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Saturday, 19 January, 2013
Trade, industry incur losses of Rs 4b as Karachi mourns slain MQM leader KARACHI IsMAIL DILAWAR
W
ITH the Karachi Stock Exchange (KSE) cutting the trading session at the country’s largest bourse short to half-day, traders and the industry claim to have incurred a loss of $ 3-4 billion on Friday. The day saw the financial capital of the country shut as paranoid Karachi citizens preferred to remain indoors to avoid any untoward situation on the second day of the three-day mourning announced by the Muttahida Qaumi Movement (MQM) on the cold-blooded murder of its provincial lawmaker, Syed Manzar Imam, on Thursday. With civic and commercial activities completely static, the day saw the front regulators at KSE suspending all the markets at 12:30pm. “The brokers of the Ex-
‘Agriculture sector trade with India not in favour of country’
ISLAMABAD: Harvest Tradings CEO Ahmad Jawad and business experts have said that trade with India in agri products without subsidy would not be beneficial for Pakistan in any aspect. Jawad said on Friday that Pakistan agriculture sector would face real difficulties in opening of trade while India will deprive Pakistan of water by 2020. He said the Pakistan industry was affected after opening of free trade with China and the same situation may be faced at the start of trade with India. Harvest Tradings CEO said Indian PM Manmohan Singh already had announced that there could be no “business as usual” with Pakistan after a clash last week, but we believe in free trade and frequent interactions that is the future of the two countries, with a volume of $2.5 billion and which is expected to reach $8 billion in the next two years. Jawad said Pakistani agriculturists are not against trade with India but they expect to be protected against the highly subsidised agricultural products of India On average, each agriculture hectare gets a subsidy of $300 per year in India. “This works out to be around Rs 11,900 per acre of subsidy. Pakistan can only benefit and target the huge retail market in India if subsidies are provided to the farmers and also substitution of imports with cheaper imports from India. The potential import items include tea, spices, auto parts, consumer and light engineering goods, tyres and transport equipment, entertainment, healthcare, information technology, and pharmaceuticals. The resultant potential savings would be up to $1 billion for Pakistan and benefit the local consumer, who will have access to more choices and cheaper products, Jawad added. He said Pakistan must urge India to remove barriers and provide a level playing field to Pakistani exporters. INP
change are hereby informed that due to the prevailing situation in the city, the Exchange has decided to suspend all markets at 12:30pm,” said a KSE notice issued on Friday. The window for trade rectification and NDM market however remained available up to 1:30pm. KSE general manager operations Abbas Mirza, in the notice said the trading of Friday shall be merged with trading of Monday and shall be settled on Wednesday. The short session said the KSE 100share index gaining 310.68 points was to close at 16,601.77 points against Thursday’s 16,291.09 points. The trading volumes surged to 181 million from 144 million of the previous session. ”The investor sentiments turned bullish at KSE after long march ended on a positive note amid political consensus on electoral reforms,” said Ahsan Mehanti,
day. “The wholesale markets may not be opened today,” he said. The AKTI chief said a delegation of traders participated in Imam’s funeral where they took the grieved leaders of the MQM into confidence and decided to open the markets. However, despite the AKTI announcement most of the retailers in the city’s commercial centres kept their shutters down with only a few doing business, some with half-closed shutters. The fuel stations, however, were seen open in the second half after the traders’ body gave them a green signal. Asked about the estimated losses to traders, Mir said it was around Rs 2 billion a day. “The retailers would also have incurred losses for the half day closure,” he said. In his estimates for losses, Mir said industries were not included. The AKTI chairman replied in affirmative when asked if all the retail and wholesales markets would open from Sat-
an analyst and director at Arif Habib Securities. He said strong earnings outlook, higher global commodities and current account surplus of $250 million reported for the first 6 months of fiscal year played a catalyst’s role in the bullish close in stocks across the board at a short session at KSE amid hopes for positive Pak-IMF talks on fresh loans. In the afternoon, All Karachi Tajir Ittehad (AKTI) Chairman Atiq Mir, announced to have attended the funeral of the slain MQM leader, Manzar Imam, where he said the traders took the MQM leadership into confidence for opening the markets in the second half. “A delegation of AKTI attended the funeral of the MQM leader. The markets would immediately be opened,” said the trade leader. Mir, however, told Pakistan Today that only retail markets and not the wholesale ones would be opened on Fri-
More global recovery work needed, warns Lagarde WASHINGTON AgeNcIes
International Monetary Fund chief Christine Lagarde warned on Thursday that more efforts were needed to get the global economy back on track. “We stopped the collapse, we should avoid the relapse, and it’s not the time to relax,” Lagarde said at a news conference at the multilateral institution’s Washington headquarters. “There’s still a lot of work to be done,” said Lagarde. The IMF managing director (MD) pointed to signs of economic improvement but also noted deterioration on the jobs front which she called critical from not only from an economic point of view but also from a social point of view. “We need growth for jobs and jobs for growth,” she said. The eurozone, the center of the public debt crisis dragging down global growth, and where the IMF together with the European Union (EU) has rescued Greece, Ireland and Por-
tugal, has to do more to address its challenges, she said. Financial firewalls erected by the EU and the European Central Bank, such as the European Stability Mechanism rescue fund and ECB bond purchases, “have not proven operational.” “Progress needs to be made on the banking union,” she added. Lagarde suggested that further
monetary easing in Europe may be appropriate to sustain demand. As for the United States, the IMF chief called on bitterly divided politicians to reach a compromise on the nation’s borrowing limit and deficitreduction plans. “All sides should pool together in the national interest” to avoid another “avoidable political mistake,” she said.
