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BUSINESS Sunday, 24 February, 2013
Khoro urges investment in Sindh agri sector
KARACHI: Acting Governor Sindh and Speaker Sindh Assembly Nisar Ahmed Khoro has said that the province has a lot of potential in agro-based sectors and it is need of the hour that local and foreign investors should be invited to invest in these sectors. This he said while addressing inaugural ceremony of the Livestock, Dairy, Fisheries, Poultry, Agriculture and Culture Exhibition (LDFA-2013) at expo center Karachi here on Saturday. On this occasion a cheque of Rs.300 million was given to Deputy Governor State Bank for modernization and restructuring scheme for Rice Husking Mills in Sindh. The farmers of the province can borrow soft loans from National Bank of Pakistan, Sindh Bank, Allied Bank Limited, HBL, UBL and MCB. He said: “We should try to find out international markets for these agro-based products to earn foreign exchange. We could not find international markets due to low quality products. Our country has been bestowed with the countless resources by the nature, but we have wasted time like 12 years wasted so far and we could not use the coal reserves we have in Sindh.” Chairman Sindh Board of Investment Muhammad Zubair Motiwala speaking on this occasion said that rural areas of Sindh have immense potential for investments and utilizing these opportunities would not only stop influx to cities but employment opportunities could also be generated. He stressed upon using modern technology in agriculture sector and urged private sector to tape the potential of Sindh. He said having overcome the dearth of water, improving infrastructure, creating awareness we could enhance our growth rate in livestock, dairy, fisheries, agriculture and other agrobased sectors. PPI
First e-commerce web portal launched ISLAMABAD: Pakistan Gems and Jewellery Development Company (PGJDC) has launched first ecommerce web portal at its head office. Development of the ecommerce portal is in continuation of various effective marketing and branding initiatives, which the company has taken to facilitate the gems and jewellery industry of the country. According to official sources,the charter of Pakistan Gems and Jewellery Development Company is to enhance the value chain productivity of gems and jewellery industry from mine to market. "PGJDC aims at increasing export through facilitation, technology upgradation, skill development and marketing initiatives". With adequate support from the government, Pakistan Gems and Jewellery Development Company is successfully realizing these objectives and providing required infrastructure for the gems and jewellery industry, official said. APP
Direct air link from Guangzhou to Karachi should be set up for further improving Sino-Pak bilateral relation. — ICCI President Zafar Bakhtawari
SBP pours Rs 460b into banking system to replenish liquidity KARACHI IsmAIl DIlAwAr
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HE cash-strapped government seems to have sucked up all of the liquidity available with banks, which are nowadays showing unusual restraint in investing in risk-free government securities. Instead, Friday saw the central bank injecting Rs 460 billion in the apparently liquidity-scarce banking system. The latest billions pumped into banking might be a half-hearted move by the State Bank of Pakistan (SBP), as Governor Yasin Anwar had cautioned against such injections in his last monetary policy statement. The banks submitted 38 bids to the central bank to partially offload their government papers’ stocks, demanding an annual rate of return ranging between 8.81 and 9.05 percent. However, the SBP, acting on behalf of the Finance Ministry, accepted 33 of the total bids to inject Rs 460 billion at 8.86 percent through conducting reverse repo operation of seven days maturities. If results of the outgoing week’s open market operation (OMO) and T-bill auction conducted by the SBP on February 19 and 20 respectively are the criteria, one can aptly surmise that the banks are either facing an acute liquidity crunch or they are more cautious in their transactional dealings with a relatively more critical regulator. On February 19, the central bank tried to mop up some cash from the banking system for three days but the banks did not submit even a single bid. This made senior analysts like Asfar Bin Shahid believe that the profit-conscious banks were avoiding blocking their funds for three days and were losing out in bidding for treasury bills scheduled on the very next day – February 20. Interestingly, the banks also remained off the mark in Wednesday’s auction and offered bids worth Rs 99.442 billion only. The amount offered was Rs 76 billion less than
SBP’s Rs 175 billion quarterly target. The bids submitted in February 20 auction depict that the risk-averse banks are reluctant to make long-term investment as they offered only Rs 240 million to purchase T-bills of 12 months maturity. Their hot pick were the three-month secu-
If results of the outgoing week’s open market operation (OMO) and T-bill auction conducted by the SBP on Feb 19 and 20 respectively are the criteria, one can aptly surmise that the banks are either facing an acute liquidity crunch or they are more cautious in their transactional dealings with a relatively more critical regulator rities against which their offer amounted to Rs 91.152 billion. The six-month maturities could also not manage to attract Rs 8 billion. The SBP, however, accepted bids of Rs 90.842 billion at a cut-off yield of 9.27, 9.36 and 9.39 percent for 3-, 6and 12-month maturities.
