Profit 3rd February, 2012 by Profit Epaper

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PIAF conjures up 7-point economy reviving plan Page 03

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Friday, 03 February, 2012

Banks not rewarding savers: Lawai g

Investing 40 per cent against 19 per cent SLR in government papers g Central bank should bring inflation rate down to single-digit KARACHI

ISMAIL DILAWAR

n the current recessionary climate the banking sector stands out to be one of the most resilient and ever-flourishing industry in Pakistan. But, despite pocketing huge profits at the end of every year, the country’s commercial banks are not rewarding the savers, the accomplished banker husain Lawai complains. Lawai, president and chief executive officer of summit Bank, is also critical of his counterparts in the commercial banks for investing around 35 to 40 per cent of their deposits in the risk-free and heavily-weighted government securities, including t-bills, PiBs and ijara sukuk, instead of 19 per cent prescribed by the banking regulations. further, the experienced banker also wants the country’s present snail-paced judicial process to be made faster so to decide the fate of hundreds of thousands of recovery suits pending in banking courts for years. Lawai believes that the banking industry in Pakistan is resilient and would remain so in the foreseeable future as is evident from a good spread and relatively better regulatory framework. “it is, however, the most unfortunate fact that banks are not rewarding to savers despite making handsome profits,” the outspoken banker lamented while talking to Profit during an exclusive interview here in his office. SBP, GOVERNMENT ENCOURAGING BANKS TO INVEST: Asked for his take on the present risk-averse behavior of the commercial banks, the banker said the government and the central bank were responsible for encouraging the profit-conscious banks to invest in the heavily-weighted government securities that had left little or no finances for the growth-oriented private sector in the banking system. the banker said when the sovereign borrower (government) was happily paying a heavy interest rate of KiBOR+3 to the banks, why would the latter take the risk to finance the private businesses in the current recessionary environment. RESTRICT BANKS’ LOANS TO NON-PRODUCTIVE PUBLIC SECTOR: the summit Bank chief wants the state Bank of Pakistan (sBP) to restrict the banks’ massive lending to the cash-strapped government, which from July 1 to January 20 of fY12 borrowed over Rs770 billion from the banking system. Lawai proposes an increase in the prevailing income tax rate to deter the banks from extending excessive advances to the public sector, which uses the borrowed money for nonproductive purposes like running of the government. BANKS TAKE ADVANTAGE OF SBP’S DISCOUNTING SCHEME: Also, the banker appeared critical of the central bank’s scheme that provides the banks with a window to borrow money from the regulator against the government

securities they hold. this window, he said, was enabling the banks to save a handsome amount without lifting a finger. “the state Bank after every two months announces its discount rate. We call it discounting, means whenever the banks need they can go to the window and borrow money against the treasury Bills and PiBs they hold,” Lawai said adding “the banks take advantage of that. it’s a sort of cycle that keeps running.” the instrument, he deems as most important, is that the regulators at sBP must prescribe “a certain limit” for the banks investment in government papers. BANKS VIOLATING SLR REGULARTIONS: “By regulatory laws we have to invest 19 per cent (in government securities). We call it sLR (statutory Liquidity Ratio). Like of the total deposits, the banks have to maintain an sLR of 19 per cent in government securities,” he said. “But what we are doing is to investing 35 to 40 per cent instead of the required 19 per cent, so i would suggest the state Bank not to allow 40 per cent investment and restrict them to 25 per cent,” Lawai said. “Why would i, as a banker, lend to an industry at 2.5 or 3 per cent mark-up rate when the government of Pakistan is giving me (KiBOR plus) 2.75,” he replied to a query on banks’ depleting loans to the private borrowers. NO ECONOMIC GROWTH SANS CREDIT TO PRIVATE SECTOR: Asked to dwell on the ultimate implications, the banker said the private sector investment would go down that would reflect adversely on the already slow-paced economic growth in the poverty-stricken country. “Unavailability of credit would render the private investors unable to install industries, increase exports and conducting trading activities,” the banker said. According to banking experts, an increase in sLR restricts the banks’ leverage position to pump more money into the economy. Rs620 BILLION NON-PERFORMING LOANS: REASONS, REMIDEIS: About bad debts of the banking industry, he said the current classified volume of the nPLs was totaling Rs 620 billion, 17 per cent of the banks’ Rs 3.5 trillion total advances. Elaborating on major reasons for the ever-bourgeoning bank defaults in the country, the experienced banker underlined both external as well as internal factors. globally, he referred to a recessionary climate in the economy while domestically, Lawai said, an uncertain law and order situation, energy crises and frequent changes in the government policies were crippling the borrowers’ capacity to repay the borrowed money. OVER 0.15-0.75 MILLION RECOVERY SUITS PENIDNG IN BANKING COURTS: Asked for an effective remedy to check the rising nPs, the banker said the country’s judicial process be quickened. the existing laws to decide a recovery suit within 90 days be followed strictly. “But during my 40-year banking experience i never saw this

