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Pakistan Steel Mills will not be privatised – Qamar Zaman Kaira
MCB likely to post Rs 22b profit for CY12
BUSINESS Thursday, 7 February, 2013
Rain, floods in punjab and sindh erode cotton output by 9pc KARACHI: The cotton bales produced up to February 1 were counted at 12.38 million against 13.62 million arrived till the same date of last year. This, according to Pakistan Cotton Ginners Association (PCGA) data, depicts a decline of nine percent yearon-year in the cotton arrivals. According to PCGA figures, the cotton arrivals during the current season remained subdued. A massive decline of 18% YoY in cotton arrival from Punjab was the main reason behind the fall, since the province contributed 73% (9 million bales) to the total. “During the current season lower part of Punjab and upper part of Sindh were badly affected by heavy rains, therefore, a flood-like situation damaged cotton production,” said analysts at InvestCap Research. However, they said, a massive surge in the cotton arrival from Sindh as a whole supported the production, posting a handsome increase of 29%YoY to 3.35mn bales. That said, despite low cotton production during the season, prices of cotton remained near Rs 6000/maund level as the available cotton inventory in the local market is currently sufficient to satisfy local demand. STAFF REPORT
ssGCL clarifies position on Unaccounted for Gas
KARACHI: In response to a statement issued by OGRA maintaining that Unaccounted for Gas (UFG) occurring in the SSGCL system is twice the OGRA specified target of 4.5%, SSGCL clarified the information of all concerned that the current actual UFG of its domestic and small commercial customers is estimated at about 4 times the OGRA specified target while for other customers it is half of the OGRA specified target. SSGCL has pointed out that UFG figures are given in its actual accounts which gives the region-wise UFG in percentage terms. SSGCL believes that UFG mainly results from socio-economic factors, saline soil conditions and third party damages/tampering which translates into higher UFG in its distribution system for domestic and small commercial customers. If SSGCL is allowed to take decisions on pure commercial considerations, the UFG can be brought down below the OGRA specified target. SSGCL maintains that according to the Chicago Gas Institute UFG of 1% to 3% is considered low, 4% to 6% is considered reasonable and above 6% is considered excessive.STAFF REPORT
KARACHI: Consul General of Germany Tilo Klinner poses for a group photo with Karachi Stock Exchange MD Nadeem Naqvi and others during his visit to KSE. ONLINE
KARACHI: Muslim Commercial Bank (MCB), which is due to announce its full year CY12 results on Thursday (today), is expected to post a profit after tax (PAT) of Rs 22.1 billion. The bank’s expected PAT, market analysts said, would translate into a diluted earning per share (EPS) of Rs 24.03, marking a significant increase of 14 percent year-onyear. “We expect the bank to post PAT of Rs22.1 billion translating into a diluted EPS of Rs 24.03, up by a significant 14% YoY,” said a report issued by the InvestCap Research on Wednesday. It said whereas the net interest income of the bank was expected to slide by 8%YoY, the bank’s profitability was to be driven by lower provisions, expected to fall by 89%YoY in CY12, along with 22% increase in non-interest income. The report said the enhancement in the bank’s non-interest income was mainly led by expectations of improved commission and brokerage income on the back of improved performance by the market witnessed in CY12. Furthermore, it said, the bank was expected to announce a final cash dividend of up to Rs4/share taking the full year payout to Rs14/share. On a quarterly basis, PAT was expected to inch up by 2% in the fourth quarter of CY12 to a level of Rs 5,431 million, translating into an EPS of 5.90 per share. STAFF REPORT
China iMpoRts 25% of RiCe fRoM pakistan in 2012 BEIJING
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HE Chinese Customs data showed that the country has imported 25 percent of rice from Pakistan in 2012. Pakistan followed Vietnam in the staple crop while Thailand stood third. 66.7 percent of China’s rice imports were from Vietnam, 25 percent from Pakistan and 7.6 percent from Thailand last year, respectively. The Ministry of Agriculture (PRC) said China’s rice imports, which used to be dominated by Thai rice favoured by highend consumers, turned to overseas markets for low price. Rice prices in China started to outpace
those in Vietnam and Pakistan last year due to a stronger yuan and steady price hikes in the domestic market, it said China’s rice imports more than quadrupled from the previous year to reach 2.32 million tonnes in 2012, marking the largest amount of such imports since 2000, the latest customs data revealed. Because the imports only accounted for a small share of international rice trade, as well as domestic production and consumption, they will not have an obvious impact on the global grain market or affect the domestic rice market, said a statement from the ministry. Meanwhile, China’s grain output rose for the ninth consecutive year last year, with rice output up 1.6 percent year on year, which has contributed toward making rice supplies generally sufficient, said the statement.
