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Wednesday, 11 July, 2012
‘Energy efficiency is key element for global competitiveness’ KARACHI ZAIN ALI
E
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.
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Wednesday, 11 July, 2012
Ahmed new head of Standard Chartered‘s consumer banking KARACHI: The Standard Chartered Bank has appointed Raheel Ahmed as its regional head of consumer banking for the Middle East, Pakistan and African region, the bank said in a statement issued here Tuesday. Raheel is taking over from Vishu Ramachandran, who will become the Chief Operating Officer for Consumer Banking at Standard Chartered Bank. Raheel will report to Steve Bertamini, Group Executive Director and CEO, Consumer Banking and will be based in Dubai, the bank’s regional headquarters. Raheel has over 20 years of experience in Asia, Europe, the Middle East and Africa. he joined the bank in 2004 from Citi as regional head of consumer credit for Middle East and South Asia. STAFF REPORT
Brent below $100 as Norway strike ends SINGAPORE: Brent crude fell below $100 in Asia Tuesday, hours after a Norwegian crude supply disruption due to oil workers’ strike was ended by the government. New York’s main contract, light sweet crude for delivery in August dived 77 cents to $85.22 a barrel and Brent North Sea crude for August delivery plunged $1.62 to $98.70. AGENCIES
Euro edges down in Asia trade TOKYO: The euro edged down in Asian trade on Tuesday as markets largely shrugged off a eurozone finance ministers’ deal to bail out debt-riddled Spain. The common currency was changing hands at $1.2293 in Tokyo morning trade against $1.2312 in New York late Monday. Against the Japanese currency, the euro bought 97.76 yen from 97.95 yen in US trade the previous day, while the dollar was also weaker at 79.52 yen from 79.56 yen. AGENCIES
IMF chief says rise in protectionism ‘alarming’ JAKARTA: IMF chief Christine Lagarde said Tuesday that signs of increased protectionism amid deteriorating global economic conditions were “alarming”, and warned such measures affect everyone. “The latest report by the WTO (World Trade Organization) is quite alarming because there is a rise of protectionism,” she said at a business forum in the Indonesian capital Jakarta. The International Monetary Fund managing director also warned that “no country is immune” from the effects of protectionism. AGENCIES
Bears, bulls at daggers drawn g
Major Gainers
Index ends flat as profit-taking fails to take sufficient toll KARACHI
P
Business 02 COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE TURNOVER
UniLever Pak Unilever Food Colgate Palmolive Mithchells Fruit Island Textile
7302.50 2749.93 1072.17 275.13 219.07
7374.99 2848.00 1123.95 288.88 230.02
7345.00 2800.00 1070.00 275.13 208.12
7373.41 2809.82 1102.35 288.88 227.28
70.91 702 59.89 24 30.18 65 13.75 517 8.21 217
Major Losers
STAFF REPORT
AKISTAN Stocks closed lower amid profit taking in the corporate earning announcements session at KSE, viewed by Ahsan Mehanti, Director at Arif habib Investments Limited. The Karachi Stock Exchange (KSE) 100-share index declined 05.20 points or 0.04 percent to close at 14, 374.34 points as compared to 14, 379.54 points of the previous session. The KSE 30-share index shed 5.27 points to close at 12, 499.34 points as compared with 12, 504.61 points. The market turnover was down to 82.530 million shares after opening at 89.542 million shares. The overall market capitalization declined 0.02 percent and traded Rs 3.660 trillion as against Rs 3.662 trillion. Losers outnumbered gainers 137 to 121, while 113 stocks were unchanged. Mehanti added that the institutional support witnessed in blue chip stocks on improvement in Pak US relations and speculations ahead of SECP chairman visit to KSE. The KMI 30-share was increased by 64.51 points to close at 24, 852.17 points from its opening at 24, 787.66 points. The KSE all-share index closed with a loss of 4.25 points to 10, 101.66 points as against 10, 105.91 points. D.G.K Cement was the volume leader in the share market with 12.388 million shares as it closed at Rs 43.60 after opening at Rs 43.46. Engro Food Limited traded 9.488 million shares as it closed at Rs 73.31 after opening Rs 70.78. Jahangir Siddiqui Company traded 6.105 million shares as it closed at Rs 14.11 from its opening at Rs 14.24. Lucky Cement traded 3.907 million
Nestle Pakistan Ltd. 4080.78 Pak Gum & Chemical 136.75 Indus Motor Company Burshane LPG 54.56 Ibrahim Fibres 51.75
D.G.K.Cement Engro Foods Ltd. Jah.Sidd. Co. Lucky Cement Fatima Fertilizer Co
43.46 70.78 14.24 124.03 25.41
Qasim Khan, one of the senior executive leaders at PepsiCo, shares his views on his company; its strengths, its weaknesses and how Pepsi ensures the health and wellness of its consumers. Q: What do you feel are the key strengths of PepsiCo as a global Food and Beverage company? A: Some of the key strengths of PepsiCo are: PepsiCo offers the world’s largest portfolio of billion-dollar food and beverage brands. Brands are our lifeblood. Diverse Portfolio offerings ranging across different consumer preferences. One of the largest and most robust agricultural enterprises in the world. Our investments in emerging markets. STRONG EXECUTION: We operate over 100,000 routes directly or through
4067.15 132.95 267.62 51.87 49.38
-13.63 15 -3.80 451 267.99 -3.23 2,045 -2.69 326,434 -2.37 2,735
43.97 73.95 14.54 124.95 25.75
43.26 71.55 14.01 123.01 25.21
43.60 73.31 14.11 124.42 25.33
0.14 12,388,285 2.53 9,488,015 -0.13 6,105,411 0.39 3,907,283 -0.08 3,491,217
