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Thursday, 6 December, 2012
Light at the end of the tunnel… Pakistan‚ Korea ink deal for Malakand Tunnel project‚ development of water resources SEOUL
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ONLINE
AKISTAN and South Korea Wednesday inked two agreements for the Malakand Tunnel Construction Project and for development of water resources infrastructure including dams. The agreement on Malakand Tunnel Construction Project was signed during meeting of President Asif Ali Zardari with Kim Yong-Hwan‚ Chairman Export Import Bank of Korea‚ who called on him at the local hotel in Seoul. Under the Malakand Tunnel Loan Agreement‚ an amount of US $78 million will be provided for the project. The Korea Eximbank is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises in conducting overseas business. Malakand tunnel will provide a short route not only to people of Dir‚ Malakand and Swat and adjacent localities but would also be an easy access to central Asian states‚ providing the market access to the country for its products. Malakand Pass lies between Dargai-Batkhela and is situated at an altitude of 470 metres and 663 metres‚ respectively. The South Korean government pledged the $78 million funding through the Economic Development Co-operation Fund (EDCF) for the construction of Malakand Tunnel project in Khyber Pakhtunkhwa province. The 9.7 km project also includes approach roads on both sides of the tunnel and three bridges. The initial feasibility study of the tunnel has already been completed by South Korean
consultants in collaboration with National Highway Authority Pakistan‚ which is also the Project executing agency. The President said that it was high time for Pakistan and Korea to take its bilateral trade to new heights while exploring the true potential of trade and investment existing between the two countries‚ urging the business community of the two countries to boost its trade volume from current over $1.5 billion to $ 2 billion in the next three years. He said that number of major Korean companies are doing business in Pakistan and have invested in major projects in Pakistan including chemical plants‚ energy and infrastructure projects and building port facilities‚ adding that now when the government has opened all sectors of economy open for investment‚ the Korean companies should avail the enormous opportunities and incentives‚ the
government offers for investment in Pakistan. He reiterated that government would provide fool proof security and one window operation to the Korean entrepreneur for investment in the Special Economic Zones. Later‚ President Asif Ali Zardari had meeting with Chief Executive Officer of the Korea water Resources Corporation (K-Water) Kim Keun-Ho. After the meeting‚ Memorandum of Understanding was signed between the Korea Water Resource Corporation - K-water and Water and Power Development Authority of Pakistan (WAPDA). Under the MoU both the sides will work for sustainable water and power sector development and cooperate in development of water resources infrastructure‚ including dams‚ hydropower‚ flood control and canals. Both the sides will also exchange technical expertise‚ have training of engi-
neers‚ technicians and conduct study on operation and management of dams‚ hydropower‚ hydrology and sedimentation. During meeting with delegation of KWater‚ the President while highlting investment potential in Pakistan energy sector said that Pakistan was blessed with one of the largest coal reserves of over 185 billion tones‚ which alone can produce over 100‚000 MW of power for 100 years besides huge potential in the hydal‚ wind and solar power. He called upon Korean Companies to invest in energy sector and help Pakistan meet the growing energy requirements. The two countries earlier also inked a Memorandum of Understanding between the Board of Investment of Pakistan and the Lotte Group of Korea‚ under which the Korean group will expand its business in Pakistan and invest in infrastructure and power generation projects in Pakistan and will conduct preliminary feasibility studies in projects as Mahl Hydro Power and Azad Pattan Hydro Power Project‚ besides expansion of their existing business in Pakistan. The Korean companies during meeting with the President appreciated the government of Pakistan initiatives for attracting investment and said that many Korean companies are interested to invest in diverse areas. Those who were present during the meetings included among others Makhdoom Muhammad Amin Fahim‚ Commerce Minister‚ Ch. Ahmad Mukhtar‚ Minister for Water and Power‚ Nawabzada Malik Amad Khan‚ Minister of State for Foreign Affairs‚ Mr. Muhammad Arif Azam‚ Secretary Railways‚ S. Anjum Bashir‚ Secretary BOI‚ Mr. Raghib Abbas Shah‚ Chairman WAPDA‚ Mr. Shaukat Ali Mukadam‚ Pakistan’s ambas-