PM urges smooth procedures to lure foreign investors ISLAMABAD
critical to the growth of the economy. The prime minister said the present process of approval of projects was cumPrime Minister Raja Pervez Ashraf while bersome and involved a large number of departments before a project could see presiding over the 6th Board of Inthe light of the day. This, he said, vestment (BoI) meeting on was discouraging investors Wednesday said the BoI and needed to be simplified. should be further strength“WE NEED TO WORK “We need to work on a one ened and directed it to ON A ONE WINDOW window system where the evolve a mechanism to SYSTEM WHERE THE investor can be provided become more effective in INVESTOR CAN BE all necessary information facilitating investments PROVIDED ALL and facilities”, remarked in the country. The prime NECESSARY Ashraf. He directed the buminister said it was ironic INFORMATION AND reaucracy to work on simplithat Pakistan, which had FACILITIES” fication of procedures by one of the best investment revisiting the existing processes policies on paper, failed to attract without compromising on transparency foreign investment. The board in its meeting held an in- so that the investors were comforted. Representatives of the private secdepth discussion on ways and means to attract investment in the country which is tor assured the prime minister that they AGENCIES
are prepared to share their experience and expertise to ensure implementation of government’s investment-friendly policies. The minutes of the 5th BoI Board meeting, appointment of professionals and details of expenditure incurred from the board fund so far were confirmed during the meeting. The new members from the private sector who participated in the meeting included Vice President FPCCI Haroon Rasheed Shaikh, CEO Bank Alfalah Atif Bajwa, Advocate Supreme Court of Pakistan Syed Faisal Hussain Naqvi, Vision Air CEO Capt. Ijaz Ali Faizi, Sapphire Group Chairman Muhammad Abdullah, Saif Group of Companies Chairman Javed Saifullah Khan, Pakistan Mining Exploration Corporation Chairman Agha Shahid and Karachi Stock Exchange Board Chairman Munir Kamal.
Govt borrows over Rs 223b from banks KARACHI: The cash-strapped government on Wednesday borrowed over Rs 223 billion from the banks to cater to its everburgeoning budgetary needs. The federal finance ministry raised over Rs 223.162 billion from primary dealers through auctioning the Market Treasury Bill of 3, 6- and 12-month maturities. The central bank auctioned the T-bills setting the cut-off yield at 9.0942, 9.1645 and 9.2553 percent, respectively, for 3, 6 and 12 months papers. The primary dealers, mostly the otherwise cash-strapped banks, responded well and offered a surplus amount of over Rs 315.162 billion to the government their prime focus being the mid-term (6-month) government papers against which bids of over Rs 168.936 billion were received. The central bank, however, accepted bids of Rs 69.198 billion against the 3-month papers, Rs 141.863 billion against 6month and Rs 12.100 billion against 12-month securities in Wednesday’s auction. STAFF REPORT
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There is a high need of resetting the priority of energy supply in the country in the larger interest of the national economy – PTEA Chairman Asghar Ali
indian cabinet to consider spV for tapi project NEW DELHI: Struggling to get global energy majors who can build the USD 9 billion TAPI gas pipeline, its four promoter nations have decided to float a special purpose vehicle to keep the transnational project alive. The SPV, TAPI Ltd, will be formed with Turkmenistan, Afghanistan, Pakistan and India pumping in $5 million equity each. India will be represented by state-owned GAIL India Ltd. The proposal for formation of the Dubai-based SPV and GAIL being the Indian nominee is listed for consideration of the Union Cabinet for its meeting slated for tomorrow, official sources were quoted as saying. The issue however may not be taken up as Oil Minister M Veerappa Moily is in the US on a 10-day visit. The SPV is being considered for the project as no multinational company is willing to participate in the project unless they get a share in Turkmenistan’s rich gas fields. While Turkmenistan, Afghanistan and Pakistan are of the view that the four promoters could build and operate the pipeline on their own, India has insisted that the project be taken up only if a multinational company leads it. New Delhi does not want to be at the mercy of Afghanistan and Pakistan for its gas needs and also feels that none of the nominee companies of the four countries have the financial and managerial capability to execute the project. Sources said TAPI Ltd would scout for a consortium leader who will build and operate the project, while the US government would pursue Turkmenistan to get upstream equity for its multinational. ONLINE
Microfinance witnesses robust growth in pakistan ISLAMABAD
