PRO 27-02-2013_Layout 1 2/27/2013 1:24 AM Page 1
01
B
Business Wednesday, 27 February, 2013
PSO declared defaulter by world market ISLAMABAD: Pakistan State Oil has been declared defaulter by the world market due to delay in payments under the LC head. World market imposes heavy fines on Pakistan State Oil, threaten to suspend oil supplies. PSO needs Rs 30 billion for making the payments in two days. It must be remembered that PSO owes Rs 145 billion to various organisations and Rs 128 million to local refineries. Supply of petroleum products to Pakistan can be suspended for one month, in case payments are not made in two days. Energy crisis in Pakistan can worsen as a consequence of the suspension of oil product’s supply. INP
PSM not to be allowed to be privatised: BOD KARACHI: Board of Directors (BoD) of Pakistan Steel Mills (PSM) has decided that the mill will not be allowed to be privatised. The decision was taken in the meeting of the BoD held here under its chairman Fazal Qureshi Tuesday. Meeting was attended by federal secretary Gul Muhammad Rind, chairman CBA Shamshad Qureshi, CEO PSM, Muhammad Javed and others. It was unanimously decided in the meeting that national industry PSM would not be allowed to be privatized and no such proposal was under consideration at present. This entity would soon be able to stand on its feet with the cooperation of the government, they declared. It was told in the meeting that supply of raw material has been started in PSM. It was also decided in the meeting that perks and privileges in respect of officers and subordinate staff will continue. Earlier ahead of the meeting a delegation led by chairman CBA Shamshad Qureshi met federal secretary for production Gul Muhammad Rind in PID House and apprised him of their reservations and unrest prevailing among the employees. Federal secretary assured the delegation that PSM would further progress and bring improvement in the national economy. ONLINE
Pakistan set to become IRENA member ISLAMABAD: President Asif Ali Zardari Tuesday signed the Instrument of Ratification for Pakistan to become a member of the International Renewable Energy Agency (IRENA). Spokesperson to the President Senator Farhatullah Babar said that the International Renewable Energy Agency (IRENA) that was founded on 26th Jan 2009 in Bonn, Germany, aims to promote widespread and increased adoption and the sustainable use of all forms of renewable energy. Todate 149 countries have signed the statute of IRENA while 76 have ratified it. INP
The government is providing incentives to companies intending to invest in the oil and gas sector. – Dr Asim Hussain
ECC APPROvES PIA’S BuSINESS PlAN FOR 5 yEARS ECC also agrEEs to lEt PIa aCquIrE fIvE aIrCraft to rEPlaCE Its agEIng flEEt ISLAMABAD
T
STAFF REPORT
HE Economic Coordination Committee (ECC) of the Cabinet met here Tuesday under the chairmanship of Federal Minister for Finance and Economic Affairs, Senator Saleem H Mandviwalla approved an interim business plan presented by PIAC for the next five years and agreed to allow M/o Finance to issue continuing fresh guarantees to the tune of Rs 49 billion during the year 2013 to meet with the critical liquidity condition of the Corporation. The ECC also agreed to the request of the M/o Defence for arrangement/provision of US $ 46 million by M/o Finance with or without GOP guarantees enabling PIAC to acquire five narrow body aircrafts to replace its ageing fleet. The ECC also agreed to the proposal for extending the loans/guarantees of Rs 33.5 billion until June 2013. The ECC
further agreed to the borrowing by PIAC of Rs 13.50 billion from NBP against letter of comfort to be subsequently replaced by GoP guarantees. The approved measures/ strategy will provide for fuel efficiency through fleet modernization; Optimum fleet deployment on network; Introduction of additional frequencies on high demand high yield routes; Revenue enhancement and increase in market share; Separation of the Core airlines business activities from noncore (SBUs) and Restructuring of PIA liabili-
tinue with the implementation of earlier ECC decision dated 16th August 2011 and reimburse the price difference to PARCO as per existing practice. M/o Petroleum and Natural Resources moved another summary seeking approval of the ECC to the formula for fixation of ex-refinery price of high speed diesel (HSD). The ECC approved the proposed mechanism/formula for computation of HSD price due to change of benchmark price from HSD 0.5 sulphur to HSD 0.5% Sulphur (Euro-II) which will remain in force till June 30, 2014. The ECC banned the marketing of high speed diesel with Sulphur content more than 0.5 percent (Euro-II) grade high speed diesel in the country. The ECC agreed to the proposal of Ministry of Petroleum and Natural Resources for allocation of first 20 MMCFD gas from SSGC share from new discoveries to 100 MW Nooriabad Industrial Estate power plant as
requested by the Government of Sind. The ECC further directed that the allocation of the said gas from SSGC should be placed at the disposal of M/o Water & Power till the power plant at Nooriabad Industrial Estate gets operational.
