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DISCUSSING ALL THINGS FISCAL
Get your act together! System of international financial safety nets needs to be reorganised: ADB g
ISLAMABAD ONLINE
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he system of international financial safety nets needs to be reorganized to ensure sufficient liquidity to combat systemic crises, said by Asian Development Bank
(ADB) seminar’s speakers. “International and regional financial safety nets have become much more important in an era of globalized financial markets and volatile capital flows,” said ADB Chief economist Changyong Rhee. “To enable developing Asia to ride out financial storms, what is needed is a new,
flexible system that is truly international and adequately financed.” Speakers at the seminar, co-sponsored by the International Monetary Fund (IMF) and Philippines Central Bank, emphasized that reform of the international financial system had become more pressing since the 1997–98 Asian financial crisis to prevent localized crises from spreading to the global economy. The crisis prompted ASeAN+3 countries to launch the Chiang Mai Initiative (CMI) in 2000 to provide emergency liquidity. The initiative began as a bilateral currency swap facility, but after the 200809 global economic crises it grew into a multilateral facility, the Chiang Mai Initiative Multilateralisation (CMIM). On 3 May, ASeAN+3 announced a doubling of the CMIM to $240 billion and an increase
Monday, 07 May, 2012 in the amount countries can access without IMF conditionalities. The network of financing arrangements, however, remains a work in progress, as seen by the numerous reforms since the 2008-09 crises, the audience heard. The challenge is to find a solution that provides the needed support to countries without giving rise to undue risk, such as the IMF lending facilities targeted to countries with a track record of sound policies. Panelists discussed how the current system could be reformed and what role existing and new regional financing mechanisms would play. Other issues touched upon included how reforming international financial safety nets could lead to progress on important global macroeconomic issues and how reform would affect exchange rate policy and international capital flows.
It figures
Budget delaying excuse numero uno g
Controversy over finalisation of macroeconomic figures likely to delay budget ISLAMABAD
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ONLINE
he controversy triggered over finalization of macroeconomic figures is likely to delay the presentation of next federal budget till the first week of June, said an official, requesting anonymity. Budget was to be presented on May 25th this month but due to controversy triggered over rebasing date is create fear of delaying the presentation of federal budget till first week of June.
According to sources familiar with the matter told Online Saturday that Finance Ministry has also sought one week delay in presenting the federal budget while citing delay in budget making process. “Federal Minister for Finance and Deputy Chairman Planning Commission had expressed their displeasure over the National Accounts Committee’s decision for approving GDP growth rate at 3.2 per cent,” said the official, adding that due to these angry economic managers the National Accounts Committee’s approved
decisions had revived in the meeting of the Governing Council of the Pakistan Bureau of Statistics (PBS) which was held on May 04. The Meeting of National Accounts Committee (NeC) was held last month on April 26 and approved Gross Domestic Product (GDP) growth figure at 3.2 per cent. A meeting of the Governing Council of the Pakistan Bureau of Statistics (PBS) was held on 4th May, under the chairmanship of the Minister for Finance Dr.Abdul hafeez Sheikh. In the meeting the Members of the Council
raised many observations and concerns regarding the methodology, the quality of primary data base on various sectors of the economy, analytical framework and the restructuring steps taken by PBS to adjust the GDP of the past 10 years. The Council also expressed concerns on lack of adequate consultations with stakeholders including academia and multilaterals on the technical aspects prior to taking rebasing data to the National Accounts Committee as was done during the previous rebasing exercise.
DATA DIve
Stocks, oil slump on weak jobs data NEW YORK
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REUTERS
lOBAl stocks swooned and crude oil tumbled on Friday after a weak U.S. jobs report and data that suggested a deeper recession across the than previously thought dented sentiment. Major U.S. and european stock indexes fell more than 1 percent, oil slumped about 4 percent and government debt prices jumped after the labor Department said American employers reduced hiring more than expected in April. The week was the worst this year for Wall Street stocks, with energy leading the decline. The S&P energy index .GSPe of 44 gas and oil-related companies fell 2.2 percent on fears a worsening economy would sap demand.