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ONTRARy to the other parts of the world, microcredit sector has witnessed a robust growth in Pakistan, which has been ranked by the Economic Intelligent Unit among the top countries for offering conducive environment for microfinance sector growth. According the latest report of Microcredit Summit Campaign, just about 13 million world’s poorest families received access to microcredit and other financial services in 2011. The report titled “Vulnerability: The State of the Microcredit Summit Campaign Report 2011” however observes that microcredit sector has registered a considerable progress in Pakistan. As a sector developer, Pakistan Poverty Alleviation Fund (PPAF) is in the driving seat to control the trajectory and disbursed over Rs 14 billion during the year under review resulting in an increase of Rs 2,545 million in the outstanding loan portfolio and contributing almost 76 percent of the total increase witnessed by the microfinance sector in Pakistan. PPAF is the strategic and exclusive partner of Microcredit Summit Campaign for reporting and in terms of realising its aims and objectives. Since
its inception, PPAF has disbursed more than $850 million through 5.2 million microcredit loans. Currently, almost half of Pakistan’s microfinance market share is financed by PPAF through over 50 microfinance banks, microfinance institutions and other civil society organisations in 92 districts across the country. It is for the first time since 1998, when the Microcredit Summit Campaign began tracking this data, the total number of clients and number of the poorest families reached has declined. The total number of clients was reported to have fallen from 205 million to 195 million and the sub-set of families living in extreme poverty, defined as less than $1.25 a day, from 137 million to 124 million. According to the report, most other parts of the world saw moderate or slowed growth, with the exception of 1.4 million new clients in Sub-Saharan Africa. Despite this reverse in 2011, microfinance institutions still provided microloans to more than 124 million households living in extreme poverty. Assuming an average of five persons per family, this means that more than 621 million people were affected; this is twice the entire population of the United States. The report argues that getting the industry back on track will require a new understanding of clients’ needs, preferences and aspirations as well as designing new tools for delivering products and services at lower costs.
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BUSINESS B Thursday, 7 February, 2013
Major Gainers COMPANY UniLever Pak Rafhan Maize Prod. Wyeth Pak Limited Bata (Pak) Unilever Food
OPEN 10000.00 3550.00 900.00 1400.00 4080.00
HIGH 10100.00 3600.00 945.00 1449.95 4100.00
LOW 10000.00 3550.00 945.00 1375.50 4100.00
CLOSE 10075.00 3600.00 945.00 1445.00 4100.00
CHANGE 75.00 50.00 45.00 45.00 20.00
TURNOVER 280 120 50 350 20
4701.00 567.63 182.88 155.00 350.00
4701.00 567.63 182.88 155.00 340.10
4701.00 567.63 182.88 155.00 342.01
-210.50 -29.87 -9.62 -7.00 -6.14
20 300 1,500 500 2,300
3.57 8.28 3.48 20.38 4.88
2.91 7.30 2.99 19.49 4.51
3.49 8.28 3.34 20.31 4.56
0.63 1.00 0.35 0.92 0.13
53,424,500 33,858,000 24,513,000 22,912,500 20,275,500
Major Losers Nestle Pakistan Ltd. Indus Dyeing Gatron Ind. Sunrays Textile Exide (PAK)
4911.50 597.50 192.50 162.00 348.15
Volume Leaders WorldCall Telecom 2.86 TRG Pakistan Ltd. 7.28 Wateen Telecom Ltd 2.99 P.T.C.L.A 19.39 Telecard Limited 4.43
Interbank Rates USD GBP JPY EURO
PKR 97.8551 PKR 153.2705 PKR 1.0430 PKR 132.3882
Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.10 132.58 153.60 1.0465 97.94 12.53 26.80 26.30
SELL 99.80 134.91 156.26 1.0640 100.27 12.82 27.22 26.66
CORPORATE CORNER
KARACHI: Ameena Sayyad, chairperson of Oxford Press, addresses a press conference on the Karachi Literature Festival on Wednesday. Arts Council President Ahmed Shah is also seen in the picture. STAFF PHOTO
said Sheikh Ahmed. “For many years, Emirates has been at the forefront of sports partnerships across the world. With the addition of this global partnership with the Formula One group we are continuing to expand our sponsorship portfolio, which I’m sure will be appreciated by sports fans. Today’s Formula One partnership follows on from our recent sporting announcements such as resigning a multi-year sponsorship agreement with Arsenal Football Club, being a sponsorship partner of the 2014 Commonwealth Games and becoming the Official Airline of the ATP World Tour tournament.” As part of the Formula 1® Global Partner agreement, branding will be displayed on circuit bridges and associated ground signs and Emirates will make full use of the world-renowned Formula One Paddock Club™. PR
emirates moves up a gear Canada pakistan with formula 1® Global Business Council hosts partner agreement lunch for sM Muneer
Xpress Money announces guaranteed cash prizes for remittance receivers