happen. it takes 10 to 15 years at least. so if we make this judicial process faster, you would see the size of nPLs reduced by half within next six months,” said he. Lawai said at present some 0.15 to 0.75 million cases pertaining to recovery of the bad debts were pending in various banking courts of the country that needed to be decided at the earliest. GO AFTER WILFULL DEFAULTERS: further, he said the banks should separate the willful defaulters from the genuine ones. “One should go after the willful defaulters, while the cases of genuine defaults be settled through negotiations.” the nPLs of his bank, summit Bank, were also higher as the sum was a total of the three banks, namely Arif habib Bank, My Bank and Atlas Bank, which had merged to become the summit Bank, respectively, in June 2009, Dec 2010 and June 2011. “nPLs of the three banks accumulated to Rs20 billion, but we have done full provisioning to avoid a loss,” he said. DON’T TIE INTEREST RATE WITH INFLATION: Lawai is also opposed to the tagging of interest rate with inflation saying the practice had little or no precedence in the developed world. “in the UK the inflation rate is 4.2 per cent but the interest rate stands at 0.5 per cent only,” he illustrated. Linking the discount rate with inflation in a country like Pakistan where the supply chain was completely “distorted” was incorrect, said the banker. CUT INFLATION RATE TO SINGLE-DIGIT : the senior banker views that the central bank should bring the inflation rate down to single-digit, by 8 to 9 per cent, with a single stroke of the pen. “Only this would ensure economic growth as 15 per cent interest margin is very high,” he said. SUMMIT BANK BUSINESS STRATEGY: Our business strategy focuses more on the trade financing as consumer banking has still not developed in Pakistan and the people need to be educated on the same. he said his bank, though nominally, was providing personal loans to corporate firms, their employees and those individuals having the

capacity and resources to repay the loan. summit Advantage Account, Lawai said, was the unique product his bank had launched to enable its account holders borrow money by 70 per cent against their one-year deposits. family saving Account is another special product the bank offers to the family members, including spouses and children, of its account holders by depositing only Rs 5000. “We pay 9 per cent interest rate against the normal 5 per cent. this is to promote family values,” Lawai said. to a query on the possibility of further acquisitions or mergers, the summit Bank CEO responded in negative saying the bank was focusing more on “organic growth” and would this year add up 35 more branches to its 166 countrywide branch network. he said summit Bank’ total advances and deposits amounted to Rs 66 billion and Rs 90 billion, respectively.

PM to inaugurate Business Express Afghanistan briefs Pakistan on security measures for TAPI pipeline LAHORE

STAFF REPORT

RiME Minister syed Yousaf Raza gillani will inaugurate the Business Express, the first non-stop train to run between the provincial capitals of Punjab and sindh with its passenger facilitation by the private sector, today. Pakistan Railways and four Brothers international had inked an agreement on August 18 last year to operate the train between Lahore and Karachi as a joint venture under publicprivate partnership. the train was to start running between Lahore City and Karachi Cantt within 120 days of signing the agreement, but its inauguration had to be

postponed because its coaches could not be renovated and upgraded according to the standard of the private company in time. Comprising nine AC coaches, two power and one luggage vans and a dining car, the up train will leave Karachi City at 3:30 pm and reach Lahore at 9:35 am the next day, while the down special will leave Lahore at 3:30pm to arrive at Karachi City at 10am the next day, after having technical stoppages at Khanewal and Rohri. Under the agreement, the company will invest Rs 225.786 million to bring value adding ‘substantive changes’ to the passenger services, including ticketing, luggage care, bedding and food service etc. it will pay Rs 1.573 million per single train journey and Rs 1.148 billion per annum to railways at the rate of 88 per cent of carrying capacity of the train. the agreement will be valid for five years and can be extended for another term with the consent of both the parties.

