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Thursday, 25 October, 2012
Another IMF programme in the offing g
Finance sect likely to get six month extension ISLAMABAD
EDERAL Secretary Finance Abdul Wajid Rana is likely to get six month extension in its service as the government may have to negotiate another loan programme with the International Monetary Fund(IMF) this fiscal year. According to sources during current financial year 2012-13 the government is likely to negotiate a fresh loan programme with the Fund to ensure smooth repayment of the remaining installments to the IMF and for this purpose the finance ministry has sent a summery to the Prime Minister seeking six months extension in the service of federal secretary finance who will reach at the age of superannuation on November 6 next month. “The Finance minister Dr.Abdul Hafeez Sheikh does not want to change economic team at the highest level because of expected talks for another loan programme with IMF,”sources said, adding that any change in the fi-
SBP sets up centre for smooth functioning of ATMs KARACHI
nance team at this stage will create troubles to execute fresh loan talks with the fund. According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7 billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco. Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011. Secretary Finance Abdul Wajid Rana and spokesman of the ministry Rana Asad Amin could not be contacted immediately for their comments despite repeated attempts made to have their version on the issue.
Brazil for improving trade ties with Pakistan ISLAMABAD
The State Bank of Pakistan Banking Services Corporation (SBP BSC) North Nazimabad, Karachi, has set up Customer Facilitation Centre to ensure smooth and uninterrupted functioning of Automated Teller Machines (ATMs) of commercial banks in the District Central, Karachi, especially during Eidul Azha holidays. A statement on Wednesday said that this Customer Facilitation Centre will operational from 9:00 a.m to 5:30 p.m on all working days, and will receive complaints from the general public regarding non-functioning of ATMs in the District Central, Karachi, and make them working within the shortest possible time. This Facilitation Centre will also be operational from 9:00 a.m to 5:30 p.m. during Eid-ul-Azha holidays. The members of the general public are advised to lodge their complaints pertaining to the non-functioning of ATMs in the District Central, Karachi, from 9:00 a.m to 5:30 p.m during all working days and Eidul Azha holidays.
Promotion of commercial and economic ties between Pakistan and Brazil would boost bilateral relations as Embassy of Brazil intended to help Pakistan in doing business with Brazil. This was stated by Alfredo Leoni, Ambassador of Brazil to Pakistan who was talking to the business community here at Islamabad Chamber of Commerce & Industry (ICCI). He also Congratulated Zafar Bakhtawari on his appointment as President of ICCI and expressed hope that he would help built relations with the diplomatic community to enhance Pakistan’s trade and economic relations with countries around the globe. He proposed that Pakistan could share experiences of Brazilian success story in the areas of economy and development achieved through the implementation of “Real Plan” which was introduced in 1994, in order to control inflation and stabilize the economy.
1Q cement export posts 42.35% growth
The Ambassador said that Brazil is the sixth largest economy as well as eighth biggest consumer market of the world, adding that Brazil is the largest commercial partner of Pakistan in Latin America but bilateral trade was about US$300 million which needs to be enhanced as Brazil is the major investment hub and also a gateway to South America. He said that Pakistan’s private sector should come forward in tapping the multiple opportunities of mutual trade between Brazil and Pakistan. He assured the audience that there was plenty of room for investment in Brazil as it is a very strong and reliable economy. Those Pakistani businessmen who are interested in doing business with Brazilian partners must register themselves on braziltradenet.gov.br and become a member and a player of the biggest database available in Brazil involving international trading companies, market studies and information on fairs, Brazilian companies and trade offers.
In his welcome address, Zafar Bakhtawari, President ICCI lauded the devoted efforts of Mr. Alfredo Leoni for playing a dynamic role in further strengthening bilateral relations in all areas between Pakistan and Brazil. The ICCI President said that we should concentrate on the existing opportunities and suggested that cooperation can be enhanced in the agriculture, energy and pharmaceutical sectors. He said that visit of business delegations should also be encouraged to explore markets. In this connection, he invited business delegations from Brazil for meeting with the Pakistani counterparts. Bakhtawari said that we should learn from Brazilian economic plan as they have turned their economy from negative growth indicators into positive economic growth. He called on the Brazilian business community to take advantage of vast Pakistani market and investment opportunities in agriculture, construction, livestock and dairy, energy, education, IT and Halal industry sectors.
