profitepaper pakistantoday 03rd may, 2012

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Zardari, LCCI, foreign diplomats discuss all things fiscal over dinner Page 02

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Thursday, 03 May, 2012

NeIGHBoURLY LoVe-IN ePISoDe 127

Loveth thy neighbour and not question why; for, lo and behold, with MFN comes FDI India, Pakistan give ‘trade diplomacy’ a try NEW DELHI

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AFP

NDIA and Pakistan, still at loggerheads on Kashmir and no closer to a full peace deal, are channelling their efforts into increasing trade in the hope that business can bring them together.

Thirty-one-year-old Karachi food trader Kashif Gul Memom is among those eager to seize the opportunities offered by easier links between the estranged neighbours, which have fought three wars since independence in 1947. “This is a change for the good.

It’s an exciting time,” said Memom, one of the generation born after the painful partition of the subcontinent that gave birth to India and the Islamic republic of Pakistan.

“My generation of business people is putting the past behind us.

We’re looking to the future, India is such a huge market for us,” Memom told AFP while at the largest ever Pakistani trade fair held in India.

The improved relations between the nuclear-armed rivals stem from Pakistan’s decision to grant India “Most Favoured Nation (MFN)” status by year end, meaning Indian exports will be treated the same as those from other nations.

In further progress, the neighbours opened a second trading gate in April

along their heavily militarised border, boosting the number of trucks able to cross daily to 600 from 150. India now also says it is ready to end a ban on investment from Pakistan and the countries are planning to allow multiple-entry business visas to spur exchanges — a key demand by company executives. The warming commercial ties underline the new relevance of the

private sector in the peace process, with prospects still low for any swift settlement of the “core issue” of the nations’ competing claims to Kashmir. The divided Himalayan territory has been the trigger of two of their three wars since independence. Indian and Pakistani officials have been looking at the so-called “China option” as a model, with deepening economic engagement seen by ex-

perts as crucial to establishing lasting peace in the troubled region. Beijing and New Delhi have been pursuing stronger economic ties while resolving outstanding political issues, such as a festering border dispute that erupted into a brief, bloody war in the 1960s.

“There is no other option but economic partnership between India and Pakistan — this leads on to other partnerships,” Indian Commerce Minister Anand Sharma said at the April trade fair in Delhi, a follow-on to a similar venture in Lahore earlier in the year.

Pakistan set to accord MFN status to India before the year goes by

Zardari touts MFN a landmark, as trade hopes soar towards the sky

DUBAI: An official announcement to declare India the Most Favoured Nation, or MFN, by Pakistan is expected by the end of this year, a top government official said. The central banks of the two countries are in close touch to clear the way for the opening of bank branches in each other’s territory by early next year. “Actually the cabinet of the Government of Pakistan in principal agreed that India is a business partner. There are some technicalities and after those are resolved then the final shape will be done,” Pakistan’s Federal Commerce Minister Makhdoom Amin Fahim told Khaleej Times at the Annual Investment Meeting in Dubai. New Delhi gave the MFN status to Pakistan in 1996. In recent months, both the countries discussed a lot to increase trade relations. Pakistan drastically reduced the number of Indian products barred from the country and India decided to lift a ban on foreign direct investment from Pakistan.

Fahim mentioned that the negative list is being discussed between the two sides through secretaries of commerce and they already have done two meetings. This month again a meeting is going to be held and there will be a lot of progress, he added. “I believe the target is by the end of this year to complete all the requirements,” he said. When asked if there is any expectation that the Pakistan will officially announce the MFN status for India by the end of this year, he replied: “Definitely.” Banks play important role for bilateral trade, the reason why the Reserve Bank of India and the State Bank of Pakistan are exploring the possibility of opening branches in each others’ countries. “In principle, we have decided that the branches of the two countries’ banks will be opened at both sides. Central banks of both the countries will sit together and work out the strategy to go forward, he said, adding: “I think the complete package will be completed by the end of December this year.” When asked about the opening of branches early next year, he said, “yes”. National Bank of Pakistan (NBP), the government-owned bank, confirmed the progress on branch opening in India. “Yes we are working on it and NBP will be the first bank to open a branch in India,” Muhammed Imran Butt, senior vice-president and regional chief executive of NBP offshore banking in Bahrain, told Khaleej Times on the sidelines of AIM. “It will benefit traders of both the countries,” he added. Both the countries are also discussing relaxation in visa rules. ONLINE

