profitepaper pakistantoday 04th may, 2012

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Panic! at the Disco

profit.com.pk

Friday, 04 May, 2012

COMMENT

PRESIDENT HAS A SWEET TOOTH

Zardari sugars the pill Natural and governmental calamities do sugar export no harm g President gives his bi-monthly ‘pro-active business involvement to boost economy’ speech g

ISLAMABAD

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resident Asif Ali Zardari thursday said the government was committed to taking the industry onboard to find a solution to their problems. talking to a delegation of Pakistan sugar Mills Association, led by its Chairman Javed A. Kayani at Aiwan-e-sadr, he said only through pro-active involvement of the business community and the

industrialists, the continuity of the policies could be ensured. the President while advising the Government to hold a meeting with PsMA said that the proposal of exporting sugar be sent to eCC for consideration. He said it was a matter of great satisfaction that despite unprecedented natural calamities, the country was in position to not only meet its requirements in sugar commodities but was also poised to export sugar. the President advised Ch. Pervaiz elahi,

senior Minister for defence Production and industry to hold meeting with the PsMA to further deliberate on the proposal and issues, being faced by the industry. the delegation included iskander M Khan, riaz Qadeer Butt and deoomal A. essarani. Ch. Pervaiz elahi, senior Minister for defence Production and industry, Finance Minister dr.

Abdul Hafeez sheikh, secretary Finance Wajid rana, secretary industries M. Aziz Bilour and Chairman tCP tahir raza naqvi were also present besides

other senior officials. the issues related to sugar industry were discussed in the meeting. Javed A. Kayani, Chairman PsMA, while briefing the President said at present the sugar production in the country was around 4.7 million tons. He said after meeting the domestic consumption of 4.2 million tons, around 400,000 tons of sugar was available for export. He said that export of sugar would enable them to make payments to the growers in the region of Khyber Pakhtunkhwa, Punjab and sindh.He also raised the issue of the sales tax on the sugar commodity.

MIND LIKE A STEEL TRAP

MoP to steel PSM against capitulation KArAChI

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STAFF REPORT

inistrY of Production (MoP) is fully working to save Pakistan steel as it is our pride and the most important mega asset of Pakistan.President Asif Ali Zardari and Prime Minister syed Yousuf raza Gilani both are satisfied with the progress of current PsM, Chief executive Officer Major General (r) Mohammad Javed, as his previous achievments are remarkable and now it is fully hoped that he will again create a history of success.Federal Minister of Production Chaudhry Anwer Ali Cheema said these words while chairing in a special meeting with PsM board of directors, here at PidC board room, yesterday.

He said, it is our first priority to run PsM successfully, Members of the board are skilled, well experienced professionals and it is their responsibility to provide guidelines and policy to the CeO for running the Mill.He said that CeO has full powers to endorse his orders for the betterment of the

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organization.He added that in the next month board meeting a chairman for the PsM board will be elected to run the board matters smoothly.

Federal state Minister for Production Khwaja Mohammad sheeraz also attended the meeting, while newly apppointed CeO, Pakistan steel Major Gen.Mohammad Javed Hi-M (retd), Parliamentary secretary for Production dr. Mehreen razzaq Bhutto, secretary Production Gul Muhammad rind, secretary Privatization Amjad Ali Khan, Additional secretary (development, expansion, Admn) seerat Asghar, former Fed secretary (Labour & Manpower)nayyar Hasnain Haider, eng. daroo Khan Achakzai, engineer Abdul Jabbar Memon, Mirza Aslam Baig, Ps Chief Finance Officer shahid Mohsin sheikh and Pakistan steel Peoples Workers Union CBA shamshad Qureshi as member board of directors were also present. Federal Minister Anwer Ali Cheema said that ministry is following and in contact with finance ministry for the release of remaining 5 billion rupees of approved bailout package from 11 Billion for running PsM matters. CeO, Pakistan

steel Major Gen.Mohammad Javed(r) honored and gave thanks to the Minister and Board of directors for their co-operation, satisfaction and confidence. He said that we will trying to run PsM on self reliance basis as our land bears a big treasure of iron ore and coal which is waiting for utilization. He said the remedy for previous wrong decisions will also be taken so that again they are not repeated. secretary Production Gul Mohammad rind said that the Ministry of Production will fully support and co operate for the betterment of PsM. Parliamentary secretary for Production dr.

