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Wednesday, 14 December, 2011
Finance Ministry agrees to release Rs4.6b to HEC ISLAMABAD INP
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Dam has storage capacity of about eight million acre feet g Projected electricity generation expected at 4,500MW ISLAMABAD
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AMER SIAL
SiAn Development Bank (ADB) has stressed that government should focus on addressing issues of affected population, environmental impact and revenue sharing between the contesting territories for the smooth execution of the mega hydel power project of Diamer Bhasha Dam. Talking with a select group of reporters, Head of Energy Division of ADB Rune Stroem, along with Country Director Pakistan Werner Liepach said boundary dispute between GilgitBaltistan (GB) and KhyberPakhtunkhwa (KP) threatens to derail the Diamer-Bhasha dam project. KP
government is disputing ownership of 18 kilometer long belt with GB government in a bid to get a share in income from power generation. GB legislative assembly has passed the resolution against the KP claim. if the dispute is not amicably resolved it may end up in court that may delay initiation of the project that government plans to under take from next year. Stroem is fully aware that there will be strong debate on revenue sharing. We can give advice but at the end the issue will have to be decided by the Council of Common interests. He said ADB will play its role as senior lender, co-financer and will be the financial advisor to Pakistan on the project. He said both parties will review draft of Memorandum of Under-
standing next week that will clearly define the role of ADB in project execution. He said Wapda will evaluate bids for the project but ADB will also review to ensure transparency. ADB has strong anti-corruption policies and the agency’s involvement will give more credit to the project. Stroem said success of the project hinges on the satisfaction of local people. The resettlement work has been done but still there are gaps where government needs to bring in improvement as per international standards. He said environment issues and social safeguards with respect to resettlement are extremely critical for successful completion of the project. Diamer-Bhasha dam, with a storage capacity of about eight million acre feet
and projected electricity generation of 4,500MW will be built on River indus near Chilas in Diamer district of Gilgit Baltistan. Estimated cost of the project is $11.2 billion and will take more than eight years to build. He said project could not be donordriven as government is the primary driver. ADB was helping government to structure the project and make it bankable. it is the most complex and the most comprehensive project ADB has ever financed. Werner Liepach said ADB has not yet framed clear views on dam financing requirements but export credit will be major source of financing. Other than export credit international Financial institutions and commercial financing would also be availed to complete the project.
Gilani reviews restructuring of Pak Steel Mills g
Directs early appointment of CEO g Calls upon stakeholders to encourage search for collaboration with partners including Russia ISLAMABAD
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STAFF REPORT
meeting was held under the Chairmanship of Prime Minister Syed Yusuf Raza Gilani at the PM House yesterday in which the Ministry of Production gave briefing on the Pakistan Steel Mills (PSM) revival plan on a sustainable basis. The Prime Minister called upon the stakeholders to encourage the search for collaboration with partners including Russian Government’s offer made by the Russian Prime Minister Putin during Pakistan’s Prime Minister recent visit to the country to attend SCO Summit in Saint Petersburg. He was briefed on efforts of CCOR to undertake reforms and restructuring in PSM including commercial and business preferences in the aftermath of losses incurred during 2008-09. Prime Minister Syed Yusuf Raza Gilani directed the Cabinet Committee on Restructuring (CCOR) to immediately recom-
mend names of candidates for appointment as Chief Executive Officer to operationalise business plan of the Pakistan Steel Mills (PSM). He said the CCOR was with holding name of short listed candidates forwarded to it by the PSM board a few weeks back. The source said former managing director of Sui Southern Gas Company Limited Faizullah Abassi is most likely to be appointed CEO of PSM, as he fulfills required criteria for the post. He holds a PhD in Metallurgy. The source said appointment of CEO is required to move forward the revival of steel mills. Government has recently approved providing sovereign guarantee to banks for providing Rs6 billion to PSM. The financial injection will help keep the company operational, the source said adding that the one ship load of raw material was being imported with plans to import two more in coming months. Approval of the financial package will allow complete revival of the company in next few months. PSM was operating profitably till 2002-2008 period but has incurred massive losses
for the last four years. The meeting was informed that CCOR had adopted a series of measures to ensure that PSM begins to achieve recovery and financial rehabilitation. These measures included reconstitution of Board of Directors with professionals, separation of the post of chairman and CEO and appointment of the chairman from the independent board members. The short listing of CEO, preparation of Business Plan by
PSM, and other measures to identify international collaboration and basic capital required for achieving higher rate of capacity utilisation of the Mills were discussed. The meeting was attended by the Minister for Finance, Minister for Production, Secretary Production, Secretary Privatization and other senior officials of the relevant Ministries.
HE Ministry of Finance has agreed to release Rs4.6 billion to the Higher Education Commission (HEC) in order to run its scholarship programmes and other projects in the current financial crunch. Official sources in HEC told media that a meeting was held between the HEC and the concerned authorities of the Ministry of Finance two weeks back where it was agreed that the ministry would provide Rs4.6 billion to resolve financial issues being faced by HEC. “We have not received any letter regarding the disbursement of funds to the commission by the Ministry of Finance,” official sources explained. The World Bank had approved a grant of 300 million dollars in three years under World Bank Tertiary Education Support Project (TESP) to HEC. “During a meeting between HEC and the Ministry of Finance it was decided that the total amount of Rs4.6 billion that would be provided by the Finance Ministry would include funds from the World Bank too,” official sources added. The federal government under the 18th amendment intended to devolve HEC but after a hue and cry was raised by the opposition parties, vice chancellors (VCs) of the universities as well as civil society in favour of keeping it in the centre the government was forced to backtrack. The Finance Ministry will release funds subsequent to the short order of the Supreme Court in which it directed the government not to devolve HEC’s responsibilities without bringing in new legislation, an official of HEC revealed. He said that those students who have gone for higher studies abroad through HEC funding are getting the scholarship amount on a regular basis while HEC was facing financial problems in sending the new selected students on merit scholarships abroad. According to sources, the total allocated budget for HEC for the current fiscal year 2011-12 was Rs40 billion including recurring budget of Rs26 billion and development budget of Rs14 billion; but if the commission completes all its ongoing projects then it would require Rs53.11 billion for the current fiscal year and, according to an estimate, the financial requirement for the commission would be around Rs62.28 billion for 2012-13, Rs70.55 billion for 201314 and Rs81.99 billion for 2014-15 while for the financial year 2015-16 the requirement might reach Rs91.38 billion. According to a recent international human development report released by the United nationals Development Programme (UnDP), Pakistan’s adult literacy rate in the second half of the last decade was 55 percent, a far cry from the 74.04 percent in neighbouring india while the report ranked Pakistan in terms of adult education at 145 out of 187 countries examined, lower than india, South Africa, Bhutan, Uzbekistan, Kyrgyzstan, Tajikistan, indonesia, and even Palestine and iraq. According to a report, roughly one in ten of the world’s primaryage children who are not in school live in Pakistan, placing Pakistan second in the global ranking of out-of-school children. With approximately 40 per cent of the population under the age of 15, Pakistan faces an education crisis which threatens to have profound human, social and economic consequences. According to Amir Hamza Jilani from the Research School of Economics at the Australian national University “The Pakistan Education Statistics handbook, most recently available for 2007-2008, notes that only 29 million of Pakistan’s 70 million children under the age of 15 are enrolled in school. This means that nearly 41 million kids are out of school, representing 60 per cent of the youth.”
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Wednesday, 14 December, 2011
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warned that oil prices could spike to $250 a barrel as a result of sanctions.
