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On the origin of incomes Page 02 profit.com.pk
Friday, 27 April, 2012
CoMMEnt So CLoSE YEt So FAR… In FACt not CLoSE At ALL
MCB sets the tone
It’s 3.2 Doc, not 4.0 g
g
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Pakistan’s economy to grow 3.2 percent for current fiscal year: nAC If the prophecy comes true it would still be a 0.2 percent rise ISLAMABAD AMER SIAL
OntRaRY to the claims of Finance Minister Dr. abdul Hafeez shaikh of achieving 4 percent growth rate during the current financial year, the national accounts Committee (naC) has made a provisional estimate of 3.2 percent growth in the gross domestic product (GDP) for the current fiscal year. Briefing reporters after the meeting on thursday, secretary statistics Division sohail ahmad said that from the available data of last eight to nine months, the provisional growth is estimated 3.2 percent for the current fiscal year, as compared to growth of 3 percent last fiscal year. the increase has been made possible by growth in agriculture sector by 3.6 percent, while industrial sector grew by 3.4 percent and services sector by 2.1 percent. the government has earlier projected the GDP growth of 4.2 percent but later on revised it to 3.6 percent for the current fiscal year. He said for assessing the economy for the current fiscal year, the Pakistan Bureau of statistics (PBs) also revised the base year from 1999-2000 to 2005-2006. He said
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revision exercise is common in every country after 5 to 10 years. the revised data GDP and overall economic growth since 2005-06 did not change much as compared to the old data base. the revision shows that agriculture share in GDP has increased from 24.1 percent to 24.7 percent, industrial sector increased from 21.7 percent to 22 percent while services sector share increased from 47.2 percent to 53.1 percent. Overall GDP at market prices for the new base year has slightly decreased by 0.4 percent. the average annual growth rate between 2005-06 and 2010-11 has decreased from 3.7 percent to 2.9 percent. sohail said that the revision was necessary and brought significant improvements but did not rewrite the economic history of the country. He said that the rebasing was done in a very professional manner and international best practices were adopted. Experts from German international development agency, GiZ closely monitored the implementation process. after changing the base year, GDP size at cost and price is assessed Rs 9113.2 billion this fiscal year with per capita income of Rs 53,137. the Planning Commission has assessed the population at 178.9 million as
compared to 175.3 million last year. in the agriculture sector the crops registered an increase of 3 percent, livestock 4.1 percent, forestry 4.1 percent and fishing 1.8 percent. the mining and quarrying category in industrial sector increased by 1.7 percent, manufacturing 2.4 percent, construction 2.8 percent and energy by 14.3 percent. Explaining the reason for abnormal growth in electricity generation and distribution and gas distribution, Head of PBs arif Cheema said that it was calculated on the basis on subsidy provided to the sector by the government. He said it is calculated in the same way internationally. in the services sector, transport and communication increased by 3.2 percent, wholesale and retail trade 2.1 percent, financial and insurance declined by 11 percent, ownership and dwellings 3.4 percent, public administration and defence by 3.4 percent, and social and public services by 3.4 percent. about the decline in financial and insurance, Cheema explained that it was calculated on constant term but on current prices they figure might be in positive. PBs explained to the meeting that with the rebasing 2005-06, Pakistan will be focusing mainly on GDP instead of
Gross national Product (GnP), which is outdated, and replaced by Gross national income (Gni). international comparisons require application of internationally agreed classifications. the rebasing 2005-06 employs a national adaptation of United nations, international standard industrial Classification of all activities (isiC). the adaptation is called Pakistan standard industrial Classification (PsiC 2007). switching to the modern classification implies to show the output and the value added of government units under the headings of the respective activities like public administration and defense, education, health social services. Un has already released an even more modern classification which in Pakistan has come into use with the census of manufacturing industries 2011, and which will be soon employed in national accounts. at present, the national accounts in the country are calculated on annual basis, but when the rebasing 2005-06 is finalised then the annual time series will be quarterized and quarterly accounts will be launched. and PBs will in parallel enter into compilation of institutional sector accounts.
