PRO 12-10-2012_Layout 1 10/12/2012 12:43 AM Page 1
Friday, 12 October, 2012
Let’s tap into TAPI!
Exports > imports Exports up 4.26%, imports down 2.37 % in 1st quarter
Pakistan urged to expedite work on TAPI project to resolve energy crisis
ISLAMABAD APP
ISLAMABAD APP
P
AKISTAN can resolve its energy crisis by expediting work on The Turkmenistan-Afghanistan-Pakistan-In dia (TAPI) Gas Pipeline Project, Ambassador of Turkmenistan to Pakistan Atadjan Movlamov said Thursday. He said that Turkmenistan is extending its railways and power network to Afghanistan which can offer new opportunities to Pakistan boost its transit trade business and cope with power shortfall. The Turkmenistan Ambassador was talking to a delegatio no of business community, members of which included, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Haji Ghulam Kadir Sherani, Vice President SAARC Chamber, Iftikhar Ali Malik, Vice President, FPCCI Haroon Rashid, Chairman Media FPCCI Malik Sohail, Hina Mansab and others. First Secretary Turkmenistan Embassy Charyyev Hydyr and Head of Chancery Sarwar Kayani were also present of the occasion. Atadjan Movlamov said that concerns about security challenges to TAPI gas pipeline are baseless as
Afghan government will get some eight per cent of the revenue while all stakeholders there favour this mega project. He informed that Turkmenistan is holding more road shows on 1,420 millimeters diameter TAPI after holding three in London, New York and Singapore with the help of ADB to attract investors. The Ambassador invited FPCCI to participate in a grand business forum being held in Asghabat in November to explore opportunities adding “we are interested in holding Pakistan Business Forum and single country exhibition to boost bilateral trade.” Movlamov informed that Pakistan and Turkmenistan will soon hold three separate meetings of working groups on energy, agriculture and trade. On the occasion, President FPCCI Haji Ghulam Kadir Sherani said that energy crisis has crippled economy but projects to import gas are still incom-
plete. China has built 7500 km pipeline in 18 months to get gas from Turkmenistan but we remained unable to get gas since decades which will need only 1735 km pipeline, he lamented. VP Saarc Chamber Iftikhar Ali Malik stressed the need of taking benefit from the resources of the country having world’s fourth largest reserves of natural gas which are offered on competitive rates. VP, FPCCI Haroon Rashid said that participation of State Bank of India in the recent TAPI road show in Singapore was encouraging which is a major step to ensure import of up to 33 billion cubic meters of natural gas per year. Malik Sohail demanded of the government to ensure import of natural gas without wasting time, adding that Pakistan can also import petroleum products including LPG from brotherly country.
Indo-Pak trade on the up
Gas predicament to grow Shortfall to increase from 1.6 bcf in 3 years: SNGPL ISLAMABAD ONLINE
Gas shortfall would exceed from 1.6 billion cubic feet (BCF) during next three years and Iran Pakistan (IP) gas pipeline project would not helpful to eradicate this menace. Managing Director of Sui Northern Gas Pipeline limited (SNGPL) Arif Hameed stated this during the meeting of senate standing committee on petroleum and Natural resources that held under the chairmanship of Senator Muhammad Yousaf here on Thursday. MD SNGPL said that for the current month of Oct our demand is 1570 mmcfd while shortfall is 566 mmcfd while this shortfall would be reached to 1bcf during January next year and winter would be once again tough. He said that SNGPL has given connections to 0.16 million consumers while 1.1million applica-
tions are pending before us for new connections. He said that exploration work is under progress for new reserves in the country and 240 mmcfd gas would be added into the national system during next two and half years. Additional secretary Abid Saeed apprised the committee that till 2013 our local production would be increased from 750 mmcfd and 1325 mmcfd would be imported from Turkmenistan thorough TAPI pipeline project. He said that till 2015, 400 mmcfd LNG gas would be imported and 2 bcfd gas would be imported though pipeline. MD SNGPL said that domestic sector used 3mcfd gas. During the meeting, Senators resented the expected plan to roll out the CNG sector from the country and said that people have invested billion of rupees in this sector therefore government should not roll out but to mange the existing system. Senator Nabi Bakhsh said that why government allowed thousand of CNG stations to operate when there was already shortage of gas in the country and now after ten years when people have invested in this sector now government is considering to roll out this sector which is un-
