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SAARC nations meet up to discuss food, agriculture Page 02
profit.com.pk
Wednesday, 04 April, 2012
CCP’s Easter gift to Siemens g
Grants leniency to break Rs 36 billion transformers cartel ISLAMABAD
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AMER SIAL
n a major decision, the anti cartel agency, the Competition Commission of Pakistan (CCP) has announced granting leniency to German electric giant Siemens to break the local cartels of Rs 36 billion in the annual switchgear and distribution transformer market mainly procured by the public sector. Addressing a news conference on Tuesday Chairperson of CCP Rahat Kaunain Hassan termed it a landmark decision that will help break the cartelization in procurement quota and price fixing operated by the members of Pakistan Electrical Power Equipments Manufacturers Association (PEMA). German electric giant becomes the first firm to file for leniency with the commission to disclose all evidence to break the cartel. She said that the extra-ordinance evidence against PEMA cartelization provided by Siemens, which submitted in total 233 documents, after the show cause notice, will help break the cartel, as it contains all the evidence of cartelization by PEMA in one of the most important areas of the public sector procurement. Siemens claimed leniency under the leniency regulations, which empowers CCP to grant total immunity from financial penalties and CCP may grant reduction in the amount of penalty up to 100 to the German firm. Giving reasons for granting leniency to Siemens, she said cartels are termed as a major drain on the world’s economy and leniency program seems to be the single most important tool to be used by the competition agencies to detect and dismantle cartels. It is a concession granted to a cartel member who admits the contravention and also provides critical evidence of the alleged or otherwise cartel conduct of the accomplices and commits to abandon such behavior. Siemens holds 29.3 percent share in the sector, followed by Pakistani firm PEL that has 28.2 percent share while the remaining all the manufacturers have 42 percent share. During the last fiscal year the procurement of switchgear and power transformers amounted Rs 36 billion, out of which Siemens had a share of Rs 11 billion. Chairperson CCP said just after the issuance of show cause notice to PEMA, has resulted in a decline of 12 to 18 percent in the prices of distribution transformers as assessment made by
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commission shows a single power distribution company (DISCO) made a saving of Rs 35 billion. The prices of power transformers declined by Rs 10 billion while that of 3 phase transformers declined by Rs 1.5 billion. On the average a DISCO procures 10,000 transformers of different types during a fiscal year. Invoking of leniency provision by Siemens is to be viewed as a steppingstone and endorsement of Commission’s hard core labour for the daunting tasks undertaken and accomplished against powerful lobbies and vested interests - to deter, rectify and eliminate the anticompetitive practices in the country, she said. However, she regretted that the other regulatory authorities were not paying their 3 percent share in their annual income to CCP which was hampering the work of the commission which was surviving on the partly grant from the government. The Securities and Exchange Commission of Pakistan has to pay Rs 209 million, Pakistan Telecommunication Authority Rs 738 million, Oil and Gas Regulatory Authority Rs 46 million and Pakistan Electronic Media Regulatory Authority Rs 13 million to CCP. Summary of CCP’S order: Chairman CCP said that cartels are termed as a major drain on the world’s economy and leniency program seems to be the single most important tool to be used by the competition agencies to detect and dismantle cartels. It is a concession granted to a cartel member who admits the contravention and also provides critical evidence of the alleged or otherwise cartel conduct of the accomplices and commits to abandon such behavior. CCP is one of 110 competition agencies all over the world which have leniency program in place. CCP announces its decision in its first leniency application filed by Siemens (Pakistan) Engineering Co. Limited (Siemens) to seek leniency in respect of Show Cause notice no.27 dated September, 2011 issued for, prima facie, bid rigging/collusive activities in the tenders called by electric power distribution companies (DISCOs) to procure switchgear and transformers from the members of Pakistan Electrical Power Equipments Manufacturers Association (PEMA). The Chairperson emphasized that one must recognize the importance of leniency program as cartel is the virus and leniency is the anti-virus to detect and prevent the harm. This is a landmark and historical decision which is most likely to be pivotal in shaping the landscape as to how
Face off
HE Hub Power Company (Hubco) whereas is engaged in a legal battle with the tax authorities g its shareholders at the country’s stock markets would get delayed their dividends announced by the company for the first half of FY12. The power giant has been g disputing with the Federal Board of Revenue (FBR) on the company not deducting withholding tax at the time of issuance of share to sponsors against project development cost incurred by them. This represents an exposure of against the tax collector in the Isapproximately Rs 2 billion, an lamabad High Court which, howearning per share of Rs 1.7, on the ever, has dismissed its appeal. The company now is said to company’s profit. The Hubcom first petitioned have filed its appeal before the
