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Provinces unlikely to achieve budget surplus ISLAMABAD NNI
The Finance Ministry has expressed fears that the provinces might not be able to achieve the projected budget surplus of Rs 80 billion for the fiscal year 2011-12 due to election year and downward revision in revenue collection of the Federal Board of Revenue. Sources at the Ministry of Finance said the FBR revenue collection, which was originally estimated at Rs 2,381 billion for the current fiscal year, has been revised downward to Rs 2,193 billion. The decrease in FBR revenue collection would result in decline in provincial share from the divisible pool and consequently the provinces’ ability to generate surplus. Moreover, the Ministry of Finance has already revised estimated provincial surplus for the current fiscal year to Rs 50 billion from original projection of Rs 80 billion. The provincial transfer from the federal governments, which was estimated at Rs 1,562 billion for the current fiscal year, has now been revised downward to Rs 1444 billion, reflecting a shortfall of Rs 118 billion in provincial transfers, according to the budget strategy paper for 2013-16. The provinces closed their fiscal year in deficit by Rs 40 billion during the last fiscal year.
SECP introduces online financial reporting system KARACHI STAFF REPORT
In continuation of its efforts to strengthen the surveillance of equity markets, the Securities and Exchange Commission of Pakistan (SECP) has introduced online Financial Reporting System for the TREC holders/Brokers of the three stock exchanges. From July 2013 onwards, all TREC holders/brokers will be required to file their financial information online within 15 days of the end of each quarter. This effort is a part of Commission’s overall policy to make use of information technology and automation and to streamline the flow of information. Introduction of this online system will provide timely financial information with respect to TREC holders/Brokers and enable the Commission to proactively monitor their financial soundness and take preemptive measures for the protection of investors. For effective implementation of this system, the SECP will organize training sessions for the brokers at all the three Stock Exchanges.
WB allows $840 million for Tarbela extension project ISLAMABAD
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HE World Bank (WB) has agreed to provide $840 million for the Tarbela Dam extension project after the Ministry of Water and Power accepted the WB condition to open a separate escrow account to avoid the curse of the circular debt. According to reports, the WB decision will be a big blow to the oil mafia which is minting billions of rupees on account of thermal generation based on costly furnace oil and diesel. The secretary water and power took the much-awaited decision to open the escrow (revolving) account to obtain the credit line of $840 million for the Tarbela Extension IV Project, which the World Bank had withheld and linked to the opening of the account.
“Yes, we have decided to open the account and the World Bank will soon issue the NOC (No Objection Letter) to this effect. The NTDC will open the account either in the National Bank of Pakistan (NBP) or in Habib Bank Limited (HBL),” a senior official of the Ministry of Water and Power, said. WAPDA Chairman Syed Raghib Abbas Shah also confirmed that the Ministry of Water and Power secretary had asked the NTDC to open the escrow account so that Pakistan could benefit from the cheaper electricity of 1,350 MWs, which the Tarbela IV extension project would produce. “This will pave the way for ensuring the World Bank’s credit line of $840 million, which is imperative to complete the most viable project, that is the Tarbela Extension IV project.” The Tarbela IV project, with a capac-
increase its reliance on hydro ity to generate hydropower of generation as 68 percent 1,350MWs, had earlier hit electricity generation is snags as the NTDC inthe world Bank taking place through fluenced by the mighty decision will be a costly diesel and furoil mafia had refused nace oil and the oil to open the account. big blow to the oil lobby considers the The World mafia which is minting Tarbela-IV project Bank insisted on billions of rupees on as detrimental to its the account to preaccount of thermal interests in the vent the viability of country. the Tarbela-IV projgeneration based According to the ect from the adverse on costly furnace official, under the Tarimpact of the monoil and diesel bela-IV extension projstrous circular debt, ect, three turbine units, which is feared to touch a each having a capacity to genstaggering Rs 792 billion by erate 450MWs will be installed. The the end of the current financial year. The NTDC would have to deposit all country has right now the capacity to proceeds in the new account for electric- generate hydropower of almost ity to be supplied to it under the Tarbela- 7,000MWs and in case the project mateIV project to avert the cash flow crisis. rialises, the hydro generation would inThe oil lobby does not want Pakistan to crease up to 8,300MWs.