PSO set to import 325,000t gasoline, jet fuel SINGAPORE ONLINE
Pakistan State Oil is set to import 325,000 tonnes of gasoline and jet fuel for delivery over December to March, about 28 per cent less than it had initially requested, industry sources were quoted as saying on Wednesday. PSO will likely buy six cargoes of about 50,000 tonnes each of 87-octane gasoline for delivery over Jan. 15 to March 15 and a 25,000-tonne jet fuel cargo for delivery on Dec. 20-31, according to a foreign news agency. PetroChina had the lowest offers for four of the six gasoline cargoes at premiums ranging from $72.20 to $84.40 a tonne and Trafigura had the lowest offers for the other two cargoes at a premium of $79.88 a tonne. PetroChina will likely load the cargoes from Fujairah where it has leased storage for gasoline recently, an industry source said. For jet fuel, Glencore had the lowest offer of $4.73 a barrel above Middle East quotes. The tender closed on Dec. 3 and is valid until Dec. 11. This is the first time the company is seeking 50,000-tonne lot sizes for gasoline instead of its usual 35,000-tonne cargo sizes, industry sources said. The company has increased tankage space for gasoline in its Kemari port in Karachi by 15,000 tonnes to satisfy increased domestic demand.
PSO to answer the Baloch question? g
Assures commitment to development in Balochistan ISLAMABAD AGENCIES
December 5th 2012: Members of the National Assembly visited PSO House on Wednesday for a briefing on the national energy giant’s performance over the past year and the employment opportunities the company offers to the people hailing from different areas of the country. During the course of the meeting, Mr. Naeem Yahya MirCEO&MD-PSO thanked the NA members for visiting PSO as it was under their guidance and di-
rection that the company was striving to serve the energy needs of the country. Speaking further, the MD apprised the parliamentarians that PSO was dedicated to serving all segments of the country in a fair and equitable manner. Elaborating on this, the MD explained that the company had initiated multiple
development projects in different areas across the country including Balochistan. This included the upcoming establishment of a new deep sea mooring point and storage facility at Hub. This new facility would provide employment opportunities for the local people and serve to enhance the national oil storage capacity by 10-14 days while reducing congestion at the Fotco and Keamari jetties. He also spoke on the Memorandum of Understanding (MoU) signed with the provincial government for establishment of a 5,000 acre bio-diesel plantation located at Uthal,
Balochistan. This plantation would serve as an agricultural and technological hub for the development of bio-fuels in Pakistan and act as a pilot project for commercial investors nationwide.
The MD also pledged that PSO would provide further employment opportunities to the youth of Balochistan and ensure a 7-8 % employment quota for the inhabitants of the province. In the future the company would also entertain the resumes of engineering and technical graduates at its depots in order to provide greater convenience to the inhabitants of these areas. Additionally, as part of the company’s commitment to provide uninterrupted fuel supplies to all corners of the country, he promised to re-open the Khuzdar depot in order to get rid of any product dry-out situations at PSO retail outlets in Quetta and its surrounding areas.
T h e Assembly members commended the MD for his proactive strategies and assured him of their support for his future plans. PSO in its role of being both a public sector as well as the largest energy company in Pakistan today is committed to meeting the fuel needs of the country in a timely and responsible manner.
