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empowering women – elevating the nation and economy Page 4-5 In search of business confidence Page 3 Engro raises urea prices Page 7

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Saturday, 07 January, 2012

Japan keen on financing Thar coalfield transmission line of 10,000 MW from Thar coalfield within next 5-10 years national Transmission and Despatch Company with the support of Asian Development Bank, has initiated a feasibility study for laying 1300 km of transmission line to initially disperse upto 3000 MW from the Thar coal field to the national grid. The source said total estimated funding required for laying transmission line was estimated $1 billion, which could be only arranged through international donor agencies.

HUGE COAL RESERVES Pakistan has huge coal reserves mainly in Sindh estimated at 186 billion tonnes, Punjab 235 billion tonnes, Balochistan 217 billion tonnes, Pukhtoonkhwa 90 billion tonnes and Azad Jammu Kashmir nine billion tonnes. These coal reserves can be used for affordable power generation for about 200 years.




aMer sIaL

n a major development, Japan has shown interest to finance the much needed laying of the transmission line upto the Thar coalfield, which is needed to expedite power generation from the coalfield.

INTEREST EXPRESSED An official source said that interest was recently expressed by the Japan International Cooperation Agency (JICA) in a meeting with the officials of the Thar Coal and Energy Board (TCEB). JICA asked TCEB officials to approach Japanese government through Foreign Office, for financing the project as the agency has the resource to finance the project. Japan has been historically averse to finance coal power projects

5th largest coal reservoir lahore: Thar coal is one of the 5th largest coal reservoir in the world having a total of 850 Trillion cubic feet of reserves which can possibly enable Pakistan to produce enough electricity to power the entire country for the next 4 to 5 decades if not more. The reserves are so massive that they dwarf the oil reserves of 375 billion barrels of Saudi Arabia & Iran put together. The head of the Project Dr Samar was quoted by media as having said that Thar Coal Project had the potential to turn Pakistan into an energy surplus country in a short span of 8 to 10 years. According to him, Pakistan can produce 50,000 MW of electricity for another 100 years and produce 100 million barrels of oil for 500 years. Electricity produced from the Thar coal deposit is said to cost only Rs 4 per unit, compared to Rs 14.74/KWh being generated by the RPPs. staff report due to environmental issues, but its stance has dramatically changed after the damage to the Fukushima Daiichi nuclear power plant, after it was hit by tsunami on March 11, 2011, the source said adding that now they were keen to finance coal power proj-

ects even in other provinces.

FEASIBILITY STUDY Keeping in view possible evacuation

Recently an underground coal gasification pilot project at the Thar coalfield managed by eminent scientist Dr Samar Mubarakmand has successfully started. He said requested the prime minister to arrange immediate funding of Rs2.4 billion and remaining 7.8 billion during the next financial year to complete power generation phase of the project to start providing 100 MW of electricity before the end of 2013.

CHINESE INTEREST Sindh Engro Coal Mining Company (SECMC) has been formed and it has completed a bankable feasibility by engaging world renowned companies, including RWE of Germany and Sinocoal of China. The first mine and power plant is expected to be commissioned by 201516. The estimated cost for the project is $3.6 billion. Chinese companies have shown interest in the project.

govt asked to remove gaps in anti money laundering regime ISLAMABAD staff report


ministerial committee on Friday asked the finance ministry to urgently take steps to fill gaps found in the existing anti money laundering regime and enhance the capacity of law enforcement agencies for implementing the regime. Finance minister Dr Abdul Hafeez Shaikh chaired the ministerial committee meeting, which was attended by minister for foreign affairs, minister for law, governor state bank of Pakistan, chairman Securities and Exchange Commission of Pakistan and other senior officials of the concerned departments. An official statement said the meeting reviewed

There has been due recognition of efforts by Pakistan at various international forums, however, it was noted that more has to be done to fill the gaps

current status of anti money laundering regime, pace of implementation of various reforms under the law and capacity building of law enforcement agencies responsible for administering the law. The council noted that significant progress has been made over the last four years in establishing the regime based on international best practices. It noted that there has been due recognition of efforts by Pakistan at various international forums; however, it was noted that more has to be done to fill the gaps that still exist. It was also noted that despite a number of anti terrorist cases, the prominence required to build anti money laundering aspects in such cases required further strengthening. There was a need to increase capacity of law enforcement agencies to devote due attention to incidents of terrorism. The council urged the financial management unit of ministry of finance to urgently take steps to fill the gaps.

Banks hold over Rs70b excess cash reserves g g g

Conventional banks’ cumulative excess cash accounts for Rs41.023b Islamic banks’ cumulative excess cash amounts to Rs29.442 billion Regulator decides to publish banks’ possession of liquidity KARACHI IsMaIL DILaWar

OMMERCIAl banks held over Rs70 billion of excess cash reserves during the week spanning between 23rd and 29th December; thus adversely impacting smooth functioning of the interest rate corridor.


POCKETING HANDSOME AMOUNTS Central bank reported Friday that banks, presently pocketing handsome

amounts through investing massively in the risk-free government securities, possessed Excess Cash Reserves (ECRs) worth over Rs70.464 billion during the said week.

MASSIVE NUMBERS A breakup shows that during the week under review conventional banks’ cumulative excess cash accounted for Rs41.023 billion, while that of the Islamic banks amounted to Rs29.442 billion. SBP figures re-

veal that while conventional banks were, collectively, raising an excess cash of Rs5.860 billion on daily average basis their competitors in the Islamic banks were reserving the same to the tune of Rs4.206 billion. A weekly review of the banks’ total ECRs show that the banks held Rs21.278 billion on December 23rd, Rs21.278 billion on December 24th, Rs21.278 billion on December 25, negative Rs10.552 billion on December 26th, Rs4.995 billion on December 27th, negative Rs5.409 billion on December 28th and Rs17.596 billion on December 29th of the last year. These amounts also include the pre-mature encashment that banks reported to central bank in line with BSD circular no. 09 issued by SBP in July 2006.

IMPLICATIONS Alarmed by the banks’ increasing ECRs, central bank believes that banks’ practice to reserve excess liquidity was putting adverse affect on the smooth functioning of the interest rate corridor. “Excess cash reserve not only adversely impacts smooth functioning of the interest rate corridor,” said SBP in a previous statement. State Bank said additional ECRs had “implications” for the banks’ own liquidity management.

WEEKLY PUBLICATION The regulator has decided to make public on weekly basis the banks’ possession of the liquidity that is in excess of

CRR. “In order to bring more efficiency in the money market operations of banks, State Bank of Pakistan has December to publish the weekly data of Excess Cash Reserves maintained by commercial banks over and above the minimum required Cash Reserve Requirement,” the bank said.

APPREHENSIONS Regulators in State Bank are concerned over the country’s growth prospects as the risk-averse banks are extending extensive loans to the fundsstarved central and provincial governments instead of lending to the growth-oriented private sector. ECR is an amount that the banks posses over and above the minimum required Cash Reserve Requirement (CRR).