Mehreen razzaq Bhutto also expressed the appointment of CeO as a shining hope for PsM in coming days.

After the meeting a 5 member delegation of Pakistan steel Peoples workers Union –CBA headed by Chairman CBA shamshad Qureshi meets the Federal Minister Anwer Ali Cheema.

3t

cheers for the trade route

He trade route to peace seems to be working out nicely, especially with Pakistan’s largest trade fair on indian soil being such a success. indeed, as many participants noted there, there is finally firm realisation, at least in business circles, that time has come to shed the burden of the past, a needless hatred rooted in a bygone era.

For some reason it’s celebrated as the China model, that lasting financial and economic linkages should precede highest level headto-head on core issues at the centre of the confrontation. Chinese or not, it seems ideally suited for Pakistan and india in the present setting. it has been for some time actually, it’s just that there were no takers. it is encouraging that news reports of needless indian conditions regarding truckload and tonnage at border crossings have ceased. surely serious concerns (including ours) reached new delhi in time to keep their powerful cement lobby from souring the initiative even before it gathered steam. Cement is Pakistan’s best bet in the crossborder trade. it is in good demand in india, which Pakistani projection has matched, and has played no small part in bidding up the sector at the local bourse. timely removal of a crucial irritant has kept a potential snowball from developing, which is a good reflection on high-level commitment this time around.

We say this because we have seen fruits of painful endeavour go waste in the past, when Gen Musharraf’s diplomacy and outreach prompted little save superficial confidence building measures from across the border. this time the focus is distinctly different. Both sides obviously realise the urgency, hence the beginning with long term, binding economic linkages. it will be important to ensure the process is free of hiccups, especially in the run up to complete drawing down of the negative list by year end. Vigilance will be necessary subsequently also, but of a different nature.

Exogenous shocks and our stock market

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ShAhAB JAfry

300-point plus bull rout while the financial capital is gripped by horror is a strange decoupling of the bourse from vital fundamental indicators. Yet such has been Kse’s stellar post-Jan rise, unimpressed by exogenous shocks that would normally derail financial markets – bomb blasts, plane crashes, PM’s contempt drama, memogate, war on terror, etc.

SignalS, Sentiment: “it’s true events like Osama bin Laden’s assassination, suicide attacks and especially a head of state’s conviction can and should really hurt markets. they signal instability, which rules out serious investment opportunities,” says rahat Ali, a dubai based investment banker who oversees Asian markets. “But it’s also true that Pakistan’s benchmark Kse has exhibited surprising resilience over the last two quarters.”

While the (market) impact of bin Laden’s assassination was mute predominantly because of low volumes that marked the market since the ’08 collapse, reaction to otherwise startling news has been somewhat contained. “the market’s absorption rate has increased significantly,” says Hammad Malik, research head at First national equities and part-editor of widely circulated investment advisory newsletter Financial Correspondent. “there is a disconnect between interpretation of event-signals over here and abroad. Here the market has priced in such occasional disturbances as routine behavior,” he adds. “Outside, they are viewed as existential threats to the country.”

PreviouS examPleS: the last bull run to run into suicide bombings and civil disturbance came in the boom years of the Musharraf-Aziz setup, when efforts to promote financial markets resulted in irrational exuberance that wrecked the bourse as well as investors. the market

impact of similar shocks was far greater at that time, when it hovered around the 16,000 mark. since the collapse almost four years ago, volumes have been thin, till the trend changed dramatically with the turn of the current calendar year. the sudden rise past the psychologically significant 14,000 barrier has surprised some observers. “it’s a very strong trend, but it’s not nearly as stellar as the euphoria leads pundits to believe,” warns Hamad of Fne. “Prices on offer are still relatively cheap, they have not risen as much as they should have considering the index. the main rally was caused by the petroleum sector, because of its heavy weightage,” he explains, adding that it is not unusual for certain sectors to magnify market increase even as prices do not rise much across the board. overbought?“i wouldn’t say the market is overbought. Cement maybe, but that too just this past rally that jacked up cement scrip prices by rs15 or so,” he says. “there’s still a lot of room though.

