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Tuesday, 4 September, 2012
KHARIF 2012
Urea supply > urea demand 3.377m ton urea available against 3.214m ton estimated demand ISLAMABAD APP
N
ATIONAl Fertilizer Development Centre (NFDC) has announced that about 3.377 million tons of urea including 0.425 million tons of imported supplies would be available against 3.214 million tons estimated demand, leaving an inventory of 0.159 million tons during on-going Kharif season. The availability would also include 0.8 million tons of inventory and 2.152 million tons of local production. Issuing details about the situation during Kharif-2012, the Centre in its latest summary said about 0.726 million tons of DAP would also be available in the market. The demand estimates are around 0.552 million tons, leaving a closing balance of 0.173 million tons. Thus supply demand situation in respect of both urea and DAP will remain satisfactory during Kharif 2012. Regarding fertilizer off take during June2012, it said total nutrients off take during the month was about 0.592 million tons which increased by 96.9 per cent over June last year. Nitrogen and phosphate off take increased by 107.2 and 37.7 per cent respectively whereas potash off take decreased by 16.9 per cent. The summary further revealed that Urea off take during June-2012 was 1.029 million tons, showing an increase of 109.1 per cent over June 2011. The increase in urea off take was mainly due to reduction in its company price by local fertilizer industry from Rs. 1,790 to 1,650 per 50 kg
timeframe of last Kharif 2011. It also revealed that Urea off take was 1.715 million tons (1.451 million tons last year), with an increase of 18.2 per cent. The DAP off take was 0.182 million tons (0.153 million tons last year), showing upward trend of 19.2 per cent over Kharif 2011. About fertilizer off take year on year basis (July 2011 – June 2012), the summary indicates that total nutrients off take during 2011-12 was 3.697 million tons, showing a decrease of 6.0 per cent over previous year 2010-11. Nitrogen off take was 3.055 million tons against 3.133 million tons during 2010-11 with decrease of 2.5 percent. Similarly, phosphate off take was 0.621 million tons against 0.768 million tons last year, showing a decrease of 19.1 per cent. Potash off take also decreased by 33.2 per cent compared to previous year. In product terms, urea off take decreased by 0.8 per cent from 5.765 million tons in 2010-11 to 5.722 million tons in 2011-12. Off take of DAP also decreased by 20.7 per cent from 1.325 million tons in 201011 to 1.051 million tons in 2011-12, it added.
bag of urea. The DAP off take was 96,000 tons which increased by 40.6 per cent over corresponding month of 2011. The summary said production of all fertilizer products during June 2012 was about 0.514 million tons. Dispatches of imported fertilizers from port were 0.195 million tons, comprising of 0.132 million tons of urea and 63,000 tons of DAP. During June 2012, prices of all the fertilizers except TSP decreased. During June 2012 prices of Urea Sona and Urea tara decreased by 1.9 and 2.5 per cent over May 2012 respectively. Prices of DAP decreased slightly (1.3 %) while prices of CAN, SSP (P) and SSP (G) decreased by 1.0, 4.4 and 3.1 per cent respectively. However, price of TSP increased by 2.6 per cent over May, 2012. The summary said the cumulative nutrients off take for first three months of Kharif 2012 (April to June 2012) was 1.02 million tons, witnessing an increase of 17.4 per cent over the same
Trade policy envisages Rs 60b for Export Development Initiative
Dr Salman Shah elected LSE Board chairman LAHORE NNI
The Board of Directors of the lahore Stock Exchange limited (lSE) today elected Dr. Salman shah new Chairman of the Board. Dr. Shah is a lahore based prominent Economist and holds a PhD in Finance and Economics from Indiana University, Bloomington’s Kelley School of Business. Dr. Salman Shah is the CEO of Bridge Asia Financial Services. Earlier, he was the Finance Minister and Advisor to Prime Minister on Finance and Revenue at Ministry of Finance, Government of Pakistan. He has also been on the Board of Directors of Pakistan International Airlines and Associate Dean at lahore University of Management Sciences. He has also served in various task forces of Government of Pakistan. After election a press conference was conducted where newly elected chairman advised small investors to invest their savings into those companies that give handsome return. He also briefed about the development of the country and said that Kashmir issue and increased poverty are the main hurdles between the development of the country. Answering a question regarding Pak-India cross border investments, he said that this will be profitable for both the countries. He said that targets of Demutualization won’t be achieved without brokers’ involvement, therefore, he requested to the brokers of the Exchange to actively participate in this process. Managing Director of the lahore Stock Exchange congratulated the new elected chairman of the lahore Stock Exchange and expressed his hope that under the guidance of Mr. Salman Shah, the Exchange will achieve the targets of development rapidly using the vast financial experience of the chairman.
