profitepaper pakistantoday 09th may, 2012

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Cotton could ‘bale out’ economy

profit.com.pk

Page 02

Wednesday, 09 May, 2012

pipeline projeCts g

power play

China ready to help pakistan in power seCtor ISLAMABAD AMER SIAL

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hina asked Pakistan on Tuesday to resolve issues faced by Chinese companies interested in investment in energy sector to undertake numerous power and energy sector projects for which they will be bringing investment and machinery to fast track their completion to overcome energy shortage crippling the economy. an official source said the Chinese asked Pakistan to form a comprehensive power development plan in order to achieve better energy output, as they showed interest to invest in 14 mega hydel power projects having cumulative potential of 10,000 MW. The two days of Pak-China Joint Energy Working Group (JEWG) was led by the Minister for Water and Power naveed Qamar and Chinese delegation was led by Wu. The talks reviewed the financial and other aspects of projects related to energy cooperation. in a joint statement, Wu said that ongoing energy crisis in Pakistan could be resolve my mutual energy cooperation of both sides. We believe energy

cooperation between Pakistan and China should continue and future of both is bright. he said that infrastructure development is the need of time to mature the ongoing and forthcoming energy development projects for easy transportation of machinery and equipments on the site. Qamar assured Chinese official for complete support to Chinese entrepreneurs, who have been interested or involved in joint energy development projects. he said Chinese authorities gave positive response in context of financing different mega and small energy power projects including 969 MW neelum Jehlum hydropower Project (nJhP) costing $3.6 billion, 1100 MW Kohala hydropower Project (KhP) costing $2.2 billion as well as more than 17 other hydro, renewable and clean energy hydro power projects. The minister said the government would soon send a high level delegation comprising financial and legal managers to discuss and settled down the concerns of both partners. he also maintained that the issue raised by Chinese authorities regarding issuance of noObjection Certificate (nOC) would be addressed on immediate basis and concrete

4 years later…

Sindh govt scatters to the four winds Fails to utilise 35pc budget uplift eyes foreign investment worth $20bn in wind, coal projects g

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KARACHI ISMAIL DILAWAR

T

HE PPP-led democraticallyelected Sindh government has been able to utilize 65 percent of the development funds it allocated during the last four annual provincial budgets.

Of the “whopping” Rs 413.5 billion earmarked for development during a four-year period, ranging from FY2008-

09 to February FY12, the Sindh government spent only 270.2 billion, letting the remaining huge sum of Rs 143.3 billion or 34.65 percent lapse.

Further, in what appears to be at this juncture a wishful thinking, the Sindh government is foreseeing the energyscarce Pakistan to become a “power house” of the Asian region within next few years, as a host of foreign firms were committed to invest around $ 20 billion in the wind and coal related energy

decision would be taken to resolve the issue. he urged for financing for particularly mega hydropower projects, which would definitely helpful in near future to overcome the ongoing energy crisis in Pakistan. he said the contact of laying transmission lines under UCh-i, Guddu and nJhP would be awarded those companies either Chinese or local, who will win international competitive bidding.

Pakistan also expressed its interest over the proposal of infrastructure Fund (iF) discussed in last JEWG meeting held in Beijing on aug 2011 and stressed over formation of banking consortium to finance the infrastructure development.

Later, signing ceremony for three wind energy projects was held including signing of Letter of intent (Loi) on 150 MW wind energy project between United Energy Pakistan Limited (UEPL) and China Development Bank Cooperation (CDBC), inking Memorandum of Understanding (MoU) of 350 MW wind energy project between Three Gorges and Pakistani authorities and document inked between Dawood Power Private Limited (DPPL) and hydro China Engineering Company Limited (hCECL) for 50 MW power project.

projects in the province. Unveiling his government’s four-year performance report here in the Sindh Assembly on Tuesday, Sindh Chief Minister Qaim Ali Shah said his government during 20082011 had allocated a development budget of Rs 413 billion, of which Rs 318 billion were earmarked under the Annual Development Program.