For example, back in ’08 when the market was good, dGK went for 130, now it’s at 40.” the price gap is too large to warrant an overbought verdict. the market buys this explanation, and apparently so does the middle class mob that crowds it, operating from remote terminals in their offices, etc. they have learned their lesson well from last time, and are careful in their entries and exits this time. “there’s no reason for me to let events beyond my control affect my thinking about the right way forward. the same is true for the collective market and it seems to understand this,” according to Asad, a high-ranking it executive at a media powerhouse, and a serious daily trader. “this is very encouraging,” he says adding, “it is crucial for the market to remain unaffected. should it nosedive every time there is a matter of serious concern, its fate would not be much brighter than the overall economy’s.” tendencieS towardS

bubble? “not really.” Hammad’s answer seems far more profound than the usual end-is-near chatter beginning to emerge with increasing intensity and frequency. the rise is fast, but it’s a selfcorrecting one. there are frequent retracements, keeping the trajectory in check. “if it rises 300 points one day, and drops 150 the next, the net rise is only 150 isn’t it?” he shrugs just as the market closes on the screen in front of him, and an imminent 150 drop or no, the rise past 300 for the day seemed to please him plenty. the near-to-medium-term direction of the Kse seems a one-way bet, and whether or not the market is on way to swelling to bubble proportions will still take time to become certain. For the moment there is little to worry about.

Cement is still bid, fertiliser’s cyclical gain time has come, banking scrips are on the rise, and (again) the market clocked 300-plus despite the Liyari crackdown. exogenous shocks and our market are a world apart.

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Friday, 04 May, 2012

news HORROR-TALE

PRETTY. ODD.

Panic! at the Disco

Lyari operation gives traders, industrialists the creeps g

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Just 4 out of 9 BoDs of DISCOs finalise their CEOs g DISCOs get an earful owing to their lack of professionalism g

ISLAMABAD

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AMER SIAL

Fter wasting more than six crucial months, the cabinet committee on restructuring (CCOr) managed to approve names of CeO for four power distribution companies (disCOs) to the Prime Minister for consideration and appointment.

CCOr was chaired by Finance Minister dr. Abdul Hafeez shaikh to discuss appointment of Chief executive Officers (CeOs) of disCOs. the committee discussed the recommendations given by Board of directors of disCO. Minister for Water and Power, secretary Finance secretary, secretary Water and Power, and other concerned officials were also present in the meeting. the committee decided to expand the HesCO board members for further strengthening of this company.

An official source said the CCOr decided on recommending names of CeO for 4 disCOs, including iesCO, PesCO, HesCO and sePCO while it was unable to agree on the names for other disCOs. He said the helplessness

of the government is obvious due to the slow progress by the technocratic CCOr and non professional boards of disCOs. He said that the process was likely to take more than a month to appoint new CeOs which was initially planned to be completed in October last year. the source said that the major reason in failure of appointing new CeOs and implementing power sector reforms was the CCOr, was included co-equal ministers who never agree on any issue and no minister has the final decision making power. time gets wasted in developing consensus through give and take even though all energy related ministers belong to the same party. secondly, he said, non professionalism of disCOs boards was further adding to the woes as many board members wanted their own handpicked man as CeO to get lucrative contacts in future. the boards were infested with non professionals by the Planning Commission which has no role in power sector reforms. the Ministry of Water and Power was opposed to the intervention of Finance Ministry and Planning

Commission in power sector. even though afflicted with same kind of mismanagement, the Petroleum Ministry has cunningly kept its subsidiaries out of the reform process. it has been already reported that international financial institutions (iFis) have already advised the government for appointing a focal person for energy sector with decision making authority. iFis have demanded handing over the company operations to professionals to improve the supply demand balance and financial health of the sector. they stress improving corporate governance in disCOs by making their boards responsible for all decisions and allowing managers to make decisions and shifting the administrative control over disCOs to provincial governments. the international community has been advising the government to stop tampering with the tariff to improve the financial health of the sector as well as for attracting further investment in the sector. timely determination of tariff and its notification will help resolve the liquidity issues.