The State Bank has no idea why the banks have all of a sudden started under-participating in the heavily yielding government auctions that have set their balance sheets in the green zone over past couple of years. “We have no idea. You better ask the banks why they did so,” SBP’s chief spokesman Syed Wasimuddin told Pakistan Today when approached for his views on Tuesday’s OMO that had failed to attract a single bid. However, independent observers had much to share with this scribe. “They bid Rs 99 billion because lending to the state is no more profitable for the banks,” said Asfar Bin Shahid. Referring to SBP figures, Shahid said that during July-December FY13, the banks’ credit to the private sector had grown by Rs 154 billion. “The banks have now realised that financing to the private sector would fetch them 12.5 to 13 percent mark up as compared to investing in the government securities at a reduced interest rate,” he explained. Asked if the central bank, through cutting discount rate to a single digit of 9.5 percent, had finally brought the banks back on track, AB Shahid replied in affirmative. However he added that the banks were still risk averse given the prevailing uncertainties on political and law and order fronts, which were adversely affecting the volume of their bad debts. “They (banks) still are very selective in terms of financing and are focusing on risk-free and growing sectors like food, fertiliser, pesticides etc,” the analyst said. He wondered what made the central bank pump Rs 460 billion into the banking system (on Friday), while the banks on Wednesday had lent it over Rs 91 billion. “The SBP might have done it to provide the banks with money to clear their financial obligations against Wednesday’s auction,” Shahid opined. It means, he said, the banks were facing an acute liquidity shortage. The SBP’s chief spokesman’s previous statements that the regulator only conducts injection operation when there is liquidity crunch in the money market put enough weight behind Shahid’s analysis.
KCCI for Pak-New Zealand bilateral economic cooperation KARACHI NNI
Karachi Chamber of Commerce & Industry’s President Muhammad Haroon Agar has stressed upon the need to augment Pakistan-New Zealand bilateral economic and commercial cooperation. Pakistan should benefit from the New Zealand’s expertise in agriculture, food processing, dairy, technical-level education in food processing, animal health, post-harvesting techniques, and renewable energy sources. Exchanging views with Pakistan’s High Commissioner-designate to New Zealand H.E. Zehra Akbari during her visit to KCCI, he stated that to enhance reciprocal trade, KCCI can sign MoU with Wellington Chamber of Commerce for mutual cooperation. There is a dire need to enhance people to people contact, exchange of business delegation. He said that presently an Honorary Consulate of New Zealand is operating in Pakistan, the High Commissioner of New Zealand to Pakistan is stationed in Tehran and visas are issued from Dubai. Therefore, he was of view, opening of New Zealand’s Embassy and Commercial Office in Pakistan is important to enhance bilateral trade and relations. He said that New Zealand’s trade with Pakistan is only around $100 Million as is in favour of New Zealand. Pakistan’s main exports to New Zealand are textiles, linen, cereals, apparels, carpets, handicrafts, sports goods etc. Whereas main imports are pumps, dairy products, wool products, other animal products etc. Pakistan & New Zealand signed a trade agreement in 1990. The meeting of Joint Trade Committee was delayed for 22 years and was held in 2012 whereby Pakistan’s Commerce Secretary also gave the expression of interest to start negotiations on FTA. He underscored on the frequent
sessions of Joint Trade Committee. New Zealand’s Minister Trade Phil Goff during his visit to Pakistan in 2007 also visited KCCI and met the then President KCCI to exchange views on bilateral trade.
SERIOUS EFFORTS ARE REQUIRED FROM BOTH THE GOVERNMENTS AND BUSINESS COMMUNITIES TO ENHANCE BILATERAL TRADE AND DOUBLE THE TRADE VOLUME. —HAROON AGAR Phil Goff also launched pilot project “Waster of Energy” in Landhi Karachi to convert animal waste into fuel and fertilizer. He said that serious efforts are required from both the governments and business communities level to enhance bilateral trade and to double the trade volume between two friendly countries. He also requested the High Commissioner to invite exhibitors to participate in the Karachi Chamber’s My-Karachi Oasis of Harmony Exhibition scheduled to be organized in July 2013. High Commissioner-designate to New Zealand H.E. Zehra Akbari, speaking on the occasion stated that Pakistan and New Zealand are maintaining cordial political relationship however, bilateral trade need attention of two countries for enhancement. She informed that Pakistan’s High Commission was opened in Wellington particularly to facilitate the 8000 members of Pakistani community.
