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Wednesday, 21 November, 2012
Trade among D-8 member states is rising continuously: PM
ISLAMABAD: A group photo of senior officials from central banks from D-8 Summit countries at a local hotel. INP
Central banks identify four key areas for cooperation ISLAMABAD
D
STAFF REPORT
EPUTy Governor State Bank of Pakistan Kazi Abdul Muktadir has outlined four key aspects for D-8 central banks’ cooperation for promoting inclusive economic growth amongst the Developing-8 countries. In his opening remarks at a workshop on “Central Banks Monetary and Financial Cooperation for Promoting Inclusive Economic Growth in D-8 countries” at a local hotel in Islamabad Wednesday, he said “we need to deliberate on sustaining growth in the New Economic Order and enhancing cooperation through trade and capital inflows among the D-8 countries”. He said the D-8 economies have witnessed remarkable growth despite slow recovery in the global economy. ‘As the D-8 economies accelerate to a new phase, it is critical for central banks to work towards deeper economic and fi-
‘D-8 countries capable of improving their economies by trade cooperation’ ISLAMABAD: Analyst Dr. Asimullah Bakhsh has said that D-8 countries have capacity to improve their economies due to trade cooperation. Talking to a private news channel, he said that D-8 member countries could provide products of good quality in agriculture and industrial sectors. He said that these countries should set realistic goals. He added that member countries should remove trade barriers especially custom duties. In response to a question former senior president of Rawalpindi Chamber of Commerce Raja Amir Iqbal said that D-8 countries could achieve their trade target of 500 billion dollars in 2018. He said that Indonesia, Malaysia and Turkey could invest in Pakistani textiles and auto parts if our energy problem is resolved. He said that Pakistani businessmen could take advantage by enhancing exports to Turkey, Egypt and Nigeria. APP
nancial integration through sound monetary policies and macroeconomic management. However, regional economic and financial integration should be based on greater exchange rate flexibility, freer capital mobility, transparent rules and regulations’, Mr. Abdul Muktadir added. He said that sustainability of economic growth can only be ensured through incentives to encourage investment in innovation and technology, and promotion of entrepreneurship. ‘Increased cooperation and deeper eco-
nomic integration will enable D-8 countries to respond effectively to global challenges,’ SBP Deputy Governor added. Stressing the need for cooperation to promote innovative Financial Inclusion Policies in the D-8 countries, he said that developing dynamic risk management framework and innovative financial structures can help the banking industry to exploit the huge potential of micro, small and medium enterprises. SBP Deputy Governor said that besides sharing experiences of policy and development interventions for financial
D-8 Summit to deliver positive message to world: analysts ISLAMABAD: Analyst Dr Ashfaq Hassan said that D-8 summit has many significant aspects especially with reference to economy and all member countries are making effort to increase trade. Talking to a private news channel, he said Pakistan can improve its image through D-8 conference. The conference will deliver a positive message to the world. He said every government will advance D-8 agenda and we are facing temporary crisis which will be overcome . “I think it is in the interest of D-8 to promote trade,”he added. He said world is looking towards Asia due to worst economic situation of Europe and problems in US so Pakistan has key role in the region. He said that Turkey, Malaysia and Indonesia have stable economies and Iran is oil rich country. He said the conference is making effort to promote mutual investment and trade. Analyst Mian Ibrar also said that D-8 is very important for Pakistan because it is a gateway for the three blocks SAARC, Middles East and Central Asia. D-8 trade is increasing with the passage of time and the group will play a key role in the region in current situation, he said. APP
inclusion, ‘we should also share our progress on innovative financial services such as branchless banking’. Abdul Muktadir said that the true spirit of Islamic Financial system is the way forward that may help the global financial system to recover and regain the lost trust of stakeholders. ‘The Islamic banking industry is expected to grow considerably to play its critical role towards the economic growth in any economy. Global Islamic financial industry stands at US$ 1.1 trillion and recent reports suggest that global Islamic finance market will continue its upsurge and is likely to grow 20 per cent annually between 2011-15 and thereby double in value to reach above US$2 trillion,’ he added. He also stressed upon the need to establish information exchange and promote peer learning amongst D-8 central banks and added that D-8 countries with a population of over a billion have a strong potential to be a major economic force in the world. He said that fostering a stable banking system is the key to ensuring sustainable development. ‘However, recent experience of the global financial and Euro crisis has clearly demonstrated that cooperation and coordination among central banks, especially from emerging markets and developing coun-