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Saturday, 07 January, 2012


Scrapping Monsanto deal

Seed aSSoCIaTIon

lauds government LAHORE staff report

EED Association of Pakistan (SAP) President Shahzad Ali Malik has appreciated Punjab government for scrapping the deal with Monsanto saying that Monsanto proposed BT cotton model in Pakistan would have created its monopoly and in turn would have endangered the existence of the national seed sector. Shahzad was commenting on a recently published news item in the press and said by not accepting the deal, Punjab government has avoided an unnecessary financial burden as Monsanto’s royalty demands for Bollgard-2 technology were too high and aimed at creating a monopoly. The national seed sector appreciates the need to intro-


duce technology but in an open and fair way so that all seed companies operating in Pakistan can have an even playing field,” he said in a statement issued here Friday. Throughout last three years, Monsanto has been demanding a per acre ‘royalty fee’ for its technology but failed to demonstrate that its technology would significantly increase yields or be effective against Cotton leaf Curl Virus (ClCV) or mealy bugs which are the main crop pests in Pakistan. The socalled best technology was in fact ineffective against Pakistani cotton crop pests like ClCV, White Fly and Mealy bugs so its utility and financial guarantees would have cost the Punjab government with no added benefits than current varietal seeds. “Government should concentrate on improving research and de-

velopment institutes and create linkages with eminent foreign institutes which will allow our scientists to gain better understanding of the local crop pests and improve the technologies relating to agric u l ture.”

Shahzad added. Punjab government had explored the possibility of introducing BT Cotton technology (Bollgard-2 and Round up Ready Flex) but the company demanded guarantees and royalties which virtually meant guaranteeing pay-offs to off-set its supposed losses. However, after detailed discussions, it became clear that cost of this technology was too high and there was no guarantee of any cotton yield increase. Reports from Australia, India and other countries proved that government involvement in this issue would be like protecting one company and discouraging its competitors. “We can increase yields by 2-3 million immediately if we are able to improve seed quality and develop a remedy for Cotton leaf Curl Virus. national seed sector remains committed to strive continuously in this direction and provide better seeds to farmers”, said Malik. Secretary agriculture Punjab, Mr Arif nadeem and minister for agriculture Ahmad Ali Aulakh had recently announced in the media that BT cotton deal with M o n santo was off the table.

steel industry concerned PDMa distributes goods Kisan Board Pakistan over gas load shedding among flood victims to stage protests LAHORE staff report



staff report

staff report

AKISTAn Steel Re-rolling Mills Association (PSRMA) has shown grave concern over closure of gas to steel industry. Though steel sector is experiencing acute gas shortage for many years, but this year shortage has plunged down to the depths of despair. PSRMA leaders said in the past, gas was being suspended of those units who have contract of nine months with SnGPl whereas units that have contract of twelve months were being provided with gas subject to load management. They said we are running industry in the province of Punjab since 1947 and being industrialists we have absolutely no concern with politics or provincialism; even so, we are sorry to say that our industry in Punjab is facing discrimination in gas supply. Pakistan, as a whole, is the beneficiary of products being manufactured in Punjab, hence distribution of gas supply must be in accordance with the size of industry and not according to the area of a province, they asserted. Our industry is paying revenue to federation of Pakistan and therefore, protection of our rights is the responsibility of the federation, they added. They said it is submitted that furnace oil can be used as an alternate of gas but it is an expensive choice and would result in price escalation in all steel products.

IRECTOR General Provincial Disaster Management Authority Punjab Khalid Sher Dil, while addressing the last session of a two-day workshop held in Rawalpindi for officers of district governments of Rawalpindi division said PDMA distributed relief goods among flood affectees in year 2010 involving an amount of more than Rs700 million, while Rs165 million have so far been allocated for construction of 22 model villages and work is still in progress in this regard. He said under instructions of Chief Minister Punjab Muhammad Shahbaz Sharif, Watan cards involving an amount of Rs27.6 million were distributed among flood affectees. He disclosed that relief goods of a huge amount were also sent for the affectees of earthquake in Turkey and relief goods of Rs650 million were distributed among the flood affectees of Sindh. He informed that Provincial Disaster Management Authority have funds worth Rs200 million out of which an amount can be provided to any district accordingly in case of some emergency and disaster occur and funds are demanded by the DCO of such district. Khalid Sher Dil informed that instructions are being issued at district level for a comprehensive planning in respect of disaster management and district governments have been directed to allocate amount for disaster management on regular basis under their annual development programme.

ISAn Board Pakistan (KBP) arranged public meetings, rallies and demonstrations throughout the country on Friday to protest against increase in electricity and petrol prices and levying of tax on fertiliser, pesticides and other agricultural inputs. Participants raised slogan against the antiagriculture policies of the government and demanded withdrawal of General Sales Tax (GST) levied by government on agricultural inputs and lowering the rates of electricity and diesel for this sector. According to information passed on to the media by KBP Secretary Information Haji Muhammad Ramzan, central leaders of the board led rallies and demonstrations in various cities including KBP Sindh President Dr Abdur Razzaque Khosa in Sukkur, KBP Punjab President noor Elahi Tatla in narowal, KBP Dadu District Chief Zulfikar Mugheri in Dadu and KBP Central Chief Sardar Zafar Hussein Khan in Jhang. Speakers stated that government should immediately withdraw GST from fertilisers, pesticides, agricultural machinery and other inputs otherwise this tax would ruin agriculture and economy. They claimed that this would lead to decline in crop productions and country may face food security threat. They warned that the board workers would stage sit-in in front of assemblies if government failed to accept justifiable demands of growers.




Index loses 62pts despite positive rumours KARACHI staff report


ESPITE an eagerly anticipated increase of Rs210 per bag from Engro to purge the fertiliser sector of the GIDC burden, sector stocks remained subdued as rumours spread that the government was planning on intervening to halt the price hike. Apart from Engro which saw a 1.5 per cent gain from its last closing price, the rest of its peers displayed a muted reaction with FATIMA surprising everyone by ending up in the red zone. To add insult to injury, KSE-100 index took a 62 point plunge on the day as heavy foreign selling in index titan OGDC dragged the index

CORPORATE CORNER Bahria town gets recognition beyond the borders KaraChI: Bahria Town, Asia’s largest private real estate developer, has been making waves recently not only within the territories of its home country, but the efforts are also being realised globally. International media like Cnn, newsweek, lA Times and Euro Asia Industry have all recognised Bahria Town’s achievement. The newsweek Magazine, in an article ‘Safe behind their walls’, put a thorough insight to Bahria Town’s achievements, terming its developed projects as the safest communities not only to Pakistanis but also for the foreigners. press reLease

leadership of 30 prominent organisations to get global ceo excellence awards KaraChI: leadership of over 30 public and private sector companies will be awarded 2nd Global CEO Excellence Awards at a ceremony to be held at a local hotel on 14 January, 2012. Global Media links (GMl) and Business Milestones are jointly organising the award ceremony to admire excellence in leadership in various aspects and spheres of corporate, private, public, and industrial administration. The awards are also officially endorsed by two renowned international strategic partners of GMl. The partners are G2 Trainings Europe & Middle East and G2 Management consultants. press reLease

schneider electric triumphs at gigaton awards 2011 lahore: Schneider Electric, a global specialist in energy management, has recently been awarded with the Gigaton Awards for ‘Outstanding Business leadership in Action’ for its phenomenal contribution to the reduction of carbon usage. This honourable accolade was awarded to Schneider Electric by Carbon War Room (CWR), Gigaton Throwdown, and World Climate Summit. Selected from among 25 global companies that were nominated for the awards, Schneider Electric was acknowledged for its leadership in energy efficiency and development of Smart Grid. press reLease

