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Bull’s storm KSE with 150 point gain 2
Saturday, 05 November, 2011
Pakistan’s $83 billion informal economy KARACHI
he growing influence of informal economy, especially in developing countries, has created a great concern and is a big challenge for political and economic managers. Pakistan’s informal economy is believed to have grown to more than half the formal economy which yields a GDP of $166 billion. According to research reports, the size of informal economy stands at $83 billion and that it could yield the national exchequer revenue of $8 billion if taxed at 10 per cent.
Challenges for growth This was said by Mian Abrar Ahmed, President, Karachi Chamber of Commerce and Industry (KCCI), while speaking at the business policy roundtable on informal enterprise in Pakistan – Challenges for Growth, jointly organised by KCCI and CIPe here on Friday. he explained that there are many factors behind people in Pakistan preferring not to register businesses or declare actual income. At present most of the tax burden is on industries and businesses. Agriculture which accounts for 22 per cent of GDP, contributes only one per cent in taxes while the Industry which accounts for 25 per cent of GDP contributes 63 per cent of taxes, he maintained.
transit trade Mian Abrar said that Afghan Transit Trade is also a major source of informal economy. According to FBR over the period of two and a half years 35,000 containers entered into Pakistan out of which 29,000 about 83 per cent could not reach their destinations. This he argued results in a huge loss to the national exchequer through tax evasion. Informal economy grows along with corruption, speed money smuggling, narcotics, government contracts and tax evasion. A study by Lahore University of Management Sciences showed that out of Rs100, the government receives only Rs38 and Rs62 is pocketed by the tax payers, tax collectors and tax practitioners. It means Rs720 billion tax collection in 2005-06 and Rs1.558 trillion in 2010-11 was only 38 per cent and if corruption is controlled the revenue could be increased to a gargantuan Rs4.10 trillion.
ease of doing business President KCCI stated the World Bank reduced Pakistan’s rank, in ease of doing business, to 105 while last year it was 96. This discrimination encourages people not to register businesses and to avoid paying taxes. There is also a trust deficit between people and the government. Massive corruption in government departments, embezzlements and wastage has been reported by auditor general of Pakistan. Coupled with this the corruption perception report by Transparency International also reflects the fact that people do not trust government officials and they rather prefer to pay directly to welfare organisations in huge donations, charity, zakat etc. Pakistan is one of the lowest ranked countries in tax to GDP ratio while it is one of the top ranking countries who spend more on charity and welfare activities. According to a survey Pakistan spends 2.3 per cent of its GDP in charity as compared to
America (2.2 per cent), UK (1.3 per cent), and India (0.2 per cent). If stern measures are taken to curb corruption then the confidence would be restored and tax to GDP ratio has the potential to be enhanced considerably. Giving amnesty to black money holders reflects the state’s tax machinery failure in performing its main function of collection of tax where it is due. It is unfair to those who have been paying their taxes honestly, at much higher rates than those offered to tax evaders.
disCouraging informal eConomy President KCCI urged the government to take remedial measures to discourage informal economy and tax evasion. Those responsible for colossal revenue losses to the national exchequer, tax evaders and their partners in tax machinery should be punished and debarred from holding any public office. he voiced that smaller formal or shadow economies appear in countries with higher tax revenue that are achieved by lower tax rates, business friendly policies, fewer laws and regulations combined with consistent enforcement and less bribery facing countries. The major driving force behind the size and growth of the informal economy appears to be an increas-
ing burden of taxation combined with pervasive anti-state activities. In Karachi for the last couple of years due to activities of some pressure groups and political parties; extortion, land grabbing, kidnapping incidents have increased to alarming levels. It is estimated that in Karachi alone about Rs10 million worth of extortion is carried out on a daily basis. Supreme Court, armed forces and government agencies have taken serious notice of it and the graph of these incidents has fallen but it is still adversely impacting the economy.
trade, not aid he urged the West and USA to give Pakistan trade access rather than aid which will enable the informal sector to indulge in export thus bringing them into formal sector net. President KCCI was of the view that every country has its own idiosyncrasies while in Pakistan’s case we have been historically and chronically an aid dependant country. he opined to substitute aid with market access and trade. he underscored that all the segments of society especially the government, business community, media, civil society, and intellectuals should join hands so that our tax to GDP ratio could improve considerably. This would, in turn, get rid of huge burden of internal and external debt that would enable the government to generate ample resources to run the state’s affairs and to provide more health and education facilities to the masses.
trust defiCit Chairman Businessmen Group and former President Siraj Kassam Teli was of the view that the main reason of unwillingness of informal sector to get formalised was the trust deficit in the system bureaucracy and establishment. he gave the example of Ashura (Bolton Market) incidence where almost a majority of the claimants were from the informal sector who despite having trusted the KCCI, reviewed the claims forms with actual claims. he said if the informal sector is given proper chance and trust they will get formalised. he suggested Country Director CIPe Moin Fudda to invite the government officials in the consequent roundtables on informal sector.
addressing Core issues Chairman Sindh Board of Investment and former President KCCI Muhammad Zubair Motiwala while exchanging views stressed upon the need to address the grass root cause of informal economy. To encourage the informal sector to get formalised, he suggested the government should introduce the reward a penalty policy which is the need of time. he suggested supporting the corporate sector which was contributing the major share of revenues to the national exchequer in the form of some rewards so that the unregistered persons may get inspired and register themselves to avail same benefits. Former President KCCI Majyd Aziz, in the panel, discussion articulated that the private sector and the government’s departments lack “cooperative” approach. he pointed out the illiteracy factor which was also discouraging in the informal sector to formalise. Country Director CIPe, Moin Fudda, Regional Director CIPe Andrew Wilson, eminent businessmen, representatives of State Bank of Pakistan and managing committee members of KCCI also participated and exchanged their views in the said roundtable.
black economy The segment of a country’s economic activity that is derived from sources that fall outside of the country’s rules and regulations regarding commerce. The activities can be either legal or illegal depending on what goods and/or services are involved.
tax-to-gdp ratio The ratio of tax collection against the national gross domestic product (GDP). Some states increase the tax-to-GDP ratio by a certain percentage in order to cover deficiencies in the state budget revenue. In states where the tax revenue has gone up significantly, the percentage of tax revenue that is applied towards state revenue and foreign debt is sometimes higher.
$166b is the size of Pakistan’s formal economy
$8b is the amount Pakistan can generate by taxing informal sector trades
tax evasion An illegal practice where a person, organisation or corporation intentionally avoids paying his/her/its true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties.
Credit Crunch An economic condition in which investment capital is difficult to obtain. Banks and investors become wary of lending funds to corporations, which drives up the price of debt products for borrowers.
