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BUSINESS Wednesday, 13 February, 2013
KSE 100-share Index gains 62 points to close at 17,611
Being one of the most important positive indicators, the record increase in remittance is very good for the country’s economy. — Former finance minister Dr Salman Shah
SBP caps money exchangers’ profit at 25 paisas SBP MOVE TO DISCOURAGE ‘SPECULATIVE TENDENCIES’ IN VOLATILE OPEN MARKET KARACHI
KARACHI: Equities prices at Karachi Stock Exchange (KSE) closed higher on Tuesday in a rally led by the banking sector, traders said. The KSE benchmark100-share index ended 0.36 percent, or 62.86 points, higher at 17,611.40. National Bank of Pakistan climbed by 4.29 percent to 53.51 rupees and Muslim Commercial Bank percent to hit 213.49 rupees. In the currency market, the rupee ended weaker at 98.06/98.11 against the dollar, compared to Monday's close of 97.96/98.01. The rupee had come under pressure after Pakistan made a $145 million payment to the IMF, dealers said. Overnight rates in the money market rose to 9.40 percent compared to Monday's close of 9.25 percent. STAFF REPORT
FBR calls for customs budgetary proposals
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HE central bank Tuesday regulated the profit of money exchangers at 25 paisas to discourage “speculative tendencies” and protect the buyers in the volatile open currency market. The open market, which quite often is driven by currency rates on the interbank market, saw the US dollar peaking beyond Rs 100 Monday as reports of SBP’s 9th repayment of $ 145.791 million to the IMF hit the sentiments of buyers on the open market. Tuesday witnessed the State Bank of Pakistan (SBP) imposing a maximum limit on the spread between the buying and selling rates of foreign currencies in the open foreign exchange market. “It has now been decided that the maximum spread allowed between the buying and selling rates of foreign currencies must not exceed 25 paisas at any given time,”
said a circular the regulator issued Tuesday. Also, the exchange companies would henceforth be required to submit daily consolidated report to the Exchange Policy Department of the State Bank according to the given format. The determination of maximum spread between the bid and offer at 25 basis points in the open market, according to economic observers, is the regulator’s “desperate move” to control the ongoing rupee depreciation. “This shows SBP’s desperate move to control rupee fall,” Mohammad Sohail, senior analyst
and chief executive of Topline Research, told Pakistan Today. Other analysts, however, view that the new regulation would be helpful in containing overall volatility on the open market which is masterly driven by sentiments. “This would discourage speculative trading which most of the time adversely impacts the market sentiments,” said an analyst adding “This leads to panic buying that increases demand for the dollar which is then sold at inflated rates.” A currency expert said unlike the interbank market, where the daily turnover was
Businessmen voice concern over rupee devaluation
ISLAMABAD: The Federal Board of Revenue (FBR) has sought budgetary proposals for customs for the next fiscal year 2013-14. According to insider sources in FBR, a circular was issued by the tax authorities on Tuesday in which they asked for submitting customs budget proposals to change tariff slabs, Rules and Procedures, Customs Act, and Industrial Act. Now, importers, industrialists and other concerned individuals and organisations will submit proposals for changes in customs rules. The economic managers of the government will decide whether to reject or accept the proposals by keeping in view their impact on national economic and tax collections. INP
Rawalpindi Chamber of Commerce and Industry (RCCI) President Manzar Khurshid Sheikh has expressed concern over decreasing rupee value and said that value of Rupee declined to 100 against the Dollar which is an alarming situation; government must take solid measures to stable the Rupee and facilitate the business community to promote the business and industrial activities in the country. “In 2008 Rupee value was Rs 68 and in four years it has crossed the figure of one hundred which reflect the incompetency of the government,” he added. He was exchanging these views with the trades and industrialists of the region in a meeting held here at the Chamber on Tuesday. Senior Vice President Parvaiz Ahmed Warriach, Vice President Nadeem Rauf and other members of the Chamber were also present on the occasion. Manzar Khurshid Sheikh said that it is need of the hour to promote non-tradi-
BOOKIES INVOLVED IN DEVALUATION ISLAMABAD: State Minister for Finance Salim Mandivala said on Tuesday as many as 50 big bookies are involved in the recent slump in rupee value. According to a private TV channel the state minister said these bookies are attached with various stock exchanges who want to create financial disorder in the country. Salim Mandivala further said the ministry had informed the State Bank of Pakistan about these books requesting an early action. DNA
tional trade items and explore new trade markets to enhance trade volume. He said that recent decline will boost the inflation rate and price hike in the country, government must have to devise a solid plan to coup up the situation. He was of the view that in 21st century where world is focusing on promotion of nontraditional items we are still claiming textile sector which is in no
doubts contributing around 58 per cent of total exports but if government facilitate gems and jewellery sector we can enhance our exports to $60 billion. Beside gems we have to introduce and explore other sectors to capture the world trade markets, he added. He was of the view that Pakistan is a land which is full of natural resources and it’s our duty to utilize these resources properly.