Shareholders to suffer as Hubco faces off against FBR in court Dispute over withholding tax at the time of share issuance
cartel players may react and will serve as an incentive to insiders to come forward thus strengthening CCP to break the cartel which is beneficial for the economy. CCP’S enquiry: Earlier, CCP had initiated a formal enquiry on information received from an informant against the, prima facie, collusive bidding by PEMA and its members in procurement tenders of different DISCOs. CCP also conducted search and inspection of the premises in use of PEMA, FICO Hi-tech (Private) Limited (FICO) and Pak Elektron Limited (PEL) and collected valuable evidence. Based on the evidence available in the form of impounded documents, the Enquiry Committee completed its Enquiry Report which revealed a structured framework of collusive bidding in the public procurement of switchgear, energy meters, and transformers. In terms of the Enquiry Report electric power manufacturers have formed fora/groups under the umbrella of the PEMA, according to the product in question to discuss and decide upon the prices and quantities to be quoted in response to tenders issued by DISCOs. CCP in light of the findings of the Enquiry Report initiated the proceedings under Section 30 of the Act and issued Show Cause notices to 25 undertakings, prima facie, found involved in collusive activities. Two hearings were also conducted in the matter. Thereafter, the Applicant filed the Leniency Application admitting unconditionally the infringement of the offence as alleged against it in the show Cause notice and also gave the undertaking and commitment that it has abandoned its participation in the prohibited activity. LenienCy granted by CCP to SiemenS: Siemens claimed leniency under Regulation 3 or 4(1) of the Leniency Regulations. Regulation 3 empowers CCP to grant total immunity from financial penalties whereas under Regulation 4(1) CCP may grant reduction in the amount of penalty up to 100%. Regulation 3 operates as an effective tool to investigate by offering incentives to uncover the conspiracy and come forward to admit and implicate co-conspirators and collect evidence more quickly and at a lower cost. Regulation 4 operates as an encouragement for parties to break ranks with the cartel members even after the relation is found out or established. Corroborative evidence provided under Regulation 4 substantiates and strengthens the cartel proceedings initiated by CCP on leading to an efficacious resolution of case. doCumentS/ProofS Submitted by SiemenS: Siemens submitted 233 documents along with its Leniency Application which provide
Supreme Court of Pakistan along with the stay application in order to restrain the Board from taking any coercive action until the matter is finally adjudicated by the apex court. “Until such time the company obtains an interim order from the supreme court, the company would be constrained to delay the payment of dividend to the shareholders,” said nauman Khan, an analyst at Topline Research. Hubco has declared an interim cash dividend of Rs 3 per share along with its 1HFY12 result with book closure of March 09 to March 16. “The Hubco providing a dollar based IRR of 17.8 per cent, but delay in the dividend payment could result in the short-term supply pressure on the stock,” said the analyst.
information in relation to two products i.e. switchgear and transformer to show collusive activities among manufacturers to win a particular tender and strategize accordingly. deCiSion of CCP’S benCh: The Bench has held that though the contravention and nature of the evidence was previously known to CCP but the evidence provided by Siemens, no doubt, represents significant added value and substantiates alleged collusive activities of transformer manufacturers in terms of share allocation as well as price fixing and quota allocation with respect to switchgear forum. In this respect due consideration has been to the fact that it is the case of first instance for leniency. Siemens has been granted 100% reduction in penalty with respect to contravention alleged in the Show Cause notice no. 27 in the relevant markets of switchgear and transformer, in terms of Regulation 4(1) of the Leniency Regulations. Breach of any commitment or violation of the condition laid down in the law would entitle CCP to revoke such grant of reduction in penalty. The Bench also held that since price fixing has not been alleged in the Show Cause notice issued to Siemens and other respondents in switchgear market. Therefore, an independent contravention of Section 4 of the Act has been brought to the CCP’s notice which entitles Siemens for immunity from future proceedings that would be initiated in respect this new prohibited activity. The Bench in its Order has also discussed the economic impact of the collusion in the relevant markets involved. In Pakistan, there are 12 local manufacturers of distribution transformers and the only demand for transformers comes from DISCOs which is around 90%. Total orders issued by DISCOs during