PRO 01-11-2012_Layout 1 11/1/2012 12:02 AM Page 1
Thursday, 1 November, 2012
LPG price rises to Rs 3/kg ISLAMABAD
T
ONLINE
HE price of LPG has been increased by Rs 3 per kg which was implemented from Wednesday four days earlier from the schedule time illegally. After the rise of LPG price the cost of domestic cylinder was enhanced to Rs 35 whereas Rs 140 has increased on commercial cylinder. Overall price of LPG was increased to Rs 2755 per ton .In the international market the price of LPG was swelled to 1014 $ from the previous price of 989 USD per matric ton. In the areas of Lahore, Gujranwala, Sialkot and Jhelum LPG would be available for Rs 120 per kg , whereas the new price of domestic cylinder would be Rs 1366. Similarly the new rates of LPG for Karachi and Hyderabad would be Rs 130/kg whereas the domestic cylinder would be traded there for Rs 1484. In Rawalpindi and Islamabad the Liquid Petroleum Gas would be bought for Rs 150 and the cost domestic cylinder in twin cities would be Rs1720. Likewise the price of LPG in Murree and Muzaffarabad would be Rs 160 and the price of domestic cylinder would be Rs 1838. In Peshawar and Gilgit the LPG would be available fro Rs 170 whereas the cost of domestic cylinder would be Rs1956. As per OGRA’s policy the new price
LPG’s Aramco price surges to $ 1,003 per tonne KARACHI The international price (Saudi Aramco Contract Price) of liquefied petroleum gas (LPG) has surged by $ 25 to $ 1003 per ton for November 2012, raising local prices by Rs 3,000 to Rs 128,000 per ton. This was stated by the chairman, All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan here Wednesday. He said prices of Propane and Butain have been increased by $ 25 and $ 15 respectively. He clarified
that local producers and marketing companies have not so far enhanced prices of either locally produced or imported LPG in the country in accordance with Saudi Aramco price. “This was wrong impression that LPG prices were increased on October 31, 2012 (Wednesday) in local market. Consumers should avoid to purchase LPG at artificially inflated prices”, he said and added that local producers are likely to raise their prices on November 3, 2012. Hadi said local LPG prices were 20 percent lower in Pakistan
compared to international price and therefore its import has been slowed down. But since winter has started, LPG demand is likely to surge by 50 to 60 percent in the country to reach between 1900 to 2100 tons per day, he noted. He lamented that local producers have neither increased their production nor enhanced their production capacity, therefore, it will be difficult to meet domesic demand through locally produced LPG. He pointed out that local production was ranging between 1200 to 1300 tons per day. Hadi anticipated that domestic price of LPG can be increased by Rs 3 per kilo in accordance with the rise in Saudi Aramco CP. Similarly, price of 11.8 kilo cylinder can be increased by Rs 35.50 and 45.4 kg cylinder by Rs 137. He, however, suggested the local producers to avoid any increase in locally produced LPG in the interest of 50 million consumers and in the wake of rising prices, unemployment and ongoing energy crisis so that this fuel should remain in the reach of poor men in remote hilly and less developed areas.
were to be implemented from 3 November but marketing companies has applied from 31 October , which is un-
just to the consumers. The President of LPG Distributors Association Irfan Qureshi has de-
manded the government to withdraw the increase forthwith as LPG is the indigenous production.
APP
Islamabad failing to cement exports g
Pakistan cement exports to India decline by 15.7 percent KARACHI ONLINE
The Pakistan cement exports to India have registered a decline of 15.67 percent in the first quarter of current fiscal year, standing at 137,742 tonnes compared to 163,340 tonnes exports volume of the yesteryear’s same period, said Aizaz Mansoor Sheikh Chairman Association of Pakistan Cement Manufacturers (APCMA). Exports to India in fact have been on constant decline ever since the
two countries opened their borders for liberal bilateral trade. The Pakistan traders blame the stringent Non Tariff Barriers erected by India for the constant decline in exports to India. Pakistan’s cement sector was expecting a quantum jump of at least 0.5 million tonnes in last fiscal on easing of NTBs by India but it did not happen. Exporters’ issues include a lengthy process to obtain a certificate from Indian authorities and the va-
lidity of the quality certificate for cement exporters for one year period merely. The exporters are not allowed to continue their exports after expiry of certificate limit that are needed to get renewal in a brief period. The certification cost is also high and the Pakistan exporters have to bear heavy expenses for the visit and stay over of Indian inspectors. Pakistani and Indian railways could exchange the same number of wagons for transportation of goods
exports however the Pakistani wagon could not carry big cement orders due to restriction by Indian government as a rule of reciprocal. The railways wagons from the Indian side are limited for cement exporters, which increase their cost of cement transportation heavily, cement exporters were quoted as saying by media reports APCMA has demanded the Pakistan government to raise the issues of NTBs before Indian government for immediate solution.
