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Lalpir Power subscribed by 6.0x, strike price Rs22 KARACHI: Lalpir Power is the first IPO of 2013 in the booming Pakistan market, said market observers on Wednesday. “Lalpir six times subscribed, strike price Rs 22,” said Mohammad Sohail, CEO of Topline Securities and an equity analyst. The sponsors of the company offered 10% of total paid up capital or 37.9 million shares for sale through book-building and traditional methods and 5% by green shoe option, they added. Out of 37.9 million shares, 28.5 million were offered to institutional and high net worth individual investors in book building which was held on June 18 and 19. “In the book building process Lalpir Power was oversubscribed by 6.0 times,” said Asad I Siddiqui, an analyst at Topline Research. For 28.5 million shares, bids of 169.4 million were received, strike price was settled at Rs 22, he said. With strike price of Rs 22, Lalpir Power was offered at trailing PE of 5.8 (FY12 EPS Rs 3.8) and trailing DY of 12% (FY12 DPS of Rs 2.7). “Lalpir’s offer for sale will translate into gains for NML and AICL,” said Siddiqui. The impact, he said, will be positive Rs 0.24 per share for NML and Rs 0.21 per share for AICL. He further said if green shoe option in public offer (likely in July) is exercised, the impact on NML will be positive Rs 0.36 per share and Rs 0.31 per share on AICL. staFF rePort
Courtesy PakWheels
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HE Islamabad High Court (IHC) on Wednesday declared the amnesty scheme introduced by the previous government for smuggled vehicles as illegal and ordered the Federal Board of Revenue (FBR) to confiscate 50,000 such vehicles. The court also ordered the FBR to announce the auction of vehicles that were imported without paying normal government taxes. A single member bench of the IHC comprising Justice Shoukat Aziz Siddiqui resumed hearing of a plea, filed by Khawaja Saad Salim, seeking nullification of government’s amnesty scheme legalising vehicles that were smuggled into the country after paying nominal taxes.
During the course of hearing, Syed Jabed Akbar, counsel for the petitioner apprised the bench that the FBR had begun the amnesty scheme for registration of smuggled vehicles through SRO 172(1)/2013 on March 5, 2013, to avoid the normal taxes and duties on import of automobiles. The scheme caused losses to the tune of billions of rupees to the national exchequer at the cost of all taxpayers and citizens of the country, he said. Akbar argued continuation of the amnesty scheme introduced may result in creation of a black market for vehicles in the country on a permanent basis. This black market would act as a parallel market of automobiles in the country and will greatly damage the lawfully existing market, he added. The SRO is mala fide and has the illegitimate aim of smuggling motor vehicles, which cannot be brought to the country
through normal channels, or if brought through the said normal channels, would not yield the profit earned through concessions allowed by the said SRO, the counsel stated. Akbar contended such schemes’ are intended to be misused and a number of officers of the respondents have hatched a concerted scheme with those who were involved in business of smuggling the vehicles, adding that the responsible authorities had miserably failed to prevent such schemes. The amnesty scheme is a glaring example of one of the corrupt and illegal acts done by the former FBR chairman Ali Arshad Hakeem, to benefit his political masters, during the last days of the government’s tenure, he alleged. He said introduction of the scheme was a classic case of a public authority acting “absurdly, irrationally and without application of its mind” thereby making the out-
Stocks rise on IMF visit optimism
KARACHI staFF rePort
The second Chem & Dye Tech Expo 2013, organised by Event and Conference International, will open from today at the Karachi Expo Center and continue till June 22nd. “Honorable President Karachi Chamber of Commerce & Industry Mr. Muhammad Haroon Agar will inaugurate the event on June 20th and the event will be opened for trade visitors after 12 pm,” said Rashidul Haque, Director, Event & Conference International. “About 50 Indians, Chinese, Sri Lankan and Taiwanese delegates are participating in the event. Despite the security situation in Karachi, international participation in this number is very significant. This proves our claim about event importance and it is a very good sign for all of us that international delegates are coming to Karachi. Now it is our responsibility to give them a positive message about our nation and tremendous business potential opportunities in Pakistan,” he further said. This expo is being organised with collabo-
come grossly unreasonable and therefore, illegal. The Competition Commission of Pakistan in its Policy Note on March 14, 2013 had recommended to the respondents that the amnesty scheme be withdrawn, he said. He prayed the court to declare the SRO, introducing the amnesty scheme for smuggled vehicles illegal and based on mal intentions. “The respondents should be directed to immediately seize all vehicles which were legalised by payment of a confessional duty under the amnesty scheme and treat them according to applicable law and procedure,” Akbar prayed to the court. A representative of FBR and Deputy Attorney General Tariq Jehangiri apprised the bench that the government had launched the scheme to legalise the illegal vehicles in Balochistan and to raise additional revenue. He said the government had the power to launch any scheme.