However, he said during the review period of the total allocated Rs 413.5 billion the concerned authorities released Rs 325.8 billion of which only Rs 270.2 billion were utilized. “The need for full and proper utilization of these funds, however, remains,” the chief minister said while looking at the Officers’ Gallery filled mostly by the secretaries of provincial departments. Further, to develop the province’s agriculture sector, Shah said, the government had increased its expenditure by 300 times to Rs 11 billion in FY11 against 4.8 billion of FY0708. Some 30,000 water courses had also been improved besides the plugging of hundreds of breaches developed in the canals in the wake of repeated natural calamities. About flood relief efforts, he said Sindh government had spent Rs 41

30 alternate energy projects in pipeline to yield 1500Mw by next year

ISLAMABAD: More than 30 alternate energy projects including wind and solar are in pipeline which would yield over 1500 MW power for the national grid by next year. Since coming to power, present coalition government has taken a numerous steps to create an enabling environment for investment in Renewable Energy projects and now private sector investors have shown keenness to invest in this sector. Giving details, an official at Alternate Development Energy Board (AEDB) on Tuesday said the wind projects which are in advanced stages of implementation would produce 556 MW. These are 50 MW of Fauji Fertilizer Construction at the cost of $133.56 million, Zorlu Enerji Pak of 56 MW at the cost of $143.60, Three Gorges Construction of 50 MW at the cost of $134.75, Foundation-1 of 50 MW at the cost of $128.69 million, Foundation-2 of 50 MW at the cost of $128.70 million, Lucky Energy of 50 MW at the cost of $132.53 million, Sapphire Power of 50 MW at the cost of $128.87 million, Tenaga of 50 MW at the cost of $129.67 million, Generasi Power of 50 MW at the cost of $132.56 million, Master Energy 50 MW at the cost of $133.68 million and Gul Ahmed 50 MW at the cost of $132.87 million.

He said the projects which are providing electricity to the grid are six MW Wind (Zorlu Energy), 7 MW Biogas project by Shakarjang Sugar Mills, and 27 MW plant at Al-moiz Sugar Mills in D.I.Khan. The official said AEDB had successfully completed a Rural Electrification Project under which 3000 Solar Home Systems were provided in 49 villages of district Tharparker, Sindh. He said the new projects from biomas to energy are also in advance stages and would produce more than 60 MW energy for the national grid and help control loadshedding. He said NEPRA has also issued generation license to 14 companies to produce more than 200 MW energy. Moreover, the official while giving details about solar projects, said during the present government Parliamentarian Sponsored Village Electrification Programme (PSVEP) was launched under which 119 Solar Home Systems have been provided to 34 villages of Deh Tiko Baran District Jamshoro, Sindh and 200 Solar Home Systems in 06 Villages of Karak, District Khuzdar, Balochistan. The systems are operational and the users are satisfied as 29 new schemes under this programme have been prepared for implementation, he added.

Regarding micro hydro power projects, the official said with the assistance of Global Environment Facility (GEF), a micro hydro project titles “Productive use of Renewable Energy” has been launched in Chitral, Gilgit and Skardu where more than 90 units of Micro Hydro power are being installed. APP

billion on account of relief and Watan Cards during the disasters of 2010 and 2011, the damages of which were estimated at Rs 464 billion. On the fiscal management and development side, Shah said Sindh Revenue Board was expected to collect sales tax on services worth Rs 18.5 billion till March 2012 against Rs 8.3 billion transferred by the federal government in 2011. About energy sector, the chief minister said a host of foreign companies were willing to invest around $ 20 billion in the wind and coal related energy projects in the province, especially the “prestigious” Thar coal project. It says over two dozens foreign companies from countries like China, Turkey, Britain, South Korea and others are working on the wind and coal and have the capacity to add up to 10,000 megawatts of electricity to the national grid by 2020.

“They have committed to invest around US$20 billion,” he said. Blasting Sharif brothers for their short-mindedness that rendered the Punjab’s rulers unable to tap the country’s waste natural resources like coal, Shah said the said two resources had the potential to add more than 25 percent of the total current installed

capacity of the country within next few years. “This government has taken very bold steps to convert Pakistan into a power house of Asia,” the chief minister told the desk-thumping provincial lawmakers. The steps taken, he said, would also in turn be pivotal for economic growth and job creation across the country. About Thar Coal power project, Shah said, a host of foreign firms were busy in various mining and gasification works on the Thar coalfields while 30 to 35 others applications were pending for the want of federal government’s clearance for the allotment of land. M/s Oracle, a firm listed at the British stock exchange, would be investing over Rs 2.5 billion and would start mining at one of the four blocks at Thar coal fields. “We would get 4000 to 5000MW of electricity from Thar Coal project by 2015,” said he. The Sindh chief minister slammed the past rulers, particularly the Sharif brothers, for devising flawed energy policies under which the country was compelled to import 6 million tons of coal despite the availability of 176 billion tons of coal reserves in the country.