ISLAMABAD: Prime Minister Raja Pervez Ashraf on Tuesday underlined participation of traders in D-8 Business Forum from the member countries is a matter of satisfaction. He was addressing the D-8 Business Forum 2012 in Islamabad on Tuesday. The Prime Minister said the forum is vital for the elimination of poverty from the member countries. He said trade is continuously on the rise among the member countries. The Prime Minister said that the incumbent democratic government of Pakistan is determined to encourage private investment in the country. Raja Pervez Ashraf congratulated the Federation of Pakistan Chambers of Commerce and Industry for assuming the chairmanship of the D-8 FCACI for next two years. He expressed his confidence that FPCCI will play its leadership role in a pro-active manner. Prime Minister said that Pakistan is blessed with skilled labour and is geographically located at a very significant place. He said cooperation among the members is increasing under the preferential trade. The Prime Minister assured the participants of his government’s support to strengthen economic relations among the D-8 block. He also expressed the hope that the deliberations among the participants will generate tangible outcome for the socio-economic uplift of our people in the days to come. ONLINE
tries, is necessary to diversify and insulate their economies from global shocks and also learn from each other’s experiences that would help in achieving their respective economic goals,’ Mr. Abdul Muktadir added. SBP Deputy Governor observed the financial meltdown in advanced economies in 2008 unleashed a global crisis which followed by great recession. ‘The central banks around the world therefore had to adopt both conventional and unconventional policy tools to dampen the impact of global crisis,’ he added.
Increase technological, industrial cooperation among D-8 countries: ICCI ISLAMABAD STAFF REPORT
Developing 8 countries (D8) should diversify their economies by creating new opportunities via increased trade relations with an objective to improve the position of Muslim developing countries in the global world. These remarks were made by Mr.Zafar Bakhtawari, President Islamabad Chamber of Commerce & Industry (ICCI) during a meeting at Chamber House. He said the D-8 member states must strengthen their technological and industrial cooperation to consolidate national economies and ensure accelerated economic growth and development. ICCI President said that the trade among member states was stood around $129billion that is only 6 percent of the world trade which needs to be increased by promoting business-to-business linkages among the member countries. He said that there
is no doubt that agriculture and food security, transportation, energy and industries, including small and medium-sized enterprises (SMEs), are major priority areas of cooperation among the D-8 countries. He was of the view that implementation of tariff concessions under the preferential trade agreement is need of the hour which would lead the D8 community towards Free Trade agreements as well as greater economic integration. ICCI President urged the D8 countries to achieve the $500billion trade target which is set by Prime Minister of Pakistan, Raja Pervaiz Ashraf through bringing closer the business community of the member countries which would help in deepening our trade and open new vistas for joint ventures. Mr.Bakhtawari said that D8 countries have large Muslim population which is 60 percent of the entire Muslims population have huge cheap labour force, potential human resource, vast internal market, scope for
rapid technology transfer and relatively common social value systems. Therefore, we need now is to strengthen our mutual cooperation, communication and initiative through exchange of expertise, knowledge and transfer of renewable technology. He said that Islamic countries own major production of oil and other valuable natural resources but the trade volume of these countries with Europe and America is far greater as compared to their mutual trade. Thus, the level of economic and commercial cooperation among Muslim countries should be increased, he maintained. Commenting upon the geographical location of Pakistan, ICCI President urged the other Muslim countries to invest in Pakistani areas such as energy, power, infrastructure housing, oil and gas exploration and Halal food products as there was enormous potential and prospects of cooperation with Muslim states in all the sectors.
