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Tuesday, 20 November, 2012
AshrAf OPENs fOUr-DAY TrADE EXhIBITION
PM for early removal of NTBs for D-8 states ISLAMABAD
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TAYYAB HUSSAIN
RIME Minister Raja Pervez Ashraf on Monday called for an early removal of non-tariff barriers for the Developing Eight (D-8) countries so that they could benefit from the full potential of intra-trade between the D-8 nations. The prime minister expressed these views while opening a four-day trade exhibition being held on the margins of the D-8 Summit here at the Pak-China Friendship Centre. All D-8 countries including Turkey, Iran, Bangladesh, Nigeria, Malaysia, Indonesia, Egypt and the host country Pakistan have put their products on display at their designated pavilions. The D-8 countries’ share in global trade has already increased from $67 billion in 2008 to $130 billion last year, which is almost double and in this event a strategy will be chalked out to increase their share by 15 per cent. The event was attended by exhibitors and business delegates and the representatives of trade bodies. The prime minister was accompanied by foreign minister Hina Rabbani Khar, commerce minister Amin Fahim and minister of state for foreign affairs Malik Ammad Khan later went around the exhibition and visited stalls of the participat-
Crude up in Asia amid Middle East conflict
ing countries. Over 100 stalls have been setup by different companies from abroad while around 40 Pakistani companies have also put their products on display. Addressing the audience, the prime minister urged the D-8 states to establish “enduring trade partnerships” for the prosperity of their peoples. He said that the D-8 countries had a huge market of close to a billion people, stressing that intra-trade was the way to improve their economic indicators.
“Promotion of business-to-business linkages among the member countries lies at the core of D-8’s strategy to promote economic welfare of our peoples,” he said, hoping that with consistency, the D-8countries could achieve the intra-D-8 trade target of US$ 500 billion by 2018, and may even surpass it. He sought an early removal of nontariff barriers to benefit from the full potential of intra D-8 trade. He also proposed promotion of trade in services
which would immensely benefit D-8 countries. Raja Ashraf said that Pakistan was keen to expand business and trade relations with the D-8 member countries. He mentioned that Pakistan had ratified all three key agreements including the one on preferential trade and was convinced that implementation of tariff concessions under this agreement would lead the D-8 community towards greater economic integration. He said Pakistan, on the eve of the D-8 Summit, had also taken the initiative of hosting the first-ever meeting of the heads of trade promotion organizations (TPOs). He said the initiative was intended to institutionalize trade relations among D-8 members and added that the TPOs could play a critical role in catalyzing the private sector and identifying avenues of cooperation in trade promotion. Expressing satisfaction over the fifteen-year journey of the D-8 governments that had taken many practical steps to facilitate promotion of trade, the Prime Minister expressed satisfaction and said that in this regard, important framework agreements such as preferential trade agreement, agreement on visa facilitation and cooperation on customs matters. He said efforts were underway to promote institutional linkages among the business community.
Monetary easing pushes banks towards core business
SINGAPORE
KARACHI
AGENCIES
STAFF REPORT
Crude prices were up in Asia Monday on supply concerns amid the escalating Israel-Palestine conflict and following an explosion on a Gulf of Mexico oil rig, analysts said. New York’s main contract, light sweet crude for delivery in January, added 62 cents to $87.54 a barrel and Brent North Sea crude for January delivery gained 51 cents to $109.46. “Crude futures rose as a fire on a Gulf of Mexico platform and the escalating conflict between Israel and Palestinians stoked supply concerns,” Phillip Futures said in a report. In the oil-rich Middle East, the Gaza Strip came under renewed bombardment Sunday as Israeli air strikes killed 31 Palestinians in the bloodiest day of its campaign so far. Despite intensified diplomatic efforts to broker a truce, there was no let-up in the bloodshed in the Hamas-run Gaza Strip. A blast rocked a rig operated by Houston-based Black Elk Energy in the Gulf of Mexico on Friday but did not cause a major spill, the US coastguard said. Divers found one body late Saturday. Two workers had been missing since the accident but coastguard spokesman Carlos Vega would not say if the body found was that of one of those two people.
