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Murder by numbers Page 02
profit.com.pk
PSO is on a roll! g
Tuesday, 22 May, 2012
What happened to all the neighbourly love? g
India-Pakistan trade declines 30pc to $1.56b in FY2012
Reduces fuel supply to power sector due to govt failure to clear liabilities ISLAMABAD
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ONLINE
He Pakistan State Oil (PSO) has reduced the fuel supply to the power sector after government’s failure to clear the liabilities of the sector that have been surged to Rs 205 billion. According to officials of PSO the oil giant’s total payables to local refineries and international fuel suppliers have been reached to Rs177.5 billion while receivables from power sector, Pakistan Railways (PR) and Pakistan International Airlines (PIA) stands at Rs 204.781 billion. Officials told the state oil agency is supplying fuel worth of more than Rs32 billion monthly to the power sector, and the sector is paying back meager amount of about Rs15-16 billion per month which is not enough to run the business of the oil agency. Non availability of payments by power sector is adding to woes of PSO as state agency has to pay to international companies. Officials said that after several requests ministry of water and power has not paid any major amount during current fiscal year therefore receivables of power sector has touched Rs 205 billion. The Hub Power Company Limited (HUBCO) is the leading defaulter of PSO with Rs99 billion outstanding dues followed by Water and Power Development Authority (WAPDA) with Rs53.66 billion, Kot Addu Power Company (KAPCO) with Rs22.68 billion. The company has to receive Rs3.18 billion from Pakistan International Airline (PIA), Rs366 million from Oil and Gas Development Company Limited (OGDCL), over Rs8 billion from Karachi electric Supply Company (KeSC), Rs463 million from National Logistic Cell (NLC) and Rs1.34 billion from Pakistan Railways. The company is to receive Rs1.4 billion on account of audited price differential claim of HighSpeed Diesel (HSD), over Rs3.4 billion on account of price differential on Low-Sulphur Fuel Oil and High-Sulphur Fuel Oil (LSFO/HSFO), Rs1.36 bil-
lion on account of price differential on imported PMG, Rs8.612 billion price differential under GLMP and Rs1.419 billion on account of financial charges on PIA. At present, the PSO owes Rs82.3 billion to local refineries. Of the total, PSO owes Rs26.8 billion to the Pak Arab Refinery Limited (Parco), Rs14.5 billion to Pakistan Refinery Limited (PRL), Rs9.277 billion to National Refinery Limited (NRL), Rs28.91 billion to ARL, Rs3.158 billion to Bosicor and Rs520 million to others. Official said that the circular debt has crippled the national economy, adding that if the government did not take immediate steps in resolving the circular debt issue, the company will go in default and oil supply chain would be disturbed. PSO tO buy 65Pc Of bycO’S OutPut, deal Signed: Byco Oil Pakistan and Pakistan State Oil have signed a product Sale and Purchase Agreement (SPA) that would ensure guaranteed sale of 65 percent of the former’s production of various petroleum products from its new 120,000 bpd refinery to the latter. This sale of petroleum products from Byco to PSO would substitute equivalent volume of imports being presently made by PSO particularly of products such as PMG, HSD and HSFO. The agreement was inked by Naeem Yahya, Managing Director PSO and M. Qaiser Jamal, Country Business Head, Oil Refining, Byco Oil. A unique feature of this agreement is that Byco will make sales to PSO against a confirmed letter of credit. The agreed payment arrangements will benefit the refinery to ensure timely collection of its dues which will greatly help in reducing the element of circular debt. Byco’s new oil refinery with a crude oil processing capacity of 120,000 bpd is expected to attain mechanical completion by end June 2012. This would be followed by pre-commissioning and commissioning activities leading to commercial operations by 4th quarter 2012. Along with the existing 35,000 bpd refinery, the commissioning of the new refinery will make Byco the single largest crude oil refiner in the Country.
