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Friday, 16 November, 2012
Thumbs up for SBP! g
$1.1m for Teletaleem
State Bank of Pakistan’s regulatory role in microfinance, branchless banking recognised KARACHI
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TATE Bank of Pakistan (SBP) has gained international recognition for its regulatory role in microfinance and branchless banking by creating an enabling environment for their development in Pakistan. The world-renowned newspaper, Financial Times and the World Bank have praised SBP for its innovative approaches in expanding the access to financial services for the unbanked and underserved population of the country. A spokesman of the SBP said here on Thursday that an article published in Financial Times on November 6 says: `Pakistan has one of the best regulatory environments in the world for microfinance and one of the fastest-growing microfinance sectors, with three million borrowers. It is also one of the most innovative places in the world for mobile banking services, partly due to the State Bank of Pakistan’s moves to encourage the market’. Consultative Group to Assist the Poor (CGAP) of the World Bank in its recent publication has also highlighted Pakistan as the fastest growing branchless banking market in the world and a laboratory of innovation. SBP has been playing a leading role while working closely with the industry through various policy and strategic ini-
tiatives to transform the financial market into an equitable system of efficient market-based financial services to the hitherto excluded poor and marginalized segments of the society. It may be mentioned here that the SBP has moved beyond its traditional role for modernizing the market infrastructure and improving risk management framework for microfinance industry, the SBP spokesman added. In particular, SBP has invested substantially for establishing microfinancespecific Credit Bureau, launching nation-wide Financial Literacy Program, carrying out various market surveys and
studies, transforming Microfinance Banks (MFBs), and channeling Rs. 6 billion commercial funding for MFBs through credit enhancement mechanism for lending to new borrowers. The central bank is also supporting capacity building and innovations through smart subsidies for microfinance players and larger financial services providers under the DFID-funded Financial Inclusion Program (FIP). As a result of these efforts of SBP, ten microfinance banks are now operating in the country. The MFBs have also strengthened their capital base through capital injection, and are now well-cap-
italized. All MFBs are privately owned by local and international investors including banks, development agencies, investment funds, mobile network operators, and large domestic Microfinance Institutions (MFIs). This diversity of ownership and approaches depicts confidence in policy consistency and viability of microfinance sector. With the commencement of business by Waseela MFB (sponsored by M/s Orascom / Mobilink), now three large scale branchless banking deployments are operating in the country. The retail network of banking and microfinance has also risen overwhelmingly through agents and mobile phone channels. The agent network now exceeds 30,000 and is currently processing almost 10 million transactions each month, and the growth continues apace. It may be pointed out here that the success of branchless banking is only a beginning of a new retail banking revolution in the country. SBP has also been continuously working on multiple models to accommodate interest of diverse players. This approach has already facilitated a number of leading banks and telecoms which have now entered or entering in the space of branchless banking. These developments fuel the expectation that transformational branchless banking (BB) models would prove a game-changer in improving access to finance in Pakistan.