SBP, Bank of Korea sign accord to boost cooperation KARACHI: Governor State Bank of Pakistan (SBP), Yaseen Anwar, and the Governor Bank of Korea (BOK), Choong Soo Kim signed a Memorandum of Understanding (MoU) on Cooperation and Technical Assistance between the two central banks in Seoul, Korea. Signing of this MoU coincides with the visit of the President of Pakistan, Mr. Asif Ali Zardari to the Republic of Korea, says a statement issued by the Pakistani central bank. The MoU stipulates that the two central banks will share experiences and provide technical assistance in their conduct of central banking business, including monetary management, the payment and settlement systems and foreign exchange reserve management. The MoU lays down the foundations of close cooperation between the two central banks in all areas of mutual interest. The MoU will make a significant contribution in strengthening the close relationship between the two countries. ONLINE sador in Korea and other senior officials. Meanwhile a delegation of Korean company Echo One headed by its Chief Executive Officer Zhin Ensok also called on President Zardari. They discussed prospects for the business and investment opportunities in Pakistan.
Iran to boost trade with Pakistan ISLAMABAD ONLINE
Tehran is to review trade policies related to Pakistan later this month in a conference to hammer out all issues hampering trade and boost bilateral trade, a top official of Iran said. Pakistani business community should participate in the moot to help formulate appropriate trade policy for ensuring sustainable trade between the two countries, said head of the visiting Iranian delegation Alaeddin Broujedri, Chairman National Security and Foreign Policy Committee. Speaking to business community at FPCCI Capital Office, Broujedri said that all the issues being faced by Pakistani business community will be forwarded to Parliament for swift resolution. Senator Mushahid Hussain, VP FPCCI Mirza Abdul Rehman, Iranian Ambassador Alireza Haghighian, Chairman Coordination Atif Ikram Sheikh, former president FPCCI Mian Habibullah, former VP FPCCI Zubair Ahmed Malik, Chairman Media and Diplomatic Affairs FPCCI Malik Sohail, VP RCCI Ch. Pervaz Ahmed Waraich, Adnan Iqbal President Gujrat Chamber and Presidents and Vice Presidents of ACCI, IWCCI and traders of Blue Area and other markets were also present on the occasion. Borojourdi said that Iran was committed to the gas pipeline with Pakistan and also offered to help constructing the pipeline in Pakistan as well by providing a total of $500 million dollars. We are looking forward to the visit of President Asif Ali Zardari to Tehran on Dec 07 to finalised key agreement on the multi-billion dollar gas pipeline, he informed. He said that once Iran gas starts flowing in Pakistan; it will settle the problem of energy scarcity in Pakistan.
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Is PakIstan PayIng 20% more to ImF? Rupee depreciation hikes up IMF loan value by 20-22% ISLAMABAD
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ONLINE
HE constant value depreciation of rupee against dollar has raised the International Monetary Fund (IMF) loan by 20 to 22 percent, say sources. The government has so far paid back a total of $2.52 billion to IMF from the foreign currency reserves held by the State Bank of Pakistan (SBP). Finance Ministry official told that at a time when country entered in a Stand-by Arrangement (SBA) facility with the IMF in November 2008 dollar valued
about Rs79, which has by now jumped to Rs.96. The official said the country’s foreign exchange reserves will also continue to face pressure due to re-payment of IMF loans in the next more than three years as Pakistan is likely to go to the International Monetary Fund in fresh loan in current fiscal year 2012-13 to seek loan for the retirement of IMF’s Stand-by Arrangement (SBA) facility. Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7
Business 02 Major Gainers COMPANY UniLever Pak Mithchells Fruit Shezan Inter. Salfi Textile Engro Foods Ltd.
HIGH 9900.00 367.50 459.00 122.65 91.30
LOW 9700.00 359.99 430.00 122.65 87.88
CLOSE CHANGE 9803.56 -1.44 367.50 17.50 446.96 6.96 122.65 5.84 91.30 4.34
TURNOVER 12,020 4,000 4,600 500 6,741,500
590.00 265.55 317.90 111.20 380.00
590.00 265.30 310.00 111.15 356.25
590.00 265.50 310.00 111.15 357.00
-30.00 -9.50 -9.00 -5.85 -18.00
100 500 3,000 1,000 51,600
17.40 19.29 7.48 6.97 10.80
16.91 18.35 7.21 6.80 10.15
17.01 18.77 7.23 6.82 10.67
-0.90 0.30 0.04 -0.09 0.55
27,187,500 23,922,500 16,663,500 14,216,500 8,254,000
Major Losers Indus Dyeing Bhanero Tex. Exide (PAK) Blessed Tex. Sanofi-Aventis Pak
billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco. Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.
