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Friday, 7 December, 2012
President calls for political consensus on economic policies ISLAMABAD ONLINE
Pak, Iran agree to commence work on gas pipeline project g Agreement likely to be signed today g
ISLAMABAD
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AkISTAn and Iran have agreed on commencing construction work on gas pipeline project forthwith despite US opposition. Iran will provide financial assistance to the tune of 500 million dollars in two installments and the agreement in this regard will be signed during President Asif Ali Zardari’s visit to Iran on today. Sources said Dr Asim Hussain, Advisor on Petroleum to the Prime Minister, during his recent trip to Iran held an important meeting with Iranian President Mahmoud Ahmadinejad. In this meeting all the pros and cons of the project were discussed and parameters were settled. It was decided that Iranian company in collaboration with Frontier Works Organization (FWO) would start the work of laying the gas pipeline project. Both the Iranian company and FWO will ink contract award agreement on the occasion. Documentation has been completed on this count. Announcement to awarding contract will
also be made on the occasion of President Zardari’s visit. Following the execution of this landmark agreement work on laying pipelines would start soon. Sources said a Russian company and companies of other countries were eager to obtain this contract but it is being awarded to an Iranian company which has completed the work of laying gas pipeline inside Iranian territory on Iranian borders. Sources added US is vehemently opposing this project and US authorities have given clear message to Pakistan to renounce this project. US has also stopped international donor agencies including World Bank, Asian Development Bank and other multilateral monetary agencies from extending financial grant to Pakistan for this project. But government has brushed aside US pressure keeping in view its growing energy needs besides gearing up the pace of work on this project to ensure its early completion. It may be recalled that this breakthrough was achieved during a separate meeting between Iranian president and President Asif Ali Zardari on the occasion of recently held D-8 summit conference in Pakistan.
President Asif Ali Zardari has called for political consensus on economic policies and their continuity to ensure sustainable development of the country. He was addressing members of the Overseas Investors’ Chamber of Commerce and Industries in Islamabad Thursday afternoon. The president asked the business community to highlight sector-specific problems and their solutions and make the government and politicians forge consensus on them. He said there should be at least consensus for the next ten years to realise the objective of economic development and prosperity. President Zardari also asked businessmen to organise an All Parties Conference on economic issues and said that he would himself attend such a moot. The president said that when the present government took the reins of power in 2008‚ the economic condition of the country was deplorable. He said that stock business had greatly plummeted while foreign exchange reserves had fallen to the level of just four billion dollars. Besides‚ terrorism had greatly affected the law and order situation in the country. He said that the government took a number of steps to improve the country’s economic condition and increase resources of the provinces. He said that although resources of the provinces have now increased but they are yet to shoulder their responsibilities in economic development. The president
said Pakistan had the potential to grow and develop and we have to tap this potential before asking our friends to help the country. He‚ however‚ pointed out that the international community ought to help Pakistan as it is fighting a war that was left behind in Afghanistan by the world community. He pointed out that grant of GSP plus to Pakistan by the European Union is an important step but the country needs more cooperation from the international community to overcome its economic challenges. He said the strength of a country lay in human resource and economic capability and cited examples of Singapore and other Asian countries. He said the job of the government was not to do business. It is for the government to create the enabling environment and it is for businessmen to do business, he added.
Earlier‚ in his speech‚ the president of the chamber Asif Jooma said the member companies of the chamber reinvested one billion dollar out of their profit last year in Pakistan which reflects their confidence in the policies of the government and strength of the country. He‚ however‚ called for forging consensus on policies‚ their continuity‚ reduction of taxes and overcoming the challenge of law and order to promote business and industry. He pointed out that the documented sector is overburdened by taxes which should be lowered. He also proposed establishment of a composite Ministry of Energy so that Petroleum and Water and Power sectors may work in unison. Jooma said the members of Overseas Chamber of Commerce and Industries were ready to play their role to expedite the economic development of the country.