Global Stocks, oil fall after ISM report NEW yOrK

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REUTERS

LOBAL stocks and crude oil fell on thursday after a slower-than-expected expansion in the U.s. economy’s service sector and weak retail sales damped optimism a day before a highly anticipated labor market report for April. stocks turned lower, government debt pared losses and the U.s. dollar trimmed gains against the yen after the institute for supply Management said its services sector index fell to 53.5 in April from 56.0 the month before. the report missed economists’ forecasts for a reading of 55.5, according to a reuters survey. A reading above 50 indicates expansion in the sector. But the number of Americans filing new claims for jobless aid fell more than expected last week, easing fears the U.s. labor market recovery was stalling. initial claims for state unemployment benefits dropped 27,000 to a seasonally adjusted 365,000, the Labor department said. “the April (isM) number shows we’re entering a soft period here for services. On the employment component, we saw a good jobless claims number this morning showing employment conditions overall are looking better so i wouldn’t worry too much about the isM employment index showing less growth,” said Gary thayer, chief macro strategist at Wells Fargo Advisors in st. Louis.

Wall street moved lower on the isM report after hovering near break-even after the open. Weakness in retail sales data also weighed on U.s. stock indexes.

According to thomson reuters data, 52.9 percent of retailers missed monthly same-store sales expectations for April. Costco Wholesale Corp’s (COst.O) April sales missed estimates, sending shares down 2.2 percent to

Say operation crippling output g Hopeful of peaceful culmination

$84.71. the dow Jones industrial average was down 35.26 points, or 0.27 percent, at 13,233.31. the standard & Poor’s 500 index was down 6.25 points, or 0.45 percent, at 1,396.06. the nasdaq Composite index was down 26.05 points, or 0.85 percent, at 3,033.80. in europe, the Ftseurofirst 300 index of top regional shares closed up 0.1 percent at 1,044.39 in choppy trading. MsCi’s all-country world equity index .MiWd00000PUs retreated, falling 0.4 percent to 327.02. the euro rose against the yen and rallied from two-week lows versus the U.s. dollar to trade little changed after european Central Bank chief Mario draghi gave a more upbeat assessment of the than expected, reducing expectations for further monetary easing. draghi, in comments after the eCB kept rates unchanged at 1 percent, said the euro zone’s economy was likely to recover this year, although the outlook remained vulnerable to downside risks. He added that inflation was likely to remain above 2 percent this year. the U.s. dollar index .dXY up 0.12 percent at 79.225 while the euro was down 0.06 percent at $1.3147. But gains in the euro could be short-lived ahead of elections in and Greece at the weekend. Oil slipped under $117 a barrel after OPeC said it had opened the taps more to weaken prices. Oil prices dropped after OPeC said it was unhappy with high prices and disappointing data helped paint a gloomy outlook for the world economy, reviving concerns about a drop in demand. Brent crude for June delivery fell $1.90 to $116.30 a barrel. U.s. crude fell $2.33 to $102.89 a barrel. Government debt pared losses to trade near break-even. the benchmark 10-year U.s. treasury note was up 1/32 in price to yield 1.92 percent. the 30-year U.s. treasury bond was up 3/32 in price to yield 3.11 percent.

STAFF REPORT

He traders and industrialists are strongly demanding of the government to swiftly complete the Lyari operation which, they complain, was crippling the industrial production. “Many industrial workers are living in Lyari and a number of factories have shortage of about 40 to 50 percent workers, thus resulting in heavy production loss to the country,” said Patron in-Chief of Korangi Association of trade and industries (KAt), s M Muneer. this he said in a statement jointly issued by him, KAti Chairman ehtesham Uddin, Vice Chairmen Hasham A razzak, tariq Malik and President All Karachi industrial Alliance Mian Zahid Hussain. the industrialists said the ongoing operation against criminals in Lyari be finalized swiftly so that the peaceful trade and industrial activities could be resumed in this commercial capital of the country. they said the prolonged operation was badly tarnishing the image of Pakistan abroad and had adversely affected the industrial activities which were

already remained in lowest ebb due to ongoing energy and other crisis. they said the exports were continuously declining and manufacturers were not getting orders from their buyers due to law and order situation in the city. “is it a nuclear power or Banana republic that a small and simple operation is being prolonged unnecessarily,” Muneer questioned. He demanded of the government to wind up operation in a shortest possible time as peaceful people were also living in Lyari, who had to face extreme conditions and were without water and power and food for the last several days. the traders and industrialists said over 36 persons had lost their lives and many wounded in continuous firing by the miscreants and they were using rocket launchers and hand grenades. “surprisingly, the rangers are not being called to help the police,” they wondered. in our opinion, Muneer said, the government should call rangers/military and impose curfew to clear this area from the miscreants firing on the police. He said all t.V channels were showing this firing and fighting for many hours daily and creating bad name for Pakistan abroad.

