PRO 23-11-2012_Layout 1 11/22/2012 11:31 PM Page 1
Friday, 23 November, 2012
PTA with Pakistan in 15 days: Indonesian minister IslAmAbAd
I
OnLIne
NDONESIAN Minister for Trade Gita Wirjawan on Thursday said that the Preferential Trade Agreement (PTA) signed with Pakistan earlier this year would become operational in 15 days. He said the implementation of PTA signed on February 4, 2012 will not only improve relations between the two countries but also provide a level playing field to all exporters of edible oil who have vested interests in a lucrative Pakistani market. Wirjawan stated this while talking to a select group of edible oil importers led by Pakistan Vanaspati Manufacturers Association (PVMA) Senior Vice President Atif Ikram Sheikh who is also Islamabad FPCCI Capital Office Coordination Chairman. Akbar Iqbal Puri, Malik Sohail, Leonard F Hutabarat, Asia Pacific and African Affairs Director General Muhammad Hartantyo, Indonesian ministry of foreign affairs representa-
tives and others were also present in the meeting arranged by the Indonesian embassy. Wirjawan gave assurances that Indonesia will provide every possible facility to Pakistani importers. Sheikh and Puri, on the occasion said the imposition of PTA will provide incentives that will boost Indonesian exports into Pakistan. Initially, Pakistan will save 35 USD per ton on import of palm oil from Indonesia which will help the country save a total of 70 million dollars of precious foreign exchange per annum. Sheikh further said Indonesia imports will not only help importers save money but will assist manufacturers in clipping prices which will benefit the common man. He also stated that PTA will help Pakistani exporters gain enhanced access to Indonesian markets on 216 tariff lines at the preferential rate. This will be a great opportunity for Pakistani businessmen dealing in fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports
Argentine envoy stresses for enhanced Pak-Argentine trade relations IslAmAbAd Argentine Ambassador to Pakistan and Dean of Diplomatic Corps Rodolfo J Martin Saravia, while addressing the business community at Islamabad Chamber of Commerce & Industry (ICCI) said there was a need for increasing economic, commercial and political activities between Pakistan and Argentina to enhance bilateral trade relations between the business communities of both countries. He said his country had started joint ventures with Pakistani pharmaceutical companies to produce medicines for Cancer and Hepatitis C treatment in Pakistan. Saravia further said that Argentina is a leader in the use of CNG and Pakistan was already importing CNG equipment
from Argentina, adding that agriculture, alternative energies, pharmaceutics and CNG buses for passengers could serve as key sectors for starting joint venture. He said the bilateral trade volume between the two countries stood at $200 million in 2008 which dipped to around $130 million in recent years which implied there was a dire need to find ways and means through which the trade volume could be increased. He further stated that Pakistan had great potential in exporting fruits and vegetables in the international market, therefore, fruit processing plants should be developed on modern lines to avoid wastage of large quantities due to lack of proper packaging. In his welcome address, President ICCI Zafar Bakhtawari lauded Saravia’s efforts in playing a dynamic role to
strengthen bilateral relations in all spheres between the two countries. Bakhtawari said both countries should concentrate on existing opportunities and suggested that cooperation could be enhanced in agriculture, energy and pharmaceutical sectors. He stated that visits of business delegations should also be encouraged to explore markets. In this connection, he invited business delegations from Argentina for meeting with their Pakistani counterparts. Bakhtawari said Pakistan’s exports to Argentina did not make significant improvements in recent years which meant there was a need to undertake frequent activities such as people to people contacts, organising country exhibitions, participation in fairs, seminars and workshops to ensure a continuous liaison.
goods, leather goods and other industrial products, he said. He observed that this crucial development will help
stakeholders anticipate future developments in an increasingly challenging global economy and enable diversifica-
tion of exports, thereby increasing their resilience amidst the current economic meltdown.