The cement export from the country during the first quarter of current financial year registered growth of 42.35 percent as compared to the same period of last year. According the data of Pakistan Bureau of Statistics (PBS), the export of cement increased in dollar terms while the quantum export remain on down track. During the period from July-September 2012, about 1,899,791 metric tons cement worth US$ 146.321 million exported which was up by 42.35 percent as compared to the same period of last year. Meanwhile. the export of cement during the first quarter of last financial year was recorded at 2,158,429 metric tons worth US$ 112.033 million, the data revealed. However, other commodities including gems, jewellery, furniture, molasses and handicraft remained on green track and posted positive growth respectively during the period under review. The data revealed that gems export increased by 69.64 percent, Jewellery by 383.64 percent and furniture export by 1.92 percent respectively during the first quarter of current financial year. The country exported about 4 metric tons of gems worth US$ 1.05 million and jewellery of US$ 740.4 million by the end of first quarter of financial year 2012-13 as compared to the same period of last year. During the period from July-September 2012, furniture valuing US$ 1.683 million exported as compared with the export of US$ 1.80 million of same period last financial year, it added. During the first quarter, country earned US$ 0.138 million by exporting about 2,323 metric tons of molasses which was recorded at 2,025 metric tons of US$ 0.247 million, the data revealed. The export of gur and gur products increased by 86.93 percent in first three months as about 8,400 metric ton gur and its products valuing US$ 37.56 million exported as compared to the 7,937 metric tons worth US$ 21.89 million during the same period of last financial year, it added.
Give us some power! g
President urges US businessmen to invest in power sector ISLAMABAD ONLINE
President Asif Ali Zardari has urged the US businessmen to invest in power sector in Pakistan. He was talking to a delegation of a US power company DACC Global in Islamabad on Wednesday. The delegation headed by Doug Melvin, President DACC Global, comprised of Arnd Spinger, Joseph Steinfeldt, Mark Lohoff, Adnan Hameed, Zafar Ahmed and Nasir Waseem. Spokesperson to the President Senator Farhatullah Babar, Chairman Intellectual Property Organization of Pakistan Mr. Hameedullah Jan Afridi, Secretary to President Maj (R) Haroon Rashid, Secretary Water & Power Ms. Nargis Sethi, CEO Alter-
native Energy Development Board Mr. Arif Allauddin and other senior officials were also present during the meeting. Spokesperson to the President Senator Farhatullah Babar while briefing about the meeting said that DACC Solar Power Generation Company (DPGC) is pursuing development of a 50 MW Solar power project in Punjab, production of bio-fuel and installation of solar water pumps in the country. He said that the President while welcoming the delegation appreciated their interest and investment in the alternate energy sector. The President highlighted huge investment opportunities available in the country in the alternate energy sector and said that abundant sunshine and wind corridors offered great opportunities to the in-
vestors for harnessing this clean and efficient source of energy. The President said that energy shortage has been one of the major challenges faced by the country at present. He said that the Government was according highest priority to facilitating the investors undertaking business ventures in this sector. He said that the Government was committed to promote the alternate means of energy production so as to reduce dependency on conventional modes and simultaneously to save the environment from further degradation due to burning of the fossil fuels. The President also recounted various incentives being offered to foreign investors in the energy sector. He said that Pakistan offered 17 percent return on Investment (ROI) for renewable energy projects
which is one of the highest in the world. He said that NEPRA was working on up-front Tariff for Solar Power projects which will further incentivize setting up of solar power plants in the country. The President also mentioned special control rooms in the Ministry of Water and Power and various offices of power distribution companies for monitoring and coordination purposes. He said that all efforts were being undertaken to avoid bureaucratic delays and to address the issues related to supply and distribution of power on spot basis. The President assured the company of all possible facilitation in its business ventures in Pakistan. He also expressed the hope that the company will construct more solar projects in other parts of the country too, which will greatly help in meeting the energy demand of the country.
