PRO 17-05-2013_Layout 1 5/17/2013 12:33 AM Page 1
01
B
BUSINESS Friday, 17 May, 2013
FEG to be scrapped in favour of 10th five-year plan MONITORING DESK Dissention amongst the top ranks of economists in the country has led the caretaker government to call for scrapping of the Planning Commission’s Framework for Economic Growth (FEG), in favour of the 10th Five-Year Economic Plan. According to details, The FEG had been prepared by former Planning Commission deputy chairman Dr Nadeemul Haq, who was recently dismissed from his post by the caretaker govt. When Dr Haq became the deputy chairman, the Planning Commission had been preparing the 10th Plan for 2010-15, which he ordered to shelve. In its place, he had provided his own strategies for economic development. The FEG was later approved by the National Economic Council, the country’s highest economic decision-making body. However, the FEG was never implemented and lacked broader acceptance. The 10th Five-Year Plan is a draft document put together by the current finance adviser’s brother, Dr Rashid Amjad, in the latter’s capacity as acting chief economist at that time. Dr Rashid was relieved of his duties when Dr Haq took over as deputy chairman of the Planning Commission. Differences between the Plan and the FEG The main focus of the Five-Year Plan (2010-15) was on increasing investment in education and health and to improve living standards. The Plan had also promised to usher in an era of development in parts of the country that had remained underdeveloped thus far. FEG’s strategy on the other hand was based on sustained reforms that would build an efficient and knowledgeable governance structure, and create markets in desirable and well-connected locations.
Global demand for gold jewellery up by 12% ISLAMABAD: Global demand for gold jewellery witnessed a 12 percent increase during the first quarter (January-March) of the year 2013. According to the latest World Gold Council Gold Demand Trends report, total jewellery demand was up by 12 percent year-on-year, in the first quarter of 2013, driven by main Asian markets. The report said in the United States, demand showed a significant increase of 6 percent for the first time since 2005. The reports on the period from January-March, 2013, show a market driven by diverse global demand and an appetite for owning gold jewellery that continues to grow. APP
Chinese police destroy £ 21m of counterfeit designer goods NEWS DESK
C
HINESE police destroyed £21 million of counterfeit designer goods on Thursday in a lavish publicity stunt aimed at showing the world they are cracking down on the illegal trade. Fake wine, cigarettes, handbags and cosmetics were all thrown on a fire in Guiyang, southwest China’s Guizhou Province. But authorities have a long way to go - a recent UN report revealed a staggering 75 percent of all fake goods seized worldwide from 2008 to 2010 were primarily from China. The World Customs Organisation also said the booming industry accounts for some two percent of world trade despite it being considered a ‘soft’ form of crime. The UN report stated that counterfeit goods accounted for one third of the organised crime in East Asia and the Pacific is worth approximately $ 90 billion. Most counterfeits fall into four categories: CDs and DVDs; accessories, watches and footwear; tobacco products; and textiles.
Counterfeit commerce over the Internet has soared in the past couple of years, turning what had been an irritant to businesses into a serious competitive threat. Last year an entire city in China literally shut up shop when nearly all of its stores closed after it was falsely reported that officials were planning a clampdown
on the sale of counterfeit products. Officials in Shenyang city were forced to beg store owners to reopen after 95 percent of shops remained closed. The online rumour sparked fears that the local council needed to get more revenue and had ordered taxmen to come down hard on shop owners.
