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Market euphoria over Spanish bank bailout fizzles Page 02 profit.com.pk
Tuesday, 12 June, 2012
SKEWED PRIORITIES
First things last? SBP is all worked up as it urges banks to give top priority to SME banking, probably because SME banking is ‘very close’ to SBP Governor’s heart. Oh and the central bank’s not best pleased owing to the banks’ negligence over timely deduction of applicable taxes KARACHI
S
STAFF REPORT
TATE Bank of Pakistan, Governor, Yaseen Anwar has stressed upon the banks to give top most priority to SME banking with a view to ensuring uninterrupted flow of financial access to SME sector in the country. Speaking at the signing ceremony of the Project Document between the State Bank of Pakistan and Bank Alfalah under the DFID-funded Financial Inclusion Programme (FIP) at SBP, Karachi, he said the role of banks, especially of midtier banks, was crucial to ensure unhindered flow of financial resources to the SME sector which was the engine of economic growth in Pakistan, ‘Though many banks in the market are trying to improve their market position in order to serve the sector more effectively, the current level of SME finance as well as an overall level of SMEs’ access to banking services remain unsatisfactory, and hence call for more serious efforts on part of the banks,’ SBP Governor added. Anwar said that SME financing is very close to his heart due to its key significant contribution in the economic development of Pakistan. ‘The SME sector plays an important role in employment generation, poverty alleviation, and equitable distribution of resources and is the engine of growth,’ he added. He pointed out there were 3.2 million economic establishments, of which 99% were SMEs, and SME sector represented over 90% of all enterprises and employed 75% of the non-agricultural workforce and contributed 30% towards
the national GDP. ‘However, despite its strong contribution in employment generation, exports, and national income, the SME sector is severely constrained in access to finance which is crucial for its growth,’ he added. SBP Governor advised the banks to study the international examples of successful SME banking models which include Retail-based Model for Mass SME, Relationship-based banking, Advisory-based lending services, Segment-based Model, and Supply-chain linked Model. Regrettably, he said that despite its immense significance and potential, the SME sector in Pakistan remained largely financially excluded, the current level of financing facilities to this sector stood at Rs. 253 billion, constituting only 7% of the banks’ total advances. Anwar said that with the SBP- Bank Alfalah and International Finance Corporation (IFC) nexus, and the generosity of DFID, we could have more joint ventures of this sort in the future that would lead to a sustainable, sound and integrated financial system, characterised with ready access to finance, diversified loan portfolio and extended outreach to SMEs. He said the State Bank, under the DFID-funded Financial Inclusion Programme (FIP) would provide funding support to Bank Alfalah (BAF) in undertaking the IFC SME Advisory Project. ‘The main objective of the project is to create a symbolic podium which can position Bank Alafalah to cater to the financing needs of the SME sector including the S and M segments through a holistic banking and advisory services solution,’ he added. SBP Governor said the SMEs need to
be addressed through innovative credit assessment tools and techniques like credit scoring and capacity enhancement of the financial service providers, and an integrated approach to SME Banking. DFID and SBP were keen to upscale FIP to reach out the unbanked segments in Pakistan. Going forward, FIP funds would also be targeted to improve financial inclusion through SMEs banking, Anwar added. Speaking on the occasion, the British Deputy High Commissioner, Francis Campbell said the signing of this project highlights the significance of the relationship between Pakistan and Britain. He congratulated Yaseen Anwar, the Bank Alfalah President, Atif Bokhari for signing this project. He also appreciated the role of DFID and IFC in promoting financial inclusion in Pakistan. Haroon Sharif, Head of Economic Growth Group of DFID-Pakistan, Akbar Zaman Khan of IFC and President, Bank Alfalah, Atif Bokhari also spoke on the occasion. The signing ceremony was attended, among others, by senior level officers of the State Bank, Bank Alfalah, IFC and DFID. CHIDES BANKS OVER TIMELY TAX DEDUCTIONS: Meanwhile, the central bank on Monday asked the banks and the Development Finance Institutions (DFIs) to remain fully cognizant of their legal responsibilities in respect of timely deduction of applicable taxes on eligible transactions and corresponding credit to accounts of Government Treasury/Federal Board of Revenue (FBR). “The discharge of this responsibility attains further importance at the close of
the Fiscal Year, where all receipts and credits are to be reflected in the same time frame/fiscal year,” said an SBP circular issued Monday to the banks, DFIs and the microfinance banks (MFBs). The regulator advised the banks, DFIs and MFBs to ensure that appropriate procedures were in place for timely credit of tax receipts in the FBR Account and the proceeds of all the taxes including Withholding Tax for the current fiscal year are transferred/ deposited to FBR Account, on or before the close of business i.e. on June 30, 2012 (being Saturday). Further, the Withholding Tax on the profits paid by the Banks, DFIs and MFBs as on June 30, 2012 to the depositors should also be transferred/ deposited to the FBR Account on or before the close of business on June 30. “Accordingly, credible arrangements should also be in place to discharge such liabilities of off-
line/far flung branches as of June 30, 2012,” it said. The State Bank may verify compliance of the above instructions during its regular or targeted inspection of the banks, DFIs and MFBs, the SBP warned.
