PRO 06-03-2013_Layout 1 3/6/2013 12:21 AM Page 1
01
B
BUSINESS Wednesday, 6 March, 2013
LAhore
S
ISmAIl dIlAwAR
TATE Bank of Pakistan (SBP) Governor Yaseen Anwar on Tuesday said the country's economy has the ability to navigate through deep waters. "I’m excited by the economic potential that this country holds, and I encourage you all to become a part of the country’s future by becoming a part of the solution," he said while delivering a speech at Pakistan Navy War College, Lahore. He said while our current economic situation is less than optimal, it is also far from what may be described as an economic calamity. Anwar said in 65 years, Pakistan had never gone through an episode of hyperinflation and never defaulted on its international and domestic debts. In fact, our economy has grown consistently, but not spectacularly, over the past six decades, he said. “This has been despite periods of international alienation and sanctions, three expensive wars, two hostile fronts, regular political upheaval, social unrest, sharp increases in the price of oil, and much, much more,” he added. Anwar said the SBP has always ensured that the financial system of the country remains safe and stable. The robustness of our financial system is a direct consequence of the reforms process and the cen-
Industry in Pakistan is in dire straits and the PTI industrial policy aims to build solid foundations for its revival by creating 10 million new jobs for the youth over the next five years – PTI leader Asad Umar
‘Economy able to navigate through deep waters’ tral bank’s constant vigilance, he said, adding that there’s a lot that can be improved in our financial system. He called for the development of efficient debt markets, even better regulatory and reporting practices, and the broadening of the financial sector’s scope to include largely unbanked sectors of the economy, such as agriculture, small and medium enterprises, and housing. “Despite this wish-list, the fact remains that our financial system is, by design, secure and does not pose any threat to the economy as a whole,” he said. The SBP governor pointed out that the size of Pakistan’s undocumented economy is, by some estimates, as large as the formal economy. The informal economy does not file taxes and, while it does absorb a significant chunk of the labour force, it also evades corporate and labour laws, he said, adding that although close informal relationships do make the economy more resilient, they do so at a cost to the overall economy, by eroding the ambit of regulators. “Ideally, we, at the SBP, would like to see a smaller informal economy, while society retains the structure that has made it so resilient,” he stated. He stressed the need for greater integration of Pakistan’s domestic market with the global markets but added this did not mean that we should not have proper controls and mechanisms in place to safeguard our own interests. “Greater integration with financial markets will mean that capital will flow
Habib Metropolitan Bank closes the year on a profitable note LAHORE: Habib Metropolitan Bank closed the financial year 2012 by recording a profit-before tax of over Rs 5 billion; in doing so, the 7th largest bank of Pakistan in terms of shareholder equity, exhibited an increase against the profit-before-tax of Rs. 4.6 billion posted at the end of the previous year. This amplification of profitability was supplemented with a growth of 4.4 percent in the bank’s total assets, which stood at Rs 301 billion on December 31, 2012, and a noteworthy increase of 17.50 percent in the bank’s deposit base. Meanwhile, CASA deposits demonstrated a significant growth of 20.60 percent against the previous year, as the CASA mix of the bank amounted to an increased 53.80 percent. Net markup income of HabibMetro Bank increased by 7.90 percent and stood at Rs 8.30 billion, while nonmarkup income registered an increase of 5.20 percent, standing at Rs 5.40 billion at the end of the financial year 2012–an enhancement that is primarily attributed to the 18 percent growth in fee-based income and 12.18 percent growth in trading and dividend income. The bank’s Board of Directors recommended a final cash dividend of Rs 2 per share or 20 percent for the year ended December 31, 2012, against the 15 percent cash dividend announced in the previous year. Commenting on the bank’s financial performance in the year 2012, President and CEO, Sirajuddin Aziz said, “HabibMetro performed well despite the challenging economic environment of the country. Going forward, the bank will endeavor to further develop its product suite by adding attractive features to its product offerings during 2013. Through this commitment to improvement, we aim to better our customers’ banking experience with HabibMetro.” Other initiatives and occasions of note with respect to the bank include the launch of a reinvigorated brand identity earlier in the year, with the user-friendly nomenclature ‘HabibMetro’ accentuating the Group’s heritage. This was followed by the completion and celebration of 20 years of service by the bank, on October 21, 2012. 