Pakistan needs to sign free trade pacts with countries: KCCI chief KARACHI APP
Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Haroon Agar stressed that Pakistan should focus on signing preferential and free trade agreements with as many countries as possible. For increased exports of the country, he said, it would be imperative to promote regional trade by encouraging exports to India and other SAARC countries, ASEAN countries, the Central Asian Republics, China, Middle East and North Africa, Iran and Eurasian region. The KCCI President was exchanging views with the World Bank’s Consultant on Trade and Finance Sadia Khan during
her visit to KCCI, said a press release by KCCI. Agar recommended setting up sector-specific export promotion councils and export-import (EXIM) bank in Pakistan. “This is very much required for promoting and developing exports of the country,” he said. Trade Development Authority of Pakistan (TDAP) should create direct linkages with stakeholders, local and abroad, to materialise resources towards the pursuit of a quantum leap in exports. For successful export promotion it is vital that the product supply chain is strengthened specially to add value, Agar added. The KCCI chief said enhancing industrialisation and exports is the only answer to the revival and strengthening of the national economy. Due to energy crisis
and high cost of manufacturing, our export oriented industry is facing issues competing, he said. Export figures are not truly aligned with the existing export potential, he said. He proposed that the incoming government should appoint Exports Attaches at Pakistan’s foreign missions, responsible for disseminating useful information regarding local companies, buyers’ demand and supply trends besides organising exhibitions and fairs to help exporters tap new markets all over the world. The World Bank’s Consultant on Trade and Finance Sadia Khan recognised the role of KCCI in socio-economic development of Pakistan and promotion of commerce and industry. She sought KCCI’s input to identify issues and challenges for traders to access trade finance facilities from financial institutions, to gauge demand for working capital and common means employed to address demand from both informal and formal channels. She also sought views on the notion that access to finance from formal sector is by large the factor hindering export trade.
Western countries have often complained China is woefully behind in its effort to stamp out the trade, although it has started to crack down. In November police arrested 73 people suspected of manufacturing and selling almost 1 million fake luxury bags in China. The Ministry of Public Security said police seized more than 20,000 fake Louis Vuitton, Hermes and Coach bags and closed 37 sites where the forgery ring made or sold the bags. Police said the ring sold more than 960,000 bags and exported many to the United States and Middle East. The ministry said police in southern Guangdong province uncovered the forgery ring in January 2012 and that Chinese agents worked with US customs and immigration officials in the case. It said authorities seized assets worth 5 billion Yuan (£52million), including unsold counterfeit goods, production equipment and bank accounts. Another series of raids took place in July 2012 across 190 cities - the products seized were valued at £117 million. More than 2,000 people were arrested and 1,100 facilities were destroyed.
PASSCO purchases over 600,000 MT of wheat LAHORE: Pakistan Agriculture Storage and Services Corporation (PASSCO) purchased more than 600,000 metric tonnes (MT) wheat in the current season. Distribution of `Bardana’ (empty bags) continues at wheat procurement centres of PASSCO in various parts of the country under a fair and transparent policy, managing director Maj Gen Tauqeer Ahmed said on Thursday after visiting various wheat procurement centres. Strict vigilance was being done by our officers nominated for the task, he said. He said during his recent visit wheat growers from various zones had expressed confidence in the transparent procurement policy of PASSCO. He further said he had issued instructions to field officers to strictly follow the criteria laid down under the wheat procurement policy 2013. “We want to ensure that farmers get due return of their produce and avoid all types of discounts they have to face by the hands of middlemen,” he said. “Stability in the price of wheat is our prime object to protect interests of farmers,” he said. He said presence of PASSCO in the market to procure wheat from farmers was a solid reason behind stability of wheat prices. APP
Arif Naqvi gets 2013 Oslo Business For Peace Award Naqvi is the first PakistaNi NatioNal to receive this award from the BusiNess for Peace fouNdatioN KARACHI STAFF REPORT
Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group, has received the 2013 Oslo Business for Peace Award at a ceremony at the Oslo City Hall, Norway. Naqvi is the first Pakistani national and the first chief executive from the global private equity industry to receive this award. The award was presented to Naqvi by the Governing Mayor of Oslo Stian Berger Røsland, and the Business for Peace Foundation Chairman Per L Saxegaard. The Oslo Business for Peace Award is one of the highest forms of recognition given to global business leaders for fostering peace and stability through
creating shared values between business and society. The search for honorees is a joint effort undertaken between the International Chamber of Commerce (ICC), the United Nations Development Program (UNDP) and the Oslo-based Business for Peace Foundation. The 2013 Award Committee consists of Nobel Peace and Economics Prize Laureates: Professor Muhammad Yunus, winner of the Nobel prize for peace in 2006; and Professor Michael A Spence, winner of the Nobel prize in economics in 2001. Naqvi has been chosen as an honoree because of his work in promoting a stakeholder culture and his strong conviction that the relationship between business and
society - just like the relationship between business and finance - should be both mutually beneficial and value accretive. Commenting on receiving the award, Mr Naqvi said, “It is an honour to have been chosen as a recipient of this award. Previous honorees, as well as this year’s recipients, include global leaders in responsible, sustainable and ethical business practices and I am humbled to be amongst their company and to be part of their achievements. We all have a duty to conduct and manage our businesses to the highest possible standards. My colleagues and I have always believed that a sustainable investment approach focusing on stakeholders as well as shareholders can create social benefits alongside strong financial returns. Engaging with communities is a core part of our approach when investing in growth markets since many outcomes rely on collaboration between multiple stakeholders - specifically business, government and civil society.”
