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Wednesday, 10 October, 2012
Neighborly love in flight Indian airline to operate in Pakistan in due course, trade HCP in New Delhi tells KCCI g Pakistani businessmen want Karachi-Mumbai connected via sea, air links g Air India flights to Pakistan in due course g Private Indian airlines keen to start operations g Negative list to go by December 2012 g Current 800 tariff lines of SAFTA to be cut to 100 tariff lines in April 2013 g Pakistan considering to allowing all tradable items through Wagah g Textiles, agri based and agro processed products eyed as potential Pakistani exports to India g Businessmen categorized as small, big ones under new visa policy g
KARACHI ISMAIL DILAWAR
I
NDIAN airlines, led by the Air India, would soon be starting flights to and from Pakistan as the two countries have achieved new milestones on the trade liberalization front in recent months. Also, Pakistani traders and industrialists want New Delhi and Islamabad to connect Mumbai with Karachi through air and sea links as businesspersons on this side of the Line of Control were serious to import from India what they have been importing from China and other countries. “Consequent to the commerce-secretary-level talks between India and Pakistan, air connections between the two neighbors would be increased,” said Naeem Anwar, Minister (Trade) High Commission of Pakistan in New Delhi, who visited the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday. Linking air frequency to visa issuance, the minister said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course. While private Indian airlines had also shown interest to start operations in Pakistan, he added. Minister (Trade) Pakistan High Commission in New Delhi Naeem Anwer, while exchanging views at KCCI, recognized the vibrant role of KCCI and industrial activities and for socio-economic development of Pakistan. Highlighting latest developments by Indo-Pak governments on bilateral relations, he said the two governments had prioritized the opening of banks branches across the border by March 2013. The National Bank of Pakistan and United Bank would open branches in India while branches State Bank of India, Bank of India and Punjab National Bank would open branches in Pakistan. New Delhi has allowed Pakistani investment in India through Indian Board of Investment Promotion. Investors across the LoC were keen to invest in this regard, said Naeem. He said the Secretary Commerce had instructed him to brief the country’s chambers of commerce about the latest developments on bilateral trade. He said the negative list would be abolished by December 2012 and in April 2013 current 800 tariff lines of SAFTA would also reduce to 100 tariff lines. Also, by year 2017 SAFTA sensitive list would be reduced to 100 items. The government of Pakistan was also considering to allowing all tradable items through Wagah, he said adding recently three agreements were signed by the two governments on customs cooperation, mutual recognition and redressal of grievances that would be implemented after completion of all legal formalities. He said according to new visa policy, business visa for small category businessmen having net income of five to 30 lacs would be given one year visa of five cities by four multiple entries with po-
lice reporting. For big category businessmen having net income beyond 30 lacs would be given one year visa of 10 cities by multiple entries with exemption of police reporting. The authority to verify income was under consideration. Naeem said that potential Pakistani products for export to India were textiles (home textiles, fabric), agricultural based products and agro processed products. Urging the manufacturers to capture their share of Indian markets, the minister said Islamabad had urged to rationalize tariffs of products which are on higher sides. Information on tariffs was available online on various Indian websites, he added. Consequent to talks of Indo-Pak commerce secretaries, air connections would be increased. Linking air frequency to visa issuance, Naeem said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course, while private Indian airlines had also shown interest to start operations in Pakistan. He also sought proposals from KCCI to identify products, logistics data, warehousing facilitates, information on required infrastructure with regards to trade from Khokrapar Monabao border which was under consideration by two governments. He informed that in India the role of chambers had transformed and they were less dependent on subscription and were generating income in billions of rupees from exhibitions, fairs and event management. He urged the chambers of commerce in Pakistan to focus on research and development which Pakistani chambers were lacking as compared to their Indian counterparts. Naeem also elaborated on the role of National Tariff Commission and educated the members of KCCI to opt for legal formalities in case of anti-
dumping or injury to domestic industry. He said India was offering huge subsidies for exportable items, therefore, Pakistani business community should be cautious of influx of Indian goods keeping in view viability and price competitiveness of identical domestic items. He also asked the KCCI members to study the Indian models of business joint ventures if they were interested for same with Indian counterparts. The minister also assured support from Pakistan High Commission in New Delhi on policy matters. One Indian company offered Karachi Metropolitan Corporation produce 8MW energy by processing the solid waste here at Karachi, he said. Earlier in his welcome address, President KCCI Muhammad Haroon Agar said fostering the process of regional trade and economic cooperation between the two countries would augur well for peace and prosperity in the South Asian region. The KCCI chief said it was the need of the hour that both governments, besides opening new land routes, should positively consider to connect Mumbai with Karachi through air and sea links. He said Pakistani businesspersons were serious to import from India instead of China and other countries located outside the South Asian region. Agar also urged to formalize the informal trade which is higher than formal trade of $2.7 billion achieved in year 2011. Anjum Nisar, former KCCI President, stressed the need for successful branding of logos “Made in Pakistan” in India and capturing its potential market. Majyd Aziz, another ex-president of KCCI, said there should be no discrimination of categories of small or big businessmen with regard to issuance of visas. He also urged the need for opening KhokraparMonabao route for trade purposes.