ISLAMABAD: President Asif Ali Zardari has said that granting Most Favored Nation trading status to India was a paradigmatic shift in policy driven by the business sectors on both sides of the border. He said that the decision would reconstruct the region’s economies and increase its stability. This he said addressing a gathering comprising of ambassadors, High Commissioners, diplomats and the members of LCCI Executive Committee, during a dinner hosted by Lahore Chamber of Commerce & Industry here at Aiwan-e-Sadr today. Governor Punjab Sardar Latif Khan Khosa, Governor Khyber Pakhtunkhwa Barrister Syed Masood Kausar, Governor Gilgit Baltistan‚ Pir Syed Karam Ali Shah, federal ministers and parliamentarians were also present. He said that Pakistan has signed Business Investment Treaties with many nations to boost business activities. The President while calling upon the international community for investments in Pakistan said that the Government will provide the best possible enabling environment for the foreign investment. Pakistan, the President said, was committed to promote an investor-friendly environment and it has much more to offer than bad news only. According to prepared text of his speech, the President said that Pakistan was committed to promoting an investor-friendly environment and was offering the most liberal investment policy regime in the region. The incentives, he said, include full repatriation of capital, capital gains, dividends and profits. Recounting challenges and opportunities to the Pak economy, the President said that poor infrastructure, load shedding and inadequate gas supply were among the major challenges to the economy. He said that another major issue that concerned the international community was the lack of access to the international markets in the way of Pakistan having trade and not aid. The President while calling upon the business community to assist the Government in formulation of the policies reiterated his call for ensuring the continuity of the economic policies. One of the greatest issues in our economic development, the President emphasized, has been the absence of continuity in economic policies. The business community should take ownership of the policies and should then defend those policies even as governments change, the President said. INP

coMMeNT

The more things change

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NDEED, the more things change, the more they sometimes remain the same, especially in the finance ministry in Islamabad, that too when it decides on the fate of much talked about PSEs, hemorrhaging approximately Rs300 billion every year even as the economy is choked by stagflation. Finance minister Dr Sheikh did not take piercing questions on the PSE matter too well at our usual pre-budget seminar almost exactly one year ago, promising visible change before the fiscal ran its course. Yet there is no movement. There is not even a decision on the fate of these sick entities. Whether privatisation or strategic restructuring under government control, which is it going to be? The picture is no clearer than one year ago.

Yet even before crucial long term decisions are made, the initial exercise will be the same. Even if privatisation is chosen as the way forward – which is hardly likely – these money losers will first have to be brought back into shape, so much of the initial management decisions will be the same. That there is still no movement means one of two things. One, the finance ministry, and therefore also the highest offices of government, are simply not aware of the need to return to profitability, at least stem leakages. Now that is hardly likely, so reluctance must be deliberate.

Two, there is simply no government will to move forward on the PSE issue. Tough decisions will have to be made.

Political appointees will have to be shown the door.

Competence will need to be rewarded. Hardly an appetising election year cocktail for those in power. So the PSEs shall remain a debilitating anchor weighing down the entire economy. Even now, news reports indicating high-level ministerial committees looking into the matter are simply page fillers. True, the more things change the more they remain the same.

Sharma says India has decided in principle to allow FDI NEW DELHI: The government on Wednesday said it has in-principle decided to allow foreign direct investment from Pakistan and the move was expected to enhance commercial engagement between the two countries. When asked whether government has decided in principle to allow FDI from Pakistan, Commerce and Industry minister Anand Sharma, in a written reply to the Rajya Sabha said “yes”, reported PTI. However, he said, that no foreign direct investment (FDI) targets have been fixed. “The move is expected to enhance the commercial engagement and bilateral trade between India and Pakistan,” Sharma added. He said during discussions, both sides agreed on the desirability of promoting bilateral investments and removing impediments for such investments. “A greater degree of bilateral investment could strengthen exports from India to Pakistan. Exports in sectors such as agriculture produce, chemicals, textiles, auto components could be enhanced through bilateral investment,” Sharma said. To another question, Minister of State for Commerce and Industry Jyotiraditya Scindia, said the issue of permitting FDI from Pakistan was subsequently examined through inter-ministerial consultations. “Following consultations, the ministry of finance has been requested to take steps to appropriately amend the relevant Foreign Exchange Management Act (FEMA) Regulations,” Scindia said. He said the proposal envisages allowing investment from the neighbouring country through the government approval route, “i.e after scrutiny by the Foreign Investment Promotion Board (FIPB), wherein relevant considerations, including security considerations, are taken into account”.