the period of 2008-2011 were for the value of Rs.36 billion. Further, as stated by Siemens, it holds 29.3%, PEL holds 28.2% market share while the rest of manufacturers occupy 42% of total market. On the other hand there are 10 local manufacturers of medium voltage switchgears. It is estimated that overall market for Air-insulated Switchgears in Pakistan for the 2008-2011 was Rs. 9.2 billion, out of this volume 60-65% approximately comprises of DISCOs. It has been observed that the exact calculation/evaluation of the economic impact is difficult because the market was never allowed to work and function as a ‘free market’. By now it is well established that cartel invariably impacts on price, quality and innovation. In fact, “it is akin to a termite, which is eating up our economy. They often don’t get de-
tected until it is too late- by which time they would have done significant damage to the structure. It may take a long time before the structure collapses, or is so weakened; leaving little or no resilience to recuperate.” Collusion in power equipment sector has not only killed free and fair competition in the market amongst the players, but curtailed their respective efficiencies. “Conduct of business with an over pronounced sense of camaraderie and ensuring quotas to smaller manufacturers or ensuring quotas without considering efficiencies or any amalgam of such considerations erodes the spirit of the free market.” The Bench also observed that “we do not wish to undermine the relevance of the point that a procuring agency cannot remain dependant on a single supplier, but the point that we wish to emphasize is that all involved in the procurement need to remain cognizant of the competition laws in vogue and thus must put in place a more transparent mechanism, which does not promote or in any other way encourage anti-competitive practices.” benefitS of LenienCy: The Bench in its Order has emphasized on major benefits that this Leniency Order would entail including: Value of enhanced deterrence for other cartel participants that would result from grant of leniency which is equally important to keep businesses compliant with law. Role of CCP to enhance economic efficiency and to protect consumers from anti-competitive behaviour’. As an arm of the Government, public good is perhaps the ultimate goal for which all regulators are striving. Protection to the consumers from such anticompetitive practices in real terms perhaps can only be achieved when businesses, rectify their behaviour. Leniency, therefore, emerges as an effective tool; while encouraging compliance; it works towards building acceptability and helps in recognition and implementation of competition principles; not only does leniency strengthen the adjudicatory authorities in terms of evidentiary value; it is also time and cost effective. Considering the time spent and involved in the detection prosecution and penalization of cartels and the costs incurred in pursuing the same - leniency as a tool indeed is valuable in curtailment of time and cost thus enhancing effectiveness of enforcement. Furthermore, in our view it also serves the public interest by not only unveiling but establishing the existence of a cartel, and also, pre-empting any possible abuse of process through technical objections to thwart the interest of justice.
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Symphony of destruction, indeed!
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HERE’S something self-contradictory about the government borrowing (very heavily) just to reroute the monies to capital markets – their insolvency would cause a run on much of the banking sector. Such ‘convening’ roles do not require borrowing in excess of a trillion per quarter for the simple reason that stimulative private sector expansion does a much better job of keeping credit markets solvent. So the contrary argument must (and does) have more weight. The government borrows just to function, a nonproductive investment if there was one. And, at the risk of repetition, this is just why the announcement of the government again intending to borrow more than a trillion to fund the outgoing fiscal’s last quarter exposes an inherent inability to grow out of stagflation. If the finance ministry finds inflation numbers rising uncomfortably just around election time, and growth too limp to provide meaningful cushion to employment, it should trace
the trajectory to this point again, when the last chance of stimulating growth was deliberately wasted. The other irritating, unbelievable bottleneck is banking sector credit. The crash of ’08 exposed risk management inefficiency of the sector across the world. Yet as counterparts struggle with appropriate risk control, ours has been a unique response. And that is not indulging in risk at all. Hence the sector’s over eagerness to entertain the government’s bloated presence in the money market. Risk free loans. not only does this strategy, or rather arrangement, crowd out private sector investment, it also undermines a basic market precept – no risk appetite, no upswing. now, since the upcoming budget will entail campaigning compulsions, the government’s need to borrow will only increase. Expect GDP growth to remain low, unemployment high, and inflation rising at least until state bank printing presses run overtime. A symphony of destruction, indeed!