Azerbaijan to help resolve Pakistan’s energy crisis ISLAMABAD APP
Azerbaijan is keen to further enhance its bilateral, economic and commercial relations with Pakistan with special focus on improving the deteriorating energy situation of the country. “Azerbaijan has expertise in energy sector, having huge hydel power plants as well as expertise in exploration of oil and gas sector, therefore both the countries could cooperate in these areas to further enhance their bilateral relations,” Ambassador of Azerbaijan in Pakistan Dashgin Shikarov said in a meeting with office-bearers of Islamabad Chamber of Commerce & Industry (ICCI) on Friday. The ambassador informed the ICCI members that Azerbaijan would increase its airline fleet by 2014 to establish direct air-link between Islamabad and Baku which would bring people of the two countries closer to each other. He also underlined the need for establishing Pak-Azer-
baijan Business Forum and invited ICCI’s delegation to visit Azerbaijan that would open new avenues of cooperation. Dashgin said that the construction sector is one of the fastest growing areas of Azerbaijan’s economy as it is in process of constructing huge buildings and a new island that provide investment opportunity of about $130 billion. He said that the two countries also have a potential of joint ventures in pharmaceutical, agriculture and manufacturing sector. Speaking on the occasion, ICCI President Zafar Bakhtawari said that both the countries must ensure a liberal visa policy to enable the businessmen get visa easily and meet each other, which is imperative to boost trade between the two countries as there is enough potential in various fields between the two countries to increase trade. The ICCI president informed the ambassador that ICCI plans to host a meeting of ECO Capital Chambers Conference in Islamabad with the aim to promote mutually beneficial relation between Pakistan and ECO countries.
FPCCI demands exemption from gas, power cuts LAHORE APP
The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on Friday demanded total exemption from power and gas load shedding to strengthen the national economy besides saving the industrial and agricultural sectors from massive losses. The newlyelected FPCCI President Zubair Ahmad Malik and VP SAARC
Chamber of Commerce and Industry Iftikhar Ali Malik, in a joint statement expressing serious concern on massive load shedding, demanded that the government should accord top priority to industrial and agricultural sectors over domestic and commercial sector. They said round-the-clock power and gas supply throughout the year would accelerate economic growth and meet export targets timely besides helping in production of bumper crops.
Iftikhar Ali Malik said unprecedented load shedding would hamper the industrial production in the country and lead to reduction in export orders. He said that the industry was already facing acute energy crisis and the frequent increase in petroleum prices would further reduce liquidity. The high power, gas and petroleum tariffs had created liquidity crunch for importers of industrial raw materials, he added.
SBP pumps over Rs 379 billion into banking system KARACHI: The central bank on Friday injected over Rs 379 billion into the banking system which is facing an acute liquidity crunch, thanks to the rampant budgetary borrowings of the cash-strapped the government. The State Bank, through conducting 7-days reverse repo open market operation, pumped Rs 379.950 billion into the money market. Of the total 27 bids of Rs 430.900 billion received the bank accepted 20 bids to pump the said amount at 9.17 percent annual rate of return. “Total amount offered at 9.17 percent was Rs 114.100 billion out of which SBP accepted Rs 86.250 billion on pro rate basis,” the central bank said. According to SBP spokesperson, the regulator conducts reverse repo OMOs when there is a liquidity crunch in the money market. -STAFF REPORT
ICI Pakistan posts Rs 173m profit in 1Q2013 KARACHI: The Board of Directors of ICI Pakistan Limited Friday declared a profit after tax of Rs 173 million while approving the company’s financial results for the quarter that ended last month on March 31. According to a statement issued by Seemi Saad, manager corporate communications at the ICI Pakistan, the company’s profit witnessed an increase of 10 percent over the corresponding period of last year. “Higher volumes in the polyester and soda ash businesses took the company’s net sales income to Rs 9.3 billion,” the statement added. The sales income, it said, marked a 13 percent growth over last year. The company’s profit before tax, during the quarter under review, also ballooned by 10 percent to Rs 265 million, the statement said. The Board of Directors also announced an earning per share of Rs 1.88 for the quarter, registering 10 percent increase compared to the previous year. STAFF REPORT
