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Thursday, 16 August, 2012
Pour some sugar on me… and soon Pakistan –Tajikistan sign sugar trade agreement ISLAMABAD
P
ONLINE
akistan and Tajikistan have signed sugar trade agreement under which 30,000 metric tons white refined sugar will be exported to Tajikistan and for the purpose delivery will be in three tranches of 10,000 MT each. While concluding the Pakistan-Tajikistan extensive meetings held on Monday and Tuesday between Agency on State Material Reserves of Tajikistan Chairman Nurmahmad Akhmedov and Commerce Minister Muhammad Makhdoom Amin Fahim. Sugar will be exported to Tajikistan against 100 per cent secured cash letter of credit (LC) to be opened by the government of Tajikistan through any first class internationally recognized bank. According to official handout, both the parties have, after thorough negotiations, agreed upon a draft commercial agreement except the provision of domestic transportation of sugar
from mills to the point of delivery which will be finalized as soon as the clarification, sought by the Ministry of Commerce from the ECC of the Cabinet of government of Pakistan, will be received. The sugar will be exported at preferential rate of US$20/ PMT, lower than the international market
price, (US$ 548.25 PMT as on 13th August, 2012day of negotiations) in the wake of humanitarian crisis faced by the people of Tajikistan. Pakistan on request of government of Tajikistan, agreed to provide 30,000 Metric Tons of white refined sugar through Trading Corporation of Pakistan (TCP) in compliance with the Economic Coordination Committee (ECC) of the Cabinet’s decision. The government of Tajikistan, while appreciating the goodwill gesture of Government of Pakistan, requested for early delivery of sugar to Tajikistan i.e. before the onset of winter season 30th September, 2012). Pakistani side agreed to fulfill the commitment within shortest possible time. “The two sides also agreed to the point of delivery would be Amangarh, district Nowshera (KPK) and in this regard a commercial agreement between the two parties will be signed within next 15 days,” it said, adding, on the proposal of Secretary Commerce, the two sides agreed to explore the potential of bilateral trade between the two countries and will have a technical level meeting soon.
Green or gone Asia’s booming cities must go green or risk disaster: ADB
Basically we owe IMF a lot of money No improvement in foreign exchange reserves for three years due to IMF repayments
ISLAMABAD APP
Asia must act now to pave the way for green resource-friendly cities or face a bleak and environmentally degraded future, said a new Asian Development Bank (ADB) report. In a special chapter of its flagship annual statistical publication, ‘Key Indicators for Asia and the Pacific 2012,’ ADB examined the challenges and opportunities associated with the region’s breakneck urban boom. It also details measures needed to turn cities into environmentally sustainable, inclusive growth centers. Since the 1980s, Asia has been urbanizing at a faster rate than anywhere else, with the region al-
to pay $340m fine to New York bank regulator
ISLAMABAD ONLINE
The country’s foreign exchange reserves will continue to face mounting pressure in next two to three years due to repayments of installments to the International Monetary Fund (IMF). Pakistan is likely to knock the door of International Monetary Fund for another loan in current financial year 2012-13 in order to retire IMF’s Standby Arrangement (SBA) facility. According to an official the burden of subsidies and higher security-related expenditures have badly affected the country’s fiscal system and adjustment path. The government also failed to focus on growth-oriented policy for reducing unemployment in the country besides borrowing that needed to be reduced in order to further bring down the interest rate. An official said the economy of the country has been badly hit by huge government borrowing, power and gas crisis and uncertain political and law and order situation. The official said more foreign inflows were expected in the coming months from other donors especially after improvement in relations with the US. The US also disbursed $280 million for the energy. The amount received $1.18 billion in Coalition Support Fund (CSF) from the US gave some space to the country’s economic trouble shooter to repay installments to the IMF on monthly bases.
