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SBP mulling five-year strategic roadmap on payment systems KARACHI STAFF REPORT
T
HE central bank is weighing various options for preparing a five-year strategic roadmap to modernize and expand payment systems in the country where branchless banking is growing rapidly. “A proposal is under consideration at SBP for the preparation of Payment Systems Strategic Road Map for the next Five Years,” Governor State Bank of Pakistan (SBP) Yaseen Anwar Wednesday told a workshop in his opening remarks. The “Future of Branchless Banking, Payment Systems and Financial Inclusion” was jointly organized by the SBP, Pakistan Telecommunication Authority (PTA) and Consultative Group to Assist the Poor (CGAP) of the World Bank here at a local hotel. Stressing the urgent need for modernizing and expanding the payment system infrastructure segments, Anwar urged the banks and mobile network operators (MNOs) to promote branchless banking for the benefit of the country’s un-
banked and underserved people. “If the banks and mobile network operators want to succeed, they have to assign a strategic priority to branchless banking,” the SBP Governor said. He said the boards and chief executives of banks and MNOs must have ownership of branchless banking which would help to bring commitment, attention, and support from every level of the organizations to this innovative, exciting and challenging service. Anwar said SBP had taken several policy and developmental initiatives to promote financial inclusion in the country. “Today, our regulatory environment for microfinance and branchless banking is considered one of the best globally,” he said. “As a result of SBP regulations on branchless banking, we have seen emergence of four mobile banking deployments which are not only advancing new frontiers for financial inclusion but also pushing the expansion in the payment ecosystem of
the country,” said Anwar. These providers, he said, were investing heavily in hiring, training and branding their agents, thus contributing to the development of a new layer of distribution network for serving largely unbanked market. The SBP Governor said mobile phone subscribers were almost 120 million, while the bank accounts stand at 32 million whereas the number of borrowers was only 5.7
million. This, he said, indicated that there exists a large “financially-excluded” market. “Bringing this un-served market into the formal financial system is our key objective as we believe that this would enrich the socio-economic development of our country,” he said. He pointed out that the brick and mortar retail network of the entire financial industry of Pakistan stood at around 11,000 outlets
after 65 years while the branchless banking retail agents’ network had grown beyond 32,000 agents in a short span of three years. With almost 1.8 million mobile banking accounts, the branchless banking customers conducted almost 32 million transactions worth Rs 140 billion during the quarter ending September 2012, he said, adding the average size of each transaction is Rs 4,065 which shows that technology was helping ‘financial access’ of the unbanked population of the country. Anwar said 90% of total bank branches were currently processing real time online banking services across the country. “One million internet banking users, 1.8 million mobile phone banking users, and more than 10 million call center users are enjoying virtual banking,” said the governor. He emphasized upon the mobile network operators to come up with creative marketing
strategies and financial literacy schemes that provide basic learning and educative experience to their customers. The SBP Governor observed that a robust payment infrastructure is critical for the long-term development of mobile phone banking. “Banks and MNOs have to develop partnerships to expand the agent network, leverage communication bearer channels, develop client acquisition strategies, and build a robust risk management framework,” he said. Anwar said the last five years’ average shows that 36% of the transactions were routed through electronic channels depicting a 23% average yearly growth as compared to 2% average growth in paper based transactions. Although, these statistics show an increasing trend, which is still insignificant for a country of 180 million inhabitants with a high currency in circulation of Rs 1.9 trillion, he said, adding that this high currency in circulation is due to the fact that majority of our population is disconnected from the banking system, and is heavily reliant on cash-based transactions.
WB sets $900m aid programme for Iraq Pakistan stock market on a
WASHINGTON AGENCIES
The World Bank announced Tuesday a $900 million support plan for Iraq aimed at helping the war-ravaged country better manage its human and vast oil resources. The World Bank’s four-year support for
Iraq, through 2016, will focus on job creation, social inclusion and building stronger institutions, the institution said. The announcement came exactly one year after the last US troops left Iraq, ending the nearly nine-year war that ousted dictator Saddam Hussein’s regime and left Iraq shattered. The World Bank said the new program was
designed together with the government of Iraq. The support will help Iraq in managing its resources more efficiently and effectively, and promote the diversification of the economy and private-sector growth “for the benefit of all citizens,” it said in a statement. “Iraq is opening a new chapter in its long and deep history,” said Ferid Belhaj, the World Bank’s country director for Iraq, Syria, Iran, Lebanon and Jordan. “This is a chapter where the people come first and where the immense human potential of the country, its vast natural resources and its strategic location will be central to its socioeconomic recovery,” he said. Belhaj pointed out the program was the first full country partnership strategy between the World Bank and the Iraqi government. “It will allow the World Bank to align its program of support over the next four years with the government’s National Development Plan,” he added. The development lender noted that Iraq remains fragile and its economy is dominated by a large public sector due to a legacy of centralization. The Bank strategy will focus on improving governance and social inclusion, particularly the inclusion of women. “Proper management of Iraq’s vast oil wealth and human resources, coupled with a conducive and efficient investment climate, will be key to inclusive growth and job creation,” the Washington-based institution said.