20 new branches spanning 7cities were added to the branch network during the year, enhancing the bank’s branch outreach to 183 branches across 28 cities Pakistan-wide. Of these, 11 new branches were opened in Karachi, taking the bank’s presence in the metropolis beyond the 100-branch milestone. Trade business amounting to Rs 791 billion was handled, as PACRA awarded the premier AA+ and A1+ credit ratings to the bank for the 12th consecutive year. HabibMetro’s footprint is expected to penetrate new cities and its branch network is scheduled for expansion with the opening of 25 to 30 new branches during the year 2013. STAFF REPORT
more quickly through our borders. It is definitely something that will boost the national economy, but, as most East Asian countries learned in the 90s, it can be a double-edged sword. Therefore, having some capital controls in place, which reduce the volatility of capital flows, is a necessary regulation in this day and age,” Anwar added. More effective regulation is the need of the hour for our own economy, he said, adding that it is an essential part of what is needed today to get the economy on track for steady and sustainable growth. He said the government’s footprint in some sectors of the economy is very large, while it remains quite negligible in other sectors. “Such divergence is unhealthy. Effective regulation is sorely lacking in other sectors. The tax machinery can be tightened considerably. One of the country’s most challenging problems today is the size of the fiscal deficit–and a large part of the solution lies in increasing our tax base by enacting regulation that encourages tax compliance, and punishes tax evasion,” Anwar said. Anwar said the government will need to borrow less money from the central bank. Borrowing from the central bank is popularly known as printing money, he said, adding that if government borrowing from the central bank falls, inflation will follow suit. “Therefore, better tax collection is a necessary condition for faster eco-
nomic growth. And for that we need to have more effective tax regulation,” he added. He said average inflation for the current fiscal year will likely remain in the 8.50-9.50 percent range. “Interest rates are reviewed, and may be revised, every two months, which allows our policy responses to be nimble to any changes in the economic environment. The Bank also ensures that the money market is never short of funds, which means that monetary policy signals are transmitted efficiently,” the SBP governor said.
ZTBL BoD composition challenged in IHC Petitioner alleges the board waived loans worth millions of ruPees illegally ISLAMABAD KASHIF ABBASI
The composition of Zarai Taraqiati Bank Limited (ZTBL) Board of Directors (BoD), which had allegedly written off loans to the tune of millions of rupees to some influential industrialists, has been challenged in the Islamabad High Court (IHC). Challenging eligibility of all nine members in the board, the petitioner, who is also an employee of ZTBL, requested the court to stop the board from working any more. A divisional bench of IHC comprising Chief Justice Muhammad Hussain Kasi and Justice Shoukat Aziz Siddiqui heard the petition and issued notices to all respondents. Through his counsel, the petitioner apprised the court that former president of ZTBL, Muhammad Zaka Ashraf, who is now Pakistan Cricket Baord’s Chairman, still enjoys membership of the ZTBL
board. “Zaka Ashraf is not fit according to BRDP circular No 4/2007 issued under the Prudential Regulation framed by the State Bank of Pakistan for good governance and regulation of the bank. He is an undergraduate and a very active member of the ruling party. However, he is exercising his power for the last four years as a board member and a member of critical decision making committees such as Human Resource Management Committee, Board Audit Committee and Committee on Credit plan,” read the petition. The petitioner pleaded that the directors proceeded to act in violation of law, extending illegal benefits to some clients based on political grounds, by application of SBP Circular No.22, of 2002, which was not applicable in the particular case. The petitioner alleged that the board’s decisions had caused a loss to the public exchequer worth Rs 2111.629 million. The plaintiff further told the court that all members enhanced their fee per meeting from Rs 4,000 to Rs 30,000-exclusive of club class air tickets and executive rooms in five-star hotels. After hearing the arguments, the court issued notices to respondents including secretary cabinet, secretary establishment, SBP governor, ZTBL, Zaka Ashraf and other board members, adjourned the hearing for an indefinite period.
