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We’ve asked everyone to dig in: Dr Asim Hussain Govt encouraging oil and gas exploration in Pakistan ISLAMABAD
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NNI
DvISOR to the Prime Minister on Petroleum and Natural Resources, Dr. Asim Hussain has said that the Government has brought in comprehensive and facilitative policy reforms to encourage oil and gas exploration in the country, of which the Petroleum (Exploration and Production) Policy 2012 is a prime example. He said this while chairing a meeting with Pakistan Petroleum Exploration and Production Companies Association (PPEPCA) here in Islamabad Thursday. The meeting was also attended by Dr. Waqar Masood Khan Secretary Petroleum, Mr. Mazhar Farooq Secretary General PPEPCA, MD OGDCL, MD
SSGCL, MD Mari Petroleum Company Ltd, CEO Ocean Pakistan Ltd. (OPL), DG Petroleum Concessions, D.G Gas and other senior officers of the Ministry. PPEPCA representatives briefed the Advisor regarding ongoing exploration projects and the ones in pipeline after the announcement of Petroleum Policy 2012. Dr. Asim Hussain emphasized upon the exploration
companies to take full advantage of the 2012 policy as it offers competitive prices and is based on international best practices. He further said that PPEPCA should actively engage in deliberations on low volume gas policies including shale gas, flared gas, Marginal and Stranded oil and gas fields, so that additional gas is inserted into the system. Advisor on Petroleum and Natural Resources informed that the current energy
mix which is heavily dependent on conventional natural gas, has to be balanced out with inculcation of LNG. He said that the recently approved LPG (Production and Distribution) Policy Guidelines, 2012 are aimed at incentivizing the LPG industry for enhancing local LPG production as well as import of LPG and its utilization in the automotive sector and in LPG Air Mix plants for provision of gas to consumers. PPEPCA representatives thanked and lauded the active role of Advisor on Petroleum for implementing policies to encourage E&P Companies and enhancing their confidence to further invest in exploration and production projects. Moreover, PPEPCA assured full cooperation with the Government for exploration of new oil and gas fields so that the current energy situation is improved.
‘Transparent amnesty scheme is just what the economy needs’
ISLAMABAD ONLINE
A transparent tax amnesty scheme will help broadening the tax-to GDP ratio and boosting up
our rusting economy, a business leader said Thursday. FBR’s scheme can yield Rs100 billion which makes it key to overcome expected revenue shortfall and meet tax collection
target, said Munawar Mughal, former president Islamabad Chamber of Commerce and Industry. Talking to Dr. Murtaza Mughal, President Pakistan Economy Watch and Mr. Baig Raj, President of the Punjab Forum, he said that liberalised trade with India will destroy local industry and agriculture at a time when energy shortages have left almost every business uncompetitive. Policymakers should give a second thought to granting MFN status to India as some 25 per cent of the textile industry has already relocated overseas which will be accelerated, he stressed. Mr. Munawar Mughal, who is also the former chairman Founder Group said that closure of CNG will sink investments amounting to Rs 400 billion while it be push up the oil import bill, transportation costs, inflation and environmental pollution. At the occasion, Dr. Murtaza
Mughal said that liquid gas mafia and petroleum mafia is bent upon destroying CNG sector with the help of black sheep in the Petroleum Ministry and Ogra. He said that India wants free trade while conspiring to destroy Pakistan’s agriculture through water terrorism. Dr Asim Hussain, adviser to the prime minister on petroleum, has not only failed to deliver but he has also brought a bad name to the government which was already struggling with image problem, he said. Dr. Murtaza Mughal demanded a probe in the deals closed by the adviser made while keeping personal welfare in mind and ignoring national interests. Asking the government to relieve Dr. Asim which has become a liability for the ruling coalition or he should demonstrate courage to resign for his failures and wrongdoings.
Forex reserves stand at over $13 billion ISLAMABAD APP
Pakistan’s total liquid foreign reserves as on December 28 stood at $13,808.1 million, said SBP on Thursday. The State Bank of Pakistan (SBP), in a statement, said the foreign reserves held by the SBP were $ 9,009.4 million and by other banks $ 4,798.7 million.