EARLY RECOVERY AND RESTORATION OF FLOOD AFFECTED COMMUNITIES

SMEDA distributes Rs2.4 million grant PEShAWAr STAFF REPORT

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MALL and Medium enterprises development Authority (sMedA) distributed a grant of rs2.4million under the UndPfunded “early recovery and restoration of Flood Affected Communities” project among flood hit small enterprises in district nowshera. the grant has extended to more than 80 small enterprises whose businesses badly affected in flash floods in the province. in this connection, a formal grant distribution ceremony held here Union Council Kabul river, district nowshera. the sMedA, national Project Mr.Manager, sultan Mehmood tiwana distributed grant cheques of rs30,000 among each flood affected small enterprises and vendors of the region. Javed iqbal Khattak, the Provincial Chief smeda, Ms. noor Zeba, provincial coordinator, UndP-program, Coordinator Business support Centre (BsC), district nowshera, Qadar Khan, UC nazim, and members village advisory Council and a large number of notable of the areas and beneficiaries of the grant were present on the

occasion. Ms. noor Zeba informed the participants the aims and objectives of the UndP program, saying the project had efficiently executed in flood hit areas of the province. sMedA, Provincial Chief, Javed iqbal Khattak while stressing upon the entrepreneurs to efficient utilization of the grant to revive their flood hit businesses and economic stability in the area. He said that sMedA aims to maximum extend facilitation for improvement of small business and enterprises, adding that they are playing pivotal role in this regard. the national Project Manager, Mr. sultan Mehmood tiwana while speaking as chief guest at the ceremony expressed the hope that the grant would helpful to revive flood affected businesses and bring economic stability in the region. He asked the grantees to use grant in a very efficient way to early recover their businesses. Mr tiwana suggested that different committees on agriculture, livestock and skilled development, should be constituted in order to get healthy proposal and recommendations for expansion of the sectors. He expressed the hope that the financial assistance will yield positive results for economic development and businesses of the region.

TRADE TALKS

Let’s join hands, KCCI advises Seoul chamber Pakistan-South Korea bilateral trade volume touches $ 1.3b KCCI suggests Karachi-Seoul Joint Chamber of Commerce & Industry g

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STAFF REPORT

ArACHi Chamber of Commerce & industry (KCCi) has suggested the seoul Chamber to form Karachiseoul Joint Chamber of Commerce & industry on the pattern of PakistanAfghanistan Joint Chamber, formed last year to enhance the bilateral trade from existing $ 1.3 billion to $3 billion in next few years. the suggestion was made by Mian Abrar, Presdient KCCi While exchanging views with the Ambassador of south Korea to Pakistan H.e.

Choong Joo Choi, here at KCCi office on thursday. the president KCCi urged both governments to expedite negotiations to sign Free trdae AAgreement . He also enlightened the Ambassador about the key role of Karachi Chamber in the socio-economic development of Pakistan and informed about the aims of KCCi to develop regional trade. He urged the Ambassador to suggest and convince the seoul Chamber to form Karachi-seoul Joint Chamber of Commerce & industry. He further requested the Ambassador to invite business delegation and exhibitors to participate in the Karachi Chamber’s My-Karachi Oasis of Harmony exhibition scheduled to be organized in July

2012. Mian Abrar Ahmad expressed that Pakistan is the most promising country for investment by Koreans; immense opportunities exists to enter into joint ventures in Pakistan in the alternate energy, agriculture and engineering sectors. While exchanging views with the Ambassador of south Korea to Pakistan H.e. Choong Joo Choi, he was of the view that owing to Pak-Korea great trade potential the recent trade of about $1.3bn may incline to $2~3bn while effectively tapping the existing true potential. He asserted upon the need of building trading blocks of Pakistan with Asian countries, Central Asian republics and sAArC countries. He focused that the regional trade will uplift the economy of Pakistan new horizons. He was of the firm opinion that Pakistan must not rely on aid and remittances. He was of the view that the aids received from UsA and Western World never spent to boost the economy and the benefit of masses. He lamented that Pakistan was never allowed economic independence and liberty by the developed countries which they allowed to other countries in the region. it is learned that Lotte the Korean giant in Pakistan was further expanding its business while companies in steel sectors were also interested in invest in Pakistan.