O MCB posts extraordinary first quarter results just when the banking sector must take centre stage if liquidity is to be brought back to choked credit markets, betting on just enough private sector offtake to grow out of persistent stagflation. Good development, especially since conditions have been just about right for much of the sector to follow suit. Despite hawks prevailing in the monetary policy committee, the business environment has been busy over the last quarter, especially in the commerce ministry. Word has it that islamabad’s recent spirited drive to reach out to new export markets has facilitated a welcome return to form on the part of commercial banks. as trade increases, so does the need for banks to innovate, offer facilities, do more business, create more money, and generate greater multiplier. Yet more than the exogenous support, it is positive movement on nPLs that stands out, indicating a clear shift in near-to-medium term outlook. Risk management problems have long been central to the banking sector’s willingness to cater to abnormal government borrowing. Posturing proactively on the issue shows MCB’s policy in the days ahead, developing instruments aimed at facilitating private sector growth and innovation, the life and blood of an emerging economy. Expect banks to do better in the local bourse, with hoards that rode the recent cement boom diversifying into banking scrips – a trend with its own irrefutable logic since increased cement demand that fed on enhanced trade opportunities played no small part in improving bank earnings over the quarter just ended. MCB has set the tone with an impressive first quarter show. as the sector gains momentum and adds to market buoyancy, its bigger players will realize the central role it has to play in the wider economy. Coming quarters will tell much about which way the economy will tilt, and what role its money lenders play.
RICE RIVALRIES
Our Basmati kingdom under attack g
Pakistan may lose its hegemony over Basmati exports Philippines to put its Basmati rice on the Middle East table g
KARACHI
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GHULAM ABBAS
akistan, being an agro based economy, is primarily known for its aromatic Basmati rice in the world but it may lose the position in Middle East as Philippine is all set to introduce the same Variety of rice in the region. the foreign country which once itself was a rice importing country is now looking forward to export the Basmati rice to the gulf region after being self sufficient in various varieties of rice.
Philippine has almost stopped importing rice so far and it was looking for exports of high quality rice (Basmati) which may pose serious threat to Pakistani products in the region, taufiq ahmed khan of Rice Exporters association of Pakistan told Pakistan today. “in the absence of any research and value addition mechanism in the country Pakistan may lose the important markets where its aromatic Basmati has a high demand,” he said adding that many foreign countries were already experimenting to grow the highly demanded varieties of rice and other
agricultural products. “the most impact of the introduction of Philippine rice in the region would be on Pakistani products, causing the loss of over $ 1 billion worth exports,” he said adding “approximately 70 percent of the country’s rice goes to Middle East”. in order to have the hold on the existing markets besides taping new markets the country was needed to have research facilities, high tech milling machinery and local fabrication, and maintenance and improvement of quality of the agricultural product. according to sources Qatar and
kuwait were the leading Middle Eastern countries which were willing to import the Basmati rice from Manila. the Philippine and Qatar government recently signed several agreements to boost trade and investment ties. One of the agreements focused on agriculture and fisheries sectors. the Philippines used to be the world’s top rice importer, purchasing as much as 2 million tons of rice in 2010. the foreign country has vowed to make itself sufficient in rice by 2013. since 2011, the country has drastically cut down its import requirement. it is worth mentioning here that rice
is the third largest crop after wheat and cotton. it is grown over 10 percent of the total cropped area. Rice is highly valued cash crop and is also major export item. it accounts for 6.7 percent in value added in agriculture and 1.6 percent in GDP. Pakistangrows enough high quality rice to meet both domestic demand and allow for exports of around one million ton per annum. Different varieties of rice are grown in Pakistan for example super Basmati, Basmati Pk-385, irri-6, irri-9 and ks-282 etc. Pakistan is primarily known for its aromatic rice (super Basmati/Basmati Pk-385).
