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BUSINESS Thursday, 25 April, 2013
India in talks to join IP gas pipeline: Iranian spokesman TEHRAN: A spokesman of the Iranian Oil Ministry has said that New Delhi is in talks with Tehran to join the multi-billiondollar pipeline which Iran is building to export natural gas to neighbouring Pakistan. “Since India has been motivated by Pakistan’s seriousness in building the [Iran-Pakistan] peace pipeline‚ New Delhi is negotiating to join the project‚“ spokesman of Iranian Oil Ministry Alireza Nikzad-Rahbar said, according to Meher News Agency on Wednesday. The Iranian official added that there has been considerable progress in the Iran-Pakistan (IP) pipeline‚ with Iranian contractors starting work on the Pakistani section of the pipeline‚ after finishing nearly 900 kilometres of the pipeline on Iranian soil. In March‚ Indian Minister of Petroleum and Natural Gas M Veerappa Moily voiced his country’s willingness to join the pipeline project. The pipeline will enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan per day. NNI
Tourism can become a very fruitful activity as it enhances people-to-people contacts and facilitates socio-cultural exchanges and mutual understanding as well as generate business. – Senate Chairman Nayyer Bokhari
IMF BAIlouT oFFeR Pushes Kse sTocKs uP desPITe The vIolence KARACHI
The IMF, according to Adviser to masses to share the party’s grief. As expected, the city responded posi- Prime Minister on Finance Dr Shahid tively and all businesses, educational in- Amjad, was ready to lend Islamabad at stitutions and offices remained closed. least $5 billion which analysts said was a “flexible” Extended Fund FacilAttendance in offices and factoity (EFF) to be disbursed ries was thin as no public The positive and repaid over a period transport was seen plybetween three to ten ing on the city roads news made the years. until 5pm. The positive Petrol pumps benchmark KSE 100-share news made the also kept barriers benchmark KSE erected through index hit a historic high of 100-share index the day and only hit a historic high started providing 18,779.66 points gaining of 18,779.66 commuters with 132.37 points against points gaining fuel after 4pm 132.37 points when representaTuesday’s 18,647.29 against Tuesday’s tives of petroleum 18,647.29 points. dealers announced to points Amid higher trading open their filling stations. volumes, which increased to Shopping centers and other 219.87 million shares from 171.87 milretail business activities were also resumed after a similar announcement was lion of the previous day, the value of the made by the All Karachi Traders Associ- shares traded also grew to Rs 6.380 billion ation. While the entire city was shut, in- compared to the previous day’s Rs 4.93 vestors at Karachi Stock Exchange billion. The market capital also swelled to Rs remained unwary to the outside situation and reacted positively to the IMF’s re- 4.596 trillion as against Rs 4.563 trillion ported willingness to bail the dollar-hun- on Tuesday. Of the total 370 scrips trade, gry Pakistan out of its present liquidity the value of 217 appreciated and 135 decrunch emanating mainly from the coun- preciated. Some 18 remained unchanged try’s fast depleting foreign exchange re- to this effect. Engro Corporation remained in the serves currently standing at $7 billion.
