E-paper Pakistantoday Profit

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The PIA syndrome

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All Day iDream About Capindalism Page 3 France, Britain in the battle of downgradation Page 5 Pages: 7

profit.com.pk

Total 2,200 urea dealers in Punjab g Punjab has 2,093 feriliser dealers out of which only 1,595 are identified g Total 1,104,605 MT sugar arrived in 2010-11

Rs35 billion urea scam

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ISLAMABAD JALALUDDIN RUMI

aking notice of the report over missing of 50 per cent of total urea bags distributed among the ghost feriliser dealers in Punjab and Rs35 billion scam in which 78 thousand Urea bags were smuggled to afghanistan, national assembly Standing Committee on Commerce directed ministry of interior to allow Federal investigation agency (Fia) to launch investigation. na committee held under chairmanship of Engineer khurram Dastagir khan on Thursday was informed that 585 fake permits for sale and purchase of federalises were issued

by Senior Federal Minister for industries and Defense Production Chaudhary Pervaiz Elahi to dealers close to the Chaudrys' of gujrat between July and november 2011. Dealers were provided with 68125 MT of ferilisers and they could not be identified so far.

The representative from ministry of industry Qudrat Ullah told committee members that there were total 2200 urea dealers in Punjab that includes 600 new urea dealers who have been issued permits in last five months. Committee chairman while courting Punjab food department report stated that there were 2093 feriliser dealers around Punjab out of which only 1595 were identified.

While taking notice of the report over missing of 50 per cent of total urea bags distributed among fake urea dealers in Punjab led to shortage of urea availability in the local market that increases problems for farmers.

The dealers after buying ferilisers at rate of Rs1350 per bag sold them in the domestic market at a high rate of Rs1850 per bag.

The committee expressed annoy-

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Committee wants investigation ance over the issue and ordered investigation. Committee Chairman Engineer khurram Dastgir khan in his remarks said that the issue was a clear example of government’s inability and corruption and it cannot be neglected at any cost.

The committee also directed Trading Corporation of Pakistan (TCP) to manage buffer stocks of Raw Sugar, urea, wheat and cotton in order to curb hoarding and black marketing in the country. Chairman TCP, Tahir Raza naqvi said TCP acts on the specific directions of the Economic Coordination Committee (ECC) to import procure and sell select essential commodities - urea, wheat, rice and sugar. all imports, local purchases and sales undertaken by TCP are carried out strictly in accordance with Pakistan Procurement Regulatory authority (PPRa) Rules 2004. The goods are invariably subject to quality inspection by Pakistan Standards and Quality Control authority, he added.

Only pre-qualified bidders can participate in TCP's tenders, process of pre-qualification, however, remains open at all times to provide a level playing field to the market players representatives of the ministries of finance, commerce and industries are included in the tender opening and award committees to ensure transparency and compliance to the tender terms.

Shipment is allowed only after the goods have been duly inspected and cleared by a world class Pre-Shipment inspection agency appointed by TCP. a total of 1,104,605 MT of sugar arrived in 2010-2011 at an average landed cost of Rs59/- per kg. a quantity of 985,591 MT has so far been delivered to

provinces.Regarding the import of sugar, TCP Chairman said a total of 1,104,605 MT of sugar arrived in 201011 at the average landed cost of Rs59 per kg. a quantity of 985,591 MT has so far been delivered to provinces, Utility Stores Corporation (USC), Canteen Stores Departments (CSDs), Pakistan navy and Pakistan army, as per government directives, leaving a balance 117,078 MT in hand with TCP. On the issue of urea import committee was briefed that so far TCP has imported 3,532,255 MT of urea following the ECC directives since 2008. a quantity of 759,947 'MT was imported through SaBiC against the credit facility extended by Saudi Fund for Development (SFD) while the rest i.e.

2,772,308 MT has been imported through international tenders in accordance with PPRa Rules, 2004.

Entire quantity was lifted by na-

tional Feriliser Marketing Limited (nFML) at a price of Rs10,760 PMT, fixed by the defunct Ministry of Food and agriculture (MinFa). The difference between the price paid by nFML and the landed cost was picked up by the finance division. against the backdrop of gas shortage and the consequent shortfall in domestic production of feriliser in the country, TCP was directed on October 20, 2011 by the ECC to import 700,000 MT urea. a gallop tender was issued on October 21, 2011. The tender was opened on October 28, 2011 and a quantity of 260,000 MT was awarded to five different pre-qualified supplies another gallop tender was issued on Monday, november 01, 2011.

The tender opened on november 10, 2011 and a quantity of 440,000 MT was awarded amongst four different pre-qualified supplies.

Saturday, 17 December, 2011

Centre, provinces fail to overcome differences ISLAMABAD AMER SIAL

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EnTRE and provinces failed to narrow down differences on general Sales Tax (gST) on services and agriculture income tax at the meeting of the national Finance Commission on Friday. The meeting decided to constitute two committees to resolve inter provincial dispute on collection of gST on services and imposition of uniform agriculture income tax in provinces to enhance their revenue generation. The meeting reviewed implementation of nFC award for the second half of last fiscal year 2010-11 and performance during July-november period of current fiscal year 2011-12. an official source said while chairing the meeting finance minister abdul Hafeez Shaikh said there were concerns of other provinces on collection of gST on services by Sindh province. He urged that a solution of the dispute must be found. Punjab and khyber Pukhtoonkhwa had challenged collection of gST on services by Sindh claiming that there were input adjustment issues that need resolution. implementation of gST on services in integrated mode was on the agenda of the meeting. However, finance minister Sindh denied responding to concerns of Punjab and khyber Pukhtoonkhwa saying that it was a provincial matter and it could not be discussed at nFC forum. Talking to reporters after the meeting, finance minister Hafeez Shaikh said the meeting was attended by finance ministers of all the four provinces. He said during the second half January-June period of the last fiscal year, federal government transferred Rs807.08 billion to provinces under nFC award. He termed the 7th nFC award as a historic development, as the share of provinces in revenues has been increased to 57.5 per cent and federal share reduced to 42.5 per cent.

The provinces are being transferred additional revenues to increase spending on education, health, municipal services and law and order to improve the living standard of their population. Finance minister of Punjab kamran Michael said that he raised the concerns of Punjab on collection of gST on services by Sindh. He termed collection of gST on services by Sindh as disputed as he claimed that the largest numbers of consumers, who use and pay the cost of services were residing in Punjab and the province should have share from the collection.

He said that he had lodged a complaint on the delay in the release of monthly nFC share installments to Punjab as it was forcing the province to borrow that was increasing its overdraft. He said the meeting constituted a committee to resolve issues on gST on services.

He said provincial finance secretaries committee would look into ways to increase revenue from agriculture income tax.

Finance minister of khyber Pukhtoonkhwa Humayun khan said the province received Rs25 billion last fiscal year against the net hydel profits and during the current fiscal year they have received Rs12.5 billion under the net hydel profit. He said the province also received Rs15 billion during the last fiscal year as compensation for losses suffered due to war against terrorism.

Balochistan finance minister Mir asim kurd said they were getting revenue share under the 7th nFC award. He said development funds allocated to Balochistan projects remains unutilised and lapse at the end of fiscal year. He said they have lodged a complaint to the President and Prime Minister.

Islamabad pressed to abandon Pak-Iran gas project SITUATIONER

Pakistan gas project on the condition of anonymity.

energy and not succumb to US pressure.”

ALI RIzvI

ROCK BOTTOM

Pakistan asked to decouple from Iran as latter’s isolation grows g TAPI alternative unfeasible in Pakistan’s point of view g

OURCES close to the iran-Pakistan gas pipeline project have revealed to Profit that Pakistan is coming under increasing pressure from america to abandon the arrangement as iran’s relationship with the west descends to fresh lows and war clouds gather over Tehran.

“There is a very real threat of the iran-Pakistan gas project being abandoned. islamabad is under immense pressure from Washington to ditch the project as the likelihood of a war with iran is growing by the day,” said a senior official in the iran-

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Relations between Pakistan and the US have hit rock bottom following the deadly naTO attacks on two Pakistani check posts close to the afghan border that killed 24 military men. Pakistan’s army and government have reacted strongly, by cutting naTO supply-line and asking the US to vacate the Shamsi airbase.