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HAFeez AslAm KHAn
he importance of public enterprises is now a universal phenomena used to achieve the desired social and economic objectives. They are considered to be the most effective form of organisation for implementing public policies and development programmes especially in the less developed countries. The growth of PSes showed a significant shift in economics and social thinking between the 19th and 20th centuries and it is universally recognised that the jurisdiction of the state is not to remain confined to mere supervision or regulation. The prerogative of the state to intervene in the economic activities and indeed to directly participate in it has been fairly well established in the modern governments and has been legally legitimated and socially accepted. During the last three years, the PSes (PIA, WAPDA, Steel Mills, TCP, Railways National highways, Utilities Stores Corp etc.) have become a headache for the government & its finances, swallowing Rs600 billion and in spite of an injection of billions of rupees, they have gone from bad to worse. And in this space it is suggested that: 1. PSes are accountable for achievement of the national goals and respite to the public which miserably failed. 2. At the operational level. Internal audit, management ratios, cost and budget control and effective supervision are some of the techniques for ensuring desired level of efficiency. 3. Lack of professional management and qualified staff, suppression of full information about PSe activities, weakness of parliamentary institutions, weak political leadership, appointment of undeserving crones as dead and mass scale employment of unskilled staff are some of the factors which serve as constraints to an effective system of accountability. The general question that a cost benefit analysis sets out to answer is the status of a number of projects. But why bother with cost benefit analysis at all? The answer is provided by the familiar thesis that what counts as a benefit or a loss to one part of the economy to one or more persons or nation as a whole. In cost benefit analysis we are concerned with the economy of a defined society and not any particular fraction of it. One of the most popular applications of cost benefit techniques is that of construction of a hydel Power station may be small or mega, construction of a reservoir or a dam and the machinery for power generation, flood control or irrigation, tunnels highways, bridges etc. In the present state of scientific
In quest of electricity development a nation in waiting
and technical knowledge, it is convenient to list the main energy source under five headings. Four of these can be grouped under the general description: hydroelectric, oil, natural gas, coal and nuclear fuels (both actual & potential) and the fifth is alternative energy. electricity is now a serious issue that is bringing people to the streets as they now fed up with long & un-announced load with tremendous hike in the power tariff (98 per cent). The problem is manifold: acute shortage and high rising costs of oil, which have made electricity unaffordable by the poor and middle class - a situation created by relying on IPPs (Independent Power Producers) and Rental Power Plants (wasting Rs72 billion and is under trial in the Supreme Court) The hydro component has, over the years, dwindled to less than 30 per cent from the peak of 75 per cent. It is unfortunate that a country bestowed with large glaciers and with water flowing from the
himalayan & Karakorum heights has developed only a fraction of its potential. WAPDA has its own trained expert hydel engineers but we went around the globe seeking help for the construction of a mall 18 MW Gomal Dam (not yet commissioned) while creating a hype in print & electronic media for 50,000 MW hydel potential. Not a single MW has been added so far! The 4500 MW Diamer Basha, which was inaugurated by the Prime Minister on 18th Oct 2011 (having already been inaugurated by General Musharraf in 2006), is in doldrums as World Bank is hesitating to fund Rs12 billions, as some portion is in the disputed Kashmir territory and India has already informed the IBRD. A very pertinent question arises why Pakistan’s concerned official pressed the bank immediately when they came to know its intentions, why they remained mum. Our official set up is too inert and suffer from a numbing lack of direction from the political
leadership. It owes an explanation to the nation, when the country is under serious power crisis. In the recent meeting of IeeP there was a joint consensus to build Kala Bagh Dam, where all infrastructure worth Rs30 billion – featuring offices, colonies, schools and hospitals – is available but for a reservoir and power station and can be build in four to five years. Regarding the 969 MW Neelum Jhelum project which was approved in 1989, an estimated cost was Rs15 billion in June at Rs84.5 billion and is now revised to Rs333.91; showing an increase of Rs249 billion or 296 per cent due to rupee devaluation. The cost of escalation, change in design owing to earth-quack and the use of tunnel boring machines to advance project implementation by 18 months is not justified and got checked through an independent audit team of Auditor General, which will show the inordinate delay and overrun cost of all the hydel power projects including Mangla Raising Project started in
Why Siri is a google killer
T’S now been a couple of weeks since Siri debuted as part of (AAPL) 4S. The response from most people has been very positive. however, in my opinion, Siri is tremendously under-valued. People see it as it is today, which is already the best voice recognition application in history. But people (including high-priced sellside Wall Street analysts) fail to see where the puck is going for Siri. Siri will be vastly more improved in as little as 2 years from now. And the boundless number of applications using Siri will explode. In the way that the January 2007 launch of iPhone set a ripple in the ocean that would () in an all-out
tsunami, I believe Siri’s launch this month spells of business (GOOG). 1. Siri works. Voice recognition has been the next big thing for 15 – 20 years. We still have these frustrating experiences when we call into check the balance of our bank account and have to shout in the phone 5 times in a row, because the application doesn’t recognize us. Siri is the best voice rec app ever — and it’s still in “beta.” 2. . Not only does Siri accurately recognize our voices but it has a personality to boot. It’s that personality which makes the app addictive because we start to feel over time that we truly have a personal assistant who is our friend. 3. Siri is hard to copy. For anyone who doesn’t understand voice applica-
tions, it’s easy to think that Siri will be easy to copy. It won’t. There are 2 parts to making a successful voice app: the voice rec technology which has improved a lot but is basically a commodity and the app itself, which is a combination of art and artificial intelligence. It’s that 2nd part that’s so tough to replicate and that’s why Apple bought Siri last year. It’s true Google has experience in the voice rec space and doing some simple voice apps but they do not have the personality and AI of Siri and that will be very difficult to copy — especially for a company that doesn’t sit at the intersection of the humanities and technology. 4. Siri helps own the customer experience for Apple. Dan Frommer and oth-
ers have been talking about this for a long time. Siri is a new interface for customers wanting to get information. It used to be text-based input to their desktops. Then, it was thumbing it in to their mobile devices. Now, Apple is attempting to make it voice-based. They previously were attempting to Balkanize your data needs by training for you to do specialist searches for the information within apps on your iPhone. Now, they’re training you to rely for doing any task by leaning on Siri to do it for you. At the moment, most of us still rely on Google for getting at the info we want. But Siri has a foot in the door and it’s trusting that it will win your confidence over time to do basic info gathering. Siri can be potentially leveraged in other
2004 adding 644 million, nothing has been done so far. For the first time in the history of Pakistan, for Neelum Jehlum Project all consumers were charged 10 paisa per unit and the total amount should now be Rs23 Billion. WAPDA has also taken soft loan for this project (IDB $133million, UAe $100million, Kuwait $40 million, OPeC $30million, SADB $80million). India has so far constructed 90 dams as against nil by WAPDA (Pakistan). If Kishan Ganga Project at river Jehlum is commissioned the flow of water for Neelum Jehlum Project will be reduced by 30 per cent to 40 per cent. In fact the chairman has not proved too successful since his joining, not being an engineer (a retired civil servant) and interestingly during this period generation capacity has been down to 17 per cent. PePCO is almost depending on IPPs, who had full grip over PePCO and its management due to shortfall of 5000 MW. he has not been able to lead from the front as is required from the head of institution. I happened to work as the finance director in WAPDA, the short term remedy lies in augmentation and replacement of machinery of our old hydel & thermal plants, on war-footing basis, which should not take more than a year and save the vicious circular debt now mounted to more than Rs300 billion. I would suggest that services of Mr Saeed Akhtar Niazi; ex-Member (Power) - a guru of hydel planning construction & generation. Mr Tanzeem Naqvi ex-Member (Power) a successful chairman and MD KeSC. Mr Abdur Rasheed Kakar (elder brother of retired general Waheed Kakar) Sh, Meraj Ahmad MD (Power) as a consultant may be utilised to avoid further damage. All of them are well known for their integrity, competence and dedication. NePRA’s contributions could have saved WAPDA and PePCO in proper monitoring the projects, working of discos, line losses due to theft and other technical reason but it confined only to increase in power tariff. I know Mr Tahir Bashrat Cheema since 1982 (when I conducted enquires of all area boards and many corrupt engineers were removed, was in Multan) during interaction. I have found to be a dynamic, intelligent and wellconversant with WAPDA’s problems is also President IeeP (with dedicated support from engineers) may be considered for NePRA for which the Supreme Court has taken a serious exception today for determining the power tariff for non operational or non existing RPPs. Time is not on our side, strong will and war footing actions are required to rid people of Pakistan of this quagmire of shortage of power at the earliest.
devices that Apple ships in the future like TV to become the primary way you interface with info you need. 5. Siri will vastly improve in the next 2 years based on all the data it’s amassing. This game is about where the puck is going, not where it is today. Many people only look at Siri as the application as it works today. Yet, the biggest advantage over any other voice application out there today, and the apps still to be developed, is the massive data Siri is now and will continue to collect in the next 2 years. We know after the first weekend alone, there were 4 million Siri-enabled devices out there probably collecting 1 – 2 utterances a day worth of data — all being stored in Apple’s massive North Carolina data center. All that data will allow Siri to get better and better. Think Siri has awesomely funny answers to your crazy questions now? Just wait two years. She’ll be even more your friend then, knowing you perhaps better that you know yourself in some situations.