EMbaRGO’S POSSiblE REaCtiOn
An imminent oil ApocAlypse
War on iran and its consequences FArAkh ShAhzAD
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iL, the blood of global economy, is the biggest derivative of economic growth in all the economies across the world. The importance of oil to the world’s super-economy can be testified by the statements from all US Heads of state. Every president since Richard nixon has asserted that we are running out of oil.
iRan EMbaRGO EFFECtS CRUDE oil prices that nose dived to the rock bottom level of $18 per barrel during mid 90s are currently rocketing at $111 with upward tendencies. it is unfortunate that the recent push is not caused by a natural demandsupply phenomenon but is being triggered by political decisions. Oil prices rose this week with Brent crude futures up near $111, extending gains from last week as rising tensions between iran and the West increased the risk of disruption to crude shipments by the world’s fifthlargest oil
exporter. But the intensity of the bad news does not end here. More is yet to come. iran warned the West that any move to block its oil exports would more than double crude prices with devastating consequences for a fragile global economy. Christopher Bellew, an oil trader with Jefferies Bache in London, said that worries about iran and Syria were helping to buoy oil prices. “if iranian exports were suspended that would be very significant as the market is tight already,” he said. The fresh oil price threat has emerged from the European Union’s consideration to put an oil embargo on iranian import which is already in place in the United States. “Oil traders are pricing in a 20 per cent chance of a military conflict with iran, which could push prices above $200, so they’re buying insurance now,” said Gordon Kwan, head of energy research at Mirae Asset Management in Hong Kong.
iRanian StakE iRAn is the third-largest exporter of oil, after Saudi Arabia and Russia. Having a daily production of 3.5 million barrels per day, its biggest customers — China, the European Union, india, Japan, and South Korea — together account for two-thirds of total iranian oil exports, according to an published by the Energy information Administration in the United States. Reduced orders from just one of those customers could be disruptive for iran, where the economy is already suffering from the accumulated effects of other sanctions. in the face of looming embargo threat there is no nervous excitement in iranian camp. iranian oil minister Rostam Qasemi who attended the opening of the World Petroleum Congress in Doha said iran was not worried about a potential embargo on iranian oil by the European Union. iranian reaction is tantamount to a feeling that the sky is not falling. “As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel,” Foreign Ministry spokesman Ramin Mehmanparast said in a newspaper interview. The comments come as iran strives
to contain international reaction to the storming of the British embassy last week, a move which drew immediate condemnation from around the world and may galvanise support for tougher action against Tehran. But the real story is that storming of British Embassy in Tehran was just used as a pretext to ‘strike when the iron is hot’. Washington and EU countries were already discussing measures to restrict oil exports after the United nations nuclear watchdog issued a report in november with what it said was evidence that Tehran had worked on designing an atom bomb.
FEaRS OF baCklaSH AS the European Union is becoming skeptical about slapping sanctions on imports of iranian oil, diplomats and traders say that the embargo could damage its own economy without doing much to undercut to iran’s oil revenues. iran on the other hand may find the alternate partners to sell its EU-specific oil at a cheaper price. it will open new ways of oil smuggling in the region. Sanctions critics say the regime of iraqi former dictator Saddam Hussein was able to withstand sanctions for years. Oil accounts for 50 per cent of iranian budget revenues, and those arguing for sanctions say they can deprive Tehran of billions of dollars and derail what the West sees as iran’s attempts to build a nuclear bomb. But diplomats and oil industry insiders say Europe may calculate that even a small rise in oil prices as a result of an introduction of an EU-wide embargo would more than compensate Tehran for any losses from being obliged to re-route displaced supplies to Asia at discounted prices. “Maybe the aim of sanctions is to help italy, Spain and Greece to collapse and make the EU a smaller club,” one trader joked. The remark reflects the growing unease that EU sanctions would hit hardest some of the continent’s weakest economies, because iranian oil provides the highest share of their needs, not to mention the rest of the bloc. “The likely increase in oil prices that would result from a ban would be felt by all (European) oil refiners, not just those that are big customers for iranian oil,” ratings agency Fitch said last week.
POlitiCal MOtivatiOn THE threat to iran’s oil exports and fears about a possible military strike on its nuclear facilities have helped keep oil prices above $100 a barrel despite sluggish global growth and a gradual return of Libyan oil supplies. iran, the world’s fifth-largest oil exporter, has said it cannot rule out a self-imposed oil embargo to punish the West and on Sunday
SUPPORTERS of sanctions say an EU ban would not amount to a supply disruption. iranian oil displaced from Europe would flow to China, displacing existing sources of Chinese oil towards Europe. They say Beijing, as iran’s buyer of last resort, would then have the leverage to drive a hard bargain on prices. However, calculations by US research firms and traders show the discount could be as small as a couple of percentage points. Saudi Arabia, the only oil nation with spare capacity, faces a tough choice. Shipping more oil to Europe to replace lost iranian barrels could mean ceding promising Asian markets to iran, its political foe. The Saudis have already started assessing the volume of iranian supplies that go to their own big buyers.
COntinGEnCy Plan “iT is sort of a contingency plan to know to what extent they can fill the gap and minimise the impact on the market,” the source familiar with the Saudi strategy said. “The Saudis want to know their options, if something happens.” A source close to the Saudi oil industry in Europe also said Riyadh would consider raising supplies if iranian oil was lost. Saudi Arabia has already helped to substitute iranian supplies once this year, when Tehran threatened to halt oil to india due to a payment dispute which followed US pressure on new Delhi to reduce dealings with iran. This week, refiners in india, South Korea and Japan indicated they are reluctant to buy more iranian crude, fearing that payments troubles could resurface again. “To make sanctions effective, the Europeans would have to go to the Chinese to ask them not to take more oil,” said a senior oil executive, who added that he did not expect sanctions to take place at least until the second quarter of 2012, when seasonal demand eases.
PakiStan CHaPtER PAKiSTAn, being a developing country will be the first causality in the oil war between iran and the rest of the world. We have an annual demand of 2 million tonnes of oil mainly coming from Saudi Arabia. A rise in international oil prices will undoubtedly affect the pace of progress in the energy starved economy of Pakistan. it is critical to note that our demand for oil has slightly decreased in recent years due to slow growth in the industrial sector which is an unhealthy sign of our declining economy. A country with a growth rate of 2 per cent is already struggling hard to overcome its increasing financial woes especially the foreign debt mounting at more than $60 billion. it is predicted that the petrol and diesel smuggling from iran will be an obvious outcome of the oil embargo on iran. However, Pakistan can use its diplomatic sources just like China and india who are not supporting the embargo and are looking forward to continue their oil relations with iran. it is warned that the average household already spends more on transport than on cost of food and clothing, and will be hit hard if the oil spike filters through to pump prices. While the relentless rise in fuel prices is punishing us all, the poor are being particularly hard hit.
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Wednesday, 14 December, 2011
EDITORIAL
Criminalisation› of ation disasters
Railways collapse Rs25 billion subsidy and still Railways’ annual loss adds up to Rs45 billion. Everything about the current state of the enterprise – wrecked locomotives, appalling monitoring and oversight, unacceptable safety conditions, non-existent checks and balances, inexcusable handling of engines – reeks of corruption and mismanagement of the highest order. Regrettably, recommendations of the national Assembly Standing Committee on Railways, largely citing fire-fighting measures to forestall immediate collapse, will only amount to the proverbial band-aiding bullet wounds. Railways, like most public sector enterprises, is in a state of utter collapse because it has been allowed to decay. And while we have endlessly explained numerous reasons for its fall, its best to concentrate time and energy into identifying avenues for improvement. A homogeneous system is needed that covers all such organisations. One, they can no longer be used to dump political appointees. This practice has led to collapse of practically all government institutions. Two, it cannot have
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a management not answerable to market forces. Three, employees cannot be compensated according to an arrangement from a bygone era. Four, they cannot sit on extremely large tracts of prized real estate used for nonproductive enterprises. At the risk of repetition, till the holding company argument, proposed on numerous occasions by our panel of experts, is implemented, there can be no avoiding total collapse of all sick PSEs, railways perhaps the first to fall on its own weight. There must be immediate and credible steps towards strategic privatisation, which cannot materialise till a management turnaround is engineered. We must have infusion of private sector dynamics, aimed chiefly at stitching together a suitable product for sale – checking leakages, addressing over-staffing, minimising losses, etc. One an even more important note, Railways in such disarray is not just an embarrassment for the government, it has the makings of a colossal calamity. The people’s suffering being one thing, it can seriously compromise the army’s tactical deployment should push come to shove, and we are already in a very strained security situation.
Ufone,Teri Mehrbani!