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SAARC nations meet up to discuss food, agriculture third meeting of Sectoral technical committee on Food and Agricultural Product, held under SAARc g Regional standards organisation becomes a reality g
KARACHI
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STAFF REPORT
AARC countries national standards Bodies experts on Food and Agriculture met on April 02 – 03, 2012 in 3rd Technical Sectoral Technical Committee Meeting on Food and Agricultural Product to harmonize standards to achieve free trade in food commodities in South Asia by introducing a harmonized approach to standards. International harmonization of standards, regulatory requirements, and procedures would facilitate international trade and lead to improved safety and quality of foods traded around the world. Accordingly, many organizations are working to harmonize specifications and regulations concerning product identity and quality as well as safety. Mr. Pir Bukhsh Jamali, Director General, Pakistan Standards and Quality Control Authority (PSQCA) in his opening address emphasized that PSQCA is keen to share experiences and to participate in the SARSO standardization activities for improving our institution as much as we can. In this respect, we highly give importance to standardization, conformity assessment, accreditation and metrology that take place under South Asian Regional Standards Organization. He informed that in 3rd Technical Sectoral Technical Committee Meeting on Food and Agriculture to harmonize standards to achieve free trade in food commodities in South Asia by introducing
a harmonized approach to standards. The changing face of international trade has led to the requirement by manufacturers and processors to have single, globally acceptable technical standards and conformance tests. He said that development of South Asian Regional Standards Organization became a reality on 25th August, 2011 after hectic efforts of more than 8 years by the technical experts of national Standards Bodies of SAARC countries. The Agreement on the Establishment of the South Asian Regional Standards Organization was signed by the Heads of State in the Fifteenth SAARC Summit (Colombo, 2-3 August 2008) and Member States ratified the Agreement on the Establishment of South Asian Regional Standards Organisation (SARSO) and entry in to force on 25th August, 2011. SARSO is a regional organization which aims to develop the technical and cultural cooperation amongst the member states. The Governing Meeting approved the recommendation of the Second Meeting of Sectoral Technical Committee on Food and Agricultural Products (Dhaka, 12-13 December 2011) that all standards finalised by SARSO may have a distinct identity and may be known as SAARC Regional Standards (SARS) with a specific number like SARS 0001. The first five numbers may be reserved for important symbols of SAARC and SARSO such as SAARC Flag, SAARC Logo, SARSO Mark etc. Health, safety, and environmental concerns differ between countries and hence national governments must accommodate them
when committing to global standards. The unharmonized national and regional standards increase the cost of doing business. The changing global economy demands that both government and business pay more attention to international standards-related issues and activities. Foods and food ingredients are increasingly exported and imported worldwide and within SAARC countries, and differing quality specifications and regulatory systems around the world make commerce difficult. International harmonization of standards, regulatory requirements, and procedures would facilitate international trade and lead to improved safety and quality of foods traded around the world. Accordingly, many organizations are working to harmonize specifications and regulations concerning product identity and quality as well as safety. The 3rd Sectoral Technical Committee Meeting is organized Pakistan Standards and Quality Control Authority, Ministry of Science and Technology and SAARC Secretariat. In this meeting participants from SAARC member countries i.e. Bangladesh, India, nepal, Pakistan, Sri Lanka and personnel from SAARC Secretariat are participated. As per the agenda, the 3rd meeting discusses and finalizes the harmonization of standards i.e., Biscuits, Refined sugar, Vegetable Ghee, Black Tea, Instant noodles, and Skimmed Milk. The meeting also discusses on national Standards/CODEX Standards for hygienic conditions and consideration of new proposal(s) for harmonization of standards in SAARC Region.
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EPZA demands new land for export processing zone in Karachi Over 20 new companies to join processing zone EPZA controls power theft in the zone: Tariq Hasan KARACHI
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GHULAM ABBAS
HE Export Processing Zones Authority (EPZA) is asking the Sindh Government to provide land for new export processing zone in Karachi. However the meeting scheduled with chief minister sindh Syed Qaim Ali Shah to discuss the project has been postponed for the 7th times. This was expressed by Tariq Hassan, Chairman, EPZA while talking to profit here on Wednesday. The proposed zone was to be made at around 300 sqy land in baldia and keamari town. The project was initiated by the authority following the proposal of suggestion of President Zardari. He said due to the bureaucratic hurdles and lack of interest on the part of the provincial government the important project was facing delays. Talking about the new initiatives he taken after holding the charge at epza, he said that over 20 new companies have entered in the zone while building their own factories and offices. Further companies were also showing interst to be the member of the zone. All required facilities would be provided to the new entrants. He informed that the authority while taking serious notice of power theft in the zone, which was unresolved for the last 20 years,
has strictly started monitoring the electricity meters. Almost 28 meters were tempered while many others were faulty. As the authority pays to KESC in bulk, it was facing huge losses for many years. After the fresh move, he claimed, the authority would save over Rs 10 million monthly. Besides, to reduce the huge expenditure on utility bills, EPZA has also introduced water filtration plant to ensure enough water to the the greenery in the zone. The management was also trying to switch the streetlights on solar power. The authority, he claimed, has also ensured foolproof security to the inhabitants (35,000 employees). However, the grave security situation outside the zone was creating hurdles to the thousands of labours working in the zone. In reply to a query, Hassan said, for the first time, all commercial attache of the country abroad have been consulted to invite investment in the country’s zones while articles related to the opportunities of investment were being published in leading foreign newspapers. According to him the authority offers state-of-the-art facilities to investors as well as provides one window facilities to the investors including all utilities like infrastructure and security. After the visits of Chinese, Japanese, Malaysian and Canadian Senior Trade Commissioners and trade delegation,EPZA had allotted dozen of new industries that would bring over $15.36 billion investment in the country. EPZA is one of the best export zone in the world as it charges only 1.5 per cent tax while import is totally free but unfortunately very few people know about EPZA in the world due to negligence commercial consular. Investors from Dubai , he claimed, have started shifting their business to Export Processing Zones in Pakistan due to higher cost of doing business in the foreign country’s free zones. It is worth mentioning that the Export Processing Zones Authority (EPZA) was established in Pakistan through an Ordinance of 1980 with the mandate to plan, develop and operate Export Processing Zones in Pakistan. EPZA is an organisation under the Ministry of Industries run by a Board of Directors.