Business opportunities ripe in Guangzhou, says Babar Amin ISLAMABAD APP
He stated that Pakistani community was proactive in New Zealand and one Pakistani was also elected as the member of parliament. Currently 142 scholars from Pakistan are completing their Ph.D in New Zealand, she informed. She stated that New Zealand’s embassies worldwide are limited. She appreciated the vital role of KCCI in the socio-economic development of Pakistan and to promote trade and industry in Karachi and elsewhere. She proposed that KCCI may compose a high-level business delegation to New Zealand to explore new trade prospects. She was of the view that Pakistani, textiles, apparel, carpets, mangoes can be exported to New Zealand. Two way trade exceeded to $150 Million in the past, however, the last year’s trade figures were around $109 Million out of which Pakistan’s share is about $40 Million. Like, EU countries, the New Zealand is also focusing towards Asia in respect of trade, she apprised. The present population of New Zealand is around 4.4 million. She said that economic ties with two countries can further strengthened particularly in the areas of dairy, agriculture, food and education. Senior Vice President KCCI Shamim Firpo, Vice President Nasir Mehmood and Managing Committee Members also participated in the meeting also participated and exchanged views.
Consul General of Pakistan designated for Guangzhou China, Babar Amin visited Islamabad Chamber of Commerce and Industry and had a meeting with Zafar Bakhtawari, President ICCI. Haji Fazal Kadir Khan Shirani, President of PFCCI was also present on the occasion. Babar Amin discussed opportunities of trade and investment for enhancing PakChina bilateral relations and said that Guangzhou is one of the main trading hubs of China and major economic zone which has provided tremendous opportunities for Pakistani entrepreneurs to increase export of their value added food products. He said that conferences, trade shows and exhibitions are great ways to promote business and trade relations as Guangzhou has unique geographical location and also famous for organizing trade fairs and exhibitions. Therefore, designated Consul General urged Pakistani businessmen to participate in these events which would provide an opportunity to the business community of both the countries to come closer. Speaking on the occasion, Haji Fazal Kadir Khan Shirani, President of PFCCI said that currently Pakistan is facing economic crisis and it is the right time to enhance trade relation with our neighbouring countries especially China as there is good potential of Pakistani products like textile, rice, surgical instruments, sports goods and Pakistani towels. He said that FPCCI and ICCI could plan a combine business delegation to Guangzhou which would further improve B2B relations between the business communities of both the countries. Referring to the importance of Guangzhou, Zafar Bakhtawari, President ICCI said that Guangzhou has great importance for Pakistan as Guangzhou provide good opportunities to Pakistani business community for doing business with Chinese counterparts. He suggested that a direct air link from Guangzhou to Karachi should be set up for further improving bilateral relation between China and Pakistan.
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Rural areas of Sindh have immense potential for investment. —Sindh Board of Investment Chairman Zubair Motiwala
SDPI to hold seminar on ‘Coal Water Slurry’ ISLAMABAD PPI
The Sustainable Development Policy Institute (SDPI) will hold a seminar under titled “Coal Water Slurry: An effective Way to Overcome Energy Crisis’ on 25th February. The main speakers of the seminar were included, Mr Salman Qaisrani, Director CWS Energies Private Limited,
Mr Arshad H. Abbasi, Senior Advisor, Water and Energy Unit, SDPI. Pakistan is facing an unprecedented energy crisis due to increased reliance on imported furnace oil for power generation. It is estimated that more than 53% of the oil imports constitutes fuel used for power generation, thus draining the national exchequer. In order to reduce the dependence on oil imports, Government of Pakistan has decided to convert 4200 MW of thermal power plants to coal under medium term program. This has raised the concerns over the costs involved with the retrofit changes for coal in thermal power plants and environmental pollution associated with the coal. Here, Coal Water Slurry (CWS) Technology comes as an alternate which is an effective, cleaner and environmental friendly replacement of furnace oil, diesel & natural gas in power generation. The seminar would discuss coals as a fuel for power generation, the economic and technical prospects of Coal Water Slurry Technology and the utilization of huge reserves of coal in Pakistan such as the ‘Thar Coal’ to address energy crisis in Pakistan.