Nandipur Power Project
The article is very well written and a good attempt at analysing the relationship of Ufone sales and advertisements. The writer has got it spot on! i agree with everything that has been highlighted in the article, but then i would also like to ask, how else can one advertise better? i mean, back in the 90s, getting an advertisement on people’s minds and tongues was the best achievement of an advertiser, but now i think, it is because of the 'other' factors that Ufone is still not being able to get more customers even after getting into the heads of the general public.
it has been two long years but thankfully the nandipur project is back on the table. The project, that is being touted to be worth 450 megawatts, will go a long way in solving the power issues that we have in out neck of the woods. Along with Dassu Dam project and the Kacchi Canal project, the nandipur project is something that the government should continue to focus on and make sure that the work is underway as soon as possible. We have many issues in the country but in my humble opinion the biggest problem that we face as a nation is the power crisis. We need to solve this issue before focusing on anything else.
M B A khAn
MuhAMMAD AMjAD Butt
Shah Murad
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Who is to blame for aviation disasters in Pakistan and does justice survive behind walls of silence?
LAhORE
kARAchI
ViATiOn history of Pakistan is replete with the worst air tragedies. investigation reports of aircraft accidents have long been shrouded in mystery. inconvenient truth is obfuscated by deep-rooted corruption. Perhaps covering up is a smaller lie for the well-intentioned conduct of the Civil Aviation Authority (CAA). Who is to blame for aviation disasters in Pakistan and does justice survive behind walls of silence? Following an aircraft accident two parallel investigations are conducted, one is technical and the other is a judicial investigation. According to iCAO’s Manual of Aircraft Accident and incident investigation the primary object of the technical investigation is to establish the facts related to an aircraft accident by making use of the specialised knowledge and practical experience of the participating individuals with respect to construction and operation of the aircraft involved in the accident and to examine the facilities and services that were provided to aircraft prior to the accident. in addition, Standard 3.1 of iCAO Annex 13 (Aircraft Accident and incident investigation) stipulates that the sole objective of technical investigation of aircraft accident or incident is to prevent accidents form reoccurrence and not to apportion blame or liability. On the other hand, judicial investigation is conducted by the courts of law. it goes several steps beyond the technical investigation and utilizes other tests to evaluate the results of the investigative process. Basic object of judicial investigation is to apportion blame for criminal and civil liability on the concerned parties that have been at fault. Based on the findings of judicial investigation pilots, air traffic controllers, aircraft maintenance engineers and other aviation professionals have been criminally prosecuted throughout the world with multiple charges of breach of duty, criminal negligence and involuntarily manslaughter. From 1956 to 2010 in over 60 cases only officials of the aviation authorities and management of airlines were criminally investigated due to breach of contract
on part of their employees and agents. in some cases, aircraft manufacturers were also held responsible for aviation products liability for manufacturing and design defects. in December, 2010 the French Court ruled that Continental Airlines and one of its mechanics were guilty of involuntary homicide for their role in the crash of an Air France Concorde Flight 4590 outside Paris on July 25, 2000 in which all 109 people on board were killed. Globally, aircraft accidents are investigated by independent bodies without interference of aviation authorities and airlines. in Pakistan the Safety investigation Board of Civil Aviation Authority (CAA) is responsible to investigate all civil aircraft accidents and incidents. it is indeed unfortunate that 185 people lost their lives in the event of three fatal aircraft accidents of Airblue Flight ED 202, JS and Sun Way in 2010. now it has been over one and half year since the air mishaps but the victims’ families are still waiting for the findings of investigation report. Pakistan is party to the Chicago Convention, 1944. Of the 190 iCAO Contracting States, why are investigation reports of aircraft accidents only secret in Pakistan? Probably one of the major reasons is that the investigation reports of aircraft accidents serve legal basis for criminal action against aviation professionals. it is incumbent on every iCAO Contracting State in which an aircraft accident occurs to institute an inquiry into the circumstances of the accident in conformity with Article 26 of the Chicago Convention, 1944. This obligation can only be met when appropriate legislation on aircraft accident investigation is in place. Such legislation must establish an independent statutory accident investigation authority for the investigation of aircraft accidents. Similarly, Standard 5.4 of iCAO Annex 13 also requires that the accident investigation authority should have independence in the conduct of the investigation and have unrestricted authority over its conduct, consistent with the provisions of this Annex. Further, Standard 2.1.2 of the iCAO Manual of Aircraft Accident and incident investigation Part i (Organization and Planning) First Edition— 2000 also requires that the accident investigation authority must be strictly objective and totally impartial and must also be perceived to be so. Many States have achieved this objective by setting up their accident investigation authority as an independent statutory body. Effective and transparent investigation makes a positive contribution to sustainable air transportation services. investigation reports of aircraft accidents should be made public in order to serve one of the fundamental purposes for the administration of justice. Secondly, there is also a need for the establishment of an independent statutory authority in Pakistan for the investigation of aircraft accidents and incidents. The writer is an Aviation Lawyer. He can be reached at shahmurad@live.com
The power of social media With 2.2 million Haya Hamid HEY say ‘customer is the king’ and yet the amount of work and effort that the online audience of news sites does is quite like a kings minion. in this time of information overload, the job of sifting through news and reports to get the required data is a herculean job reserved only for this royalty. Smartly cashing in on the opportunity, all online news agencies offered the facility of conveniently checking boxes for one’s area of interest and all news related to your desired subject will be delivered in in
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your inboxes, a facility greatly appreciated by those who want to avoid news clutter. The demand of those who want hard and fast facts for news rather than opinions also divert their interests online where it’s easier to find information in a much more orderly fashion which is efficiently updated. The debate of influence of social media in Pakistan is being established by the 22 million internet users within the country. The magnitude of that population can be estimated by the fact that the total population of Singapore is 4.5 million and the facebook population of Pakistan is 5.7 million. Online business networking is also on the rise, as is shown by 0.08 million people connected through Linked in. This reflects the increase in digital immigrants from 1 per cent to 3 per cent in the last decade. For a layman, digital immigrants are those that worked well even before the internet revolution and the digital natives are those that had email addresses before they left the hospital nursery. The power of digital natives is constantly redefining the potency and potential of
social media within Pakistan. Cloud computing, if not so reliable for official date storage due to power crisis, is definitely catching speed for telecom users. ‘Syncing’ contacts and other directories are options available to even those that seldom use the internet. All this technology in the reach of every other individual greatly enhances the wildfire effect of news reporting. The culprit for the Halal/Haram controversy for Lays chips in Pakistan was found to be a single text message and a blog post. Similarly indian bloggers clarifying Ajmal Shehzads non-relation with iSi was also the result of a Pakistani satirical article going viral online. These new and nippy methods of news reporting also call for an inbuilt check and balance system. When a recent indian newspaper published photos of Pakistan’s fighter jets parked on their naval ships, ‘celebrating indian navy day’ took an almost comical u-turn. Where foreign news agencies put great stock in individual journalism, Pakistani agencies still lack in timely news
SHaHab JaFRy Business Editor
kunWaR kHulDunE SHaHiD Sub-Editor
babuR SaGHiR Creative Head
ali RiZvi News Editor
MaHEEn SyED Sub-Editor
HaMMaD RaZa Layout Designer
internet users in Pakistan, is social media transforming the fundamental tenets of marketing?