ISLAMABAD STAFF REPORT

fghAnistAn on thursday briefed Pakistan on its security plan for $7.6 billion turkmenistan Afghanistan Pakistan and india (tAPi) pipeline project, initiation of which hinges on the fool proof security steps through the war ravaged country. Afghan Deputy Minister of finance Mohammad Mustafa Mastoor called on Petroleum Minister Dr. Asim hussain along with Afghan Deputy Minister for Policy and Mines Mir Ahmad Jawid sadat. Both sides also agreed that transit fee for the tAPi pipeline should be realistic and agreed to hold a detailed session to have an understanding. Afghan Deputy finance Minister apprised the minister about the Afghan government’s commitment on the implementation of tAPi pipeline project to help meet regional en-

ergy demands. the Afghan delegation provided an update on the security situation for tAPi pipeline portion that will pass through Afghanistan. he informed that Afghan government is planning to hold road shows in major cities of Pakistan to promote investment in Afghanistan. Petroleum Minister said Afghanistan is an important strategic partner and bilateral relations between the two countries need to be further strengthened. he emphasized that economic linkages were the key to strengthening of bilateral relations which are imperative for the development of both the countries. he informed the Afghan delegation regarding positive discussions with india on tAPi pipeline project and proposed that a trilateral meeting should be held to discuss the issues related to project. he said Pakistan is willing to explore the possibility of establishment of PsO retail outlets in Afghanistan.

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Friday, 03 February, 2012

02 news PBC, PRGMEA welcome WTO waiver for EU concession KARACHI STAFF REPORT

AKistAn Business Council in a statement welcomed the WtO waiver for EU concessions granted to certain textile exports from Pakistan post the 2010 floods. PBC in its statement recalled that the move to request the EU for a short time market access came about at a meeting that the PBC had with the President of Pakistan in August 2010 which was held to review post flood rehabilitation measures. At the request of the President of Pakistan, a PBC team comprising its members; namely Mr. Bashir Ali Mohammad and Mr. shabbir Diwan accompanied the then foreign Minister and Mr. Zafar Mahmood, secretary Commerce to the major European Capitals and Brussels in september 2010 to plead Pakistan’s case. the PBC in its statement has noted that

though it had taken nearly 18 months for the concessions to materialize it in no way demeans the sustained efforts of the President of Pakistan, as well as those of the foreign Minister Ms. hina Rabbani Khar, the Minister of Commerce Makhdoom Amin fahim, the secretary foreign Affairs Mr. salman Bashir, the secretary Commerce Mr. Zafar Mahmood, Mr. tariq Puri Chairman of tDAP as well as the PBC members led by Mr. Bashir Ali Mohammad. the PBC also acknowledges the support that was extended by Pakistan’s friends in the EU Parliament especially Mr. sajjad Karim, Member European Parliament for liaising between the various EU parliamentarians and the PBC/gOP to garner and maintain continued support for this concession. Mr. Asad Umar Chairman PBC hoped that the working relationship developed between the PBC & the gOP on trade will continue as Pak-

Federal ports, shipping agencies earn Rs12bn in FY11 KARACHI STAFF REPORT

EDERAL government institutions related to the ports and shipping industry earned a profit of over Rs 12 billion during fY11 despite the lingering global economic downturn. this was stated by federal Minister for Ports and shipping senator Babar ghauri while announcing the regularization of some 223 daily wagers and contractual employees in the Karachi Port trust here at the KPt head office thursday. Attributing the achievement to “good governance”, the federal minister said the KPt and the Pakistan national shipping Corporation (PnsC) had made a remarkable earning of Rs 11 billion and Rs 1 billion, respectively, during the last financial year. “the

Port Qasim and gwadar Port are also on the same profitable path,” he told the ceremony titled “Regularization of Contractual/Daily Wagers Employees of KPt”. “All institutions falling under my ministry are profitable and progressing well,” the MQM leader said. On the occasion, the senator also announced the regularization of KPt’s 113 sportsmen working on stipend and pledged that the laborers from Karachi Dock Labor Board (KDLB) would also soon be hearing good news. Also, he said the KPt board had approved Rs 2.7 million for the sports activities. Earlier, KPt Chairman Aslam hayat welcomed the federal minister at KPt saying his job, as a civil servant, was none other than implementing the government’s policies on ground.

