Profit 11th January, 2012 by Profit Epaper

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Teradata – the business solutions Titan Page 4-5 Copper politics and state of economy Page 3 0.08pc Balochistan solar energy can serve national needs Page 2

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profit.com.pk

Wednesday, 11 January, 2012

$500b worth Middle East markets remain untapped Uae, Qatar, Kuwait, Iraq, egypt and Libya. Many projects of construction are scheduled to be completed in the region in the next few years which include Qatar’s $600 billion infrastructure development, saudi arabia – the region’s largest construction market -$365 billion of project spending up to 2015, Iraq – capital spending on infrastructure to increase by one-third, including housing and utilities, Uae – still holds the most projects with the highest values, including rail and aviation, and Kuwait – forthcoming port, airport and real estate projects highlighted.

The authority is not promoting marble industry as compared to other industries and sectors despite the fact that the country has the best quality marble

LACK OF PROMOTION

KARACHI

GHULAM ABBAS

ears of neglect on the part of every successive government have left the country devoid of marble exploration. This has left a huge potential market abroad untapped. Pakistani exporters of the valuable stones are unable promote their products in Middle eastern markets having a huge demand for marble products as the whole sector remain neglected by the concerned authorities.

IGNORING INVITATIONS Despite repeated invitations forwarded by prominent construction companies and government agencies of Gulf countries, to participate in international exhibitions and other marble related events, the exporters here did not attend a single event to promote their products

in the region which – as they claim – is going to deliver more than $500 billion worth of construction projects in 2011-15.

NEGLIGENCE Talking about the recently received invitations various countries of the region, sanaullah Khan former chairman, all Pakistan Marble Mining Processing Industry and exporters association said the association has received couple of invitations from the region but due to negligence of concerned authorities and financial constraints of exporters, none of the international event was attended.

ARAB SUMMIT recently, the association was invited to attend the “5th arabian World Construction summit 2012” scheduled to be held between May 20th and 23rd, 2012 in abu Dhabi, which was claimed to encompass markets like saudi arabia,

according to sanaullah, beside other constraints of the marble industry in the country, the negligence on the part of ministry of commerce, trade development authority of Pakistan and respective Pakistani diplomatic officials in the Middle eastern countries was the major hindrance in the way of improving trade in marble sector. He alleged that the authority was not promoting marble industry as compared to other industries and sectors despite the fact that the country has the best quality marble, onyx and granite. Besides, he said, the highly neglected sector was currently facing over eight hours long load shedding making the whole industry lactated in Karachi, dysfunctional causing over 65 per cent decline in exports in the last six months.

LACK OF COMPETITIVENESS However, sources claimed that the country’s marble industry was not able to compete other industries of the world because of lack of modern technology, methods and machinery used in mining, drilling and processing despite the huge reserves in the country. Demand, they said, was the issue of the industry as it

lacks the required standard and quality of the world’s market. The country was already producing less marble against the existing demands while over 60 per cent of its exports were based on raw materials mainly imported by China.

SURGE TOWARDS MIDDLE EAST “The Middle eastern states are the markets for value added materials,” they said adding that Pakistan could only tap lucrative markets through only developing the industry which needs immediate attention of the government. The energy crisis and hours’ long power breakdowns, especially in the small and medium-scale units of marble processing scattered along Manghopir road, Pak Colony, sITe area and others in Karachi was hampering the production thus affecting exports of marble badly. These units, what the sources said, were needed immediate shifting to the new location ‘Marble City’ already approved area for the marble industry. It is worth motioning here that Marble exports have been highlighted as a hugely profitable sub-sector with expected volume to the tune of $1 billion in the next couple of years.

Pak equities losing foreign investment to lowest PE countries KARACHI ISMAIL DILAWAR

He economic managers might be wondering why the start of the new year has brought along a frequent short selling by foreign portfolio investors at the country’s equity market. The analysts seem to have found the answer, however. according to Mohammed sohail, a senior analyst and chief executive of Topline securities, the foreigners are historically believed to be investing in Pakistani equities because of the low price earning ratio (Pe ratio) compared to other regional markets. Normally, Pakistan's Pe ratio is compared with average Pe ratios of regional countries whether they are asian peers or other emerging and frontier markets. But, sohail has found other comparable markets to offer Pe lower than that of Pakistan. These countries are United arab emirates with Pe ratio of 6.0 per cent, romania below 6.0 per cent, Lebanon below 6.0 per cent, Vietnam around 5.5 per cent, Greece 5.3 per cent, russia 5.2 per cent, argentina 5.1 per cent, egypt 4.0 per cent, Cyprus over 3.0 per cent and Ukraine around 3.0 per cent. “This comparison may hint as to why foreigners have been net sellers since the start of the new year in spite of low Pe in Pakistan,” sohail said. He said the foreigners in first six trading sessions of 2012 had sold shares worth $7 million (net selling) at a time when volumes were at abnormally low levels. In these six trading sessions, the Kse settled shares of $60 million only due to which foreigners selling was creating an impact on the market which is down three per cent in last six sessions. “One argument that has been given over the years to invest in Pakistan equity market is its discount to regional valuations,” the analyst observed adding “That is Pakistan trades at lower levels compare to other regional or comparable markets based on Pe, PBV, dividend yield, etc. and that discount to its peers should be taken positively by foreign fund managers while exploring opportunities in Pakistan capital markets.” But there are factors that, he said, needed to be analysed when comparing Pakistan with other markets.

LNG PricE

Pakistan team to visit Doha on January 15 ISLAMABAD AMER SIAL

four member official team will visit Doha on sunday to finalise price for importing 500 mmcfd Liquefied Natural Gas (LNG) for which Qatar has sought sovereign guarantee from Pakistan. Petroleum Minister Dr asim Hussain told this to reporters after visiting Qatar, during which he held talks with his Qatari counterpart. He said Qatar has shown interest in providing LNG to Pakistan on long term basis provided the deal was finalised on government to government basis along with sovereign guarantees. He said if gas prices were finalised during the official talks, LNG imports would start from December this year. He

said upto 800 mmcfd would be added in the national transmission network by June this year. In reply to a question, he said gas supply to industrial units, especially textiles will be provided on priority to save the livelihood of thousand of people. earlier, Petroleum Minister chaired the meeting of special ministerial committee on gas issues to formulate practical recommendations for gas load management during the remaining period of the current winter season. The meeting was attended by minister for defense Chaudhry ahmad Mukhtar, minister for water and power syed Naveed Qamar, minister for religious affairs, syed Khursheed ahmed, minister for Kashmir affairs and Gilgit-Baltistan Mian Manzoor ahmad Wattoo and other senior officers. The committee was briefed regarding

existing gas supply and demand situation in the country. Managing Directors of sNGPL and ssGCL gave detailed presentations to the committee via video conferencing. The committee was informed that presently there was a shortfall of 1.1 bcfd in the country as demand of natural gas has quadrupled in winters as compared to summer. During the first week of January sNGPL is facing a total shortfall of 735 mmcfd, while as ssGC has a shortfall of 376 mmcfd. The committee deliberated upon existing gas load management plan including gas supply to various sectors including the domestic, industrial, CNG, fertiliser, textile and commercial sectors. The committee agreed that issue of gas shortage should not be politicised and the opposition should provide plausible suggestions to overcome gas shortfall.

