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BUSINESS Thursday, 21 February, 2013
OGDCL announces dividend ISLAMABAD: The Board of Directors of Oil & Gas Development Company Limited (OGDCL) in its meeting held on 20th February, 2013 at Islamabad announced the financial results for the six months ended 31st December, 2012. The Company’s net sales revenue increased to Rs 110.626 billion compared to Rs 88.680 billion in the corresponding period in 2011. Profit after tax increased to Rs 49.227 billion in the period under review against Rs 41.573 billion in the same period of last year and earnings per share has increased to Rs 11.45 as against Rs 9.67 in the same period of year 2011. The Board of Directors announced the second interim cash divided for the period ended December 31,2012 at Rs 2.00 per share i.e. 20 percent. The above entitlement will be paid to the shareholders whose name will appear in the Register of Members on Monday, April 15, 2013. The Share Transfer Books of the Company will be closed from Tuesday, April 16, 2013 to Tuesday, April 23, 2013 (both days inclusive). Transfer received at the Share Registrar Office at the close of business on April 15, 2013 will be treated in time for the purpose of above entitlement to the transferees. PR
FPCCI seeks budget proposals from affiliated chambers LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), an apex body of chambers in the country, has sought concrete proposals for the forthcoming national annual budget 2013-2014 from all affiliated chambers and trade bodies across the country. FPCCI President Fazal Qadir Sherani will hold a series of meetings at its regional offices with the presidents of affiliated chambers, registered trade bodies and associations to arrive at viable proposals and future a strategy to be taken up with federal finance minister and chairman, Federal Board of Revenue. The affiliated chambers have been directed to convene specific meetings to finalise their respective proposals which must reach the federation not later than the first week of March. The purpose of this exercise is to have a direct one-on-one interaction with business leaders to discuss budget proposals for the next fiscal year and sort out trade issues. FPCCI spokesman Iftikhar Ali Malik, who is also co-chairman Businessmen Panel and former president FPCCI said on Wednesday that FPCCI will finalise its budget proposals for the next fiscal year in the light of suggestions of the affiliated chambers. APP
Pakistan-Iran gas pipeline project is a ‘leap forward’. – Prime Minister Raja Pervaiz Ashraf
‘ChInese InvesTmenT In GwaDar PureLy eCOnOmIC’ ISLAMABAD
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STAFF REPORT
CHINESE investment in the Gwadar port is purely economic,” said Hu Xijin, Editor-in-Chief of a leading Chinese daily, the Global Times, on Wednesday. He was speaking at a roundtable organised by the Institute of Regional Studies (IRS) on Pakistan-China relations with the editorial staff of Global Times. He added that, “China will make all necessary investments in the port to make it fully operational to support Chinese trade with West Asia, especially the trade between western part of China and that part of the world”. Hu Xijin said China considers Pakistan an important friendly neighboring country and that Chinese investors want to invest in projects in Pakistan. He added, however, that some Chinese investors are apprehensive about the security situation in Pakistan. He said China will keep supporting the reconstruction of Afghanistan post2014. He also said China does not want to undertake projects in any country that are opposed by the host communities. Responding to a question about the imbalance in trade of China with Pakistan, Hu Xijin said China is a free market economy where the government cannot dictate the companies to import products from other countries if they are not market competitive. Ashraf Azim, President of IRS, pointed
out that Indian concerns about the use of Gwadar port as a naval base were completely baseless. He termed the transfer of the port operations to China Overseas Port Holdings Limited a great achievement of
the current government. He emphasised the need for business and cultural links between Pakistan and China alongside cordial government-to-government relations. Other participants of the roundtable
Banks lend Rs 2.8b under SBP’s CGS with 1 to 3% infection ratio KARACHI STAFF REPORT
The central bank’s (SBP) Credit Guarantee Scheme (CGS) has helped small enterprises and farmers to access bank financing worth Rs 2.83 billion over the last 18 months. What the State Bank feels good about the scheme is the nominal infection ratio, ranging from 1.07 to 2.91 percent, reported by the participating banks. According to the State Bank, the CGS has facilitated financing in 105 districts across the country with 85 percent of loans provided to previously un- or under-served clients in rural areas, of which 81 percent were subsistence farmers. Similarly, 91 percent of the loans under the scheme were provided to small businesses with less than five employees,
