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PRO 22-01-2013_Layout 1 1/22/2013 12:13 AM Page 1

Tuesday, 22 January, 2013

Amidst LoC tensions, PM asks Fahim to ditch Indian visit ISLAMABAD ONLINE

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n the wake of tension between Indian and Pakistan, Minister Commerce Makhdoom Ameen Fahim has called off a scheduled visit to India to attend a business conference on direction of Prime Minister Raja Pervez Ashraf, media quoting officials said on Monday. According to reports quoting officials in commerce ministry in Islamabad, Prime Minister Raja Pervez Ashraf was in the loop

LCCI for macroeconomic reforms, policy changes LAHORE ONLINE

The Lahore Chamber of Commerce and Industry Monday called for macroeconomic reforms and policy changes in consultation with stakeholders for a sustainable economic recovery. In a statement issued here after IMF decision that it will not write-off or reschedule Pakistan’s loan, the LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh and Vice President Mian Abuzar Shad said that the government would have to reorganise the power sector, restructure public sector businesses and reduce trade deficit to overcome economic woes. The LCCI office-bearers also stressed the need for a mechanism to ensure in letter and spirit implementation of economic policy decisions in the larger interests of the stakeholders. “Since gas and electricity shortage is mother of all economic ills, therefore, a focused attention to stop pilferage and allocate more revenues to overcome circular debt issue is needed. The power sector infrastructure should be upgraded as without doing so there will be little improvement even if major new generation facilities are built. The government-owned power generation companies should be technologically refurbished as it could close the demand-supply gap by 1500 MW.”

about the decision to call off Mr. Fahim’s visit. Officials said Prime Minister Raja Pervez Ashraf directed the minister not to visit India in current tense situation between two countries as Pakistani players and artists have been threatened and expelled from India. The decision was linked to the spike in tensions between India and Pakistan over a string of clashes along the LoC in Jammu and Kashmir that left three Pakistani soldiers dead, while India claimed that two of its soldiers were killed. Fahim and Secretary Commerce Munir Qureshi were scheduled to visit India during January 27-29 to participate in a Partnership Summit being organised in Agra. Ameen Fahim was invited to the meet by his Indian coun-

Bilateral trade to mutually benefit India, Pak: Baig ISLAMABAD: Advisor to Prime Minister on Textile Mirza Ikhtiar Baig has said that the bilateral trade between Pakistan and India would be mutually beneficial, therefore the two countries were focusing on steps to increase its volume. Talking to Pakistan television, he said that the trade between India and Pakistan would be enhanced in future, which would be a win-win situation for both the countries. He said that efforts were being made to improve the trade with regional countries and the South Asia was the best place for investment purpose. He said, “We have the best example of regional block like SAFTA (South Asian Free Trade Association) and European Union (EU), which are considered the strong economic blocks to boost each other’s economies through mutual free trade facilities”. He said that regional trade would be successful with China and India being the big trade partners. Replying to a question, he said that the tense Pak-India relations should not affect the trade between the two countries. APP terpart Anand Sharma. In recent weeks, differences had emerged between Fahim and Foreign Minister Hina Rabbani Khar over the issue of giving Most Favoured nation-status to India. Media reports have said that Khar had held Fahim responsible for the delay

in giving MFn-status to India. Pakistan missed the December 31 deadline for phasing out a negative list regime for trade and giving MFn-status to India. Ameen Fahim subsequently said the process had been delayed.

IMF advice recipe to bail out economy from mess ISLAMABAD ONLINE

The Islamabad Women’s Chamber of Commerce and Industry (IWCCI) said on Monday IMF’s lack of trust and persistence to accelerate the pace of economic reforms in exchange for further financing calls for immediate bold decisions to save country from economic collapse. The President of IWCCI Faridia Rashid said that the foreign lender had made loans conditional to transformation in existing policies including realistic revenue goals, fixing the issues of power and other public sector organisations, eliminating untargeted subsidies, revamping tax regime, improving bureaucracy, and reducing the budget deficit. The IMF demands were not new but this time these must be taken seriously to ensure rescue loans as currency was depreciating and the very survival of country was on the stake, she added. Farida Rashid said that IMF’s frustration over Pakistan’s failed commitments could have far-reaching impact