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The MFN coin and its three sides
When trade, not aid, matters he FTA with Indonesia again signals the government’s inclination towards increased export revenues to offset aid bottlenecks, in keeping with the post-IMF posture of reducing dependence on non-trade exogenous inflows. Yet the FTA model should prompt the government to bolster industry and manufacturing urgently, since our miniscule export mix invariably tends towards more imports than exports, compromising the main purpose of preferential trade arrangements in the present market environment. Ironically, closing the chapter on foreign funding has not diminished the government’s appetite for cheap money, as its debt belly continues to swell from unprecedented borrowing from the money market. And since heavy government presence chokes credit markets and crowds out private sector investment, the subsequent scenario is a nonstarter when it comes to enhancing production and incorporating value addition in exports. So, yet again we have a prudent policy, set
in the right direction, but with flawed fundamentals that can end up doing more harm than good. The more accommodative monetary environment, the trade deals with eager partners, all fail to deliver when market specifics are not adjusted rightly. Failing necessary measures, we’re more likely to record increasing inflation and trade deficit rather than the contrary, hence a more restricted fiscal position for the centre, demanding a swift return to borrowing. Our able finance managers obviously realsie the centrality of trade enhancement to sustained growth necessary for snapping out of stagflation. They must ensure adequate investment and energy supply to manufacturing, so our production matures enough to positively exploit natural comparative advantages. Gyrations in the international financial system are prompting a radical overhaul of trade relationships across the world, with Asia’s emerging economies taking the lead in the bottoming out process. We must be part of this progressive change, or risk being counted among chronically low growth economies for a long time.
he MFN status granted to India and the assortment of ‘hue and cry’ and ‘buoyant sanguinity’ that engulfs it, is one of those classic cases of looking at both the sides of a coin. In fact if one were to draw out the coin analogy, the MFN coin actually has a third façade – one that has a probability akin to a coin falling, and stationing itself perpendicular to the ground instead of the more customary ‘heads’ or ‘tails’ positions. That particular façade is the possibility that the MFN might turn out to be a catastrophe. Yes, anything related to activity from the eastern side of our neighbourhood nourishes the doubting Thomases in our neck of the woods; however, one cannot repudiate the fruits that the move promises to bear – terms and conditions do apply though. Looking at the more conventional sides of the aforementioned coin; the ‘heads’ face – the positive side – is that it was a long overdue reciprocation since it promises to bolster our commerce and ameliorate our ties with, what must be acknowledged as, a growing economy. India had granted us the MFN status, all the way back in 1996 and they reiterated their desire for Pakistan to return the favour in the recently held round of trade talks in Mumbai, last month. The title “Most Favoured Nation” is a quasi misnomer, and it could mislead the Average Joe into perplexity. MFN status basically connotes that Pakistan would no longer discriminate India in the realm of trade and continue commercial interaction with India
Sans New Delhi’s cooperation, the positivity surrounding the move might prove futile
PIA: A crisis of reputation Most Favoured Nation There was a golden period when PIA had a name in the global arena in wake of their superior quality. It is saddening to note that in the recent years PIA has badly hampered its corporate image. Safety is always the main priority of the passengers when they take up flights. The urgency of saving the reputation of PIA calls for a serious crisis management. PIA has to impose more stringent safety standards and regulations in order to promote safe, secure and sustainable mode of air transportation. It is high time they go beyond their existing standards of safety and quality control.
As someone who is not a connoisseur of matters pertaining to economics, I would like to question your team regarding the entire MFN issue. I have read contradicting reports and opinions from various quarters and can’t seem to make up my mind. Does granting MFN status to India mean that we would be compromising our stance over Kashmir and hence giving the Indians the edge as for as their strategic position in South Asia is concerned? Isn’t this too big a price to pay for mere commercial growth? There are so many other countries that we can choose to enhance our trading ties with. Why India?
sHoAIb RIAsAt lAhORE
Kunwar khuldune shahid
A just economic order
Basit Rizvi OCIAL deprivation amongst a majority of the world’s inhabitant has led to a divide that is now threatening to wipe out the status quo. Millions across the globe feel these inequalities are rooted in the attempts of the rich to feed off the poor in their struggle for power. In this context, the geography of poverty has changed drastically over the last few years. In figures that are striking to say the
least, more than 70 per cent of the world’s poor now live in middle-income states. The fact that this pattern will in most likelihood continue over the next few years poses some significant questions. As economies progress, as they embark on a road to prosperity, are these advances made keeping in mind human development and poverty reduction? While aggregate incomes may rise, the divide between the rich and the poor is widening at more or less the same pace. A good place to start my analysis would be South Asia, where figures indicate that 60 per cent poverty rate in 1981 dropped to 40 per cent in 2005. While there has been a percentage drop in poverty, over the last many years, there has been an aggregate rise in the number of people who are now living below the poverty line. In South
Asia, according to figures from 2005, 46 million people during this time slipped into poverty despite a so called improvement in poverty. Three quarters of South Asia’s poor are living in India, and the number of people below the poverty line in India has increased from 420 million to 455 million. Merely matching global trends, merely focusing on indicators and not real solutions is not sufficient in the fight against poverty. It needs to be understood that poverty is heavily dependant on the degree of income inequality. A reduction in inequality therefore benefits the poor and vice versa. When growth trumps inequality, the fight against poverty loses steam. health indicators have also not kept up with the rise in income. What is most disturbing is that South Asia has the highest rate of
shahab Jafry Business Editor
Kunwar Khuldune shahid Sub-Editor
babur saghir Creative Head
ali riZvi News Editor
maheen syed Sub-Editor
hammad raZa Layout Designer
under the existing positives list of trade – something that Pakistan shares with over a hundred other nations. Pakistan and India are already indulging in indirect trade via Dubai – which posts huge trade volume numbers. Now these numbers would be posted as direct trade in the official reckoning, and in turn would result in India investing capital in Pakistan. Not only would this enhance the economies of the two respective nations, but the entire South Asia would undergo a massive boost and nations would begin to work in unison. On the flipside, there is a genuine cause of scepticism as well. First and foremost, until and unless India removes the non tariff barriers and shelves its bias, the entire exercise is as useful as a leather jacket in a hot summer’s afternoon. Cooperating and letting go of the paranoia attached with each other’s maneuvers is something that is etched in the mentality of both sides of the Indo-Pak divide, but now with Islamabad making an accommodating statement of intent, New Delhi must exhibit an act of positive collaboration. India must reciprocate the reciprocation, so to speak. however the ‘tails’ side – the aforementioned ‘flipside’ – has a denser copper to nickel ratio to throw the concepts of gravity and density into the mix. It is India after all; the butt of Pakistani qualm. APTMA have already flaunted their vociferous clamour regarding the concerns they have regarding the matter, and they would need to be satisfied and given reassurances. The historical antagonism due to the Kashmir issue and our geo-strategic interests has also been thrown into the cauldron as the debate promises to simmer on for a while. Moving back to the third side of this intricate coin ; something that all the stakeholders and the ones stirring the cauldron must realise is the fact that the vehement demonstration of negativity is totally uncalled-for simply because if one restricts one’s thought to the domain of commerce the move promises to be a fresh dawn in IndoPak commercial ties. Nevertheless, sans New Delhi’s cooperation, the entire positivity surrounding the move might prove to be futile. All the same, the coin has been tossed and our government has called ‘heads’… The writer is Sub Editor, Profit and can be reached at firstname.lastname@example.org
More than 70 per cent of the world’s poor now live in middle-income states
malnutrition with perhaps the greatest number of maln o u r i s h e d children. Because of these indicators, they have high mortality rates, low cognitive performance, and more chances of dropping out of school. What is most striking in South Asia is the fact that social inequalities have decreased on the whole, however the situation has not improved fast enough to reduce the cumulative number of people living in poverty. Moreover, these indicators are representative of a general pattern of discrimination. What policy makers should focus on is a direct intervention that aims at accelerating social progress, with an increased focus on human development coupled
with greater gender inclusiveness. Increased gender equality has the ability to turn the tides in favour of economic growth. With changing global scenarios there is a need to achieve a just social order that aims at bridging the divide between the rich and the poor. While these are big challenges they are not impossible to overcome given a human centric approach is incorporated in the prevalent social setup. In the absence of these policies, rising discontentment among the masses may lead to revolt and political instability that will present itself as a hurdle to economic progress. The writer is a professional banker and financial commentator
For comments, queries and contributions, write to: muneeb eJaZ Layout Designer
email: email@example.com ph: 042-36298305-10 fax: 042-36298302 website: www.pakistantoday.com.pk
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We believe with long weekend ahead of us, market direction may not be determined going forward
bilal asif, head of research at hmfs
Punjab irrigation system faces challenges low-recovery, high-operational and establishment costs in store g 80 per cent of food in pakistan is produced through irrigated agriculture g
IKe the energy sector in the country, Punjab’s irrigation system is also facing similar challenges of low-recovery and high-operational and establishment costs. The province is recovering slightly over 77 per cent through water cess (Abiana) against the total distribution cost that makes irrigation system unsustainable. The research suggests that though, irrigated agriculture in the country is potentially cost-effective, but the establish-
ment cost of the system is relatively higher that shows the inefficiency of the managerial system. Figures indicate that the establishment cost is even higher than operation and maintenance (O&M) cost. Only 35.20 per cent is being spent on the O&M, while the rest is being eaten away by the establishment. A research jointly conducted by two universities, Al Qassim University, Saudi Arabia and University of engineering and Technology, Taxila, evaluates the cost of water paid by farmers, the irrigation benefits per unit water volume, operation and maintenance cost and total production cost, including
the cost of irrigation, seed, fertiliser, pesticide, labour, etc. Available data shows that 80 per cent of food in Pakistan is produced through irrigated agriculture, while in China and India, it is 70 per cent and 50 per cent, respectively. Research points out that the performance of irrigation systems has a major role in producing more food and making irrigated agriculture cost-effective, but the present management cannot provide food security in the region. Improvements in institutional organisation and involvement of stakeholders can improve the situation, study underscores.