of which 90 percent were sole proprietors. Under the CGS, the banks also focused on serving the lower-end of the commercial banking market through smaller loans with an average loan size of Rs 390,000 for agriculture and Rs 2.1 million for small enterprises. Based on client needs, the loan tenor under the CGS ranged from less than one year to three years. The scheme through its support to previously un-banked small rural enterprises is likely to further enhance economic opportunities and increase employment in the country’s rural areas, the central bank said. During its annual review of the scheme, the SBP’s Technical Committee observed that despite the extensive geographic spread and a focus on underbanked segments, the participating banks
demonstrated prudent lending practices reflected in an infection ratio of only 2.91 percent for agriculture and 1.07 percent for small enterprise loan portfolios that are much lower than the industry averages. The CGS is monitored by the Technical Committee drawing membership from the UK’s Department for International Development (DFID), SBP and the Pakistan Banks Association (PBA). The scheme was introduced by SBP in 2010 with the financial assistance of DFID under the Financial Inclusion Program (FIP) and the Government of Pakistan to increase the flow of financing to small and rural enterprises that have limited access to financial services from the formal financial system. The scheme has so far supported nine banks, including big five banks, which were selected after due screening by the committee.
discussion included Liu Yang, Senior Editor at the Global Times; Hu Jia, Editor at the Global Times; Li Ying, Editor at the Global Times English Edition and researchers from IRS.
Zardari signs Trade Organisation Bill, 2013 ISLAMABAD: President Asif Ali Zardari on Wednesday signed Trade Organisation Bill, 2013 into law, in a ceremony held at Aiwan-e-Sadr. The signing ceremony was attended by Finance Minister Salim H Mandviwala, Minister for Law Justice and Parliamentary Affairs Farooq H Naek, some other federal ministers, State Bank of Pakistan governor and other high ranking officials The Trade Organisation Bill, 2013 was passed by the National Assembly on 19th November last year and by the Senate on 6th February. Presidential spokesperson Senator Farhatullah Babar said the bill is aimed at providing registration and regulation of trade organisations to ensure appropriate representation of all genders and business sectors at all levels in trade organisations as they play a significant role in developing policy framework for improving business environment and economic growth. INP
Politicians challenged to secure Pakistan’s global economic future KARACHI STAFF REPORT
Pakistan has the potential to become a global economic player. It’s a powerful vision which can be realised if there is a focus on economic growth and implementing the vital reforms needed to stimulate and underpin growth, a representative for the UK Government signalled today. Speaking at the Karachi School of Business and Leadership, Mark Lowcock, the UK government’s senior most aid official, told business leaders and students that countries succeeding in today’s global race are those reforming the fastest to generate growth and reduce poverty. Lowcock said, “Pakistan has everything it takes to be a successful, thriving, prosperous Islamic democracy.” “If you develop a clear and shared vision, sustain a long term commitment to travelling the long road of reform, and re-
fuse to be deterred by the problems that will inevitably arise, then you can transform your country within a generation,” he stated Citing examples from across Asia and Africa, Lowcock pressed that Pakistan’s stake in the global economy, and future investment potential, could be transformed. It has enormous potential for trade, he added. Population dynamics mean that over the coming decades it could reap a demographic dividend, if the economy develops in a way that creates jobs for all young people, he said. Lowcock stressed elections as an important watershed in embedding an inclusive political system, emphasised the importance of greater transparency in public operations, and highlighted the need to broaden the national dialogue on economic reform. “Pakistan cannot sustain high rates of economic growth without a sufficient, reliable supply of energy…. The sector needs
to be put on a more commercial footing, including a regulatory and tariff structure that is attractive to investors,” Lowcock said. “A tax system that collects less than 10% of GDP is unsustainable for any modern country. Without agreement and tangible progress on broader and fairer taxation, Pakistan will be unable to invest in a more prosperous future,” he said further. Lowcock said Pakistan needs to invest in its best asset, which he said were its own people, especially in health and education, to build human capital. It is also critical to promote women’s participation in the economy, he said. “Pakistan must take steps to harness private sector dynamism in boosting investment and growth. Inefficient public sector enterprises play too large a role in the economy. They should be reformed or privatised. Bureaucratic barriers to private business need to be reduced and
property rights better protected,” he added. He said there are enormous benefits to Pakistan from resuming its historical status as the regional hub between central Asia and south Asia with strong links to the Middle East. This, he said, involves reforming the trade regime to make it more
open to the world and providing the infrastructure necessary for an important trading hub. Pakistan could potentially become the UK’s largest development programme globally. DFID has made a commitment to expand its support here, potentially reaching 200 billion rupees over 4 years.