The commercial banks are getting back to what the analysts said their core business of extending advances to the private borrowers masterly on the back of a 4 percent rate-cut by the central bank in its policy rate during the recent months. The official figures reveal that advances of the previously risk-averse scheduled banks are moving northward as economic activities, in the country, are bolstering, tough slowly, with textile sector being the major contributing sector. The State Bank data shows that advances of the banks grew by 6.6 percent during 10MCY12 against the decline of 2.3 percent witnessed during the same period last year. After witnessing a month-onmonth (MoM) appreciation of mere 0.2 percent in September, the banking sector’s advances were grown by 0.9 percent during October. “During the last two to three months, the advances of the banking sector showing some recovery on the back of gradually increasing economic activities specifically on textile front,” viewed Mazhar A. Sabir, ana nalayst at
InvestCap Reserach. During the month, the deposits of the banking sector showed some lackluster behavior and declined by mere 0.2 percent, taking on cumulative basis, the deposits increased by 7.3 percent (CYTD) during 10MCY12. As a result, Advance to Deposits Ratio (ADR) of the banking sector stood at 59.6 percent improved by 62 basis points on monthly basis. On the other hand, during the review period (10MCY12) investments head of the sector experienced colossal growth of 26 percent (CYTD). During the month of October, where the deposits fell by Rs10 billion MoM, investments of the industry were augmented by a massive Rs 98 billion, depicting an impressive 2.7 percent growth. This growth was against a mere 0.2 percent witnessed in the deposits of the sector. The IDR of the banking sector propped up by 2bps to 60 percent during December 2011. “Going
forward, we do expect the trend to somewhat reverse, mainly owing to 400bps cut witnessed in DR during the last one year,” said Sabir adding that “We also do expect this trend to slowly generate pace as the private sector credit demand rises.” On top of that, the analyst said, any further decline in the policy rate going forward, would most certainly force the sector to shift its ways and concentrate more of advances, the core business, rather than investments.
SBP moves to regulate profit, loss distribution of Islamic banks KARACHI STAFF REPORT
The State Bank of Pakistan on Monday issued detailed instructions for profit and loss distribution and pool management in the Islamic Banking Institutions (IBIs). The central bank said the regulatory move was aimed at improving transparency and disclosures and bringing standardization in the Sharia-complaint banks’ profit and loss distribution policies and practices.With the issuance of these instructions that, the State Bank of Pakistan (SBP) said, are applicable with immediate effect Para IV of annexure-II of IBD Circular No. 2 of 2008 stands withdrawn. Further, it said, the provisions of BPRD Circular No. 7 of 2008 regarding minimum rate of return on savings deposits as amended from time to time shall no more be applicable on the IBIs. “Failure to comply with SBP instructions shall invoke penal action under the provisions of Banking Companies Ordinance, 1962,” the SBP said in its IBD Circular No.3 issued to the heads of all Islamic banks and all conventional banks, having Islamic banking branches on Monday. It may be pointed out that the peculiar nature of relationship between the depositors and IBIs, where income earned by the IBIs has a direct impact on depositors’ return, there was a need for Islamic banking industry to have well defined, transparent and standardized policies and practices for profit and loss computation and distribution. As per SBP instructions, each pool of deposit established by IBIs would act like a virtual enterprise having explicitly demarcated sources of funds, ownership of specific assets and income and expenses. The profit earned on the financing and investments made through such pool of deposits will be shared between IBIs and the depositors as per pre-agreed profit sharing ratio. In case of loss, the same will be borne by the depositors in proportion of their investments unless caused by the negligence and misconduct by the IBIs in managing the depositors’ funds. The central bank’s other regulatory changes cover areas like the creation of pools, identification and allocation of pool related income and expenses, investment and financing losses, profit and loss allocation between depositors’ fund and IBI’s equity, profit sharing ratio and weightages, profit smoothening, Investment Risk Reserve (IRR), verification/audit and disclosures.