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Wednesday, 11 January, 2012

news

0.08pc Balochistan solar energy can serve national needs APF chief wants risk-averse banks to extend energy finances g Says corruption, lack of good governance, security keeping investors at bay

CORPORATE CORNER Wateen rewards on-time bill payments under ‘recharge and reconnect’ scheme LAHORE: Wateen Telecom announced the winners of its third lucky draw in the ‘recharge and reconnect’ campaign through which it is incentivising subscribers to recharge their accounts early. ‘recharge and reconnect’ lucky draw campaign is aimed at building a connection with Wateen customers, while encouraging them to recharge their accounts before the recharge date for each month. Nayyar Waseem from Lahore won an I-pad, Owais Qureshi from Islamabad won an HP laptop and shafqat abbas from Lahore was the winner of a Dell streak tablet. The winners received their prizes from Wateen’s Chief Commercial Officer, syed Jibran ali. pRESS RELEASE

KARACHI ISMAIL DILAWAR

eing a patriotic Pakistani one tends to do some good for his homeland only to find a deeprooted corruption, lack of good governance, transparency and well-thought-out policies hindering his way in one way or another. awais Khan, the president and chief executive of american Pakistan Foundation (aPF), is one such overseas Pakistani who is striving hard to bring economic development and social change in, what he believes to be, a resource-rich Pakistan. Policymakers in Pakistan are desperately wandering here and there to find a sustainable solution to the fast ingraining energy crises in the country. Khan, who lives outside Pakistan, has a clearer vision to find a ‘scalable’ remedy to this economy-crippling menace. Pakistan, he says, through employing right governance and a well-thought-out energy policy, could generate thousands of megawatts electricity using its vast but still untapped sources of solar, hydro, hydroelectric, wind and waste energy scat-

tered across the country. Khan, a leading american businessman of Pakistani origin, refers to a study revealing that if tapped only 0.08 per cent of the solar energy reserves in Balochistan province could cater to energy needs of the entire country. “The banks could step up to lease and finance the energy equipment,” aPF chief said during a roundtable discussion with a group of journalists here at the residence of the Us Consul General. singling out the fast disappearing energy-crises-hit cottage industry, the investment banker said the country has a potential of generating 43,000MW electricity using hydro and hydroelectric energy sources available in the country’s northern areas. some 50,000MW of wind power could be generated from the coastal corridor stretching from Karachi to Gwadar, Balochistan. Khan said agriwaste like cow dung, etc could also be used for energy generation in the country. Lack of funding, energy policy, security and corruption are major stumbling blocks, aPF chief underlined, for achieving these goals. “There are lots of (financing) vehicles but not a lot of people know how to access these vehicles,” Khan lamented.

USAiD funds training of Power Transmission and Distribution Entities LAHORE: energy Policy Project (ePP) of Us agency for International Development’s (UsaID) has launched a training programme on Power system analysis (Pss/e) software for the engineers of power transmission companies–NTDC and NesPaK, and various power sector distribution companies (DIsCOs).The inauguration ceremony was held at the Power Planning Department of Power Planning Department of National Transmission and Despatch Co (NTDC). The programme comprises of a ‘Beginners Level’ course for newly recruited engineers and a 3week ‘advanced Level’ course for experienced engineers. The scope of these training extends to developing the capacity of the trainees to analyse and propose solutions to remove the bottlenecks in the system. pRESS RELEASE

He said multilateral finders like World Bank and International Finance Corporation (IFC) were present in the country to fund these mega energy projects but, unfortunately, 99.9 per cent of the local institutions were falling short of meeting the “broader criterion” set for getting funding from these multinational organisations. Institutional capacity building, bringing domestic work standards at par with that of international ones and experienced and skilled managers are the three prerequisites, Khan said, constituting this broader funding criterion. The risk-averse banks, he said, could bridge this financial gap through extending more advances to the private individual and institutional borrowers willing to install the sophisticated energy generating equipment. Khan complained about the deeplyingrained corruption in Pakistan which deters his organisation, aPF, from working on big projects. “To a personal perspective, I found it (corruption) a frequent occurrence and biggest challenge besides security,” Khan told the journalists. “To get permission from the government (to undertake a certain project) a lot of

under-the-table things happen,” he elaborated. attributing this menace to lack of right system and right people, the american businessman urged the need for creating political awareness among voters in the forthcoming general elections. “Tell them that your vote matters so use it in right way,” Khan urged the journalists. For making entrepreneurship a success story in Pakistan, the aPF CeO suggested an easy access to cheap capital, good governance, a right legal system and a business-friendly security climate which he said was lacking in case of Pakistan. “Pakistan has been suffering from the image issue. and number one concern of every entrepreneur is whether my people and finances are safe,” he said. about aPF, Khan said the privatelyfunded organisation had a goal to provide one million individuals with energy by 2015 under its “rural electrification” plan in areas the most neglected or where the need was more pressing. He said, having benefited over 42,000 flood affectees in Pakistan, aPF was set up in Dec 2009 to leverage the Pak-american diaspora for economic development and social change in Pakistan.

ISLAMABAD: Federal Minister for Communications Dr arbab alamgir Khan Khalil reviewed progress of various ongoing NHa projects. He instructed the concerned officials to ensure timely completion of all these projects in accordance with international standards so that people could benefit from the development projects launched by the democratic government of PPP. He also expressed the determination that he will ensure maximum transparency in matters pertaining to the award of contracts for toll plazas so that maximum revenue can be generated and for this purpose, revolutionary changes will be effected in the road and communication network. pRESS RELEASE

Waste Busters comes up with a solution to energy crisis LAHORE: Lahore based waste management company, Waste Busters, has introduced their refuse Derived Fuel (rDF) based gasification plant in the Pakistani market to combat the current energy crisis faced by the industry. rDF is the main fuel that is being used to run these gasification units to produce thermal energy at very high temperatures which can then be used to operate gas generators to produce electricity. The company in collaboration with alternate energy services Providers (aesP) has developed five models of different capacities to suit the needs of their customers. pRESS RELEASE

LSE MD congratulates LEJA oﬃce bearers

Political warfare shatters confidence, KSe sheds 107pts

LAHORE: Managing Director and Chief executive Officer of Lahore stock exchange (Lse) aftab ahmed Chaudhry congratulated newly elected Lahore economic Journalists (LeJa) President Zahid abid, Vice President Muhammad riaz, secretary Ishtiaq Hussain, Finance secretary shahbaz anwar and Members of executive Committee ahsan siddique, sadiq Bloach and Mrs ruby. In a press statement of Lse, Managing Director hoped that newly elected representatives of LeJa would use their writing skills for betterment of the economy especially for the investors and listed companies at Lse. pRESS RELEASE

KARACHI StAff REpoRt

rOM the onset of the trading session the benchmark was sliding downwards with muted volumes. By mid day, the NrO implementation case verdict was announced that adversely impacted the market as the benchmark kissed a low of 10,771 points losing 107 points. Once again the court awarded few more days to implement the decision by Jan 16, 2011. In case government was unable to implement the decision various option stated would be considered which may have unpleasant consequences. The extended timeframe available for implementation restricted the panic selling by investors as market recovered lost

Dr Arbab reviews progress of ongoing NHA projects

Half-day conference at FPcci today

ground. The benchmark once again breached the 11k level and closed at 10,933 points. Today turned out to be another dull trading day as only 44m shares were traded throughout the day. The index remained in red throughout the day over speculations regarding the supreme Court’s

decision of NrO case in fact it went as low as 10,771 points level when the decision was being announced, however some recovery was seen later. FFC and FFBL remained in red despite the rs165 increase in urea prices announced last evening. In the current situation, the current political warfare may continue

to hamper investor confidence and market performance, said Bilal asif at HHMFs. The Kse 30 index lost 62.76 points to close at 10061.44 levels, while all share index closed at 7588.94 levels after losing 72.72 points. Total 52 scrips advanced 175 declined and 102 remain unchanged out of total 329 scrips traded.