Power Ministry gets an F for effort They’re sending in the cash alright! g
Finance Ministry asks Power Ministry to make efforts to pay Rs 18.5b to IPPs
ISLAMABAD: Ministry of Water and Power (MWP) has received a strong rebuke from the Ministry of Finance which has advised it to make its own efforts to pay the due Rs 18.5 billion to eight independent power producers (IPPs), that had invoked sovereign guarantees. An official source said that MWP had sought the release of the amount from the Finance Ministry, which replied that it had no surplus funds to clear at the agreed amount to IPPs and advised the ministry to take steps to clear the dues. The total liabilities of IPPs have increased over Rs 238 billion. The government had promised IPPs in May this year that at least Rs 18.5 billion would be paid immediately to clear their due loan installments. However, despite the promise no amount had been released for the IPPs, the source said. The government is unable to pay the IPPs due to the circular debt resulting from the inefficient power distribution companies which are unable to collect the dues from the consumers and in main cases the major defaulters are public sector organisations. Experts have pointed out many times to the government to form a focal point with decision making powers to resolve the issue since multiple layers of red tape was creating complexity in the resolution of the issue. Local banks have an exposure of Rs 120 billion to the local power sector. Taking serious hits, some of the banks could put the local business houses in the power sector on credit information bureau (CIB) which would mean no credit line for their other projects. As a result of strong government assurances backed by sovereign guarantee, a total of 12 IPPs were developed with a gross capacity of around 2,600 MWs with a total investment of around $2.8 billion out of which 75 percent investment, nearly $2.1 billion, came from the banking system of the country. AMER SIAL
g
Remittances rise 19.54pc to $12.07b in eleven months KARACHI STAFF REPORT
The Pakistanis working abroad remitted over $12.069 billion during the first eleven months, July 2011–May 2012, of the current fiscal year (FY2011-12). This shows an impressive growth of 19.54 percent or $1.972 billion when compared with $10.096 billion received during the corresponding period of last fiscal year (July- May 2011). According to central bank, the inflow of remittances to Pakistan from all over the world depicted growth during the said months. The inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $3,353.32 million, $2,629.72 million, $2,127.87 million, $1,394.38 million, $1,366.88 million and $335.55 million respectively compared with the inflow of $2,378.52 million, $2,327.70 million, $1,864.03 million, $1,093.47million, $1,184.83 million and $320.93 million respectively in July-May 2011. While the remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $861.38 million as against $926.86 million received in the same period of FY11.