ICCI invites Spanish investment in energy sector ISLAMABAD INP
Javier M. Carbajosa Sanchez, Ambassador of Spain to Pakistan visited Islamabad Chamber of Commerce & Industry (ICCI) for discussing the prospects to enhance Pak-Spain trade ties. The Ambassador appreciated the hospitality of Pakistani people and said that political relations between two countries are good, however, trade relations need to be further enhanced. He noted that many Eurozone countries were facing economic slowdown, but Spain is reviving its economy on fast-pace. Carbajosa informed that Spain is world-leader in renewable energy in wind, solar, etc. and Spain produces 25 percent energy from renewable sources which is highest in Europe. Spanish Cellular phone service provider O2 first cellular service provide in Europe, world-class infrastructure facilities and
outstanding financial institutional system. Cooperation could be materialized in the areas of textiles, banking, transportation, construction and dairy products as Pakistan is the 4th largest producer of milk, he added. In his welcome address, Mr.Zafar Bakhtawari, President ICCI Pakistan and Spain have common cultural heritage because Islam has more than 700 history in
KESC appoints Tabish Gauhar as Chairman BoD, Nayyer Hussain as CEO KARACHI
RAWALPINDI DNA
$ 350 million, the open market was small having $ 10 million volume. “The open market therefore is more vulnerable where the genuine buyers need to be protected,” he said. Asked if SBP’s ban was a reaction to Monday’s hike (to Rs 100) in the value of dollar, the analysts replied in negative saying “not as such”. Monday’s spiral, they said, was not of more than few paisas. “You know the rupee was already trading at Rs 95.95 to the greenback. The real difference is on the sentiments side,” said a market observer. When contacted a central banker seconded the view that the SBP wanted to discourage speculative trends and protect genuine buyers on the open market. “The buyers need to be protected for which speculative tendencies must be checked,” the banker explained. In his comments, SBP’s chief spokesman Syed Wasimuddin told Pakistan today that: “The measure is in continuation of SBP efforts to improve market efficiency and protect customers from exploitation”. On Tuesday the rupee recovered against the dollar with its buying and selling rates standing, respectively, at Rs 99.30 and Rs 99.90 due to what the market sources said SBP’s intervention which is in the face of pumping up dollars on the interbank market.
Spain. He urged the Ambassador to invite Spanish investors to invest in renewable energy solutions as Spain is one of the world’s leading countries in the development and production of Renewable Energy. Mr.Bakhtawari said that Spain has great importance for Pakistan as around 1lac Pakistanis were working there and contributing in the development of Spanish economy as well as giving blood to the
Pakistan economy in form of remittances. ICCI President was of the view that increased number of parliamentary exchanges could pave create better understanding between Pakistan and Spain. He said that organizing of joint cultural shows and frequent exchange of business delegations are the options which can bring people of both the countries closer to each other that would eventually enhance the mutual cooperation between Pakistan and Spain. He said that Spain is the 4th largest trading partner of Pakistan in Europe and current trade volume between Pakistan and Spain was stood around 800million Euros which would be further enhanced by tapping true trade potential between both countries. Bakhtawari also appreciated the role of Spanish envoy in strengthening relations between Pakistan and Spain, hoping that he would continue to work for furthering friendly relations between the two countries.
