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SBP cuts refinance rate, service charges on financing schemes KARACHI
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STAFF REPORT
TATE Bank of Pakistan (SBP) Tuesday decreased the refinance rate and services charges on its various financing schemes with the exception of financing for over five years and up to ten years. The rate of refinance under the Export Finance Scheme (EFS) has been reduced by 0.2% to 8.30% p.a. Exporters will now get the financing facility from banks at 9.30% p.a. while service charges under the Long Term Financing Facility (LTFF) have been reduced by 0.70% for financing up to 3 years and by 0.20% for financing up to five years. However, the service charges for financing up to 10 years have been raised by 0.20% per annum. The service charges under the Scheme for Financing Power Plants Using Renewable Energy have also been reduced by 0.20% p.a. for financing up to five years. However, the service charges for financing up to ten years have been raised by 0.20%. It has been decided that rate of refinance under the Export Finance Scheme applicable from January 01, 2013 and onward will be 8.30% p.a. till further instructions. “The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the
Export Finance Scheme, their maximum margin/spread does not exceed 1% p.a.,” said an SBP circular. The revised reduced markup rate would also be applicable on outstanding loans granted under EFS. Accordingly, banks are advised to immediately reprice their outstanding loans granted under EFS, keeping in view the revised reduced markup rate. Simultaneously, SBP BSC offices would also apply reduced markup on outstanding refinance loans granted under EFS. To reconcile the position of re-
priced loans, banks should submit particulars of outstanding loans re-priced by the bank under EFS on prescribed format to the concerned SBP BSC office(s) within 10 days from 1st January, 2013. The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Export Finance Scheme, as specified in SMEFD Circular No.15 dated October 31, 2009, will be adjusted accordingly keeping in view the revised mark-up rate, the circular added. Another SBP circular said that effec-
tive January 1 (2013) the rates of service charges for Participating Financial Institutions (PFIs) and rates for end users under the Long Term Financing Facility shall range from 10.30 to 11.40 percent depending on period of financing that ranges from three to up to 10 years. According to the circular, the rates of service charges for banks and DFIs and rates for end users under the scheme for financing power plants using renewable energy shall be 10.90 percent for financing of up to five years and 11.40 percent for financing of up to 10 years.
Pakistan’s first ever SPM successfully commissioned KARACHI STAFF RPORT
Byco’s Single Point Mooring (SPM) facility set up on the coast of Arabian Sea at a distance of approximately 14km from the Byco’s Mouza Kund site, which was mechanically completed recently, has been commissioned. With a draft of 25 meters this facility can accommodate larger size vessels carrying Crude/ Petroleum products of over
100,000 tons. Crude oil tanker, M.T. Arietis, successfully completed the discharge of 70,000 tons of crude oil marking the commissioning of the recently established deep sea Byco Single Point Mooring. The discharge rate peaked at 2,380 tons per hour and averaged over 2,000 tons per hour, enabling emptying the first cargo of 70,000 tons in 39 hours as per planned schedule. This compares
PM orchestrates establishment of trade dispute councils
favourably to the discharge rates of 1,500-1,600 tons per hour Byco experienced at Fotco, Port Qasim. Future target is achieving discharging timelines of 36 hours. There is also a saving of half a day sailing time as compared to Port Qasim. Speaking on the occasion, Imran Farookhi, CEO Byco Terminals Pakistan Ltd, the company that owns and operates the SPM, “With the blessings of the Almighty Allah, we have successfully
commissioned the country’s first SPM, Pakistan is now a proud member of the international community that has SPM technology and we expect to make good commercial use of it.” Byco Terminals Pakistan is an infrastructure company setup to facilitate the logistics of petroleum products, Byco Terminals Pakistan (formerly Universal Terminal Limited) is a wholly owned subsidiary of Byco Petroleum Pakistan Limited (BPPL).
