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BUSINESS Friday, 27 September, 2013
US-funded rehabilitated power station adds 270MW to national grid ISLAMABAD: US Ambassador to Pakistan Richard Olson visited the Jamshoro Thermal Power Station (JTPS) which was recently upgraded with $19.3 million in US assistance. The Jamshoro plant will now provide an additional 270 megawatts of power to the national grid, enough to provide electricity to nearly 4.3 million more Pakistanis. The visit of US Ambassador Olson, US Consul General in Karachi Michael Dodman, United States Agency for International Development (USAID) Mission Director Gregory Gottlieb, and other senior US government officials to JTPS reaffirms the US government’s commitment to strengthening publicowned power sector entities. Sultan Zafar, CEO of Genco Holding Company Limited, Anwar Brohi, CEO of Jamshoro Power Company Limited, and other Government of Pakistan representatives toured JTPS with the US delegation. “The United States’ commitment to Pakistan’s energy needs is long term and it delivers results. Jamshoro is just one example of how the United States and Pakistan continue to partner to help Pakistan grow,” said Ambassador Olson. “Together, we are responding to Pakistan’s energy crisis. And we are working together to develop a partnership that delivers for the people of Pakistan and beyond.” The United States, via USAID, provided $19.3 million to rehabilitate JTPS. Work began in June 2010 to upgrade the plant, restoring 150 megawatts of power generating capacity that the plant had lost as a result of deferred maintenance and reduced fuel efficiency. The repairs exceeded project targets and now a total of 270 megawatts has been added to Pakistan’s national electrical grid as a result. In addition to Jamshoro, the US government, is supporting the rehabilitation of thermal plants at Muzaffargarh and Guddu, as well as the Tarbela hydro-plant. The USAID has also funded the completion of Gomal Zam and Satpara dams. Collectively, these projects have added more than 1000 megawatts to Pakistan’s electrical grid – enough to supply power for 16 million Pakistani citizens. inP
Paying attention to simple little things that most men neglect makes a few men rich — Henry ford
Pak caught into currency devaluation trap: PEW ISLaMaBaD Online
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HE Pakistan Economy Watch (PEW) on Thursday said that the local currency was being destroyed deliberately on the command of IMF. The negotiating team of the international lender trapped Pakistani officials during face-to-face negotiations which pushed country into a severe currency crisis. The IMF team that carefully laid this trap knew that Pakistanis were highly unlikely to walk out of the talks even if the vital national interests were to be compromised, said Dr Murtaza Mughal, President of the PEW. Rupee has shed over nine per cent value against major currencies, especially USD since PML-N formed gov-
ernment which speaks of the competence of their economic managers, he said. Dr Murtaza Mughal said the situation had dented the confidence of masses and business community while it was hurting the popularity of the party which claimed to be promoting pro-business policies. He said the situation had not only exposed the claims of SBP governor and the finance minister but it had been pushing up cost of living and cost of production which was leaving masses in a lurch and ensuring retreat of locally manufactured products from the international markets. The situation will hurt forex reserves, augment loans, trigger unemployment and deteriorate law and order situation which will push millions of unemployed to indulge in terrorism, crimes or suicides.