PRO 17-05-2013_Layout 1 5/17/2013 12:34 AM Page 2
02
BUSINESS B Friday, 17 May, 2013
Service trade deficit narrows 81% in 3 quarters ISLAMABAD: Pakistan services trade deficit narrowed by 80.99 percent during the first three quarters of the current fiscal year as exports surged by over 36.94 percent with imports showing negative growth of 4.33 percent The overall services’ exports from the country were recorded at $5.336 billion during JulyMarch (2012-13) against exports of $3.896 billion during July-March (2011-12), showing growth of 36.94 percent, according to data of Pakistan Bureau of Statistic (PBS). On the other hand, the imports of services into the country during the first three quarters of the current year decreased by 4.33 percent by going down from last years imports of $ 5.994 billion to $5.735 billion, the data revealed. Based on this data, the overall trade deficit during the period under review was recorded at $ 0.398 billion against the deficit of 2.097 billion during last year, showing a negative growth of 80.99 billion. However on a year-on-year (YoY) basis, services exports from the country decreased by 2.91 percent in March 2013 as against the same month of last year. Exports of services during March 2013 stood at $0.440 billion against exports of $0.454 billion during March 2012. On the other hand, imports of services into the country witnessed nominal increase of 0.28 percent, going up from $0.667 billion during March 2012 to $0.668 billion in March 2013, the PBS data revealed. On a month-on-month (MoM) basis, exports as well as imports of services increased by 33.10 percent and 22.50 percent, respectively, during March 2013 against February 2013. According to the PBS data, exports of services during February 2013 were recorded at $0.331 billion whereas imports stood at $0.546 billion. APP
Refrigerators, deep freezers production up by 7.99 %, 1.17 % ISLAMABAD
R
APP
EFRIGERATORS and deep freezers production in the country during the last nine months of the current financial year registered an increase of 7.99 percent and 1.17 percent, respectively. During the period from July-March 2012-13, 804,965 units of refrigerators were produced as compared to 745,421 units produced in the corresponding period of the last financial year. According data of Pakistan Bureau of Statistics (PBS), in the month of March 2013, 94,934 refrigerators were produced as compared to 96,909 refrigerators produced in the same month of the last financial year. Meanwhile, deep freezers’ production recorded a 1.17 percent increase as about 36,059 deep freezers were produced during the last nine months of
the current financial year as compared to 36,482 units produced in the same period of last year. However, air conditioners’ and electric bulbs’ production decreased by 19.85 percent and 6.22 percent, respectively, as 122,742 air conditioners were produced during the last nine months as compared to 155,3143 units produced in the same period of last year. On a month-on-month (MoM) basis, air conditioners’ production witnessed a 12.80 percent increase. In March, 2013 43,236 air conditioners were produced against 38,331 units produced in the same period last year, PBS data revealed. Per the data 122,742 electric bulbs were produced in the last nine months of the current financial year as against 153,134 bulbs produced in the same period of last year. During the period under review, electric fans’ production increased by 0.79 percent as about 1,292,077 fans produced as compared to 1,281,965 fans produced in JulyMarch 2011-12.