Currently, FDI from Pakistan is not permitted. ONLINE

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Thursday, 03 May, 2012

news APTMA’S AMBITIoUS AIMS

DINNeR RecIPeS

Zardari, LccI, foreign diplomats Meeting export shortfall is no biggie discuss all things fiscal over dinner C LAHOrE

STAFF REPORT

LAHOrE

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STAFF REPORT

RESIDENT of Pakistan Asif Ali Zardari has said that role of business community is crucial for the progress & prosperity of the country and they should help the government to achieve the economic goals. He said that our Government is taking longterm, mid-term and short term measures to bring the economy back on rail.

He was speaking at the Annual Goodwill Dinner in honor of Foreign Ambassadors in Pakistan. The Prime Minister of Pakistan Yousaf Raza Gilani was the guest of honor.

The LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar also addressed the most high-level gathering while the LCCI former presidents Mian Mohammad Ashraf, Mian Anjum Nisar, Shahid Hassan Sheikh, Mian Misbahur Rehman, Iftikhar Ali Malik, Sheikh Mohammad Asif, Mian Shafqat Ali, Senator Zafar Iqbal Chaudhry, Convener Standing Committee on Diplomatic, Foreign Missions Mian Tariq Rehman and former EC member Mohammad Haroon were prominent amongst the others. As many as 50 ambassadors & diplomats and Federal ministers graced the prestigious function of the LCCI. The President of Pakistan while highlighting the contribution of the Industrialists pointed out that Pakistan’s entrepreneurs ensured the economic viability of the state that inherited negligible industrial base at the time of independence. He said that the accelerated growth has been achieved with the cooperation of business community. The government is availing the assistance of private sector under public-private ventures. He appreciated the Lahore Chamber of Commerce & Industry, particularly, the LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar for having constant liaison with foreign ambassadors and giving them update on economic situation.

Speaking on the occasion, the LCCI President Irfan Qaiser Sheikh appreciated the efforts of government in war on terror and in maintaining the law and order in the country. He said that the economy of Pakistan is suffering from the fatigue of the war on terrorism. He said that Pakistan has lost more than thirty four thousand lives while its economy has taken a hit of around 70 billion dollars. He said that Pakistan should be granted maximum market access on favorable terms so our businesses can create jobs and opportunities for people to be hopeful. While seeking the help of diplomats, the LCCI President said that Pakistan wants trade, not aid. Irfan Qaiser Sheikh said that

mutual trade could be enhanced by exchanging trade delegations and organizing fairs and exhibitions.

For that matter, visa regime needs to be liberalized for the bona fide businessmen in order for them travel frequently.

He said that business community believes in economic and trade diplomacy. Though granting the MFN status to India was a step in right direction opening trade with India should not be at the expense of industry in Pakistan. We can compete with Indian businesses if we have a level playing field. Our cost of doing business and production is much higher when compared with India or with other regional economies for that matter. He said that industry is facing a growing energy crisis especially in Punjab. Our Indian counterparts have better and cheaper supply of energy. Businesses in large cities of Punjab such as Lahore and Faisalabad got gas supplies for only 180 days last year. We got gas supply for only 35 days since December 25, 2011. Whereas there is no gas load management program for the industry in Karachi. Similarly the electricity load shedding in Lahore and Punjab has gone up to 10 hours a day, there is no load shedding of electricity for industry in Karachi.

The energy crisis is one of the key reasons behind low economic growth in Pakistan. We cannot overcome this energy crisis without depending on indigenous resources. Our energy mix is heavily dependent on oil and gas, accounting for almost 80% of primary energy supplies. We spent around 12 billion dollars on imports of oil last year. Whereas, our local energy potential is based on water, coal and alternative resources such as solar and wind. We can also harness responsible nuclear technology for meeting our future energy needs.

He said that Potentially, we have the wherewithal to grow at around 7%. We have rich resource base, young population and locational advantages. We are situated in a high growth region. Neighboring India and China have seen economic growth over 7% and 10% respectively for the last two decades.

Similarly, Bangladesh and Sri Lanka too have done well in expanding their economies.