The failure of economic managers and the SBP will also hit remittances and give a new life to the illegal business of hawala and hundi, he observed. Dr Murtaza Mughal said that Pakistan imported fossil fuel and edible oil worth 18 billion dollars which will be enough to make life of dejected masses more miserable. In a situation when economy was leading on path of destruction, the SBP governor and the finance ministers were enjoying foreign trips while finance ministry officials had embarked upon an unending round of useless meetings, he noted. He said the IMF released only 540 million dollars as first tranche pushing our managers to take 625 million dollar loan from commercial banks which worsened the situation. On the other hand, the IMF is so
Corporate profits down 3pc in FY13 Staff RepoRt Karachi
Rejuvenated by change of guard in the political set-up, the KSE-100 provided return of 52 percent, 44 percent in US dollar terms in the year ending by June 2013 overlooking the prevailing energy and security crises. In addition to elections, the market participants were also bullish on corporate earnings growth. However, profits fell contrary to expectations. Though cement, OMC, textile and power sectors posted impressive profit growth, negativity brought in by heavyweights like fertilizer, E&P and banking sectors proved too much for them to sustain. Resultantly, corporate profitability declined by 3 percent which compares unfavorably against 5 and 10 year average Pakistan corporate profitability growth of 10 percent and 13 percent respectively,” said the analysts at Topline Research. “We base our analysis on Topline sample of 27 companies, representing 64 percent of the KSE100 market cap,” said Asad I Siddiqui. According to which, corporate earnings in FY13 were recorded at
Rs 326.5bn (US$3.4bn) vs Rs337.6bn (US$3.8bn) in FY12, down 3 percent (11% in US$). Interestingly, this entire decline took place in the 4QFY13. FY13 can be classified as one of the worst years for fertiliser sector as its profits declined by 22 percent or Rs10.4bn. The 17 percent decline in production due to gas curtailment remained the prime reason, while higher differential between local and imported fertilizer (urea) also dented the profitability. However, the biggest shock in FY13 remained the E&P sector performance as higher exploration expense (due to expensing out dry wells) and increased effective tax rate led to erosion of profits of Pakistan oil and gas explorers by 4 percent or Rs6.1bn. “The banks’ profits were down by around 8 percent or Rs6.5bn as spreads squeezed to multi-year low of 6.53 percent owing to 300bps decline in interest rate on one hand and fixing of MDR (minimum deposit rate) at 6 percent on the other,” viewed Asad. The main sectors that supported the corporate earnings growth were Cements and OMCs as they posted
profit growths of 52 percent or Rs5.8bn and 25 percent or Rs3.3bn, respectively. The cement sector profitability growth was driven by price appreciation and decline interest expense, while OMCs profits were bolstered by improved margins, especially on regulated products. In addition to these two, textile and power sector also posted impressive gains on the back of average 8 percent PKR devaluation against US$, where textile companies received boost from stable cotton prices and solid regional demand. Interestingly, entire decline of Rs 11bn in FY13 corporate earnings took place in the final quarter with E&P sector woes having their toll on the profitability. Apart from higher exploration expense higher effective tax rate in 4QFY13 resulted in sector’s profits going down 33 percent or Rs12.7bn. Thus after posting earnings decline of 3 percent, corporate profits are expected to bounce back in FY14 with growth of 20-25 percent. “Our estimation suggests that impressive performance by E&P and banking sectors will drive corporate profitability going forward,” said the analyst.
The IMF is so happy with their success that they are not leaving any opportunity to praise the ‘reforms’ of incumbent government Dr Murtaza Mughal PEW PRESIDENT happy with their success that they are not leaving any opportunity to praise the ‘reforms’ of incumbent government, he added.
Traders of F-6 reject trade licence ISLAMABAD: Traders of sector F-6 while rejecting the CDA trade license have issued circulars in the entire markets of the sector in protest against the license. The traders are of the view that the trade license is illegal and it would not be accepted at any cost. They further claimed that if their demands were not fulfilled they would not allow implementation of parking contract of CDA. The president of the Trade Welfare Association super market Sarfaraz Mughal said CDA has fixed Rs 20 per hour for car parking, which is unfair and would give rise to disputes. They claimed that if the trader’s demands are not fulfilled they would hold protests demonstration and also move court in this regard. Online
Dollar reaches Rs113 before dropping back to Rs 106 KARACHI: The exchange rate of the dollar has decreased by Rs 4 and it is now being traded at Rs 106. On Thursday morning, the dollar was being traded at Rs113 after an increase throughout the week. The exchange rate saw a decrease after the intervention of the State Bank of Pakistan. Online
Malaysia all set to boost trade with Pakistan MATRADE CHAIRMAN SAYS BUSINESSMEN AND TRADERS OF THE TWO COUNTRIES SHOULD BENEFIT FROM FACILITIES AND INCENTIVES OF THE FTA SIGNED BY PAKISTAN AND MALAYSIA IN 2008 KaRaCHI Online
The bilateral trade between Pakistan and Malaysia is all set to pick up accelerated pace in the next five years due to the various emerging sectors and greater economic cooperation of both countries in economic development and trade business relationship. The Malaysian External Trade
Development Corporation (MATRADE) Chairman Dato’ Mah Siew Keong said this while addressing 8th Expo Pakistan inaugurated on Thursday. The trade between the two countries has increased significantly to nearly $2 billion annually, which is a remarkable success for the two countries reflecting the complementary nature of the two economies as well as opportunities created by investment and joint ventures in various sectors.