urday (today) in the city. When contacted, Karachi Chamber of Commerce and Industry (KCCI) President Haroon Agar said the losses traders and industry faced on the day ranged between Rs 3 and Rs 4 billion. When asked if the figure was inclusive of the losses faced by the retail and wholesale markets, the KCCI chief said, “All together”. Disappointed with the government’s “hollow” assurances on improvement of law and order in the city, the traders in this volatile city have been calling for the deployment of army to maintain peace. AKTI chief Mir, a long time proponent of army’s deployment in Karachi, still believes the city should be given under the control of the armed forces. “Of course,” was his response when asked if he still deemed the military as a saviour of peace and order in the financial hub of the country.
Meezan Bank recognised for the ‘Best Deal of the Year 2012’ KARACHI: Meezan Bank,the country’s first and largest Islamic Bank, has been awarded ‘Pakistan Deal of the Year ‘ and ‘Musharakah Deal of the Year’ honour for 2012 by Islamic Finance News of REDmoney Group, Malaysia. A Meezan Bank statement issued on Friday said that the Islamic Finance News (IFN) Awards honour the best in the Islamic financial industry and is one of the most prestigious and recognised awards in the global Islamic financial markets. It said that the ‘Sui Southern Gas Company (SSGC) PKR 2.0 billion Certificates of Leasing (Sukuk)’ advised and arranged by Meezan Bank was highlighted as the ‘Pakistan Deal of the Year’. Meezan Bank developed a unique and tax efficient financing structure for SSGC based on Ijarah, the statement added. It said that the ‘Musharakah Deal of the Year’ for the Liberty Mills, PKR 500 million Running Musharakah, was awarded to Meezan Bank for its first ever transaction of Running Musharakah in the textile sector. APP
IP gas project to help overcome gas, power crises ISLAMABAD APP
The $ 1.2 billion Iran-Pakistan gas pipeline project, set to be completed next year, may prove a bonanza for the hard-pressed energy sector of Pakistan’s economy as the initiative will supply 750 million cubic feet of gas besides helping to contribute 4000 MW of electricity to the national power grid. Iran is stated to have completed 900 km of work on its side while Pakistan launched its part of work last month, thus setting the stage for an ambitious undertaking which will greatly overcome Pakistan’s severe energy shortages. In the prevailing energy crunch, the PPP-led coalition decided to go ahead with the project despite stiff opposition from some quarters. However, the Pakistani government despite the pressure has signed the agreement with Iran to meet its energy shortages. President Asif Ali Zardari and Iranian President Mahmoud Ahmadinejad signed the Inter-Governmental Framework Declaration (IGFD) of the IP project in Tehran on May 24, 2009. After
signing ceremony of the Sovereign Guarantee Agreement (SGA), Pakistan’s then Minister for Petroleum and Natural Resources Naveed Qamar signed Gas Sales and Purchase Agreement (GSPA) with Iran on June 5, 2009 through which Pakistan would import one million cubic feet gas per day. The government had also appointed the engineering and project management teams in April 2012, to conduct route surveys on IP, who later submitted
a final detailed report on the project. Pakistan is experiencing a prolonged power crisis, low gas pressure and suspension of Compressor Natural Gas (CNG), adding to the problems of the masses. Advisor on Petroleum and Natural Resources to the Prime Minister Dr Asim Hussain said the government wanted to complete the project as soon as possible in order to overcome the looming power and gas crises.