Pakistan has long resisted western pressure to decouple from iran, especially since the latter’s alleged quest for nuclear weaponry prompted widespread condemnation and sanctions in an international effort spearheaded by Washington. and while there has been considerable debate within islamabad, recent Pak-US friction has underscored the need for Pakistan to safeguard its own energy interests.

Sources in islamabad’s intelligentsia privy to confidential information told Profit that “Pakistan is in a severe existential crisis. Coupled with the embittered relationship with the US, our ally in the war on terror, there is a prevailing view that Pakistan must keep its options open in the quest for

SUITABLE ALTERNATIVE Pakistan has been repeatedly advised to consider the TaPi (Turkmenistan-afghanistan-Pakistan-india) pipeline as a suitable alternative, a project islamabad considers unviable in light of uncertainties regarding the pipeline’s passage through large areas of unstable and hostile afghan territory. “We need to look at ground realities here. Both projects have been in the planning phase since 1992. Since the US invasion of afghanistan, the country is hardly stable.

The US-installed afghan government is considered hostile towards Pakistan. To think it would be wise for us to invest billions of dollars in the TaPi pipeline that is to pass through afghanistan would be a fatal error on our part,” said the iran-Pakistan project official. according to conservative estimates, approximately 40 per cent of afghanistan is still controlled by the Taleban. Then there is the problem of afghan war lords enjoying US patronage, and it would not be a surprise if they heavily tax the gas pipeline. in a recent article in the new York Times, the author has claimed that another reason why Pakistan has kept its options open is the inherent distrust of the military leadership in the capability of the 170,000-strong afghan army.

Pakistan feels the afghan military might be vulnerable

to breaking up into smaller factions in the event of a US withdrawal. This would have serious repercussions for Pakistan, if it comes to rely on gas entering Pakistan from a volatile and insecure afghanistan.

COST-BENEFIT FEASIBILITY “The iran option is certainly more feasible. On paper, work is in progress and feasibilities are being finalsed.

This project is a multifaceted one, with more than $3.5 billion in costs involved. This would require serious funding. Financing, is therefore a big project challenge,” sources in the iP project revealed. “Stakeholder consultation, along with social and environmental impact assessments, is being carried out. We are working on a timeline here, and if the infrastructure on our part is not ready by say 2014, then iran will start charging us a significant amount every day, whether we utilise the gas or not.” With mounting global pressure on iran, and the Un moving sanctions on the country, the likelihood of a full scale war is increasing by the day. Some analysts feel iran’s quest for nuclear enrichment material – which it insists is being utilised for civilian nuclear energy programmes – will threaten the security of israel. iranian President ahmedinijad and iran’s military high-command have been very vocal about their opposition of the west.

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Saturday, 17 December, 2011

debate

The PIA syndrome lead to more liquidity problems. in 2008, the airline’s accumulated losses stood as high as Rs73 billion and have risen to over Rs107 billion at present. Financially, it is this long term debt, and the losses that are not dealt with which is causing most other problems for the airline. There are a number of varied opinions regarding why this does exist; politics, global economy and inefficiency are cited as a few, and they all hold true.

dIveRgIng InTeResTs

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RohAIL SALMAn

n 1962, Pia, Pakistan’s flag carrier, created a world record flying from London to karachi nonstop in the shortest amount of time which was 6 hours 43 minutes and 51 seconds. The record remains unbeaten to this day.

Enter 2011, and the Hajj season: one of the busiest times of the year, with an immense amount of passengers, calling for good services, crucially on time flights and a good experience. But alas, the Pia is far from the airline that it was in 1962. With the flights being delayed for an uncertain amount of time and thousands of passengers stranded in the terminals, the Pia’s inefficiency was more evident than it has been for years. and it isn’t only these delayed flights and the stranded passengers that have plagued Pia and its passengers but a number of things which include the poor condition of the airplanes, the shortage of the planes themselves, crash landings and an administration that can barely be bothered. all in all, we can say that the past 3-4 years, have easily been the worst in the history for the national flag carrier airline of Pakistan, and things do not seem to be getting better.

The ‘loss’ bRIgAde Earlier this year, Pia announced that it had once again suffered a loss of 10.7 billion rupees, just in the first half of the year. The cabinet committee on loss making entities has said that it might use 20 billion rupees on the condition of restructuring the airline. One of the main reasons why the debt is increasing every year for the national flag bearer is its Rs15 billion long term debt, on which it has had to pay billions of dollars of interest every year. along with the long term debt, the short term liabilities for Pia are also increasing at an alarming rate and if not dealt with soon, will

First, we will take on the problem that is cited by the Pakistani officials. in order to take blame away from themselves and the airline, the directors of Pia and the government have time and again blamed the global economic conditions for its persistent financial losses. The primary blame goes, as expected to the rising oil prices in the world and the conflict in the Middle East. True as it might be, the rising oil prices and the conflict in many OPEC countries is not the only reason why Pia is in such a sorry state. Oil prices have been on the rise for the past five years, but the rise has not been very sharp or unanticipated. if proper planning was done, and appropriate cost cutting measures were used by the airline, the negative effect of this ‘bombing in oil prices’ could have been countered much more effectively.

From the height of success to the pits of hell are reminiscent of the forms of transportation in Pakistan that are much cheaper, like trains, busses and wagons and are hardly good for people who have been paying increasing amounts of airfare. adding to that fact is that the passengers have to deal with rattling aircrafts and poor equipment, and of course the hours of waiting at the Hajj terminals. Two Pia aircrafts were grounded on ‘technical grounds’ which left thousands of passengers stranded in the Hajj terminals. it is inexcusable for a national flag carrier to malfunction, and not have a backup plan for such a crucial time of the year.

When the airplanes eventually did arrive, upon landing, one of the plane’s engines caught fire, causing a horrid landing at the allama iqbal airport, which again left the Hajjis trapped inside the plane for several hours. So the Pia ended up making an event that many will cherish for their entire lives, one that they would remember for all the wrong reasons. not only did Pia mismanage its planes and flights, it also put the lives of many local passengers at risk when its Boeing 747 caught fire near the allama iqbal airport. Had it been anytime earlier, the plane might have had to make an even cruder or even fatal crash landing. Why the condition of the planes and the fleet is so, can be explained by analysing the situation in greater detail.

PlAyIng wITh lIves Due to the financial losses that the Pia has been suffering for the past few years, rather than using formal cost cutting procedures such as reducing the staff, they have resorted to play with their passengers’ lives by cutting back on their fleet maintenance and up-gradation. Pia has had a problem of maintenance and repairs for quite some time now. it is stated that the tender for the maintenance of the aircrafts has been given to a company that does not have an international reputation, and does not possess the necessary technology or skill to maintain an international airline’s fleet. it is pertinent to mention that one of Pia aircrafts was inspected at Paris airport by the inspectors of Safety assessment of Foreign aircraft (SaFa) while en route from Paris to Lahore. They detected several snags in the aircraft. The organisation warned Pia to overpower the shortcomings or face the consequences.

The team detected fuel leakage from one of the engines of airbus a-310. it is further stated that Pia tends to sublet dubious and substandard companies with no international credibility and little experience for maintaining its fleet. Some former employees have even come forth with claims that high-ups of Pia have financial stake in these small and substandard companies, which is why they are favored. The obscure vendors, hired by Pia, are one of the major problems.

PolITICs oF dIsAsTeR Other airline companies too have experienced losses in 2011 but for Pia, the same story has existed from way before the current year. adding to the fact that the Pakistani currency is in an abyss of devaluation, the problem just doesn’t seem to get better. What i meant by proper cost cutting measures was mostly, reducing the staff. The Pia is one of Pakistan’s largest employers, with over 18000 employees within its ranks. The average staff-planes ratio for an effective airline is supposed to be somewhere around 100:1 aircraft. The Pia however has an overwhelming ratio of 400:1, clearly being overstaffed. in order to run the airline smoothly, some hard decisions have to be made by the administration and one of the most important decisions that they do have to make is to reduce the number of employees in order to work more efficiently and reduce the losses at the same time.