FBR introduces new software to facilitate taxpayers ISLAMABAD APP
Federal Board of Revenue (FBR) has developed a Computerized Risk-based Evaluation of Sales Tax (CREST) software that checks information in monthly returns, import, export data and cross matches for every registered person. A statement issued by the Board here said that CREST system has in-built capacity to verify the veracity of reply received from the registered person. CREST system is designed for Sales Tax and is based on declarations and covers areas like purchases including input tax adjustment of buyers and suppliers. It also covers Zero Rated Sales to registered person with non-active ATL or blacklisted or suspended Sales Tax Registration Numbers (STRNs) and Section 8B-exemptionclaims against qualifying criteria per notification. The system also covers exports claim in returns which do not match with customs export data and commercial imports by non-manufactures who also do not show value addition on imports, it added. Introductory workshops were held in Lahore and Karachi and system is in test-stage and messages to 1,000 sales tax payers have already been sent by FBR alerting them to discrepancies detected in their cases. The system allows faster and timely sending of discrepancy-alerts to taxpayers. CREST also provides taxpayers an IT system that they can use in order to reply to the CREST discrepancy-alerts without taxpayer needing to visit the tax offices. CREST use by taxpayers is an optionalfacility and taxpayers can ignore it and make an in-person visit to tax office to explain his position regarding the discrepancy-alert.
Pakistan, Indonesia to start implementing PTA during the current month ISLAMABAD ONLINE
The Embassy of the Republic of Indonesia in Pakistan said on Wednesday Preferential Trade Agreement (PTA) between two countries will be implemented during the current month. Jakarta and Islamabad have completed the spadework following the successful meetings between the top officials of two countries during the D-8 Summit held recently in Islamabad, said Commercial Secretary of the Indonesian Embassy Otto R Gani. He was talking to a delegation of IWCCI led by its Founder President Samina Fazil. President IWCCI Farida Rashid, other women entrepreneurs and officials of the Embassy were also present on the occasion. Otto R Gani said that implementation of Pakistan-Indonesia PTA will begin new
Friday, 4 January, 2013
era of cooperation will benefit both countries and serve as a foundation for enhanced economic and trade cooperation. Pakistani businesses would increase exports to Southeast Asia’s largest economy under the PTA, including textile exports, he added. After the implementation of PTA, we will take further steps to broader economic integration by initiating negotiations on a Free Trade Agreement (FTA), he said. He assured the delegation of IWCCI that Indonesia Embassy as well as business community will participate in Islamabad Expo 2013 scheduled in March which will offer opportunity to develop linkages among the businesspeople of two countries. Speaking on the occasion, Samina Fazil and Farida Rashid said that an operational PTA will provide level playing field to the major palm oil exporters while it can help reduce prices of edible
oil in Pakistan. Before 2007 Indonesian palm oil share in Pakistani market was 55 per cent which can rebound now, they said. Similarly, Pakistan’s export to Indonesia including value added textiles, carpets, fabrics, leather and export goods, chemicals, surgical and fruits will get a boost. Lauding the efforts of the government, the IWCCI leaders demanded initiatives including single country expos, exchange of delegations and cultural events to bring the business communities of two countries closer. He extended invitation to Consul General to invite Indonesian Exhibitors in My-Karachi Exhibition 2013 and also organise a cultural event on that occasion. Pakistan and Indonesia have many similarities and huge potential in various fields to improve bilateral trade which is far below the real potentials, said Samina Fazil and Farida Rashid.
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Govt has energy solutions in the pipeline ISLAMABAD
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APP
ESPITE various challenges, the Ministry of Petroleum and Natural Resources is working on several fronts to meet the country’s growing energy requirements. As part of such efforts, the government recently announced a new exploration bid round offering 60 exploration blocks along with Road Shows in Houston and London in early December to showcase the Petroleum Policy 2012 and lure the multinational companies to participate in this bid round, an official of the ministry of petroleum and natural resource said Thursday. He said policy was as one of the best in the world since it offers level playing field for E & P companies, both local and international ones. He said the policy offers price up to a maximum of US $ 6.5 per MMBTU for onshore and up to a maximum of US $ 9 per MMBTU for offshore oil and gas discoveries. He also informed the government for the first time in its history has formulated policies on Tight Gas and Low BTU Gas. As regards the prospects of oil
and gas exploration in the country, he pointed out that Pakistan is endowed with vast sedimentary area of over 800,000 square kilo-meters of which over 70 percent is yet to be explored. The success ratio of oil and gas discoveries is one of the best in the world as is evident from the success ratio of 1 : 3.22 discovery rate. Similarly, the Economic Coordination Committee (ECC) of the Cabinet has approved the LPG (Production and Distribution) Policy Guidelines, 2012 which would help end cartelization in LPG market and promoting its utilization in the automotive sector. In addition, the Sui Southern
Commemorative stamp released for FFC’s pioneering Wind Power Project ISLAMABAD
