PRO 17-07-2012_Layout 1 7/17/2012 3:50 AM Page 1
Tuesday, 17 July, 2012
MWP has newfound guts Digs in, demands timely payment of TDS from the Finance Ministry
How inappropriate! Inappropriate economic policies downgraded Pak’s sovereign rating: Economists
ISLAMABAD ONLINE
Independent economists have said that owing to government’s inappropriate economic policies to cope with depressive economic situation of the country Moody’s downgraded Pakistan’s sovereign rating to its lowest level ever. Talking to Online renowned economist Dr Salman Shah said that economic manager’s unsuitable policies had brought the country eight years back rather than bringing some improvement in the relentlessly aggravating economic situation. “Government’s inept polices is the main hurdle in the way of promoting investment in the country which should be made investment friendly,” said Dr.Salaman Shah. Well-known economist Dr Ishfaque Hassan khan said that political leadership and economic managers should be blamed for downgraded credit rating of Pakistan as economy of the country was not on their radar screen. “Business is thriving here and political leadership and economic managers have no anxiety with growing deteriorating economic situation of the country,” he added. Pakistan Economy Watch (PEW) President Dr Murtaza Mughal said that country’s current account balance and foreign exchange reserves had exacerbated which had been responsible for Pakistan’s downgraded credit rating. He told economic trouble shooters of country had taken Pakistan on the brink of destruction economically, as they had not been endeavouring to formulate the polices which would bring economic prosperity. In a note issued on Friday by Moody’s downgraded Pakistan’s sovereign credit rating to its lowest level ever. Pakistan’s current account in May showed a deficit of $3.8 billion. Remittances from abroad that provided support to the current account until recently are tapering off, Moody’s said.
ISLAMABAD
T
AMER SIAL
HE change of premier, minister and secretary have all boosted the Ministry of Water and Power’s (MWP) guts to demand the Finance Ministry pay tariff differential subsidy (TDS) on time, to maintain maximum power generation during the peak-hour demand during sweetening summers. An official source said the Ministry of Finance (MoF) had been told in clear terms recently by MWP that TDS should be provided either in one go for the current fiscal year or on a monthly basis to avoid violent street protests. He said the Finance Ministry was reluctant to accept TDS of Rs 184 billion which was the actual figure for the last fiscal year. At present there is a TDS of Rs 3.06 per kWh. The current notified tariff is Rs 8.88 per unit as compared to the NEPRA determined tariff of 11.94 per unit. Explaining the cause of the new found zeal, he said that the stubbornness of MoF in accepting the data of the MWP was the main reason for the dwindling power generation. “They used to ask every time to verify our data and used to add different conditions in the release of funds,” the source claimed, adding that the
delay in the release of funds for TDS and furnace oil resulted in massive power outages. “With a prime minister, who understands delaying tactics of MoF rather well, there is now no plausibly excuse and they have to meet all our demands,” he asserted adding that fuel oil supply had jumped from an average of 11,000 tonnes to 27,500 tonnes daily during the last ten days resulting in significant improvement in power supply. Prime minister supported the move of MWP to provide more gas and fuel to increase power generation which was previously effectively blocked by the MoF by claiming that they lacked funds and instead stressed efficiency in the power sector. Efficiency in the sector could only come if its difficulties were removed to run the system on optimal level. Elaborating on the benefits of former Minister for Water and Power Raja Pervez Ashraf’s becoming premier he said that the PM ordered resolution of a major issue of recovery of provincial government department’s outstanding dues of more than Rs 250 billion through at source deduction. Previously, MoF was not ready to consult the provinces on the pretext that it was not possible after the 18th amendment. Federal Adjustor will be holding a meeting on July 23 to resolve the issue. The induction of new minister and secretary have helped improve the working of the ministry as the previous minister used to visit the ministry once in a blue moon and had made his official residence as camp office only for meetings. The new minister was keenly monitoring the targets given to DISCOs for recovery and reducing losses and power theft. The timely decisions have aroused a fear of accountability in the system which is also resulting in improvement in the system.