The soRdId jouRney now we will take a look at how and why the passenger experience has decreased over the years for the Pia passengers. People have complained of soggy seat covers and messy floor carpets in the planes. There are bathrooms which seem to stink even when one is far away from them. Such aspects

vesTed InTeResTs, bleAk FuTuRe Once again we see that the interests of the higher ups are entertained over the interests of the general populace. it is not surprising to see that such a policy exists in a government institution when the powers that be have adopted similar policies themselves. Like the country, the national airline is also losing its national credibility and with the people in power, leeching off through their vested interests, the state of the airline has been left in tatters, and it does not seem that it will be fixed anytime soon, judging by how things are going. Unless the proposed bailout does take place, the future of the national airline does in fact look bleak. if the administration does not admit that it is more than the rising oil prices and currency devaluation that is hurting them, and takes solid measures, the fleet of Pia will soon be stranded on ground, rather than operating up in the air. a change of administration is desperately needed and even though it does sound clichéd, without an administration that actually cares for the safety and well being of the people, there is little chance for the revival of Pia. The writer is a freelance contributor

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Saturday, 17 December, 2011

EDITORIAL

Questioning the delusio of prior knowledge

Unacceptable T does not reflect too well on relevant ministries that the prime minister – furious at ‘slow pace of utilisation’ of aDB financing facility – was reduced to advocating the common-sense approach of finalising specifics of crucial projects prior to negotiating funding. also, it’s no less strange that finance minister Dr Sheikh’s nuggets of wisdom regarding prioritisation and development strategy, while spot on, are blatantly missing from his ministry’s own work ethic. That the said $2.9 billion funding related to 22 energy and highway projects further confounds the government’s position, betraying an inexcusable disregard for the country’s most pressing problems.

The system is in disarray. When ministers and secretaries draw embarrassing blanks before the prime minister regarding projects of vital national economic importance, something is rotten to the core. if such a situation develops when the country is mired in chronic stagflation, and debilitating energy shortage has come close to igniting public fury time and again, the government’s ineptitude is unac-

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ceptable.

The responsibility rests with the highest offices in islamabad not just because of nuances concerning burden of command and responsibility. Rather, the usual habit of stuffing crucial positions with political appointees, long the hallmark of Pakistan’s experiment with democracy, has risen to unprecedented levels in the last three-or-so years. it is, therefore, no coincidence that the present administration has presided over one of the most unattended downturns in our history. it’s not that Pakistan is without the necessary ingredients for halting its rapid economic deterioration. it’s that the right players are just not moving the right pieces on the board at the right time. in an era rapidly characterised by monumental and meaningful public mobilisation – facebook and twitter facilitated the fall of Mubarak’s 31-year regime in Egypt – the public will take strong notice of such negligence. and with polls not too far away, the government’s position, as indicated by its performance on crucial issues, is precarious.

Slow progress of Pakistan This is with regards to the feature, ‘Followers are not LEaDERS’, published yesterday. For the past decade or so, we have developed this dogma of believing that we are the best. We lean against our roots, culture and religion, to support this belief of ours. This acts against our learning ability i.e. we can constantly shift blame and not learn from more successful nations. if we look at the stats, we see that Pakistan has progressed, but not on a massive level. With technological advancements, aid, trade and several other developments over past 50 years, we are expected to see progress at a much higher rate. Since the feature talked about poverty, so i’ll keep my discussion limited to that. if we compare most of the stats with india, gDP of Pakistan is approximately $1100 per capita which is about $400 lower than that in india. in 2010, inflation in Pakistan was 15.5 per cent whereas 9.5 per cent in india. So now you see what 27 per cent of our population faces everyday? That's more than one in four people. above all, sitting on a computer with high-speed internet as sip on a cappuccino, it is very difficult to even imagine what life in poverty is. Pakistan is my home and i want best for it, but i don't overestimate its achievements and underestimate its shortfalls.

Javed Gilani COnOMiC policy making has failed us.

The global economic recession is a glaring example of the failure of economic fundamentals that were once deemed infallible. We were told that the systems formed marked the end of a new era where a recession like the great depression of the 1930s would be a thing of the past. it was therefore ironic when the markets collapsed in 2008 and the debt bubble formed through imprudent policy making finally burst. The people wanted answers.

They stood divided. Uneasy, guilty tortured, holding on to what they were taught when they went to schools, and what they saw, which defied everything that they were taught. They stood divided, trying to reason but their delusion of preknowledge hindered them. They started anew, and decided this was unacceptable.

Only last month students at one of the most prestigious university, Harvard, staged a walk out of their economics course. Their reason for the protest was simple.

They said that their course on economics propagated a conservative mindset in the guise of what was said to be economic science. The theory, they argued, was consistently perpetuating social injustice and breeding socio-economic disparities.

This marked merely a beginning of a string of protests against modern economics as it is being taught in some of the leading institutions of the

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Can the present generation avert an economic armageddon by questioning the economic paradigms they were taught?

world. The global economic crisis has reinforced the mistrust of people in theoretical economics. and they have a point. Economic paradigms are formed with the knowledge of the known and not the unknown. it is common knowledge that the real market revolves around a string of intangible factors that are not taken into account. Let’s take for instance the example of the black market economy, let’s talk about legalised versions of corruption, let’s talk about financial embezzlement, and let’s talk about vested interests. a simplification of economic policies without in effect suggesting policy decisions that eliminate these intangibles from functioning is fallacious to say the least. it is a façade, one that is bound to crumble.

Capitalism is a tale of individuals seeking self interest. Why then are we taught in our economic classrooms that the free market will effectively eliminate public goods that will be underprovided due to the lack of self interest and profit maximization? There is the problem of free riders. But what is to determine who should deserve a particular commodity, while others will be excluded.

Our text books tell us that the government will have to provide these facilities for the common man. Have they done so? That is highly questionable given the extent of protests that have been witnessed in more than 900 cities. The fact that people in developed nations have been forced out on the streets, points to the growing divide in socio-economic disparities. Why have policy makers insisted upon a free market mechanism in the presence of knowledge that without government intervention such a system is bound to fail.

The fact that those people responsible for the global economic crisis went to some of the leading institutions of the world, points towards the blatant failure of these institutions. The students have realised this and a movement has begun where the clamour for a just human centric economic system has gained currency. Can the present generation avert an economic armageddon by questioning the economic paradigms they were taught, remains to be the million dollar question.

The writer is Chief Manager SME bank, and a leading banker with over 30 years of experience

MuhAMMAD uSMAn LAhoRE

All Day iDream About Capindalism

Maheen Syed EEMS like now adidas has a lot more in store to dream about other than sports, ever since it tasted the fruit of bringing capitalism to developing countries, like india. Many believe that just because the capitalist world is losing money on the other side of the world, it is diverting its focus towards rapidly developing countries.

Through an insightful observation, it has also been deemed that whenever multinational companies go out of the

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way to accommodate their customers or cut down their costs to lower the price of their goods; there is always a catch. Surprisingly, adidas recently launched trainers for only $1 in india, and to my surprise, they looked good and expensive.

For any envious layman – envious because getting a pair of adidas trainers for just $1 is not even funny for it tinkles one’s buying taste buds – the purpose of coming up with such a scrumptious deal would seem like an act of social work. But the actual reason for the wise move, as also highlighted by the country head of adidas, is to capitalise on the country’s soaring population (rightly put as Corporate Social Responsibility). The country head also added that, “adidas can sell its trainers for $1 and can still make money”. now, let’s unravel this mystery of possibility.

Even if indian labour’s basic pay is $1 per day, based on piece rate system,

then also the company is not making ‘any money’ at all. There is no doubt that per unit cost to the company of producing these trainers must be low, depending upon the sourcing; the product must also be of low quality or the efficiency of the production unit must be giving a great benefit of economies of scale. Well, whatever the case, money making is only achievable if the company sells high volumes of these trainers because then only can it cover the costs and make profit.

The above mentioned analysis is just one side of the picture. The import taxes are so low and foreign investments policies in india are so welcoming that multinational brands are genuinely attracted towards the country. india is totally tuned into the incentives, rewards and profit motives of capitalism that it now accounts for at least four-quarters of india’s gDP. The thought that india is expected

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

Hello my friend, capitalism, we meet again and this time, luring ADIDAS to India

to surpass China in the next few years might sound wishful to many of us, but this is what india is actually heading towards. india's economy emerged from the global recession in better shape than China's, despite its slightly lower growth rate. and, no matter what anyone says or believes, capitalism does provide answers to restore economic balance, if used in a right and constructive manner.