KARACHI: a half-day conference, titled “We Deserve Crisis or Growth” is being held at the Federation House, today at 2:30 pm. Deputy Chairman senate Mr Jan Muhammad Khan Jamali will make telephone address at the conference from Islamabad. sindh Power and Information Minister shazia Marri, Chairman Institute of research for Islamic Banking and Finance Dr Mirza Ikhtiar Baig, advisor to Prime Minister on Textiles, President Balochistan economic Forum sardar shoukat Popalzai, Director General Center for Maritime Policy and research Institute Pervez asghar and CeO Tradekey Junaid Mansoor, will express their views as speakers at the conference. pRESS RELEASE

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Wednesday, 11 Januar y, 2012

eDiTORiAL

Copper politics and state of economy

Pak-Korea initiative

probable Pak-Korea FTa initiative is just the blueprint trade authorities need to work on to squeeze fiscal leverage in an election season marked by bloating deficits and pressure on the BoP. Korea’s proactive shift, too, highlights posturing typical of the post-recession scenario, as the slowdown in western economies is hastening regional alliances. That Islamabad is seriously considering establishing a special economic zone for Korea is even better. It shows seriousness in official circles just when analysts had written off increased exports to offset the dangerously weakening rupee. Yet such efforts are just breathers till the export act is got together. The FTa is designed to increase Pak-Korea trade from present $1.36 billion to $2-3 odd billion. The increase and intent, though appreciated, will need to be replicated far and wide to fill our current fiscal gap. In terms of trade outlook, relevant authorities must look for ways to in-

corporate value addition in the export mix. Pakistan’s basic sellers continue to revolve around agri and textile products, not market winners in today’s environment. If the government has seriously decided to turn its attention to enhancing trade, we should see manufacturing and industry facilitated in ways not seen before. as things stand, official apathy combines with crippling energy shortage to limit output to well below optimal production. Meanwhile, FTas will bring spill-over benefits as well, like FDI. already, seoul is considering taking up Islamabad’s offer of joint ventures in energy and engineering. While the commerce ministry considers potential capitals for similar enterprises, it is advised to make visible arrangements to facilitate improved intra-saarc trade. It’s unfortunate that trade among the bloc amounts to an unimpressive seven per cent. With asia beginning to follow cross-atlantic slowdown currents, all economies will need improved financial interaction to stay afloat.

Advertising trends in 2011 This is with regards to the feature, “advertising- a mélange of creativity and ingenuity”, published on 09/01/12. advertising industry of Pakistan has massively grown and flourished over the years. Internationally as well, companies have been considerably making use of youth advertisement because of which humour has been taken into account many a time. Humour surely increases the brand recall for a product for it has the ‘sharing’ attribute and appeal that normally attracts a lot of audience. Likewise, it did not come to me as a surprise when I saw that Ufone had received the best advertising campaign award for the year 2010-2011. Ufone advertisements are truly an amalgamation of fun and some out of the box humour, well knitted into surreal yet meaningful content to successfully put up a comedy theatre for its viewers. similarly, most of the other companies last year also seemed to tactfully make use of humour in order to drive the consumer behaviour in a constructive way. For example, Telenor’s aggressive advertising was a very well thought out campaign and surely deserved a pat on the back and it did inculcate some serious positive thinking in the minds of youth.

Shahzad Ali gill

O doubt, investment is of an utmost significance in the socio-economic advancement of a country. In circumstances the arrival of a foreign investor for investment would be a blessing of God. But salute to our leaders and their “multitalented advisors” who have failed to eradicate malpractices from Pse’s (Public sector enterprises); a noteworthy example of negligence is of rekodeq Project. This coppercum-gold mining project has become an apple of discord between the government of Balochistan and Tethyan Copper Company Pakistan Ltd. (TCC). This agreement was inked between GoB and BHP Billiton in 1993. In 2000, BHP transferred 75 per cent of it shares to TCC. This deal was, and is totally in line with Chagai Hills exploration Joint Venture agreement (CHeJVa) and Balochistan Minerals rules (BMr) 2002. The estimated mine-life of this project is 56 years while the mineral reserves are estimated to be about 5.9 billion tonnes. 2006 onwards, the mining company has invested more than Us $220 million on this project – the single largest foreign direct investment in Pakistan. The government of Balochistan has discarded the mining license application of TCC that has invested its resources to bring reko Diq on the map. The provincial government did not even bother to negotiate with TCC on their feasibility report and backtracked on CHeJVa that was signed seventeen years ago and was even endorsed by the supreme Court in its hearing of the case. But media reports exuding fallacies synthesized many questions regarding the project’s future. Now the company has gone for international arbitration to safeguard its legal rights which are in line with the CHeJVa agreement and Balochistan Mineral rules 2002. If the company succeeds in having the court’s decision in its favour then the government does not seem to

High time government ensures its credibility by promoting investor friendly environment which will rejuvenate our market

MAHA KHAN ISLAMABAD

be in a position to reimburse company’s finances. sources claim that the provincial government has requested to the apex court to declare the said agreement null and void because it fears that the possible decision in result of arbitration will be in investor’s favour. On the other hand, some Chinese and american firms have also entered in this “Copper-Gold race”. The recent advancements on the part of the provincial government reveal that it has made its mind that it will not issue the license to TCC but is in a fix while earmarking the “friend-country” it should exalt; america or China. The question is why the government has not given time to the company representatives? If the government is really interested in the well being of its people and is well aware of the far-reaching effects of this project on country’s economy then why it did not go for a new feasibility report? If the company was not following mining rules or by-passing any law then why the government did not bother to take a stern action against it in the past seventeen years? I fail to understand why, and on whose behest, the chief minister of Balochistan and the nuclear scientist Dr samar Mubarakmand are bent upon tarnishing the reputation of Pakistan in front of foreign investors by sabotaging a seventeen years old joint venture agreement by creating false propaganda I have no doubt about Dr Mand’s patriotic spirit but it’s not explicable how he will complete this mega-project without modern technology and finances while he is not feeling at home with the government machinery in the process of Thar Coal Project. Projects like these require unlimited resources and people with proven expertise and track record. We don’t have such modern technology apparatus and financial resources which are considered necessary for the successful accomplishment of this project. For Balochistan to prosper, it needs much more than gold and copper reserve, which remains buried underground. Balochistan is in desperate need to improve its human capital to reap the maximal advantage from the natural resources. remember what happened with saindak Copper Gold Project. Foreign contractors build it in 1990s. When it came online and Pakistani government took over, it started generating loss after loss despite gold and copper flowing from it. It had become the world’s first loss-making gold mine by the late 1990s and the budgetary comity had to close it down to stop the losses. Later on, it was given to Chinese operators who are running it today! The need of the hour is that the government should take some serious steps to decide this matter impartially. This is high time for the government to ensure its credibility by promoting investor friendly environment which will rejuvenate our market and will have a positive impact on the socio-economic development of the country. The writer is a freelance journalist

Penetrating new IT domains

S A J Shirazi

He Internet Corporation for assigned Names and Numbers (ICaNN) is about to expand general Top Level Domaown names (gTLDs). During the first round, ICaNN will accept only 500 applications, while the subsequent rounds will be limited to 400 applications. The gTLDs expansion programme has the potential to add countless new names to the existing twenty one available top-level domains (.com, .net, .edu, .biz, .org) and over 100 suffices permitting brands, businesses,

geographical regions and even individuals to apply for a virtually unlimited list of new gTLDs in different scripts including arabic. It is expected that the first gTLDs will come online by 2013. Businesses and governments are analyzing the impact of proposed expansion of gTLDs on the internet with caution and concern. The focus for many brand owners has been to argue against the expansion of the name space, or at least to postpone it till the internet really needs such a change and till a more efficient brand right protection system is in place. But ICaNN is going ahead with the program. a global awareness campaign to educate the world about the expected changes in the in the cyber space is in the air and will be launched anytime. The decisions will vary from industry to industry and business to business but one thing is for sure; new gTLDs are not for everyone. The option is costly; $185,000 initial application fee plus $25,000 a year to run the registry. If

someone else wants the same domain, bidding will determine the winner. and another fee will crop up when a registry is setting up secondary domains on a toplevel domain. One wonders what might be the rationale for the proposed fee structure by ICaNN - a nonprofit entity. The price tag alone leaves small and medium sized businesses out of the big name games. Owning a “.sports” TLD for anyone in the industry manufacturing sports goods sounds like a good idea provided the business can afford outbidding other sports goods manufacturers and the fee. The opening up of new gTLDs is certain to set off a wave of new activities on the internet domain space that could fundamentally change existing practices related to domain name use and search engine optimization; and more broadly impact internet based advertising, promotion and ecommerce. Unless it happens, no one can say how? Big businesses have already started research to judge the impact to their

