PRO 12-04-2012_Layout 1 4/12/2012 12:24 AM Page 1
Agriculture can farm out economy Page 02
profit.com.pk
Thursday, 12 April, 2012
DUH!
ADB’s revelation of the decade Unveils persistent energy crisis as major hurdle in Pakistan’s economic growth g Load-shedding, high inflation, security issues also among bank’s ‘earth-shattering’ revelations g Unearths power crisis plan to tame aforementioned menaces g
ISLAMABAD
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AMER SIAL
he Asian Development Bank (ADB) has said that Pakistan’s economy faces a major hurdle in the shape of its persistent domestic energy crisis, as the loadshedding intensifies losses arising from power and gas shortages held down GDP growth by 3 to 4 percentage points in FY2011 and FY2012. The bank’s flagship annual economic publication, Asian Development Outlook 2012 released on Wednesday says identifies rising inflation, decline in investment, low tax revenue and losses at public-sector enterprises as other factors hindering economic growth. Beyond the immediate fiscal and energy improvement steps, the country needs clear business plans to boost the economy, in particular manufacturing and infrastructure development, to sustain growth and generate jobs. The economy continues to be affected by structural problems, including a domestic energy crisis, a precipitous decline in investment, persistently high inflation, and security issues. Budget deficits remain high, driven by substantial subsidies and losses at state-owned enterprises, and tax revenue below target, says the report. The ADB sees power as the main constraint for economic growth, stressing for better load-management to minimize commercial losses. The country’s Planning Commission estimates that losses arising from power and gas shortages held down GDP growth by 3 to 4 percentage points in FY2011 and FY2012. Improved management of power resources could ameliorate predictability of loadshedding to allow the private sector to better schedule work and minimize costs. For every unit of power sold, there is a loss to the sector reflected in the form of subsidies. An outstanding accumulation of Rs 220 billion was carried into FY2012, and an additional financ-
ing of 1 to1.5 percent of GDP is likely to be required in FY2012. The report advises reforms in not only the energy sector but also state-owned enterprises, naming Pakistan Railways, Pakistan International Airlines (PIA), and Pakistan Steel Mills as entities suffering the steepest of losses. The challenge of improving efficiency and putting these enterprises on a viable commercial footing is formidable. Reforms are needed, including a separation of these enterprises from operational interference by government ministries,” advises the bank. The slow growth in recent years was exacerbated by widespread floods in FY2011. Unless progress can be made in resolving these fundamental problems, the growth outlook will stay modest. The report says Pakistan’s economic outlook is expected to stay modest as its growth during fiscal year 2012 would hover around 3.6 percent. It says Federal Board of Revenue (FBR) collections are much improved, running a full 33 percent ahead of last year’s performance for the first 6 months. This reflects improved economic activity in the first half of the year, as well as extension of the flood-related tax surcharges and improvements to tax administration. Yet meeting the overall revenue target for FY2012 in part depends on the sale of third-generation telecoms licenses in the latter part FY2012-a sale already rescheduled over the past 2 years. The external accounts returns to deficit, with scant cushion from the financial and capital accounts. Lower prices for key export commodities, particularly cotton, combined with higher import prices, pushed the current account from near balance for the first 7 months of FY2011 to a deficit of to a deficit of $26 billion (1.8 percent of GDP) by end-January 2012. Workers’ remittances expanded by 23.4 percent during July 2011- February 2012, slightly slower than the pace for the same period a year earlier. however, the economy will remain exposed to balance of payment
NITROGENOUS NARRATIONS
Urea scam # 2186 Ministry of industries vies to ensure $282 m go kaput n NDFC feels importing fertiliser is idiocy n Urea is also being touted as the latest weapon in govt’s politicising arsenal
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LAHORE IMRAN ADNAN
he Ministry of Industries has once again made a recipe to drain around $282 million in urea imports, which is hovering around $450 per ton in international markets. The ministry has proposed the government to import 600,000 tons of urea, whereas the National Fertiliser Development Centre (NDFC) believes that currently, there is no need to import fertiliser in the country. The ‘NDFC Urea Outlook for Kharif 2012’ indicates that the kharif season is expected to begin with 0.851 million tons of opening inventory. Total available urea would be about 3.551 million tons, which will
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pressure in the current international environment and subdued growth in other Asian countries, says the report. MULTIYEAR POWER CRISIS PLAN : Noting with concern that the persistent power crisis in Pakistan is a major constraint for economic growth, the Asian Development Bank (ADB) has suggested implementing a multiyear plan with solid support from stakeholders and consumers for a sustainable and reliable power sector in the country. The banks Asian Development Outlook report says power is the main constraint for economic growth, as load-shedding intensifies and becomes less predictable. The power shortage is the main factor constraining economic growth. The supply-demand gap at peak hours reached over 5,000 megawatts (MW) in FY2011. This reduced economic output, hitting manufacturing the hardest. The current system, with tariff and collections below cost recovery, is a major deterrent to investment for capacity expansion in the sector. Cost recovery has not yet been achieved despite substantial increases in tariffs over the past 2 years, and measures to bring down costs have not been effective. For every unit of power sold, there is a loss to the sector reflected in the form of subsidies or accumulation of losses in the state owned power companies. An outstanding accumulation of Rs 220 billion was carried into FY2012, and an additional financing of 1 to1.5 percent of GDP is likely to be required in FY2012. The cause of the power sector crisis can be divided into three pillars: cost-efficient generation capacity not keeping up with demand, financial issues, and management issues. The supply–demand gap has widened because of a lack of investment in energy. The government has in fact added 1,604 MW to the system by commissioning six new independent power producers of 1,264 MW and a nuclear power plant of 340 MW. however, other domestic resources hydro, gas, and coal have not grown