Today, interestingly, india is inventing its own form of capitalism, where the major dominance is of family owned businesses like Tata, Birla, Reliance, etc. Earlier, Tata had also launched the world’s cheapest car for $1200 in india. Similarly, Reliance also sold low-price cell phones to street hawkers and rickshaw pullers. i would reckon indian capitalism as ‘Capindal-

ism’, which is more of capitalism with indian characteristics; in which profits are controlled not by institutional shareholders, but mainly by the state, or by entrepreneurs and their descendants. But that doesn’t imply that the MnCs are forbidden fruits; they still continue to enjoy their tasteful experience of bringing home, capitalism, just because indian government is now focusing on cutting down on the ownership of the traditional family-run businesses that have taken over most of the market share for more than a decade now. So, hello my friend, capitalism, we meet again and this time, in our neighbourhood.

The writer is Sub-Editor, Profit.

She can be reached at syedmaheen@hotmail.com

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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Pakistan has so much potential and is blessed with significant natural resources which have not been properly utilised. We have not managed our water resources efficiently

news

Ceo Alyph limited, Izzat Majeed KARAChI GhULAM ABBAS

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KARACHI FACES GAS SHORTAGE

VEn though all Cng stations across Sindh remained closed on Friday, people in many parts of the city faced acute shortage of gas. Citizens could not prepare their meals as there wasn’t sufficient supply of gas in the affected areas including gulistan-e-Johar, korangi, Malir, north nazimabad, Soldier Bazaar, Saddar, etc. Low pressure of gas continued from 11:00 am to 9:00 pm in various parts of the city. Confirming the shortage and load shedding in the city official sources at Sui Southern gas Company (SSgC) said that with the jump in demand the company was receiving complaints of lower pressure of gas from different parts of the city.

Owing to the huge gap between demands and supply of gas which has affected industrial, commercial and domestic consumers badly, the industries of the city have also agreed to discontinue gas consumption on two Sundays of December. all industries in karachi and interior Sindh have voluntarily agreed to discontinue gas usage for 24 hours beginning at 7 am on Sunday, 18th December till 7 am on Monday, December 19. a unanimous decision in this regard was taken in a meeting chaired at the governor House on 15th December by gover-

nor Sindh Dr ishrat-ul-ibad and attended by SSgC management and office-bearers of majority of trade bodies and associations representing major industrial areas.

The voluntarily closure, sources in SSgC claim, will help ease gas shortages in the wake of an extraordinarily acute situation, and will help to ensure normal gas pressure and bring back line pack situation to normalcy for the next six days. SSgC was represented by Syed Hassan nawab, Deputy Managing Director (DMD) Operations and Shoaib Warsi, SgM (Distribution-South).

Talking to Profit, Hassan nawab, said there was a demand of over 1300 MMCFD against the available supply of 1100MMCFD in the SSgC’s system with a shortage of over 300 MMCFD. Low pressure in gas supply was due to the high consumption of gas especially during the timing of lunch or dinner as the demand escalated during these periods. To avoid shortage of gas to the domestic consumers, he said, SSgC was going to stop gas supply to industries for two days this month in addition to the weekly scheduled closure of Cng stations.

To a question, he said, the closure of both Cng stations and industries would help increase the line pack (the actual amount of gas in the distribution system) which has fallen from 950 mmcfd to a historical low of 750 mmcfd. To make enough gas available for domestic consumption,

PIAF expresses concern over Pakistan Railways

Adb assures continuous support to bIsP

were generating a profit of billions of dollars while, not only Pakistan Railways, but the national flag-carrier is also making huge losses.

He said Pakistan Railways is one of the largest institutions of the country, as it is the most important source of passengers and industrial goods movement across the country. While citing the stats, he said approximately 65 million passengers annually travel through Pakistan Railways while, important items like petroleum products, oil, wheat, coal, fertilisers, cement, sugar and thousands others are also distributed. Pakistan Railways is still facing grave losses despite being largest institution of the country. indian Railways is the 4th largest railway network after United States, Russia and China. if indian Railways can turn into a profitable institution then Pakistan Railways can also be one of them, he added.

ISLAMABAD: Federal Minister and Chairperson Benazir income Support Programme (BiSP), Madam Farzana Raja, while talking to a high level mission of asian Development Bank (aDB) led by Mr Michiel Van Der auwera, said by imparting vocational and technical training to millions of youth belonging to deprived segments of society, BiSP is playing a pivotal role in eradication of poverty as well as socioeconomic uplift of these families.

She said BiSP intends to achieve economic self-sustainability for these segments of society through its Waseela-e-Haq and Waselea-eRozgar initiatives. The mission assured BiSP of the continuous support of aDB and acknowledged BiSP’s progress in achieving the stated objectives in an efficient manner. Mr Michiel said aDB is seriously considering collaboration and cooperation with BiSP in the coming years. GNI

LAhoRE STAFF REPoRT

P

akiSTan industrial and Traders associations Front (PiaF) has expressed deep concern over government’s ability to ensure adequate supply of diesel to Pakistan Railways, bringing a halt to the functioning of all trains, putting commuters into troubles and denting business activities relating to transportation. in a statement issued here on Friday, PiaF Chairman Sohail Lashari said lack of proper planning, bad governance, corruption and non-availability of gas and electricity, have jolted the very basis of the country. The government should immediately initiate consultation with the private sector to bring back the lost glory to all state owned enterprises.

PiaF chairman said the railway systems of the neghbouring country,

Railways is one of the largest institutions of the country PiaF Chairman urged the government to take strict measures to make Pakistan Railways corruptionfree, as the menace of corruption is pushing this institution towards destruction. He said as long as this institution would not purge of corruption, it is impossible to put it on the path of development therefore, government should take concrete measures in this regard. also, the private sector has the ability to turn these institutions into profit therefore; these people should be taken on board to get rid of the problems being faced by Pakistan Railways and Pia.

Bears throng KSE as index slips by 111 points KARAChI STAFF REPoRT

T

HE kSE-100 index recovered a 100 odd points thanks to an eventful second half but closed the day at 11,028 levels, down 111 points. Oil and fertiliser stocks invited fresh buying from large local institutions at cheap price multiples and witnessed significant recovery from their lows in the absence of major foreign selling. almost all main banking stocks

closed in the ‘red’ as Moody’s reiterated their outlook for Pakistan banks as negative. PPL managed to close in positive due to the expectations of higher earnings on account of an increase in productions flows. The volume leader of the day was Engro with 4.9m shares.

The index was poised for another brutal pounding today as morning news reports suggested that containing the fiscal deficit below 7 per cent is becoming increasingly unlikely. To add insult to injury, Moody’s issued a report reit-

erating its negative stance on the local banking industry. add all that to the prevailing memo gate scandal rocking the political establishment’s foundation and the confirmation of the USD700m US aid freeze, the kSE-100 index did not stand a chance as the index plummeted 111 points to close at 11,028 points.

Volumes clocked in at 47m shares with Engro topping the volume leader board with 4.8m shares. With its share price below the Rs100 mark, the script has been a poster child of investor dis-

the company was taking all the necessary actions.

Under the acute shortage of gas, SSgC was also supplying on 80 to 82 MMCFD to karachi Electric Supply Company (kESC) against the previous supply of over 150 MMCFD, he said.Later on Friday, Chairman Businessmen group and former President kCCi Siraj kassam Teli, Chairman Sindh Board of investment and former President kCCi Zubair Motiwala and President, karachi Chamber of Commerce and industry Mian abrar ahmad attended a meeting in islamabad on ‘gas Load Management’. They apprised Dr asim Hussain, Petroleum Minister about the colossal production losses owing to kESC’s 12 hours industrial load-shedding due to low gas pressure. according to sources at kCCi, Petroleum Minister had agreed on gLMP for kESC so that karachi’s industry runs on both gas as well as electricity supplied by kESC. gLMP for kESC will be decided by Petroleum Minister and Finance Minister. Petroleum Minister further gave assurances to maintain required gas pressure for the industries. Siraj Teli requested that in light of the decision of the said meeting the industry will remain closed on two Sundays in the month of December provided that required gas pressure to the industries shall be maintained during six working days a week.