OnLIne
Iran offers energy at 10 cents to Pakistan, says progress on IP gas pipeline slow Embargoed Tehran wants banking ties with Pakistan g KCCI sees need for Karachi-Tehran Joint Chamber of Commerce and Industry g
KARACHI ISMAIL DILAWAR
Iran Thursday said progress on the mega project of Iran-Pakistan (IP) pipeline project was slow and being affected by international pressure and other factors. Further, Tehran expressed a strong desire for establishing banking channels with the neighbouring Pakistan for which Iranian side had held several meetings with last four governors of the State Bank of Pakistan. Also, the Karachi Chamber of Commerce and Industry (KCCI) called for the setting up of Karachi-Tehran Joint Chamber of Commerce and Industry to explore the huge trading potential between the two bordering countries. “The progress on mega project on cost sharing basis between the two countries is slow,” Consul General of Iran in Karachi Abbas Ali Abdollahi told a farewell reception held here by KCCI in honour of the outgoing consul general on the completion of his 29 months assignment in the city. Abbas said Iran had laid 1200 kilometres pipelines from Bander Abbas up to Balochistan border, but international pressure and other factors were affecting the progress on the “peace pipeline”. He said Iran being next door neighbour could give energy in 10 cents to Pakistan. The consul general hoped that international sanctions against his country won’t affect historical relations between the two brotherly Muslim countries. “In future a lot of avenues of mutual cooperation would open,” he said adding Pak-Iran friendship would further strengthen in future. Abbas, however, said unlike political relations bilateral trade ties between Pakistan and Iran were not reflecting the existing potentials due to the sanctions. The consul general said he had held several meetings with last four governors of the SBP on the establishment of banking channel between the two countries. The Bank Milli of Iran could open its branches in Pakistan and in reciprocity National Bank of Pakistan could do the same in Iran, he said.
He viewed Pakistan’s banking channels were established with various countries worldwide thus with Iran should not be neglected. He said top leadership and ministers do have the will to cement ties whereas progress on the implementation side was slow. He asserted that initiatives were required to formalize undocumented trade between the two countries. About the regional blocks, the Iranian consul general said the ECO was not much vibrant as compared to RCD. He opined that there should be no embargo on Pak-Iran trade as other countries of the world were doing trade with Iran. He said Iran’s trade with other regional countries was higher as compared to Pakistan. Pakistani rice, wheat, fruits, dry fruits, mangoes, textiles items, petrochemical, livestock, meat, dairy had a great demand in Iran. Talking to Abbas, President KCCI Muhammad Haroon Agar stressed the need for the establishment of Karachi-Tehran Joint Chamber of Commerce and Industry. Agar urged the governments of Pakistan and Iran to introduce banking channel and make arrangements for currency swap to enhance bilateral trade. He said the business transactions between Iran and Pakistan were routed through Asian Clearing Union which was more time-consuming than a normal Letter of Credit. While opening an LC through
Iran’s sister companies in Dubai also adds to cost, he said. The KCCI chief also stressed the need for taking measures such as economic integration and reduction in transaction costs, port-to-port activities and customs mechanism to expand the volume of bilateral trade. He urged to activate and develop regional trading block of ECO countries, particularly between Pakistan, Iran and Turkey. He proposed that the trade between Pakistan and Iran should be permitted in local currencies instead of dollars and the trade through railways and road be regularized. Agar viewed that Pakistan being energy-hungry country should seriously consider implementation of Iran-Pakistan Gas pipeline project which is burning need for Pakistan to overcome the energy crisis and for industrialization. He also called for deepening of the existing Preferential Trade Agreement which was signed in 2004 to be followed by a Free Trade Agreement. Upon agreement or on arrangements of barter trade Iran may export electricity and petroleum products to Pakistan. He underscored the need of regular exchange of trade delegations and organizing of exhibitions to enhance bilateral trade. He emphasized on the need of documentation of trade and formalize it through Balochistan border from where presently barter trade was in practice.