include 2.70 million tons of domestic production – subject to normal availability of gas to urea manufacturing plants. NDFC estimates that total urea off-take would be around 3.20 million tons leaving behind 351,000 tons of inventory for the next Rabi crop 2012-13. Industry experts estimate that the C&F price of imported urea is around $470 per ton that means it would land in the country at Rs2,397 per 50 kg bag, inclusive of 12 per cent landed cost. They point out that if the government sell the imported urea at Rs1,600 per bag, it will have to bear an additional subsidy of approximately Rs12 billion. They underscores that it will merely a wastage of foreign exchange and taxpayers money as it will never benefit farmers, only middlemen and profiteers will fill their pockets in connivance with state machinery. They pointed out that as much as 0.8 million tons of urea was carried forward from Rabi season to Kharif season that started from April 1. They further disclosed that four fertiliser plants on Mari Network are working at around 88 per cent of their capacity, while the SNGPL-based fertiliser plants are also operational since March 6, which means that country can produce the required amount of urea for domestic consumption without spending precious foreign exchange and also without giving away approximately Rs12 billion unnecessary subsidy. Fertiliser industry sources allege that the government is trying to import urea to take political advantage as it did in the Rabi season by distributing imported urea through hand-picked politically influential middlemen, as well as to make good
enough to cover demand, thereby increasing reliance on imported fuel oil. The energy mix has changed from predominantly hydro to thermal, which consists of domestic gas and imported fuel oil. Industrial, retail, and fertilizer users are competing for the depleting gas supply, the preferred fuel for existing thermal plants. Plans to increase domestic gas production, import liquefied natural gas, pipe gas from neighboring countries, or bring in electricity from Central Asia have yet to materialize. Financial issues are rooted in the fact that the cost recovery tariff determined by the National electric Power Regulatory Authority is not applied to customers. Thus the government bears the differential as a subsidy. Losses and costs excluded from the tariff formula also accumulate at the public sector company level. The lack of financing leads to arrears for the power generation and fuel companies. Timely payment to these companies, essential for the sector’s reliability, has become increasingly difficult, partly because of increased dependence on imported fuel, which is subject to wide price fluctuations. The cost of oil-based power generation in the country escalated by almost 40 percent in the 2 fiscal years ending FY2011. Despite steep increases in tariff and fuel price adjustments, customer tariffs remain below cost recovery, requiring large government subsidies to keep the system operating. The focus on massively increasing spending on power subsidies, reforms, and efficiency measures has been unable to remedy the accumulation of arrears in the system. To improve management, the government has appointed independent boards for the public power companies to select chief executive officers for these companies. efforts are also ongoing to decrease commercial and technical losses around 20 percent. however, these efforts have been overshadowed by the increase in costs and unwillingness of some customers to pay the higher tariffs.
amount of money for upcoming elections. They said that the whole strategy is being prepared on the pretext of benefiting farmers, but in fact small farmers would not even a single bag. Industry leaders lament that despite the fact the Pakistan is the seventh largest urea producing country with manufacturing capacity of 6.9 million tons, the country had to spend $783 million on urea imports in 2011. In addition, the country had to pay Rs54 billion on account of fertiliser subsidy. They term year 2011 as the worst year in the history of domestic urea industry as all manufacturing units could hardly produce 4.9 million tons of urea against
COmmENT
Circular debt and bank financing
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NLY those with their heads buried in the sand would’ve been seriously surprised by banks refusing lending for power projects till the circular debt is resolved. And there shouldn’t be room for ostriches in policy-making circles. Yet surprise is in plenty in Islamabad, and dejection that the no-credit posture extends to all things energy, including the coal goldmine sitting dormant at Thar. So, as things stand, not only are there not nearly enough monies to resolve the debt matter, there will be none flowing in either. And since debt banks on money-flow, it’s not going to be resolved for some time to come. Normally, it’d surprise us that banks have finally begun taking risk management seriously, seeing how their generally risk-averse nature has facilitated excessive government borrowing, crowding out private sector investment in the process. But it turns out that power sector exposure is at the centre of their risk fiasco, and there is simply no way any financial organisation anywhere in the world will engage with the same sector till all outstanding financial matters are cleared. So the responsibility falls right back on the government. They can claim inheriting energy problems from the previous administration, a partly true claim, but so much more false than true that bringing it up can at best be face-saving desperation. But they cannot justify kicking the circular debt can down the road all their years in office. And as regards Thar, the president’s recent public lament regarding necessary investment notwithstanding, offers from China and Japan went begging primarily because Islamabad couldn’t get its act together in time. In a way it’s good that banks have named the debt as the principal obstacle to future financing. Now the government will need to move with greater agility and stronger purpose than before. Whether or not it is up to the task will become apparent soon enough.
