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LPG prices on rise again Page 02
profit.com.pk KARACHI
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GHULAM ABBAS
oon after the government allowed export of sugar, price of the highly consumed item in domestic market jumped by Rs7 per kilogram on Saturday. Sugar, which was available at the wholesale price of Rs48/kg in January 2012, has now increased to Rs54 on Saturday recording an increase of Rs6/kg, while the commodity at retail outlets is now available at Rs59/kg as compared to the previous price of Rs52/kg. As the powerful sugar millers, both in government and opposition parties have successfully forced the concerned authorities to allow export of the commodity, the price of sugar at wholesale and retail market has started going up since January this year. According to Karachi Retail Association General Secretary Fareed Qureshi, the commodity available here in wholesale market at Rs45 to Rs48/kg during January and February had jumped to Rs50/kg by March 1. However, price of the commodity was suddenly increased by Rs4/kg on March 3, pushing the wholesale rate of sugar to Rs54/kg. It is worth mentioning here that the price of the kitchen item has started increasing as a result of the government’s recent move of relaxing a ban on sugar export.
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Sugar price jumps by Rs7/kg It has allowed the private sector to export 100,000 tonnes, a move aimed at stabilising prices in the local market and resolving cash flow problems of mills. The government had banned sugar export in 2009. Sugar contracts were settled at $634.2 per tonne in the London Futures Exchange. All Pakistan Sugar Mills Association (APSMA) had welcomed the move claiming that it would partly resolve cash flow problems of the mills. Ex-factory price of sugar is Rs45-46/kg,
while in the wholesale market it is being sold for Rs48-50/kg. A few months ago, the prices were above Rs65/kg. The government, according to sources, was also likely to allow export of another 200,000 to 300,000 tonnes by the end of March, due to an expected bumper crop. Besides that the government was already purchasing tonnes of sugar from the local millers to arrest the price fall after they complained that they were suffering from huge losses. However, fur-
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Mr Market speaks
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ther export, cartelisation and price manipulation of prices would also cause more increase in the rate of the commodity in local market. To convince the government for further export and purchase of sugar, the millers had informed the Economic Coordination Committee that sugar stocks from the 2010-11 crushing season stood at 900,000 tonnes and this year’s crop was expected to give a record production of 4.5 to 4.9 million tonnes. Annual consumption was estimated at 4.2 million tonnes.
InAnCIAL markets primarily reflect investor sentiment, which makes Pakistani equities’ Feb rally all the more impressive. All the while primary political institutions have been locked in existential paralysis, local equity markets have been slowly undoing three years of stagnation, finally returning to the region’s top five list. ordinarily, you wouldn’t expect local investors bidding the market enough to attract foreign participation in times of multiple crises. But the fact that it happened underlines the resilience of the local burse, besides indicating what can be done in better circumstances and under more capable management. Breaching the 13,000 mark will attract yet more foreign investment, so the progressive cycle is already well underway. In addition to unlocking investor funds shy of market uncertainty, swelling stock prices will also provide pundits more capital
for primary businesses, expanding the overall economy. Relevant authorities must now ensure this buoyancy is not compromised. It will take a long time to re-inflate the market should pundits declare inflows unsustainable. Which s why it is important to settle the CGT issue amicably. no doubt authorities are mindful of the importance investors are associating with it, so this much should be settled. But even more important is protecting the solvency from vicious rumors that prompt speculative attacks. Again, markets being sentiment, all it can sometimes take is rumors of “overbought levels” to prompt profit taking. This is something investors too must be wary of, and play a part in preventing. It is their money at stake as much as the government’s interests. Apart from that, the market has spoken. It may get much better before it gets any worse.