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Business 02 Eurozone business slump accelerates: Markit BRUSSELS
Bears take over Lahore g
LSE down 43.55 points
Eurozone private sector business activity slumped deeper into the mire in October, falling at its fastest rate since June 2009 to 40-month lows, a closely watched survey showed Wednesday. The Composite Purchasing Managers Index (PMI), a survey of 5,000 eurozone businesses compiled by the Markit research firm, fell to 45.8 points in October from 46.1 in September. The index is a leading indicator, and any reading below 50 indicates a contraction in activity, with the eurozone getting off to a bad start for the fourth quarter as the debt crisis continues to undermine growth and jobs. The preliminary data showed the Services sector PMI at 46.2 points in October, edging up from 46.1 in September while the Manufacturing sector fell very sharply to 45.3 from 46.1. Markit said activity had fallen continually since September 2011 with the exception of a marginal increase in January.
ACCI for converting fertiliser plants on coal ISLAMABAD: Attock Chamber of Commerce and Industry (ACCI) on Wednesday stressed the need for converting fertiliser plants on coal to help mitigate gas loadshedding in the country. If fertiliser sector is converted on coal ash, this will help reduce the gas problems, Former President ACCI, Tariq Mehmood said while addressing an energy conference. He said that China is catering 70 per cent of fertiliser demand by producing the commodity through coal ash, similarly, America is producing 15 per cent of fertiliser from coal ash, India 26 per cent and Australia 18 per cent. He was of the view that converting fertiliser plants on coal based fuel will also create two hundred thousand jobs, save foreign exchange wasted on import of urea, put an end to gas and CNG loadshedding and save by reducing fossil fuel imports. APP
UniLever Pak Mithchells Fruit National FoodsXD Atlas Battery Ltd. Service Industries
THE euro was under pressure in Asia Wednesday as markets fretted over whether debt-ridden Spain would seek a full bailout, while a credit downgrade of five of the country’s regions also weighed on the unit. The single currency bought $1.2977 and 103.61 yen in Tokyo morning trade, down from $1.2978 and 103.64 yen in New York late Tuesday and well off the levels above $1.30 and 104 yen seen earlier this week. The dollar was flat at
OPEN 1419.33 497.61 315.00 272.01 235.62
HIGH 1475.00 519.00 330.75 285.61 247.40
LOW 1460.00 493.00 330.00 279.00 242.50
CLOSE CHANGE 1460.00 40.67 513.71 16.10 330.75 15.75 285.61 13.60 247.40 11.78
TURNOVER 100 95,000 600 900 67,500
9709.20 391.95 341.87 247.24 179.00
9760.00 372.50 332.00 240.70 181.50
9225.00 372.36 324.78 234.88 170.05
9498.04 372.36 324.78 234.94 170.05
-211.16 -19.59 -17.09 -12.30 -8.95
560 200 5,000 5,300 39,600
3.61 19.15 52.73 24.85 14.88
2.87 18.49 51.56 23.65 14.28
2.98 18.57 52.30 24.83 14.38
-0.54 -0.63 0.53 1.16 -0.11
28,136,000 11,539,500 8,783,500 8,103,500 7,029,500
Volume Leaders Pace (Pak) Ltd. P.T.C.L.A D.G.K.CementXD Fatima Fertilizer Co Jah.Sidd. Co.
3.52 19.20 51.77 23.67 14.49
The Volume Leader of the day included Silk Bank Limited (Saudi) with 346,500 shares, NIB Bank Limited with 273,500 shares and Fatima Fertilizer Company Limited with 137,500 shares.