Turkmen track TAPI g
Turkmenistan close to gas deal on trans-Afghan pipeline
NEW DELHI ONLINE
Bilateral trade between India and Pakistan has declined by about 30 per cent to $1.56 billion during April-January, 2011-12. During the same period of 2010-11 fiscal, the bilateral trade was $2.22 billion, Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Lok Sabha, reported PTI. He added that as a result of the bilateral discussions held over the past year between the two countries, Pakistan has replaced its 'positive list' -comprising 1,963 items that could be exported by India -- with a 'negative list' of 1,209 items. "This implies that except for these 1,209 items, all other items can be exported. Such substantial increase in tradable commodities is expected to reduce trade through third coun-
tries," Scindia said. In another reply, the minister said trade between India and Japan during April-January 2011-12 has surpassed the figure of total trade in 2010-11. During April-January 2011-12, the two-way commerce aggregated at $14.7 billion compared to $13.71 billion in 2010-11. During the 10-month period of last fiscal, India's exports to Japan stood at $4.97 billion, while imports were $9.79 billion. The comprehensive economic partnership agreement between India and Japan was implemented on August 1, 2011. In another reply, Scindia said the approval of Director General of Foreign Trade (DGFT) is not required for registration of export contracts. "Field offices of the Directorate are authorised to issue the registration certificates for export of cotton after verification of required documents," he said.
World Bank whines g
80pc investment promotion agencies failed to respond to investor inquiries: WB
ASHGABAT
ISLAMABAD
ONLINE
ONLINE
Turkmenistan plans this week to sign a long-awaited agreement to supply natural gas to Pakistan and India through an ambitious US-backed pipeline that would cross Afghanistan, a source in the Central Asian country's government told Reuters on Monday. Turkmenistan, which holds more than 4 percent of the world's natural gas reserves, plans to sign the sales and purchase agreement for the TAPI pipeline on Wednesday, during an international gas conference in the Caspian Sea resort of Avaza. "The plan is to sign the TAPI natural gas sales and purchase agreement with Islamabad and Delhi on May 23 in Avaza, by the Caspian, where the gas congress is opening," the government source told Reuters, on condition of anonymity. He gave no details of the content of the agreement. The idea of the TAPI pipeline, an acronym formed from the initials of the four countries through which it would pass, was first raised in the mid-1990s but construction has yet to begin. In a sign a deal might be imminent, India's cabinet last week allowed state-run gas-firm GAIL (India) Ltd to sign a gas purchase agreement with Turkmenistan. Turkmen officials have said the proposed 1,735-km (1,085-mile) pipeline could carry 1 trillion cubic metres of gas over a 30-year period, or 33 billion cubic meters a year. But the route, particularly the 735-km (450-mile) leg through the Afghan provinces of Herat and Kandahar, presents significant security challenges and will require billions of dollars in funding. A U.S. official estimated in March that the pipeline could cost between $10 billion and $12 billion to construct. Daniel Stein, senior adviser to the U.S. State Department's special envoy for eurasian energy, also said that two major U.S. oil companies were interesting in participating in the project. He declined to name the companies. ex-Soviet Turkmenistan is promoting the TAPI pipeline as a key element in plans to cut reliance on supplies to Russia and to boost annual gas exports to 180 billion cubic meters by 2030. BP data show Turkmenistan's natural gas reserves equal to those of Saudi Arabia and behind only Russia, Iran and Qatar. The country aims to supply gas from its Galkynysh field, better known by its previous name, South Iolotan. Auditor Gaffney, Cline & Associates has ranked the field the world's second largest, with gas reserves of between 13.1 trillion and 21.2 trillion cubic meters.
even as countries compete to attract investments, 80 percent of national investment promotion agencies are failing to respond to investor inquiries in the key sectors of agribusiness and tourism. According to the World Bank Group’s Global Investment Promotion Best Practices 2012 report, assessing 189 economies’ responsiveness to investors finds that investment promotion agencies are less responsive to direct investor inquiries than they were three years ago. In the areas of inquiry-handling and website performance over the past two years, two regions showed improvement—the Middle east and North Africa, and Latin America and the Caribbean. "In difficult times, governments may be tempted to cut funding for investment promotion. However, this can cost them opportunities to secure investments and jobs,” said Pierre Guislain, Director of the Bank Group's Investment Climate Department. “Skilled investment promotion agencies can give economies a competitive advantage by helping investors choose a suitable location and set up operations that create jobs and promote growth.” The report shows that limited resources need not be an obstacle to effectiveness. For example, Cyprus Investment Promotion Agency, one of the world’s topperforming agencies, has only 10 staff members spread across a range of functions. It also finds investment promotion websites to be a bright spot, with 62 percent of agencies implementing best practices. Nicaragua’s investment promotion agency PRONicaragua emerged as the world’s top investment facilitator, becoming the first developing country to do so. PRONicaragua achieved bestpractice standards in website performance and response to investor inquiries. "We believe that the level of service an Investment Promotion Agency offers influences an investor’s first impression of a country’s investment climate, as it demonstrates that Government’s attitude and commitment towards investors. It is with that vision, through commitment to offering high quality service and insuring that each and every investor get the information they need, we try to build a strong sense of comfort about doing business in our country and promote economic development." said Javier Chamorro, CeO of PRONicaragua. The report was produced by the Investment Climate Department of the World Bank Group (which includes IFC, MIGA, and the World Bank) and sponsored by ProInvest, a european Commission partnership program for the countries of Africa, the Caribbean, and the Pacific, and by the government of Spain.