He termed the project beneficial for both countries and said, “We are dependent on this project as there is no other substitute at present to meet the growing energy demand.” He said the government of Pakistan had started work on the project in December 2012, while Iran had already constructed more than 900 km of the gas pipeline on their side. Asim stated that after completion of the project, it would start supplying 750 million cubic feet gas per day. He said the implementation of the project showed that Pakistan had a flexible foreign policy. In a press conference on the sidelines of the summit of the Group of Eight Developing Countries (D8) in Islamabad on November 22, Iranian President Mahmoud Ahmadinejad vowed to complete the multi-billion dollar project within the stipulated time. He said the portion of pipeline on Iranian side was about to be completed while Iran was also extending financial assistance to Pakistan to complete the project. Another purpose of signing this pact was to strengthen the bilateral relations between the two countries.
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Business 02
Saturday, 19 January, 2013
Export of sports goods increased 11% in Nov, 0.17% in 5 months ISLAMABAD APP
Exports of sports good from the country witnessed a slight increase of 0.17 percent during the first five months of the current fiscal year compared to the same period of last year. However, on a year-on-year basis, the exports of sports good increased by 10.93 percent during November 2012 as compared to the same month of last year, Pakistan Bureau of Statistics (PBS) reported. Exports of sports good were recorded at $124.277 million during July-November (2012-13) against the exports of $124.070 during July-November (2011-12), according to PBS data. Among the products that contributed towards positive growth included gloves, exports of which increased by 29.47 percent. The exports of gloves increased from $40.394 million dur-
ing the first five months of last fiscal year to $52.297 million during the current year, the data revealed. However, the exports of footballs decreased from $56.305 million last year to $52.804 million during the current year, showing a negative growth of 6.22 percent. Exports of all other sports goods decreased by 29.94 percent going down from $27.371 million last year to $19.176 million this year. On year-on-year basis, the overall exports of sports goods in November 2012 increased by 10.93 percent by going up from $19.739 million during November 2011 to $21.897 million during the month under review. However, as compared to the exports of $26.388 million during October 2012, the sports good exports in November 2012 decreased by 17.02 percent, the PBS data revealed. As compared to November 2011 and October 2012, the ex-
Dr Brohi appointed president of NBP
ports of footballs increased by 21.56 percent but decreased by 8.36 percent respectively. The exports of footballs in November stood at $9.438 million against the exports of $7.764 in November 2011 and $10.299 million in October 2012. The exports of gloves in November 2012 increased 19.99 percent when compared to the exports of November 2011 but decreased by 29.85 percent when compared to the exports of October 2012. The exports of gloves in November 2012 were recorded at $9.042 million against the exports of $7.716 million in November 2011 and $12.890 million in October 2012. Meanwhile, exports of all other sports good in November 2012 decreased by 19.77 percent as compared to November 2011 but increased by 6.81 percent when compared to October 2012. The exports of other sports good during November 2012 stood
Business community demands tax concession for one year ISLAMABAD APP
KARACHI: The federal government has appointed Dr Asif A. Brohi, as President/CEO of National Bank of Pakistan. A Master in Business Administration from Northrop, California and Doctorate in Public Administration, Dr Brohi joined NBP in 1984 as an Assistant Vice President. Dr Brohi was previously serving as Chief Operating Officer and Head of Commercial & Retail Banking Group of NBP, and has rich experience in all spheres of banking spanning over almost three decades. He has in the past headed the NBP’s Operations Group, Strategic Planning Group, Information Technology Group, Culture Change Programme Group and Training. He was also Regional Chief Executive, Karachi. Before joining NBP, he has taught in various universities in the United States of America. Dr Brohi has also been serving on the Board of Directors of NBP Leasing Limited, the Hub Power Company, Fauji Oil Terminal & Distribution Co. Ltd, First Credit & Investment Bank Limited (FCIB), NBP Fullerton Asset Management Company Limited, NBP Modarba Management Co. Ltd, National Asset Insurance Company Limited and Close Joint Stock Subsidiary, Almaty Kazakhstan. sTAFF RePORT
at $3.417 million against the exports of $4.259 million in November 2011 and $3.199 million in October 2012, the data revealed. In a positive development, the country’s trade deficit decreased by 14 percent during the first half of the current fiscal year as exports expanded by 7.58 percent and imports witnessed negative growth of 3.33 percent. The overall exports from the country increased from $11.202 billion in July-December 2011-12 to US$12.051 billion during JulyDecember (2012-13). On the other hand, the imports decreased from $22.678 billion last year to $21.922 billion during the current fiscal year, showing negative growth of 3.33 percent, the data revealed. According to the data, the trade deficit during the fist six months of current fiscal year stood at $9.871 billion against the deficit of $11.476 billion, showing negative growth of 13.99 percent.