But it seems that we are unable to grow according to our potential. This is simply because of the persistence of complex, long-standing and multi-dimensional policy, institutional and infrastructure bottlenecks. The LCCI President said that the Federal Budget 2012-13 is being prepared. This provides an opportunity to enhance facilitation for the private sector. I would make a few submissions with regards to the forthcoming federal budget which can boost the confidence of our business community.

Market turns from technicals to chatter

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SHAHAB JAfry

INANCIAL markets can and do act a little dicey as budget time draws near, especially in times like the present, with the bourse locked in furious bull-run even as the real economy tears at the seams. There’s the expectation of benefits and patronage for sectors bidding up the market; the prospect of tax relief; the turn from technicals to market chatter, following matters related to subsidies, etc. And considering the market’s recent waltz past the psychological 14,000 mark, a number of interesting trends are emerging.

One, the cement sector has played handsomely in times of increased demand, both local and cross-border.

Rapidly rising prices have not led to supply constraints or hoarding, or much uproar for that matter, which means the uptrend has some time before it plateaus. It is well positioned to cater to rising demand on both eastern and western borders.

The trade breakthrough with India is a windfall moment for the sector, even though final checks and balances need revisiting considering India’s unfair (and undocumented) concerns regarding tonnage etc at the crossing. And Afghan reconstruction is already gathering momentum. A win-win in both cases, which is why brokers have begun betraying expectations of tax relief in the budget. Take a hint!

Two, the banking sector has been an appreciated contributor to the uptrend, but it has remained below par, with ample upside potential. It’s collective star, and share value, is set to rise as sure, rare signs of foreign interest and investment begin gracing the sector. And with high return on offer in terms of

dividends and bonuses, investment in banking scrips is not a bad call as the market moves beyond the 14k barrier and banking profits put the sector back in the limelight as a potential growth engine.

Three, with harvesting season underway, time has come to play the cyclical boom in fertiliser scrips, especially since they traded well below par all the while the market roared from one milestone to another. Despite its range-bound trading of the last month, at the heels of a lackluster showing at best over the market’s last four-and-a-half thousand points rise, fertiliser is positioned to do well all the way to the budget, at least.

Four, oil sector performance too has been below par, especially considering earnings in recent quarters. The sector takes cue from international price movements in black gold, where WTI crude has just generated a buy signal at $109/barrel, banking no doubt on improved numbers from America to generate additional summer demand. And as oil rises, local companies’ books will no doubt register profits, which must be reflected in the eventual market price. Oil too should do well in whatever remains of the outgoing fiscal.

Once again, it’s that time of the (financial) year when technical indicators are ignored in favour of market insight banking on well placed information flow (not that technicals are a good call at the KSE in the best of times). For the moment, it seems the chatter is tilting towards a highly bid market by the time Dr Sheikh presents the next budget. Stay long, stay happy.

The writer is Business Editor, Pakistan Today.

Comments and querries: jafry.shahab@pakistantoday.com.pk

HAIRMAN All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has said that the textile industry has potential to meet shortfall in exports, reaching $1 billion during first nine months of current fiscal against the corresponding period provided that it is facilitated with uninterrupted energy supply and globally competitive interest rates. He said the textile exports have suffered a loss of $1 billion during first nine months of current fiscal against the corresponding period, mainly due to energy crisis and financial constraints. He said the textile industry exports have fallen short by 10% in value terms and in fact 30% in quantity terms meaning thereby that the earning per unit of exported items has been higher compared with previous year. The textile exports would have crossed $12 billion in first nine months of current fiscal if production shortfall in quantity terms had not taken place, he added. Therefore, he said, the textile industry efforts are commendable as the loss to the exports in terms of value is not as big as in the terms of quantity. Only in the month of

March, he said, the quantitative exports of cotton cloth have declined by 43%, followed by 33% drop in knitwear, 30% in bed wear, 22% in towel and 35% in readymade garments. Mohsin said had there not been energy crisis and financial constraints, the textile exports would have been more than $12 billion against $9 billion at present. Chairman APTMA said that although there is a loss of $1 billion during first nine months of current fiscal comparing with the previous in value terms but the textile industry can still work for the remaining period and try to achieve previous years’ benchmark if policy of due weight to textile industry remains intact, as promised by the President. He said the spinning industry is being hit hard due to drop in exports of value added textile chain as all of these are consumers of yarn. The State Bank of Pakistan should facilitate the textile industry in order to restore its viability, he added. He said there is a strong potential in textile industry to break the previous highest record of exports during remaining period of current fiscal if government ensures uninterrupted energy supply, both electricity and gas. The industry has already performed in terms of per unit price, and it can repeat the history subject to redressal of issues, he added.