SHAHAB JAFry Business editor

KUNWAr KHULDUNE SHAHiD Sub-editor

BABUr SAGHir Creative Head

ALi riZvi news editor

MAHEEN SyED Sub-editor

HAMMAD rAZA Layout Designer

no one can predict how iCAnn’s gTLDs expansion will change the internet and how ecommerce shapes up in the future

businesses of this impending change, and are reviewing the recently revised and published ICaNN draft guidebook closely for insights. some companies (like Canon) have already announced that they will apply for custom suffixes (.canon). Biggest advantage to ask for a new gTLD is to have a key generic term in any industry. The new internet domain space may open the potential for new ideas to improve an online presence in the marketplace. It can also open new opportunities for communities, cities and regions who would like to have more powerful presence on the internet. But who really needs a new gTLD? analysts say that proposed gTLDs expansion will solve problems that do not exist. The current dot-com structure works fine as it is. The expansion of the gTLDs will

only challenge existing online branding and brand protection and marketing strategies at all levels adding more noise. The businesses will feel forced to spend huge sums in fees to ICaNN and legal firms in order to reserve names to protect their trademarks from cyber squatters who could use them for spam and criminal activities. The only winner in this program seems ICaNN that will reap millions in fees for domain names that are not needed in the first place and the United states that intends to retain control on the Web's critical. The writer is Deputy Controller of Examinations at Lahore School of Economics. He can be reached at sajshirazi@gmail.com

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Wednesday, 11 January, 2012

When you’re the first person whose beliefs are diﬀerent from what everyone else believes, you’re basically saying, “I’m right, and everyone else is wrong.” That’s a very unpleasant position to be in. It’s at once exhilarating and at the same time an invitation to be attacked

news

oracle corporation cEo Lawrence J Ellison

Teradata – the business T

ALI RIzvI

He advent of the 21st century has witnessed an explosion in innovation most importantly the IT sector has taken the lead with futuristic designs, technologies and innovation that aim at integrating the world. With the world fast evolving, the creation of the computer has to be the single most important discovery after the wheel. and with the use of computers increasingly becoming a necessity, the demand for Data Warehousing and enterprise analytics has also witnessed a massive increase. To understand more about Data Warehousing and enterprise analytics we talked to Teradata Managing Director, Khurram rahat to find out in greater detail the industry dynamics and how Teradata as a leading provider of powerful, enterprise analytic technologies and services is foreseeing its business and scope in the near future. Q: Tell us about yourself and your company? How has the response been for your organisation in Pakistan?

the first of its kind Global Consulting Center. In Pakistan we are bringing a technological cultural change in the IT industry by emphasising on customer service. We help our clients in transforming transactions into relationships. We’re a proven, trusted partner for businesses all across the globe. Our customers in Pakistan and globally are some of the leading organisations representing key sectors including government, telecommunications, financial, retail and airline industry.

THE rESPoNSE iN PAKiSTAN The response to Teradata within Pakistan, though initially slow, has been very encouraging. More and more organisations are embracing enterprise data warehouse and business intelligence solutions. In our portfolio we have clients, who are market leaders or, are challenging the market leaders. This fact alone speaks for itself about the value we help create for our customers.

cUSToMEr BASE AND ProDUcTS THE MAN Presently I work as the Managing Director of Teradata in Pakistan. I did my MBa from IBa, Karachi which helped me launch my career in sales. I have had experience in various sales, project management and senior management positions at country and regional level comprising of 21 years, with NCr and after the divesture of NCr in 2007, with Teradata.

THE coMPANy Our company, Teradata is the world’s largest company focused on integrated data warehousing, big data analytics and business applications. Our powerful solutions portfolio and database are the foundation on which we’ve built our leadership position in business intelligence. Teradata, being originally a part of NCr, is operating in Pakistan as a multinational company since the early 1990s. In terms of corporate standing, Teradata contributes widely to the field of IT development in Pakistan - be it investing in education programs, recognising professionals through IT excellence awards or introducing emerging technologies in the country or setting up

Q: Tell us about your customer base in the region? Who are they, and how do your products facilitate their businesses?

crEATiNG AWArENESS In Pakistan, we introduced the concept of enterprise Data Warehousing and enterprise analytics in late 1990s. It was hard at first to create awareness and make our users realise the importance of deriving strategic information for decision making. But slowly, leading organizations in the country especially in the telecom sector, have understood the importance. Other than Telecom sector, leading companies in Finance, retail, airline and Government sectors are using our solutions for enterprise Data Warehouse (eDW) and Business Intelligence (BI). We have also deployed and maintained some of the largest Contact Centers for our clients.

WorKiNG oUT coMPLEx ANALySiS We have the technology, database and hardware that serve the task of answering complex questions and working out complex analysis. also our hardware architecture al-

lows the client to grow their processing power of storage rather than buying a bigger server and this ensures investment protection. Basically our solutions help in better strategic decision making and that has a positive impact on our client’s bottom line.

iNcrEASiNG iNvESTMENT Q: Does increasing investment in the business in Pakistan ensure a competitive advantage for Teradata?

FAiTH iN PAKiSTAN Teradata always has belief in the future of Pakistan and enhanced investments reaffirm our commitment to provide the best, competitive solutions.

coMPETiTivE ADvANTAGE Our competitive advantage relies on the latest technology we offer. Teradata is focused on a very high end specific niche which is enterprise Business Intelligence and Data Warehousing. The technology we offer, in both database and hardware, is the best for business intelligence. also, our database technology is designed to handle complex queries very efficiently and provide information and analysis in the least possible time.

crEDiBiLiTy AND DATA iNTEGriTy Q: Given that you cater to various industries, how do you maintain your credibility and ensure data integrity, especially when it comes to data warehouse where data integrity is of immense importance.

EMPHASiS oN ETHicS Teradata prides itself in maintaining resources of highest ethical values – our corporate values lay special emphasis on ethics and its compliance within the organization and also for its clients. It is true that

we are solution providers and consultants to leading organisations within the same sector, but ensuring data integrity and business rules secrecy is our pride.

THE MArKETiNG DiMENSioN Q: How do you manage B2B marketing? How challenging is it compared to B2C

Enterprise JoHNSoN GILL

ITH college degree enrollments of 352,303 and university enrollments of 741,092, according to Bureau of statistics survey, it’s heartening to see how the hope of education fails when one finishes graduation and starts looking for a “good job” in vain. With little knowledge of what employers require in terms of skill and education most parents send their children to colleges and universities hoping that they will become a source of income for the family and will be able to support the family financially.

GETTiNG A GooD JoB Most coveted and sought after schools, for long, have been Medical and engineering Colleges and while every one longs to become a doctor or an engineer, not everyone gets there. When they are out of options, some start thinking about pursuing an MBa, others about Computer sciences, others about accounting and yet others about just getting any degree that can get them a Bachelors or Masters qualification. With little support available in schools and colleges about career advice, students start running after degrees here and there like headless chicken. even when one has selected the right degree, given the market demand and what

PRO 11-01-2012_Layout 1 1/11/2012 2:06 AM Page 5

Wednesday, 11 January, 2012

news

ess solutions Titan

hedge sTRATegies

fessional manner. We do encounter offensive marketing from time to time, however, we prefer to focus on our strengths and believe that market is intelligent enough to reject such negative attempts.

