PRO 13-11-2012_Layout 1 11/13/2012 12:52 AM Page 1
Tuesday, 13 November, 2012
‘Inflation will stick to single-digit this year’ ISLAMABAD
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APP
HE average inflation rate is projected to stay in single-digit during the current fiscal year (2012-13), indicating better economic conditions, increased consumer confidence, and reduction in prices for country’s people. “Overall in the current year (July 2012 to June 2013) the average inflation is expected to be in single-digits,” Advisor and Spokesman to Finance Ministry, Rana Assad Amin told APP. Consolidating his statement, he said that lowest-ever prices rise was recorded during last few months, showing a sign of stabilization of prices in the market and a much-awaited relief for the people and businessmen of the country. “Price increase in food and nonfood items has been slowing down for the past many months and in October 2012 price increase was at its slowest pace since January 2008,” he added. He attributed this achievement to government’s efforts in monitoring prices, ensuring continued supply of essential items, and tightly controlled economic policy. In the past, reductions in price increase have resulted in decrease in interest on bank loans while average interest rates have reduced from a high of 15% in 2008 to 10% in October 2012. “This means that for the same amount of loan, businesses are paying 50% less interest as compared to 2008 which is an encouragement for businesses to increase their production and reduce their borrowing costs.” The falling trend in price rise diverted investors to invest in equities of Pakistani businesses adding as of 2 November 2012, the Stock Exchange was trading at an all-time high of 16,000 + points. “This is the amount of investment that has never seen before in the history of Pakistan - demonstrating confidence of Pakistani people on the economy,” he added. Advisor to Ministry of Finance, Rana Asad Amin said that when the present government came to power in 2008, the economy was displaying a dismal picture, due to multiple external and internal shocks of extreme nature. Average price rise in August 2008 was 25% as compared to August 2007
Weekly inflation takes a plunge ISLAMABAD APP
The Sensitive Price Indicator (SPI) for the week ended on November 8, for the lowest income group up to Rs.8,000, registered decrease of 0.13 per cent as compared to the previous week. The SPI for the week under review in the above mentioned group was recorded at 181.77 points against 182.01 points registered in the previous week, according to provisional figures of Pakistan Bureau of Statistics (PBS). The weekly SPI has been computed with base 2007-2008=100, covering 17 urban centers and 53 essential items for all income groups and combined. The SPI for the combined group decreased by 0.15 per cent as it declined from 187.58 points in the previous week to
whereas on average items costing Rs100 in August 2007 were sold for Rs125 by August 2008. “The rapid price increase was a direct result of record high international oil prices and record borrowings by the previous government,” he added. He said that imprudent economic policies of the previous government resulted in an economic bubble-burst and where the country had to suffer a trade deficit of around $15 billion, which drastically depleted foreign reserves and forced the incumbent government to seek International Monetary Fund (IMF) assistance. In October 2012, the average food prices have increased by 5.8% as compared to October 2011 while overall
187.29 points in the week under review. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 4.52 percent. As compared to the last week, the SPI for the income groups from Rs.8001-12,000, 12,00118,000, 18001-35,000 and above Rs.35,000 decreased by 0.14 percent, 0.16 percent, 0.16 and 0.15 percent respectively. During the week under review average prices of 7 items registered decrease, while that of 17 items increase with the remaining 29 items’ prices unchanged. The items which recorded decrease in their average prices during the week under review included tomatoes, onions, red chillies (powder), chicken live (farm), vegetable ghee (loose), potatoes, moong pulse (washed).
The items which registered increase in their prices included gur, egg hen (farm), wheat, sugar, wheat flour (bag), tea (packet), bananas, LPG( 11 kg cylinder), firewood, masoor pulse (washed), georgette, washing soap, mash pulse (washed), energy savor, mustard oil, rice basmati (broken) and garlic. The items with no change in their average prices during the week under review included rice (irri-6), bread (plain), beef, mutton, milk (fresh), curd, milk (powdered), cooking oil (tin), vegetable ghee (tin), gram pulse (washed), salt powdered (loose), cooked beef, cooked dal tea (prepared), cigarettes, long cloth, shirting, lawn, sandal (gents), chappal (gents), sandal (ladies), electric charges, gas charges (upto 100m3), kerosene oil, match box, petrol, diesel, telephone local call and bath soap.