Petroleum price protest queue grows
Karachi Chamber of Concerns and Insecurities
PRGmeA demands withdrawal of PoL price hike
Deteriorating law and order situation, petroleum price hike and power outages distress businessmen
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HE central and zonal chairmen of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Shehzad Salim and Atiq Kochra have condemned the massive hike in POL prices and have demanded its immediate withdrawal. The PRGMEA leaders said the crisis ridden industry and the common people had been overburdened by unabated and unjustified increase in POL prices as well all energy sources since the present government came into power. They said the country had been left to suffer a loss of 40 percent decline in exports due to power shortages and high cost of petroleum products and this huge loss of precious exports could not be compensated by enhancing petroleum levy. They observed that due to high cost of production the local industry would be
wiped out absolutely from the region. Atiq warned that the country had already lost a number of international markets to China, Bangladesh and India due to high cost of doing business and the decision to increase power tariff would make the Pakistani goods more uncompetitive. He opined out that due to ongoing energy crisis as well as the hike in fuel prices the country had lost three percent of its GDP. Atiq further said how the industry could compete with others with such high costs of diesel and power which were the basic raw materials for the industry. “We already have the highest tariff in the region comparing with India, where the electricity tariff for industry is 10.5 cents, with Bangladesh 10.75 cents and with Sri Lanka where tariff is 10.75 cent, whereas in Pakistan, it reaches 15 cents meaning the tariff is 45 per cent higher as compared with the other countries of the region”, he added.
What a joke! LAHORE STAFF REPORT
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USInESS Community Tuesday termed the government decision to cut petrol prices by Rs. 2 per litter eyewash and a joke with the inflation-hit nation. In a joint press statement issued here, Chairman Lahore Township Industries Association Iftikhar Bashir Chaudhry, former Chairman Haroon Shafiq Chaudhry, Tahir Javed Malik, Iqbal Chughtai, Fida Hussain, Chaudhry Zaheer Bhutta, Mian nauman Kabir, Sheikh Muhammad Ayub and Babar Mahmood Chaudhry said that government should withdraw the recent massive increase in POL prices otherwise business community would be bound to agitate the government’s antibusiness policies. They said that the recent hike in the POL prices were the most cruel and unjustified decision of the government. They said that it would not only cripple the trade and industry but would also squeeze the poor masses. They said that petroleum prices were
already at the highest level and the recent increase would prove the last straw on the camel’s back. The increase would hit all the sectors of the economy and would also jack up the inflation and resultant hike in markup rates and disturb the entire economy. They said that due to high cost of doing business in Pakistan, a large number of industrial units had already shifted their operation to other countries and recent decision would force more industrialists to follow the suit. The entire industrial sector was already facing multiple internal and external challenges and any new increase in POL prices would further aggravate the economic situation. Pakistan agriculture sector is engine of growth. The increase in petroleum prices would increase the input cost of agriculture production as high-speed diesel is being used in tractors, tube-wells, harvesters, thrashers and other agriculture machinery. He said the cost of thermal generation by private sector to go up. “not only the transportation cost of goods would multiply but fares of public transport would also increase manifold,” they added.