the installed capacity of 6.9 million tons due to mismanagement in the energy sector and unannounced gas curtailment. The SNGPL-based fertiliser plants were badly hit as they could scarcely achieve 31 per cent of fertiliser production against their installed capacity, they maintained. Despite urea imports and heavy subsidies urea consumption dropped significantly during the Rabi season 2011-12 (October-February. NDFC data shows that total fertiliser nutrient off-take during Rabi 2011-12 was about 1.596 million tons, which decreased by 18.9 per cent compared with same timeframe of previous Rabi season.
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Thursday, 12 April, 2012
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INVESTmENT IDEAS
GEARHEADS
It takes more than LPG hikes to stop us from buying cars g
Deferred sales, hiking remittances up auto sales by 15pc in 9mFY12 KARACHI STAFF REPORT
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SBP bets the farm on agri financing being a viable business activity KARACHI STAFF REPORT
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UhAMMAD Ashraf Khan, executive Director, State Bank of Pakistan (SBP) has emphasized upon the banks to adopt agricultural financing as a viable business activity for the development of the agriculture sector in the country. Presiding over a one-day ‘Farmers’ Financial Literacy & Awareness Program on Agricultural Financing,’ which was jointly organized by State Bank and habib Bank Ltd. today at NRSP Training Center, Bahawalpur, he said the agriculture sector has a key role in country’s economy and stressed the need for making necessary finances available to farmers for multiple cropping activities. he outlined SBP’s efforts for creating awareness amongst the farming community and developing capacity of commercial banks through its various training and awareness programmes. Prof. Dr. Muhammad Mukhtar, Vice Chancellor, Islamia University Bahalwalpur, who was the Chief Guest at the inaugural session, appreciated State Bank’s initiative to promote farmers’ financial literacy and stressed the need to synergise the efforts of all stakeholders to improve access to credit especially to the agriculture sector. he said that academia can
play an important role in improving credit culture and in creating awareness among the farming community. Dr. Saeed Ahmed, head, Agricultural Credit and Microfinance Department, SBP said the programme is aimed at creating awareness among the farming community about agriculture financing products & services offered by banks, money management techniques and lending procedures, documentations, etc. Besides, it would also develop capacity of agriculture field officers of banks in agri. financing and synergize the efforts of all stakeholders including policy makers, executing agencies, service providers & farming community to improve access to agricultural credit, he said, adding that SBP’s promotional initiatives and policy interventions have translated into around 200 percent increase in the flow of credit to the agriculture sector from Rs. 137.4 billion in 2005-06 to Rs. 263 billion in 2010-11. however, he pointed out, despite this encouraging growth, the disbursement to the agriculture sector was around 40% of the total estimated credit requirements. ‘SBP has planned to increase the disbursement to 70-80 percent during the next five years covering 3.3 million borrowers by adopting a multipronged strategy,’ he added. The inaugural session was followed by a technical session for the
agricultural credit staff of banks in which senior officials of SBP and hBL made detailed presentations on dynamics of agriculture finance and related policies. The purpose of this session was to train the agriculture finance officials of banks enabling them to conduct farmers’ financial literacy programs at their end and to share the best practices in agriculture lending with the participants. A farmers’ session was also held to educate the farming community about the products and services offered by financial institutions, their rights and duties as customers of financial institutions, consumer protection as well as money management skills to enable them to use their limited financial resources in a prudent manner. This session was attended by a large gathering of farmers from adjoining areas of Bahawalpur. The officials of SBP and senior management of hBL present on the occasion responded to various queries raised by the local farming community and apprised them about the future plans/initiatives for improving access to agriculture finance. The program was attended, among others, by Mr. Khadim hussain, Chief Manager, SBP BSC Bahawalpur, bankers, officials of Agriculture extension Department and farmers’ representatives, besides other senior officials of SBP and SBP BSC, Bahawalpur.