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02

Wednesday, 09 May, 2012

news FUel Fantasies

CoUnterinG Catastrophes

Cotton could ‘bale out’ economy g

despite calamities cotton production remained as high as 13.3m bales ISLAMABAD

D

APP

ESPITE of floods and severe rains in Punjab and Sindh, the production of cotton remained as high as 13.3 million bales (170kg each), five per cent more than the last assessment of 12.59 million bales by Cotton Crop Assessment Committee (CCAC). Cotton Commissioner Dr Khalid Abdullah attributed the high production mainly to extraordinary high cotton prices during 2010-11, that became a source of inspiration for high input usage and better management of the crop. Dr Abdullah told APP that Almightly Allah blessed Pakistan with extraordinary cotton crop in 2011-12. “Despite of floods and severe rains in Punjab and Sindh, the production remained as high as 13.3 million bales (170kg each), 5 per cent more than the last assessment of 12.59 million bales by Cotton Crop Assessment Committee (CCAC)”, he remarked. He added that the high production is mainly attributed to extraordinary high cotton prices during 2010-11, that became a source of inspiration for high input usage, and better management of the crop. Dr Abdullah said that the nature favored with low Cotton Leaf Curl Virus (CLCV) disease and mealy bug incidence.

“Although floods took a toll of about 2-2.5 million bales but the country managed to sustain a reasonably good cotton production”, he remarked. He said that the deteriorated quality due to non-stop rains during boll opening stage of the cotton and high production affected the market badly. “Farmers expecting last year’s high prices have to face entirely different situation”, he remarked. The last year’s production, he said remained a source for projecting next year’s crop volume and some exaggerated figures are being quoted by different economic analytical forums without evaluating the picture holistically. Dr Khalid informed that a report published in April 2012,

by Global Agriculture Information Network (GAIN), under Foreign Agriculture Services and United Agriculture Department of Agriculture projected Pakistan’s cotton production for the year 2012-13 as 10 per cent increase in area and

production. The author forecasted the Pakistan’s cotton cultivation on 3.3 million ha and production as 11 million bales (480 lbs per bale) equivalent to 14.1 million bales (170 kg). The report also stated that GOP has approved 11 biotech and 3 non-biotech cotton varieties for general cultivation in the country. The report, he said apparently is not based on any authentic source or data. Such premature projections may damage the cotton market, shake investor’s confidence create bias estimates of global cotton stocks. The Ministry of Textile Industry can not endorse such reports. He added that looking at the ground realities, the Government of Punjab has approved 8 and not 11 new biotech and 6 (not 3) non biotech varieties. The biotech varieties approved are with Mon 531 gene for commercial cultivation in the province subjected to the commercialization authentication from the National Bio-safety Committee. “The authentication is still awaited”, he remarked. Dr.Abdullah added that early sowing in Punjab, being the main cotton belt, has achieved 21 per cent less than last year, whereas, in Sindh sowing is 2 per cent lagging behind the area sown in the same period in 2011-12. The Indus River System Authority has already declared the water shortage by 21 per cent till the end of June 2012. n The availability of certified seed of approved cotton varieties is not as much as last year. n The prevalence of CLCV is uncertain and if weather becomes favorable to CLCV, the disease can outbreak and cause damage. n Fertilizer availability will remain satisfactory; however pesticides availability could become an issue as APTAC meeting has not been convened for more than 2 years due to shifting the subject in different ministries after the devolution of ministry of Food Agriculture. n After evaluating all factors, and not being pessimistic, achieving the last years’ target seems a difficult task. n After the defunct Federal Committee on Agriculture (FCA) of the devolved Ministry of Food and Agriculture, the targets of any crop commodity are not officially fixed, rather provinces use their last year’s achievements as target of the next year.

requiem for a dream g

Cheaper fuel to remain a dream for poor in pakistan KARACHI STAFF REPORT

T

HE decision of shutting down one complete industry in Pakistan that involves huge investments, employments and is serving the nation with cheaper and environment friendly way of transport is being done without finalizing the alternative means, sources in auto sector said today. Recently there is a lot of debate going on alternate fuel systems and its availability to general public in a package that is affordable to them.

Recent intentions of government are clear to promote LPG and discourage the consumption of CNG. The decision is not viable as it seems it has been taken in haste and without considering the pros and cons, the sources revealed. In order to develop any industry, proper planning, analysis and infrastructure is required that is not done in this case. Lots of discussions are being done but so far, without any conclusion and clarity. The decision does not answer queries like when, how and at what comparative rates LPG is available.