Iran, kPCCI underscore need to exchange trade delegations PESHAWAR: iran and khyber Pakhtunkhwa Chamber of Commerce and industry (kPCCi) underscored the need to exchange trade delegations and hold exhibitions to benefit from each other’s experience in order to promote trade ties between the two sides. “it’s time to improve trade relations and we’ll continue efforts in this direction,” said Hasan Darveshvand, Consul general of iran Consulate at Peshawar, on his visit to the chamber on Friday. iranian diplomat said Pakistan and iran have decades-old ties, historically, geographically and culturally, which need to be further developed. STAFF REPoRTER

Inconsistency in rules governing stock exchanges KARACHI: articles of association (aoa) regulating the country’s stock exchanges are inconsistent with those of the federal laws promulgated through a Presidential Ordinance to regulate the corporate firms, Profit learned on Friday. While it has been years that aoa formulated front and apex regulators at kSE and Securities and Exchange Commission of Pakistan (SECP) have now discovered the “inconsistency” in the relevant laws governing the country’s ill-regulated and therefore, barren bourses. Back in July this year, SECP sent a letter to the three stock exchanges in islamabad and Lahore and pointed towards the discrepancies in aoa and Companies Ordinance 1984. The incompatibility is primarily related to the tenure of kSE’s Board of Directors. ISMAIL DILAWAR

APCngA rejects ban on import of Cng kits, cylinders dain in recent times. With the memo gate scandal ripening with each day as new details are revealed, the market’s downward spiral appears to have no definitive end in sight, said ali Hussain, Sr. investment analyst at HMFS. The kSE 30 index closed at 10154.14 levels with the loss of 97.78 points, while all Share index closed at 7638.56 levels after losing 76.59 points. Total 54 scrips advanced 159 declined and 104 remain unchanged out of total 317 scrips traded.

ISLAMABAD: all Pakistan Cng association (aPCnga) on Friday rejected the ban imposed on the import of Cng kits and cylinders and said the decision will encourage use of sub-standard kits and non-Cng cylinders that would increase the number of fatal accidents. Chairman aPCnga, ghiyas abdullah Paracha, in a statement demanded immediate taking back the decision, as it would encourage use of substandard and non-Cng kits and cylinders, which would increase fatal accidents and loss of precious human lives. Economic Coordination Committee (ECC) on Thursday also approved imposition of ban on import of Cng cylinder and conversion kits, in wake of current gas shortage in the country. installation of Cng kits in new vehicles was also banned. STAFF REPoRT

Profit for e-paper_Layout 1 12/16/2011 11:51 PM Page 5

Saturday, 17 December, 2011

We are an agrarian society and we forget that to our detriment. We can be a nation that feeds the world. Our agrarian base can sustain us and the rest of the world

news

Ceo bMA Capital, Moazzam M Malik

France, Britain in the battle of downgradation

Consumer prices flat in november WAShIngton REUTERS

C

Anglo-French relationship continues to nosedive into oblivion as tension mounts following the unceremonious EU summit

g

KunWAR KhuLDunE ShAhID

M

Y word has Christian noyer been throwing some scrumptious pies in the Euro cauldron off late! The governor of Bank of France while pointing fingers – of all kind and creed one has to admit – at Britain’s economic conditions asserted that France’s cross channel rivals possess much stronger credentials for being stripped off their supreme credit rating. This little round of French bullets has been fired by the banker at a time when the downgradation of his country’s triple a status is on the horizon. noyer was uninhibitedly vociferous in the noise he generated against Britain, claiming that United kingdom faced bigger deficits, had more debt, had considerably higher inflation, had lesser growth and has become the hub of credit shrinkage. Mr noyer also had a scorn or two to throw at the agencies, who he labeled as ‘incomprehensible and irrational’. This war of words has come at a time when anglo-French relationship has penetrated into the frosty realm of friction following the recent EU summit.

Francois Baroin, the French finance minister, cranked the verbal warfare up a

couple of notches by claiming that Britain has now been marginalised following the summit and is facing an economic fix owing to coalition policies. Baroin reiterated that the pact was backed by every European country barring the solitary exception of Britain, “which history will remember as marginalised”. However, the tastiest serving, that had journalists all over the globe hankering after phrases to blow the matter out of proportion, came when Baroin juxtaposed Britain’s economy with that of greece claiming that the former has a deficit level close to the latter and had much higher inflation prospects than France in this moment in time. and of course this further whets the French appetite of hurling coals over Britain’s economy and indeed their decision to detach themselves from the eurozone.

Due to the combination of the aforementioned swipes, French leaders have asserted that if France were to be downgraded, they should be preceded by Britain in this regard.

The British hierarchy, on the contrary, has been more subtle in their jibes as they vie to reduce French proclamations to the stature of panic attacks. and, if one considers the fact that France might be finding the prospect being downgraded hard to digest one senses the raison d'être behind British assurance. a

government source, quite cheekily expressing the British standpoint with regards to the French accusations said, “it’s so obvious what they are up to. They are in a completely different place to us. Where do you hide a tree? in a wood.” anglo-French relations continue to strain as the tension escalates owing to the euro crisis and its related chapters. nicolas Sarkozy dubbed David Cameron as a stubborn child following the latter’s demand for legal safeguards for the city of London at Brussels.

Earlier at another summit this year Sarkozy even went as far as saying that Cameron “missed a good opportunity to shut up.” Considering the collaboration that the two leaders flaunted during the nato campaign over

05

Libya, the recent turn of events does suggest that the relationship between Britain and France is nosediving into stupor. France was one of 15 eurozone members who were “put on a negative watch by Standard & poor’s” earlier this month – even so, it was one of the six single currency countries with a triple a rating that had the sword of a two-notch downgradation hanging over their heads. as things stand, Britain’s position in this regard is not under threat and hence the French clamour might be more hollow than concrete.

The writer is Sub-Editor, Profit. He can be reached at khulduneshahid@gmail.com

OnSUMER prices were flat in november as americans paid less for cars and gasoline, while the 12-month inflation reading fell for the second straight month, which could give the Federal Reserve more room to help a still-weak economy. The Labor Department said on Friday the Consumer Price index was unchanged last month. Economists had expected an increase of 0.1 percent after a drop of 0.1 percent in October. Prices rose 3.4 percent in the 12 months through november. That is off from the 3-year high of 3.9 percent clocked in September, and Friday's report backs the view that the spike in inflation is subsiding. Economists and investors see inflation cooling over the coming months, which could help convince the Federal Reserve to do more to bring down the country's 8.6 percent unemployment rate. Earlier in the week, the Fed warned that turmoil in Europe presents a big risk to the U.S. economy, and policymakers left the door open to possible further steps to boost growth. Fed officials are divided among those who think high unemployment and sluggish growth require more action and those who view the central bank's already-aggressive efforts as bordering dangerously on an invitation to inflation. Most economists have said the Fed's next meeting on January 24-25 would be the more likely occasion for any new moves to add to the U.S. central bank's already extraordinary push to bring down borrowing costs and help growth.

CORPORATE CORNER engineers Pakistan organises engineers’ Convention

1236 for helpline, and 1200 for billing helpline, where trained and professional executives are providing personalised attention and service. “at PTCL, we remain highly conscious of the fact that our success and growth can only come from satisfied customers,” said PTCL CEO and President, Walid irshaid. PRESS RELEASE

sakura restaurant launches new menu

LAHORE: Engineers Pakistan organised Pakistan’s largest Engineers’ Convention in Lahore, titled ‘Role and Protection of Engineers’. Engr Rehman Maqbool, Engr M Sadiq, Dr M Yasin Bhatti, Engr Bakht Bahadur Rana, Engr Mushtaq gill, Engr arif Shiekh and Chairman Engineers Pakistan Eng Javed Salim Qureshi, addressed the convention. Unanimously, a resolution was passed amongst the presence of more than 500 engineers in the chairmanship of Javed Salim Qureshi, whose salient clauses were that the government should arrange jobs for the fresh engineering graduates, only engineering professional should be imposed in all the engineering departments, engineers should be provided a pay scale, equal to doctors; elections shall be fair and transparent and Pakistan Election Commission shall stop the officials in current government to misuse their authorities. PRESS RELEASE

