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Pakistan, China sign MoUs Page 02
profit.com.pk
Senate body believes mining machinery tax exemption is a good idea ISLAMABAD ONLINE
The Senate Standing Committee on Finance has recommended to the National Assembly to exempt mining machinery from sales tax and all sort of duties in a bid to give benefit to the small provinces. The meeting of the Senate standing committee on Finance held here under the chair of Senator Nasreen jalil. Sentor Sughra Imam was of the view that agriculture machinery should also be exempted from sales tax and duties as every thing was critical for the country and there should be no specific exemptions in mining machinery. She also submitted dissenting note on the recommendation of committee to exempt mining machinery from sales taxes and duties Some members of the committee proposed that federal excise duty should be imposed on luxury items at a rate of 20 per cent. The Federal Board of Revenue (FBR) officials informed that tax authorities have planned to phase out all federal excise duties so despite proposing to impose federal excise duty they will suggest to impose income tax on those who were using more than 1,000 mega watt electricity per month. It would be the best possible way to identify rich people. But the committee did not express its willingness on FBR suggestions.
Thursday, 7 June, 2012
From Russia with love g
Russia offers transnational oil, gas supplies to energy malnourished Pakistan
g
Also offers steeling up PSM in an amorous fit
KARACHI
R
ISMAIL DILAWAR
eCogNISINg the important role being played by Pakistan in the contemporary world, Russia Wednesday offered assistance in the face of oil and gas supplies to the energy-scarce South Asian country. on the stratego-diplomatic front, Moscow confirmed that President Putin would visit Pakistan “soon”, and that his role in ensuring regional stability, security and economic integration, particularly in the settlement of Afghanistan issue, must not be underestimated. The Russians also offered help to Pakistan in modernising the ailing Pakistan Steel Mills (PSM) project inaugurated by then USSR some three decades back. “We all know that Pakistan is experiencing energy deficit. But let us not forget that Russia is the world's biggest energy supplier,” said Russian Consul general Andrey V Demidov while talking to media on the occasion of the Russia Day. “our assistance in the field of energy can be rendered in the form of oil and gas supplies,” he added. Urging the two sides to take their bilateral relations beyond the PSM cooperation, Demidov said his country was ready to help Pakistan in the modernisation of PSM that, he said, required upgradation and new machinery for enhanced production. “We are prepared to come and modernise the project,” the Cg said adding “The machinery built in the Soviet Union, although old, is still working without any serious technical problem”. The Russian official said Russia’s main approach toward the issue of bilateral relations with Pakistan was that the ties should be mutually beneficial. “The basic factor that enables us to seek closer ties is the absence of a single political problem that divides us,” he said. He said Russia recognised the important role of Pakistan in modern world and
believed that Pakistan was one of the leading states in Islamic world and the only Muslim nation possessing nuclear weapons. Pakistan was playing a vital role in the organisation of Islamic Cooperation, SAARC and others, he said. “We do not underestimate the role of
Pakistan in ensuring regional stability and security in the settlement of Afghan issue in promoting regional economic integration,” the consul said. He said political leaders of the two countries have been engaged on regular basis. During 2011 presidents of Russia
and Pakistan have met six times at the sidelines of different international forums. Both sides emphasise the importance of developing bilateral economic cooperation and trade. “The fields of energy, steel production, telecommunications, space technologies, oil and gas were mentioned as leading areas of cooperation,” he said. Recalling his country’s october 2011 emergency assistance to flood victims in Sindh, Demidov said last May we witnessed a very important visit to Russia of President Asif Zardari followed in November 2011 by “successful visits” to Moscow and Saint-Petersburg of two Pakistani delegations – a delegation headed by the chief minister of Sindh, and a delegation led by the president of the federation of Pakistani chambers of commerce and industry. About the “landmark” visit to Moscow of Foreign Minister Hina Rabbani Khar and her talks with her counterpart Sergey Lavrov, the consul general said the two ministers had admitted that contacts between Russia and Pakistan were getting “more and more active”. “There are good prospects for bilateral cooperation between Russia and Pakistan in realising big transnational energy project, connecting Central Asia and South Asia,” he said. Hopeful of early materialisation of the agreements reached during those visits, the Russian official said Prime Minister gilani during the telephone conversation with President Vladimir Putin after the latter's victory in the Presidential elections in March (2012) had invited him to visit Pakistan. “The invitation was accepted. We expect to see our new President in Pakistan soon,” he said. Dwelling on Russia’s economic situation, Demidov said his was the only g8 country without a budget deficit in 2011. “In fact we even have a small surplus. As of April 1, 2012 Russia's international reserves amounted to more than $ 513.9 billion,” he said.