Dr Sheikh to head Energy Committee ISLAMABAD APP
Minister for Finance, Dr. Abdul Hafeez Sheikh will head the existing Energy Committee and hold its meeting at least once every fortnight to ensure optimal power generation during the coming winters. The decision was taken at a high-level meeting held under the chairmanship of Prime Minister Raja Pervez Ashraf at the Prime Minister’s House on Wednesday to review the current power situation in the country. The Secretaries’ Committee will comprise Secretary Water and Power, Secretary Petroleum and Natural Resources and Secretary Finance. The meeting discussed at length various aspects related to the power situation including recoveries, line losses, electricity and oil theft. The Secretary Water and Power briefed the Prime Minister about various steps taken by the Ministry to improve efficiency, management and governance in the power sector. The Prime Minister directed the Ministry of Water and Power to chalk out a comprehensive plan for coming winters clearly identifying targets including power generation along with fuel requirements in the country. Appreciating the steps taken by the Ministry of Water and Power, the Prime Minister emphasized the need to make foolproof arrangements to ensure that the targets set out in the plan by the ministry are achieved. In this connection, he directed the Ministry of Petroleum and Natural Resources to coordinate with Ministries of Finance and Water and Power and work out a fuel supply plan for the next five months. The meeting was also informed that hydel and solar energy plants having generation capacity of 500 to 600 Mega Watt would be added to the national grid by March 2013 which would further improve the current power situation. The Prime Minister appreciated the progress made by the Ministries of Water and Power, Petroleum and Natural Resources and Finance in improving power situation in the country and expressed the confidence that all out efforts will be made to sustain this momentum.
WEF shoWcasEs PakIstan’s stabIlIty Pakistan continues to show stability on Financial Development Index of World Economic Forum: report ISLAMABAD APP
Pakistan continues to show stability on the Financial Development Index of the World Economic Forum (WEF) on the indicators; cost of closing a business, where the rank of 5 was maintained, also showing stability in frequency of banking crises and output loss during banking crises, Financial Development Report 2012, of the Forum unveiled on Wednesday. According to WEF report 2012, Pakistan again secured the top rank of 1 among 62 economies; similarly on the public ownership of banks, which is a percentage of assets held by the 10 largest banks that is located in banks that are more than 25 percent government owned, Pakistan again secured the top rank of 1. The report, however observed that Pakistan faces tough challenges on developing its financial markets. It added that Pakistan ranks at 58 out of 62 economies in the Financial Development Index of 2012, losing 3 points from its position of 55 in 2011.
The Financial Development Report 2012 depicts commercial and retail access to finance shrinking in Pakistan. Financial systems across the world are stagnating, leading to challenges for a global economic recovery, according to the fifth edition of the World Economic Forum’s Financial Development Report 2012 released on Wednesday. “The Financial Development Report shows that financial systems in advanced and emerging economies are stalling”, said Giancarlo Bruno, Senior Director at the World Economic Forum. “Macroeconomic uncertainty, as well as concerns related to regulation, contributes to inhibiting the financial industry from funding much-needed growth.” Amir Jahangir, Chief Executive Officer - Mishal Pakistan, a country partner institute of the Center for Global Competitiveness and Performance, World Economic Forum said that “the Financial Development Report 2012 ranks 62 of the world’s leading financial systems and capital markets, analysing
the drivers of financial system development in advanced and emerging economies to serve as a tool for countries to benchmark themselves and establish priorities for reform”. The rankings are based on more than