“We have broken through key technical levels here after a disappointing employment report and the PMI number from europe which suggest that the recovery is stalling and could affect energy consumption,” said Gene McGillian of Tradition energy. Just 115,000 workers were added to payrolls last month, or 55,000 less than economists expected. While the unemployment rate fell one-tenth of a point to 8.1 percent, a three-year low, that was only because the workforce shrank as people retired or stopped seeking work. The third straight monthly decline in hiring growth spurred concerns that the U.S. economy is losing momentum and doused hopes that a stretch of strong winter hiring had signaled a turning point for the U.S. recovery. The Dow Jones industrial average closed down 168.32 points, or 1.27
percent, at 13,038.27. The Standard & Poor’s 500 Index fell 22.47 points, or 1.61 percent, at 1,369.10. The Nasdaq Composite Index slid 67.96 points, or 2.25 percent, at 2,956.34. The U.S. jobs data added to the gloomy tone from europe, where purchasing managers’ indexes, primarily covering services, suggested a recession across the euro zone could extend to mid-year and be deeper than previously imagined. Markit’s eurozone Services PMI, which gauges business activity over a month, came in at 46.9 for April, sharply lower than 49.2 in March. Anything below 50 signifies contraction. The JPMorgan Global Purchasing All-Industry Output Index of about 20 countries showed declines in April from March. In europe, the pan-european FTSeurofirst 300 index closed down 1.7 percent at 1,027.15, and the euro STOXX 50 index fell 1.7
percent to 2,248.34 , despite strong earnings from Royal Bank of Scotland (RBS.l), BNP Paribas (BNPP.PA) and lafarge (lAFP.PA). MSCI’s all-country world equity index .MIWD00000PUS fell 1.5 percent to 321.72. Benchmark in london fell to three-month lows around $113 a barrel, its steepest weekly fall since December, after the weak jobs report. Brent’s slide took three-day losses to more than 5 percent. While the downbeat data weighed, traders said a combination of less-definitive factors - from confusion over margin changes to the breach of the 200-day moving average compounded selling. Brent settled down $2.90 at $113.18 a barrel, lows last seen in early February. U.S. crude settled down $4.05 at $98.49 a barrel. Some analysts said the jobs report, which followed weaker-than-expected
CommeNT
Careful with tapi
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T’S not that tapi is inappropriate, it’s just that it might not be the most appropriate of things right now. Pipelines are good, and we definitely need a lot more of those. And a lot many of them will pass through countries surrounding us to get to us. And some of the time some of them might not be our best friends. What is more, some of them might not even be their own best friends. like in Afghanistan, where some of them are sure to blow up parts of it, which is why tapi’s been prompting clearing of throats at board meetings for almost two decades. A pipeline like tapi is likely to be to Pakistan what radio-therapy is for people who can’t afford it, in places where it’s not available for free. It’s going to be very expensive. And even the most lenient risk assessments will almost certainly guarantee 100 per cent chances of attack/sabotage. Is it really what should draw our funds – harder to get hold of with time – especially when movement on the other, good pipeline (IranPakistan) is still slow for some reason and it’s longevity seems increasingly in doubt? Still, we do need gas, so we will need these pipelines. Perhaps that’s the call in Islamabad, the donors’ nod indicating the plan sits well with them as well. expect serious announcements in Afghanistan soon, about how the American withdrawal will be followed by reconstruction on an unprecedented scale, how acts of terrorism like blowing up pipelines will become things of the past. Come to think of it, should Afghanistan’s use as pipeline host be accompanied by a visible improvement in people’s lives, why would anybody have a problem with it? Perhaps a serious turnaround in Afghanistan is really around the corner. Perhaps Islamabad has come to buy this narrative, at the very least.
services sector data this week, will fuel hopes for a third round of stimulus, or quantitative easing, by the Federal Reserve to keep rates low and to foster growth. “The data in the U.S. is weakening somewhat. It puts into play that if the economy in the U.S. continues to weaken then Qe3 will be on the table, so there are really no sellers of Treasuries,” said Charles Comiskey, head of Treasuries trading at Bank of Nova Scotia in New York. The benchmark 10-year U.S. Treasury note rose 16/32 in price to yield 1.88 percent, and the 30-year U.S. Treasury bond gained almost a full point in price to yield 3.07 percent. Gold rose as the weak data boosted bullion’s investment appeal on talk that a weaker economy might prompt further monetary easing by the Fed. U.S. gold futures for June delivery settled up $10.40 an ounce at $1,645.20. The dollar slipped against the yen in volatile trading after the payrolls number, with the U.S. currency down 0.45 percent at 79.83 yen. The U.S. dollar index .DXY rose 0.33 percent at 79.481. The euro was down 0.47 percent at $1.3088.