It further suggests that there is a dire need for increasing productivity of the already cultivated land and cropping intensity by improved water management measures. Data shows that the total recovery cost of the system as a whole is 77 per cent that means the system bears a loss of about 33 per cent. It observes that the distribution cost constitutes a greater share of the establishment cost as compared to O&M. Research recommends improvements in recovery are required to make the system self-sustainable. Research further points out that despite various government interventions, including institutional reforms, establishment of Provincial Irrigation and Drainage Authorities (PIDAs), Area Water Boards (AWBs) and farmer organisations, to improve the overall governance in the water sector, real
Bull’s storm KSE with 150 point gain Karachi Staff report
S anticipated, market remained thinly traded with an activity of 56 million shares during the entire day. The benchmark KSe-100 index however gained 150 points on the back of buying interest in selective heavy weight stocks. eNGRO stood as the volume leader (4.7 million shares traded) on the news that government is evaluating alternatives to resume gas supply to company’s new urea plant. The KSe 100 index closed at 11957.30 levels with the gain of 149.84 points, while KSe 30 index gained 153.88 points to close at 11292.57 levels. All Share index closed at 8274.17 levels after gaining 98.61 points. Total 151 scrips advanced 82 declined and 103 remain unchanged out of total 336 scrips traded. PSO gained 4.7 per cent on the expectation of outstanding cir-
cular debt being converted into government papers today. This led to a flurry of activity in the entire energy chain as all major oil companies including OGDC, POL, PPL, ATRL and NRL closed in green. The index heavy OGDC and victim of circular debt PSO were jumping higher and higher backed by rumours of circular debt resolution.
The top three index contributors added over 100 points toward the total market move of 150 points. Market intelligence regarding possibility of 50mmcfd gas will be supplied to engro pushed the stock price upwards. The market was more inclined towards the positive direction largely in the second half of the
trading session. Previously November 4, 2011 was announced by various government representatives for conversion of Rs300 billion power sector debt into the government bond. We believe with long weekend ahead of us, market direction may not be determined going forward, said Bilal Asif, head of Research at hMFS.
situation has never improved. It underlines that there are major problems in water cess recovery, unnecessarily high cost of establishment and relatively lower crop yields in comparison of other countries. Farmers at tail ends always complain about short irrigation supply. Research indicates that though, irrigation in Punjab is profitable and its profitability may further be increased by decreasing on-farm irrigation cost. It suggests that in order to make the irrigation system more reliable and beneficial, it is necessary to decrease the establishment cost. The Irrigation Department is over-staffed and needs right-sizing. Corruption, political interference and social problems are the main hindrances, which need to be addressed seriously.
pak China bureau and pbit to host a delegation LAHORE: Punjab China Bureau (PCB) and Punjab Board of Investment and Trade (PBIT) will jointly host an eleven member delegation of Communist Party China (CPC), from 5th to 7th November, 2011 headed by LU hao, member CPC central committee and Secretary of CPC committee of Gansu province of people republic of China. Chief executive Officer PBIT, Iftikhar hussain Babar while giving details in this regard informed that the aim of this delegation is to extend and enhance friendly relations between two countries and to promote shared prosperity for the purpose of promoting exchange and corporation in trade agriculture, infrastructure, resource exploitation, tourism, education and culture. he further told that another major aspect of the visit of CPC China in Punjab is to increase cooperation on different areas of interest through which Gansu province plans to invite economic and trade delegations from Punjab Province to participate in China, Lanzhou investment and trade fair in July, 2012. STAFF REPORT
exports of sports goods increase 5.39pc to $79.469m ISLAMABAD: exports of various sports goods increased by 5.39 per cent, during the first quarter of the current fiscal year, when compared against the same period last year. The overall sports goods' exports during July-September (2011- 12) stood at $79.469 million against the exports of $75.407 million during July -September (2010-11), Federal Bureau of Statistics reported. Among the sports products, the exports of footballs surged by 16.38 per cent by increasing from $31.931 million in July-September (2010-11) to $37.161 million during the same period of current fiscal year. The exports of gloves increased from $28.977 million last year to $.32.358 million this year, showing an increase of 11.67 per cent, according to FBS provisional figures. however, the exports of other sports good witnessed negative growth of 31.37 per cent by falling from $14.499 million in 2010-11 to $0.862 million in 2011-12. On the other hand, the exports of sports goods increased by 0.88 per cent during September 2011 as compared to the exports of the same month of last year. APP
federal board of revenue gives relaxation in tax return form ISLAMABAD: Federal Board of Revenue (FBR), on the reservations and apprehensions of its tax payers, has given relaxation by amendments in Annexure-D to the tax return form for the tax year 2011. FBR on Friday has issued a Circular No. 18 of 2011 (Income Tax), regarding amendments in Annexure-D to the tax return form for the tax year 2011 under which breakup of "education of children, spouse and him/her-self and traveling (foreign and local)" is made optional which can be included in Sr-9. Amendments include motor vehicle in use (whether owned or not) running and maintenance including lease rental and insurance" is simplified as, “Running and maintenance expenses of motor vehicle(s) and a new line has been provided to write the contribution by family members. STAFF REPORT
Profit for e-paper_Layout 1 11/4/2011 10:55 PM Page 5
Saturday, 05 November, 2011
Papandreou may get the 151 votes he needs tonight. But what does this mean for us? This instability is killing us
greek shop owner, panayiotis theofilas
Greek prime minister faces survival vote, bailout in balance AtHens
ReeK parliamentarians prepared to give their verdict on Prime Minister George Papandreou on Friday in a confidence vote which could decide the fate of both the nation's european bailout deal and the global economy. After intense pressure from european leaders, the government confirmed it had dropped plans to hold a referendum on the bailout package, which had threatened an immediate crisis in the euro zone and cast doubt on Greece's membership. But the future of the 130 billion euro deal remained hostage to wrangling among Greek politicians, much to the disgust of voters living through dire economic times. Papandreou says he announced the referendum on Monday - sending shockwaves through world markets -- to ensure political consensus for the deal. his opponents have since said they will back it conditionally but accuse him of clinging to power. "he is clinging to the steering wheel of a car that is heading over a cliff," Yannis Mihelakis, spokesman for the conservative New Democracy party, told Mega TV. Opposition politicians want Papandreou's resignation and early elections as a price for their support for the bailout deal -- which aims not only to save Greece from bankruptcy but prevent its problems engulfing bigger euro zone economies. For euro zone leaders -- and Greece's battle to avoid a debt default -the worst possible outcome would be a
stalemate, prolonging the agony over the 130 billion bailout which euro zone leaders agreed only last week. Finance Minister evangelos Venizelos promised to drop the referendum plan in telephone calls to european leaders, his ministry said.