OPEN 9805.00 350.00 440.00 116.81 86.96
620.00 275.00 319.00 117.00 375.00
Volume Leaders P.T.C.L.A Jah.Sidd. Co. Lotte PakPTA Fauji Cement Byco Petroleum
17.91 18.47 7.19 6.91 10.12
Interbank Rates US Dollar UK Pound Japanese Yen Euro
96.6587 155.5625 1.1753 126.5359
Dollar East BUY
Asian shares lacklustre, capped by US budget worries TOKYO
A
AGENCIES
SIAN shares were little changed on Wednesday, with prices capped by continuing concerns over whether the United States can avert an economic slump as lawmakers struggle to break a budget impasse by year end. Investors will look at a private survey of China’s growing services sector due around 0145 GMT on Wednesday for more signs the world’s second-largest economy is recovering from lows. MSCI’s broadest index of Asia-Pacific shares outside Japan was nearly flat, with a 0.4 percent gain in Australian shares and a 0.1 percent drop in South Korean shares. Japan’s Nikkei stock average opened down 0.6 percent. “The market lacks news that could add to the momentum seen in late November. Investors’ focus
will remain on whether U.S. politicians will unravel the fiscal cliff problem,” said Kim Hyeongryeol, an analyst at Kyobo Securities. U.S. stocks slipped on Tuesday as investors worried about Washington’s ability to avoid
a year-end budget crisis, which threatens to push the economy back into recession, but a Greek plan to buy back debt pushed the euro to a seven-week high of $1.3109 on Tuesday. The pan-European FTSEurofirst 300 closed flat, off a 17-
month intra-day high, possibly pausing before a renewed challenge on technical resistance levels into the year-end. Commodities struggled as weak U.S. manufacturing data and uncertain U.S. budget talks raised further concerns about the world economy. The White House and Republicans remain at odds on how to avoid a $600 billion “fiscal cliff” of budget cuts and tax increases set to take effect on Dec. 31. President Barack Obama dangled the possibility on Tuesday of lowering tax rates in 2013 with a broad U.S. tax code revamp, but stood firm on insisting rates for the wealthiest must rise as part of a budget deal with Congress. “He was relatively conciliatory, proposing a two stage approach of a short-term gain for both sides, then deal with the bulk of the problem in 2013,” Sebastien Galy, currency strategist at Societe Generale, said in a note to clients.
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
96.90 125.34 154.45 1.1621 96.27 12.25 26.16 25.66 99.92
97.40 126.88 156.31 1.1761 97.94 12.46 26.45 25.90 102.58
Oil prices up in Asian trade SINGAPORE: Oil prices were higher in Asian trade on Wednesday as the euro strengthened against the dollar but sentiment was weighed by uncertainty over untangling a gridlock in US budget talks. The euro extended gains as markets cheered the European Union’s extension of Greece’s deficit targets and concerns over the US economy drove investors toward the single currency. A stronger euro makes dollar-priced oil cheaper, boosting demand and leading to higher prices. New York’s main contract, light sweet crude for delivery in January was up 40 cents to $88.90 a barrel in afternoon trade and Brent North Sea crude for January climbed 23 cents to $110.07. Analysts said however that sentiment was weighed down by the budget impasse in Washington. They fear that the US economy — a key engine for global growth — will lurch back into recession if no deal is reached between the Republicans and Democrats to avert the year-end “fiscal cliff” of significant tax increases and spending cuts. “We continue to think that more pressure is needed for both parties to reach a solution. That is why we do not expect to get better visibility on the shape of a potential deal until much closer to the end of the year,” Dutch bank ABN Amro said in a market note. AGENCIES
CORPORATE CORNER Silverstone Construction unveils Acumen, JS host selection vision for 1st food boulevard, mall conference for fellows programme
generation of Pakistani leaders who see opportunities where others see only challenges,” said Farrukh Khan, Country Director, Acumen Fund Pakistan. “It is invigorating to see the amount of interest we have received, both in number and quality of applicants from across Pakistan. We are grateful for the overwhelming support from our partners and local communities. Through this collaboration, we are broadening the community of leaders with financial skills, operational excellence and moral imagination to address pressing social and leadership issues faced by Pakistan today..”