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Monday, 07 May, 2012
news KCCI THINKS BIG
Helfen Sie uns! g
Pakistan seeks Germany’s support for Pak-eU Investment Treaty KARACHI
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Wall Street posts worst week of 2012 as job growth slows NEW YORK
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REUTERS
All Street ended its worst week this year with a sharp sell off on Friday after a slowdown in job creation in the world’s top economy raised the biggest question mark yet about the prospects for US growth employers reduced hiring for the third straight month, adding 115,000 workers in April, well below forecasts of 170,000. Traders’ expectations had fallen during the week, but the softer jobs number missed even more pessimistic forecasts. energy shares were the worst performers, with the S&P energy index .GSPe down 2.2 percent on fears a worsening economy would sap demand. Oil fell 4 percent, dropping below $100 a barrel for the first time since February. The sharp retreat this week was a blow to investors who had been hoping the S&P 500 would break out to new recovery highs. The
index is now moving away from strong resistance at the 1,400 level after failing to make a convincing move above it. “When we entered the second quarter, we thought it would be a consolidation/correction quarter for the market simply because it was overbought, over-believed, and we saw economies were not improving, and that is still the case,” said Bruce Bittles, chief investment strategist of Robert W. Baird & Co in Nashville. For the week, the S&P 500 lost 2.4 percent, its worst weekly performance since December. Investors were also cautious ahead of elections in and Greece over the weekend as european policymakers struggle to bring an end to their debt crisis and people rebel against the strain of austerity measures. The utility sector index .GSPU, considered a defensive play, was the only S&P 500 sector in positive territory, up 0.2 percent. Shares of CenterPoint energy () led, up 1.7 percent at $20.05. The Dow Jones industrial average
dropped 168.32 points, or 1.27 percent, to 13,038.27 at the close. The Standard & Poor’s 500 Index lost 22.47 points, or 1.61 percent, to 1,369.10. The Nasdaq Composite fell 67.96 points, or 2.25 percent, to 2,956.34. The selloff came on the highest volume in two weeks. Around 7.02 billion shares were traded on the NYSe, the and the NYSe Amex, above the daily average of 6.76 billion. On the NYSe, decliners outnumbered advancers by a ratio of 3 to 1. On the Nasdaq, four stocks fell for every one that rose. In the oil sector, Chevron Corp () dropped 2.1 percent to $103.72 while exxon Mobil Corp () slipped 1.3 percent to $84.57. Both ranked among the Dow’s top losers, along with other big names in economically sensitive sectors. With this week’s retreat, much of the S&P 500’s gains from the move off the April closing low at 1,358.59 have been erased. The market has found support around that level in the past, but a breach there could take it back to 1,340.
STAFF REPORT
ARAChI Chamber of Commerce & Industry’s President Mian Abrar Ahmad urged the support of Germany for Pak eU bilateral investment treaty in order to fortify trade with the countries of european Union. he stated that Pakistan is the most promising country for investment by German investors. While exchanging views with the First Secretary & head of economic Section of German embassy in Pakistan Samy Saadi said that Pakistan and Germany friendly relations are deep-rooted and encompassed over last many decades. Germans are well aware about the strength of Pakistan which is concealed due to huge propaganda drum beat in the Western media and biased reporting about the perception of Pakistan by western channels in the countries around the globe, he said. he articulated that Pakistan and Germany have upgraded their 50 year old trade and investment treaty for providing better opportunities and protection to each other’s investors. The ‘Agreement on encouragement and Reciprocal Protection of Investments’ will cover all modern and legal requirements that the investor needs to invest in other countries with complete protection. Germany is an important country in european
A
T the moment, America’s economy is limping along with slow growth and high unemployment. Output grew by just 1.5% last year, and real GDP per capita is lower now than before the economic downturn began at the end of 2007. Although annual GDP growth was 3% in the fourth quarter of 2011, more than half of that reflected inventory accumulation. Final sales to households, businesses, and foreign buyers rose at only a 1.1% annual rate, even slower than earlier in the year. And the preliminary estimate for annual GDP growth in the first quarter of 2012 was a disappointing 2.2%, with only a 1.6% rise in final sales. The labor market has been similarly disappointing. The March unemployment rate of 8.2% was nearly three percentage points above what most economists would consider a desirable and sustainable long-run level rate. Although the rate was down
from 9% a year ago, about half of the change reflected a rise in the number of people who have stopped looking for work, rather than an increase in job creation and the employment rate. Indeed, the official unemployment rate understates the weakness of the labor market. An estimated 6% of all employees are working fewer hours per week than they would like, and about 2% of potential employees are not counted as unemployed because they have not looked for work in the past few weeks, even though they would like to work. Adding these individuals to those officially classified as unemployed implies that about 15% of potential labor-force participants are working less than they want. Solid increases in payroll employment at the start of the year contributed to a general sense of confidence. But the rate of increase in payroll employment fell in March to less than half of the rate recorded in previous months, and the number of workers claiming unemployment benefits recently jumped to a four-month high.