Major Gainers COMPANY Gillette Pak Pak services mithchellsfruit salfi textile linde Pakistan
OPEN 324.75 252.00 375.00 161.00 168.26
HIGH 340.00 263.90 384.00 169.00 175.00
LOW 339.00 263.50 375.00 161.00 168.26
CLOSE 340.00 263.90 384.00 169.00 175.00
CHANGE 15.25 11.90 9.00 8.00 6.74
TURNOVER 2,500 600 400 3,000 8,000
6700.00 606.00 605.00 1855.00 1499.00
6600.00 605.00 596.85 1685.00 1440.00
6650.00 606.00 600.28 1740.50 1469.50
-250.00 -29.00 -27.98 -26.51 -19.33
60 200 700 500 100
3.97 3.57 11.79 6.82 2.67
3.31 3.10 10.91 6.12 2.45
3.48 3.18 11.00 6.75 2.51
0.46 0.61 -0.80 0.63 0.07
35,644,500 34,174,500 15,547,000 14,223,500 11,811,000
Major Losers Nestle Pak. Xd island textile shezan inter. Bata (Pak) wyeth Pak ltd
6900.00 635.00 628.26 1767.01 1488.83
Volume Leaders Japan Power southern electric B.o.Punjab Xr P.i.a.c.(a) NiB Bank limited
3.02 2.57 11.80 6.12 2.44
Interbank Rates usd GBP JPY euro
Pkr 98.5269 Pkr 149.9875 Pkr 0.9611 Pkr 126.8337
Forex BUY us dollar euro Great Britain Pound Japanese Yen canadian dollar hong kong dollar uae dirham saudi riyal
99.80 127.24 151.10 0.9622 96.72 12.59 26.98 26.48
SELL 100.05 127.48 151.35 0.9722 98.42 12.83 27.23 26.73
CORPORATE CORNER ABL Asset Management appoints MCB Financial Services as trustee for ABL Islamic Stock Fund
here on Thursday. The activity was conducted under the “Spellathon” campaign of WWFPakistan, in which children from schools across Pakistan learn about issues such as sustainability, environment, species and water and sanitation and then compete in a spelling competition. This year’s campaign theme is “Energy Conservation”, which goes beyond the general concept of electricity being the only energy source. Officials from SNGPL conducted an awareness raising session for students, which was followed by a prize distribution ceremony. Speaking at the occasion, Mr. Jawad Ashraf, Senior Media Consultant for SNGPL said, “usually people perceive only electricity as an energy conservation issue. We are creating awareness about the fact that it is also important for us all to conserve natural gas, which is important for home and industrial use.” SNGPL officials found the children to be receptive of the message. PR
KARACHI: In a ceremony held at the head office of ABL Asset Management Company Ltd., a Trust Deed was signed between ABL Asset Management Company Limited (ABL AMC) and MCB Financial Service (MCB FSL), whereby ABL AMC appointed MCB FSL as trustee for their upcoming ABL Islamic Stock Fund. Mr Farid A. Khan, CEO ABL AMC, and Mr. Khawaja Anwar Hussain, CEO MCB FSL, signed the agreement. ABL Asset Management Company Ltd. (ABL AMC) is a wholly owned subsidiary of Allied Bank Limited (ABL) and is currently rated AM2- by JCR-VIS which denotes “high management quality”. The company is managing over Rs. 20 billion of retail and institutional funds and is ranked amongst the largest fund management company in Pakistan. ABL Islamic Stock Fund is a shariah complaint, open-end fund which will provide investors an attractive opportunity to tap the enormous potential of Pakistan’s equity markets and earn halal profits. The fund will be launched by end of May 2013 and will be available at all branches of Allied Bank and ABL AMC. ABL Islamic Stock Fund will be managed by ABL AMC under the guidance of Mufti Irshad Ahmed. After the successful launch of ABL Islamic Income Fund, this will be the second Islamic fund in ABL AMC’s portfolio. The firm already manages the highly successful ABL Stock Fund, which delivered an annual return of 45.3% (as at 15th May 2013). PR
FWBL and SLIC ink agreement
WWF and SNGPL join hands for environmental education campaign LAHORE: World Wide Fund for Nature – Pakistan (WWF-Pakistan), in partnership with Sui Northern Gas Pipelines LTD (SNGPL), held an environmental education activity at a local school
Etihad Airways maiden Amsterdam flight takes off KARACHI: The inaugural flight of Etihad Airways, the national airline of the United Arab Emirates, has taken off for the Netherlands’ capital, Amsterdam. Flight EY77, carrying the KL code of Dutch national carrier, KLM, departed Abu Dhabi airport on schedule at 9.30am local time today, Wednesday 15 May. The launch of the service is another important development in the strategic partnership between Etihad Airways and KLM. First announced in October 2012, the partnership involves the two airlines codesharing on multiple routes across each other’s networks. The new daily service between Abu Dhabi and Amsterdam complements KLM’s flights on that route, which carries Etihad Airways’ EY code, ensuring the two airlines will offer a combined double daily service from the summer. Passengers can now have direct access to Amsterdam via Abu Dhabi from Pakistan with 31 weekly flights, daily from Karachi, Lahore, Islamabad and twice a week from Peshawar. PR