roll over the past 6 months ISLAMABAD AGENCIES
Pakistan Stock Markets has outperformed from June 30 to December, 7 of the current year among Global Stock Markets including India, China, Hong Kong, Tokoyo, USA and UK. Stock Analyst, Zaheer Ahmed told APP that the participation of foreign investment was the main reason behind the better performance of Karachi Stock Exchange (KSE). In addition, the better return on Pakistan Stocks has also attracted the foreigners which they did not find in the other Global Markets, he added. The Analyst said that aside from this, the local investors had found the best avenue in the capital market because of consecutive decline in the discount rate. KSE-100 Index has witnessed an increase of 21.8 per cent from 13801.41 to 16807.91 during period of last six month. In the same way, the US S&P 500 has registered an increase of 3.8 per cent while the UK FTSE 100 was up by 5.8 per cent during the period under view. The Index of Tokoyo NIKKEI 225 stood at 9,527.39 with an increase of 5.8 per cent as compared to 9,006.78 during the last six months. Besides, The Hong Kong went upward by 14.1 per cent but China Shanghai Composite witnessed a decline of 7.4 per cent. Aside this, Bombay Sensex Index stood at 19,424.10 against 17,429.98 during the last six months with enhancement of 11.4 per cent. Meanwhile, Total Market Capitalization has witnessed an increase of 19.7 per cent from $37.24 billion to $44.58 billion during the period of last six months.
Asian shares up on US hopes, Greek upgrade lifts euro HONG KONG AGENCIES
Asian markets were boosted Wednesday as US politicians look to be closing in on a deal to avert the fiscal cliff, while the euro added to gains in New York after Greece’s debt rating was upgraded.Tokyo shares surged 1.12 percent, a third straight rally, to break 10,000 for the first time in eight months ahead of an expected Bank of Japan announcement on monetary policy. Hong Kong rose 0.51 percent, Sydney added 0.42 percent and Seoul was 0.51 percent higher, but Shanghai eased 0.30 percent. The main focus continues to be on the United States, where lawmakers are holding talks to avert the huge tax hikes and deep spending cuts slated to come into effect in two weeks. Most economists expect the package to tip the US economy into recession if a new deal — with less swingeing measures — is not agreed in time.
However, there is growing confidence that progress is being made in the negotiations, with top Republican lawmaker John Boehner saying he is willing to see taxes rise for people on more than $1 million — rather than his previous position of no rises at all. President Barack Obama has also said he is willing to see rises for people on more than $400,000, rather than the $250,000 he previously wanted. Adding to the upbeat sentiment was news out of Europe that Standard & Poor’s raised Greece’s sovereign debt rating by six notches, citing support for Athens from its eurozone partners. The upgrade from selective default to B/B “reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone”, the agency said. Greek Finance Minister Yannis Stournaras said the decision “was a very important one that created a climate of optimism”.
The move came after Greece completed a debt buyback programme and eurozone finance ministers approved the latest batch of bailout cash. Tuesday’s decision provided a fillip for the euro, which added to recent gains against the dollar and yen. In early forex trade, the single currency firmed to 111.54 yen from 111.47 yen in New York late Tuesday, while it was at $1.3231, from $1.3225. On Tuesday in Asia the euro was at $1.3165 and 110.49 yen. And the dollar was quoted at 84.32 yen, compared with 84.28 yen in New York. The Japanese currency remains under pressure as traders await the end of a twoday BoJ policy meeting on Thursday, with most expecting fresh monetary easing to kickstart the economy. Incoming prime minister Shinzo Abe Tuesday asked central bank chief Masaaki Shirakawa to adopt a two percent inflation target, just days after his landslide election win on a promise of pressing for more aggressive monetary eas-
ing.