‘GSP Plus status for Pakistan depends on implementation of past treaties’ KARACHI STAFF REPORT
Pakistan’s access to the GSP Plus status would depend upon Islamabad’s record of implementation of 27 international conventions relating to human rights, labour rights, environment and governance it had already signed and ratified. This was stated by Ambassador of European Union Delegation to Pakistan LarsGunnar Wigemark during a dialogue organised Thursday by the karachi Chamber of Commerce and Industry (kCCI) and EU’s delegation here at a local hotel on “EU-Pakistan Trade: Opportunities for Growth”. The event was attended among others by Lars-Gunnar Wigemark, along with Ambassador of EU countries in Islamabad, kCCI President Haroon Agar and Chairman Sindh Board of Investment Zubair Motiwala. In his speech, the ambassador apprised that EU was the largest trading partner of Pakistan with an annual trade volume of over 8 billion euro. EU maintains single trade, goods, services and currency. He articulated that on 23 January 2012 the EU Foreign Affairs Council, consisting of the Foreign Ministers of all 27 Member States in the European Union and chaired by the EU High Representative, Catherine Ashton, approved a joint EU-Pakistan 5 year Engagement Plan, including cooperation in a wide range of areas from trade to foreign and security policy. In June, Lady Ashton visited Pakistan and launched a Strategic Dialogue with her counterpart Hina Rabbani khar, Minister for Foreign Affairs. Just a few days ago, they met again in Brussels. On 15 november, the EU Autonomous Trade Preferences (ATPs) for Pakistan came into force as a response to the devastating floods that hit Pakistan in 2010 and 2011. Catastrophic flooding again struck northern Sindh and parts of Balochistan this year. As a result of these special ATPs, certain goods from Pakistan can enter the EU duty free or will be subject to specific ceilings (tariff rate quotas). The measures would remain effective until 31 December 2013. On January 1, 2014 the EU’s new
Generalised System of Preferences (GSP) regime would come into force. Pakistan is already benefitting from the existing GSP, but it is aspiring to obtain so-called GSP Plus status under this new regime. If Pakistan qualifies for GSP Plus, which involves a number of strict conditions, it would be able to export most of its products to the EU duty free/quota free. Major purpose to organizing EU-Pakistan trade dialogue event is to highlight the many success stories of EU-Pakistan trade relations and examine ways and means of diversifying and promoting our trade relations. The EU is spending 15 million euro on a unique trade diversification program to help support Pakistani companies gain access to EU markets. Ambassador stated that in addition to the EU’s direct humanitarian assistance to the devastating flood that hit Pakistan in 2010 and again in 2011 and 2012, the European Parliament and the European Council approved special autonomous trade preferences for Pakistan on 25 October 2012. These measures enable the export of certain goods from Pakistan to enter the EU duty free of subject to specific ceilings (Tariff Rate Quotas). The Autonomous Trade Preferences (ATP) entered into force on 15 november 2012 and will be in place until 31 December 2013. The ATP regulation is legally binding instrument and is directly applicable in all EU Member States. 26 products have been offered under the Tariff Regulated Quotas (TRQs) while 49 items will be covered under the non-tariff regulated quotas. In total, 75 items have been granted dutyfree market access under the concessions. Independent estimates suggest that, in particular, Pakistan’s Textile industry strands to benefit considerably from these measures offered unilaterally by the
EU. The EU Pakistan’s largest trading partner, receiving 21.2% of Pakistan’s total export. The trade increased by almost 5% annually between 2007 and 2011 and the total volume now stands at over euro 8.3 billion annual (2011). Textiles and clothing account for almost 70% of Pakistan’s exports to the EU. Pakistan’s imports from the EU mainly comprise mechanical and electrical machinery as well as chemical and pharmaceutical products. To broaden Pakistan’s export potential, which so far relies heavily on a single sector, Ambassador informed, the EU has launched a Trade Related Technical As-
sistance (TRTA) program. Through this unique program, the EU is spending a total of 15 million euro to support greater diversification of Pakistani trade with the EU. Several sectors have been targeted as especially promising for increased exports to the EU. The TRTA is also used to assist Pakistani companies to deal with the rigorous product standards for market access to the EU, including health standards. Exchanging viewpoint, President kCCI Haroon Agar said Pakistan enjoyed GSP Plus from 2002 to 2005, but after expiry of that period, the EU did not renew this package and hence Pakistan’s trade was discriminated.