deliverance. Bbcnews.com still credits guppu.com for the live reporting on the attack on the Sri Lankan cricket team in Lahore. immediately following the unfortunate Airblue crash tragedy in July 2010, where Pakistani news channels were still repeating the idea of five survivors, international channels picked up tweets and live updates from volunteers on the crash site who started sending pictures and feeds establishing the magnitude of the catastrophe and no chance of survival, news that in the end turned out to be facts based on evidence. it should come as no surprise that the man who live tweeted Osama bin Laden’s death is now the most popular Pakistani on twitter with over 90,000 fans. This on ground reporting is a powerful tool for establishing credibility for any news agency. What it re-
quires is for anybody to be in the right place at the right time reporting the right content. Encouraging street and photo journalism is a cost efficient option for news channels. it allows for not only non reliance on news agencies but also aims to rectify many news glitches that the audience catches time and again. Utilising the power of social media for on the dot news reporting or advertising/marketing is a resource that if harnessed can greatly contribute to build credibility for the channels. it is a tool that an uneducated ‘Asif Hussain Shah’ successfully exploited to attract customer to his Taxi service, its infiltration in the Pakistani market cannot be underestimated. The writer is a freelance journalist and a business student at NBS
For comments, queries and contributions, write to: MunEEb EJaZ Layout Designer
Email: profit@pakistantoday.com.pk Ph: 042-36298305-10 Fax: 042-36298302 Website: www.pakistantoday.com.pk
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If the client and the agency work together, it can really benefit the media as well because we sell products to the consumer
news
CEO Prestige/Grey Group, Jamal Mir
‘We must look towards East for sustainable development’ ISLAMABAD
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STAFF REPORT
iVEn the multiple crises in the West, daunting challenge of poverty at home, and the emerging needs to look towards East, paradigms of sustainable development in South Asia need to be redefined, said the speakers at the inaugural session of 14th Sustainable Development Conference (SDC) ‘Re-defining Paradigms of Sustainable Development in South Asia’ organised by Sustainable Development Policy institute (SDPi) on Tuesday. The region, which hosts half of the global poor population, needs to redefine its approach towards poverty reduction. its orientation to-
wards development also needs to be redefined with greater regional cooperation and integration. Syed naveed Qamar, Minister for Water and Power, said South Asian region has a common history and a shared future; instead of embroiled with the different kinds of conflicts tormenting the lives of billion of people, we should cooperate and promote feelings of one region as it will benefit all the regional countries with regards to poverty alleviation, social development, social justice and natural resource management. He said that the region has always followed the policy of ‘looking at the West’ for development but it missed where it wanted to go and now the time has come to adopt a policy of ‘looking at the East’ keeping in view the regional economic cooperation
and neighbourhood. Talking of Most Favored nation (MFn) status to india and Pak-China joint initiatives he said cooperation and partnership between the countries in the region is of utmost importance which would enable us to resolve our issues and challenges. Speaking at the inaugural session as Keynote Speaker, Dr Sabina Alkire of the Oxford University’s Poverty and Human Development initiative said the measurement of poverty needs to take into account multi-faceted nature of deprivations faced by the poor. She, while sharing the salient findings of the Multidimensional Poverty index (MPi) 2011 with particular reference to South Asia, said as many as half of the population of Pakistan is poor and the country needs to adopt its national
multidimensional poverty line so as to take into account the multiple deprivations in education, health and living standards that 82.7 million MPi poor face. Dr Abid Qaiyum Suleri, Executive Director on the global current crisis involving economic, social, political, environmental dimensions said prevalent development paradigms in developed world have not been able to take care of current generations let alone of future generations. He said the conference would help us analyse whether Western prescriptions were relevant, financially viable, had relevance with countries’ political will, had capacity to meet the demands at grassroots level and expertise at implementers’ level to deliver.
Bear hug drains KSE of 199 points karachi Staff report
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SE 100 index dropped 199 points to close at 11,278 level after a broad based sell off sparked by deteriorating international markets and continued foreign funds selling. Foreigners have sold $5.3m worth of stocks so far in December and local investors anticipate the selling to continue due to weaker $/PKR along with tense relations with the US. Fertiliser stocks witnessed substantial declines led by FATiMA after news flashed on Reuters that the leaders of US Senate negotiating panel agreed to freeze $700 million in aid to Pakistan until Pakistan provides assurance that they are countering improvised explosive
devices in their country. investors dumped FATiMA as it manufactures ammonium nitrate (a common Fertiliser ) which can be used as an improvised explosive device. Among oil stocks OGDC bore the brunt of selling closing down 2.9 per cent, while PPL and POL witnessed flattish closings.
Dwindling index took a nose dive as investor dumped holding amidst deepening tension among US-Pakistan with US senate set to freeze $700m in aid. Global economic concern, persistent foreign outflows and shrinking reserves unnerved investor sentiment. Dreary investor participation has remained a concern with mere 41m
shares traded during the day. The KSE 100 index closed at 11278.02 levels with the loss of 199.10 points, while KSE 30 index lost 176.18 points to close at 10421.98 levels. All Share index closed at 7811.42 levels after losing 130.61 points. Total 62 scrips advanced 175 declined and 75 remain unchanged out of total 312 scrips traded.
bottom line impact, Sustainable Success Lahore: Each company has its own, individual targets and avenues to reach them. However, enhancing the bottom line sustainability is common to all of them. The management and owners of the companies are working constantly to achieve targets. Experience shows that best (and fastest) results are achieved when changes and improvements are based on best practice and lessons learned. Often this can even be accelerated by using international consultancies with significant industry expertise across the globe. STAFF REPORT
Pakistan car sales improve by 20 pc in last five months KaraChI: The sale of locally manufactured cars has been increased by 20 per cent during the last five months of the fiscal year 2011-2012. As per the latest data released by Pakistan Automotive Manufacturers Association (PAMA), car sales by november this year have improved by healthy 20 per cent to 70,718 units, compared to 59,156 units in the first five months period of last financial year. STAFF REPORT
Pakistan Serbia Joint Economic Commission expected to convene ISLaMaBaD: Pakistan and Serbia resolved to expand bilateral relations and cooperation with each other in the field of economy and other sectors. Minister for Foreign Affairs of Serbia, Vuk Jeremic, paid an official visit to Pakistan, yesterday. During the visit, she met Hina Rabbani Khar and discussed a wide range of issues including bilateral relations, as well as regional and international issues of mutual interest, said a foreign office statement. The ministers agreed to convene the Joint Economic Commission next year. STAFF REPORT
Provincial finance department facilitates pensioners Lahore: Provincial finance department, in order to facilitate pensioners in drawing their pension from commercial/schedule banks through bank accounts, has withdrawn the condition to indemnify the amount equivalent to six months pension. They will now be required only to give an indemnity bond on judicial paper of Rs20 for this purpose. it may be mentioned that pensioners were earlier reluctant to withdraw their pensions from the banks due to this condition in wake of Supreme Court’s decision of payment of pension by all commercial /schedule banks through bank accounts. STAFF REPORT