ISMAIL DILAWAR
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ESPITE the uncertain law and order situation in Karachi on Wednesday, equity investors reacted overwhelmingly to reports that the International Monetary Fund (IMF) gave a positive response to cashstrapped Pakistan’s request for a fresh bailout package. “(The) stocks closed bullish amid higher trades after IMF offered a $5 billion facility for Pakistan’s balance of payment support and debt repayment,” said senior stocks analyst Ahsen Mehnati of Arif Habib Securities. Wednesday saw socio-economic life in the violence-hit metropolis completely paralysed given Tuesday’s bombing at an election office of the Muttahida Qaumi Movement (MQM) at People’s Chowrangi. The terrorist attack killed three MQM supporters while Wednesday witnessed the death toll in the attack increasing to five as injuries to two others proved fatal. The MQM on Tuesday had announced to observe Wednesday as a day of mourning with its leader Altaf Hussain appealing to traders, transporters and
US companies keen to invest in Pakistan’s energy sector: Miles Young
Bank Alfalah posts Profit before Tax of Rs1.527 billion KARACHI: Bank Alfalah has posted a healthy profit before tax of Rs. 1.527 billion for the first quarter ended March 31, 2013, a commendable achievement considering the challenging macro-economic landscape and the declining interest rates environment. Profit after tax for the first quarter was recorded at Rs 1.011 billion and earnings per share were reported at Rs 0.75. The bank has managed to increase its non mark-up income by 27% to Rs 1.864 billion in the first quarter ended March 31, 2013 compared to the corresponding period last year. Revenue for the first quarter was reported at Rs 5.688 billion, a decline from Rs 6.108 billion reported in the corresponding period last year mainly attributable to pressure on net interest income due to lower interest rates in the current quarter. Total assets increased to Rs 544.724 billion at March 31, 2013 as compared to Rs 536.467 billion at year end 2012, further strengthening the bank’s financial position. Bank Alfalah’s NPLs to gross loans ratio remains below the industry infection ratio, and the bank continues to maintain adequate provisioning against the classified portfolio. NNI
The biggest challenge for UPBC is to present Pakistan positively among American investors since media, especially CNN and Fox TV, are not projecting a positive image of Pakistan these days.
KARACHI NNI
US companies have shown interest in investing in the energy sector of Pakistan considering the great potential in power, oil and gas sector, said US-Pakistan Business Council (UPBC) Chairman Miles Young at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday. The head of the visiting delegation from USA, said American companies including GE, Shell and others are already initiating their projects in Pakistan. He said UPBC is quite concerned
about the ongoing energy crisis in Pakistan and is keen to resolve it. The UPBC represents major multinational companies of USA in Pakistan and the delegation is on a fact-finding mission, seeking joint ventures and bilateral trade promotion during the visit. Young said the lowest volume of foreign direct investment (FDI) from USA to Pakistan during the recent years was not due to any particular reason but due to economic crisis all over the world that also affected USA. He said it was a misconception that USA stopped FDI to Pakistan in recent times and this should not be taken negatively.
SECP approves draft pharmaceutical industry order ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the draft Pharmaceutical Industry (Cost Accounting Records) Order, 2013 to facilitate maintenance of records by companies engaged in the production, processing and manufacturing of pharmaceuticals products. Pharmaceutical companies are required to maintain such cost accounting records including all particulars relating to utilisation of
material, labour or other inputs of items of cost to determine total product cost. The notification is being published for the information of all parties likely to be affected thereby. The draft will become effective in thirty days after its publication in the Official Gazette. Any objections or suggestions which may be received from any person in respect of the said draft before the expiry of the said date will be considered by SECP NNI
MILES YOUNG chairman PaK-US BUSineSS coUncil He further said the biggest challenge for UPBC is to present Pakistan positively among American investors since media, especially CNN and Fox TV, are not projecting a positive image of Pakistan these days. He said UPBC is not a branch of the US government and works independently. He said that by and large it was a responsibility of the business community of the two countries to promote bilateral trade. “We want to do business with Pakistan because it is a country of the future,” he said.
limelight, with investors expecting the company to post positive results after improved performance by its fertiliser business. Fauji Cement also remained in the limelight due to speculation of exceptional results. Engro Corporation Ltd rose 2.76 per cent to 138.85 rupees and Fauji Cement Company Ltd was up 4.41 per cent to 8.76 rupees. In the currency market, the rupee ended almost steady at 98.38/98.43 against the dollar compared to Tuesday’s close of 98.36/98.42. Overnight rates in the money market fell to 9.40 per cent from Tuesday’s close of 9.50 percent. According to stocks analysts, the day saw institutional interest in stocks across the board. This, they said, was amid recovery in global commodities, strong announcements in oil, banking stocks and speculations ahead of quarter-end results this week. Mehanti, however, said equity investors were concerned over the security unrest and had announced a call for strike in the volatile city. Regardless of the reasons, the traders say, one day closure costs trade and business in this financial capital of the country at least Rs 10 billion. This amount, they believe, is not inclusive of losses daily wagers incur when the city is shut for one reason or the other.