TOO TIGHT TO FORECAST
Analysts said Friday night's parliamentary confidence vote, which Papandreou called when he announced the referendum plan, was too tight to forecast. however, they had a hunch that Papandreou might just scrape through even though 24 hours earlier his socialist government was on the verge of collapse. "This is the first confidence vote in many many, years where we cannot tell what will happen in parliament. My feeling is that the prime minister will probably have a positive outcome today," said Costas Panagopoulos, head of Alco pollsters. PASOK has 152 deputies in the 300-member parliament. But one lawmaker said that while she would stay in the party, she would not back the government in the confidence vote, meaning Papandreou could count at most on the support of 151 deputies. Only one more defection would strip the government of its majority and probably trigger an early election. electoral mathematics meant little on the streets of Athens, where Greeks are struggling with spending cuts, higher taxes and soaring unemployment. "Papandreou may get the 151 votes he needs tonight. But what does this mean for us? This instability is killing us," said Panayiotis Theofilas, 52, father of two and a shop owner.
"Yesterday I spent all day in front of the TV, worrying. I couldn't work. What if they throw us out of the euro? We are finished." For many Greeks, Papandreou has turned into the villain rather than the tragic hero struggling to overcome economic, political and social problems that have built up over years. "The referendum was the worst idea Papandreou ever had. he turned the whole world upside down and now he wants a vote of confidence? how dare he? We are all very angry with him," said efi Peroyannaki, a 50-year-old shop assistant. "What happened this week was a disgrace. We looked bad and the europeans are already sick of paying for us."
On Thursday New Democracy leader Antonis Samaras dropped his opposition to the bailout, which is being pushed by Papandreou's PASOK party, on condition that a short-lived coalition government is formed to take the country to polls. That means the two main forces in Greek politics now back the deal, despite the new wave of austerity it demands -on top of cuts which have pushed the economy into recession and brought Greeks on to the streets in sometimes violent protests. however, in the fractured world of Greek politics this does not ensure the package will win rapid parliamentary approval. Samaras made Papandreou's stepping down a condition for forming a coalition to pass the bailout quickly through parliament and cancel the referendum. Papandreou told parliament he was not tied to his post. But people in Athens also had low expectations of the
opposition and its ability to work with PASOK. "Papandreou looks stupid and Samaras so arrogant. They have nothing in common and they don't agree on anything," said Theofilas. Through waves of austerity policies demanded by Greece's international lenders, Papandreou has carried the parliamentary group of his PASOK party with him, despite much grumbling within the ranks. But a steady trickle of defections has reduced his majority to the point that one or two waverers could inflict a defeat in the confidence vote, expected as late as midnight (2200 GMT).
Greeks gripped by the events gathered around newsstands to catch a glimpse of the headlines on Friday. The financial daily Kerdos captured the mood with its headline: "everything on a knifeedge", while the pro-government daily Tan Neap ran with: "A balancing act on the edge of a cliff." Papandreou has called on his PASOK party to rally behind him in the confidence vote. But his public bravado appeared to mask an acceptance that his term may come to an end soon. Government sources said Papandreou had struck a deal at a cabinet meeting on Thursday under which he would stand down after he had negotiated a coalition agreement with the cons e r v a t i v e opposition -- pro-
vided he survives Friday's vote. Papandreou admitted he had made a mistake in calling on Monday for the referendum on a bailout, the sources said. even some of his loyalists have suggested it was time for him to quit after they backed him at the confidence vote. "I do not want to humiliate my party's president -- the country's prime minister -- by toppling him tonight," PASOK lawmaker Telemachos hytiris told state television. "But I want him now to rise to the occasion as a prime minister who has won the vote of confidence with prestige and start discussions tomorrow on a unity government so the country can move ahead."
CORPORATE CORNER pemra briefs civil servants of 95th national management Course
that ePZA has taken steps to revive the 70 closed units by resolving their issues and has chalked out a strategy with collaboration of Board of Investment to promote new investments in the zone. he informed that with facilities like uninterrupted utilities i.e. electrical, water, gas and telephone and investor friendly environment, ePZA would hopefully be able to surpass set export target and achieve land mark $1 billion exports. PRESS RElEASE
usaid invites grant applications to strengthen citizens’ voice ISLAMABAD: The officers of 95th National Management Course visited headquarters of Pakistan electronic Media Regulatory Authority as a part of their Inland Study Tour (IST) to various government departments in order to have an insight on their role and functioning. Dr. Abdul Jabbar, Chairman, PeMRA welcomed the delegation along with Director General (Licensing) Sardar Arfan Ashraf Kahan and Director General (Operations) Mr. Muhammad Farooq. The delegation was headed by Mr. Muhammad Ismail Qureshi, Rector National School of Public Policy (NSPP). PRESS RElEASE
export processing Zone authority holds 98th bod meeting KARAcHI: Muhammad Tariq hassan, Chairman export Processing Zone Authority presided the 98th ePZA BoD meeting at ePZA head office, Karachi. The meeting was attended by Abdul Sattar Khokhar, J.S. Ministry of Industries; Zameer Ahmed, Secretary Industries, Govt. of Sindh; Zaigham Adil, executive Director AlTuwairqi Steel Mill; Sikandar Ahmed Rai, Additional Secretary Board of Investment and Abdur Rauf Member BoD. On this occasion, while talking to media, Muhammad Tariq hassan said
ISLAMABAD: Recognising the fundamental need to build positive relationships and foster effective engagement between government and citizens. USAID’s Citizens’ Voice Project announced its first grants cycle inviting applications to strengthen citizens’ voice and public accountability. The goal is to improve engagement between citizens of Pakistan and the government on priority project-supported initiatives to advance good governance objectives. These grants aim on improving Water Rights’, Citizens’ Oversight of Municipal Services’ and energy Sector Oversight and Policy Reforms. The project will have national coverage with focus on some priority districts in various regions. PRESS RElEASE
Karachi plans on welcoming delegates at uae expo 2011 KARAcHI: The preparations are in full swing to organise the first ever UAe expo 2011 – Magnificent 7, from November 30 to December 02 at Karachi expo Centre. Plans have been finalised to give the metropolis a festive look in order to welcome delegates from seven emirates during the mega event. The occasion will mark 40 years of Pak-UAe friendship and accordingly the city will be decorated with special monuments and other
decorative props. The event finale will be marked with the grand celebration of UAe’s National Day on December 2, 2011. PRESS RElEASE
Qatar airways eyes underserved africa for expansion KAMpALA: Qatar Airways’ entry into two African cities this week marks the first of potentially more route launches on the Continent as the airline’s CeO spelled out a commitment to grow its regional operations. The Libyan port city of Benghazi and Ugandan city of entebbe have joined Doha-based Qatar Airways’ global network taking the carrier’s African portfolio to 16 destinations. In addition to the passenger flights launched to Uganda, Qatar Airways also began the first of twice-weekly dedicated freighter services to entebbe. PRESS RElEASE