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Business 02 You’ll have gas, Dr Asim tells domestic consumers
Asian markets up on US hopes, euro eases HONG KONG
ISLAMABAD ONLINE
Dr. Asim Hussain, Advisor to the Prime Minister on Petroleum and Natural Resources had said that supply of Natural Gas to domestic consumers is the top priority of the Government. He said this while meeting Parliamentarians including MNAs Engineer Khurram Dastagir Khan, Hamid Saeed Kazmi, Zahid Hamid, Mufti Ajmal Khan, Mazhar Hayat Khan, Roshan-ud-Din Junejo , Senator Baz Muhammad and Senator Zahid Khan who called on the Advisor regarding problems faced in supply of Natural Gas to their respective constituencies today in Islamabad. The meeting was also attended by Managing Director and Senior Management of Sui Northern Gas Pipelines Ltd. The Parliamentarians apprised the Advisor regarding progress on gas supply schemes in their respective constituencies, on which the Advisor on Petroleum issued directives to SNGPL for expediting work. Dr. Asim Hussain informed the Parliamentarians that a site office of SNGPL is being established in the Ministry premises to cater for public complaints and providing up-to-date information on gas supply / connection cases. He further assured that all cases would be dealt on merit so that the public is facilitated.
A
AGENCIES
A Moody’s downgrade of France’s sovereign rating wiped out a good part of the euro’s gains Monday, the eve of a crucial eurozone finance ministers meeting on Greece’s debt crisis. The euro dropped after Moody’s cut France’s gold-plated AAA credit grade by one notch to “Aa1” and maintained a negative out-
COmPAnY UniLever Pak Colgate Palmolive Rafhan Maize Prod. Bata (Pak) XD Island Textile
OPEn 9501.00 1235.00 3500.00 1344.99 654.61
HIgH 9600.00 1296.75 3550.00 1380.00 687.34
LOw 9600.00 1290.00 3525.00 1300.01 684.34
CLOSE CHAngE 9600.00 99.00 1290.00 55.00 3550.00 50.00 1380.00 35.01 687.34 32.73
TUrnOvEr 20 350 100 2,450 600
549.98 787.50 132.01 123.50 118.00
535.80 740.00 126.91 123.50 114.60
549.98 740.00 126.91 123.50 114.60
-14.02 -10.00 -6.67 -6.50 -6.03
1,400 1,900 162,500 1,500 2,000
7.15 17.27 14.02 9.68 9.11
6.70 15.86 12.85 8.75 8.13
6.77 15.87 13.95 9.64 8.26
-0.10 -0.99 0.93 0.96 -0.47
70,958,500 26,280,500 23,973,500 16,486,500 16,048,500
Major Losers
AGENCIES
SIAN markets rose again Tuesday on growing confidence that US politicians will agree a deal to avert a fiscal cliff but the euro took a hit as France lost its topnotch credit rating. The decision by Moody’s to downgrade French debt staunched the single currency’s rise, which had been stoked by hopes that eurozone leaders will agree to hand Greece its latest batch of bailout cash. Tokyo, which has risen about five percent in the past three sessions on expectations of fresh monetary easing, added 0.18 percent in early trade, while Hong Kong climbed 1.02 percent and Sydney was 0.34 percent higher. Shanghai advanced 0.23 percent and Seoul was up 0.63 percent. Wall Street provided a strong lead as markets opened for the first time since Republicans and Democrats on Friday pledged to work on a budget that would avoid the fiscal cliff of tax hikes and spending cuts due on January 1 that would tip the economy into recession. Global shares have tumbled in recent weeks on fears the two parties would not find a compromise but the comments from Congressional leaders have soothed fears. The Dow climbed 1.65 percent, the S&P 500 jumped 1.99 percent and the Nasdaq surged 2.21 percent. The rally was also boosted by figures showing that existing home sales rose 2.1 percent in October from September and home builder confidence improved for a seventh straight month in November. However, European woes continue to nag. On Monday it was France in the spotlight after Moody’s cut its gold-plated AAA credit grade by one notch to “Aa1” and maintained a negative outlook, meaning another downgrade was possible.