The exports from the country witnessed positive growth of 4.26 percent while the imports decreased by 2.37 percent during the first quarter of the current fiscal year, indicating a positive trends in the overall trade volume of the country. Exports from the country during July-September (2012-13) were recorded at US$6.187 billion against the exports of US$5.934 billion during the same period of last year, according to the data of Pakistan Bureau of Statistics (PBS). On the other hand, the imports into the country decreased from US$11.117 billion last year to US$10.853 billion during the current fiscal year, the data revealed. Based on these figures, the overall trade deficit has been recorded at 9.97 percent as it reduced from the deficit of US$5.183 billion last year to US$4.666 this year. During the month of September 2012, the exports from the country increased by 21.12 percent wheres the imports decreased by 3.20 percent when compared to the same month of the last year. Exports from the country during September 2012 were recorded at US$2.219 billion against the exports of US$1.832 billion during September 2011. Imports into the country decreased from US$3.622 billion during September 2011 to US$3.504 billion during September 2012, according to the PBS data. Meanwhile, as compared to the exports of US$1.911 billion during July 2012, the exports from the country increased by 16.12 percent whereas imports into the country decreased by 4.86 percent in September 2012 when compared to the imports of US$3.685 billion in July 2012.
ISLAMABAD fair with investors. Senator Usman Saifullah said that government is providing gas to inefficient plants which are wasting the gas and are not well productive. He said that government should devise mechanism to enhance the efficiency of plants and industrial units and initiate a comprehensive program to increase the efficiency of home appliances. Senator Hamza said that ex-prime Minister Syed Yousaf Raza Gillani has also contributed in increasing gas shortfall as he issued directives to provide gas to large no of villages for just political gains and gas provided to those areas where alternative fuel like cottons sticks and other things were available. ` Earlier, Senator rozi khan Kakar walkout from the meeting over regular absence of Advisor to Prime Minister for Petroleum and natural resources Dr Asim and secretary Petroleum Dr Waqar Masood. Committee proposed to raise this issue of absence of Dr Asim in the house because through his attitude it seems that he has not respect for the parliament and parliamentarians.
APP
Senate Standing Committee, Foreign Affairs, Kashmir Affairs and Gilgit-Baltistan was informed on Thursday that Pakistan and India are moving from a positive to a negative list regime which after approval of Cabinet would be gradually phased out by end of this year. In a briefing to the Committee, chaired by Senator Haji Muhammad Adeel, Secretary Commerce, Munir Qureshi said Pakistan and India have made substantive progress in economic and trade relations. The meeting was attended by Minister of State for Foreign Affairs, Malik Imad Khan, Senators Farhatullah Babar, Muhammad Jehangir Badar, Muzafar Hussain Shah, Syeda Sughra Imam, Secretary Foreign Affairs, Jalil Abbas Jilani and and Representatives of concerned Ministries. Munir Qureshi said the visit of Commerce Ministers from both sides paved the way for normalization of bilateral trade relations and added Pakistan’s agreement in principle to grant MFN status to india was a decision taken in the same spirit. The Secretary said first meeting under the 3rd round of resumed dialogue was that of Commerce Secretaries of the two countries, held in Islamabad. He said the two sides discussed at length measures to facilitate and encourage business to business contacts.