Euro under pressure in Asia on Spain worries AFP
COMPANY Bata (Pak) Limited Millat TractorsXD Island TextileXD Sanofi-Aventis Pak Clariant Pak
EARISH trend prevailed in Lahore Stock Exchange on Wednesday as it shed 43.55 points, following the LSE-25 index opened with 4015.96 and closed at 3972.41 points. The market’s overall situation, however, corresponded to an upward trend as it remained at 1.578 million shares to close against previous turnover of 1.547 million shares, showing an upward move of 30,500 shares. While, out of the total 114 active scrips 24 moved up, 24 shed values and 66 remined equal. Oil and Gas Development Company Limited, Atlas Insurance Limited and Muslim Commercial Bank Limited were Major Gainer of the day by recording increase in their per share value by Rs 2.02, Rs 1.80 and Rs 1.75 respectively. Attock Refinery Limited, Pakistan Petroleum Limited and Nishat Mills Limited lost their per share value by Rs 3.73, Rs 1.51 and Rs 1.35 respectively.
79.83 yen against 79.84 yen, after briefly topping 80 yen in Asian trade on Tuesday — the first time since early July. Dealers are increasingly concerned Madrid has yet to ask for a rescue, despite the poor state of its economy, while Moody’s cut the ratings of five regions, citing their weak financial positions and looming debt redemptions. A large-scale Spanish bailout would enable the European Central Bank to launch a 500-billion-euro bond-buying programme aimed at helping debt-stricken eurozone mem-
bers contain their soaring borrowing costs. Madrid has already accepted a 100-billion-euro rescue for its stricken banks. “The market is jittery as it doesn’t know when Spain will ask for a bailout,” said Daisaku Ueno, senior foreign exchange and fixed income strategist at Mitsubishi UFJ Morgan Stanley. Spain, the eurozone’s fourth-largest economy, is entering a second year of recession, according to the nation’s central bank, as its leaders struggle to curb a bloated public deficit.
US Dollar UK Pound Japanese Yen Euro
95.7606 153.1212 1.2003 123.9142
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
95.00 122.08 151.03 1.1770 94.56 12.06 25.72 25.12 97.14
95.60 123.85 153.17 1.1936 96.41 12.28 26.06 25.42 99.97
Over 2800 companies benefit from SECP’s amnesty schemes ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has received healthy response to its amnesty schemes of Companies Regularization Scheme (CRS) and Company Easy Exit Scheme (CEES). According to official handout issued here on Wednesday over 2800 companies have either filed their overdue returns through CRS or have applied for an easy exit route. Consequently, the compliance rate has witnessed a positive trend.Out of total applicants, 1887 companies have applied for CRS, filing their overdue statutory returns and annual accounts without the fear adjudication. It said the remaining, 991 companies benefited from the easy exit scheme, which allows the companies having no assets or liabilities and not doing any business to avail themselves of the exit facility without undergoing the cumbersome winding up procedure. This scheme is applicable to private and public unlisted companies. ONLINE
CORPORATE CORNER Nokia Lumia 510 brings Windows Phone to lower price points
KARACHI: S Masood Hashmi, CEO Orientm McCann Pakistan & Khawaja Mohammad Almas, Group Chief, CRBG Allied Bank Limited opening up accounts in each other’s hearts by signing an Agency-Client Agreement. Also present at the occasion were Mr. Sohail, from ABL and Syed Asad Rizvi, Asma Nabeel,& Nadeem Alvi from Orientm McCann.
ICI announces profit after tax of Rs 302m for Q3 2012 KARACHI: The Board of Directors of ICI Pakistan Limited is pleased to announce the financial results for Q3 2012.The company posted net sales income of PKR 8.7 billion and PKR 25.4 billion for the quarter and nine months ended September 30, 2012 respectively which was 3% and 6% lower than same period last year. Operating result for the quarter and nine months at PKR 521 million and PKR 1,270 million were both 32% lower compared to same period last year. Sharp reduction in margin over the feedstock prices as well as lower sales volume in the PSF Business with blend economics favouring cotton and significantly higher energy cost played a major role in dragging down the operating results. EPS from continuing operations for the nine months ended September 30 2012 at PKR 8.27 was lower by 20 percent compared to same period last year.