Indus DyeingXD Siemens Pakistan IGI Insurance Ismail IndustrXD Gillette Pak
look, meaning that another downgrade was possible. Moody’s cited the France’s “disproportionately large” exposure to the troubled countries on Europe’s periphery. The euro bought $1.2778 at 2230 GMT, down from $1.2816 a half hour earlier. Still, it had gained ground from $1.2741 late Friday. The euro also dropped to $103.99 yen, down from 104.25 yen shortly earlier but up from 103.60 yen late Friday.
564.00 750.00 133.58 130.00 120.63
Volume Leaders
It cited the the country’s “disproportionately large” exposure to the troubled countries on Europe’s periphery. Fellow ratings agency Standard & Poor’s made a similar move in January. The euro, which has been enjoying a rally, suffered as a result. In early Tokyo trade it bought $1.2774 and 103.93 yen, compared with $1.2778 and $103.99 yen in New york late Monday. The single currency had risen to $1.2816 and 104.25 yen shortly before Moody’s made its announcement. The dollar was trading at 81.35 yen in Tokyo, compared with 81.40 yen in New york. The yen remains under pressure — which has lifted the Nikkei index — after the frontrunner to become Japan’s next prime minister in December polls said he would embark in an aggressive policy of monetary easing to help the economy. Investors had been buying the euro on a likely agreement between regional finance ministers to hand Athens the latest instalment of cash it needs to avoid bankruptcy. They will try Tuesday to reach a framework agreement at a meeting on Greece and heal a split with the International Monetary Fund over a key debt reduction target. “We are headed for an agreement, but a partial one,” said a European diplomat who asked not to be named.
France downgrade steals euro gains NEW YORK
Major Gainers
The European currency had advanced on renewed hopes that eurozone finance ministers, meeting Tuesday, “will agree to release funds to Greece,” said David Gilmore at Foreign Exchange Analytics. “That buys time for officials to come up with a more permanent solution and puts the risk on trade back on the table.” The dollar fell against the Swiss currency, to 0.9423 francs from 0.9452 late Friday, while the pound bought $1.5904, up from $1.5880.
Fauji Cement 6.87 Jah.Sidd. Co. 16.86 Maple Leaf Cement 13.02 Bankislami Pakistan 8.68 Azgard Nine 8.73
Interbank Rates US Dollar UK Pound Japanese yen Euro
95.9595 152.6332 1.1806 122.7802
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUY
SELL
96.40 122.44 152.27 1.1660 95.59 12.21 26.10 25.58 98.81
96.90 124.00 154.17 1.1805 97.29 12.44 26.40 25.85 101.50
Crude down on profit-taking, French rating cut SINGAPORE: Crude was down in Asia Tuesday as traders took profits and ratings agency Moody’s downgraded the French government bond rating, analysts said. New york’s main contract, light sweet crude for delivery in January, shed 31 cents to $88.97 a barrel and Brent North Sea crude for January delivery fell 18 cents to $111.52. “Today there’s a bit more of a risk-off theme with the French downgrade and a bit of profit-taking on the back of yesterday’s big move,” said Jason Hughes, head of premium client management for IG Markets Singapore. Crude surged more than $2 on Monday as violence intensified in the Israel-Gaza conflict, sparking fresh concern about supplies from the crude-rich Middle East. Israeli strikes killed 32 Palestinians on Monday, taking the Gaza death toll to 109 as UN chief Ban Ki-moon joined efforts to end the worst violence in four years. AGENCIES
CORPORATE CORNER Education key to Pakistan’s success, says UK envoy
KARACHI: The one key issue that has potential to transform Pakistan’s future is education. This was said by British Deputy High Commissioner and Director UK Trade and Investment, PakistanMr Francis Campbell at a reception hosted by him at his residence to introduce LSBF (London School of Business and Finance) Country Head for Pakistan, Faisal Azeem. Mr Campbell said that yet another UK education institution of higher learning had come toPakistan to put down roots and make the already close ties between the two countries even stronger. He added that he hoped to increase trade and investment between the two countries to 2.5 billion pound sterling by 2015. Country Head Faisal Azeem in his address said the LSBF hopes to introduce their 360 degree Career Development Programme in Pakistan. He said this is a unified course that is globally recognized and prepares students to face the challenges of the 21st century. He added that it was state-of –the art education that guaranteed employment to students but certain terms and conditions apply.