DEALiNG WiTH coMPETiTioN Q: How do you see your business faring against competitors in the region? Teradata has been faring very strongly against competition due to the strength of our solutions, professional services and focus. although there are some solutions that strive to provide a data warehousing solution to augment operational data store services, these often fall far short of the requirements of the organisations. I could go on to the details of it but then that would warrant a separate session.

iNTEGrATED SoLUTioNS Q: Some companies prefer single vendors. Does that impact you in any way? How do you provide a solution set for this? You are right in saying that some organisations do have a preference for single vendor for all their IT needs. This trend is fading fast as organisations have come to realize that it is impossible for a single vendor to have best solution in all disciplines of Information Technology. While organisations can claim to have a ‘complete stack’ of solution to meet the IT needs of its customers, the whole stack, itself would not be the ‘best in breed’. Thus, customers cannot really benefit optimally from having one vendor to meet all its IT needs. The growing trend is to go for ‘best in breed’ solution to meet the varying IT needs. These days you will see that almost all customers who have standardised hardware or database platform for their operational systems are going for Teradata as their choice for a Data Warehouse and Business Intelligence foundation platform.

FUTUrE oUTLooK

marketing? Do you rely on print media for advertisements and marketing? Marketing for Teradata is not as same as marketing for other industries. Our products and services are targeted towards a niche band of organisations who want to invest in information technology to devise efficient decision making criterion. Teradata conducts B2B marketing through global and regional conferences, roadshows, direct mail shots and interactive knowledge

sharing sessions with our partners. Q11: There are international cases of offensive marketing against you. If your competitor adopts offensive marketing in Pakistan as well, would you counter it? Teradata does not indulge in unethical and offensive marketing. We believe in using marketing as a tool and vehicle to bring knowledge to the targeted audience and will continue to do so in an ethical and pro-

Q3: Given the current economic situation of Pakistan, how does Teradata foresee the future of its business in the country, given a deteriorating macroeconomic situation, with declining foreign direct investment, etc? I am not at liberty to share the specific details, but we continue to see Pakistan as an emerging market with lot of potential and are looking forward to growth in the sector. Q12: What is the company vision for 2012 in the region and, most importantly, Pakistan? Pakistan has a lot of potential for growth and we need to utilise this potential. We aim to take a few positive actions including; investment in training development of human resources and focusing on quality assurance and standards.

ENTErPriSE rESoUrcE PLANNiNG While doctors, engineers, chartered accounts, teachers etc have been more known to the general population of Pakistan information technology (IT) education in general and enterprise resource Planning(erP) education in specific has been hidden from many. The world of enterprise application has been full of opportunities for those who know the magical land but it has been invisible to a large educated population in Pakistan.

A WorLD WHErE GiANTS coLLiDE It’s the world where world giants like Oracle and saP rule with kingdoms of their own. Oracle has annual revenues of $35.6 billion, 380,000 customers, spans over 145 countries, has 108,000 employees and a network of 14 million developers community. saP has annual revenues of $12.5 billion, 176, 000 customers, spans over 50

countries and has 54,000 employees. These two are beyond all doubt two formidable rivals in the world of enterprise application. One can see a war of territories, new domains and expansion of wealth. Oracle has been on this spree for the last 5 years spending $40 billion buying about 78 companies. While saP has relied more on internal growth with the last noticeable acquisition being Business Objects the business intelligence software, but recent buy out of sybase for $6 billion last year and recent bid to buy success Factor for $3.4 billion seems to be the start once again. Oracle has been much more aggressive in acquisitions strategy and seems that the spree is not going to end any time soon. This world of erP applications and war of ever extending the portfolio has many allies that have joined these giants to not only help make these applications better, to deploy them at organisations that desire them and to integrate them with other applications. There are thousands of partners around the globe that sell and deploy these applications. so opportunities are immense whether inside these principal organisations, or at customers or partner networks that deploys these enterprise applications. The question though remains, what is the key to enter this land of opportunities?

DEvELoPiNG THE SKiLL

THE MiDDLE EAST ErP MArKET

Developing the skill is the barrier to entry and not a very easy one for that matter to cross. But the skill is the key itself. Lets take Oracle for example. Whether you take development track, or database track or applications track, you’re in the game of big business. In applications you can choose from financials, supply chain management, customer relationship management, human resources management and several other applications. In this field, experience in one country counts in another, experience in one industry counts in another. With every cycle of deployment you are becoming more valuable no matter where you are positioned across the globe. enrichment of knowledge is another dimension to these skills. If you are a financial expert you will have to deploy financials applications in all industries whether that’s banking, or FMCG, or manufacturing or distribution or an airline.

Let’s take a closer look at Middle east job market in erP applications. Middle east doesn’t produce many of their own resources in certified enterprise applications and are always looking for consultants from abroad. Having closer affinities with Pakistan, Middle east is a good job destination for job seekers in Pakistan. a major proportion of workers in the Middle east come from India since India produces about 70,000 consultants in Oracle alone. While an ordinary labourer gets only a minimum wage in the Middle east skilled knowledge workers with erP deployment experience can make anywhere from 25,000 to 35,000 dirhams a month. This is the world of big business which has created hundreds of thousands of jobs for people around the globe. enterprise application industry has grown at 8.5% to reach $245 billion in 2010 according to a Gartner report and it can definitely create job opportunities for Pakistani professionals. students and professionals in our country are not aware of enterprise applications. The greater the awareness among our professionals about global prospects of this valuable skill the more people will strive to acquire it.

MAGNiTUDE oF oPPorTUNiTiES Pakistan itself presents a plethora of opportunities. Oracle has more than 1100 clients in Pakistan including some of the largest organisations in Pakistan starting from Mobilink, Telenor, to public sector enterprises.

pHILLIp VAUGHAN SAp Director, Utilities Industry Asia pacific Japan

Achieving efficiency

IBM’s business now primarily focuses doing back office work for other companies. IBM’s technology not only helped businesses achieve efficiency, but saved cost. HUMAyUN BASHIR IBM Country General Manager pakistan

Risk of no icT

The writer is News Editor, Profit. Comments and queries: ali.rizvi7957@gmail.com

rise Applications: the new job market employers are looking for, quality of education determines to a large extent whether or not one will get a job or a good salary. With recent down turn in the job market even the best business schools in Pakistan have not been able to fully employ all of their graduates.

When companies decide to invest in volatile regions, they accept sovereign risk as part of the package and therefore corporations evolve hedge strategies to dampen the impact of risk

The writer is Director Outsourcing at Abacus Consulting

the risk of having no ICt people on the board is that ICt continues to be an afterthought, which will ultimately affect competitiveness JoHN CHEN Sybase CEo

RewoRking pRocesses

All companies, big and small need to look towards reengineering and reworking their processes to improve efficiency. SALIM GHAURI NetSol CEo

PRO 11-01-2012_Layout 1 1/11/2012 2:07 AM Page 6

Wednesday, 11 January, 2012

06 Markets top 10 sectors

33% 06% 23% 13% 03%

Chemicals

06% 03% 04% 04% 05%

Support Services

Construction & Materials electricity Banks

Fixed Line Telecommunication

Oil & gas

Financial Services

Personal goods

Food Producers

top 5 perForMers sector wise SyMBoL

oPEN

HiGH

LoW cUrrENT

cHANGE

voLUME

413.00 109.15 25.32 6.90 86.00

405.00 104.71 24.12 6.71 84.70

412.96 107.37 24.50 6.80 85.87

0.23 -1.51 0.38 -0.06 -0.14

53,082 689,035 7,125 240,273 23,584

15.50 27.74 151.99 38.78 1.65

14.17 26.53 149.00 37.80 1.40

15.50 27.25 149.44 37.96 1.45

0.33 -0.38 -1.36 -0.67 -0.05

2,700 691,924 3,901 99,144 27,247

Oil and Gas Attock Petroleum Attock Refinery Burshane LPg Byco Petroleum Mari gas Co.

