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Thursday, 24 January, 2013
Textile group exports increase by 8.55 percent in six months ISLAMABAD
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ExTILE group exports from the country during the first two quarters of current financial year posted a positive growth of 8.55 percent as different textile products worth US $ 6.4 billion were exported against US $ 5.9 billion in the same period last year. According to latest figures released by the Pakistan Bureau of Statistics (PBS), exports of cotton yarn during the period from July-December 2012 grew by 39.0 percent as compared to the same period last year. During the period under review, the country earned US $ 1.09 billion by exporting about 366,108 metric ton cotton yarn which was recorded at 2,417,738 metric ton worth US $ 0.7849 billion in the first 6 months of the last financial year. Meanwhile, the exports of cotton cloth from the country increased by 12.08 percent and about 912,134 thousand SQM cotton cloth worth US$ 1.295 billion was exported as compared 928,693 thousand SQM cotton cloth worth US $ 1.156 billion in the same period last year, it added. During the period from July-De-
PAC for recovery of TA/DA from former commerce minister ISLAMABAD
cember 2012 about 8,076 metric tons of yarn other than cotton yarn was exported which was up by 53.94 percent against the exports of the period from July-December 2011. The country added US $ 26.44 million by exporting yarn other than cot-
ton which was recorded at US$ 17.176 million in the same period of last financial year, the data revealed. Other textile products which registered positive growth in their exports included knitwear by 0.19 percent, towels by 12.77 percent while bed wear
exports decreased by 7.16 percent, the data added. The textile group products exports which went down during the first six months of current financial year included raw cotton, by 51.46 percent, and cotton carded or combed, by 85.13 percent, it added.
Reckitt Benckiser celebrates 60 successful years in Pakistan KARACHI
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Staff RepoRt
Public Accounts Committee (PAC) issued directives for recovery of millions of rupees paid to former commerce minister Haroon Akhtar and officers of commerce ministry illegally on account of TA/DA. PAC met on Wednesday under its chairman Gondal in Parliament House to review the audit observations in respect of accounts of ministries of inter-provincial coordination, defence and commerce. Commerce secretary told the committee that no law was in place to run the affairs of Export Market Development Fund (EMDF). Due to lack of proper legislation, financial irregularities are rampant in the ministry, he said. The committee was told that over 20 million rupees were paid illegally to former commerce minister, commerce secretary and other officers of the ministry from Export Market Development Fund (EMDF) in advance as TA/DA in connection with their foreign trips. 2500 Euros were paid to a cameraman of a state run TV channel, the committee was informed. The committee directed that the said amounts be recovered from the concerned persons and the name of the persons found responsible be placed on the website besides initiating action against them.
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. 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.” Mr Caizzone said RB Pakistan is going to set up a manufacturing facility in Karachi, regardless of the persistent energy crisis in the country. “Decisions like these are not taken for the short term. We’re investing heavily in Pakistan because we have a positive outlook on this country,” he said. “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 Australia. “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 a
middle class that is visibly emerging and has more spending power today than it did five years ago”, Mr Caizzone commented. He acknowledged that Pakistanis are passionate, driven and talented individuals who are able to outperform in any challenging environment. Therefore, Pakistan is a major export hub of talent in RB World and every year 8 to 10 employees are exported to various markets globally. Every year RB contributes over Rs.1.7billion 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 Plc, a global consumer goods leader in Health, Hygiene and Home, having operations in over 60 countries and headquartered in the UK.