nbP sponsors 12th MaP Convention 2011 KaraChI: national Bank of Pakistan (nBP) would sponsor the 12th MAP Convention to be held on December today at a local hotel. The theme of the convention is ‘Leadership Challenges for Business Success’. The event, organised by Management Association of Pakistan, hosts prestigious national and international guests including Yaseen Anwar Governor State Bank of Pakistan; Kamal Chinoy President Management Association of Pakistan; Rajiv Vastupal, President All india Management Association (AiMA); Frederic Sicre Partner Abraaj Capital (UAE); D Shivakumar Senior Vice President nokia india, Middle East and Africa; Syed Ali Raza Chairman nBP; Dr Adil najam VC, LUMS; Dr Sohail H naqvi Executive Director HEC; Khalid Awan Chairman TCS; Kamran Y Mirza Chief Executive Pakistan Business Council; Jameel Yousuf Chairman TPL Holdings; Usman A Ghani Professor University of Texas and others. PR
Pakistan, turkey to soon sign Pta Lahore: Preferential Trade Agreement (PTA) between Pakistan and Turkey is all set to be signed early next year as the list of goods to this regard is being finalised. This was stated by Turkish Ambassador Hizlan Babur while speaking at the Lahore Chamber of Commerce and industry. LCCi President irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher, Vice President Saeeda nazar, Honorary Consul General in Lahore Mian Tajammal Hussain, Chairman Pak-Turkey Business Council Bashir A Baksh, Former President iftikhar Ali Malik and Former Vice President Shafqat Saeed Piracha, also spoke on the occasion. STAFF REPORT
Profit for e-paper_Layout 1 12/13/2011 11:28 PM Page 5
Wednesday, 14 December, 2011
For improvements in the investment climate to be brought about, we need good governance, consistent policies and financial stability. Our economic team should be strong and consistent – we need to avoid too many changes
news
Chief Executive Pakistan Cables ltd, kamal a Chinoy
British isolation, not so splendid anymore g
Cameron drags britain towards the periphery as Europe stands united kunwAr khuLDune ShAhID
E
UROPE is hankering after a new fiscal union to retrieve itself from the financial quagmire of the past couple of years. The new fiscal accord, agreed by 23 of the 27 European Union members at the EU summit, asserts fiscal discipline on the part of the member states. The December 9 agreement provides more unyielding budget rules and has provided a further 200 billion euros ($267 billion) to the euro exchequer to woo investors and ensure that the eurozone flaunts an aura of stability and self-sufficiency. As France and Germany led the way, backed staunchly by the European Central Bank, Britain chose to opt out after failing to bag concessions for itself. David Cameron’s veto has generated consternation of isolation in the British press as fears of being marginalised on the EU front gather momentum. Throughout European history – especially over the past 500 years or so – the crux of British foreign policy has been to maintain a balance of power on the volatile continent, while keeping its commercial hegemony intact. Even when
Britain was at the helm of European affairs in the 19th century, it adopted a policy of ‘splendid isolation’ to detach itself from the internal rivalries and shifted alliances with the continental powers – according to the need of the hour – to ensure that the balance of power sustained. The apogee of the policy of “splendid isolation” on Britain’s part came at the tail-end of the 19th century under Benjamin Disraeli and the Marquess of Salisbury, as Britain yearned for the establishment of its naval supremacy and trade in lieu of dragging itself into
European altercations. While Cameron might have conjured up the Disraelian outcome of European isolation for his nation at the recent EU summit, the current detachment connotes something quite contrary to the grandeur and influence of Great Britain in Disraeli’s epoch; it smacks of redundancy. Cameron’s veto might crash Britain into an economic dead end, as the national businesses, magnates and the stakeholders hauled over coals on what was, as they perceived it to be, a flabbergasting decision. With support for the deal all across the board in Europe there are also apprehensions about Britain seceding from the EU. Considering the fact that 23 of the 27 nations agreed to the deal, and of the remaining four Sweden and Czech Republic are more than likely to join in after consultations with their parliaments; it leaves Britain in a sticky situation. And of course this tight spot brings the British coalition government under the spotlight and evidently under the gun as well. France, au contraire, must be enjoying every minute of this. nicolas Sarkozy was one of the frontrunners in the matters at Brussel; and if one were revisit our throw
back to European history he might have achieved what many extolled French leaders vied for but failed to pull off – a union of Europe with France orchestrating matters and Britain prowling on the periphery. napoleon Bonaparte’s ultimate target was the conquest of their cross channel nemesis and Charles De Gaulle never pulled any punches against Britain either – the veto against British entry in the Union in 1963 and again in 1967 being conspicuous indicators. France has historically never considered Britain a part of the European Union, and Sarkozy might be witnessing the unraveling of his nation’s diplomatic stratagem of years gone by, right in front of his eyes. Although of course, giving the French leader any credit for the British predicament would be erroneous. it is the British premier who deserves this particular cake, as he shot himself on the foot by showcasing a ‘holier than thou’ attitude and over exalting the ‘British interests’ which in turn has left his country on the sidelines as the rest of Europe stands united. The writer is Sub-Editor, Profit. He can be reached at khulduneshahid@gmail.com
05
E&Ps yet to fully price in higher oil costs kArAChI STAFF REPORT
T
HE oil and gas sector has gained 7 per cent since Oct 1, 2011, versus KSE-100’s decline of 2.4 per cent. it is believed that the rally in the sector has been largely driven by the discovery in nashpa-2 and expectations of potential flows from Domial, Zin and Makori. ‘in our view, the market is yet to fully price in the positive impact of higher international oil prices and PKR depreciation in E&P stocks,’ said Atif Zafar at JS. Arab light crude (benchmark for Pakistan’s oil producers), has averaged at US$107/bbl YTD, versus consensus oil price assumption of US$95/bbl. Hence, we expect potential upgrade in consensus earnings estimate for E&Ps on the back of increase in oil price assumption, he said, adding that if Arab light crude averages at US$100/bbl versus US$95/bbl, the sector’s profitability is likely to improve by 2-5 per cent. Arab light crude oil prices in FY12 have so far averaged at US$107/bbl, compared to US$78/bbl in the corresponding period last year. More importantly, the average is 12 per cent higher than consensus oil price forecast for FY12. The fears of a potential slowdown in global economy amid US and Europe’s debt concerns had led to conservative oil price assumptions. However, supply side issues have kept oil prices firm. Hence, we see a potential upgrade in consensus earnings forecasts for E&P stocks, he said, adding that according to our estimates, if oil prices in FY12 averages at US$100/bbl versus US$95/bbl, our earnings forecasts for OGDC, PPL and POL are likely to improve by 3 per cent, 2per cent and 5 per cent, respectively. Massive currency adjustments around the globe (indian Rupee down 18 per cent, Brazilian Reais down 18 per cent and Russian Rubles down 14 per cent) against US$ hints at a possible one-off adjustment in Pak Rupee, as well. PKR in FY12 has so far depreciated by 4 per cent inline with our full year estimate. Further depreciation of PKR poses another upside to earnings forecasts. As per our estimates, 1 rupee depreciation against US$ is likely to improve sector’s earnings by 1.5-2 per cent. The government’s intention of offloading 2.5 per cent of its stake in PPL has led to the recent drag in the stock’s price performance. However, it has opened up attractive entry opportunities, he added.
CORPORATE CORNER bok arranges training programme for management trainees