uBl’s assets swell beyond Rs 1tr in Q1FY13 KARACHI: United Bank Limited (UBL) registered a profit after tax of Rs 4.9 billion in its consolidated results for the first quarter of the current fiscal year, on Tuesday. This, the bank said, represents 2 percent growth over the same period last year. The bank said this translates into an earnings per share of Rs 3.82 which in March 2012 was Rs 3.97. The Board of Directors, in their meeting on Tuesday, also approved an interim cash dividend of 20 percent, i.e., Rs 2 per share. Despite falling margins and severe spread compression, the bank was able to enhance its fee income and lower provisions. The bank’s noninterest income in the first quarter saw an increase of 17% to Rs 5.1 billion. Fees and commissions grew by 23% to Rs 2.7 billion, mainly attributable to increase in remittances, branchless banking income, improved general banking fees and cross-sell of bancassurance. Dividend income increased by Rs 0.4 billion to Rs 0.5 billion in the same period, whilst capital gains increased by Rs 0.6 billion reaching Rs 1 billion. Provisions reduced by Rs 182 million compared to the corresponding period last year and this has resulted in an improvement in the Bank’s coverage ratio. STAFF REPORT
Philippine envoy for enhancing trade ties with Pakistan ISLAMABAD INP
Great potential exists for expansion in trade and economic relations between Pakistan and the Philippine and the two countries should successfully tap it through increased contacts between business sectors, said Ambassador of Philippine in Pakistan Domingo Lucenario during a meeting with the business community of Islamabad Chamber of Commerce & Industry (ICCI).
He said the business communities of the two sides should join hands for joint ventures as and chambers of commerce of Pakistan and Philippine must interact with each other to achieve their ultimate objectives of enhancing bilateral trade volume. He said there was a need to activate framework of agreements on trade and economic ties.The ambassador said Philippines emerged as one of the best performers in services exports as well as in semi-conductor area which provided opportunities for Pakistan to enhance
trade with Philippine. He further said both countries should focus on discovering complementary industries. In his welcome address, ICCI President Zafar Bakhtawari said Pakistan attached great importance to enhancing its relationship with Philippines as an important country of ASEAN regional bloc and stressed to further accelerate economic and trade relations among all ASEAN countries. He also emphasised that Philippine should also help Pakistan in becoming a full-dialogue partner in ASEAN.
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Organic fertilizers can not only fulfil demands of fertilizer in the country but Pakistan could also compete at the international level in organic food products. – Shahzada Ahsan Ashraf
Kesc Md gIven lAsT chAnce To APPeAR BeFoRe senATe BodY ISLAMABAD
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O resolve pending matters of the Karachi Electric Supply Company (KESC), a Senate body on Wednesday decided to extend a last chance to its managing director (MD) to appear before the
parliamentary committee. Senate Standing Committee on Rules of Procedure and Privileges was held under the chairmanship of Senator Col (r) Tahir Hussain Mashadi. The MD’s consecutive refusal to appear before the committee has pushed the Senate body to use its ultimate powers to summon an individual through a proper channel. The committee has also taken
serious notice of the absence of the minister for water and power. The chairman of the Senate committee has already written in his report in the last meeting that the attitude of the KESC’s MD was unfair and abusive to a parliamentary forum. Meanwhile, Senator Mian Raza Rabbani suggested to the chairman that if the MD does not appear in the
next meeting, he should be arrested and brought before the committee. “The MD will remain absent unless arrested, send him a final notice to attend the next meeting. The parliament must use its power to issue his arrest warrants if he does not appear on the notice,” Rabbani said. The committee is expected to hold its next meeting during the first week of May.