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Friday, 27 April, 2012
news
EVoLUtIonARY IDEAS
KSE’S REVISED StRUCtURE
A taxing tale
on the origin of incomes
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KARACHI ISMAIL DILAWAR
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President issues ordinance to exempt stock investors from declaring source of income KARACHI
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ISMAIL DILAWAR
HE federal government, through a presidential ordinance issued on tuesday, gave a legal cover to the federal finance mister’s assurances to the stocks investors that they would not be asked to declare the source of their invested amount for next two years. “Having not read the ordinance yet, we expect that the Ordinance incorporates all of the finance minister’s assurances to us,” said naeem Rafi, former ksE chairman and CEO of Rafi securities. the stock broker said on Wednesday the investors at the ksE were panicked by the apprehension that the Ordinance would not carry the exemption clause for the investors. the Finance (amendment) Ordinance 2012, which was placed on the website of the karachi stock Exchange on Wednesday, exempts the investors from declaring the “nature and source” of the amount invested. the investors would however have to file a statement of investment with the commissioner along with the return of income of and wealth statement for the tax year 2012 within the prescribed due date. “and that the amount invested remains invested for a period of 45 days up to June 30, 2012,” the Ordinance
reads. also, it says the enquiries about the nature and sources would not be made on the investments made for a period of 120 days. a special provision, section 100B, has been inducted in the Ordinance that says the CGt on disposal of listed securities and tax thereon shall be computed, determined, collected and deposited in accordance wit the rules laid down in the Eight schedule. section 100B of the Eight schedule deals with the manner and basis of the computation of capital gains and tax thereon. section 1 of the schedule says the nCPPL should collect and deposit the CGt on behalf of the taxpayer in the manner prescribed. For the purpose, the nCCPL should develop an automated system. the nCCPL would be issuing an annual certificate to the taxpayers on the prescribed form in respect of capital gains subject to tax under this schedule for a financial year. Provided that on the request of a taxpayer or if required by the commissioner, the nCCPL shall issue a certificate for a shorter period within a fiscal year. the taxpayers would be bound to file the certificate along with the return of income and such certificate shall be conclusive evidences in respect of their income. the nCCPL would be required to
furnish to the Federal Board of Revenue within 30 days of the end of each quarter a statement of capital gains and tax computed thereon in that quarter in the prescribed manner and format. the nCCPL would be depositing the collected tax money in a separate bank account with the national Bank of Pakistan and the said amount shall be paid to the FBR along with interest accrued thereon on yearly basis by July 31 next following the fiscal year in which the amount was collected. the Pakistan Revenue automation Limited (PRaL) or any other firm approved by the FBR would conduct regular system and procedural audits of the nCCPL on quarterly basis to verify the implementation of this schedule and the relevant rules. However, no penal action would be taken against the nCCPL if it commits an error occurred from application of the system. if unable to recover by its own, the nCCPL would refer the defaulting taxpayers to the FBR. the Ordinance also includes “transitional provisions” saying: in respect of tax year 2012, for the period commencing from coming into force of this schedule till June 30, 2012 the certificate issued by the nCCPL under the relevant rule should be the basis of capital gain and the tax thereon for that period.
UnCLE SAM tURnS MECHAnIC
Americans are coming to fix our tube wells USAID to provide technical assistance to improve efficiency of tube wells g
ISLAMABAD ONLINE
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HE United states agency for international Development (UsaiD)’s Power Distribution Program, in cooperation with the islamabad Electric supply Company (iEsCO) has started installation of Low tension (Lt) capacitors on rural tube-wells in two selected feeder of taxila sub-division of iEsCO. Currently the project is assisting Faisalabad Electric supply Company (FEsCO), Multan Electric Power Company (MEPCO) and iEsCO in capacitors installation. installation of over 700 Lt capacitors in MEPCO have already resulted in an estimated 3 Megawatt reduction in demand, improved voltage and availability of surplus electricity for tube-wells. this assistance to DisCOs is provided as part of the U.s. commitment to support the Government of Pakistan in reforming the energy sector and addressing the problems of the DisCOs. the U.s. agency for international Development (UsaiD) implements these assistance programs, which also support capacity building of
Advance tax on shares value replaces CVt on share purchase at KSE
DisCOs’ staff and Board of Directors, installations of equipment to improve power factor, institutional development, gender and energy efficiency. “installation of 2600 capacitors on tube-wells will reduce the power demand on the feeders, improve voltage and reduce technical losses” said Dick Dumford, Chief technical advisor of UsaiD’s Power Distribution Program. “the UsaiD Power Distribution Program shall continue to assist DisCOs to bring improvements to their systems so the people of Pakistan get the best services. Our plan is to replicate capacitors’ installation in other DisCOs which will further improve power factor and reduce losses”. UsaiD’s Power Distribution Program is a three-year, UsaiDfunded program aimed at working jointly with government-owned DisCOs in Pakistan to improve their performance in terms of reduction in losses, and improvement in revenues and customer services, to bring them to a level of well-run utilities as in other progressive countries. through this program, the United states Government provides assistance and support to the Government of Pakistan (GOP) in its efforts to reform the power sector to end the current energy crisis.