Not enough ATMs, we’re afraid… SBP says availability of ATMs “quite low” in country KARACHI STAFF REPORT
The central bank Tuesday expressed its concern over the availability of Automatic Teller Machines (ATMs) in the country that the regulator said was “quite low”. “There are only 5600 ATMs in the country,” Deputy Governor State Bank of Pakistan (SBP) Kazi Abdul Muktadir told journalists during his visit to Karachi Press Club. He also inaugurated at the KPC an ATM which was installed by the Summit Bank. Flanked by Acting President Summit Bank Asif Ali, President KPC Tahir Hasan Khan, General Secretary Moosa Kaleem and Treasurer Rizwan Bhatti, the deputy governor said presently there were about one ATM against two bank branches while in developed countries, there were three ATMs against one bank branch. The SBP has recently issued policy instructions to all banks which bind them to expand their ATM network in a phased manner so as to achieve a target level of one ATM for each bank branch.
“Once this target is achieved, we have plans to gradually raise the bar so as to meet the international levels,” he said. The deputy governor also expressed his resolve to provide banking services to all segments of the society. “With the concerted efforts of all, we will be able to achieve the desired goal of ‘Banking for All’,” he said. Emphasizing the need for an efficient and thriving banking system, he said that the State Bank was providing regulatory environment to financial institutions to enhance financial inclusion in the country. “Providing people with access to finance is a challenging task, not just for the central bank but also for all the stakeholders,” he observed. The central bank, he said, was trying to make the banking services available at the door step of the people and that promoting access to banking services was the corner stone of SBP’s policy framework. He said the State Bank under its Branch Licensing Policy had made it compulsory for the banks to open at least 20 percent of their new branches in rural and under-
served areas. The deputy governor said branchless banking was helping in reaching out to the low income, unbanked people through more than 30,000 access points throughout the country. Nearly 30 million transactions worth Rs 115 billion had been processed during the fourth quarter of FY12 through branchless banking and the average daily transactions had been reported at 315,178 while the total number of branchless banking accounts had increased to 1.7 million. “According to the World Bank’s Consultative Group to Assist the Poor (CGAP), Pakistan is the fastest growing branchless banking market in the world,” said he. Abdul Muktadir said the banking industry of Pakistan had tremendous growth potential to deliver lot more than what it was delivering right now. “The significance of e-banking and m-commerce cannot be
Pakistan-Afghanistan trade balance reaches $1.5b KABUL ONLINE
Balance of trade between Afghanistan and Pakistan has reached one and a half billion US dollars. This was revealed by Khanjan Alekozai deputy chairman of the chambers of commerce and industries of Afghanistan and deputy head of joint chambers of Afghanistan and Pakistan in a joint meeting of the Afghan and Pakistan traders held in Kabul, reported BNA news agency. The aim of the meeting was to seek ways for overcoming the problems of traders’ further expansion of trade and economic relations between Afghanistan and Pakistan. At the start of the meeting Khanjan Alekozai deputy chairman of the chambers of commerce and industries of Afghanistan and deputy head of joint chambers of Afghanistan and Pakistan said that the balance of trade between Afghanistan and Pakistan reaches one and half billion US dollars, the major portion of which is import of Pakistan goods to Afghanistan and Afghanistan’s exports makes around USD 200 million. Zabeer Motiwal head of the delegation and chairman of the chambers of commerce of Pakistan talked of the trade facilities for foreign investments in Afghanistan and added that the Pakistan traders and investors are prepared to jointly and individually invest in Afghanistan. He added that the present problems in trade sphere can be resolved by the government authorities.