CALAmITOUS CALCULATIONS
CNG kit ban = taking a $6m bath LAHORE IMRAN ADNAN
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he government is losing a plausible revenue share from CNG kit manufacturing companies that are exporting around 60,000 kits to Afghanistan, Italy, Thailand, China, Brazil, Iran, and Bangladesh. By din of imposing ban on CNG kits, the government is losing $6 million foreign exchange a year what it gets from the exports of CNG kits to the said countries. Last year, one of the major players alone has exported 51,000 CNG kits worth Rs. 135.6 million and contributed around 70 million rupees in terms of taxes and duties on parts import and the kits’ export. It may be noted that roughly 50 per cent of the components of CNG kits are being manufactured locally, therefore, the government’s decision of banning CNG is having adverse impacts, in terms of financial losses and employment, on both the companies and their associated vendor industry, which comprises of leading car manufacturers and Tri-Wheeler manufacturers. Moreover, this decision is making way to erode all heavy investment made by such companies and contribution to the national exchequer. The international community including Italy and Argentina, which is already surprised by many ironic decisions of the Pakistani government, has once again showed its amazement on this decision of the government. Lately, Japanese Ambassador hiro Shi Oe reportedly conveyed his concerns to the Commerce Minister over banning CNG kits
in the country, which is to become a fatal blow to the Japanese investment in Pakistan. Talking about trade opportunities between Japan and Pakistan in the auto sector, the ambassador was astonished that Pakistani government has placed a ban on fitting CNG kits in new cars. It is to be noted that Original equipment Manufacturers (OeMs) sold over 0.6m CNG fitted vehicles in the last ten years. Industry experts believe that the recommendation of the Ministry of Petroleum to shutting down CNG conversions at much more safety abiding car manufacturing companies is another blow to the industry because their standards are very good and could be checked at any stage. “Severe gas shortage in the country could be managed easily as it depends on government policies and their practical measures to combat the issue. The government has to come up with concrete solutions for energy crisis because CNG, being the best ecofriendly fuel, suits most to a developing country like Pakistan,” they added. “‘The energy shortage is there but a lot of opportunities are available for its solution,” the experts said adding that the government’s facilitation could bring in new energy investments in Pakistan to generate further employment. Pakistan is a big market of CNG with a huge network and infrastructure of over 3500 CNG filling station which serve around 3 million vehicles including 630,000 cars with factory-fitted CNG cylinders. The experts said that the government should lift the ban as it would be a great damage to this industry and will also create huge unemployment.
ALeS in the country’s auto industry posted a volumetric growth of 15 percent to climb to 128,576 units duirng 9MFY12 compared to 111,852 units of corresponding period last year. According to PAMA data, the industry car auto sales, including car, LCV and pickup, improved by 15 percent year-on-year (YoY) to 128.6k units. The car sales soared by 15.3 percent to 112.7k units with the Pak Suzuki posting an enormous growth of 32 percent to 81.4k units. Similarly, Indus Motor registered a growth of four percent to 68.9k units. however, honda’s unit sale was down by 34 percentYoY to8.0k units during 9MFY12. “The volumetric growth primarily stems from June to July deferred sales on account of reduced tax
structure announced in Federal Budget FY12, Yellow Cab scheme announced by the Punjab Government, 21 percent increase in worker remittances in 9MFY12 and monetization due to rising government fiscal deficit,” said Murad hemani of Topline Research. In third quarter of FY12, Jan– March, the industry sales rose by seven percent from 43,753 units to 46,632 units in same period last year. This shows a significant increase of 22 percent compared to last quarter, OctDec. In March 2012, car sales stood at 16,678 units up six percent as against 15,710 units sold in March FY11, marking 11 percent rise versus 14,962 units sold last month. With respect to individual companies, the PSMC continued to depict strong growth of 32 percent in 9MFY12 to 81,360 units versus 61,693 units seen in same period last year as it stands out to be the prime
SECTOR ASSASSIN
FBR is a murderer: LCCI Claims FBR kills sectors by denying exporters, manufacturers right of refund g
LAHORE STAFF REPORT
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AhORe Chamber of Commerce and Industry on Wednesday demanded of the Chairman Federal Board of Revenue (FBR) to expedite stuck-up Sales Tax and Income Tax refund claims. In a statement issued here, LCCI President Irfan Qaiser Sheikh said: “The FBR is killing the most productive sectors by denying the exporters and manufacturers their right of refund of Sales Tax and Income Tax.” The LCCI chief said that the delay in release of huge funds
that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units. Irfan Qaiser Sheikh said the authorities concerned should take realistic view of the matter and allow the refunds of sales tax and Income Tax to exporters and Manufacturers at the earliest, who were facing severe hardships. The LCCI President said that the process to get refunds is so lengthy and cumbersome that sometimes it takes months for a manufacturer or an exporter to get his own money refunded. he said that the businessmen
NIT results for 9mFY12 KARACHI
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beneficiary of announced Yellow Cab scheme. In 3QFY12, the company sales stood at 30,642 units from 3QFY11, up 31 percent and 26 percent from 3QFY11 and 2QFY12, respectively. In March, PSMC sales stood at 11,198 units, up 16 percent from same month last year and 12 percent from last month. Indus Motors 9MFY12 sales growth remained subdued as the company could sell 38,858 units compared to 37,259 units in same period last year, registering a mere four percent growth. In 3QFY12 the company sold 14,792 units against 14,851 units in the same period last year, but depicted a significant jump of 26 percent as compared to last quarter. “The recent recovery in sector’s volumetric sales along with the improved margin is expected to bode well for the sector’s profitability going forward,” said analyst hemani.
