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New tax plans decline cell phones sales MONITORING DESK The govt’s decision of imposing new taxes has badly affected sales and import of cellular phones, according to a report in a local newspaper. Sources told the newspaper that from April 4, importers and distributors have stopped getting clearance of their consignments of cellular phone at the port. Dealers said that customers were reluctant to pay an additional amount of Rs 500 on low-cost cell phones, which earlier used to cost Rs 1,000 to 1,200. On smart phones, end-users are now made to pay an additional amount of Rs 1,000 after the imposition of taxes. Teletec Mobile Director Azad Lalani said mobile phones sale has dropped by at least 25 to 30 percent after the government decision. Imports have also slowed down after April 4. He said 80 to 85 percent people use low-cost cell phones which are within the price of Rs 3,000. After the imposition of Rs 500 tax, most of the people are reluctant unable to purchase the low price phones. United Mobile Manager Sales Noman Zakariya said that sales have plunged by more than 50 percent of the low cost cell phones due to the imposition of the new tax.
Islamic banking to grow beyond Rs 1tr in next five years KARACHI: The Islamic bankers expect the current 9.7 percent share of the overall banking industry in Pakistan to double by 2017. The deposits base of Islamic banking in the country would cross the Rs 1 trillion mark by next five years or so. This was stated by Ali Ahmed Siddiqui, Executive VP of Product Development and Shariah Compliance Department of Meezan Bank, while addressing a group of journalists at a workshop on “Concept of Islamic Banking” held at Meezan House on Tuesday. Dwelling on conceptual framework of the Islamic banking, Ali said having entered into its “aggressive” second phase, the Shariah-compliant banking in the predominantly Muslim Pakistan was expanding at a fast pace. STAFF REPORT
Former SECP chairman defamed the regulator, pushed it to the brink. – IWCCI President Farida Rashid
IMF ready but new govt should decide on loan programme: PM’s adviser ISLAMABAD
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DvISER to Prime Minister on Finance, Dr Shahid Amjad on Tuesday said the InterMonetary national Fund (IMF) has offered a new loan plan to Pakistan but the matter will be left for the upcoming government as the caretaker setup does not have the mandate to decide such issues. Briefing reporters on his recent meetings with IMF and other international financial institutions, Dr Amjad said during the meetings choices of reengagement with IMF were discussed, especially with regards to conditions when the new government comes in. Both sides decided that repayments will not be made quickly and a timeframe between five to ten years has been agreed on, he added.
Amjad said the caretakers were determined to keep the economy stable and hand it over to the new elected political setup with energy shortages and other issues under control. He said the Pakistani side had also discussed getting the country the leverage to negotiate with all international financial institutions on separate conditions. If there were additional measures required, the substantial part will be given in social protection, the adviser said. Amjad said during the next four to six months, Pakistan has to pay $883 million to IMF- in May and subsequently in July and September. Responding to a question, Amjad said in the past old payments were overloaded with conditions. He clarified that their meetings with IMF officials were part of the “Spring meetings” and no agreement had been signed with IMF.
Caretakers are determined to keep the economy stable and hand it over to the new elected political setup with energy shortages and other issues under control. DR SHAHID AMJAD Adviser to PM on FinAnce
PSO buys 700,000 tonnes of HSFO at higher premium SINGAPORE AGENCIES
The Pakistan State Oil (PSO) has purchased 700,000 tonnes of fuel oil for delivery from April to July at more than $7 a tonne over its last purchase due to a supply shortage of low-density blending components in Asia, traders said on Tuesday. The state firm purchased its entire tendered requirement of 520,000 tonnes of high-sulphur fuel oil at a premium of about $21 over the Middle East benchmark on a freeon-board (FOB) basis, versus a premium of around $14 a tonne in a transaction earlier this year, traders said. Pakistan had to pay the higher price as it typically requires lower viscosity 180-centistoke (cst) residual grade fuel oil with a density of 0.96, traders said. “The market has been tight on density, and obviously there is a certain premium attached to the final transacted price,” a Singapore-based trader said. “But they are also buying the oil at
a time when the flat price is down under $600 that creates plenty of incentive for any buyer, despite the prevailing premium attached,” they said. Fuel oil prices for the benchmark 180-cst grade have fallen more than $67 since midFebruary when they hit their highest levels for the year so far, reports said. The drop in outright prices has mainly been driven by the deep dive in crude oil benchmarks triggered by uncertainty over oil demand growth from the world’s largest consumers, the United States and China. Brent crude, which was trading under $100 on Tuesday, has fallen more than 10 percent since early April. “The upside to the lower (outright) price is that we should see more demand emerging from countries like Pakistan where a low price point entry is extremely important,” a Middle East based trader said. Pakistan also purchased 180,000 tonnes of low-sulphur fuel oil at a premium of $113 over the Middle East benchmark.