PTCl enhances customer care to new levels ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has enhanced its customer care services. as part of its ongoing commitment to provide online customer assistance, PTCL is offering dedicated 24-hour, seven-days-a-week helpline services. Customers can call 0800 80800 for placing order, 1217 for phone directory, 1218 for registering complaints,

ISLAMABAD: a new menu was introduced to the famous Sakura restaurant of the islamabad Marriott Hotel. The chief guest on the occasion was the honorable ambassador of Japan to Pakistan, His Excellency Mr Hiroshi Oe. The colourful and well-organised evening was attended by a large number of elites of the city including ambassadors, diplomats, celebrities and food lovers. general Manager islamabad Marriott, Mr Hurtmut noack, on the occasion unfolded the theme of the menu and said that the newly introduced menu is extremely popular all over the world. He further said that the Sakura dishes are prepared from the Chef’s heart. PRESS RELEASE

samsung celebrates 300m global handset sales LAHORE: Samsung Electronics Co, Ltd, a leading mobile handset provider, announced that it has this year achieved annual mobile handset sales of 300 million units for the first time in Samsung’s history. Managing Director Samsung Pakistan, Mr

Hee Chang Yee said; “We are incredibly proud of this record-breaking sales milestone and have exceeded the annual target announced early this year. Our performance in the global mobile phones industry remains unrivalled, across a broad range of models.” PRESS RELEASE

dr Arbab Alamgir briefs nhA on e-35 and lowari Tunnel

impressive performance of outstanding schools and teachers in the province of Sindh. Pir Mazar ul Haq, senior minister, education and literacy, graced the occasion as chief guest. Of the many teachers and schools who participated in the intel Tech Programme contest, 11 teachers won awards, in recognition of their accomplishments using technology effectively in promoting inquiry-based learning. PRESS RELEASE

ISLAMABAD: Federal minister for communications Dr arbab alamgir khan has directed to expedite the land acquisition process for Burhan-Manshera Expressway (E-35) so that construction work on the project can be stared soon. The minister also directed to finalise the liability issues with contractors of Lowari Tunnel so that construction activity is re-activated.

Shahzada Mohiyuddin Mna, M Saleem provincial minister for population and chairman nHa Syed Muhammad ali gardezi, were also present at the occasion. gM (E-35) Mr azfar ahsan khan while briefing the federal minister said that 110 km expressway will be built with a cost of Rs47 billion within a period of 3 years. He told that Rs1405 million have been given to nHa for which the land acquisition is in process, while Rs615 million are still needed. PRESS RELEASE

KARAChI: Collectibles recently launched Maurice Lacroix watches in Pakistan. Present at the occasion are Mr Rameez Sattar CEo Sonraj Pakistan and Mr Didier Boschung Council General of Switzerland. PRESS RELEASE

Intel honours teachers and schools with awards

KARAChI: Photo shows vice Consul General of Switzerland, Ms Elizabeth Bucher, Chairman, FPCCI Aviation Committee, Yaya Polani, Musician “Alphorn Player” from Switzerland, Franz Keller, Country Manager Pakistan, Swiss Air Lines, Yasmin Peer Mohamed, and Mehtab Chawla on the occasion of a reception hosted

by Switzerland Consulate. PRESS RELEASE

KARACHI: intel Pakistan organised the intel Education awards Ceremony in karachi, under the intel Edication initiative, to recognise the

Profit for e-paper_Layout 1 12/16/2011 11:52 PM Page 6

Saturday, 17 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 11028.14 2715.4 2541.37

KSE-100 LSE-25 ISE-10

Change -111.38 -29.85 -12.07

Volume 36,555,986 1,385,821 64,837

Market Value 1,958,911,309 33,397,455 2,169,939

top 5 perForMers sector wise

Major Gainers Company Indus DyeingXD Indus Motor Co. National Refinery AL-Noor Suger Mills Tri-Pack Films

Open 369.62 198.00 230.88 52.69 165.22

High 388.10 204.50 236.00 55.32 168.50

Low 374.99 200.00 225.50 52.99 163.00

Close 388.10 204.04 234.23 55.32 167.24

Change 18.48 6.04 3.35 2.63 2.02

Turnover 4,296 5,154 141,048 2,430 6,005

2569.45 2290.60 144.98 374.86 195.84

2573.76 2300.00 144.98 378.00 198.00

2442.76 2177.01 138.00 365.10 191.00

2503.89 2228.27 138.00 369.49 191.46

-65.56 -62.33 -6.98 -5.37 -4.38

148 33 494 8,919 4,442

Volume Leaders Engro Corp Lotte PakPTA Fatima Fert.Co. Fauji Fert BinXD D.G.K.Cement

99.08 8.77 21.50 46.18 19.55

100.00 8.80 21.33 46.18 19.50

95.20 8.31 20.76 44.51 18.55

96.73 8.68 21.26 45.15 18.69

-2.35 -0.09 -0.24 -1.03 -0.86

4,859,333 4,117,565 2,924,263 2,877,483 2,463,348

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

Per Tola (PKR) 53,327.00 51,608.00 995.00 1025.00

Per 10 Gm (PKR) 45,768.00 44,245.00 854.00 880.00

Per Ounce US$ 1,596.00 – 35.05 –

hIgh

low CuRRenT

ChAnge

voluMe

421.50 107.60 21.00 6.70 87.05

413.10 104.08 19.92 6.35 85.00

418.11 106.21 19.92 6.43 85.44

-3.27 -1.65 -1.04 -0.23 -3.05

29,477 844,912 1,534 284,523 26,293

15.55 26.60 64.99 149.90 32.72

15.00 25.80 61.75 145.00 31.09

15.55 26.35 64.99 147.61 31.21

0.00 -0.24 0.00 -2.45 -1.51

50 1,368,405 10 3,570 81,461

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

421.38 107.86 20.96 6.66 88.49

Agritech Limited Arif Habib Co SD Biafo Ind. Clariant Pakistan Dawood Hercules

15.55 26.59 64.99 150.06 32.72

19.69 1.17 8.01 27.26 10.00

19.00 1.22 8.50 27.90 9.95

18.72 1.05 8.00 25.91 9.11

19.00 1.06 8.50 26.53 9.14

-0.69 -0.11 0.49 -0.73 -0.86

2.25 51.25 2.17 14.12 8.40

27.65 3.32 40.48 7.05 77.59

Ados Pakistan AL-Ghazi TractSPOT AL-Khair Gadoon Bolan Casting Ghandhara Ind.

89.5529 139.1115 1.1494 116.7143

4.89 195.84 5.00 28.50 6.17

2.40 51.50 1.90 14.00 8.40

2.11 48.70 1.76 13.13 8.40

2.24 51.50 1.90 13.99 8.40

-0.01 0.25 -0.27 -0.13 0.00

26,352 1,178 1,001 4,200 1,600

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

$93.97

Sell 90.00 117.56 139.77 1.1494 88.08 11.58 24.47 23.95 91.16

Brent Crude Oil

$105.09

Agriautos Industries Atlas Battery Ltd. Atlas Engineering Atlas Honda Ltd. Dewan Motors

58.50 165.00 58.00 121.50 1.97

27.50 4.31 40.00 7.05 80.50

26.60 3.25 40.00 6.60 73.72

27.02 4.22 40.00 6.78 75.16

-0.63 0.90 -0.48 -0.27 -2.43

11,025 623,366 1,000 1,502 34,311

AL-Noor Suger Mills Bawany Sugar Colony Sugar Mills Dewan Sugar Engro Foods Ltd.

52.69 12.10 1.65 2.15 23.20

55.32 13.10 1.69 2.39 23.59

5.80 198.00 5.95 28.50 6.84

4.01 191.00 4.40 27.10 5.91

57.00 166.90 58.00 123.00 1.98

0.00 -4.38 -0.12 0.00 0.67

12 4,442 502 50 503

57.00 165.02 58.00 121.50 1.94

-1.50 0.02 0.00 0.00 -0.03

500 811 162 140 55,019

109.00 111.18 145.05 145.58

0.69 -4.44

1,170 203

57.00 163.10 58.00 115.55 1.70

110.49 111.43 150.02 150.00

Diamond Ind. Hala Enterprise Pak Elektron Ltd. Singer Pakistan Tariq Glass Ind.

