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Thursday, 13 September, 2012
ALLURING INVESTORS, ARE WE? Pakistan’s strong economic indicators, attractive for foreign investment in power, oil sectors TIANJIN
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RIME Minister Raja Pervez Ashraf on Wednesday, mentioning Pakistan’s strong economic indicators, said the country was an attractive zone for foreign investment, particularly in power, oil and gas exploration and infrastructure development sectors. The Prime Minister expressed these views while leading a discussion of the Business Interaction Group on Pakistan at the Meijiang Convention Centre the venue of ongoing World Economic Forum’s Annual Meeting of New Champions. Dilating upon Pakistan’s macro-economic stability and liberal investment policy, the Prime Minister said country’s economic consistency, openness and predictability in policies were vital factors in providing foreign businessmen an enabling environment for their investment. He said his government was com-
PTCL going great guns Shows impressive growth, posting revenue of Rs 60 billion for FY 2011-12 ISLAMABAD Staff RepoRt
Country’s leading integrated telecommunication services provider, Pakistan Telecommunications Company Limited (PTCL), has posted net profit of Rs. 7.24 billion in FY 2011-12. The company also showed a steady growth of 9% in revenue. The annual accounts were announced at the company’s Board of Directors meeting. “The positive growth of PTCL’s revenue streams points to our dynamic corporate identity and strong customer base,” said PTCL CEO & President, Walid Irshaid, following the company’s Board of Directors meeting. “Our dynamic corporate leadership and talented human capital has cascaded into PTCL’s impressive financial strides and rising shareholder value”, said Mr. Irshaid. According to the PTCL BoD announcement, PTCL’s group revenue stood at Rs.110.8 billion during the period under review, showing a growth of 8% over 102.6 billion. The telecom giant has yet again proved that it is the leader of the telecommunication sector of Pakistan by posting impressive profits despite a sluggish economy. The company’s market share in the broadband, wireless and specialized telecom solutions segments has increased in the current fiscal year through introduction of state-of-the-art products and unmatched affordable services. PTCL achieved country’s first One Million Broadband customer’s mark in May 2012. PTCL’s capable workforce continued to bring laurels for the company by winning the prestigious international “ESRI Award” for innovation in GIS technology. PTCL is continuing its digital revolution, bringing underserved areas into the national telecom loop by launching telecommunications services in Azad Kashmir making it the 18th Telecom region of PTCL. “PTCL believes in bringing a unique customer experience by offering sophisticated products and improved service delivery” said Mr. Irshaid, while reflecting on the extraordinary achievements of PTCL. “We will continue our role of a socially responsible telecom leader by introducing ever more flexible and innovative telecommunications solutions to the masses”, he said.
mitted to facilitation of business, reforms and deregulation in pursuance of its economic philosophy. He mentioned Pakistan’s strategic location next to three important regions - South, Central and West Asia, that provided a shortest access to the energy-rich and fast developing Central and Western Asia. He said for the economic world, the country could prove a bridge, linking to multiple corridors of cooperation in energy, trade, investment, transportation and tourism. Prime Minister Ashraf said due to macro-economic stability, the country’s economy was expected to grow by over four percent this year. He said country’s banking sector had withstood the global financial crisis of 2008 with the help of its exports that grew by 30 percent in 2011. On liberal investment policy, he said all sectors of economy were open to Foreign Direct Investment (FDI). In addition, there was no restriction on equity as foreigners were permitted hundred percent foreign equity, statutory protection, and high rates of return accrued to investment. He said there were institutional safeguards provided in the system like Compet-
itive Commission, the Security and Exchange Commission and Central Bank. He said Pakistan had a non-discriminatory investment policy for all countries. The Prime Minister said Pakistan was a country of 180 million with a growing middle class and an increasing demand for goods and services. He mentioned that abundant and unexploited natural resources including coal, oil, gas, water and irrigation systems and minerals had great potential of exploration. He said investment in power sector could be made in the areas of solar, wind, renewable energy, solar tubewells, hydro and thermal power generation. He said opportunities also existed in modernization and refurbishment of ports and railways. He informed the Business Group that a Korean company had shown interest in constructing a 300 mega watt solar power plant in Balochistan. To a question, the Prime Minister said Pakistan was working to have good relations with India including trade ties. He mentioned the recent visit of Indian External Affairs Minister S.M Krishna to Pakistan and the discussions carried out on easing the visa regime and cooperation in agriculture sector.