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Tuesday, 22 May, 2012
02 news Murder by numbers g
Multiple sales tax rates be reduced to single digit: Tariq Sayeed ISLAMABAD
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ONLINE
ARIQ Sayeed, founder and former President SAARC CCI and former President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that multiple sales tax rates should be reduced to single digit. Sayeed while apprising Dr. Abdul Hafeez Shaikh, Federal Minister for Finance about the aims and objectives of FPCCI's Proposals for the Federal Budget 2012-13 said that GDP growth should be increased at least 5%; relief and facilitation should be provided to the common man through the taxation system; investment should be attracted in the manufacturing sector through a Tax Amnesty Scheme and tax net should be broadened by identifying new taxpayers. Mumtaz Haider Rizvi, Chairman FBR and other high-ranking officers of the Federal Board of Revenue accompanied the Finance Minister during his visit to FPCCI. Highlighting the salient features of the proposals Sayeed urged that multiple rates of sales tax be reduced to a single uniform rate of 9% to curb smuggling and reducing the size of the
parallel economy. This will eliminate fake and flying invoicing and other mal-practices and the Government will generate more revenue, on one hand and give relief to common man on the hand, as indirect taxes are regressive in nature, he added. Sheikh Shakil Ahmed Dhingra, Acting President-FPCCI, chaired the meeting. Former Presidents-FPCCI, S.M. Muneer and Iftikhar Ali Malik; and FPCCI Vice Presidents Mirza Abdur Rehman, Mr, Zubair Ali, Iqbal Dawood Pakwalla were also present as speakers at the event. The Secretary Finance, Abdul Wajid Rana, Mian Zahid Hussian, Zakaria Usman, Mansha Churra, Khalid Tawab, Shaikh Manzar Aalam, and Zubair Tufail also spoke on the occasion. The meeting was widely attended by businessmen throughout Pakistan. Sayeed started his presentation by giving all participants a review on the state of Pakistan's economy, which has been performing far behind regional countries. He mentioned some key recommendations that the Government should consider in order to achieve the above objectives. He suggested that there must be a focus on social development as the ranking of the country has slipped
On the road to redemption g
PTA goes Leatherface over exports
Pakistan improving road infrastructure for trade boosting: Arbab ISLAMABAD
Federal Minister for Communications Dr. Arbab Alamgir Khan Khalil has said important highways connecting Iran are being upgraded to boost the trade with Turkey and all other eCO countries. He said this while talking to his Turkish counterpart Bin Ali Yaldram , here on Monday. He said that a large number of Turkish firms are participating in the development process in Pakistan and he hopes that more such Turkish companies will come to Pakistan and invest here which will further strengthen our brotherly relations. Federal Secretary Communications Anwar Ahmad Khan, Chairman NHA Syed Muhammad Ali Gardezi, and other high officials of Communications Ministry and delegation of Turkey was also present on the occasion. The Federal Minister said that broad range of bilateral matters and numerous memorandums of understandings would be signed during Turkish Prime Minister to Islamabad. He said that Turkey has the largest transportation system in the world and Pakistan desires to introduce the same in Pakistan. The the two countries should benefit from each other’s experiences. He said that by cooperating in the communications sector, Pakistan and Turkey can upgrade their communications system to a great extent.
