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Profit 08-12-2011_Layout 1 12/8/2011 1:29 AM Page 1

Polar Wireless to introduce first worldwide SIM in Pakistan Page 8 Will Pakistan default in 2012?

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Trade relations with India in agriculture Page 2

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profit.com.pk

Thursday, 08 December, 2011

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Rs10 billion sought to maintain power supply during Jan-Feb Pakistan has annual urea demand of 6.5 million tonnes

Fertiliser sector

Gas supply extended till Dec 31 ISLAMABAD

P

AMER SIAL

akistan is facing severe urea shortage, that may affect sowing of the country’s main staple food; wheat. this has forced the government to extend gas supply to fertiliser sector till 31st December, while Ministry of Water and Power (MOWP) has demanded release of Rs10 billion to maintain uninterrupted power supplies during low water supply period of January and February. Power, domestic sectors to get more gas suPPlies: an official source said government had decided to keep power sector

exempt from gas supply on sui northern Gas Pipelines Limited (snGPL) network for the current month. He said the decision was made considering slow pace of urea imports. However, he said, power and domestic sectors will be getting more gas supplies after fertiliser sector goes on its annual turnaround from early next year. Pakistan has faced an unprecedented gas shortage during this calendar year. the domestic urea production declined to 2.4 million tonnes as compared to the demand of 3.4 million tonnes for the Rabi crops, winter-spring cultivation season. this resulted in a shortfall of one million tonnes of urea. Government decided to plug the gap through import of 0.7 million tonnes of urea. Low

availability of urea has doubled its price from Rs830 per bag to Rs1770 per bag during the last year. govt decides to Provide gas to fertiliser sector: Government has decided to provide 76 mmcfd gas of power sector to fertiliser sector to enhance its supply to 150 mmcfd as compared to their requirements of 236 mmcfd. Fertiliser companies couldn’t run on their full capacity which took a toll on production of urea in the country. additional gas provided to fertiliser factories enabled them to run on 80 per cent capacity. these factories were estimated to produce 2 to 2.5 million tonnes of fertiliser in november and continued gas supply in December will enable them to

Bank loans to growth-oriented private sector plunge by alarming 87pc KARACHI

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ISMAIL DILAWAR

ROsPect for economic growth in the economicallytroubled country seems to be bleak as banks’ advances to growth-oriented private sector are nosediving as low as 87 per cent during five months of current fiscal year. as a standard practice banks are supposed to extend more and more loans to the private sector which worldwide is recognised as engine of growth that through generating economic activity ensures economic growth in a country. this, however, is not the case in Pakistan as central bank, in its Monetary Policy Decision for December-January, also noted with concern that risk-averse banks’ credit to private businesses was so far “muted”. state Bank reported that between July-november 25 banks had lent only Rs6.570 billion to the private sector compared to Rs52.534 billion of the cor-

responding period last year. this marks a huge slump of 87.4 per cent or Rs45.964 billion in the banks’ advances to private borrowers. On the other hand, commercial banks are extending extensive loans to the cash-strapped federal and provincial governments through investing massively in risk-free government securities including Market treasury Bills, Pakistan investment Bonds and ijara sukuk. according to sBP figures, during the review period banks credited a mammoth sum of Rs700.771 billion to the cash-starved government. this amount is higher by 130 per cent or Rs396.701 billion when compared with Rs304.070 billion of last year’s corresponding time. Of total bank advances to thee government, over Rs634.65 billion were extended by scheduled banks and Rs65.979 billion were lent by central bank. this huge lending in government papers is fetching heavy dividends for the banks that counted their net domestic assets (nDa) higher at Rs198.568 billion during July-nov FY12

against Rs192.543 billion of FY11. Further, the banks’ net foreign assets (nFa) kept monetary expansion in the country low at 1.32 per cent or Rs88.111 billion in monetary terms. Last year, same period had seen broad money, also called M2, expanding to 4.53 per cent or Rs261.643 billion. sBP reported that the currency in circulation was lower at Rs152.064 billion against last year’s Rs237.724 billion with the banks’ total demand and time deposits also setting in the red zone at negative Rs62.686 billion compared to FY11’s positive Rs22.553 billion. economic observers warn that with much of bank finances being eaten up by public sector for non-productive purpose of running the government, the country was likely to miss out on its 4.2 per cent GDP growth target for the current year. analysts suggest that banks’ advances must go to private borrowers who, through generating economic activity, create jobs that would lead to economic growth in the poverty-hit country.

produce 5.5 million tonnes of urea. Pakistan has annual urea demand of 6.5 million tonnes; which could be easily fulfilled by local fertiliser industry having capacity to produce 6.9 million tonnes per annum provided they get sufficient gas supply. annual production for current year is estimated to be five million tonnes with an estimated urea shortage of 1.3 million. Government has already imported 500,000 tonnes of urea during the current year. Natural gas shortfall: according to Petroleum Ministry estimates, natural gas shortfall against committed supplies would be around 911 mmcfd in December and will increase upto 1.1 mmcfd in

January and 1.4 mmcfd in February, before easing down to 726 mmcfd in March next year. Diversion of gas to fertiliser sector in november has resulted in a decline of 325 MW in power generation. shifting gas based iPPs on diesel will enhance their generated power at least by Rs10 per unit. He said hydel output of 3800 MW will end with closure of canals for annual clean up. Present shortage of 1100 MW will jump to 5000 MW if finances were not provided for additional fuel purchase. if the required amount is provided the shortage will be around 2000 MW which will result in load management of three to four hours daily.


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Thursday, 08 December, 2011

debate

DuRDAnA nAjAM

ince the news of granting MFn status to india has broken, a trail of complaints against the ill conceived policies of government have begun making round. One dilemma that has confounded the agriculturists is the discrepancy that exists between india and Pakistan over the cost of producing agricultural goods. With energy crisis almost eclipsing the industrial sector of Pakistan, there is little room left to think about manoeuvring a country like india, where targeted subsidies and efficient supply of fuel has helped it expand globally. Looking into the discourse so far held by the farmers associations of Pakistan, among themselves and with the government, the fear of contestability looms large. as put by the former finance minister of Pakistan during his recent visit to Lahore chamber of commerce, Pakistan can start growing at the rate of 5 per cent annually without delay, only if it could redo its policy frameworks and its leadership becomes serious in straightening country’s economic indicators that they have dabbled with. One can always make a case for development in the face of MFn thinking and ultimately believe that today’s economy is all about comparative advantage; with resources getting scarce. One cannot hinge on egoistic production probability frontiers because one has to define new points and new shifts for productive reasons and growth opportunities. We have a window of opportunity open in MFn, in agriculture sector, only if we narrow it down to the livestock, vegetable and fruit sectors and see how we could make it favourable, especially the meat epicentre.

Trade relations with India in agriculture

Pakistan could tap on Halal food market even though our cost of production is terrible, we have to understand that development is a dependent variable; it cannot take place independently. south asia is the world’s largest populated area of the world today, with a high density of youth as well as Muslim population. the growing concept of Halal food is stretching itself to cover all that could be made Muslim in its texture, contour and chemistry. in Halal meat, the entire line of action through which an animal is brought up is supposed to be islamic in nature. exploiting this key point, Pakistan can make its niche as the only pure and real Halal meat producer, since we are by all means feeding our animals on organic food, unlike india that has adulterated feeding combination. Once we are in alliance perhaps, the perceptual disharmony would cease to make collaboration difficult and let each other grow in our areas of specialisations.

Trade with India is not a new phenomenon On the heels of australia, new Zealand and canada, india has captured a large share of Halal meat market globally. though india is exporting Halal meat of all categories from poultry to red meat, it is buffalo meat that has earned india a lucrative market and burgeoning revenue. On an estimate between 1999-2009 india’s buffalo meat export has risen from 160,000 tonne to 650,000 tonnes. india’s exporting partners could be many, but china and africa rank among the top two. the reason behind india’s success story is its livestock health status, the certainty of Halal compliance and of course competitive pricing. What made Pakistan languish for years in the corridors of this vital sector, achieving so far only one per cent share in the $650 billion market? “nothing, but lack of political will and the vision to grow beyond self interest, “says ceO Punjab agriculture and Meat company, Mr Hamid Jalil. “trade with india would not be a new phenomenon; we are already engaged with indian market through saFta and on many occasions, indirectly as well. By providing MFn status to india, the informal trade would become formalised to a certain extent, adding into the tax pile”.