PSO profits grow by 8% to Rs 930b in nine months KARACHI: PSO Board of Management on Tuesday reviewed the company’s performance for the first nine months of FY13, July-March, and it was revealed that in the period under review, PSO’s revenues rose to Rs 930 billion as compared to Rs 862 billion in the corresponding period last year, representing a growth of 7.8 percent. After tax earnings also witnessed a significant improvement and increased to Rs 9.31 billion in the period under review in comparison to Rs 8.97 billion during the corresponding period last year, representing an increase of 3.8 percent. The board met at PSO House where the meeting was chaired by Ahsan Bashir and members in attendance included Dr Mirza Ikhtiar Baig, Mohammad Naeem Malik, Malik Naseem Hussain Lawbar, Raja Hameed Ahmed Saleem, Muhammad Azam and PSO CEO and MD Naeem Y Mir. STAFF REPORT
Food imports down by 11.91% in current year
ISLAMABAD: Food imports into the country shrunk by 11.91 percent during the first nine months of the current fiscal year (2012-13) as compared to the corresponding period last year. Imports stood at $3.35 billion during July-March (2012-13) against a figure $3.8 billion under the same head during July-March (2011-12), according to latest data from Pakistan Bureau of Statistics (PBS). Major food items that contributed in negative growth of imports included milk, cream and milk food for infants, imports of which declined from $121.776 million last year to $100.383 million in current year, falling by 17.57 percent. Similarly, imports of dry fruits and nuts decreased by 8.35 percent, falling from $ 63.291 million to $ 58.008 million while imports of spices decreased by 33.14 percent, going down from $ 77.525 million to $ 51.834 million. During the period under review, palm oil imports decreased by 10.17 percent, going down from $1.72 billion last year to $1.543 billion during the current year while import of sugar decreased from $13.34 million to $3.66 million, showing a sharp decline of 72.57 percent. The imports of pulses (leguminous vegetables) decreased by 4.68 percent from $282.366 million to $269.155 million while imports of other food items declined by 19.38 percent. The food products that witnessed a positive growth included tea, imports of which increased by 9.13 percent, going up from $271.674 million to $296.466 million, while the imports of soyabean oil increased from $41.954 million to $49.133 million, showing a growth of 17.11 percent. On a month-on-month basis, food imports in March 2013 also decreased by 16.29 percent and 24.45 percent, compared to the imports during March 2012 and February 2013, respectively. APP
China running Gwadar to accelerate pace of development: PM
Gold rush as investors seek to benefit from price dip MULTAN APP
Reduction in gold price witnessed during the last few days failed to woo buyers of gold ornaments but investors rushed to jewelers to buy pure gold biscuits hoping to earn some quick bucks, jewelers said on Tuesday. Former president Multan Jewellers Association Rauf Shah said people who wished to buy gold ornaments for weddings just or wanted to gift them to their loved ones were perhaps waiting for prices to go down even further. Another jeweller, Zahid Qureshi, however, had a
different observation stating that jewellers’ market witnessed a sudden surge in sale of gold ornaments and comparatively, around 15 percent more buyers visited jewellery shops and finalised deals. Gold prices, which had surged to 63,000 per tola in March 2013 in Multan’s Sarafa market, witnessed gradual decrease and went down to around Rs 52,000 per tola a few days ago. However, from that point onwards, the prices maintained a bullish trend and on Tuesday noon it was recorded at Rs 55,700. S o m e other jewellers, however, on condition of anonymity said local jewellers were keeping prices up by Rs 500 to
Rs 1500 as compared to the international market price on the pretext of shortage of gold. Jeweller Izharul Haq Bhutta said that contrary to past practice, jewellers were offering gold at lower prices to clients only if they were ready to get the delivery delayed by a week. An investment expert Itrat Abbas from a noted commodity trading house said the prices had gone down but even then they were not advocating investors to do long term online trading. He, however, added that short term physical trading could yield profits but investors needed to keep an eye on the price fluctuations. Rauf Shah said people who used to buy light weight gold ornaments were visiting jewellery shops as usual and there was no extraordinary surge in sales. He attributed it to commencement of summera long season Pakistanis do not find fit to arrange marriages in; which are often scheduled for winters.