STAFF REPORT
he National Investment Trust (NIT) has announced the results of all Funds under its management for the nine months ended March 31, 2012. This is stated by the Chairman and MD NIT, Wazir Ali Khoja, in a statement issued here by the NIT on Wednesday. NI(U)T FUNd: During 9MFY12, NI(U)T has registered a net profit (excluding unrealized gains) of Rs. 4,335 million compared to Rs. 3,343 million in 9MFY11, a growth of 29.7% YoY. This net profit of Rs. 4,335 million earned in 9MFY12 translates into an earning per unit of Rs. 3.23 against earning per unit of Rs. 2.85 in 9MFY11. The Chairman also stated that during 9MFY12, the dividend income earned by the Fund grew by 36.7% YoY and stood at Rs. 2,148 million as compared to Rs. 1,571 million in the corresponding period last year. The Fund realized capital gains of Rs. 891 million in 9MFY12 against Rs. 548 million in 9MFY11, a growth of 62.5% YoY. During 9MFY12, the Fund’s NAV increased by 6.65% from Rs 28.14 (ex-Dividend) as on 30.06.11 to Rs 30.01 as on 31.03.12 against the benchmark KSe-100 index which increased by 10.13%. NIT-STATE ENTERPRISE FUNd (NIT-SEF): Referring to the results of NIT-SeF, the Chairman said that during 9MFY12, the Fund earned a net profit of Rs. 859 million (without impairment) translating into an
earning per unit of Rs. 2.89. The fund realized capital gains of Rs. 1,058 million and earned a dividend income of Rs. 1,119 million in 9MFY12 compared to capital gains of Rs. 851 million and a dividend income of Rs. 1,033 million in 9MFY11, a growth of 24.3% and 8.28% YoY respectively. During the period under review, the NAV of the Fund has increased by 8% from Rs. 84.21 (ex-dividend) on 30.06.11 to Rs. 90.95 on 31.03.12 against an increase of 10.13% in the benchmark KSe-100 Index, thus underperforming the benchmark by 2.13%. however, since-inception the fund has outperformed its benchmark by 27.2%. The Chairman also stated that NITL paid Rs. 5.375 billion to one of the lenders on March 26, 2011, thereby reducing the Government Guarantee of principal facility from Rs. 20 billion to Rs. 12.2 billion. NIT – EqUITY MARkET OPPORTUNITY FUNd: While presenting the financials of NIT – equity Market Opportunity Fund, the Chairman said that NIT eMOF has outperformed its benchmark by a sizeable margin of 7.79% during the 9MFY12 whereas the NAV increased by 17.92% against the benchmark KSe100 increase of 10.13%. During the period under review, the Fund’s net profit grew by 27.1% YoY to Rs. 558 million (without impairment) against Rs. 439 million in the corresponding period last year, translating into an earning per unit of Rs. 11.56 and Rs. 9.34 respectively. The Fund also
were bearing huge financial cost on their own hard earned stuck-up money, therefore, the FBR Chairman should look into the matter and ensure early release of Sales Tax and Income Tax refunds. The LCCI President said that the businessmen have now started feeling the pinch as the businesses were already in deep troubles and experiencing toughest times because of multiple internal and external challenges including an acute shortage of electricity and gas. And now the delay in release of their own money was adding to their miseries. Irfan Qaiser Sheikh said that he had conveyed the business community concerns to the Federal Finance Minister Dr Abdul hafeez Sheikh during a meeting of Pakistan Business Council in Islamabad last month and the Minister had immediately directed the formation of special committees on the subject.
realized capital gains of Rs. 198 million and earned a dividend income of Rs. 329 million in 9MFY12 compared to capital gains of Rs. 147 million and a dividend income of Rs. 253 million in 9MFY11, a growth of 34.5% and 30.2% YoY respectively. The Chairman further stated that 10% redemptions of unit holding were offered and Rs. 551 million were paid to unit holders during the period. Thus, so far unit holders have been offered 50% of their respective unit holding since inception of the Fund. NIT GOVERNMENT BONd FUNd: During first nine months of FY12, NIT GBF earned a net income of Rs. 197 million which translates into an earnings per unit Rs. 0.77 against earnings per unit of Rs. 0.72 in the same period last year. The NAV of NIT GBF increased from Rs.10.0968 (ex-Dividend as on June 30, 2011) to Rs.10.8204 as on March 31, 2012, thus yielding an annualized return of 9.51% for its unit holders, where as the benchmark return stood at 10.74%, thus underperforming its benchmark by 123 bps. NIT INCOME FUNd: During the period of nine months FY12, the net income of NIT IF grew substantially by 18.9% YoY to Rs. 185 million, translating into an earnings per unit of Rs. 0.98 from a net income of Rs. 155 million in the period of nine months FY11, translating into an earnings per unit of 0.80. The NAV of NIT IF increased from Rs.10.1448 (ex-Dividend as on June 30, 2011) to Rs.11.1151 as on March 31, 2012, yielding an annualized return of 12.69%, against the benchmark return of 12.50%, thus outperforming its benchmark by 19 bps.