MFN can give us breathing space though, i do not see any exponential benefit out of this new arrangement to Halal meat market, there is some invisible support that could come handy. Being a nascent market,

India’s high-tech farming

Pakistan has yet to build and streamline the infrastructural support of livestock. the supply line needs unravelling and a thorough overhauling. there is a huge demand and supply gap. Our farming practises are also antiquating. this scenario provides one opportunity wherein, we could benefit from the export of indian buffalo meat to Pakistan. With MFn anchoring the trade, this export could be used for the time as leverage, filling the demand gap, unless we get away with our supply side issues. We can fill in our orders abroad while formalising things at home. Pakistani importers are already practicing this deal: let’s do it formally. Presently we are pressing upon our farmer to let the buffalo male calf survive till the age of six months and beyond so that a substantial quantity of meat can be taken from each an-

imal. We are aiming at a behaviour shift, to create awareness about the difference between dairy and beef breed animals. For this, we have to make the farmer understand that beef quality could only be ensured if cows and buffalos are raised specifically for flesh purposes. We have to make them realise that a dual purpose approach, that is milking and slaughtering the cow once the carrier period is over, leads to diminishing market response and thus, uncompetitive pricing. attaining this change would obviously take time; meanwhile, indian export could be used to retain orders. another best option would be, if we could import live cows from india, which i doubt the indian law would permit. though, World trade Organisation too does not allow trade of live animals between countries within a region

having foot and mouth disease endemic, however, by following quarantine rules at the port, this issue can be resolved and permission can be sought. But we should keep this in mind that other than cows, any easy flow of live animals to Pakistan would badly affect local livestock market.

India’s vegetable and fruit market the paranoia that MFn has bought Pakistani agriculturist is due to the fact that we have regressed at all economic fronts, whereas, the world has gone ahead into new and advanced ventures. as rightly said by Dr Hamid, “We need to get federal at every level, even at the fiscal level; let district de-

The impoverished ‘Asian Century’

B

fine their economic fate, by that i mean, every district should have a hand on its economic pulse. it should provide for its needs through indigenous resources. if you come to think of it, india by a wide margin, is a vegetarian country, in this respect, Pakistani vegetable and fruit market has a lot of trading potential with india. if we can make our land fertile to an extent that every cultivable land of this country is given to production, the trading prospects could do wonders.” supporting Dr Hamid’s argument the chief executive Officer khan trading company, khalid khan said that, “india could become a large market for Pakistani kinow (oranges). according to an estimate, Pakistan can export 400,000 tonnes of kinow to india, annually. this export would fetch $1.2 billion in the next two years.”

CHAnDRAn nAIR

Y 2050, asia will have more than five billion people, while the european Union’s share of the global population will decline from 9 per cent to 5 per cent. annual economic growth in asia over the past 30 years has averaged 5 per cent. its GDP is projected to increase from $30 trillion to about $230 trillion by 2050. the balance of power in the twenty-first century is shifting – in social, economic, and, arguably, political terms – from west to east. Western anxieties about a looming “asian century” stem largely from the precedent of twentieth-century geopolitics, in which the West dominated less-developed nations. But this dynamic is outdated, and asia would suffer as much as the West from any attempt to emulate the British and american empires of the nineteenth and twentieth centuries. as asian economic growth has increased, consumption in the region has also risen. Multinational compa-

nies and Western countries – both of which stand to benefit greatly from asia’s increasing consumption – have encouraged asians to aspire to a Western standard of living, with its high energy usage, electronic toys, and meat-heavy diet. asian governments seem willing partners in this one-dimensional approach to development, and are eager to lead global economic growth. Yet it is neither desirable nor possible for asians to consume in the way that Westerners do, and asian governments should face up to this reality. in previous centuries, Western economic growth was characterised by a comparatively insignificant minority having unfettered access to resources, and was thus built on fueling consumption. this was, after all, the idea behind colonialism, which succeeded economically by underpricing resources or even obtaining them for free. But the planet simply cannot support five billion asians consuming like Westerners. the earth’s regenerative capacity was exceeded more than 30 years ago, and we now use 30 per cent more resources than the planet can sustain. although we know this to be the case, the vast ma-

jority of Western economists and institutions continue to encourage china and india to consume more. asian governments must reject this trend, but, having been intellectually subservient for so long, it is not clear that they will. Western governments, for their part, must stop being intellectually dishonest. indeed, they must openly acknowledge the impossibility of supporting demands for ever-higher material consumption in asia without irreversibly changing our planet’s climate and resource pool. trade relations are far less important than establishing a dialogue between the West and asia that addresses how to live within limits. For example, Western leaders concerned about climate change must understand that economic instruments like emissions trading are not a panacea. For asia, resource management must be at the center of policymaking, which may include Draconian regulations, and even bans. Otherwise, resource shortages will push up commodity prices and create crises in food, water, fisheries, forests, land use, and housing, thereby leading to greater social injustice.

We cannot deny the fact that an indian farmer is far more educated than a Pakistani farmer; his decisions are usually timely and effective. the major reason for this success goes to the it industry that has placed india high on the pedestal of international business community. Free trade and frequent interactions could result in making our farming high-tech too with lesser cost, due to proximity of the two countries. information on agro processing industries, aqua culture units, animal husbandry, floriculture, etc could give farmers the diversity that they need in making intelligent decisions and influencing policy making. certainly, the cost of production in Pakistan has shot up exorbitantly, and the government of Pakistan needs to look at it seriously, especially when trade within such a close proximity is in view. However, if we shift the focus, try seeing india not an enemy, and most importantly become a friend to our own selves. MFn and the ensuing complaints would begin looking more like opportunities. Durdana Najam is a freelance feature writer, currently doing MS in Governance and Public Policy from FC College, Lahore. She can be reached at durdananajam456@hotmail.com

the West must help asia to challenge the idea that consumption-led growth is the only solution, or even a solution at all. and asia must adopt three core principles to avert environmental and social crises. asian governments will sometimes need to set strict limits on resource use – and have the tools to ensure that society respects these limits. they should begin, for example, by stressing that car ownership is not a human right. the debate about rights must emphasize constraints, not the utopian definitions of Western politicians. these policy options fly in the face of Western liberal-democratic orthodoxy. But Western policymakers should not react negatively to these sorts of policy choices made by asian governments, nor misconstrue them as anti-capitalist or anti-democratic. the West must realize that its consumption-led economic system has exhausted the world’s resources, and that it is not a viable option for most asian countries, whose governments must employ different political methods to create more equitable societies. Chandran Nair is the founder of the Global Institute For Tomorrow (GIFT) and Co-Founder and Chair of Avantage Ventures, a social investment advisory firm based in Hong Kong. A version of this article was first published in project syndicate.


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Thursday, 08 December, 2011

EDITORIAL

Will Pakistan default in 2012?

Indian troubles

I

t seems southeast asia is headed for a particularly cold financial winter this time around. Pakistan’s tale of stagflation and the government’s inability to stem investor outflow is echoed in a much louder tone across the eastern border in india. Departing from solid investment profiles of its BRic peers, india was the only country in the grouping that noted a decline in foreign direct investment in ’10. With the indian rupee in an even more furious downfall than its Pakistani counterpart, new Delhi’s business model has just been exposed as fatally hostage to exogenous liquidity shocks, a simply unsustainable model in the present recession-ruined environment for tradedependant economies. surprisingly, india’s economic make-up has started betraying an unnerving dichotomy, at once boasting the world’s most inviting market, but with a centre too weak to fend off the recent vicious attack that rubbished the initiative attracting foreign investment in retail. in addition to embarrassing Manmohan sing’s rhetoric about reforms, the move exposes

insurmountable political cleavages. Deficits are mounting, foreign reserves are insufficient to provide forward cover, inflation is menacingly high and despite a tight monetary policy, the rupee is falling. to top it all, congress has no friends in the polity. and with the middle and lower income groups subject to increasing austerity, there is little likelihood of india’s democratic credentials weakening enough to cover the ruling party’s inefficiency when comes time for people to go to the polls. it is perhaps ironic that while most of india’s troubles are home-cooked – high deficits, weak central bank position, insufficient reserves, no coordination across parties – its most damaging blow might come from far away in europe. the euro narrative is weakening by the week, and with it stability in european economies, meaning increasingly reduced export earnings which new Delhi desperately relies on. Mr singh’s government must initiate a serious overhaul of the entire economy, or prepare to depart and let another take the burden, or let a collapse in india bring down the whole region with it.