LSM grows 4.06% in September, 1.85% in 1st quarter ISLAMABAD APP
The country’s Large Scale Manufacturing (LSM) has registered positive growth of 1.85 percent during the first quarter of the current fiscal year over the corresponding period of the last financial year. On year-on-year basis, the LSM grew by 4.06 percent during the month of September 2012 when compared to the same month of last year, according to the data of Pakistan Bureau of Statistics (PBS). The Quantum Index Numbers (QIN) of LSM stood at 105.67 points during July-September (2012-13) against 103.74 points during July-September (2011-12). During the period under review, in-
dustries monitored by Oil Companies Advisor Committee (OCAS) registered increase of 0.25 percent growth while the indices of Ministry of Industries grew by 0.29 percent and that of Provincial Bureaus of Statistics by 1.31 percent. The manufacturing items that witnessed growth during the first quarter over the same period of last year included iron beverages ad tobacco (6.47%), Iron and Steel products (16.07%), coke and petroleum products (3.41%), paper and board (35.97%), chemicals (6.15%), rubber products (33.06%), pharmaceuticals (4.09%), non-metallic mineral products (4.20%) and leather products (5.56%). The manufacturing items that witnessed decrease in production during the period included fertilizers (26.98%),
ADB provides $1.1 million grant to propel Pakistan’s Teletaleem project g
electronics (3.75%), textile (0.39%), wood products (12.43%), engineering products (13.48%) and automobiles (1.63%). Meanwhile, the industrial growth during September 2012 increased by 4.06 percent but decreased by 1.10 percent when compared to the growth of September 2011 and August 2012 respectively. The manufacturing items that witnessed growth in September 2011 over the same month of last year included beverages ad tobacco (9.83%), Iron and Steel products (29.41%), coke and petroleum products (14.03%), paper and board (44.69%), chemicals (4.37%), rubber products (17.09%), pharmaceuticals (3.44%), non-metallic mineral products (14.78%) and leather products (36.02%).
ISLAMABAD ONLINE
The Asian Development Bank (ADB) will provide a technical assistance (TA) grant of US$ 1.1 million to Pakistan’s TeleTaleem (Pvt.) Limited to boost access to quality education and vocational training in Pakistan using Information and Communication Technologies (ICT). “This project will open new vistas of online learning opportunities for students and teachers, currently without access to quality educational and training resources. With a click of a button, students will be able to avail quality educational services regardless of their geographic location. The project will hugely benefit students and teachers, particularly girls in remote parts of the country who seek access to good educational opportunities,” said Philip Erquiaga, Director General of ADB’s Private Sector Operations Department. Leveraging Pakistan’s fast growing ICT sector, TeleTaleem will provide ICT-assisted advanced learning environment to service basic education and technical education and vocational training (TEVT) segments. The company plans to setup 500 learning centers/points-of-access over the next 5 years, reaching out to 100,000 students and 10,000 teachers across the country. Werner E. Liepach, ADB’s Country Director for Pakistan, and Asad Karim, Chief Executive Officer of the TeleTaleem (Pvt.) Limited, today signed the TA implementation agreement. This is ADB’s first-ever private-sector led investment in an education project. Pakistan has made impressive gains over the last decade with spectacular ICT growth through the use of mobile phones, Internet and personal computers in the urban, semiurban and the rural areas. TeleTaleem will be using this widespread ICT footprint to deliver exciting and engaging teaching-learning practices and content to students and teachers, with the objective of enhancing student achievement and teacher competency. ADB’s TA grant will also study gaps, issues and opportunities to expand the use of ICT for education by defining appropriate strategies frameworks and financially selfsustaining development and marketing plans, to achieve large scale adaptation. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including cofinancing totaled $21.7 billion.
