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Wednesday, 11 July, 2012
‘Energy efficiency is key element for global competitiveness’ KARACHI ZAIN ALI
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NERGY efficiency is the key element for global competitiveness. This was stated by the Chairman of SITE Association of Trade & Industry,Mohammad Irfan Moton in a message at a seminar arranged at the Auditorium of the SITE Association, to highlight the importance of compressed air cost and industrial efficiency. Chairman, Mohammad Irfan Moton said that Compressed air generation accounts for approximately 10% of all the electricity used in industry. With energy costs only set to increase further plus a growing requirement for sustainable manufacturing, companies are increasingly looking for new technologies to help lower their energy costs –and their carbon footprint. It is a matter of life and death for Pakistani manufacturing sector to control its energy cost if it is to retain its position in exports. he appreciated the
organizers for bringing in sharp focus this important aspect of cost control. Chris Gold worthy, the Comp Air compressor expert, gave a lecture on the selection and use of air compressors and detailed the factors which control life time ownership costs of air compressor installations. Chris threw light on the selection criteria for air compressors, service and spares considerations, efficient piping systems, pressure, filtration and humidity requirements peculiar to each installation. New, energy efficient technologies, like variable speed compressors, oil free water lubricated compressors and Quantima Oil Free Turbo compressors were introduced to the audience, who took keen interest in the presentation. Chris said that it is possible to achieve up to a 30% reduction in its compressed air energy costs by judicious selection of compressed air equipment like air compressors, dryers, filters, piping layout and piping materials. he further said that it is important to monitor the compressed system on a regular basis, so as to identify and control those areas of the installation where air losses occur. he highlighted that running the compressors at higher than needed pressures will increase energy consumption unnecessarily. Also, machines which run on air, like air-jet weaving and air motors, start leaking air, their efficiency goes down while air starts to be wasted. The Seminar was organized by Pakistan’s leading air compressor distributor, Rastgar & Co who distributes CompAir, Quantima, hydrovane and Reavell compressors in Pakistan since the last 32 years.
Government’s focus is on power sector for the next fiscal year ISLAMABAD APP
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hE power sector of the country has been given top priority under the development programme of the current fiscal year (201213) to help overcome the energy crisis and lead the economy towards sustainable growth. The government would spend Rs.145.151 billion on the development of power sector whereas Rs.47.192 billion would be utilized for water sector development, official sources said. The mega projects of power sector include Diamer Basha Dam (Rs.8 billion) and Chashma Nuclear Power Project (C-3/C-4) (Rs 35 billion), they said adding in addition, an amount of Rs.115 billion would be invested by WAPDA from its own resources, they added. The government under Public Sector Development Programme (PSDP) will provide Rs.26,806 million for Neelum Jhelum hydropower
project, Rs.7,187 million for Tarbela fourth extension hydel project, Rs.3,859 million for Dubir Khawar hydro Power project, Rs.2,173 million for Allai Khawar hyrdro Power project, Rs.1,032 million for Jinnah hydro Power project and Rs.6,195 million for Golan Gol hydro Power project. Similarly, during the current year Rs.12,460 million will be spent for the 747 MW (CCPP) Guddu, Rs. 2,000 million for 425 NW combined Cycle Nandipur Power plant, Rs.10,500 million for 525 MW Combined Cycle Power Plant at Chicho Ki Malian, Rs.1,142 million for transmission arrangements for power dispersal of Ghazi Barotha and Rs.15 million for National Awareness Campaign on Energy and Environment Protection. On the other hand, the government will provide Rs.47 billion for water sector development, which is 13% of the total federal programme, official document revealed, adding adequate allocations have been made for Raising of Mangla Dam Resettlement, Satpara Multipurpose Dam, Gomal Zam Dam, Kachhi Canal (Phase-1), Rainee Canal (Phase-1), Lower Indus Right Bank Irrigation & Drainage Sindh, Balochistan Effluent Disposal into RBOD (RBOD-III), Extension of Right Bank Outfall Drain from Sehwan to Sea (RBOD-II), and Lining of Distributaries and Minors in Punjab and Sindh. The government would provide Rs.6,000 million for raising of Mangla Dam,Rs.2,400 million each for Kacchi Canal (Phase-1) and extension of Right Bank Outfall Drain, Rs.2,000 million for Rainee Canal (Phase-1), Rs 500 million for Kurrum Tangi Dam and Rs.2,000 million for Nai Gaj Dam.