PTCL holds customer awareness drive KARACHI: Silverstone Construction Co hosted a curtain raiser event at a local 5 star Hotel in Lahore for their new venture “THE PALM”. The project is situated in the heart of the city in Saddar on the prestigious Mall Road, Rawalpindi. The 1500 Sq.Yards commercial complex with a covered area of 18000 Sq.ft per the plan provides a complete dine-in facility. The latest offering by Silverstone is the new landmark of Rawalpindi and offers a one of a kind dining experience in the heart of Rawalpindi. The event was well attended by the restaurant owners and top business community of Lahore and adjoining cities of Sialkot, Gujranwala, Gujrat, Faisalabad and Multan. “The Palm” is an initiative of Silverstone Construction Co that will not only provide entertainment to the residents of Rawalpindi and Islamabad, but will also support tourism and communicate a soft image of Pakistan.
KARACHI: Acumen Fund, a pioneering nonprofit global venture firm addressing poverty across Africa and in South Asia, held a selection conference today in Karachi as part of the process to identify the inaugural class of Pakistan Fellows. In partnership with JS Bank, Mahvash & Jahangir Siddiqui Foundation and the Edmond de Rothschild Foundations, Acumen is working to develop the next generation of social change leaders who are building innovative businesses and strong institutions across Pakistan. The first cohort of Acumen Fund Pakistan Fellows will include 20 individuals who are actively driving social change initiatives in Pakistan to participate in the year-long fellowship. Fellows then directly apply learnings from the fellowship to the work they are doing as social entrepreneurs and leaders within the private, NGO and government sectors. “This new program is designed to support a new
ISLAMABAD: Pakistan Telecommunications Company Limited (PTCL) held a special customer engagement and product awareness drive in Islamabad. As part of this drive, PTCL organized one day stalls and distributed brochures of PTCL wire-line and wireless products amongst the public. Visitors were also given firsthand experience of PTCL products and services by courteous PTCL staff. Recently, PTCL also installed a PICO BTS at a local restaurant situated here in Pir Sohawa, so
that customers can experience its wireless services on the go. This new BTS supports all EVO products and Vfone services of PTCL. The campaign covered major commercial areas of the city including Pir Sohawa. Customers also placed orders taking advantage of this marketing campaign.
JWT Pakistan conducts comprehensive research on youth KARACHI: The door-to-door survey was conducted between June 7 to June 18, 2012, across 8 key cities of Pakistan , including Karachi, Hyderabad, Lahore, Islamabad, Multan, Faisalabad, Quetta and Peshawar. Please find attached full presentation of the survey and its summary in the form of a press release. I am sure you will find it very interesting and will surely loves to share this with your readers. The survey is also available on online at www.jwt.com/atimeforchange . Please feel free to contact if you have any queries/questions related to this survey.
ISLAMABAD:Dr Asim Hussain Advisor to PM on Petroleum and Natural Resources and M Moin Raza Khan Chairman Annial Technical Conference 2012 addressing in the inaugural session of ATC-2012
Thursday, 6 December, 2012