on the future of the country, as government will not be able to use the lender’s money to support dwindling reserves, which will invite a disaster soon. This was high time for government to take tough and unpopular decisions to save the country from economic col-

lapse and ensure sustainable economic recovery. The unfair and oppressive tax structure should be overhauled without wasting time. Farida said that our tax system was promoting inequality damaging country’s growth and blocking access of masses to economic opportunities; it had contributed to worsening inequality due to reluctance of the government to impose tax on rich, bring exempted and influential into the tax net. She said that reforms have become imperative as complex tax system was failing to support government expenditures, development initiatives and it redistributes a small amount of money while doing little to slow the wealth polarisation. However, Farida Rashid said that tax was imposed on rich to benefit poor but in our country it is other way around due to non-transparent postings in the FBR by the political class. Proper taxation on agricultural income, real estate, brokers and retail sectors can resolve most of the problems country was facing if FBR was given freedom from political influence.

Acumen Fund and JS launch Pakistan Fellows Programme ISLAMABAD APP

The Acumen Fund and JS have launched Pakistan Fellows Programme aiming to develop the social change leaders of next generation who are building innovative businesses and strong institutions across the country. The Acumen Fund, a pioneering nonprofit global venture firm addressing poverty across Africa and in South Asia, hosted an event on Sunday to introduce the first class of Acumen Pakistan Fellows, said a statement issued here on Monday. In partnership with JS Bank, the Mahvash & Jahangir Siddiqui Foundation and the Edmond de Rothschild Foundations, Acumen was working to develop the next generation of social change leaders who were building innovative businesses and strong institutions

across Pakistan. Twenty individuals have been selected out of over 500 candidates to participate in this year-long training, while simultaneously continuing to pursue their social impact initiatives. Fellows’ initiatives range from creating an interest-free microfinance institution, to a disaster relief project and to a teaching training programme. In addition to a presentation given by the newly selected Pakistan Fellows, the launch event featured remarks by Jacqueline novogratz, Founder & CEO of Acumen Fund, and Edmond de Rothschild Foundations Executive Director Firoz Ladak. “Pakistan today faces many challenges, and we need new leaders who are dedicated to creating a better future for this country,” said Acumen Fund Pakistan Country Director Farrukh Khan. “It is exciting to help develop a community of leaders with the financial skills,

Ministry rejects APCNGA’s claims about LPG Air Mix projects

operational excellence and moral imagination to address pressing social issues and we’re humbled by the support and interest we’ve received from our partners and local community.” “The depth and breadth of talent in the applicant pool size is evidence that the people of this nation want to seek ways to improve the prevailing conditions and challenge the existing status quo,” stated Mahvash & Jahangir Siddiqui Foundation CEO Ali J. Siddiqui, “With this inaugural class of bright and ambitious individuals, we are creating a brighter future of this country by providing the tools and the knowledge required to develop a new generation of Pakistani leaders.” The Pakistan Fellows programme was just one part of Acumen’s investment in leadership and community of the Acumen Fund alumni network. The East Africa Regional Fellows

Program was in its second year and just selected its fellows for 2013. Acumen intends to launch similar Regional Fellows Programs in India and West Africa in the coming years. Additionally, Acumen Fund had invested over $ 7 million in Pakistan since 2001, focusing on a wide range of sustainable, scalable businesses-in agriculture, housing, health, water and energy-that use market-based approaches to deliver products and services to millions of rural and urban poor. Recent additions to Acumen Fund Pakistan’s portfolio include the nRSP (national Rural Support Program) Microfinance Bank, which was the first agency in Pakistan to provide financial services to rural agricultural markets, and Pharmagen Healthcare Ltd, which supplies safe, clean, and affordable drinking water to low-income residents in Lahore.