ZoNg launches its first reconnection programme lahore: In line with its policy to offer the best services, ZOnG has introduced an innovative campaign for its subscribers. All those who have have not been using their ZOnG SIMs since november 1, 2011 will be rewarded for reusing their SIMs. The subscribers who meet the criteria will be able to avail 1,000 free ZOnG to ZOnG minutes and 10,000 free SMS to any network. To benefit from this offer, the subscribers will be required to send ‘Free’ to short code 2244. Moreover, customers who fall under the above mentioned criteria and recharge more than Rs300 will enter into a lucky draw for international return tickets to Dubai and Thailand. press reLease

Mobilink international roaming services get top spot in Pta ranking lahore: Mobilink has once again proven to be the best service provider for International Roaming (IR) services, as per a recent survey conducted by Pakistan Telecom Authority (PTA).The survey is a part of an effort by the regulatory authority to ensure provision of quality services to cellular service subscribers who travel beyond Pakistan’s borders for work or leisure. The operators were judged on the quality of their International Roaming services and billing parameters. Jahanzeb Taj, VP Marketing, Mobilink highlighted, “The ranking we have achieved is a reflection of Mobilink’s efforts and the trust it has earned amongst the masses.” press reLease

Dawlance introduces DW115 chZ microwave

down. It also looks like nIPH divestment of its Hubco stake has finally caught up with the script as it led the volume leader board with 5.5 million shares and lost 1.65 per cent on the day. With the port city marred in a spate of violence in the latter half of

the day due to a prominent AnP leader being assassinated, the equity market’s woes are only getting worse day by day, said Ali Hussain at HMFS. KSE-100 index closed at 11125.35 levels with a loss of 62.53 points, while KSE 30 index lost 41.16 points to close

at 10165.59 levels. All Share index closed at 7716.86 levels after losing 38.79 points. Total 96 scrips advanced 105 declined and 109 remain unchanged out of total 310 scrips traded.

KaraChI: Dawlance has recently added another innovative product to their health zone technology range; the DW115 CHZ microwave, which provides the convenience of cooking with the touch of a single button. The DW115 CHZ microwave oven has been designed keeping in mind the modern needs of present times. Dawlance Microwaves Category Manager, Ms naushin Shahid said, “DW 115 CHZ microwave, not only provides with the convenience of heating, but also keeps the food warm and helps with cooking and baking. It is therefore, an ultimate choice.” press reLease

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Saturday, 07 Januar y, 2012


In search of business confidence

SBP and the finance ministry HE pretty wide gap between the SBP and finance ministry’s projection of the fiscal deficit – arguably the most concerning statistic at present – epitomises the dysfunctional, distorted state of the latter. not that the former is in its finest shape. The difference owes not to a breakdown in some econometric model, but ministry optimism regarding projected inflows, pretty sizeable ones we might add, due in the second half of the current fiscal. The central bank’s estimate is more likely not just because exports are down, rupee is depreciating, PSEs are a continuing burden and tax reforms are nowhere in sight, but also because once promised funds are no longer in the offing, both civil and military. And the IMF program is long abandoned, also taking away other multi- and bi-lateral donors that take cue from the Fund. We don’t expect the finance ministry not to play politics in election year, which is why


the central bank must step in. It has leverage, provided it can assert independence and revert to its text-book role of price stability before partaking in other adventures. That it can simultaneously stimulate investment and spending, impacting employment and consumerism, can still help salvage the situation. Again, it will have to draw a clear line in the money market that the government must not be allowed to cross. That, of course, is easier said than done, especially when campaigning is effectively underway and the government’s borrowing binge is not very likely to cease. Fortunately, whatever the deficit, employment and growth outlook, much good can still be done by unlocking credit markets. Should the SBP put a lid on government borrowing, and flex its muscles as overseer of the banking sector, it can channel substantial liquidity to productive initiatives. How significantly, and how quickly, such measures can bolster growth might surprise many in the finance ministry.

Telecom sector on the up This is with regards to the feature, “Telecom sector – anchoring Pakistan’s economy” published yesterday. I think we must applaud the work that the telecom industry has done to bolster the economy of Pakistan. The feature highlights invaluable data, and it is heartening to note that the sector is on a precipitous ascent as far as posting lucrative numbers are concerned. Another interesting thing I spotted was that Telenor is ranked at the second spot behind the long time leader Mobilink, as far as telecom companies in Pakistan are concerned. Kudos to the marketing team of Telenor that has worked wonders for the company, as it continues to ward off the challenge of Ufone, who is at the coattails of Telenor. However, with Zong’s collaboration with Manchester United, I feel that Zong’s numbers in the coming years are going to escalate! I have seen some crazy football fans in Pakistan, and none more so than the Red Devils. Take my word for it; with phones with dual and triple SIMS nowadays, there would be a time when most of our friends would own at least one Zong SIM.

aahyan Mumtaz have a personal confession: working in a role which requires observing as to what makes businesses tick, I often feel an entrepreneurial side stirring. At times I yearn to have my own company, being one’s own boss, calling the shots, innovating, creating, etc. But as blissful as these day dreams may be, they are quickly and rudely interrupted by that thing called reality. leaving the all important capital constraint aside, the business environment is hardly suited for such initiatives anyway. The recently announced results of the 5th Business Confidence Survey, undertaken by the Overseas Investors Chamber of Commerce & Industry (OICCI), is reflective of the same – a serious lack of confidence amongst the business community and general pessimism with respect to doing business in Pakistan. Business Confidence is essentially an indicator of positive / negative sentiments that prevail in the market, identifying the reasons which contribute towards the same. The survey is tabulated by assigning a positive point for each optimistic response and a negative one for a glum answer. now here are the results: Business Confidence in Pakistan stands at -25 per cent. This is not a significant change from the previous -24 per cent; in fact the metric is totally consistent with the 4Q average of -25 per cent. negative responses outweigh the positives; for every four greens there are five reds. Whichever way you may interpret it, bears outweigh the bulls and the business community carries depressed perceptions. The survey yells out that the single biggest reason behind the decline in business in Pakistan is inflation; the answer of 43 per cent of the respondents. Persistent inflation is constantly raising the


Indicators such as the Business Confidence Index are useful measures to assess the efficacy of policy decisions


cost of doing business in the presence of limited demand side room. This spells gloom for profitability; the cornerstone for any business. The argument goes that a downward trend in CPI has been recently witnessed stemming from declining global commodity prices and higher domestic commodity surplus, let alone the change in constituent weights. But is the ‘Consumer’ price index a good indicator costs of business? Keep in mind that inflation in Pakistan has been cost push and impacts things like raw material prices, power costs and labor wages as far as a manufacturer is concerned. A company’s sensitivity to price of inputs depends upon its own unique overhead mix, not that which is assumed by CPI. On closer inspection, raw material prices have been going up, power costs are rising, and so are the costs of doing business. Other drags mentioned include gas and electricity load shedding (39 per cent), poor governance and policy implementation (26 per cent), and law and order (19 per cent). So there seems to be an ironic improvement in the security situation but this has aptly been replaced by inhumane industrial gas and power shortage. The reference to absurdity of the situation is fitting as without power, how is one expected to produce, how are industries expected to run? And then to compound this, a month long suspension of gas is announced. I expect this shortage to overtake the top position in the problems list in the coming months. A reputed multinational recently announced plans to resort to wood-fired boiler systems to make up for lack of gas. Talk about going back to the stone-age. not to sound too morbid, however, there is a bright side as well. Some 34 per cent of businessmen expect their business to expand in the next six months, while 54 per cent are upbeat when it comes to profits. Most of these are of the manufacturing breed. Is this because they feel they have reached a bottom or is there actually conviction in their sentiments? I feel it’s a mix of both, as the country still presents opportunities to grow for those who are positioned to utilise the same. Industry being the backbone of the economy is a no-brainer. Activity and investment in this regard is vital, without which unemployment and a general decline in living standards occur. Indicators such as the Business Confidence Index are useful measures to assess the efficacy of policy decisions – albeit in hindsight and assuming they are enacted anyway. What can be said for sure is that the economy clearly lacks confidence and rightly so. It’s up to the authorities to instigate a clean-up act; will they and will it be effective still remains to be seen. The writer is a financial analyst at PACRA