project was approved by the board of Universal Service Fund, in its 25th Board Meeting chaired by the Prime Minister in his capacity of being the Minister of IT. PRESS RElEASE
govt announces eid-ul-azha holidays LAHORE: On the auspicious occasions of eid-ulAzha and Iqbal Day, the Government of Pakistan has announced holidays from Monday, November 7, 2011 to Wednesday, November 09, 2011. Consequently, Lahore Stock exchange shall remain closed for the same period. The exchange will re-open on Thursday, November 10, 2011. PRESS RElEASE
nbp’s additional 71 branches to remain open on saturday KARAcHI: Besides NBP's 287 authorised branches that are open on Saturdays; additional 71 branches will remain open and perform their approved functions on Saturday, 5th November, 2011. The purpose of opening of another 71 branches is to facilitate pensioners and governments’ salaried individuals before eid. PRESS RElEASE
Peshawar: Bilal Mustafa managing director cEO Bok cutting cake on Bok 20th anniversary celebrations along with Bok senior officers at Bok head office, Mir Javed hashmat and others were also present on the occasion. PRESS RELEASE
usf to set up tele-medicine networks ISLAMABAD: Universal Service Fund (USF) awarded a contract worth Rs59 million to setup telemedicine networks around Rawalpindi, Karachi and Multan, using the already deployed broadband networks. The contract between Oratier Technologies and USF was signed by CeO-USF, Parvez Iftikhar and Director (Projects) Oratier, Zia ul Islam in the presence of Federal Secretary IT, Mr. Saeed Ahmad Khan at the Ministry of IT. The
ISlAMABAD: Irum Shahzad (cOO Eman Ad) and Mohsin Baig(cEO)on the signing ceremony of AFP and ONlINE. PRESS RELEASE
Profit for e-paper_Layout 1 11/4/2011 10:56 PM Page 6
Saturday, 05 November, 2011
06 Markets top 10 sectors
52% 09% 10% 05% 07%
01% 02% 02% 10% 01%
Construction & Materials Electricity Banks
Fixed Line Telecommunication
Oil & Gas
STOCK MARKET HIGHLIGHTS KSE-100 LSE-25 ISE-10
Index 11957.30 3190.08 2642.25
Change +149.84 +40.59 +51.49
Volume 47,314,598 1,849,389 23,100
Market Value 3,423,852,841 66,889,284 1,198,175
Major Gainers Company Bata (Pak) Ltd. Siemens Pak Wyeth Pak Limited P.S.O. National Ref.XD
Open 775.00 900.00 679.40 249.16 322.00
High 813.75 924.75 713.37 261.50 334.50
Low 775.00 860.00 690.00 252.00 320.61
Close 812.31 924.75 701.73 260.94 331.31
Change Turnover 37.31 276 24.75 150 22.33 127 11.78 2,357,503 9.31 178,048
3200.00 440.00 5749.99 209.99 2700.00
3100.10 421.00 5507.00 200.00 2599.99
3152.15 424.74 5603.60 202.05 2604.86
-47.85 -8.82 -7.74 -2.95 -2.81
top 5 perForMers sector wise symbol
404.69 120.40 6.98 93.80 334.90
396.00 116.10 6.75 89.30 308.94
396.87 117.57 6.77 92.03 310.82
-6.98 -1.21 -0.12 1.02 -14.37
61,485 833,559 399,510 91,674 314,938
15.00 31.05 71.99 143.49 40.80
14.00 29.29 65.17 137.50 37.06
15.00 29.30 70.64 139.79 37.39
0.00 -1.53 2.05 -0.90 -1.57
1,500 2,485,646 855 4,017 244,529
Oil and Gas Attock PetroleumXD Attock Ref.XD Byco Petroleum Mari Gas Co.XB National Ref.XD
403.85 118.78 6.89 91.01 325.19
411 135,810 12 612 106
Agritech Ltd. Arif Habib CoXDXB SD Biafo IndustriesXD Clariant Pakistan Dawood Hercules
15.00 30.83 68.59 140.69 38.96
Engro Corp Jah.Sidd. Co. Fatima Fert.Co. Bank Al-Falah D.G.K.Cement
130.18 5.83 6.18 23.97 11.02 21.55
136.40 5.82 24.47 11.50 21.94
132.25 6.08 23.62 11.07 21.60
135.84 0.25 24.17 11.47 21.81
5.66 4,657,687 4,307,582 0.20 4,166,506 0.45 3,677,519 0.26 3,028,266
Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)
Per Tola (PKR) 56,826.00 51,608.00 1133.00 1025.00
Per 10 Gm (PKR) 48,771.00 44,245.00 973.00 880.00
Per Ounce US$ 1756.00 – 35.05 –
Interbank Rates US Dollar UK Pound Japanese Yen Euro
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
Crescent Steel Dost Steels Ltd. Huﬀaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.
23.90 1.45 8.93 34.98 11.56
2.00 51.11 11.79 8.11 7.66
24.70 1.50 9.00 35.00 11.52
23.25 1.41 8.60 34.00 11.00
23.59 1.45 9.00 34.50 11.00
-0.31 0.00 0.07 -0.48 -0.56
40,885 8,285 3,035 25,300 63,850
29.62 2.49 41.17 7.72 22.00
2.00 51.99 12.00 9.11 8.19
1.90 50.81 11.60 8.11 7.50
1.92 51.02 11.91 8.11 8.01
-0.08 -0.09 0.12 0.00 0.35
26,799 108,952 4,762 100 197,042
Ados Pakistan AL-Ghazi Tractors Bolan CastingXD Ghandhara Ind. Hinopak Motor
Buy 86.00 117.40 136.56 1.0891 83.45 10.85 23.28 22.80
International Oil Price WTI Crude Oil
Sell 86.70 119.67 139.09 1.1120 87.36 11.19 23.64 23.14
Brent Crude Oil
6.93 184.30 28.50 7.00 108.00
30.40 3.25 42.00 7.95 22.00
28.14 2.21 39.12 7.01 20.95
28.14 3.08 39.60 7.65 22.00
-1.48 0.59 -1.57 -0.07 0.00
14,022 614,084 16,802 993 70
58.00 169.52 117.00 2.63 168.53
7.90 184.30 28.50 6.90 108.00
6.93 184.30 28.25 6.25 102.60
6.93 184.30 28.26 6.70 108.00
0.00 0.00 -0.24 -0.30 0.00
10 90 5,055 5,004 2
58.00 170.00 118.00 2.79 169.99
58.00 168.50 117.00 2.43 168.53
58.00 168.94 117.94 2.51 168.53
0.00 -0.58 0.94 -0.12 0.00
2,000 240 302 39,802 31
Beverages Murree Brewery Co. Shezan Int’l
8.00 1.75 23.52 28.10 11.58
8.00 1.75 23.90 28.50 11.70
110.49 111.43 150.02 150.00
(Colony) Thal AL-Qadir Textile Amtex Limited Annoor Textile Artistic Denim XD
1.70 11.25 1.67 13.00 18.50
1.11 11.25 1.70 14.00 18.50
AHCL-NOV AHCL-OCT ANL-OCT ATRL-NOV ATRL-OCT
31.00 30.82 4.01 120.42 119.16
31.00 30.82 4.25 121.50 120.30
Abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. Highnoon (Lab) IBL HealthCare XD
102.49 80.00 68.92 28.09 10.92
103.00 80.00 68.26 28.09 11.92
109.00 111.18 145.05 145.58
P.T.C.L.A Pak Datacom LtdXD Telecard Limited Wateen Telecom Ltd WorldCall Telecom
10.89 35.03 0.95 .68 1.13
10.98 34.01 1.00 1.70 1.19
P.T.C.L.A Pak Datacom Ltd. Telecard Limited Wateen Telecom Ltd WorldCall Telecom
11.47 31.65 1.09 1.51 1.32
8.00 1.74 22.54 27.88 11.50
0.00 -0.01 -0.98 -0.22 -0.08
53 23,501 91,748 70,820 2,995
1.11 11.25 1.45 14.00 18.25
1.11 11.25 1.60 14.00 18.49
-0.59 0.00 -0.07 1.00 -0.01
1,000 500 132,822 1,000 1,049
29.45 29.28 3.90 117.90 116.50
29.51 29.32 3.95 119.21 117.71
-1.49 -1.50 -0.06 -1.21 -1.45
376,500 516,500 24,500 201,000 200,000
101.00 78.10 67.01 27.65 10.99
102.10 80.00 68.06 28.09 11.92
-0.39 0.00 -0.86 0.00 1.00
1,283 45 1,557 100 25,154
10.71 34.01 0.90 1.65 1.06
-0.18 -1.02 -0.05 -0.03 -0.07
470,873 500 68,502 152,954 235,458
10.65 34.01 0.90 1.52 1.00
11.77 32.66 1.09 1.68 1.35
11.42 31.65 1.01 1.47 1.15
11.64 32.66 1.03 1.50 1.28
0.17 1.01 -0.06 -0.01 -0.04
4,752,418 1,430 194,249 449,333 649,632
0.50 36.38 0.75 1.70 41.36
0.50 36.50 0.77 1.70 41.80
0.36 36.10 0.70 1.56 41.25
0.50 36.10 0.71 1.60 41.53
0.00 -0.28 -0.04 -0.10 0.17
1 1,022,035 38,682 752,756 220,355
63.16 11.15 5.94 11.15 29.95
64.00 11.29 6.08 11.35 30.20
62.50 10.75 5.79 10.70 29.55
62.69 10.89 5.83 10.89 29.91
-0.47 -0.26 -0.11 -0.26 -0.04
32,694 944,906 319,287 1,929,563 175,090
Electricity Genertech Hub Power Co.XD Japan Power K.E.S.C. XR Kot Addu PowerXD
Banks Allied Bank Ltd Askari Bank B.O.Punjab Bank Al-Falah Bank AL-Habib
Non Life Insurance 7.00 1.70 22.50 27.50 11.50
Fixed Line Telecommunication
Automobile and Parts Agriautos Indus.XD Atlas Battery Ltd. Atlas Honda Ltd. Dewan Motors Exide (PAK)
Abdullah Shah Colony Sugar Mills Engro Foods Ltd. Habib Sugar Mills Habib-ADM Ltd.XD
Pharma and Bio Tech
86.0200 137.6836 1.1020 118.3979
General Industrials Cherat PackagingXD ECOPACK Ltd Ghani Glass LtdXD MACPAC Films Merit Pack
Construction and Materials Al-Abbas Cement Attock CementXD Berger Paints Bestway Cement Cherat Cement
Industrial metals and Mining Volume Leaders
Nestle PakistanSPOT 3200.00 Attock Petroleum 433.56 UniLever Pak Ltd. 5611.34 Service Industries 205.00 Rafhan Product 2607.67
Adamjee Ins XD Ask.Gen.Insurance Atlas Insurance Central Ins Co. Century Insurance
49.64 8.50 34.49 48.67 7.16
49.50 8.50 35.00 50.00 7.50
48.60 8.10 33.86 48.00 7.06
49.40 8.47 33.99 49.79 7.50
-0.24 -0.03 -0.50 1.12 0.34
6,785 1,651 1,110 3,909 1,500
13.50 1.40 65.53
14.50 1.40 65.53
0.00 0.00 0.00
2 1 157
0.30 14.89 17.71 0.86 7.25
-0.02 -1.00 -0.25 -0.02 -0.01
9,463 13,487 19,659 9,495 2,100
Life Insurance American Life East West Life Assur EFU Life Assur
14.50 1.40 65.53
14.50 2.34 68.80
Financial Services AMZ Ventures A Arif Habib InvesXD Arif Habib Ltd. Dawood Equities Invest & Fin.Sec.