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Thursday, 12 April, 2012
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Keep your pens down KSE bears the brunt of
Major Gainers Company
Open
High
Low
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Change
RTO employees launch pen down strike over promotion proposals
Indus Dyeing Sanofi-AventisSPOT Clariant Pak Packages Limited Island Textile
385.58 184.75 147.18 91.10 225.19
404.85 193.75 153.00 95.65 234.99
399.97 189.00 147.50 92.85 214.00
404.85 192.87 152.28 95.65 229.65
19.27 5,525 8.12 2,886 5.10 13,716 4.55 287,285 4.46 632
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Indonesian earthquake
LAHORE STAFF REPORT
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MPLOYeeS of the Regional Tax Office (RTO) Lahore continued pen down strike on Wednesday against the proposal of promotion of senior auditors as Assistant Commissioner (Inland Revenue). Federal Revenue Alliance (FRA) employees union President Mian Abdul Qayyum led a demonstration in front of the RTO to condemn the decision which according to them would stop the promotion of income tax (Inland Revenue) employees. Mian Abdul Qayyum while talking to Business Recorder later on claimed that total strike was observed in all the regions across the country except Karachi. he claimed no work was done at Lahore, Sialkot, Rawalpindi, Islamabad and every where in the country. he said that they were also in constant liaison with FBR employees from Karachi to convince them to join FRA in its struggle. he said that customs wing of the FBR might also be joining them soon in this effort for acceptance of their demands. Mian Abdul Qayyum said that if their demands are not met till Monday, then the Union has decided to go for locking the offices of the tax across the country and not let happen any work by anybody. ‘We may even go for hunger strike to press the FBR high ups for acceptance of their demands,’ he added. earlier participants of the demonstration held today demanded immediate withdrawal of the proposal claiming that it was also not agreed by Member Inland Revenue and Member Legal FBR which was the basic requirement before sending the case to Ministry of Finance. Their other demands included that the Carrier path in the services must be properly followed and in this respect the senior auditors be asked to file surety bonds/affidavits so that they would not file any case in the courts later on against this career path defined already. Two orders i.e. putting Sr. Auditors as Unit In charges and the other one designating them as Assistant Commissioner Inland Revenue (OPS) be withdrawn immediately. An Inland Revenue Officer must be posted as Member (Admn). Inland Revenue Officers and Inspectors Inland Revenue be also upgraded to BS -17 and BS – 16 respectively.
Turnover
Profit-taking bear hug drains KSE off 86 points KARACHI
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STAFF REPORT
AKISTAN Stocks closed lower on concerns for fall in global stocks and commodities on weak US jobs data undermining global economic expectations. Viewed by Ahsan Mehanti, Director at Arif habib Investments Limited. The Karachi Stock exchange (KSe) 100-share index declined 86.16 points or 0.62 percent to close at 13,816.96 points as compared to 13,903.12 points of the previous session. The KSe 30-share index shed 98.09 points to close at 12,063.72 points as compared with 12,161.81 points. Analysts said that the massive earthquake off Indonesia’s western coast triggered a tsunami watch for countries across the Indian Ocean including Pakistan led investor concerns. The market turnover recovered remarkably 3 million and traded 511.29 million shares after opening at 290.42 million shares. The overall market capitalization declined 0.09 percent and traded Rs 3.550 trillion as against Rs 3.574 trillion. Losers outnumbered gainers 150 to 148, while 78 stocks were unchanged.
Mehanti added “Institutional support in cement stocks and selected oil and banking stocks supported the index ahead of major earning announcements and SBP key policy rate announcement due on April 13.” The KMI 30-share was down by 114.91 points to close at 23,713.00 points from its opening at 23,827.91 points. The KSe all-share index closed with a loss of 49.16 points to 9,726.57 points as against 9,775.73 points. According to an analyst that the uncertainty over announcements on revised CGT regime, limited expectations for reduction in SBP key policy rate affected the sentiments. Fauji Cement was the volume leader in the share market with 74.362 million shares as it closed at Rs 7.15 after opening at Rs 6.20, gaining 95 paisas. Lafarge Pakistan traded 62.602 million shares as it closed at Rs 5.58 from its opening at Rs 5.09, increasing Rs 51 paisas. Azgard Nine traded 40.968 million shares and closed at Rs 9.86 as against its opening at Rs 9.34, rising 52 paisas. Jahangir Siddiqui Company Limited traded 30.207 million shares as it closed at Rs 20.81 as compared to its opening at Rs 21.35, increasing 46 paisas.