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Friday, 04 May, 2012

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news

berserk!

KA-CHING!

RE$ERVE$ RI$E g

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Dollar reserves inch up to $16.434 billion KArAChI STAFF REPORT

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OUntrY’s dollar reserves witnessed a slight increase of 0.07 percent or $ 12 million during the week that ended on April 27 on the back of improved reserves held by the central bank. the state Bank thursday reported to have counted the country’s dollar holdings at $ 16.434 billion against $ 16.422 billion the country possessed a wekk earlier up to April 20. during the week under review the central bank’s surged by $ 153 million or 1.2 percent to $ 12.069 billion as against $ 11.916 billion the regulator held last week. the commercial banks’ holding of the greenback remained lower and contacted to $ $ 4.365 billion, down by $ 140 million compared to $ 4.505 billion of the preceding week. the central bank spokesperson attributes such up and downs in the banks’ reserves to routine deposit and withdrawal of cash by the account holders.

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STAFF REPORT

n thursday the bulls kept dominating Karachi stocks market with the benchmark, Kse 100share index skyrocket 277.40 points.

Ahsan Mehanti, director at Arif Habib investments Limited, said that the bullish activity continued at Kse in the pre budget rally in stocks across the board with a record close on strong valuations. the day saw the index closing up by 1.96 percent at 14419.92 points against 14142.52 points of Wednesday. the trading volumes at the ready-counter were recorded higher at 293.970 million shares against 246.394 million shares of the previous day. the trading value was up to rs 8.482 billion compared to rs 6.213 billion of the previous session. the intraday high and low,

respectively, stood at 14454.50 and 14142.52 points. He added that the rise in local power tariff, higher global commodities and investors speculation ahead of revised CGt announcements in finance bill due next month amid renewed foreign interest in oil and banking stocks played a catalyst role in bullish sentiments at Kse post quarterend earnings announcements despite concerns for pending circular debt issues and rising political noise. the market capitalization grew modestly and increased to rs 3.683 trillion from rs 3.615 trillion a day earlier. Of the total 389 traded

Stocks conjure up record close, as index skyrockets 277 points Budget continues to be the proverbial red rag

scrips, 247 gained, 90 lost and 52 finished as unchanged. the free-float Kse-30 index also gained 211.79 points to close at 12,578.11 points against the previous 12,366.32 points. the Kse all-share index closed with a gained of 188.09 points to 10113.80 points as against 9,925.71 points. P.t.C.L.A was the day’s volume leader counting its traded shares at 26.417 million with the opening and closing rates standing at rs 13.52 and rs 14.42, followed by Lotte Pakistan PtA, d.G.K. Cement, Jahangir siddiqui Company and Fatima Fertilizers Company Xd with turnover of 22.764 million, 15.901 million, 13.673 million and 13.049 million shares respectively. On the future market, the turnover recovered remarkably by over 5 million shares to 16.704 million against 11.874 million shares of Wednesday. the Unilever Pakistan Limited and Unilever Food, up rs 306.67 and rs 129.14, led highest price gainers while, island textile and ismail industries, down rs 5.49 and rs 4.35 respectively, laed the losers.

Major Gainers Company

Open

High

Low

Close

Change

UniLever Pak Ltd Unilever Food Nestle Pakistan Ltd. Bata (Pak) XD Wyeth Pak Limited

6400.00 2582.94 4196.99 632.91 768.31

6720.00 2712.08 4290.00 663.00 780.00

6395.00 2712.08 4196.99 649.00 765.00

6706.67 2712.08 4227.44 649.97 778.34

306.67 382 129.14 162 30.45 90 17.06 108 10.03 57

Major Losers Island Textile 252.39 Ismail Industr 88.00 Javedan Corporation 87.55 Blessed Tex. 76.92 Pak Gum & Chemical 139.20