STOCK MARKET HIGHLIGHTS index 10933.18 2847.21 2314.69

KSe-100 LSe-25 iSe-10

Change -107.13 -22.77 -62.16

Volume 33,326,703 1,531,978 3,810

Agritech Limited Arif Habib Co SD Clariant Pakistan Dawood Hercules Descon Chemical

Open 22.78 33.59 10.14 4.01 22.66

High 22.88 33.75 10.09 4.10 23.15

Low 22.00 32.73 9.70 3.92 22.14

Close 22.02 33.68 9.84 4.00 22.78

Change -0.76 0.09 -0.30 -0.01 0.12

Turnover 4,445,014 4,411,939 3,936,394 3,116,764 2,494,080

Major Losers nestle PakistanXD UniLever Pak Ltd. Unilever Pak Foods indus DyeingXD AL-ghazi TractorsXD

3019.99 5381.67 1700.00 399.33 188.50

2985.00 5400.00 1700.00 379.76 180.19

2890.00 5250.01 1650.00 379.38 179.08

2910.73 5308.57 1650.00 379.43 179.10

-109.26 -73.10 -50.00 -19.90 -9.40

105 31 27 70 1,013

Volume Leaders Habib Sugar Hub Power Co. Lotte PakPTA Soneri Bank Ltd Fatima Fert.Co.

22.78 33.59 10.14 4.01 22.66

22.88 33.75 10.09 4.10 23.15

22.00 32.73 9.70 3.92 22.14

22.02 33.68 9.84 4.00 22.78

-0.76 0.09 -0.30 -0.01 0.12

4,445,014 4,411,939 3,936,394 3,116,764 2,494,080

Bullion Market gold 24K gold 22K Silver (Tezabi) Silver (Thobi)

Per Tola (PKR) 54,981.00 51,608.00 1,001.00 1025.00

Per 10 gm (PKR) 47,188.00 44,245.00 859.00 880.00

Per Ounce US$ 1,630.00 – 35.05 –

Al-Abbas Cement Attock Cement Berger Paints Buxly Paints Cherat Cement

2.70 51.30 13.99 5.61 8.63

18.75 1.01 8.07 30.75 10.03

19.01 1.15 8.16 31.37 10.13

0.01 0.04 0.00 -0.14 -0.88

2,400 21,685 171 23,064 19,009

26.19 3.66 40.19 8.00 19.35

2.70 51.45 13.90 6.00 9.00

2.51 51.00 13.50 5.61 8.40

2.60 51.25 13.90 5.61 8.60

-0.10 -0.05 -0.09 0.00 -0.03

1,123 2,664 525 200 8,751

5.72 188.50 5.90 28.50 6.78

Agriautos industries Atlas engineering Atlas Honda Ltd. Dewan Motors exide (PAK)

57.50 58.00 120.00 1.88 163.27

18.75 51.89 7.80 1.39 13.00

18.85 50.63 8.00 1.46 13.00

27.00 3.90 40.85 8.00 19.35

25.03 3.40 40.10 7.21 18.45

5.50 180.19 5.50 28.50 6.40

5.50 179.08 5.10 27.08 6.05

57.98 58.00 120.00 1.89 165.00

26.02 3.60 40.10 7.99 18.45

-0.17 -0.06 -0.09 -0.01 -0.90

6,444 24,096 1,001 6,475 2,000

18.75 50.63 7.80 1.39 12.90

0.00 -1.26 0.00 0.00 -0.10

261 10 117 299 859

5.50 179.10 5.50 28.50 6.40

1,000 1,013 4,207 2 5,508

56.27 58.00 120.00 1.80 164.00

-1.23 0.00 0.00 -0.08 0.73

836 5,000 2 29,806 3,310

109.00 111.18 145.05 145.58

0.69 -4.44

1,170 203

Beverages 110.49 111.43 150.02 150.00

24.50 8.20 3.49 15.94 8.20

25.50 8.93 3.64 15.94 8.30

24.50 8.20 3.35 14.94 8.01

24.50 8.20 3.40 15.94 8.22

0.00 0.00 -0.09 0.00 0.02

1 1 18,006 1 3,417

(Colony) Thal AL-Azhar Textile Amtex Limited Artistic Denim Mills Azam Textile

1.95 0.25 1.32 21.45 1.08

1.16 0.89 1.40 21.75 1.60

1.15 0.27 1.30 21.45 1.08

1.15 0.27 1.31 21.51 1.08

-0.80 0.02 -0.01 0.06 0.00

1,000 2,001 178,624 150,120 1

27.68 109.56 19.86 96.46 42.76

AHCL-JAn ATRL-JAn DgKC-JAn engRO-JAn FFBL-JAn

27.95 110.88 19.95 96.25 42.61

27.35 109.11 19.71 95.36 42.17

27.70 109.56 19.80 95.53 42.31

0.02 0.00 -0.06 -0.93 -0.45

48,500 132,500 111,500 232,500 277,000

Abbott Laboratories Ferozsons (Lab) Ltd. glaxoSmithKline Pak. iBL HealthCare Sanofi-Aventis

102.00 73.62 66.10 17.40 144.39

102.00 75.00 67.50 18.40 144.50

101.02 73.62 66.10 16.53 144.39

-0.98 0.00 0.00 -0.87 0.00

1,461 56 260 28,481 170

101.00 73.62 66.10 16.40 144.00

Fixed Line Telecommunication -0.22 -9.40 -0.40 0.00 -0.38

55.50 58.00 117.50 1.73 164.00

AL-Abid Silk Mills Diamond ind. Pak elektron Ltd. Singer Pakistan Tariq glass ind.

P.T.C.L.A Pak Datacom Ltd Telecard Limited Wateen Telecom Ltd WorldCall Telecom

10.19 34.50 0.77 1.70 0.97

10.20 34.50 0.84 1.97 1.00

10.06 34.50 0.76 1.72 0.95

10.17 34.50 0.80 1.75 0.97

-0.02 0.00 0.03 0.05 0.00

300,655 1 41,081 19,028 114,268

0.30 33.89 0.63 1.65 15.85

0.39 34.00 0.65 1.90 16.00

0.28 33.51 0.60 1.70 16.00

0.30 33.59 0.60 1.72 16.00

0.00 -0.30 -0.03 0.07 0.15

5 232,100 35,501 956,984 393,500

57.21 10.01 5.72 11.61 28.94

57.80 10.05 5.85 11.64 29.49

54.51 9.98 5.70 11.43 28.60

55.19 10.00 5.70 11.46 29.25

-2.02 -0.01 -0.02 -0.15 0.31

79,798 34,397 169,609 149,549 108,175

Electricity genertech Hub Power Co. Japan Power K.e.S.C. Kohinoor energy

Banks Allied Bank Ltd Askari Bank B.O.Punjab Bank Al-Falah Bank AL-Habib

SyMBoL

oPEN

HiGH

LoW cUrrENT

cHANGE

voLUME

Non Life Insurance 18.75 49.30 7.80 1.38 12.75

Pharma and Bio Tech

Industrial Engineering Ados Pakistan AL-ghazi TractorsXD AL-Khair gadoon Bolan Casting ghandhara ind.

Adam Sugar AL-noor Suger Mills Chashma Sugar Mills Colony Sugar Mills Crescent Sugar

Future Contracts

General Industrials Cherat Packaging eCOPACK Ltd ghani glass Ltd MACPAC Films Merit Pack

voLUME

Adamjee ins Atlas insurance Cres.Star insurance Cyan Limited igi insurance Ltd.