istan strives for gsP Plus status for its exports to the EU. Meanwhile, the value-added textile sector also hailed the economic package offered by European Union (EU) terming it as a good omen to the ailing textile industry. the Central and Zonal Chairmen of Pakistan Readymade garments Manufacturers and Exporters Association (PRgMEA) shehzad salim and Atiq Kochra while taking sigh of relief on allowing duty free access of 75 products to EU said that Pakistan’s value-added textile industry especially garments exports were badly suffering due to various factors and EU’s package which was long awaited by exporters would bring a little life into garment and apparel industry. they said that EU package for 2 years, extendable for 3rd year, was offered last year, out of which 65 are textile products to support our economy affected with devastated floods but india

at WtO objected followed by Bangladesh and some other countries to the said trade concession to Pakistan. “As the indian government has withdrawn their objection followed by settlement with the other complainant countries and finally WtO has given nOC to EU in their Wednesday’s meeting in Brussels for the said trade concession may bring a life into ailing garments industry of Pakistan”, commented shehzad salim. the PRgMEA leaders appreciated the efforts of Commerce Minister, Amin faheem, secretary Commerce Zafar Mehmood and tDAP’s CE, tariq Puri for their tireless efforts for said market access to EU. they hoped that after EU foreign Minister’s approval and WtO nOC to the approved trade concession the bill will now go to EU Councils of Ministers for passing the law which may take about few weeks to get implemented. they said that Pakistan should also make strenuous efforts to get gsP Plus in January 2014.

CM inaugurates Rahim Yar Khan Industrial Estate LAHORE

STAFF REPORT

hiEf Minister Punjab Mian shahbaz sharif inaugurated Rahim Yar Khan industrial Estate, on Wednesday. this 500 Acres industrial estate is located on n-5 high way mid of Bhahdurpur chowk, sadiqabad. the area is at the junction of 3 provinces most suited for industrial growth. the Chairman Punjab industrial Estates Development and Management Company sM tanveer said on this occasion that Rahim Yar Khan industrial Estate would provide 60000 jobs and help eradicating poverty not only from this area but from south Punjab. Being a project of Punjab industrial Estates Development and Management Company, the estate is promised to be of international standards. this company already has state of the art sundar industrial Estate to its credit. Mr. sM tanveer while talking to local members of Chamber of Commerce reitrated that the government led by Chief Minister of Punjab Mian shahbaz sharif desire to develop south Punjab and bring it at par with other parts of province. Locals of area have highly appreciated this project as it would lead to growth and job creation.

the PiE Chairman said that planning and development of nine others industrial estates in the province was also underway. he said these industrial estates would be established in Kasur tannery Park, gujrat, Vehari, Bahawalpur, D g Khan, Wazirabad Cutlery Cluster, Jhang, Okara, sahiwal and Rawalpindi. he said the PiE was working under the vision of Punjab Chief Minister Muhammad shahbaz shairf to make the Punjab an industrial hub in the country with all modern facilities. he said 100 acre each halal Park would also be established in Rahim Yar Khan and Multan industrial Estates to promote the halal Product of Pakistan and get its share from world halal food market. he said PiEDMC made the Public Private Partnership concept successful and completing its project without support of any government institution. he said the Punjab government had given Rs one billion only at time of PiEDMC established and now it is Rs 15 billion worth Company with all positive repute. he said for Rahim Yar Khan industrial Estate PiE is providing Rs 240 million while Master Plan of Bahlwal industrial Estate was completed and litigations in Multan industrial Estate was finished so that work on Phase-ii of this estate was started.

LCCI eyes East European market LAHORE

STAFF REPORT

AhORE Chamber of Commerce and industry thursday, while calling for market diversification, has urged the businessmen to make inroads in Eastern Europe which is an untapped market and has a huge potential for Pakistani goods. LCCi President irfan Qaiser sheikh was talking to Ambassador-designate to Bulgaria Jamshed iftikhar here at the Lahore Chamber of Commerce and industry. LCCi senior Vice President Kashif Younis Meher, Vice President saeeda nazar, former President Mian Muzaffar Ali and former senior Vice President tahir Javed Malik also attended the meeting and spoke on as to how the trade relations with Bulgaria could be further strengthened. LCCi President said that Pakistani merchandise are best of the best in the world but only because of lack of information it could not be able to reach a number of good international markets. he said that Bulgaria is a gateway to Europe with cheaper labour as