Gold prices, which had surged to 63,000 per tola in March, witnessed gradual decrease and went down to around Rs 52,000 per tola a few days ago. However, from that point onwards, the prices maintained a bullish trend and on Tuesday noon it was recorded at Rs 55,700
ISLAMABAD: Prime Minister Mir Hazar Khan Khoso has appreciated the invaluable assistance being provided to Pakistan by China in its socio-economic development and hoped that the handing over of Gwadar Port to China would prove to be an impetus not only in further cementing the ties between the two countries but also accelerating the pace of development in Pakistan. The PM was talking to Ambassador of China in Pakistan Liu Jian who called on the premier on Tuesday. Khoso said Pakistan and China enjoy close relations which are deep-rooted and time-tested. He extended his condolence on the loss of life and property caused by the recent earthquake in eastern China. “In this hour of grief the people of Pakistan stand shoulder to shoulder with their Chinese friends,” said Khoso. AGENCIES
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Industrial units need to use energy efficient methods of production. – Industries Minister Shahzada Ahsan Ashraf
SSGC seeks Rs 31.56 increase in gas price KARACHI: The Sui Southern Gas Company (SSGC) has requested the Oil and Gas Regulatory Authority (OGRA) to increase the price of gas by Rs 31.56 per mmbtu for all categories of consumers with effect from July 1. The request was made at an OGRA hearing on Tuesday presided over by the OGRA chairman. The legal counsel for SSGC, Mirza Mahmood said that OGRA was mandated to determine the tariff under Section 7 of the OGRA 2002 Ordinance and Rule 17(2) of the Natural Gas Tariff Rule 2002. He said that under the conditions the licence was awarded to SSGC, OGRA is required to determine the total revenue requirements of SSGC and ensure that the gas utility achieves a minimum of 17 percent return in each financial year. He said that OGRA was in continuous breach of 17 percent guaranteed rate of return which was to be given to SSGC since the UFG benchmark was introduced. The counsel said that the benchmark of 7 percent contributed to only 2.3 percent increase in the sale price of natural gas. This increase would hike the bill from Rs 210 per month to Rs 215 per month for at least 50 percent of the domestic consumers, which was a very small cost to save the company from bankruptcy and financial collapse. STAFF REPORT
SECP proposes amendments to SMCR ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) in order to facilitate entrepreneurs has proposed important amendments to the Single Member Companies Rules, 2003. (SMC Rules) SMC Rules were introduced in Pakistan in the year 2002 and a detailed framework for registration of Single Member Companies was provided vide Single Member Companies Rules, 2003 notified through SRO 1086 (I)/2003 dated 02-12-2003. The new law was aimed to allow small businesses to be incorporated, limiting the liability of their members and enabling them to deal with public entities that are required to contract with companies rather than individuals. NNI
PTCL maintains its leadership in wireless internet services
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buSineSS B Wednesday, 24 April, 2013
Major Gainers COMPANY Unilever Food Xd nestle Pak. Xd Bhanero tex. Murree Brewery Gillette Pak
OPEN 4450.00 5980.00 315.00 265.94 248.85
TURNOVER 780 1,460 700 11,800 4,000
HIGH 4670.00 6200.00 330.75 279.23 261.29
LOW 4600.00 5900.00 315.00 274.90 260.98
CLOSE CHANGE 4600.00 150.00 6025.00 45.00 330.75 15.75 279.23 13.29 261.29 12.44
1380.00 1999.00 475.00 370.00 205.00
1313.00 1955.00 444.00 357.01 199.00
1313.63 1999.00 444.00 360.00 200.02
-65.37 -58.00 -14.99 -14.00 -8.55
1,250 150 900 600 6,300
9.64 11.35 4.79 137.10 18.95
8.81 10.56 4.39 129.80 18.20
9.61 11.05 4.68 135.12 18.76
0.97 0.70 0.35 4.54 0.56
44,946,000 14,059,000 13,993,000 11,982,000 8,697,500
Major Losers 1379.00 2057.00 458.99 374.00 208.57
Wyeth Pak Ltd Xd colgate Palmolive sanofi-Aventis Xd MithchellsFruit AL-Ghazi tract.