ration of Pakistan Chemical and Dyes Merchants Association (PCDMA) which represents chemical and dyes business community. First Chem & Dye Tech Expo was held in June, 2012 at Karachi, in which around 50 companies, traders, suppliers, importers and exhibitors participated. This exhibition will be an excellent place to build and develop business relationship with key professionals of relevant industries. Another most important aim behind organising the event is to highlight and explore investment opportunities in the chemical sector. Chem & Dye Tech Expo 2013 is
aimed to serve the industry with the most productive business environment to meet key decision makers and government officials and to discuss areas of mutual cooperation in the field of textile chemicals, dyes, food chemicals, agro chemicals and fertilizers, pharmaceutical chemicals, petrochemicals and laboratory chemicals, rubber and plastic assist, oil and ghee additives, minerals, soap detergent, water treatment chemicals etc. to meet the future requirements. Since the last few years, the chemical, dyes and allied product industry in Pakistan has grown as one of the most dynamic industries, with a perfect set of
basic infrastructure from production to logistics and the industry’s revenue reached several billions. The chemical industry in Pakistan, when viewed in this background was underdeveloped and unable to meet the present and future needs of the economy. But now the industry has crossed infancy and holds a tremendous future to flourish Pakistan’s economy. This expo provides a unique platform to the domestic chemical industry for interaction with potential buyers. In addition, this event is also a precious opportunity for domestic industry to learn latest development in the chemical sector.
KARACHI: Stocks closed higher on Wednesday, helped by market optimism that a visiting delegation from the International Monetary Fund could lead to a bailout loan and resolve the country’s balance of payment problems, dealers said. The visit helped reverse losses seen in recent days on the Karachi Stock Exchange’s benchmark 100-share index, said dealer Samar Iqbal at Topline Securities. The IMF team will be in Pakistan for several days and one official on the team said not to expect any bailout announcement during the trip. The index closed 0.99 per cent, or 216.10 points, higher at 22,135.72. Pakistan State Oil Co Ltd and Engro Foods Ltd closed at their upper limit. Engro Foods Ltd rose 5 per cent at 150.47 rupees, while Bank of Punjab was up 3.97 per cent at 14.68 rupees. The rupee ended weaker at 98.65/98.70 against the dollar, compared to Tuesday’s close of 98.63/98.69. Overnight rates in the money market fell to 8.50 per cent from Tuesday’s close of 9 per cent. staFF rePort
New markets eyed as gems and jewellery exports hit $1.2b KARACHI staFF rePort
The country’s gems and jewellery exports have swelled from approximately $47 million to $ 1.2 billion since the establishment of Pakistan Gems and Jewellery Development Company (PGJDC). Pakistan International Gems and Jewellery Exhibition (PIGJE)-2013 would help enhance the country’s exports further and capture new markets, said PGJDC chief Bakhtiar Khan. He said the event would provide an enabling environment to the discerning target audiences to promote business-to-business and business-to-customers contacts. “Local entrepreneurs from all across Pakistan have been invited to showcase their products in this grand show to highlight the true potential of Pakistan in the world of gems and jewellery,” he added. He said this event would help in identifying how Pakistan can capitalise on its
vast natural resources, low labour costs, skilled craftsmen, and growing national and international demand to become a regional hub for precious stone cutting and jewellery manufacturing. He further said the four-day event being held in Karachi from 26th to 29th September, 2013 will showcase Pakistani gems and jewellery products in all their vivacity for international dealers, and will also provide them with a platform to explore the potential of Pakistani market; while a one-day seminar will also be organised during the course of the event. This four-day exhibition will display precious stones, mineral specimens, ornamental stones, beads gemstone carvings, gemstone made-ups, crafted jewelry products, and an array of machinery, tools, equipments and allied products. He said PGJDC was a subsidiary of PIDC, working under the ministry of production. Government of Pakistan is enhancing the value chain productivity of gems
and jewellery industry from “mine to market”. The company aimed to enhance exports through facilitation, technology up-gradation, skills development, and marketing/branding initiatives, he added. Giving details on previous events Khan said, PGJDC successfully organised Pakistan International Gems and Jewellery Ex-
hibition (PIGJE) in June, 2012. The event was visited by 40 international delegates and buyers from countries like USA, UK, Sri Lanka, UAE, Turkey, China, Hong Kong, and India. The event also encompassed a seminar conducted by International Colored Gem Stone Association (ICA) president and other international experts.