ready home to almost half of all the world’s city dwellers, it said. The report added that in just over a decade, it will have 21 of 37 mega-cities worldwide, and over the next 30 years another 1.1 billion people are expected to join Asia’s already swollen urban ranks. This breakneck expansion has been accompanied by a sharp rise in pollution, slums, and widening economic and social inequalities, which are causing rapid environmental degradation. Particularly disturbing are urban carbon dioxide emissions, which if left unchecked under a business-as-usual scenario, could reach 10.2 metric tons per capita by 2050, a level which would have disastrous consequences for both Asia and the rest of the world. Rising urban populations mean that over 400 million people in Asians cities may be at risk of coastal flooding and roughly 350 million at risk of inland flooding by 2025. Unless managed properly, these trends could lead to widespread environmental degradation and declining standards of living.
British bank agrees to settlement over accusations that it hid billions of pounds’ worth of transactions from authorities NEWS DESK The British bank Standard Chartered has agreed to pay a $340m (£220m) fine to a US regulator which had accused it of to hide billions of pounds’ worth of transactions from the US authorities, leaving the financial system susceptible to “terrorists” and “drug kingpins”. The last-minute settlement – just hours before the bank had been due to appear before the New York department of financial services (DFS) – came after the bank’s chief executive, Peter Sands, to take direct control of the situation and despite his insistence that the allegations contained inaccuracies. The fine is the latest embarrassment for a UK bank, following the penalties slapped and . It is particularly damaging for Standard Chartered – which is based in London but best known for its banking services in Asia and Africa – as its management, led by Sands, had been boasting just two weeks ago that it was “boring” and had a more conservative culture than its rivals. A week ago, the DFS said that Standard Chartered had left the US financial system “vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity”. Led by Benjamin Lawsky, the DFS said that the two parties had agreed that the problems included transactions of at least $250bn.
This is the sum that he had included in his order last Monday. The bank conceded that $14m of transactions broke the rules and apologised for them. A hearing with the DFS originally scheduled for Wednesdayhas now been adjourned, but the bank may face penalties from other US authorities which are still investigating breaches of sanctions on Iran covering the period 2001 to 2007. There were suggestions last night that the $340m was half the fine the DFS had asked for. The bank said that a “formal agreement” with the DFS was expected to be completed shortly and that it was continuing to work with other . The DFS alleged last week that one senior banker remonstrated with a US colleague using the words “you fucking Americans” when warned of the potential breaches of US sanctions. The bank was wrongfooted and took eight hours to respond publicly. US regulators have traditionally worked together when investigating alleged breaches of rules and Lawsky indicated that the DFS would work with the other bodies involved, including the US Treasury, the Federal Reserve, the New York Justice Department and the District Attorney. New York governor Andrew Cuomo said he had created the DFS last year because “we believed that New York needed a tough and fair regulator for the banking and insurance industries to protect consumers and investors”. Courtesy: The Guardian
Dollar firms after bright US, European data TOKYO APP/AFP
The dollar firmed against the yen in Asian trade Wednesday, lifted by promising US and European macroeconomic data, amid thin trade while investors stayed away for summer breaks. The greenback stood at 78.81 yen, firming from 78.73 yen in New York Tuesday afternoon. The euro was at $1.2328 and 97.14 yen, nearly flat from $1.2321 and 97.01 yen in New York. “Risk appetite isn’t bad,” a senior trader at a major bank in Japan told Dow Jones Newswires. The euro was seen to hover between $1.2250 and $1.2350 with bias on the downside after eurozone GDP figures contracted in the second quarter, the bank trader said. “It feels like the pair has topped-out,” he said. Meanwhile, the dollar could climb above 79.00 yen, if more US data fuel optimism and if the upward trend of long-term US Treasury yields remain intact, said Masafumi Yamamoto chief forex strategist at Barclays in Tokyo. The market will also watch for any impact from regular US Treasury coupon payments Wednesday, he told Dow Jones Newswires.