eFP launches employer of the Year awards
Industries minister for regular policy for fertilizers
KARACHI: The Employers’ Federation of Pakistan (EFP) has launched the maiden “Employer of the Year Award 2012” to recognise efforts of enterprises for their contribution towards the creation of a skilled workforce. EFP Vice President Zaki Ahmed Khan termed the awards a unique opportunity for employers to compete in any of the two categories, namely “Best Enterprise for Human Resource Development” and “Best Enterprise for Work Place Safety”. He said the employers throughout Pakistan were allowed to participate by submitting their nominations by a deadline of May 15, 2013. A three-member jury consisting highly respected personalities in the market has been formed for scrutinising the nominations. The awards are being offered to the large, medium and small-sector organisations, he said, while the award ceremony is planned to be held on August 20, 2013 in Karachi. “The high point of this award competition is the “Outstanding CEOs Award” which will be given to the company heads winning first prize in any of the category and receiving more than 50% marks in the second category,” said Khan. PR
LAHORE: CareTaker Federal Minister for Industries and Production Shahzada Ahsan Ashraf Sheikh has stressed the need for regular policy for manufacturing of fertilizers, keeping in view the necessities of the country. Addressing a reception during his visit to National Fertilizers Corporation (NFC) headquarters on Wednesday, he said it was the need of the hour to work for alternative methods of manufacturing fertilizers. He said the country could be self-reliant in energy and fertilizer sectors if bio-gas plants were constructed on large scale, systematically. The minister said organic fertilizers to be produced in bio-gas plants could not only fulfil demands of fertilizer in the country but Pakistan could also compete at the international level in organic food products. He said organic fertilizers were health beneficial and economical which could also be helpful in generating heavy foreign exchange for the country. He directed the NFC administration to evolve a new fertilizer policy and set up regional offices in Peshawer and Quetta. Earlier, NFC Chairman Rizwan Mumtaz Ali briefed the minister about the institution and its causes. APP
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BUSINESS B Thursday, 25 April, 2013
Major Gainers COMPANY Unilever Food XD nestle Pak. XD Bata (Pak) XD Wyeth Pak ltd XD murree Brewery
OPEN 4600.00 6025.00 1800.00 1313.63 279.23
HIGH 4830.00 6200.00 1890.00 1346.00 293.19
LOW 4750.00 6025.00 1711.00 1300.00 289.00
CLOSE CHANGE 4830.00 230.00 6200.00 175.00 1890.00 90.00 1346.00 32.37 293.19 13.96
TURNOVER 1,340 140 850 1,350 19,600
309.00 264.00 92.50 348.80 104.00
290.05 253.00 85.66 340.10 100.00
294.05 253.10 85.66 345.53 100.80
-8.41 -6.21 -4.50 -4.27 -3.20
45,200 600 268,000 2,500 2,500
8.90 4.95 9.89 139.88 18.57
8.35 4.67 9.22 134.70 18.00
8.75 4.72 9.30 139.35 18.41
0.36 0.04 -0.31 4.23 0.37
46,463,500 15,659,500 14,978,000 11,313,400 8,682,000
Major Losers clariant PaK. abbott lab. XD Pak refinery national Foods Faisal Spinning
302.46 259.31 90.16 349.80 104.00
Volume Leaders Fauji cement 8.39 Wateen Telecom ltd 4.68 TrG Pakistan ltd. 9.61 engro corporation 135.12 P.T.c.l.a 18.04
Interbank Rates USD GBP JPY eUro
PKr 98.4026 PKr 150.3494 PKr 0.9882 PKr 128.0710
Forex BUY US Dollar euro Great Britain Pound Japanese Yen canadian Dollar hong Kong Dollar Uae Dirham Saudi riyal
99.70 128.20 150.45 0.9870 95.51 12.56 26.90 26.40
SELL 99.95 128.44 150.70 0.9973 97.20 12.79 27.15 26.65
CORPORATE CORNER samsung employees enjoy a ‘great Working Place’ experience