from 146 to 148 in the Human Development Index (the lowest in South Asia). Tariq Sayeed added that the government must devise proactive and long-term strategies instead of shortterm policies in the following areas, namely: Concerted efforts of the Government are needed to facilitate economic diversification, and reduce the direct role of the public sector. In this regard, export-led diversification must be achieved through the state's role in making the private sector dominant in the economy. Documentation of the informal sector will lead to an increase in the tax-net. Implementation of the rule of law is crucial in all areas. The energy shortfall, which has reached 6500MW, must be removed on a war footing. The allocation of the Public Sector Development Programme (PSDP) should not be utilized for non-development purposes, as has happened in the past. Smuggling should be made unattractive by reducing the rate of duty on
smuggle prone items. The institution of the Alternative Dispute Resolution Committees (ADRC) must be revitalized for seeking out-of-court settlement to tax disputes. Finally, the working of the SubCommittees of the Business Persons Council constituted by the Finance Minister must be made more efficient. While agreeing with many of the concerns raised by Tariq Sayeed and other participants, Dr. Shaikh said that those who are already paying taxes would not have to bear any additional taxes, and would get some relief in the Budget for 2012-13. He said that the upcoming Budget would be investment, employment, pro-poor and growth-oriented. He assured the business community that industry-specific issues would be addressed by FBR in the forthcoming Budget.
Steer 6pc sales growth in 1Q2012 KARACHI STAFF REPORT
The country’s auto assembling sector continues on its recovery phase as growth of 6 percent YoY has been witnessed in net sales during Jan-Mar 12 taking the toll to Rs 56 billion. According to InvestCap Research, the growth in the topline earnings was well supported by 7 percent YoY growth in sales volume accompanied by 10 percent YoY increase in car prices by the assemblers. The gross profits of the company increased by 1.71pps YoY to 4.8 percent as assemblers passed on major incremental costs on consumers under self imposed policy. During the period, change in sale mix was also witnessed with the introduction of new model of Toyota Hilux by Indus Motors and rising sales of Suzuki Swift by Pak Suzuki Motors. Other income of the sector increased by massive 29 percent to Rs 727 million during Jan-Mar 12. Improved sales orders from con-
sumers during the period have resulted in better cash position and return on deposits from banks of auto assembler. As far as the bottom line is concerned, the sector posted the hefty growth of 143 percent YoY in PAT during Jan-Mar 12. Higher other income coupled with fall in effective tax rates to 40 percent, from 53 percent earlier, resulted in improvement in net margins by 1.18ppsYoY to 2.10 percent. Indus Motor's Corolla remained the market leader holding the market share of 31 percent in total car sales during Jan-Mar 12 with volumetric sales growth of 6 percentYoY to 12.8k units. Whereas, Pak Suzuki's Mehran stood 2nd with the market share of 21 percent posting the volumetric sales growth of 14 percentYoY to 8.7k units during same period. Also during the period, Indus Motor announced to discontinue its Coure production while Pak Suzuki is going to stop the production of its Alto due to incompliant of eURO standard.
Leather exports may decline further, PTA warns KARACHI STAFF REPORT
As exports of leather and leather goods have already dropped by 10 percent during the current fiscal year it is likely to further decline by 10 per cent during the next quarter, warned Chairman Pakistan Tanners Association (PTA) S.Z. Khurshid Ahmed. He said due to increase in input cost and growing energy shortage and water drought like situation in Tannery Zone, the main hub of export-oriented tanneries exporters are now unable to compete with the international prices of finished leather after value-addition offered by other regional leather manufacturing countries. exporters fear a massive decline in orders, he added. Khurshid said country’s biggest leather cluster Sector 7-A of Korangi Industrial Area was facing extreme shortage of water due to suspension of water supply from KWSB for the last many years.
Reincarnation of Industrial Revolution demanded g
Auto assemblers press the accelerator g
ONLINE
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Govt should come up with Industrial Revival Plan in budget 2012-13: Yassar Sakhi Butt ISLAMABAD ONLINE
Government should come out with suitable economic package for local industries in upcoming budget of 2012-13 because decline in the industrial sector growth has been one of the major reasons of the lowest GDP growth rate of Pakistan in the region during the last four years. There has been a lot of lip services at the highest levels about industrial development of Pakistan but it was accorded least priority, thus, micro and macro level strategies are needed to be re-developed for comprehensive industrial revival to achieve sustainable industrial growth, Yassar Sakhi Butt, President Islamabad Chamber of Commerce & Industry has said, addressing a group of industrialists at Chamber House. The President ICCI was expressing concern over negative growth of manufacturing sector which fell from 2.9 percent to 2.4 percent and said that the country is in dire need of a result and growth oriented Industrial development strategies to get out of the economic crisis. He said that over the last four years the contribution to GDP made by the manufacturing sector has been stagnant due to increase in gas and electricity tariffs and load shedding which have put existing industries under great pressure. Yassar Sakhi Butt said that Government should announce a suitable incentive package for the industry in the forthcoming budget to stabilize the faltering economy. He said that governments of Malaysia and Bangladesh in their industrial development plan, have given various incentives to industrial units.