COMEDY OF ERRORS (WITHOUT ANY INKLING OF HUMOUR OF COURSE)
Algeria, Qatar want to supply LNG, but we just won’t let them do it! g
LNG imports on G2G basis fizzles out due to ministerial disinterest g Hang on, no funds, no sovereign guarantee, claims Finance Ministry ISLAMABAD AMER SIAL
T
He plans to expedite Liquefied Natural gas (LNg) imports on government-to-government (g2g) basis seems to have fizzled out due to the disinterest and differences between members of the ministerial sub-committee formed by the economic Coordination Committee of the Cabinet (eCC). An official source said that in total three meetings of the committee were held, except for the first one, the convener of the committee and minister for IT Raja Pervez Ashraf has shown no interest to attend the meeting and even the former minister for water and power Syed Naveed Qamar, special advisor to the prime minister on water and agriculture Kamal Majeed Ullah also skipped the third meeting. The committee was to discuss LNg imports on g2g basis from Qatar and Algeria but even before it could engage in a meaningful discussion the finance ministry said that it had no funds available to provide any kind of sovereign guarantee, as required by the exporting countries for the project. Pakistan is faced with a severe gas shortage, exceeding 2 billion cubic feet per day (bcfd) as the local production is unable to keep pace with the requirements of the
country. Petroleum ministry is stressing upon the need to import LNg to mitigate the crisis. Imported LNg will be received, stored, re-gasified and delivered through connecting pipelines to the existing transmission pipeline network as Re-gasified LNg (RLNg). The RLNg price will be factored in the Weighted Average Cost of gas (WACog). Algeria and Qatar are both interested in supplying LNg to Pakistan, pro-
vided a deal is signed on a government to government basis for long term supply contract. An MoU has been signed with Qatar and they have provided a term sheet subject to negotiation. Qatar has also required guarantees by a satisfactory credit support and an acceptable performance guarantee. The ministry of finance showed reluctance to provide any kind of guarantee for LNg imports. Petroleum ministry argues that it
is not possible since the exporting countries want a long term agreement backed by sovereign guarantee for a g2g basis deal. The plans to import LNg on g2g basis was proposed after the private sector failed to find buyers from the private sector for the commodity and sought sovereign guarantee or long term purchase agreements for the state owned gas utility companies. In May last year, the government invited expression of interest from private sector companies interested in capacity allocation and willing to develop their own LNg FSRU, arranging their own supply of LNg with their own buyers of RLNg. Three companies were given construction licenses by ogRA for setting up LNg terminals and they were allocated capacities in the pipeline network. However, the establishment of buyer-dealer relationship between importers and users of LNg emerged as the main impediment to the project implementation due to huge circular debt. Petroleum Ministry floated another proposal under which two companies could be given permission to import LNg on a deal to be signed on g2g basis. It was proposed that the base load volume of RLNg will be 800 mmcfd, spread over 2 separate LNg developers, 400 mmcfd each, at delivery point under 10 years con-
tractual arrangement. During the second meeting on May 21, a heated argument took place between the special advisor to prime minister on water and agriculture Kamal Majeed Ullah and petroleum minister Dr Asim Hussain over which port to be used for LNg imports. Advisor was of the opinion that the conversion of the Progas terminal for LNg imports was not feasible as the Port Qasim channel was narrow and under heavy tariff, incase of any incident the channel could be blocked causing disruption in all kind of supplies. He suggested using gwadar Port for LNg imports. However, the petroleum minister termed Port Qasim ideal for immediately importing LNg and supplying it into the national gas transmission network. The Advisor struck to his argument terming gwadar port more viable for LNg imports and claimed that the required infrastructure could be developed on urgent basis. When the petroleum minister insisted on his arguments, the advisor left the meeting in protest. The source said as the convener Raja Pervez Ashraf, Syed Naveed Qamar and Kamal Majeed Ullah were not interested in attending the meetings of the sub-committee the matter seemed to have fizzled out and the petroleum ministry will again have to approach eCC for further directions.
