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Friday, 20 July, 2012
OGRA to LPG’s rescue Set to issue 26 licenses for LPG filling stations ISLAMABAD: In an attempt to cater the growing energy demands, the Oil and Gas Regulatory Authority (OGRA) has decided to issue 26 licenses for establishing Liquefied Petroleum Gas (LPG) filling stations in the country. OGRA would issue license for the LPG stations in next few days as it has completed its process of scrutinising the documents of the applicants. Sources familiar with the development told “Online” that earlier, Regulatory Body was showed its concerns over the availability of LPG in the country to avoid any disaster like CNG however, after assurance about availability from the applicants, OGRA decided to give license to twentysix LPG stations which would be installed on Pakistan State Oil (PSO) outlets. “Pakistan State Oil will provide LPG supply to the private companies, which will install LPG facilities at the outlets of the public sector oil marketing company sources informed. ONLINE
India seeks land passage to Pakistan for fuels NEW DELHI: India has asked Pakistan to allow transportation of fuels and petrochemical products in truck or rail tankers, and proposed laying a pipeline to Lahore eventually for wheeling of petro products. India made the demand at the first meeting of an experts group that has been set up for starting bilateral trade in petroleum products. “We discussed the fundamentals (of petroleum trade). We are ready to buy and many countries are interested to sell (fuels and other petro products). We haven’t reached the stage where we discuss the price, but the fundamentals of it show it being competitive,” a member of the Pakistan delegation told Times of India on condition of anonymity. Pakistan had in March lifted ban on import of petrol from India with the rider that consignments can only be brought in through sea routes. Pakistan allowed diesel imports from India in 2009 with similar condition. Due to this restriction, Indian refiners have found it difficult to match the rate Pakistan gets from its ally Kuwait. INP
Next stop: Tajikistan Pakistan, Afghanistan to extend scope of transit trade to Tajikistan KABUL
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APP
AKISTAN and Afghanistan on Thursday agreed to extend the scope of their transit trade agreement to include Tajikistan as part of the overall effort to promote regional economic cooperation. A joint statement, issued simultaneously from Kabul and Islamabad at the culmination of talks between Prime Minister Raja Pervez Ashraf and President Hamid Karzai, said the two sides emphasised the importance of early finalisation of the establishment of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. They also stressed speedy implementation of the CASA-1000 power transmission line, and enhancing connectivity and upgrading rail and road infrastructure between the two countries. During the talks at the Presidential Palace, both the sides stressed the need to work together in various fields of security,
development, transit, trade, economic and investment linkages, mining, infrastructure and energy connectivity and people to people contacts. The joint statement said both the sides reiterated their shared vision to advance regional peace and stability and reaffirmed their strong commitment to eliminate the scourge of terrorism in all its forms and manifestations. The two leaders discussed the Afghan peace
process in great depth and vowed to work together towards an Afghan-led, Afghanowned peace and reconciliation process
PSO circular debt swells to Rs 403b ISLAMABAD: Pakistan State Oil (PSO) is on verge of collapse and may go bankrupt in case the government fails to pay the outstanding dues of Rs 226 billion to the oil agency. According to official data PSO receivables and payables have been increased to Rs403 billion in which receivables have been increased to Rs 226 billion while its payables to local and international refineries have touched Rs 176 billion. Power sector is still at the top of the chart with Rs 197 billion liabilities to PSO in which Water and Power Development Authority (WAPDA) owes Rs 60,876m, HUBCO owes Rs 103,626m, KAPCO owes Rs 32,746 million. Karachi Electricity Company (KESC) and Independent Power producers (IPPs) have to pay Rs 9.985m and Rs3,301m respectively. Official documents further revealed that PSO has to collect Rs 1,374m from Pakistan Railways, Rs 1,622m on audited price differential claims-HSD, Rs 3,407m on price differential on LSFO/HSFO. It is also said that Rs 1,351m liabilities on price differential on imported PMG and Rs 3,909m are on price differential under GLAMP and NTDC –KESC. According to the official data of PSO, state oil agency has the liabilities of 176 billion to national and international oil refineries in which company has to pay Rs 29,970m to Pak-Arab oil refinery company (PARCO), Rs 16,348 to Pakistan Refinery Limited (PRL) Rs, 9.523m to NRL and Rs 30,752m to Attock Oil Refinery (ARL). LC payments to KPC and Fuel oil suppliers have been increased to Rs 86,618m. ONLINE