FRUIT RIVALRY

BlackBerry 10 unveiled as RIM aims to challenge Apple NEWS DESK

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HEN Research In Motion Ltd. Chief Executive Officer Thorsten Heins unveiled a prototype of the new BlackBerry 10 phone yesterday, it lacked a feature that has kept legions of users loyal to the platform: a physical keyboard. At the BlackBerry World expo in Orlando, Florida, he showed off a sleek touch-screen device that more closely resembled an iPhone or Android smartphone than the keypad-equipped BlackBerrys of old. While RIM still plans to produce models with keyboards, the demonstration was the biggest signal yet that the company was shifting to a touch-screen world. RIM, which is counting on its redesigned BlackBerry 10 lineup to reverse a sales slump, faces a quandary. Smartphone users have embraced virtual keyboards, evidenced by Apple Inc. and Google Inc. accounting for more than 80 percent of the market. Even so, taking away RIM’s physical keypad removes a feature that distinguishes it from the competition. “Some will lament it, but others will embrace it,” said Nigel Hughes, a vice president in charge of sales

at Ashburn, Virginia-based SteelCloud Inc., which builds BlackBerry- compatible security software and hardware for customers such as the Department of Defense. “It’s a recognition that the future is without a keyboard.” The iPhone’s debut in 2007, followed by Android devices a year later, showed that users were willing to embrace phones without a keyboard.

While RIM made a foray into the touch-screen market in 2008 with the BlackBerry Storm, most of its lineup kept the keypads. The Storm was criticized for buggy software and was outsold by the BlackBerry Curve and Bold models, which both feature keyboards.

HEAD to HEAD: Scrapping the physical keyboard from the initial BlackBerry 10 device will put it in closer competition with the iPhone and Android models, such as the Samsung Galaxy S. That could be tough for RIM, said Stephen Beck, a managing partner at the technology consulting firm CG42 LLC in Wilton, Connecticut. “If you’re forcing a migration to non-keyboard, you’re going to get people asking, ‘What’s the best of breed of those devices?’” Beck said. “Given the momentum of iPhone and Android, that’s going to be a tough argument for RIM to win.”

INFLATeD INSIGHT

Boomeranged!

Massive increase in PoL prices increases inflation cPI increases to 14-month high SPI inflation on YoY basis increases by 7.5 percent in April 2012 g g

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ISLAMABAD

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AMER SIAL

HE government’s apathetic decision to pass on the massive increase in petroleum prices to consumers last month has boomeranged, as the inflation based upon the consumer price index (CPI) increased by 11.3 percent on year-on-year basis in April 2012 as compared to 10.8 percent in the previous month of March.

Due to the increase in POL prices the CPI has increased to the highest level in 14 months with inflation increasing by 1.8 percent in April 2012.

The hike in consumer prices and its expected increasing momentum in the coming months have put at rest all boastful official claims to curb inflation. The government’s decision not to share decline in POL prices with the people will lead to further hike in prices of consumer items.

According to the data of the Pakistan Bureau of Statistics (PBS), core inflation measured by non-food non-energy CPI (Core NFNE) increased by 10.8 percent in April 2012 as well as in March 2012(YoY) and by 9.5 percent in April 2011. Core NFNE inflation on MoM basis

increased by 1.4 percent in April 2012 as compared to 1.0 percent a month earlier and 1.4 percent in April 2011.

Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 11.0 percent in April 2012 and by 10.5 percent in March 2012 (YoY) which increased by 12.0 percent in April 2011. Core Trimmed inflation has increased by 1.3 percent on MoM basis in April 2012 compared with 0.8 percent in March 2012 which increased by 1.0 percent in April 2011.

SPI inflation on YoY basis increased by 7.5 percent in April 2012 compared with 6.1 percent a month earlier and 14.2 percent in April 2011. On MoM basis, it increased by 1.7 percent in April 2012 as compared to an increase by 1.5 percent a month earlier and an increase of 0.3 percent in April 2011. WPI inflation on YoY basis increased to 3.8 percent in April 2012 compared with 4.5 percent a month earlier and 24.9 percent in April 2011.

WPI inflation on MoM basis increased by 1.8 percent in April 2012 as compared to an increase of 0.7 percent a month earlier and an increase of 2.5 percent in April 2011.