ISLaMaBaD: Bank of Khyber (BoK) is committed to invest in the Human Resource Development, by providing good training to their employees in respective fields which will enable them to cater the present day financial sector requirements. This was stated by Mr Bilal Mustafa Managing Director BoK, while speaking at the inauguration of Basic Training Programme, for the 4th batch of newly selected Management Trainee Officers (MTO’s) at national institute of Banking Finance (niBAF), islamabad. PRESS RELEASE
Samsung Galaxy y Smartphone launches online campaign KaraChI: Samsung Electronics Co Ltd launched Samsung S5360 Galaxy – Y, an innovative, sleek, compact and affordable Android Smartphone for the youth and to enrich the enthusiasm for GalaxyY, it has now launched a thrilling online campaign, full of exciting activities to keep the fans hookedon to the Samsung Pakistan Facebook fan page from 17th november till 31st December, 2011. Through the campaign, participants can raise their chances to win a free Samsung Galaxy-Y Smartphone, along with lots of other valuable prizes and surprise gifts. PRESS RELEASE
Dawlance offers limited time discount of its product range KaraChI: Dawlance has extended relief to the consumers by offering discounts of up to 12 per cent on its product range for a limited time period. The discount applies to a wide variety of Dawlance
products including refrigerators, washing machines and microwave ovens. By offering discounts of up to 12 per cent on its product range, Dawlance wants to make its products more affordable for a larger group of consumers to help them benefit from the convenience and comfort that is part and parcel of all Dawlance products. PRESS RELEASE
ufone makes its presence felt at the uaE Expo 2011
Qarshi university gets lauded for introducing new degree Lahore: Pakistan Tibbi Conference, Lahore Division, and the Department of Eastern Medicine, Qarshi University, recently held a seminar at Al-Hamra Hall to introduce Bachelor of Eastern Medicine and Surgery (BEMS) degree programme. The speakers at the occasion informed the participants that the University has started functioning and offering admission in BEMS, a five- year degree programme. it has also won recognition from HEC. PRESS RELEASE
Pakistan and thailand celebrate 60th anniversary of their relations ISLaMaBaD: Consulate of the United Arab Emirates recently organised UAE Expo 2011 at Expo Centre, Karachi where Ufone was one of the gold sponsors for the event. To further reiterate its stronghold in the telecom industry, Ufone’s stall displayed a variety of Ufone BlackBerry handsets and promoted services. Services such as Utrack, business SMS and iDD offer UAE were showcased to display their unique and impressive options to the visitors. PRESS RELEASE
PtCl offers unbeatable broadband options for students ISLaMaBaD: To continue helping Pakistan’s students in reaping the benefits of broadband internet connectivity, Pakistan Telecommunication Company Ltd (PTCL) has launched a new Broadband Student Bundle Package with free voice minutes included. in addition to PTCL’s existing Broadband Student Basic Package, the new Student Bundle Package with PSTn includes 1Mbps broadband connectivity with unlimited downloads, 150 free voice minutes and buzz entertainment portal, all just for flat Rs999 per month. PRESS RELEASE
ISLaMaBaD: To mark the 60th anniversary of the establishment of diplomatic relations between islamic Republic of Pakistan and Kingdom of Thailand, an unveiling ceremony of the issuance of the commemorative postages stamp was held in the Auditorium of Postal Staff College, islamabad. The unveiling ceremony was attended by all Postal Officers of BPS-17 and above posted in Rawalpindi and islamabad. Secretary Postal Services Raja Muhammad ikram-ul-Haq was the Chief Guest and Thailand Ambassador in Pakistan was the guest of honour. PRESS RELEASE
DG khan: Governor Punjab Sardar Latif khosa distributing cheques under Benazir Income Support Programme Waseela-e-haq. Director General Punjab Shahid Aslam Mohar is also present. PRESS RELEASE
kARAchI: Mr Muhammad Tariq Javed of Lahore, receiving his Mega Lucky Draw Prize, a Suzuki Mehran, in an impressive ceremony that concluded the haier Pakistan Washing Machine Promotion campaign. PRESS RELEASE
Mobilink organises Mini Special Olympics Lahore: Mobilink Foundation celebrated the Universal Day of Special Persons by supporting the organisation of a Mini Special Olympics for special students in Faisalabad. The event was organised in collaboration with Tanzeem-alLissan, a voluntary organization, working for the special children in Faisalabad, with over 500 special student athletes participating in a variety of competitive games. Mobilink Foundation Torchbearers helped to organise the event, distributed prizes amongst the winners and spent the day with the participants, encouraging them to never give up and to always hold onto their dreams. PRESS RELEASE
kARAchI: Prominent businessman Mr Noman A Lakhani hosted a dinner in honour of British Deputy high commissioner Mr Francis campbell, and consul General of Turkey Mr Murat M Onart, at his residence. Picture shows consul General of Switzerland, with host and other guests. PRESS RELEASE
Profit for e-paper_Layout 1 12/13/2011 11:29 PM Page 6
Wednesday, 14 December, 2011
06 mArkets
top 10 sectors
24% 09% 35% 10% 08%
Chemicals
01% 07% 02% 03% 01%
General Industrials
Construction & Materials Electricity Banks
Fixed Line Telecommunication
Oil & Gas
Financial Services
Personal Goods
Equity Investment Instruments
STOCK MARKET HIGHLIGHTS Index 11278.02 2826.19 2594.33
KSE-100 LSE-25 ISE-10
Change -199.10 -67.23 -30.67
Volume 34,828,439 862,885 42,195
Market Value 1,924,109,095 28,187,797 1,435,320
top 5 perFormers sector wise
Major Gainers Company UniLever Pak Ltd. AL-Ghazi Tractors Colgate Palmolive National Refinery Thal Ltd
Open 5385.04 183.25 630.64 240.08 79.08
High 5465.00 192.41 650.00 244.68 81.90
Low 5340.02 184.00 625.00 237.26 79.00
Close 5416.58 192.38 634.87 241.96 80.95
Change Turnover 31.54 8 9.13 6,130 4.23 155 1.88 91,791 1.87 5,776
2516.52 388.12 157.69 157.46 87.90
2455.00 391.15 158.60 159.00 90.90
2391.03 379.50 151.50 152.60 83.51
2396.79 380.24 152.17 152.93 83.51
-119.73 -7.88 -5.52 -4.53 -4.39
128 61,286 2,894,848 516,839 7,574
Volume Leaders Fatima Fert.Co. Engro Corp Jah.Sidd. Co. Fauji Fertilizer Lotte PakPTA
23.57 107.84 5.19 157.69 9.56
23.57 108.60 5.25 158.60 9.65
22.40 104.00 4.93 151.50 9.16
22.40 105.09 4.98 152.17 9.27
-1.17 -2.75 -0.21 -5.52 -0.29
5,751,271 4,445,567 4,263,358 2,894,848 2,387,086
Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)
Per Tola (PKR) 55,743.00 51,608.00 1,051.00 1025.00
Per 10 Gm (PKR) 47,842.00 44,245.00 902.00 880.00
Per Ounce US$ 1,669.00 – 35.05 –
HiGH
lOW CuRREnt
CHanGE
vOluME
419.00 116.90 21.51 6.95 91.25
410.55 112.50 20.01 6.85 88.25
412.00 113.10 21.00 6.87 90.02
0.71 -1.95 0.04 -0.03 -0.35
36,564 463,796 41 113,350 16,930
17.50 28.85 5.00 158.35 34.70
17.50 28.25 5.00 153.00 33.90
17.50 28.40 5.00 157.80 33.90
0.51 -0.14 -0.81 2.80 -0.29
500 386,065 3,000 4,858 37,823
Oil and Gas Attock Petroleum Attock Refinery Burshane LPG Byco Petroleum Mari Gas Co.
411.29 115.05 20.96 6.90 90.37
Agritech Limited Arif Habib Co SD Bawany Air Products Clariant Pakistan Dawood Hercules
16.99 28.54 5.81 155.00 34.19
19.31 1.20 8.40 29.07 10.01
20.00 1.33 8.50 29.53 10.49
19.00 1.15 8.35 29.00 9.80
19.79 1.25 8.35 29.25 9.80
0.48 0.05 -0.05 0.18 -0.21
2.11 51.93 14.30 7.52 20.22
28.56 3.42 40.17 7.70 85.83
Ados Pakistan AL-Ghazi Tractors AL-Khair Gadoon Bolan Casting Dewan Auto Engg
89.1510 138.9508 1.1449 117.5278
5.25 174.55 4.51 28.50 0.75
2.30 52.79 14.00 7.68 20.53
2.00 50.06 14.00 7.35 20.11
2.30 51.65 14.00 7.64 20.30
0.19 -0.28 -0.30 0.12 0.08
370,668 3,527 95 1,173 1,564,009
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
International Oil Price WTI Crude Oil
$98.49
Sell 89.40 117.66 139.02 1.1413 87.86 11.50 24.29 23.77 91.30
Brent Crude Oil
$107.26
Atlas Battery Ltd. Atlas Honda Ltd. Dewan Motors General Tyre Ghandhara Nissan
167.13 117.00 2.13 17.00 2.33
29.00 3.50 40.75 7.70 89.51
28.60 3.35 40.00 7.60 86.10
28.85 3.35 40.75 7.70 86.10
0.29 -0.07 0.58 0.00 0.27
6,065 8,506 1,095 890 2,553
vOluME
Adam Sugar AL-Noor Suger Mills Chashma Sugar Mills Colony Sugar Mills Dewan Sugar
17.00 52.34 7.99 1.76 2.11
16.02 54.95 8.30 1.80 2.15
5.99 183.27 5.51 28.01 0.78
5.30 177.99 5.50 28.00 0.78
169.00 122.00 2.20 18.00 2.97
166.60 121.90 2.10 17.00 2.60
110.49 111.43 150.02 150.00
Diamond Ind. Hala Enterprise Pak Elektron Ltd. Singer Pakistan Tariq Glass Ind.