involving the Taliban, Hezb-e-Islami and other armed opposition
groups. Prime Minister Ashraf and President Karzai expressed desire and determination of the Afghan people to end violence and bring lasting peace to their country, as affirmed in the Peace Jirga of July 2010 and the Traditional Loya Jirga of November 2011. They were of the view that these must be complemented by result-oriented regional and international cooperation. In this context, both the sides expressed the hope that Pakistan’s support to the Afghan peace process would contribute to durable peace and
stability in Afghanistan. The Afghan side welcomed and expressed appreciation for the steps being taken by Pakistan in support of the Afghan peace process, including the public call on the Afghan armed opposition groups to participate in the reconciliation process. The Pakistani side reaffirmed its support for an Afghan-led and Afghanowned inclusive peace process, and underlined its determination to redouble efforts in facilitating direct intra-Afghan contacts and negotiations. The two sides expressed the resolve to implement additional concrete steps to advance Afghan peace and reconciliation. They also agreed to facilitate a conducive environment for the peace and reconciliation process to move forward. The leaders of Pakistan and Afghanistan also recognised the importance of pursuing multiple channels of communication and contact with the Afghan Taliban and other armed opposition groups. They emphasised upon international support for Afghan peace process and, in particular, welcomed the efforts of Saudi Arabia, Turkey and other countries.
Maruti Suzuki manager burned to death by workers NEWS DESK India’s top carmaker Maruti Suzuki has suspended production at a plant near New Delhi after a manager was burned to death and scores of others injured in a riot by angry workers. Maruti identified the dead man as the plant’s personnel manager, Avnish Kumar Dev, whose charred body was found after the rampage late on Wednesday during which supervisors were attacked and offices set on fire. “We are deeply disturbed by the mob violence,” Maruti said in a statement that praised Mr Dev as “deeply committed to cordial industrial relations” at the Manesar plant 50km from the capital. Maruti shares plunged nearly 9 per cent to 1117.35 rupees ($19.46) on investor fears of a lengthy shutdown. Last year, the company’s operations were crippled by a long dispute over pay and union recognition. The carmaker, owned by Japan’s Suzuki Motor, said the plant’s offices were “burnt beyond repair” while nearly 100 of its managers had to be hospitalised, some with serious injuries.
The workers, some wielding iron rods, fanned out in groups, beating managers “on their head, legs and back, rendering many of their victims bleeding and unconscious”, the company said. A number suffered broken bones, head wounds and other injuries, a Maruti executive said, while two Japanese executives, including the Manesar plant manager, were also in hospital with undisclosed injuries.
Frauds galore! ANF DG says a group of cheats held for taking Rs1.7m ‘speed money’ from time-conscious exporters g Dollar-fetching textile exporters dub costly airborne dispatches a total loss g Traders say lack of coordination between Customs, ANF, others delay shipments g
KARACHI ISMAIL DILAWAR
The ill-regulated thus problematic cargo clearance procedures at the country’s sea ports are delaying the shipment of exportable cargo giving an opportunity to exploiters who are extracting huge sums as “speed money” from the time-conscious exporters. According to Anti-Narcotic Force (ANF) Sindh Director General Brig Muhammad Wajid the bribes are being taken in the name of government officials belonging to Pakistan Customs and Anti-Narcotic Force (ANF) apparently to speed up the clearance of exportable and imported cargo at the country’s seaports. Wajid revealed this during a meeting here with the members of Pakistan Hosiery Manufacturers and Exporters Association (PHMA) at the PHMA House Thursday. “There is a world of corrupt people who secure bribes in the name of ANF and Customs,” he said.