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Thursday, 03 May, 2012

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news

A magnet can save over fifty percent of electricity… no seriously it can LAHOrE STAFF REPORT

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ECH Society Club, an elected forum of technocrats and professionals, has demanded of the quarters concerned to fully explore newly invented super efficient permanent magnet, which, according to inventor, can save over fifty percent of electricity. The demand was raised during a meeting held at main office of Tech Club the other day. Malik Asad ur Rehman briefed General Secretary Tech Society Engr. Mushtaq Ahmed Bhatti, Mr. M. Jameel Gishkori, Member, Management Committee and Secretary TECH Society Col. (Retd) Tanvir Ahmed about salient features of newly invented super efficient permanent magnet. He claimed that the invention of the super magnet, if scientifically explored, can rid the entire world of high cost of energy. He maintained that use of super magnet could help in reducing negative impacts of energy crisis in the country. He added that new magnet provided more than 100percent additional mechanical output force than that of the contemporary electromagnet. Engr. Mushtaq Ahmed Bhatti said this magnet, if technically explored, could help a lot in reducing demand of electricity. He said department concerned should come forward and lend support for the success of this new invention.

Major Gainers

WHAT’S THe ScAM?

Income tax always had its pros and cons g

Rs41m income tax refunds fraud unearthed LAHOrE

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STAFF REPORT

EDERAL Board of Revenue (FBR) DG Intelligence and Investigation (Inland Revenue) has unearthed a massive Income Tax fraud of Rs41 millions in which income tax official, in connivance with Punjab Provincial Co-operative Bank (PPCB) and National Saving Centre (NSC) employees, issued fake refunds to bogus taxpayers. FBR officials disclosed that in this tax scam, income tax refunds had been issued in the names of bogus taxpayers on the basis of excess tax deductions on electricity bills, which had been declared fake by the Multan Electric Power Company (MEPCO) authorities at Rajanpur. They pointed out that income tax refund vouchers which are nonnegotiable instruments and are “Payee’s A/c Only” cheques have been fraudulently

encashed through single person’s accounts of persons other than beneficiaries of said bogus income tax refunds.

They revealed that 391 income tax refund vouchers of Rs7,178,200 have been encashed through twenty two (22) bank accounts, including personal accounts of employees of PPCB at Punjab Provincial Co-operative Bank at various branches of district Rajanpur.

While 784 income tax refund vouchers of Rs15,050,865 have been encashed through bank accounts maintained in the name of persons other than beneficiaries of those refunds, at National Saving Centre, Rajanpur. In total, 2161 persons to whom refunds of Rs41,311,850 have been issued do not exist on Stock Register of Income Tax Office, Rajanpur. Detailed investigation conducted by the Directorate of Intelligence and Investigation (Inland Revenue), Lahore, has unveiled that fake and forged records of

bogus taxpayers were prepared by the income tax officials at Rajanpur to claim bogus refunds. Later on, refunds were issued in the names of those bogus taxpayers. Managers and staff members of PPCB prepared fake “Bills of Collection (BCs)” of different persons and after getting income tax vouchers cleared from National Bank of Pakistan, Rajanpur credited the same into accounts of persons other than beneficiaries of said fake refunds, including accounts maintained by bank managers, staff of bank and friends / relatives of bank staff.

Similarly, managers and staff of National Savings Centre, Rajanpur prepared / entertained fake endorsements given on the back of refund vouchers / cheques pertaining to accounts, which either did not exist or did not pertain to the payees’, got those refund vouchers cleared from NBP, Rajanpur and credited to irrelevant accounts.

CORPORATE CORNER Live on the edge with Warid’s mobile internet – Superior service quality nationwide KARACHI: In keeping with brand’s commitment to provide its customers with reliable internet service, Warid Telecom is proud to reveal a new dimension with its improved Edge service.

This service marks the telecom company’s step forward in mobile internet.