NNI
KESC announced that its CEO, Mr. Tabish Gauhar is taking over as the Chairman of KESC’s Board of Directors effective from Feb 12. Present Chairman Mr. Waqar H. Siddique, who chaired the board of directors for four years handed over the charge to the newly appointed chairman after the board meeting held in Karachi. Mr. Nayyer Hussain, who is currently serving as an Executive Director and Chief Distribution Officer since 2010, will assume the role of Chief Executive Officer, effective 12 February 2013. The move ensures continuation of sharp focus and fast paced development in major strategic undertakings as well as continuous operational improvements across KESC’s core functions. KESC today stands as the 2nd largest private entity in Pakistan in terms of revenue of Rs. 163 Billion during fiscal year 2011-12 and the 3rd largest company with a total assets base of Rs. 273 Billion. Last few years have seen KESC implementing major turnaround strategies across all its core functions resulting in the much needed sustainable development in its operational and financial performance. It was after 17 years that the company posted a profit of PKR 2.6 billion in the last fiscal year 2011-12.
LHC again suspends petroleum levy on LPG LAHORE: Lahore High Court (LHC) on Tuesday suspended the petroleum levy on Liquefied Petroleum Gas (LPG) and in this regard issued a notice to the Ministry of Petroleum, federation and the Oil and Gas Regulatory Authority (Ogra). The Ogra has re-imposed the petroleum levy on the LPG on February 1. Earlier, the Ogra had imposed the petroleum levy on LPG last year but the decision was suspended by the Lahore High Court. The LHC has once again shelved the tax and issued notice to the petroleum ministry, federation and the Oil and Gas Regulatory Authority (Ogra) to appear before the court for February 28 hearing. Subsequently, the court adjourned the hearing of the case till February 28. ONLINE
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Iran is ready to put its services at the disposal of other ECO countries to assist them in areas in which Iran has excelled. — Iranian Parliament Speaker Ali Larijani
SCCDI launched in Karachi KARACHI APP
The Supply Chain Capacity Development Initiative (SCCDI) has been launched in Karachi to raise the bar for quality of supply chain training in the country. An announcement here on Tuesday said that the SCCDI is a professional training and consultancy firm focused on Supply Chain Management and allied subjects.It has a vision of changing the supply chain landscape of the country by way of changing corporate mindset and training manpower for more efficient supply-chain management. It said that the event was attended by supply chain professionals from industry's leading companies and institutes including Engro Foods, L'Oreal, PSO, Tetley Clover Pakistan, Agility, Lotte, Master Motors, Philip Morris, Reckitt Benkiser, IBA, PIM etc. President of Supply Chain Association of Pakistan (SCAP), Qayser Alam was the chief guest. He fully supported the initiative taken by SCCDI and emphasized that our population of almost 200 million lacked in professional training and there is a tremendous room for improvement. Founder and CEO of SCCDI, Younus Siddiqui has 22 years of experience in the field of Logistics and Supply Chain, having worked in leading roles with renowned companies such as Engro and Unilever. He has also the distinction of being the founder of SCAP and taught Distribution and Logistics at IBA for two years. He said `We aim to become the leading source of supply chain training in the region and will strive to be recognised in the industry as the benchmark of supply chain certification'.
Ghauri inaugurates infrastructure phase-1 in Port Qasim estate KARACHI
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IRST phase of infrastructure development over a vast area of Eastern Zone of the industrial estate of Port Qasim has been completed and was inaugurated by Federal Minister for Ports and Shipping Senator Babar Khan Ghauri on Monday. The development works included roads, sewerage, storm water drain and water supply systems. National Logistic Cell (NLC) and Frontier Works Organization (FWO) were given this great task which has been successfully completed within three years' period. Second phase of infrastructure development in Eastern Zone of this largest and modern industrial estate of the country will start next week. The Federal Minister for Ports and Shipping, on this occasion, said that completion of the first phase of infrastructure, which covers a
vast area meant for many industries and commercial facilities, will attract huge local and foreign investment. Port Qasim industrial estate already enjoyed more facilities than other industrial estates of the country with distinction of being nearest to Port Qasim, the deepest port of the country and the National Highway. Main Railway track was on its sideline. The Port Minister said one of the two roads in the zone have been named after late parliamentarian Ms Fouzia Wahab and another has been named after late founder of defunct BCCI Bank Agha Hasan Abidi. He said when he took over as the Federal Minister for Ports and Shipping there were only 40 industrial units in Port Qasim industrial estate. Now, 985 industrial units and warehouses have been completed and most of these were operational. Another 300 industrial units were scheduled to start construction there soon. He appreciated the performance of NLC and FWO and noted that they had done quality work.