The ANF chief said in a recent case unearthed by his department a group of frauds demanded bribe of Rs 1.7 mfrom the exporters for speeding up the clearance of their cargo. “Of the total bribery, Rs 1 mhad gone to the inspector (fake), Rs 0.5 mto a milk seller and the balance to others involved,” Wajid told the meeting. The group, he said, had been arrested and taken to task despite the opposition of some judges who, the ANF chief said, found no law to support such arrests. The bribed money, however, was recovered from the culprits, he said. “You destroy the entire system while offer a bribe for getting a speedy customs clearance of your goods,” the director general told the exporters adding “I can’t stop the corruption but we don’t want you to be exploited”. Having a totally different version of the story, the exporters, particularly from dollar-fetching textile sector, claimed to have had their business a “total loss” due to lack of coordination between the government institutions responsible for inspecting out-
bound containers and other packed commodities at the ports. “It is a total loss for us if we go for airborne exports,” Pakistan Apparel Forum (PAF) Chairman Muhammad Jawed Bilwani told Pakistan Today commenting on airborne exports as an alternative.. Bilwani said the exporters’ earning on a single shipment ranges from five to eight percent that is eroded by the air freight. “All we want our airborne exports is to enable us recover the cost,” the PAF chief said. During the meeting, the exporters complained that insufficient number of dogs, trained to find drugs or explosives by smell, available with the Force was also a major source of delay in cargo clearance. “You at least need 25 such dogs against the existing 4,” an exporter advised to the ANF director. Conceding that it was indeed a daunting task to get the government institutions do a job on its merit, Brig Wajid pledged affective measures to quicken the clearance process. “We have a lot of dogs. In fact, dogs’ inspec-
tion never delays the clearance.” Instead, he said, sniffer dogs had enabled the Force detect and hold some 12 containers during last one and half year. “These unprecedented de-
tentions also include 550 kilograms of heroin,” said Wajid. He assured the exporters that a joint meeting of all stakeholders would soon be held to discuss the bottlenecks.
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Friday, 20 July, 2012
The reTurn of The Moody bears Moody’s bears take index down 28 points, with Uncle Sam and fiscal deficit playing their part as well KARACHI
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STAFF REPORT
AKISTAN Stocks closed bearish amid institutional profit taking in stocks across the board on concerns for Pakistan military aid cut by $650m by US, rising fiscal deficit over 8.5% of GDP and security unrest in the city. This was viewed by Ahsan Mehanti, Director at Arif Habib Investments Limited. The Karachi Stock Exchange (KSE) 100share index declined 28.38 points or 0.19 percent to close at 14,562.21 points as compared to 14,596.59 points of the previous session. The KSE 30-share index shed 37.06 points to close at 12,628.16 points as compared to the 12,665.22 points of the previous day. The market turnover was down to 164.996 million shares after opening at 167.985 million shares. The overall market capitalisation declined 0.04 percent and traded Rs 3.719 trillion as against Rs 3.724 trillion. Losers outnumbered gainers 151 to 140, while 85 stocks were
Merkel throws spanner into euro works
unchanged. Mehanti added “Concerns for Moody’s downgrade of foreign and local currency bond ratings and Pakistan Banks deposit ratings affected the investor sentiments despite strong corporate earnings outlook.”
The KMI 30-share was plunged by 61.59 points to close at 25,057.14 points from its opening at 25,118.73 points. The KSE allshare index closed with a loss of 14.90 points to
bLOwS ITS OwN TRuMPeT
10,251.81points as against 10,266.71 Jahangir Siddiqui Company was the volume leader in the share market with 33.435 on shares as it closed at Rs 16.40 opening at Rs 15.66. Azgard Nine traded 13.612 million shares as it opening at 7.22 and close at 7.18.Jahangir Siddiqui Investments Limited traded 10.864 million shares as it closed at Rs 10.02 after opening Rs 9.41. D.G.K Cement traded 9.215 million shares as it closed at Rs 45.17 from its opening at Rs 45.68. Engro Foods Limited traded 6.636 million shares and closed at Rs 69.02 as against its opening at Rs 69.29. Arif Habib Corporation traded 5.538 million shares as it closed at Rs 33.78 as compared to its opening at Rs 33.51. On the future market, the turnover decreased to 8.651 million against 9.672 million shares of Wednesday. The Wyeth Pakistan Limited and UniLever Pakistan, up Rs 26.14 and Rs 19.75, led highest price gainers while, Mithchells Fruit and Bata Pakistan Limited down Rs 15.83 and Rs 10.18 respectively, led the losers.