The weak yen again fuelled a rally on the Nikkei, which hit its highest level since early April. There appeared to be little reaction to data showing Japan’s November trade deficit expanded 37.9 percent on-year to $11.3 billion, a record for the month, with exports to China slumping owing to a bitter
territorial spat with Beijing. Oil prices rose, with New York’s main contract, light sweet crude for delivery in January rising two cents to $87.95 a barrel and Brent North Sea crude for February delivery advancing eight cents to $108.92. Gold was at $1,674.44 at 0200 GMT compared with $1,698.90 late Tuesday.
Thursday, 20 December, 2012
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Business 02 Yen weak ahead of Bank of Japan policy decision
Byco’s largest unit takes country’s oil refining capacity to 18 MT
TOKYO AGENCIES
The yen was under pressure in Asia Wednesday as markets bet on more easing measures after a Bank of Japan (BoJ) policy meeting, while the euro won support from a batch of positive eurozone news. The dollar was quoted at 84.30 yen in Tokyo morning trade, from 84.28 yen in New York Tuesday afternoon, while the euro also gained to 111.50 yen, from 111.47 yen. The European single currency bought $1.3229, from $1.3225 thanks to a strong Spanish bond auction and upgrade to Greece’s credit rating. The dollar was likely to move in a narrow range as the market awaits the conclusion of a two-day Bank of Japan policy meeting on Thursday, said Daisaku Ueno, senior forex strategist at Mitsubishi UFJ Morgan Stanley. The greenback has won a measure of support on rising optimism of a deal to avert the US fiscal cliff. Japan’s incoming prime minister Shinzo Abe, whose Liberal Democratic Party swept to an electoral victory in national elections at the weekend, has vowed to step up pressure on the central bank for more aggressive policy action to boost the economy. The hawkish LDP head wants the bank to set a two percent inflation target as part of a goal to drag Japan out of the deflationary spiral that has haunted it for years. The BoJ “cannot ignore the popular support for Mr Abe”, Ueno told Dow Jones Newswires. “It’s likely the central bank will implement some form of easing.”
KARACHI
B
STAFF REPORT
YCO Oil Pakistan Limited Wednesday declared the completion of the country’s largest oil refinery at Mouza Kund, District Lasbella, Balochistan. At present the refinery is in a state of pre-commissioning and preparatory activities wherein different plants, equipment and instrumentation are being put to confirmatory checks and tests. The cold circulation of crude oil has already been established and sustained. Also furnaces of different process units have been test fired. The refinery is ready for hot commissioning and start up. This newly-commissioned petroleum refinery would have an installed refining capacity of 120, 000 barrels per day. Combined with existing and fully operative smaller refinery, the cumulative capacity shall be over 155,000 barrels per day which is 55% higher than the existing largest refinery in Pakistan.
Thus it would enhance overall crude oil refining capacity in the country from existing 12.25 to 18 million tons per year and would significantly contribute in reducing import of deficit refined petroleum products in the country. This refinery can be further expanded up to 180,000 bpd. “This milestone, for sure, has been made possible with sheer hard work of our Employees and support & cooperation of all our valued contractors. Upon commissioning this Refinery, with the blessings of the Almighty, will become the single largest in the country,” said Qaiser Jamal CEO Byco Oil Pakistan while declaring the completion. Along with this new Refinery, the Country’s first isomerisation plant is being commissioned, he said. The introduction of isomerisation technology in Pakistan would not only enable this refinery to produce higher volumes of motor gasoline to meet the country’s demand but this will be the first environment friendly motor gasoline, with almost nil content of Benzene. The first parcel of crude oil for this refinery will be brought to the country’s first single point mooring installed 10km into the Arabian Sea for direct discharge to the Refinery storage tanks. This facility can discharge tankers carrying over 100,000 metric tons of crude oil. With an investment of significantly over $600 million and rising, Byco also operates as a fast growing petroleum marketing business network comprising of 222 retail outlets. Amir Abbassciy, CEO of Byco Industries Incorporated, parent company of Byco’s operating companies in the country said: “These are the first significant steps toward achieving our aim to be in integrated oil to chemicals and related infrastructure businesses.”