Turkey intends to enhance bilateral trade up to $2b ISLAMABAD APP
Vice President of the Foreign Affairs Committee, of Turkey, Professor Dr.Muhammad Cetin here on Monday urged the need to increase bilateral trade up to $2 billion for economic prosperity of the two countries. A Turkish delegation led by its Member National Assembly and Vice President of the Foreign Affairs Committee, Prof Dr.Muhammad Cetin visited Islamabad Chamber of Commerce &
Industry (ICCI) to discussed ways and means to explore and create joint venture opportunities between the two countries. He urged upon the Muslim nations to further promote and strengthen economic ties and cooperation for exploiting the existing potential and ensuring maximum possible trade exchange. He said that Pakistan and Turkey are very important countries for the entire Muslim Ummah, having very strong potential to lead their respective regions. Dr.Cetin said that education is the best investment, therefore Pakistan
should invest more in education sector to build human capital for surviving in the knowledge economy. To achieve growth through a well educated and skilful workforce, government should come up with policy reforms in the education sector, he maintained. In his welcome address, Zafar Bakhtawari, President ICCI said that Pakistan and Turkey have historic brotherly relations, thus both the countries should further strengthen the mutual trade relations by promoting business relations. ICCI President expressed that it is the
need of the hour to explore possibility of joint ventures between Turkey and Pakistan.He said that we can strengthen our economy by adopting development and progress of Turkey as a model in numerous sectors especially energy as energy is an important issue for Pakistan’s economic growth. Many Turkish companies made investment in Pakistan in various sectors like energy and chemical and we are looking for others Turkish companies to invest in others fields as score of incentives are being provided by the government to the
investors, he added. He stressed the need for further cooperation by Turkish Air Line to make possible for Pakistan to have direct air link with various countries like Azerbaijan, thus, by making a flight to Islamabad from Istanbul via Baku (Azerbaijan) would create a direct link between Azerbaijan and Pakistan as well. Chairman Pak-Turk education Foundation, Unal Tosur said that people of Turkey consider Pakistan as their second home, adding that promotion of education in Pakistan is our mission and the foundation is actively working for this purpose.
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Business 02 Green light for current account balance Current account balance stays in green zone with $258m surplus KARACHI
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KARACHI: Mr Magdi Batato, Managing Director, Nestle Pakistan (centre), with leading members of the Nestle management team at the inauguration of the Nestle ‘Corporate Resident Office’.
KARACHI: BBA at SZABIST recently conducted an event ‘K-Town adness’ and with the proceeds of the event got UV Germicidal water ilter installed at a school near Sandspit. This CSR activity was onducted in collaboration with WWF. The picture shows the organizing eam members along with their course instructor Miss. Hina Shamsi auman at the school where CSR activity was conducted.
ISMAIL DILAWAR
AKISTAN’S dollar-hungry current account balance continued to remain in the green zone during July-October FY13 by registering a surplus of $ 258 million. This surplus amounted to $ 432 million during first quarter of FY13, July-Sep, owing to what the official and unofficial quarters agree, receipts of war reimbursements from the United States in early August this year. On August 1, 2012, the Islamabad’s nonNato allies in Washington had released to the cash-strapped Pakistan some $1.118 billion under the long-denied Coalition Support Fund (CSF) after a months-long strain in bilateral ties relaxed through an on-and-off process of negotiations between the two countries on civilian, military and intelligence level. The inflows, the SBP chief spokesman Syed Wasimuddin had confirmed, had put the country’s current account balance into a surplus since July. The central bank Monday reported that during the corresponding period of last year, JulyOct FY12, the country’s current account balance had marked a deficit of $ 1.655 billion. In percentage terms, the surplus constitutes 0.3 percent of the country’s gross domestic product (GDP) accounting for $ 82.232 billion. This is against a deficit of 2.1 percent last year. Senior analysts like Khurram Schehzad had also seconded the central bank’s view saying the positive was attributable mainly to the dollar inflows on account of CSF and Kerry Lugar from the
US. The receipts under KLA have been meager with Washington reported to have transferred only Rs 20.356 billion during FY12 against a projected receipt of Rs 34.164 billion. Under the KLA, Pakistan has the US’s word for receiving a civilian aid of $ 7.5 billion till 2014, $ 1.5 billion per annum. However, the funds transfer under CSF augured well for the funds-starved Pakistan which, in FY12, had braved a current account deficit of over $ 4 billion, pushing the economic managers closer once again to a fresh IMF bailout package. During the period under review, the country’s trade balance remained subdued and registered a deficit of $ 5 billion against last year’s $ 5.398 billion. A break up of trade deficit shows that during the review months the country exported goods worth $ 8.210 billion compared to $ 8.105 billion in JulyOct of FY12. Compared with last year’s $13.503 billion, the imports totaled at $ 13.210 billion. Overseas Pakistanis also performed well by remitting $ 4.964 billion during the review period as against $ 4.315 billion last year. The State Bank says that the country on average receives over a billion dollars every month from Pakistanis working abroad. The disbursements from the foreign financers, another noteworthy indicator on the current account balance list, stayed however in the red zone by remaining confined to long-term project loans standing at $ 382 million. Last year, disbursements under the same head were recorded at $ 519 million. However, despite these positives the analysts believe that the economic managers have still a lot to worry about owing to the current poor dollar inflows into the country specially the foreign investment.