Keong said that businessmen and traders of the two countries should benefit from facilities and incentives of the Free Trade Agreement (FTA) signed by Pakistan and Malaysia in 2008 to explore further the markets potential and emerging sectors that exist in both countries. He added that the government of both sides should create greater awareness in each other’s countries with more interaction of business fraternity and private sector on the unlimited opportunities of investment and trade in the two states. The MATRADE chairman also said Pakistan and Malaysia could establish long-term business relationship through partnerships and jointventures because the two countries share similar culture, consumers preference, food and also into the
services industries. The mutual business projects will strengthen the two countries through exchange of technology and knowledge in different sectors in which Pakistan and Malaysia are rich, competitive and innovative products and services. Malaysia has set up the biggest exhibitors’ pavilion with 30 companies of various sectors along with 63 delegates. Dr Hasrul Sani Bin Mujtabar, High Commissioner of Malaysia in Pakistan, said that Malaysia was the biggest exporter of palm oil to Pakistan and encouraged the Pakistani businesses to look at Malaysia for other competitively priced products and services for Pakistani different needs. The government of Malaysia has decided to interact with business community of Pakistan through
seminars and trade fairs in order to explain them mega opportunities in Malaysia through investment and business. There are many different sectors in Malaysia having niche expertise and quality products and services which could fulfill Pakistan’s needs at present and in the future, he said. Abu Bakar Mamat, Consul General of Malaysia Karachi, said that Pakistan offers immense opportunity for Malaysian companies in any array of sectors including power generation, infrastructure development, housing and real estate, financial services and textile. Malaysian companies seek immense potential in the Pakistan’s agriculture to invest in value-added food, manufacturing and agro-based industries for long-term basis, he added.
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Wherever you see a successful business, someone once made a courageous decision — Peter Drucker Major Gainers
S Africa offers technology to extract reservoirs of coal ISLaMaBaD Online
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EING a rich country in mineral resources, South Africa has the expertise and modern technology to extract coal and it can help Pakistan in using its huge coal reserves for overcoming the ongoing energy crisis. These remarks were made by HE Kumalo Mpendulo, High Commissioner of South Africa, while addressing the business community at the Islamabad Chamber of Commerce & Industry. He said South Africa and Pakistan shared a history dating back many years when Pakistan was supporting the liberation struggle against the evil system of apartheid and thanked the Pakistani people for their support, which led to freedom for all South Africans in 1994. Kumalo said Pakistan and South Africa had tremendous scope to improve trade and economic relations as the bilateral trade of US$ 510 million is quite insufficient. He said South Africa was rich in mineral and other natural resources
BUSINESS B
Friday, 27 September, 2013
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COMPanY Wyeth Pak Ltd Shezan Inter. Exide (PAK) XDXB Premium Tex. Ismail Industr
