PRO 06-07-2012_Layout 1 7/7/2012 5:09 AM Page 1
Saturday, 7 July, 2012
4,345 PIA flights delayed in 3 months ISLAMABAD INP
The National Assembly was informed on Friday that during the last three months, 38 percent of PIA flights were delayed. The Defence Ministry said that in three months there were 12,184 PIA flights out of which 4,345 were delayed. PIA has been on a downward spiral for the last several months and passengers routinely complain of flight delays which last for several hours. Flight delays are not only experienced on local but international flights as well. Apart from frequent delays, passengers are also suffering due to cancellation of flights and mismanagement of PIA. BusIness development plAn devIsed: A Business Development Plan of Pakistan International Airlines (PIA) has been conceived to make the national flag carrier commercially and economically viable and to get the organization out of financial crises. The plan has already been furnished to Ministry of Finance for its consideration and examination, Federal Minister for Defence, Syed Naveed Qamar informed the National Assembly here on Friday. In his written reply, he described the financial and organizational reconstructing, Human Resource rationalization, fleet renewal plan and cost cutting measures as the salient features of the plan. Appreciating the recently appointed chairman, he said, the new chairman immediately took various steps to cut down unnecessary organizational expenses. The key objective of the plan is to stop bleeding through.
What’s up with SAARC these days? KARACHI ONLINE
SAARC Chamber of Commerce vice President Iftikhar Ali Malik has said that efforts are being made to increase trade between SAARC countries. Taking to media during the visit of city, he noted at present trade between SAARC countries is around 6 percent and efforts are been made to increase it and achieve jump of 10 percent by the end of current year. Referring to government of Pakistan's announcement to give Most Favor Nation (MFN) statues to India, he said that this move will not only improve political relations but also increase bilateral trade and investment between them. He was hopeful that increase in trade will also help to resolve other disputer between the two countries. Malik said that future of trade lies with Asia and added that China and India have already opened their markets for Pakistan as well as Chinese invests are prepared to invest in Pakistan in a big way.
Like a candle in the wind g
SBP governor reminds financial analysts that Pakistan is in fact facing challenges KARACHI STAFF REPORT
H
AvING largely been successful in mitigating the effects of exogenous shocks and contagion risks of the international sub-prime crisis, Pakistan is still facing challenges of its own. This was stated by Governor State Bank Yaseen Anwar while addressing the annual Chartered Financial Analyst (CFA) Convention and Excellence Awards ceremony here. Terming the current events unfolding in the international economic environment as challenging and unique, the SBP governor said conservative and prudent policies should enable the country to remain resilient from exogenous shocks of the global crisis. Anwar said though substantial progress was made to limit the effects of the financial crisis, the vulnerability still persisted in the shape and size not imagined earlier. “One key lesson policymakers and regulators learned from the recent subprime crisis is that among many other factors, weak corporate governance practices in leading financial institutions played a crucial role in creating the asset price bubble and misallocation of financial resources,” he said. As a result, the governor said, policymakers in the post-crisis period were placing more emphasis on improving market transparency and Corporate Disclosure. Few would have thought that the effects of the sub-prime crisis would question the survival of the Euro currency and
would threaten the entire European region to fall into a severe recession, he said. Anwar said the World Bank’s country review of Pakistan based on OECD Principles on Corporate Governance rated Pakistan above average on most of the principles. The World Bank in a survey also rated Pakistan as the leader on the robustness of corporate governance standards and practices in South Asia, he added. AnwAR uRged tHe need foR: Apart from an enabling environment, proper infrastructure, skills and knowledge, Anwar said, a responsible and ethical behavior of the participants was a pre-requisite for efficient and well functioning markets. “Domestically it behooves us to upgrade our corporate governance practices at all institutions to strengthen our pace of economic recovery and make the environment more challenging and productive for corporate and private institutions,” the governor said.