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BUSINESS B Sunday, 24 February, 2013
UNICEF and Barclays ‘Building Young Futures’ LAHORE: Mohammad Kabir and his family struggle to earn a living at the brick kilns on the outskirts of Lahore, the provincial capital. Toiling in the oppressive heat, the Kabir family is paid $4 for every 1,000 bricks they produce. Mr. Kabir’s daughter, Nusrat, is just 14. Until last year, she worked as a domestic servant. “I used to watch the children of the house where I worked as they came back from school every morning, and wished I could study too,” she says. “I asked my mistress once to teach me to read, and in return I would work for free. She said no.” Today, Nusrat is one of the rising stars at the Kherapul NonFormal Education Centre. Established in 2008, it is one of 16 centres set up by UNICEF’s local partners as part of the Barclays/UNICEF ‘Building Young Futures’ partnership, which helps vulnerable children and young adults acquire the skills and opportunities they need to realize their potential as full members of their communities. The centre works to ensure that children like Nusrat have a chance to escape the cycle of debt bondage and poverty through education and vocational training. At present, over 2,000 children study in the centres in Lahore and Faisalabad. The Kabir family makes about $73 a month, working 14 hours a day, six days a week. On payday, a third of their income is deducted as payment towards their debt. The remainder must sustain the family of six, and any shortfalls –especially during the rainy season, when there is no work – are made up by adding to their debt. PrEss rElEAsE
CORPORATE CORNER Fahad Hussayn’s Print Museum
barriers, which restrict their growth and success. PSTD is committed to women professional development. Melanne Verveer, US Ambassador-atlarge for Global Women Issues encouraged the participants through a video message to convert challenges to opportunities and continue efforts to succeed by sharing learnt experiences with fellow colleagues to initiate growth within their communities. PrEss rElEAsE
Islamabad to host 9th International Safety and Security Exhibition
KARACHI: Fahad Hussayn in collaboration with Ittehad Textiles launches their debut collection in a wide array of colors with a unique concept titled Print Museum. This concept integrates local craft infused with lawn fabrics and outfits. Five years of in-depth research into design sensibilities and history of local craft forms has given the brand a competitive edge. Print Museum’s each and every print is designed meticulously depicting where the print is derived from. Ittehad Textiles’s Fahad Hussayn Design Museum encompasses Luxury lawn classics, live digital prints available in limited edition. The concept was brought to life at Imperial Marquee , where top notch models like Nadia Hussain, Ayyan Ali, Fauzia among other models like Abeer, Iqra, Manal, Monica, Mubashira, Nadia Baloch, Hira Tareen, Sadaf, Sehrish & Sidra Sajid dazzled in collection by Fahad Hussayn. The vision for this concept is “Design Museum is set to be the premier brand for the season where each outfit that a customer walks out with is esthetically pleasing, fashionably in style, unique as well as affordable as designer lawn should be”. PrEss rElEAsE
International Women Leaders Summit strengthens networks
KARACHI: The 9th International Safe and Secure Pakistan Exhibition-2013 is set to bring major investment opportunities for local and foreign exhibitors and manufacturers, this was stated by the organizer Managing Director, Pegasus Consultancy, AamerKhanzada. He said that the mega event is being organized first time in Islamabad’s Pak-China Convention Centre from 2628 February 2013. Safe Secure Pakistan is the international trade fair, which is a platform through which safety and security equipment and training industry’s stakeholders commence B2B interaction and exchange valuable business prospects. After the 8 years success of the international Safe Secure Exhibition, 2013 event will bring in big opportunities of investment for local and international exhibitors, brand owners and manufacturers. National Disaster Management Authority, Capital Development Authority, Fire Protection Association of Pakistan, Emergency Rescue Services 1122, Rawalpindi Chamber of Commerce and Industry and Islamabad Chamber of Commerce and Industry are supporting the Safe Secure Pakistan 2013 Exhibition. PrEss rElEAsE
Tissot joins the FISU family as official timekeeper
KARACHI: As part of the 5th WIBCON (Women in Business Conference Series) for professional women, an "INTERNATIONAL WOMEN LEADERS SUMMIT" was organized on Tuesday, 29th January 2012 at Karachi, Pakistan. Yasmin Hyder, Chief Executive, New World Concepts, welcomed the delegates and stated that the driving force of this conference is to provide a forum for dynamic female leaders, entrepreneurs, opinion makers in the region, to explore their potential, share their success and inspire many more to take their lead. She added that the presence of international and Pakistani speakers lends global learning opportunities for women entrepreneurs and professionals in Pakistan. Aamir Niazi, President, Pakistan Society for Training and Development stated that the International Women Leaders Summit is being held under the Women in Business Conference Series initiated four years ago. He expressed that the vision for this conference is to make women draw inspiration from global and Pakistani leaders and overcome the stereotypical