ISLAMABAD: Prime Minister Raja Pervez Ashraf has directed the Commerce Ministry to prepare a proposal for establishing Trade Dispute Resolution Councils for resolution of complaints lodged by importers of Pakistani goods so that international trade can be encouraged. He made these observations while talking to a seven member delegation of UK Pakistan Chamber of Commerce and Industry in Islamabad on Tuesday The Prime Minister said that overseas Pakistanis have earned a name abroad by dint of hard work and we are proud of them. He said that despite challenges‚ the country is moving forward‚ media is free and evolving‚ judiciary is independent and a democratic government is completing its tenure. The economic indicators show rise in foreign exchange reserves and government has been successful in restricting the inflation to a single digit. These were no mean achievements. The Prime Minister said that Pakistan has business friendly policies and it would be up to the investor to make investment in any sector of their choice. During the meeting‚ the Prime Minister informed the delegation that the government had made all necessary preparations to qualify for GSP Plus which will give boost to trade with EU countries. The Prime Minister also welcomed a proposal for utilizing the services of successful businessmen abroad who are of Pakistani origin for promoting exports of Pakistan. ONLINE
ICM, CFA AND CFAP INK MOU TO BOLSTER INVESTMENT INDUSTRY KARACHI STAFF REPORT
The Institute of Capital Markets (ICM) on Tuesday signed a Memorandum of Understanding (MOU) with CFA Institute and CFA Society Pakistan (CFAP) to jointly organize globally relevant, professional education and training, and promote ethical standards and practices
Wednesday, 2 January, 2013
in Pakistan. CFA Institute is a global association of investment professionals and CFAP is its member society. The MOU, signed here at a local hotel, identified six key areas of cooperation, including promotion of the CFA Institute code and standards, exchange of knowledge and educational resources, ethics training, financial literacy training, ICM examination and curriculum
development and regulatory waivers for CFA candidate and charter-holders. Under the Memorandum, the three parties recognized that the initiative would add immense value to building standards in capital market, as well as promote ethics in the capital and financial industry of Pakistan. “This collaboration will enable us to launch a series of quality educational initiatives by leveraging the proven experience and expertise of CFA Institute and CFAP, particularly in the areas of ethics and professionals standards for finance industry,” said Syed Javed Hassan, Chief Executive Officer of the ICM. The MoU, Hassan said, was a significant step in talent-creation and capacity development, producing market practitioners familiar with international investment instruments as well as global best practices. “It would go a long way to meet the current and future needs of our country,” said CEO of the ICM, a leading finance industry organization for licensing certification in Pakistan. In his video message screened at the signing ceremony, Paul Smith, the CFA’s Managing Director of Asia Pacific at CFA Institute,
expressed his pleasure to join ICM as his Institute’s Pakistani member society. Partnering with the ICM, he said, would provide his side with an opportunity to promote globally relevant education programs, best practices and ethical standards in the country. “Building trust in the financial industry is critical for the greater good of society. We look forward to working closely with our partners to promote capital market integrity and support market development in Pakistan,” said Smith. Muhammad Ali, Chairman Securities and Exchange Commission of Pakistan (SECP) who also heads the ICM board of directors, thanked the CFA Institute for its support to the ICM. “I believe the MOU would enable the ICM to launch quality educational initiatives by utilizing the proven experience and expertise of CFA Institute. Our vision for the capital market is one of collaboration between the SECP, ICM, stock exchanges, market participants and the public—for a flourishing capital market, thriving economy and prosperous Pakistan,” Ali told the gathering. Muhammad Jawaid Iqbal, CFA President of CFA Society Pakistan, said the initiative was in line with his society’s core objective to promote ethical and professional standards within the investment
industry and encourage professional development through partnership with CFA Institute. The MOU provides for ICM and SECP to distribute CFA Institute publications in Pakistan, including its internationallyrenowned codes and standards, and asset managers code of professional conduct. The ICM, CFA Institute, and CFAP would jointly develop and deliver ethics and market integrity workshops for various industry entities, including the SECP and stock exchanges. The ICM, SECP and CFA Institute will consider collaborating on delivering financial literacy training to journalists who would benefit from a better understanding of investing and finance. In addition, the ICM and CFA Institute will exchange ideas and best practices in examination and curriculum development. The ICM would explore the possibility of waivers from the ICM analyst certification for successful CFA candidates and charter-holders. The ICM would also consider launching in Pakistan the Claritas Investment Certificate, a new education program developed by CFA Institute to educate investment industry participants who are not directly involved in the investment decision-making process the industry essentials.
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Inflation rises to 7.93% in December
Efforts underway to improve Pak-Afghan trade: Motiwala
KARACHI STAFF REPORT
Consumer Price Index (CPI) inflation during December stood at 7.9 percent against 6.9 percent of the preceding month of November. The number falls with the consensus range of 7.5 to 8 percent, said the analysts at Topline Research. This is the third consecutive month where inflation stood below 8 percent, they said. On month-on-month basis, the price hike was recorded at 0.2 percent as against negative 0.4 percent last month, while the average inflation in 1HFY13 stood at 8.3 percent versus 10.9 percent in the same period last year. “Though, detail numbers are still to be released but higher food inflation particularly in the perishable head be the major contributor behind this inflation,” said Topline analyst Nauman Khan. He said though the soft inflation numbers allowed further room for the central bank to continue the process of monetary easing, but a major change in discount rate could be a “threat to local currency”. “We estimate FY13 average inflation to be around 8.5-9 percent, lower than government target of 9.5 percent,” said the analyst.