KARACHI PR

The LPG Air Mix projects have been approved by the ECC after a period of due diligence and strict adherence to all Government including PPRA rules over a period of twelve months. These projects are necessary to be able to bring an additional 100 MMCFD of natural Gas equivalent within the shortest possible time and from assets that already exist within the public sector. This project is part of a quick short term solution that has been developed by the Ministry with the help of the natural Gas utilities and other energy experts. How can the APCnGA support this loss figure of Rs 60 billion? It is patently incorrect and only being articulated to create a false impression and agitation in the mind of the readers. Lack of natural Gas had led to the unemployment of nearly 4 million people in the Sialkot/ Faisalabad and Lahore areas. The desire of the APCnGA to not increase natural Gas and LPG Air Mix as a substitute fuel was paradoxical. The cost of LPG Air Mix will be applied to industry only and will not affect the domestic consumer thereby not impacting the price of ‘roti’. Mr. Paracha was bordering on defamation and statements issued with a malafide agenda. This additional fuel will be supplied by the nG utilities which were regulated by the OGRA and totally operate in the public interest and were owned by the public sector. The LPG Air Mix projects have been operating in Pakistan since the early 1970’s when it was a global pioneer by setting up these alternative fuel projects in Quetta and Larkana. SSGC was providing a clean natural Gas alternative to Gwadar, nushki, Kot Ghulam Mohammed and Suhrab. The proposed large LPG Air Mix plants at Karachi bin Qasim can deliver an additional 100 mmscfd within six months. In addition to the mentioned LPG Air Mix projects, there were well over 3 dozen LPG Air Mix projects that have been operating in the private sector in Pakistan for the past eight years. This clearly refutes Mr. Peracha’s contention that LPG Air Mix projects will put people out of work. To the contrary, the injection of LPG Air Mix in the system will create more employment opportunities as the currently natural Gas starved industry will have a constant supply of fuel available ensuring enhanced productivity, leading to greater exports, improved tax revenues and generation of foreign exchange. These projects have been developed by people who understand the energy sector and have several decades of experience. Mr. Peracha was clearly misinformed and building an entire argument based on an incorrect understanding of the project and technology. The LPG Air Mix solution was an elegant means of delivering a fuel to increase supply of natural Gas as it requires no transportation by road but provides a natural Gas alternative in Karachi through the existing pipeline network. The LPG can be easily imported into Karachi as an alternative fuel for SSGC while Punjab can get the additional 100 MMCFD natural Gas through SnGPL for its industry through swap arrangement.


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Business 02

Tuesday, 22 January, 2013

Level playing field for Pakistani kinnow in Indonesia demanded ISLAMABAD: Indonesia has enjoyed free access to the Pakistan market for many items, including palm oil, for the past six years and part of the Preferential Trade Agreement (PTA) signed by two countries recently, We expect the same unhindered market access for kinnow export, said Harvest Tradings CEO Ahmad Jawad. However, he said, as of last month, Indonesian importers were being issued with monthly quotas to control volumes of Pakistani kinnow shipments that could be brought into the country which was not accepted at all. Pakistani fresh produce industry also concerns over the barring of entry of our products to the Port of Jakarta. The closure of the port to fresh produce shipments was hotly debated last year when it was announced that all exports would have to enter via other ports. negotiations have since taken place and this port was opened again to Australia and US oranges, but not for Pakistan. This means that all Pakistani produce exports to the country must instead go via Surabaya City, Indonesia from where it was shipped over land at an additional cost of $2500; said Jawad. On the other hand issue regarding General Rate Increase (GRI) $ 1500 on perishable shipments from the shipping lines was not solved in our country. Shipping experts mentioned that there was no plausible reason for an increase as there was neither any congestion at the Karachi Port and Port Qasim nor there was any choking of containers. INP

SBP likely to miss Rs315b farm loans target, thanks to bad-performing specialised banks KARACHI

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ISMAIL DILAWAR

HE banks are unlikely to achieve the Rs 315 billion agriculture disbursement target set by the central bank for the current fiscal year.

While the first half of FY13 saw the commercial banks doing well their counterparts in the specialised banks, particularly the Zarai Taraqiati Bank Limited (ZTBL), have seen their lending to the farmers contracting by 7 to 8 percent. The State Bank of Pakistan (SBP) Monday reported that the banks’ disbursement of agriculture loan during July-December FY2012-13 showed an increase of 12 percent or over Rs 15.11 billion on year-on-year (YoY) basis. The regulator said during the period under review the banks were able to extend farm loans worth Rs 140.32 billion to the agriculturists as compared to Rs 125.21 billion they had disbursed during the corresponding months of FY12. The amount disbursed during the first half shows that the banks, specially the bad-performing specialised ones, were legging far behind the tentative target set by the State Bank for FY13. “It may be pointed out that the State Bank has provisionally set an indicative agricultural credit disbursement target of Rs 315 billion to banks for the current fiscal year,” said the SBP. Supposedly, if the banks lend an amount equal to the farmers during the second half the volume of total agriculture loans disbursed would stand somewhere around Rs 281 billion,