LE LOCLE: FISU, the International University Sports Federation is proud to announce a long-term partnership with Tissot commencing with its flagship events in 2013. Tissot will provide timekeeping, scoring and results services at both the 27th Summer Universiade in Kazan, Russia and the 26th Winter Universiade in Trentino, Italy. Tissot, one of the world’s best known Swiss watch brands, will become the Official Timekeeper of the FISU Universiades, the biggest international multisport events for student athletes. With this partnership Tissot will bring their expertise and gold medal standard to the Universiades, which attract some of the biggest and brightest sport stars of tomorrow. Commenting on the new
partnership, François Thiébaud, President of Tissot said: “We are thrilled to be bringing our proven expertise in precision timekeeping for multidiscipline competition to the Universiades this year. We have already successfully performed this task for the Summer Universiade on two previous occasions, but 2013 also marks our debut as Official Timekeeper and Partner of the winter edition. We look forward to this new challenge and to providing tomorrow’s best athletes with uncompromising fairness through our world class timekeeping solutions. PrEss rElEAsE
P&G employees and children from HOPE schools to preserve the environment
KARACHI: Procter & Gamble Pakistan organized an educational and fun-filled trip for underprivileged children of the P&G-HOPE Schools to the WWF Wetland Center at Sandspit, Karachi. Many P&G employees volunteered their time to accompany these children making the trip both informative and exciting. Such initiatives are a part of P&G’s ongoing efforts to promote education and personal development amongst under-privileged children. Employee volunteerism is an integral part of P&G community programs as it provides employees the opportunity to interact with the children to help build their confidence, social and inter-personal skills. Over the past 4 years P&G employees have contributed more than 1800 volunteer hours to the company’s community cause. Seventy-five P&GHOPE School children made the most of this trip at the WWF Wetland Center, learning about the significance of mangrove forests and preservation of marine life. The children were shown documentary films on mangrove forests, bringing to light the current state of mangrove forests along the Karachi coast and the need for mangrove forest plantation. The documentary also highlighted the importance of an unpolluted sea and shore for preservation of marine life. This generated great interest amongst the children, leading to a highly interactive Q/A sessions where the children asked insightful questions. The most memorable part of the day for the children was the mangrove plantation and beach cleanup activity during which they not only had the most fun but were also able to contribute towards the environment. “It was heartening to see how keen the children were to bring about a positive change in their environment. Such activities are a great way of creating awareness amongst children whilst giving them the opportunity to enjoy themselves as well” said a P&G volunteer. PrEss rElEAsE
KARACHI: British Deputy High Commissioner Karachi Francis Campbell and OBA Pakistan chapter head Dr Amir Jafri at the launch of Oxford Business Alumni (OBA) Pakistan at the British Deputy High Commission. Pr
SSGC weekly closure schedule for industrial and captive power KARACHI: In accordance to maintain the smooth and uninterrupted gas supply to the industry during the whole next week, SSGC will observe its schedule strictly for closure of gas supply on coming Sunday 24 February 2013. All the industrial and captive power customers are required to discontinue gas usage completely on Sunday 24 February from 7:00 am till Monday 25 February 2013 up to 7:00 am for 24 hours, as per the schedule already agreed between the stakeholders. SSGC’s surveillance teams will monitor the compliance of the schedule, which are fully authorized to disconnect gas supply for next 48 hours of any customer found violating the agreed schedule. The gas supply to such customers will only be restored after issuance of NOC from the concerned Industrial and trade Association. SSGC management has requested the industrial customers to cooperate with the utility in order to enable supply at stable pressure during the rest of the week. PrEss rElEAsE
First Turkish Restaurant opens in Pakistan
KARACHI: A grand opening of Solen Istanbul, the first Turkish restaurant in Pakistan was held on February 2013 at Dolmen City Mall. The opening was attended by H.E Consul General Turkey Mr. Murat M. Onart who welcomed the launch of the first Turkish restaurant in Karachi and Pakistan and emphasized the close brotherly relations between Pakistan and Turkey. Solen Istanbul is a chain of restaurants based in Istanbul, Turkey. The restaurant aims to introduce authentic Turkish cuisine to Pakistan. Specialties at Solen Istanbul include Lahmacun, a Turkish style pizza, Kofte Izgara, grilled Turkish meatballs and Iskender, a Turkish style shawarma prepared from thinly cut grilled pieces of lamb basted with hot tomato sauce. Solen Istanbul’s special desserts include Sutlac, a creamy Turkish rice pudding. The Solen Instanbul team also includes two chefs flown in from Turkey. Mr. Mehmat Celal Ulutatar, who owns and operates Solen Istanbul, has been in business for more than 20 years. He is planning a second Solen Istanbul restaurant in Karachi as well as openings in Lahore and Islamabad. PrEss rElEAsE
KARACHI: Consul General of USA in Karachi Michael Dodman poses for a photo with artist Marium Khan and her mother Mrs Khan during her art exhibition at Pakistan American Cultural Centre. Pr