Shan Saeed

T

His is an easy question to pose, but a hard question to answer as a financial economist/banker. in my humble opinion, there are too many players (Usa, Russia, saudi arabia, Uae, china) involved in this region who don’t want Pakistan to go down economically. the recent monetary statement of the sBP indicates, that targeting inflation is high on the central banks agenda. i see food inflation, economic repression and social unrest in Pakistan in the next 6-months. Depreciating currency will lead to inflation which is happening again at the moment when Pak Rupee is trading at Rs90 against the Us Dollar (losing 3.4 per cent against the Dollar in a week’s time). i don’t see any political maturity in the leadership with neither a farsighted approach nor brinkmanship to deal with international players tactfully. However at this crucial juncture, hats off to our military leadership led by Gen ashfaq Pervez kayani and his men who have again displayed strategic leadership, integrity and foresight to deal with the imbroglio we found ourselves stuck in. Pakistan will be making payments to iMF in 2012. 25th January is an important date when the government will make $800 million as the first payment. the Pak rupee will continue to bleed going forward. those present government had not really given the strategic focus to the economy that was required when they took power in March 2008. it was very disappointing to see that they had considered the wrong strategy from the start. GoP adopted an expansionary fiscal policy which did not increase the GDP size, increased budget deficit, increased poverty levels, depreciated currency, unabated printing of money/Qe, facilitated corruption, lowered purchasing power, projected negative real interest rates, lowered confidence in the economy, debilitated the living standards of the people and above all tarnished the image of the country. capitalism is like a bicycle. any child can easily ride a bicycle forward. no one has ever ridden a bicycle back-

I see food inflation, economic repression and social unrest in the next six months Are we an apathetic nation?

Has social media overshadowed traditional marketing?

if we feel that our nation has become apathetic then it is obviously because people have suffered so many adversaries and atrocities. now we are so much prone to everything that we hardly care about anything. Pakistanis are not 'born apathetic’; it is the environment that forces them to become apathetic. in this media-saturated society, where media daily reports dozens of killings, suicides, bomb blasts, protests, etc. How can anybody survive without being apathetic? i’m not saying that we not concerned at all, but then again, ‘every cause has its effect’, it’s simply that the kind of environment that surrounds us has certain effects on us. Otherwise, Pakistanis can be as empathetic as any other nation can be!

the author raises some interesting issues regarding the increased role of social media in modern day marketing. Facebook is becoming a great tool for marketers and the impact and penetration of social media have become too great for the companies to ignore. it is certainly a great article and after a long time, i have read an article that has engaged the readers despite it being written on a boring topic. the writer has raised very valid points with regard to the continuous evolution of social media and its impact on our lives. companies now need to invest in their online marketing strategies in order to survive, those that fail to do so will struggle.

MARvee MAHMooD

AHMAD SHAH

LAhoRE

ISLAMAbAD

wards. capitalism only works well in a growth government. it does not know how to cope with an economic environment of low or negative growth. if we analyse the economic situation of Pakistan in the last 5-years, World Bank, and sBP reports indicate that GDP growth rate decreased from 5.7 per cent in 2005 to 2.3 per cent in 2011, and inflation climbed from 11 per cent to 27 per cent. During the same time, the external debt witnessed a gargantuan increase of 24 billion dollars and poverty levels deteriorated from 35 per cent to 60 per cent. this situation is alarming to say the least. the above figures clearly illustrates that Gilani and Zardari government have added misery to the woes of the people. Poverty levels are rising (increase of 71 per cent). Government debt has risen (rise of 63 per cent) considerably. the question is what is the marginal productivity of debt to GDP growth in the last 3-years? negligible. Government has wasted its resources on valueless projects, with rampant corruption amounting to Rs1.7 trillion per annum and above all have actively taken steps to destroy state institutions like Pia, Railways & WaPDa. so the billion dollar question is can we turn the tables in our favour? We can follow two strategies for the next 18 months. Government should adopt Mckinsey style spending which is valuable for the economy. canadian government adopted similar strategy from 1994 -1996. We can look up to them for economic guidance if we are missing out on the strategy paper at hand. Pakistan’s government should not waste funds on expenditure where employment generation, productivity enhancement and GDP growth are not happening. GoP should strategise its policies on value addition projects going forward to boost economic productivity and to enhance living standard of the masses. in an economy where government is monetising its budget deficit by printing money, poisoning the financial system, tax increase like Vat or RGst is not the answer. economic success stories of Late Milton Friedman — nobel Laureate from chicago school and adviser to President Reagan, Usa, advocated tax cut and sustainable government spending that pulled the Us economy out of recession. We need to study those successful models. Prudent economic policies, educating females, cutting down on spending and effective monetary policy can provide Pakistan an impetus to revive the ailing economy. We are at that juncture in economic history, where international economics and political relations are an important new way to integrate globally in a positive way. Shan Saeed is a financial market economist and commodity expert with 12 years of financial market experience. He is a graduate of University of Chicago and IBA. He can be reached at saeedshan@gmail.com and blogs at www.economistshan.blogspot.com

AveRAge Joe InvestoR

When rumours abound, Beware

Agha Akbar

W

Hen the bourses opened after a long weekend spanning four days on Wednesday the start-off was on a positive note and the kse-100 benchmark at one point was even up by 90 points. that trajectory however could not be maintained and at the closing bell, exhibiting some edginess the market was down by 111 points. the talk at the market revolved

around the same gossip that the political cognoscenti around the country and abroad were indulging in with such gusto. Why had President asif ali Zardari scooted off to Dubai? the market really was abuzz: Was the ‘heart’ reason being presented by the presidency accurate or was there something more to it than meets the eye? is he gone for good or will he again pull a fast one on the unabashed pundits who have by now given so many dates of his impending departure without ever blushing on the egg left on their faces when el Presidente remained as firmly entrenched as ever? the mystery about whether this time round he has really bitten the dust or not would be cleared shortly, but the uncertainty created a situation that pegged the market down. Whatever the truth in the rumours about his ill health or even a resignation in

the offing flying around with such increasing intensity, they may well start impacting on the already volatile local bourses. so beware this aspect with a capital ‘B’. another reason for the bearish outlook, not just yesterday but overall, was the familiar one: this is the period of time around which activity mostly remain dormant. Mr ali Malik, ceO of the First national equities, that most clued in of analysts, believes that this investor indifference was likely to continue for some time – at least another couple of weeks or so. For those average Joes who have cash to spare, and wanted to invest it for a quick buck, Mr Malik off hand suggested Fatima Fertiliser, at Rs22.40 not a costly deal. according to Mr Malik, it was likely to go back to its high of around Rs25 as soon as the market recovers. that translates into a capital gain of around 10 per

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

The talk of the market revolved around the surprise exit of Zardari, was the heart reason true? Or is there more to it than meets the eye

cent by the month’s end or thereabouts. Mian nusratud-Din for his part thinks that the downward trend would not be sustained. “the performance of the fertiliser companies, a whole slew of banks and of the oil sector overall has been quite heartening. three quarterly reports in most of these blue chip companies are already in the public domain. and these are so good that they are bound to attract buyers – both individual and institutional”, said MnD. Regardless of MnD’s bullish bent, it is always better for the average Joe to err on the side of caution. and prudence demands that unless the prospects look exceptionally

bright and the economy is really booming, which according to universal consensus is not the case at the moment, one must keep a vigilant eye on one’s inventory. the way to go about it is underexposing oneself, and limiting the spread to only a few well-chosen scrips. this approach would not just save one from undue risk but also make the inventory more manageable in terms of retaining one’s focus on the performance of the companies involved, and taking timely action in case there were profits to be booked or selling right in time and getting out before a slide. The writer is sports and magazines Editor Pakistan Today

For comments, queries and contributions, write to: muneeB eJAZ Layout Designer

email: profit@pakistantoday.com.pk Ph: 042-36298305-10 Fax: 042-36298302 website: www.pakistantoday.com.pk


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Thursday, 08 December, 2011

04

news

I assure that the government is not purchasing any expensive sugar. The ECC has decided in principle that the government will purchase the commodity on minimum possible rates