46.27 35.99 2.00 50.02 45.59

48.00 37.69 3.00 51.00 45.60

46.70 36.50 2.00 51.00 44.75

46.79 36.50 2.00 51.00 44.95

0.52 0.51 0.00 0.98 -0.64

19,175 1,951 1 1,500 2,393

13.50 1.40 65.53

14.50 1.40 65.53

0.00 0.00 0.00

2 1 157

0.42 14.36 14.23 0.65 0.80

0.00 0.00 0.00 0.00 -0.17

2 98 453 1 15,939

Life Insurance American Life east West Life Assur eFU Life Assur

14.50 1.40 65.53

14.50 2.34 68.80

Financial Services AMZ Ventures A Arif Habib investmen Arif Habib Ltd. Dawood Cap.Man XB Dawood equities

0.42 14.36 14.23 0.65 0.97

0.42 14.95 14.39 1.00 1.04

0.36 14.00 13.78 0.65 0.75

Equity Investment Instruments Atlas Fund of Fund B.R.R.guardian Cres. Stand.Mod elite Cap.Mod equity Modaraba

5.30 2.45 0.50 2.55 0.75

5.60 2.44 0.50 2.90 0.99

5.30 2.28 0.26 2.55 0.75

5.30 2.43 0.50 2.55 0.75

0.00 -0.02 0.00 0.00 0.00

362 3,632 6 24 303

12.10 36.00 6.00 31.01 11.50 69.50 1.07 63.50 4.50 110.07 23.01 2.25 3.42 8.01 21.85 26.10 16.01 499.00 1.90 138.65 15.70 18.39 13.60 1.05 70.61 60.00

13.00 36.00 7.00 32.00 11.83 70.00 1.14 63.53 4.50 110.07 23.89 3.00 3.54 8.03 23.00 27.64 17.01 524.33 1.93 138.65 15.80 18.49 14.00 1.05 72.01 60.00

0.05 0.00 0.00 0.00 -0.24 -0.50 0.07 -1.47 -0.90 0.00 0.00 0.00 -0.02 -0.02 0.00 1.14 0.00 0.00 -0.02 0.00 -0.20 -0.38 -0.01 -0.65 0.00 -1.00

2,502 25 6 40 13,996 687 704,210 3,887 500 36 73 302 207,052 14,925 168 2,700 11 50 25,509 1 57,845 45,690 536 1,000 200 5,000

Miscellaneous Century Paper Security Paper Johnson & Philips Pakistan Cables P.n.S.C. Pak.int.Con. SD TRg Pakistan Ltd. Murree Brewery Shakarganj Food Shezan inter. AL-Abid Silk Mills Hussain industries Pak elektron Ltd. Tariq glass ind. grays of Cambridge Shifa int.Hospitals Hum network Ltd. Dreamworld P.i.A.C.(A) Pak Services Sui north gas Sui South gas American Life east West Life Assur eFU Life Assur Jubilee Life in

12.95 36.00 7.00 32.00 12.07 70.50 1.07 65.00 5.40 110.07 23.89 3.00 3.56 8.05 23.00 26.50 17.01 524.33 1.95 138.65 16.00 18.87 14.01 1.70 72.01 61.00

13.00 36.00 8.00 32.00 12.00 71.00 1.19 65.00 4.50 111.11 25.08 3.80 3.60 8.49 23.00 27.79 17.76 524.33 2.15 140.00 16.01 18.80 14.00 1.15 72.01 60.50

Mutual Funds Buy 90.10 114.43 138.80 1.1647 87.95 11.46 24.53 24.04 92.41

International Oil Price WTI Crude Oil

$101.59

19.01 1.19 8.55 32.49 11.45

Construction and Materials

Murree Brewery Co. Shezan int’l

90.0423 139.2505 1.1711 115.1912

US Dollar euro great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAe Dirham Saudi Riyal Australian Dollar

19.00 1.11 8.16 31.51 11.01

cHANGE

Personal Goods

Industrial metals and Mining Crescent Steel Dost Steels Ltd. Huﬀaz Seamless Pipe int. ind.Ltd. inter.Steel Ltd.

LoW cUrrENT

Household Goods

Automobile and Parts

Interbank Rates US Dollar UK Pound Japanese Yen euro

15.17 27.63 150.80 38.63 1.50

HiGH

Food Producers

Chemicals

Market Value 1,638,363,376 23,099,358 182,994

Major Gainers Company Habib Sugar SPOT Hub Power Co. Lotte PakPTA Soneri Bank Ltd Fatima Fert.Co.

412.73 108.88 24.12 6.86 86.01

oPEN

SyMBoL

Sell 91.10 116.56 141.02 1.1798 90.59 11.74 24.82 24.29 95.41

Brent Crude Oil

$112.45

Fund

oﬀer

repurchase

Alfalah gHP Cash Fund Askari islamic Asset Allocation Fund Askari islamic income Fund Askari Sovereign Cash Fund Atlas income Fund Atlas islamic income Fund Atlas Money Market Fund Atlas Stock Market Fund Crosby Dragon Fund Crosby Phoenix Fund Dawood islamic Fund Faysal income & growth Fund Faysal islamic Savings growth Fund Faysal Money Market Fund Faysal Savings growth Fund First Habib Cash Fund First Habib income Fund First Habib Stock Fund HBL income Fund HBL islamic Money Market Fund HBL islamic Stock Fund

501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800 102.5100 0.0000 103.9600 101.4000 101.1400 101.4400 100.8800 100.8900 101.4400 98.8551 100.2278 105.1082

501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473

NAv 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473

Fund

oﬀer

repurchase

HBL Money Market Fund HBL Multi Asset Fund HBL Stock Fund igi income Fund igi Stock Fund JS Principal Secure Fund i JS Principal Secure Fund ii KASB Cash Fund Lakson equity Fund Lakson income Fund MCB Cash Management Optimizer Fund MCB Dynamic Cash Fund MCB Dynamic Stock Fund nAMCO income Fund national investment Unit Trust PiCiC income Fund UBL Capital Protected Fund ii UBL islamic Savings Fund UBL Savings income Fund

100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000 106.3763 102.2115 100.5994 103.2259 83.2931 108.2753 26.55 101.3261 106.7800 100.4576 101.9855

100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000 103.2779 100.7009 100.5994 101.6775 83.2931 108.2753 25.74 101.3261 101.4400 100.4576 100.9757

NAv 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087 103.2779 100.7009 100.5994 101.6775 85.4288 108.2753 25.74 101.3261 106.7800 100.4576 100.9757

PRO 11-01-2012_Layout 1 1/11/2012 2:08 AM Page 7

Wednesday, 11 January, 2012

Iran-Pakistan gas pipeline is the most logical pipeline project because Iran has the largest gas reserves in the world and we could easily get one billion cubic feet of gas from Iran if we had the political will to resist US pressure

news

07 Remittances rise to $6.33b in 1HFY12

Hascol chairman & cEo, Mumtaz Hasan Khan

Jinnah power project starts test run LAHoRE

StAff REpoRt

N yet another significant move towards implementation of the project, the first unit of Jinnah Hydropower Project has been put on trial commission this week. The test-run would continue for 15 days. The 96-MW Jinnah Hydropower Project – a runof-the-river scheme – is located on river Indus adjacent to Jinnah Barrage in Mianwali district. The overall completion of the project is expected by the mid of this year. On completion, the project will generate about 688 million units electricity annually, thus, yielding an estimated benefit of rs6 billion per annum. Jinnah Hydropower Project is a component of least-cost energy generation plan being implemented by WaPDa on priority. The objective of the plan is to improve the ratio of low-cost hydel electricity in the national grid, so as to stabilise the overall tariff in the system. It is pertinent to mention that

the share of hydel energy in overall energy mix is almost 32 per cent. It is also worth mentioning that average tariff for hydel electricity is rs1.54 per unit against the overall average tariff of about rs9 per unit. WaPDa is implementing several projects to harness the vital resource of hydropower in the country. as many as seven projects with cumulative capacity of about 1,500 MW are under construction, out of those five projects of 400 MW will be completed in 2012. In addition, the 4500 MW-Diamer Basha dam and the 84 MW-Kurram Tangi dam have also been initiated. Besides, the 1,410 MW-Tarbela 4th extension and the 7,100 MW-Bunji Hydropower project will soon be available for construction, as detailed engineering designs of the two projects are almost complete. Detailed engineering design of the 4,320 MWDasu Hydropower project is also in progress, while the consultancy contract for yet another important project i.e. the 740 MWMunda dam will be awarded next month.