(combining food and non-food items), the price increase was 7.7% as compared to October 2011. Average inflation in 2008-09 was around 17% as compared to 2007-08 that was reduced to 11% in 2011-12 when compared against 2010-11 which was 13.7 %. The price thus reduced in 2011-12 despite unprecedented floods of July/August 2011 that resulted in loss of agriculture produce and disrupted supply at a massive scale. In the current year, consistent drop inflation is witnessed as it has reduced to single digits in July, August, September and October at 9.6%, 9.1%, 8.8%, and 7.7%. On average in the first four months
of this year (July-October) inflation has been recorded at 8.8% as compared to 11.3% in the same period last year. In these four months food inflation was 7.3% as compared to 12.9% last year, while non-food inflation was 9.7% as compared to 10.3% in the same period last year. Similarly, sensitive price index (of 53 items) has reduced to 7.6% in the first four months of this year, as compared to 9.6% last year. The prices in the wholesale (measured through whole-price index (WPI)) have reduced from 17.8% last year to 7.6% in the first four months of this year. This demonstrates availability of ample supply of commodities available at the stage of wholesale, and warrants to further reduction in inflation in the coming months. The core-inflation is also witnessing reduction since July of this year as it was 11.3%, 10.8%, 10.4%, and 10.8% in July, August, September and October respectively. A comparison of 53 essential eating items, suggest that the number of items in which prices have decreased or remained same, have been much more than the items in which price increase has been witnessed. In September 2012, the inflation (CPI) in India was 9.7%, Bangladesh 7.4% and Sri Lanka 9.1%. He said that all developing countries that depend on imported oil, including Pakistan were facing price rise.
MFBs asked to expand access to financial services ISLAMABAD APP
Deputy Governor of the State Bank of Pakistan (SBP) Kazi Abdul Muktadir on Monday asked the microfinance banks (MFBs) to take advantage of a favourable market environment by investing in innovative technologies and products in order to grow their businesses and expand access to financial services in the country. Speaking as a chief guest at the commercial launch of Branchless Banking by Waseela Microfinance Bank here, the SBP Deputy Governor stressed upon SBP’s broader goal to provide inclusive financial services to the poor and low income groups. “I firmly believe that microfinance and branchless banking are complementary to each other, and together they will bring the advantages of inclusiveness, convenience, ubiquity, and efficiency as Pakistan offers the best regulatory framework and industry infrastructure for microfinance,” he added. Abdul Muktadir said that the World Bank’s Consultative Group to Assist the Poor (CGAP), in one of its studies had also recognized Pakistan as one of the fastest growing branchless banking markets in the world, and a laboratory of innovation.
Doc to inaugurate economists’ moot ISLAMABAD APP
Finance Minister Dr.Abdul Hafeez Shaikh will inaugurate the three-day 28th Annual General Meeting and Conference of the Pakistan Society of Development Economists (PSDE) here at local Hotel today. According to a statement of the PSDE issued here on Monday, its annual moot is expected attendance of more than 500 economists, researchers, policy-makers and students of economics, senior government officials. The theme of this year’s meeting is “Economic Reforms for Productivity, Innovation and Growth”. The meeting will be inaugurated by Dr. Abdul Hafeez Shaikh, Federal Minster for Finance and highlight the economic vision of present government for the welfare of the people and prosperity of the country. Dr Rashid Amjad, ViceChancellor Pakistan Society of Development Economics (PIDE) and President, PSDE, will give the Presidential Address on the conference theme.