Volume Leaders trG Pakistan Ltd. 8.64 Byco Petroleum 10.35 Wateen telecom Ltd 4.33 engro corporation 130.58 Maple Leaf cement 18.20
interbank Rates PKr 98.4041 PKr 149.8596 PKr 0.9969 PKr 127.7876
Usd GBP JPY eUro
Forex BUY
ISLAMABAD: Syed Mazhar Hussain, PTCL Senior Executive Vice President (SEVP) Human Resource, receiving a souvenir from Ghalib Rizwi, President HR National Forum, for his participation in a panel discussion on ‘Global Mobility with Organisation’ held at the National Institute of Banking and Finance (NIBAF). PR
ISLAMABAD: Pakistan Telecommunications Company Limited (PTCL), country’s largest and only telecom operator offering nationwide fixed and wireless voice telephony and broadband internet services, has today announced achieving 500,000 wireless internet customers mark. Launched in 2009, PTCL’s EvO wireless internet service has grown steadily, and now serves customers in more than 250 cities and towns across Pakistan. PTCL EvO wireless broadband is Pakistan’s fastest wireless internet service, offering customers’ superior internet experience on-the-go, and has also revolutionized the way people connect with each other and reach out to the world with improved learning and development oppor-
tunities. In 2012 alone, the company achieved more than 300,000 wireless customers through its diversified portfolio of wireless products, including EvO 3.1 Mbps, EvO Nitro 9.3 Mbps, EvO Wingle 9.3 Mbps, EvO and Nitro Clouds and EvO Tab. Furqan Qureshi, PTCL Senior Executive vice President (SEvP) Commercial while commenting on this achievement said, “PTCL has pioneered a broadband revolution in Pakistan through its quality and customer-centric approach. At PTCL, we believe in introducing innovative yet affordable telecom solutions to meet the everyday needs of our customers and this continuous growth in our wireless customer base is a testament to their increasing confidence in our services.” PR
Us dollar euro Great Britain Pound Japanese Yen canadian dollar Hong Kong dollar UAe dirham saudi riyal
99.50 128.50 150.51 0.9875 95.61 12.56 26.90 26.40
SELL 99.75 128.74 150.76 0.9978 97.30 12.79 27.15 26.65
Regulatory body to monitor courier business MONITORING DESK The government is considering setting up of Pakistan Private Courier Services Regulatory Authority (PPCSRA) to regulate and monitor courier services for improved competition, revenue collection and consumer protection, according to a report in the local media. The ministries of finance, postal services, law and justice and interior are currently in consultation process for finalisation legislation that could be put in place through a presidential ordinance or an act of Parliament after May 11 general elections. The proposed regulatory authority would not only regulate the functions of courier and cargo services but also generate funds for the government and set tariffs for courier services in a transparent and fair manner.