Hafeez stresses accelerating collection of tax revenue ISLAMABAD: Finance Minister Abdul Hafeez Shaikh has stressed the need for accelerating collection of tax revenue to achieve the revenue target. Presiding over a meeting of Tax Reforms Coordination Group in Islamabad on Wednesday‚ he hoped that Federal Board of Revenue will achieve the tax collection target. The meeting also discussed various proposals to facilitate business‚ reduce cost of doing business‚ avoid economic burden‚ harmonise tax laws and promote industry. nni
FBR detects Rs 1.8b fake refund claims in 2013, NA told ISLAMABAD: State Minister for Finance and Revenue Saleem H Mandviwalla on Wednesday informed the National Assembly that Federal Board of Revenue (FBR) has detected 81 cases worth Rs 1.8 billion of fake refund claims in 2013. Replying to a Calling Attention Notice raised by Shireen Arshad, Nisar Tanveer and others regarding adjustment of three billion rupees against input by the FBR on fake invoices to bogus individuals and companies, he said that investigation were being carried out to thoroughly probe the issue besides black listing companies involved in the scam. The minister said that a latest modern computerized system was being installed across the country to stop bogus refund cases and it would be fully functional by March. To a question, he said FIRs have been registered and their outcome would be placed before the House after investigation. app
Stocks close higher, rupee steady, o/n rate rises KARACHI: The Karachi stock market closed higher on Wednesday, with stocks in cement companies leading the way ahead of company results. The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.09 percent, or 14.58 points, higher at 16,908.67. Fauji Cement rose 0.81 percent to 7.45 rupees per share. In the currency market, the Pakistani rupee ended almost steady at 97.68/97.73 against the dollar, compared to Tuesday’s close of 97.70/97.74. Overnight rates in the money market ended at 9 percent compared to Tuesday’s close of 8.50 percent. Staff RepoRt
Mauritius offers huge opportunities to Pakistani entrepreneurs: HC ISLAMABAD nni
Future relations between Pakistan and Mauritius should be based on market access and trade, especially in context of Mauritius acting as a gateway to African markets for Pakistani products said High Commissioner of Mauritius Muhammad Rashad Daureeawo during a meeting with Islamabad Chamber of Commerce & Industry (ICCI) President Zafar Bakhtawari at Chamber House. Daureeawo said that Mauritius has a population of only 1.5 million but attracts around 1million tourists annually due to a peaceful and good environment. The High Commissioner also called for exchange of business delegations to in-
crease bilateral trade and dissemination of trade-related information. High Commissioner said that legal framework for resolution of trade-related disputes has been very strong in Mauritius that provides a visible advantage to foreign businessmen. He said Mauritius topped World Bank’s ease of doing business ranking because the tax regime has been very soft and encouraging. He said Mauritius is ranked high in terms of competitiveness, investment climate, governance and a free economy, adding that the government of Mauritius provides free education to its citizens from pre-primary to tertiary levels which makes Mauritius a regional knowledge hub and a centre for higher learning and excellence.
In his welcome address, Bakhtawari lauded the dynamic role of Mauritian High Commissioner in strengthening Pakistan-Mauritius bilateral relations and said that geographically Mauritius is far from Pakistan but culturally and socially both countries have very strong ties as majority of its citizens migrated from the subcontinent. He said both countries were enjoying good relations but there was still more that needed to be done and observed that trade should not be restricted to a few subjects as current volume of trade was much below its potential. Bakhtawari was of the view that Mauritius was turning into a financial and trade hub for emerging Africa, therefore, we could use it to make inroads in African
market as Africa is very rich in raw materials and many countries are already trying to benefit from it. The ICCI President said that there was a huge scope for expansion in trade and the private sector has the responsi-
bility to be a front-runner in creating new avenues of establishing trade and investment relations between Pakistan and Mauritius, adding that Pakistani goods had the potential to win a respectable place in Mauritius’ market.
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Thursday, 24 January, 2013
Oil prices down in Asian trade SINGAPORE
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IL prices dipped in Asian trade on Wednesday as investors locked in profits from recent gains.