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ARACHII Chamber of Commerce and Industry (KCCI), has expressed deep concern over highly deteriorating law and order situation in Karachi and shutdowns under the influence of political parties. President, KCCI Mian Abrar Ahmad,in satment said that commercial and industrial activities were severely hampered during the last week owing to shutdown/strikes by political parties which has brought losses of billions of rupees. He lamented that no concrete efforts for safety and security of business and industrial community were observed and the Government and law enforcing agencies were giving mere statements and lip services. He said that during last few months, the illicit activities of extortion, murder and street crimes were rampant and such examples were not witnessed in the past. Mian Abrar Ahmad also rejected the recent hike in the petroleum prices, terming the decision as “brutal attack” which
will slowdown and cripple the commercial and industrial activities. He lamented that the economy was already injured owing to energy crisis and manifold internal and external threats. He stated that the KCCI takes a very exception to the POL prices hike and power and gas load-shedding. He cautioned that the decision would severely harm the economy, affect the masses as well as the Business Community. He also warned that the nasty situation in Karachi, arising out due to deteriorating law and order situation, power and gas outages and increase in petroleum prices will inflict colossal financial losses, would widen the trade deficit leading to collapse in commitment to export orders, flight of capital, huge labour layoffs, and worsening of law and order situation and decline in the revenue of the government. He said that the hike in POL prices would hamper all sectors of the economy along with an upshot to inflation. nominal decrease in prices under consideration by the Government is not acceptable.
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BFP president welcomes exit policy for Sundar Industrial estate LAHORE STAFF REPORT
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RESIDEnT Business Forum Punjab (BFP) Ibrahim Qureshi has welcomed the Exit Policy for the allottees of Sundar Industrial Estate, hoping the move will help adjusting the economic imbalances arising out of the circumstances beyond the control of business community. The Board of Directors of Punjab Industrial Estates (PIE) has announced “Exit Policy-2012” under which allottees of the Sundar Industrial Estate who have not yet started industrialisation process can now transfer/sale their plots in a year time. As per “Exit Policy-2012” all existing plot owners/allottees are allowed to transfer their plots during the period 15 March 2012 to 14 March 2013. However, those who have preferred litigation and filed cases in the court can also avail the facility subject to withdrawal of the cases. Ibrahim said the business propositions have changed altogether since november 2007 when unprecedented energy crisis hit the country, particularly the industrial sector of Punjab. He said pursuing new investments has become unviable for business community in a situation when energy crisis has already crippled the industrial growth. He said about 40 percent of capacities are closed down in textile industry in Punjab due to severe energy crisis and 80 percent of textile industry locates in Punjab. The general industry is also passing through similar situation due to factors like energy shortages, unfavourable law and order situation, and excess capacity. Chairman BFP, nabeel Hashmi said the exit policy of PIE would help accelerate colonisation process in the Sundar Industrial Estate. Earlier, the PIE management had restricted the customers/allottees to sell or transfer their plot before completion of three months of the sale deed or production. now, the policy has been held in abeyance for a period of one year to facilitate such allottees. He also asked the PIE board to ensure completion of all infrastructure facilities in Sunder which are lying pending for the last many years.
Interest in bluechip banks instigates bull run, index up 27pts KARACHI
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STAFF REPORT
HE bulls kept dominating Karachi stocks market on Tuesday with benchmark, KSE 100-share index gained 27.76 points. The day saw the index closing up by 0.20 percent at 13691.08 points against 13,663.32 points of Monday. Stocks closed higher at KSE amid institutional & foreign interest in bluechip banks, fertilizer stocks, said Abdul Azeem, an analyst at InvestCap. On Tuesday, the trading volumes at the ready-counter were recorded higher at 318.143 million shares against 315.368 million shares of the previous day. The trading value too surged to Rs 6.745 billion compared to Rs 5.732 billion of the previous session. The intraday high and low, respectively, stood at 13,725.42 and 13,597.77 points. He added that Index traded in narrow range. Reports for rising cement prices in north, expectations for stronger earning announcements in banks. The market capitalization grew modestly and increased to Rs 3.511 trillion from Rs 3.504 trillion a day earlier. Of the
total 366 traded scrips, 129 gained, 167 lost and 70 finished as unchanged. Azeem said, “OMCs this quarter played a catalyst role in bullish sentiments at KSE as investor awaited announcements on implementation of revised CGT regime.” The free-float KSE-30 index also gained 29.99 points to close at 12,056.00 points against the previous 12,026.01 points. Jahangir Siddiqui Company was the day’s volume leader counting its traded shares at 56.777 million with the opening and closing rates standing at Rs 20.69 and Rs 21.71, followed by Azgard nine, D.G.K. Cement, national Bank XDXB and Jahangir Siddiqui Bank Limited with turnover of 26.802 million, 22.334 million, 16.360 million and 12.656 million shares respectively. On the future market, the turnover increased remarkably by over 7 million shares to 22.690 million against 14.727 million shares of Monday. The Wyeth Pakistan Limited XD and Rafhan Maize XD, up Rs 27.71 and Rs 19.83, led highest price gainers while, Colgate Palmolive and nestle Pakistan XD, down Rs 39.68 and Rs 22.18 respectively, led the losers.