The Doc conjures japanese remeDy Pak growth potential offers strategic opportunities to Japanese investors: Hafeez Sheikh ISLAMABAD APP
“Pakistan’s liberal investment policies and growth potential offers tremendous strategic opportunities for Japanese investors in different sectors of economy”, this was stated by Dr. Abdul Hafeez Shaikh Finance Minister of Pakistan while speaking at a MIGA lunch hosted in his honor where more than thirty representatives of the top Japanese companies participated. He said that MIGA (Multilateral Investment Guarantee Agency) is an important component of World Bank Group, promoting investment and prosperity. “We enjoy good political, economic and cultural relationship with Japan, both the countries are collaborating in many projects from textile to mining”, the Minister said, according to a press release received here from embassy of Pakistan in Tokyo. He paid tributes to the Japanese people and government for introducing latest technology and management skills to Pakistan. Dr. Shaikh said that Pakistan is un-
dergoing a transition, “now we have a democratic government which for the first time in the history of Pakistan is going to complete its full tenure and we are going next year in an election phase, this is a good omen for development and prosperity for the people of Pakistan, he added. He said that all the institutions in Pakistan are working freely in their respective spheres. Judiciary is performing independently media is free and vibrant, there are about 88 TV channels openly criticizing the government policies. All the actions of the government are exposed for close scrutiny of the media. It shows the strength of Pakistani society. Highlighting the economic situation of Pakistan, the Minister said that measures are being taken to bring macroeconomic stability in the country hence we tried to remain fiscally austere. He said that despite various constraints, the government is trying to mobilize the resources. In the last two years the government has doubled the tax collection. This year the growth rate is expected to be around 4% and we have
succeeded in bringing the inflation to a single digit, the Minister added. Dr. Shaikh said that the government has adopted an open door Investment Policy where all investors are welcomed. He said that Pakistan’s political leadership including the President, Prime Minister and the Ministers are all available to the investors for all the time. Answering to the questions of the participants the Minister said that relations with India are improving. Both the countries adopted opening up economic policies. Pakistan has granted India the MFN status, the positive list has been abolished and now we have open visa policy for businessmen from both the countries. Joint ventures like electricity from East-Punjab to West-Punjab are also under consideration to be launched very soon. He said that Pakistan offers a good opportunity for investment to the Japanese entrepreneurs in Coal, Solar and Wind energy projects. He also offered special economic zone to Japanese Investors in
Pakistan. The MIGA-event also included exhibitions of Pakistan carpets, Pakistani honey, rock salt and food products.
Earlier Izumi Kobayashi CEO and Executive Vice President of World Bank Group MIGA welcoming the Finance Minister Dr. Abdul Hafeez Shaikh said that our mission is to promote foreign direct investment in to developing countries to help support economic growth, reduce poverty and improve people’s lives. In Pakistan we strongly focus on to create jobs and reduce poverty. We are coordinating hydropower projects in Pakistan to address its energy needs. Federal Minister for Finance Dr. Abdul Hafeez Shaikh also participated in G-24 Ministers meeting. The implications of the development in the global economy IMF quota reforms and infrastructure finance and development were thread barely discussed. Minister also held a meeting with Mr. Masood Ahmed, Director MCD, Ms. Daniela Gressani, Reviewer, IMF and Ms. Isabel Guerrero, Vice President, South Asian Region, World Bank and discussed the issues pertaining to Pakistan’s economy.
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Business 02 Stagnant domestic demand, declining export exacerbate cement industry KARACHI STAFF REPORT
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ITH cement industries operating at 68.86% of its installed capacity industry circles are worried by the stagnant domestic demand during the first three months of this fiscal and continuously declining exports which is hurting the viability of the industry. A spokesman of All Pakistan Cement Manufacturers Association said during the first quarter of this fiscal the industry despatched only 7,707,399 tons of cement which was nominally higher than the total cement despatches of 7,496,470 tons during corresponding quarter of last year. He said the local demand increased during the quarter by 5.30 percent but the decline in exports by 2.68 percent reduced the overall gain in despatches to 2.81 percent. He said in September the mills in north despatched 1,499,246 tons of cement for do-
mestic market and exported only 633,867 tons of the commodity. He said the South based mills despatched 294,041 tons of cement for domestic and exported only 184,182 tons of cement.
IMF calls for action as euro zone crisis festers TOKYO AGENCIES
The IMF prodded the world’s rich countries for swifter action on Thursday as Europe’s debt crisis drags on while the United States and Japan show scant progress handling their budget deficits. Christine Lagarde, managing director of the International Monetary Fund, said political wrangling added to economic uncertainty, slowing growth in both advanced and emerging economies. The IMF cut its global growth forecast this week for the second time since April. “We expect action and we expect courageous and cooperative action on the part of our members,” Lagarde said in a news briefing ahead of the IMF’s twice-yearly meetings in Tokyo. The IMF has expressed frustration with Europe’s piecemeal response to its debt crisis and warned that a recent respite in borrowing costs for debt-laden countries such as Spain may prove short-lived unless euro zone leaders come up with a comprehensive and credible plan. Standard & Poor’s cut its rating on Spain on Wednesday to a level just above junk territory, and Moody’s may soon follow. The IMF itself is struggling to muster the sort of decisive action that Lagarde wants to see from world leaders. Its 188 member countries meet on Friday and Saturday, and will fall short of a goal to implement voting reforms that would give large emerging economies greater say. A territorial dispute between Japan and China added another element of disharmony. China’s top central bank and finance ministry officials backed out of the meetings and sent deputies to Tokyo instead. Lagarde said she hoped the world’s second- and third-largest economies could resolve their differences “harmoniously and expeditiously.” “I think they lose out by not attending the meeting,” she said of the Chinese officials. “And they will be missing something great.”