0.32 15.89 17.96 0.88 7.26
0.35 15.50 18.34 1.09 7.26
0.22 14.89 17.20 0.86 7.25
Equity Investment Instruments 1st.Fid.Leasing Mod 1.70 3.98 AL-Noor ModarXD Allied RentalModXDXB 19.90 Atlas Fund of Fund 6.00 B.F.ModarabaXD 5.56
1.50 4.00 19.90 6.10 5.56
1.50 3.60 19.88 5.90 5.00
1.50 4.00 19.90 5.90 5.56
-0.20 0.02 0.00 -0.10 0.00
15,000 25,100 3,700 414,000 7
13.90 32.00 34.50 7.00 32.00 16.00 70.00 1.65 70.00 109.00 62.08 133.00 29.10 16.50 1.89 10.68 1.00 2.00 1.11 17.95 20.00
14.02 32.07 35.60 7.00 32.14 16.00 70.00 1.75 70.15 112.81 62.59 140.00 29.28 16.50 2.20 10.80 1.06 2.12 1.14 18.07 20.33
-0.11 0.00 0.55 -1.00 -0.54 -0.03 0.71 0.05 -0.85 0.00 -2.73 0.00 -0.57 0.01 0.20 0.05 0.06 0.11 -0.02 0.14 -0.07
7,408 135 15,179 693 1,104 6,201 1,504 70,965 7,612 5 400 2 31,895 1,500 90,999 551,671 8,455 977,923 311,371 1,466 40,702
Miscellaneous Century Paper Pak Paper Prod.XD Security Paper Johnson & Philips Pakistan Cables P.N.S.C.XD Pak.Int.Con. SD TRG Pakistan Ltd. Murree BreweryXDXB Shezan Inter.XD Pak Tobacco Co. Philip Morris Pak. Shifa Int.Hosp.XD Hum Network XD P.I.A.C.(A) P.T.C.L.A Telecard Limited Wateen Telecom Ltd WorldCall Telecom Sui North GasXDXB Sui South GasXDXB
14.13 32.07 35.05 8.00 32.68 16.03 69.29 1.70 71.00 112.81 65.32 140.00 29.85 16.49 2.00 10.75 1.00 2.01 1.16 17.93 20.40
14.35 33.00 36.20 7.00 33.88 16.06 70.99 1.78 73.20 112.81 65.50 140.00 29.51 16.50 2.24 10.95 1.09 2.20 1.24 18.29 20.50
Mutual Funds fund Alfalah GHP Cash Fund Askari Islamic Asset Allocation Fund Askari Islamic Income Fund Askari Sovereign Cash Fund Atlas Income Fund Atlas Islamic Income Fund Atlas Money Market Fund Atlas Stock Market Fund Crosby Dragon Fund
oﬀer 501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800
repurchase 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
nav 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
fund HBL Money Market Fund HBL Multi Asset Fund HBL Stock Fund IGI Income Fund IGI Stock Fund JS Principal Secure Fund I JS Principal Secure Fund II KASB Cash Fund Lakson Equity Fund
oﬀer 100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000 106.3763
repurchase 100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000 103.2779
nav 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087 103.2779
Profit for e-paper_Layout 1 11/4/2011 10:56 PM Page 7
“I have the results of your brain scan. We found evidence of extensive PowerPoint damage.”
Saturday, 05 November, 2011
A big problem is staring you in the face, and there's not much you can do to avoid it. That's a good thing, of course, as you need to handle it, but that doesn't make it any easier to tackle.
Your friends have got your back -but they need your support in return! It's a good time for you to show those who mean the most to you what you can do for them. Little things are best.
Your working life is important now -- so much so that you might find it hard to take anything else seriously. That isn't really a big deal, as long as you are willing to dive in headfirst.
See if you can clear important work out of the way quickly -- or better still, put it off 'til tomorrow or some other time. You need to make sure that you've got time to let your mind wander!
Money issues are still on your mind, but you need to either put them off for another day or tackle them on your own -- getting help from others just complicates issues now. You can handle it!
Remember that everything changes today as you work through your weird energy -- you need to make sure that you're dealing with life as it really is, not just how you want it to be.
Your schedule is quite unpredictable today -- little things turn into big deals, and you may find yourself postponing almost everything you can just to keep up with evolving circumstances.
Your spiritual and interpersonal energies are in sync right now, and that could give a huge boost to your love life -- if you want one! Things might be as good as they can get, but try pushing a little.
Your energy just can't seem to get going today, but that's fine -- you need some down time anyway! Chill out and let things happen on their own. You can get back to business tomorrow.
You make a favorable impression on the right people today -so much so that you might find yourself coasting into a new position sooner than you think! Your energy is just right for making connections, too.
Try not to spend more than you take in today -- though that is much easier said than done! It's a good time for you to leave your credit cards in the freezer or somewhere else you can't easily get to them.
Someone needs your help, though you need to use your intuition to figure out who it is and what they want. Fortunately, your ability to tune into others' needs is quite strong right now.
hOW TO PlAy fill in all the squares in the grid so that each row, column and each of the squares contains all the digits. the object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once.