shari’a Matters

Pakistan can get out of power crisis

Sadia Zafar Baig HE power crisis is not local problem rather it is being faced by the whole region of South Asia. load shedding is prevalent in the whole of India and Bangladesh but we seldom hear hue and cry from their media. It was really an amazing fact that India is facing shortfall of 20,000MW and this shortfall is met through load shedding of eight to 10 hours. Indians are aware of the shortage of electricity in their country and they try to compromise and


help their government; but this is not the case in Pakistan. nature has given all resources to Pakistan for overcoming oad shedding and our energy needs could be easily met in the coming three to five years but this is not the case in India; where according to estimates the power shortfall would increase in the coming 10 to 15 years. India used to produce 65-68 per cent of electricity from thermal sources, 22 per cent from hydel generation and around 10 per cent from nuclear and renewable resources. Despite constructing dams on our water still India does not have huge potential of producing hydel electricity. India does not have a huge potential of producing hydel electricity and at the same time its energy needs are increasing at least 10 per cent annually. According to Central Electricity Authority (CEA) in India, the genera-

tion capacity in 2010-11 was 118,676 MW against the energy demand of 136,193 MW thus shortage of 17,517 MW. The shortage of electricity increased in the summer, when power demand rose and shortfall touched 20,000MW. This shortfall is overcome by eight to 10 hours of load shedding. Rural areas are the most severely affected. States periodically and chronically affected by load-shedding are Delhi, Uttar Pradesh, Tamil nadu, Bihar, West Bengal, Assam, Maharashtra, Madhya Pradesh, Rajasthan and Andhra Pradesh. There is no way that India could overcome energy crisis in the coming ten years and it is forecasted this crisis would be further exacerbated. The situation in Bangladesh is no different, where per capita energy consumption is one of the lowest (136 kWH) in the world. Bangladesh has small reserves of oil and coal. Its in-

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

We have resources to overcome power shortage

stalled electric generation capacity was 4.7 GW in 2009; only three-fourth of which is considered to be available for use. Only 40 per cent of the population has access to electricity. Because of huge gap in demand and supply, extensive load shedding is carried. A major hurdle in efficiently delivering power is caused by inefficient distribution system. Around 30 per cent of power is lost during transmission. Pakistan is altogether different from both of these countries. We have enough potential of producing electricity from hydel sources. Currently, we are producing 35 per cent of electricity from hydel and 65 from oil and gas. A number of dams like Bhasha (4,500MW), Munda (740MW), Kurram Tangi (83MW) and Akhori Dam (600MW) are already announced by the current government while other dams like Bunji (7,100MW), Dasu

(4,320MW) and Golen Gol (106MW) have a massive potential of producing hydel generation and it would also come in national grid in the coming years. The government has also planned to use coal reserves for electricity production and in the coming three to four years around 1,000MW would also be produced from the coal projects. By and large, electricity production would increase and it could easily overcome the power demand in the country. At the same time, projects for importing gas from neighbouring countries would also end the gas shortage for the power plants. It is high time that we sit together and understand that in this time of crisis we have to overcome the problem through mutual understanding and cooperation. The writer is an employee of NTDC/PEPCO

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email: Ph: 042-36298305-10 fax: 042-36298302 Website:

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Saturday, 07 January, 2012

We must live by the true spirit of Islam, not only by its rituals. And for those of you who may be ignorant of Islam, cast aside your preconceptions about the role of women in our religion



shaheed Benazir Bhutto

– elevati leading By example

fiza gilani, goodwill ambassador for Women empowerment, comes across as unusually sincere despite political overtones that are part and parcel of her work, as she talks to Profit’s ali rizvi ALI RIZvI

a famous politician, sherry rehman is currently appointed as pakistan’s ambassador to the united states. previously, she served as the federal Minister for Information and Broadcasting. sherry rehMan pakistans ambassador to the us

helping the needy

How can we, as a nation in times like today, survive let alone talk of progressing if the women in our society are taken as nothing more than a tradable commodity?” These words echoed the suppressed voice of the women of Pakistan as I read the article titled, ‘I do not wish women to have power over men; but over themselves.’ The article talked about Saira, an 18-year-old acid attack victim, who was learning to challenge the odds despite the tremendous setback she faced in her life. This article was written by Fiza Batool Gilani, honorary goodwill ambassador for women empowerment, the daughter of the prime minister of Pakistan. As I sat ready to interview her, she entered the room, sat down, and apologised for the delay as she was caught up in a meeting. Amiably she asked how I would like to proceed with the interview.

aN olD calliNg

roshaneh zafar ditched her World Bank career to set up Kashf foundation, pakistan’s first microfinance institution, in 1996. today, Kashf has more than 306,000 clients. roshaneh zafar entrepreneur

Changing lives

she heads the Bilquis edhi foundation. her charity runs many services in pakistan, including a hospital and emergency services in Karachi, credited with impacting millions of lives. BILquIs eDhI philanthropist

Building the nation

I had dozens of questions lurking in my mind, questions that revolved around her motivation to be a part of the cause of women empowerment in Pakistan, when she could have easily taken a backseat gazing at the horizon beyond, as things progressed in Pakistan. “I was always motivated to work for the women of Pakistan. Hailing from Multan, there is a deep rooted culture where the women who come to work in our households would sit down with us to discuss the problems that they faced. When I used to hear those problems, I genuinely felt they deserved a sense of security, security that would come only through enabling them to become self sufficient, to contribute equally to their households, to be financially empowered and aware of their basic rights,” explained an animated Fiza. “Hailing from a political family, my first political experience was when I helped my father campaign for the 1997 elections. That was my first exposure to politics, and even though we lost, it was a rewarding experience for me,” she said as she smiled. “When Pakistan was facing volatility in the northern areas and millions of people were displaced as a result, I worked with several organisations together with the IDPs to serve them as best as we could.”

lessoNs iN DeMocracy

shahnaz Wazir ali is a social activist and a special assistant to the prime Minister of pakistan. she is the chairperson of higher education Commission (heC). shahnaz WazIr aLI special assistant to the prime Minister