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Thursday, 7 June, 2012
news
‘Govt will bear Rs 45b if GST reduced by 1pc’ ISLAMABAD ONLINE
The tax authorities on Wednesday informed the Senate Standing Committee on Finance that the government will bear a dint of Rs.45 billion if general Sales Tax (gST) rate reduced from existing 16 per cent to 15 per cent. The meeting of Senate Standing Committee on Finance held here under the chair of Senator Nasreen Jalil to review the Finance Bill 2012-13. The committee informed by the officials of Finance Ministry that major reforms in the general Sale Tax have been proposed for the fiscal year 2012-13 to abolish gST from existing 22 and 19.2 per to 16 per cent. Secretary Finance Abdul Wajid Rana informed the committee that substantial reduction in the existing rate of general Sale tax would lead to decrease the share of provinces in the divisible pool which may not be acceptable to them. He said that out of the total sale tax collection, provinces share is 57.5 per cent which would decline in case of reduction in sale tax rate. Member Inland Revenue (IR) FBR Shahid Hussain Asad said that proposed deduction of one per cent withholding tax from dealers, wholesaler and retailers by the manufactures was considered very important for the documentation of the economy.
35pc mango yield wasted in post-harvest MULTAN APP
About 35 to 40 percent yield of mango has been wasted every year due to lack of awareness among growers by using traditional techniques in post-harvest process.According to agriculture department officials, mango growers had not proper skill in plucking the fruit from trees. Untrained labours usually did not follow recommended criteria which damaged 10 per cent mango on plucking stage, said officials. The labourers ignore grading stage and mix the damaged fruit with healthy ones which also spoil the whole lot, they added. The laboures pack mango in wooden boxes which also damage or leave bruises on the fruit, they said.
LCCI for markup rate cut LAHORE STAFF REPORT
As the State Bank of Pakistan is going to announce Monetary Policy on Friday the Lahore Chamber of Commerce and Industry Wednesday urged the SBP governor to make a cut of 150 to 200 basis points in the policy rate and bring it to single digit for the sake of revival of businesses, overcome lowgrowth scenario, encourage new investments and give a jumpstart to the sluggish economy. In a statement issued here, the LCCI President Irfan Qaiser Sheikh said that the availability of cheaper money to the business doing people is a must to bring down the cost of doing business in Pakistan and expedite the process of industrialisation that would ultimately result in curtailing poverty, inflation and help in much-needed job creation.
Pakistan, China sign MoUs
Ciao Amico!
In a bid to erase this week’s budget blues; President returns home with three MoUs
for economic boom’
BEIJING ONLINE
P
AKISTAN and China signed, on Wednesday, 3 Memoranda of Understanding about different plans aimed at social welfare and economic development of Pakistan, while President Zardari held meetings with Chinese businessmen. The memoranda covered the program of supply of water from Tarbela to Islamabad, establishment of Special economic Zone in the proposed new city of Zulfikarabad, Sindh, building of 6,000 flats in I-15 sector on the basis of private-public partnership desilting of canals and barrages in Sindh. The MoU for water supply to Islamabad from Tarbela, was signed between Chairman Capital Development Authority, Farkhand Iqbal, and President of China Machinery engineering Company, Zhang Chun. The MoU on the establishment of Special economic Zone in Zulfikarabad was signed by Managing Director Zulfikarabad Development Authority, Lieutenant general (Retd.) Syed Iftikhar Hussain Shah and Chairman Sichuan Huantong Holding Investment Limited, Yang Yong. Chinese company, China Railway First group signed MoU for building 6000 flats and developing Sector I-15 in Islamabad. The agreement on de-silting canals in Sindh was signed by Mr. Saleem Mandviwala, Chairman Board of Investment with the President of China Harbour engineering Company Limited. Meanwhile, President Zardari also held separate meetings with four leading Chinese business executives inviting them to take advantage of the investment friendly policies of the government of Pakistan and to extend their business ventures in all the sectors especially in the areas of energy, oil and gas, mining, engineering goods, electronics, chemicals, infrastructure, telecommunications, IT and agriculture. The first meeting in the series was held with the Chairman of orient
‘Pakistan has potential ISLAMABAD APP
Ambassador of Italy to Pakistan Vincenzo Prati said that Pakistan had potential for economic boom as it had hard working people and abundant resources. He said his country would further strengthen its relations with Pakistan. "I am optimistic that Pakistan has potential for economic boom due to its hard working people and raw materials and my country would participate in development projects," he told APP after attending a ceremony to celebrate "Italian-Pakistan Partnership in Development" organized by economic Affairs Division (eAD) here at local hotel. Secretary economic Affairs Division (eAD), Dr.Waqar Masood Khan also spoke on the occasion. The Italian Ambassador also appreciated the government policy of "trade and not aid", adding his country wanted to further collaborate with Pakistan in different sectors of economy for the welfare of people of Pakistan.