Major Gainers COMPANY Mithchells Fruit Exide (PAK) Pak.Int.Cont. SD Pak Oilfields Khyber TobaccoXD
OPEN 337.25 290.15 261.76 422.82 102.71
HIGH 354.11 300.00 274.84 430.50 107.84
LOW 353.95 299.89 248.68 423.96 107.84
CLOSE 354.11 300.00 269.93 430.24 107.84
CHANGE 16.86 9.85 8.17 7.42 5.13
TURNOVER 800 300 116,400 792,900 500
1360.00 1350.00 4250.00 249.00 83.00
1344.73 1350.00 4250.00 245.00 83.00
1350.00 1350.00 4250.00 245.23 83.00
-65.50 -50.00 -50.00 -4.77 -4.00
950 50 20 2,600 500
16.75 44.10 55.25 14.97 114.60
16.25 43.51 54.50 14.50 113.85
16.44 43.80 54.74 14.86 114.31
0.22 -0.18 -0.19 0.13 0.28
7,909,000 7,631,000 5,655,000 5,393,500 5,349,600
Major Losers Bata (Pak) Colgate Palmolive Unilever Food AL-Ghazi Tractors Premier Suger Mills
1415.50 1400.00 4300.00 250.00 87.00
Volume Leaders Jah.Sidd. Co. Hub Power Co D.G.K.Cement Maple Leaf Cement Fauji Fertili XD
16.22 43.98 54.93 14.73 114.03
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.7148 159.1872 1.1583 129.6578
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Kuwaiti Dinar
98.10 128.88 158.24 1.1493 98.24 12.43 26.53 26.02 344.46
SELL 98.80 130.39 160.06 1.1626 99.88 12.63 26.81 26.26 347.59
CORPORATE CORNER Head & Shoulders participates in Pakistan Association of Dermatology annual conference KARACHI: Head & shoulders, the world’s leading anti-dandruff shampoo actively participated in the 31st annual conference of Pakistan Association of Dermatology (PAD) held in Lahore this year. The Annual PAD conference is Pakistan’s largest Dermatology Conference and it attracts over 300 leading dermatologists from across the country. The conference provides a platform to dermatologists in Pakistan to meet their colleagues from allied disciplines and discuss the latest technological advancements in the field of Dermatology. Also present at the conference, one of Pakistan’s leading dermatologist and the official expert for head & shoulders, Dr. Seema Hirji, said: “This is indeed an excellent platform that provides an opportunity for leading dermatologists of the country to interact with each other and share new scientific advancements in the field of dermatology. This has been made possible by the support of partners like head & shoulders who are committed to providing effective hair and scalp care to the people.” Talking about hair & scalp health in particular Dr. Seema said, “head & shoulders scientists have been able to translate scientific knowledge into technology solutions for effective scalp and antidandruff products. They understand scalp and dandruff problems and are continuously striving to help consumers fight dandruff and related issues.”
‘The Mermaids of Veet’: super model contest
pool with sea creatures. The latest episode featured the gorgeous super star of Film and TV industry, Mahira Khan as the Celebrity Mentor. Mahira Khan gave very important tips to the girl and emphasized to stay true to the profession and give full dedication to their work. Frieha Altaf however pointed out that education is equally important for everyone even in the showbiz industry. The main challenge of the episode was a Pool Photo shoot, Photographed by the celebrity judge, the one and only Tapuliciously Tapu; and stylized by the queen of style, our celebrity judge, Nablia. Tapu and Nabila have been around with the girls since the time of auditions and knew well the strengths and weaknesses of all the contestants and made them test to the fullest. The shoot was done in pool with sea animals surrounding and giving the contestants a mermaid look.
KARACHI: CPLC Chief Ahmed Chinoy, Barrister Zia Ahmed Awan, Shoaib Haider, Farhan Rehman and Salma Ahmed are pictured at a seminar Peace and Tolerance organized by NGO Bardasht.
KARACHI: Mr. Fand Khan (Left), Director, Media Axis, Ms. Anita Nayyer (Centre), CEO, India & South Asia, Havas Media, Mr. Vishnu Mohan (Right), CEO, Asia Pacific, MPG APAC, at the signing ceremony between MPG, the media communications network that anchors Havas Media, one of the world’s fastest growing global media networks having 122 offices worldwide and Media Axis - Pakistan’s leading media communication and consulting group. Under the contract, Media Axis will now represent MPG in Pakistan.