Oil down in Asia SINGAPORE
ISLAMABAD
AFP
APP
Rest assured! Local industry to be protected after phasing out negative list ISLAMABAD APP
The local industry of the country would be protected even after phasing out of the negative list with India that is expected in December of the current year. After phasing out negative list, “we will shift to sensitive list under South Asian Free Trade Agreement (SAFTA) and this agreement was made in provision of World Trade Organization (WTO)”, said an official in the ministry of commerce while talking to APP. Of 1200 items in negative list, the sensitive list includes 700 items which were finalized after developing consensus with India, he added. Moreover, the sensitive list also covers major sector including automobile, pharmaceutical, agriculture and textiles. These items carried import duty from 25 per cent to 80 per cent whenever any of these items is imported from India. Quoting example of vehicle, he said that if any car was imported from India, its cost would be equal to almost local manufactured unit after paying duties. Besides, the local industries were under progress of making more competitive before phasing out negative list. Automobile sector is trying to transfer from Euro-I to Euro-II to compete the Indian market. European Countries has started to offer discount on the price of machinery after Pakistan took trade initiatives with India.
As much as Rs 60 billion have been proposed in the upcoming three-year Strategic Trade Policy Framework (STPF 2012 2015) for the Export Development Initiative. “The fund has been proposed keeping in view the financial constraints of the government,” a top official told APP adding that the aim is to facilitate the exporters for boosting their exports and make them competitive with regional competitors like India and Bangladesh. The official said that this fund was lowest as compared to the other regional countries. He was of the view that if the government did not provide this fund, it would be unjust for the export industry adding that at a time when the trade deficit had already reached to $21 billion, this support is needed to help exports grow. Commenting on the previous trade policy, the official maintained that the trade policy 2009-12 could not be properly implemented due to paucity of funds. He said that the Textile Ministry had demanded the government funds of Rs 188 billion for the implementation of the trade policy (2009 12)
for five years, but the ministry provided just Rs 23 billion for three years. Similarly, the Ministry of Commerce had demanded Rs 27 billion for the proper implementation but it was provided Rs.3 billion. “The scarcity of funds was the main reason that the previous three year trade policy could not be implemented,” they added However, the new trade policy is focused on addressing the new challenges and has been developed while keeping in view the financial limitations of the government.
D-day ahead Judgment day looms for euro FRANKFURT AFP
When the history books come to be written about the euro, September 12, 2012 could well prove one of the most significant dates in the life of the embattled single currency. At 10:00 am (0800 GMT) on that day, the eight scarlet-robed judges of Germany’s Verfassungsgericht or Constitutional
Crude prices fell in Asia Monday with traders disappointed after US Federal Reserve chief Ben Bernanke did not confirm stimulus measures during a closely-watched speech, analysts said. New York’s main contract, light sweet crude for delivery in October, shed 24 cents to $96.23 a barrel and Brent North Sea crude for October delivery fell 17 cents to $114.40. Crude markets were digesting Bernanke’s speech at a central bankers’ summit in Jackson Hole, Wyoming on Friday, where he did not announce a firm timetable for stimulus measures, IG Markets said in a report. “Bernanke disappointed with no confirmation of QE3 or details about its timing,” the report stated. But the price fall was limited as Bernanke’s speech “was very monetary policy-heavy which many viewed as paving the way for another round of asset purchasing soon”. In his highly anticipated speech, Bernanke defended the Fed’s interventions of the past four years and signalled he would be pushing for more when the Fed’s policy board meets in 12 days. “The economic situation is obviously far from satisfactory,” he said at the conference, adding that the central bank would provide additional policy accommodation “as needed” for economic growth in the world’s biggest oil-consuming country.