Net Income of Al Baraka Banking Group jumps by 15% to $66 million
ISLAMABAD: First Women Bank Ltd. (FWBL) and State Life Insurance Corporation (SLIC) have entered into a strategic partnership to sell insurance products under Bancassurance. First Women Bank Ltd. is the only bank for women in the country has a network of 41 branches in 24 cities of Pakistan while SLIC is the largest life insurance Corporation operating in Pakistan, having 65% market share. It also operates in Gulf countries. The agreement was signed by Mrs. Shafqat Sultana President First Women Bank Ltd. and Mr. Irfan Baloch –GM Bancassurance SLIC at a ceremony held at State Life Head Office. GBA Services, SLIC’s exclusive Third Party Administrators (TPA) for Bancassurance will provide technical, marketing/advertising support including state of the art online POS System for instant coverage to FWBL customers, new product development, and staff training. PR
MANAMA: The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that its net income increased by 15% and total operating income by 16% in the first quarter of 2013 compared to the same period of 2012. Similarly, statement of financial positions witnessed moderate increases. Total assets increased by 2%, total deposits including equity of investment accountholders by 2% while total
financing and investments remained unchanged at the end of March 2013 as compared with the end of December 2012. The Group results in the first quarter of 2013 confirms once again the successful business strategies carried out by the Group and its units subsidiaries, based on the diversification of products and services offered to different customer segments, with emphasis on quality and competitiveness, as well as the geographical expansion of the branch network, and improve the human and operational environment. The financial statements of the Group for the first quarter of 2013 showed that the continued improvement of business environment reflected positively on income, with total operating income of US$ 233 million in the first quarter of 2013, an increase of 16% over same period in 2012. After deducting all operating expenses, net operating income amounted US$ 116 million in first quarter of 2013, which represents an increase of 18% compared to the net operating income during the first quarter of 2012. The net income amounted to US$ 66 in first quarter of 2013 compared to US$ 57 million in first quarter of 2012, which reflects an increase of 15%. This increase was achieved despite the increases in the operating expenses of the Group on account of further expansion in the branch network and enhancements in IT infrastructure and human resources. The net income attributable to parent’s shareholders reached US$ 37 million, which represent an increase of 13% comparing to the same period last year. The total assets of the Group amounted to US$ 19.5 billion as at the end of March 2013, an increase of 2% over the comparative figure as at the end of 2012. Financing and investments portfolio amounted to US$ 14.3billion as at the end of March 2013, maintaining its same level as the end of December 2012. Customer deposit and other accounts and equity of investment accountholders have witnessed an increase of 2% from US$ 16.4 billion at the end of December 2012 to US$ 16.7 billion at the end of March 2013, which indicates continued customer confidence and loyalty to the Group. Commenting on these results, Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said “The political and economic implications continued in a number of Arab countries during the first quarter of 2013, while the efforts to treat the sovereign debt crisis in Euro zone continued internationally. These createdcautious business environment for banks in the world, including the Arab banks, although they well distanced themselves from the toxic assets globally. Therefore, we are proud with the good results achieved by ABG during the first quarter of 2013, which reflects the Group’s commitment to the true Islamic banking model and prudential business strategies, which enabled it to deal wisely with these conditions and to continue expanding in the business.” PR