Civil servants delegation visits remedial school of FRESH
KARACHI: Charisma is beauty and confidence, the perfect ingredients to make you stand out amongst a crowd of good looking people. A model looks beautiful, a super model exudes confidence, beauty and femininity. It won’t be wrong to say that the 7th episode of Veet Miss Super Model, challenged our Veet girls even further while testing the waters of elegance. With a pool shoot, looking gorgeous in water became even more challenging when some of our Veet girls came face to face with their greatest fear while posing amidst a
She said the number of admission requests for the Remedial school of FRESH is increasing with every passing day. It suggests that it is becoming difficult for young students to coop with mainstream education due to learning difficulties, she added. The delegation of civil servants also met students of the Foundation studying at its remedial school. The delegation also took interest in the art work of school children.
KARACHI: A group of under-training civil servants from the Civil Serviced Academy 40-Commons visited the remedial school of the Foundation for Rehabilitation & Education of Slow Children (FRESH) other day to study the social welfare project as a part of their training. Chief Executive Officer (CEO) Foundation Mrs Ashba Kamran made a detailed presentation on the FRESH and its flag-carrier platform Pakistan Association for Difficulties In Learning (PADIL), an awareness campaign for slow learners in the society. Mrs Ashba Kamran awareness about slow learners has become a national cause and large number of young students from across the country has joined PADIL to work for the slow learners. She said the number of drop0outs from public and private schools in alarmingly on the rise.
Mobilink continues network expansion across Pakistan LAHORE: Mobilink continues to consolidate its market leadership in Pakistan’s cellular industry, with the expansion of its voice and data network across the country. Over the course of 2012, Mobilink has been rapidly establishing new cell-sites to reach out to numerous underserved regions across Pakistan, to enable wider delivery of cutting-edge services throughout Pakistan. Mobilink’s investment in network expansion is a continuous endeavor, with 2012 alone having seen over 8% growth in cell sites, with the organization’s cellular network now spread over 9,000 sites, the largest within Pakistan’s industry.The cell sites have primarily been set up for improving voice and data capacity and catering to the growing communication needs. Ramy Reyad Kamel, Chief Technical Officer Mobilink highlighted “This expansion activity is in line with the commitment made by Mr Rashid Khan, our President & CEO at the beginning of 2012 to provide the best cellular experience to our customers. Over the course of the year, we have optimized our infrastructure investment thus enhancing the coverage and capacity of Mobilink’s network across Pakistan.We are committed to consistently enriching our network with newer technologies and services, while continuing to expand our network outreach across Pakistan.”
Tetra Pak graffiti artists ‘juice up’ to win big LAHORE: Tetra Pak, the world’s leading food processing and packaging company, has announced the winners of its month long Graffiti Art competition. More than 200 young artists from 7 cities across Pakistan participated in the packaged juice awareness campaign, creating graffiti based works of art on a wide range of subjects such as health, nature, food safety and happiness. Students from N.C.A, Pakistan Institute of Fashion and Design, Lahore Lyceum, Lahore Grammar School, Beaconhouse School and City Grammar School participated in the competition, using their creativity to emblazon their unique graffiti designs on portable wall murals and lifesized packaged juice cartons. Renowned graffiti artist Abdullah Ahmed Khan, professionally known as Sanki King, was the head of the Judging panel, which comprised of representatives from Lahore’s leading Art and Design Institutions, who collectively adjudged the works of art and determined the winning entries.
No substitute for political agreement: Larocco ISLAMABAD: There is no substitute for a political agreement in Afghanistan, and military action alone is not enough to bring an end to the conflict, said James Larocco, director of the Near East South Asia Center for Strategic Studies in Washington and a former ambassador, at a roundtable discussion at the Jinnah Institute in Islamabad on Wednesday. “Militaries don’t solve the problems. Essentially you have to address political issues, and you have to address economic issues. Without addressing those two, militaries accomplish nothing,” said Amb. Larocco, adding that other countries in the region, especially Pakistan, need to be comfortable and feel secure with the political and economic arrangements in Afghanistan. The Jinnah Institute discussion was attended by senior journalists, researchers, former and current Pakistani officials and members of civil society. The roundtable focused on the state of Afghanistan, U.S.-Pakistan relations and the way forward on resolving the issues that have plagued them. Participants agreed that greater people-to-people contacts were necessary for strengthening the relationship, so that both countries better understand each other. Raza Rumi, director of policy and programmes at the Jinnah Institute, stressed the need for improving ties not just between governments and militaries, but also between institutions and people.
Thursday, 20 December, 2012