It’s getting bigger every second… Govt urged to control trade deficit LAHORE APP
The Lahore Chamber of Commerce and Industry Wednesday urged the government to prepare a new policy in consultation with the private sector to effectively control the widening trade deficit and increase exports. LCCI President Irfan Qaiser Sheikh said here that the government should ban unnecessary import of luxurious items, adding that increase in trade deficit would have dire consequences for country’s economy therefore all future trade policy initiatives should be taken while keeping in view this problem. At the same time, he said, the government should also facilitate exporters and implement all trade facilitations in letter and spirit enshrined in trade and textile policies. Pakistan cannot sustain a high and growing trade deficit therefore the trade should be developed in close coordination with chambers of commerce. The chamber’s president said growing trade deficit, led by 4.7 percent decline in exports, was posing a key challenge to macro economic stability of the country, besides converting it into a consumer society. Trade deficit and inflation might dent country’s debt payment capacity that was not good for overall economy. He said apart from cutting the cost of doing business in Pakistan, the government would have to evolve a long-term strategy to make its products attractive in the global market to increase its exports. Irfan Sheikh suggested the departments concerned to join hands with private sector for finding out a methodology to scale up exports’ graph that was a prerequisite to control trade deficit.
SBP injects Rs 75.550 billion KARACHI APP
State Bank of Pakistan (SBP) in its reverse repo open market operation (2 and 9 days) in treasury bills and Pakistan Investment Bonds has injected Rs 75.550 billion in the banking system. According to SBP here Wednesday, the offered amount was Rs 75.550 billion while the rate of return for two day stood at 10.10 percent per annum and for nine days 10.09.
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Business 02 Oh sO Many Bulls! Bulls sway LSE, impact ISE as well LAHORE/ISLAMABAD
T
APP
HE bulls on Wednesday swayed Lahore Stock Exchange by once again overpowering the bears, as the Exchange gained huge 118.45 points with the LSE-25 Index opened at 3768.53 and closed at 3886.98 points. The market’s overall situation, however, did not correspond to an upward trend as it remained at 4.389 million shares to close against previous turnover of 4.865 million shares, showing an upward move of 476,400 shares. While, out of the total 79 active scrips 28 moved up, 39 remained equal and 12 shed values. Pakistan Petroleum Limited, Treet Corporation Limited and Fecto Cement Limited were Major Gainer of the day by recording increase in their per share value by Rs 5.26, Rs 2.85 and Rs 1.08 respectively. Engro Corporation Limited, Cherat cement Company Limited and Lucky Cement Limited lost their per share value by Rs 3.00, Rs 1.85 and Rs 1.20 respectively. The Volume Leader of the day included Lafarge Pakistan Cement with 2.170 mill i o n shares,
Oil prices
lowerin Asian trade
SINGAPORE AFP
World oil prices eased in Asian trade Wednesday as data showing weaker US energy demand prompted traders to sell, analysts said. New York’s main contract, West Texas In-
Fauji Cement Company Limited with 897,000 shares and Fatima Fertilizer Company with 217,500 shares. ISE-10 STayS bullISh: Islamabad Stock Exchange (ISE-10) here on Wednesday witnessed bullish trend as the index gained 11.28 points to close at 3021.00 as compared to the previous day’s trading. Talking to APP, Stock Analyst, M.M Hassan said that the banking sector had led the bullish rally in the local stock market. The National Bank of Pakistan (NBP) and NIB Bank were remained the most traded scrips because the investors have taken major positions, he added. However, the result season has begin and whatever results announced till to-date by the companies were the beyond expectation of the market, he said, adding the such positive aspect will bring positive activities in the capital market in the future. Total volume of shares traded was 103,000, which was down by 78,500 as compared to the previous day’s closing. Out of 129 companies’ shares traded, the price of 80 was increased while the price of 49 decreased. The price top gainer Siemens Engineering was increased by Rs.30.00 while the price of top loser decreased by Rs.12.50. NIB Bank Ltd, Fauji Cement Co Ltd and NBP remained volume leaders onWednesday, with volume of 56,000, 35,500 and 6,000 shares respectively. termediate light sweet crude for delivery in September, fell 25 cents to $93.18, and Brent North Sea crude for September dropped 34 cents to $113.69 in the morning. “Oil was really overbought,” said Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultants, referring to a price rise overnight. Data from the American Petroleum Institute showing an “unexpected” rise in crude oil inventories in the world’s biggest economy gave traders a reason to sell, Shum told AFP. A rise in inventories is a sign of softer energy demand. “Oil futures are continuing to look for direction,” Shum said, adding that concerns over the violence in Syria unsettling the oil-producing Middle East region was likely to keep upward pressure on prices. For Brent oil, which is traded in London, production disruptions due to scheduled maintenance in North Sea oilfields next month are expected to result in tighter supplies and higher prices, he said. On the other hand, the eurozone debt crisis remains a concern for investors and although growth in key European countries came in above expectations, such expectations had been “low to start with,” Shum added.