Major Gainers Company
Open
High
Low
Close
Change
Turnover
Wyeth Pak Ltd.XD Tri-Pack Films XD Attock PetroleumXD Pak.Int.ContXD SD Sapphire Fiber
745.00 195.66 454.59 140.13 128.21
772.71 204.88 464.80 147.13 134.62
708.01 197.00 451.50 139.00 134.62
772.71 203.72 462.51 146.93 134.62
27.71 101 8.06 14,029 7.92 115,905 6.80 103,470 6.41 5
Major Losers Colgate Palmolive Nestle PakXD Siemens Pakistan Mithchells Fruit Service IndXD
814.68 4431.18 789.00 184.00 184.11
776.00 4499.00 800.00 175.00 184.11
775.00 4390.00 751.00 175.00 175.00
775.00 4409.00 770.00 175.00 178.78
21.72 9.31 38.47 6.70 47.80
19.66 8.21 36.16 6.02 44.80
21.71 9.28 37.76 6.53 47.05
-39.68 120 -22.18 33 -19.00 1,810 -9.00 679 -5.33 2,322
Volume Leaders Jah.Sidd. Co. Azgard Nine D.G.K.Cement JS Bank Ltd National BankXDXB
20.69 8.31 38.06 6.64 45.53
1.02 56,777,428 0.97 26,802,977 -0.30 22,334,636 -0.11 16,360,100 1.52 12,656,728
Interbank Rates US Dollar UK Pound Japanese Yen Euro
90.5473 145.1835 1.1042 120.9983
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
Sell
90.50 120.16 144.11 1.0839 90.15 11.49 24.56 24.06 93.15
91.10 121.48 145.73 1.0957 91.65 11.67 24.83 24.30 94.61
CORPORATE CORNER Ufone’s 3-day Faisalabad Family Shopping Festival 2012 ends at a high note
mitigation of internal corrosion, alternate energy sources such as Bio gas and developing innovative techniques for energy conservation. SnGPL will provide an annual grant of Rs. 3.32 million to Institute of Chemical Engineering & Technology on annual basis for the purpose. PRESS RELEASE
representatives, regulators, investors, service providers, marketers, academia and specialists from all facets of the telecom as well as IT sector. The day-long conference will include interactive sessions where experts will share their valuable experience, wisdom and vision. PRESS RELEASE
PtA chairman appreciates mobilink’s Samsung inaugurated efforts for ensuring SIm Authentication another concept shop in Jehlum
iSLamabad: Fun-filled three day fiesta to celebrate Faisalabad and the success of the city arranged by Ufone at GC ground Faisalabad ended at a high note. Families from all walks of life attended the three day family gala and urged the other multi-nationals to conduct such events for the general public frequently. The attractive event boasted of 100 different stalls which were set up by the local industry. The festival was open to the general public so that they could witness the diversity of the industries in Faisalabad which are a source of pride for the entire nation. ‘Celebrating Faisalabad City’ was a family festival which gave the local entrepreneurs an opportunity to display, sell and interact directly with customers while giving visitors an opportunity to shop, enjoy food and have fun all under one roof. PRESS RELEASE
SnGPL, PU sign moU
Lahore: The Chairman Pakistan Telecommunications Authority (PTA) - Dr. Mohammad Yaseen visited the Mobilink Call Centre in Islamabad on 2nd April, 2012, to evaluate the efforts in implementing the “Automation of Pre Sale Documentation Procedure”. He personally saw a Live demonstration of the Customer Verification Process, which works in conjunction with the records of “national Data Base and Registration Authority” (nADRA). The Chairman PTA, who was accompanied by DG (Enforcement) and Deputy Director PTA, also chaired a colorful ceremony where certificates and Souvenirs were awarded to the members of the Mobilink team, who participated in the implementation of this innovative procedure. PRESS RELEASE
mSSSt’s role as a welfare organization is commendable: Sitara Ayaz PeShaWar: Khyber Pakhtunkhwa Minister for Social-Welfare & Women Development Sitara Ayaz appreciated the pivotal role played by Malik Saad Shaheed Sports Trust (MSSST), a social welfare organization in the Province in large and specially un-develop area of the Province by providing Sports, Education and Health care facilities to youth. She was speaking during her visit to MSSST Central office at Central Police office this morning. On arrival she was briefed by Mr. Amjad Aziz Malik Secretary of the Trust about MSSST activities and achievements so for. MSSST Member Board of Tursts Syed Ali nawaz Gilani, Syed Tasadaq Hussain Shah apart from MSSST officials were also present on the occasion. PRESS RELEASE