ties to reduce financial cost. The ECC approved the margin for oil marketing companies and dealers to be increased by Rs. 0.10 per liter on high speed diesel. The ECC directed OGRA to con-
Businessmen urged to focus on regional trade ISLAMABAD INP
There is a lot of potential in trading with regional countries and blocs like Saarc, Asean, OIC and Central Asian republics. Thus, a strategy of engagement with regional countries to maximize mutual economic and commercial benefits is direly needed to offset the impact of global recession. Zafar Bakhtawari, President Islamabad Chamber of Commerce and Industry (ICCI) made these remarks during a meeting with Iqbal Tabish, Secretary General Saarc Chamber of Commerce & Industry. Bakhtawari cited the example of Asean regional bloc which has a population of approximately 600 million people and significantly contributing in the world’s GDP. He said that promotion of regional trade also offered promising benefits to the industry as it would enable it to source raw materials from the region that would ultimately reduce the cost of production and create opportunities to improve economy of scales by having an easy access to neighbouring markets.
Margin for oil marketing companies and dealers to be increased by Rs 0.10 per liter on high speed diesel
Promotion of regional trade also offers promising benefits to the industry as it would enable it to source raw materials from the region that would ultimately reduce the cost of production and create opportunities to improve economy of scales by having an easy access to neighbouring markets
ICCI President also informed him that ICCI have planned to host a meeting of all the Capital Chambers Conference in Islamabad with the aim to promote mutually beneficial relation between Pakistan and other countries. Speaking on the occasion, Iqbal Tabish, Secretary General, SAARC
Chamber of Commerce & Industry said that Government should focus on industrial led growth to bring the country out of current economic stagnation and create new employment opportunities. He said our immediate neighbours China and India are two fast growing economies and if Pakistan has to compete and catch up with them, the best option is to go for industrial led growth of economy. Mr. Tabish said that in the political economy and global world, Chambers of Commerce have assumed increased importance to influence policy making in favour of entrepreneurs. He said Chambers could play more effective role by transforming themselves from platforms to strong institutions. He said that Islamabad Chamber of Commerce & Industry should organize a Capital Chambers Convention to promote soft image of the country and send a positive message about Pakistan to the outside world. He said SAARC Chamber is doing strong advocacy for regional integration so that South Asia could emerge as a powerful economic bloc to improve the living standard of its people.
Pakistan repays 10th IMF instalment of $391.8 milion
KARACHI: The central bank Tuesday “successfully” paid the 10th instalment under the IMF’s Stand-By Arrangement (SBA) facility amounting to SDR 258.4million equivalent to $391.8 million, said the SBP chief spokesman Syed Wasimuddin. The spokesman said with the repayment of current instalment, Pakistan to-date has repaid to IMF SDR 2.110 billion which is equivalent to $ 3.232 billion since July last year. Wasimuddin said next instalment under the SBA facility would be due at the end of May this year, amounting to SDR 258.4million. “After the current repayment, remaining amount due under IMF/SBA until Sep-2015 is SDR 3.239 billion,” the SBP spokesman said. Pakistan had obtained $7.8 billion from the IMF in 2008. Since the repayments started earlier this year, rupee has been under consistent pressure losing considerable value against the dollar in the inter-bank and open currency markets. STAFF REPORT
Big banks’ profit up by 6pc in 2012, interest income down 6pc KARACHI STAFF REPORT
Looking at the 2012 audited accounts of large local banks, specially December quarter, it is clear that making money would be difficult for bankers in coming quarters due to shrinking margin. With eroding core business, the big banks’ earnings posted a nominal growth of 6pc in 2012 to reach Rs88.3bn while pretax profit was almost flat increasing by just 2%. In fact Dec quarter earnings fell 3%
from Sep quarter. Decline in NII was compensated by lower provisioning while increase in admin cost was managed by rising non-interest income. This compares unfavourably with 20% profit growth seen in 2011. Unlike 2011, where Net Interest Income (NII) remained the prime earning driver for large banks, declining provisions and better non-interest income supported the bottom line in 2012. “We have based our analysis on unconsolidated earnings of 5 large banks (NBP, HBL, UBL, MCB and ABL) representing
72% of the sector’s market capitalization, over 60% of branch network and contributing 55% of banking deposits. Except for NBP whose profits were down 8%, remaining four banks posted improvement in profits in 2012 as shown in accompanied table,” said the analysts at Topline Research. The 250bps fall in policy rate in 2012 coupled with maintenance of minimum deposit rate at 6% on PLS accounts affected NII of these banks, they said. In 2012, cumulative NII declined by 6% or Rs13.3bn to Rs197.5bn as against Rs210.8bn during
the previous year where NII grew by 15%. HBL posted the highest NII growth of Rs1.2bn or 2% to reach Rs56.1bn, while ABL’s NII fell by Rs6.8bn or 27% to Rs18.4bn. On quarterly basis, NII was realized at Rs49.5bn as against Rs48.6bn, up 2%. This increase is realized due to exceptional performance of NBP during the December quarter, where the bank posted NII growth of 30%. Although decline in interest rates resulted in the shrinking spreads, this fall also
caused reclassification of non-performing loans. Resultantly, declining provisions, especially on advances, remained one of the prime supporters of the profitability growth during the year. In 2012 total provisioning of large banks stood at Rs18.5bn, as against Rs30.5bn down by Rs12.0bn or 39%. Rise of Rs17.1bn or 29% in non-interest income led by booming bond and stock market help compensate for rising inflation driven admin charges. Admin and relate costs of these banks grew by Rs13.8bn or 13% in 2012 to reach Rs119.5bn.