compared to Europe; therefore, it could help win a number of European destinations. irfan Qaiser sheikh said that Pakistani business community wants to develop good trade and economic relations with Bulgarian businessmen and in this regard the role of Pakistan Embassy is of prime importance. he said that both Pakistan and Bulgaria were loosing their share in two way trade. imports and exports are dropping year by year and it is causing a downward trend in overall trade. Pakistan’s exports to Bulgaria were to the tune of $15.3 million in 2008 which dropped by 22.2 per cent and 14.3 per cent in 2009 and 2010 respectively. similarly Pakistan’s imports from Bulgaria stood at $187 million in 2008 which fell by 71 per cent in 2009 and reached at $20.3 million in 2010 registering another decrease of 63 per cent. the bilateral trade has come down to $30.5 million in 2010 which touched the peak of $202.3 million in 2008. All these figures strongly suggest taking some serious steps to regain the prior level of trade which was much better. Pakistan’s major exports to Bulgaria comprise cotton, manmade staple fibres, plastics and

articles thereof, articles of apparel, cereals, optical, photo, technical, medical, etc apparatus. We mostly export raw or semi finished goods to Bulgaria which fetch much little price. We need to study Bulgarian market with special focus on exploring opportunities to export finished goods. Pakistan imports ships, boats, manmade staple fibres, inorganic chemicals, precious metal compound, isotopes, tobacco and manufactured tobacco substitutes, machinery etc from Bulgaria. Market intelligence Reports are serving as a good tool to know about the potential areas where Pakistan can try to take some share. he urged the ambassador to market Pakistan as a lucrative place for Bulgarian investors who can use it as a base for access to Chinese and indian markets. Moreover, Pakistan offers great opportunities to Bulgarian businessmen to invest in the developing every sector and infrastructure of Pakistan. Bulgaria has very important seaport called Varna. We need to study the opportunities available for us to access the landlocked countries of Europe which are situated in the neighbours of Bulgaria like serbia and hungary.

Punjab Board of Revenue starts computerisation of land records LAHOREL: Punjab Board of Revenue’s Land Record Management and information service Centre (LRMis) has started computerisation of land records in Jehlum. the spokesman of Punjab Board of Revenue said that after establishment of five service centres in tehsil Lahore, Kasur, hafizabad, Pindi Bhattian and Lodhran, the program had been rolled out in tehsil Jehlum. Currently land records of two villages (Rukh Beli Peera ghalib and Beli Balian) of tehsil Jehlum had been computerised and services of issuance of computerised fard and Attestation of mutations were provided at service centre. the right holders will get efficient and transparent land records services through this service centre. Whereas, data entry of rest of the villages in Jehlum was underway which would be completed very soon thereby extending the computerised land records services throughout the district. STAFF REPORT

EU stresses strengthening of IPRs in Pakistan ISLAMABAD: European Union (EU) has said with the strengthening of protection of intellectual property rights (iPR) and improvement of service delivery system Pakistan can restore the confidence of investors as well as the local business community. A delegation of EU experts led by thierry novelle discussed the progress on the ongoing trade Related technical Assistance programme relating to automation and capacity building of iP experts with the Director general iPO- Pakistan sajjad Ahmad Bhutta. the purpose of delegation’s visit is to review the trade needs assessment for EU. Dg iPO said a comprehensive programme was under implementation to create awareness about the protection of iP rights besides developing linkages between inventors and industry to promote creations and innovations. he said that service delivery system with regard to registration of iP rights could be further improved after studying successful iP models of different countries. he said projects were also being implemented for capacity building and training of enforcement partners. EU delegation termed the implementation on tRtA programme satisfactory and appreciated the integrated iP management system in the country, which has provided better facilities to the iP right owners. they said that protection of iP rights was directly linked with economic development. STAFF REPORT

