.06 8.61

43 32 3,004 3,563 4,422

-13.29 -9.43 -5.06 -4.93 -3.80

1,157 140 200 500 200

Major Losers Mithchells Fruit Island Textile Pak Services Ismail Industr Shezan Inter.

ISLAMABAD: While living up to its standard, Ufone, one of the leading telecom operator in Pakistan, has introduced yet another amazing service called SMS Song Search which enables its customers to find/set any UTune of their choice via an SMS. After finding the UTune of their choice, customers can select the desired option and set it as their default UTune. Mobile communication technologies have evolved independently across continents and there is significant challenge in achieving success while introducing innovative services. Ufone customers can search for UTunes from the current library of songs by sending song name, movie name or the singer’s name to short code 6766. In reply they will receive a list of songs matching the keywords that have been sent. SMS charges to 6766 are Rs. 2+ tax/SMS whereas the browsing charges in the SMS menu are Rs.0.50+T/SMS . Time and time again Ufone has been offering unmatched packages and services that have met the changing needs of their customers. The organization has always been keen to introduce the most competitive products and services in the market.

PSo, PARCo collaborate to save $130 million dollars annually KARACHI: As part of it’s new vision, Pakistan State Oil (PSO) has embarked upon a strategy of domestic self-reliance by maximizing fuel upliftment from local refineries. This will result in multiple benefits including reduced dependency on foreign fuel imports, increased throughput of local refineries and savings of foreign exchange worth an estimated $130 Million dollars per annum.

LUMS becomes first Pakistani university to embrace ExD, SAP ERP KARACHI: Lahore University of Management Sciences (LUMS) – one of the most renowned universities in Pakistan partners with SAP and ExD Pakistan – a leading enabler of better-run businesses, to implement a robust ERP solution within its campus that will foster an improved and more collaborative environment among students, administration and faculty alike. The implementation process of SAP ERP solution at LUMS will be facilitated by Excellence Delivered. In today’s highly competitive climate, immediate access to and analysis of all operational and academic data ultimately determines the success of an educational institution. The ERP solution from SAP aims to provide LUMS administration and management with real-time access to information tailored to their individual requirements.

Khushhalibank Sports festival in Mandi Bahauddin ISLAMABAD: Khushhalibank sponsored a Sports Festival in Bhojowal village, Mandi Bahauddin. The festival consisted of an exclusive Kabaddi match, which was played between two local teams. Aimed at promoting social events through healthy sports activities among the local people and villagers, Khushhalibank Sports Festival is the first mega sports event being organised at Mandi Bahauddin by any financial institution on a large scale. The festival was attended by a large number of local residents, including young spectators, people especially from low income groups, villagers and farmers etc.

Mobilink, UNESCo launch ‘Mobile Based Literacy’ programme

NIT’s promotional kiosk from 22nd June KARACHI: NIT’s sales promotion teams are organizing informative kiosk services in major cities of Pakistan to create awareness among public about the benefits of investing in NIT funds and its tax benefits to the investors. In this connection NIT will set up three days kiosk at Expo Centre, Karachi from 22 nd to 24 th June, 2012 to brief public about the opportunities of profit by investment in NIT funds. Life Style exhibition is a permanent event of local marketing calendar, combining consumer marketing and corporate sector to provide a showcase to Pakistani products and services. Expo Centre is famous for catering thousands of visitors daily due to its locale and facilities. It is expected that hundreds of people will visit NIT kiosk for obtaining information on NIT Funds.

Jah.Sidd. Co. 13.46 D.G.K.Cement 40.34 Hub Power Company Lotte PakPTA 7.35 Fauji Fert Bin 40.93