And so, I asked her how she would rate her father’s role in motivating her to take up women empowerment issues of Pakistan. She chuckled and said, “My father has been very democratic in the house too. He has encouraged me to have an equal say in matters governing the house, a habit inculcated in the family. All opinions matter in our house, and so do mine. Such an environment has encouraged me to come forward and play an active role for the women of the country.” How do you think will women empowerment contribute to the economy, I asked her. “It has a very important role to play for the economy. Women in Pakistan actively participate in several sectors that are vital for the country, including agriculture, entrepreneurship, social work, educa-

tion, media, television and the list goes on. You cannot exclude women if you want to see a progressive Pakistan, if you want to develop the economy, if you want to succeed as a nation,” she said. When asked about what medium can be used to disseminate awareness amongst the women of the country, she said that psychological conditioning of the masses is the most important tool to raise awareness about women rights and empowerment. You need to find the key to the subconscious minds of that segment of society which engages in women oppression. For this purpose, TV shows and dramas depicting the culture, albeit in a setting where women are portrayed to be equal partners of men will go a long way to serve the interests of women in the country. Therefore, she added that people socially have an important role to play.

relatiNg gooDWill to eMPoWerMeNt I wanted to know more about the actual projects that Fiza Gilani as the Goodwill Ambassador has initiated and so I asked her regarding the projects initiated under her directives. “Well we have started work on the prime minister’s special initiative for village product specialisation. Around 50 per cent of the total participants of this programme are women. Under this initiative we are working to impart necessary skills to these women so that they can be financially independent. Women are being trained in different products like Khadi, blue pottery, etc, and we sincerely hope this project pays its dividends. At the end of the day, what matters is the will of the people to avail these opportunities and

take lead in their own lives,” Fiza Gilani explained. In Pakistan unfortunately, women’s access to basic needs such as property, education, employment and social security remain considerably lower than that of men. Education and literacy in women is also low where the school dropout rate among girls is almost 50 per cent. Economically as well, only 16 per cent of Pakistan’s women are economically active. These statistics are considerably low compared to other Muslim countries of the world. Talking about her vision for developing active women participation economically and socially, she said she sincerely wants to work with small entrepreneurs from rural to urban women, who can be internationally marketed for their products. I believe that the role of the middleman must be eliminated that works to suppress these women of what is rightfully theirs. They are paid meager amounts of money for products that take a lot of effort while the middle man makes the profit. Secondly, she said that she wants to actively work for the plight of women languishing in jails of the country.

leveragiNg the BisP “When I visited these women in jails, I realised that they have to endure a plethora of problems. Some of these women gave birth to their children inside the jail cells, children who were living with their mothers because they had nowhere else to go,” she said, as she talked about the need for revamping the system that prevails at present. Elucidating about the important role that BISP has played she said that it is an initiative that targets those at the lowest ebb of society. It’s not about

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Saturday, 07 January, 2012



ating the nation and economy and responding to my question about the conservative mindset of the masses and how it impedes women empowerment efforts, added, “Conservatism, firstly must not be confused with religion. When we look at our religion, we see that the Prophet Mohammad (pbuh) married a progressive business-woman. The problem of conservatism is more a cultural issue that plagues the subcontinent. So, a change in the collective mindset of people is needed, and women need to be reminded of the power they hold in their hands. A woman runs a family, her role cannot be undermined.”

the PiPeliNe aheaD

merely providing these people with cash, it’s about facilitating their transition to become self sufficient. People criticise this programme that it is merely teaching the citizens of this nation to become beggars, how would you respond to such criticism, I asked her. “Beggars? no. not at all. The programme encompasses various initiatives that deal with transition strategies of these people on their path to self sufficiency, along with a multitude of training programmes after which they can get absorbed in the labour force,” she responded candidly. “To ensure transparency, a balloting system has been implemented whereby through an automated system, the lists of families are finalised by the president or the prime minister. Contrary to all the criticism, this programme focuses on teaching people how to fish, rather than merely providing them with fish,” Fiza Gilani said.

WoMaN BehiND the father Talking about the lighter side of things, I asked her what role her mother has played in motivating her to take up women issues. not sparing a thought she replied smiling, “Well to be honest, my father is who he is because of the support of my mother. My mother has been very supportive of my father. Being a politician is not an easy job, it requires a person to invest time and effort to interact and solve prob-

lems of the proletariat, which means that the family does not get the attention that it wants. Despite that my mother has always encouraged my father, and I truly believe that behind every successful man there’s a woman,” she said. She further explained the significant role that mothers play in the development of the nation. “Mothers have to nurture their children, inculcate in them values that define the future prospects of nations, you cannot eliminate the role of women from society, when they work to anchor the foundations of nations.” “Women empowerment is cardinal for economic development and national integration. Since women make almost 49 per cent of our population so, their potential cannot be left unattended. The role they play in various sectors of the economy will ultimately contribute to economic well-being of the nation. We have to educate our girls, only then will they be able to compete in the job market, which is getting more and more competitive,” Fiza said while talking about the urgent need for educating the women populace of the country. Talking about the initiatives taken by Benazir Bhutto, she said, “Benazir Bhutto is a symbol of women empowerment the world over and particularly in Pakistan. Her initiatives —-The First Women Bank, Women Police Stations and lady Health Workers—- have gone a long way in empowering Pakistani women. The Social Action Program initiated in 1992/93 has helped in reducing gender disparities. It was under her gov-

ernment in 1996 that the ban was lifted on Pakistani women taking part in international sporting events.”

a relevaNt MiNistry? Despite all the measures taken for women empowerment, we see little change in the status quo so I asked her how she would respond to this. “You see all stakeholders need to play their role in bringing change. no system or law can ever be successfully implemented if the respective stakeholders do not make concerted efforts to put it to practice. We need everyone on board to bring real change, and most importantly it needs to be brought about by changing mindsets.” “The problem lies in the fact that women are not aware of the rights, of the laws that protect them, and with the lack of awareness they do not know if they can hold perpetrators of crimes against them accountable for their actions. This is another hurdle in the implementation process, one that we are actively working to overcome,” Fiza Gilani explained. It is not an easy field to work in and there remain many challenges. So I asked her, what challenges she has faced so far in her tenure as the Goodwill Ambassador for women empowerment. “There is no dedicated federal women development ministry. Therefore with our efforts we are trying to fill in the void,” she said

How do you see the prospects of Pakistani women taking the lead in the years to come I asked her. “Women have taken a lead in the country since it’s inception. We have in front of us the example of Fatima Jinnah and how she supported her brother in the cause of Pakistan. We have the example of Benazir, who is one of the strongest women I ever knew. In fact I do not know many men who can do what she has done for the country. Our women have excelled the world over in all fields, be it science, economics, philanthropy, sports, you name it. So the prospects have always been bright, and they will remain to be so,” she replied passionately. Talking about her achievements and what she would want to do in the future, she honestly replied, “I would want to lead by action and not mere words. It would be dishonest of me to state aims that I am not able to deliver. Yes, I have plans that I would want to implement, that are in the pipeline but I want the people to see the end result of my efforts, the final product so they can see for themselves. Criticism is easy, and I will always take it constructively but that would not stop me from my efforts to bring about real change for the women of Pakistan. I want women to have power over themselves, only then can they succeed.” Finally, I asked her how she would respond to those who feel that those in the government and herself are alienated from the ground realities of the people. “I am a woman myself. I have lived a normal life, a life where my father was evolving as a politician, where I regularly interacted with women from different walks of life. Those who know me realise that I am an accessible person, that I believe in honesty and I am not a proponent of false pretences. Those who think that I am not aware of ground realities are mistaken, because I would not like to publicly flaunt my interaction with burdened women, seeking respite, seeking empowerment and social security. I regularly interact with them, I know their problems and I want to work for them, but I want to work in this domain because I find the task self actualising. My message to everyone: Don’t let anyone tell you how good or bad you are, you ought to know your own worth. Don’t let anyone suppress you, or hold you back. Take a step for yourself and see the world shaping around you.” Writer is News Editor, Profit. Comments and queries:

Breaking the trend

the first female to assume the position of the governor of the state Bank. she now runs the World Bank’s Mena operations. shaMshaD aKhtar former Governor sBp

overComing Challenges

the woman athlete who became the fastest woman to win a gold medal in the 100-metre event of the 11th south asian federation Games (saf) 2010. naseeM haMeeD athlete

eduCating the nation

nasreen Kasuri is the Chairperson of the Beaconhouse school system. It is now the largest school system of its kind in the world. nasreen KasurI Chairperson Beaconhouse school system

standing tall

she turned a horrible tragedy into a triumph of the human spirit. Mukhtara spoke up, and pursued her case. she remains an outspoken advocate of women rights. MuKhtara MaI social Worker and activist

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Saturday, 07 January, 2012

06 Markets top 10 sectors

57% 06% 14% 10% 02%


01% 07% 02% 03% 01%

Food Producers

Construction & Materials electricity Banks

Fixed Line Telecommunication

oil & Gas

Financial Services

Personal Goods

Gas, Water and Multiutilities

top 5 perForMers sector wise syMBol



loW curreNt



418.00 113.48 23.00 6.92 87.00

415.00 111.01 22.76 6.61 85.50

415.09 111.59 22.99 6.82 85.99

-1.30 0.22 0.47 0.02 0.71

9,152 868,241 1,533 302,860 63,469

0.01 28.18 5.68 152.25 40.82

0.01 27.47 4.72 150.00 39.65

0.01 27.87 5.68 150.05 39.81

0.00 -0.01 0.00 -2.51 -0.76

5,000 568,749 5 5,607 79,999

Oil and Gas attock Petroleum attock Refinery Burshane LPG Byco Petroleum Mari Gas Co.

STOCK MARKET HIGHLIGHTS Index 11125.35 2882.87 2393.22

KSe-100 LSe-25 ISe-10

Change -62.53 +1.69 -45.72

Volume 34,596,451 858,723 3,860

agritech(PReF)(R) arif Habib Co Sd Bawany air Products Clariant Pakistan dawood Hercules

open 5226.10 380.32 370.29 191.50 124.06

High 5425.00 399.33 376.50 198.95 130.26

Low 4965.00 389.90 364.01 192.97 122.02

Close 5283.00 399.33 375.86 196.85 128.71

Change 56.90 19.01 5.57 5.35 4.65

Turnover 56 2,415 22,362 2,152 56,922

Major Losers nestle PakistanXd Colgate Palmolive Unilever Pak Foods Tri-Pack Films Pak oilfields Ltd.

3201.36 639.11 1710.00 167.99 352.49

3290.00 669.99 1700.00 167.00 354.00

3060.00 610.00 1625.19 159.60 345.57

3163.18 611.43 1700.00 160.40 346.22

-38.18 -27.68 -10.00 -7.59 -6.27

67 52 1 1,704 416,622

Volume Leaders Hub Power Co. Fatima Fert.Co. Lotte PakPTa engro Corp Fauji Fertilizer

34.46 23.20 10.02 94.31 156.52

34.50 24.19 10.13 98.00 160.50

33.64 22.83 9.95 95.02 156.31

33.89 23.01 10.05 95.74 157.01

-0.57 -0.19 0.03 1.43 0.49

5,524,756 5,222,206 3,563,726 2,415,736 2,209,183

Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)

Per Tola (PKR) 55,083.00 51,608.00 996.00 1025.00

Per 10 Gm (PKR) 47,275.00 44,245.00 855.00 880.00

Per ounce US$ 1,621.00 – 35.05 –

al-abbas Cement attock Cement Bal.Glass Berger Paints Cherat Cement

2.60 51.54 1.78 13.60 8.99

18.30 1.10 8.11 33.51 9.57

18.30 1.10 8.11 33.54 9.57

-0.51 0.00 0.02 -1.71 0.00

6,639 3,480 12,150 10,504 10

27.37 3.65 41.03 7.78 82.29

2.70 51.90 1.78 13.90 9.97

2.61 51.54 1.72 13.60 8.56

2.61 51.54 1.78 13.88 9.25

0.01 0.00 0.00 0.28 0.26

11,500 202 100 7,300 222,766

5.45 186.78 28.50 0.75 6.56

atlas Battery Ltd. atlas engineering atlas Honda Ltd. Bal.Wheels dewan Motors

163.61 58.00 122.18 26.12 1.70

18.50 89.79 7.58 7.95 54.60

18.85 89.89 7.50 8.24 55.00

27.50 3.85 41.50 8.00 82.10

26.75 3.55 41.03 7.97 80.25

5.80 189.00 28.50 0.75 6.50

5.75 181.20 28.50 0.75 6.36

164.00 58.00 122.18 26.12 1.79

26.76 3.65 41.03 8.00 81.10

-0.61 0.00 0.00 0.22 -1.19

10,377 5,002 177 5,195 380

18.69 89.89 7.50 8.00 54.60

0.19 0.10 -0.08 0.05 0.00

4,071 2,199 3,000 2,012 160

5.76 186.78 28.50 0.75 6.40

1,880 64 200 9 10,004

163.31 58.00 122.18 26.12 1.70

-0.30 0.00 0.00 0.00 0.00

2,224 4,627 106 305 97,184

109.00 111.18 145.05 145.58

0.69 -4.44

1,170 203

Beverages 110.49 111.43 150.02 150.00

24.50 8.20 3.49 15.94 8.20

25.50 8.93 3.64 15.94 8.30

24.50 8.20 3.35 14.94 8.01

24.50 8.20 3.40 15.94 8.22

0.00 0.00 -0.09 0.00 0.02

1 1 18,006 1 3,417

amtex Limited artistic denim Mills ashfaq Textile azam Textile azgard nine

1.36 21.75 8.50 1.11 2.91

1.40 21.50 8.50 1.60 2.98

1.26 21.00 8.50 1.11 2.87

1.38 21.45 8.50 1.11 2.94

0.02 -0.30 0.00 0.00 0.03

24,704 5,547 1,000 1 540,170

aHCL-Jan aTRL-Jan dGKC-Jan enGRo-Jan FFBL-Jan

28.00 112.18 20.10 97.58 44.65

28.20 113.90 20.55 98.30 44.90

27.70 112.11 20.07 96.21 43.75

27.99 112.52 20.11 96.56 44.01

-0.01 0.34 0.01 -1.02 -0.64

37,500 456,000 273,000 629,500 627,500

abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. IBL HealthCare Sanofi-aventis

100.12 79.00 67.84 18.65 144.81

100.00 77.10 68.00 19.60 141.00

100.00 77.00 67.84 19.40 141.00

-0.12 -2.00 0.00 0.75 -3.81

409 400 291 45,144 500

99.85 77.00 67.65 17.91 141.00

Fixed Line Telecommunication 0.31 0.00 0.00 0.00 -0.16

162.00 58.00 119.00 25.00 1.70

aL-abid Silk Mills diamond Ind. Pak elektron Ltd. Singer Pakistan Tariq Glass Ind.