8.20 6.01 4.06 14.07 8.30
9.18 6.90 4.38 15.06 8.50
(Colony) Thal Ali Asghar Textile Amtex Limited Artistic Denim Mills Ashfaq Textile
1.40 0.55 1.30 21.00 8.96
1.40 0.46 1.33 21.00 9.00
AHCL-DEC ANL-DEC ATRL-DEC BAFL-DEC BAHL-DEC
28.55 3.34 115.75 11.85 29.02
28.95 3.60 117.30 11.90 29.00
5.30 183.06 5.51 28.01 0.78
167.00 122.00 2.20 17.25 2.60
109.00 111.18 145.05 145.58
Abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. Highnoon (Lab) IBL HealthCare
101.11 74.10 66.12 29.60 12.60
102.00 76.80 66.25 29.75 12.99
0.05 8.51 1.00 -0.49 0.03
105 5,018 4,492 639 173
-0.13 5.00 0.07 0.25 0.27
923 100 602 6,734 3,003
0.69 -4.44
1,170 203
SyMbOl
OPEn
HiGH
lOW CuRREnt
CHanGE
vOluME
Non Life Insurance 16.00 52.80 7.97 1.80 2.10
16.00 52.80 8.30 1.80 2.10
-1.00 0.46 0.31 0.04 -0.01
7,138 1,902 49,195 1 296
9.18 6.90 3.94 13.07 8.31
9.18 6.90 3.94 15.06 8.39
0.98 0.89 -0.12 0.99 0.09
1 50 389,302 501 11,224
1.11 0.41 1.20 21.00 8.11
1.40 0.41 1.23 21.00 9.00
0.00 -0.14 -0.07 0.00 0.04
8,000 2,000 30,238 400 550
28.40 3.35 113.00 11.75 29.00
28.76 3.35 113.50 11.75 29.00
0.21 0.01 -2.25 -0.10 -0.02
53,500 82,500 240,000 26,500 500
101.00 75.50 65.12 29.30 12.99
-0.11 1.40 -1.00 -0.30 0.39
227 21 1,593 1,151 1,014
101.00 75.50 65.11 29.30 12.60
Adamjee Ins Ask.Gen.Insurance Atlas Insurance Century Insurance Cres.Star Insurance
42.99 8.50 36.00 6.94 2.97
43.45 8.79 36.40 6.94 2.97
42.25 7.87 35.40 6.50 2.00
42.64 7.87 36.40 6.94 2.97
-0.35 -0.63 0.40 0.00 0.00
8,309 2,990 215 400 501
13.50 1.40 65.53
14.50 1.40 65.53
0.00 0.00 0.00
2 1 157
0.30 16.43 15.00 0.80 2.70
-0.03 0.12 0.29 -0.02 0.16
35,272 402 4,491 5,998 31,436
Life Insurance American Life East West Life Assur EFU Life Assur
14.50 1.40 65.53
14.50 2.34 68.80
Financial Services AMZ Ventures A Arif Habib Investmen Arif Habib Ltd. Dawood Equities F. Nat.Equities
0.33 16.31 14.71 0.82 2.54
0.36 16.43 15.10 1.00 2.87
0.27 15.50 14.70 0.80 2.35
Equity Investment Instruments 1st.Fid.Leasing Mod AL-Noor Modar Elite Cap.Mod Equity Modaraba F. Dawood Mut.Fund
1.56 3.99 2.20 0.85 1.85
1.60 4.10 2.20 1.33 1.85
1.54 4.10 2.20 0.87 1.85
1.60 4.10 2.20 1.25 1.85
0.04 0.11 0.00 0.40 0.00
1,041 5,000 22,335 25,109 35,000
Miscellaneous Century Paper
13.50
13.75
13.00
13.03
-0.47
9,621
Pak Paper Prod.
32.05
31.50
31.50
31.50
-0.55
592
Security Paper
36.16
36.00
35.25
35.46
-0.70
6,200
P.N.S.C.
13.76
13.27
12.82
12.99
-0.77
17,468
Pak.Int.Con. SD
66.73
68.50
65.00
65.47
-1.26
1,444
TRG Pakistan Ltd.
1.32
1.40
1.28
1.30
-0.02
567,725
Murree Brewery
65.25
66.99
65.25
66.37
1.12
1,066
Shezan Inter.
115.00 115.00
115.00 115.00
0.00
10
Shifa Int.Hospitals
29.39
29.45
28.00
29.00
-0.39
2,602
Hum Network Ltd.
15.96
16.00
15.21
15.75
-0.21
4,500
P.I.A.C.(A)
1.93
2.00
1.71
1.84
-0.09
9,408
Sui North Gas
16.70
16.94
16.54
16.68
-0.02
5,408
Sui South Gas
17.55
17.90
16.90
16.94
-0.61
133,972
Banks
American Life
14.75
15.50
14.75
14.86
0.11
2,100
Allied Bank Ltd Askari Bank B.O.Punjab Bank Al-Falah Bank AL-Habib
East West Life Assur
1.70
1.70
1.10
1.70
0.00
300
AKD Capital Ltd.
26.16
26.16
24.86
26.16
0.00
59
Pace (Pak) Ltd.
1.50
1.45
1.30
1.35
-0.15
620,873
Netsol Technologies
9.80
9.96
9.70
9.73
-0.07
40,249
Fixed Line Telecommunication
Beverages Murree Brewery Co. Shezan Int’l
CHanGE
Pharma and Bio Tech
Automobile and Parts Buy 88.60 116.39 137.62 1.1332 85.64 11.25 24.12 23.64 88.77
lOW CuRREnt
Future Contracts
General Industrials Cherat Packaging ECOPACK Ltd Ghani Glass Ltd MACPAC Films Packages Limited
HiGH
Personal Goods 615 7,365 2,122 6,422 2
Construction and Materials Al-Abbas Cement Attock Cement Berger Paints Cherat Cement D.G.K.Cement
OPEn
Household Goods
Industrial metals and Mining Crescent Steel Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.
SyMbOl
Food Producers
Industrial Engineering
Interbank Rates US Dollar UK Pound Japanese Yen Euro
OPEn
Chemicals
Major Losers Nestle PakistanXD Millat Tractors Ltd. Fauji FertilizerXD Oil & GasXD Packages Limited
SyMbOl
P.T.C.L.A Pak Datacom Ltd Telecard Limited Wateen Telecom Ltd WorldCall Telecom
10.24 36.49 0.81 1.80 1.00
10.48 36.25 0.88 1.99 1.04
10.08 35.95 0.78 1.77 0.91
10.15 36.25 0.82 1.80 0.93
-0.09 -0.24 0.01 0.00 -0.07
1,783,870 2,075 13,572 156,283 1,076,370
Electricity Altern Energy Genertech Hub Power Co. Japan Power K.E.S.C.