Major Losers Nestle PakXD UniLever Pak LtdXD Colgate Palmolive Attock PetroleumXD Bata (Pak)SPOT
4486.67 5896.30 795.00 456.02 654.16
4575.00 6000.00 756.00 457.50 660.00
4310.00 5806.00 756.00 451.00 650.00
4350.43 5822.00 756.00 451.64 650.00
7.20 5.85 10.33 22.20 8.18
6.21 5.15 9.45 20.29 7.30
7.15 5.58 9.86 20.81 7.65
-136.24 199 -74.30 18 -39.00 50 -4.38 42,872 -4.16 30
Volume Leaders Fauji Cement Lafarge Pakistan Azgard Nine Jah.Sidd. Co. Dewan Cement
6.20 5.09 9.34 21.35 7.18
0.95 74,362,783 0.49 62,602,942 0.52 40,968,706 -0.54 30,207,185 0.47 29,947,029
Interbank Rates US Dollar UK Pound Japanese Yen euro
90.6934 144.1118 1.1230 118.8537
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
Sell
90.70 118.39 143.58 1.1140 89.85 11.55 24.66 24.14 92.59
0.00 119.40 0.00 1.1232 91.10 11.71 24.84 0.00 94.82
CORPORATE CORNER PTCL storms Sindh’s cities with creative customer outreach
spoke on the occasion. In all, the FCC Financial Aid Office has provided 1,800 students with financial aid amounting to Rs 120 million for the current academic year. PRESS RELEASE
National Fertilizers Orientation Programme
ISLAMABAd: Pakistan Telecommunication Company Limited (PTCL) recently conducted a creative town marketing campaign in Sindh province to reach its valuable customers. The “PTCL Town Storming” campaign spread awareness about the Company’s exciting products and services, and also offered on-spot sales to potential customers by setting up attractive town kiosks and running mobile floats manned by PTCL sales teams. Target areas included hyderabad city, Jamshoro, Sanghar, Tando Adam, Shahdadpur, Umerkot, Mirpurkhas, Jhuddo, Thatta, Sajawal, Badin, Matli, Dadu, Mehar and Sehwan. These areas were also covered with banners and outdoor branding. In addition, a ‘Door Information Service’ also reached the general public by blending door-to-door and cold calling outreach. PRESS RELEASE
LAHORE: A two-week orientation program was conducted for the employees of National Fertilizers Marketing Limited (NFML) at Lahore head Office. Professional consultants and seasoned officers of NFML shared their experiences with the participants. A press statement issued on Wednesday said that the program was aimed to introduce the employees about the system and pattern of organization and to develop their skills. The participants from various departments attended the orientation sessions. The orientations sessions were conducted by Top brass of the organization under direct supervision of Uzair Abu Baker DGM (Marketing). “Purpose of arranging this orientation is to prepare youngsters for the contemporary challenges” said Uzair Abu Baker DGM (Marketing). STAFF REPORT
LG to introduce to Europe Total HVAC and energy solutions
millat Tractors Ltd presents Rs 10 million for FCC scholarship fund LAHORE: Mr Laeeq Uddin Ansari, Senior executive Director (Technical) of Millat Tractors Ltd (MTL) presented a cheque of Rs 10 million to Dr Peter Armacost, the Rector of Forman Christian College, to provide financial assistance to deserving students at the university. The amount will cover need-based scholarships for 75 students over a period of three years (2011-2014). Also present at the occasion were Mr Javed Munir (Director Finance MTL), Dr James Tebbe (executive Vice Rector FCC), Dr hamid Saeed (Registrar FCC), Dr Manzur Gill (Chief Advancement Officer FCC ) and Mr Anthony Williams (Director Financial Aid FCC). The ceremony, which was attended by a large number of student beneficiaries, was held in the elahi Building at the FCC campus. Three Millat scholars, Moazzam Khan Lodhi, Mehwish Iqbal and Junaid ul hassan, thanked Millat Tractors for supporting their education at FCC. Faiza Maqsood, a financial aid recipient, also
LAHORE: LG electronics (LG) will present a full line-up of commercial air conditioning and energy solutions at the Mostra Convegno expocomfort (MCe) 2012 — europe’s premier air conditioning exhibition — in Milan, Italy. LG will highlight its latest system air conditioning solutions, including the highly energy efficient Multi V III heat Pump VRF system and the new hydro Kit, customized specifically for european consumers. The Multi V III series boasts a 4.58 coefficient of performance and larger capacity per unit with an extended piping length of 1,000m. The Multi V III heat Recovery System, which is capable of simultaneously heating and cooling different zones with a maximum COP of 7.1, has been honoured as a Class A product and will be separately displayed at the event, “Verso La Classe A 2012”. Meanwhile, the
hydro Kit, which will be unveiled for the first time at MCe 2012, offers an eco-friendly solution for floor and water heating, as it allows 77 percent savings in energy consumption and 51 percent less emissions compared to conventional boilers. LG will also showcase a range of air conditioning solutions, including the Multi V III heat Recovery System, the Therma V, the h Inverter and the Prestige Inverter. highly versatile building management systems will also be on display. STAFF REPORT