The monthly average remittances for July‐May 2012 period comes out to $1,097.19 million as compared to $917.86 million during the corresponding period of the last fiscal year, registering an increase of 19.54 percent. Last month, an amount of $1.192 billion was sent home by overseas Pakistanis, up by 13.56 percent, compared with $1.049 billion received in the same month of 2011. “Almost all of this growth in remittances during May, 2012 over the corresponding period of the last fiscal year was through banking channels,” said the State Bank. In May 2012, the inflows from Saudi Arabia, UAE, USA, GCC countries, UK and EU countries amounted to $365.46 million, $243.46 million, $205.52 million, $140.27 million, $130.71 million and $30.96 million respectively compared with the inflow of $292.72 million, $236.37 million, $186.15 million, $121.34 million, $102.55 million and $30.16 million, respectively, in May 2011. The receipts from Norway, Switzerland, Australia, Canada, Japan and other countries during May amounted to $75.73 million as against $80.50 million received in May 2011. “The continued impressive growth in workers’ remittances is the result of
the efforts made by Pakistan Remittance Initiative (PRI) in collaboration with other stakeholders to facilitate both Overseas Pakistanis and their families back home,” said the central bank. Since its inception, it said, PRI had taken a number of steps to enhance the flow of remittances through formal channels which include: (a) preparation of national strategies on remittances (b) taking all necessary steps to implement the overall strategy (c) playing the advisory role for financial sector in terms of preparing a business case, relationship building with overseas correspondents, creating separate efficient remittance payment highways and (d) becoming a national focal point for overseas Pakistanis through round the clock call centre (021-111-222-774) with toll free lines, separate web site etc. It may be recalled that in order to provide an ownership structure in Pakistan for remittance facilitation, the Government of Pakistan through State Bank of Pakistan, Ministry of Overseas Pakistanis and the Ministry of Finance had launched a joint initiative called Pakistan Remittance Initiative (PRI) in April 2009. This initiative has been taken to achieve the objective of facilitating and supporting faster, cheaper, convenient and efficient flow of remittances.
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Tuesday, 12 June, 2012
news
Market euphoria over Spanish bank bailout fizzles Financial market euphoria over a European bailout for Spain’s debt-stricken banks faded quickly on Monday as investors sounded the alarm over its impact on public debt and bondholders, and eyed the next risks in the euro zone’s debt crisis MADRID/BERLIN
E
REUTERS
U and German officials said Spain faces supervision by international lenders after the deal to lend Madrid up to 100 billion euros ($125 billion), contradicting Prime Minister Mariano Rajoy who insisted the cash came without such strings. European stocks leapt to a fourweek high, with investors scooping up battered financial shares. But Spanish and Italian bond yields rose sharply as doubts set in about the impact and terms of the deal, designed to avert a run on Spanish banks. Cyprus, which is deeply exposed to Greece, strongly hinted on Monday that it may apply for an international bailout before the end of this month, both for its banks and for the state. It would be the fifth member of the 17-nation euro area to require assistance since the debt crisis erupted in Greece in late 2009. The European Commission’s top economic official, Olli Rehn, told Reuters in an interview that the preemptive action to support Spain “is critical for calming down market turbulence in Europe and (ensuring) the proper functioning of the financial system in Spain”.
Businessmen across LoC call for plan to facilitate Indo-Pak trade KARACHI STAFF REPORT
The businesspersons related to the gems and jewelry industry across the Line of Control (LoC) urged the governments of India and Pakistan to devise a meticulous plan to facilitate cargo movement and rationalize customs duties on the two sides. The demand was made during a press conference at Karachi Press Club held Sunday by a 20-member Indian visiting delegation and their Pakistani hosts from the Pakistan Gems and Jewelry Development Company (PGJDC). Led by Sanjay Kothari, the Indian business delegation had arrived in Pakistan on the invite of PGJDC to participate in the Gems and Jewellery Exhibition held during June 7-10 in this metropolis. Addressing the post-exhibition briefing, Kothari wondered how Pakistani authorities had issued visas to the delegation on a less than 36 hours notice. The four-day event was well attended by the businessmen from at least 55 countries from Asia and European regions.
Bondholders are worried that the rescue will weigh on Spain’s fast-rising public debt. They also fear that if the euro zone’s future permanent bailout fund, the European Stability Mechanism, is used for the rescue, they will be subordinate to official creditors and face losses in any debt restructuring. “The EU is selling this as a ‘great victory’, but when you look at the details, this is a loan, and we don’t know yet where the money will be coming from. At the end of the day, it will increase
Spain’s debt-to-GDP ratio no matter what they say,” said Steen Jakobsen, chief economist at Saxo Bank in Copenhagen. <MKTS /GLOB} Previous “bailout bounces” have been short-lived, often fizzling within a day or two as investors anticipate the next flare-up in the euro zone’s unresolved debt crisis. Greece’s general election next Sunday could rapidly sour market sentiment if radical leftists hostile to the austerity terms of Athens’ EU/IMF bailout outpoll
the mainstream conservative and center-left parties that signed the deal, or the vote ends in another deadlock. Rajoy said on Sunday Madrid had scored a victory by securing aid from euro zone partners without having to submit to a full state rescue program, saying Spain’s rescue had “nothing to do” with the procedures imposed on Greece, Ireland and Portugal. But EU Competition Commissioner Joaquin Almunia and German Finance Minister Wolfgang Schaeuble said that as in those other bailouts, a “troika” of the International Monetary Fund, the European Commission and the European Central Bank would oversee the financial assistance. “Of course there will be conditions,” Almunia told Spain’s Cadena Ser radio. “Whoever gives money never gives it away for free. The IMF would be fully involved in monitoring Spain’s program even though it was not contributing funds, and banks that received aid must present a restructuring plan, he said. Schaeuble told Deutschlandfunk radio: “The Spanish state is taking the loans, Spain will be responsible for them... There will likewise be a troika. There will of course be supervision to ensure that the program is being complied with, but this refers only to the restructuring of the banks.”