Let’s get on with it, shall we? KSE ASKS MEMBERS FOR CDC ACCOUNT DETAIL TO PROCEED WITH DEMUTUALISATION PLAN KARACHI
Historic trade deficit of Worker remittances cross $21.2b last fiscal year historic $13b in FY12 ISLAMABAD
KARACHI
AMER SIAL
STAFF REPORT
Maintaining the foreign exchange reserves during the current fiscal year will be a gigantic task for the government, as the country’s trade deficit has ballooned to a record level of $ 21.2 billion during the fiscal year (FY) 2011-12. According to the data released by the Pakistan Bureau of Statistics (PBS) on Tuesday the exports during JulyJune FY 2011-12 remained $ 23.6 billion declining by 4.7 percent as compared to $ 24.8 billion collected during the corresponding period of FY 2010-11. The imports increased massively by 11.1 percent reaching $ 44.9 billion during July-June FY 2011-12 as compared to $ 40.4 percent during the same period of FY 2010-11. The trade deficit increased by a massive 36.3 percent to $ 21.2 billion during FY 2011-12 as compared to the corresponding period deficit of $ 15.6 billion in FY 2010-11. The government is already worried on the fast pace depletion of the foreign exchange reserves, which have declined by $ 2 billion during the last fiscal year. This fiscal year Pakistan will be making a return of $ 3.5 billion to the International Monetary Fund (IMF). And the pressure is already on the Rupee which has decline massively against the dollar resulting in inflationary pressures. During the last fiscal year, trade deficit increased massively mainly due to the petroleum import bill, as the domestic demand increased due to declining gas supply and hike in international oil prices. Secondly the exports dipped by $ 1.3 billion during the last fiscal year mainly because of the economic crisis in European and American markets, where most of Pakistani textile products are exported. Exporters blame the inefficiency of the government in controlling the lingering energy crisis in the country which has decreased industrial activity resulting decline of exports and its failure on the diplomatic front to timely get duty free access to EU markets announced by the 27 member block in September 2010.
The Pakistanis working overseas sent back home remittances worth over $ 13 billion for the first time in country’s history during the just-concluded fiscal year 2011‐12. The remitted amount stands at a record $13.186 billion during July-June FY12, showing an “impressive” growth of 17.73 percent compared with $ 11.200 billion received during the preceding fiscal year, 2010-11, the central bank said on Tuesday. Except for the months of September ($890.42 million) and November ($924.92 million), Pakistani workers remitted more than $1 billion during 10 months of FY12. Remittances received from all countries of the world showed substantial growth during the year in review and almost all of this growth was through banking channels. The inflow of remittances in said year from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $3,687.00, $2,848.86 million, $2,334.47 million, $1,521.10 million, $1,495.00 million and $364.79 million respectively as compared with $2,670.07 million, $2,597.74 million, $2,068.67 million, $1,199.67 million, $1,306.18 million and $354.76 million received in July‐June 2011. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $935.36 million against $1,003.81 million received in the preceding year. The monthly average remittances for July‐June 2012 period comes out to $1,098.88 million as compared with $933.41 million during the preceding year, registering an increase of 17.73 percent. The overseas Pakistanis also sent home $1,117.48 million in June 2012 when compared with $1,104.56 million received in the same month of FY11. During the month remittances from Saudi Arabia, UAE, USA, UK, GCC countries and EU countries amounted to $333.68 million, $219.14 million, $206.60 million, $128.12 million, $126.72 million and $29.24 million respectively compared to $291.55 million, $270.04 million, $204.64 million, $121.35 million, $106.20 million and $33.83 million the country received in June 2011.
STAFF REPORT
The Karachi Stock Exchange (KSE) Tuesday asked the stock members to either open a participant or investor account with the Central Depositary Company (CDC) so they could receive 40 percent shares under the KSE’s demutualization plan. In a notice issued Tuesday, the front regulator said under the Stock Exchanges (Demutualization, Corporatization and Integration Act, 2012) the statutory status of the KSE would change from a company limited by guarantee to a company limited by shares. It
said of the total shares, which shall be allocated to the members of the Exchange, the 40 percent shall be transferred to the members’ respective CDC accounts and in pursuance of Section 9(2) of the Act, the remaining 60pc of the total shares shall be held in KSE participant account of the CDC. These 60pc shares shall be held in the subaccount of initial shareholder in a manner that each sub-account shall hold 60pc of the shares allotted to each initial shareholder. In view of the above and as advised by SECP in this regard, the members not maintaining an active CDC account are advised to either open a CDC participant account or an investor account with the CDC.
BRUSSELS AGENCIES
Eurozone finance ministers agreed Tuesday to offer Spain 30 billion euros this month to help its distressed banks as they raced to stay ahead of market scepticism. After nine hours of talks, Jean-Claude Juncker, the Luxembourg premier who also heads the Eurogroup , said a memorandum of understanding for Spain would be formally signed “in the second half of July,” with 30 billion euros ($37 billion) available by the end of the month. Juncker, who has been in the job since 2005, was reappointed by the 17 ministers during talks Monday which ended well after midnight. Spain, under increasing pressure as sceptial markets pushed its borrowing costs dangerously high again, had called for up to 100 billion euros in direct aid at a June 2829 “breakthrough” EU summit. Aiming to keep the momentum going, ministers also agreed to extend a deadline for Spain to cut its public deficit to the EU 3.0 percent limit by one year to 2014 because of the difficult economic conditions Spain faces. At the same time, however, Juncker stressed that Madrid must implement measures needed to bring its public finances into line with EU norms. EU economic affairs commissioner Olli Rehn said Spain’s public deficit — the shortfall of revenue to spending — was now expected at 6.3 percent of Gross Domestic Product this year, 4.5 percent in 2013 and then 2.8 percent in 2014. Spain in May revised its 2011 public deficit figure, saying that it stood at 8.9 percent, up from 8.51 percent reported earlier and way above the original 6.0 percent target for the year.