Gold imports surge 31.87% in July-January (2012-13) ISLAMABAD APP
Gold imports during the first seven months of the current fiscal year surged by 31.87 percent against the same period, last year. According to data revealed by Pakistan Bureau of Statistics (PBS), the precious metal weighing 2,282 kilogrammes worth $123.382 million was imported during the period under review compared to imports of 1,741 kilogrammes valuing $93.561 million during the same period last year (2011-12). On month on month basis, gold imports in January 2013 registered an increase of 63.32 percent against January 2012 and recorded a decrease of 66.46 percent when compared to imports of December 2012. Gold imports in January 2013 stood at $12.196
million against imports of $7.459 million and $36.373 million in January 2012 and December 2012 respectively. The overall imports of metal group, registered an increase of 11.91 percent during July-January (201213) against the same period last year. Metal imports during the period under review were recorded at $1.813 billion against imports of $1.62 billion during the same period last year. Imports of iron and steel scrap registered a growth of 17.28 percent during July-January (2012-13) compared to imports during July-January (2011-12). Iron and steel scrap imports into the country were recorded at $394.134 million during the first seven months of the current fiscal year against imports of $336.11 million during the same period last year.
APCNGA rejects move to close 15-year-old CNG stations ISLAMABAD: The All Pakistan CNG Association (APCNGA) on Tuesday rejected the move by the Petroleum Ministry to close CNG filling stations that had completed fifteen years of operations, terming the decision detrimental for the masses. Some officials in the ministry are bent upon damaging the CNG sector that provides economical fuel to the masses and saves precious foreign exchange, said the association. The government wants to benefit the powerful petroleum and liquid gas sectors, it said. The summary moved by the ministry to the cabinet’s Economic Coordination Committee (ECC) to close down CNG outlets is a plot to deprive masses of economical fuel, damage the transport sector, plunge millions into unemployment and lay to waste our investments, said APCNGA Chairman Ghiyas Abdullah Paracha. In a statement issued on Tuesday, he said Advisor to PM on Petroleum Dr Asim Hussain has been desperately trying to close down the CNG business and introduce LPG in the market as soon as possible. Showing no respect for prevalent laws and rules, the minister has been overstepping the authority of Oil and Gas Regulatory Authority (OGRA) since years and has been taking controversial decisions, that have remained unpopular, even with the ruling elite, he added. Dubbing the summary a plot to destroy investments in the CNG sector, Paracha said any hasty decision in the forthcoming meeting of the ECC would be resisted with full force. Paracha said an urgent meeting of the APCNGA Central Executive Committee has been summoned to discuss the situation and devise a counter strategy. NNI
PRO 06-03-2013_Layout 1 3/6/2013 12:21 AM Page 2
Monday’s shutdown resulted in an estimated trade and industrial production loss of Rs 8 to 10 billion – AKTI President Atiq Mir
02
BUSINESS B Wednesday, 6 March, 2013
Major Gainers
CORPORATE CORNER
COMPANY indus motor Co Philip morris Pak. national refin attock refinery Pak oilfields “Teaming together to raise parent-school partnership”, a seminar by The City School, was held at a local hotel on Saturday 2nd March’ 13. Parenting Seminar provided an opportunity to guide and counsel the parents of students ranging from play group to A’ levels. Renowned keynote speakers attended the function including Ayaz Mir, Dr Mowadat Husnain Rana, Dr.Saad Bashir, ITU VC Dr Umer Saif, Arif Ijaz, LUMS VC Dr Adil Najum, Max. Babri and Dr Farooq Hasnat. They shared a host of experiences to extend professional and practical guidance to the worthy parents. This event was a part of the numerous programmes, The City School organised to celebrate 35 years of excellence in imparting education to the nation. PR