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Wednesday, 13 February, 2013
Major Gainers COMPANY OPEN Unilever Food 4100.00 Nestle Pakistan Ltd. 5000.00 Sapphire Textile 235.62 National Foods 282.60 Gatron Ind. 192.02
HIGH 4200.00 5250.00 247.40 296.40 199.00
LOW 4200.00 5025.00 247.25 285.00 185.00
CLOSE CHANGE 4200.00 100.00 5030.00 30.00 247.40 11.78 293.95 11.35 199.00 6.98
TURNOVER 20 100 800 24,900 2,000
10445.00 1480.00 360.00 1500.00 430.00
10210.00 1450.00 332.50 1480.00 430.00
10350.00 1457.00 332.50 1490.00 430.00
-50.00 -28.00 -17.50 -10.00 -5.00
260 400 2,600 1,850 100
8.26 18.55 8.80 8.04 53.87
8.01 17.70 8.06 7.79 51.25
8.21 17.83 8.13 7.97 53.67
0.24 -0.22 -0.13 0.12 2.36
36,010,500 17,106,000 17,059,500 15,872,000 10,342,500
Major Losers UniLever Pak Bata (Pak) MithchellsFruit XDXB Colgate Palmolive Shezan Inter.
10400.00 1485.00 350.00 1500.00 435.00
Volume Leaders Fauji Cement Maple Leaf Cement TRG Pakistan Ltd. Lotte PakPTA National Bank Pak
7.97 18.05 8.26 7.85 51.31
Interbank Rates USD GBP JPY EURO
PKR 98.1102 PKR 152.9342 PKR 1.0428 PKR 131.3990
Forex US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
BUY
SELL
99.20 131.65 154.54 1.0524 97.35 12.58 26.90 26.40
99.90 133.22 156.34 1.0641 99.13 12.80 27.17 26.61
CORPORATE CORNER NADRA proposes SIM verification through biometrics ISLAMABAD: National Database and Registration Authority (NADRA) has proposed a comprehensive solution of Biometric based verification of CNICs for issuance of SIMs to the Telcos. In this regard NADRA conducted a live demonstration of Biometric verification of computerized national identity card for issuance of SIMs, to the TELCOs Todays at NADRA Headquarters. NADRA gave a comprehensive presentation and addressed technical issues raised by telecom companies, NADRA spokesman said in a statement issued here. She said the representatives of the telecom companies and PTA took part in the verification of their biometric impressions through the proposed solution. The proposed solution conforms to the requirements of PTA directives in vogue. NADRA has also floated the draft agreement among the telecom companies, for the solution. PRESS RELEASE
Acer continues to drive growth in Pakistan
LAHORE: Acer is revamping its already successful channel business to deliver more sustainable and profitable growth to its partners. In a channel partner meet, Acer executives highlighted the crucial role its partners play in making Acer’s empowering technology and products available to valued customers across the country. In Pakistan Acer is a major player for notebooks and desktops. Acer executives updated channel partners and distributors from across the country. New products and Acer’s 2013 channel strategy were key subjects. Acer’s channel partners applauded the new channel partner schemes and loyalty programme. Acer continues to fortify its regional operations with new hires and the introduction of state-of-the-art products, Acer’s channel community in Pakistan has grown bullish about its future prospects. “Pakistan’s IT market is growing at a significant pace and empowering our channel partners in the county and facilitating their growth is instrumental for Acer’s continued success. Acer commits to a significant increase in the level of support we provide to our partners to facilitate a
dynamic business model that encourages them to be pro-active. Working together, we can capture an even more significant share of this growing, hugely exciting IT market,” commented Amin Mortazavi, Acer Vice President, Middle East and Africa. PRESS RELEASE
Wateen Telecom and Cisco Pakistan coorganize ‘Technology Awareness Session’ LAHORE: Wateen Telecom Pakistan’s leading converged communications service provider, in its efforts to deliver the highest quality solutions, products, and services to its valued customers, held a joint seminar with Cisco Pakistan on Tuesday, January 29, 2013 at Pearl Continental Hotel Karachi. The event, aptly named “Technology Awareness Session” was organized to address the opportunities accessible through technology, which can help business partners achieve their objectives of lower costs and better management. Mr. Hamid Mohiuddin –GM EBU Wateen Telecom, opened the forum by emphasizing the importance of a “Digitalized Pakistan’’ and Wateen’s role in making this dream a reality. This was followed by the key note address by Mr. Baber Shahbaz, Channel Manager Cisco Pakistan, on Cisco’s new