Extending the Greek tragedy? Greece to ask for austerity-plan extension: FT LONDON AFP
Prime Minister Antonis Samaras will call for an extension to Greece’s austerity programme when he meets with Angela Merkel and Francois Hollande next week, the Financial Times reported on Wednesday. Samaras will hold talks with the German chancellor and French president in Berlin and will suggest that public spending cuts be spread over four years instead of two, according to a document seen by the paper, Greece is currently scrambling to find budget cuts — amounting to around five percent of GDP — to be implemented in 2013 and 2014 as part of its existing bailout deal with the European Union and International Monetary Fund. Greece raised 4.063 billion euros ($5 billion) in a sale of three-month treasury bills on Tuesday, paying a modestly higher rate of 4.43 percent, the public debt management agency said. The extraordinarily large sale should help the Greek government avoid a cash crunch, according to a finance ministry source, as it faces redemption of a 3.2billion-euro bond held by the ECB which expires on August 20 and awaits the next installment of its EU-IMF bailout package. Greece has been shut out of the long-term debt markets since 2010 and has regularly issued short-term debt. Relying for its economic survival on EUIMF bailout loans, Greece is waiting for the next installment of nearly 31.5 billion euros as a political deadlock, the result of back-to-back elections, has thrown its reform programme off track. Auditors from the country’s international creditors, who visited Greece in late July, are expected to return in September.
Major Gainers COMPany Unilever Food Colgate Palmolive Siemens Pakistan Indus Dyeing Sanofi-Aventis Pak
OPen 2750.00 1359.00 815.00 420.00 200.00
hIGh 2887.50 1425.00 845.00 441.00 210.00
lOw 2887.00 1420.00 845.00 420.00 203.00
ClOse ChanGe 2887.50 137.50 1425.00 66.00 845.00 30.00 433.67 13.67 210.00 10.00
TuRnOveR 120 400 50 300 2,400
355.00 239.90 260.00 217.00 135.01
355.00 228.90 251.50 216.00 135.01
355.00 230.16 256.26 216.00 135.01
-12.50 -10.73 -7.82 -6.00 -4.99
300 12,200 6,700 3,800 300
6.75 6.15 49.75 5.05 15.65
6.21 5.44 48.82 4.65 15.06
6.59 6.00 49.34 5.01 15.17
0.39 0.73 0.17 0.36 -0.37
40,296,500 24,836,000 16,292,500 13,993,500 5,566,000
Major Losers Mithchells Fruit Exide (PAK) XD Atlas Battery Ltd. National Foods Linde Pakistan Ltd
367.50 240.89 264.08 222.00 140.00
Volume Leaders Fauji Cement K.E.S.C. D.G.K.Cement Lafarge Pakistan Jah.Sidd. Co.