Urea sales may go up by 118 percent KARACHI STAFF REPORT)
Sales of local branded urea during May likely to stand around 325k-330k tonnes, up 118 percent compared to the preceding month of April. According to Topline Research figures, such a huge growth was primarily due to low base affect as local manufacturers sales in previous month was marred by availability of subsidized imported urea which was available at much cheaper rates than the local branded urea. However, despite better performance of local branded urea sales on a monthly basis, the sales of local urea are down 25 percent YoY in May (2012). Moreover, urea inventory at the end of May is expected to be around 0.95mn tons which includes 13-15% imported urea by NFML.
ATPs: light at the end of a very long tunnel g
PRGMEA hails early implementation of EU ATPs for Pakistan KARACHI ZAIN ALI
Pakistan Readymade garments Manufacturers & exporters Association (PRgMeA), Zonal Chairman, Atiq A. Kochra, has hailed the efforts of the foreign minister and the prime minister for taking up the issue of early implementation of the Autonomous Trade Preferences (ATP) proposed by the eU Council to help Pakistani economy devastated by floods of 2010 with the eU delegation. Kochra said that with the news that ATPs will be transpiring very soon, the ailing textile industry is seeing a ray of light at the end of tunnel, as it will translate into business opportunities for the industry and job creation for the workers. He added that they
AMER SIAL
oeS betide the power sector as a cut of 50 million cubic feet per day (mmcfd) was made on Tuesday against the allocation of 175 mmcfd to the power plants, which has ousted supply of 300 MW from the system. An official source said the Ministry of Water and Power (MWP) was not informed by the petroleum ministry about the shutting off of the gas supply. He said if there was any need to cut off the supply, it was more prudent to stop supply of 50 MW to the ghee sector. To reduce the power subsidy, which is estimated to be over Rs 512.2 billion against the budgetary target of Rs 166.4 billion this fiscal year, MWP is demanding more allocation of natural gas for power generation. This would have reduced
were also very hopeful that this would pave the way for the granting of the gSP+ status to Pakistan, and initiation of an FTA with the eU, which will provide the much needed stimulus to the industry, provide employment and generate foreign exchange for the Country, he said. This also means that the eU recognises the efforts of Pakistan in the war against terrorism, he added. He once again stressed on the need for the formulation of a public-private task force, for aggressive monitoring and a follow up of the vital issue, so that there would be no unpleasant surprises at the end. Kochra said that by seeking trade and not aid, the government was taking steps in the right direction and the efforts of all the related ministries would bring about a pos-
itive change in our economy very soon. Besides, the eU offered this one-time facility to Pakistan and approached WTo in october 2010 to seek a waiver on trade preferences to Islamabad on these products amounting to almost 900 million euros in import value, or 27 percent of imports from Pakistan for a two-year period from January 2012 to December 2013. The eU package materialised following humanitarian appeals from the United Nations. The UN estimates the floods affected some 20 million people and 20 percent of Pakistan’s land area, about 160,000 square km, with 12 million people need urgent assistance. However, countries like India, Brazil, and Bangladesh and textile lobbies within the eU had blocked the implemen-
CHOPPED!