President fills a prescription for pharma industry Urges it to strive for excellence ISLAMABAD APP
President Asif Ali Zardari on Monday urged the national pharmaceutical industry to acquire international standards of quality control and make the label “Made in Pakistan” a symbol of pride for the country. Addressing a signing ceremony here at the Aiwan-e-Sadr to make the Drug Regulatory Authority Bill into a law, the President said that the act would ensure availability of safe and quality medical services at affordable prices to the people. He said that the law would help prevent the sale of fake, sub-standard and non-registered medicines and stop hoarding by creating an autonomous drug regulatory authority. The President gave his assent to the bill at the special ceremony, which was attended among others by Minister for National Regulations and Services Dr. Firdous Ashiq Awan, federal cabinet members, parliamentarians and representatives of the pharmaceutical companies. President Zardari said that Shaheed Zulfikar Ali Bhutto promulgated the first Drug Act of 1976. The credit goes to this
coalition government to establish for first time the Drug Regulatory Authority (DRA) in the country like the developed countries, he added. He said that the DRA would ensure protection of the interests of the people and the pharma industry. He said that the industry had grown over the past decades and now it was time to take the next step in the technology. The President stressed the need to broaden base for research and development and said that bio-technology was the engine of growth of the present century. “Our pharma industry needs to harness this technology and the academia needs to work closely with the industry to ensure timely infusion of related knowledge.” He stressed on the pharma industry to focus on acquiring international standards of quality control and called for adopting corporate culture within the regulatory system. The President called for expanding the scope of pharma exports and making new advancements in the area. He congratulated the Parliament and all political parties and said that the unanimous adoption of the Drug Regulatory Authority Bill was a sign of wisdom and maturity of the Parliament and all political
parties. He said that all the provincial assemblies and governments deserved to be commended for agreeing to permit the federation make the important legislation for the benefit of all. It is a measure of their political maturity, he added. The President said with the availability of cheap labour, necessary skills and other opportunities, there was no reason Pakistan’s pharmaceutical companies could not make their presence felt in the international markets. He complimented Dr. Firdous Ashiq Awan and her team, especially Dr. Suhail Siddiqui, for their commitment and untiring efforts towards materializing such an important legislation. The President also distributed certificates among various pharmaceutical companies that achieved distinction in various pharma related fields. Later briefing the media persons, spokesperson to the President Senator Farhatullah Babar said that a conscious and deliberate effort was made during the past several months to involve all the stakeholders in the finalization of the Drug Regulation Authority Bill. He said that the Pharmaceutical Association, the Pharma Bureau and the Pakistan Chemists and Druggists Association in ad-
dition to the standing committees of the National Assembly and Senate were included in the broad-based consultation and dialogue process to arrive at a consensus. Minister for National Regulations and Services Dr. Firdous Ashiq Awan, in her speech, said that the DRA had been designed along the lines of such bodies in advanced countries like the US and Canada to protect the interests of the patients, the pharma industry and officials working in the authority. She said that the pharma industry in the country had grown over the past decades,
from just a few manufacturing units at the time of independence, to over 600 well developed units. She said that the PPP leadership supported the underpriveliged by bridging the gap between the rich and the poor and provision of quality drugs at affordable rates was part of the manifesto of the PPP in the 2008 general election. Dr Firdous said that the government was working on a strategy for the Drug Pricing Policy, the Policy of Import and Export of Drugs, and low markup on export of drugs financing.
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Business 02 Remittances swell beyond record $1.365 billion month-on-month KARACHI
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STAFF REPORT
HE Pakistanis working abroad remitted a historic $1.365 billion during the month of October, reported the central bank Monday. This, the State Bank said, registered a “tremendous jump” of $347.23 million or 34.11 percent compared to $1.017 billion the country had received during the same month last year. “The continued growth in 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 regulator. The previous highest amount remitted in a single month by overseas Pakistanis was recorded in August 2011 when they sent home $1.310 billion, the bank recalled. The remittances received from all countries of the world showed an impressive growth during last month, it said. In October, the inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $347.52 million, $293.74 million, $217.56 million, $197.18 million, $163.37 million and $37.48 million, respectively. The corresponding month in 2011 had seen a respective inflow of $291.20 million, $216.50 million, $167.60 million, $117.56 million, $131.54 million and $28.08 million. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the fourth month of FY13 was recorded at $108.25 million as against $65.39 million received last year.
An year-on-year account shows that the overseas Pakistanis remitted over $4.964 billion during the first four months (July–Oct) of the current fiscal year, showing a growth of 15.04 percent or $649.14 million compared with $4.315 billion received during the corresponding period of FY13. The inflow of remittances in July‐ October, 2012 from Saudi Arabia, UAE, USA, UK, GCC countries and EU countries amounted to $1.308 billion, $1.046 billion, $841.28 million, $697.33 million, $559.51 million and $134.53 million, respectively. This was compared to last year’s inflows of $1.145 billion, $963.12 million, $795.35 million, $486.92 million, $486.15 million and $129.81 million from the same destinations in July-Oct 2011. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the review period was counted as $ 376.12 million as against $308.34 million received last year. The monthly average remittances for July-Oct 2012 period comes out to $1.241 billion as compared to $1.078 billion during the corresponding period of the last fiscal year. Attributing growth in remittances to PRI, the SBP said since its inception, the Initiative had taken a number of steps to enhance dollar inflows 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 (021-111-222774) with toll free lines, separate web site etc.