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02 news LPG prices on rise again LAHORE
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STAFF REPORT
oCAL producers have raised the price of liquefied petroleum gas (LPG) by Rs5,353 to a record high of Rs118,429 per tonne in accordance with Saudi Aramco Contact Price. This was stated by the Chairman of FPCCI Standing Committee on LPG and Pattern in Chief of All Pakistan LPG distributors Association (APLPGdA) Abdul Hadi Khan here on Saturday. He said that Saudi Armco Contract Price (CP) had surged to record high due to surge in prices of butane by $140 per tonne while propane is up by $220 per tonne. Hadi pointed out that domestic price of LPG has been increased by Rs5 to Rs135145 per kilogram, 11.8 kilogram cylinder by Rs63 to Rs1,520-1,580 and 45.4 kilogram cylinder by Rs243 to Rs5,8506,075. Expressing serious concern over this rise, Hadi said that distributors will protest against this rise and said an emergency general body meeting of APLdA has been convened for next week to prepare a line of action against the government and local producers. He said that 6,000 distributors will hold protest rallies and block gas fields and refineries over this rise. He said LPG sale has declined by 40 to 50 per cent due to high prices, further shrinking the business of more than 6,000 LPG distributors in the country and their survival is in danger. He urged Petroleum Minister to reduce dependence on imported LPG and concentrate on
enhancing local production. Meanwhile, LPG Association of Pakistan (LPGAP) pointed out that state owned LPG producer, PARCo increased its base stock price from Rs85,924 to Rs102,000 per tonne, following the increase in Saudi Aramco Contract Price for March which rose to a record high of $1,200 per tonne. Following the suspension of the Petroleum Levy by the Lahore High Court, LPG prices
had reduced from Rs140 to Rs130 per kilo. However that trend will now stand reversed. “Relief provided by the court has proved short lived. Although PARCo has not matched the Saudi Aramco CP for March, its latest price notification is the highest ever price as charged by Producers” said Belal Jabbar, spokesman of LPGAP.
The LPG Association of Pakistan had requested LPG producers to refrain from increasing its price. In its letter addressed to all LPG producers it said “The suspension of PdL resulted in the immediate rationalisation of ex-LPG marketing company prices to the benefit of LPG consumers. The PdL suspension has helped stabilise the market and advantage consumers.” It further stated, “We
also welcome the comments of dr Asim Hussain in newspapers yesterday that local LPG producer prices shall be delinked from the Saudi CP which has reached an unprecedented, all time high of $1200/MT this month. Producer prices should be formulated in light of market realities.” “The resultant price increase of Rs18,746 per tonne will increase
The resultant price increase of Rs18,746 per tonne will increase the price of domestic and comercial cylinders from Rs1534 to Rs1755 and Rs5902 to Rs6753. Retail prices are expected to increase to Rs148 per kilo, making LPG once again the most expensive fuel in Pakistan
the price of domestic and comercial cylinders from Rs1534 to Rs1755 and Rs5902 to Rs6753. Retail prices are expected to increase to Rs148 per kilo, making LPG once again the most expensive fuel in Pakistan” said Belal. LPG imports for February have been zero, whereas demand has also been shrinking due to a continuous hike in LPG prices by LPG producers. The government of Pakistan accounts for 70 per cent of the country’s LPG production and is the single largest and immediate beneficiary of the increase in prices.
Seminar on trips agreement under WtO regime LAHORE STAFF REPORT
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seminar on the topic “Trips agreement under the WTo regime: implications for Pakistan” was held by Industries, Commerce and Investment department, government of Punjab with collaboration of Lahore Chamber of Commerce and Industry (LCCI) at Jinnah Auditorium, Lahore. different experts of trips agreement were invited. All stakeholders, legal experts, students and professors from the academia participated in the seminar. nabeel Javed, Additional Secretary, Industries, Commerce and Investment department said the purpose of such seminars is to build capacity of government as well as private sector regarding Intellectual Property Rights. He further informed more seminars would be organised on other topics of WTo in the near future. Advocate Majid Ali Wajid, Muhammad Ismael deputy director IPo, Rehmat Ullah Chairman Skill development Council, naeem Ullah Khan Lecturer Law College Punjab University and Farida nazar Vice President Lahore Commerce and Industry also addressed the seminar. The speakers said Punjab government is seriously putting efforts to resolve issues of Intellectual Property. They added that due to unawareness, a producer/creator cannot fully get its benefits. Therefore, we should be aware of our rights and should know how to protect them, they added. They said legislation on Intellectual Property had already been made in Pakistan in 2000 and 2005, but the main issue is its implementation. They said the subject of IPR should be included in the syllabus at graduation level and liaison among the stakeholders should be created as it is very essential. They suggested training of law experts is also essential for prompt disposal of cases relating to trips.