The business community on Friday observed that due to the recent long march and sit-in at Blue Area of the federal capital, the business community has suffered a daily loss of about Rs 7 billion along with a long term negative impact on the business of the capital. In a bid to recover the losses incurred due to the recent long march to the businessmen of the federal capital, the business community demanded the government to provide tax concession to all commercial outlets situated along the most affected area for one year. “Due to the sit in of Dr Tahirul Qadri and his supporters, the routine life of Islamabad remained disturbed for about a week due to which business community suffered billions of rupees losses,” said the Media coordinator of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Sohail Malik. He claimed that a daily transaction of about Rs 7 billion in the Blue Area was badly affected due to the long march and it will also have long term impact on the business of the capital. With the end of long march, the normal life can not revive immediately and it will take a week or more to resume the hustle and bustle in the commercial markets of the capital, he added. He said the participants of the long march were allowed to gather at a place which is the hub of business activities of the city that created nuisance for the businessmen. He said there are a number of money changers, hotels, restaurants, multinational business offices, branded outlets and stock exchange outlets in the area which remained shut for 4-5 days. Ever since the TMQ’s sit-in started, almost all the 50 plazas of the Blue Area remained closed. Islamabad Chamber of Commerce & Industry (ICCI) President Zafar Bakhtawari said although the markets in the capital other than Blue
Area remained partially functional, the residents of the capital did not come out to visit the markets due to the uncertain situation. The business community had raised their concerns ahead of the long march and raised their voice to stop this march as it would disturb the normal life of the capital. “Business community had nothing to do with the ongoing political situation, but still this community suffered the most,” he added. Meanwhile, in a statement the ICCI welcomed Dr Tahirul Qadri for ending the Long March after reaching an agreement with the government negotiating team which, the statement said, would help improve the image of democracy in Pakistan as well as maintaining political stability in the country. Bakhtawari also appreciated the peaceful attitude of participants of the march, who he said exhibited a new example of patience and commitment in the history of our country. He said the business community of Islamabad had many reservations about the long march but it is appreciable that not a single incident of damage to public and private property was reported in the last four days. Bakhtawari also hailed the government delegation which was led by Chaudhry Shujat Hussain for having a positive negotiation with Qadri, ending the sit-in in an amiable atmosphere and reconciliatory spirit. He was of the view that political stability is a pre-requisite for economic growth and development of the country in the prevailing global scenario. The ICCI chief urged leaders of all political parties to help strengthen the democratic system in the national interest by burying their political differences and said political stability was a key factor worldwide for economic development and for restoring confidence of foreign and local investors. He also stressed the government to proactively deal with the ongoing crises to avert industrial closures and resultant economic downturn.
Weekly InflatIon goes doWn ISLAMABAD APP
The Sensitive Price Indicator (SPI) for the week ending on January 17 for the lowest income group up to Rs 8,000 registered a decrease of 0.33 percent compared to the previous week. The SPI for the week under review for the above mentioned group was recorded at 185.84 points against 186.45 points registered in the previous week, according to provisional figures of Pakistan Bureau of Statistics (PBS). The weekly SPI has been computed with base year as 20072008, covering 17 urban centres and 53 essential items for all income groups and combined. The SPI for the combined group decreased by 0.41 percent as it went down from 191.79 points in
the previous week to 191.01 points in the week under review. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 7.31 percent. As compared to the last week, the SPI for the income groups from Rs 8001-12,000, 12,001-18,000, 18001-35,000 and above Rs 35,000 decreased by 0.36 percent, 0.40 percent, 0.43 and 0.43 percent respectively. During the week under review average prices of 7 items registered decrease, while that of 23 items saw an increase with the remaining 23 items’ prices unchanged. The items which registered decrease in their prices during the week under review included tomatoes, egg hen (farm), potatoes, chicken live (farm), onions, red chillies (powder) and mash pulse (washed).