Raja appoints Kazi as SBP deputy governor KARACHI: Prime Minister Raja Pervez Ashraf has appointed Kazi Abdul Muktadir as deputy governor State Bank of Pakistan (SBP) for a period of three years starting from Friday. This was notified by the Finance Division saying Kazi has taken the charge on Friday. Prior to taking over as SBP Deputy Governor Kazi had been serving the central bank as its executive director since December 2002. He had been group head of banking supervision since June 2010 and was responsible for On-Site Examination, OffSite Surveillance and Enforcement actions over all banks in Pakistan. In this capacity, he gained repute within the banking community as a high calibre professional known to
handle difficult issues and situations. Born in 1957, Kazi, the SBP’s senior most executive director, served the National Institute of Banking and Finance (NIBAF) — the training arm of the central bank– as its Managing Director from December 2002 to June 2010. He successfully converted NIBAF into a premier centre of learning that is recognized in the whole region. Kazi completed his higher studies from McGill University Canada, London University, Sindh University and Karachi University. Holding Masters Degree, he has to his credit numerous diplomas and certificates in the field of Banking, Islamic Banking, Agri-business, Management, Planning, Energy etc. STAFF REPORT
President approves nominations for NEC ISLAMABAD NNI
President Asif Ali Zardari on Friday, on the advice of Prime Minister, has nominated four members of the Federal Government on the National Economic Council in terms of Article 156(1) of the Constitution. The newly nominated members of NEC are: Dr. Arbab Alamgir Khan, Federal Minister for Communications (MNA from Khyber Pakhtunkhawa); Ch. Ahmed Mukhtar, Federal Minister for Water and Power (MNA from Pubjab); Dr. Abdul Hafeez Shaikh, Minister for Finance, Revenue, Planning and Development, Economic Affairs and Statistics (Senator from Sindh); and Mir Changez
Khan Jamali, Federal Minister for Science and Technology (MNA from Balochistan). The President has also approved the nomination of Mr. Hasnain Mirza, MPA from Sindh as the member of NEC from Sindh. Spokesperson to the President Senator Farhatullah Babar said that according to Clause 1 of Article 156, the NEC comprises of the Prime Minister, the Chief Ministers and one member from each province to be nominated by the Chief Minister. The Prime Minister may also nominate four other members from time to time. He said that although it was neither mandatory nor constitutional requirement yet the former Prime Minister had nominated the above
federal ministers, one from each province, on the NEC. However, they ceased to be the member of the NEC on their ceasing to hold office of the Minister on 19th June 2012, notwithstanding their fresh oath taken on 22 June 2012. Besides, it is prerogative of the Prime Minister to make nominations on the NEC which require approval of the President, he said. Spokesperson further said that the nomination of Mr. Hasnain Mirza, MPA from Sindh as the member of NEC from Sindh was made by the Chief Minister Sindh replacing his Advisor on Planning and Development. The nomination after its approval from the Prime Minister’s office has also been approved by the President also.
Government firmly behind used car wheels KARACHI STAFF REPORT
Higher engine capacity used cars imported during last fiscal year defy the government’s claim of deviating from auto industry development plan, the officials justifying the relaxation in import policy had announced doing so to facilitate import of small segment cheaper cars for consumers. According to Customs data, the used cars’ import exceeded the 50,000 mark by the end of this fiscal year with expected breakup of 8,000 cars of 800cc, 18,000 units of 1,000cc and 14,000 units of 1,300cc and above. As per industry sources data, since July 2011 to May 2012 more than 41,500 used cars have been imported in the country. Besides this, they are causing a loss of over Rs 14 billion revenue to the government in terms of relaxations allowed pertaining depreciation allowance.
Bienvenue! g
France, Pakistan sign deal for construction of 48 MW Jaggran II ISLAMABAD STAFF REPORT
In a major boost to the small hydel power sector, France on Friday signed an agreement with Pakistan to provide a soft loan of 68 million Euros for the construction of 48 MW Jaggran II Hydropower Project in the picturesque Neelum valley in Azad Jammu and Kashmir. Additional Secretary of Economic Affairs Division (EAD) Iftikhar Ahmed Rao, Ambassador of France Philippe Thiébaud and Country Director of the Agence Française de Développement (AFD) Nicolas Fornage signed the funding agreement for the project. The PC-I of Jaggran-II project is already approved by the Executive Committee of National Economic Council (ECNEC) in November last year at a cost of Rs 7.056 billion. The construction on the project is planned to be start this year and complete within the next four years.