ECC meeting: Wheat support price and sugar export allowance increased g g
Weekly POL price adjustment abandoned Balochistan gets subsidy on tube wells IslAmAbAd StAff RepORt
Economic Coordination Committee (ECC) of the cabinet met on Thursday following which the support price of wheat for the next crop was increased to Rs 1200 per 40 kilogrammes against last year’s price of Rs 1050. Under the chairmanship of Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Sheikh, the members were informed that international prices of wheat were much higher which resulted in smuggling to neighbouring countries. It was brought to the committee’s notice that prices of inputs had risen during the last year and therefore to facilitate and encourage wheat growers it was essential to increase the support price. The ECC also approved the commerce ministry’s recommendation for reduction in the age limit of importing used cars from five to three years. The ECC decided that the decision will be effective from December 15, 2012 in order to facilitate the in process orders. The measure will provide relief to the local auto vendors industry which was deteriorating due to the import of used cars. The ECC allowed export of a total of 400,000 Mega Tonnes (MT) of sugar, an increase of 64,166 MT over its previous decision. The committee was informed that there was a huge surplus of sugar in the country and a bumper crop of sugarcane was expected this year. The measure has been approved in order to improve the liquidity position of sugar mills so that sugarcane growers are paid on time at the rate fixed by the government. The ECC further restored the agricultural tube wells subsidy in Balochistan. Under the approved procedure the tube well owners would pay Rs 6,000 per month. The federal government would pay 40 percent, and the Balochistan government 60 percent of the remaining amount. For bills over Rs 50,000, the excess would be paid by the tube well owner. The number of tube wells would remain static at 15,660. The decision will be effective from December 1, 2012. The shares assigned in the above arrangement will be reviewed after two years to lessen the burden on the federal government and transfer it onto the Balochistan government corresponding to the provincial share it receives from the divisible pool. Additionally, existing tube wells are to be replaced by solar tube wells. In line with the National Assembly’s resolution to discontinue the weekly price adjustment system of petroleum products, the ECC decided to abandon the prevailing weekly pricing system. However, a committee comprising of ministers for law and justice, petroleum and science and technology was formed to consider and suggest a pragmatic mechanism for POL pricing that will be considered in the next ECC meeting. The ECC also considered the summary of ministry of port and shipping to strengthen the Pakistan National Shipping Corporation (PNSC) and to make it a vibrant national carrier. The committee decided to reenforce the recommendations of the Kazi Committee with full force which included all public sector cargoes to be carried by PNSC and all government departments, autonomous and semiautonomous organisations to utilise the services of PNSC for carrying their cargoes. PNSC is to act as the shipping agency for all ministries, autonomous and semiautonomous departments of the government. Organisations like PSO, TCP and PSM should have long term contracts of shipping on a market based formula as was being done successfully with refineries.
PRO 23-11-2012_Layout 1 11/22/2012 11:32 PM Page 2
Business 02 Marble City venture to strengthen stone, granite sector of Sindh: SBI chief KARACHI StAff RepORt
Sindh Board of Investment (SBI) Chairman Muhammad Zubair Motiwala on Thursday said the marble city project would have remarkable investment and growth potential for entrepreneurs for it is based on high-end technology, innovation and services in the stone and granite sector of Sindh province. He said this while presiding over a departmental meeting at his office. Motiwala said Sindh government, through SBI, had already procured 300 acres of land near northern bypass for the development of a state-of-the-art industrial enclave to boost economic activities in this under-developed sector with more jobs to be created. He said preliminary survey and need assessment study had already been conducted. Earlier, SBI Director Project Abdul Azeem Uqaili informed the chairman that the Request for Proposal (RFP) was issued to the short listed consulting firms and consortiums to carry out the feasibility study with technical viability, transaction analyses, commercial development plan and other technical and transaction related activities. The proper study by the final short listed consultancy firm would facilitate in successfully materialising this project in the shortest possible time.
ECC age restriction on used car imports to boost local auto industry: analysts KARACHI
E
ISMAIL DILAWAR
CONOMIC Coordination Committee (ECC) in its Thursday’s meeting decided to revise downward, the age limit of imported used cars to three years which market observers dubbed as a positive move for the local auto industry. The impact of the ECC decision was visible in the equity market where the benchmark 100-share index closed bullish gaining 18 points. The analysts attributed this positive trend, partially, to the ECC’s move on auto industry that attracted investors’ interest in the scrips from automobile sector. “ECC announcement on car imports restriction beyond three years-old invited interest in auto sector,” said Ashen Mehanti, a senior equity analyst and director at Arif Habib Securities. Previously, the importers were allowed to import cars of up to five years of age that, the analysts said, had adversely impacted the sales of local automobile companies. The buyers, finding the 5year old cars cheaper, were prioritising importing used cars from abroad instead of going for new ones in the local market. According to researchers at Topline Research, benefiting from the age relaxation, the importers during fiscal year 2012 had imported around 56,000 units compared to 20,000 units in the fis-
cal year 2011. “The imports were highly skewed toward five years old cars for being cheaper of the alternatives,” said Zeeshan Afzal, a Topline analyst. The analyst said the availability of a cheap substitute and rising inventory levels in the market decreased the local auto industry’s sales by 31 percent to 40,000 units during first four months of FY13. The corresponding period last year had seen the sale of 59,000 units, Afzal recalled. This clearly indicates that the government has tried to appease the local auto assemblers at the expense of consumers who, after Thursday’s decision of ECC, would not be able to import cars that are older but much cheaper than what the local industry was offering them. However, apparently, applying a sales-centric approach the market observers opine that the development would augur well for the local auto industrialists. “The development bodes well for local automobile industry,” said the analysts. They, however, expect a lag reflection in terms of sales in the local market because of the availability of high inventory of used cars in the market. “The move would also allow them to pass on the cost pressures,” said Afzal. According to Abdul Azeem, a research analyst at InvestCap Research, the government’s restriction of the import of used cars of more than three-years of age was a positive sign for the local automobile sector.