NFC AWARD DISTORTED EVERYTHING! Finance Ministry admits 7th NFC award swelled fiscal deficit, borrowing ISLAMABAD ONLINE
The Ministry of Finance and Revenue has admitted that following the 7th National Finance Commission Award (NFC), the country’s fiscal deficit and borrowing have swelled to am alarming position. Advisor to ministry of Finance and Revenue Assad Amin stated this during the meeting of Senate Standing committee on Finance and Revenue that met here on Thursday with Senator Nasreen Jalil in the chair. Giving briefing to the committee Rana Assad Amin informed that under 7th NFC award 70 per cent of the resources are being transferred to the provinces and the remaining 30 per cent resources are being utilized by the federal government. He said that during current fiscal year 2012-13 an amount of
Rs.1450 billion will be transferred to provinces against Rs.1200 billion transferred in the same period last year. During financial year 2010-11 an amount of Rs.1000 billion were transferred to provinces. During briefing, Assad Amin told the committee that currently, saving ratio was 9.5 per cent of the Gross Domestic Product (GDP) which was 12 per cent two years back. He said saving ratio has been decreased mainly because of two reasons. Firstly, 80 to 85 per cent income consumed without saving while the second reason was that an amount of Rs.2 trillion is out of circulation which was needed to be brought in banking channel. He however said that the government was making all-out efforts to bring this amount in banking channel by introducing various National Saving schemes. He informed that the Central Directorate
of National Savings (CDNS) is all set to launch student welfare bond scheme from today (Friday) which will help generate Rs.1200 billion. Senator Ilyas Ahmed Bilour re-
marked that banks have no amount to provide to the private sector for businesses as government has been taking huge loans from banking sector. “Corporate sector should not be dis-
turbed by the government by taking huge loans to run the affairs of the government,”Sentor Hamayun Khan Mandokhail said, adding that government was needed to raise its revenue instead taking loans from banking sector. On this, Rana Assad Amin admitted that the government’s huge borrowing has left nothing for the private sector to take loans from the banks. He said the overall releases of People Works program two has been made in the first 3 months of current financial year 2012-13. Director General (DG) Debt ministry of Finance Masroor Qureshi accepted that loans has doubled in last 5 years; however said that the repayment of loans to the International Monetary Fund (IMF) would not affect fiscal position of county as it will be repaid from foreign currency reserves of the State Bank of Pakistan(SBP).
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Dollar flat against yen in Asia, Japan polls eyed
APCNGA’S GAS PriCe fixATioN ‘Uniform gas rate, taxation can help to keep prices of CNG affordable’
TOKYO AGENCIES
The dollar was flat against the yen in Asia Thursday after climbing in New York on hopes Japanese elections next month will the opposition win, and pave the way for further central bank easing. In Tokyo, the dollar bought 80.24 yen, compared with 80.23 yen in New York late Wednesday where the greenback had climbed above 80 yen in earlier trade. The euro was slightly weaker on the Japanese currency at 102.17 yen, from 102.19 yen, while the European unit bought $1.2737, against $1.2734. On Wednesday, a senior governing party official confirmed that Japan will hold a general election on December 16, ending months of speculation.
FFC produces 2.45 million tonnes urea every year
ISLAMABAD ONLINE
The All Pakistan CNG Association (APCNGA) on Thursday said uniform taxation and provision of gas on equal rates could help to keep the prices of CNG affordable countrywide. The prices of CNG has been declined from petrol on the directives of the Supreme Court after which legality of Gas Infrastructure Development Cess has become questionable, said Ghayas Abdullah Paracha, Chairman Supreme Council APCNGA and Central Chairman APCNGA Abid Hayat while speaking at a press conference here. Conspiracies are being hatched to destroy
Major Gainers COMPANY Island TextileXD Indus DyeingXD Pak.Int.Cont. SD IGI Insurance Linde Pakistan
OPEN 538.57 539.00 162.61 138.62 138.50
HIGH 565.49 559.00 170.74 145.55 145.42
LOW 565.49 559.00 169.90 141.50 138.55
CLOSE 565.49 559.00 170.74 145.55 145.42
CHANGE 26.92 20.00 8.13 6.93 6.92
TURNOVER 100 100 14,500 177,500 28,900
1320.00 77.50 186.99 292.45 39.20
1320.00 75.61 183.61 287.00 39.20
1320.00 75.70 183.94 290.35 39.20
-65.45 -2.75 -2.16 -1.98 -1.95
50 7,000 254,900 6,200 1,000
11.34 53.65 16.85 6.35 6.70
10.35 52.50 16.40 5.75 6.49
11.34 53.03 16.55 5.94 6.57
1.00 0.26 0.10 -0.30 0.05
20,196,500 15,069,000 11,336,500 9,686,500 8,023,500
Major Losers Bata (Pak) XD Clover PakistanXD MCB Bank Ltd.XD National FoodsXD Dadex Eternit
1385.45 78.45 186.10 292.33 41.15
Volume Leaders Maple Leaf Cement D.G.K.CementXD Jah.Sidd. Co. JS Bank Ltd Fauji Cement
10.34 52.77 16.45 6.24 6.52
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.9049 152.3736 1.1990 122.1540
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
96.30 121.09 150.64 1.1812 94.52 12.19 25.94 25.33 98.40
SELL 96.80 123.15 153.18 1.2010 96.61 12.42 26.35 25.71 101.51
EconoMiStS cLaMour for rEforMation Call for institutional reforms for macroeconomic stability ISLAMABAD
BAHAWALPUR
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Fauji Fertilizers Company Limited (FFC) is producing 2.45 million tonnes urea every year. According to General Manager Marketing (Sales) Shakeel Ahmad, FFC is also distributing 0.62 million tons urea and 0.73 million tons DAP produced at Fauji Fertilizer Bin Qasim. He told that Pakistan is an agro based country and FFC is playing important role in agriculture development.