246.90 88.00 88.89 73.76 137.50

239.78 83.60 83.90 73.75 135.00

Karachi: Allied Bank recently launched first of its kind “Youth Branch” in Karachi. the concept of Youth Branch has been introduced to encourage fast growing young population to start banking relationship and develop saving habits from an early age. Mr. Waseem Mukhtar, director, Allied Bank inaugurated the branch alongside Mr. Zia ijaz, Group Chief, Commercial & retail Banking Group. Also present on the occasion were Mr. Abdul Aleem Qureshi, divisional Head, south and Mr. Azhar naseem, Head Marketing & Communication, Allied Bank. While Allied Bank’s strategy is focused on providing financial solutions to all segments of society through innovative and new offerings, the Youth branch has been designed with a view to promoting banking amongst the younger population through its unique ambiance, outlook and addressing the present day needs of this important segment. PRESS RELEASE

Burj Bank selects Path Solutions’ iMAL Karachi/ dubai: Burj Bank Limited (BUrJ) formally appointed Path solutions as their core banking solutions provider in a signing ceremony held recently in dubai. the agreement was signed between Mr. Ahmed Khizer Khan, President & CeO, Burj Bank and Mr. Mohammad Kateeb, Group Chairman & CeO, Path solutions. “We have signed Path solutions iMAL to facilitate the delivery of world-class banking services as we aggressively grow our customer base in the country”, said Ahmed Khizer Khan, President and CeO of Burj Bank. He further stated that “the AAOiFi-certified core banking solution would give us a competitive advantage by helping us in exponentially improving the service experience. the solution will also allow Burj Bank to reduce costs, improve efficiency and ensure best value while providing differentiated shari’ah-compliant banking products.” PRESS RELEASE

Al Meezan announces results for Kashf’s Code of Consumer Meezan Family of Funds Protection recognised Karachi: the meeting of the Boards of directors of Al Meezan investment Management Ltd., investment Advisor of Meezan islamic Fund (MiF), Al Meezan Mutual Fund (AMMF), Meezan islamic income Fund (MiiF), Meezan Cash Fund (MCF), Meezan sovereign income Fund (MsF), Meezan Balanced Fund (MBF), and Meezan Capital Protected Fund-ii (MCPF-ii) were held on Friday April 27, 2012 to approve financial results for the nine months ended March 31, 2012. Meezan islamic Fund (MiF), Pakistan’s largest open-end equity fund in private sector, reported a net income of rs. 364 million for the nine months ended March 31, 2012 which translates into earnings per unit of rs. 3.36. during nine months period the fund has provided 17% return. the net assets of the fund as at March 31, 2012 were rs. 5,274 million. Al Meezan Mutual Fund Limited (AMMF), an open-end equity fund, reported a net income of rs. 148 million for the period from August 05, 2011 to March 31, 2012. this translates into earnings per share of rs. 1.11. during nine months period the fund has provided 16% return. PRESS RELEASE

lahore: Kashf Foundation has been recognized by the “smart Campaign” for its excellent Code of Consumer Protection, along with ten other MFis globally. the smart Campaign is a global initiative to promote responsible microfinance and to safeguard the rights of consumers. For that purpose, smart Campaign had invited microfinance institutions from across the world to submit their respective codes of consumer protection and Kashf Foundation was one of the organization’s whose consumer protection principles and framework was determined to be a frontrunner for the microfinance sector. Managing director Kashf, Ms. roshaneh Zafar, showed her deep gratitude at this achievement and emphasized that microfinance is about creating responsible clients through responsible institutions. the recognition of Kashf’s code of consumer protection is a strong testament to the fact that Kashf’s ethos of building and promoting the dignity of women from low income households is being realized effectively. PRESS RELEASE

HBFCL takes strong exception to misreporting

Avari Hotels International partner with Etihad Airways programme

lahore: House Building Finance Company Limited (HBFCL) has strongly condemned the misreporting in a section of the press, alleging that the national Accountability Bureau (nAB) has initiated an inquiry against the Managing director of HBFCL. terming the news as totally false and highly malicious, HBFCL has categorically stated that there is absolutely no inquiry being conducted by nAB or ‘secret agencies’ against the Md HBFCL as reported in some papers.

HBFCL has further expressed its disappointment that some newspapers allowed such irresponsible misreporting, that is highly damaging for the organization and for the individual concerned. HBFCL feels that all such highly speculative or controversial news need to be first thoroughly checked for authenticity before being published. in the present instance even the name and reputation of nAB has in effect been maligned as an action has been attributed to nAB which it has not at all taken. HBFCL hold the media in high regard and wishes to confirm that it believes in full transparency and is always available to the media to discuss any issues it may have relating to the organization. PRESS RELEASE

Karachi: etihad Guest, the award winning loyalty program of etihad Airways has announced a new exciting partnership with Avari Hotels international offering members a new way to earn etihad Guest Miles. Under this agreement, guests who stay at any Avari hotel worldwide will be eligible to earn one etihad Guest Mile for every one Usd spent.