Turkish delight! g
Pakistan, Turkey decide to give trade relations a boost ISLAMABAD ONLINE
Pakistan-Turkey have decided to open banks branches in each other countries to boost bilateral trade to a new height of $ 2 billion by facilitating the businessmen. The two sides reached the understanding at 14th session of Pak-Turkey Joint Ministerial Commission (JMC) meeting of trade ministers on Monday. The Pakistani Commerce Minister, Makhdoom Amin Faheem and Turkish minister for Development and environment lead the ministerial talk. Both countries have also decided to extend the cooperation in the field of alternate energy, banking, investment, energy, petroleum, railway and agriculture. Two ministers have also decided to establish six working groups those would be responsible for the implementation and progress on the bilateral cooperation.
Turkish minister while speaking at the meeting said that the volume of investment from Pakistan in Turkey is $ 65million while $ 88 million investment has been recorded from Turkey into Pakistan which is very nominal comparing the potential. He said that Turkey will soon open a branch of Turkish national bank in Karachi that will help and facilitate the businessmen of both countries. He said that Turkey will cooperate with Pakistan in the areas of energy and electricity production and both countries are engaging in this regard. Makhdoom Amin Faheem said that both countries will take measure to boost trade and investment in each other countries. He said that both brotherly Islamic countries have historical relations and cooperation in different sectors will help to improve these relations. Pakistan and Turkey will sign various agreements of cooperation in various sec-
tors today (Tuesday) in presence of Turkish PM Tayyip erdogan and PM Syed Yousaf Raza Gillani. tuRKey tO inVeSt in VaRiOuS SectORS, SayS ZafeR calayan: Turkish economy Minister Zafer Calayan on Monday said that the Turkish companies are prone to invest in Pakistan. Zafer Calayan, stated this in a meeting with the Chairman Board of Investment (BOI) Saleem H. Mandviwalla, to discuss the interests of the Turkish companies for investment in Pakistan. Turkey invested an amount of $110 billion in last seven years as Foreign Direct Investment (FDI) from the period 2003-2011, said he. He said that various Turkish companies are interested for investment in Pakistan in the fields of mass transportation and solid waste management. The companies involved in solid
waste management for cities like Lahore are Albayrak Company and Ozkartallar & Compak Joint Venture, who are requesting the Pakistani authorities to reduce the tax duties for environmental projects. The Chairman BOI confirmed the Turkish delegation that the customs tarrifs would be reduced in the budget of 2012-13 and it would continue to be reduced in the coming years gradually. Talking about the issue of Karkey Company's ownership project, the MOS/Chairman informed the Turkish minister that the company's ships are not confiscated but are being held till the issue moves towards its settlement through the Supreme Court of Pakistan. The Turkish minister also showed interest in the Trailor Purchasing Tender issued by the Karachi Port Authority, and requested for the kind support of MOS/Chairman BOI for the realization
of this project by the Turkish companies. Regarding investment opportunities in the telecommunications sector, the Turkish company Kron Telecommunication Technologies Company undertook a joint project by the name of "Remote Broadband Management System Software Project" with Pakistan Telecommunication Limited (PTCL). The project's value is $1 million. The company wants to establish its corporation in Islamabad. The Turkish minister also offered the proposal of Pakistani/Turkish companies to join hands and do business in the third countries. Further the Turkish minister assured the Pakistani side of their cooperation in every field imaginable as the two countries share common grounds. The MOS/Chairman endorsed this view and welcomed more diversified investment in Pakistan to boost its economy.
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Tuesday, 22 May, 2012
03
news
TCP awards tender for import of 0.1 m tonne urea ISLAMABAD ONLINE
The Trading Corporation of Pakistan (TCP) has awarded tender for import of 0.1 million ton urea in a bid to avert any shortage and ensure smooth availability of urea to the farmers in the current Kharif. In response to its international Tender Notice floated on April 18 last month, the TCP awarded import contract for a quantity of 100,000 metric ton urea at US$522.86 per metric ton (PMT) C&F, to the lowest bidder M/s. Gavilon Fertilizer LLC, USA on Monday. According to the official handout, in all 14 bids received in the tender. All were found responsive in terms of prescribed evaluation criteria. The prices quoted in the tender ranged from US$522.86 per metric ton to US$549.00 per metric ton (C&F). M/s. Gavilon Fertilizer LLC offered the lowest price of US$522.86 for 100,000 metric ton. As the offer conformed to all technical specifications and was the lowest, the contract was awarded, to the lowest bidder for a total quantity of 100,000 metric ton.