KArAchI: A signing ceremony was held at JS Bank Head Office for signing of MOU between JS Bank Limited and Nizam Energy (Pvt) Limited on September 16, 2013 to promote and finance Solar Systems Solutions in Pakistan as part of JS Bank’s business strategy and corporate social responsibility. JS Bank conducts its social corporate responsibility through its own initiatives and also in collaboration with the Mahvash & Jahangir Siddiqui Foundation. Pakistan being in the sunny belt is fortunate to have long sunshine hours coupled with high insulation levels and is ideally located to take advantage of solar energy technologies. Pakistan can make use of this freely available and widely distributed solar energy for improving the socio-economic conditions of the people living in remote areas and to reduce the poverty level. Such initiatives can play a significant role in order to provide a feasible solution to the energy crises being faced by the country and its citizens. Over the last few years JS Bank has aggressively expanded its footprint across Pakistan with over 185 online branches in 100 cities. It is one of the fastest growing banks in the country which alludes to the financial strength of the Bank as well as its long-term approach to building businesses across market segments. The bank has been assigned credit rating of A+ by The Pakistan Credit Rating Agency (PACRA) which further indicates the financial health of the bank and the trust reposed in it by the country’s premier credit rating agency. Press release
Inter-collegiate quiz competition held KArAchI: All Karachi Inter Collegiate Quiz Competition 2013 was held at Defence Authority SKBZ College here today. Hafiz Nasimuddin, President Pakistan Quiz Society was the chief guest of the function. The chief guest underlined the significance of the power of knowledge and termed the quiz competitions as the hallmark of a sound education system. He said that in the present times the world was moving from industrial economy to knowledge based economy and as such knowledge and information plays a pivotal role in success of any venture. He added that general
lOw 3890.00 654.00 303.00 152.00 188.01
ClOse Change 3955.15 111.35 655.19 31.19 314.28 13.28 158.64 7.55 204.62 6.72
turnOver 2,220 5,550 800 15,600 6,800
Bata (Pak) 1834.41 Island Textile 999.00 Sapphire Fiber 207.63 Dreamworld 164.75 Colgate PalmolivXDXB1490.00
1800.00 949.05 207.00 157.20 1490.01
1750.00 949.05 197.50 157.20 1485.00
1763.33 949.05 198.00 157.20 1485.00
-71.08 -49.95 -9.63 -7.55 -5.00
140 50 2,100 200 80
7.08 10.68 12.60 24.60 4.42
6.36 10.05 12.35 23.52 4.10
6.50 10.43 12.48 23.80 4.15
-0.36 0.32 0.06 -0.71 0.04
13,920,500 10,901,000 9,998,000 7,582,000 6,943,500
Volume Leaders Telecard Limited TRG Pakistan Ltd. B.O.Punjab Maple Leaf Cement Pace (Pak) Ltd.
6.86 10.11 12.42 24.51 4.11
Interbank Rates USD GBP JPY EURO
PKR 106.9062 PKR 171.1141 PKR 1.0841 PKR 144.3982
Forex UK Pound Sterling Euro US Dollar Australian Dollar Canadian Dollar Japanese Yen Saudi Riyal UAE Dirham China Yuan
BuY
sell
172.5 145.5 108.9 101 104 1.085 28.9 29.55 16.5
172.75 145.75 109.15 101.25 104.25 1.1 29.15 29.8 16.75
knowledge was a vital part of education as sword was mightier than pen. Nasimuddin reiterated that the quiz competitions provided an excellent opportunity to enhance the mental skills of students and played a pivotal role in the development of their all round personality. Earlier the Principal of the College, Brig (R) Shahid Saleem stressed upon the students the dire need for constant update of knowledge for a successful career in this technological and information age. Students of the leading colleges of the metropolis participated in the event. Press release
Glow by Warid introduces ‘Back to Fun’ offer A MOU signing ceremony was held at JS Bank Head Office with M/s Nizam Energy (Pvt) Limited, attended by Senior Executives of JS Bank along with representatives of Canadian Solar Inc.