284.13 215.70 150.00 95.05 192.00

285.79 217.62 150.00 95.07 196.10

13.75 40.75 41.99 7.69 41.80

13.25 39.91 42.15 7.20 41.02

13.32 40.03 41.65 7.57 41.11

-0.14 -0.31 41.80 0.22 0.18

4,696,749 3,450,713 -0.19 2,905,704 2,618,677 2,389,250

Interbank Rates US Dollar UK Pound Japanese Yen Euro

94.2350 148.1751 1.1928 119.6219

Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar

areas. The ‘Mobile Based Literacy’ program is an evolution of the previous ‘SMS for Literacy’ program, with the third phase of the project designed to use the mobile phone both for learning and communication between the teachers & students, as well as teachers & supervisors. In the third phase of the program 2500 students will be given basic literacy skills through by communicating with teachers through SMS based interactive lessons. As a value addition the third phase will also enable 100 participating teachers to coordinate with supervisors and report on student progress via data enabled SIMs provided by Mobilink. The current phase also extends th outreach of the program, reaching out to learners in KPK and Punjab through 100 learning centers. Jahanzeb Taj, Vice-President Marketing, Mobilink, highlighted, “ICT provides some of the most powerful methods to help us in our efforts to eradicate illiteracy in Pakistan. The Mobile Base Learning program uses the cell-phone as a learning tool and has been designed to take advantage of Mobilink’s extensive penetration amongst the Pakistani population. The earlier phases provided great results, reaching out to 1500 female students and I look forward to this program having an even greater impact in the third phase.”

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94.80 119.23 147.73 1.1774 91.81 12.03 25.62 25.12 95.36

95.50 120.63 149.44 1.1909 93.38 12.20 25.89 25.36 97.91

TCP imports 80,000 tonne urea ISLAMABAD ONLINE

At least two consignments of Urea, having volume around 80 thousands Ton arrived at Pakistan’s seaports on Tuesday. The Trading Corporation of Pakistan (TCP) has imported these consignments to bridge the supply-demand gap in the domestic market of Pakistan while the consignments arrived at Gwadar and Karachi. Meanwhile, the TCP is exporting the urea to the country after receiving a $100 million credit facility extended by the Saudi Fund for Development as the Federal cabinet of Pakistan directed the TCP to import .3 million ton urea into Pakistan.

Moody’s cook Turkey ANKARA APP/AFP

PTCL brings free wi-fi modem for its broadband customers ISLAMABAD: As another first by Pakistan Telecommunication Company Limited (PTCL), the telecom giant now brings free wi-fi modems for its valued customers with every new Broadband connection. This incredible new offer allows PTCL landline customers to avail free wi-fi modem by ordering a PTCL Broadband Pakistan Internet connection. These free wi-fi modems will be provided without any monthly recurring charges to new customers of all packages, excluding 256Kbps and 1Mbps Student Package. All existing wired modem subscribers of 1Mbps regular and above will be charged Rs.750 as modem up-gradation charges on opt-in basis. PTCL believes in facilitating its customers every step of the way. The ever increasing proliferation of wi-fi enabled tabs, mobile phones and gadgets makes it essential to have a wi-fi modem for connectivity needs, so PTCL is now offering wi-fi modems to its Broadband customers instead of the regular wired modem.

Emirates carries new friends for children LAHORE: Mobilink has partnered with UNESCO to launch the third phase of the ‘Mobile Based Literacy’ program - A broad based initiative continuing since the year 2009. The program is a unique initiative that utilizes mobile technology to improve literacy for female students, aged 15 to 25 years, in rural and deprived

290.00 233.73 150.00 96.00 199.90

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CORPORATE CORNER Ufone customers can now find and set their favourite UTunes with ‘SMS Song Search’

299.08 227.05 155.06 100.00 199.90

KARACHI: Emirates, one of the world’s fastestgrowing international airlines, has introduced a collection of onboard toys for children which is set to launch on June 25, 2012. These young globalistas can now enjoy the company of new travel companions which have two ranges of toys aimed at pre-school and older children, the travel experience has been further refined by Emirates to enable young passengers to have an entertaining, memorable journey.

Moody's on Wednesday hiked Turkey's credit rating by one notch from 'Ba2' to 'Ba1' with a positive outlook on improved government finances and ability to withstand economic shocks. It said the main reason for upgrade was "the significant improvement in Turkey's public finances and the resulting increased shock-absorption capacity of the government's balance sheet". Moody's said Turkey's government had also taken steps that could help address the country's large current account deficit "which is the largest credit risk facing the country". The Ba1 rating leaves Turkey just below investment grade, which Moody's said it would likely receive if the country becomes more resilient to balance-of-payments shocks.

No energy, no tractors ISLAMABAD ONLINE

The deteriorating energy crisis has significantly dropped the local tractor production as in the first nine months (July-March) of current financial year 2011-12 tractors production declined to 27,131 unites against 70,855 during 2010-11. According to an official, there are quality concerns with regard to locally manufactured machinery while high price for imported ones has restricted its use and for this purpose concerted efforts would be required, from both public as well privet sector, to popularize the agricultural machinery in Pakistan.


profitepaper pakistantoday 21st june, 2012