Courtesy: Project Syndicate
LCCI talks up marketing techniques LAHORE STAFF REPORT
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N the prevailing global and national economic scenario, winning customer trust and provision of quality products is vital for businesses. Only those businesses would be able to make their presence felt in the national and international market that have grasp over marketing techniques. This was the crux of the speeches made by the experts at two-day Sales Conference organized at the lahore Chamber of Commerce and Industry on Saturday. The speakers included lCCI President Irfan Qaiser sheikh, CeO CeI logistics Amir Munir, hassan Amjad, head of Customer Services Wateen Telecom Ahmad Saeed, CeO Kashf Micro Finance Bank Mudassir Aqil, CeO hotel One haseeb Gardezi while Rehmatullah Javaid was prominent among the panelists. The subjects touched upon by the experts included Customer Relationship, Sales ethics and Fear of Failure or Rejection. They said that swift changes in the global market have
The economy and the presidency MARTIN FELDSTEIN
Union which can help Pakistan for getting concessional regimes in eU, GSP plus and further entering to Preferntial and Free Trade Agreement with the eU with preferred market access, he maintained. First Secretary & head of economic Section of German embassy in Pakistan Samy Saadi recognized the vibrant role of Karachi Chamber to promote trade and industry. he said that many leading German companies including Siemens, MAC, Bayer, linde and other are successfully operating in Pakistan more German companies are expected to invest in Pakistan. he informed that German Trade Show was organized in Punjab to introduce the presence of German companies and similar show is planned in Karachi. MeTRO is further expanding its stores and helping in agriculture sector to farmers, he said. he stated the deliberations were underway and Pak-German Bilateral Treaty will be revised soon. Germany supports Pakistan for GSP plus in eU as well as the signing of Pak-eU bilateral investment treaty. he appreciated that the trade of Pakistan with regional countries would bring economic stability. Within eU Germany has become the biggest trading partner with Pakistan and German investment in Pakistan is likely to rise, he maintained.