PIA chief has a revamp plan ISLAMABAD ONLINE
Pakistan International Airlines (PIA) Chairman, Air Chief Marshal (Retd) Rao Qamar Suleman on Monday said that comprehensive business plan had been drafted and submitted to the PM for approval to make it profitable. He said this while briefing the Senate Standing Committee on Defense and Production here at the Parliament House. The summary of the plan had been submitted to the prime minister for approval, adding that he hoped that after PM’s approval it would surely bring it out from deficit, he stated. The committee members complained to the PIA chairman with regards to the misbehaviour of the PIA staff with the passengers. The PIA chairman briefed the committee that twenty to twenty-five years earlier the PIA staff had had exemplary behaviour with the passengers while performing their duty. However, as the time has passed, the people have negative remarks about the PIA staff upon their performance, he re-
It runs the entire gamut from smaller aircrafts to smiling airhostesses iterated. “We are trying to improve the performance of the PIA and therefore, we are working on a large scale to provide better facilities as per the international standard”, he added. He further briefed that the airhostesses had been advised to keep smiling and be pleasant while serving the passengers. Rao Suleman informed the committee that PIA’s fleet had old and ‘over-aged’ airplanes and that they needed massive amounts of money for the repair work, and therefore PIA needed small aircrafts in its fleet for short routes he asserted. Moreover, he claimed that PIA has made arrangements of 737 (800) aircrafts and 777 (2) airplanes to buy on lease.
President woos Japanese businessmen ISLAMABAD INP
President Asif Ali Zardari has invited Japanese businessmen to take advantage of natural resource potential, trained and hard working work force and geographic location of Pakistan and invest in various sectors for mutual benefit of the two countries. Addressing Pakistan-Japan Business Roundtable Meeting here at Aiwan-e-Sadr on Monday the President said that Pakistan has enormous potential and opportunities. The President said year 2012 is a special year for Pakistan-Japan relations. This is the year of celebrations of the 60th anniversary of diplomatic relations and also a year of reflection on what more needs to be done to take relations of Pakistan and Japan to new heights, the President added. He said that he has a special feeling for Japan, a country that has been Pakistan’s strong development partner. It is a country with beautiful mix of modernity and tradition, the President said. He emphasized that the two countries can do much more particularly in business, trade and investment.
Bring on the barter! TEHRAN ONLINE
According to IRNA reports Iranian President Mahmoud Ahmadinejad has stated that there was no obstacle as far as expand barter trade with other countries is concerned, particularly Pakistan. Ahmadinejad made the remarks in a meeting with the visiting special envoy of Pakistani President Asif Ali Zardari in Tehran. “Iran and Pakistan are two big neighbourly countries with a massive potential for cooperation,” the president said. Referring to the approximate value of $80 billion of annual imports of goods from Pakistan by Iran, Ahmadinejad noted that the Islamic Republic of Iran chose to import goods as much as possible from Pakistan in order to benefit Pakistan. The president noted that Iran is also ready to export energy and electricity to Pakistan. The Pakistani special envoy said that Pakistan’s policy of cooperation with Iran was based on the enhancement of bilateral ties. He noted that Pakistan prioritised expansion of ties with Iran and had always been thankful to Iran for assisting Pakistan’s progress and development.
Oil doesn’t quite fit the bill ISLAMABAD/ABU DHABI ONLINE
Import bill swells to $13 billion
Pakistan’s reliance on crude oil has become conspicuous as oil import bill has reached to $ 13 billion which is a huge burden on the economy. Well informed sources in the Ministry of Petroleum and Natural Resources told Online that to end reliance on the import of crude oil and petroleum products, the government was pursuing the policy of attracting private investment in the energy sector during current financial year 2012-13. Pakistan’s primary energy supplies heavily depend upon the imported crude oil and petroleum products, due to which the country’s oil import bill is about $13 billion which is a huge burden on the economy. Sources told the government wants to replace the imported furnace and diesel oil with alternate fuels in a sustainable manner at competitive prices with a greater reliance on indigenous resources. Moreover, initiatives like import of piped gas, LNG and LPG as alternative fuels were taken. The present energy scenario suggests that an affordable and sustainable energy road map for the country is essential to capitalise on the use of indigenous resources in country’s energy mix.