Federal minister for Finance, dr Abdul hafeez shaikh

Argentinean envoy optimistic about trade with Pakistan LAHoRe

a

STAFF REPoRT

RGentina offers huge opportunities to Pakistani businessmen particularly in Livestock, agriculture and cnG sectors therefore they can initiate Joint Ventures with their counterparts in argentina in these sectors. this was stated by argentinean ambassador Mr Rodolfo J Martin-saravia while addressing a meeting at Lahore chamber of commerce and industry. Lcci senior Vice President kashif Younis Meher presented the welcome address. Mr Rodolfo, who spent well over an hour at Lcci, highlighted a number of issues hampering bilateral trade between the two countries and forwarded various proposals to boost two-way trade. ambassador also promised to extend technical assistance to Pakistan in agriculture in general and for plantation of soybean crop in particular; since the country is the biggest grower of soybean while Pakistan is the largest consumer of this commodity. ambassador said that there are a number of other

sectors including cnG in which Pakistani businessmen could learn from argentina’s experience. speaking on the occasion, Lcci senior Vice President kashif Younis Meher said although Pakistan and argentina enjoy friendly relations but trade between the two countries is minuscule. argentina’s major trading partners are Usa, Brazil, chile, china and Germany. trade between Pakistan and argentina, over the last five years, has averaged around $68.72 million. First priority is to increase the volume of bilateral trade while after the increase, measures would be taken to turn it into a win - win situation for both countries. Lcci senior Vice President kashif Younis Meher said Pakistan and argentina, signed formal agreement in 2002 giving MFn status to each other, could not attain the desired level of economic relations. Figures of bilateral trade of last three years further validate the statement. in 2008, two-way trade between Pakistan and argentina stood at $244 million which fell to $117 million and $ 115 million in 2009 and 2010 respectively. He said Pakistan’s exports to argentina did not make any signif-

icant improvement except regaining its previous level. in year 2008, exports stood at $51 million which dipped to $31 million in 2009 but bounced back to $52 million in 2010. in the same period of time, imports from argentina drastically dropped from $193 million to $63 million. in fact that has caused downturn in overall trade volume between Pakistan and argentina. He said Pakistan mainly exports manmade staple fiber, cotton, toys, sports goods, textile articles, manmade filaments, technical and medical apparatus, plastic products, etc to argentina. Whereas our major imports from argentina include animal and vegetable fats/oils, pharmaceutical products, raw hides and skins, leather, articles of iron or steel, seed, fruit and cereals etc. He said argentina is a major producer of cotton, soybean and sunflower seeds. argentina has expertise in areas like edible oil, iron and steel, cnG, pharmaceutical products, chemicals etc. Pakistan offers lots of investment potential in these sectors. argentina ranks among the top users of cnG in the world and it is the major producer and exporter of cnG cylinders, car kits, cnG sta-

2011 PERFORMANCE

KSE underperforms against other assets Karachi: the kse-100 in 2011 YtD is down 5.4 per cent, underperforming by a gross 9-27 per cent against most other asset classes ranging from commodities to foreign exchange to debt markets. the lack of investor interest is reflective from average daily volumes falling to their lowest since 1998, along with a notable decline in money raised from the capital markets. the initial public offerings (iPOs) in 2011 were limited to only four scrips, valuing a gross of Rs1.4b (down 58 per cent YoY). the public’s response to these too remained dull, being subscribed by only 0.75x. nevertheless, the kse has outperformed the international equity markets in 2011. the Msci World, Msci eM and Msci FM indices are down by 8.2 per cent, 17.2 per cent and 20.6 per cent, respectively in 2011 YtD.

KSE BEATS REGIONAL EQUITIES BUT LAGS OTHER ASSETS

While outperforming international equity markets by an average 10 per cent, the kse-100 lagged behind most other asset classes (Gold, Us$, nss, t-bills, PiB etc) by a notable 9 - 27 per cent. Despite cheap valuations, investor remained sidelined largely owing to falling popularity of the incumbent government amid dissonance with major international allies and local political parties; concerns over another global a total of only four offerings have been floated in 2011 as opposed to six last year. these offerings included international steels, Pakgen Power, engro Foods and tPL Direct insurance, raising a cumulative sum of Rs1.4b (versus 3.3b last year – down 58 per cent). Historically, 2005 had been the best year, witnessing a total of 17 iPOs. in terms of value, the offerings were subscribed by 0.75x (0.9x last year). Moreover, investors general lack of interest was also reflected in number of applications filed (12k) against the required number (203k), resulting in total subscription of 0.06x. in these terms, engro Foods received the highest response (0.16x), while international steel received the lowest (0.02x). STAFF REPoRT

tion compressors and dispensers. some argentinean companies have also expressed their interest in exploration and development of gas fields in the Pakistani provinces of Balochistan and sindh. earliest possible arrival of these companies to Pakistan will be of greater benefit to both of us. He said both countries should work on establishing stronger trade links between two countries and explore further areas of joint ventures in those industries that are based on cnG sector, soybean, edible oil etc. While briefing about business atmosphere in Pakistan, Lcci senior Vice President informed the ambassador that government of Pakistan has adopted a liberal investment policy to attract maximum foreign investment where foreign investors could hold up to 100 per cent equity. there is no restriction on sending back the principal, dividends, profits and royalties. argentina is a major producer of soybean and sunflower seeds and cotton. argentina can optimise its benefits by establishing value addition industries based on soybean, sunflower and cotton. there is a huge market for edible oils in Pakistan.

Pakistan invites ukrainian investment KARACHI STAFF REPoRT

P

akistan has invited leading companies of Ukraine to invest in Pakistan, especially in the sectors of fertilisers, plastic, steel, agriculture and iron ore. Liberalised visa policy and business to business contacts could strengthen bilateral trade in future, it was stated. a business delegation to Ukraine, led by tariq Puri, chief executive trade Development authority of Pakistan (tDaP) became the first delegation to visit from Pakistan. according to tDaP sources, while calling upon Deputy Minister for Foreign affairs Mr Victor Mayko; tariq Puri, emphasised upon the significance of having a liberal visa regime.

Zardari resignation rumours rattle KSE Karachi Staff report

t

He heated political debate got extremely intensified after the President left for Dubai for heart treatment. a few newspapers republished the article floated by a Us magazine suggesting Zardari may resign. as per the article, Zardari is completely trapped in the memo-gate issue. the benchmark was fairly impacted by the rumours in relation to the above mentioned article. Majority of the top tier stocks nosedived to the lower level with a mere volume of 37.9m shares. the index heavy OGDc tried its level best to rescue the benchmark with its Rs1.21/share gain, but most of the top tier stocks

Jute industry calls on govt to promulgate mandatory packaging lahore: Jute industry has called upon the government to promulgate a ‘jute mandatory packaging’ ordinance and offer much needed Research and Development (R&D) support as it is providing to textile and other industries. speaking to a group of journalists, Pakistan Jute Mills association (PJMa) members indicated that in india and Bangladesh wheat, rice and food grains were packed in jute sacks under a mandatory packaging order. they said government of Pakistan should also promulgate a similar jute mandatory packaging ordinance. they underscore that growth in fibre crop processing industry will not only create more employment opportunities in rural areas but also mitigate environmental damages being caused by usage of synthetic packing materials. they also urged government patronage to promote jute cultivation in the country as it would help Pakistan in saving over $100 million foreign exchange. STAFF REPoRT

lahore, haryana chambers to hold exhibitions in Pakistan lahore: Federation of indian chambers of commerce and industry (Ficci) and Punjab-Haryana-Delhi chamber of commerce and industry (PHDcci) are holding two separate ‘Made in india’ exhibitions in Pakistan in February 2012 and March 2012 respectively. this was stated by Lcci President irfan Qaiser sheikh on reaching Pakistan after a five day visit to india. Lcci Vice President saeeda nazar, chairman PiaF engineer sohail Lashari and executive committee Members Mian abuzar shad and nabila intisar were also part of the delegation. Lcci president said that both peace and trade would get a new boost as it is not only Pakistani businessmen who are visiting india but indians were also making efforts to strengthen relation with their Pakistani counterparts. Lcci president said Lcci delegation in its meetings with indian businessmen had conveyed their reservations about Pakistan specific non-tariff Barriers and called for their early removal. He expressed the hope that these ntBs would soon be removed to give peace a chance to prevail. STAFF REPoRT

APtmA urges govt to honour gas supply commitment lahore: all Pakistan textile Mills association (aPtMa) has said if the government opts for four days a week gas supply closure, then the whole textile sector would go on strike for an indefinite time. Federal cabinet should look into this matter and provide assistance to the sector. While addressing a press conference at aPtMa house, aPtMa office bearers including, acting chairman seth Muhammad akber, Punjab chairman ahsan Basher and Group Leader aPtMa Gohar ejaz, said the government promised a three day closure of gas supply to the textile industry, but suddenly, increased the load shedding plan to four days. seth akber said if the government continued gas closure for four days, then not only the textile sector, but the whole country would suffer. it would become impossible for the textile sector to pay back loans. “We won’t be able to buy cotton from farmers and mills would not run. Both agriculture and textile sector would collapse and economy of the country would worsen,” he said. He also said the industry would not be in a position to fulfill export orders and no one would purchase textile products from Pakistan. nAuMAn TASLEEM

Punjab to build grain silos with Rs230m lahore: in a bid to enhance grain storage capacity in the province, Punjab Food Department has completed project proposal and submitted Pc-1 for revival of silos having storage capacity of 40,000 tonnes, Profit learnt on Wednesday. Punjab secretary Food, irfan ali disclosed that it had been decided to initiate silos revival project in Multan with Rs250 million. the amount was originally earmarked in Punjab Budget 2011-12 for construction of concrete silos in Dera Ghazi khan and Lahore regions. However, as Dera Ghazi khan Project was in its initial stage – preliminary feasibilities and appointment of supervisory consultants were underway – government had decided to use allocated money for revival of existing silos in Multan, which would add an additional grain storage capacity of 40,000 tonnes, he maintained. IMRAn ADnAn

Cng stations to remain closed for 18 hours

were on the losing streak. the kse 100 index closed at 11283.89 with the loss of 88.32 points, while total volume stood at 32,278,131 along with the total value of 1,597,515,626. the kse 30 index lost 150.55 points to close at 10444.27 levels, and all share

index closed at 7818.86 levels after losing 62.51 points. total 62 scrips advanced 143 declined and 107 remain unchanged out of total 312 scrips traded. as long as the political uncertainty prevails, we may see the same kind of behavior at the

kse, said Bilal asif, Head of Research at HMFs. Volumes continued to dry up further depicting lack of investor confidence. He believes that the negativity may prevail in the current market until and unless investor’s doubts are settled.