There is no infrastructure available and no distribution network is planned so there is a huge question mark on portability of LPG to end consumers. Stability in pricing of LPG is yet

pjMa demands tariff increase on jute yarn, twine import ISLAMABAD APP

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AKISTAN Jute Mills Association (PJMA) has requested the government to increase tariff on import of jute yarn and jute twines in order to protect the domestic industry.

“The PJMA requested National Tariff Commission (NTC) to enhance present customs duty of 10 per cent to 25 per cent on import of jute yarn and jute twines to protect the domestic industry”, said a statement issued here by the NTC on Tuesday. The association made its demands on the grounds that yarns and twines are made from

MeetinG adjoUrned

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STAFF REPORT

HE meeting between Engineering Development Board (EDB), Pakistan Automotive Manufacturers’ Association (PAMA) and Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) to discuss auto industry development program (AIDP-II) for 2012-2013 to 2016-2017, has been adjourned without any conclusion as the local manufacturers and EDB are firm on their respective viewpoint.

According to sources, the representative of local auto industry have strongly opposed the notion by EDB that the new AIDP will bring in more investment and technology to the country. They said that the EDB’s proposal will wipe out the local auto parts manufacturers and the OEMs will prefer to import their models from Japan and other countries after a drastic cut in import of CBUs as manufacturing a vehicle and paying the duties on it will be more costly. According to the sources, the representative of auto industry registered a strong protest against the EDB’s recommendations saying that these will affect the employment of over 1.5 million workers in auto and allied industries besides inflicting a massive damage to foreign reserves and national economy. They said that the industry has already been facing the menace of smuggling, under invoicing and misdeclaration and this new proposal will also only result in junk being dumped into the country and not the technology and Pakistan will follow into the footsteps of New Zealand where the local auto manufacturing industry has been vanished completely. They said that this is being done just to facilitate entry of one bike maker which does not even fit

both jute and sisal plants and are of same nature and use for similar purposes. The product, yarn and twines of jute are imported at 10 per cent CD while yarn and twines of sisal are imported at 25 per cent CD. The applicant therefore requested that the product, yarn and twines of jute may be imposed 25 per cent CD instead of present 10 per cent to bring uniformity in both products and protect the domestic jute industry against cheaper imports of yarn and twines. On request of PJMA, the NTC therefore invites views comments and other information, relevant and helpful in this study from all

kCCi’s ChUMs

edB’s deadlock with auto part manufacturers LAHORE

another concern that is so far responded by vague statements. There should be at least 30-40% price difference between LPG and Petrol in order to make LPG a feasible option in comparison to petrol and therefore it demands sustainable pricing for LPG which is difficult because of less availability and high imports of LPG in Pakistan.

In case of a low difference of about 10-15%, LPG will ultimately be expensive for end consumers because of its low mileage per unit and less efficiency. A car that runs 14 km in 1 liter of petrol will cover 11 km in 1 liter of LPG whereas it covers 21 km in 1 kg of CNG as per a study from sector experts said. Considering from the end consumer’s point of view, it will be an additional burden to the already affected citizens of the country as LPG is an entirely different kit so all the vehicles that are currently converted on CNG will have to be reconverted on LPG so the end consumer will have to bear the cost of new kit and installation. All these factors demand a steady smooth transition with proper planning, analysis, infra structure addressing the concerns of all stake holders and with the intent that the decision has to support the general public and should put them at ease. For sure such decisions cannot be taken over night if so, will always lead to devastating situations.

into the criteria of New Entrant and it will undo the achievements of last 20 years in engineering sector which is the only sector surviving despite adverse Govt policies like used cars imports, etc. As per the EDB plan, for the two-wheeler sector, 50 per cent import duty is proposed on CBUs in 2012-2013 from the present 65 per cent.

While duty on non-localized CKD is proposed to be slashed to 5 per cent from 15 per cent, and the duty on localized CKDs is proposed at 25 per cent in 2012-2013 from 47.5 per cent. Similarly, after making reduction in the subsequent fiscal years, the duty on parts would be brought to five per cent by 2017-2018. On the other hand, the two wheeler industry had suggested the government to bring down the import duty on CKD kits to 10 per cent from 15 per cent and CBU rate to 55 per cent from 65 per cent. For cars, duty on non-localized CKD kits is currently 32.5 per cent which the EDB proposed to slash at 20 per cent, while on localized parts the import duty will be reduced to 35 per cent from 50 per cent next year, which will be further brought down to 20 per cent by 2016-2017.