If our economy is Terminator, agriculture is Schwarzenegger g
‘Agriculture plays pivotal role in Pakistan’s economy’ ISLAMABAD ONLINE
Agriculture is the lynchpin of Pakistan’s economy and there is dire need to redefine and reprioritize the broader parameters of agricultural production to change the fortunes of ordinary people of the country. This was stated by M. Moazzam Ali Khan Jatoi, Minister of State for National Food Security and Research here at a consultative workshop on “National Food Safety, Animal and Plant Health Regulatory Authority Bill” on Monday where he emphasized the need for a sharper focus on the improvement of food safety, animal and plant health conditions in the country. The main aim of the workshop was to present and discuss the National
Food Safety, Animal and Plant Health Regulatory Authority Bill which is one of the main outputs of the National Animal and Plant Health Inspection Service (NAPHIS) project. He said that current legislation and institutional framework for official controls of food safety, animal health and plant health are inadequate and not sufficiently coherent to address the wide variety of challenges faced by Pakistan’s agrofood sector. The main failure is the lack of an integrated system of official sanitary and phytosanitary (SPS) controls at the Federal and Provincial levels. He said that the Government of Pakistan is therefore seeking to define a new approach to SPS management and controls. National Animal and Plant Health Inspection Service (NAPHIS) with the support of the EU
funded Trade Related Technical Assistance Programme (TRTAII), has prepared a draft Bill which will provide a national legal framework for SPS regulatory controls, and establish a new Federal body, the National Food Safety, Animal and Plant Health Regulatory Authority (NFSAPHRA). The new Authority will provide an integrated national system of official controls for food safety/animal health/plant health and its related aspects which are to monitor SPS conditions and levels of compliance with technical regulations. During the workshop it was proposed that this new Authority would provide unitary coordination of national system of official controls for food safety/animal health/plant health and make national risk management decisions in these areas.
ICCI urges FBR to reduce Withholding Tax Rate ISLAMABAD ONLINE
Islamabad Chamber of Commerce and industry (ICCI) urged the Federal Board of Revenue (FBR) to reduce the proposed rate of 1 percent withholding tax from dealers, wholesalers and retailers that would be collected by the manufactures under section 153A in the Finance Bill 2012-13. Asad Farid, Acting President ICCI said that imposition of 1 percent withholding tax puts undue tax burden on dealers, wholesalers and retailers, therefore Government should reduce this rate to encourage tax culture in Pakistan because potential taxpayers feel hesitant due to such practices and continue to remain outside the tax net. ICCI Acting President was of the view that it is not the job of the manufacturers to work on the behalf of the FBR for documentation of economy, thus the tax departments should not give this responsibility to the manufacturers to deduct withholding tax from dealers, wholesalers and retailers. Asad Farid said that proposed one percent at source was much higher than of their taxable income and final tax liability which would mutilate their cash resources.
LCCI not a fan of bonded carriers LAHORE STAFF REPORT
Lahore Chamber of commerce and Industry Monday urged the government to solve the issues of the bonded carriers as due to their strike outward and inward movement of cargo from the ports has come to a standstill. LCCI acting President Kashif Younis Meher and Vice President Saeeda Nazar were talking to the former Vice President Aftab Ahmad Vohra and former President Lahore Customs Agents Association Sajid Meer. Aftab Ahmad Vohra and Sajid Meer informed that LCCI office-bearers that about 400 to 500 containers are handled on average by bonded carriers for shipment to upcountry and Afghanistan but due to their strike both the trade and industry were in deep troubles. After listening to their point of view, the LCCI office-bearers said that the economy of the country were already facing multiple challenges and therefore the government should make all trade and industry related decisions in consultation with the concerned stakeholders instead of taking unilateral decisions.