LAHORE: Samsung Electronics is a global leader and award-winning innovator in Telecommunications and Digital Technologies. Recently, Samsung Pakistan arranged an exciting and fun-filled outdoor recreational activity celebration, in which all Samsung employees were invited to participate and have delightful experiences. This celebration is named “Great Working Place” (GWP) activity at Oasis Aqua resort and is held on a 5th April to promote Team-Building opportunities among the Samsung staff. It helps the hard-working, passionate and innovative employees to relax and cheer with numerous outdoor fun activities for participants of varying ages. An interactive meeting for operational deliberations was also held on that fun-filled day to enhance the team-building skills of the employees. Samsung Pakistan’s Managing Director – John Park said; “It is delightful to see Samsung employees from the various operational departments, strive to maintain friendly and cordial relations among themselves, by coming together as one big Samsung family, and participating in numerous recreational and sporting activities with a teambuilding spirit, to make the “Great Working Place” activity a resounding success”. PR
standard chartered recognised as ‘Best structured Trade Finance Provider’ in Pakistan KARACHI: Standard Chartered was recently recognised as the Best Structured Trade Finance provider in Pakistan by Asset Triple A Country Award 2013. This award is recognition of Standard
Chartered’s superior structuring and distribution capabilities, and reinforces its dominant leadership position in Wholesale Banking. Commenting on the recognition Mohsin A. Nathani, Chief Executive, Standard Chartered Pakistan said, “The Best Structured Trade Finance House award reflects the Bank’s commitment towards innovation and is a testament to the exceptional performance that the Bank has achieved across its business in the country. Banks have an essential role in society and thereby we actively invest in innovative products and services to provide our clients with world class financial solutions that cater to their specific needs.” PR
Team Inspire Pakistan joins nationwide cleanup drive
ISLAMABAD: To live up to the resolutions they made on 23rd March that “I will not litter” under their campaign Pakistan resolution 2013, Team Inspire Pakistan got together today on Earth Day (22nd April) for a nationwide clean up drive being carried out in different cities of Pakistan. To begin with Cleanup projects were carried initially in their major cities that include Islamabad (F-10 Markaz), Rawalpindi (Chaklala Scheme 3) and Lahore (Civic Centre & (Barkat Market) New Garden Town). The events were conducted in collaboration and support of credible organizations/groups that include Heal Pakistan, Ronaq e Qainaat, Warid Telecom, Shashca (online media partner), The Do Good Mob, Pakistan Go-Green (Social media support), Ministry of Loltype Affairs (social media support) and Subh e Nau: An Environment and Public Health Concern. At the occasion Team Inspire Pakistan representatives emphasized on the need of taking ownership. They said they are being the change they want to see around. Such activities will be carried out through the year under their campaign Pakistan Resolution 2013. PR
AgM of Pak-Japan Business Forum
Pakistan and Japan as well as the business community of both countries. Feroz Shah, the treasurer of PJBF presented the accounts. The outgoing Senior Vice Chairman, Satoshi Nakagawa also addressed the gathering and informed that his tenure as the Country General Manager of Marubeni Corporation is to end. He further informed about the unanimous decision of the Japanese members of the PJBF to nominate Shunichi Katagiri, Country General Manager of Sumitomo Corporation to succeed him as the next Senior Vice Chairman of the PJBF. PR
Pso, hBl sign agreements on ATMs KARACHI: The Annual General Meeting of the Pakistan Japan Business Forum (PJBF) was held in Karachi the other day. The Chairman of PJBF, Sohail P Ahmed welcomed the members and guests to the event and provided them with a report on the progress and on the activities of the PJBF during 2012. The highlight of the activities was the Joint Dialogue held in Tokyo in March which was largely attended by both the Government officials of
KARACHI: Pakistan State Oil (PSO) and Habib Bank Limited (HBL) have signed an agreement for the deployment of ATMs at PSO retail outlets nationwide. This agreement between the nation’s leading energy company and the country’s largest private sector bank promises to be a mutually beneficial partnership and one which will translate into convenience for the general public. PR
KARACHI: (from left to right) Naeem Y Mir, CEO & MD-PSO, and Nauman Dar, President and CEO - HBL. Also in the picture are (from left to right) Arif Nasib, GM Marketing Services PSO and Faiq Sadiq - Head Payment Services - HBL. PR