Chopped! (again) IMF cuts global growth forecast; prods Europe, US TOKYO AGENCIES
The IMF cut its global growth forecast on Tuesday for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump. Global growth is too weak to bring down unemployment and what little momentum exists is coming primarily from central banks, the International Monetary Fund said in its World Economic Outlook, released ahead of its twice-yearly meeting, which will be held in Tokyo later this week. “A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component,” it said. “The answer depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges.” For 2012, the IMF now expects global output to grow just 3.3 percent, down from its July estimate of 3.5 percent, making it the slowest year of growth since 2009. It predicted only a modest pickup next year to 3.6 percent, below its July estimate of 3.9 percent. overemphasized because of the fact that both have brought about remarkable changes in the ways people think and do their banking business today.” He said the transformation from traditional to modern ways of banking was taking place at a fast pace. A number of alternate delivery channels for provision of banking services like ATMs, Credit Cards, POS terminals, Internet banking, Debit Cards were already existed in Pakistan to benefit the masses. “Currently, 93 percent of the total bank branches are offering Real-Time Online services,” he said. Earlier, Summit Bank Acting President Asif Ali said his bank was planning to add more services like the cash deposit and cheque deposit to its current ATM network. He said the “technology savvy” Summit Bank was operating 168 online bank branches countrywide to advantage its valuable customers. “We are further improving our services through ATMs,” said Ali, who was officiating in place of Hussain Lawai, the chief executive and president of Summit Bank who was presently abroad. President KPC Tahir Hasan Khan also expressed his gratitude towards Lawai who he said had always been cooperative towards the journalist fraternity. Khan also announced life membership of the KPC for Lawai.
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LSE ends flat LAHORE: Bearish trend prevailed in Lahore Stock Exchange on Tuesday as it shed 3.61 points, following the LSE-25 index opened with 3912.76 and closed at 3916.37 points. The market’s overall situation also did not correspond to an upward trend as it remained at 2.370 million shares to close against previous turnover of 4.294 million shares, showing a downward slide of 1.923 million shares. While, out of the total 88 active scrips 26 moved up, 46 remained equal and 16 shed values. D.G.Khan Cement Company, United Bank Limited and Nishat (Chunian) Limited were Major Gainer of the day by recording increase in their per share value by Rs 2.08, Rs 1.78 and Re 1.00 respectively. Attock Refinery Limited, Pakistan Oil Fields Limited and Engro Corporation Limited lost their per share value by Rs 7.83, Rs 1.49 and Re 0.99 respectively. The Volume Leader of the day included Fauji Cement Company Limited with 440,000 shares, Nishat (Chunian) Limited with 274,000 shares and Pakistan Tele Communication Limited with 211,000 shares. APP
KSE approaches apogee Index to hit new high of 18,000 points in run-up to general elections KARACHI
T
STAFF REPORT
HE market observers have started to come up with their views as the country is fast approaching what the analysts believe one of the most crucial junctions in its history with 9th general elections due in May next year. “We believe a broader timeframe for the general elections comes between March to May 2013,” said Nauman Khan of Topline Research. The analyst said as the political canvas warms-up, the elections related developments were expected to take center stage in the coming days with market participants likely to welcome signs of change in the ruling set-up. Khan said the investors on the stocks market
were likely to cheer elections related developments promising to hold solutions to country’s structural issues that had marred the country’s economic performance over last four years. “We expect the benchmark KSE-100 index to climb to new high of 18,000 points in the run-up to elections by May 2013, providing 14% return amid expectations that economic and political issues may resolve as the new government steps in,” said the analyst. This is close to average gain of 13% seen 6-months before elections in last 20-years, he said. In addition to elections extravaganza, Khan said, improving relationship with the United States and India and decent foreign flows were likely to create positive sentiment in the market. However, external account financing would remain a risk, he warned.
OGDCL achieves 4.6% growth rate ISLAMABAD: Mr. Masood Siddiqui Managin Director / Chief Executive Officer, Oil & Gas Development Company Limited (OGDCL) stated that the company has achieved 4.6% growth rate in production of oil & gas, a significant increase in exploration and will drill 37 new wells during the current fiscal year against 17 wells drilled last year while addressing the audience during the seminar organized by Petroleum Institute of Pakistan, (PIP) at OGDCL House yesterday. The seminar was presided by Dr. Asim Hussain Advisor to Prime Minister on Petroleum & Natural Resources.