This project relates to the construction of a 48 MW hydropower plant located about 90 km from Muzaffarabad city towards North-East. The project will be built in the upper extent of Jaggran Nullah, a right bank tributary of the Neelum River. It will be located downstream of the existing 30.4 MW Jaggran I hydropower project, funded earlier with French support, and being operated since 2000 by the Hydro-Electric Board (HEB) of AJK government. Jaggran II Hydroelectric Power Project will operate as a run-of-the-river scheme and will not entail any major environmental or social constraints. It will be connected to the national grid, and will help alleviate the energy crisis in Pakistan. Upon its commissioning in 2015, it will provide a reliable source of renewable energy and a permanent supply of electricity for the 1.2 million people living in the Muzaffarabad area, with strong social and economical positive impacts. Pakistan is seeking foreign investment and
expertise, mainly from Europe for the construction of small hydropower plants for which there are ample opportunities in the country. The signing of the deal with France will help attack other European companies to make investment in the sector, experts said. France, through AFD, specifically supports rehabilitation and construction of medium-sized hydropower projects. This source of energy, nonpolluting and renewable, is also the most economical way of producing electricity in Pakistan. The country is blessed by a huge, mostly untapped hydropower potential, with only 6,500 MW of ongoing projects out of a total of 54,000 MW total potential. It is providing funds to address the current national energy crisis. To reduce the power demand, AFD is co-financing with ADB a multitranche programme on energy efficiency in domestic and industrial sectors. To improve the power supply, AFD is supporting the development
of renewable energies, currently with 22 MW Jabban project in Malakand District and Jaggran II hydropower projects. Proparco, a subsidiary of AFD for the private sector development, has also invested 40 million Euros during the last 3 years in the energy sector, including the New Bong Escape Hydropower Project; and is looking forward to supporting Independent Power Producers, energy efficiency, agro-industries and microfinance. AFD has also recently approved a soft loan of 11 million Euros, in order to fund detailed design studies for the Munda hydropower project, located in Mohmand Agency. As a member of the Group of Friends of Democratic Pakistan, France pledged 300 million euros at the Tokyo ministerial conference in 2009. With the funding agreement for Jaggran II signed with EAD, France has now a portfolio of projects amounting to 213 million Euros for the water and energy sector in Pakistan, corresponding to 73 percent of its pledge.
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Saturday, 7 July, 2012
Belarus to invest in automobile sector ISLAMABAD APP
A Belarus delegation headed by Sergey Romanov of OJSC MAZ Minsk Automobile Plant, called on Minister of State and Chairman Board of Investment Saleem H. Mandviwalla to explore investment opportunities in the field of assembly and manufacturing of heavy vehicles in Pakistan.
26b euro spending cut for Italy ROME AGENCIES
The Italian government agreed overnight Thursday on a series of measures to slash public spending by 26 billion euros ($32 billion) over three years, including major payroll cuts. "The economies in this measure will be 4.5 billion (euros) in 2012, 10.5 billion in 2013 and 11 billion in 2014," said Prime Minister Mario Monti. Much of the savings will be found in the health and public administration budgets, said Monti.
Smaller iPad to trounce rivals WASHINGTON AGENCIES
Apple, which is expected to launch a mini version of its market-leading iPad tablet, could quickly overpower its rivals in the segment with the addition of the new product, analysts say. The launch expected later this year however would probably prompt Apple co-founder Steve Jobs to roll over in his grave, given that the late technology pioneer ridiculed the small-screen tablets offered by his competitors.
Spanish yields jump LONDON AGENCIES
New steps by three major central banks to boost global growth failed to impress investors on Friday, sending Spanish borrowing costs back near unsustainable levels and hitting European stocks. The euro was nursing heavy losses at $1.2382 <EUR=, near a five-week low of $1.2364, while Brent crude oil was down over a dollar a barrel at $99.46.
Bulls arrange a rave party, SECP chairman is invited
Major Gainers
Bulls turn on the heat at KSE with a 139-point blast as SECP chairman seems all set to resolve their issues g
KARACHI STAFF REPORT
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HE bulls kept dominating Karachi stocks market on last working day of the week Friday with benchmark, KSE 100-share index gained 139.27 points. The day saw the index closing up by 0.98 percent at 14, 310.18 points against 14, 170.91 points of Thursday. Pakistan stocks closed bullish as investors speculated ahead of SECP chairman visit to KSE to discuss pending issues, said by Ahsan Mehanti, Director at Arif Habib Investments Limited. On Friday, the trading volumes at the ready-counter were recorded higher at 94.336 million shares against 38.844 million shares of the previous day. The trading value increased to Rs 3.756 billion compared to Rs 1.703 billion of the previous session. The intraday high and low, respectively, stood at 14, 323.17 and 14, 169.42 points. He added that the institutional interest witnessed in stocks across the board ahead of corporate earning announcements due next
week amid hopes for recovery in global stocks and commodities. The market capitalization grew modestly and increased to Rs 3.644 trillion from Rs 3.608 trillion a day earlier. Of the total 330 traded scrips, 159 gained, 73 lost and 98 finished as unchanged. The free-float KSE30 index also gained 141.56 points to close at 12, 452.00 points against the previous 12, 310.44 points. D.G.K Cement was the day’s volume leader counting its traded shares at 17.835 million with the opening and closing rates standing at Rs 41.72 and Rs 41.72, followed by Engro Foods Limited, Jahangir Siddiqui Company Limited, Bank Al-Falah and Fatima Fertilizer Company with turnover of 6.271 million, 5.947 million, 5.076 million and 4.588 million shares respectively. On the future market, the turnover increased by over three million shares to 9.379 million against 5.206 million shares of Thursday. The UniLever Pakistan and Nestle Pakistan Limited, up Rs 45.00 and Rs 44.29, led highest price gainers while, Siemens Pakistan and Mithchells Fruit, down Rs 7.97 and Rs 7.97 respectively, led the losers.