The spokesman said the total production capacity of cement industry has increased to 44.768 million tons. He said low capacity utilization is particularly more painful for those units that enhanced their capacities in recent years. He said debt servicing has now become a major component of cost as even after three interest rates cuts in past six months the effective bank markup for the industry is still well above 12 percent. He appealed the planners to provide some industry specific interest rebate to the industry to keep it afloat. Exports to India in fact have been on constant decline ever since the two countries opened their borders for liberal bilateral trade. The decline is not due to lack of cement demand in India but because of very stringent non tariff barriers erected by our neighbor” he said adding Pakistan’s cement is preferred by the Indians because of better quality. He said government failure to push India for removal of trade barriers has denied Pakistan a lucrative market that exists across the border.
ISE ends flat ISLAMABAD: Islamabad Stock Exchange (ISE-10) here on Thursday witnessed bullish trend as the index was up by 3.48 points to close at 2965.74 as compared to the previous day’s trading. Talking to APP, Stock Analyst, M.M Hassan said that the buying in the fertilizer sector led the bullish rally in the local stock market. The investors were seen busy while taking fresh positions in the market after booking profit since last few days, he added. Appreciating the performance of economic indicators in the country, he said that the market would perform better in the future. Total volume of shares traded was 38,200, which was up when compared it with a day earlier’s trading. Fatima, NIB Bank and FFC remained volume leader on Thursday, with volume of 28,000, 10,000 and 100 shares respectively. APP
SME is the real deal! ISLAMABAD: The 28th session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the Organization of Islamic Cooperation (OIC) was held in Istanbul from Oct. 9-11 at which Pakistan called for greater economic cooperation among the member states. Various Ministers from OIC member states represented their governments while the inaugural session was opened by Turkish Prime Minister Recep Tayyip Erdogan. The Pakistan delegation was led by Senior Minister and Minister for Commerce Makhdoom Muhammad Amin Fahim, said a message received here from Istanbul. COMCEC Secretariat in consultation with OIC member countries honoured Pakistan by asking Commerce Minister Makhdoom Amin Fahim to make a speech on behalf of the Asia Group. APP
Major Gainers COMPANY OPEN Nestle Pakistan Ltd. 5200.00 Colgate Palmolive 1290.00 Bata (Pak) Limited 1060.00 Exide (PAK) 309.90 Island TextileXD 300.00
HIGH 5460.00 1354.50 1106.00 325.39 314.60
LOW 5100.00 1261.00 1040.00 311.00 314.60
CLOSE CHANGE 5460.00 260.00 1354.50 64.50 1106.00 46.00 325.39 15.49 314.60 14.60
TURNOVER 180 2,000 200 6,100 100
10195.00 287.05 92.85 185.99 250.01
9750.00 266.25 92.85 180.00 248.00
9750.00 272.74 92.85 182.00 248.28
-445.00 -7.52 -4.85 -4.75 -3.72
320 20,100 2,000 4,600 3,400
20.25 71.70 16.00 3.35 45.48
19.76 69.51 15.66 2.99 44.65
19.98 71.39 15.86 3.20 44.91
0.18 1.42 0.19 0.22 0.16
15,960,500 5,101,000 4,706,500 4,264,500 3,875,000
Major Losers UniLever Pak National FoodsSPOT Mehmood Tex Service Industries Indus Motor Co
10195.00 280.26 97.70 186.75 252.00
Volume Leaders P.T.C.L.A Engro Foods Ltd. Askari Bank Summit Bank National Bank Pak
19.80 69.97 15.67 2.98 44.75
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.5178 152.9812 1.2227 123.0746
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUY
SELL
95.10 122.42 151.82 1.2032 96.46 12.10 25.83 25.28 96.81
95.60 123.62 153.27 1.2146 97.89 12.28 26.05 25.50 99.19