Rs 145b incurred to import 1.467m tonne edible oil ISLAMABAD APP
Healthy animals, plants; secret to agricultural success With human sustenance out of their league our govt finally gives animal and plant health a thought g Establishment of National Food Safety, Animal and Plant Health Authority on the cards g
ISLAMABAD AMER SIAL
Faced with the challenges in meeting sanitary and phytosanitary (SPS) requirements which are increasingly resulting in confiscation and rejection of Pakistani agrobased consignments internationally, the government has decided to establish the National Food Safety, Animal and Plant Health Authority. Speaking at a consultative workshop on the National Food Safety, Animal and Plant Health Regulatory Authority Bill, Minister of State for National Food Security and Research Moazzam Ali Khan Jatoi said Pakistan needs to redefine and reprioritize the broader parameters of agricultural production. Pakistan, he said, is facing stiff challenges in meeting SPS requirements in in-
ternational trade as a result of which agrobased consignments, frequently face confiscations and rejections at destinations, which not only cause economic loss to the exporters but at the same time puts a question mark on the credibility of Pakistan as an exporter of quality produce. Emphasizing the need for a sharper focus on the improvement of food safety, animal and plant health conditions, he noted that the failure to address wide variety of challenges faced by agro-based sector can be attributed to the lack of an integrated system of official controls at the federal and provincial level. The workshop was organized by the National Animal and Plant Health Inspection Service (NAPHIS) under the Ministry of National Food Security and Research, with the support of the European Union
(EU) funded second Trade Related Technical Assistance (TRTA-II) Programme. Pakistan faces a number of problems caused by weak SPS controls resulting in export of substandard products which are increasing being rejected. Lack of compliance with international requirements result in discounted prices for food and agro products. Non-compliant of SPS rules undermine market confidence and lack of investment in value addition. The participants were briefed that the current legislation and institutional framework for official controls of food safety, animal health and plant health were inadequate and not sufficiently coherent to address the wide variety of challenges faced by agro-food sector. The main failure is the lack of an integrated system of official SPS controls at the fed-
eral and provincial levels. The draft bill will provide a national legal framework for SPS regulatory controls, and help establish a new authority to provide an integrated national system of official controls for food safety, animal health, plant health and other related aspects to monitor SPS conditions and levels of compliance with technical regulations. The new body will provide unitary coordination of national system of official controls for food safety, animal health, and plant health. Make national risk management decisions in these areas. Support development of model technical regulations. Provide advice and guidance to provincial authorities in inspection guidelines and national campaigns. Ensure compliance with national legislation of imported and exported food products.
Pakistan has spent Rs. 145 billion to import 1.467 million ton of edible oil to meet the local needs during last eight months of this fiscal year. The major oilseed crops grown in the country include sunflower, canola, cottonseed and mustard and local production during the period was 0.636 million ton. An official source on Tuesday said although cotton crop is grown for its lint, cotton seed contributes 50 to 60 % of local edible oil production. At present, total requirement of edible oil in the country is 2.045 million ton and during the year 2010-11 import bill reached Rs. 224 billion (US$ 2.611 billion), the official said. He said the total availability of edible oil was 3.079 million ton, of which local production contributed 0.696 million ton (34 percent of the requirement) while imports of edible oil or oilseeds was 2.383 million ton. It is estimated that 10 percent of the total availability of edible oil is consumed in industries like cosmetics, paints and other allied products. He said around 200,000 tons of edible oil is exported, mainly to Afghanistan.
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FBR extends date of default surcharge PESHAWAR APP
The Federal Board of Revenue (FBR) has extended the date for availing the “Default Surcharge and Penalty Waiver Scheme” under SRO-547(I)/2012 and SRO-548(I)/2012 up to June 25, 2012, in view of the positive response of the taxpayers for availing the said scheme. The Commissioner Land Revenue Zone-I, Regional Tax Office Peshawar Shad Muhammad said the scheme was extended up to June 25 and urged withholding agents and persons against whom taxes are due to take full advantage of the scheme. After expire of the said date, he said crackdown would be started against defaulters for collection of taxes. The FBR had earlier announced a “Default Surcharge and Penalty Waiver Scheme” through SRO547(I)/2012 of Income Tax and SRO-548(I)/2012 of ST & FED dated 22.5.2012 for Withholding Agents and Persons against whom Income Tax, Sales Tax or Federal Excise Duty was due and they could not pay in time. The scheme offered waiver of default surcharge and penalties to such tax defaulters who would pay principal amount of due tax on or before 31st May, 2012. He urged taxpayers to consult SRO-547(I)/2012 of Income Tax and SRO-548(I)/2012 of ST & FED dated 22.5.2012 available at FBR website.