AGRA: (From L-R) Subodh Bhargava, Chairman Tata Communications & Board Member, Tata Motors & Tata Steel, Muhammad Azfar Ahsan, CEO, Nutshell Forum & Founder, Pakistan India Management Council, Amin Hashwani, President, Pakistan India CEOs Forum and Rajiv Kaul, Chairman, Nicco Corporation India at the Partnership Summit in Agra, India hosted by Confederation of Indian Industry & Ministry of Commerce India and attended by 1500 delegates from all over the world. PR
KARACHI: Xpress Money, one of the most dependable global money transfer brands, has launched an exclusive 95 -day long promotional bundle in Pakistan offering customers an array of freebies to be won every month. The promotion is valid from January 26 to April 30 2013 during which period customers using the Xpress Money network will be awarded a guaranteed cash prize of PKR 100 on every cash-pickup from any of the 285 branches of Telenor across the country. Apart from this, customers also stand a chance to win prizes from a bouquet of over 125 mobile phones, five motor cycles and one free Umrah ticket in monthly raffle draws. “Pakistan is a significant for Xpress Money, which in the last few years has developed manifold due to the large number of remittances sent in by thousands of hardworking Pakistani expatriates who work abroad. It is due to their support that today Xpress Money is the leader in the money transfer business in Pakistan. PR
UBL oMni gets 2nd consecutive nomination for GsMa Global Mobile award pappaRoti launches
KARACHI: Emirates, one of the world’s fastest growing airlines, and the Formula One group have announced a five year agreement appointing Emirates as a Global Partner of Formula 1® starting with the imminent 2013 season. The announcement was made today by HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline & Group and Bernie Ecclestone, Chief Executive Officer of the Formula One group. Emirates will have a strong branding presence at 15 races on the 2013 FIA Formula One World Championship™ calendar across Europe, Asia, Australasia, North America and South America. Starting at the Grand Prix™ in Malaysia (22-24 March 2013), the distinctive Fly Emirates branding will be seen at historic circuits such as Silverstone in Great Britain, Monza in Italy and Interlagos in Sao Paolo, Brazil. “This is an exciting global opportunity to align two world leading brands. The ambition, cutting-edge technological standards and worldwide reach of Formula One go hand in hand with Emirates’ vision and ambition,”
The Canada Pakistan Business Council (CPBC) hosted a lunch in honour of SM Muneer on January 17 at the Richmond Hill Country Club. Muneer served as President of Federation of Pakistan Chamber of Commerce & Industry (FPCCI) and is currently the President of India-Pakistan Chamber of Commerce & Industry (IPCCI) and is Vice Chairman for the MCB Bank Limited of Pakistan. Muneer has played a leading role in previous Trade Missions to Canada and the first ever single county exhibition in Canada. He has facilitated, received and hosted many trade missions from Canada to Pakistan. The meeting was attended by Senator Salma Attaullah-Jan; the Consul General of Pakistan, Mohammed Nafees Zakaria; MPP Dr. Shafiq Qaadri; the Canadian International Development Agency (CIDA) Director for Pakistan, Jacob Thoppil; President of the Mississauga Board of Trade, Sheldon Leiba; and CPBC Board members, advisors, special guests and media representatives. PR
KARACHI: UBL Omni has been recognized at a global level yet again, with a nomination for the 18th GSMA Global Mobile Awards 2013 to be held in Barcelona, Spain on 26th February. This is the single largest annual event in the mobile industry organized by GSMA spanning over 220 countries and uniting nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem. UBL Omni has been short-listed at the GSMA in the category of “GSMA mWomen Best Mobile Product or Service for Women in Emerging Markets” for transparent and efficient loan repayment & cash grant disbursement services. UBL Omni is one of the pioneering players of Pakistan’s Branchless Banking sector that offers G2P disbursements, corporate cash collections, salary disbursements, mobile accounts, money transfer and bill payment services. Omni also caters to financial needs of underprivileged women by facilitating the government and other international donor agencies in providing loan repayment and cash grant facility aimed at the underserved. Atif R. Bokhari, President & CEO, UBL said, “It is a great honour to be nominated for a second consecutive year at the prestigious GSMA awards that truly recognizes the world’s best offerings in mobile for the given category.” PR
in pakistan
KARACHI: PappaRoti an international chain for buns and an array of options for beverages has opened at Dolmen Mall Clifton, Karachi with its “versatile assault on the senses”. The signature buns café extends its success story further after setting up over 400 PappaRoti cafes and kiosks across the globe - an absolute testament to the brand’s appeal. Exclusive rights to open nationwide chain of PappaRoti in Pakistan are acquired by Zahdan Retail, a company of Zahdan Group (Pvt) Ltd. PappaRoti is the flagship Café of PappaRoti Trading Sdn. Bhd. and PappaRoti (M) Sdn. Bhd - Malaysia. PR