ISLAMABAD
W
group/United energy group Mr. Zhang Hongwei. The President, appreciating orient’s group existing investment in Pakistan in the area of oil and gas exploration and alternate energy, called for greater investment in the energy sector. He also invited the company to set up an oil refinery at Karachi port. It is pertinent to mention that President Zardari has been continuously inviting the Chinese companies to undertake projects involving onshore and offshore drilling for oil and gas as well as for reactivating the depleted oil and gas fields in different parts of the country. During the meeting, he reiterated government’s commitment to provide all possible facilitation to the Chinese Companies in their business ventures. President Asif Ali Zardari also said that the untapped tremendous natural resource potential of Pakistan offered great opportunities to the Chinese investors and entrepreneurs not only to get economic benefits but also to help in transforming the traditional Pak-China all weather friendship into a comprehensive economic engagement. President of Pakistan, Asif Ali Zardari also met with Chairman of China National Machinery Industry Corp (SINoMACH), Ren Hongbin. The firm is the largest machinery manufacturer in
China. During meeting with Hongbin, the President highlighted that the 2nd PakChina five-year programme for trade and economic cooperation, launched in 2012, with 36 projects, in the sectors of energy, Transport, Infrastructure, ICT, Industry, Water, education, environment, Health, education and Agriculture offered great opportunities to the companies such as SINoMACH as these companies had the required potential for undertaking mega projects in these areas. The President while noting with satisfaction on the Neelum Jhelum Hydropower project, expressed the hope that the company would be able to explore more projects of building new dams in Pakistan. The President also invited attention to Zulfikarabad city project, which offered great business opportunities to the foreign investors. During meeting with Cao guangjing of Three gorges Project Corporation, the third meeting in the series, the President remarked that the Three gorges Dam Project was a living testament to the genius and vision of the Chinese people and their leadership. While appreciating the interest of the company in building the Bunji, Kohala, Karot and the Diamer Bhasha dam projects and the wind Power and Thar Coal power projects, the President invited them to participate in constructing small and medium sized dams, which he said were critical for the socio-economic development of those regions of the country. The President said that Pakistan was keen to learn from the Chinese experience of growth in every field, especially in the area of hydropower generation, Wind Power, and coal technologies. The fourth meeting in the series was held with President ZTe, Shi Li Rong. During the meeting, the President appreciated ZTe’s role in the development of Pakistan’s Telecommunication sector. He reiterated his call that ZTe could further help Pak telecommunication sector by helping in technical skills development of the local labour force.
g
g
50 mmcfd gas supply cut for power sector g 300 MW out of the system
the inter-DISCo power tariff differential subsidy which is estimated to be around Rs 412 billion during the current fiscal year. MWP proposal demanded gas supply of 350 mmcfd from the CNg sector to be diverted to power sector. However, the government agreed to supply additional 207 mmcfd to the power sector at the energy summit but actually supply was only 175 mmcfd. The MWP was demanding gas for four highly efficient IPPs that require 38 mmcfd each to produce a total of 800 MW. To end the tariff differential sub-
sidy and circular debt, MWP had sought an allocation of 900 mmcfd for the power sector. But it was opposed by the petroleum ministry on the grounds that it was in no position to make further gas allocation considering the supply constraints. The government, source said, was still undecided due to the political considerations on the proposal that sought hiking the gas tariff for the captive power plants to bring its cost of production nearer to the determined power tariff of Rs 12 per unit as compared to their present generation cost of Rs 4 per
tation of the preferential package originally scheduled to be effective from January 2011. To get the package approved through WTo, a well-placed source in the commerce ministry told Pakistan Today that a revised document after consulting all the member countries was submitted to the WTo secretariat on January 20, 2012. As a result, all opposing countries dropped their objections following the amendments made by the eU in the original documents by introducing tariff rate quotas (TRQs) on 20 products rather than full liberalisation. The eU estimates the preferences would increase Pakistan’s exports by 100 million euros. At the same time, the eU was planning to drop high tariff on ethanol from Pakistan subject to an annual quota of 100,000 tonnes.
kWh. If the government did not firm up its political will to implement power sector reforms and end other distortions in the sector then the power subsidy alone would be more than Rs 500 billion in the next fiscal year, he said adding that the circular debt will increase and no donor will be ready to pour its money. The government has also failed to induct professional management in the power sector. Finance Minister had announced in october last year to complete the hiring process for professional management within a month to expedite the reform process. The government has also failed to implement recommendations of the energy summit as markets are not being closed at 8 pm. Implementation will result in saving of 1400 MW during peak hour load. The demand side management is needed in the short term to counter the long black outs at night.
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Thursday, 7 June, 2012
03
news ADB wants countries to show a clean pair of heels g
‘Asia must spur greater technology, finance for clean energy’ ISLAMABAD APP
The Asian Development Bank's (ADB) Asia Clean energy Forum (ACeF) Wednesday said that Asia and the Pacific has a huge and growing demand for energy and is also highly vulnerable to climate change and related challenges such as extreme weather patterns and food insecurity. The region's health and prosperity hinges on how it responds to these challenges, the forum maintained while gathering for its 7th meeting being held at ADB headquarters. The forum was formally opened by ADB President Haruhiko Kuroda, said ADB press statement received here Wednesday. Development of renewable energy such as solar and wind power is key to address these issues, but other measures are also needed to cope with these challenges. High-level experts and investors 7th ACeF have gathered at ADB headquarters to exchange experiences and forge new partnerships to advance clean energy development in the region, the statement added. "A holistic approach toward a low-carbon economy should be created and established, which will cover not only the energy sector, but also the transport, water, urban, agriculture sectors," said Bindu Lohani, Vice President, Knowledge Management and Sustainable Development at ADB who gave opening remarks at the forum Wednesday. At the same time, the region needs to ensure that all those who need energy to improve their lives and livelihoods are able to access a safe and reliable source. "We have prioritized and maximized access to energy for the poor and we must strengthen global momentum in support of universal energy access," Lohani said. Almost 700 million people in Asia and the Pacific still have no access to an electricity supply. This lack of access holds back economic development, reinforcing growing inequality in the region.