It is heartening to note that EU leaders are supportive of the proposal to accommodate Pakistan in the new GSP Plus initiative from 2014 onwards. kCCI proposes that the Pakistani economic team discuss the game plan to ensure that Pakistan not only qualifies for the GSP Plus commencing from 2014, but also convinces SAARC countries to strive for a uniform and common strategy applicable to all SAARC countries. This would naturally benefit Pakistan, and provide the Pakistani exporters the momentum to compete with other competitors on an equal footing. Chairman SBI, President Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) and former President kCCI Muhammad Zubair Motiwala exp r e s s e d gratitude to EU to accord the EU Autonomous Trade Preferences (ATPs) for Pakistan as a response to the devastating floods hit to Pakistan. He admired the initiative by EU’s new Generalised System of Preferences (GSP) plus to Pakistan. He was of the view that dialogue deficit between EU and Pakistan should be abridged and similar events on trade dialogues be arranged frequently. While exchanging views he said that Pakistan is acting as frontline state in the war against terror in the region and suffered colossal financial losses. He said that the terrorism in the region has worst affected the GDP growth of Pakistan and its economy. Deteriorating law and order situation and energy crises has also brutally affected economic and commercial activities. The FDI has been declined from $5
billion to $1 billion. He urged that friendly countries of Pakistan, particularly European Union should reciprocate in terms of trade and technology transfer because trade is crucial to overcome current account deficit of about $3.5 billion. He voiced that EU should understand the dynamics of Pakistan, majority of population is youth of age bracket 20-23 years who need employment. If Pakistan is granted market access, thousands of employment opportunities can be created for youth saving them not to fall in the hands of unscrupulous elements. To enhance trade energy is vital, in absence of energy, even trade access granted Pakistan would not be able to meet the orders. He urged EU for alike if not similar treatment as accorded to Bangladesh as prices of utilities are cheaper there as compared to Pakistan which make Pakistani exporters unviable and uncompetitive. He hoped Government of Pakistan’s success in achieving GSP plus and urged out of box approach. He opined that kCCI can provide its proposal to Government of Pakistan accordingly. He was ambitious that $1 billion export means providing jobs to 100,000 people. He urged exploitation of Thar Coal to produce energy. Perception of Pakistan must be truly and positively depicted in the eyes of countries worldwide. Prosperous Pakistan is in the interest of the EU and well as the countries around the globe, he maintained. The EU Delegation to Pakistan and EU Member States’ Belgian Ambassador Peter Claes, Czech Republic Ambassador Miroslav krenek, Hungarian Ambassador Istvan Szabo, Romanian Ambassador Emilian Ion, Spanish Ambassador Javier Carbajosa Sanchez, Swedish Ambassador Lars-Hjalmar Wide, Deputy Head of EU Delegation to Pakistan Pierre Mayaudon and Consul General/Diplomats of Germany, France, Italy and Austria shared success stories of trade with Pakistan and companies of their respective countries successfully operating in Pakistan. Former President kCCI Majyd Aziz, Senior Vice President Shamim Firpo, Vice President nasir Mehmood and Managing Committee Members of kCCI also attended the mega event.
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Wall St rallies on fiscal hopes, Spain hits euro NEW YORK
Major Gainers COMPANY UniLever Pak Unilever Food Island Textile Bhanero Tex. AL-Ghazi Tractors
U
OPEN 9803.56 4190.00 1040.00 265.50 220.05
HIGH 9999.00 4380.00 1092.00 278.77 231.05
LOW 9800.00 4200.00 1040.00 274.50 220.50
CLOSE CHANGE 9953.45 149.89 4290.00 100.00 1092.00 52.00 278.77 13.27 231.05 11.00
TURNOVER 2,180 40 200 1,000 40,200
1600.00 619.50 920.00 298.00 549.50
1568.00 560.50 916.00 277.68 542.10
1599.00 567.13 916.00 282.33 543.75
-50.67 -22.87 -18.50 -9.96 -4.46
250 1,400 150 38,700 15,600
11.67 6.90 3.58 17.64 7.44
10.81 6.77 2.70 17.00 7.20
11.66 6.80 3.58 17.30 7.33
0.99 -0.02 1.00 0.29 0.10
23,779,500 16,210,000 14,418,500 8,072,000 7,724,000
Major Losers Bata (Pak) Indus Dyeing Wyeth Pak Limited National Foods Millat Tractors Ltd.
