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Wednesday, 3 October, 2012
Three pronged PakistanRussia understanding ISLAMABAD
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akistan and Russia have signed three memorandums of understanding (MoUs) for expanding Pakistan Steel Mills (PSM), upgrading Pakistan Railways and cooperation in the water and power projects. Unveiling the details of the agreements at a press conference here on Tuesday, Minister of State and Chairman Board of Investment (BoI) Saleem H. Mandviwala said that the MoU regarding the PSM mainly dealt with cooperating in the project of its modernization, reconstruction and building production capacity up to 2.5 million ton. He said that the Russian Company Tyazhpromexport helped Pakistan to establish the PSM. Mandviwala said that Russia would provide both technical and financial assistance in all the projects. “In the PSM’s expansion project, Russia is likely to provide assistance of about USD $350 to $500 million, which is expected to be signed within 60 days”, he added. The BoI Chairman said that the Russian company would carry out the technical audit.
LCCI seeks reduction in mark up rate LAHORE APP
Lahore Chamber of Commerce and Industry Tuesday urged the State Bank of Pakistan to reduce markup rate to single digit and bring it at par with China, India, Sri Lanka and Bangladesh where it is 6.56, 8, 7.75 and 7.74 percent respectively. In a joint statement, LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh and Vice President Mian Abuzar Shad said single digit mark up was absolutely essential for Pakistan to compete with the regional economies in the world markets. They said inflation was a matter of controlling demand and supply and if the supply chain was up to the mark, the inflation would automatically remain at comfort level. They said the existing double digit markup had already caused undue damage to the economy which would take long time to recover. They said both local and foreign investments had already nosedived because of high cost of doing business in Pakistan, while the FDI situation in other regional economies was quite visible. They feared that if proactive, well-tailored and well consulted measures were not taken and the economy remained sliding downwards, the days were not very far when Pakistan would become a trading country instead of a manufacturing hub.
Talking about the second MoU, which pertained to upgrading the Pakistan Railways infrastructure, Mandviwala said that a delegation of Russian company, Transmashholding, during its recent visit to Pakistan, was informed about the upcoming tenders for supply of passenger carriages and exploring opportunities for joint ventures for the carriages’ production. The Russian company had also invited the Pakistan Railways officials to visit its facilities, he added. According to the third MoU for cooperation in the water and power sector, Russia has showed interest to invest in many projects, especially in Muzaffargarh and Jamshoro power plants, he added. Mandviwala hoped that the MoUs would become a milestone in the bilateral relations of the two countries. By inking the Bilateral Investment Treaty (BIT), Russia has complemented mutual efforts for enhancing cooperation in various development projects launched by Pakistan, he said. Speaking on the occasion, Yuri M. Kozlov, Chief Trade Representative of Russia in Pakistan, termed the Russian delegation’s visit successful.
Pakistan, Russia sign MoUs for steel, energy, railways projects
ADB, IFSB sign MoU to promote Islamic finance ISLAMABAD APP
The Asian Development Bank (ADB) and Islamic Financial Services Board (IFSB) signed a Memorandum of Understanding (MOU) to facilitate international cooperation between the two organizations in promoting the development of Islamic finance in common developing member countries. The MOU provides an effective basis for joint activities and general cooperation in areas of common interest. The MoU is aimed at enhancing cooperation in the form of joint technical assistance and/or policy-based work in Common Developing Member Countries. It would help promoting the development of Islamic finance, in particular strengthening the capacity of regulating and supervising Islamic financial services institutions, Islamic capital markets and Islamic liquidity management in Common Developing Member Countries. The other objective of the MoU is to stimulate joint research and exchange of information, which will be used as critical evidence to support policy areas of mutual interest, as well as to enhance knowledgesharing between both organizations. The agreement was signed by ADB Vice President for Knowledge Management and Sustainable Development, Bindu Lohani and IFSB Secretary-General Jaseem Ahmed on behalf of their institutions in Manila, said ADB press statement received here Tuesday. “The importance of Islamic Finance in the de-
velopment of Asia cannot be doubted, as can be seen by the significant increase in Shari’ah compliant financing in a number of ADB’s developing member countries in recent years,” said Bindu Lohani, ADB Vice President for Knowledge Management and Sustainable Development, said. “We look forward to working even more closely with IFSB under this MOU to address some of the key issues facing our member countries in the areas of financial inclusiveness and infrastructure financing,” Lohani added. On the occasion, Ahmed thanked ADB for its longstanding support for Islamic finance, and noted that the MOU formalizes a partnership between IFSB and ADB going back to the provision of the first Technical Assistance by the ADB for Islamic finance in 2005. He underlined that the MOU was designed to serve both institutions and their respective mandates. “In the context of Asia’s developmental needs, and the expanding potential for Islamic finance in the region, the MOU strengthens our ability to jointly support the policy, institutional and capacity requirements for a more resilient Islamic financial sector, Ahmed said. “I especially look forward to work with ADB in encouraging cross-border cooperation in the use of Islamic finance to address the challenges of widening financial and social inclusion in Asia, and in meeting Asia’s enormous need for innovative financial mechanisms for its infrastructure spending,” he added.