Karachi: sui southern Gas company (ssGc) and all Pakistan cnG association have finally agreed to keep cnG stations closed for 18 hours in karachi and interior sindh under a ‘Gas Load Management’ programme. according to official sources at ssGc, the gas company, in accordance with Federal Government’s plan, has decided to shut down gas supplies to cnG stations in karachi and interior sindh from 11 pm on thursday, 8th December till 5 pm on Friday 9th December, 2011. the decision to close down cnG stations for 18 hours was taken after a meeting held between ssGc management and office-bearers and members of cnG associations on 7th December 2011 at the company’s head office. STAFF REPoRT


Profit 08-12-2011_Layout 1 12/8/2011 1:31 AM Page 5

Thursday, 08 December, 2011

For decades, the choices of Burma’s leaders kept it apart from the global economy. US is prepared to lessen the isolation and to help improve the lives of Burma’s citizens

news

us secretary of state, hillary Clinton

05

France vows powerful summit deal PARIS

P

REuTERS

ResiDent nicolas sarkozy and chancellor angela Merkel will lay out a plan to amend the eU treaty to anchor stricter budget discipline in the euro area, aiming to restore market trust and prevent the sovereign debt crisis spiraling out of control. a French minister said the leaders of France and Germany would not leave Friday's european Union summit until a "powerful" deal is reached to arrest the crisis. But while Paris voiced determination, a senior German official gave a deliberately downbeat assessment of prospects for an agreement in an apparent effort to jolt partners into accepting Berlin's terms and restrictions. "i have to say today, on Wednesday, that i am more pessimistic than last week about reaching an overall deal ... a lot of protagonists still have not understood how serious the situation is," the official told a pre-summit briefing. "My pessimism stems from the overall picture that i see at this point, in which institutions and member states will have to move on many points to make possible the new treaty rules that we are aiming for," he said, speaking on condition of anonymity. the euro slipped, european share prices turned negative and safe-haven German bond futures rose after the official dented investors' hopes of a comprehensive solution. U.s. treasury secretary timothy Geithner, whose fourth trip to europe in as many months speaks of the alarm in Washington at the damage the debt crisis could wreak on the U.s. economy, backed

the Franco-German plan to impose mandatory penalties on euro states that exceed deficit targets and bring forward a permanent rescue fund. "i have a lot of confidence in what the president of France and the minister are doing, working with Germany to build a stronger europe," Geithner told reporters after talks with French Finance Minister Francois Baroin. "neither nicolas sarkozy nor angela Merkel will leave the negotiating table of this summit until there is a powerful deal," Baroin told canal+ television. Figures released on Wednesday showed just how urgently some european banks need help. italian banks had to borrow 153.2 billion euros in emergency liquidity from the ecB in november, up from 111.3 billion euros at the end of October, Bank of italy data showed, another big leap in reliance on the central bank which has almost quadrupled since June, when italian lenders took 41.3 billion euros. euro zone banks took more than $50 billion in the ecB's first dollar funding operation since the world's leading central banks agreed last week to cut their cost, five times the $10 billion forecast in a Reuters poll of money market traders. and Germany is set to reactivate a bank rescue fund created at the height of the 2008 financial crisis at next week's cabinet meeting, a government official said.

FLY ME TO THE GLOOM the ecB's governing council holds a crucial meeting on thursday, before the eU summit, at which most economists expect it to cut interest rates to 1.0 per cent from 1.25 per cent, introduce longerterm liquidity tenders for banks and

financial regulation, growth supporting policies and more efficient use of european funds in the euro area, it said. With much of europe facing a relapse into recession in the coming months, airlines worldwide face severe losses next year unless europe's politicians get to grips with the region's debt crisis, the industry's leading trade group warned. the international air transport association (iata) shaved its main forecast for industry profits to $3.5 billion for 2012, and said the industry could plunge to an $8.3 billion loss with no region of the world exempt if europe's debt woes precipitate a new banking crisis.

COST TO GERMANY RISING widen the collateral they can use to borrow from it. ecB President Mario Draghi, who met Geithner on tuesday in Frankfurt, has signaled that a euro zone "fiscal compact" could encourage the ecB to act more forcefully. Ratings agency standard & Poor's heightened the sense of crisis this week by warning it could cut credit ratings across the 17-nation currency bloc, including for its eFsF rescue fund, a move that would fundamentally weaken it. a Reuters poll of 13 economists found 11 expect France to lose its top-notch aaa credit rating within three months, a potential blow to sarkozy's re-election bid. two days before the summit, new ideas bubbled about how to boost the euro zone's crisis capabilities. eU officials said leaders could decide to raise the combined lending limit of the temporary eFsF rescue fund and its successor, the permanent european stability Mecha-

nism, which France and Germany want introduced a year early, in 2012. But the German official said he could not foresee running the two funds simultaneously. He also objected to talk of issuing common euro zone bonds as a longer-term solution. a Franco-German letter sent to european council President Herman Van Rompuy, who will chair the meeting of 27 eU leaders, went beyond the treaty change proposal announced on Monday. Merkel and sarkozy called for a new eU fast track for progress on creating a common corporate tax base, a financial transaction tax and labor market regulations -- ideas that are anathema to eU members such as Britain and ireland. "a new common legal framework, fully consistent with the internal market, should be established to allowing for faster progress in specific areas," the letter said. the framework should also cover

Van Rompuy has proposed giving the permanent euro zone rescue mechanism the status of a bank that would allow it to access ecB funding, but Germany has opposed the move, saying it would breach a ban on the ecB financing governments. another German government source said Germany's net new borrowing could rise beyond the 26.1 billion euros planned for next year if euro zone leaders move forward the permanent european stability Mechanism to 2012. sarkozy and Merkel want treaty changes to be agreed in March and ratified before the end of 2012. if some countries block treaty change for all 27 eU members, the 17 euro states could proceed with an agreement on their own. Van Rompuy says tighter budget oversight sought by Paris and Berlin for the euro area could be achieved quickly with only minor tweaks to the eU treaty, which might not require full ratification procedures in many countries.

CORPORATE CORNER nIB contracts ZRg for collection call recording platform

demographics of mobile business professionals and tech savvy consumers. “it is an honour to have this appointment,” said Mr sarfaraz ali khan, ceO aBM Data systems. PRESS RELEASE

PtCl awards its top Agent of Contact Center

various roles as individuals, community members, leaders, educators, fathers, and family members have a responsibility and important role to play in promoting gender equality and ending violence against women and girls. Warid staff members marked White Ribbon day at their office, while company also broadcasted awareness text messages to its subscribers. PRESS RELEASE

nBP organises session on enterprise Risk management Karachi: in order to handle the proper logging and documentation of outbound calls related to collection and recovery, niB Bank has acquired professional it services for a collection call recording platform from ZRG international. During the agreement signing occasion, Mr ausaf shaikh, Head of networks at niB Bank stated, “Our bank will be receiving multiple benefits from this platform in the area of call documentation management, control and verifications. the fact that this solution does not force our users to change their standard operating procedure will result a significant time and cost saving for niB during our deployment.” PRESS RELEASE

toshiba increases footprints in Pakistan Karachi: toshiba singapore Digital Products and service Group (Ds) announced the official appointment of another new distributor, aBM Data systems (aBM), in Pakistan. With this appointment, toshiba increased the resellers’ network footprints in Pakistan with aBM as toshiba’s authorised distributors and service providers. this appointment reaffirms toshiba’s commitments to meet the high demands and

lahore: in recognition of her outstanding efforts for provision of best customer outreach services by Pakistan telecommunications company Ltd (PtcL), Haroon khan was given the "top agent of the contact center award” at the annual dinner gala and awards ceremony of PtcL contact center, Lahore. Mr Haroon khan received his award from PtcL senior executive Vice President commercial, naveed saeed, who was the chief guest on the occasion. PtcL’s executive Vice President contact centers, Junaid azim, and other dignitaries were also present. PRESS RELEASE

warid joins white Ribbon Pakistan Campaign Karachi: Warid telecom has recently joined White Ribbon Pakistan campaign that is aimed to end violence against women and girls in all its forms. Men and boys in their