Asian stocks fall despite Europe, China rate cuts HONG KONG AGENCIES
Asian markets fell Friday as apparently coordinated action by Europe and China to stimulate the global economy failed to reassure wary investors ahead of US jobs data due later in the day. The Nikkei 225 index on the Tokyo stock exchange was down 0.36 percent at 9,047.46 points, Hong Kong fell 0.33 percent to 19,743.92 and Sydney was 0.49 percent lower at 4,148.8. Shanghai was down 0.55 percent at 2,189.249 points and Seoul was off 0.75 percent at 1,861.42. The European Central Bank Thursday trimmed eurozone borrowing costs by a quarter of a percentage point to 0.75 percent, in a widely anticipated move, and Denmark followed suit, cutting its key rate by 0.25 percent. Shortly beforehand, the Bank of England announced it was keeping its main interest rate at a record low 0.50 percent and said it would increase its quantitative easing stimulus policy by 50 billion ($78 billion) to boost Britain's recession-hit economy. The Bank of China also trimmed rates for the second time in a month, a surprise move that analysts said may indicate the world's second-biggest economy is slowing more quickly than expected. Markets were disappointed that the widely expected ECB move was not accompanied by additional stimulus measures to tackle the eurozone
02 Business
crisis. China's central bank did not immediately provide a reason for its surprise rate cut, but analysts said the move could signal that second quarter data due to be released next week could be worse than expected. Cautious investors were also awaiting the June US labour report for signs about the state of the world's largest economy, and whether it would prompt the US Federal Reserve to step in with fresh easing measures. "Investors are in a wait-and-see mood now, with important US jobs data due later Friday," Investrust CEO Hiroyuki Fukunaga told Dow Jones Newswires. On Wall Street, traders shrugged off the rate moves in Europe and China to focus on US data showing weakness in consumer spending. The Dow Jones Industrial Average ended down 0.36 percent, or 47.15 points, at 12,896.67 on Thursday. The S&P 500-stock index lost 0.47 percent, or 6.44 points, to 1,367.58, while the tech-rich Nasdaq added a bare 0.04 points to 2,976.12. Concern was spurred by the ICSC June sales report showing same-store sales for big retailers excluding Walmart were only up 0.2 percent from a year ago -- a third straight month of weak growth. On currency markets the euro lost more ground in Asian trade Friday. The common currency was changing hands at $1.2377 in Tokyo morning trade, down from $1.2391 in New York late Thursday.
COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE TURNOVER
UniLever Pak Nestle Pakistan Ltd. Colgate Palmolive Sanofi-Aventis Pak Island Textile
7245.00 4072.42 1018.00 185.34 204.95
7300.00 4168.00 1045.00 194.60 211.95
7103.00 4060.00 1040.00 193.98 211.95
7290.00 4116.71 1041.33 194.52 211.95
45.00 44.29 23.33 9.18 7.00
183 13 136 897 120
Major Losers Mithchells Fruit Siemens Pakistan Clover Pakistan Indus Motor Com Pak Synthetics
270.00 680.00 86.18 272.06 16.97
265.00 710.00 87.45 279.00 16.41
262.00 672.00 81.89 270.00 16.01
262.03 672.03 82.07 270.48 16.05
-7.97 -7.97 -4.11 -1.58 -0.92
101 198 1,316 2,554 9,401
Volume Leaders D.G.K.Cement Engro Foods Ltd. Jah.Sidd. Co. Bank Al-Falah Fatima Fertilizer Co
41.72 64.85 13.10 17.69 25.26
43.34 68.09 13.79 18.09 25.65
41.74 64.66 13.10 17.55 25.06
42.72 67.93 13.51 17.88 25.45
1.00 3.08 0.41 0.19 0.19
17,835,069 6,271,045 5,947,479 5,076,227 4,588,736
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.0247 146.1050 1.1765 116.3743
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUY
SELL
94.00 114.58 144.43 1.1666 91.14 11.93 25.42 24.93 94.75
95.20 116.40 146.68 1.1847 93.07 12.16 25.79 25.26 97.68
Tobacco price fixed at Rs 121 per kg ISLAMABAD STAFF REPORT
In an attempt to pacify the protesting growers the government has fixed the minimum price of Rs 121 per kg for the tobacco crop for the current year but there are still concerns whether it will pacify the farmers who are demanding fixing it at Rs 200 per kg. A notification of the Pakistan Tobacco Board (PTB) said it has revised not only the prices of tobacco but also the grade as well. The decision was made after a meeting of the cost of production committee. The Agriculture Prices Institute of the Ministry of National Food Security had estimated cost of production of tobacco at Rs183 per kg for the current year. It was based upon the cost of agriculture inputs. However, the Ministry of Commerce and PTB opposed the estimate, even though API estimates are accepted as benchmark for fixing support price of other major crops. PTB had a meeting with two leading cigarette manufacturers and other stakeholders including Tobacco Dealers Association and all the members of the Board, including the tobacco growers.