Major Gainers OPEN 623.44 1317.88 312.37 215.00 131.00
COMPANy Island Textile Bata (Pak) XD Exide (PAK) Bhanero Tex.XD Sapphire FiberXD
HIGH 654.61 1344.99 323.85 225.75 137.55
LOw 654.61 1260.00 320.50 225.75 137.55
CLOSE CHANGE 654.61 31.17 1344.99 27.11 323.85 11.48 225.75 10.75 137.55 6.55
TURNOVER 400 150 2,000 1,500 1,200
3500.00 1235.50 201.40 136.90 146.00
3500.00 1235.00 201.40 133.57 142.60
3500.00 1235.00 201.40 133.58 143.08
-72.00 -65.00 -10.60 -7.02 -6.42
40 150 10,000 272,000 4,500
13.04 9.00 6.94 7.50 17.40
11.75 8.15 6.73 7.08 16.70
13.02 8.73 6.87 7.39 16.86
0.98 0.70 0.13 0.36 -0.10
31,272,500 26,510,500 18,149,000 13,830,000 13,789,000
Major Losers Rafhan Maize Prod. Colgate Palmolive Fazal TextileXD IGI Insurance Pak Gum & Chemical
3572.00 1300.00 212.00 140.60 149.50
Volume Leaders Maple Leaf Cement Azgard Nine Fauji Cement Lotte PakPTA Jah.Sidd. Co.
12.04 8.03 6.74 7.03 16.96
Interbank Rates US Dollar UK Pound Japanese Yen Euro
96.0209 152.6541 1.1809 122.6859
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUy
SELL
96.40 122.29 151.91 1.1719 95.53 12.21 26.05 25.53 98.94
96.90 124.18 154.22 1.1896 97.49 12.45 26.42 25.87 101.90
CORPORATE CORNER LG unveils unique 4:3 ratio, 5-inch Optimus Vu
LAHORE: LG unveils one of the most anticipated smart device, the Optimus Vu:. Equipped with LG’s advanced IPS display technology, the Optimus Vu: offers a unique combination of tablet-like viewing with smartphone portability. Running on a powerful 1.5GHz QUAD -core processor, 32GB internal memory and a large 2,080 mAh battery, the Optimus Vu: is a multimedia lover’s dream device. “The Optimus Vu: was designed to maximize what customers could not do with a regular smartphone,” said Mr.D.Y.Kim, President of LG Electronics Gulf FZE. “By offering an optimal 4:3 ratio viewing experience, 5-inch display combined with Superior IPS technology, Optimus Vu: is just one example of what we can achieve when we combine our best technology with customer needs.”
Grandeur Art Gallery organises Five Artists Exhibition
KARACHI: Sabiha Nasr-ud-Deen did her Masters in Fine Arts from the Punjab University in 1968. She is a Gold medalist. Painting ever since, she had ‘a one man show’, while still a student, in 1967 at the Arts Council in Karachi. Gulgee was very interested in her work and wrote in her exhibition brochure – “She will go very far.” Selling her paintings from her home and a few galleries, she has now decided to come out in the foreground of the art world. An expressionist, she paints in all mediums. Pakistan, the land, its people, its flora and fauna, is what inspires her. A.S.Rind’s did his graduation and Diploma in Fine Arts from CIAC (Arts Council Karachi). He has been painting since 1986 on different mediums and using diverse techniques.
British High Commissioner BOK Raast Islamic Banking starts Visits KSBL Campus operations in Topi Distt Swabi
KARACHI: Mr. Bilal Mustafa, Managing Director Bank of Khyber (BOK) said BOK is committed to cater the Banking requirements of all segments of society, BOK is providing Islamic Banking & Financial requirements as well as conventional in a befitting manner in order to encourage the economic developmental activities in the region. He was speaking at the formal inauguration of BOK Raast Islamic Banking branch at Main Bazzar Topi District Swabi today in a simple but graceful ceremony. The inaugural ceremony was also attended by notables of the area & business community.