PTA posts lucrative mobile banking numbers Rs90m transactions made through mobile banking system last year: DG PTA RAWALPINDI APP
Information technology is a fast growing sector in the country, which is reflective from the fact that around Rs90 million transactions have been made through mobile banking system during the last year, Director General of Pakistan Telecommunication Authority (PTA) Dr Saleem said on Tuesday. He was addressing a seminar organized by the Punjab College of Information Technology here to highlight importance of E-Commerce in the contemporary world and formal launching of its M. Com. Programme. The DG PTA urged the young generation to equip themselves with latest techniques and modern education to meet the challenges of the present times and future. Concept of E-Commerce and Mobile Commerce is touching new heights and exploring new horizons with each passing day and the younger generation must excel in this sector, he added. The seminar, presided over by Director of Fiscal Policy Study Center of Muhammad Ali Jinnah University Dr Safdar Ali Butt, was attended by Director Punjab Group of Colleges Rawalpindi Chaudhry Muhammad Akram, former President of Rawalpindi Chamber of Commerce and Industry Syed Asad Mashahdi, Deputy Director of Higher Education Commission Hakim Ali Talpur, Senior Vice President of Islamabad Chamber of Commerce and Industry Tauseef Zaman and Director University of Central Punjab Professor Khaleel Muhammad.
EU advisers to urge structural reform for banks BRUSSELS AGENCIES
An EU advisory group will on Tuesday recommend reforms that could include splitting banks’ retail business from their investment operations to protect savers and host nations from the kind of risk-taking that triggered the financial crisis. Bank of Finland Governor Erkki Liikanen, who led the group of academics and experts set up by the European Commission, will announce their verdict on how best to reform bank structures in the wake of the crisis that began five years ago. Making a separation between retail banking and high-risk businesses such as trading could be among the proposals Liikanen will make to stop crises in investment banking dragging down high street banks and the savers and businesses who depend on them. Michel Barnier, the European Commissioner in charge of regulation, will give his initial response to journalists after Liikanen outlines the recommendations at a press conference at 1030 GMT. Legally separating or ring-fencing investment banking would make it easier for the part of the bank that holds savers’ deposits and lends to businesses to keep running even if other parts of the group collapsed, some banking experts say. It would affect European banks such as Britain’s Barclays, Germany’s Deutsche Bank and France’s BNP Paribas, which engage in high street banking alongside riskier trading in stocks, debt and other securities. One source familiar with the group’s work recently said separating retail banking from the high-risk business, dubbed “casino banking” by critics, would be part of the proposals, though this could change in the final report.
Asian markets boosted by US manufacturing data HONG KONG AFP
Asian markets rose Tuesday following betterthan-expected manufacturing data from the United States that lifted hopes for recovery in the world’s number one economy. The news, which followed minor improvements in Asian and European activity, also gave a boost to the dollar and euro against the yen, lifting Japanese stocks. Tokyo was 0.25 percent higher by the break, Sydney added 0.60 percent and Seoul was 0.27 percent higher, while Taipei added 0.26 percent. Hong Kong, Shanghai and Mumbai were closed for a public holiday. Traders took their lead from Wall Street, which ended broadly higher after the Institute for Supply Management said its Purchasing Managers Index (PMI) edged up to 51.5
last month, from 49.6 in August — representing the first expansion after three months of contraction. A reading above 50 indicates growth and anything below represents shrinkage. On Monday China said its own PMI was at 49.8 in September, which while still negative represents a modest improvement on 49.2 in August. And in Europe the reading came in at 46.1, up from 45.1. CLSA equity strategist Nicholas Smith said that the figures appeared to show “that the general picture is for a turnaround in global markets”. At the close of trade on Wall Street the Dow added 0.58 percent and the S&P 500 added 0.27 percent but the Nasdaq edged down 0.09 percent. On currency markets the dollar stood at 78.13 yen in Asian trade, from 77.98 yen in New York late Monday. The euro was at $1.2898 and 100.82 yen,
compared with $1.2887 and 100.51 yen in New York. Eyes are now on the Reserve Bank of Australia (RBA), which is due later in the day to announce a decision on interest rates, with opinion split on whether it will make a cut to boost the economy. “A rate cut today looks like a line ball decision for the RBA,” Ric Spooner, Chief Market Analyst at CMC Markets said in a note to clients. “With a division of opinion amongst analysts on whether the RBA will move, a rate cut today has the potential to move markets this afternoon,” he said, according to Dow Jones Newswires. Oil prices rose in early trade, with New York’s main contract, light sweet crude for delivery in November, adding three cents to $92.51 a barrel and Brent North Sea crude for November gaining 16 cents to $112.35. Gold was at $1,777.30 at 0300 GMT compared with $1,770.50 on Monday.