Major Gainers
RED RAG: NATO SUPPLY RESUMPTION
Bulls find room to manoeuvre g
Least bothered by eurozone crisis or indeed global stock uncertainty, lift KSE up 37.5 points KARACHI
o
STAFF REPORT
N Wednesday bulls announced their return and dominated the Karachi stock market with the benchmark, KSe 100-share index lifted up by 37.50 points. Ahsan Mehanti, Director at Arif Habib Investments Limited, said that the Pakistan stocks closed higher amid trading in narrow range owing to the progress towards reopening of NATo supplies. The day saw the index closing up by 0.27 percent at 13,745.73 points against 13,708.23 points of Tuesday. The trading volumes at the readycounter were recorded higher at 77.899 million shares against 67.622 million shares of the previous day. The trading value was up to Rs 3.397 billion compared to Rs 2.477 billion of the last day session. The intraday high and low, respectively, stood at 13,840.76 and 13,708.23 points. He added that the investor interest in blue-chip stocks in oversold fertiliser, cement, telecom sectors witnessed a positive trend despite uncertain global stocks and commodities on euro zone debt crisis. Mar-
ket capitalisation grew modestly and increased to Rs 3.517 trillion from Rs 3.509 trillion a day earlier. of the total 355 traded scrips, 117 gained, 157 lost and 81 remained unchanged. The free-float KSe-30 index also gained 50.42 points to close at 11,885.47 points against the previous day’s 11,835.05 points. The KSe all-share index closed with a gained of 22.54 points to 9,685.87 points as against 9,663.23 points. Jahangir Siddiqui Company was the day’s volume leader counting its traded shares at 8.761 million with the opening and closing rates standing at Rs 14.64 and Rs 13.90, followed by DgK Cement, engro Corporation, engro Foods Limited and Bank Al-Falah with the turnover of 8.361 million, 8.132 million, 3.754 million and 2.730 million shares respectively. on the future market, the turnover recovered by over three million shares to 8.253 million against 5.503 million shares of Tuesday. The Nestle Pakistan Limited and Colgate Palmolive, up Rs 67.60 and Rs 23.17, led highest price gainers, while Wyeth Pakistan Limited and Siemens Pakistan, down Rs 27.71 and Rs 24.51 respectively, led the losers.
Company
Open
High
Low
Close
Change
Turnover
Nestle Pakistan Ltd. Colgate Palmolive Mithchells Fruit National Foods Indus DyeingSPOT
4000.15 912.00 310.57 205.14 398.39
4150.00 940.00 326.09 215.39 404.98
4000.00 935.00 310.00 206.00 378.48
4067.75 935.17 326.09 214.95 404.98
67.60 23.17 15.52 9.81 6.59
181 37 9,664 293,323 1,181
Major Losers Wyeth Pak Limited Siemens Pakistan Shezan Inter. Indus Motor Company Ismail Industr
828.72 691.67 216.14 283.32 104.70
830.00 720.00 208.60 288.00 99.47
800.00 667.00 207.00 276.00 99.47
801.01 667.16 208.55 277.67 99.47
-27.71 -24.51 -7.59 -5.65 -5.23
1,035 468 211 1,313 1,000
Volume Leaders Wyeth Pak Limited 828.72 Siemens Pakistan 691.67 Shezan Inter. 216.14 Indus Motor Company 283.32 Ismail Industr 104.70
830.00 720.00 208.60 288.00 99.47
800.00 667.00 207.00 276.00 99.47
801.01 667.16 208.55 277.67 99.47
-27.71 -24.51 -7.59 -5.65 -5.23
1,035 468 211 1,313 1,000
Interbank Rates US Dollar UK Pound Japanese Yen euro
94.1470 145.5419 1.1898 117.6743
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
Sell
94.00 116.55 144.58 1.1783 90.13 11.96 25.52 25.01 91.83
94.60 117.89 146.21 1.1915 91.65 12.15 25.78 25.25 94.32
CORPORATE CORNER UBL acquires majority shares of Khushhali Bank LAHORE: A consortium comprising of United Bank Limited (UBL), ASN-NoVIB Microkredietfonds (Triple Jump B.V), Credit Suisse Microfinance Fund Management Company (ResponsAbility global Microfinance Fund), Rural Impulse Fund II S.A. SICAVFIS (Incofin Investment Management Comm.VA), ShoreCap II Limited (equator Capital Partners LLC) has acquired a 67.4% equity stake in Khushhali Bank Limited (KBL) a major portion of which has come in the form of FDI. Post the acquisition the consortium holds 79.2% of KBL’s share capital inclusive of UBL’s existing 11.7% shareholding in the institution. The signing ceremony for the acquisition was held on June 4, 2012 in Karachi. Mr. Atif R. Bokhari, President UBL, commenting on the acquisition, stated “UBL has always been at the forefront of innovation both in terms of introducing new technologies as well as rolling out new business models. Access to Financial services has been proved as one of the most significant factors in improving overall quality of life for the vast majority of the poor that generally do not have access to even basic financial services like safe storage of money in an account, funds transfers, access to microcredit, payments and insurance. In Pakistan the conventional banking sector serves less than 20% of the population. It is with this in mind that UBL developed omni, a branchless Banking platform