Gas Company (SSGC) and United Energy of USA recently signed a Memorandum of Understanding (MoU) pertaining to supply of Liquified Natural Gas(LNG) in Houston. He said according to the MOU signed between SSGC and United LNG of USA, the later will supply 4 Million metric tons of Liquefied Natural Gas (LNG) per year to SSGC, supplementing the government’s efforts to ensure energy security of the country. It is expected that the landed cost of LNG with an inbuilt cap, including transportation and re-gasification cost, he added, the price of gas will be less than the price of
SBP exercises its grey cells over export boost ISLAMABAD APP
NNI
Fauji Fertilizer Company Limited (FFC) is the largest urea manufacturer in Pakistan. To meet its diversification and environment protection policy, FFC is also pioneering Wind Power Plants in Pakistan. Last month a 50MW wind energy farm (FFC Energy Ltd.) has recently launched commercial operations. On this occasion a ceremony was held in Islamabad, where Pakistan Post released a commemorative postage stamp of Rs.15 denomination, to celebrate the multiple benefits of this Landmark venture. Along with financial progress, FFC Corporate Social Responsibility programs contribute generously in the areas of education, health, disaster relief and environmental protection. The completion of the first wind power project in Pakistan is a significant milestone achieved, as Pakistan stands amongst the progressive nations utilizing this clean and renewable source of energy for electric power generation, with an aim to overcome the energy crisis in the country. The President of Pakistan Mr. Asif Ali Zardari inaugurated the project on 24th of December, 2012. The Managing Director of FFC Lt General R Khalid Naeem Lodhi said;”We are proud and thankful for this acknowledgement of our efforts by the Pakistan Post. The 50 MW wind power project has been developed with the facilitation of Alternative Energy Development Board (AEDB) at Jhimpir, Thatta in Sindh.” According to AEDB, four other projects of 50MW or more are under construction and dozens are being planned. It plans to help produce over 1500 MW of wind power in the next two years. Thatta corridor presents a good wind resource and theoretically over 48,000MW can be generated there. Pakistan has planned o induct clean green renewable and alternative energy in its energy mix, which is currently heavily dependent on polluting fuel oil, which costs over $12 billion in imports. FFC is operating three world scale urea plants with an aggregate capacity of over 2 million metric tons per annum and is rated amongst the top 25 Companies at the Karachi Stock Exchange. In 2011, it made a massive tax contribution of Rs. 28,081 million.
Iran-Pakistan Gas Pipeline Project and Turkmenistan - Afghanistan Pakistan – India (TAPI) Gas Pipeline Project. However, the MoU of supply of LNG from USA will be subject to approval of both Governments - USA and Pakistan. Recently as a promising sign, the official said the Oil and Gas Development Company Limited (OGDCL) has made a discovery of 20 mmcfd gas at well head flowing pressure of 3340 PSI in Sindh Province, which would go a long way in easing the gas crisis. The official said the government was giving top priority to domestic consumers and during the present government 1.6 million consumers were given gas connections. Despite the current challenges, the official said the government was committed to providing gas to consumers, adding 879 kilometers of transmission lines and 38,828 km of distribution and service lines were added to the gas network, the source added. Similarly, the official said the government was also working on bringing in gas through the IranPakistan (IP) and TurkmenistanAfghanistan-Pakistan-India (TAPI) Gas pipeline projects to meet growing energy demand in the country.
The State Bank of Pakistan (SBP) has decided to introduce the Export Finance Facility for Locally Manufactured Machinery (EFF-LMM) with a view to promoting export of the sector. This new financing Facility will be effective from January Thursday (Jan 3) and remain valid till further instructions, a statement of the Central bank said. The exporters can avail long term financing facilities through banks for export of eligible Plant & Machinery and Engineering Goods under the Facility. Financing facilities shall be available both at pre-shipment and post-shipment stages for a maximum period of five years. Highlighting the salient features of the new financing Facility are as under, the SBP said that the Financing for 5 years (including 1 year grace period) will be available for export of Plant & Machinery of the value of US$10 million or more. Further, Specified Plant & Machinery of the value less than US$10 million will be eligible for 3 years (including six months grace period) financing. Other machinery items will be eligible for financing up-to 01 year. The financing shall be available through banks, which are approved as Participating Financial Institutions (PFIs) under the Long Term Financing Facility (LTFF). Requests of new banks shall be processed as per SBP’s criteria and financing shall be available against Letter of Credit (LC). However, financing will also be available against export contract for tenor upto one year. The SBP added that refinancing shall be available to the extent of total value of Letter of Credit/Contract less advance payment, or 80% of the value of Letter of Credit/Contract, whichever is lower. The Finance to the exporters will be available at the rates applicable under the Long Term Financing Facility (LTFF) viz. 10.30% p.a. and 10.90% p.a. for 3 & 5 years respectively. However, as compared to LTFF, banks’ spread under this Facility is being increased by 0.5% for 3 years financing to encourage the banks to extend financing to the non-traditional exporters i.e. Engineering Goods. The repayment of principal amount of loan
Business 02 Major Gainers COMPANY
OPEN
UniLever Pak
10069.38 10200.00 10190.00 10199.33 129.95
300
Shezan Inter.