initiatives of Cloud Computing and Big data. Mr. Syed Mohammad Kashif, Head of Products Wateen, presented Wateen’s product portfolio in detail, highlighting Wateen’s skill-set and other strengths from which businesses can be benefited from. Briefing the participants, Cisco’s SME on Collaboration technologies, Mr. Munaf Ahmed, shared innovative solutions available in Cisco’s product line for speeding business decisions and ensuring revenues and profits in shortest possible time. In the second technical briefing, Mr. Javed Hashmi Technical Head –EBU explained how Cisco’s Security Solutions Portfolio can help businesses in generating revenue through E-commerce. PRESS RELEASE
and Rs.1,215 billion respectively for the year ended 31 December 2012 as against Rs. 791 billion and Rs. 934 billion in the previous year. The robust growth in domestic deposits by 32 % was much above the industry growth of 11 %. HBL, the only AAA/A-1+(Tripple A/A-One Plus) private sector bank of Pakistan, with balance sheet size of Rs.1.610 trillion, deposit of Rs. 1.215 trillion, branch network of 1,497, ATMs over 750 and customers base of around 6 million has truly become the market leader in the banking industry in Pakistan. The net interest income increased by 2% to Rs.58 billion for the year ended 31 December 2012. The non-interest income at Rs. 15 billion pointed to an increase of 8 %. The profit before tax was Rs. 34.9 billion, indicating an increase of 1.7 % while profit after tax at Rs. 22.4 billion was almost at last year level. PRESS RELEASE
ICAP and IBA sign MoU KARACHI: Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Business Administration (IBA) has inked Memorandum of Understanding (MoU)) here on Tuesday. As per this MoU, IBA would launch four-year Bachelors of Science (BS) programme in accounting and finance in Fall 2013 and successful candidates of this programme would have an opportunity to become chartered accountant with exemption of 4 Modules (12 papers) from CA curriculum. It would be first exemption that ICAP awarded to any higher education institute. The MoU was signed by ICAP President Ahmed Saeed and Dean and Director Dr Ishrat Hussain at IBA Karachi University Campus. Speaking on this occasion, ICAP President Ahmed Saeed said that this collaboration is an endeavor to offer dynamic routes of achievement to our brilliant youth. Work-integrated learning would provide a vibrant experience to all graduates, who would be well equipped to make a positive contribution in business, economic and financial sector of the country.” STAFF REPORT
Malaysian HC visits UCP
LAHORE: Dr. Hasrul Sani bin Mujtabar High Commissioner of Malaysia to Pakistan visited University of Central Punjab (UCP) along with his wife. He had a brief visit of different faculty and observed the working structure of the university. Within his address to Deans and Senior Faculty Members H.E appreciated the efforts being made by Punjab Group of Colleges in promoting the quality education in the country. H.E mentioned about potential & scope of collaborating Pakistani & Malaysian Universities, which Malaysia has already done with European, American & Japanese Universities. H.E committed his keen support for UCP in collaborating with likewise universities in Malaysia to offer new programs & training of the faculty. He believes that by doing such ventures the relation between two countries will further strengthen. While addressing H.E also mentioned about the up-coming grand Educational Expo of Malaysian universities to be held in Lahore & express his keen desire that Pakistani students should get the benefits from such international forums as they will not only get more information about studying in Malaysia but also become more familiar with Malaysian society at large. PRESS RELEASE
HBL approves Financial Statement for Dec 2012 KARACHI: The Board of Directors of HBL in its meeting held on 12 February 2013 reviewed the performance of the Group and approved the financial statements for the year ended 31 December 2012. The performance of HBL during the year under review was characterized by strong growth in deposits. The redeemable feature of the performance was an impressive growth in domestic and total deposits which stood at Rs.1,041 billion
KARACHI: Dunia Othman, Marketing Manager Nokia, Alessandro Lamanna, Vice President Marketing (IMEA), Arif Shafique, Country General Manager Nokia Pakistan, and others at the launch of windows phone. PR