Bulls pay ISE-10 a visit as well ISLAMABAD APP
Islamabad Stock Exchange (ISE-10) here on Monday witnessed bullish trend as the index gained 0.36 points to close at 2704.17 as compared to the previous day’s trading. Talking to APP, Stock Analyst, Zaheer said that the local stock market had responded positively to the announcement of resolving the energy crisis on the priority basis by the government. He said that the shares of power and fertilizer sectors, those would be direct beneficiaries of that announcement, remained the most traded scrips along with banking sector. “Hub Power, Nishat Power and Fauji Cement has registered a substantial increase in the price and their turnovers because the investors have aggressively taken the fresh positions”, he added. Total volume of shares traded were 24,659, which was down by 40,441 as compared to a day earlier’s closing. Out of 125 companies’ shares traded, the price of 60 was increased while the price of 65 decreased. The price of top gainer Unilever Pakistan was increased by Rs.39.16, while the price of top loser Fazal Textile decreased by Rs.10.76. Fauji Cement, Hub Power and Silk Bank remained volume leaders on Monday, with volume of 10,000, 8,500 and 5,000 shares respectively.
Major Gainers
RED RAG: EURO DEBT CRISIS EVENTS
Bulls pay no heed to Pak-US ties g
KARACHI
T
HE bulls dominated matters at the Karachi stock market on the first working day of the week with benchmark, KSE 100-share index gained 42.76 points. The day saw the index closing up by 0.32 percent at 13,601.46 points against 13,558.70 points of Friday. The Pakistan stocks closed higher amid thin trades on institutional support in oversold market according to Ahsan Mehanti, Director at Arif Habib Investments Limited. On Monday, the trading volumes at the ready-counter were recorded lower at 60.206 million shares against 124.437 million shares of the previous day. The trading value too decreased to Rs 1.690 billion compared to Rs 4.019 billion of the previous session. The intraday high and low, respectively, stood at 13,676.49 and 13,551.20 points. He added that the-concerns over rupee fell and macroeconomic uncertainty affected the activity. Recovery in global commodities on expectations for ease in euro-zone debt crisIs, speculations ahead of
year end close played the catalyst’s role in bullish sentiments despite cautious activity pending uncertainty over Pak-US relations. The market capitalisation increased to Rs 3.471 trillion from Rs 3.468 trillion a day earlier. Of the total 323 traded scrips, 131 gained, 129 lost and 63 remained unchanged. The free-float KSE-30 index also gained 37.69 points to close at 11,746.65 points against the previous 11,708.96 points. Jahangir Siddiqui Company was the day’s volume leader counting its traded shares at 6.875 million with the opening and closing rates standing at Rs 13.93 and Rs 14.49, followed by Nishat Power Limited, P.T.C.L.A, D.G.K Cement, and Azgard Nine with turnover of 5.091 million, 4.998 million, 3.550 million and 2.968 million shares respectively. On the future market, the turnover recovered remarkably by over three million shares to 10.772 million against 14.141 million shares of last working day of the week Friday. The Rafhan Maize XD and UniLever Pakistan, up Rs 130.18 and Rs 39.16, led highest price gainers while, UniLever Food and Bata Pakistan Limited, down Rs 110.00 and Rs 14.31 respectively, led the losers.