Interbank Rates shares and closed at Rs 124.42 as against its opening at Rs 124.03. Fatima Fertilizers traded 3.491 million shares as it closed at Rs 25.33 as compared to its opening at Rs 25.41. he said that limited foreign interest amid uncertain global markets played a catalyst role in bearish activity at KSE. On the future market, the turnover down by over two million to 7.315 million against 5.808 million shares of first working day of the week Monday. The Unilever Pakistan XD and UniLever Food, up Rs 70.91 and Rs 59.89, led highest price gainers while, Nestle Pakistan Limited and Pak Gum & Chemical down Rs 13.63 and Rs 3.80 respectively, led the losers
UK Pound 146.5661 Japanese Yen 1.1891 Euro 116.2151
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
‘BRANDS ARE OUR LIFEBLOOD’ LAHORE
4030.08 132.00 270.00 51.84 49.25
Volume Leaders
INTERVIEW WITH QASIM KHAN
PRESS RELEASE
4100.00 140.00 271.22 55.88 50.89
our bottlers worldwide. Through those delivery routes we serve about 10 million outlets around the world. Our local management teams have a very good feel for their markets, and that informs our execution and our strategy as a company. HIGHLY INTEGRATED SYSTEM: We have tremendous size and scale, an unparalleled portfolio, a strong revenue mix, incredible reach and a highly integrated system. PASSIONATE PEOPLE AND GLOBAL CAREERS: Everything we do is brought to life by diverse teams across the world. Our ability to attract, retain and train them is essential towards building a great organisation. Q: Why is PepsiCo diversifying into the Health and Wellness arena? A: We believe that providing people with choices is important for business. Developing great tasting nutritious and convenient food and beverages helps us
cater to a growing section of consumers who are leading this change in society. PepsiCo has a long history of improving our products and launching new products to meet consumer needs and promote healthier lifestyles. We continue to change and improve our products because our consumers’ priorities are changing and the health of the world’s population demands it.
93.50 114.12 143.99 1.1607 90.67 11.89 25.32 24.83 94.09
SELL 94.70 115.85 146.13 1.1779 92.52 12.10 25.67 25.14 96.94
Water shortage harms industrial output KARACHI STAFF REPORT
Almost all the industrial areas in this metropolis are suffering from an acute water shortage on account of power breakdowns at main KW&SB installations, said the industrialists from All Pakistan Textile Processing Mills Association (APTPMA) on Tuesday. In a joint statement, Chairman (Central) Salim Parekh and Regional Chairman M. Arif Lakhany of APTPMA said the ongoing crisis had reduced the industrial output and industries were suffering financially huge losses due to power breakdowns at the KW&SB installations. They further said that the frequent power breakdowns coupled with water shortage would badly hit the export target and the much needed foreign exchange earnings. The industrialists said water supply position had been affected by the protracted power breakdowns.
CORPORATE CORNER Wateen, ISIC join forces LAHORE: Wateen Telecom is happy to announce its latest partnership with the International Student Identity Card (ISIC) Association, to work together to support students in Pakistan. A memorandum of understanding was signed between the two entities under the terms of which Wateen will offer 20% discount every month on all WiMAX line rent to any person with a valid ISIC card for a year. The ISIC is a global standards body that issues identity cards to students from recognised educational institutes.
NBP gets “Pakistan Deal of the Year” award KARACHI: National Bank of Pakistan (“ NBP” ) has received “Pakistan Deal of the Year Award 2011” for acting as Inter-creditor Agent as well as Lead Arranger & Advisor with regards to financing of two Renewable Wind Energy Power Projects of 50 MW each in the country. The two power projects are Pakistan’s first ever 100% Islamic financed Renewable Energy Power Project which has also set a new precedent in terms of Islamic financing structure in the local banking sector.
Mahvash and Jahangir Siddiqui Foundation sponsors students KARACHI: The Mahvash and Jahangir Siddiqui Foundation representatives met with the students prior to their departure for the Global and Public heath medical program at Weill Cornell Medical College, Qatar. These students were selected after extensive interview sessions from universities nationwide.
Qatar Airways officially unveils new Boeing 787
International Air Show. The global debut of the airline’s new Dreamliner in Qatar Airways’ colours marks a significant milestone for the manufacturer’s 787 Middle East launch customer, which will take delivery of five 787s during 2012.
Samsung inaugurates ‘Shop in Shop’ at DHA
Akzo share trading begins KARACHI: In accordance with the Scheme of Arrangement for the Reconstruction of ICI Pakistan Limited (“the Scheme”) and to implement the provisions of the Scheme, the Board of Directors of Akzo Nobel Pakistan Limited have, on Tuesday, 3 July 2012, allotted shares of Akzo Nobel Pakistan Limited in the manner determined under the Scheme, to the Qualifying Shareholders.
LAHORE: Samsung Electronics Company Ltd. a global technology leader has been rapidly expanding its network in the country. An addition to its earlier projects, a new experience zone was recently inaugurated by Samsung.
University of Cambridge - 800th Anniversary Scholarships announced Burj Bank Limited rated AA for LAHORE: Two outstanding students in Pakistan Shari’ah Quality have been awarded 2012 Cambridge 800th LONDON: Qatar Airways today officially unveiled its new Boeing 787 Dreamliner at the world’s largest aerospace event, Farnborough
Anniversary Scholarships to fund their undergraduate studies at the University of Cambridge. The scholarships have been made possible, thanks to funding from the parent of University of Cambridge International Examinations.
KARACHI: Islamic International Rating Agency, Bahrain has reaffirmed the AA (Double A) Shari’ah Quality Rating assigned to Burj Bank Limited (Burj). The assigned rating denotes ‘conformance to the highest standards of Shari’ah compliance in all aspects of the Bank’s operations.