6.25 0.37 36.45 0.60 1.56
58.53 10.01 5.33 11.75 28.75
6.00 0.42 36.70 0.70 1.68
59.49 10.39 5.47 11.99 29.40
6.00 0.31 36.45 0.57 1.50
58.50 10.15 5.25 11.56 28.95
6.00 0.31 36.50 0.60 1.57
59.00 10.27 5.31 11.80 29.00
-0.25 -0.06 0.05 0.00 0.01
0.47 0.26 -0.02 0.05 0.25
1,186 16,006 901,477 36,483 488,458
16,287 122,208 281,491 1,265,356 157,733
mutuAl Funds Fund
Offer
Repurchase
Alfalah GHP Cash Fund Askari Islamic Asset Allocation Fund Askari Islamic Income Fund Askari Sovereign Cash Fund Atlas Income Fund Atlas Islamic Income Fund Atlas Money Market Fund Atlas Stock Market Fund Crosby Dragon Fund
501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800
501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
nav 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
Fund
Offer
Repurchase
HBL Money Market Fund HBL Multi Asset Fund HBL Stock Fund IGI Income Fund IGI Stock Fund JS Principal Secure Fund I JS Principal Secure Fund II KASB Cash Fund
100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000
100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000
nav 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087
Profit for e-paper_Layout 1 12/13/2011 11:29 PM Page 7
Wednesday, 14 December, 2011
it is now time to take a quantum leap in terms of outreach to people and in terms of financial inclusion, and pursue a financial inclusion agenda for Pakistan based on access to the majority
news
07
President khushhali bank, Ghalib nishtar
700,000 tax thieves
to be clawed this fiscal year: Dr Sheikh g g g
Economy is now on path to recovery: Dr Sheikh Fiscal deficit major threat for economy Eight per cent GDP growth required to absorb 3.5 per cent growth in labour force ISLAMABAD
T
STAFF REPORT
ERMinG the poor tax collection a historic failure of governance in the country, Finance Minister Abdul Hafeez Shaikh said on Tuesday that government was focused on bringing identified 700,000 tax dodgers into the tax net during current fiscal year. He said this while speaking at the inaugural session of the three day conference, “Economic Growth and Development: new Directions” of Pakistan Society of Development Economists. The minister said notices to 200,000 tax dodgers have been sent
while the remaining will be under tax net by end of the year. He said tax reform process was showing improvement as there was a significant increase in tax collection as compared to last fiscal year. He said refunds issue was streamlined and during first five months of current fiscal year Rs52 billion in refund have been released as compared to Rs27 billion during corresponding period last fiscal. He claimed there was no bribery in getting refunds as it was being done from a centrally managed office and if someone had been forced to pay bribe, he should contact him directly. He termed fiscal deficit of over six per cent of GDP for last four financial years a
Petrol consumption rises 34 per cent ISLAMABAD
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STAFFREPORT
ETROL consumption in the country swelled by 34 per cent in november owing the upsurge in gas load-shedding to the Compressed natural Gas (CnG) stations in the country. Central Chairman of All Pakistan CnG Association (APCnGA) Ghiyas Abdullah Paracha in a statement issued said breakup on import data indicates High Speed Diesel (HSD) volumes’ recorded bump of 13 per cent. APCnGA believes the increase is mainly due to increased gas load shedding to CnG sector as compared to last year. He said that while warning the government if natural gas supply to CnG sector is not restored immediately, the country will have to compromise on restraining its import bill. APCnGA said the prevalent gas curtailment to CnG stations petrol sales continue to show startling results. During the month of July, he said, petrol sales touched record high of 250k tonnes up by a massive 15.5 per cent from the previous high of 217k tones, recorded last month. He said government was saving billions of rupees annually on petroleum, due to the usage of CnG. However, the gas load
shedding to CnG will further escalate the burden on nation exchequer, he added. The sales are a massive 33.4 per cent up from last year sales, while product contribution in the sales mix has increased to 14 per cent as against 10 per cent in the same period last year. Paracha said, ‘Pakistan’s oil import bill has witnessed a phenomenal rise of 53.9 per cent in the first four months (Jul-Oct) of the current financial year as the total oil import bill has reached to a level of US$5.013 billion against US$3.257 billion in fourth quarters.’ He was of the view that a surge in petroleum products clearly identifies a high demand of petroleum products in the domestic market which was not being fulfilled by the local refinery’s capacity. He said prevailing winters will drastically increase domestic demand for natural gas for heating, while economy’s power generation is currently heavily reliant on oil. Further, substitution of oil with gas will dent forex reserves of the country and increase already mounted circular debt in the energy chain. Simultaneously, further load shedding at CnG stations will give rise to protests by CnG pumps and public.
major threat to the national economy. increased cost of higher security spending, rise in international oil prices and losses of public sector enterprises were identified by him as major reasons for higher fiscal deficit. The minister said role of private sector is very important in putting economy back on track. He said government is trying to improve regulatory mechanism to make it more competitive and will be facilitating private sector to enhance their investment and production. Earlier, Vice Chancellor, Pakistan institute of Development Economics and President of Pakistan Society of Development Economists Dr Rashid Amjad said in his speech that despite many setbacks, Pakistan’s econ-
omy has shown great resilience, which is evident from the fact that it has maintained respectable growth rate for over 60 years. it has shown the ability to bounce back to its trend growth rate despite many setbacks. He said Pakistan’s economy needs new direction, as projected labour force growth is 3.5 per cent for the next few decades and the country needs a GDP growth of eight percent and more to absorb it. He suggested modernising the irrigation system to broaden the economic base. in the Mahbub Ul Haq memorial lecture, entitled “Arguing inequality: Reflections on Societal Crisis”, Ashwani Saith, Dean, international institute of Social Studies,
Remittances hit $5.2b mark kArAChI
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ISMAIL DILAWAR
HE overseas Pakistanis sent back home over $5.239 billion during first five months, July– november 2011, of the current fiscal year, central bank has reported. This, the State Bank said, shows an ‘impressive’ growth of 18.33 per cent or in monetary terms $811.69 million compared to $4.428 billion the country received during the corresponding period during last financial year, July-november 2010. Dollar inflows on account of remittances received from across the globe witnessed an upward trend during period under review, SBP said. inflow of remittances in July-november 2011 from Saudi Arabia, UAE, USA, GCC (Gulf Cooperation Council) countries, including Bahrain, Kuwait, Qatar and Oman, UK, and EU countries amounted, respectively, to $1.364 billion, $1.167 billion, $975.12 million, $600.04 million, $594.30 million and $160.26 million. The same months last year had seen an inflow of $935.76 million, $1.045 billion, $841.32 million, $530.30 million, $496.09 million and $147.57 million from these destinations. The remittances received from norway, Switzerland, Australia, Canada, Japan and other countries were counted at $378.66 million as against $431.93 million received during the first five months of FY11. The monthly average remittances for the July-november period comes out to $1.048 billion compared to $885.66 million during the corresponding period of last fiscal year. This figure marks an upsurge of 18.33 per cent over last year. During last month in november, the overseas Pakistanis sent back home
$924.92 million, down 0.21 per cent, when compared to $926.89 million received during the same month last year. The said month saw remittance inflows from Saudi Arabia, UAE, USA, GCC countries, UK, and EU countries accumulating to $218.98 million, $204.13 million, $179.77 million, $113.89 million, $107.38 million and $30.45 million, respectively. This was against the last year’s respective inflows of $171.45 million, $225.75 million, $175.05 million, $113.39 million, $102.85 million and $30.50 million. Remittances received from norway, Switzerland, Australia, Canada, Japan and other countries during the month of november were counted as $70.32 million compared to $107.9 million of the last corresponding period. The analysts view remittances as the sole indicator on the current account list setting in the green zone with all others deteriorating, thus pushing the cashstrapped country deep into financial crisis. With foreign financing fast zeroing due to islamabad’s ongoing strategodiplomatic tussle with its Western allies plus its failure to take the iMF-backed economic reforms, the country’s current account deficit widened during July-Oct FY12 to an unpalatable level of $1.55 billion against $541 million of the corresponding period in FY11. Major stimulus behind this gap is believed to be trade deficit that for the review period accumulated to $ 5.281 billion, up 40 per cent compared to FY11’s $ 3.773 billion. While economic managers appear to be unwary of the foreseeable alarming situation ahead, the economic observers press the need for an economic contingency plan to cope with the challenges the crises-hit country is fast heading to face on the economic front.
challenged various viewpoints that have been advanced by politicians, economists, and development practitioners in support of inequality as a preferred social outcome. The presenter questioned the instrumental defense of inequality as being the grease to the wheels of commerce by highlighting lessons learned from recent financial crisis which was an outcome of the greed of the investment bankers. Moreover, Ashwani Saith also pointed preoccupation of some development policies on the alleviation of poverty rather than on ensuring equity. Later in the day papers were presented on growth and entrepreneurship, exchange rate dynamics, and environmental and energy.
Committee demands review of SECP bills ISLAMABAD JALALUDDIN RUMI
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ATiOnAL Assembly’s standing committee on finance directed Securities and Exchange Commission of Pakistan (SECP) and ministry of law and justice to review and remove the overlapped articles in proposed draft of Securities Bill, 2010 and SECP Bill in order to start legislation process in the committee meeting next week. Committee meeting chaired by committee chairperson Fauzia Wahab, directed representatives of ministry of law and SECP to complete the review process of proposed legislations after which input will be invited from stakeholders of all three Stock Exchanges on the proposed Securities Bill. Committee also demanded a report on a question as to why proposed laws are lapsed in Senate causing huge loss to the government treasury. Securities Bill and SECP bill are likely to be tabled in the joint session of the parliament. SECP Chairman Muhammad Ali explained the committee that both legislations are for two different purposes as Securities Bill would help in regulation of stock market alone and SECP Bill would enable SECP to improve it’s governance as well as other areas under it’s regulatory functions. SECP Chairman while explaining major deficiencies in present legislation, pointed out that present law does not provide and explain duties of stock exchanges, system audit of stock exchanges, emergency powers of commission, regulation of clearing houses, establishment criteria for clearing houses, duties of clearing houses and depository companies, handling of investors complaints, standards of business conduct, financial resources of business persons, powers of SECP interventions and powers to call for information.