SECP takes measures to strengthen mutual fund governance ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) would convene a meeting of unit holders to manage framework for mutual funds industry. In Pursuant to the concept of unit holders’ meeting introduced by the SECP through amendment to the regulatory framework for mutual funds industry, the SECP has issued detailed requirements and procedures for convening meeting of the unit holders of open end and closed end mutual funds through a Circular No. 19 of 2012. The said Circular is available on the SECP website. In terms of the procedure introduced, an Asset Management Company (AMC) managing the mutual fund is responsible for conducting and chairing the meeting. The AMC is required to publish notice of the meeting through newspaper at least seven days prior to the date of such meeting. The trustee of the mutual fund is required to attend every meeting of unit holders and is responsible to ensure that all regulatory requirements are complied with. Unit holders of a mutual fund have been given the right to either cast their vote on a resolution by physical presence in the meeting, through proxy or by post. ONLINE
Open
High
Low
Close
Change
Turnover
Rafhan MaizeXD UniLever Pak Nestle Pakistan Ltd. Philip Morris Pak. Wyeth Pak Limited
2963.47 7208.50 4042.15 144.64 815.44
3110.00 7299.00 4099.00 151.87 825.00
2825.00 7160.00 4000.00 147.00 810.00
3093.65 7247.66 4063.00 151.87 820.40
130.18 39.16 20.85 7.23 4.96
123 280 5,041 7,648 229
Major Losers
Index up 42.76 points as bulls evade rupee, macroeconomic uncertainty STAFF REPORT
Company
Unilever Food Bata (Pak) Limited Fazal Textile National Foods Siemens Pakistan
2872.50 653.87 218.51 211.81 667.16
2844.99 640.00 207.75 218.00 660.00
2728.88 630.00 207.75 201.23 657.00
2762.50 639.56 207.75 202.03 660.00
14.75 15.15 14.60 40.64 6.36
14.25 14.41 13.99 40.05 5.95
14.49 14.87 14.37 40.24 6.06
-110.00 -14.31 -10.76 -9.78 -7.16
42 213 125 25,017 2,520
Volume Leaders Jah.Sidd. Co. Nishat Power Ltd P.T.C.L.A D.G.K.Cement Azgard Nine
13.93 14.47 14.38 39.82 5.97
0.56 0.40 -0.01 0.42 0.09
6,875,950 5,091,793 4,998,995 3,550,954 2,968,006
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.3326 146.6023 1.1879 118.5855
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
Sell
95.30 117.93 146.37 1.1821 91.46 12.06 25.74 25.22 93.23
95.90 119.64 148.46 1.1988 93.27 12.29 26.08 25.54 96.02
President assures resolution of ECAP’s problems KARACHI APP
President Asif Ali Zardari on Monday assured the delegation of Exchange Companies Association of Pakistan (ECAP) for resolving their problems, in a meeting held at Bilawal House here. Federal Finance Minister Senator Dr Abdul Hafeez Shaikh, Minister for Petroleum and Natual Resources Senator Dr Aasim Husain, Secretary Finance Abdul Wajid Rana, Member Internal Revenue Shahid Hussain, Governor State Bank of Pakistan Yasin Anwar and chairman ECAP Malik Muhammad Bostan were present during the meeting. The meeting was told that some of the problems of moneychangers had already been resolved by May 11, while the remaining would be addressed at a forthcoming meeting of a committee consisting of State Bank of Pakistan officials and ECAP representatives.
CORPORATE CORNER Grand musical, glamorous stars launch new Magnum® flavours in Pakistan
KARACHI: Unilever Pakistan launched new Magnum®, its flag-ship brand within the Wall’s Icecream portfolio last week end. Nida Butt’s original musical “A Royal Remedy” launched the new Magnum® Brand Council and the new flavors that will now be available for Pakistani consumers. The new “Royal Treatment” campaign for the brand serves to introduce the new Magnum with Belgian Chocolate, the most premium chocolate in the World. The latest range also marks the addition of a new flavor Truffle over its existing successful offerings of Classic and Almond Magnums Farheen Salman, Director Ice Cream said, “Wall’s is the dominant market leader in the Ice Cream category and is proud to be bringing the world’s most premium ice cream Magnum to its Pakistani consumers. Made with luxurious chocolate from Belgium, Magnum is not just a stick of ice cream but an indulgent dessert made for those who appreciate the finest things in life!”