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The US should make trade the highway to future relationship with Pakistan. – Sherry Rehman
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BUSINESS B Thursday, 21 February, 2013
Pama flays CCP for flawed report on automobile industry KARACHI STAFF REPORT
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HE Competition Commission of Pakistan’s (CCP) report of January 2013, on automobile industry, is arbitrary, unfair and distressful for the automotive sector, said Pakistan Automotive Manufacturers Association (PAMA) DG Abdul Waheed in an official response to the CCP. While preparing the report, CCP did not realise that the figures it incorporated in the report would unduly damage the industry which contributes $ 3.6billion to the GDP and churns out $ 0.82 billion in revenues with an investment of $ 1.09 billion and direct employment to 215,000 persons, he said. Waheed said the “auto Industry leads the large scale manufacturing of the country, hugely contributing to the country’s GDP and the revenues while bringing in long term local and foreign investments generating widespread employment opportunities and opening up avenues for the country to have high technology and attain modern systems from the outside industrial world,” he said. He was grieved that notwith-
standing the fact that the CCP itself did not even own its contents, given the disclaimer printed on the report, yet it chose to put it on its official website for public viewing that would result in ultimate disrepute to the industry. Waheed said that the association was not taken into confidence while the report in question was being prepared and has expressed his dismay over the CCP’s report’s subjective findings and recommendations which, in his view, are highly damaging for investment and business environment of the country. In a letter to CCP Chairperson, Waheed said the report in question was flawed as
it was not based on competition issues arising out from intra local automobile players. Instead, it drifts to draw a parallel between local industry with the illegal business of trader mafia of used cars whose primary source of activity emanate from illegal purchase of documents from an overseas Pakistani. Such trading activity of used cars, which by no mean is comparable to brand new cars that are manufactured in Pakistan by the established industry with standardised operations and is also documented with its accounts published and shares traded in bourses of the country. In other words a car used for over 5 years abroad and imported in the country by an apparently illegal importer who does not keep
any document for official scrutiny has been, unfortunately, taken as a basis for determining the competition issues by the CCP. Such a report coming from a serious agency like the CCP is tantamount to promoting the trader mafia without realising the fact that it would irreversibly damage the industry and would result in shutting down the already traumatized downstream vending industry making thousands jobless. Nowhere in the world has a country invited foreign investment in manufacturing goods locally and, at the same time, opening up its market for imports of used goods of same category as suggested by this report. It would have been worthwhile if CCP had suggested measures to promote competition by attracting more investments and promoting further expansion and introduction of more models by local OEMs in order to encourage competition. He regretted that concurrent official support to used car lobby over the years has not only impeded the natural growth of the industry but is also a reason for its downturn and redundancies and closure of companies in the recent past.
Major Gainers COMPANY Rafhan Maize Prod. Sunrays Textile Engro Corporation Packages Ltd. Shell Pakistan Ltd.
OPEN 3650.00 164.30 99.16 181.01 138.42
HIGH 3750.00 172.51 104.11 189.90 144.00
LOW 3700.00 172.51 101.30 178.00 138.50
CLOSE CHANGE 3750.00 100.00 172.51 8.21 103.43 4.27 185.23 4.22 141.34 2.92
TURNOVER 100 500 18,172,900 125,500 101,700
4800.01 485.00 10452.00 478.00 177.10
4800.00 468.86 10315.00 468.46 166.82
4800.01 468.86 10382.50 470.28 169.35
-154.99 -24.67 -17.50 -7.08 -6.24
60 2,900 400 186,700 9,900
22.85 8.23 18.49 104.11 5.70
21.64 7.78 17.95 101.30 4.86
21.89 7.84 18.31 103.43 5.15
-0.88 -0.21 0.30 4.27 -0.41
33,010,500 29,303,000 21,435,000 18,172,900 16,088,000
Major Losers Nestle Pakistan Ltd. Indus Dyeing SPOT UniLever Pak Pak Oilfields Philip Morris Pak.