120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors, he added. The Report also shows an improvement in the total number of active bor-
rowers from micro-finance institutions per 1,000 adults, where Pakistan has improved its position of 12 in 2011 to 9th in 2012. Pakistan has shown slight improvements on the strength of auditing and reporting standards, where it is ranked 48 in 2012 as compared to 52 in 2011. On the pillar of legal and regulatory issues Pakistan has shown significant gains, by improving the burden of government regulations, securing 21 rank as compared to 32 last year. The regulation of securities exchanges has also improved 5 points with a rank of 37 out of 62 economies globally. The current account balance to GDP, a variable, which is the three-year average of current account balance to GDP, indicates the difficulty Pakistan had in mobilizing the foreign exchange necessary for debt service (from 2009 to 2011) has also improved from 53 last year to 40 in the current year. The economy has also shown improvements in the “aggregate profitabil-
ity indicator”, which is based on a threeyear average of three measures of profitability: net interest margin, bank return on assets, and bank return on equity, this was measured on an average from 2008 to 2010. Pakistan improved 8 points on this scale, securing 41 rank on the Financial Development Index 2012. Other area where Pakistan showed improvement of 14 ranks was the real growth of direct insurance premiums, where Pakistan stands at 30th rank. However Pakistan showed low performance on various key indicators, where it lost it development advantage on multiple factors, whereas; intellectual property protection (53) and effectiveness of law-making bodies (47) as compared to 48 and 43 from last year. The effect of taxes and subsidies on competition, which is to what extent does government subsidies and tax breaks distort competition, Pakistan lost its rank from 46 in 2011 to 53 in 2012, the report claimed. It further claimed that in terms of Internet users, Pakistan has seen a decline in its internet penetration, where it lost its position of 54 to 61 as compared to 2011 and 2012 respectively.
PRO 01-11-2012_Layout 1 11/1/2012 12:03 AM Page 2
Be energetic, be efficient g
Energy efficiency saves Rs 400m of textile industry
LAHORE APP
Implementation of Renewable Energy and Energy Efficiency Program (REEE) has resulted in per annum savings of Rs 400 million for textile
industry in Pakistan. Small and Medium Enterprises Development Authority (SMEDA) had initiated the programme in collaboration with GIZ, a Germany based organization. This was observed in the meeting between Bernhard Mayhofer, Principal Advisor, REEE program GIZ, Germany with Yousaf Naseem Khokhar, Chief Executive Officer of SMEDA here Wednesday. Bernhard Mayhofer said that success in implementation of energy efficiency activities of REEE Programme was not possible without cooperation of SMEDA. “Our joint efforts in the textile
sector, APTMA members have reported energy saving up to 83.5 million kwh per year. He said the ambit of REEE activities had been extended to other industrial sectors including food & beverages, steel and glass sector”, he added. Enhancing scope of the mutual cooperation between the two organizations for developing structured approach for the existing activities and new areas like promoting renewable energy technologies in the industry are need of the hour, he said. The GIZ is willing to develop formal certification system for energy managers and qualification criteria for energy service companies
under SME portfolio, he added. The CEO SMEDA welcomed the Principal Advisor of GIZ and assured him of full cooperation from SMEDA for expansion of Renewable Energy and Energy Efficiency Programme. SMEDA official from the departments other than Industry Support Cell can also be engaged in this connection, he added. CEO SMEDA said that programmes like REEE were dire need in the prevailing energy crisis. He appreciated to include food & beverages, steel and glass sectors in the programme, and assured to involve respective trade bodies in expansion.