nation nicotine orange pact pant pastor peach rancid riotous search sect sham side slab slat slip tart teller toll trash turmoil
ThE NAME OF ThE gAME
chESS White to play and mate in three moves 8
7 6 5 4 3
1.Qxh6+ gxh6 2.Rxh6+ Rh7 3.Bxf6# 1-0
1 Try to get the girl? (3) 2 Eat — bird — believe (7) 3 In a highly excited state (4) 4 contrivance for holding a broken bone in position (6) 5 Diplomatic mission (8) 6 Type of fruit (5) 7 Terrifying dream (9) 10 Vehicle collecting young students (6,3) 12 Rubbish holder inside a rubbish holder (3,5) 15 End points (7) 16 cold summer drink (3,3) 18 Espresso with frothy milk (5) 20 (cause to) stumble (4) 23 Manage (3)
beach boost capital clinic crazy date dread drill drink elegance factor force gallop handsome joust ladder laugh leaf lens litmus lottery lumber
1 Very sagacious (4,2,7) 8 having a run of luck (2,1,4) 9 Soviet forced labour camp(s) (5) 10 crystalline substance used to season food (4) 11 Natural inclination (8) 13 honolulu's state (6) 14 A Shakespearean heroine (6) 17 Surface film, leaking from a ship or well (3,5) 19 Factually correct (4) 21 Relay race stick (5) 22 Small hunting dog (7) 24 Negative propaganda aimed at damaging a person's reputation (5,8)
Profit for e-paper_Layout 1 11/4/2011 10:56 PM Page 8
Saturday, 05 November, 2011
local importers at large import tinplate and CrC from neighbouring country under the garb of waste and scrap in order to evade duties of the government
sbp pumps rs338.7b into banking system to run cyclical debt wheel KARACHI STAFF REPORT
Kbp warns the govt about launching a country-wide protest movement g Country to face acute urea shortage during rabi season lAHoRe
UCCeSSFUL governments in Pakistan always try to find out political solutions to economic issues. Alarmingly high urea price spiral also indicates the same problem as both the federal and provincial governments are blaming each other, while urea prices have skyrocketed due to heavy profiteering. Despite the fact that Pakistan has a world class urea manufacturing infrastructure and surplus production capacity, the country is facing acute urea shortage that has pushed its prices up to Rs1,800 per bag. But the irony of the situation is that governments, politicians, industry and urea dealers are still blaming each other. On numerous occasions, Punjab government has shifted urea shortage responsibility to Islamabad, but it never tried to evolve a fool-proof price control system. Senior provincial leadership is merely trying to settle its score with the federal government by giving press statements, while hoarders are on a money minting spree. On the other hand, urea manufacturers are crying against natural gas curtailment. They point out that they have uninterrupted natural gas supply agreements for 12 months and have the first priority after domestic and commercial consumers. But their supply is being curtailed by the gas utility companies. even a number of court judgments could not provide them relief due to various political reasons, they underline. Speaking to Profit, an unnamed official of a urea company stressed that the country would face an acute urea shortage during this Rabi season mainly because of mismanagement at the part of government and gas utility companies. “Manufactures cannot be blamed for the urea price increase. The government’s ad-hoc poli-
cies are responsible for this crisis. Industry had gradually increased urea prices by Rs750 per bag in 32 years, but nobody is willing to understand why the industry has to increase urea prices by Rs900 per bag in just 24 months, he questioned. Answering a query, he said urea producers had vast dealers network, mainly in rural areas, which made it virtually impossible for the industry to ensure price stability. he also shifted the burden on the government by avoiding the question that industry was equally responsible in profiteering in urea sales as it did not mention retail price on fertiliser bags. Trading Corporation of Pakistan (TCP) is another player in the market, which has the responsibility to ensure availability of essential commodities at reasonable price. It has been assigned to intervene in the market if prices of some essential commodities swell in extraordinary manner. But, on every instance, it reacts too late. In the present urea shortage, the state machinery has shown the similar attitude again. Industry has been warning for last three months that in the Rabi season the country may face a urea shortage of some 1.4 million tonnes, but nobody has taken any action. Now when the crisis-like situation has been created, and farmers are protesting against unprecedented price hike, the government has opened tenders for urea import. In the whole mess, farmers, especially peasants, are being affected badly. Rural economy in the country is mainly running on credit. Farmers procure seeds, fertilisers and pesticides from agents and dealers on credit, who exploit the situation and charge exorbitant rates as there is no effective price control system in place. It is interesting to note here that the country has 6.9 million tonnes installed capacity of urea fertiliser
against the national requirement of 6.3 million tons. Urea is a major fertiliser used in Pakistan, owing to its high nitrogen content of around 46 per cent. Figures indicate that some 90 per cent fertiliser requirements were met through urea in 2010, while the rest were fulfilled through di-ammonium phosphate (DAP) and other types of fertilisers. Kisan Board Pakistan (KBP) has warned the government about launching a country-wide protest movement against the government if demand of the growers ensuring availability of fertilisers is not met forthwith. This warning issued by the KBP District branches heads, while leading the protest demonstrations arranged by the board, on Friday, throughout the country to press the government for ensuring availability of fertilisers at control price. According to the KBP Central Secretary Information haji Muhammad Ramzan demonstrations were especially held in South of Punjab and Sindh against shortage of fertiliser and its black marketing. These demonstrations were held on the call of KBP Central President Sardar Zafar hussein in Multan, Dera Ghazi Khan, Rajanpur, Jampur, Muzaffargarh, Layyah, Vehari and other districts. While in Sindh, these demonstrations were held in Ghotki, Jacoabad, Kashmor, Sukkur, Larkana, Shikarpur and Naushehro Feroze, Ramzan added. Speakers addressing the demonstrators condemned the anti-grower policies of the present government and urged that fertilisers should be made available at the earliest and prices of the agricultural commodities should be fixed a fresh. ‘Growers are unable to even recover their input cost due to increasing prices of fertiliser, pesticides and other agricultural inputs,’ they alleged. They warned the government of a protest movement after eid if their demands are not met.
tax evasion in tinplate imports causing losses to national exchequer g
local markets flooded with tinplate and CrC g heavy quantities of tinplate imported from neighbouring countries KARACHI
he local markets are flooded with tinplate and Cold Roll Coil (CRC) that have been imported through misdeclaration of goods via Iran and Afghanistan by availing zero-rated duty advantage. The sources at local manufacturers said that the local importers at large import tinplate and CRC from neighbouring country under the garb of waste and scrap in order to evade duties of the government. They said that the traders declare import of scrap hS Code number 7204, which is zero-rated, but import
tinplate and other material in connivance with officials of custom and other government departments. These traders are evading millions of rupees revenues of the government and involved in trading of tinplate to their buyers of different sectors in the domestic market, they added. They said that the local manufacturers have informed the custom authorities several times about the illegal trade of tinplate under misdeclaration with solid evidences but they are reluctant to take any notice and are disinterested to examine duly the import of scrap and waste. The sources said that the tinplate imports are on the rise as it is usually sup-
plied to major cities where big go-downs have been established by the local traders. Recently, it was found that heavy quantity of tinplate was imported under the garb of scrap from the neighbouring country’s renowned steel company and is constantly being smuggled unabated, they added. They said that industry is unable to compete with local traders in the local market as majority of the different sectors purchase tinplates from illegal importers or traders. They said that the local tinplate makers urged the government to impose ban over the import of waste and scrap from Iran and Afghanistan so that it could earn revenues from the legal
import of tinplate. The sources urged the government to protect the local tinplate industry and impose duties on the imports of scrap and waste and get sales tax, federal excise duty and advance income tax etc. They also mentioned that the custom authorities should treat value as $600 of the imported waste and scrap tinplate and charge duties at Rs10,000 PMT which would stop under-invoicing on imports and at the same time will generate the revenue for the government. They said that it is high time the authorities play its due role in order to encourage local manufactures and provide them protection in long-run.
he central bank on Friday pumped a huge sum of Rs338.700 billion into the money market to cater to the liquidity needs of the banks which had lent over Rs293.87 billion to the cash-strapped government just a couple of days back on November 2. The State Bank of Pakistan (SBP) Friday conducted its 7-days reverse repo operation and injected Rs338.700 billion into the banking system at 11.52 per cent annual rate of return. The offered amount was worth Rs359.550 billion but the State Bank accepted Rs338.700 billion. excessive budgetary borrowings by the cash-strapped federal and provincial governments are believed to have created a severe liquidity crunch in the money market. The rupee shortfall in the banking system is believed to have been so compelling that the SBP has been injecting liquidity into the money market during the whole quarter of the current financial year. The SBP record shows that during July 17-October 28, the central bank pumped a huge sum of over Rs3.204 trillion into the rupee-starved banking system through conducting some 25 reverse repo operations. It was on June 13, when the regulator had conducted the last mop-up operation to wipe out the excess Rs34.500 billion liquidity from the market.
fbr extends date of tax payment IslAmAbAD STAFF REPORT
eDeRAL Board of Revenue (FBR) extends the date of payment of tax along with the return of total income statement of final taxation for the tax year 2011. FBR on Friday has issued circular number 17 regarding extension in the date of payment of tax along with the return of total income statement of final taxation for the tax year 2011. It has been represented by the All Pakistan Tax Bar Association and other trade bodies of the country that as the date of filing of Return of Total Income Statement of final taxation for the tax year 2011 has been extended up to 21st November, 2011. The fact that eid-ul-Azha is approaching and many taxpayers are out of the country for performance of hajj, the date of deposit of tax may also be extended up to 21st November, 2011, said FBR. Therefore, in exercise of powers conferred under section 241A of the Income Tax Ordinance, 2001, the FBR is pleased to extend the date of deposit of tax liability along with the return up to 21st November, 2011. FBR had extended the date four times due to the inconsistency in its system and now it is finally allowing the tax payers to pay their tax and tax returns till 21st November 2011.
Published on Nov 4, 2011