The rate of duty on 1000cc CBU is suggested at 40 per cent from 50-55 per cent followed by 50 per cent on 1,000-1,500cc from 60 per cent in 2012-13, while CBU duty on cars from 1,500cc to 2,000cc is proposed at 60 per cent from 75 per cent. The EDB road-map also includes withdrawal of regulatory duty of 50 per cent on cars exceeding 1,800cc being an impediment to growth in this segment, but the biggest gainers will be the importers of Pajero, Land Cruisers, BMWs and Mercedes vehicles.

The automakers said that the policy will only benefit the luxury cars importers and the claim that consumers will get cheaper cars is baseless as cars above 2000cc are attractive for common man which proves that the policy and expected results are poles apart.

Czech mate g

investors willing to enter into joint ventures with pakistani investors KARACHI

K

STAFF REPORT

ARACHI Chamber of Commerce & Industry’s President Mian Abrar Ahmad along with President of Czech-Middle Asian Chamber of Commerce (CSOK) Jiri Nestaval accompanied by the Czech business delegation called on Speaker Provincial Assembly of Sindh Nisar Ahmed Khuhro today to apprise about the joint efforts of KCCI and Czech Middle Asian Chamber of Commerce to enhance bilateral trade between Pakistan and Czech Republic.

President KCCI Mian Abrar Ahmad stated that the Karachi Chamber is committed to promote industry in Karachi and elsewhere and he was steadfast to draw the attention of foreign investors to invest in Pakistan and clear the wrongly depicted perception of Pakistan abroad.

He informed that during his recent visit to Prague he motivated the Czech investor to visit Pakistan and explore the untapped potential of joint ventures in coal, alternate energy, engineering and agricultural value-added sectors. Subsequently, the Czech Business

interested parties having business of jute yarns and jute twines, added the statement. The statement further said that such views and comments may be sent within 15 days of publication of this public notice in newspapers, to the Secretary, NTC Islamabad. Further, all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of jute yarn and twine are hereby advised to get themselves registered with NTC latest by May 24, 2012 for participation in the public hearing by providing names of the participants with their contact numbers.

Delegation was on visit to Pakistan to explore the business prospects. He stated that KCCI has proposed Trade Development Authority of Pakistan to establish a showcase of products “Made in Pakistan” along with warehousing facilities in Prague. He lamented that successive governments never paid attention to take the benefits of Pakistan’s geostrategic position as gateway to China, Iran, India, Central Asian Republic Republics and Middle East, while exploring the economic and commercial opportunities in the region. He emphasized that Pakistan should do trade with the regional countries and with trading blocks for the swift revival of the economy. He said that Pakistan was one of the fastest growing economies of the world, however, its pace was slowed due to energy crises.

He lamented that Pakistan lacks energy security plan and he urged the government to devise a strategy on war-footing to produce 40 per cent electricity from nuclear, remaining 40 per cent from coal and rest from other energy resources.

He informed that he was leading a high power KCCI delegation to USA for the advocacy to enhance Pak-USA bilateral trade to bring economic excellence in Pakistan and to have market access and technology transfer. He was of the view that USA should cooperate with Pakistan at par with India to produce energy from nuclear and allow civil nuclear technology. President Czech Middle Asian Chamber of Commerce Jiri Nestaval stated that Czech investors were willing to enter into joint ventures with local investors in the potential areas. He said that KCCI & Czech Chamber had signed MoU and deliberations were in progress to form Karachi-Prague Joint Chamber of Commerce & Industry. He referred that Czech Pakistani Commerce Bridge Conference in Prague launched the commercial exchanges between two countries.

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Wednesday, 09 May, 2012

03

news teXtile troUBles

A scrappy affair 40,000 power looms converted to scrap, 100,000 poor left unemployed

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ISLAMABAD APP

T

HE Senate was informed Tuesday that Textile industry was worst affected during last four years with 40,000 power looms converted to scrap and 10,000 closed partially collectively leaving more than 100,000 poor laborers unemployed.