Sipping another cup of tea COIMBATORE ONLINE
Opening the Wagah-Attari border will provide an ideal route for tea export to Pakistan besides saving a considerable amount of time, United Planters Association of South India (UPASI) has said. Shipments could easily take more than two weeks while land route could transport teas in a week, Press Trust of India quoted UPASI as saying. A decision on opening the Wagha-Attari border may be made at the policy level and another policy that could bring positive changes to India-Pakistan trade is to have a functional SAARC Preferential Trade Agreement (SAPTA), the association said. South India's tea exports to Pakistan reached 23 million kg last year and the figure is expected to rise to 50 million kg in a few years time, UPASI added.
Major Gainers
INDEX UP 18 PTS
Budget apprehension halts early bull surge KARACHI
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STAFF REPORTER
He bulls kept dominating Karachi stocks market on first working day of the week Monday with benchmark, KSe 100-share index gained 17.96 points. The day saw the index closing up by 0.13 percent at 13,875.74 points against 13,857.78 points of Friday. The Pakistan Stocks closed higher amid thin trades as investors remained cautious ahead of federal budget announcements due next month. Viewed by Ahsan Mehanti, Director at Arif Habib Investments Limited. On Monday, the trading volumes at the ready-counter were recorded lower at 81.448 million shares against 175.707 million shares of the previous day. The trading value too decreased to Rs 2.121 billion compared to Rs 5.160 billion of the previous session. The intraday high and low, respectively, stood at 13,943.36 and 13,857.78 points. He added that the fall in global commodities and stocks affected the sentiments despite foreign interest in banking and oil sector stocks. The market capitalization increased to Rs 3.544 trillion from Rs 3.539 trillion a
day earlier. Of the total 361 traded scrips, 139 gained, 143 lost and 79 finished as unchanged. The free-float KSe-30 index also gained 25.44 points to close at 12,006.24 points against the previous 11,980.80 points. Jahangir Siddiqui Bank Limited was the day’s volume leader counting its traded shares at 10.720 million with the opening and closing rates standing at Rs 5.20 and Rs 5.80, followed by Jahangir Siddiqui Company Limited, D.G.K Cement, Bankislami Pakistan and engro Foods Limited with turnover of 8.070 million, 7.217 million, 6.841 million and 3.403 million shares respectively. According to analyst the trading remained in narrow range as investors awaited announcements on military aid to Pakistan during President visit for Chicago conference amid hopes for improvement in Pak-US relations on resumption of NATO supplies. On the future market, the turnover recovered remarkably by over 5 million shares to 19.752 million against 14.502 million shares of last working day of the week Friday. The Mithchells Fruit and Wyeth Pakistan Limited, up Rs 10.73 and Rs 10.00, led highest price gainers while, Rafhan Maize XD and Dreamworld, down Rs 72.82 and Rs 21.15 respectively, led the losers.
Company
Open
High
Low
Close
Change
Turnover
Mithchells Fruit Wyeth Pak Limited Shezan Inter. Pak.Int.Cont SD Pak Services
214.76 770.00 184.07 157.50 150.84
225.49 780.00 193.27 165.37 158.38
214.76 755.00 185.88 161.00 150.84
225.49 780.00 193.27 162.62 155.26
10.73 10.00 9.20 5.12 4.42
986 101 24,550 8,495 180
-72.82 -11.71 -8.80 -5.45 -4.22
11 13 4,474 19,042 65
0.60 -0.23 -0.21 -0.72 0.88
10,720,366 8,070,482 7,217,367 6,841,754 3,403,222
Major Losers Rafhan MaizeXD Nestle Pakistan Ltd. AL-Ghazi Tractor Clariant Pak Bata (Pak) Limited
2900.00 3990.00 205.06 163.07 644.22
2827.18 3978.29 196.26 157.62 640.00
JS Bank Ltd Jah.Sidd. Co. D.G.K.Cement Bankislami Pakistan Engro Foods Ltd.