Karachi: a two day training session on “enterprise Risk Management” was organised by national Bank of Pakistan for its employees. “enabling a risk management culture is critically vital, and sBP regulations make it necessary for banks to strengthen their risk mitigation processes,” said the renowned international consultant, Mr Horst simon, the trainer of the session. the training was organised in collaboration with terrabiz Group. President of nBP, Qamar Hussain, appreciated Mr Horst simon for articulating his expertise to the senior management. PRESS RELEASE

urbansole organises exhibition lahore: Urbansole, a renowned brand of shafi (Pvt) Limited, organised an exhibition to launch its spring-summer collection. Mr Jawad Musaddiq (Director, Urbansole), Mr shahid nawaz cheema (BDM) and Mr kashif Zorain (Brand Manager, Urbansole) represented the Urbansole team at the event and showcased their new collection to the media and dealers from across the country. all the participants were highly appreciative of the new designs incorporating the highest standards of comfort and durability. While talking to the media present at the event, Mr kashif Zorain assured that the new spring-summer collection will be available at all Urbansole outlets in summer 2012. PRESS RELEASE

KARAChI: Three day uAE Expo – Magnificent 7, came to an end with a lavish closing ceremony. Seen here is the uAE Consul General his Excellency Suhail bin Matar Al Ketbi, awarding a memento to Mr Amer Khan, Country Manger and Mr Joost Den hartog, Regional General Manager Etihad Airways for being the ‘official Airline” of the event. PRESS RELEASE

KARAChI: Sindh Minister of Information and Electric Power, Ms Shazia Marri standing alongside Mr Matt Cronje-CEo Emaar Pakistan and his team at Emaar Stall uAE Expo 2011. PRESS RELEASE

KARAChI: Mr Masood hashmi- President, Marketing Association of Pakistan, presenting certificate to a participant of ‘Media Planning Dynamics’, workshop organised by Marketing Association of Pakistan and Institute of business Administration. PRESS RELEASE


Profit 08-12-2011_Layout 1 12/8/2011 1:32 AM Page 6

Thursday, 08 December, 2011

06 Markets top 10 sectors

24% 09% 35% 10% 08%

Chemicals

01% 07% 02% 03% 01%

General Industrials

Construction & Materials Electricity Banks

Fixed Line Telecommunication

Oil & Gas

Financial Services

Personal Goods

Equity Investment Instruments

STOCK MARKET HIGHLIGHTS Index 11283.89 2826.66 2553.37

KSE-100 LSE-25 ISE-10

Change -88.32 -62.19 -14.29

Volume 32,278,131 1,285,335 43,480

Market Value 1,597,515,626 40,975,145 1,351,704

top 5 perForMers sector wise

Major Gainers Company Unilever Pak Foods AL-Ghazi Tractors Packages Limited Dadex Eternit Shifa Int.Hospitals

Open 1690.00 165.28 74.18 43.41 28.10

High 1700.00 173.54 77.88 45.58 29.39

Low 1695.00 171.00 75.00 45.58 29.39

Close 1698.33 171.07 77.88 45.22 29.39

Change 8.33 5.79 3.70 1.81 1.29

Turnover 15 1,987 22,826 2 2,500

5495.80 253.80 2577.17 176.67 158.73

5455.55 258.50 2598.00 175.00 160.80

5376.15 241.24 2510.00 167.84 151.30

5412.84 242.06 2566.41 167.84 151.78

-82.96 -11.74 -10.76 -8.83 -6.95

187 133,992 31 30,543 1,588,310

Volume Leaders Jah.Sidd. Co. Fauji Fert Lotte PakPTA SilkBank Limited Fatima Fert.Co.

5.44 52.95 9.38 1.67 22.80

5.56 53.79 9.55 1.73 23.30

5.20 50.40 8.75 1.56 22.27

5.25 50.53 8.79 1.60 22.44

-0.19 -2.42 -0.59 -0.07 -0.36

3,729,246 3,252,005 3,201,149 2,210,643 1,944,265

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

Per Tola (PKR) 57,631.00 51,608.00 1,084.00 1025.00

Per 10 Gm (PKR) 49,462.00 44,245.00 930.00 880.00

Per Ounce US$ 1,723.00 – 35.05 –

hIgh

low CuRRent

409.80 119.90 22.06 7.00 92.00

402.00 115.40 21.15 6.87 90.05

ChAnge

volume

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

402.21 115.99 22.06 6.89 90.36

Arif Habib Co SD Biafo Ind. Clariant Pakistan Dawood Hercules Descon Chemical

28.05 69.39 153.64 35.89 1.49

5.13 3.19 0.00 0.06 0.55

94,034 1,798,600 289 278,943 26,862

20.00 1.40 8.61 30.05 10.24

29.00 69.39 153.64 37.50 1.50

28.15 66.50 152.50 35.85 1.50

28.87 69.39 153.00 36.45 1.50

0.82 0.00 -0.64 0.56 0.01

1,689,569 10 1,804 101,880 2,982

1.80 52.69 14.27 7.61 19.94

20.79 1.46 8.79 31.00 10.10

20.00 1.35 8.63 29.60 10.00

20.00 1.35 8.66 30.05 10.00

0.00 -0.05 0.05 0.00 -0.24

1 6,507 1,100 414 9,012

25.82 3.60 40.34 7.70 20.50

Ados Pakistan AL-Ghazi Tractors Ghandhara Ind. Hinopak Motor K.S.B.Pumps

89.3356 139.5333 1.1490 119.8973

5.25 161.88 7.49 78.54 26.95

1.97 53.00 14.30 7.98 20.53

1.83 51.02 13.27 7.70 19.90

1.83 53.00 14.13 7.87 20.44

0.03 0.31 -0.14 0.26 0.50

3,101 64,581 2,536 903 1,419,943

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

International Oil Price WTI Crude Oil

Sell 89.70 119.77 139.80 1.1454 89.64 11.52 24.35 23.83 93.10

Brent Crude Oil

Atlas Battery Ltd. Bal.Wheels Dewan Motors Exide (PAK) General Tyre

170.00 23.60 2.20 177.10 16.00

27.10 4.10 40.50 8.59 20.50

25.15 3.26 40.01 7.70 19.48

25.90 3.90 40.50 8.43 20.50

0.08 0.30 0.16 0.73 0.00

8,219 151,477 2,251 3,414 125

5.99 161.99 7.95 79.95 26.95

4.60 158.50 6.66 74.62 25.61

172.89 23.70 2.20 178.50 16.83

169.00 23.70 2.05 173.00 15.71

110.49 111.43 150.02 150.00

5.25 158.63 6.66 74.65 26.95

$110.81

171.50 23.70 2.20 177.10 16.80

109.00 111.18 145.05 145.58

Dewan Sugar Engro Foods Ltd. Habib Sugar Mills Habib-ADM Ltd. Ismail Industr

2.25 23.95 27.23 13.30 65.00

2.49 24.25 27.48 13.69 64.99

AL-Abid Silk Mills Diamond Ind. Hussain Industries Pak Elektron Ltd. Tariq GlassXD

23.34 8.20 3.90 4.20 8.65

23.60 9.03 3.90 4.40 8.89

(Colony) Thal Ali Asghar Textile Amtex Limited Artistic Denim Mills Azam Textile

1.40 0.56 1.29 20.10 1.35

1.40 0.55 1.33 21.07 1.39

AHCL-DEC ANL-DEC ATRL-DEC DGKC-DEC ENGRO-DEC

28.90 3.50 121.61 20.25 126.68

28.60 3.47 119.49 20.25 123.99

Abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. Highnoon (Lab) IBL HealthCare XD

100.37 76.20 67.51 28.20 12.74

101.60 76.90 68.00 29.25 12.50

0.00 -3.25 -0.83 -3.89 0.00

30 730 2,005 809 45

1.50 0.10 0.00 0.00 0.80

2,700 500 213 38 1,313

0.69 -4.44

1,170 203

P.T.C.L.A Pak Datacom LtdXD Telecard Limited Wateen Telecom Ltd WorldCall Telecom