Minister for Textile Makhdoom Shahabuddin informed the House that power outage, rising power tariff, nonavailability of raw material, heavy losses in business and increase in cost had been the key reasons behind this crisis. The House could take up just two questions during the question hour as most of the questions pertained to opposition who were not present in the House while four question related to Ministry of Industries and Production were deferred due to non-availability of the Minister for Industries and Production and the State Minister. Amidst assurances to cope with the challenge of power shortage, the minister admitted that this sector was the worst affected sector and 10,000 power looms were closed partially due to financial losses, excessive increase in rates of electricity, fuel price adjustment charges and sales tax etc. He stated, although he had not the exact figure, yet it is estimated that

Major Gainers

alien Bears

30,000 poor laborers like weavers, winders, munshi and masters were rendered unemployed while the total number of unemployed related to power loom and sizing sector could touch the 100,000 mark. But, the questioner, a coalition partner Senator Tahir Hussain Mashhadi doubted the figure and claimed it could have many hundred of thousands laborers who lost their jobs owing to closure of industry due to power crisis and increasing power tariff. He said if only the installed capacity could be fully utilized and the issue of circular debt could have addressed, the situation had been definitely improved. The minister replied that a law is being envisaged where it will be made mandatory that every industrial unit would provide the exact information. “Steps are being taken and we hope the situation will improve within next two to three months.” He said the Textile Ministry was nobody to address the issue of power shortage. We are facilitating the industry and the government is also concerned about this situation. When Senator Ilyas Bilour said, the industry is at the verge of collapse and the figure of unemployed could have been much more, the minister said, there is a possibility that the answer was prepared by a non-professional young man.

Bears take Hillary’s cue g

kse 100 index down 104 points KARACHI

T

STAFF REPORT

HE day saw the benchmark 100-share index plunged by 104.01 points to 14,513.96 points against 14,617.97 points of Monday. Ahsan Mehanti, Director at Arif Habib Investments Limited., said that the Pakistan stocks closed bearish on investor concerns after allegations by US Secretary of State on presence of terrorist leadership in the country.

Total numbers of Shares of 384 companies were traded on Tuesday, and at the end of the day total 160 stocks closed higher, total 160 are declined while 64 remained flat. The overall value of shares traded during the day was Rs 2.262 million. The trading volumes at the readycounter were recorded lower at 2.262 million shares against 2.544 million shares of the previous day.

The trading value increasing to Rs 9.628 billion compared to Rs 9.074 billion of the previous session. The intraday high and low, respectively, stood at 14,685.03 and 14, 489.51 points. Market capitalization declined to 3.705 trillion from 3.730 trillion. “Limited foreign interest,

fall in global stocks and commodities on Euro zone debt crises, outstanding circular debt issues in Pakistan energy sector played catalyst role in bearish sentiments amid consolidation in stocks across the board at KSE.” viewed Mehanti. KSE All share-index ended the day at 10,176.50 points, down 69.42 points or 0.68 percent, KSE 30-index stopped the day at 12,673.35 points, decreasing 89.44 points or 0.70 percent while the KMI 30-index slumped by 201.76 points or 0.80 percent to end the day at 25, 019.55.

P.T.C.L.A was volume leader of the day, 31.290 million shares and down

by Rs 0.07 paisas to close at Rs 16.05 followed by D.G.K Cement, Engro Corporation, Jahangir Siddiqui Company, Fauji Fertilizer, Lotte Pakistan PTA and National Bank of Pakistan with turnover of 26.870 million, 13.700 million and 13.687 million, 7.727 million, 7.456 million and 6.785 million shares respectively. The Unilever Food and Rafhan Maize SPOT, up Rs 142.38 and Rs 137.62, led highest price gainers while, Nestle Pakistan Limited and Unilever Pakistan SPOT, down Rs 96.57 and Rs 52.85 respectively, led the losers.

Company

Open

High

Low

Close

Change

UniLever Pak Ltd Unilever Food Rafhan MaizeSPOT Colgate Palmolive Wyeth Pak Limited

7042.00 2712.08 2650.00 820.00 778.34

7394.10 2847.68 2782.00 861.00 800.00

7025.00 2847.68 2698.00 820.00 785.00

7394.10 2847.68 2764.38 861.00 800.00

352.10 140 135.60 15 114.38 72 41.00 303 21.66 269

Major Losers Nestle Pakistan Ltd. 4331.69 Island Textile 234.56 Indus Motor Company 305.00 Sapphire Textile 120.27 Pak Oilfields 394.75