4955.00 493.53 10400.00 477.36 175.59
Volume Leaders P.T.C.L.A Fauji Cement Jah.Sidd. Co. Engro Corporation Telecard Limited
22.77 8.05 18.01 99.16 5.56
Interbank Rates USD GBP JPY EURO
PKR 98.2110 PKR 152.1387 PKR 1.0494 PKR 131.1117
Forex US Dollar Australian Dollar Canadian Dollar UK Pound Sterling Euro Japanese Yen Saudi Riyal China Yuan UAE Dirham
BUY
SELL
99.2 102 97.7 154.3 132.2 1.055 26.4 13.5 26.95
99.5 103 98 155 132.7 1.11 26.7 14 27.2
CORPORATE CORNER
KARACHI: US Consul General Michael Dodman (C) celebrates Presidents’ Day with Governor of Sindh Dr Ishratul Ebad Khan and Chief Minister Syed Qaim Ali Shah. PR
more spending power today then it did five years ago”, Mr. Caizzone commented. Every year RB contributes over Rs 1.7 billion to the exchequer in the form of Customs Duty, Sales Tax, Federal Excise and other related taxes. It has a factory in Karachi and regional offices across Pakistan and provides employment to about 5000 families via its large sales and distribution network. RB Pakistan is a consumer goods company engaged in the manufacturing and marketing of leading brands like Dettol, Mortein, Veet, Harpic, Strepsils, Gaviscon, Cherry Blossom, Disprin and Durex. It is a subsidiary of Reckitt Benckiser Group Pic, a global consumers goods leader in Health, Hygiene and Home, having operations in over 60 countries and headquartered in the UK. PR
reckitt Benckiser celebrates 60 successful years in Pakistan KARACHI: Governor Sindh Dr. Ishrat Ul Ebad Khan has said dispite the challenging situation the city of Karachi have enough potential to prove it self amongst the lucrative city of the region, for investments. Multinational are planning to make Karachi as their regional hub. It is heartening to know that Reckitt Benckiser’s companies continued confidence and commitment to the country. “Investments are fundamental in stimulating the economy and creating more jobs”, Reckitt Benckiser Pakistan is celebrating over 60 successful years in Pakistan. On this occasion, the company has unveiled plans for another big investment in the form of a new manufacturing facility in Karachi. He was speaking as a chief guest on the ground breaking ceremony of the new factory at Governor House. Speaking at the ground breaking ceremony of the new factory, Mr. Salvatore Caizzone, Executive Vice President Reckitt Benckiser Group said “Our Company’s vision is a world where people are healthier and live better. This investment decision reaffirms our commitment to providing Pakistani consumers healthier lives and happier homes”. “We expect that this factory will create more jobs and will further cement RB Pakistan’s standing as a manufacturing and export hub within the RB world” Mr. Caizzone said. Reckitt Benckiser’s existing Mauripur plant already exports products to a number of countries around the world in the Middle East, Far East, Africa, Latin America, European Union and Australi”We have a very positive outlook for the country and Pakistan remains a very important market for Reckitt Benckiser. Pakistan is the world’s sixth largest nation, has a growing population that is very young and middle class that is visibly emerging and has
he said the country has a vast potential. He said, “We value the resilience of Pakistani business community and education sector and want to see them flourishing.” OBA Pakistan chapter head Dr. Amir Jafri said we are creating linkages between educational institutes and companies. He said that globally 8000 members of OBA were interested in business and working as ambassadors of the Oxford. Professor Peter Tufano Dean of Oxford’s said Business School in his video address shed light on the importance and role of the virtual community across the globe. Later while talking to media Ahmed Zulfiqar Siddiqui, General Secretary of the OBA Pakistan chapter said that the alumni would bridge the gap between business schools and companies. He said that it would provide a platform for guidance to fresh graduates. To a question, he said that the first meeting of the alumni would be summoned soon, which would formulate the framework, way forward and activities of the alumni. PR
samsung Galaxy grand big screen double the possibilities KARACHI: The Director UK trade and investment and British Deputy High Commissioner Francis Campbell, Oxford Business Alumni (OBA) hosted a dinner on the occasion of the launching of OBA at Deputy High Commission. Picture shows CG Turkey Murat M Onart, Consul of Italy Roberto Franceschinisn, Vice Consul of Switzerland Elizabeth Bucher, OBA Pakistan Chapter Head Dr Amir, Almas Jafri, with host and other guests. PR