still down by Rs 34 billion from the targeted Rs 315 billion. This possibility turns more likely when it comes to the specialised banks whose disbursement during the first half moved southward. According to central bank, the country’s largest specialised bank, ZTBL, could manage to disburse Rs 19.28 billion during the review period. The amount showed a decline of 8.39 percent when compared with Rs 21.04 billion the bank disbursed during the same period of last fiscal year. The Punjab Provincial Co-operative Bank Limited (PPCBL) also disbursed 7.02 percent less, Rs 3.59 billion, than Rs 3.87 billion it had lent in FY12. However, the overall credit disbursement by the five major commercial banks, including Allied Bank, Habib Bank, MCB Bank, national Bank of Pakistan and United Bank, were encouraging and stood at Rs 76.04 billion. Last year these banks were able to extend farm loan worth Rs 70.56 billion to the farmers. This registers a growth of Rs 5.47 billion or 7.76 percent YoY. The 14 domestic private banks also loaned a combined amount of Rs 33.16 billion in July-December, 2012 up by 36.84 percent as compared with Rs 24.23 billion disbursed in the same period of the last fiscal year. The five microfinance banks, including Khushhali Bank, nRSP Microfinance Bank, The First Microfinance Bank, Pak Oman Microfinance Bank and Tameer Microfinance Bank disbursed Rs 8.25 billion compared to Rs 5.50 billion they had lent during last year.

Major Gainers OpEn COMpAnY Bata (Pak) 1230.00 MithchellsFruit SPOT380.00 Indus Dyeing 638.99 Philip Morris Pak. 114.33 Service Industries 168.00

HIGH 1250.00 395.00 649.99 120.04 176.40

LOw 1250.00 390.00 649.99 119.75 168.00

CLOSE 1250.00 395.00 649.99 120.04 173.02

CHAnGE 20.00 15.00 11.00 5.71 5.02

TURnOVER 50 2,300 100 2,800 46,800

3555.00 4000.00 9900.00 4505.00 600.00

3515.00 4000.00 9900.00 4505.00 590.00

3515.00 4000.00 9900.00 4505.00 590.51

-185.00 -178.00 -69.67 -45.00 -9.49

7,180 20 40 500 25,900

16.10 7.49 14.15 15.85 10.05

15.62 7.26 13.68 15.21 9.10

15.92 7.30 13.90 15.30 9.99

0.28 -0.07 -0.08 -0.40 0.94

16,118,000 13,585,500 8,716,000 8,601,500 7,005,500

Major Losers Rafhan Maize Prod. Unilever Food UniLever Pak Nestle Pakistan Ltd. Millat Tractors Ltd.

3700.00 4178.00 9969.67 4550.00 600.00

Volume Leaders Maple Leaf Cement Fauji Cement Byco Petroleum Jah.Sidd. Co. JS Growth Fund

15.64 7.37 13.98 15.70 9.05

Interbank Rates US Dollar UK Pound Japanese Yen Euro

97.7212 155.2496 1.0920 130.1646

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

BUY

SELL

98.70 130.45 155.52 1.0894 98.31 12.47 26.75 26.20 102.65

99.40 132.17 157.51 1.1028 100.21 12.74 27.05 26.49 105.46

CORPORATE CORNER

ISLAMABAD: PIA Chairman Lt Gen (r) Asif Yasin Malik presides over the 346th PIA Board of Directors meeting at the PIA office in Islamabad. PIA Managing Director Muhammad Junaid Yunus was also present at the meeting. PR

Pakistan Steel CIO Major General Muhammad Javed addressing a gathering on Youm-e-Hussain. PR