Dollar reserves inch up to $16.870bn KARACHI: the country’s foreign exchange reserves inched up by 0.4 per cent or $ 68 million during the week ended on January 27. the slight increase in the country’s dollar holdings is attributable to an upsurge in the commercial banks’ reserves. the state Bank of Pakistan thursday reported that during the week under review the country’s dollar reserves increased to $ 16.870 billion against $ 16.802 billion of the previous week that ended on January 20. the review period saw the state Bank’s foreign exchange reserves declining by $ 30 million to $ 12.523 billion compared to last week’s $ 12.553 billion. however, the commercial banks held dollars more than they did last week as their reserves climbed by 2.3 per cent or $ 99 million to $ 4.347 billion against $ 4.248 billion of a week earlier. the analysts attribute the current downward trend in country’s dollar reserves to mainly the increasing import payments plus the retirement of external debts that, according to sBP, have accumulated to over $ 60 billion. STAFF REPORT

SMEDA, German ministry division sign MoU LAHORE: small and Medium Enterprises Development Authority (sMEDA) and international Division of german federal Ministry for Economic Cooperation and Development have signed an MoU for their Cooperation in the area of industrial Energy Efficiency improvement and green Productivity in small and Medium Enterprises (sMEs) of Pakistan. Mr. Yousaf naseem Khokhar, Chief Executive Officer, sMEDA and Mr. Werner Lindig, Director and head of international Division, “bfz ggmbh”, germany singed the MOU on behalf of their respective organizations at a ceremony held at sMEDA head office today. CEO sMEDA Mr Yousaf naseem Khokhar while exchanging his views on this occasion was confident that the partnership of Pakistan and germany under the MOU would optimize energy efficiency by introducing latest tools & techniques in sME sector of Pakistan enabling the local industry work more efficiently and ecologically in a sustainable manner. he hoped that the initiatives to be taken under this MOU would ultimately reflect positive impact on sustainable economic and social development of Pakistan. this is notable that under the aegis of MoU, both the organizations will jointly conduct detailed energy audits and implement energy management system and perform green Productivity Audits with active participation of concerned industrial Associations in Pakistan. STAFF REPORT

Punjab govt issues wheat sale notification LAHORE: secretary food Punjab irfan Ali has said that in order to provide flour to the masses at cheaper rates and stabilise its prices in the open market Punjab government under flour Milling Act 2011-12 issued a notification regarding sale of wheat of year 2010-11 stored in the open at the rate of Rs960 per 40 kg. he said that the policy will remain effective for 30 days. secretary food further informed that the sale of the wheat will also result in availability of more space for the storage of wheat. STAFF REPORT

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Friday, 03 February, 2012

news

PIAF conjures up 7-point economy reviving plan LAHORE

STAFF REPORT

AKistAn industrial and traders Associations front (PiAf) has presented a sevenpoint action plan to revive the economy. in a statement issued here thursday, the PiAf Chairman Engineer sohail Lashari said that political harmony, a ten-year energy plan, Methodology to end corruption, Plan to enhance Agricultural yield, minimum dependence of foreign, domestic loans, lowering of markup for the sake of industrialization in the coun-

try and a plan to improve law and order situation are the features of the PiAf Economic Revival Agenda and the government should immediately initiate work on these points to get rid of economic ills being faced by the trade and industry. the PiAf Chairman said that political uncertainty has caused undue damage to the economy as it was not only the foreign investors who stayed away but at the domestic front there was hardly any investment. he said that due to wrong economic policies the graph of unemployment was going up with every passing day. Engineer sohail Lashari said

PHMA protests against bhatta mafia LAHORE: Pakistan hardware Merchants Association (PhMA) has condemned the harassment incident of PhMA members by bhatta mafia in Karachi. PhMA called an emergent meeting at its central office to review the law and order situation, which was jointly chaired by the PhMA Central Chairman sardar Usman ghani and Central Vice Chairman syed tariq Rasheed and attended by large number of members. PhMA leadership strongly condemned activities of bhatta mafia, especially the Liqatabad incident, in which mafia after refusal from bhatta attacked the shops of PhMA members with crackers to create harassment. hardware association strongly protests this act of terror and demand of federal interior Minister Rehman Malik to take immediate action against these elements and protect the businessmen attached with hardware sector, which were not only providing jobs to people and also contributing to the national exchequer a huge amount of money in shape of taxes and duties. STAFF REPORT

that it is high time that the government should prepare a ten year energy plan so that the business community could be able to continue their businesses with peace of mind. he said that only because of massive fluctuations in electricity rates the businessmen avoided to take any foreign orders. he said that recent increase in petroleum prices would hit the business activities hard as it is going to make Pakistani merchandise uncompetitive in the world market. he said that the government should immediately evolve a methodology to win consensus on Kalabagh Dam that is the only solution to cheaper electricity.