As part a launch offer, members who book and stay at any Avari Hotel in the UAe or Pakistan on or before June 30 will earn double etihad Guest Miles. speaking on the occasion, Mr. Amer Khan, Area General Manager, Pakistan, Bangladesh and nepal said: “We are delighted to be associated with the Avari Hotels that are synonymous with luxury and prestige.

At etihad Airways, we are always on the lookout for partnerships that create value and benefits for our loyal customers. this partnership with Avari Hotels expands the opportunities offered to etihad Guest Members and presents them with even more ways to earn and burn miles.” dinshaw B. Avari, executive director Avari Hotels, said: “the Avari Group is the first Pakistani owned company to enter into a partnership with etihad Guest pro-

246.90 83.65 83.93 73.76 136.38

-5.49 32 -4.35 1,013 -3.62 4,800 -3.16 600 -2.82 4,412

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0.90 9.32 43.41 16.93 25.30

26,417,756 0.78 22,764,968 1.57 15,901,007 1.00 13,673,466 0.90 13,049,437

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CORPORATE CORNER Allied Bank Launches Pakistan’s First Youth Branch

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gramme. this is indeed an honour for us as both brands are very well recognized for their high service standards and true hospitality. the etihad Guest programme, winner of 3 Freddie Awards for Best elite Programme, Best redemption Ability and Best Loyalty Credit Card, boasts over 1.5 million members to date. STAFF REPORT

Qatar Airways named best business class in world dubai: Qatar Airways has been honoured in dubai for the second consecutive year with the Best Business Class in the World award by readers of the Middle east edition of the prestigious industry magazine Business traveller. the doha-based airline beat off stiff competition from neighbouring regional airlines to take home the coveted award, presented at a lavish ceremony held at the emirates towers hotel.

Guests from across the regional and global travel, tourism and hospitality industries attended the annual event. it was a fitting start to Qatar Airways’ week-long presence at Arabian travel Market (AtM), the Middle east’s premier regional travel trade show, starting today in dubai. Qatar Airways Chief Commercial Officer Marwan Koleilat collected the award on behalf of the airline from renowned Michelin star italian chef and restaurateur Giorgio Locatelli, adding to the carrier’s growing list of international honours. PRESS RELEASE

SECP to facilitate Hajj, Umra operators on Saturdays iSlamabad: to facilitate the Hajj and Umra operating companies to meet the deadline for fulfilling requirements of the Ministry of religious Affairs, the securities and exchange Commission of Pakistan (seCP has decided that skeleton staff will be available in all regional offices on saturdays falling on May 5 and 12. Ministry of religious Affairs has issued certain criteria for enlistment of Hajj Group Organizers for Hajj 2012, which includes obtaining a certificate from seCP that there is no management dispute pending resolution and raising of authorized capital upto rs 7.5 million. As the deadline for making this application for enlistment to the Ministry of religious Affairs is on May 15; seCP has decided to extend facilitation to Hajj and Umra Operating companies, so that these companies can meet the deadline. STAFF REPORT

CEO pay grew 127 times faster than worker pay over last 30 years: Study ThE hUffINGTON POST

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t’s good to be chief executive. , after a 28 percent pay rise the year before, according to a report by GMi ratings cited by the Guardian.

Meanwhile, in 2011, according to the Labor department. that’s in line with a trend that dates back three decades. between 1978 and 2011, while worker pay rose just 5.7 percent, according to a study by the economic Policy institute released on Wednesday. that means CeO pay grew 127 times faster than worker pay. income inequality between CeOs and workers has consequently exploded, with than workers, compared to just 26.5 times more in 1978 — meaning CeOs are taking home a larger percentage of company gains. that trend comes despite workers nearly doubling their productivity during the same time period, when compensation barely rose. between 1978 and 2011 on a per-hour basis, and , according to the Federal reserve Bank of st. Louis. Meanwhile, in recent years as corporations postponed giving raises while adding to their record corporate profits.