10.80 34.50 0.96 1.85 1.11

2.25 23.98 27.40 13.19 64.97

0.00 0.03 0.17 -0.11 -0.03

3,000 19,195 179,447 1,775 1,504

23.34 8.20 3.80 4.20 8.65

23.34 8.20 3.90 4.25 8.65

0.00 0.00 0.00 0.05 0.00

2 2 6 8,650 10

1.40 0.55 1.26 20.15 1.16

1.40 0.55 1.30 20.98 1.35

0.00 -0.01 0.01 0.88 0.00

511 500 1,802 13,064 52

28.00 3.36 116.55 19.76 121.00

28.21 3.46 117.30 20.09 122.70

-0.69 -0.04 -4.31 -0.16 -3.98

220,500 629,500 165,000 55,000 454,500

100.00 76.31 68.00 29.25 12.30

-0.37 0.11 0.49 1.05 -0.44

2,094 1,113 10,200 7,001 14,060

100.00 75.99 67.99 28.00 12.00

10.95 34.50 1.00 2.00 1.17

10.70 34.00 0.89 1.82 1.05

10.74 34.50 0.90 1.88 1.06

-0.06 0.00 -0.06 0.03 -0.05

873,286 50 179,056 2,098,153 74,429

0.28 36.50 0.61 1.63 41.70

0.37 36.55 0.67 1.68 41.90

0.37 36.02 0.60 1.62 41.26

0.37 36.08 0.64 1.65 41.30

0.09 -0.42 0.03 0.02 -0.40

9,500 851,435 98,815 25,551 54,238

60.24 10.31 5.57 11.87 29.53

59.20 10.45 5.75 11.98 29.90

59.00 10.20 5.46 11.66 29.46

59.00 10.28 5.55 11.80 29.50

-1.24 -0.03 -0.02 -0.07 -0.03

6,927 25,619 422,339 805,934 182,086

Banks Allied Bank Ltd Askari Bank B.O.Punjab Bank Al-Falah Bank AL-Habib

oPen

hIgh

low CuRRent

ChAnge

volume

Non Life Insurance 2.20 23.63 27.25 13.15 62.01

Electricity Genertech Hub Power Co. Japan Power K.E.S.C. Kot Addu Power

symBol

Adamjee Ins Ask.Gen.Insurance Atlas Insurance Cres.Star Insurance EFU General Ins

43.20 8.00 36.50 2.00 35.80

43.78 8.50 36.75 2.20 36.00

42.12 8.00 35.99 2.00 34.46

42.76 8.42 36.51 2.00 35.96

-0.44 0.42 0.01 0.00 0.16

13,373 1,218 1,993 1,065 747

13.50 1.40 65.53

14.50 1.40 65.53

0.00 0.00 0.00

2 1 157

0.32 16.30 15.17 1.00 0.80

0.02 0.00 -0.02 -0.25 -0.01

12,419 101 36,007 5,008 90,802

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

0.30 16.30 15.19 1.25 0.81

0.33 16.79 15.59 1.00 0.96

0.27 16.30 15.00 0.80 0.70

Equity Investment Instruments 1st.Fid.Leasing Mod Allied Rental Mod Atlas Fund of Fund B.R.R.Guardian Cres. Stand.Mod

1.63 21.64 5.78 2.24 0.42

1.60 21.64 5.90 2.32 0.44

1.60 20.90 5.78 1.92 0.37

1.60 21.64 5.85 2.24 0.44

-0.03 0.00 0.07 0.00 0.02

6,000 125 250,001 101 503

13.00 31.90 36.00 13.57 65.00 1.36 62.50 115.96 4.06 11.11 8.27 23.50 29.39 15.50 7.96 1.90 28.29 10.25 0.78 1.65 0.97 16.85 18.25 15.75 1.70

13.00 32.22 36.00 13.57 66.59 1.37 63.17 115.96 4.06 12.11 8.50 23.50 29.39 16.45 7.96 1.94 28.29 10.38 0.80 1.66 1.03 16.87 18.36 15.75 1.70

0.00 0.31 0.00 -0.94 0.00 -0.04 -0.78 0.00 0.01 1.00 0.20 -0.50 1.29 0.70 0.00 -0.06 0.00 -0.15 -0.02 -0.09 -0.02 -0.33 -0.54 -1.00 0.00

6,500 1,000 310 6,353 288 104,375 4,899 1 22,750 612 7,763 2,973 2,500 3,001 51 28,669 5 1,327,285 37,904 410,761 476,021 152,111 10,523 2,500 1

Miscellaneous Century Paper Pak Paper Prod. Security Paper P.N.S.C. Pak.Int.Con. SD TRG Pakistan Ltd. Murree Brewery Shezan Inter. Pak Elektron Ltd. Singer Pakistan Tariq Glass Ind. Grays of Cambridge Shifa Int.Hospitals Hum Network Ltd. Media Times Ltd P.I.A.C.(A) Pak Hotels P.T.C.L.A Telecard Limited Wateen Telecom Ltd WorldCall Telecom Sui North Gas Sui South Gas American Life East West Life Assur

13.00 31.91 36.00 14.51 66.59 1.41 63.95 115.96 4.05 11.11 8.30 24.00 28.10 15.75 7.96 2.00 28.29 10.53 0.82 1.75 1.05 17.20 18.90 16.75 1.70

13.01 32.50 37.10 14.95 68.49 1.47 65.00 115.96 4.40 12.11 8.50 23.50 29.39 16.50 8.96 2.25 29.00 10.60 0.87 1.95 1.09 17.18 19.39 15.75 2.39

Mutual Funds Fund

$101.24

volume

Fixed Line Telecommunication

Beverages Murree Brewery Co. Shezan Int’l

ChAnge

Pharma and Bio Tech

Automobile and Parts Buy 89.20 18.45 138.34 1.1366 87.38 11.28 24.17 23.69 90.49

low CuRRent

Future Contracts

General Industrials Cherat Packaging ECOPACK Ltd Ghani Glass Ltd MACPAC Films Merit Pack

hIgh

Personal Goods

Construction and Materials Al-Abbas Cement Attock Cement Berger Paints Cherat Cement D.G.K.Cement

oPen

Household Goods

Industrial metals and Mining Crescent Steel Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.

symBol

Food Producers 407.34 119.18 22.06 6.95 90.91

Industrial Engineering

Interbank Rates US Dollar UK Pound Japanese Yen Euro

oPen

Chemicals

Major Losers UniLever Pak Ltd. National Refinery Nestle PakistanXD Tri-Pack Films Fauji FertilizerXD

symBol

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

offer

Repurchase

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

100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000

100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000

nAv 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087


Profit 08-12-2011_Layout 1 12/8/2011 1:33 AM Page 7

Thursday, 08 December, 2011

Pakistan is a growing market and we are making long term investment to offer world class network to local consumers who are quality conscious

news

07

President and Ceo PtCl, walid Irshaid

proMoting trade econoMy

higher demand for dollar keeps rupee under pressure

Pak-Russia seek trade liberalisation

ImF forecasts Pakistan economy to grow at 3.5pc g Rupee under immense pressure on account of widening trade deficit g