The launch event was attended by some of the biggest names in media and fashion in the country headlined by an original musical “A Royal Remedy” set in 17th Century France, with a stellar cast and production team. The musical was written by Uns Mufti especially for the Magnum launch, directed and choreographed by Nida Butt with seasoned actors Sanam Saeed, Rubya Chaudhry, Faraz Lodhi and Momin Zafar in lead roles. This production is also unique since this the first time in Pakistan that there will be a 12 man orchestra on stage providing the music score, directed by Hamza Jaferi. Hamza said “It’s been a real treat to conduct a 12 piece orchestra, it’s very much east meets west with sitars, electric guitars, and congas in the mix” The rest of the event was nothing less than a Royal affair either. The event venue had a Magnum airship (Pakistan’s first) hovering right over it, with the Magnum Brand Council (Tapu Javeri, Deepak Perwani, Nabila, Kiran Aman & Madiha Sultan of Lal’s Chocolate fame and brand ambassadors Ayyan and Aisha Linnea Akhtar) arriving at the red carpet in vintage Rolls Royces with the elaborate red carpet coverage telecast live inside the venue. The entire ambiance of the venue was based on the theme of decadence and opulence of 17th century European Royalty, showcased with long court tables and towering Greek statues. There were even certain completely unique ambiance elements at the event that brought the entire place alive and buzzing such as a 16ft high ribbon tree on top of a bar that was serving custom Magnum desserts with chefs also creating their own Magnums in a dipping station with various toppings for the guests. The atmosphere was accentuated further with thrilling elements such Brazilian models adorning dresses shaped like tables serving chocolate shots to the guests and a dessert buffet table
that had mimes’ with their heads protruding out of the table, inviting them to try the various chocolate desserts on offer. Certainly a night with a lot of firsts and never before seen elements overall making for an extremely unique and royal experience Magnum as a brand has attracted some of the biggest Hollywood celebrity endorsers in the world such as Eva Longoria, Eva Mendes, Ivanka Trump, Benicio Del Toro and Rachel Bilson, to name just a few. Similarly, in Pakistan the campaign is being spear-headed by the Magnum Brand Council comprising some of the biggest fashion/lifestyle names i.e Tapu Javeri, Deepak Perwani, Nabila, Kiran Aman, Madiha Sultan and top models Ayyan and Aisha Linnea Akhtar as the brand ambassadors Nabila said “I work really hard to create perfection in my field and to reward my achievements I indulge in the finest things in life, needless to say I’m part of the Magnum brand council, because I associate with the best.” Tapu Javeri also at the event said “My passion for photography is obvious to everyone but I’m also passionate about Belgian chocolate in the new Magnum with premium quality vanilla icecream that makes Magnum a royal indulgence fit for a king.” Deepak Perwani said “I enjoy the finest things in life, I want everyday in my life to be pleasurable, so when it comes to ice-cream I only want the best, the ice-cream of royalty, the new Magnum with Belgian chocolate, enjoy the Royal treatment.”
Dr Baig to attend ITMA Shanghai KARACHI: Dr. Mirza Ikhtiar Baig, Federal Advisor on Textile Industry, Govt. of Pakistan will be leading textile delegation to attend world’s largest textile machinery exhibition, “International Textile Machinery Exhibition 2012” in Shanghai from 12 to 16
June 2012. During his visit Dr Baig will address world representatives of China Texmatech Co. Ltd (CTMTC) and would speak about Pakistan textile industry. Dr Baig will also visit Hongen Group in Hangzhou and will attend a banquet hosted by its President Zhou Fengjian in his honour. The Vice Governor Hangzhou, Mr. Zhao Limin, Consul General of Pakistan in Shanghai Mr Zafar Hassan and will also attend the banquet in honour of Dr Baig. Dr Baig said that world renowned textile machinery brands are now manufactured under license in China at half the price as compared to USA, EU, Japan etc. He also mentioned that Pakistan is enjoying FTA with China and second phase of FTA with China to include textile products for duty free export to China from Pakistan. The President of Pakistan, Asif Ali Zardari has set new bilateral trade target of US$15 billion annually by 2015 with China. Dr Baig is hopeful to achieve it.
PTCL holds special retailers conferences ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) recently has organized special retailers’ conferences across the country, as part of its sustained national outreach for retailers and distributors. Special sessions were arranged in Karachi, Lahore, Islamabad, Multan, Rawalpindi, Faisalabad and Azad Jammu & Kashmir. These were attended by a large number of PTCL retailers, business partners, and national distributors from across Pakistan, as well as senior PTCL officials. Various team-building sessions provided participants an exciting opportunity to share their observations and experiences regarding PTCL’s product sales, services, initiatives and distribution.