SCCI chief hails Pak validation for ratification of visa regime lAHORE App
President SAARC Chamber of Commerce and Industry (SCCI) Vikramjit Singh Sahnay on Thursday hailed Pakistan for validating ratification of visa accord with India. In a message sent to SCCI VP, Iftikahr Ali Malik, SCCI chief said that it was a bold and historic decision by Pakistan to simplify the cumbersome procedure for the grant of visa with a view to promoting people to people contact. He said that epoch making decision by Pakistan will help enhance trade and boost business
activities between the two countries. He said that multiple entries on one year visa with exemption from police report and increase in the number of cities for visa holders will ensure smooth and frequent exchange of traders’ delegations of private sectors. Sahnay said the visa regime agreement singed by the former Indian External Affairs Minister SM Krishna and Pakistan Interior Minister Rehman Malik will prove to be a milestone in the economic history of both countries for further cementing Pak-India relations and strengthening trade in addition to taking full benefits of technical expertise in different
fields. He said that free movement of business community will not only help improve the business environment but also positively affect the entire region of South Asia. SCCI chief said that Pakistan and India, with the support of their private sectors, had taken historic steps to normalise bilateral trade relations. He said South Asia is the fastest growing region in the world but also one of the least integrated, while the region’s trade with rest of the world is growing rapidly, intra-regional trade is merely 5 percent of its total trade. Sanhay said that despite being
natural trade and investment partners, the volume of trade between Pak-India, the two largest economies of the region, has been extremely low. He said that bilateral trade between Pak-India a couple of years ago stood at an estimated $1.83 billion. India accounts for nearly 1.2 per cent of Pakistan’s global exports, while Pakistan accounts for less than 0.9 percent of India’s global exports, he said. Malik said that the private sectors of both countries have to play a key role in the prevailing scenario for viable and sustainable trade relations and for welfare of the people of the region.
Major Gainers COMPANY Island Textile Bhanero Tex.XD Millat Tractors Ltd. Siemens Pakistan Colgate Palmolive
OPEN 687.34 226.00 558.84 740.00 1290.00
HIGH 721.70 237.30 578.00 750.00 1301.00
LOW 720.00 237.30 559.00 747.00 1300.00
CLOSE CHANGE 721.70 34.36 237.30 11.30 569.80 10.96 750.00 10.00 1300.00 10.00
TURNOVER 500 1,600 38,000 1,700 400
1400.00 550.00 315.00 152.00 123.00
1311.50 522.50 315.00 147.25 120.57
1352.50 538.91 315.00 147.38 120.57
-27.50 -11.07 -10.00 -7.62 -6.34
900 1,200 100 1,200 83,500
6.44 6.88 16.35 14.70 8.49
5.70 6.63 15.40 13.75 8.01
6.16 6.70 16.10 14.25 8.28
0.51 -0.07 0.23 0.30 0.02
36,529,000 23,695,000 12,298,500 9,255,000 9,093,500
Major Losers Bata (Pak) XD 1380.00 Indus DyeingXD 549.98 Sanofi-Aventis Pak 325.00 Murree BreweryXDXB 155.00 IGI Insurance 126.91
Volume Leaders K.E.S.C. Fauji Cement Jah.Sidd. Co. Maple Leaf Cement Azgard Nine
5.65 6.77 15.87 13.95 8.26
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.9684 152.7433 1.1679 122.6572
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
SELL
96.91 124.47 152.45 1.1756 95.64 12.21 26.38 25.84 98.61
94.59 121.49 154.24 1.1469 97.26 12.43 25.22 25.21 101.22
NA body recommends removal of MD PSO IslAmAbAd OnLIne
A parliamentary panel on Thursday recommended removal of Pakistan State Oil (PSO) Management Director (MD) Naeem Yahya Mir for his dual nationality and ineligibility for the post. Convener Jamshed Dasti said expressed concern over PSO MD holding dual nationality and running the business of the largest oil agency in the country. The committee demanded removal of Mir for he may take any decision against the national interests of the country and later flee abroad. Dasti asked additional secretary Abid Saeed to remove Mir from his position otherwise he would go to the Supreme Court to raise the issue. The committee was expressed annoyance at the news of oil theft of over Rs 320 million from the system of OGDCL. In this regard, OGDCL MD Masood Siddiqui informed the parliamentary panel that two officials were involved in the act and those officers had been suspended while a reference had been sent to National Accountability Bureau (NAB) against them. OGDCL MD was directed to give complete report in this regard and to remove ghost officials from the organisation and avoid all kinds of political pressure from any side.