New York’s main contract, light sweet crude for delivery in March, was down 16 cents to $96.52 a barrel and Brent North Sea crude for March delivery shed 20 cents to $112.22. Prices had ended higher in overnight trades on signs of stronger economic growth in Europe and fresh economic stimulus measures announced by the Japanese central bank. Over the longer term, oil is likely to be supported by encouraging news from Europe, the US and Japan, analysts said. A survey published on Tuesday showed that German investor sentiment struck the highest levels since the start of the eurozone debt crisis in 2010 as the outlook for Europe’s top economy continues to brighten. The Bank of Japan, under pressure from Japanese Prime Minister Shinzo Abe to devalue the Yen, adopted a 2 percent inflation target and announced plans to begin open-ended asset purchases next year in a bid to kick-start the struggling economy. In the United States, fears of a political gridlock over fiscal issues appear to have eased. Fiscal difficulties are “still there but the risks of falling off a cliff are much lower than in December,” DBS Research said in a market commentary. “Moreover, Republicans appear to be
Higher fuel prices to increase cost of production: FPCCI
Major Gainers OPEN COMPANY Nestle Pakistan Ltd. 4600.00 UniLever Pak 9900.00 Bata (Pak) 1285.00 MithchellsFruit 325.50 Gatron Ind. 168.26
HIGH 4830.00 9949.99 1347.90 341.77 176.67
LOW 4750.00 9949.99 1280.00 340.00 168.26
CLOSE CHANGE 4776.25 176.25 9949.99 49.99 1313.95 28.95 341.77 16.27 176.67 8.41
TURNOVER 160 20 100 1,200 3,500
1424.00 81.00 103.85 85.49 593.99
1424.00 80.75 98.00 81.22 589.02
1424.00 81.00 98.71 82.43 590.16
-74.75 -4.00 -3.48 -3.06 -2.84
50 2,500 22,000 8,500 7,800
7.59 17.07 16.48 2.95 92.74
7.28 15.91 15.62 2.42 88.41
7.48 16.86 16.34 2.80 90.37
0.09 0.64 0.65 0.37 1.83
35,118,000 28,101,500 21,161,000 14,020,500 11,239,200
Major Losers Colgate Palmolive Biafo Industries IGI Insurance Agriautos Indust Millat Tractors Ltd.
1498.75 85.00 102.19 85.49 593.00
Volume Leaders Fauji Cement Maple Leaf Cement Jah.Sidd. Co. Telecard Limited Engro Corporation
7.39 16.22 15.69 2.43 88.54
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.7123 154.5515 1.1023 129.9671
Dollar East BUY
backing away from limit. Increasingly shutting down the spending demands
a showdown on the debt they view the threat of government-unless their are met-as counter-pro-
ductive,” it added. “More and more of the right words are being heard and to the extent markets are rebounding from excessive fiscal fears, this is more soothing music”.
World’s tea producers brew up a plan to raise prices
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Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has stated that increased prices of petroleum products would push cost of production and eventually lead to cuts in export orders. FPCCI President Fazal Qadir Sherani told said on Wednesday that increase in petroleum products’ prices has disturbed the industrial sector, especially the manufacturers, already hard hit by high input costs. In addtion to this, prolonged gas and power load shedding as well as a weak rupee against dollar also hampers work. “All this would hamper industrial production in the country,” said Sherani. SAARC Chamber of Commerce and Industry Vice President and veteran trade leader Iftikhar Ali Malik said the industry is already facing energy crisis,and higher electricity tariffs and prices of petroleum at this critical juncture would squeeze liquidity. He said high tariff on power, gas and petroleum have created another liquidity crunch for importers of industrial raw material. He suggested that keeping in view the business scenario of the world, high rate of mark up by banks be reduced to single digit to provide solace to the hard hit industry. He called for immediate corrective measures in the interest of national industry.
Business 02
COLOMBO agencieS
The price of a cup of tea could rise after the world’s biggest producers agreed to join forces to boost profits, a Sri Lankan minister announced on Wednesday. After two days of talks in Colombo among Sri Lanka, India, Kenya, Indonesia, Malawi and
Rwanda, which account for more than 50 percent of global production, the nations announced the formation of the International Tea Producers’ Forum. Sri Lanka’s Plantations Minister Mahinda Samarasinghe said exporting nations had been trying to establish a forum for 80 years. “In that context, what we have just achieved is a historic land mark in the tea industry,” he said. Efforts will initially focus on sharing knowledge and boosting demand for tea to raise prices, but he suggested more sophisticated-and controversial-methods such as supply controls would be raised in the future. Production quotas “are not part of the objectives listed in the constitution, but I am sure these are matters which will be discussed some time in the future,” he added. In 1994, Colombo proposed a tea cartel on the lines of the Organization of Petroleum Exporting Countries (OPEC), the crude oil cartel dominated by Saudi Arabia, but there was no unity among producing nations at the time. “Price stability is one of the objectives to improve the livelihoods of tea small holders (farmers owning small plots of tea),” he said. “Another objective is to ensure high quality standards”. Samarasinghe explained that unity among producers was “very important from a variety of aspects like foreign exchange earnings, income generation, employment opportunities and several other very useful aspects”.