KARACHI
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STAFF REPORT
HAIRMAN Sindh Board of Investment (SBI) and President Pakistan Afghanistan Joint Chamber of Commerce and Industries (PAJCCI) Mohammad Zubair Motiwala has said that all possible efforts are being taken to enhance bilateral trade relations be-
tween Pakistan and Afghanistan. This he said while presiding over 4th Board meeting of Pakistan Afghanistan Joint Chamber of Commerce and Industries (PAJCCI) here at local hotel. He said that trade survey and conference and joint chambers / Alliances/ Induction of other Chamber were in pipe line to improve functioning of PAJCCI, beside this development of a trade Directory and development of Trading Houses, display centre and special committees would be established. Chairman SBI Mohammad Zubair Motiwala expressed his satisfaction over the performance of PAJCCI and said that the economic survey was the first step towards the constructive engagement between business communities of both countries and the report briefly captured trends in bilateral trade as well as recent developments in the post- APTTA agreement. He added, ‘Fifty four face to face in-depth interviews were conducted in 6 cities of both countries and the report will provide credible foundations for understaking an advocacy agenda to promote bilateral trade while addressing the concerns of the trading communities of Pakistan and Afghanistan’. He admitted that PAJCCI had faced many challenges but things were getting better gradually and formal bilateral trade relations were on risw between both countries. On this occasion Khan Jan Alokozai, Co-President PAJCCI, Engr. Daroo Khan Achakzai, Mohammad Yonass and Haji Atiqullah Mominzada, Vice Presidents PAJCCI, Directors PAJCCI, Secretary General PAJCCI Ms. Faiza, Moin M. Fudda, Country Director were also present.
Business 02 Major Gainers COMPANY
OPEN
UPFL
HIGH
LOW
CLOSE
CHANGE
TURNOVER
4,300.00 100.00
10.70
1.00
3.25
44.44%
COLG
1,500.00 30.55
14.45
0.53
2.25
25.00%
SIEM
774.68
17.44
151.54
1.74
1.87
16.88%
KHTC
141.20
16.37
92.04
0.96
1.75
16.67%
MFFL
385.12
10.12
17.35
0.24
7.20
16.13%
-400.00 -166.67 -12.99 -11.00 -7.00
437.54 4.03 16.14 98.14 35.04
-5.28 -0.40 -0.38 -0.76 -1.00
6.42 3.91 3.06 5.75 4.70
-13.48% -12.72% -12.57% -11.54% -11.15%
0.53 1.00 0.24 0.03 0.11
16,316,500 14.45 12,534,500 10.70 11,980,500 17.35 10,951,500 14.57 10,806,500 2.63
0.53 1.00 0.24 0.03 0.11
16,316,500 12,534,500 11,980,500 10,951,500 10,806,500
Major Losers ULEVER NESTLE BHAT PICT INDU
10,100.00 4,733.33 257.01 209.03 270.00
Volume Leaders BYCO BOP PTC MLCF NIB
14.45 10.70 17.35 14.57 2.63
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.2098 156.4105 1.1302 128.1614
Dollar East Australian Dollar1 Canadian Dollar China Yuan Euro Japanese Yen Saudi Riyal UAE Dirham UK Pound Sterling US Dollar
BUY
SELL
00.51 97.4 13 128.3 1.15 26 26.5 157.3 97.3
01.5 99 13.5 129.7 1.175 26.3 26.85 158.6 97.9
CORPORATE CORNER Pakistan Sri Lanka trade ties growing
customers are eligible to participate in the promotion and winners will be selected on the basis of maximum number of Caller Tunes set during the week, including dedications, copy tunes and gifts. Warid will be announcing two winners in the first week and one winner for every week afterwards.
PSO inaugurates first of its kind Fortified Medical Center
KARACHI: Pakistan Sri Lanka can compliment each other in trade and learn from each other’s experience. This was said by President Pakistan Sri Lanka Business Forum Tarek M. Khan, at a business networking dinner reception hosted at the Sri Lanka Consulate General. Speaking to media at the reception Tarek Khan gave details of the 45th General body meeting of the Pakistan Sri Lanka Business Forum held earlier in the day at Sri Lankan Consulate. The President PSBF Tarek M. Khan, chaired the and reviewed the current trade between Sri Lanka and Pakistan. He said to enhance two-way trade, the forum has developed a strategy which will provide the necessary platform for the business community. Past President Rauf Tabani, also briefed the forum about Sri Lankan delegations which have visited Pakistan and how the forum assisted them in interaction between local business community. It was noted that 32 delegations have visited in the past five years. This shows the interest level of business community of Sri Lanka to develop and enhance trade relation with our local business people. Tarek Khan proposed that the forum should focus on some core areas of opportunities which have great potential such as Tourism, Finance and infrastructure development.