PRO 27-02-2013_Layout 1 2/27/2013 1:24 AM Page 2
Pakistan should focus on industrial growth to bring the country out of current economic stagnation. – SAARC CCI Secretary Iqbal Tabish
Dr Asim welcomes Eu interest in oil, gas exploration ISLAMABAD: Advisor to the Prime Minister on Petroleum and Natural Resources Dr. Asim Hussain has said that Pakistan has always welcomed the cooperation extended by EU in various sectors of the economy. He was talking to Ambassador Patricia Flor EU Special Representative for Central Asia who called on Dr. Asim Hussain today in Islamabad. The meeting was also attended by Mr. Abid Saeed Secretary Petroleum and Syed Tauqir Hussain Joint Secretary (I&JV) Ministry of Petroleum and Natural Resources. Dr. Asim Hussain apprised the EU Ambassador about the ongoing projects of the oil & gas sector in Pakistan and informed that the Government is providing incentives to the Companies intending to invest in Oil and Gas sector of Pakistan. The Advisor stated that Pakistan needs to balance its energy mix, for which various projects and policy initiatives have been taken including policies on Shale Gas, LPG, LNG, Tight Gas, Flared Gas and Marginal Gases. He welcomed the interest of EU in helping out Pakistan in the Oil and Gas Exploration. The EU Ambassador was also requested for possible collaboration in the field of Petroleum education, particularly at the Institute of Science and Technology recently established by OGDCL under the direction of Advisor / Minister Petroleum. Ambassador Patricia Flor apprised that EU is already providing assistance to Pakistan in various sectors of economic and social development. She thanked the Advisor / Minister for meeting him and assured that the EU would extend all possible help in the energy sector and transfer of technology. ONLINE
Mukhtar directs speedy completion of wind power generation projects
F
Business B
Wednesday, 27 February, 2013
Major Gainers COMPANY OPEN unilever Pak 10550.00 nestle Pakistan ltd. 4900.00 Colgate Palmolive 1520.00 Indus Dyeing sD 433.00 Mithchellsfruit 301.01
ONLINE
HIGH 10850.00 5145.00 1596.00 454.65 313.50
LOW 10410.00 4800.00 1445.00 454.65 313.50
CLOSE 10850.00 5131.82 1596.00 454.65 313.50
CHANGE 300.00 231.82 76.00 21.65 12.49
TURNOVER 360 760 850 100 100
444.25 337.26 260.50 116.86 539.00
412.30 337.26 253.08 116.85 535.00
412.30 337.26 257.23 116.85 535.39
-21.70 -17.74 -9.16 -6.15 -5.23
700 100 47,700 2,500 7,000
8.83 8.95 24.00 18.79 116.98
6.96 8.01 22.75 17.74 109.40
7.42 8.29 23.38 17.85 111.59
-0.54 -0.30 -0.26 -0.89 -2.24
67,359,000 19,258,000 17,856,000 16,334,000 15,981,100
Major Losers shezan Inter. sanofi-aventis Pak Clariant Pak Blessed tex. Millat tractors XDXB
ISLAMABAD
EDERAL Minister for Water and Power Chaudhry Ahmed Mukhtar has directed to expedite completion of 1000 MW wind power generation projects so that cheaper electricity could be added in the national grid at the earliest. Federal Minister Ahmed Mukhtar gave these directions while presiding over 26th Board meeting of Alternative Energy Development Board (AEDB) here on Tuesday. The Minister stated that electricity generation from indigenous resources is priority of the government and various steps have been taken to attract investment in this sector. Upfront tariff has already been given to the wind power projects and same is being announced for solar projects. The board taken up various points of agenda and approved grid code for wind power projects. As per new grid code the share of wind power generation has been increased from 5 % to 20 % in the national grid energy mix. The meeting was informed that one more wind project of 50 MW has been completed and on test run to be inaugurated next month. Three projects of 150 MW are under construction while 12 projects of 1100 mw would
02
434.00 355.00 266.39 123.00 540.62
Volume Leaders telecard limited azgard nine P.t.C.l.a Jah.sidd. Co. Engro Corporation
7.96 8.59 23.64 18.74 113.83
interbank Rates usD gBP JPY Euro
PKr 98.1622 PKr 148.8335 PKr 1.0666 PKr 128.3470
Forex BUY achieve financial close by 2013-14. The meeting also approved merger of three wind power projects of 30 MW. The meeting also appreciated all the officials of the AEDB who performed their role in the completion of wind power projects. The meeting also appreciated the performance of AEDB for expediting the wind and solar power projects.