Meezan Bank ink rs4.8b islamic financing deal KARACHI StAff REpoRt

KARACHI

ISMAIL DILAWAR

aKIsTaNIs working abroad remitted $6.325 billion during first half of current financial year, ranging from July to December 2011-2012. This shows an “impressive” growth of 19.54 per cent or $1.033 billion over the corresponding period of FY11 when the overseas Pakistanis had sent back home $5.291 billion. With country’s current account list fast deteriorating, remittances happen to be the sole indicator that lies in the green zone.

UPWArD TrEND state Bank of Pakistan reported that remittances received from all countries of the world remained upward during the review period. a country and regionwise breakup shows that inflow of remittances from saudi arabia, United arab emirates, United states, United Kingdom, Gulf Cooperation Council countries (including Bahrain, Kuwait, Qatar and Oman) and european Union countries amounted to $1.661 billion, $1.412 billion, $1.150 billion, $726.35 million, $721.19 million and $189.14 million, respectively.

from the abovementioned destinations accounting, respectively, for $1.143 billion, $1.255 billion, $997.68 million, $577.17 million, $626.29 million and $172.10 million. The remittances received from Norway, switzerland, australia, Canada, Japan and other countries during the period under review were recorded by the central bank at $463.61 million compared to $518.69 million of the last corresponding period.

MoNTHLy AvErAGE On monthly average basis Pakistani compatriots working abroad remitted $1.054 billion compared to $881.91 million they sent back during the same period last year. This registers an upsurge of 19.54 per cent. Last month, an amount of $1.085 billion was remitted by the overseas Pakistanis, up 25.75 per cent when compared with $863.13 million received in the same month of December 2010. In December 2011, the inflow of remittances from saudi arabia, Uae, Usa, UK, GCC countries and eU countries amounted to $297.53 million, $245.67 million, $175.12 million, $132.05 million, $121.15 million and $28.88 million, respectively.

LUcrATivE NUMBErS LAST yEAr’S NUMBErS Last year, the same period (July-December FY11) had seen remittances

While the country received remittances amounting to $208.06 million, $210.33 million, $156.36 million, $81.08 million, $95.99 million and

$24.53 million, respectively, during the same month in 2010. The remittances received from Norway, switzerland, australia, Canada, Japan and other countries during the month of December (2011) were counted at $84.95 million as against $86.76 million received in the same month of last fiscal year.

DETEriorATioN ForEcASTED Despite this upward trend in remittances, the analysts foresee further deterioration in the country’s current account by the end of this fiscal year. as the first five months, July-November FY12, already saw a deficit of 2.1 billion against a negligible $ 589 million of last year. Trade balance, standing negative at $6.4 billion against 2011’s $4.6 billion, is another attributing factor cited by economic observers while reasoning widening of the current account deficit.

eeZaN Bank Ltd has arranged a syndicated Islamic finance facility of rs4.8 billion for DH Fertilisers Limited. DH Fertilisers is one of the country’s leading fertiliser manufacturers and a completely owned subsidiary of Dawood Hercules Corporation (formerly, Dawood Hercules Chemicals Limited), one of the largest groups and trusted business names in Pakistan. rs4.8 billion financing facility was mandated to Meezan Bank as a financial advisor and lead arranger. United Bank and allied Bank jointly led the consortium while al Baraka Bank, Bank Islami and Burj Bank were co-lead arrangers of the facility. a ceremony was held at Dawood Centre to ink the facility agreements between DH Fertilisers and the banks. Hussain Dawood, Chairman Dawood Hercules Corporation, shahid Hamid Pracha,

NLc urged to expedite work

rEFLEcTioN This situation, the analysts believe, is reflecting adversely on the rupee value in the currency market where the demand for the greenback is higher in the interbank thus making the Pakistani currency depreciating to a new low of rs91.20 against dollar. The currency dealers, however, attribute the current slump to an increased forward-booking of the dollar by the traders on a higher rate of rs94 for six months. The analysts, however, forecast more devaluation in rupee value owing to a widening trade and current account balance.

CeO Dawood Hercules Corporation and Irfan siddiqui, President and CeO Meezan Bank, along with leading professionals from participating financial institutions, including shafqaat ahmed (CeO, al Baraka Bank), ahmed Khizer Khan (President and CeO, Burj Bank Ltd) were present on the ceremony. On the occasion, Hussain Dawood said Dawood Hercules Group’s underlying philosophy was to work on a partnership basis and form longterm relationships. He also emphasised the group’s commitment towards Islamic banking and praised Meezan Bank’s support for arranging the facility. adding his words at the occasion, amir ali, Head of Investment Banking Meezan Bank said DH Fertilisers Limited was the first company in Pakistan to completely convert its long term bank borrowings to Islamic financing in 2007. The company at that time had issued the largest ever private sector sukuk in Pakistan, the issue size of which amounted to rs6.5 billion.

LAHoRE

StAff REpoRt

CCI former senior vice president and convener PakIndia trade promotion standing committee aftab ahmad Vohra has urged NLC authorities to expedite work on infrastructure development at Wagah Border to cope with fast increasing influx of imports from India. In a statement issued here Tuesday, aftab ahmad Vohra said eCC’s decision to include 18 more items in positive list of imports from India is a welcome step

but the existing infrastructure at Wagah Border is not up-to-the mark to cater to huge quantity of imports. LCCI standing committee convener said NLC authorties should initiate consultations with private sector representatives for establishment of much needed infrastructure at Wagah Border. aftab ahmad Vohra said immediate attention was not given towards development of infrastructure at Wagah that would be one of the busiest ports in the country as soon as government grants MFN status to India, Pakistan would be loser in a big way.

Pakistan exports decline by 11.5pc in December 2011 Exports grow by 3.9 per cent in the first half of the fiscal year 2011-12 KARACHI

StAff REpoRt

ONTINUING to cling onto its downward spiral, Pakistan’s exports during December 2011 have declined by 11.5 per cent. They were valued at $1.854 billion as compared to the level of $2.094 billion during December 2010.

according to fresh data provided by TDaP, however, Pakistan’s exports during July-December 2011-12 were $11.241 billion, while in the corresponding period of the last year 2010-11 exports were $10.815 billion, showing a 3.94 per cent growth. Imports of the country during last months were valued at $4.261 billion registering a growth of 13.6 per cent

over the level of imports valued at $3.751 billion in December 2010. Imports during July-December 201112 were $22.713 billion as compared to $19.102 billion during the corresponding period of the year 2010-11, registered an 18.9 per cent growth. It is worth mentioning here that Pakistan’s exports during November

2011 were valued at $1.552 billion; a figure that was 13 per cent lower than the one of $1.776 billion during November 2010. Imports during November 2011 were valued at $3.729 billion registering a growth of 19 per cent over the level of imports valued at $3.131 billion in November 2010. according to cumulative figures Pakistan’s exports during July-

November 2011-12 were $9.434 billion, while in the corresponding period of the last year 2010-11 exports were $8.959 billion, which shows a five per cent growth. Imports during July-November 2011-12 were $18.424 billion as compared to $15.404 billion during the same period of the year 2010-11, registering a 20 per cent growth.