CORPORATE CORNER Pakistan and Afghanistan - MasterCard. PR
Keystone Academy organises Annual Concert 2013
KARACHI: (L-R) Khurram Agha, Group Head Operations & Technology NIB Bank, and Aurangzaib Khan, Country Manager MasterCard, sign the agreement. PR
NIB Bank becomes first bank in Pakistan to offer MasterCard Internet Gateway Services KARACHI: NIB Bank, one of the fastest growing banks in Pakistan, and global payments and technology company MasterCard have announced a collaboration which will see NIB Bank become the first bank in Pakistan to offer the MasterCard Internet Gateway Service (MiGS). Now, NIB Bank merchants will be able to process payments from cardholders on their online Web stores in real-time. As a MasterCard acquirer, NIB Bank will offer merchants world class, secure internet payment processing capabilities. The agreement was signed on April 5 at NIB Bank’s Head Office, Karachi, by Khurram Agha, Group Head Operations & Technology - NIB Bank and Aurangzaib Khan, Country Manager,
KARACHI: Keystone Academy as part of its yearly activity held an annual concert for its preschoolers at Tipu Sultan Hall, PECHS on April 6. This event was followed shortly by the Annual Sports day also conducted at Kutchi Memon ground. In a wonderful display of colour and singing the little marvels put their best foot forward. The excited parents cheered and applauded each performance as they watched the children dance and sing. The performances were done by the children between ages two to six, comprising of the preschool section and class1. Watching the young performers there was no doubt about the school’s effort in blossoming the children, working on their confidence enabling them to act in front of an audience of over 200 people. PR
Nokia strengthens its Lumia series in Pakistan KARACHI: Nokia has made available two new additions to its Lumia series, augmenting its range of Windows Phone 8 devices in Pakistan across price points to attract younger and hyper social audience. With the availability of the two new devices in Pakistan - Nokia Lumia 520 and Nokia Lumia 720 Nokia brings a range of innovative, unique and high end experiences to a whole new set of audiences across the country. Blending exceptional style and innovation, Nokia Lumia 720 offers a powerful camera as well as an integrated entertainment and
social experience of WP8. Nokia Lumia 520 is a highly immersive and affordable smartphone that provides rich selection of innovations for a more fun and exciting smartphone experience. Speaking about the new devices, Arif Shafique, country general manager, Nokia Pakistan & Afgahnistan said, “The WP8 momentum is building and Nokia is charging ahead with the Lumia series. The availability of Nokia Lumia 720 and Nokia Lumia 520 in Pakistan market reflects our commitment to build a winning ecosystem that will enrich people’s mobile experience and help them connect with each other at newer price points. The two new smart devices will further invigorate brand Nokia amongst the new generation of smartphone purchasers.” PR
Govt withdraws from circulation prize bond of P.170632 series ISLAMABAD: According to the National Prize Bonds Rules, 1999, the Federal Government is pleased to withdraw from circulation, the Prize Bond bearing number and series P.170632 of the denomination of fifteen hundred rupees (Rs.1500/). The said prize bond shall not be eligible for encashment of any prize in the draws to be held subsequent to the date of issuance of this notification. However, the holder of the above mentioned prize bond shall be entitled to receive face value of the bond on presentation. PR
Across the Aisle- Towards a National Agenda KARACHI: The APNA Pakistan movement has further capitalized on its achievements, under the
banner of Contech International, and has gained another mile stone to address critical situation of maternal and child health, and its linked high mortality rates in Pakistan. APNA Pakistan has achieved a consensus on “National Agenda” amongst key political parties, religious scholars, health and population experts for improvement in the existing alarming situation of maternal and child health and provision of comprehensive reproductive health. Political will, together with commitment from societal influential people like policy entrepreneurs, population and health experts, religious and minority leaders was achieved through a non partisan forum ‘Across the Aisle’ on 31st December, 2012. This first collaboration emerged into a pledge that led to a policy road map. PR
Wi-tribe offers double volume to its new subscribers ISLAMABAD: Wi-tribe, Pakistan’s no. 1 broadband provider for quality of service brings forth another promotional offer to further enrich customer’s experience. The latest offer called ‘Double Volume’ is targeted towards 1st time subscribers of the 1Mbps Basic package. The ‘Double Volume’ promotional offer will increase the current 12 GB download volume of the 1 Mbps Basic package to 24 GB for a period of 2 months without any additional costs. The offer is valid from April to May, 2013 and is only for new subscribers of the 1Mbps Basic package. Excluding the transitioned accounts to the 1Mbps Basic package, wi-tribers who have purchased the package (before the launch of the promo) in the month of April will automatically get double volume. PR