Engro tracEs doWnWard sPIral g
Rs 6.5b drop in profits of fertiliser business pushes Engro Corp to a loss ISLAMABAD ONLINE
Gas curtailment caused by the flagrant violation of the contractual obligations by SNGPL has severely impacted the operations of the fertilizer business consequently the business made a net loss of Rs. 2,978 million during the nine months under review vs. It was revealed during announcement of financial results for nine months ended Sep 30 during a meeting of the Board of Directors of Engro Corporation Limited here on Wednesday. It was said that company earned net profit of Rs. 3,510 million during the same period last year. The loss is directly attributable to decreased sales volume, lower margins, declining farm economics, and absence of speculative buying due to expectation of a reduction in the price. The Company produced 709,000 tons of Urea during the nine months of 2012 compared to 983,000 tons produced in the same period of previous year. This decrease was attributable to the gas curtailment on the new EnVen plant which received gas for only
45 days allowing for only 33 days of production in the period under review. On the contrary, the foods business continued its rapid growth trajectory registering a turnover increase of 38% to Rs. 29 billion during the nine months of 2012 as compared to Rs. 21 billion for the corresponding period last year. The business announced a profit after tax of Rs. 1,619 million in the nine months of 2012 as opposed to Rs. 408 million during the same period last year. In addition, the Company’s investment in the Halal Foods business in Canada, Al Safa, also achieved sizable sales revenue of Canadian $ 8.8 million during the nine months of 2012. The petrochemicals business saw an increase in domestic PVC sales to 112 Ktons during the nine months of 2012, as compared to 85 Ktons in the corresponding period last year. The business posted a net profit of Rs. 83 million for the nine months ended September 30, 2012, compared to a loss of Rs. 440 million during the same period last year. The higher profitability was mainly attributable to increased volumes, higher caustic
prices as compared to the same period last year, and insurance claim proceeds received on account of delayed start up claim resulting from the plant site fire incident in December 2009. During the nine months of 2012, the Engro Qadirpur Powergen plant dispatched a total of 1,316 GWh to the national grid and demonstrated a billable availability of 100.3%. The business declared a net profit of Rs. 1,571 million for the nine months ended September 30, 2012 as compared to a profit of Rs. 1,239 million during the same period last year. The increase is due to higher gas efficiency and initiatives taken to ensure plant reliability and availability to the national grid. However, the substantial rise in the receivables due to circular debt is a major cause of concern for the business and the Company has been actively chasing PEPCO to reduce the overdue receivable amount. In September 2012 the Company received an amount of Rs. 1,1,95 million from the Government of Pakistan on account of a bail-out package which was adjusted by the transaction agent, National Bank of Pakistan (NBP)
for direct payment to SNGPL. On the Sindh Engro Coal Mining (SECMC) front, the Company is actively pursuing different parties for possible coal off-take agreements specifically after the change of strategy to decouple the mining and power projects. The policy has also been endorsed by the Government of Pakistan who has expressed full support for the project and has directed its GENCO Jamshoro to enter into a coal off-take agreement with SECMC for both conversion and new coal-fired plants envisaged by GENCO Jamshoro. The government has also agreed to provide Sovereign Guarantee for servicing debt portion of the cost and the Company will now, therefore, direct its efforts to formalize the above mentioned commitments given by the GoP. The chemical storage and handling business – Engro Vopak Terminal Limited (EVTL) – had smooth operations during the nine months of 2012 and posted a net profit of Rs. 1,098 million for the nine months ended September 30, 2012 as compared to a net profit of Rs. 781 million during the same period last year.
Business 02 Major Gainers COMPANY Bata (Pak) SPOT Island TextileXD Shezan Inter.XDXB Attock Petroleum Clariant Pak
OPEN 1444.00 364.64 427.50 490.25 245.44
HIGH 1515.00 382.87 445.00 500.00 257.71
LOW 1515.00 382.00 445.00 488.00 245.50
CLOSE CHANGE 1515.00 71.00 382.87 18.23 445.00 17.50 499.12 8.87 253.09 7.65
TURNOVER 100 300 100 36,300 58,800
1282.08 350.00 520.00 206.68 171.50
1282.08 325.68 480.00 206.68 163.01
1282.08 325.69 492.35 206.68 163.01
-67.47 -17.13 -12.08 -10.87 -8.57
150 10,100 1,500 200 2,532,500
53.18 7.22 16.99 14.74 9.05
51.88 6.34 15.71 14.19 8.28
52.91 6.97 16.57 14.45 8.68
1.04 0.46 -0.07 0.20 0.40
14,976,500 8,997,500 7,729,500 6,680,500 6,144,500
Major Losers Colgate Palmolive National FoodsXD Indus DyeingXD Pak Gum & Chemical Attock RefineryXD
1349.55 342.82 504.43 217.55 171.58
Volume Leaders D.G.K.CementXD Azgard Nine Askari Bank Jah.Sidd. Co. Byco Petroleum
51.87 6.51 16.64 14.25 8.28
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.8965 154.6715 1.2020 124.6846
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
95.10 122.41 152.22 1.1791 94.14 12.09 25.78 25.18 97.53
95.70 124.12 154.32 1.1953 95.95 12.31 26.11 25.47 100.33
LSE flat as a pancake LAHORE APP
Bearish trend prevailed in Lahore Stock Exchange on Wednesday as it shed 1.31 points, following the LSE-25 index opened with 3920.49 and closed at 3919.18 points. The market’s overall situation, however, corresponded to an upward trend as it remained at 2.927 million shares to close against previous turnover of 2.149 million shares, showing an upward move of 777,300 shares. While, out of the total 92 active scrips 27 moved up, 25 shed values and 40 remined equal. EFU General Insurance Limited, Pakistan Refinery Limited and Lucky Cement Limited were Major Gainer of the day by recording increase in their per share value by Rs 4.42, Rs 3.60 and Rs 2.93 respectively.Attock Refinery Limited, Sui Northern Gas Pipeline Limited and Hira Textile Mills Limited lost their per share value by Rs 8.60, Rs 1.16 and Re 1.00 respectively. The Volume Leader of the day included Byco Petroleum Pakistan with 761,500 shares, Askari Bank Limited with 336,500 shares, and The Bank of Punjab Limitedwith 336,000 shares.