P.T.C.L.a Pak datacom Ltd Telecard Limited Wateen Telecom Ltd WorldCall Telecom

10.39 34.50 0.80 1.79 1.00

10.17 36.20 0.84 1.89 1.05

10.00 34.50 0.77 1.75 0.91

10.09 34.50 0.80 1.82 1.00

-0.30 0.00 0.00 0.03 0.00

219,504 1 6 60,883 410,692

0.30 34.66 0.64 1.66 1.50

0.39 35.31 0.65 1.67 1.70

0.30 34.71 0.60 1.62 1.50

0.30 35.05 0.64 1.62 1.50

0.00 0.39 0.00 -0.04 0.00

4 1,405,470 203,501 46,105 241

56.21 10.25 5.94 11.75 28.72

58.00 10.30 6.08 11.75 28.90

55.16 10.06 5.76 11.54 28.61

57.79 10.12 5.85 11.60 28.76

1.58 -0.13 -0.09 -0.15 0.04

46,257 135,530 585,795 305,232 21,374

Electricity Genertech Hub Power Co. Japan Power K.e.S.C. Kohinoor Power

Banks allied Bank Ltd askari Bank B.o.Punjab Bank al-Falah Bank aL-Habib




loW curreNt



Non Life Insurance 18.55 86.00 7.50 8.00 51.95

Pharma and Bio Tech

Industrial Engineering ados Pakistan aL-Ghazi TractorsXd Bolan Casting dewan auto engg Ghandhara Ind.

adam Sugar aL-abbas Sugur ansari Sugar Chashma Sugar Mills Clover Pakistan

Future Contracts

General Industrials Cherat Packaging eCoPaCK Ltd Ghani Glass Ltd MaCPaC Films Packages Limited


adamjee Ins atlas Insurance Century Insurance eFU General Ins Habib Insurance

47.77 36.21 6.80 37.51 10.00

48.40 37.00 6.99 39.00 10.00

47.00 36.00 6.80 37.70 9.90

47.74 36.00 6.80 38.81 10.00

-0.03 -0.21 0.00 1.30 0.00

133,097 4,900 300 2,601 802

13.50 1.40 65.53

14.50 1.40 65.53

0.00 0.00 0.00

2 1 157

0.31 14.36 14.99 0.65 1.00

-0.07 0.00 0.16 0.00 0.06

30,974 10 9,643 10 9,000

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 Investmen arif Habib Ltd. dawood Cap.Man XB dawood equities

0.38 14.36 14.83 0.65 0.94

0.39 14.90 15.30 1.09 1.00

0.30 14.36 14.21 0.65 0.90

Equity Investment Instruments 1st.Fid.Leasing Mod aL-noor Modar B.F.Modaraba B.R.R.Guardian Cres. Stand.Mod

1.55 4.20 4.00 2.26 0.50

1.58 4.07 4.49 2.26 0.49

1.56 4.07 4.00 2.25 0.40

1.57 4.07 4.00 2.26 0.49

0.02 -0.13 0.00 0.00 -0.01

12,973 1,000 100 150 26,517

12.76 33.00 36.00 32.00 5.50 0.61 364.01 12.50 68.60 1.14 65.00 5.40 23.28 7.00 3.39 8.21 53.50 26.50 1.82 10.08 0.76 1.70 0.96 15.60 18.75 14.05 60.50 22.60

12.95 33.57 36.00 32.00 5.72 0.61 375.86 12.67 70.06 1.15 65.39 5.40 23.89 7.00 3.57 8.26 53.63 26.50 1.96 10.19 0.77 1.70 0.97 16.00 18.85 14.05 60.90 22.60

-0.33 0.00 -0.25 0.00 0.00 -0.14 5.57 -0.33 0.00 -0.05 -1.11 0.96 -0.61 0.00 0.16 0.00 -2.66 -0.79 -0.11 0.11 -0.05 -0.03 -0.01 0.09 -0.05 0.00 -2.31 0.00

14,002 302 650 300 104 2,000 22,362 33,560 207 420,281 1,220 1,500 510 100 66,843 200 1,063 1,300 16,021 247,111 19,412 5,005 58,867 118,249 3,497 10 900 78

Miscellaneous Century Paper Pak Paper Prod. Security Paper Pakistan Cables ados Pakistan dewan auto engg Millat Tractors Ltd. P.n.S.C. Pak.Int.Con. Sd TRG Pakistan Ltd. Murree Brewery Shakarganj Food aL-abid Silk Mills Hala enterprise Pak elektron Ltd. Tariq Glass Ind. Pak Tobacco Co. Shifa Int.Hospitals P.I.a.C.(a) P.T.C.L.a Telecard Limited Wateen Telecom Ltd WorldCall Telecom Sui north Gas Sui South Gas american Life Jubilee Life In aKd Capital Ltd.

13.28 33.57 36.25 32.00 5.72 0.75 370.29 13.00 70.06 1.20 66.50 4.44 24.50 7.00 3.41 8.26 56.29 27.29 2.07 10.08 0.82 1.73 0.98 15.91 18.90 14.05 63.21 22.60

13.00 33.57 36.00 33.00 6.72 0.75 376.50 13.00 72.05 1.20 66.50 5.40 25.50 7.00 3.57 8.26 57.00 26.52 2.15 10.23 0.95 1.98 1.03 16.08 19.24 14.25 62.00 23.72

Mutual Funds Buy 90.40 114.72 139.39 1.1626 88.02 11.49 24.58 24.09 91.81

International Oil Price WTI Crude Oil


18.89 1.20 8.65 35.50 9.95

Construction and Materials

Murree Brewery Co. Shezan Int’l

90.6212 140.4811 1.1746 116.0043

US dollar euro Great Britain Pound Japanese Yen Canadian dollar Hong Kong dollar Uae dirham Saudi Riyal australian dollar

18.81 1.10 8.09 35.25 9.57


Personal Goods

Industrial metals and Mining Crescent Steel dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Metro Steel

loW curreNt

Household Goods

Automobile and Parts

Interbank Rates US dollar UK Pound Japanese Yen euro

0.01 27.88 5.68 152.56 40.57


Food Producers


Market Value 1,820,060,186 21,043,184 383,568

Major Gainers Company UniLever Pak Ltd. Indus dyeingXd Millat Tractors Ltd. Service Industries ICI Pakistan

416.39 111.37 22.52 6.80 85.28



Sell 91.40 116.52 141.22 1.1742 90.42 11.73 24.80 24.27 94.53

Brent Crude Oil





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 Crosby Phoenix Fund dawood Islamic Fund Faysal Income & Growth Fund Faysal Islamic Savings Growth Fund Faysal Money Market Fund Faysal Savings Growth Fund First Habib Cash Fund First Habib Income Fund First Habib Stock Fund HBL Income Fund HBL Islamic Money Market Fund HBL Islamic Stock Fund

501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800 102.5100 0.0000 103.9600 101.4000 101.1400 101.4400 100.8800 100.8900 101.4400 98.8551 100.2278 105.1082

501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473

Nav 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473




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 Lakson Income Fund MCB Cash Management optimizer Fund MCB dynamic Cash Fund MCB dynamic Stock Fund naMCo Income Fund national Investment Unit Trust PICIC Income Fund UBL Capital Protected Fund II UBL Islamic Savings Fund UBL Savings Income Fund