us Dollar Euro great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar uaE Dirham saudi riyal
99.10 128.89 149.40 1.0658 95.39 12.56 26.90 26.30
SELL 99.35 129.09 149.60 1.0768 97.07 12.79 27.15 26.55
CORPORATE CORNER taken in 2012 would further help in controlling future infections and securing upcoming recoveries. PR
Intel accelerates mobile computing push
ISLAMABAD: Khyber Pakhtunkhwa Inspector General Muhammad Akbar Khan Hoti cuts the ribbon to inaugurate the 9th International Safety and Security Exhibition, Safe Secure2013 at Pak-China Friendship Centre. Dr Rizwan Naseer, Director General Rescue 1122, Major (r) Zia-Ul-Hassan Butt, Member Executive Committee, All Pakistan Security Agencies Association, Former Director General Cyber Crime FIA Ammar Jafferi and Managing Director, Pegasus Consultancy Aamer Khanzada are also seen in the picture. PR
Soneri Bank announces results for 2012 KARACHI: Soneri Bank Limited has announced its results for the year ended 31 December 2012 posting highest profit after tax in last six years. The Chairman of the Bank, Mr. Alauddin J Feerasta, presided over the Board that met in Lahore on 23 February 2013. The Board noted with satisfaction that bank has outperformed the market in both advances and deposit growth and achieved strong growth in all areas of the Bank’s operations. Deposits grew by 21.15% over 2011 and advances (gross) recorded a growth of 17.14% over 2011. The bank’s after tax profit increased to Rs 1,104 million, up from Rs 784 million, primarily due to a solid growth in Net Interest Income of 23.82%, (up from Rs 3,912 million to Rs 4,844 million) and effective monitoring of non-performing loan portfolio. The Bank’s EPS went up to Rs 1.10 from Re 0.78 as a result. As of 31 December 2012, the Bank is in compliance with Minimum Capital Requirement of the State Bank of Pakistan. Analyzing the reasons for successful performance in 2012, Bank sources explain that the increase in core revenue was registered mainly on account of growth and restructuring in its main areas of activity; advances, deposits and trade, which allowed the bank to enhance its earnings from both investments and foreign exchange. Furthermore, the Bank continued to follow a prudent policy for making provisions for the infected loan portfolio in line with regulatory requirements and is confident that actions
KARACHI: Intel Corporation today announced a range of new products, ecosystem and enabling efforts that will further accelerate the company’s presence in mobile and help usher in a range of new devices and richer experiences with Intel Inside®. The announcements include a new dualcore Atom™ SoC (“Clover Trail+”) platform for smartphones and Android* tablets, and the company’s first global, multimode-multiband LTE solution. Other disclosures included “Bay Trail” momentum, a new multi-platform enabling program, and continued smartphone momentum in emerging markets with the Intel® Atom™ Z2420 processor-based platform. “Today’s announcements build on Intel’s growing device portfolio across a range of mobile market segments,” said Naveed Siraj, Country Manager for Intel Pakistan. “In less than a year’s time we have worked closely with customers to bring 10 Intel-based smartphones to market in more than 20 countries, and have also delivered an industry-leading low-power tablet solution running Windows 8.” New, Efficient Atom™ SoC Platform Intel’s new Atom™ processor platform and smartphone reference design delivers industryleading performance with low-power and long battery life that rivals today’s most popular Android phones. The product brings Intel’s classic product strengths, including high performance that lets you enjoy smooth Web browsing, vibrant, glitch-free, full HD movies, and an Android applications experience that launches fast and runs great. The imaging system also enables panorama capture, a 15 frame-per-second burst mode for 8 megapixel photos, real-time facial detection and recognition, and mobile HDR image capture with de-ghosting for clearer pictures in flight. Long-Term Evolution (4G LTE) Intel’s strategy is to deliver a leading low-power, global modem solution that works across multiple bands, modes, regions and devices. The Intel XMM 7160 is one of the world’s smallest and lowestpower multimode-multiband LTE solutions supporting multiple devices including smartphones, tablets and Ultrabooks™. The 7160 global modem supports 15 LTE bands simultaneously, more than any other in-market solution. The 7160 is a welltimed competitive solution for new emerging LTE networks. Intel® Atom™ Platform Z2420 As Intel expands its geographic presence, the company sees tremendous opportunity in delivering