even those who are working are seeing their incomes shrink. Real average weekly earnings have fallen in recent months, and are now lower than they were 18 months ago. The broader measure of real per capita after-tax personal income has also been falling, and is back to levels last seen a year ago. Despite their declining incomes, households raised their spending in early 2012 at a rapid pace by cutting their saving rate to just 3.7%. Without further declines in the saving rate from this very low level, consumer spending will not continue to grow as robustly. Recent reports of declining consumer confidence reinforce the likelihood that spending will slow in the months ahead. Moreover, the housing market remains in bad shape. The most reliable index of comparable house prices has continued to decline month after month, and prices are now about 7% lower in real terms than a year ago, implying a $1 trillion loss of household wealth. With roughly 25% of all
homeowners with mortgages owing more than their homes are worth, the decline in house prices reflects high rates of default and foreclosure. Falling prices, together with stricter lending standards, has spurred a shift by would-be home buyers to the rental market, causing recent declines in the sales of both new and existing homes. The weakness of America’s economy is not limited to the household sector. Industrial production has been unchanged for the past two months, and utilization of industrial capacity has declined. And the monthly purchasing surveys conducted by the Institute for Supply Management now indicate weaker activity among service firms as well. looking ahead, strong headwinds imply that it will be difficult to achieve better economic performance in the rest of the year. higher energy prices are reducing real household spending on non-energy goods and services; weakness in europe and Asia will hurt America’s exports; state and local governments are cutting their
highlighted the need for a long- term sales planning. Pakistani businesses must evolve their sales and marketing strategies to survive and prosper in the rapidly evolving global economy. The lCCI President Irfan Qaiser Sheikh said that the conference is part of the lahore Chamber of Commerce efforts to enhance the capacity and outreach of its members and students. he said that the presence of large number of professionals and students in the conference is an indicator of the need of effective sales and marketing. During the four working sessions and panel discussions Chief executives of various prestigious organizations shared their sales and marketing strategies. Mudassir Aqil, CeO Kashf Bank emphasized the need of relation based sales to low income segments of the society. he said that effective marketing has lead to sustained growth in micro finance sector. haseeb Gardezi, CeO of hotel One emphasised the need of sales force management in the hospitality business. In the concluding session Irfan Qaiser Sheikh distributed shields among the speakers and organizers. spending; and concerns about higher taxes in 2013 will dampen both business investment and big-ticket consumer spending. The economy is thus shaping up to be a serious liability for President Barack Obama, who is likely to place the blame on the conditions that he inherited from President George W. Bush, and on the Republican majority in the house of Representatives. But the public is likely to place the blame on the president, and surveys indicate that a growing number of Americans believe that Mitt Romney, the almost certain Republican candidate, would do a better job than Obama at managing the economy. The polls are very close, and voters have not yet locked in their decisions. The economy could rise more sharply than expected in the months ahead. If not, Obama will try to shift attention from the overall economy by emphasizing his plan to raise taxes on high-income individuals. And a variety of other issues, including immigration and the role of women, might influence voters. But the state of the economy is usually the most important determinant of who wins national elections in the United States. And US economic conditions now favor Romney.
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CORPORATE CORNER GSK to increase investment in consumer healthcare brands
Our Youngistan ZAID NASIR
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AST weekend lCCI (lahore Chamber of Commerce and Industry) organized its 2nd expo in lahore amidst much publicity. however many people did not know about lCCI’s project “Made in Youngistan” which also debuted there as well “We organized Youngistan to promote the efforts and help facilitate the young entreprenuers in Pakistan” said Madiha Nasrullah, the project manager for this event. Their definition of ‘Young’? “We selected the age bracket for the participants between 18 and 30 years” What was the criteria for selecting them? “Those that did not have their own outlets, mostly relying on online social communities and websites to sell and market their products. We gave these stalls to them on discounted prices since most of the entreprenuers could not afford the steep prices that normally go with
such exhibitions” There were about 50 stalls in total. Majority of their products catered to women. There were stalls on cosmetics, handbags, jewelry and designer wear but for a few exceptions. Moeez Javed, a student of Beaconhouse National University started an initiative by the name of Virgin Tees. For every t-shirt you buy from him, 43% of the retail price paid is donated to an NGO. “Profit margin is very low and we market ourselves through our facebook page. But people loved our designs and our cause. The response was amazing” he said. Amongst all the garments lay a stall that caught me off guard. There stood a male quietly leaning beside a banner that read SOS for Animals. I went over and was greeted by Dr Awais Anees, a Vetnerary who started this initiative to help save the stray animals running in the city. “Animal abuse is becoming alarmingly common now. Stray dogs and cats are tortured, deliberately run over by cars
and left for dead. Animals should be given the affection they deserve. It was not an easy task for us. I used to help provide shelter and medicine for the strays in my home. But slowly we got support. Now we are taking some land near Thokar Niaz Beg to set up a clinic. We will take stray dogs and cats off the street, cater to their injuries, sterilize them, give them their vaccinations and put them up for adoption” But will people still be willing to adopt those animals? I asked. For most people here owning a pet is a luxury and people take great pains to ensure a pure pedigree. “From the response we got it also seems people have a big heart as well” Awais said admitted they have a long way to go. Currently, their role over here is to spread awareness about their project and garner support. “We tell everyone who comes to our stall that if they ever come across any injured, abandoned or tortured animal they can drop it off his clinic.” Some entrepreneurs had their reservations, complaining about the