LAHORE: Bahria Town launched its brand new family entertainment destination, ‘Bahria Country Club’ located in Sector C, Bahria Town Lahore. Governor Punjab Latif Khosa, Barrister Chaudhary Aitzaz Ahsan, Chairman Bahria Town, Mr. Malik Riaz Hussain, CEO Bahria Town, Mr. Ahmad Ali Riaz Malik and VCE Bahria Town Salman Ahmed Khan were the chief guests at this event. Governor Punjab Mr. Latif Khosa did ribbon cutting of the destination while the cake cutting was done by Mr. Aitzaz Ahsan. Also present at the event were many other dignitaries, socialites and celebrities who enjoyed the event thoroughly. All guests expressed that ‘Bahria Country Club’ by far exceeds the international standards, the ambience, luxurious interior detailing, the open door BBQ with views of the 18 hole mini golf course, lakes and the fountains & indoor fine dining with the excellent food quality make it the best entertainment option in Lahore. PRESS RELEASE

nMC participants visit tCp

Abbas, Director Finance, elaborating the role which TCP has played in the national economy through foreign trading as well as domestic market intervention, particularly in over-coming the shortages/improving supply side of essential commodities, providing relief to common man and safeguarding the interest of growers of certain agriculture commodities. The visiting officers were informed that TCP is the trading arm of the government and acts only on specific directions/decisions of the ECC of the Cabinet/Government. Being a public sector organization, TCP is fully PPRA Rules complaint and has been endeavoring to maintain complete transparency in all its procurements. It is one of the profit earning public sector organizations. The participants took keen interest in the functioning of the organization and asked different questions from the Chairman TCP, during Questions & Answers Session, about the future plans and the steps being taken by the Management to bring further improvements in performance of the Corporation. PRESS RELEASE

teradata reports revenue KARACHI: Teradata Corporation (NYSE: TDC), today reported revenue of USD 613 million for the quarter ended March 31, 2012, an increase of 21 percent from USD 506 million in the first quarter of 2011. The first-quarter revenue comparison was negatively impacted by 1 point of currency translation. Gross margin of 55.1 percent was up from 54.3 percent reported in the first quarter of 2011. On a non-GAAP basis, excluding the special items and stockbased compensation expense, gross margin was 55.9 percent, an improvement from 55.7 percent in the first quarter of 2011. The increase in non-GAAP gross margin was driven by leverage from increased product revenue and a favourable deal mix. Stock-based compensation expense and a number of special items (primarily acquisition-related) had a net impact of USD 12 million on Teradata’s first quarter 2012 net income as reported under U.S. Generally Accepted Accounting Principles (GAAP).

Teradata reported GAAP net income of USD 91 million, or USD 0.53 per diluted share, which compared to GAAP net income of USD 65 million, or USD 0.38 diluted share, in the first quarter of 2011. Excluding stock compensation expense and special items, non-GAAP net income in the first quarter of 2012 was USD 103 million, or USD 0.60 per diluted share, versus USD 82 million, or USD 0.48 per diluted share in first quarter of 2011. PRESS RELEASE

silkbank announces rs 172m profit before tax KARACHI: Seventeen (17) participants of 11th Senior Management Course of National Management College Lahore visited Trading Corporation of Pakistan (TCP) at Karachi on Tuesday, the 8th May, 2012. Chairman TCP, Mr. Tahir Raza Naqvi, welcomed the participants and briefed them about the role and on-going business activities of TCP. All the Directors of TCP were present. A detailed presentation was also made by Mr. Agha Wasif

KARACHI: The Board of Directors of Silkbank announced a profit before tax of Rs. 172 million in the first quarter of 2012 which translates to an increase of 9.7 per cent over the previous corresponding period. This is despite an increase in administrative cost by 13.8 per cent over the previous corresponding period. Total deposits increased by Rs. 10 billion in Q1 2012 which reflects a growth of 17.17 per cent over the same period last year.

Gross Advances also reflected a 3.19 per cent growth over

4450.00 222.84 297.05 114.60 399.00

4199.00 222.84 296.00 114.55 389.11

4218.88 222.84 296.51 114.55 391.15

-112.81 3,564 -11.72 356 -8.49 2,801 -5.72 43,000 -3.60 566,035

Volume Leaders P.T.C.L.A 15.34 D.G.K.Cement Telecard Limited Jah.Sidd. Co. Engro Corporation

16.25 44.38 2.20 16.02 104.47

15.50 46.59 2.50 16.69 109.27

16.12 44.70 2.15 15.85 104.85

0.78 34,556,963 46.59 2.21 19,601,267 2.19 -0.01 15,079,443 16.28 0.26 14,182,549 108.07 3.60 11,111,247

Interbank Rates US Dollar UK Pound Japanese Yen Euro

90.7940 146.6233 1.1373 118.1957

Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar

BRIEF CORNER Bahria Country Club

Turnover

the corresponding period of last year, increasing by Rs. 1.7 billion. As a conscious strategy, the bank is changing the advances mix by moving into higher margin Consumer and SME markets which continues to improve its balance sheet spread. A noteworthy reduction in the nonperforming loans was achieved by Silkbank in Q1 2012 which resulted in a provision reversal including recovery of written off loans of Rs. 508 million. This led to a reduction in non-performing loans by 6.9 per cent. The Board of Silkbank appreciated the ongoing contribution of Shaukat Tarin, as Advisor to the Chairman of the Board.