PAkIstAn’s eConomy PerFormed well In 2012: Un rePort ISLAMABAD APP
Despite numerous challenges, Pakistan’s economy performed well in 2012 compared to 2011, United Nations said in its latest survey report. “There was improved performance in 2012 despite numerous challenges, including heavy rain and flooding in southern parts of the country, increases in fuel and commodity prices, the global slowdown and weak capital inflows,” says the UN Economic and Social Survey of Asia and the Pacific 2013. According to the report, the country’s GDP grew by 3.7% in 2012 as compared with 3% in 2011 and the agricultural sec-
tor also performed better than in 2011. As for manufacturing, its performance improved and the construction sector staged a strong recovery while higher growth in the industrial sector as a whole was achieved despite shortages of electricity and natural gas. On the other hand, the services sector witnessed somewhat slower growth, the survey observed. On the demand side, consumption, both private and public, grew at a higher rate in 2012 but investment declined, it said adding as a result, investment fell to 12.5% of GDP in 2012 from 13.1% of GDP in 2011. Inflation in Pakistan was brought down from 13.7% in 2011 to 11% in 2012 despite increases in international oil
prices, the effect of an upward adjustment in the administered prices of electricity and natural gas, supply disruptions due to heavy rains and flooding in the southern part of the country and heavy bank borrowings. The country achieved strong export growth at 28% in 2011 and value of total merchandise exports reached $25 billion. In spite of the crises in the Euro zone, a major destination for Pakistan’s exports, the country could maintain exports at nearly the same level as in the previous year. Overseas workers’ remittances continued to grow and crossed the $13 billion mark in 2012. The growth rate in remittances over the past two years exceeded 45% partly due to government efforts to
divert remittances from informal to formal channels. These remittances have helped in containing the current account deficit. However, the report pointed out that Pakistan’s economy is passing through a phase of low growth, saying that the protracted energy crisis and weak fiscal fundamentals are the main reasons behind slow growth. Similarly, the declining trend in private investment expenditures is continuing and without stemming the free fall in investment and addressing the challenge of chronic energy shortages, growth cannot be improved on a sustainable basis. The report predicted GDP growth of the country at 3.5% in 2013.
Pakistan’s economy is passing through a phase of low growth with protracted energy crisis and weak fiscal fundamentals the main reasons behind the slow growth
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Gold slide flashes warning signs for world economy
Audit to investigate vanished oGrA duty funds
NEW YORK AGENCIES
ISLAMABAD
The plunge in the gold price in the past week may have raised a big red flag over the global economy. Some top investors say the gold sell-off, and the broader declines in oil and metals prices, reflect the failure of the Federal Reserve and other central banks to create robust demand even as they inject massive amounts of money into the world financial system. The slide, which took gold to its biggest one-day loss ever in dollar terms on Monday, unnerved investors who saw billions of dollars in gains wiped out in a few days, and it may portend declines in other asset prices ahead. That may have begun this week with several days of big stock price drops. Some see the move in gold as a possible flashpoint for a broader economic and markets shock comparable to the collapse of hedge fund Long-Term Capital Management in 1998 and even the financial crisis a decade later. Both events were preceded by sharp drops in gold. The gold and commodities weakness is “signaling concerns about global growth,” said Mohamed El-Erian, the co-chief investment officer of PIMCO, which oversees $2 trillion in assets. “Commodities have been sending the signal on growth for a while, and now even louder.” And after the stampede out of gold earlier this week, investors on Thursday dumped their holdings of U.S. inflation bonds after a lousy auction.