5.20 16.57 40.49 10.83 64.75
5.89 16.89 40.66 10.74 66.20
5.10 16.21 39.70 9.83 64.75
5.80 16.34 40.28 10.11 65.63
Interbank Rates US Dollar UK Pound Japanese Yen euro
91.2947 144.4282 1.1510 116.5742
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
Sell
91.80 116.50 144.43 1.1466 89.31 11.68 24.90 24.42 89.51
92.40 117.78 145.97 1.1588 90.77 11.85 25.14 24.62 91.93
IN FLIGHT
Trade relations to further boost between Pakistan and UAE
Khushhalibank launches online services in its 100th branch at Pattoki
KaRacHi: Tariq Puri, the chief executive of Trade Development Authority of Pakistan (TDAP), assured full support to UAe for promoting bilateral trade between the two countries. He was talking to essa Abdulla Al Basha Al-Noaimi, UAe Ambassador to Pakistan, who called on him Monday in his office. The ambassador briefed Puri about the UAe bid for World exposition 2020 where UAe is pitching Dubai as the host city. Chief executive TDAP emphasized upon the Ambassador that in order to bid for Dubai, UAe government has to conduct extensive road shows worldwide to seek the maximum votes of members of the Bureau of International exhibition (BIS). He appreciated the infrastructure which UAe has built over the years and Dubai is fully geared to host such an important event. The Ambassador informed that if UAe wins the bid then it will be first city in the entire Middle east and South Asia which will have this honor. Both also discussed the positive outcome of Annual Investment Meeting held in Dubai this month and UAe Ambassador thanked TDAP for putting up such an impressive pavilion. Mr. Puri highlighted the strong brotherly relations which two countries enjoy in all areas. He hoped that Pakistan and UAe’s economic relationship will further deepen by participating in such events in future. PRESS RELEASE
PattOKi: Khushhalibank Pakistan’s leading microfinance bank, has launched online services in its 100thbranch at Pattoki, offering multiple liability and asset products and services. The initiative of online/realtime banking has been taken to further Khushhalibank’s vision of “One Bank – One Client”, which makes the customer of one branch, a client of the entire bank, enabling him to avail its services irrespective of location. Khushhalibank is the largest microfinance Institution in the country with over four hundred thousand active clients and nearly three million micro-loans extended to promote business and empower small entrepreneurs across the country. PRESS RELEASE
iSlaMabad: The Karachi School for Business & Leadership (KSBL) is proud to announce its partnership with Pakistan International Container Terminal Ltd. (PICT), who has very generously contributed to the development of one of KSBL’s state-of-the-art Lecture Rooms. We are very grateful for PICT’s contribution and are confident that with their assistance, KSBL will truly revolutionize higher education in Pakistan. A partnership ceremony was conducted by PICT at their office premises in which Capt. Haleem Siqqidui invited the Board of Directors of the Karachi education Initiative (KeI), the sponsoring entity of KSBL, and demonstrated his and PICT’s commitment to Mr. Hussain Dawood, Chairman KeI and Mr. Arif Habib, Chair FR KeI, for furthering economic growth and development in Pakistan through higher education. Capt. Siddiqui also stated that PICT personally supports education as a vital tool for the nation’s prosperity and has committed his contribution towards KSBL’s scholarship programme. KSBL has invested significantly in IT infrastructure and facilities at the campus, and as a result the lecture rooms will be equipped with state-of-the-art videoconferencing facilities enabling students to engage in real-time learning and interactions with renowned professors and business leaders from around the world during lectures and web conferences raising the bar for education in Pakistan and the region. PRESS RELEASE
2780.00 3950.00 195.00 156.05 620.00
Volume Leaders
CORPORATE CORNER
Pakistan International Container Terminal (PICT) joins hands with KSBL
2880.00 4024.99 208.50 163.07 670.00
Joint Venture, who are requesting the Pakistani authorities to reduce the tax duties for environmental projects. The MOS/Chairman BOI, confirmed the Turkish delegation that the customs tarrifs would be reduced in the budget of 2012-13 and it would continue to be reduced in the coming years gradually. Talking about the issue of Karkey company’s powership project, the MOS/Chairman informed the Turkish minister that the company’s ships are not confiscated but are being held till the issue moves towards its settlement through the Supreme Court of Pakistan. The Turkish minister also showed interest in the Trailor Purchasing Tender issued by the Karachi Port Authority, and requested for the kind support of MOS/Chairman BOI for the realization of this project by the Turkish companies. PRESS RELEASE