training course ‘Romania seeks economic ties with Pakistan’ on fish farming ISLAMABAD NNI
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MBASSAdoR of Romania in Pakistan has said there is tremendous potential and both countries should enhance economic and cultural activities. Mr Emilian Ion said cooperation between the business communities of both countries can be given a boost. He made these remarks during a meeting with Yassar Sakhi Butt, President, Islamabad Chamber of Commerce and Industry (ICCI). He also exchanged views on common in-
terests and agreed to strengthen bilateral trade relations between the two countries. Mr Ion said there were around 700 Pakistani investors, who were involved in profitable business ventures in Romania, adding that local business community could export their products especially textile, garments, leather articles, sports and surgical instruments to Romania. He informed Pakistan Romania-Business Council has provided various linkages for the exchange of business related information between the two countries. The ambassador proposed that
youth of both countries should also be connected as youth delegations could be helpful in identifying more areas of cooperation to move forward. He said construction of the monument which was dedicated to national poets of Romania and Pakistan, Mihai Eminescu and Allama Iqbal has brought a new bond of friendship and enhanced cultural relations between Romania and Pakistan. In his welcome address, Yassar Sakhi Butt President, ICCI termed the annual bilateral trade between Romania and Pakistan was very low which is around $150 million and un-
derlined the need to further improve it. He said organising of joint cultural shows and frequent exchange of business delegations are the options which could be used to exploit untapped bilateral trade and investment potential in both countries. Yassar Sakhi Butt said Pakistani products including rice, sports goods, surgical instruments, pharmaceutical, leather and textile products could be exported to Romania and proposed that Romanian businessmen should look into the opportunities to develop business relations in the identified areas.
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ISHERIES Research and Training Institute, Manawan Lahore is holding a five day training course titled “Prosperity through Fish Farming” from 5th to 9th March, 2012. The objective of this training is to provide essential modern scientific techniques about aquaculture/fish farming to the farmers as well as information about soil and water analysis. Interested persons can report at the office of the director Fisheries Research and Training Institute (Wagah Road) opposite Manawan Police Station on 5th of March, 2012 at 09:00 am. Hostel facility for participants is also available free of charge.
CORPORATE CORNER Over 1.67 million voters use SMS service to verify ecP records
dark Room gearing up to be Pakistan’s first prêt store
ISLAMABAD: over 1.67 million citizens have verified their records of ECP’s voter lists through mobile SMS while the highest number of SMS have been received from Punjab region, this was stated by Tariq Malik, deputy Chairman of national database and Registration Authority (nAdRA) in a statement issued here today. Malik said this is overwhelming response of the citizens. Election Commission of Pakistan (ECP) in collaboration with nAdRA and mobile companies launched the world’s biggest Short Message Service (SMS) for 83.2 million Pakistani voters besides displaying new electoral rolls across the country. He said total 1,679,535 votes have been verified through SMS service, and nAdRA has received 854,024 SMS from the province of Punjab; 421,247 SMS from Sindh; 244,785 from Khyber Pakhtoonkhwa; 95,735 from Baluchistan; 18,945 from FATA; and 44,799 from Islamabad. on texting at short code 8300 CnIC number (without dashes), a voters gets an SMS with the information of his electoral area name in Urdu language, where s/he is registered to vote, including his tehsil and district. Exact Block code number per Pakistan Census organisation is also displayed with serial number in the respective voters list. PRESS RELEASE
LAHORE: The dark Room is gearing up to be Pakistan’s first truly prêt store, located on Lahore’s most enviable location Ali Towers at MM Alam Road. Founded by Adnan Zoraiz and Hijab Mir, the owner and creative director of Pharaoh’s Closet respectively, TdR has two missions: to provide a space for prêt at a time when the market is cluttered with semi formals and formals, and to promote and encourage new talent to take the next step into fashion retail. The dark Room is a one-stop shop for prêt and causal chic clothes, hand bags and shoes, accessories such as jewelry and cosmetics. The idea behind TdR is to develop it into a mini departmental store with a little bit of everything for the customers ranging from clothes to all that goes with them.