382.00
401.10
401.10
401.10
19.10
100
Mithchells Fruit
347.72
365.10
358.00
364.99
17.27
2,300
Fazal Textile
245.17
257.42
257.42
257.42
12.25
100
Pak.Int.Cont. SD
190.76
200.29
187.00
200.29
9.53
15,300
4180.00 628.00 160.00 345.00 270.00
4180.00 611.70 152.00 345.00 270.00
4180.00 625.00 152.00 345.00 270.00
-220.00 -12.43 -8.00 -6.50 -6.37
20 1,700 3,200 100 100
15.77 13.75 14.50 7.75 35.07
14.60 12.85 13.73 7.10 32.85
15.76 13.38 14.36 7.52 34.92
0.99 0.28 0.31 0.25 1.52
17,320,000 10,487,500 7,192,500 3,990,000 3,666,500
HIGH
LOW
CLOSE
CHANGE
TURNOVER
Major Losers Unilever Food Siemens Pakistan XD Pak Services Sanofi-Aventis Pak Exide (PAK)
4400.00 637.43 160.00 351.50 276.37
Volume Leaders Jah.Sidd. Co. Byco Petroleum Maple Leaf Cement Azgard Nine Nishat (Chunian)
14.77 13.10 14.05 7.27 33.40
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.1365 157.0017 1.1281 128.1327
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
97.70 126.90 156.58 1.1113 97.91 12.33 26.45 25.95 101.49
98.40 128.97 159.08 1.1283 100.12 12.64 26.83 26.28 104.60
CORPORATE CORNER
SBP allows Advans Pakistan Microfinance Bank to commence business KARACHI NNI
The State Bank of Pakistan (SBP) has allowed commencement of business to Advans Pakistan Microfinance Bank Limited from tomorrow (January 4, 2013). The Advans Pakistan Microfinance Bank Limited has been licensed to operate in the Province of Sindh. Initially, the bank is starting its operations with one branch at Karachi. With the commencement of business by Advans Pakistan Microfinance, the number of Microfinance Bank operating in the country will rise to ten which include Khushhali Bank Ltd., The First Microfinance Bank Ltd., Tameer Microfinance Bank Ltd., Pak Oman Microfinance Bank Ltd., NRSP Microfinance Bank Limited, KASHF Microfinance Bank Ltd., APNA Microfinance Bank Ltd., Waseela Microfinance Bank Limited and Rozgar Microfinance Bank Ltd. The commencement of business of Advans Pakistan Microfinance Bank Limited will result in a significant increase in the market share of regulated microfinance banks within the overall microfinance sector. This will also lead to the increased provision of inclusive financial services in the rural and remote areas of the country. shall be made in equal half yearly or quarterly installments after grace period, if any. Mark up shall be paid on quarterly basis, SBP added. The SBP further said that this new financing Facility will supersede the instructions concerning Part-B -Export Sales of LMM Scheme as contained in ICD Circular No. 1 dated April 27, 1987 read with subsequent amendments made from time to time, says IH&SMEFD Circular No. 4 of January 03, 2013.
KARACHI: Service Sales Corporation (SSC), Pakistan’s leading footwear retailer launched a new SALE campaign for the brand Servis.
2013 Haier Brand Seminar at PC
LAHORE: The 2013 Haier Brand Seminar was held today at PC Hotel Lahore. The trend of innovation continued as Haier unveiled its latest product range for the coming year. “2012 was a remarkable gain in terms of consumer confidence and brand fame in Pakistan. We have grown by 40% as we keep winning more and more households.” said Shah Faisal, Director, Haier Pakistan. New Products Launch As always, Haier plans to cut the market clutter by offering products that understand the Pakistan audience with superior technology and ease of use. Newer styles, colours and capacities have been put forward for refrigerators and freezers. Washing machines will have new models of stylish, durable and convenient machines. The 2013 air conditioning models cater to the needs of energy efficiency without compromising on product looks and performance. Multiple size and featured LEDs were also displayed alongside newer kitchen & domestic appliances like water dispensers and meat mincers. 2013 Growth and Expansion Plans Haier’s focus is not just market penetration and competition with imported products but also the expansion of other business operations in Pakistan.
ISLAMABAD: Masood Siddiqui MD/CEO OGDCL along with executive directors, field managers, operational manager and regional coordinators after Field Managers Coordination Meeting at the OGDCL Headquarter.
Friday, 4 January, 2013