HE Oil and Gas Regulatory Authority (OGRA) plans to conduct an audit of oil refineries in an attempt to find out where the billions of rupees collected from consumers on account of duty have disappeared, since refineries have so far not upgraded their plants to produce cleaner fuel. According to sources, the regulator is concerned over failure of oil refineries to produce fuel compliant with European standards despite collecting the duty, which they had been allowed to receive in order to modernise themselves and set up de-sulphurisation plants. The refineries are said to have received over Rs 200 billion in deemed duty from consumers since 2002. Currently the duty is imposed on diesel sales only. Earlier, petrol and kerosene consumers were also paying the duty. “Oil refineries have spent 50% of the deemed duty on servicing or clearing their bank loans and declared that they were covering their losses from special reserves under a formula,” a source said, adding that they had only Rs 7 billion in special reserves. A judicial commission, formed by the Supreme Court, had recommended scrapping the duty for it was not achieving the desired objective. The refineries were scheduled to set up de-sulphurisation plants in 2012, but they got an exten-
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sion from the government until July 1, 2014. Later, the Economic Coordination Committee (ECC) of the cabinet pushed the deadline to December 2015. At present, Pak Arab Refinery Company (PARCO) is the country’s only refinery that is producing Euro-II-compliant diesel. Pakistan Refinery Limited (PRL) Managing Director Aftab Hussain said the refineries used to deposit 50% of the deemed duty in special reserves to cover their losses, stressing that since 2002 they had been operating under a formula set by the government. Now, a new formula, approved by the ECC, would bar them from doing so starting from the next financial year, he said, adding that an Escrow account would be opened to deposit the duty collected from consumers. According to sources, OGRA is going to start the audit to find out where the duty was spent and why only one refinery has been able to set up the clean fuel-producing plant. Earlier, OGRA had opposed any increase in the rate of deemed duty and insisted that the refineries should establish upgraded plants by the deadline of July 2014. The regulator argued that in case of increase in duty, consumers would be forced to pay an additional $2.5 billion. Instead, OGRA suggested that the oil refineries should modernise their plants and recover its cost. Despite the resistance, the ECC has increased the duty from 7.5% to 9%, which will come into force from January 2016.
major Gainers COMPANY Unilever Food XD Wyeth Pak Ltd XD Sanofi-Aventis XD Bhanero Tex. Clariant PaK.
OPEN 4332.00 1266.50 428.25 286.33 263.91
HIGH 4400.00 1329.82 447.99 300.64 277.10
LOW 4115.40 1315.00 447.95 300.49 264.99
CLOSE CHANGE 4400.00 68.00 1329.82 63.32 447.99 19.74 300.64 14.31 277.10 13.19
TURNOVER 1,740 1,600 300 300 22,900
3850.00 380.00 429.00 162.00 370.00
3850.00 380.00 420.00 161.41 361.00
3850.00 380.00 420.00 161.41 362.00
-52.00 -10.00 -9.00 -8.49 -6.00
20 100 200 1,000 1,900
42.60 12.38 141.20 19.50 7.35
40.76 11.33 136.50 18.51 6.97
41.77 11.77 137.45 18.64 7.31
0.71 0.31 -0.88 -0.51 0.23
18,869,500 14,207,500 12,474,800 8,523,000 7,465,500
major losers Rafhan Maize Indus Dyeing Shezan Inter. Sunrays Textile Exide (PAK)
3902.00 390.00 429.00 169.90 368.00
Volume leaders National Bank.XDXB 41.06 Engro Polymer 11.46 Engro Corporation 138.33 Maple Leaf Cement 19.15 Lotte PakPTA 7.08
Interbank rates USD GBP JPY EURO
PKR 98.3575 PKR 150.9492 PKR 0.9908 PKR 128.7598
Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.20 128.46 149.73 0.9835 95.09 12.49 26.75 26.25
SELL 99.45 128.71 149.98 0.9938 96.79 12.72 27.00 26.50
CORPORATE CORNER
MARKHAM: Frank Scarpitti, mayor of the Canadian city Markham, hosted a reception for Khalil Ahmed Nanitalwala, chairman Medicam Group. PR
Hira Lari launches Lawn Spring 2013
KARACHI: The vibrant summer season arrives with the spirit of love everywhere. Gear up to update your wardrobe with a breath-taking mesmerizing Hira Lari Summer Collection 2013. The Collection is truly nature inspired, perfectly combined with rich folk inspired patterns, and silhouetted look. The Hira Lari Summer collection is a beautiful amalgamation of illustrated prints; creative backgrounds; transparent overlay and ethnic floral mix beautifully combined with the most unusual attractive color combos. The coordinating applique embroidery neck pieces and borders are the value addition, which makes it more fascinating. The designs are available in different colors to provide variety. The vibrant colors and trendy designs make the prints quite irresistible. PR