rich Intel-based mobile experiences to consumers across emerging markets. As part of its strategy to take advantage of the growing market for value smartphones in emerging markets, Intel highlighted continuing momentum with the Intel Atom Processor Z2420 platform. Tablets with Intel Inside® Building on the device momentum and industryleading power-efficiency of the award-winning Atom processor Z2760, Intel’s first quad-core Atom SoC (“Bay Trail”), will be the most powerful Atom processor to-date — doubling the computing performance of Intel’s current- generation tablet offering and providing the ecosystem with a strong technology foundation and feature set from which to innovate. Enabling the Mobile Devices with Intel Inside® Intel today announced an expansion of its ecosystem enabling efforts to deliver new device and market innovation across a range of Windows and Android-based mobile devices. The new program will focus on accelerating time to market for leading-edge mobile devices based on Intel® architecture with top OEMs and ODMs.
60 Second Film Festival launched KARACHI: 60 Second Film Festival, an initiative launched collectively by Morango Films & Duck, was launched back in August 2012 with a call for submissions, and wrapped up on the 31st of January 2013 with the announcement of the results. From submission of films, to public voting, and consequently the judges’ decisions, it has been an exciting process for the festival team. The festival was launched for showcasing 60-second short-films based on socio-economic development, entertainment and public service messages. The aim was to create a platform for upcoming artists and film directors from Pakistan, encouraging their talent and creating positive learning experiences. ‘Its like a dream come true. Our biggest achievement is that people from remote areas of Pakistan also contributed in this festival and got recognized for their work’ remarked Abrar ul Hassan, Director 60 Second Film Festival. PR
century, Abacus has been offering cutting-edge business solutions which have enabled client organizations transform their aspiring visions into realities. The exclusive event was organized to celebrate 25 years of collaboration and synergy between Abacus, its prestigious clientele and strategic partners, setting benchmarks of excellence in the industry. On the occasion, Mr. Asad Ali Khan, Founder and President of Abacus welcomed the guests and said, “For more than 25 years, Abacus has been at work to transform businesses into successful enterprises. We offer our clients a unique portfolio of Consulting, Technology and Outsourcing services with end-to-end integrated solutions, duly supported by a solid corporate governance structure and guided by a stringent value system. It is indeed a matter of great personal pride and privilege that the small firm that began its journey in 1987 is today reckoned to be the thought leader and transformation partner of choice by leading business entities in three continents across the globe. Of course, I would give credit for all this to the hardworking, honest and dedicated people of Abacus.” Mr. Paul Batchelor, Board Member of Abacus, who had flown in from London for the occasion also addressed the audience and expressed his pleasure and pride in being part of the organization’s governance structure. Mr. John Furth, President and CEO of the global Association of Management Consulting Firms (AMCF) based in New York, delivered a video address lauding Abacus as “a clean, courageous and competent company that has flourish through difficult times and a less than perfect environment to achieve milestone after milestone and reach a richly deserved Silver Jubilee”. Mr. Aamer Chaudhry, Partner and Global Leader of Abacus, gave away special awards in various categories. The End Note Speech was given by Mr. Abbas Ali Khan, Partner and Global Leader, who thanked the audience for attending and being part of Abacus’ celebrations. PR
Abacus celebrates 25 years of transforming business LAHORE: AbacusConsulting, leading consulting, technology and outsourcing firm, commemorated its 25 years of successful business at a glittering event here at the Royal Palm Golf & Country Club, Lahore, on February 23. For over a quarter of a
KARACHI: Asim Pervaiz Siddiqi, Chairman & Chief Executive Siddiqi Group of Companies, receives the 3rd Global CEO Excellence Award from Nisar Khuhro. PR