Cathay Pacific releases combined traffic figures
‘School Of Tomorrow’ conference tackles global issues
Industry (KCCI) and Muhammad Arif, Editor AtLarge TFD and Ex Director State Bank of Pakistan (SBP) will address the Seminar.
KARACHI: Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for October 2012 that show a small increase in passenger numbers compared to the same month last year, albeit with a drop in load factor. Cargo and mail tonnage showed a year-on-year increase for the second month in a row. Cathay Pacific and Dragonair carried a total of 2,405,027 passengers in October – an increase of 1.0% compared to the same month last year. The passenger load factor fell by 1.8 percentage points to 78.3%, while capacity, measured in available seat kilometres (ASKs), dropped by 3.1%. For the year to date, passenger numbers have risen by 5.4% compared to a capacity increase of 4.1%. The two airlines carried 138,608 tonnes of cargo and mail last month, an increase of 1.9% compared to October 2011.
KUALA LUMPUR: Pakistan’s first overseas educational conference, the fourth School of Tomorrow Conference opened to a crowd of over 600 delegates from 11 countries around the world at the Sunway Hotel Resort and Spa in Kuala Lumpur, Malaysia on Tuesday. The 2-day education conference organised by Beaconhousebrought teachers, school leaders, change agents,policy makers and government officials from across Pakistan, Malaysia, UAE, Oman, UK, USA, Singapore, Thailand, Bangladesh, Philippines and Indonesia. The conference explores the future of learning and schools. This conference also marks the 37th anniversary of the Beaconhouse School System, the largest school system of its kind in the world. Richard Gerver, a renowned inspirational speaker and author of ‘Creating Tomorrow’s Schools Today’, delivered the keynote address to internationally recognised delegates as well as teachers and school heads from public and private schools in Malaysia.
UBL Funds completes 10 Years KARACHI: UBL Fund Managers, one of Pakistan’s leading Asset Management Companies completes 10 successful years of providing investment services to Pakistan today. UBL Funds with an array of both Islamic & conventional investments products has been catering to clients of various age groups and social standing, helping them achieve their financial goals. On this occasion, Mir Mohammad Ali, CEO UBL Funds said, “We are proud to have achieved several milestones in these 10 years; the most important was to be able to deliver services through a client centric approach focusing on superior customer service and need-based products while maintaining high ethical standards”.
Seminar on ‘Investment in Pakistan in Current Situation’
KARACHI: Consul General Mr. Ali Ahmed Al Qassimi, hosted a reception on the Occasion of the 42nd National Day of the Sultanate of Oman at a local hotel. Picture shows Consul General of Japan Mr.Akira Ouchi, Mrs.Ouchi, with other Omani diplomats.
KARACHI: PAF KIET in collaboration with The Financial Daily (TFD) organizing a Seminar on “Investment in Pakistan in Current Situation” on Wednesday, November 21, 2012 at 5:30 PM at Auditorium of PAF KIET, City Campus. Mr. Tariq Iqbal Khan, Renowned Economist of Pakistan and Former Chairman National Investment Trust (NIT), Mr. Atiq-ur-Rehman, Chairman Banking Committee Karachi Chamber of Commerce and
KARACHI: H.E. Adam Thomson CMG, British High Commissioner to Pakistan and Mr. George Turkington, Head of Department for International Development, Humayun Javed Khan Head of Corporate Communications, along with senior officials of the British High Commission visited the KSBL Campus.
Wednesday, 21 November, 2012