ADB delegation meets NHA chairman
101 reasons to believe in Pakistan KaRacHi: I am pleased to present to you our 101 Reasons to Believe in a Better Pakistan book, a publication that Coca-Cola has brought out as a part of its larger campaign to spread positivity in our society. As we are all aware, Pakistan is going through a disturbing identity crisis. We seem to be increasingly getting lost in a culture of negativity and despondency, making it very difficult for people to be optimistic about life and their country. In such a situation, Coca-Cola believes there is a pressing need to shift the focus towards all the good things about Pakistan that very much exist, but which are perhaps not getting enough attention. PRESS RELEASE
Turkish minister meets BOI chairman
iSlaMabad: H.e Mr. Zafer Calayan, Minister of economy, Republic of Turkey called on MOS/Chairman Board of Investment Mr. Saleem H. Mandviwalla, to discuss the interests of the Turkish companies for investment in Pakistan. Turkey has an amount of $110 billion of FDI from the period 2003-2011. Various Turkish companies are interested for investment in Pakistan in the fields of mass transportation and solid waste management. The companies involved in solid waste management for cities like Lahore are Albayrak Company and Ozkartallar &Compak
laHORe: A delegation of Asian Development Bank (ADB) headed by its Country Director Mr. Leigh Werner called on Chairman NHA Syed M.Ali Gardezi at NHA Headquarter, here on Monday. Senior Officers of NHA were also present on this occasion. On their arrival Syed M.Ali Gardezi welcomed the visiting guests. In the meeting, national highways projects underway with the assistance of the ADB were reviewed in detail. These projects include Faisalabad-Gojra Section (Rs. 14 billion) of M-4, 68 km Sukkur-Jacobabad Section (Rs. 7 billion) and 150 km Qila Saifullah-Zhob Section (Rs. 8-billion). It is recalled that the representatives of NHA and ADB jointly hold a quarterly review of these projects to monitor their progress. The ADB staff visited these projects from May 15 to 20, 2012 and met Chairman (NHA) to discuss their findings. ADB Country Director Mr Leiph Werner expressed satisfaction over pace of work on all the three projects and appreciated efforts of NHA. In the meeting both the sides also agreed to undertake new projects in 2012-13, which include Gojra-Shorkot Section of M-4, Jharikas-Sarai Salik section of Hassanabadal- Havelian expressway and Zhob-Mughalkot, and Qila Saifullah Loralai-Waigam Rud projects in Balochistan. The meeting also reviewed the preparatory work of these schemes. It was also agreed that depending on budget allocations at least two of the above projects one section from Hassanabadal-Havelian expressway and other from M-4, should be started. PRESS RELEASE
PIA moves to avoid secondary security checks KARACHI STAFF REPORT
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He Pakistan International Airline (PIA) is formulating, what the PIA spokesman said Monday, a comprehensive strategy for the restoration of european Aviation Safety Agency 145 (eASA 145) approval for the airline’s engineering and flights to the United States without en route secondary security checks at Manchester. According to a PIA spokesman, the decision was taken by Managing Director PIA, Air Chief Marshal Rao Qamar Suleman (R) after his return from Colonge, Germany on May 15 where he held the highest level meeting with the eASA officials. Suleman was invited by the eASA Board to discuss possible ways for the restoration of PIA’s eASA 145 approval, the spokesman said. During the meting the eASA authorities agreed with the steps suggested by the PIA. The visiting PIA team presented a roadmap on restoration of eASA 145 approval for PIA engineering. The managing director PIA also met with top officials of Transportation Security Administration (TSA) along with Homeland Security officials and discussed the various options available to both sides to create a framework that would allow the PIA to fly to the USA without en route secondary security checks. The managing director PIA was welcomed by the TSA officials. During the meeting security concerns were discussed. MD PIA assured that all issues shall be addressed by PIA on an urgent basis. TSA team was satisfied by steps suggested by PIA. Both meetings were successful as MD PIA was able to convince eASA and TSA to allow PIA time to resolve the issues raised by both the agencies. The matter is most critical for the airline as a possible sanction by either of the Agency can result in suspension of the PIA flights to eU and the USA. The managing director is putting together a comprehensive strategy to tackle the matter on emergency basis. PIA spokesman concluded.