Tarin continues to be a principal shareholder of Silkbank along with Nomura Investments, Bank Muscat and International Finance Corporation (IFC). PRESS RELEASE

ptCl exhibits at the Multan crafts festival ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL ) organized a special customer outreach exhibit at the recently held “South Punjab Craft Festival” in Multan under the aegis of Multan Chamber of Commerce & Industry (MCCI) and Trade Development Authority of Pakistan. Held at the MCCI premises, the colorful exhibition was organized to portray the rich culture of South Punjab and promote the local industries.

Vice Chancellor Bahauddin Zakariya University, Prof. Dr. Khawaja Alqama; President MCCI, Mian Anees A. Shaikh; and VP MCCI, Khawaja Muhammad Hussain were guests of honor on the occasion. PTCL Regional General Manager, Shakeel Ahmed, briefed the guests about PTCL’s innovative products and services during their visit of the PTCL stall. “PTCL products and services are equally popular in all segments of the society,” said VC Bahauddin Zakariya University, Prof Dr. Khawaja Alqama. “PTCL has transformed the concept of a global village into a reality, and no other company can match its quality and service standards.” PRESS RELEASE

emirates hosts workshop for travel agent LAHORE: Emirates Airline hosted a special workshop for travel agents. The ‘Travel Agents’ Product Update Workshop’ was held at a centrally located venue, The Banquet, near the PACC, and served to provide very useful updates to travel agents from all over the city. The workshop was cleverly designed with participants divided into nine groups with fifteen individuals in each group. These teams attended a range of souk-style presentations made by the following participating departments: Corporate Team, Contact Centre, Skywards, Sales Support & Pricing, Airport Services, Finance, Ticket Office and Emirates Holidays. The objective of this interaction was to bring together Emirates and the local travel industry so that employees could meet faceto-face all those who are in communication with them all day via email and telephone. This would help employees streamline everyday business activities, share best practices and simply explain Emirates’ ways of working in a conducive and relaxed environment. PRESS RELEASE

Buy

Sell

91.10 118.43 146.84 1.1304 90.99 11.58 24.74 24.24 92.25

91.80 119.44 148.06 1.1397 92.25 11.75 24.92 24.41 94.48

naC estimates 3.6 percent Gdp growth for this fiscal ISLAMABAD AMER SIAL

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HE government faced another embarrassment when the reconvened meeting of the National Accounts Committee (NAC) estimated the gross domestic product (GDP) of 3.6 percent for the current fiscal year under the old base, as against the finance team’s touted figure of 4 percent. The finance team had forced reconvening of the NAC even though it had estimate a GDP growth of 3.2 percent for the current fiscal year on the basis of the new base year of 2005-06 instead of old base year of 1999-2000. The finance team claimed that the change in base year resulted in decline in growth rate which Finance Minister was claiming around 4 percent for the current fiscal year. However, the officials of Pakistan Bureau of Statistics were claiming from day one that the change in base year did not create a major change and the GDP figure would slightly improve under the old system. They were proved correct on Tuesday when NAC estimate GDP growth of 3.6 percent. Agriculture registered a growth of 3.1 percent, manufacturing sector 3.4 percent and services sector around four percent.

pew has a murky crystal ball ISLAMABAD NNI

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HE Pakistan Economy Watch (PEW) on Tuesday said upcoming budget by the embattled government will be sheer disappointment for majority and good news for influential. Government will compromise its stance on subsidies and rely on slogans to offer a budget that will suit their political ambitions, it said. Questions are being raised about the legality of the fifth serial budget which will be presented by a Cabinet working under a convicted Prime Minister, said Dr. Murtaza Mughal, President PEW. He said that no key change will take place in the budget to give a breathing space to reeling masses which will make environment more fragile. The favourite sectors will not be included in the tax net while poor will face enhanced indirect taxation, he said. Mughal said that budget is being finalised while keeping political considerations above the economic conditions. President, Prime Minister and majority of ministers lack interest in economics and they continue to rely on imported finance minister who always prefer to employ ad hoc measures, said Dr. Murtaza Mughal. He said that our economic managers lack foresight, professionalism, responsibility and political will to take decisions which can result in reforms.