Elixir Securities showcases Pakistan’s finest corporates in Ny KARACHI: Elixir Securities and Credit Suisse jointly conducted a Pakistan Capital Markets Day in New York. Aimed at providing global fund managers with deeper insight into some of Pakistan’s hi-growth sectors, the extremely well attended event attracted a wide range of investors with focus on emerging and frontier markets. The Pakistan delegation comprised of senior team members of Elixir Securities and top management of Pakistani companies, representing Banking, Fertilizer, Cement, Food, Chemicals and Energy sector. Some of the key themes widely discussed between the delegation and investors included the possible outcomes of the upcoming election and growth opportunities. Pakistan’s retail potential, infrastructure development, high returns in the energy sector and turn around stories in the banking, cements and fertilizer sectors generated excitement amongst investors, ranging from traditional long only funds to region specific hedge funds. “I was truly amazed at the level of interest we saw. Investors are not only looking beyond the political noise we see in the media, they are in fact deeply plugged into the impressive numbers that corporate Pakistan has been delivering for 5 years. The questions were pointed and their understanding of our market was impressive. PR
Bank Alfalah reports impressive results for the year 2012 KARACHI: Bank Alfalah has announced strong financial results for the year 2012, demonstrating growth in earnings, as well as the Bank’s Balance Sheet base. The Bank’s asset base rose to Rs.536.467 billion in 2012, from Rs 468.174 billion at year end 2011, further solidifying the Bank’s financial position. The Bank’s deposits registered a growth of 14%, ending up at Rs. 457.119 billion at the year end. A consistent growth of over 30% was reflected in the profit after taxation figure, which was posted at Rs. 4,556.121 million for the year 2012, compared to Rs.3,503.130 million earned during the year 2011. Profit before taxation was reported at Rs 6,783.202 million for the year 2012, exceeding profit before taxation earned for the full year 2011 by 25%. Growth in revenue of 7% was reported with revenue standing at Rs. 53,361 million for the year 2012 and non-fund based income registering a year on year growth of 36%. The Bank’s NPLs to gross loans ratio stands at 9%, reflecting a better position vis a vis that of peer banks as well as the industry infection ratio. Whilst maintaining a low NPL ratio compared to the industry average, adequate provisioning has been maintained against the classified portfolio. Atif Bajwa, Bank Alfalah’s Chief Executive Officer, said, “2012 was a year when the Bank achieved growth amidst a challenging economic environment and whilst undergoing a period of transformation.PR
Swiss Counsel General hosts dinner KARACHI: The Consul General of Switzerland in Karachi Mr. Didier Boschung hosted a media get-together event at his residence. The main purpose of this gathering was to further strengthen the existing friendly relations with Karachi based journalist and writers. The Ambassador of Switzerland in Islamabad H.E. Christoph Bubb and Mrs. Bubb also graced the occasion as they were in Karachi to embark on their two days visit to interior Sindh. This auspicious event was attended by some tycoons of print and electronic media and a number of senior journalists. PR
Qatar Airways to becpme global main partner of football giant FC barcelona
venue, named Beaconhouse Sports Complex, offers facilities for an array of sports including football, volleyball, basketball, cricket, tennis, horse riding and swimming, and is meant to incorporate sports into the school’s curriculum in order to ensure a wellrounded education for its students. PR
Buksh Foundation’s ‘lightning a million lives’ project BARCELoNA, SPAIN: Qatar Airways will enter into a strategic partnership with football giants FC Barcelona that sees the airline’s brand name appear on first team shirts from the start of the 2013/14 season. The three-year agreement with the runaway Spanish league leaders and former winners of the Champions League will be effective from 1 July 2013. Qatar Airways will become the club’s Global Main Partner, signalling the first time the airline has engaged in a sponsorship with a major soccer club.