Badar Expo Solutions COO Zohair Naseer, the event organiser of Pakistan International Gems and Jewellery Exhibition (PIGJE), added that this mega exhibition will attract local and international media and adding that special arrangements were made to facilitate and disseminate information to media.
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PPA says govt intervention in poultry sector to hike prices KARACHI
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NTERVENTION from government in poultry sector will result in a complete disaster for the industry and also result in price hike because controlling prices of poultry products is not mandated in Profiteering and Hoarding Act 1977, said Pakistan Poultry Association (PPA) spokesman Abdul Maroof Siddiqui. He said all over the world, no such example was found to control poultry prices because these prices are determined on the basis of supply and demand. He said the poultry association too, does not have any role in determining or controlling poultry prices due to this phenomenon. He further said poultry farms had been incurring huge losses for the past 8 months due to selling chicks at the price of Rs 2 to Rs 8, which resulted in shutdown of 30 poultry farms in
Karachi and its surroundings, adding that this could be confirmed from the livestock department of the province. Therefore, he added, if the government intervenes to control poultry prices, the industry would completely breakdown. “This is the reason the price of chicken is not included in the Profiteering and Hoarding Act 1977 which is implemented in the whole country,” he argued. Talking on reasons of current increase in prices of poultry products, he said it was due to low supply because of loss to poultry farms in the past few months, their shutdown, and sudden increase in demand since the prices of poultry products are based on supply and demand phenomenon.
New gas reserves discovered in Sindh KARACHI oNlINe
Huge reserves of natural gas have been discovered in Sindh as Pakistan struggles to overcome a crippling energy crisis. According to Pakistan Petroleum Limited (PPL), the operator of the Block 2568-18 (Gambat South) with 65 percent working interest (WI) along with its joint venture partners Government Holdings (Private) Limited and Asia Resources Oil Limited with 25 percent and 10 percent WI, respectively, discovered gas over its exploration well Wafiq X-1 located in District Sanghar, Sindh. 39 million cubic feet of gas reserves were discovered during drilling of wells in Sanghar. According to initial estimates, 106.8 million cubic feet natural gas would be produced. This discovery will add more hydrocarbon reserves and also reduce the gap between supply and demand of oil and gas during the current energy crises in the country. 70 percent of natural gas reserves in Pakistan are located in Sindh.
To fill the demand gap, traders have started supplying chicken to Karachi from Rahim Yar Khan, Bahawalpur, and Multan and the situation will get better soon, he said, adding that the meeting which the commissioner recently called did not have any representative from the poultry industry to clarify the situation. He said the meeting did not consider the economic and market factors while determining prices, which is detrimental because those planning to reestablish poultry farms will not dare do so in such circumstances when the government is intervening. This will heavily reduce supply of chicken to Karachi from other
provinces because live chicken cannot be stored and traders will not supply chicken at the price of Rs 170 per kg as determined by the government. “The price of live chicken in Rahim Yar khan is Rs 170 per kg and Rs 165 per kg in Multan. If the price of chicken in the said cities was Rs 130 per kg, only then would it be possible to sell chicken at Rs 170 per kg in Karachi,” he said. Thus, he added, supply of chicken to Karachi from the said cities was going to stop while poultry prices had also increased in interior Sindh due to losses to owners of poultry farms. “The supply of hatching eggs will also be stopped since they are coming from northern areas of the country, which will also reduce production of chicken,” he added. The spokesman said the result of the whole situation was very clear and people will be deprived of animal protein. ”Poultry products are like vegetables, the prices of which cannot be fixed,” he added.