AGENCIES
S stocks rose on Wednesday after President Barack Obama said a deal to avert the looming fiscal cliff was possible within a week, while the euro slipped after a disappointing Spanish bond auction. A more than 6 percent drop in tech giant Apple made for the stock’s worst day in almost four years and constrained Wall Street’s gains. The nasdaq fared worse than the other indexes as a result. Investors continued to keenly monitor any progress in talks to avoid the so-called fiscal cliff of year-end tax hikes and spending cuts. Obama said an agreement could be reached in a week if Republicans compromise on taxes. “Just the idea that we could have some kind of timeline is enough to eliminate some of the concerns,” said Todd Schoenberger, managing partner at LandColt Capital in new York “The fiscal cliff is the headline driver, so
Business 02 1649.67 590.00 934.50 292.29 548.21
Volume Leaders Byco Petroleum Fauji Cement P.I.A.C.(A) P.T.C.L.A Lotte PakPTA
10.67 6.82 2.58 17.01 7.23
Interbank Rates US Dollar UK Pound Japanese Yen Euro
96.6347 155.6399 1.1716 126.3499
Dollar East BUY anything even slightly positive will move markets.” Both Republicans and Democrats dug in on the talks, urging quick action but still offering no compromises. Economists say the $600 billion in tax hikes and spending reductions that will start to go into
effect at the beginning of next year could send the economy back into recession if politicians don’t come to an agreement to avoid it. The euro fell after hitting a seven-week high against the dollar in early trading, stung by the disappointing Spanish bond sale and
weak euro zone economic data. The euro was down at $1.31. Investors also held off taking aggressive bets ahead of the European Central Bank’s policy meeting on Thursday, which will be watched for any signs on next year’s policy path.
‘Malakand tunnel project heralds SBP extends validity of refinance schemes by one year beginning of development’ ISLAMABAD: Senior analyst Shamim Shahid appreciated South korea for its assistance for construction of Malakand tunnel project and said that the project would reduce pressure of traffic on Torkham Road because it would link Dir-Chitral with Tajikistan. Talking to a private news channel, he said that efforts were underway to extend the road to Tajikistan through Lowari Tunnel. He added that Malakand tunnel would provide an opportunity to establish direct trade relations with Central Asian Republics. He said that project would also link the route with Afghan province Badakhshan and Uzbekistan through Garam Chashma. He said that Malakand tunnel would promote tourism sector in the khyber Pakhtunkhwa. He termed the Malakand tunnel project as beginning of new era of development in the area. Shamim Shahid said President Asif Ali Zardari had already approved the construction of Express Way from Malakand to Chitral. APP
KARACHI: State Bank of Pakistan (SBP) Thursday extended the expiry date of the refinance facility for modernisation of Small and Medium Enterprises (SMEs), refinance scheme for the revitalization of SMEs in khyber Pakhtunkhwa (kPk), Gilgit-Baltistan (GB) and the Federally Administered Tribal Areas (FATA). The central bank also extended the expiration of SBP’s financing facilities for storage of agricultural produce and agri. loans refinancing and guarantee scheme for war-affected areas of kPk and FATA by one year. These facilities would now remain valid up to December 31 next year, the central bank said in a series of circulars issued Thursday. The refinance limits already sanctioned in favor of selected banks and the Development Financial Institutions (DFIs) under the above-mentioned schemes would also continue to be available up to the expiry date, SBPsaid. STAFF REPORT
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
96.90 125.34 154.45 1.1621 96.27 12.25 26.16 25.66 99.92
SELL 97.40 126.88 156.31 1.1761 97.94 12.46 26.45 25.90 102.58
Energy policies behind current CNG crisis: PEW ISLAMABAD: Pakistan Economy Watch (PEW) on Thursday said energy policies had resulted in sluggish growth and the current CnG crisis. Situation would improve if a major reshuffle in energy related department was undertaken as the Supreme Court had proved incompetence of petroleum ministry and Ogra by rejecting their reports, said, PEW President Dr Murtaza Mughal. He said that some elements had planned to reap benefits while keeping whole nation focused on the on-going crisis. Dr Murtaza Mughal opined that Competition Commission’s raid on the office of CnG association seems politically motivated. He asked the Petroleum advisor to take immediate action against the CnG filling stations involved in gas theft. Dr Murtaza Mughal said that masses must know why an action had been delayed against CnG operators stealing gas and how many of such CnG outlets are owned by ministers, senators and politicians related to ruling coalition. ONLINE
CORPORATE CORNER Pakistan, Thailand ties exemplary, says Khuhro
KARACHI: A group photo on the occasion of 6th Pakistan Micro Finance Country forum 2012.Chief Guest.Kazi Abdul Mukhtadir Deputy Governor State Bank of Pakistan. Kaukab Iqbal Chairman CAP, Bilal Mustafa MD & CEO Bank of Khyber,Mr.Ateeq ur Rehman Advisor B&IS (KCCI). Menin Rodrigues President & CEO Shamrock also seen in the picture.