Court will file into the courtroom in the southwest city of Karlsruhe to decide whether German President Joachim Gauck can sign into law the eurozone’s key crisis-fighting tools. German parliament already voted in favour of the European Stability Mechanism (ESM) and the European fiscal pact with a two-thirds majority at the end of June. But Gauck held off from completing the ratification process in face of a number of legal challenges filed by the far-left Die linke party, a citizens’ initiative group called “more democracy” and a well-known eurosceptic from Chancellor Angela Merkel’s CSU Bavarian sister party, Peter Gauweiler. They argued that the ESM — the EU’s permanent 500-billion-euro ($627-billion) rescue fund — and the fiscal pact were incompatible with Germany’s “Grundgesetz” or Basic law because they are effectively forcing Germany to surrender its budgetary sovereignty without the necessary democratic backing. By committing Europe’s biggest economy — and already its effective paymaster — to the ESM, parliament was essentially exposing Germany’s public finances to unlimited risks should one eurozone country after an-
other topple under the debt crisis, they argued. And that meant German voters’ basic democratic rights were being infringed upon. In addition, the critics argued the ESM breaches the “no bailout clause” of the EU’s Maastricht Treaty, under which Germany agreed to relinquish its revered Deutschmark on condition there would be no direct or indirect sharing of eurozone members’ debt. The ESM, which will replace the temporary European Financial Stability Facility, should have been up and running by July 1. But it needs Germany’s share of the rescue money to function and has thus been held up pending the Constitutional Court’s ruling. On September 12 the court will not yet rule on the constitutionality of either the ESM or the fiscal pact. It will simply decide whether to grant temporary injunctions sought by the plaintiffs that will prevent President Gauck from signing the legislation into law until a final ruling can be made next year. If the court dismisses the plaintiffs’ case, everything will be hunky dory: Gauck can sign the legislation and the ESM can at long last become operational, much to the relief of the financial markets.
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Business 02 ASIAn mARkETS mOSTLy up on stimulus hopes HONG KONG
A
AFP
SIAN markets mostly rose Monday after more weak Chinese manufacturing data fuelled hopes for fresh monetary easing, following hints from the US Fed chief about similar moves in the United States. Tokyo slipped 0.39 percent by the break but Hong Kong added 0.12 percent, Sydney gained 0.23 percent, Shanghai was 0.22 percent higher and Seoul put on 0.30 percent. Fears over growth in China were stoked again on Saturday when the official purchasing managers’ index (PMI) of manufacturing activity fell to a nine-month low of 49.2 in August from 50.1 in July, owing to slumping demand in the key export markets of Europe and the United States. A reading above 50 indicates expansion, while one below 50 points to contraction. It adds to rising concerns over China’s economic growth and comes despite Beijing cut-
ting interest rates and lowering the amount of cash banks must keep in reserve as it looks to boost activity. China’s economy grew just 7.6 percent in the three months to June, the worst performance in three years and the sixth straight slowdown, while figures for trade, industrial output and retail sales in July were also weak. The latest results will boost expectations of another cut to banks’ reserve requirements or even interest rates. Global markets posted gains at the start of last month as dealers bet that central banks in China, Europe and the United States would announce fresh stimulus and easing policies, but the lack of action has led to selling pressure in the past few weeks. In the United States, Fed chief Ben Bernanke on Friday told c e n t r a l bankers that stagnation in the labour market was “a grave concern” and signalled he would be
pushing for more help for the economy. His comments led to speculation that the Fed would undertake a third round of bond-buying, or quantitative easing, lifting US shares. The Dow added 0.69 percent, the S&P 500 rose 0.51 percent and the Nasdaq climbed 0.60 percent. However, Mizuho Securities senior technical analyst Yutaka Miura told Dow Jones Newswires: “Although Bernanke’s comments left hopes in markets, we still find it difficult to foresee when and whether the Fed will really take action. “The external environment looks uncertain, with the Chinese economy deteriorating. Any aggressive bids may be limited.” On currency markets the euro bought $1.2575 in early Tokyo trade from 1.2576 in New York late Friday. The European currency also lost ground against the yen, trading at 98.43 yen compared with 98.51 late Friday. The dollar fell to 78.25 yen from 78.31 yen. Oil eased, with New York’s main contract, light sweet crude for delivery in October, shedding 38 cents to $96.09 a barrel and Brent North Sea crude for October down nine cents to $114.48. Gold was at $1,689.80 at 0315 GMT compared with $1,658.80 on Friday.