Compressed Natural Gas (CNG) sector, which will hurt millions and sink investments to the tune of billions, they said. They said that the Apex Court had directed to reduce price of CNG by Rs 20 but prices were slashed by Rs 31, which amounts to destroying the business of owners of CNG filling stations. Ministry of Petroleum and Natural Resources and OGRA didn’t reduce any tax and conveniently diverted the entire burden on CNG sector, which is unjust, they added. Ghayas Abdullah Paracha said that no where in the world the production cost of any business is brought down to zero except Pakistan where this has been done in violation CNG Production and Marketing License by OGRA. CNG sector is paying GIDC up to Rs 300 mmbtu while industrial sector is giving Rs 50 for the same which is injustice, he said, adding that we are being made to pay 500 per cent additional cess which if identical will help reduce gas price by Rs 13 per kg. Such a step will not bring any major change in the prices despite adding production cost and profit of the owners CNG stations which are presently unable to pay utility bills and salaries of the staff. Paracha said that CNG prices were deregulated until 2008 but afterwards mistake of a federal minister get prices regulated while there was no mention of production cost in the whole episode. He said that Petroleum Ministry has presented one-sided and wrong stance in the Supreme Court to defame and put an end to the CNG sector, which was a conspiracy.
Business 02
Economists in a conference here on Thursday stressed the need for bringing institutional reforms besides economic reforms for macroeconomic stability and development in the country. While addressing the concluding session of the 3-day 18th Annual General Meeting and Conference of Pakistan Society of Development Economists (PSDE), the economic experts also asked for contin-
uation of economic polices and reforms process for sustainable socio-economic uplift of the country. They also asked for eliminating the technocratic culture from the ministries and concerned departments The three day (13-15 November) conference titled, “Economic Reforms for Productivity, Innovation and Growth” has been organized by PSDE in collaboration with Pakistan Instituted of Development Economics with an aim to provide the economists a platform to share their
knowledge about economic issues and help find their solutions. Speaking on the occasion Deputy Chairman Planning Commission, Dr. Nadeem Ul Haq said that it is the vital role of academia to promote the research culture for bringing the new ideas of economic reforms by discussing and debating the ground realities. He said that Planning Commission in collaboration with USAID has initiated the capacity building programs for youth and the government has also established Economic Reforms Unit with in the Ministry of Finance for introducing and implementing
the reform process in the country. “We need to look into the expenditure side besides enhancing the tax to GDP ratio and addressing the management issues for rapid macroeconomic stability and development. Addressing the conference, former Governor State Bank of Pakistan, Dr. Ishrat Hussain termed the stabilization and long term structural reforms as important components for the development of the country. He said that economy has to be stabilized with the help of fiscal consolidation widening of tax net and mobilization of domestic resources, cutting down the state owned corporations.