5th Pakistan telecon 2012 on 19th in Karachi Lahore: A Memorandum of Understanding (MoU) was signed between Sui northern Gas Pipelines Limited (SnGPL) and University of the Punjab, Lahore (PU) for sponsoring a Chair on Gas Engineering at Institute of Chemical Engineering & Technology of PU. MoU was signed by Mr. Arif Hameed, MD, SnGPL and Prof. Dr. Mujahid Kamran, Vice Chancellor of PU, Lahore. According to MoU, SnGPL will sponsor a Chair on Gas Engineering for research work regarding identification and
Lahore: SHAMROCK Conferences International has announced its 5th Annual Pakistan Telecommunications Conference 2012 (TeleCOn 2012) to be held on April 19, 2012 in Karachi. The theme of the conference this year, will be, “Riding the Wave of Technology and Consolidation”. TeleCOn’2012 is duly endorsed by the Pakistan Telecommunication Authority (PTA) and Chairman, Dr. Muhammad Yasin will deliver the keynote address at the conference. The conference brings together government
Annual Sales conference of DJc (Pvt) Ltd to be held in malaysia Lahore: Annual sales conference of Ali Akbar group’s company DJC (Pvt.) Ltd is going to held in Malaysia. Mr. Saad Akbar Khan (Director Sales & Marketing), Mr. Ahsan Akbar Khan (Director Finance), Malik Farooq Ahmad (GM Sales & Marketing) and Agricultural experts will address in conference. Performance of Pakistani agriculture sector will be over viewed along with the future business planning. More than 200 participants from all over the Pakistan will participate in the conference. PRESS RELEASE
USAID’s Agribusiness Project
JehLum: Samsung Electronics, a market leader and award-winning innovator in consumer electronics, and telecommunications, is expanding its network of ‘Samsung Concept Shops’ in numerous cities across Pakistan. A special inauguration ceremony was held on 03rd April, 2012, at the new Concept Shop established on the Railway Road, Jehlum. Samsung’s Head of TV/AV division, Mr. Hae Duck Lee attended the ceremony as the Chief Guest and addressed the gathering. Mr. Lee said; “The Samsung Concept Shop is a model of the Samsung Retail Brand, from where all retailers can learn and emulate for a consistent branding approach. Samsung is committed to provide the Pakistani consumers with the best retail consumer experience.” PRESS RELEASE
Wimax Forum South Asia conference 2012 concludes successfully iSLamabad: The WiMAX Forum, the global body that certifies and promotes the compatibility and interoperability of broadband wireless products, hosted the South Asia Conference 2012 at the Marriott Hotel in Islamabad, Pakistan. The event was held under the patronage of the country’s regulatory body, Pakistan Telecommunication Authority, and co-organised by Wateen Telecom, Pakistan’s leading converged communications service provider. It brought together over 100 professionals from government organisations, telecom operators, equipment manufacturers, solution providers, media and other ICT related industries, who had travelled from across the region to attend the conference. PRESS RELEASE
Lahore: Agribusiness Support Fund (ASF) under the USAID’s Agribusiness Project has taken a lead in promoting GlobalGAP in Pakistan by constituting a Value Chain Platform (VCP) called ‘national Technical Working Group (nTWG) under sub-scope ‘Fruits & Vegetables’. The VCP will work in close cooperation with the GlobalGAP Secretariat and the GlobalGAP Committees and will support as well as facilitate the GlobalGAP implementation and continuous improvement based on the specific interest area needs. nTWG is a platform to harmonize certification and scope of activities within the region. For the GlobalGAP Secretariat the nTWG will be the direct link in the country and the first contact point. STAFF REPORT
LAHORE: Mr Alauddin Feerasta, Chairman, Soneri Bank Limited is presiding 20th AGM of Share Holders held in Lahore. PRESS RELEASE
LAHORE: Service Sales Corporation wins SKMT CSR Award 2011, Mr. Naim-ul-Abd GM Marketing receiving the award from Imran Khan. PRESS RELEASE