This improved version of the Edge service offers greater reliability, speed, and a one stop solution for all your data needs across the country. Warid’s Edge services will empower consumers with a faster and more consistent online experience which allows rapid browsing as well as faster downloading no matter where you are. Warid is set to take the campaign on-ground with innovative activation that will allow the consumer to experience the superior quality of mobile internet service first hand. PRESS RELEASE

SLIc allocates a record amount of Rs 23.454 billion as bonus to policy-holders KARACHI: “State Life Insurance Corporation of Pakistan has allocated a record amount of Rs.23.454 billion as Bonus on with-profit policies of the valued policyholders as per the actuarial evaluation of 2011”. This was stated by Mr. Muzaffar Ahmed, Head of the Corporate Communication Department, while talking to the senior media persons at Principal Office, Karachi. He also informedtoday in an important meeting of the Board of Directors chaired by Mr. Shahid Aziz Siddiqui, Chairman, State Life; a total amount of Rs.23.454 billion as bonus to policyholders has been approved, showing an increase of 26.13% against the last year i.e. 2010. He also informed that State Life annually allocates 97.5% from its actuarial surplus income as Bonus to policyholders which is added to with-profit policies of the

valued policyholders and the remaining 2.5% is invested in Government of Pakistan’s long term economic plans. He also stated that comparatively during the year 2010, State Life had allocated an amount of Rs.18.595 billion as Bonus to policies of the valued policyholders. Mr. Muzaffar Ahmed informed that State Life is providing optimum returns as Bonuses which are increasing from year to year. Head of Corporate Communications further informed that the Life Fund of State Life stood at Rs.269 billion. PRESS RELEASE

Hardee’s to open outlet in centaurus Mall

ISLAMABAD: A lease agreement was signed between PakGulf Construction Pvt Limited and MDS Foods Pvt Limited for the opening of Hardee’s outlet at the Centaurus Mall. The signing ceremony took place at The Centaurus’ sales and marketing suite, here in Islamabad. During the ceremony, the CEO of PGCL, Mr. Sardar Tanvir Ilyas Khan said, “We feel extremely proud that The Centaurus Mall is a place of preference for discerning brand operators both local and international. We shall soon be opening the doors of this world class retail and family leisure center, which is destined to become the most visited destination for all.” Mr. Sohail Yousaf, CEO of MDS Foods Pvt Ltd said. “After successful opening of Hardees in Islamabad, we now envisage further diversifying in the market to serve our avid customers and we are excited about opening the 2nd outlet in the most awaited shopping arena, The Centaurus Mall.” The event was attended by representative of Al-Tamimi Group Saudi Arabia, and senior staff members from The Centaurus. PRESS RELEASE

SAP provides mobility, real-time analytics through HANATM KARACHI: SAP Pakistan introduces analytical ERP solutions for businesses in Pakistan which are geared to provide operational efficiency and excellent ROIs through higher productivity and better

management of routine functions. These technological offerings such as SAP HANA are aimed at providing mobility to companies through resourceful database management and revolutionizing decision-making by dramatically increasing the speed of existing processes and accessing large amounts of data in shorter periods of time. In today’s highly competitive business climate, immediate access to and analysis of all operational data ultimately determines the success of an organization. Companies demand insight into business operations as they happen in order to be able to react quickly to changing market conditions. To have a firm grip on the market pulse, SAP Pakistan provides the best possible solutions for companies belonging to any sector. Speaking on the occasion, Darren Rushworth, Executive Managing Director, SAP Pakistan and the Emerging Markets said, “SAP Pakistan remains committed to the development of the business sector of this country and in order to provide them with better functionality and operations management, we are introducing pioneering ERP solutions which will increase their efficiency and thus benefit their productivity.” He stressed on the importance of better technological infrastructure for companies and said, “Organizations need to be provided with better technical framework and database management and SAP Pakistan provides them with just the right solutions for all their business-related problems.” PRESS RELEASE

PTcL brings an unbeatable new ‘Pakistan Plus Package’ ISLAMABAD: In an unbeatable new offer, Pakistan Telecommunication Company Limited (PTCL) has upgraded its “Pakistan Plus Package”, now giving more free minutes, exceptional voice quality and free conference calling facility to its valued customers. PTCL customers can now avail never-ending on-net 1,100 nationwide free minutes along with conference call facility at minimal charges of Rs.249 per month. With the new Pakistan Plus Package, PTCL landline customers can also enjoy the liberty of nationwide unlimited free calls from PTCL to PTCL and Vfone on Sundays. “PTCL continues to provide the most affordable telecommunication packages and special offers to its customers,” said PTCL Senior Executive Vice President Commercial, Naveed Saeed. “With this revision , we have made 24/7 connectivity possible with unmatched voice quality and, that too, at the lowest rates in the industry for all our valued customers.” “Our aim is to exceed the expectations of our customers by providing them unlimited on-net dialing facility at the lowest rate,” said PTCL Executive Vice President Wire-line Business, Aasif Inam. PRESS RELEASE