Warid gives customers an opportunity to win iPhone 5 LAHORE: Warid Telecom, leading the way of innovation in Pakistan’s telecom industry, now gives its customer an opportunity to win the hottest handset on the planet, the iPhone 5, by simply getting the most Caller Tunes. The more Caller Tunes one gets, the greater the chances of winning. This offer is open for both postpaid and prepaid subscribers. All existing and new MRBT
KARACHI: Pakistan State Oil, the nation’s largest public sector company has inaugurated the first of its kind Fortified Medical Center on the first day of the New Year at PSO House. This initiative is part of the new management’s vision which encompasses programs for the well-being of the employees. This fully equipped and stateof-the-art medical center is designed to provide quality healthcare services for the company’s staff members and their families. Healthcare professionals will be available at the center around the clock and specialists will also visit the center to meet the employees needs. Speaking at the ocassion, Mr. Naeem Y. Mir-CEO&MD, PSO said “We at PSO are committed to the belief that each employee is a strategic asset to the company and it is they who are the true driving force behind our success. With this in mind we have the launched this first of its kind fortified medical center to cater to the physical health of our employees. Such facilities will also be built in each city where PSO operates and its employees reside” In its role as both a public sector as well as the largest energy company in Pakistan, PSO and its employees are committed to meeting the fuel needs of the country in a timely and responsible manner.
digm shift in Pakistan’s cellular environment by elevating consumer experience to a level that is unparalleled within the local industry. The past year proved to be another year of achievements for Mobilink, which continued to make progress through its increasing investments in infrastructure, enhanced customer care solutions for its subscribers and corporate responsibility initiatives that aim to make a difference in the communities in which Mobilink operates. Rashid Khan, President & CEO, Mobilink highlighted, ‘’Mobilink made a promise at the beginning of 2012 to elevate customer experience, and I am proud that Mobilink has capitalized and consolidated on its strengths to deliver on that promise. Mobilink has ensured its leadership position by investing on our state of the art infrastructure, ensuring unparalleled network strength and unmatched customer relationship management, which has in turn yielded stellar results. As we enter 2013, Mobilink remains committed to our focus on a customer centric approach, which will see us go beyond business to reshape lives across Pakistan.” During the past year, Mobilink made significant investment which has resulted in the expansion and modernization of its network infrastructure across Pakistan.
OBS, AkzoNobel brighten NICH KARACHI: OBS in collaboration with AkzoNobel, Charter for Compassion Pakistan (Cfc Pakistan)- along with its sister organization
NOWPDP (Network of Organization Working for People with Disabilities, Pakistan)- partnered in painting the first floor of NICH (National Institute of Child Health). The employees of OBS, AkzoNobel, CfC Pakistan and NOWPDP painted the premises in a bid to enhance the awareness for the cause of better healthcare facilities for children in Pakistan. The event concluded with an interactive session that included the Ms. Adeela Tarek Khan, Senior Director OBS, Mr. Amin Hashwani, President of CfC Pakistan and NOWPDP and Ms. Mehreen Shah, Communications Manager AkzoNobel. Also present at the occasion was Mr. Salman Ahmed, prominent musician and social activist who performed for the young patient and appreciated the collective efforts of OBS, AkzoNobel and Cfc Pakistan. The event aimed to highlight the need to improve the state of healthcare facilities for children in the country. Also show how collective efforts of corporations and NGOs can make a tangible difference. As NICH is the only government hospital for children the painting activity was conducted to brighten the hospital environment for the visiting patients, while trying to generate a sense of responsibility to such vital institutions in our country. During the interactive session, the motivational talks by the prominent personalities aimed to inspire the young volunteers to work harder for the benefit of the society, while the musical entertainment brought smiles to the faces and the families of the young patients.
KARACHI: Nestle Pakistan Managing Director Magdi Batato with senior management of Nestle at a dinner reception.
Mobilink to make 2012 the year of ‘Elevating Consumer Experience’ KARACHI: Mobilink has honored its commitment, made at the start of 2012, to make a para-
Wednesday, 2 January, 2013