PiAf Chairman said that an announcement of the methodology to end corruption would help revive the government reputation that has plunged in the recent years due to multiple reasons. he said that corruption in rental power projects had sent a very wrong signal to the international community. Engineer sohail Lashari said that if right measures are not taken with immediate effect, the farming community would suffer heavily in near future. he said that government heavy dependence on domestic and foreign loans is also earning a bad name for the government therefore the government should curtail its

non-development funds to meet its day-to-day expenditures. Over markup rate, the PiAf Chairman said that in Pakistan the process of industrialization has come to a complete halt as the markup rate is the highest in the region and the

NIBGE organises Basmati DNA workshop LAHORE STAFF REPORT

AtiOnAL institute for Biotechnology and genetic Engineering (niBgE) organised a workshop to highlight the need of Basmati DnA testing and up-gradation of the facility to regulate certification process in line with international standards. Oneday workshop discussed issues related to importance of rice trade in Pakistan, successful development and implementation of national plans of action and policies to achieve rice export targets and facilities available in public sector institutions to meet various WtO standards, says a spokesman of the Rice Exporters Association of Pakistan (REAP) here on thursday. Dr Yusuf Zafar, Director general, Agriculture and Biotechnology, PAEC, highlighted the potential issues of super Basmati exports to European Union. he stated that fsA (UK) has made DnA test-

ing mandatory since 2003. he discussed about certification authorities, i.e. isO, WtO, CBD, and nsA, and rules formulated for across the border trades. niBgE in collaboration of REAP and tDAP has established DnA testing facilities to benefit rice exporters in order to comply with rules and regulation of international market, especially European Union, which allows very low (7%) admixture level in super Basmati labeled products, he added. he highlighted the need to take serious measures for food authenticity and traceability standards in Pakistan to meet challenge of global trade and universalisation. Rice Exporters Association of Pakistan (REAP) Chairman Javed islam Agha highlighted major rice industry achievements like better export policies for rice trade, Upgraded DnA certification facilities to check adulteration in super Basmati products, and brand trust in international market. he greatly appreciated the role of niBgE in provision of high standards testing services at very

cheap price. he also discussed major challenges faced by rice industry that includes high market price, strong competitors, degradation of product quality and quantity over time, demand of mandatory gMO detection and toxins (Aflotoxin, Mycotoxin) testing in rice. he suggested to up-grade facilities in Pakistan according to international requirements and jointly working on all forums to overcome these problems. he assured his support in all research programs. Dr Muhammad Arif, Principal scientist and in charge of Basmati DnA testing lab, in his talk highlighted importance of purity testing involving certification for customers, international rice trade and to qualify for zero import duty. he described major facilities available at niBgE for certification of Basmati Rice and their up-gradation through genetic analyzer (Beckman Coulter CEQ 8000). this facility will allow accurate and highprecision sizing of the amplified fragments and will help to detect very low admixture level.

steps are direly needed to bring it to single digit. Last but not the least, Engineer sohail Lashari said that all the provincial government would have to form liaison committees to control law and order situation in the country.

‘Flour millers on profiteering spree’ LAHORE: Agri forum Pakistan Chairman Muhammad ibrahim Mughal has estimated that flour millers are earning 42 per cent profit by buying wheat at Rs 24 per kilogram and selling flour at Rs 34 per kilogram. ‘Atta Chakki owners are selling flour at Rs 34 per kilogram whereas flour millers are selling flour at Rs 29 per kilogram but after extracting fine, semolina and other expensive ingredients,’ he claimed while addressing an association of the flour consumers here on thursday. Agri forum Pakistan Chairman stated that consumers from Lahore only paying Rs 600 million as profit to flour sellers while consumers from big cities such as Karachi, Lahore, Rawalpindi, Multan, Peshawar, Quetta, gujranwala, faisalabad and others were paying Rs 20 to 25 billion per annum as profit to flour millers. he further stated that wheat growers were selling wheat to the millers at Rs 21 per kilogram and according to an estimate two million tons of wheat was available with the flour millers. STAFF REPORT

CORPORATE CORNER Honourable Sheikh Abdul Qadir Al Shaibi, key holder of Khana-e-Kaaba

statement issued here today. he said that the Ministry of interior ordered to extend deadline from January 31, 2011 to february 29, 2012. this deadline encompasses all Pakistan for renewal of Arms Licenses specifically issued by Ministry of interior. he said that nADRA’s designated 158 Centers across the country have a separate counter to facilitate citizens and revalidate their arms licenses. PRESS RELEASE