Auto sales down 32% in 4MFY13 KARACHI STAFF REPORT
The sales of car, including LCVs, vans and jeeps, declined by 32 percent to 39,938 units during 4MFY13 compared to 58,801 units in the same period in FY12. October saw the car sales contracting further to the 16-months low to 9,397 units, which are down three percent from last month and 38 percent from last October. “We attribute subdued sales to termination of ‘Coure’, ‘Alto’ and taxi scheme in addition to large inflow of imported CBUs impacting locally assembled cars,” viewed Topline analyst Zeeshan Afzal. Amongst individual companies, Pak Suzuki (PSMC) sales declined by 35 percent to 22,753 units as against 34,877 units sold in the same period last year. During the review month, the company’s sales stood at 5,094 units down 40 percent from 8,462 unit in the same month last year while have declined by 16 percent from 6,042 units last month. Similarly, during 4MFY13, Indus Motor (INDU) sales declined to 11,003 units, 38 percent down compared to same period last year. However, on monthly basis, INDU car sales picked up to 2,704 units in October, up 28 percent MoM. “Rise in sales is attributable to 22 percent MoM growth in ‘Corrola’ sales to 2,155 units and 57 percent MoM growth in ‘Hilux’ to 549 units,” said Afzal.
Major Gainers OPEN 3600.00 488.51 279.74 147.50 113.40
COMPANY Unilever Food Island TextileXD National FoodsXD Pak.Int.Cont. SD Sunrays TextileXD
HIGH 3780.00 512.93 293.72 154.87 119.07
LOW 3780.00 512.93 277.51 149.90 119.07
CLOSE CHANGE 3780.00 180.00 512.93 24.42 293.72 13.98 154.87 7.37 119.07 5.67
TURNOVER 20 200 43,000 41,800 500
320.10 180.00 228.00 1380.00 157.00
317.00 175.99 224.00 1259.00 147.05
317.00 177.00 224.83 1319.50 149.17
-13.00 -6.74 -6.20 -5.50 -4.72
1,000 40,700 1,400 300 7,800
6.60 7.86 6.79 16.14 53.44
5.99 7.30 6.49 15.71 52.31
6.45 7.59 6.64 16.14 53.25
0.54 0.54 0.11 1.00 0.60
17,502,000 17,365,000 11,490,000 11,419,500 7,317,500
Major Losers Exide (PAK) Sitara ChemicalXD Atlas Battery Ltd. Bata (Pak) XD Pak Gum & Chemical
330.00 183.74 231.03 1325.00 153.89
Volume Leaders JS Bank Ltd Azgard Nine Fauji Cement Jah.Sidd. Co. D.G.K.CementXD
5.91 7.05 6.53 15.14 52.65
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.9258 152.4644 1.2077 121.8929
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
96.00 120.64 150.63 1.1909 94.62 12.17 25.90 25.29 98.57
96.50 122.79 153.28 1.2118 96.79 12.41 26.33 25.69 101.76
CORPORATE CORNER ‘Bolo Pakistan Offer’ Pakistan’s lowest daily charges for 24hrs calls
tries with call rate of just 48 paisas/20 Sec for 16 destinations while 1.50/20 sec for 15 destinations. Both Warid prepaid and postpaid customers can subscribe this offer by sending SMS ‘ON’ to 4343. The detailed list of destinations is available at waridtel.com . Warid users can also share International MMS with their friends and relatives in 175 countries all around the globe.
KARACHI: Indus Motor Company Limited (IMC) has successfully completed production of 500,000 vehicles in Pakistan. The event was celebrated by a ribbon-cutting ceremony performed at the Indus Motors plant. (L-R) Mr M Okimoto, Director Technical, IMC, Mr Farhad Zulfiqar, Vice Chairman HOH, Guest of Honor Mr Funo, EVP, TMC, Chief Guest Dr Abdul Hafeez Shaikh, Mr Ali S Habib, Chairman, IMC, Mr Shimizu, Chairman, TTC, Mr K Hyodo, VC, IMC and Mr Parvez Ghias, CEO, IMC
Bonanza: Styling winter with exquisite, sophisticated and elegant designs KARACHI: Bonanza Garments introduced their Fall/winter collection 2012 in 5 different designs with 2 color ways each, accompanied by exclusive embroidered fronts, motifs & Borders, ornamented by exquisite crochet laces in the highest quality Pure Wool, Silk, Khaddar and Cambric at the launch of their 4200 Square Feet Outlet at Dolmen City Mall, Clifton.Along with the fall/winter collection the outlet displays “Designer Series Limited Edition Winter Collection” and signature styled Sweaters in pure Lamb’s wool, Cashmere & Merino, Coats and overcoats in wool and cashmere blend to keep you warm throughout this winter! Established in 1976 with a handful of machines, Bonanza has successfully earned the trust and confidence of all its consumers, employees, communities and well wishers through Quality product, innovation, beautiful designs and accessibility.