CORPORATE CORNER ‘Germany On The Road’ evinces keen interest
KARACHI : There are at least four German firms that are seriously looking at investing in Pakistan which shows that the security issue in the country is not so bad. This was said yesterday by the Consul General of the Federal Republic of Germany, Dr Tilo Klinner, while inaugurating the exhibition “ Germany on the Road” Germany On The Road is an active effort to present and highlight the activities and efforts of German corporations and organisations operating in Pakistan said the German envoy. The exhibition organised in cooperation with the Pakistan German Business Forum (PGBF), has been designed to present the multitude of linkages between Germany and Pakistan by giving German companies, Germany-linked companies and German institutions the opportunity to display their activities in Pakistan in a concise and vivid manner. The event also marked the launch of the new PGBF website.
PTCL cautions customers about hoax calls ISLAMABAD: It has come to PTCL’s knowledge that some unknown individuals are making hoax calls to PTCL subscribers claiming to be the representatives of PTCL and announcing huge cash
prizes for subscribers. PTCL, therefore alerts its existing and potential customers NOT to entertain, trust or fall for any such calls initiated by certain individuals offering any cash prize that either requires them to call back on a particular number or give serial/PIN number of prepaid scratch card in case of Vfone subscribers. PTCL is not in any way affiliated with any prize draws or offering cash prizes or in any way disclosed any of its subscriber’s phone numbers to any third parties for this purpose.
facturer Boeing. Those onboard included international media, senior management from Qatar Airways and Boeing, as well as third party suppliers from companies involved in the 787 project.
Grid. WAPDA Chairman Raghib Shah expressed these views while addressing a delegation of the 26th Air War Course of Pakistan Air Force War College, Karachi here at WAPDA House today. The delegation was led by Air Commodore Nadeem Shujaat Khan. Speaking on the occasion, the Chairman said that a number of water and hydropower projects with cumulative water storage capacity of 12 million acre feet and power generation capacity of about 20000 megawatt (MW) are under various stages of implementation (i.e. from construction to detailed engineering design). Besides adding 400 MW electricity to the system from the end of 2012 to the mid 2013, WAPDA also plans to add 5000 MW within next five years and another 14000 MW by 2020 provided funds are made available for the purpose.
KARACHI: Mr. John Park, MD Samsung Pakistan and Syed Shahid Ali, President Punjab Olympic Association are presenting the winning trophy of Samsung 5th Inter School and College Games.
UIC stall shines at Internation Expo
Qatar Airways first 787 Dreamliner lands in Doha
‘Govt implementing Diamer Bhasha Dam as priority project’ DOHA: Qatar Airways today celebrated yet another historic milestone as its first Boeing 787 Dreamliner landed on home turf in Doha greeted by hundreds of cheering onlookers. VIPs, media, airline and airport staff, together with passengers watched with excitement as Qatar Airways’ brand new state-of-the-art Dreamliner swooped into Doha International Airport marking the start of a new era in Middle East aviation. Qatar Airways is the region’s 787 launch customer with 60 aircraft on order for delivery in phases over the next few years. Chief Executive Officer Akbar Al Baker, who was onboard the delivery flight, was joined by almost 100 passengers privileged to be on the maiden 13-hour journey direct from Seattle, the US west coast home of American aircraft manu-
LAHORE: The Pakistan Water and Power Development Authority (WAPDA) is implementing a master plan for optimal utilisation of the indigenous water and hydropower resources to supplement water for irrigated agriculture and add a good quantum of low cost hydel electricity to the National
LAHORE: Stall of Universal Insurance Company draws attention at International Expo. An expo was arranged under Institute of Cost and Management Accountants of Pakistan at Expo Centre Lahore, it continued for three days in which Universal Insurance Company (UIC) of BIBOJEE Group of Companies exhibited its services. Stall drawn lot of attention due to its significant background and services it has been providing. UIC is an experienced organization and providing services since 1958. It has achieved remarkable excellence by introducing many dynamic programs.
Friday, 16 November, 2012