CORPORATE CORNER MoneyGram adds four banks and 650 agent locations
PTCL brings free double balance for Vfone customers
KARACHI: MoneyGram (NYSE:MGI) has generated 30% growth in Pakistan with the additions of Bank AL Habib (in operation since 1991), KASB Bank (1994), Bank Islami Pakistan (2004), and Tameer Bank (2005). The banks bring 650 new locations to the network increasing the total locations to 2,500+ throughout Pakistan.
IslAmABAd: In an unbeatable new offer, Pakistan Telecommunication Company Limited (PTCL) has launched an attractive double balance package for its vfone customers, giving absolutely free additional balance equal to the loaded amount. PTCL's vfone customers can avail this double balance offer if their vfone account has not been recharged after January 1, 2012.
Wateen upgrades digital cable services lAHoRe: Wateen Multimedia is now better serving the needs of its customers after the installation of a new head-end for improvement of its digital cable services. The head-end was built with state of the art equipment from Appear Tv and is scalable to the current multimedia and digital entertainment and information of Wateen’s existing customer base as well as any future growth in subscribers. As a result of this upgrade, Wateen’s customers will receive better quality cable as well as have access to digital channels with improved picture quality and reception, without interruptions.
First Habib Income Fund, Stock Fund, Cash Fund declare final dividends KARACHI: The Board of Directors of Habib Asset Management Limited, the management company of FIRST HABIB INCOME FUND, FIRST HABIB STOCK FUND and FIRST HABIB CASH FUND has declared Final Dividend for the year ended June 30, 2012 for the Unit holders of its respective Funds in its held on July 05,2012. fIRst HABIB InCome fund (fHIf): The Board, in its meeting held on July 5, 20112 announced Cash Dividend of Rs. 1.00 per Unit for the Unit holders having ‘C’ class of Units and on Bonus Units for every 100 Units on ex-bonus price of Rs. 100.0009 per Unit for other unit holders. The fund has already distributed Rs.9.00 per unit as interim dividend, thus
total distribution for the year ended June 30, 2012 shall be Rs. 10.00 per unit. fIRst HABIB stoCK fund (fHsf): The Board also announced a Cash Dividend of Rs. 3.75 per Unit for the Unit holders having ‘C’ class of Units and 3.7486 Bonus Units for every 100 Units on ex-bonus price of Rs. 100.0375 per Unit for other unit holders. fIRst HABIB CAsH fund (fHCf): The Board has announced a Cash Dividend of Rs. 1.05 per Unit for the Unit holders having ‘C’ class of Units and 1.0498 Bonus Units for every 100 Units on ex-bonus price of Rs. 100.0193 per Unit for other unit holders. The fund has already distributed Rs. 9.75 as interim dividend, thus total distribution for the year ended June 30, 2012 shall be Rs.10.80 per unit.
Bonanza designer Eid lawn series KARACHI: This year Bonanza has come up with something new and exciting by doing its first ever Eid collection designer lawn series. The philosophy is festivity and celebration and what better way to celebrate Eid this year but through the help of Bonanza! Bonanza has always been a house hold name for years, and even with having
such an establish clientele Bonanza has always been about re-inventing themselves.
KARACHI: Ever conscious of providing quality products to its customers, Pakistan State Oil (PSO) has incorporated new Mobile Quality Testing Units into its present fleet. Equipped with state-of-the-art petroleum testing equipment, the inauguration of these vans was carried out by PSO MD & CEO-Mr Naeem Y Mir at PSO House on Friday.
KARACHI: President NBP Mr. Qamar Hussain is receiving DOTY (Deals of the Year) Award from Mr. Shahjahan Sallahuddin, Country Head, The Banker, UK.