providing basic banking services to the masses through retail agents. Taking this a step further enhancing our stake in Khushhali Bank made for a very compelling business case as the natural synergies with our existing omni platform allows the Bank to reach out to an entirely new segment of the un/under banked market to provide credit and deposit financial services to them”. He also said that he strongly believed that this acquisition has tremendous synergies for UBL and is an economically viable and socially responsible investment that will significantly enhance financial inclusion. In terms of the future plans for KBL, Mr. Bokhari stated that there is significant opportunity in improving the governance structure, rolling out new business models, transfer of knowledge from a vast pool of experienced professionals within UBL and in particular, its partners and leveraging modern technologies to achieves scale and efficiency in distribution. He praised the State Bank of Pakistan for being a very progressive and proactive regulator who is working hard to strengthen the governance structure and balance sheets of the Microfinance institutions to enable them to become long term commercially viable and sustainable entities. He further said that we are very excited at having international partners with the vision and experience from across the globe to help turn KBL into a sustainable and socially responsible MFI.
First meeting of Pak-China Joint Chamber of Commerce and Industries
ISLAMABAD: The first meeting of Pak-China Joint Chamber of Commerce & Industries was held at the designated office in Lahore on the 1st of June, 2012. First President of the Chamber and the founder, Mr.Shah Faisal (President & Ceo-Ruba SeZ group)chaired over the meeting and shared his vision of the Pakistan business community joining hands, making an investment pool and playing their role in investing in the socio-economic needs to the country like education and infrastructure. Since the democracy in the country needs more time to mature, the private sector needs to play its role in the development of the country. This platform is going to help strengthen the relationship between the business communities of both Pakistan & China along with opening new avenues of investment.
Pakistan State Oil signs MoU on Jathropa Cultivation in Balochistan KARACHI: Pakistan State oil (PSo), the nation’s leading energy Company has signed a Memorandum of Understanding (MoU) with the Forest & Wildlife Department, government of Balochistan for the establishment of a 5,000 acre bio-diesel agricultural estate located at Uthal, Balochistan. The signatories on this occasion were Mr. Naeem Yayha Mir, MD & Ceo-PSo and Mr. Ahmed Ali, Secretary- Forest & Wildlife Department, government of Balochistan. Also present here were Mr. Azam Deputy Secretary – Forest and Wildlife (goB), Mr. Navaid Alam Zuberi, Senior general Manager (Projects)-PSo and Mr. Nawaid Anjum Zaidi, Head of New Business Development-PSo. A pioneer in the oil sector, PSo is striving to identify and overcome the energy challenges facing our country. In this regard, PSo’s New Business Development department had previously established an agricultural estate at Pipri Marshalling Yard (PMY) to conduct a feasibility study regarding the cultivation of the Jathropa Curcas plant and extraction of bio-diesel from the seeds of the same. on successful completion of the plant life-cycle and extraction of bio-diesel, the company also carried out product testing by running company vehicles on this environment friendly fuel. With the
signing of this MoU, PSo is moving forward, with its plans for introducing Jathropa cultivation on a commercial level to set up a pilot project at Uthal, Balochistan as a first step towards mass-cultivation. Speaking at the occasion, Mr. Naeem Y. Mir, MD-PSo stated that ‘The success of this project will provide multiple environmental and economical benefits for Balochistan and also provide career opportunities for the people of the province.’ He also pledged “We will bring greenery to Balochistan and at the same time develop an alternate source of energy for the nation.” Separately, Mr. Ahmed Ali, Secretary - Forest and Wildlife Department (goB) expressed the provincial government’s support for this plan and said “We commend the national energy company for having taken this step and are hopeful that project will result in further growth focused investment and economical progress in the region.” This initiative is another first in a long line of achievements for PSo. Through this plantation the Company aims to produce a renewable fuel source that will help bridge the energy gap of the country and reduce our dependence on foreign fuel imports. Dedicated to serving the energy needs of the nation, PSo is cognizant of its responsibilities and continues to stand by the country at all times.