CORPORATE CORNER PIA chairman visits Jeddah Hajj terminal
Aesthetics conjures hope for breast cancer patients
Dr. Ahmed Abdullah (Cosmetic Surgeon) and Dr. Kay Abdullah (Breast Surgeon) who are serving patients for more than 20 years in the United States, UAE, will have a fascinating discussion at Marriott Hotel. Renowned actress Maria Wasti, who was the winner of 2008 Lux Style Award and also done several drama serials was the guest of honor and speaker. Other celebrities and socialites like Sana Safinaz, Rukaiya Adamjee, Ayesha Hussain, Khursheed Hyder, Ayesha Tammy Haq, Neshmia Ahmed, Yasmeen Haider, Monica, Abeer, Mannal and many more were also be present there to support the cause.
Flight Inspection team. Besides Sri Lanka, Pakistan Civil Aviation Authority also provides Flight Inspection services to many other countries such as Saudi Arabia, Eritrea, Sharjah and Bangladesh. Thus, besides earning a good name for the country, the Flight Inspection Unit also earns valuable foreign exchange earning for the country.
Hambantota International Airport receives first aircraft JEDDAH: Defence Secretary and Chairman PIA, Lieutenant General (R) Asif Yasin Malik to oversee arrangements for returning Pakistani Hujjaj was on a day’s visit to Jeddah Hajj Terminal here on Tuesday. He directed the PIA employees at Jeddah that it is the duty of each one to provide maximum facilitation and comfortable journey to the returning Hujjaj. Chairman PIA said that there is no doubt that PIA has the foundation and expertise however; collective and concerted efforts are needed for ensuring speedy handling of Hujjaj for timely departures of returning flights. He complimented the employees on successful Pre-Hajj Operation while emphasizing continued efforts for Post Hajj returning flights. Chairman PIA visited the passenger processing and briefing points, PIA Check in counters, PIA Office and Hujjaj Waiting area and Boarding Lounge at the Jeddah Hajj Terminal.
KARACHI: Aesthetics Internationals, a Dubai based surgical and wellness centre brings famous International surgeons to address the increasing issue of breast cancer in the country and how to overcome the psychological trauma faced by breast cancer patients. Pakistan has the highest rate of Breast Cancer amongst all Asian countries. The numbers are alarming as every 9th woman in Pakistan is at high risk of getting Breast Cancer at some point in her life, leading to over 40,000 deaths every year. Any diagnosis to cancer is over whelming – there are tremendous implications for one’s health, family, and quality of life. But women hear they have breast cancer and that they will lose one or both of their breasts, the emotional tool is extreme. In addition to the worries about health and family are added concerns about how you will look and feel, and how others will react.
KARACHI : A new international airport has been developed in Sri Lanka near the port city of Hambantota to cater for the growing needs of the Sri Lankan Aviation industry. The airport received its first aircraft on 16th October 2012 when a Pakistani aircraft carrying the Flight Inspection team of Pakistan Civil Aviation Authority arrived at the airport in a Pakistani aircraft (AP-CAB), Beech King Air BE20. The aircraft is specially equipped to inspect Navigational, Landing and Visual Aids, Radars, Communication Systems, GNSS/RNAV procedures and other operational facilities at any international airport. On the occasion of the first landing on the airport, the President of Sri Lanka HE Mr Mahinda Rajapaksa specially came to see the Pakistani aircraft. He was briefed by Captain Khalid Masood, the leader of the Pakistani
LAHORE: District Manager PIA Mr. Umer Draz and Station Manager PIA, Mr. Asghar Zaidi and other PIA officials garlanding the Haji’s on arrival of PIA’s 1st Post-Hajj Flight PK 3202 at Allama Iqbal International Airport, Lahore.
Thursday, 1 November, 2012