KARACHI: Nokia today announced the Nokia Lumia 510, a smart and modern entry-level smartphone. Featuring a bright, 4-inch display, the Nokia Lumia 510 makes the unique benefits of Lumia and Windows Phone even more affordable. “With the Nokia Lumia 510 we continue to meet our commitment to bring Windows Phone to new, lower price points,” said Jo Harlow, executive vice president of Nokia Smart Devices. “People who use Windows Phone quickly realize how much more intuitive it is than other smartphone platforms, and Nokia Lumia is the best embodiment of the Windows Phone experience. With the Nokia Lumia 510 we’re looking forward to welcoming more people into the Windows Phone experience.” Following on from the success of the Nokia Lumia 610, this latest addition to the Nokia Lumia range comes in five vivid colors for a fun and personal way to enjoy Windows Phone. Windows Phone is different to other smartphone platforms thanks to Live Tiles, making it easy to see incoming messages and updates; People Hub, which brings together contacts and updates from across social networks into one location, and access to Microsoft Office and Internet Explorer 9 on the mobile.
Standard Chartered Pakistan announces 2012 third quarter results KARACHI: Standard Chartered Bank (Pakistan) Limited today announced its third quarter results for 2012. The Bank’s Profit before tax has grown by 19% to PKR 6.9 billion in the nine months of this year with Earnings Per Share improved to PKR 1.16 from PKR 0.97 in the corresponding period last year. Revenue has increased to PKR 20.4 billion while deposits and gross advances enhanced to PKR 267.4 billion and PKR 162.5 billion respec-
tively. The increase was underpinned by successful execution of the bank’s strategy of focused growth, improved cost discipline and prudent credit expansion. This resulted in improved financial performance with steady revenue and decreasing loan impairments which were 23% lower from the same period last year. Investment into the franchise resulted in slight increase in administrative costs albeit still below the ongoing inflation rate. Despite the increase in costs, the Cost to Income Ratio remained more or less the same at 52%.
nesses are encouraged to create economic and social value simultaneously by focusing on the social issues that they are uniquely capable of addressing. For maximum impact, Nestlé focuses on CSV projects in the three areas – nutrition, water and rural development which are core to business activities and vital for its value chain. For Nestlé Pakistan, the reconstruction of this school is one example of many.
MCB adopts new technology
Nestlé Pakistan’s Peerano Goth project
KARACHI: Nestlé Pakistan inaugurated the ‘Government Primary Sindh School’ at Peerano Goth, located in the suburbs of Port Qasim Industrial zone, Karachi on Wednesday. The Provincial Minister for Education & Literacy, Pir Mazhar ul Haq along with the Managing Director of Nestlé Pakistan, Magdi Batato, unveiled the plaque for this inauguration ceremony. The school which was abandoned a decade ago fell to disrepair and now rebuilt by Nestlé Pakistan. The project was initiated in December 2011, achieving this milestone in 10 months. Nestlé believes that for a company to be successful in the long term and create value for its shareholders, it must also create value for society, owning this practice as Creating Shared Value (CSV). Through this, busi-
KARACHI: MCB Bank has adopted Microsoft collaboration and business productivity platform to enhance the efficiency of customer services by 30 percent and maintain its technological edge in banking sector. “Acquisition of the latest technology and moving towards integrated and centralized solutions is the core strategy adopted by the Bank having largest online branch setup in the country,” said Mr. Imtiaz Mahmood, Head of Information Technology Group, MCB Bank Ltd. “This Microsoft platform will enable MCB employees to connect securely and collaborate from virtually any device, anywhere giving the bank huge edge over its competitors,” he added. Sayed Hashish, General Manager Microsoft North Africa, East Mediterranean and Pakistan felicitated MCB Bank for acquiring state of art technology which would give an edge to its employees in efficient delivery of services.
Thursday, 25 October, 2012