ECC urged to consult with local industry KARACHI STAFF REPORT
Pakistan Automotive Manufacturers Association (PAMA) urged Economic Coordination Committee (ECC) to take industry’s point of view into consideration before taking any decision with regards to proposed changes in CBU import rates or extra concessions to new entrants. In a letter to Minister of Finance and ECC Chairman Dr Hafeez Shaikh, PAMA Director General Abdul Waheed Khan said the different stakeholders of the automobile industry including motorcycle manufacturers and vendors should not be ignored for setting up any future strategy for the industry. He said that it was quite unfortunate that despite binding orders from the Finance Minister the concerned committee has not so far invited representa-
tives of the PAMA in the committee constituted by ECC. DG said Pakistan’s local motorcycle has flourished and qualified to be an integral part of the economy with thousands of skilled workers and laborers but their representatives have not been taken on board so far. ECC should involve the stakeholders of the billion dollar industry to move further towards the consistent development instead of unilateral decision that will lead to nowhere but destruction of the industry. Pakistan is among the top 20 motorcycle manufacturing countries in the world producing quality two wheelers of international standards ranging between 70cc to 150cc based on modern technology. local automobile industry’s total installed capacity (2011-12) was 2,500,000 while the
sales volume in 2011-12 was 1,600,000. The capacity utilization in 2011-12 was 64 percent. The two wheeler penetration in Pakistan is 12/1000 persons. DG pointed out that the government recent policy shift to offer hefty duty concessions on import of CBU is a great concern for local industry. Any move in this regard will completely destroy the entire existing local industry, he added. The government should make all its efforts to attract foreign investment but it should not ignore the fundamental concept of a level playing field for all existing and new players, he said and added PAMA is not against any foreign investment but without endangering the existing industry, it requests the government not to offer any duty concession to a single player.
Major Gainers OpEn COmpAny Wyeth Pak Limited 960.00 Indus Motor Company274.50 Bata (Pak) Limited 1111.00 Exide (PAK) 324.84 Mithchells Fruit 346.25
HIGH 1008.00 288.22 1125.00 341.08 359.00
LOw 995.00 278.00 1060.00 333.00 354.99
CLOSE CHAnGE 1008.00 48.00 288.22 13.72 1124.70 13.70 338.27 13.43 359.00 12.75
TuRnOvER 250 72,300 450 78,100 300
380.20 210.07 1355.00 86.10 157.95
380.20 204.00 1340.00 86.10 148.25
380.20 204.07 1350.00 86.10 150.41
-19.99 -9.75 -5.00 -4.10 -3.09
100 27,000 500 500 46,300
19.04 3.47 3.20 74.99 8.27
18.75 3.00 2.97 70.90 7.25
19.04 3.05 3.02 73.05 8.26
1.00 -0.24 0.11 1.30 0.99
21,193,500 13,738,500 11,509,000 9,567,500 9,231,500
Major Losers Indus Dyeing Abbott Lab.XD Colgate Palmolive Javedan Corporation Philip Morris Pak.