PAEC to produce 8,800 MW by 2030
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Pakistan Atomic Energy Commission (PAEC) envisages production of 8,800 MW by the year 2030 through nuclear power reactors. Two nuclear power plants, 340MW each, are under construction at Chashma and expected to be commissioned by 2016 with Chinese assistance. Construction of these power plants became possible after a long-standing agreement, while three other nuclear power plants already commissioned in the
country are performing well. According to official sources, the allocation for PAEC is almost 11% of the total federal development budget estimated at Rs 360 billion for the financial year 2012-13. Officials said a major chunk of the PAEC budget has been allocated to two nuclear power plants. “An amount of Rs 34.6 billion has been set aside for Chashma Nuclear Power Plants, C3 and C4. The total cost of these two projects is Rs 190 billion which will be partially funded by a Rs 136 billion Chinese loan. The government has so far spent Rs 62.4 billion on the mega project having a 660 MW generation capacity. With Rs 34.6 billion additional spending, the government will be able to complete almost half of the work by June 2013, an official said. According to an official in Ministry of Science and Technology, government is harmonising the efforts made in the energy sector by different ministries, departments and research centres by creating an ‘Energy Council’ with heads of relevant organisations. The council will be entrusted to advise on priority areas for Research and Development (R&D) and management of resources and to fill the gaps. Acquisition of technology for building nuclear power reactors through R&D, as well as transfer of technology agreements is also in consideration, he said.
We will end trade relations with Pakistan: ACCI KABUL nni
The Afghan Chamber of Commerce and Industries (ACCI) said it will end trade relations with Pakistan following a long-running dispute over containers stalled at the Karachi port. “Despite so much effort, the government has now failed to resolve our problems with Pakistan and we are forced to end our relations with Pakistan,” ACCI deputy Khan Jan Alokozay said. Alokozay said traders were losing as much as US $600,000 a day over the matter and will encourage Afghan traders to discontinue doing business via Karachi. ACCI officials have asked the Afghan government to prevent Pakistani-loaded vehicles from entering Afghanistan, even those whose destination is a different country.
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
98.40 129.73 154.65 1.0971 97.81 12.44 26.60 26.10
SELL 99.10 131.83 157.11 1.1139 100.02 12.71 26.98 26.42
CORPORATE CORNER Tetra Pak Lahore achieves world class manufacturing in 2 years LAHORE: Tetra Pak, the world’s leading food processing and packaging company, has awarded its Lahore factory in Sundar Industrial Estate the Factory of the Year award in recognition of its achievement in operational efficiency, environment and safety performance within two years since it commenced operation. “We created a stake in the ground by making this major investment of Rs 10.92 billion (92 million Euros) in Pakistan, and the hard work and dedication of our local people have proved us right. By pursuing continuous improvement in operation, our factory has outperformed previous benchmarks in world class performance and productivity. I am confident that our team will build upon this success and continue to exceed the expectations of our valuable customers,” remarked Stefan Johansson, Managing Director Tetra Pak Pakistan. “I am pleased to be a part of the winning team and I believe, passion of our people and mental fortitude is the driving force behind our success in such a short span of time,” remarks Tahir Hafeez, Factory Director. pR
JWT, EPOS sign agreement for shopping portal
KARACHI: JWT Pakistan and EPOS, a division of Pakistani fashion retailer Labels, have signed an agreement establishing an e-commerce shopping portal named easestore.com. This partnership marks the first time an advertising agency has gone into e-commerce in Pakistan, and marks the emergence of JWT as a major player in the digital space. EPOS’s parent company, Labels, is one of the larger players in the domestic e-commerce industry, and JWT Pakistan has a client base that covers almost every consumer goods category. JWT clients will be offered priority access to easestore.com as a preferred online retail channel. More than 29 million people in Pakistan now access the Internet, which represents about 15% of the population. While Internet penetration is starting to take off, the country’s e-commerce sector is still in its infancy, giving easestore.com an early mover advantage. The partnership agreement was signed last week by Labels CEO Zahir Rahimtoola and JWT Pakistan, CEO Mansoor Karim Shaikh. JWT Pakistan has been investing heavily in digital assets over the last year. The company set up JWT Fusion, a digital marketing unit, in the last quarter of 2012. That unit will spearhead digital strategies and execution for the e-commerce venture, easestore.com, within JWT. JWT also took a stake in Converge Technologies, Pakistan’s leading digital advertising company, in March 2012. “We believe 2013 is the year for digital in Pakistan, and JWT is poised to bring our clients a full range of digital services from branding to e-commerce,” said Karim. pR