Adamjee Life Funds show positive trend KARACHI: Adamjee Life debt and equity fund performance during november saw a positive trend; per unit nAVs (as of Dec 1st, 2012) are as follows: Investment Secure Fund (S&A) Bid 116.2962; Offer 122.4171 Investment Multiplier Fund Bid 124.7350; Offer 131.3000 Investment Secure Fund (IFL) Bid 116.3059; Offer 119.9030 Investment Diversifier Fund Bid 106.3912; Offer 109.6818 Amanat Islamic Fund Bid 99.7147; Offer 104.9628 Considering the growing demand for shariah compliant investment options in Pakistan Adamjee Life has launched “Amanat Islamic Fund”. Adamjee Life “Amanat” fund is an Islamic openend asset allocation/ investment fund, which seeks to achieve its objective of stable yet aggressive returns through investing in a diverse portfolio of shariah compliant investments.
KARACHI: Thailand is fortunate to have a caring and wise king with vast knowledge and far reaching compassion to lead the nation. This was said by Thai Consul General in karachi, Mr Wichai Sirisujin, who hosted a reception last evening to celebrate the 85th birthday of king Bhumibol Adulyadej. The Thai consul general said Thailand had made great progress due to the tireless work and devotion of king Bhumibol Adulyadej who ascended the throne in June 1946 has reigned for 67 years and is the longest ruling Thai monarch. The king who is a constitutional monarch takes great interest in Thailand’s national development laying great emphasis on education, science and technology, foreign relations, water resource management, soil conservation. The Thai consul general said this year also marks the 60th anniversary of diplomatic relations between Pakistan and Thailand which were formally established on 10th October 1951 and both nations have enjoyed excellent relations since then. Sindh Assembly Speaker nisar Ahmed khuhro who was chief guest at the reception felicitated the Thai king and Thai people, and wished them a bright future. He said it was heartening that Thailand was blessed with a monarch who possessed such great vision.
KESC, PIA join hands on energy conservation, sign MoU
Pakistani industries to get ‘Int’l Fire Safety Trainings’
KARACHI: karachi Electric Supply Company (kESC) signed a Memorandum of Understanding (MoU) with the national flag carrier, Pakistan International Airlines (PIA) to engage a joint action plan, for the implementation of efficient practices in energy conservation, at PIA’s offices and installations. The MoU was signed by kESC’s CEO Mr Tabish Gauhar and Captain Junaid Younus, Managing Director PIA. Speaking at the signing ceremony, Mr. Tabish Gauhar said that “kESC would provide all possible technical assistance and support to PIA to ensure the earliest possible implementation of the efficiency and conservation program, aimed at saving the electricity consumption.” Addressing the audience which included senior team members from both the organizations, the CEO kESC underscored the importance of energy conservation and the impact it leaves on the environment, saying that, “A Megawatt saved is a Megawatt generated.”
KARACHI: Worldwide Responsible Accredited Production (WRAP), ), the world’s largest independent, facility-based social and environmental compliance certification program in the sewn manufacturing sector, will offer 5 fire safety training courses in karachi and Lahore during December 2012. This will mark the first time that an international training workshop addressing the crucial industrial needs of fire safety and risk assessment is being organized in Pakistan. WRAP is conducting these fire safety workshops in Pakistan in partnership with Accordia Global Compliance Group, and in collaboration with several Pakistani trade bodies and associations like SITE Association karachi, PRGMEA and Pakistan Hosiery Manufacturers Association (PHMA).
Qatar Airways flies into Poland
OGDCL makes another gas discovery of 20 mmcfd in Sindh ISLAMABAD: Oil & Gas Development Company Limited (OGDCL) has discovered gas from the Exploratory Well Sulman-01 located in District khairpur Sindh Province. The well flowed at 20 mmcfd gas through 32/34” choke at well head flowing pressure of 3340 PSI. OGDCL is operator in khewari Block Joint Venture and having working interest 95% and Government Holding Pvt Limted (5%). The structure of the Suleman-01 was delineated drilled down to the depth of 4575 meter targeting to test the potential of Lower Goru Formation of cretaceous age.
WARSAW: Qatar Airways today launched scheduled flights to Poland, its latest entry into Central Eastern Europe and 12th new route of the year. Despite wintry weather, the Airbus A320 operating flight number QR 980 was warmly welcomed at Warsaw Frederic Chopin Airport in the Polish capital to a special arrival ceremony. Warsaw marks the latest point in the airline’s expanding global route map, now totalling 122 destinations across Europe, Middle East, Africa, Asia Pacific, north America and South America. In Europe alone, the carrier now flies to 32 destinations with Zagreb, Belgrade among the airline’s route start-ups this year.
Friday, 7 December, 2012