Development of indigenous energy resources such as coal, hydro and alternative/ renewable sources is critical for country’s economic growth. Sources further told that the energy sector debt was threatening the entire supply chain from oil refineries, oil marketing companies (OMCs) to power producers. This problem needs to be resolved to ensure the survival of the power sector, attract investments and to enable the power sector to contribute towards the development of the economy. Capacity additions alone will not resolve the problem of load shedding; the supply of primary fuels need to be assured. ABU DHABI BEGINS EXPORTING OIL VIA PIPELINE: The emirate of Abu Dhabi has shipped fuel to a refinery in Pakistan, marking the official inauguration of the pipeline that bypasses the Strait of Hormuz, Bloomberg has reported. The Habshan-Fujairah pipeline was loading the first shipment of 500,000 barrels to the Pakistani plant, said UAE oil minister, Mohamed Bin Dhaen AlHamli, at a ceremony to inaugurate the network. The 423km link was built by International Petroleum Investment Co (IPIC) at a total cost of $4.2b, Khadem Al-Qubaisi, managing director of the Abu Dhabi-run IPIC fund, said at the ceremony in Fujairah.
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Tuesday, 17 July, 2012
Merci mon ami!
Bears fear SC decisions, bulls don’t
France helping Pakistan enhance its exports to EU market ISLAMABAD APP
Ambassador of France to Pakistan Philippe Thiebaud said Paris is willing to cooperate with Islamabad to enhance its exports to the European markets. Talking to delegation of Federation of Pakistan Chambers of Commerce and Industry here, the Ambassador said France was striving for a Generalised System of Preferences (GSP) plus status for Pakistani products. Moreover, he added, his country was also helping Pakistan resolve energy crisis by financing dams and introducing energy efficiency practices. Ambassador Thiebaud said that promoting relations with Pakistan, which was one of the largest trade partners of the European Union, was the priority of his country. Among others, the FPCCI delegation included FPCCI Chairman Standing Committee on Diplomatic Affairs Sheikh Humayun Sayeed, FPCCI Chairman Media and Head of Economic Department, French Embassy Dominique Simon were present on the occasion. The ambassador said that among EU countries, France has second largest presence in Pakistan after Germany as 80 French companies have subsidiaries here while 180 companies of two countries are involved in bilateral trade. He added that French automakers have shown interest in Pakistani market while many other big companies have recognised Pakistan as a great investment destination.
European shares turn positive in jittery trade LONDON: The pan-European FTS Euro first 300 index nudged into positive territory in thin, jittery trading on Monday as investors balanced a weak start to the earnings season against expectations for fresh global stimulus measures. The index rose as high as 1,044.01, up 0.1 percent on the day. The EuroSTOXX 50, however, remained firmly in the red, down 0.3 percent at 1025 GMT. APP
Bulls lift KSE-100 index up 52-points, as caution shrouds trading activity on Monday KARACHI
B
STAFF REPORT
ULLS surged with venom on Monday as the benchmark, KSE 100-share index crossed the 50point mark in the northward direction, gaining 52.29 points. Ahsan Mehanti, Director at Arif Habib Investments Limited, said that the Pakistan Stocks closed higher amid cautious activity in the earnings announcement session at KSE. The day saw the index rising 0.36 percent closing at 14, 384.58 points against 14, 332.29 points of last working day of the previous week. The trading volumes at the ready-counter were recorded lower at 73.852 million shares against 111.919 million shares of the previous day. The trading value was down to Rs 2.922 billion compared to Rs 4.425 billion of the last day session. The intraday high and low, respectively, stood at 14, 417.35 and 14, 332.29 points. Arif Habib added that the investors awaited Supreme Court reaction on NRO judgment implementation due next week. The market capitalisation grew modestly and increased to Rs 3.671 trillion from Rs 3.654 trillion a day earlier. Of the total 357 traded scrips, 145 gained, 113 lost and 99 remained unchanged.
The free-float KSE-30 index also gained 42.93 points to close at 12, 445.24 points against the previous 12, 402.31 points. The KSE all-share index closed with a gained of 34.11 points to 10, 116.99 points as against 10, 082.88 points. Mehanti stated that institutional support witnessed in blue chip stocks in oil, banking and cement sector on improvement in Pak-US relations, PPL license to explore in Iraq and speculations ahead of release of US Coalition Support Fund of $1.5bn despite concerns for Moody’s bond downgrade. D.G.K. Cement was the day’s volume leader counting its traded shares at 17.916 million with the opening and closing rates standing at Rs 43.49 and Rs 44.64, followed by NIB Bank Limited, Engro Food Limited, Cherat Cement, Jahangir Siddiqui Company and Lucky Cement with turnover of 6.688 million, 5.127 million, 4.214 million, 2.950 million and 2.497 million shares respectively. On the future market, the turnover decreased by over six million shares to 9.375 million against 15.036 million shares of Friday. The Rafhan Maize Prod and Unilever Food, up Rs 147.27 and Rs 57.40, lead highest price gainers while, Colgate Palmolive and Siemens Pakistan, down Rs 44.95 and Rs 21.57 respectively, led the losers.