CORPORATE CORNER Mobilink Foundation provides 1000 school bags for children in Lahore and Karachi
KARACHI: Mobilink distributed 1000 school bags to underprivileged students in the cities of Lahore and Karachi in line with continuing celebrations of Universal Children’s Day. The initiative was taken under the umbrella of Mobilink Foundation to extend support to children who are denied formal schooling opportunities due to financial reasons or social exclusion. Mobilink Torchbearers, comprising Mobilink’s employee volunteers, took part in this initiative to hand over school bags to students at DSRA Education Trust in Karachi and Green Land School in Lahore. In his message for the occasion, Omar Manzur, Head of Corporate Communications, Mobilink noted, “The initiative is a testimony to Mobilink Foundation’s commitment to both the children of Pakistan as well as the environment we live in.”
Etihad Airways wins Airline of the Year honours KARACHI: Etihad Airways, the national airline of
the United Arab Emirates, won Airline of the Year at the sixth annual Aviation Business Awards, held in Dubai. This is the second time Etihad Airways has picked up the award, beating three other Gulf carriers. The airline last won in 2010. Etihad Airways was lauded for its success over the past 12 months, including: new route launches, aircraft investment, on-time punctuality, its customer loyalty program, network of alliances and market innovation. Etihad Airways’ Chief Commercial Officer, Peter Baumgartner, said the airline was delighted to win the title. “For Etihad Airways being named Airline of the Year is the icing on the cake in what has been a record-breaking 12 months for us. It is testament to the strength and success of our global strategy, the professionalism and hard work of our team, and the inspirational travel experiences we offer our guests.”
building enterprise in a world of intensifying conflicts. DS-Concept team along with the top management of various financial institutions participated in an interactive and informative session throwing light on major problems of financial sector, at a local hotel in Karachi. Former finance minister, Mr. Shaukat Tarin in his keynote discussed the economic challenges facing Pakistan and proposed some solutions to step ahead in the year 2013 and the way forward. Chief learning officer Ideas Consulting & Life time master trainer, Dr. Sunil Gupta from India tangled the conference member in an interactive activity transforming the way of thinking to overcome the problems in the best possible way.
Pakistan facing challenges in economic growth: DS Concept
Qatar Airways first Boeing 787 commercial service takes off to Dubai
KARACHI: Pakistan’s economy face dramatic changes, business and local leaders are struggling with uncertainties and deepening conflicts. The business leaders conference focused on the leadership capabilities that are increasingly essential for
KARACHI: Qatar Airways began commercial services of its brand new Boeing 787 aircraft with Doha – Dubai becoming the Dreamliner’s debut route. The state-of-the-art aircraft is being deployed on four daily rotations between the two cities marking a new era for Middle East aviation as Qatar Airways is the Boeing 787 launch customer in the region. Flight QR 106 took off from Doha International Airport at 0800 hrs for the one hour journey to Dubai. Qatar Airways’ newest addition to its fleet heralds the start of an exciting new era for travellers worldwide with unparallel levels of comfort and luxury onboard Boeing’s next generation aircraft. Qatar Airways has orders for 60 Dreamliners. The
next four 787s are due to join the fleet by the end of December. Qatar Airways Chief Executive Officer Akbar Al Baker said the maiden commercial route marked yet another exciting achievement for the award-winning airline.
PIA rejects media reports KARACHI: The happenings to PIA flight PK 787 of 18 November have been dramatized and sensationalized by the media to extract mileage. This is to put them in the correct perspective. All airline pilots are trained to safely fly and land an airplane following an engine failure during the critical phase of taking off. This proficiency is checked on full flight simulators every six months. The left engine of PK 787 failed after takeoff when climbing through 1200 feet. It suffered an engine stall, likely due to an internal malfunction. A stalled engine behaves like a badly tuned back-firing car engine. It produces loud bangs and sparks like a back-firing car engine. A stalled jet engine sometimes can behave and run normally when power is reduced, as it did on this particular flight. The pilots reduced engine power, and the stalling stopped. They completed required procedures and landed back at Karachi where a replacement airplane was available. To summarize the facts: The engine was never on fire, as media reported, it simply stalled due to internal reasons which will be investigated. The engine was not even shut down by the crew. Only its power was reduced. The pilots landed the airplane with both engines running, after completing their procedures. A review of the recorded flight data reveals normal, legitimate handling of the airplane. All data and investigation of the engine stall reasons will be shared with the Civil Aviation Authority, as is required by the regulations.
Friday, 23 November, 2012