eNeRGY CRISIS
Nation has to draw a line between necessities and luxuries SHAuKAT ALI
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S soon the summer approaches as the electricity demand soars since domestic consumers switch on their fans/air conditioners to beat the heat. There is a need to devise ways and means to meet the electricity deficit which has soared upto 15 percent of the total peak demand of 19000 MW. A permanent solution to the present energy crises lies in quantum addition in the generation capacity. This is probably easier said than done, since power generation projects both capital intensive and involve long gestation periods. The present government has commissioned new power projects and added about 3400 MW’s to the system. Despite increase in generation, it is feared that the difference between demand and supply would touch to a remarkable figure during this summer. As we strive to add new capacities, we have to use the available power prudently. We have to ensure that the wheels of industry and agriculture, which drive our economy, are provided electricity on priority with minimum disruption to the daily routine of a common man. load shedding was not unknown to the country. The present wave of power outages, however, surfaced on the national horizon in 2004 when demand for electricity outstripped generation. The situation aggravated with the passage of time. The previous ones failed to add any significant capacities to the national grid. In order to save itself from any embarrassment, the then government initially resorted to load shed-
ding in remote areas, insulating the main urban centers from load shedding. This tactics was adopted to mislead the people about the accurate power situation. Realizing the gravity of the situation and the enormity of the challenge, the present government convened two energy Conference, the first energy summit held in April last year and the 2nd energy Conference held recently, which were presided over by the Prime Minister. The conference was also attended by Chief Ministers of the all the provinces, experts, and representatives of the private and public sector. The second energy Summit after reviewing the power situation in the country approved a plan to conserve energy, as part of a short term measures to minimize the impact of shortage in power, by reduction in demand of power. The objective of the conservation plan was to save energy where possible and create an awareness on the need to use it prudently. In this connection, the conference decided to reintroduce five-day a week in all Provinces as well, closure of shops by 8.00 pm, ban on use of Air conditioners in government offices before 11 am, launching of an awareness campaign through media to educate the masses on the utility of conservation, staggering of industrial holidays, induction of energy saver bulbs, banning neon signs, and switching off alternate street lights. These measures are likely to result in saving of over 1200 MW . The adage that a megawatt (MW) saved is better than a megawatt MW produced was the moving spirit behind the conservation plan. All over the world businesses and shops close early therefore early closure of businesses and shops is critical to energy conservation , as this measure alone will save over 700 MW. In eu-
event being below their expectations. “Our main motive was not to help them sell their products” said Madiha. “Rather we wanted to prove a platform for them to help showcase their efforts on a larger scale” I asked what they should really focus on. “They should learn how to market themselves effectively” she said. “Some of the stalls here would have made a far better display if they had utilized their space and lighting properly. Others did a brilliant job of it. events like these should be taken as a learning experience. It will help the entrepreneurs realize where they are and how far they need to go” everyone however, agreed that there should be more exhibitions like these to help promote the youth in showcasing their creativity and innovation. While our dire economy may not encourage people to risk their capital for such ventures, the youth have started to show resilience against all odds and are striving for a better future.
rope and Middle east markets & shopping malls pull their shutters before dusk. The situation in our country particularly the urban cities is absurd, Shop owners start their businesses after 11`O clock and remain awake till midnight. On top of that, shopkeepers lit their shops extravagantly. Bangladesh is also facing energy crisis, traders and shopkeepers there use a single bulb/light to lit their businesses. In Pakistan, the tendency is “open the shop late and close late”. Consequently, instead of utilizing daylight which is abundantly available, electricity is being wasted by keeping businesses open after sunset. The success of implementation of early closure of shops lies in the cooperation of traders and shopkeepers, they will have to set the trend of “open early and close early”. They should understand that the energy crisis being faced by the country imposes a civic responsibility on them to lead by example and change the present culture in keeping with international practices. Domestic and Commercial consumers in the country consume over 9,000 MW’s of electricity, a sizeable chunk of the total peak demand of 19000MW, in summers. There is ample room for saving, if we change our lifestyles and discourage extravagant use of electricity. According to experts Air conditioners and home appliances consume over 6000 MW’s of electricity. Furthermore, the consumption can be reduced by keeping AC`s thermostat at 26 degree centigrade. Our industrial sector especially the Textile sector has carried out a comprehensive review of their energy consumption patterns. They have made great strides in energy conservation by introducing new technologies. This will lead to saving in energy, cut costs and help lower their cost of doing business. Similarly, other industrial sectors should also introduce and adopt technologies to reduce their consumptions. leaving lights and energy inefficient home appliances on even when they are not being used is a common practice. It is our energy-inefficient lifestyles that is in many ways responsible for the present energy crises. We have to rise above our personal and vested interests to face this energy crises through a collective national effort by changing our lifestyles. The nation has to clearly draw a line between necessities and luxuries.