Citi ‘jumps high’ in second quarter
ISE-10 stays bullish
NEW YORK: Citigroup profits fell 12 percent in the second quarter compared to the same period a year before, the bank announced Monday. The US banking giant said it made $2.9 billion dollars for the quarter as a drop in revenues from Europe, the Middle East and North Africa restrained profits. “Our core businesses performed well in a difficult environment and are generating solid returns,” said Citi’s Chief Executive Officer Vikram Pandit. “We had strong growth in both loans and deposits, showed resilience in our markets-facing businesses, and saw record revenues in Transaction Services,” he said. AGENCIES
ISLAMABAD: Islamabad Stock Exchange (ISE10) here on Monday witnessed bullish trend as the index gained 0.13 points to close at 2881.93 as compared to the previous day’s trading. First National Equity Pvt Ltd, Stock Analyst, M.M Hassan told APP that the expected positive results to be announced in next couple of the days caused the positive sentiments in the local stock market.” The low-priced shares of banking sector led the bullish rally in the markets because the investors took positions in this sector for short-trading rather than long-term trading,” he added. APP
Business 02 Major Gainers COMPANY Rafhan Maize Prod. Unilever Food UniLever Pak ICI Pakistan Abbott Laboratories
OPEN 3327.73 2809.82 7110.00 137.62 126.71
HIGH 3475.00 2868.00 7140.00 144.50 133.04
LOW 3200.00 2809.82 7120.00 141.00 128.50
CLOSE 3475.00 2867.22 7121.48 144.50 133.04
CHANGE 147.27 57.40 11.48 6.88 6.33
TURNOVER 15 109 28 367,129 182,937
Major Losers Colgate Palmolive 1239.95 Siemens Pakistan 666.57 Bata (Pak) Limited 669.00 Nestle Pakistan Ltd. 4135.00 Akzo Nobel Pak. 124.52
1202.01 665.00 670.00 4146.00 118.30
1195.00 638.00 650.01 4100.00 118.30
1195.00 645.00 650.12 4117.00 118.30
-44.95 -21.57 -18.88 -18.00 -6.22
290 275 182 39 372
Volume Leaders D.G.K.Cement NIB Bank Limited Engro Foods Ltd. Cherat Cement Jah.Sidd. Co.
43.49 2.32 66.50 34.63 13.79
44.95 2.47 69.82 35.40 14.15
43.28 2.25 66.90 32.90 13.71
44.64 2.38 69.82 33.09 14.03
1.15 0.06 3.32 -1.54 0.24
17,916,225 6,688,189 5,127,281 4,214,733 2,950,029
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.5450 146.7338 1.1972 115.1842
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
94.80 114.84 146.42 1.1897 92.51 12.04 25.70 25.20 95.84
SELL 95.50 116.20 148.11 1.2033 94.08 12.24 25.97 25.43 98.40
SECP grants licenses to 9 non-profit associations in 3 months ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted licenses to 9 non-profit associations under Section 42 of the 1984 Companies Ordinance from April to June, 2012. A statement issued by SECP said out of 9 licenses, 4 associations plan to work in the social services and 3 associations in healthcare sector and 1 each in education sector and the media. In the social services sector, Indus Crafts Foundation has been formed to revitalize the traditional hand-made crafts of Pakistan. Dabistan-e-Iqbal is formed to promote understanding about the works, philosophy and message of Allama Iqbal.STAFF REPORT
CORPORATE CORNER NADRA set to launch New Smart NICOP in Europe
launch their first ever international Ensemble multi brand outlet in Dubai on 08August 2012 at Al Wasl Road.
SWC appoints Murray as brand ambassador
ISLAMABAD: The National Database and Registration Authority unveiled its new ID card, the SMART National Identity Card for Overseas Pakistani at a ceremony in London today. The SMART Card is a 3rd Generation Chip-based identity document that is built according to international standards and requirements. The card has over 36 physical security features and uses latest encryption codes making it the safest card in the world. Speaking on the occasion, Pakistan’s High Commissioner to the United Kingdom Wajid Shamsul Hassan said: “The Smart CARD is a revolutionary technology developed by National Database and Registration Authority NADRA and this will provide great service and convenience to citizens.” He thanked the Government of Pakistan for this timely and critical step as it will help with smooth provision of social services, increase financial inclusion and facilitate with remittances to Pakistan.