high 3990.00 655.20 315.99 158.64 206.00
Major Losers
and wished to encourage Pakistani in- friendly relations between South sources and this was an area where vestors to set up manufacturing plants Africa and Pakistan should be trans- both countries should strengthen coin South Africa. We offer many attrac- lated into thriving trade and economic operation for mutual benefit. He said relations as close cooperation between the two tive incentives to investors and more bilat- countries would not only be beneficial importantly South Africa is regarded for two nations, it would benefit the as a gateway into Africa. He said two regions as well. South Africa also offers excellent South Africa and He said coal was an attractive transport facilities including ports area for cooperation and South and international airports for the Pakistan shared a Africa should share its expertise exports of goods. African contihistory dating back and technology with Pakistan nent is the second fastest growfor exploiting its coal reserves ing region after Asia and many years when to produce cheap energy. He Pakistani businessmen could Pakistan was supporting said Pakistan also offered atachieve lucrative results by imtractive investment opportuniproving trade cooperation with the liberation struggle ties, especially in energy and South Africa. He said economic against the evil system of infrastructure development and diplomacy had become the buzz South African investors should word in modern diplomacy and apartheid which led to make more investment in Pakthis is an area that he wishes to freedom for all South istan to earn good profits. He asconcentrate on during his term in sured that the ICCI would work Pakistan. He said Chambers of ComAfricans in 1994 with the South African High Commerce & Industry in Pakistan had a mission to build bridges and devital role for improving trade and invited the ICCI delegation to visit e r a l velop strong linkages with their South Africa to explore new avenues trade was con- South African counterparts. He said of mutual cooperation. In his wel- fined to few items and needed to be that in 1990 when Nelson Mandela, come remarks, Islamabad Chamber of diversified to take it beyond US$ 1 he made big celebration in Pakistan Commerce & Industry President billion by 2015. He said Pakistan was when South African embassy was Zafar Bakhtawari said that good also endowed with lot of natural re- not establish in Pakistan.
CORPORATE CORNER JS Bank promotes Solar Systems Solutions financing
OPen 3843.80 624.00 301.00 151.09 197.90
LAhore: Glow by Warid Pakistan’s premier youth brand understands the needs of its users and is going that extra mile by offering subscribers 10,000 free minutes, SMS, and MBs mobile internet. Glow customers who have not used their SIM for at least 30 days can avail the benefits of this offer by reactivating their SIMs. As summer ends and students find themselves back on campus, communications needs sky-rocket - whether to discuss what courses to take, or to make plans for the weekend, or even just to catch up after being away for a couple of months, mobile phones have become the connectivity medium of choice for today’s tech savvy youth. According to recent research by the Mobile Youth Report, close to 80 percent of teens own a cell phone and almost half of them are smartphones. Press release
BhUrBAN: A renowned Iranian Artist Dr Mohsen Kieany; Clive Wesbter, Chief Operating Officer Hashoo Group (Hotels Division) along with Zulfiqar Ahmad Malik General Manager PC Bhurban during the inauguration ceremony of paintings exhibition.
KArAchI: Jubiilee Life Insurance Company Limited invited selected customers to enjoy Theater Play- Sawa 14 August at the Arts Council, Karachi.
PTCL extends reconnect offer for customers ISLAMABAD: The Pakistan Telecommunication Company Limited (PTCL), the largest integrated ICT services provider, has extended its ‘reconnect campaign’ offering its landline and broadband customers 50 percent discount in outstanding dues on reviving their landline and broadband connections. Customers who have disconnected their landline or broadband services before Aug 13, 2013, and can avail this offer before Oct 31, 2013. Customers availing this offer will also be able to enjoy 50 percent discount on monthly broadband charges till March 2014, while no fee will be charged on reconnecting. PTCL Executive Vice President (EVP) Wireline Services, Aasif Inam commented at extension, “For PTCL, customer satisfaction always comes first and we have extended the reconnect offer owing to the overwhelming response of our valued customers.” “The reconnect offer is designed keeping in view cost effective connectivity needs of our customers. With its landline and broadband services PTCL is bridging the digital divide in the country by delivering innovative ICT services to the masses”, added Aasif Inam. As Pakistan’s fastest and most affordable broadband service, PTCL’s ‘Broadband Pakistan’ offers seamless internet experience, uninterrupted streaming and fastest downloading speeds. PTCL landline and broadband remains the backbone of the telecom and internet industry of Pakistan and is the largest voice and data network in the country. The landline service of the company also offers the most affordable rates, enabling customers to stay connected with their relatives and friends. Press release
KArAchI: Deputy of the consul General of Islamic Republic of Iran in Karachi Muhammad Reza Bak Sahraei visiting Pakistan Today Karachi office. A group photo with Syed Turab Shah Head of Seles & Marketing, Agha Anwer Ali Manager Marketing, Rafiq Rajper Manager Marketing, Amir Majeed Staff Reporter, Aftab Channa Staff Reporter, Hasan Irshad, Faizan Khan, Muhammad Danish, Imran Gillani.
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