drinking water to communities in need. Under the Keeping the Hope Alive and Safe Schooling for Building Futures program P&G has partnered with Health Oriented Preventive Education (HOPE) and READ Foundation to provide quality education to children from impoverished neighborhoods. A P&G Home has been established at the SOS Children’s Village in Islamabad which is enabling ten orphan children to live a normal life. The Safeguard and Always School Education programs aim to instill outstanding hygiene habits amongst children and Pampers Mobile Clinics provide mothers who are unaware about healthy babycare practices with important information at their doorsteps. PR
Habib Group launches Habib University
Across the aisle: Towards a national agenda
KARACHI: Habib University, a pioneering initiative in higher education, was introduced at a fundraising dinner hosted by Mr and Mrs HM Habib. The event held at HM Habib’s residence was attended by noted philanthropists and businessmen. The dinner brought the university management and patrons together, interacting and exchanging ideas on how a dedicated front can help improve the state of higher education in Pakistan. Welcoming guests at the event, Rafiq Habib introduced the upcoming Habib University as a continuation of Habib Group’s numerous philanthropic projects. He acknowledged the Board of Directors present and also thanked the Donors who contributed generously to the University project. Wasif A. Rizvi, President Habib University, shared the idea of creating a worldclass, research-based undergraduate institution in Pakistan, committed to academic excellence and amalgamating local heritage and international exposure for the new generation. PR
KARACHI: The APNA Pakistan movement has further capitalized on its achievements, under the banner of Contech International, and has gained another mile stone to address critical situation of maternal and child health, and its linked high mortality rates in Pakistan. APNA Pakistan has achieved a consensus on “National Agenda” amongst key political parties, religious scholars, health and population experts for improvement in the existing alarming situation of maternal and child health and provision of comprehensive reproductive health. Political will, together with commitment from societal influential people like policy entrepreneurs, population and health experts, religious and minority leaders was achieved through a non partisan forum ‘Across the Aisle’ on 31st December, 2012. This first collaboration emerged into a pledge that led to a policy road map. Consolidation continued in the
subsequent multiple events. Sessions of the Core Working Group, face to face meetings with political leaders, round table conferences with policy entrepreneurs and televised debates were conducted successfully to deliberate on the situation of health, population and development of a policy framework for further action. PR
NIDA Peshawar holds seminar on industrial automation LAHORE: National Institute of Design and Analysis (NIDA) Peshawar centre held a free seminar on industrial automation at CECOS University Hayatabad Peshawar on April 12. Fahim Khan was affianced as the workshop trainer to impart the incorporative utility of automation technologies to increase productivity and robustness of the industrial procedures. Dr. Riaz Ahmed Khattak Khan, Vice Chancellor CECOS University was the chief guest at the event, whereas other guest speakers were invited to share their expert outlook about the increasing partake and potential gains of industrial automation in Pakistan. They also expounded about various contours of automation programming; PLC (Programmable Logical Controls), SCADA, HMI, their demand and dependability in the industry. NIDA (National Institute of Design and Analysis) is a subsidiary institute of TUSDEC (Technology Upgradation and Skill Development Company). The centre is offering many short courses and diplomas in extensive CAD/CAM disciplines and also fostering vocational and technical trainings in a multiplicity of employable trades like mobile repairing, computer maintenance, UPS Assembling and solar technologies. PR
P&G wins at NFEH CSR Awards KARACHI: P&G Pakistan has been recognized for its CSR efforts by the National Forum for Environment and Health at the CSR Business Excellence Awards 2013. P&G received awards in the categories of Social Impact and Social Commitment Report. The award recognizes the positive difference P&G’s community programs are making in the areas of health and hygiene awareness, education and orphan care across the country. Over the years P&G programs have touched and improved lives of 28 million Pakistanis, providing everyday basics that help create the experience of home and improving everyday health and confidence. The Children’s Safe Drinking Water Program (CSDW) provides clean
KARACHI: Dr Hilal Hussain Al Tuwairqi, Chairman Al Tuwairqi Holding, Zaigham Adil Rizvi, Country Head/Director Projects Tuwairqi Steel Mill Limited, Shaoib Akhter, General Manager Finance and Accounts Al Tuwairqi Holding-Kingdom of Saudi Arabia, Anthony Phillips, Chief Operating Officer Al-Ittefaq Steel Product Company, Ishtiaq Ashraf, Financial Controller Tuwairqi Steel Mills Limited, Kim Tae-Kyun, Growth and Investment Division Steel Business Department II, Department Manager POSCO-South Korea, Young ho Yoo, Resident DirectorPakistan POSCO, and Seung-Gi Kang, Manager Overseas Steel Business Department. PR