Barclays and Virgin Atlantic offer a ‘home away from home’ experience

Samsung introduces GALAXY S-III Mini smartphone

Kashf Microfinance Bank, tie organize session with Rupert Scofield

KARACHI: Samsung Electronics Co., Ltd, a global leader in digital media and digital convergence technologies, has introduced its latest smartphone – the GALAXY SIII Mini. It is a compact version of Samsung’s flagship smartphone GALAXY S III. The intelligent device combines high performance with intuitive ease-of-use and a nature-inspired design. It runs on a robust 1 GHz Dual Core Processor with 1 GB RAM and offers a 4.0 inch WVGA Super AMOLED display screen, with a 5 Mega Pixel camera with LED flash and a VGA front camera. The Android 4.1 Jelly Bean Operating System has fast and fluid graphics. It features “Google now” - to bring you the right information, before you even ask. This compact smartphone understands your gestures for easier usage. The “Smart Stay” function tracks your eyes and keeps the screen lit as long as you are looking at it. “Direct Call” enables you to automatically dial a specified call. With “Smart Alert” you know your missed calls as soon as you pick up your phone. Other smart features also include the ‘Pop Up Play’ which allows you to play a video anywhere on your screen, while simultaneously running other tasks. The ‘S Voice’ is a natural language user interface that listens and responds to your words, besides allowing information search and powerful control functions. PRESS RELEASE

KARACHI: Kashf Microfinance Bank along with TiE, Lahore Chapter organised an interactive session with Rupert Scofield President and Co-founder of FInCA International; an Agricultural Economist with over 40 years of experience in the developing countries of Africa, Latin America, Eurasia and Middle East. During the session, he shared some very interesting insights from his early years as a young entrepreneur to building and sustaining a wide network of institutions across different continents. He welcomed the opportunity to address a large gathering of professionals from the business community, banking, education and other sectors, and shared his plans to develop the microfinance sector in Pakistan with Kashf Microfinance Bank Limited. PRESS RELEASE

KARACHI: Gerry’s International, GSA of Virgin Atlantic, Pakistan [“Virgin Atlantic”] and Barclays Bank Pakistan [“BBP”] has joined forces to offer customers a wider range of experiences of lavish traveling. The unique partnership will provide passengers exclusive travel offers and solutions. Signing ceremony was held recently at Barclays Bank’s Head office in Karachi. Gerrys International Group Director Arshad Wali Muhammad and BBP CEO, Shazad Dada were present at the ceremony along with their respective teams. Speaking at the occasion, Shazad Dada said, “Apart from providing customers with an exclusive contemporary space, the partnership will meet the changing needs and expectations of both business and leisure travelers and better integrate the ground and air travel experience. The partnership with Gerry’s International, GSA of Virgin Atlantic will allow us to reach a truly global audience every day.” Gerry’s International Group Director Arshad Wali Muhammad shared his thoughts with the team and said, “We are delighted to be partnering with a brand like Barclays, enabling us to cater the right clientele. Providing various solutions to our traveler, we will set benchmark for the industry to follow.” PRESS RELEASE

LG to lead OLED and Ultra HD TV markets KARACHI: Speaking at the International Consumer Electronics Show in Las Vegas,

Havis Kwon, President and CEO of the LG Electronics’ Home Entertainment Company, outlined the company’s vision for the upcoming year and expressed confidence in LG’s ability to lead the next generation TV market. “2013 is an important year because for LG, it marks the beginning of a new TV era,” said Mr. Kwon. “With game-changing products such as the OLED TV and Ultra HD TV, we are in a strong position strategically to lead the industry. Delivery of our Ultra HD TV well before the competition and the imminent release of our OLED TV in the first quarter of 2013 will give us a head start in a market where speed is a critical component of success.” Seizing the Advantage with Global Rollout of OLED TV In order to gain an early foothold in the OLED TV market, Mr. Kwon said LG will launch its 55-inch OLED TV in north America, Central and South America, Europe and Asia in the first quarter of 2013. The company will increase R&D and investment in OLED TV technology and marketing to ensure that consumers see a strong link between OLED and LG. PRESS RELEASE

KARACHI: Masood Hashmi, president Marketing Association of Pakistan, presents a memento to Dr Graham Simpson, Chief Medical Officer /Eternity Medicine Institute, who was the guest speaker at MAP Tea Meeting on the topic of Preventing Health. Also seen in the picture are Talib Syed Karim, Honorary Secretary MAP and Dr Zubair Mirza. PR


profitepaper pakistantoday 22nd January, 2013