KARACHI

P

KARACHI

R

GhuLAM AbbAS

Ussia offered inclusion of Pakistan into Generalised system of Preferences which provides for 25 per cent concession on current MFn tariff Russia, which is likely to join the World trade Organization (WtO) this month after at least 18 year long negotiation, may also agree to sign Preferential trade agreement (Pta) or Free trade agreement (Fta) with Pakistan after the former’s accession to WtO. exPaNdiNg marKets: Despite the proposal made by Pakistan to sign the Pta/Fta for enhancing existing bilateral trade, Russia was reluctant to accept the offer expressing its reservations by linking the issue with accessions to WtO which was under consideration. in the absence of such agreements, Pakistan’s share in the huge import market of Russian Federation was no more than 0.07 per cent. according to available data, Pakistani exports had however shown little increase during the last three years as islamabad has exported $144 million worth of goods in 2010 as compared to $127 million in 2008. imports from Russia decreased from $583.8 million in 2008 to $156.8 million in 2010 indicating a decrease of 73 per cent during last three years. Bilateral free trade agreemeNt: although there were many other issues including lack of liberalised visa regime, banking facility and land route to enhance bilateral trade, Pta and Fta were considered major steps in strengthening trade ties. in order to finalise the deal, Pakistan has proposed the Russian Federation for the initiation of negotiations on a bilateral free trade agreement (Fta) preceded by an early preferential trade agreement (Pta). addressiNg hurdles: in response to Pakistan’s proposal, the Russian counterparts expressed their reservations by linking the issue with their accessions to WtO which is under consideration in WtO since 1995. Pakistan took the following position which was conveyed to department of trade negotiations of ministry of trade of Russian Federation. keeping in view Russia’s condition of linking Fta with its accession to WtO, Pakistan highlighted the compatibility of Ftas with article XXiV of General agreement on tariff and trade (Gatt). the Russian side was informed that the above article provides for the contracting parties to establish customs unions and Ftas for trade liberalisation under WtO regime. Russian department of trade negotiations was further informed that services sector and investments have also been included in regional and bilateral Ftas through General agreement on trade in service (Gats). the doha stalemate: Furthermore, after the stalemate in Doha Development agenda (DDa), Ftas and Rtas have become a preferred mode of trade liberalisation. For instance Pakistan has concluded Ftas with china and sri Lanka and the Usa, which has entered into Fta with chile, singapore and Jordan. Russians were further informed that eU is also explicitly indicating its inclination towards Ftas with some asian economies like china, korea and india. russiaN accessioN to wto: Russians responded by reiterating that negotiations on the proposed Fta should begin only after Russia’s accession to WtO. according to them, in order to meet requirements of para-4-10 of the article XXiV of the Gatt, “the contracting parties must extend symmetric concessions to each other which should cover practically whole bulk of trade”. Pta covering selected segments of trade for tariff concessions can be

concluded only between the two developing countries. they further explained that agreements between developed and the developing countries with one way concessions (besides the scope of GsP), covered under the “enabling clause” provide for differential and favourable treatment and need waiver of WtO, approved by at least three quarters of its members. Russians however, agreed that Russia and Pakistan can enter into a frame work agreement designating only the mechanism of liberalisation without providing the respective positions on market access or any concessions. in the meantime, the Russian side has also conveyed their observations on Draft Pta forwarded by Pakistan. Pakistan provided necessary clarifications to points raised and incorporated references from WtO agreements as required by the Russian side. Revised draft of Pta was forwarded to Russians for their consideration. scrutiNisiNg ecoNomic imPlicatioNs: simultaneously, as a part of the process of accession to WtO, Pakistan had requested Russia for tariff concessions on certain items of exports to Russia against Pakistan’s support to Russia’s accessions to WtO. in return, Russian authorities offered inclusion of Pakistan into their Generalised system of Preferences (GsP) which provides for 25 per cent concession on current MFn tariff. Russia also agreed to grant Pakistan initial negotiating rights (inRs) on certain products. Government of Pakistan consented to Russians accession to WtO and our mission in Geneva was authorised to sign the necessary protocol. Russian ministry of trade later informed that they are still in the process of analysing economic consequences of creation of Fta with Pakistan. Ministry of commerce (Moc) has been requested to analyse Russia’s point of view on the proposed Pta/Fta with regards to their invocation of para-4-10 of article XXiV of Gatt as mentioned above. the issue can be taken up during the forthcoming meeting of iGc. However, the leaders of Pakistan and Russia, last month, have expressed willingness to speed up work on the proposed Free trade agreement and currency swap arrangement to boost bilateral trade and further strengthen their economic ties. Prime Minister syed Yusuf Raza Gilani and his Russian counterpart Vladimir Putin, had discussed the whole gamut of relations on the sidelines of 10th Heads of Government meeting of scO.

ISMAIL DILAWAR

akistani rupee continues to remain in negative balance against dollar on the back of a strong demand for greenback on the inter-bank market. as the day dawned on Wednesday rupee nosedived to, what the bank dealers called, a record low of Rs89.36 to a dollar due to importers’ panic buying on inter-bank market to clear import payment ranging between $40 million and $45 million. the most-visited website, forex.com.pk, reported that at 3:40pm rupee-dollar parity stood at 89.3 (buying) and 89.85 (selling) on the open market where, money exchangers say, demand for dollars was normal. Rupee is said to have depreciated by over 2 per cent during the single month of november. a bleak outlook for the country’s ailing economy is said to be another attributive factor for rupee’s ongoing downward trend against the Us currency. against government’s 4.2 per cent target for fiscal year 2011-12,

international Monetary Fund (iMF) has forecasted economy in Pakistan to grow at 3.5 per cent. Dealers on currency market, however, view otherwise. Malik Bostan, chairman exchange companies association of Pakistan (ecaP) told Profit that rupee, although weaker, remained range-bound on Wednesday and did not hit the record low. “it had dropped to the record low of 89.45 before the two-day holiday (on Friday),” the money exchanger said and added that, “today it traded in the range of 89.35 and 89.40 which is not a record.” ecaP chief cited renewed Pak-Us diplomatic tensions and the resultant flight of capital, forward booking by the panicked importers on the inter-bank market and an uncertain policy stance on the part of state bank about fate of rupee as attributive factors for current currency crisis. “Foreign investors are withdrawing their investment due to heightening tensions between the Us and Pakistan. importers are also buying six-month Lcs (Letter of credits) at Rs93,” Bostan said.

ClARIFICAtIon By nIB BAnK

W

itH reference to the article published on December 2, 2011, in which it is claimed that khawaja iqbal Hassan, the President and ceO of niB Bank Limited, was apparently forced to tender his resignation at the supposed behest of the majority singaporean shareholder of niB Bank Limited. in this connection, we would like to place on record that the facts contained in the referenced article with respect to the

resignation of Mr Hassan are not correct and we wish to respectfully deny that Mr Hassan was forced to resign from his position at niB Bank. after serving as the ceO of niB Bank for 8 years, Mr Hassan voluntarily tendered his resignation to the Board of niB Bank. the Board, after deliberating upon Mr Hassan’s request agreed to accept his resignation and thanked him for his efforts over the years while looking forward to continuing to work with him as a member of the Board of the Bank.

md ogdCl position vacant for last 8 months ISLAMABAD

t

AMER SIAL

He government has failed to find a suitable candidate for appointment as the Managing Director of the national flag carrier Oil and Gas Development company Limited (OGDcL) for the last eight months. an official source said that absence of a professional MD was affecting the performance of the company as its acting incumbent management was pressed to look towards, the Ministry of Petroleum, for seeking guidance on many important decisions. at the time of removal of incumbent MD of OGDcL on april 19, 2011, the Petroleum Minister had claimed that a compe-

tent professional would be appointed in the shortest possible time. the ministry had recommended name of one candidate for appointment to the Prime Minister in July but it was rejected with the observation that at least three names should be recommended. Later it submitted a three candidate panel in september, but no candidate was found appropriate. the ministry was directed to re-advertise the post. the source said the petroleum ministry had lost its steam in the appointment of new MD-OGDcL. the absence of a professional to lead the organisation was creating problems, as progress on many new initiatives for oil and gas exploration was being affected.

Polar wireless to introduce first worldwide sIm card in Pakistan ISLAMABAD

c

STAFF REPoRT

anaDian Mobile Virtual network Operator (MVnO) company’s Polar Wireless has announced the introduction of the first worldwide siM card in Pakistan. the siM card provides wholesale prepaid rates on voice, sMs and data services, when roaming. steve Robert, President MVnO company while leading a three

member delegation of Polar Wireless at Board of investment (Boi) stated in a meeting with the chairman Boi saleem H Mandviwalla. Director and advisor Jim Lovie and executive Vice President Robert Bent were also present in the meeting. Polar Wireless Mobile Virtual network Operator’s siM cards work in conjunction with current providers to eliminate roaming charges without going through the hassle of changing phone numbers or customer behaviour.

in his presentation about the company and its services, steve Robert, apprised chairman Boi saying, ‘Polar Wireless offers the first worldwide siM card that combines with a subscriber’s home siM card to provide wholesale prepaid rates.’ Polar siMs transformative technology is the first to allow a subscriber to keep their existing mobile phone and home phone number while taking advantage of discounted roaming rates abroad. all calls are carrier

grade voice quality and only premium telecom routes are used. Polar Wireless siM activates when subscribers leave their home wireless network. that is when the customer enjoys the same call flow, the same convenience, and has their call routed to the same destination. it supports the telephony of all accounts by managing the accounts, controlling the virtual network, decrementing pre-paid minutes in lieu of billing, and settling with foreign telecom entities, making

the user experience seamless. Polar Wireless is a private company that was incorporated in 2009 and is based in Richmond Hill, Ontario, canada. chairman Boi, saleem H Mandviwalla said we would support Polar Wireless to partner with both local carriers and distributors. He also said the service would be beneficial for the users travelling CHAIRMAn BoI SALeeM H MAnDvIwALLA abroad.


Profit 8th December, 2011