KARACHI: H.E. Adam Thomson CMG, British High Commissioner to Pakistan and Mr. George Turkington, Head of Department for International Development along with senior officials of the British High Commission visited the KSBL Campus. The High Commissioner met the KSBL Board Members including Mr. Munawar Siddiqui, Mr. Muhammad Ali Tabba, Mr. Sarfaraz Rehman and Mr. Sohail Qureshi who shared KSBL’s vision and aspirations. Dr. Shaukat Brah, Dean KSBL briefed the High Commissioner about the Cambridge University Judge Business School collaboration with KSBL including designing the curriculum, faculty recruitment, faculty planning and development and research, and talked about the progress made by KSBL this far.
Samsung Galaxy Note-II continues to win hearts LAHORE: Samsung Electronics Co. Ltd. - the global leader in digital technology and telecommunications, recently launched the “Samsung Galaxy Note II” in Pakistan - a fascinating new Smartphone
from the innovation leader. Within one month of its world-wide launch, the global sales figures of this creative device have crossed the 3 million mark, due to its unmatched features for creating active content, digital artworks and high-functionality with text. It gives unmatched ease in capturing those “big ideas” using Samsung’s sophisticated “S pen” technology, to accurately digitize sketches, artworks and handwritten text, maximizing the creativity that users can experience with the device. This Smartphone is selling at more than three times the pace of the Note 1, a device that touched heights of popularity when it was launched.
Pakistan Institute of Fashion & Design Exhibition Direction 2012 LAHORE: PIFD in collaboration with PNCA exhibits the Thesis Work of its Graduates in Fashion Design, Textile Design, Jewellery Design & Gemological Sciences, Furniture Design and Manufacturing. PIFD is a unique institute that has revolutionized the fashion and design education in Pakistan. It focuses on developing the students in analytical, creative and technical skills so they are made aware of different possibilities and are capable of creating and promoting appropriate products for the global consumer of today. The exhibition showcases the creativity & innovation skills taught to these graduates. Displayed products are diverse from traditional to contemporary.
Ufone Cricket League ends on a high note
LUMS Career Services Office hosts mega education fair LAHORE: The 3rd Annual Education Fair, the largest and most informative event of its kind in the country, was organised by Careers Services Office (CSO) on Friday, November 16, 2012 at LUMS. Featuring education providers from all across the globe, the fair aimed to provide useful information on further studies as well as the much needed education and career-oriented resources to students. Education Fair has become the most comprehensive and informative education event in Pakistan since its debut in 2009. A wide range of full-time, part-time, long distance, programmes were remarkably well-received by over 1500 visitors last year. The event this year was more successful than ever drawing in over 3000 students.
Servis unveils ‘Shoes For Everyone’ LAHORE: Service Sales Corporation, Pakistan’s leading footwear retailer, has launched a new campaign for unveiling its corporate tagline “Shoes For Everyone”. The campaign has a lively TVC that revolves around many people in their own surroundings. Its actually a story of all those people who wear Servis shoes and also tells the consumer that Servis makes Shoes for Everyone, be that men, women or children from all age groups. The ad is accompanied by a jingle that leaves you humming the tune long after you have seen the ad or heard it on popular FM stations. SSC’s Head of Communication Shahzad Khalid believe that the differentiating factors for this campaign are its lively story line, the choice models, their dynamic expressions and overall aesthetics of production thanks to the producer, director, the shooting location and setup, and their team at the agency.
Meesha Shafi performes at Doha Tribeca Film Festival 2012
ISLAMABAD: Ufone recently concluded the UCL (Ufone Cricket League) which was hosted by Ufone for its valued employees. The final was played between North Titans and South Strikers with the former defeating the latter in an exhilarating final match held at Shalimar Cricket Ground in Islamabad. President & CEO Abdul Aziz and Ufone’s brand ambassador Wasim Akram graced the occasion as chief guests. The Ufone Cricket League spanned over one and half month comprising of 64 teams with 14 Ufone employees per team. The victorious teams from all four regions made it to the semi-finals that comprised URock, South Strikers, North Titan and Central Wolves.
DOHA: L’Oréal Paris Pakistan Spokesperson, actress, singer and model Meesha Shafi attended and performed at the official Doha Tribeca Film Festival 2012 screening of her cinematic debut venture, The Reluctant Fundamentalist [TRF] which opened the prestigious festival in Doha. The fourth edition of the event featured a music performance by Meesha Shafi who was accompanied by her husband and musician Mahmood Rahman where the duo performed in front of a packed audience just before the screening of TRF to an audience including personalities such as Hollywood legend Robert De Niro.
Tuesday, 20 November, 2012