KARACHI: November 12, 2012: Pakistan State Oil organized a CNG safety awareness drive at PSO CNG stations. The objective of this campaign is to raise public awareness regarding CNG safety requirements and installation/maintenance of CNG cylinders and kits. On this occasion, Mr Khalid Mehmood, General Manager, Gaseous Fuels-PSO is seen interacting with a customer.
Net income of Al Baraka Banking Group rises by 10% MANAMA: The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that it has achieved a net income of US$ 183 million in the first nine months of 2012, an increase of 10% on the net income achieved in the first nine months of 2011. Similarly, statement of financial positions witnessed good increases. Total assets increased by 7%, investments and financing portfolio by 13%, deposits by 7% and total equity by 7% as at the end of September 2012 as compared with the end of December 2011. These results affirm the continuation of the Group’s excellent financial performance based on the prudent business strategies, by which, the Group was able to overcome the negative effects of global and regional economic and political conditions and to further expanding of business, branch network and to enter new markets.
WASHINGTON:Tara Uzra Dawood, President of Dawood Global Foundation and Founder of LA DIESFUND, spoke on “Supporting women entrepreneurs around the world: challenges and opportunities” at the World Bank’s Finance and Private Sector Development Forum ( http://go.worldbank.org/P6YREZ3I10) in Washington, DC.
Warid drops international call rates for 31 countries KARACHI: Warid Telecom today announces the discounted call rates for International calling for 31 coun-
KARACHI: Consul General of Malaysia in Karachi’s wife Hidia Muin providing tips to Pakistan celebrity chef Saadat Siddiqi in preparing Malaysian prawnsambal in grand finale of 20 episode cooking show Malaysian Palm Oil- Mood for Food, which was organized by Malaysian Palm Oil Council along with collaboration with local TV channels at Rumah. Pakistan is the second largest importer of Malaysian Palm Oil which is of Malaysian 80 percent export to Pakistan. In 2011, Pakistan imported palm oil of worth $ 2 billion dollar from Malaysia.
LONDON:Hashoo Foundation Founder Sadruddin Hashwani; Synergos’ Founder and Chair, Peggy Dulany and Hashoo Foundation Chairperson, Sarah Hashwani at the University for a Night event in London.
LAHORE: Brig (R) Imran Malik shares his views with the audience during a seminar on the Balochistan unrest held at UMT, Lahore. Also seen on stage Abid H K Shirwani, Director External Affairs, Dr Abdul Hameed, Dean, School of Social Sciences and Humanities, and Brig (R) Farooq Hameed Khan.
Brighto Paints introduces new branch in Lahore
LAHORE: Recently, 5th Branch of “Brighto All Color Studio” was inaugurated in Model Town K- Block, Lahore. Sahibzada Saif-urRehman President Model Town Society and Khawaja Ijaz Ahmad Sikka Chairman Brighto Paints were the chief guests on this occasion. Whereas, Khawaja Khurrum Shehzad Sikka Director Production & Operation, Khawaja Zain Ijaz Sikka Director Sales and All Color, Sajid Hussain General Manager Marketing, Umer Ubaid Brand Manager, Ahmad Chattah National Sales Manager along with Higher Authority Officers and people from different fields of life also participated.
ISLAMABAD: Ufone one of the leading cellular operators in the country recently launched Pakistan’s lowest daily charges call offer. The telecom industry seems to be the only sector where the customers are truly benefiting and getting value for money. Ufone customers will soon be reaping advantages of unlimited calls, 24hrs a day on all on net calls. The offer will help customers better manage their expenses.
LAHORE: Head of HHP and IT Samsung Pakistan, Mr. Roy chang receiving the souvenir from President Punjab Olympic Association Syed Shahid Ali at Samsung 5th inter Schools and Colleges Games.
ChenOne launches LaAtrium LAHORE: ChenOne Group has brought forward another recreational affluence with the grand launch of its restaurant LaAtrium in Lahore. The restaurant has been put up adjacent to the ChenOne Gulberg Store in the metropolis. According to an official source ChenOne has substantiated the idea of healthy and hygienic cuisine in a perfectly unruffled ambience.
ISLAMABAD: PTCL Senior Executive Vice President (SEVP) Business Zone Central, Jamal Abdalla Salim Hussain Al Suwaidi at the inauguration ceremony of PTCL distributor, Smartel Communications’ premises. PTCL General Manager Commercial-Central; Awais Javaid and CEO Smartel, Muhammad Zafar Iqbal can also be seen in the picture.
Tuesday, 13 November, 2012