World’s best airline named as Qantas soars back into top 10 NEWS DESK Emirates was named the best airline in the world for 2013, while Qantas soared back into the top 10 in this year’s annual World Airline Awards. Qantas fell out of the World Airline Awards’ top 10 for the first time last year, dropping to number 15 from number eight in 2011. The airline’s ranking had sunk every year since 2008, when it peaked at number three. This year it has climbed five places to be rated the 10th best airline in the world. Virgin Australia was not far behind in 13th place. Emirates had an even more impressive result, taking the No.1 spot after being rated the eighth best airline last year. The World Airline Awards are determined by passenger surveys conducted by research firm Skytrax, who surveyed more than 18 million passengers As always, it was Middle-Eastern and Asian carriers that dominated the top spots, with no airlines from the US or Europe cracking the top 10. Last year’s No.1 airline, Qatar Airways, dropped one place to number two, while Singapore Airlines remained in third place for the second year in a row. Emirates president Tim Clark said the awards
were regarded as the industry’s benchmark for excellence. “To be voted ‘world’s best airline’ by millions of discerning travellers really is something for our 60,000 strong workforce to be proud of,” he said. Emirates recently began an alliance with Qantas which saw Australia’s national carrier make Dubai its new hub for flights into Europe. Qantas chief executive Alan Joyce said the result put Qantas and Jetstar among the best airlines in the world. “Skytrax is a leading indicator of passenger satisfaction. For both Qantas and Jetstar Airways to be recognised as two of the best reflects our investment in creating great travel experiences,” said Joyce. “We now have one of the youngest fleets of any legacy airline in the world. We have invested in more training, new lounges and better on-board products. We pride ourselves on safety and on being the most on-time airline in Australia. The Skytrax result shows how these efforts add up to create a superior experience for passengers.” Qantas’ worst result came last year in the wake of Joyce’s grounding of the airlines fleet during an industrial dispute, which saw tens of thousands of passengers stranded without warning around the world.
Major Gainers COMPANY Bata (Pak) Wyeth Pak Ltd P.S.O. Clariant PaK. Dreamworld
OPEN 1710.00 1652.00 318.94 299.96 271.50
HIGH 1785.00 1734.60 334.88 314.95 284.90
LOW 1630.00 1610.00 324.60 311.00 258.00
CLOSE CHANGE 1780.00 70.00 1700.00 48.00 334.88 15.94 314.95 14.99 284.90 13.40
TURNOVER 1,200 11,150 6,020,800 143,300 200
4800.00 1898.99 6598.99 660.01 500.00
4750.00 1792.00 6580.00 660.01 500.00
4750.00 1844.50 6580.00 660.01 500.00
-50.00 -38.50 -19.99 -9.98 -6.97
60 2,750 40 100 100
3.03 15.04 2.44 13.68 9.60
2.05 13.65 1.98 13.39 9.30
2.52 14.91 2.18 13.55 9.36
-0.27 0.79 -0.17 0.29 0.17
64,577,000 29,157,000 26,625,000 16,008,000 10,435,500
Major Losers Unilever Food Colgate Palmolive Nestle Pak. Siemens Pakistan Sanofi-Aventis
4800.00 1883.00 6599.99 669.99 506.97
Volume Leaders B.O.Punjab(R)SPOT B.O.Punjab KASB Bank Ltd. Fauji Cement Lafarge Pak.
2.79 14.12 2.35 13.26 9.19
Interbank Rates USD GBP JPY EURO
PKR 98.6470 PKR 154.0175 PKR 1.0373 PKR 132.1179
Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.60 132.20 154.51 1.0332 96.50 12.58 26.95 26.45
SELL 99.85 132.48 154.75 1.0420 98.02 12.79 27.15 26.70
Stakeholders discuss study reflecting TVET status in KPK and FATA LAHORE aGeNCIes
Technology Upgradation and Skill Development Company (TUSDEC) organized a ‘Programme Stakeholders Group Meeting’ to discuss and nail down results and findings of a baseline study reflecting the rundown of technical and vocational education in various districts of Khyber Pakhtunkhwa (KP) and Federally Administered Tribal Areas (FATA). According to the company’s spokesperson, the baseline study was conducted to effectuate the four-year programme, sponsored by European Union (EU), to uplift the socioeconomic status of rural/marginalised communities through improving the quality and access of technical and vocational education for them. An exhaustive market research has been performed to trace labour market trends while attributing prevalent standards and provisions of Technical Education and Vocational Training (TVET) sector in upland provincial territories. The spokesperson further said the study uncovered the very blue-chip which will further steer successful implementation of a market demand-driven training mechanism and the capacity building of TVET institutes as adjacent phases of the program. To vouch for comprehension and sustainability of the program, TUSDEC has aligned all competent authorities, relevant to the project scope, thus formulating a full-scale stakeholders group.