Arysta LifeScience to License Fluoxastro bin Fungicide from Bayer CropScience TOKYO: Arysta LifeScience has signed an agreement with Bayer CropScience for the global licensing and sale of fluoxastrobin, Bayer's patented strobilurin fungicide. Under the agreement, Arysta LifeScience will gain exclusive access to fluoxastrobin for all crop and non-crop applications except seed treatment and certain proprietary Bayer mixtures. The parties did not disclose the financial details of the agreement. In 2005, Arysta LifeScience first licensed fluoxastrobin from Bayer for development in the USA, Canada and Japan. Arysta LifeScience has successfully launched and marketed two brand families (DISARM® and eVITo® fungicides) based on the active ingredient. Arysta LifeScience now intends to build on that success by both leveraging existing products and developing new fluoxastrobin products in all six of its business units around the world. "Fluoxastrobin is a very versatile fungicide and a valuable tool for growers," said Paula Pinto, Head of global Marketing, Arysta LifeScience. It provides broad-spectrum disease control and has demonstrated excellent plant health properties. We intend to develop fluoxastrobin for use in a wide range of crops including corn, soybeans, wheat, potatoes, vegetables, sugarcane, pome fruit and turf grass."
Nokia accelerates the journey to Mobile Internet KARACHI: Nokia has today taken another step towards connecting the next billion consumers by unveiling the Asha Touch family of mobile devices, taking the full touch experience to new price points. The three new phone models - the Nokia Asha 305, Nokia Asha 306 and Nokia Asha 311 – further expand the successful Asha family, first introduced in october 2011. Today, there are 10 Asha devices available in more than 130 markets, providing young, social consumers with a choice of phones to match their own lifestyle. These latest phones have been designed to provide an incredibly rich, smartphone-like experience to consumers who want to be set free from excessive data consumption costs and short battery life. The Nokia Asha 305, Asha 306 and Asha 311 offer a new, fully redesigned touch user interface, combining the proven ease-of-use from Nokia’s heritage with digital design innovations specifically fit for the purpose. The beautifully crafted Nokia Asha 311 is a fast and fluid 3.5g capacitive touch screen device, powered by a 1gHz processor to provide a great internet experience. The bright and edgy Nokia Asha 305 is a fun and affordable phone, featuring the exclusive easy Swap dual SIM. Its sister, the Nokia Asha 306, is a single SIM model, and becomes Nokia’s most affordable Wi-Fi handset to date. “By introducing the Asha Touch phones to the market, we’re accelerating our commitment to connect the next billion consumers,” said Mary T. McDowell, Nokia's executive vice president for Mobile Phones. “These phones deliver on what young, urban people value most -- a great-looking device; and an intuitive and affordable experience for connecting to the internet, to their friends, and to a world of entertainment, web apps and content.”
Etihad Airways confirms 3.96 percent stake in Virgin Australia LAHORE: etihad Airways, the national airline of the United Arab emirates, today confirmed that it has acquired a 3.96 per cent stake in Virgin Australia Holdings. etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010 and will enrich the commercial benefits which the alliance already provides for both airlines, as well as increasing the benefits to Australian consumers and visitors to Australia. Together, etihad Airways (21) and V Australia (3) operate 24 flights a week between Abu Dhabi and Australia and Pakistani passengers have access to a combined network of more than 150 destinations. etihad currently operates 23 weekly flights from Karachi, Lahore, Islamabad and from Peshawar.