Pakistan State Oil supports Pakistan Army in Siachen relief operations kARACHI: Pakistan State Oil (PSO) is fuelling the relief efforts being undertaken in the Siachen glacier region through the supply of high Speed Diesel (hSD) to the Pakistan Army. PSO has dispatched an immediate consignment of 40,000 liters of hSD for use in the rescue operations taking place in the Gyari region of Siachen. These rescue efforts are taking place in the wake of an avalanche that engulfed an army camp on Saturday morning, and left 135 brave soldiers buried under mounds of snow. Keeping in view the urgency of the situation, PSO not only provided the fuel supplies on a priority basis; it has also geared up its logistical operations in the region to ensure continouos and ongoing support for the armed forces. PRESS RELEASE
Euromoney Air Finance Journal’s Asia Deal of the Year kARACHI: Pakistan International Airlines US$100 million Islamic, IATA receivables-backed syndicated transaction has won the euromoney Air Finance Journal’s Asia Deal of the Year. The facility was arranged by Abu Dhabi Islamic Bank, Al hilal Bank, Citibank N.A., and United Bank Limited as Mandated Lead Arrangers and Joint Bookrunners. Warba Bank in Kuwait has joined the transaction as Lead Arranger. Citibank N.A. also performed the role of the Account Bank and Security Trustee. Munawar Noorani, Citi’s Managing Director & Aviation head for europe, Middle east& Africa said, ‘We extend our heartiest congratulations to PIA for winning this prestigious award, especially given the tough competition there was from other transactions in Asia. PRESS RELEASE
Etihad Airways announces passenger flights to Nairobi LAHORE:- etihad Airways, the national airline of the UAe, recently announced its inaugural passenger flight to Kenya, at Jomo Kenyatta International Airport (NBO) in Nairobi. The new daily, two-class A320 serv-
ice is the airline’s first passenger service to east Africa and a critically important step in expanding its presence in Africa. The airline aims to reach into West Africa with the introduction of flights to Nigeria in July, 2012. etihad Airways commenced operations to the Seychelles in November, 2011, and Libya in January of this year, building on existing services to egypt, South Africa, Morocco and Sudan. PRESS RELEASE
Pakistan to co-sponsor AIm 2012 in Dubai to lure investment kARACHI: Pakistan will be co-sponsoring the 2nd Annual Investment Meeting 2012 (AIM 2012) in Dubai, United Arab emirates. AIM 2012 will be held from May 1-3, 2012, designed to attract foreign direct investment (FDI), under the auspices of the UAe Ministry of Foreign Trade and with the support of the Consulate General of UAe, said the Consul General of UAe, Suhail bin Mater Al Ketbi. AIM is one of the world’s first emerging Markets FDI-focused events with a theme “Financing Possibilities in Frontier and emerging Markets”. Pakistan, being one of the emerging economies, sought to become one of its main sponsors to attract FDI and showcase the trade and investment opportunities available in Pakistan, for foreign investors. AIM is the brainchild of the UAe Minister of Foreign Trade, hh Sheikha Lubna bint Khalid Al Qasimi, who visited Karachi, Pakistan last year to open Magnificent 7 - UAe eXPO 2011, the largest single country exhibition. The event will have a gathering of major investors, leading individuals from global businesses and governments to discuss investment opportunities in emerging markets. It is an FDI-focused event, a unique platform to discuss prospects of investment in various businesses, from public-private partnerships to forming government to government interactions and realize more avenues for investment. STAFF REPORT
AbacusConsulting inaugurates new call center for Telenor customers LAHORE: AbacusConsulting inaugurated new Global Delivery Center at Shaheen Complex, Lahore. Mr. Lars Christian Iuel, CeO Telenor Pakistan and Mr. Asad Ali Khan, President AbacusConsulting inaugurated the new call center facility which spans approximately 24,000 sq. ft and is loaded with the state of the art technological equipment. Senior management of both AbacusConsulting and Telenor Pakistan were present at the ceremony. The new premises will serve as the office for AbacusConsulting’s Business Process Outsourcing, Learning Services, Land Records MIS, and healthcare Divisions. The center can accommodate over 1,000 staff members and supports over 300 seats for Telenor Pakistan’s call center operations which AbacusConsulting has been successfully operating for over four years. STAFF REPORT