Asian markets rise ahead of US Fed meeting HONG KONG afp
Asian markets rose and the dollar remained subdued against the yen Wednesday ahead of a US Federal Reserve meeting most economists expect will deliver fresh stimulus to kickstart the economy. Comments from China’s prime minister hinting at new monetary easing also provided a fillip, while traders are confident of a positive verdict in Germany as judges are due to rule on whether Berlin can legally take part in the eurozone’s bailout fund. Tokyo surged 1.46 percent by the break, with much better than-expected July economic data helping to lift sentiment, while Hong Kong jumped 0.94 percent, Sydney advanced 0.80 percent, Shanghai climbed 0.16 percent and Seoul added 1.39 percent. The US Fed will later begin its two-day policy meeting, after which there is a wide expectation it will unveil new measures to spur growth, with most analysts tipping a third round of bond-buying, or quantitative easing. On Wall Street the Dow was up 0.52 percent and the S&P 500 rose 0.31 percent while the tech-rich Nasdaq was flat. Adding to buying incentives were data showing the US trade deficit was virtually unchanged in July from June, an unexpected reading although the figures showed imports and exports dropped due to a global slowdown. “Market sentiment is very positive,” said Brett McGonegal, chief executive officer at Reorient Financial Markets in Hong Kong. “Once people get into the buying mood it is not a oneday event, we could have an overall buying appetite that could absorb a shock,” he told Dow Jones Newswires. But with the likelihood of more dollars flooding the market
the currency retreated in New York from recent highs against the yen and stayed weak in Tokyo. In early Asian trade it bought 77.91 yen, against 77.73 yen in New York late Tuesday. In Asia on Tuesday the greenback was buying around 78.20 yen. However, also weighing on the unit was a warning from Moody’s that it would downgrade the United States’ AAA credit rating if lawmakers did not get the country’s debt situation in order. Late Tuesday Chinese Premier Wen Jiabao said the world’s number two economy “was showing signs of stabilising” and would likely meet the 7.5 percent growth the government set for the year. “We will, according to economic trends, make full use of the advantage of having relatively big space for fiscal and monetary policy (moves),” he said. Wen later emphasised that despite a slowdown in government revenues, the government has about a one trillion yuan ($158 billion) surplus on its balance sheet and around 100 billion yuan in what he called “stability and adjustment funds”. The government “will not hesitate to use” such money, he following a speech to the World Economic Forum in the eastern city of Tianjin. The comments suggested Beijing was ready to announce new measures to boost spending in China — a key driver of regional growth — such as lowering the amount of money banks must keep on reserve, or even cutting interest rates. In Germany later Wednesday eight judges of the country’s Constitutional Court will rule on the legality of the European Stability Mechanism (ESM) set up to help under pressure nations. While the court has a history of ruling in favour of steps towards greater European integration, a negative decision could blow the entire euro project apart, owing to Germany’s key role in financing future rescues.
Traders unite! ‘Business community contacts can play vital role in boosting trade, in SAARC region’
ISLAMABAD oNLINe
Leader of the House Senator Jahangir Badar has said that enhancing people to people contacts particularly business community can play vital role in boosting trade and business in the SAARC region. Jahangir Badar expressed these views while talking to a delegation of SAARC chamber of commerce and industry and their business leaders who called Leader of the house and Leader of the Opposition in Senate, Senator Ishaq Dar at Parliament House here on Wednesday. Both Pakistani political leaders assured them that SAARC business leaders and SAARC countries would be extended mutual respect and cooperation especially for business activities. The Leader of the House said that it is need of the time keeping in view the global changes that atmosphere of peace and harmony in the mutual interest to be created for eradication of poverty, unemployment, terrorism from the SAARC region and to organize South Asian world for the coming generations of the highest populated region in the world. The business leaders of the SAARC countries have invited both Leader of the House and Leader of the Opposition in Senate to visit SAARC countries one after the other and increase the interactions in this regard to make SAARC region a hub of trade and development activities for ultimate progress, prosperity and uplift of the people of the region.
REMITTANCES GROW ‘Pakistani diaspora remittances grew by 2.36 % in two months’ ISLAMABAD app
The overseas Pakistani workers remitted an amount of $2,463.69 million in the first two months (July - August) of the current fiscal year showing a growth of 2.36 percent received in the same period of last fiscal year. “This shows a growth of 2.36 percent or $56.91 million as compared to $2,406.78 million received during the same period of last fiscal year”, a statement issued by the State Bank of Pakistan (SBP) said. The statement of the Central Bank said that the inflow of remittances in July and August in 2012 from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $657.78 million, $505.80 million, $446.61 million, $334.06 million, $274.09 million and $63.57 million respectively as compared to the inflow of $601.62 million, $552.11 million, $458.45 million, $282.45 million,
$250.76 million and $74.97 million respectively in July-August 2011. It further said that Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first two months of current fiscal year (July-August FY13) amounted to $181.78 million as against $186.42 million received in the first two months of last fis-
cal year (July-August FY12). The monthly average remittances for July-August 2012 period comes out to $1,231.85 million as compared to $1,203.39 million during the corresponding period of the last fiscal year. An amount of $1,258.98 million was remitted by Overseas Pakistanis in August 2012 as against $1,310.47 million in the same month of the last fiscal
year (August 2011). In August 2012, the inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $308.12 million} $265.26 million, $231.31 million, $185,57 million, $133.73 million and $32.74 million respectively as compared with the inflow of $309, 79 million, $294.46 million, $263.58 million, $163.90 million, $134.31 million and $42.38 million respectively in August, 2011. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the second month of current fiscal year (August FY13) amounted to $102.25 million as against $102.05 million received in the second month of last fiscal year (August FY12). The continued growth in workers’ remittances is the result of the efforts made by Pakistan Remittance Initiative (PRl) in collaboration with other stakeholders to facilitate both Overseas Pakistanis and their families back home.