Launch of Oxford Business alumni (OBa) KARACHI: British Deputy High Commissioner Karachi Francis Campbell formally announced the launch of Oxford Business Alumni (OBA) Pakistan at a graceful ceremony, held at the British Deputy High Commission. Besides crème de la crème of the megalopolis, a number of prominent educationists, diplomats, people belonging to academic and business circles and senior journalists attended the ceremony. Speaking on the occasion, Campbell introduced the OBA and said that it was a global network aimed to facilitate both academia and corporate sector, besides students of Oxford Business Schools. He shed light on the historical relations between Oxford and Pakistan and stated that oxford is one of the world’s oldest universities. Talking about the OBA and Pakistan,
KARACHI: In line with its commitment to provide the best in class and cutting edge technological devices, Samsung Electronics Co., Ltd, recently unveiled Samsung GALAXY Grand, the ideal Smartphone with a5” screen and multi window display for a truly enriched mobile experience. Packed with top of the line smart features and breakthrough sensory/touch/motion technology, the device combines an intuitive user interface with the latest Android operating system. The Samsung GALAXY Grand also has Dual SIM capabilities making it the first premium mobile phone with this feature. This remarkable Smartphone comes with 8MP camera with full HD video recording, convenient multitasking and sharing, rich applications and easy multimedia messaging. The GALAXY Grand is optimized for business executives on the go. The rotating 5” Multi Window display offers the convenience of magnified viewing. For everyday, users can expect the powerful performance characteristic of a Samsung smart-phone with the robust GALAXY Grand. Its vivid 5.0”WVGA TFT PLS display provides a clear and grand viewing experience while an8-megapixel camera with zero shutter lag will let you record precious moments in full HD resolution. Bluetooth® v 4.0+LE gives a better connection that consumes less power, detecting devices up to 50 meters away. An impressive Cortex A9 1.2GHz dual core
processor powers the GALAXY Grand, which ensures a fast operating speed for seamless multitasking, faster webpage loading and softer UI transitions. PR
etihad airways set to transform passenger services system KARACHI: Etihad Airways will make its ‘Big Switch’ to new, state-of-the-art, passenger sales, website, and check-in systems next week, the most significant milestone in its US$ 1 billion, ten-year, deal with Sabre Airline Solutions. The Passenger Service System (PSS) transformation project is the most challenging IT and business-critical initiative that the Abu Dhabi-based airline has implemented in its history. It has involved intensive training for 6,700 Etihad Airways and third party staff. The Big Switch will integrate Etihad Airways’ current PSS into one platform that will utilise cutting-edge software across its reservations, inventory, eCommerce, distribution and departure control activities. The new Sabre Airline Solutions PSS will offer significant enhancements to the customer experience especially in areas such as mobile and guest communications. The Big Switch will start on 23 February, and is due for completion on 24 February. Therefore during 22 and 25 February Etihad Airways asks passengers to follow key guidelines to help ensure any disruption to their travel experience is kept to a minimum. PR
Cathay Pacific releases combined traffic figures KARACHI: Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for January 2013 that show a drop in the number of passengers carried compared to the same month in 2012, alongside a significant yearon-year increase in cargo and mail tonnage. Cathay Pacific and Dragonair carried a total of 2,327,071 passengers in January – a drop of 7.3% compared to the same month last year. The passenger load factor fell by 3.4 percentage points to 78.5%, while capacity, measured in available seat kilometres (ASKs), saw a 6.3% decline. The two airlines carried 132,792 tonnes of cargo and mail last month, an increase of 14.2% compared to January 2012. The cargo and mail load factor rose by 3.1 percentage points to 63%. Capacity, measured in available cargo/mail tonne kilometres, rose by 2.4%, while cargo and mail revenue tonne kilometres were up by 7.7%. PR