Asian bulls take wall Street’s cue
Business 02 Major Gainers COMPANY Wyeth Pak Limited UniLever Pak Nestle Pakistan Ltd. Clariant Pak Abbott Laboratories
OPEN 874.99 7280.25 4100.00 202.04 139.50
HIGH 918.73 7325.00 4125.00 212.14 146.47
LOW 870.00 7250.00 4090.00 205.00 137.00
CLOSE 901.13 7300.00 4119.14 210.12 146.47
CHANGE 26.14 19.75 19.14 8.08 6.97
TURNOVER 420 51 10 21,163 699,385
Major Losers Mithchells Fruit Bata (Pak) Limited Island Textile Akzo Nobel Pak. Millat Tractors
316.77 674.00 214.13 106.78 515.59
329.00 675.00 204.00 105.49 523.80
300.94 655.00 204.00 101.45 509.00
300.94 663.82 204.00 101.45 510.64
-15.83 -10.18 -10.13 -5.33 -4.95
6,707 108 149 235,294 47,377
Volume Leaders Jah.Sidd. Co. Azgard Nine JS Investments Ltd D.G.K.Cement Engro Foods Ltd.
15.66 7.22 9.41 45.68 69.29
16.66 7.33 10.34 45.80 71.48
15.83 6.95 9.22 44.96 68.60
16.40 7.18 10.02 45.17 69.02
0.74 -0.04 0.61 -0.51 -0.27
33,435,416 13,612,057 10,864,317 9,215,102 6,636,511
Interbank Rates US Dollar UK Pound Japanese Yen
94.4418 148.1225 1.2011
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
94.40 115.40 147.52 1.1919 92.93 12.00 25.63 25.13 97.62
SELL 95.20 116.58 149.00 1.2037 94.36 12.19 25.86 25.31 100.05
CORPORATE CORNER
KARACHI STAFF REPORT
TOKYO: The euro was mixed in Asian trade Thursday amid worries over Europe’s fiscal woes and comments from German leader Angela Merkel casting doubt on whether the “European Project” had a solid future. The 17-nation currency bought $1.2281 and 96.64 yen in Tokyo morning trade, from $1.2280 and 96.75 yen in New York late Wednesday. The dollar also slipped against the Japanese currency, trading at 78.67 yen from 78.78 yen. It was the greenback’s first dip below 78.70 yen in about a month, with short-term speculators selling the dollar to trim losses, dealers said. “The declines are not news-driven, and large commercial sales aren’t seen,” said a currency manager at a major Japanese bank. The US currency also lost ground against the commodity-driven Australian dollar, which bought US$1.0370 from US$1.0308 Wednesday afternoon. “However, the dollar has not weakened against all major currencies. The euro has its own problems and has not been bought,” Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires. Merkel said Wednesday she was “optimistic” but could not be certain that the “European project” would work, in comments that cast doubt on plans for tighter European integration and weighed on the single currency. APP/AFP
Business Process Management has gained broad acceptance as a key enabler for achieving operational efficiency and process compliance for businesses in various industries. Financial institutions and intermediaries in Pakistan are looking to significantly improve their payment processing systems, in order to meet compliance and regulatory needs. Oracle can help institutions to build shared processes that unify existing payment systems across internal and external interfaces in a timely and cost efficient manner. These views were expressed by the speakers at a Business Process workshop organized by Oracle. Fusion Middleware Director Albert Tay of Oracle Asia Pacific said that having accurate and optimised business processes in place is the key to survival and growth of the businesses. Oracle can enable organizations to model, automate, monitor, and optimise key processes so that organisations can achieve better efficiency and business visibility while reducing complexity and total costs. “By undertaking a business process centric approach, organisations can achieve greater alignment between business needs and its ability to ensure swift response to change,” he said. Oracle can enable the enterprises to better-manage processes by delivering unified, industry-leading products for business process management (BPM), such as Oracle Business Process Management Suite 11g, which is the industry’s most complete, open and integrated BPM solution to help customers lower costs.