KARACHI: GlaxoSmithKline (GSK) has reinforced its commitment to Pakistan by announcing it will increase investment in consumer healthcare brands over the next five years. It will do so via the introduction of new brands in its Wellness, Oral health and Nutrition portfolios; said Mr. John Sayers, President of GSK Consumer health for Asia, Pacific, latin America, Africa and Middle east (APlAM) at a press conference held at the Karachi Sheraton hotel. Sayers was accompanied by members of his leadership Team including Mr. Ambati Venu, Vice President and General Manager for the Middle east and Mr. Sohail Matin, General Manager for Pakistan. Sayers spoke at length on GSK’s commitment to Pakistan as an emerging market on which there will be extensive focus in the coming years. he explained that GSK had identified emerging markets such as Pakistan as future growth drivers for the company. “Pakistan offers a diverse population pool that has significant growth potential and is strongly registering on our consumer healthcare investment radar,” stated Mr. Ambati Venu. he reiterated his belief that Pakistan would be one of the future growth markets not only for the Middle east region but also for the global business. Sohail Matin said, “GSK has a long standing presence of nearly 60 years in Pakistan and it is the Consumer healthcare Business’ ambition to become the First & Best Fast Moving Consumer healthcare Company not only in Pakistan, but also globally. GSK Consumer healthcare is a company guided by scientific innovation, values and consumer focus and these will be the driving force for the Company’s growth ambitions in Pakistan.” PRESS RELEASE
ACCA organises a pre-budget seminar LAHORE: In order to facilitate industry, government and financial expert engagement and perspective sharing on the shape of the upcoming Federal Budget, ACCA Pakistan organised a Pre-Budget Seminar on Saturday. In the session, ACCA Pakistan and other experts discussed various recommendations on the upcoming budget 2012-13. The chief guest of the seminar was Khawaja Tanveer, Chief Commissioner, FBR . The seminar speakers included Komail Badami, Partner Badami law Associates, Muzzammil Aslam Senior economist, JS Global Capital limited , Ali Rahim, Director Baker Tilly Mehmood Idrees Qamar & Co, Adnan Mufti Partner, Shekha & Mufti Chartered Accountants along with Rehan Uddin, head of ACCA Karachi. The seminar was attended by economists, employers and members from the financial fraternity. Speaking on the occasion Khawaja Tanveer, Chief Commissioner, FBR stressed about introducing reforms in the tax system along with broadening the tax base and simplification in assessment and collection of taxes. In his presentation, he compared Pakistan with other countries to identify the areas which need improvement. Mr. Rehan Uddin, head of ACCA, Karachi said “Professional accountancy organisations have a broader role to play by supporting the government in formulating a tax policy which is fair and encourages economic growth and development”. he also emphasized on the formulation of a simple, transparent and equitable tax system which will increase the level of compliance in the country. ACCA Pakistan is of the view that improvement in the tax base essentially requires elimination of all discriminations between tax payers with adequate penalties for defaulters. Capital Gains arising out of immoveable property and personal belongings are currently not taxable. however, on the same lines of taxing the capital gains from capital market, these items may also be brought into the tax net, based on period of holding. This would mainly settle the prices of real estate, making it viable for genuine seekers of property. ACCA Pakistan further proposed that enterprise zones be set up to encourage the industry specially labour intensive and technology industry. PRESS RELEASE
Two-day International marketing Conference begins in Karachi KARACHI: A two-day International Marketing Conference began in Karachi on Saturday. Former Governor of State Bank Dr. Ishrat hussain inaugurated the conference. The main objective of the Conference is to bring academicians and professionals on a single platform to share their experiences and present cutting-edge information in the field of marketing. Business experts from 10 countries including the United States‚ United Kingdom and Germany are taking part in the moot. PRESS RELEASE