400.19 213.82 1355.00 90.20 153.50
Volume Leaders P.T.C.L.A WorldCall Telecom Telecard Limited Engro Foods Ltd. Maple Leaf Cement
18.04 3.29 2.91 71.75 7.27
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.6885 150.3654 1.2084 118.9856
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
SELL
94.50 117.58 148.64 1.1905 94.57 11.96 25.53 24.99 95.40
95.00 119.16 150.60 1.2060 96.32 12.18 25.84 25.29 98.12
LG opens game world for convenient access to wide range of smart tv games LAHORE: lG Electronics (lG) yesterday announced the launch of its new Smart TV game portal, Game World. Anticipating a new era of downloadable casual 3D games, lG developed Game World exclusively for its CINEMA 3D Smart TV lineup. PRESS RElEASE
CORPORATE CORNER Etihad Airways named the official airline of the sixth pakistan SmE conference KARAcHi: Etihad Airways, the national airline of the United Arab Emirates, has been named as the Official International Airline of the sixth SME Conference 2012 to be held in Karachi on September 5. PRESS RElEASE
ADB lauds kESC performance iSLAMABAD: The Asian Development Bank (ADB) has lauded the performance of Karachi Electricity Supply Company limited (KESC) for taking several successful measures to reduce transmission and distribution losses. “The KESC is on right direction as I have visited the company and am impressed by the way it is working to reduce transmission and distribution losses,” ADB’s Director General Private Sector Operations Department (PSOD), Philip C. Erquiaga said Erquiaga, who was talking to a group of journalists here about the ADB’s engagements in private sector investments in the country, informed that the Bank has about $150 million investment in the KESC. PRESS RElEASE
Pakistan Japan Business Forum, Chairman, Abdul Kader Jaffer hosted a dinner in honor of out going Consul General of Japan Masaharu Sato, at his residence. Picture shows Sindh Minister Syed Sardar Ahmed, former Foreign Minister Sahebzada Yaqub Ali Khan, Ghanwa Bhutto, State Bank of Pakistan, Governor, Yaseen Anwar, Consul Generals of United States, France, Indonesia, former Governor of Sindh Moinuddin Haider, and other guests.
After 3 successful seasons of Fashion Pakistan Week, the Fashion Pakistan Council is back with season 4 which will be held in Karachi from October 17th to 20th, this year.
Qatar Airways launches latest global sale at midnight
horns and genuine leather wallets. These products are manufactured in Milan. PRESS RElEASE
have 11 F&F numbers including one Super Dosti Number which will be free forever.
Bank Islami wipes off all its accumulated losses
ApmIA head office inaugural ceremony
KARAcHi: BankIslami Pakistan limited announced its half yearly results yesterday by reporting a profit after tax of Rs. 229 million. The Bank continued its upward trajectory by registering a growth of 22.6% in deposits, 21.6% in assets and 80.1% increase in earning per share.
ISlAMABAD: An inaugural ceremony of All Pakistan Marble Industries Association (APMIA) Head Office was held in Islamabad yesterday. Pakistan Stone Development Company (PASDEC), CEO, Mr. Ihsanullah Khan was the chief guest of the ceremony.
FumC listed in International Directory of medical Colleges
Burger Hub, hubs it all!!!!!*
Foundation University Medical College (FUMC) has been included in the International Directory of Medical Colleges.
KARAcHi: Qatar Airways is offering customers in Qatar and around the world with great savings to more than 100 destinations during its latest three-day global sale. The 72-hour marathon sale, which starts at 0000 hrs on September 4, and ends at 2359 hrs on September 6 offers customers the opportunity to travel to a variety of destinations across Europe, Middle East, Africa, Asia, Australia and the Americas at very attractive fares. PRESS RElEASE
Glow launches super dosti package LAHORE: Burger Hub, a cosy burger joint tucked away in Vogue Towers on M.M. Alam Road, recently launched with two new exciting burgers: Chico Jalapeno & Carne Jalapeno. These two burgers are based on a fiery and spicy recipe, and are guaranteed to get your taste buds stinging. PRESS RElEASE
Studio Empoli launches a new range of accessories LAHORE: Studio Empoli, one of the most well know shoe brands in the country has recently launched a complete range of accessories shoe
Second Skin Launched KARAcHi: Glow – The trendiest cellular youth brand of Pakistan announces the launch of ‘Super Dosti Package’ which allows Warid subscribers to
LAHORE: Second Skin, a clothing line based on semi-formal and formal designs, recently launched at Object’s flagship store at Park Towers. PRESS RElEASE
Tuesday, 4 September, 2012