100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000 106.3763 102.2115 100.5994 103.2259 83.2931 108.2753 26.55 101.3261 106.7800 100.4576 101.9855

100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000 103.2779 100.7009 100.5994 101.6775 83.2931 108.2753 25.74 101.3261 101.4400 100.4576 100.9757

Nav 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087 103.2779 100.7009 100.5994 101.6775 85.4288 108.2753 25.74 101.3261 106.7800 100.4576 100.9757

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Saturday, 07 January, 2012

For the economic empowerment of women, it is very important that they should have access to a bank where they can make deposits, obtain advances and other services



first Women Bank ltd President, shafqat sultana

fBr launches broadening of tax base campaign LAHORE IMran aDnan


EDERAl Board of Revenue (FBR) has kick-started its ‘Broadening of Tax Base Campaign 2011-12’ by issuing notices. Traders associations are showing mixed reaction on the move as Anjuman Tajiraan strongly rejected the development, while Qaumi Tajir Ittehad (QTI) asked business community to cooperate with tax collectors. FBR’s Regional Taxpayer Offices (RTOs) have issued notices to a number of traders associations in the provincial capital, in which RTOs have asked trade bodies to intimate their members to display their national Tax number (nTn) and Sales Tax Registration number (STRn) at a prominent place in their offices or shops. FBR notices indicate that FBR’s survey teams will visit city markets to check nTn and STRn. However, no tax official will ask any question from taxpayer or registered person who has displayed nTn and STRn certificates. The survey teams will inquire particulars as prescribed by the law only from the persons who will not display their nTn and STRn at their workplace and will initiate necessary action under the law. The tax collector in its letter pointed out that broadening of tax base campaign has been initiated on the direction of the federal finance minister.




FTER imposition of Gas Infrastructure Development Cess (GIDC) and rise in gas tariff, EnGRO has raised urea prices by Rs210 per bag to Rs1,790 per bag. However, as has been previously seen, they may face government’s intervention through regulatory bodies. On the other hand, if things go smoothly it is expected that other urea manufacturers will follow the same price hike and raise their urea prices to Rs1,790/bag. One can recall that Fauji group (FFC and FFBl) has already increased Rs50 per bag to pass on the incremental cost of gas tariff. Therefore, it is expected that they will increase urea prices by another Rs160 per bag. Fatima fertiliser may come as a

major beneficiary of this price hike as GIDC has not been imposed on its feedstock gas prices because of its prior agreement with the government. This increase in price bodes well for the fertiliser sector on the whole, especially after the huge negative impact following the imposition of GIDC.

FATIMA MAJOR BENEFICIARY Fatima may come out to be the major beneficiary of this price hike, because it has not been impacted by imposition of GIDC on its feedstock gas supplies. Moreover, it also bodes well for another one of its product Calcium Ammonium nitrate (CAn) that is linked with the local urea prices, as it is considered to be a close alternative to urea. If we incorporate impact of GIDC and hike in urea price, our EPS is revised to

Rs5.1, said naveed Tehseen at JS.

ENGRO RAISES UREA PRICES As per expectations, Engro has raised urea prices to completely pass through its incremental cost. Therefore, they will be able to retain their margin. However, with declining trend in international urea prices and this current price hike the gap between the local and international prices will narrow down to merely Rs350 per bag. After incorporating the urea price hike, our EPS forecast for 2012 is likely to be maintained at Rs24.4.

FAUJI TO FOLLOW SUIT FFC was the first one to pass through its incremental cost due to gas tariff increase by raising urea prices by Rs50 per bag. However, we expect FFC

Cement sector’s capacity utilisation LoWeST In 10 YeaRS KARACHI staff report

APACITY utilisation of cement sector reached its nadir – at 69.67 per cent – of the past decade, in the first two quarters of 2011-12 that ended on December 31, 2011. Whereas, exports continue to decline and in turn offsetting the gains in local consumption.


NIGHTMARES Cement industry did not end the year 2011 on a very encouraging note. Capacity utilisation of the industry stood at 81.53 per cent in 2007-08 that has gradually declined to its present level, giving nightmares to the cement manufacturers. “The expected turnaround in the economy did not materialise as the capacities of the sector continue to increase,” said a

spokesman of All Pakistan Cement Manufacturers’ Association (APCMA).

HAVOC He said expansions in cement sector were planned six years back when the economy was moving. The prolonged recession of recent years and drying of government development programs have played havoc with viability of cement sector.

DOMESTIC DECEMBER DEMAND He said domestic demand in December was encouraging, showing a growth of over 13 per cent. This compensated to some extent the decline of 5.12 per cent in local demand in november. He said exports, however, remained under pressure during the last six months posting decline in four of the last six months. Ex-

to follow Engro’s price hike to Rs210 per bag, he said, adding that in our view, the company will not be able to pass through its full incremental cost because as FFC can not justify price hike beyond these levels. If we incorporate the impact of GIDC and hike in urea price, our EPS is revised down to Rs25.6 from Rs28.7, he added.

BIN QASIM TO TAKE HIT For FFBl, we expect 2012 earnings to take a hit of Rs1.5 per share as the company will not be able to pass on full cost impact, he said, adding that our 2012E EPS is likely to be revised down to Rs6.5. However, the company may also face declining primary margins of DAP in 2012, because of the continuous decline in international DAP prices. That further poses a key risk to our investment thesis.

amendments in power policy to be sent for approval ISLAMABAD staff report


InISTER for Water and Power Syed naveed Qamar has said that some amendments in Power Policy 2002 have been proposed to make the policy more effective and investor friendly and would be submitted to the Council of Common Interests (CCI) for approval. He said this while chairing a meeting of the board of Private Power and Infrastructure Board (PPIB). The minister said amendments were required to make the policy more effective to provide additional incentives and shorten the processing and approval times. The meeting was informed that a committee under secretary water and power including members from planning commission, ministry of petroleum, PEPCO, PPIB and chief secretaries of the provinces and AJK were working to formulate and recommend amendments. The meeting also reviewed progress of all private power projects. PPIB is working on 37 projects having 11,000 MW capacity. Managing Director PPIB n A Zuberi said that as per policy of government to improve fuel mix, they were actively working on development of hydropower projects in the private sector.

ports declined by over eight per cent in December. Overall decline in exports stood at 4.58 per cent during July-December 2011 period.

NORTH VERSUS SOUTH Cement units located in South registered a healthy growth of 19.2 per cent in the local market but posted even higher 20.02 per cent decline in exports in the first six months of this fiscal year. The majority of the cement capacity however is located in the northern part of the country where the industry posted a modest gain of six per cent in domestic market and even lower increase of 2.51 per cent in exports. Total cement dispatches in the first two quarter of this year was 15.40 million tonnes which was 4.21 per cent higher than the cement dispatches of 14.78 million tonnes during corresponding period last year.

DAUNTING NUMBERS During the first quarter of current fiscal year, seven cement units suffered loss before taxation aggregating to Rs0.973 billion while eight cement units, of which three are located

near Karachi in close proximity to the sea port, earned profit of Rs1.001 billion. At the end of last fiscal, industry debts to financial institution amounted to a staggering Rs125.3 billion while equity was Rs114 billion.

Profit 7th January, 2012