World Bank Mission expresses satisfaction over watan card distribution LAHORE: director General Provincial disaster Management Authority Khalid Sherdil has said that the World Bank Mission during its visit to watan card centers in Kot Addu and Muzaffargarh has expressed its satisfaction over the process of distribution of watan cards. He disclosed that on the
instructions of Chief Minister Punjab Muhammad Shahbaz Sharif, the second phase of distribution of watan cards worth Rs40 thousand each has been started under rehabilitation programme of flood affectees under which watan cards of Rs11.80 billions have been distributed among two lakh and 95 thousand flood affectees. He said that these cards have been distributed among the flood affectees of Sargodha, Khushab, Mianwali, Bhakkar, Layyah, Jhang, Multan, Muzaffargarh, dera Ghazi Khan, Rajanpur and Rahim Yar Khan. PRESS RELEASE
inaugurated its airside facility at Jinnah Airport Karachi. Built at a cost of $5 million, it provides cutting-edge logistics handling and in-house customs clearance to dHL Express Pakistan’s growing customer base and is the only facility of its kind in the country. PRESS RELEASE
dHL celebrates 30 years of success in Pakistan
LAHORE: day 1 of 28th Annual International Congress of Pakistan Society of Gastroenterology and GI Endoscopy started with the address of dr Airf Siddique, President of PSG. He talked on treating Hepatitis B and C. dr Siqqiquie emphasised on the role of Govt, nGos and Media to prevent Hepatitis. He said that everyone should come forward and contribute a part in public awareness campaign for this disease as prevention is better than treatment. In Sarwar Jehan Zuberi Memorial Lecture, dr Roberto de Franchis a renowned gastroenterologist from Italy presented current management of variceal bleeding , where as dr Takuji Gotoda from Japan gave a talk on diagnosis and treatment of gastric carcinoma at its initial stage and dr Chizu Yokoi another renowned Gastroenterologist from Japan talked about diagnosis and treatment early colorectal Cancer. dr Ajay Kumar from India gave a lecture on standard ways of sterilisation of endoscopic accessories to prevent transmission of Hepatitis B and C. PRESS RELEASE
LAHORE: dHL Express, the world’s leading express provider, today marks its 30th anniversary in Pakistan, celebrating three successful decades of providing unparalleled services and innovative logistics solutions to exporters and importers in the country. dHL’s commitment to Pakistan over the last 30 years has seen business evolve and expand over the years. Established in 1982, dHL was the first international express company to provide exporters with fast-tracked international express service. Since then, the company has grown into an organisation of over 500 employees. Today, dHL Express Pakistan also has a fleet of over 120 vehicles and an extensive network of over 50 Service Points across 22 cities in the country. In 2009, dHL
Gastroenterology society’s annual congress kicks off
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Lcci cites failure in tapping potential Philip Morris cuts as cause behind economic downturn down on its operations LAHORE
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STAFF REPORT
AHoRE Chamber of Commerce and Industry (LCCI) President Irfan Qaiser Sheikh has urged students to do their best in bringing good name to the motherland that has been facing multiple challenges for the last many years. Addressing the MBA students at Jinnah Islamia College of Commerce, Irfan Qaiser Sheikh said the students were the asset of a nation and expressed the belief that if given proper educational environment, they could bring laurels to the country in all fields. The
Manufactures increase price of edible oil by Rs10/litre
Chairman Jinnah Group of Islamia Colleges Yousaf Mughal also spoke on the occasion. The LCCI President called upon the students, to work hard and focus on achieving education to ensure a bright future for Pakistan. The LCCI President said that the young generation had high stakes in the country’s future and could be regarded as the future leaders therefore they should work tirelessly and concentrate on their education so that they could serve the nation. The LCCI President while giving a detailed review of ongoing economic scenario said that the government failure
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reserves that could produce 25,000MW to 30,000 MW of electricity for hundred years. Talking about Pak-India trade, the LCCI President said that there was no second opinion about it that the opening of trade would pose new challenges to the local industry but definitely it would also be opening up new opportunities as well. Irfan Qaiser Sheikh said that the government should focus on development of human resource that could help bring economy back on rails. He also urged the students to give attention towards IT sector as neighbouring India is earning 35 billion dollars through IT related exports.
e-banking transactions increase by 2.6pc during second quarter ISLAMABAD
STAFF REPORT
oon after the end of strike Pakistan Vanaspati Manufacturers Association (PVMA) in a row with the oil tankers association and manufactures of edible oil and ghee increased price of their products by Rs10/kg on Saturday. The wholesalers who received the essential items of daily use on Saturday were charged Rs10/kg additional prices by the manufactures with new prices announced by the various companies. According to Fareed Qureshi, ghee available at Rs152/kg was available with the new price of Rs162/kg, while price of cooking oil was increased to Rs168/kg from the previous rate of Rs158/kg. The retailers were to charge the consumers by at least Rs5/kg higher than the mentioned wholesale rates. Besides that the supply of various kinds of edible oil and ghee to the retail and wholesale market was still reduced by 50 per cent.