Secretary Water and Power terms NESPAK symbol of integrity
LAHoRE: Sikandar Ahmed Rai, Federal Secretary for Ministry of Water and Power, has termed NESPAK a symbol of honesty and integrity. He said this during his first visit to NESPAK House, Lahore, according to a press release issued here on Tuesday. Asad I. A. Khan, Managing Director NESPAK, welcomed the Federal Secretary and gave him a corporate presentation highlighting the performance of NESPAK. Speaking on the occasion, the Federal Secretary/Chairman Board of Directors of NESPAK eulogized NESPAK services in the fields of engineering, architecture/town planning etc., and encouraged its professionals to channelize their expertise in other fields like oil, gas, petroleum and mining sectors. He also proposed that NESPAK should set up its Institute to impart technical education, which will be beneficial not only for NESPAK but also help government acquire better technical manpower. Assuring his full support to NESPAK, he lauded its management for not bowing to the political pressure and for upholding the policy of merit instead of favoritism. PR
Beaconhouse inaugurates sports complex
LAHoRE: Buksh Foundation in collaboration with TERI (The Energy and Resource Institute), India with its Lightning a Million Lives (LaML) project is progressing towards success in a short span of time. The project has already electrified 6 villages in the Sahiwal district, Punjab, while it aims to reach out to 4,000 more villages of Pakistan, aiming to impact a million lives in the next 4 years. PR
OPEN 316.45 202.42 223.12 183.21 478.88
HIGH 332.27 212.54 233.85 192.37 486.25
LOW 307.00 200.00 223.20 185.50 479.00
CLOSE 328.24 212.54 233.16 192.37 485.21
CHANGE 11.79 10.12 10.04 9.16 6.33
TURNOVER 34,300 15,700 536,400 2,731,000 308,200
10800.00 437.50 1600.00 289.75 188.72
10500.01 437.50 1540.00 289.75 179.29
10500.01 437.50 1600.00 289.75 179.65
-249.99 -23.00 -20.00 -15.25 -9.07
260 100 1,400 100 1,000
7.77 8.08 17.10 23.46 7.20
6.75 7.60 16.61 22.71 6.59
7.72 7.99 16.61 22.90 6.70
0.95 0.30 -1.00 -0.25 -0.13
27,105,000 23,224,500 17,779,000 13,143,000 12,198,500
Major Losers unilever Pak indus dyeing sd Colgate Palmolive bhanero tex. Pak services
10750.00 460.50 1620.00 305.00 188.72
Volume Leaders P.i.a.C.(a) lotte PakPta Jah.sidd. Co. P.t.C.l.a telecard limited
6.77 7.69 17.61 23.15 6.83
Interbank Rates usd gbP JPy euro
PKr 98.1509 PKr 149.0421 PKr 1.0547 PKr 128.1654
Forex BUY us dollar euro great britain Pound Japanese yen Canadian dollar hong Kong dollar uae dirham saudi riyal
99.10 128.58 149.02 1.0504 95.37 12.56 26.90 26.40
SELL 99.35 128.82 149.26 1.0613 97.06 12.79 27.15 26.60
Government of Pakistan, TDAP
Adamjee Life Funds show positive trend
A Chinese delegation led by Mr. Yang Yunfan, Deputy Director General of Sichuan Bureau of the Expo Affairs alongwith 5-Member delegation visited TDAP Headquarter, Karachi on 5th March, 2013 and held a meeting with the Chief Executive, TDAP. In the said meeting the Deputy Director General extended the invitation to Pakistan to participate in the 14th Western China International Fair (23-27 October, 2013) and 3d China-Sichuan Imported Commodity Fair (14-18 June, 2013), which are organized by the Sichuan Bureau of Expo Affairs in Chengdu, China. It was also informed by the delegates that the Sichuan Bureau of Expo is extends to make Pakistan partner country for 15th Western China International Fair in the year 2015 and 2016. The Chief Executive, TDAP appreciated the endeavors of Sichuan Bureau of Expo for strengthening trade relations between the two countries. The Chief Executive also assured the visiting delegates about the quality participation from Pakistan. PR