Company

Open

High

Low

Close

Change

Unilever Food UniLever Pak Ltd Nestle Pakistan Ltd. Indus Dyeing Wyeth Pak Limited

2459.99 6326.29 4155.30 398.98 749.23

2582.94 6500.00 4249.00 418.92 769.99

2550.00 6331.00 4143.00 415.00 765.00

2582.94 6400.00 4196.99 418.69 768.31

122.95 120 73.71 314 41.69 39 19.71 210 19.08 55

Turnover

Major Losers Bata (Pak) XD Siemens Pakistan Millat Tractors Sanofi-AventisXD Pak Gum & ChemXD

664.49 709.05 509.64 160.00 142.12

664.49 709.00 510.00 154.50 148.69

632.00 700.00 500.00 152.50 139.00

632.91 700.00 500.99 152.79 139.20

-31.58 75 -9.05 345 -8.65 27,128 -7.21 450 -2.92 2,648

Volume Leaders K.E.S.C. P.T.C.L.A Lafarge Pakistan Jah.Sidd. Co. Fatima Fert.CoXD

3.70 12.55 4.83 14.93 23.25

4.54 13.55 5.36 15.93 24.41

3.85 12.39 4.80 14.61 23.06

4.47 13.52 5.27 15.93 24.40

0.77 20,648,059 0.97 18,619,551 0.44 13,640,165 1.00 13,491,762 1.15 12,275,250

Interbank Rates US Dollar UK Pound Japanese Yen Euro

90.9574 147.2782 1.1323 119.5544

Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar

Buy

Sell

91.20 119.14 146.69 1.1259 91.33 11.58 24.72 24.22 92.95

91.80 120.25 148.03 1.1361 92.67 11.75 24.92 24.41 95.26

oil slips to $119 on economy worries, US supplies LONDON

O

REUTERS

IL eased to around $119 a barrel on Wednesday as weak economic data in Europe and the United States hit the outlook for demand, and a rise in weekly US crude inventories underlined ample supplies. The euro zone’s manufacturing sector slipped further into decline last month, a survey showed on Wednesday. U.S. private employers added fewer jobs than expected in April and new orders for U.S. factory goods in March fell. Brent crude for June slipped 60 cents to $119.06 a barrel by 1451 GMT, after settling 19 cents higher on Tuesday. U.S. crude for June was down 76 cents at $105.40. “It does feel a bit like we are in a negative death spiral,” said Bjarne Schieldrop, chief commodity strategist at SEB in Oslo. “Austerity measures over an extended period are showing up in disappointing economic activity.”

Adding to the bearish tone, U.S. crude inventories rose by 2.84 million barrels last week, a report from the Energy Information Administration said, more than analysts’ average forecast of a 2.5 million-barrel rise. The EIA report at 1430 GMT also showed declines in stocks of gasoline and diesel, both of which were larger than analysts expected, and that crude stocks rose at the key oil hub of Cushing. <EIA/S> “The report doesn’t seem to be supportive of a further rally,” said Gene McGillian, analyst at Tradition Energy. “The draws in product stocks are minimal, crude was up nearly three million barrels, there’s a record amount of crude at Cushing and U.S. oil stocks are at a twenty-year high.” The EIA, which requires oil companies to provide information on stock levels, reported a larger drop in crude supplies than industry group the American Petroleum Institute, which collects information on a voluntary basis. On Tuesday, the API reported crude stocks rose by 2 million barrels. Oil remains well below its 2012 high of more than $128 a barrel reached in March. Lingering worries about the outlook for China, the second-largest oil consumer behind the United States, also helped to pressure prices. “China is a concern, with new loans falling sharply last month. The question is whether the government’s easing measures have come in time for a soft landing,” said Gordon Kwan, head of energy research at Mirae Asset Management in Hong Kong. Chinese bank lending is estimated to have dropped 30 percent in April from a month earlier as demand for credit declined, the official China Securities Journal reported on Wednesday. Concern about disruption to supply from Iran has eased in recent weeks as more conciliatory words are coming from Jerusalem and Tehran, which has also helped to bring prices down from their high. Iran said it was seeking an end to Western sanctions over its arms program during talks with world powers and criticized France for helping Israel, the only country in the Middle East widely believed to have atomic weapons.