The central bank Tuesday chided the commercial banks for not submitting to it hard copies of the foreign exchange trade confirmations in a standardized form. Also, the banks came under fire for not being so cooperative in helping the regulator maintain a list of authorized signatories of domestic counterparts so any risk of unauthorized settlement could be avoided. The central bank, through issuing TOD Circular No. 01 on Tuesday, said as per existing practice the banks are required to provide the FX trade confirmations in hard copy to the SBP’s Treasury Operations Department followed by SWIFT confirmation messages. “It has, however, been noted that such hard copy confirmations are not standardized,” the bank said. This, it said, was posing special difficulty in locating and sequencing the necessary information such as value date, currency bought/sold, exchange
COMPANY UniLever Pak Shezan Inter. Mithchells Fruit Packages Ltd. Murree Brewery
OPEN 10000.00 382.87 382.20 133.91 169.93
HIGH 10195.00 402.01 401.31 140.60 178.00
LOW 9600.00 401.50 382.20 133.01 170.00
CLOSE 10195.00 402.01 400.00 140.60 174.83
CHANGE 195.00 19.14 17.80 6.69 4.90
TURNOVER 40 3,900 2,600 133,000 17,000
3400.00 428.15 310.00 204.99 1060.00
3400.00 428.15 281.71 200.00 1060.00
3400.00 428.15 281.71 200.00 1060.00
-100.00 -22.52 -14.82 -10.52 -10.00
20 20,600 12,800 6,100 50
51.12 5.68 59.45 139.48 26.07
48.70 5.36 57.52 133.70 24.65
50.90 5.47 59.24 137.79 26.05
2.21 0.09 0.78 3.98 1.22
11,142,000 8,824,500 6,047,500 5,422,100 4,787,000
Major Losers Unilever Food Indus Dyeing National FoodsSPOT Pak Gum & Chemical Bata (Pak) Limited
3500.00 450.67 296.53 210.52 1070.00
Volume Leaders D.G.K.Cement 48.69 K.E.S.C. 5.38 Nishat Mills Limited 58.46 Lucky Cement 133.81 Nishat (Chunian) 24.83
US Dollar UK Pound Japanese Yen Euro
Banks castigated for submitting poor record of FX trade confirmations KARACHI
Major Gainers
Interbank Rates
Slammed! STAFF REPORT
Business 02
rate, Nostro correspondents etc. Further, the State Bank said its Treasury Operations Department needed to maintain a list of authorized signatories of domestic counterparts to avoid any risk of unauthorized settlement. “In view of above, all commercial banks are advised to use the attached standardized hard copy trade confirmations as per respective formats at annexure ‘A’ for FX Outright trades and annexure ‘B’ for FX SWAP trades,” it said. The banks have also been asked to provide the SBP with their list of authorized signatories, along with contact details, for signing the said hard copy trade confirmations by the 15th of next month. In case of any future changes of authorized person(s), the banks are required to “immediately” notify the same to the SBP. “All commercial banks are advised to abandon their existing confirmation formats and use the attached confirmation formats after 15th November 2012 deadline,” it said.
95.5298 152.8477 1.2196 123.4723
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUY
SELL
95.10 121.58 151.00 1.2034 96.19 12.07 25.78 25.23 95.82
95.60 122.77 152.46 1.2147 97.61 12.25 26.00 25.45 98.19
KARACHI: Flanked by Qatar Airways cabin crew celebrating the announcement of the airline joining the oneworld alliance are from left, American Airlines’ Chairman and Chief Executive Tom Horton, Chairman of the oneworld Governing Board; Qatar Airways CEO Akbar Al Baker; IAG Chief Executive Willie Walsh and oneworld CEO Bruce Ashby.
CORPORATE CORNER ‘Lucky Cement bags awards for Corporate and Sustainability Reports’
KARACHI: Lucky Cement Limited, Pakistan’s largest cement manufacturer and exporter, has received the Best Sustainability Report and the Best Corporate Report Awards - 2011. Lucky Cement secured overall Top position in the category for Best Sustainability Report Award, whereas its Corporate Report received 1stposition in cement & sugar category. These awards for year 2011 were announced in a ceremony by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan which announces theses prestigious awards for Best Corporate & Sustainability Reports every year.
Intel holds ‘Intel SMB Technology Day’ with LCCI ISLAMABAD: Intel Pakistan in collaboration with the Lahore Chamber of Commerce and Industries (LCCI) held a two-day event “Intel SMB Technology Day” to showcase latest technology solutions for increasing business productivity offered by Intel. The session was inaugurated by Naveed Siraj, Country Manager, Intel Pakistan. Intel Technology Day provides the small and medium business owners with access to a unique forum which showcases the latest products and technology solutions for increasing business productivity. The program included networking opportunities with Intel partners along with extensive technology showcase.