CORPORATE CORNER Standard Chartered Saadiq wins ‘Islamic Bank of the Year in Pakistan’ award KARACHI: Standard Chartered Saadiq won the “Islamic Bank of the Year in Pakistan” award by The Banker, an affiliate of Financial Times. The award is in recognition of Standard Chartered’s structuring and distribution capabilities, and reinforces the leadership position in Islamic Banking. The Bank was competing with some of the largest local players in the Banking Industry and has won this award on the basis of its competence and commitment to the customers. While, the Banker celebrated the significant achievements made by Islamic banks across the globe, the entries from 13 country categories were united by two common themes: growth and innovation. The Islamic bank entrants were judged not only on their ability to deliver shareholder returns, but also on the strategies used to gain proven market advantage, as well as on the launch of competitive products. Standard Chartered Saadiq Pakistan was recognised for its leadership position since 2004, as the only foreign bank in Pakistan that offers innovatively structured sharia-compliant Islamic banking products and services. Commenting on the recognition Mohsin A. Nathani, Chief Executive Officer, Standard Chartered Bank Pakistan said, “This is excellent recognition of a powerful Saadiq brand. Pakistan is one of Standard Chartered’s most
important markets globally and we remain committed to providing our customers with world class financial products and services that cater to their specific needs.” Pr
Taste of Pakistan from National Foods
KARACHI: National Foods Limited has launched the second edition of its cookbook titled Taste of Pakistan. The book showcases recipes of celebrity chef Saadat who is known for his culinary expertise and scrumptious recipes. The cookbook is a commendable effort by National Foods to promote regional recipes and make them widespread. Moreover, it adds to the convenience that National products already create for Pakistani women. The book has been divided into seven interesting categories: street food, meat, chicken, seafood, spices & vegetables, rice and desserts. Each recipe is prepared from ingredients offered by National Foods and can be used in diverse ways to prepare delicious dishes. The book also features an impressive range of food
photographs, making the presentation all the more delectable. There is also a Basics and Glossary section that will be particularly helpful in preparing various recipes. “With a country blessed with natural wonders and rich heritage, our cuisine is an essential part of Pakistan’s culture. Through all our National Foods products and now through our new cookbook “Taste of Pakistan” we pay tribute to the vibrant culture of Pakistan and our regional delicacies which distinguish us as a nation. With National Foods’ incredible journey spanning over four decades, this cookbook is a token from us to all the food enthusiasts of Pakistan who are truly passionate about Pakistani cuisine,” said Abrar Hasan, CEO, National Foods Limited. Pr
Andy Murray is King of Queen’s! LENGNAU: Rado sends congratulations to our global brand ambassador Andy Murray for his latest tournament win. On June 16 he defeated the reigning champion to win the Aegon Championships at London’s famous Queen’s Club for the third time in his career. After rain delayed the start of the match by more than three hours, the match was finally played out without interruption for 2 hours and 33 minutes – all timed by the Rado corner clocks on Centre Court. Winning the exciting encounter 5-7 7-5 6-3, Andy became only the fifth man to win the Championships three times, putting him alongside
some of the game’s legends. Commenting on Andy’s latest win, Rado CEO Matthias Breschan said: “We are extremely proud of Andy, not only for this latest Championship win, but also for his performance during the whole week at Queen’s. He has cemented his status as one of the greats of the modern game.” Pr
JS Bank goes solar! KARACHI: After saving your money for years, JS Bank is now saving energy for you. JS Bank has been at the forefront of innovative solutions that provide unparalleled convenience. Continuing in this pioneering spirit, JS Bank has initiated a Go Green drive converting the Dhoraji branch in Karachi to solar power. That means all computers, servers; ATM and teller stations are now powered by solar energy. This is the first of many such planned branch conversions across the nation and we hope with each initiative to help Pakistan in its energy crisis. To that end, we will always strive to set the path for others so we can all prosper together today and tomorrow. JS Bank is one of the fastest growing and most performance driven banks in Pakistan with a branch network of over 185 branches in 100 cities of the country. JS Bank is part of the JS Group, one of Pakistan’s largest and most prominent business entities. JS Bank is a full service bank providing its customers with a wide range of products and services to fulfill their needs for quality banking and financial services. Pr