KARACHI: Adamjee Life debt and equity fund performance during December saw a positive trend; per unit NAVs (as of Feb 28th, 2013) are as follows: Investment Secure Fund (S&A) Bid 118.8333 Offer 125.0877 Investment Multiplier Fund Bid 129.4177 Offer 136.2292 Investment Secure Fund (IFL) Bid 118.8219 Offer 122.4968 Investment Diversifier Fund Bid 107.954 Offer 111.2928 Amanat Islamic Fund Bid 100.79 Offer 106.0947 Considering the growing demand for shariah compliant investment options in Pakistan Adamjee Life has launched “Amanat Islamic Fund”. Adamjee Life “Amanat” fund is an Islamic open-end asset allocation/ investment fund, which seeks to achieve its objective of stable yet aggressive returns through investing in a diverse portfolio of shariah compliant investments. PR
Freelancer.com launches in Pakistan KARACHI: Freelancer.com, the world’s largest crowd sourcing and outsourcing platform, with more than 7 million users, launches freelancer.pk amidst the internet boom sweeping the nation. With Pakistan’s broadband users clocking in at a whopping 5 million, the launch will open doors to Pakistani’s selfemployed professionals whose numbers have surged from 33.3% to 39.9% in the last 3 years - a sharp contrast to the dismal 0.2% growth experienced by the traditional employee sector in that time. The presence of Freelancer.com in Pakistan is expected to provide alternative avenues for Pakistanis to raise their economic status quickly and easily by giving them access to jobs from around the world. Pakistan ranks third highest in terms of membership on Freelancer.com, with more than 240,000 users. PR
APNS thankful to Kaira The APNS has expressed its thanks to the Minister for Information Qamar Zaman Kaira for resolving the issue of Centralised Media Policy to the satisfaction of the APNS and for paying the outstanding dues for the period from 2008 to 2012. Masood Hamid, Secretary General, APNS has stated that a delegation of APNS consisting of President, Secretary General and Jamil Athar held a meeting with Qamar Zaman Kaira, at Islamabad. The meeting was attended by Agha Nadeem, Secretary Information and PIO, Imran Gardezi. The APNS apprised the ministry on its reservations on the Centralized Media Policy. The office bearers also pointed out that bills against advertisements of Federal Government Ministries / Departments for the period 2008 to 2012 were long outstanding which should be cleared before the expiry of the tenure of the present government. Kaira very kindly agreed to resolve the issue of Centralized Media Policy to the satisfaction of the APNS and clear the outstanding dues as requested by the APNS at the earliest.
SZABIST Law Society hosts an elegant dinner LAHoRE: The Beaconhouse School System inaugurated its new 25-acre comprehensive sports facility in Bedian Road on Sunday with a Sports Festival featuring a wide range of events such as rugby matches, rock climbing, cheerleading and taekwondo displays, football tricks and musical performances. The event was attended by families with children aged 3 to 12. The newly-inaugurated
SZABIST Law Schools hosted its 10th Annual Law Dinner on 2nd March 2013. The dinner was organised by the SZABIST Law Society. The event was held at the Marina Club and was attended by prominent personalities of the legal profession, such as, the former Chief Justice of Pakistan Saeeduzaman Siddiqui and esteemed judges of the Sindh High Court including Justice Maqbool Baqar and Justice Munib Akhtar. Respectable members of Board of Trustees of SZABIST, President of SZABIST, and Head of the SZABIST Law Department and faculty members also graced the occasion. PR
Emirates SkyCargo, the Cargo Division of Emirates Airline, one of the world’s fastest growing airlines, recently held its annual award ceremony to honour and recognise the most productive cargo agents in Pakistan at a gala event in Lahore. Pictures show Mr. Khalid Bardan, Emirates’ Vice President, Pakistan (standing in 1st row fifth from the right) along with the winning cargo agents at the event. PR