Crude up in Asia on Middle East tensions SINGAPORE: Crude oil prices rose in Asia Thursday with Middle East supply risks coming to the fore after Turkey warned Syria of a tougher response if artillery shellings continue, analysts said. New York’s main contract, light sweet crude for delivery in November advanced 33 cents to $91.58 a barrel in the afternoon and Brent North Sea crude for November delivery gained 57 cents to $114.90. “Prices were up as renewed Middle Eastern supply worries outweighed concerns about a slowing global economy,” said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young in Singapore. Tensions between allies Turkey and Syria took a turn for the worse last Wednesday when a Syrian shell hit the Turkish border town of Akcakale, killing five civilians — two women and three children. Following the deadly shelling, Turkey’s parliament approved the use of military force if necessary. On Wednesday, Turkey’s top military commander warned that it would mount stronger retaliatory action should more Syrian shells land in Turkish territory. “We have retaliated (for the shelling) and if it continues, we’ll respond more strongly,” the head of Turkey’s armed forces, General Necdet Ozel, said in Akcakale. Turkish authorities also Wednesday confiscated “objectionable cargo” aboard a Syrian passenger plane it intercepted en route from Moscow to Damascus. The confiscated cargo is believed to be missile parts, Turkey’s NTV news channel reported, while the country’s state-run TRT channel speculated it could be communications equipment. AFP
CORPORATE CORNER Aman Foundation, Bill Gates sign agreement on family health
DUBAI: Arif Naqvi, Chairman Aman Foundation, and Bill Gates, Co-chair of the Bill & Melinda Gates Foundation signed a five-year framework agreement on family planning and health in Pakistan. They will also explore further areas for collaboration to advance global health and development. The Aman Foundation and the Bill & Melinda Gates Foundation believe that all people
have the right to live a healthy and productive life. They recognize that achieving the Millennium Development Goals will require new partnerships, along with innovative funding mechanisms to encourage those with significant resources help the world’s poorest people improve their lives. Today, more than 200 million women in developing countries who do not want to get pregnant lack access to contraceptives, information, and services, which lead to complications in pregnancy and childbirth. The maternal mortality rate in Pakistan is currently 276 per 100,000, and infant mortality at birth stands at 62 deaths per 1000 live births. In light of these worrying figures, both Aman and the Gates Foundation have pledged to invest US $5 million each to address the gaps in reproductive health and family planning services in Pakistan. Bill Gates, Co-chair of the Bill & Melinda Gates Foundation said: “This is a significant co-investment partnership for our foundation which leverages Aman’s on-the-ground knowledge in family planning and maternal and child health in Pakistan. It is also an example of the kind of smart partnerships that hold huge promise for the future.
Investments in family planning have a transformational effect on the health and wealth of nations. “
NIT declares 1QFY13 results KARACHI: National Investment Trust Limited (NITL), the first & largest Asset Management Company of Pakistan has declared results for all Funds under its management for the quarter ended 30th September 2012. This was stated by Chairman/Managing Director – NIT, Mr. Wazir Ali Khoja in a statement, issued by NITL on October 11, 2012 after its Board of Directors approved the quarterly accounts of all Funds under its management. MD-NIT further stated that as of 30th September 2012, NIT is managing 5 Funds with net assets under management of around Rs. 74,402 million. During 1QFY13, the Fund has outperformed its benchmark by 0.34%, whereby the Fund’s NAV increased by 12.25% against an increase of 11.91% in the benchmark KSE-100 Index. The Chairman also stated that during the period under review, the dividend income earned by the
KARACHI: Mr. Masood Hashmi, President – Marketing Association of Pakistan presenting momento to Mr Amin Hashwani, guest speaker on the subject of “Pakistan – India relation and the future of our country”. On the right Mr Talib Syed Karim, Honorary Secretary & Mr Sohail Aziz, Honorary Treasurer were also seen in this photo. Fund grew by 16.2% YoY and stood at Rs. 472 million as compared to Rs. 406 million in the corresponding period last year. The Fund realized capital gains of Rs. 175 million in 1QFY13 against Rs. 129 million in 1QFY12, a growth of 36.1% YoY.
Friday, 12 October, 2012