8.20 6.01 4.06 14.07 8.30

9.18 6.90 4.38 15.06 8.50

Amtex Limited Artistic Denim Mills Azam Textile Azgard Nine Bannu Woollen

1.19 20.00 1.11 3.08 14.54

1.25 20.00 1.11 3.15 15.20

26.51 3.09 108.51 11.63 19.60

AHCL-DEC ANL-DEC ATRL-DEC BAFL-DEC DGKC-DEC

26.60 3.10 108.25 11.50 19.45

4.89 191.46 4.88 28.50 6.84

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

101.11 74.10 66.12 29.60 12.60

102.00 76.80 66.25 29.75 12.99

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

9.99 35.09 0.75 1.75 0.86

55.32 12.10 1.59 2.15 22.96

2.63 0.00 -0.06 0.00 -0.24

2,430 23 757 35 17,099

9.18 6.90 3.94 13.07 8.31

9.18 6.90 3.94 15.06 8.39

0.98 0.89 -0.12 0.99 0.09

1 50 389,302 501 11,224

1.15 19.50 1.11 2.94 14.50

1.15 19.94 1.11 3.05 14.56

-0.04 -0.06 0.00 -0.03 0.02

64,200 2,400 1 952,018 4,501

26.00 2.86 104.60 11.45 18.60

26.40 3.07 106.81 11.49 18.74

-0.11 -0.02 -1.70 -0.14 -0.86

214,000 53,000 342,000 2,000 268,500

101.00 75.50 65.12 29.30 12.99

-0.11 1.40 -1.00 -0.30 0.39

227 21 1,593 1,151 1,014

101.00 75.50 65.11 29.30 12.60

10.12 34.00 0.87 1.89 0.98

9.85 34.00 0.70 1.53 0.77

10.05 34.00 0.77 1.71 0.84

0.06 -1.09 0.02 -0.04 -0.02

1,058,174 920 159,564 990,262 470,939

0.28 35.15 0.60 1.60 1.50

0.40 35.45 0.68 1.60 1.70

0.27 35.00 0.50 1.53 1.60

0.30 35.29 0.60 1.53 1.60

0.02 0.14 0.00 -0.07 0.10

3,723 580,517 5 51,837 524

56.18 9.96 4.97 11.51 28.71

56.40 10.00 4.92 11.69 28.94

54.50 9.60 4.60 11.20 28.22

54.92 9.87 4.72 11.42 28.26

-1.26 -0.09 -0.25 -0.09 -0.45

7,724 108,302 1,600,698 976,432 39,928

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

syMbol

oPen

hIgh

low CuRRenT

ChAnge

voluMe

Non Life Insurance 52.99 12.10 1.55 1.90 22.72

Fixed Line Telecommunication

Beverages Murree Brewery Co. Shezan Int’l

voluMe

Pharma and Bio Tech

Automobile and Parts Buy 89.20 115.96 138.00 1.1380 85.64 11.32 24.23 23.74 88.38

ChAnge

Future Contracts

General Industrials Cherat Packaging ECOPACK Ltd Ghani Glass Ltd MACPAC Films Packages Limited

low CuRRenT

Personal Goods 1,001 52,881 7,937 13,718 59,304

Construction and Materials Al-Abbas Cement Attock Cement Bal.Glass Berger Paints Bestway Cement

hIgh

Household Goods

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

oPen

syMbol

Food Producers

Industrial Engineering

Interbank Rates US Dollar UK Pound Japanese Yen Euro

oPen

Chemicals

Major Losers Rafhan Product Nestle PakistanXD Sanofi-Aventis Millat Tractors Ltd. AL-Ghazi TractSPOT

syMbol

Adamjee Ins Atlas Insurance Central Ins Co. Century Insurance EFU General Ins

41.00 36.02 50.18 6.80 35.00

42.75 36.00 50.18 6.78 35.00

39.11 35.00 49.60 6.22 33.25

40.68 36.00 50.18 6.78 34.60

-0.32 -0.02 0.00 -0.02 -0.40

15,326 4,524 321 18,100 17,566

13.50 1.40 65.53

14.50 1.40 65.53

0.00 0.00 0.00

2 1 157

0.32 14.43 14.15 0.66 2.51

-0.03 0.00 -0.08 -0.27 -0.02

6,625 16 23,540 5,410 14,762

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 Equities F. Nat.Equities

0.35 14.43 14.23 0.93 2.53

0.36 15.35 14.99 0.90 3.44

0.30 13.50 13.60 0.65 2.45

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

1.60 5.83 2.26 0.49 0.78

1.60 5.83 2.35 1.48 1.00

1.50 5.30 2.01 0.40 1.00

1.50 5.83 2.35 0.50 1.00

-0.10 0.00 0.09 0.01 0.22

5,003 400 1,501 12,018 1,002

12.50 30.00 7.00 12.46 62.20 1.16 62.22 6.10 3.06 13.06 8.15 22.65 57.92 28.73 16.00 7.99 1.75 15.25 17.75 64.00 25.00 1.20 8.91

13.25 31.29 7.00 13.00 63.70 1.19 63.05 6.47 3.32 14.06 8.15 23.75 57.92 31.24 16.00 7.99 1.82 16.01 18.23 64.02 25.00 1.26 9.24

0.08 -0.21 0.00 -0.43 -1.77 -0.04 -2.44 0.97 -0.10 0.00 -0.20 0.00 0.00 1.00 0.00 0.00 0.01 -0.24 -0.02 -2.43 -0.50 0.00 -0.08

4,597 3,500 1 504 692 868,239 3,088 27,500 186,680 1 4,003 17 299 542 1 302 22,617 28,100 122,744 8,755 1,000 194,242 220,298

Miscellaneous Century Paper Pak Paper Prod.

Johnson & Philips P.N.S.C. Pak.Int.Con. SD TRG Pakistan Ltd. Murree Brewery Shakarganj Food Pak Elektron Ltd. Singer Pakistan Tariq Glass Ind. Grays of Cambridge Pak Tobacco Co. Shifa Int.Hospitals Hum Network Ltd. Media Times Ltd P.I.A.C.(A) Sui North Gas Sui South Gas EFU Life Assur AKD Capital Ltd. Pace (Pak) Ltd. Netsol Technologies

13.17 31.50 7.00 13.43 65.47 1.23 65.49 5.50 3.42 14.06 8.35 23.75 57.92 30.24 16.00 7.99 1.81 16.25 18.25 66.45 25.50 1.26 9.32

13.35 32.00 8.00 13.99 68.70 1.30 64.00 6.50 3.50 14.06 8.45 23.75 59.00 31.45 16.55 8.98 2.15 16.40 18.50 66.94 25.00 1.44 9.39

Mutual Funds Fund

offer

Repurchase

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

501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800

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 for e-paper_Layout 1 12/16/2011 11:52 PM Page 7

Saturday, 17 December, 2011

Pakistan represents a very good investment opportunity. The only drawback in Pakistan is that government policies are not consistent in terms of returns for the investor

news

07

Chairman hAsCol group, Mumtaz hasan khan

CNG kit prices jump up by 40pc

lse delegation to India explores Indian markets LAhoRE

violation of gas load management to be dealt with: Petroleum Ministry

STAFF REPoRT

T

HE visiting capital market delegates from Pakistan exchanged views with the indian regulators to learn about each other’s markets and explore avenues for future cooperation. The delegates explored many areas such as, investors’ protection/education, capacity building, iPO reforms, SME listing and market operations, etc, for which both sides can develop area wise plan for enhancing sustained cooperation. imtiaz Haider, Commissioner Securities Market Division of SECP, who is leading the capital market focus group from Pakistan to a week-long visit to india under aman ki asha (Hope for Peace) initiative, stated the visit has been a great learning experience for the entire team. He said we can now build capacity building cooperation with indian regulators, as well as other capital market institutions of india. The delegation from Pakistan visited Securities and Exchange Board of india yesterday, where they met Mr Rajeeve agarwal, the full time member of SEBi. it was given extensive briefing by senior SEBi officials including Mr S Ramann and Mr Pk nagpal, the executive directors of SEBi. The delegation also met with the officials of national institute of Securities Markets and visited the largest stock exchange of india, national Stock Exchange, where they met with the officials from nSCCL and nCDEX. The visiting delegation was apprised about the progress made by the indian financial sector and how india has created world class capital market institutions by focusing on market outreach, through advanced iT and a home grown model of market discipline and investor protection. national Stock Exchange officials informed the visitors about how its market infrastructure has helped fuel the foreign investment in the country.