to tap country’s potential is to be blamed for the economic downturn. He said that only because of electricity and gas shortage the country last year lost three per cent GdP growth. “Had a little attention been given towards the provision of gas and electricity to the industry the country’s growth would have been phenomenal.” He said that the situation was so deplorable that in one part of the country, the industry was getting uninterrupted gas while in the other part there is no gas for the industry. He said that the business community was unable to understand that why no policy has so far been evolved to tap 175 billion tons of Thar coal
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NNI
VERALL e-banking transactions in the country registered an increase of 2.6 per cent to reach 66.96 million during the second quarter (oct-dec) of fiscal year 2011-12. The value of e-banking transactions also depicted a growth of 4.85 per cent compared to the preceding quarter ended September, 2011. According to the State Bank of Pakistan (SBP), the Payment Systems infrastructure in Pakistan showed an up-ward growth trend during the 2nd Quarter as a total of 91 more ATMs were added bringing the total number of ATMs in the country to 5,409. Altogether, 1,020 more bank branches were upgraded to Real-Time online Branches (RToB) mainly due to high investments by a public sector bank. now 8,905 bank branches are offering RToB ser-vices out of the total of 9,948 bank branches across country. The number of plastic cards also increased by 4.88 per cent compared to the numbers recorded in the preceding quarter. By the end of quarter under review, there were 15.2 million plastic cards in circulation in the country. ATM transactions also showed an in-
crease of 3.22 per cent in the number of transactions and 8.33 per cent increase in value resulting in an average value of Rs9,558 per ATM transaction. “The share of ATM transactions in total e-banking transactions in terms of volume and value worked out to 59.8 per cent and 5.9 per cent, respectively,” said the Bank, adding that the number of RToB transactions also increased by 3.4 per cent whereas, the value of transactions increased by 4.8 per cent compared to the previous quarter, which represented almost 30 per cent volume and 93 per cent value of the overall e-banking transactions, respectively. The State Bank said the volume and value of transactions through PoS terminals stood at 4.2 million and Rs19.6 billion, showing 1.4 and 8.6 per cent growth, respectively as compared to the figures reported in the previous quarter. “The volume of large-value payments through RTGS increased by 2.8 per cent, whereas the value of transactions increased by 21.4 per cent. The major portion of RTGS transactions in terms of value continued to be in respect of settlements against securities followed by Interbank Funds Transfers and settlement of retail cheques through multilateral clearing contributing 61.5, 28.9 and 9.6 per cent, respectively,” it added.
at Mandra factory LAHORE
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STAFF REPORT
AnAGEMEnT of Philip Morris (Pakistan) Limited formerly Lakson Tobacco Company Limited has made the difficult yet necessary decision to reduce operations in its Mandra factory. According to a statement issued on Saturday, the decision results from the disproportionate higher cost of production at the Mandra factory, the smallest of Philip Morris’s manufacturing facilities, and difficult prevailing economic conditions, including high taxation and low consumer affordability that was negatively impacting the business. In addition, this factory mostly produced packaging of 10 cigarettes per pack, a format which the government regulation (SRo 863(I)/ 2010) had barred from
manufacturing and sales as of october 1, 2011. As such, the main activity at the factory has become obsolete. Philip Morris’s priority at this difficult time is to provide the best possible support to the affected employees. Mr Arpad Konye, Managing director, Philip Morris Pakistan said, “We are committed to ensuring that all retrenched employees are treated fairly and with dignity, and genuinely appreciate the contributions that each and every employee has made over the years”. The company has ensured that all affected workers receive their full entitlements under the law. Additionally, Philip Morris has offered ex gratia payment on the same terms as the voluntary separation scheme which remained available to workers prior to retrenchment, providing a generous package well in excess of the minimum legal requirements.
OGRA not consulted on LPG issue KARACHI
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STAFF REPORT
oWERFUL Liquefied Petroleum Gas (LPG) mafia continues stealing money from the poverty hit people, as it increases the price of gas by another Rs20 per kilogram without consulting oGRA. This was another historic jump in the price of the largely consumed gas in remote and hilly areas of the country made, without consulting oil and Gas Regulatory Authority (oGRA), claimed Irfan Khokar, Chairman LPG distributors Association. According to Irfan, LPG marketing companies have increased the prices without
a go-ahead from oGRA, causing gas to touch record highs in the national history. After the recent hike, LPG price rocketed up to Rs185 from 140/kg, despite of the fact that demand of fuel has partly decreased after the change of climate. other than that, the marketing companies raised the prices despite the fact that gas was not imported since past three months. now, gas is being sold at Rs185/kg in GilgitBaltistan, FATA, Azad Kashmir and Swat; Rs165 in Rawalpindi, Islamabad and Murree; Rs155 in Sadiqabad and Sukkur; Rs150 Faisalabad, Gujrat and Multan and Rs145 in Lahore and Gujranwala. The gas soared to Rs145/kg in Karachi.