Wateen Telecom Tops PTA’s QoS Survey for Broadband Operators MAKKAH: saudi Arabia visited PiA head Office and met Managing Director PiA, Mr nadeem Khan Yousufzai and other senior officials; Prayed for the prosperity and progress of Pakistan and the national flag Carrier. honourable iman Bin hussain Bin Ali Zainul Abidin Khadim-e-Roza Razool (sAW) Madinah-tul-Munawara and his assistant Ahmed Ali Yasin also visited PiA head Office before their departure to Madinah by PiA flight. MD PiA and other senior officials bid them farewell at Jinnah international Airport. Both the honourable guests were presented with PiA aircraft model. Also seen in the picture are Mr haider Jalal, Advisor Marketing PiA and Mian Mohammad Rasheed, Managing Director Madinah group of industries. PRESS RELEASE

Deadline for computerisation of arms licenses extended ISLAMABAD: On the directives of Ministry for interior, nADRA has extended deadline for the computerization of Arms Licenses till 29 february 2012, nADRA spokesman stated this in a

ISLAMABAD: Pakistan’s leading converged communications service provider, Wateen telecom, has been ranked the number one wireless broadband service provider in the country by PtA. in a survey for quality of service for all broadband service providers, Wateen was ranked first in the overall standings for all wireless broadband operators in the country. in pursuance of PtA’s role to safeguard of consumer interests and growth of quality broadband services, PtA carried out the second nationwide Broadband Quality of service (Qos) survey of all wireless and wireline service providers throughout the country. the survey was conducted during third and fourth quarter of 2011. it is worthwhile to note that Qos generally determines the standing and status of country’s telecom services; therefore, special emphasis is exerted to keep the Qos of broadband companies at a satisfactory level. PtA has devised Qos standards/Key Performance indicators (KPis) in line with best international practices and in consultation with service providers. PRESS RELEASE

75pc CEOs admit there is room for improvement in value measurement KARACHI: in the wake of the financial crisis,

three-quarters of the world’s CEOs say more emphasis should be placed on measuring the value of non-financial assets such as intellectual capital and customer relationships to drive longterm performance, according to research from the American institute of CPAs (AiCPA) and Chartered institute of Management Accountants (CiMA). But just 51 per cent of nearly 300 CEOs surveyed in 21 countries say their organisations currently measure the value of non-financial assets well or very well. And only 12 per cent now turn to their finance teams for help with the task. AiCPA and CiMA are releasing these findings today at simultaneous events in new York, London and Karachi launching the Chartered global Management Accountant (CgMA) designation. PRESS RELEASE

ZONG’s CSC Manager presenting a return air ticket for Thailand to the lucky winner of the campaign. PRESS RELEASE

Bill Gates outlines stark choice KARACHI: fourth annual letter highlights progress in developing countries, outlines new approaches to help poorest build self-sufficienc -Bill gates, co-chair of the Bill & Melinda gates foundation, challenged global leaders today in his fourth annual letter to invest in innovations that are accelerating progress against poverty, or risk a future in which millions needlessly starve. the letter describes remarkable progress in the developing world and makes the case to continue investing in efforts that have made a difference for millions of the world’s poorest people. Over the past 50 years, for example, the percentage of the population living in poverty has fallen from 40 percent to 15 percent, or about 1 billion people. gates believes it is possible to continue the progress, but only with innovative investments in areas like helping small farmers grow more food, which is the best way to fight hunger and poverty among the poor. PRESS RELEASE

Habib Oil Mills organised Mehfil - e - Milad in karachi Umaima Adil, Dilshad Mirza, Samina Kamal, Tabinda Lari, Sajida Saleem, Hooria Faheem, Farheen Qaiser, Uzma Zaidi, Naila Seemi, and Shereen Shehzad are present in the photo. PRESS RELEASE

KARACHI: Mr. Arif Suleman, honorary Trade Advisor of Thai government had a meeting with Khadim-eRoza e Rasool (S.A.W.W.) Imam bin Hassan bin Ali Zain ul Abideen and Ahmed Ali Yasin during the recent visit at Karachi. PRESS RELEASE