Cathay Pacific releases combined traffic figures
KARAcHI: Andy Murray, Britain’s number one tennis player, currently ranked fourth in the world, has signed an ambassador agreement with Swiss watch brand Rado. Andy Murray has won 22 career ATP titles and in 2011 became only the seventh player since 1968 to reach the semi-finals of all four Grand Slam tournaments in one year.
KARAcHI: Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for June 2012 that show passenger numbers growing ahead of the increase in capacity, while another drop in cargo and mail tonnage was recorded.
JCR-VIS Entity ratings reaffirmed at A/A-2 KARAcHI: JCR-VIS Credit Rating Company Limited has once again re-affirmed the entity rating of ‘A/A-2’ (Single A/A-Two). The ratings incorporate the shareholding structure of HBFCL jointly held 62.5% by the Government of Pakistan (GoP) and indirect stake of 37.5% by the State Bank of Pakistan (SBP). State Bank of Pakistan is both shareholder and major lender of HBFCL. As stated in the letter issued by the CEO of JCR-VIS, the assigned rating incorporates the strategic importance of HBFCL as a housing finance arm of GoP; implicit support of the GoP to restructure the institution in a manner that becomes financially viable has also been built into the ratings.
ISLAMABAD: Ufone today introduced 20 winners of its ShahCar Offer 2 to the national media in a press conference held here at a local hotel. The lucky winners have won a fabulous Suzuki Swift car through Ufone’s offer.
Karachi: Following the success of the Ensemble family’s initiatives in Pakistan through their multi brand stores, salon, in house labels and their brand new concept store, entrepreneurs Zeba, Shezray and Shehrnaz Husain are now set to
KARACHI: DELL Pakistan was a part of the 11th Lux Style Awards (LSA) 2012 held in Karachi recently. Photo shows Mr. Shahzad Aslam Khan, Country Manager Dell and TV Actress Saniya Saeed announcing the nominations and winner in the ‘Best TV Drama Satellite’ award category.
French enjoy double celebrations
Huawei announces availability of its smart phones LAHORE: Huawei, a leading global information and communications technology (ICT) solutions provider, today announced that they would be launching 5 products from their Ascend Smart phone Series. Huawei and Airlink Communication will be working together to bring these smart phones in the open market by July 2012.
Samsung introduces Galaxy Ace Duos S6802 LAHORE: Samsung Electronics, a market leader and award-winning innovator in telecommunications and consumer electronics has announced the arrival of the ravishing SamsungGalaxy Ace Duos S6802, a GSM only dual SIM android smartphone, which allows users the convenience of dual SIM support.
SEZ Act 2012 hailed
Ensemble set to launch their first international store
domestic investors to set up industries in designated zones with all the required infrastructure and facilities.” Karachi Chamber of Commerce and Industry, Former President, Majyd Aziz said.
KARAcHI: “The approval of the Special Economic Zones Bill 2012 by Parliament is a manifestation of the government’s strategy to attract massive investment in the industrial sector and, at the same time, project Pakistan as a safe, profitable, and ideal place for setting up industries. The efforts of the Board of Investment under the leadership of Chairman Salim Mandviwala will ensure an incentive-laden package for foreign and
KARAcHI: The Consul General of France and Mrs. Christian Ramage, hosted a reception on the Occasion of National day at Alliance Francaise attended by Sindh acting Governor Nisar Khuro, Atta Ansari, press and political officer with host and other guests.
CAA gets another reward KARAcHI: Engineer Munawar Jamal Qureshi, Director Airworthiness, Pakistan Civil Aviation Authority was elected Member of CESSAIR (Commission of Experts of Supervisory Authority of International Registry) under ICAO council consecutively for the second term by President ICAO council. It consists of 15 members to be chosen from 284 member states of ICAO. Pakistan is member state who have signed and ratified to the Cape Town Convention “Aircraft protocol” that deals in mobile equipment on matters specific to “Aircraft Equipment”. CAA DG Nadeem Khan Yousafzail has congratulated Mr. Munawar Jamal for bringing this honour to Pakistan and pride for PCAA.