APCMA re-elects Aizaz Mansoor as chairman KARACHI: All Pakistan Cement Manufacturers Association (APCMA) has re-elected Mr. Aizaz Mansoor Sheikh unanimously as Chairman of APCMA in its Annual General Meeting held at APCMA Secretariat, Lahore, names of other elected office bearers for the year 2012-13 were also announced, it was stated in a statement issued here today. Mr. Sayeed Tariq Saigol of Maple Leaf Cement Factory Limited and Mr. Muhammad Ali Tabba of Lucky Cement Limited were also unanimously re-elected as Vice Chairmen of the Association.
ICI Pakistan clinches ICAP, ICMAP awards for Best Corporate & Sustainability Report Aizaz wins APCMA top slot for KARACHI: ICI Pakistan Limited clinched the 9th consecutive year ‘Best Corporate Report Award’ and the ‘Best Sustainability Report Award’ at the ICAP & ICMAP Best Corporate & Sustainability Report Awards 2011 held in Karachi on Monday October 08, 2012. These awards are organized by the joint committee of the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMAP) with the objective of encouraging and recognizing excellence in annual corporate reporting. This is the sixth year in a row that ICI Pakistan has been amongst the top five companies in the Chemicals Sector receiving the Best Corporate Report Award.
KARACHI: All Pakistan Cement Manufacturers Association (APCMA) has re-elected Aizaz Mansoor Sheikh unanimously as chairman of the association in its Annual General Meeting held at APCMA Secretariat, Lahore. The names of other elected office bearers for the year 2012-13 were also announced, said a statement issued here on Tuesday. Sayeed Tariq Saigol of Maple Leaf Cement Factory Limited and Muhammad Ali Tabba of Lucky Cement Limited were also unanimously re-elected as vice chairmen of the Association.
Aizaz of Kohat Cement Company has served as chairman of APCMA for a period of 8 years since 1992. The current term 2012-13 is his second consecutive term as Chairman APCMA. Muhammad Raza Mansha of D.G. Khan Cement, Amer Faruque of Cherat Cement, Maj. Gen. (Rtd.) Rehmat Khan of Lafarge Cement Pakistan, Lt. Gen. (Rtd.) Muhammad Sabir of Fauji Cement, Brig. (Rtd.) Asmat Ullah Khan Niazi of Askari Cement, Syed Asif Shah of Bestway Cement, Babar Bashir Nawaz of Attock Cement Pakistan, Mazhar Iqbal of Pioneer Cement, Muhammad Tousif Paracha of Gharibwal Cement were elected as members of the executive committee.
PTCL billing update ISLAMABAD: In continuation of its customer centric approach, country’s largest information communication technologies service provider, Pakistan Telecommunications Company Limited (PTCL) informs its customers that the bills for the month of September 2012 have been dispatched to its valued customers through our delivery partners. The due date for submission of bills is October 22, 2012. We have ensured that customers receive the bills well before the due date. However, in case of any delay, customers can also get a copy of their bills online at PTCL website http://dbill.ptcl.net.pk or get a duplicate copy from any of PTCL’s One-Stop Shops located in 98 cities and towns all over Pakistan.
KARACHI: Pakistan State Oil (PSO), the nation’s largest energy company in the country was awarded 2nd position in the Fuel and Energy Sector at the Best Corporate & Sustainability Report Award ceremony organized by ICMAP and ICAP on Monday 8th, October, 2012. Present in the picture is Mr. Yacoob Suttar, Senior General Manager (F&IT)PSO receiving the award on behalf of PSO.
PIA hajj update KARACHI: PIA ongoing Pre-hajj operation after 20 days has carried 48,558 intending pilgrims to Saudi Arabia through 116 flights with an overall punctuality of 96 percent. PIA Spokesman said here on Monday.He said that the Pre-Hajj flights from Sialkot concluded with 07 flights to Saudi Arabia carrying 3,498 intending pilgrims.PIA has so far carried 5,973 intending pilgrims through 12 flights from Karachi, 8,910 through 18 flights from Islamabad, 8,483 through 17 flights from Lahore, 10,065 intending pilgrims through 31 flights from Peshawar.
RAWALPINDI: Hashoo Foundation organized a Graduation Ceremony for its Skills Development Program trainees at the Pearl Continental Hotel in Rawalpindi. Mr. Manzar Khurshid Shaikh, President Rawalpindi Chamber of Commerce and Industries; Mr. Ali Akbar, Country Director Hashoo Foundation Pakistan; trainees, stakeholders and dignitaries at the event.
Wednesday, 10 October, 2012