6.20 5.27 49.17 4.65 15.54
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.3576 147.9905 1.1949 116.2769
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
sell
93.90 114.70 146.59 1.1802 94.06 11.93 25.48 24.85 97.73
94.70 115.98 148.18 1.1929 95.59 12.13 25.73 25.18 100.25
CORPORATE CORNER TOnI&Guy lahore ends Ramadan with special event LAHORE: The team from Toni&Guy Lahore on Wednesday afternoon presented their donation of Rs.300,000 to the SOS Children’s village as well as distributed eidi to the children at the SOS PRESS RELEASE
PTCl freedom offer for Broadband student Basic Package ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) introduced a new exciting offer to upgrade its 1 Mbps student basic package customers to 2 Mbps package without any additional charges. PRESS RELEASE
Treet Corporation to raise 1.255 billion LAHORE: (from Left to Right) Tamil Nadu Governor Dr. K Rosaiah and M. S. Swaminathan presenting an award to Sartaj Aziz.
Asia markets slip despite positive US, Europe data HONG KONG AFP
Asian markets edged down on Wednesday, shrugging off positive US retail sales and signs that the embattled eurozone may be faring better than feared. With traders away for summer breaks volume was light and movement limited, but one exception was Standard Chartered whose shares jumped more than five percent in Hong Kong after the bank settled claims it helped Iranian clients dodge US sanctions. Tokyo was down 0.17 percent, Hong Kong fell 1.12 percent, Sydney was off 0.49 percent and Shanghai slipped 0.67 percent. Seoul was closed for a public holiday. The falls came despite news that US retail sales rose by a better-than-expected 0.8 percent in July, breaking a three-month losing streak and offering hope of faster growth in the third quarter, official data showed. US stocks made early gains on the figures but ended mixed, with the Dow Jones Industrial Average up 0.02 percent, the S&P 500 down 0.01 percent and the tech-rich Nasdaq down 0.18 percent. The retail figures may have disappointed some investors who were hoping for further poor data that would the spur the US Federal Reserve into new stimulus measures to kickstart growth, analysts said. The hope of US action, combined with hints from the European Central Bank that it would restart a bond-buying programme to help crisis-hit eurozone countries, has helped drive solid gains in stocks this month.
LAHORE: Treet Corporation limited announced to raise Rs. 1.255 billion through issuance of Participation Term Certificate to the existing shareholders of the company by way of right offer. PRESS RELEASE
Meanwhile a poor set of trade and production figures from China last week have raised expectations of fresh monetary easing by Beijing. In Europe, second-quarter growth in eurozone heavyweights France and Germany came in better than expected, providing some respite for the under-pressure single currency, official data showed Tuesday. The German economy, the continent’s biggest, grew by 0.3 percent owing to rising exports and solid domestic demand, while the French economy posted zero growth, defying forecasts that it would begin to slide into recession. European stocks rose on the better-thanexpected data. In Hong Kong, London-based bank Standard Chartered was up 5.49 percent at HK$174.9 in morning trade Wednesday after
it said it would pay a fine of $340 million from a New York banking watchdog. The “civil penalty” came amid allegations the bank hid 60,000 transactions with proscribed Iranian clients worth $250 billion over 10 years. On foreign exchange markets, the dollar stood at 78.81 yen, firming from 78.73 yen in New York on Tuesday. The euro was at $1.2328 and 97.14 yen, nearly flat from $1.2321 and 97.01 yen in New York. Oil slipped in early trade. New York’s main contract, West Texas Intermediate light sweet crude for September delivery, fell 25 cents to $93.18, and Brent North Sea crude for September dropped 34 cents to $113.69. Gold was at $1,601.67 at 0320 GMT on Wednesday, compared to $1,612.75 on Tuesday.
WAPDA Chairman Shakil Durrani photographed with the WAPDA schools students, who presented Milli Naghmas, speeches in Flag Hoisting Ceremony held at WAPDA House yesterday to mark the Independence Day.
LAHORE: Qatar Airways announced an expansion of its USA route network with the introduction of daily passenger flights to Chicago from April 10 next year.
Thursday, 16 August, 2012