HONG KONG: Asian markets were lifted Thursday by a strong lead from Wall Street after upbeat earnings reports and Ben Bernanke’s comments that the US Federal Reserve could step in to help the economy. Tokyo rose 0.75 percent by the break, Hong Kong jumped 1.40 percent, Sydney added 1.20 percent, Shanghai gained 0.44 percent and Seoul climbed 1.68 percent. Tech firms in Asia benefited from news that Intel, the world’s leading semiconductor maker, had posted better-thanexpected earnings for the April-June quarter. Internet search giant Yahoo! posted above forecast results, while Bank of America said it had swung back into the black in the second quarter after posting a loss of almost $9 billion a year ago. The news lifted investor confidence on Wall Street. The Dow climbed 0.81 percent; the S&P 500 added 0.67 percent and the Nasdaq advanced 1.12 percent. Adding to sentiment was the Federal Reserve’s Beige Book report, which said “overall economic activity continued to expand at a modest to moderate pace in June and early July”, offering reassurance amid worries about a recent run of disappointing data. Fed chairman Bernanke, testifying for a second day to Congress, reiterated that the economy was slowing and the central bank would act if warranted to boost growth. APP/AFP
They’re scrumptious indeed! Pakistani citrus, mangoes attracting foreign investment ISLAMABAD APP
Australia on Thursday said that Pakistan is gateway to energy rich central Asian states, financially liquid Gulf States and economically advanced far Eastern countries. This was stated by Australian High Commission to Pakistan Economic Counsellor Melissa Kelly while talking to Chairman FPCCI Standing Committee on Diplomatic Affairs Sheikh Humayun Sayeed and FPCCI
Chairman Media Malik Sohail here on Thursday. She said that her country is impressed with Pakistan’s natural and human resource potential which is matchless. Some of the recent signs of growth in Pakistan are very inspiring as this country fulfils the criteria to become a developed nation soon, she remarked. She said that Pakistan has world’s second largest salt mine, fifth largest gold mine, fifth largest coal reserves, seventh largest copper
mine; it is a great consumer market and having a competent workforce, the fourth largest in the world. Melissa Kelly said that an Australian delegation has just completed visit of Pakistan and they have decided to invest in the citrus sector including construction of a juice extraction plant. She said that there is a great scope of cooperation between Pakistan and Australia in different sectors including energy, industry
and agriculture. “Despite numerous challenges Pakistan’s economy was faring well which is very encouraging,” she added. On the occasion, Sheikh Humayun Sayeed highlighted the salient features of liberal and deregulated trade regime of Pakistan which offered enorm o u s opportunities for foreign investors. All major international investors and companies are making profits despite the security challenges, he said.
LAHORE: Renowned Pakistani mountaineer and conqueror of the Mount Everest Hassan Sadpara offering Dua after inaugurating the new block at Rawal Rest House, Islamabad. WAPDA chairman Shakil Durrani is also seen in the picture.
Servis Sales Corporation and british Council: a ‘shoe in’ for educational development
LAHORE: Servis Sales Corporation and the British Council have joined hands to make learning a fun activity for kids to further complement their life at school. The launch of the partnership was celebrated here by school children and teachers from the government and private schools in Lahore along with government representatives, academia and media.
LAHORE: Bata Director Finance Carlos Gomes inaugurating the new shop at Model Town with Zil-e-Husnain