LAhoRE

C

IMRAN ADNAN

ng conversation kit prices have jumped up by 28 to 40 per cent in just one day after government’s decision to impose complete ban on the import of Cng cylinders and conversion kits in the wake of current gas crisis in the country, Profit observed on Friday.

Market survey reveals that Cng conversion centres in the provincial metropolis have dramatically increased Cng kits prices from Rs8,000 to Rs15,000 immediately after the Economic Coordination Committee’s (ECC) decision on Thursday. Major increase is being witnessed in Cng cylinders prices, as gas bottles are already short in the market.

Speaking to Profit, a Cng conversion workshop owner, Muhammad Usman ali, said that an average price of Cng conversion kit for a carburetor engine type vehicle was ranging between Rs36,000 and Rs39,000, depending on the kit brand, model and capacity of the cylinder. However, the same was being installed in cars at Rs28,000 some two days ago.

Similarly, prices of Cng conversion kits for electronic fuel injection (EFi) type engines are being quoted at Rs41,000 to Rs46,000 with 50 litres cylinder. But most dealers in the provincial capital are reluctant to

offer some fixed price as they are not sure about the availability of cylinders and other kit parts. another Cng kit dealer at Mozan Chungi, Mian Shahid told Profit that sufficient Cng conversion kits stocks were available in markets, but dealers increased prices anticipating shortage in coming weeks. He indicated that prices of Cng conversion kits would further swell with consumption of available stock. all Pakistan Cng association (aPCnga) Supreme Council Chairman ghiyas abdullah Paracha said that the government had already put up Cng sector against the wall. “The aPCnga strongly rejects the government decision to impose ban on Cng conversion kits and cylinder and reserve the right to challenge the government decision in the court of law. Cng sector has invested over Rs200 billion in the country to save precious foreign exchange, which was being spent for petroleum imports, but government did not bother to take Cng sector stakeholders on board before making this decision,” he maintained.

Speaking to Profit, Pakistan association of automotive Parts and accessories Manufacturers Chairman Syed nabeel Hashmi said that it was an irrational decision on which the government did not take any stakeholder in to confidence before making this decision. Even the federal government’s own auto industry Development Committee was un-

aware from this development.

He underscored that car manufacturers and vending industry had made billions of rupees investment to promote Cng in the country. He pointed out that the government had left no option for the industry and general public as no alternate was provided. Hashmi indicated that auto gas Station Policy was redundant document which could not be implemented even after years. if the country had liquefied petroleum gas (LPg) stations installed in the country public and industry could switch to it, but now they saw no light at the end of the tunnel.

He demanded government to withdraw its decision and ask concerned ministry to make auto gas Station Policy in line with the real world. He pointed out that world over all petroleum products were sold through same stations, but in Pakistan the policy has failed because policymakers in the country believe LPg stations should be separate from other fuels, which had no rational. a buyer roaming at Bahawalpur Road said that it was very unfortunate that the country did not have a single consistent policy. ad hoc policies and hit and try approach was prevalent everywhere. From rulers to shopkeepers, everybody was on money making spree. Ruling class was enjoying all amenities of modern day on the public expense, while public was being denied basic facilities, he maintained.

ISLAMABAD AMER SIAL

P

ETROLEUM Ministry on Friday warned stakeholders that any defying of mutually agreed gas load management plan would be considered a violation of gas Theft act 2011, and would be punished as per law. Minister for Petroleum Dr asim Hussain chaired a meeting of stakeholders to finalise distribution of natural gas among Cng, industrial, fertiliser and domestic sectors. The meeting was attended by representatives of aPTMa, aPCnga, fertiliser sector officials of SSgCL, SngPL, OgRa and ministries of industries, food security and petroleum. Talking to reporters after the meeting, Dr asim said the country will witness an extreme shortfall of 1.1 billion cubic feet per day in gas supplies from January onwards till March next year. SngPL and SSgCL were also directed to finalise LPg bottling and marketing within 30 days to facilitate domestic consumers during gas shortage. He said the provision of the gas to the domestic consumers is the top priority of the government. The government had earlier finalised a gas load management plan for november, but it could not be implemented as Prime Minister directed the petroleum ministry to divert more gas supply to the fertiliser sector, to bridge the rising urea shortages which could affect production of the country’s main food crop, wheat. He said extreme shortage of gas will be more than 750 mmcfd on SngPL network and 250 mmcfd on SSgCL network. gas supply to all the four fertiliser plants and power plants on SngPL, was being disconnected immediately to meet the rising domestic demand.

branchless Microfinance Initiative:

A groundbreaking programme KunWAR KhuLDunE ShAhID

B

RanCHLESS Microfinance initiative is a part of the “Pre-Transformation Capacity Building” courtesy State Bank of Pakistan and its institutional Strengthening Fund (iSF). asasah is orchestrating the initiative via its quartet of branches. Branchless Microfinance initiative is a groundbreaking collaboration between Telenor and Tameer.

OBJECTIVES The objectives of the entire programme are in synchrony with the theme of Branchless Banking, and they are three-pronged. First and foremost there is a desire to cut transactions cost of clients by providing them financial services at their door step. Secondly, they are vying to decrease mis-utlisation of loans by strengthening internal controls. and thirdly, a reduction in cash utlisation by group Leader and/or Loan Ofiicer paid by the borrowers is also targeted.

ASASAH’S PHILOSOPHY To ameliorate the condition of

the national economy each individual and each household should be a unit of micro productivity. asasah is aiming to make each household productive by providing them financial assistance, necessary information and linking its members to relevant markets.

PROGRAMMES asasah has instigated two programmes en route to realisation of its dream. First is the Microfinance Programme (MFP), which is the nucleus of the organisation, The second is Livelihoods Programme (LHP) which provides apt support to MFP in Social Performance Management by induction of new ideas and thoughts.

TRANSFORMATION initially asasah was disbursing loans and collecting repayments in cash and gradually there was a general consensus in that cash transaction had its fair share of risk. The initial solution was thought to be payments and repayments through banks. However, this method resulted in inconvenience. Eventually, the Branchless Banking mode has been cited and

is working wonders.

DISBURSEMENT MODEL The disbursement is via aTM cards (of Tameer Bank). Tameer Microfinance Bank opens up asasah’s Master Disbursement account for this very purpose and links disbursement to individual clients.

REPAYMENT MODEL Repayments are collected through Mobile account (M-Wallet) of a group Leader. Every such leader is provided with a Telenor SiM along with a Mobile Wallet account. The group leader visits the closest EasyPaisa shot to deposit installments.

COST-BENEFIT ANALYSIS a thorough study of the costbenefit analysis divulges that the entire initiative has been immensely successful. However, service delivery cost is on the up due to high costs charged by Tameer bank; which is two per cent of the amount of loan. Hence as soon as Branchless Process is

launched in all the braches this will be negotiated with the vendor.

PROJECT LEARNING Extensive training and refreshers are the need of the hour. it is difficult to make the clients understand the concept of mobile money transaction and hence the initiative has been taken in such a way as to cover all the required bases and ensure that the client is able to make full use of the tool at disposal.

Money transaction through mobile phones and aTP cards is a revolutionary idea and can transform the fortunes of a multitude of people.

ACHIEVEMENTS asasah was awarded the Social Rating grade BB-in 2010 by an italian international rating organisation ‘MicroFinanza’ which is a huge accomplishment. asasah has also won the gold 2010 MiX/CgaP Social Performance Reporting award. in 2009 asasah received Silver award for reporting on Social Performance to MiX. One of asasah’s members nargis Bibi won the 7th Citi-PPaF Microentrepreneurship award 2010 national Entrepreneurs Category. all

these accolades have ensured that the project has global recognition and is on the verge of further expanding globally.

EPILOGUE asasah is vying to renegotiate with Tameer and Telenor with regards to reduction on costs and certain problems that the clients are facing. Once they

are solved – and as things stand a solution is on the horizon – the project promises to bear its fruits all over the country. it is a unique initiative and one that has all the makings of being successful. Collaborating mobile technology with banking; so simple, and yet so brilliant.

The writer is Sub-Editor, Profit. He can be reached at khulduneshahid@gmail.com