The items which recorded increase in their average prices included bananas, georgette, shirting, moong pulse (washed), salt powdered (loose), wheat, gram pulse (washed), energy saver, masoor pulse (washed), rice (irri-6), vegetable ghee (loose), bread (plain), LPG, rice (basmati broken), firewood, lawn, cooking oil (tin), sugar, garlic, gur, long cloth, mutton, wheat and flour (bag). The items with no change in their average prices during the week under review included beef, milk (fresh), curd, milk (powdered), mustard oil, vegetable ghee (tin), tea (packet), cooked beef, cooked pulse, tea (prepared), cigarettes, sandal (gents), chappal (gents), sandal (ladies), electric charges, gas charges, kerosene oil, washing soap, match box, petrol, diesel, telephone local call and bath soap.
Major Gainers COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE
TURNOVER
Indus Dyeing
619.50
638.99
638.99
638.99
19.49
100
National Foods
271.03
283.90
278.00
283.90
12.87
7,100
Pak Oilfields
427.26
438.00
432.00
437.80
10.54
247,500
Wyeth Pak Limited 910.00
920.00
920.00
920.00
10.00
50
Clariant Pak
279.00
274.00
279.00
10.00
2,600
3700.00 1250.00 320.00 106.32 104.61
3700.00 1230.00 320.00 106.32 104.61
3700.00 1230.00 320.00 106.32 104.61
-98.46 -30.00 -10.00 -5.59 -5.50
20 200 100 500 500
7.43 15.67 14.19 15.74 7.19
7.12 15.01 13.81 15.20 6.77
7.39 15.67 13.90 15.70 7.10
0.50 1.00 0.63 0.96 0.44
42,191,000 15,465,500 13,517,000 13,373,500 13,013,500
269.00
Major Losers Rafhan Maize Prod. Bata (Pak) Sanofi-Aventis Pak Khyber Tobacco Blessed Tex.
3798.46 1260.00 330.00 111.91 110.11
Volume Leaders Fauji Cement Maple Leaf Cement Byco Petroleum Jah.Sidd. Co. TRG Pakistan Ltd.
6.89 14.67 13.27 14.74 6.66
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.5 155.78 1.08 130.46
Forex Rates BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
98.40 129.91 155.01 1.0821 97.77 12.43 26.65 26.10 102.00
99.10 131.87 157.30 1.0974 99.86 12.72 27.00 26.44 105.00
CORPORATE CORNER Happilac celebrates achievement KARACHI: Happilac celebrated its 35 years milestone achievement on December 28 on the occasion of their Annual Dealers Convention. The event was attended by 800 people from all across the country. The attendees were leading dealers, distributors, corporate clients and media delegates. The guests were warmly welcomed by the management of Happilac. Kh. Shahid Razzak Sikka (CEO), Kh. Khalid Razzak Sikka (Director), Kh. Sajid Razzak Sikka (Director), Kh. Ammad (Director-Paints), Kh. Fahad (Director-Cons Chemical), Kh. Ali (Director-Road Marking), Kh. Ahmed (Director) greeted the attendees and thanked them all for being a part of this prestigious occasion. The event started with recitation of Holy Quran and later management & sales force shared their thoughts, experiences and vision regarding the brand and thanked all who played the key role in the successful achievement of 35 years milestone. PR
Samsung brings ‘Khushiyon Bhara Aghaz’ for newly-wed couples LAHORE: Samsung Electronics has launched a special campaign from January 15 till February 14 to add excitement and create value for customers during the wedding season in Pakistan. This offer named “Khushiyon Bhara Aghaz” presents a wide range of products based on cutting-edge technologies for newly-wed couples. These products are tailored to double-up the joys of those memorable moments in their lives. All newly-wed couples can now purchase the latest home appliances and electronics, to enrich their lifestyle with Samsung’s LED TV, Plasma TV, Automatic Washing Machine, No-Frost Refrigerators and Vacuum Cleaner. The Managing Director of Samsung EC Pakistan Pvt. Ltd. – John Park said; “Samsung has once again created this delightful offer for its customers. This time we decided to share the joy with all the excited couples who are planning a shopping spree for their wedding. Samsung aims to ensure that their new journey in life becomes a pleasant, convenient and comfortable experience, as they enjoy the innovative, luxurious appliances and digital entertainment products from a global technology leader.” PR
9th Study Malaysia Exhibition 2013 today KARACHI: The 9th Study Malaysia Exhibition will start in Karachi from today (Saturday) from 11am to 8pm, organised by North Pole International (Pvt.) Ltd., and continue till Sunday at PC Hotel. The Consul General of Malaysia in Karachi Abu Bakar Mamat will be the chief guest and inaugurate the exhibition at 11am. This expo is sponsored by 10 best Malaysian Universities and would provide a showcase to Malaysian education system with top Malaysian universities representatives available to guide career savvy students and their parents on study options available in Malaysia. PR