HE karachi stock Exchange (ksE) thursday notified to its members and other stakeholders the revised tax structure promulgated by the federal government through a presidential ordinance on april 24. “Members are hereby informed that in terms of amendments made in the Finance act, 1989 and the income tax Ordinance, 2001… the taxes currently collected by the Exchange have been revised,” said the ksE. in total two changes have been made in the existing taxation structure at the bourse that would come in effect immediately. Under the new Ordinance a Capital Value tax (CVt) of 0.01 percent has been imposed on the purchase of shares of a public company listed on one of the country’s registered stock exchanges. another change in the law is the omission of the 0.01 percent advance tax on the trade value of shares. the levies that have been kept unchanged are the 0.01 percent advance tax on purchase value of shares traded in lieu of tax on commission, 0.01 percent advance tax on sale value of shares traded in lieu of tax on
commission and 10 percent carry over charges or advance tax in respect of financing of carry over trades in share business. “the advance tax on trade value of shares collected under section 233a (1)(c) has been omitted in the Finance (amendment) Ordinance, 2012,” said the ksE. about the Capital Gains tax (CGt), the Exchange said matters pertaining to the previously controversial levy were being dealt with separately by the national Clearing Company of Pakistan Limited (nCCPL as specified in the Presidential Ordinance. according to a senior broker, under the assurances made by the federal finance minister the rate of CGt, which was to be increased up to 12.5 percent in next two years, was to be put on freeze at the existing 10 percent by June 2014. the Ordinance provides that the tax on capital gains would be computed and collected, through an automated system, by the nCCPL on behalf of the Federal Board of Revenue and would deposit the collected amount in a separate account in the national Bank of Pakistan. to ensure transparency, the PRaL or any other firm approved by the FBR would conduct quarterly audits of the nCCPL accounts.
MISERABLE MARCH
Urea’s precipitous plunge g
Urea off-take marks a sharp decline of 37 percent in March KARACHI STAFF REPORT
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HE urea off-take in the country sharply declined by 37 percent to 263k tons during last month in March. “this is primarily due to delay in kharif sowing amid unavailability of seeds and relatively higher urea prices,” said Farhan Mahmood of topline securities. interestingly, the analyst said, the sales of local urea during the review month stood at 113k tons, almost one third compared to same month last year. this was primarily due to continuous availability of subsidized imported urea which was available to farmers cheaper than local brands, he viewed. the cumulative figures for Jan-March 2012 show that total urea sales stood at one million tons which remained lower by 16 percent. However, urea sales by local manufacturers stood
at 493k tons during this period versus 1.1 million tons last year, down 53 percent. “that is the reason why local manufacturers carried urea inventory of around 535k tons at the end of March 2012 along with 265k tons of urea available with the government,” Farhan said. Following the lower DaP intake in last few months, its sales improved by 40 percent YoY to 46k tons in March. However, during Jan-March 2012, the DaP sales declined by 46 percent to 86k tons due to the fact that where local DaP remained short amid higher winter gas curtailment, declining international DaP prices, since beginning of 2012, led importers to opt for wait and see policy, he said. this led to lower availability of DaP in the market. Moreover, the analyst said, overall fertilizer sales, including urea, DaP and others, stood at 398k tons during the month under review, marking a decrease of 27 percent YoY.
SECP’S PARALLEL UnIVERSE
our capital markets offer best opportunities to foreign investors… no really, they do g
Based on PE, PBV, payout, our markets trade at lower levels ISLAMABAD ONLINE
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HE capital markets in Pakistan offer transparency, best price and efficient execution coupled with attraction for foreigners as equity market trades at discount as compared to regional valuations. Based on PE (price earning), PBV (price by volume) and payout, the Pakistani capital markets trades at lower levels as compared to regional markets. such attractiveness must catch the eyes of foreign fund managers to explore the opportunities offered by the Pakistani capital markets. shahid naseem and imran inayat Butt, of the securities and Exchange Commission of Pakistan, said this while making a presentation this at an institute organized by the Us securities and Exchange Commission in Washington, DC. the sECP strives to maintain fair, orderly and efficient markets, they said. it protects the rights of investors, facilitates capital formation and develops an efficient
and dynamic regulatory framework in line with the principles of the international Organization of securities Commissions (iOsCO). the participants were told that the sECP’s has a vast mandate, which includes corporate sector regulation, regulating securities markets, commodities market, insurance, pension, private equity, venture capital, nBFC, debt securities trustees and rating agencies. it is also responsible for the registration and licensing, supervision, enforcement, adjudication, appellate bench, investors’ education and awareness, development of legal framework, implementation of corporate governance and aML (anti-money laundering) and administration of professionals. it was highlighted that after the 2008 stock market crash (when the index fell from 15,500 to 4,500 points), due to successful reform process led by the sECP the index has successfully recovered by almost 200 percent. With the recent developments on the regulatory and operational front
and future roadmap, the Pakistani capital market will be comparable with developed international jurisdictions that meet the iOsCO benchmarks. the international institute for securities Enforcement and Market Oversight for the past 18 years has been one of the Us sEC’s flagship programs to promote the quality of securities enforcement programs around the globe, and strengthening and deepening international cooperation among securities regulators. this time over 180 regulators from about 73 countries and jurisdictions from around the world are having intensive training and discussions on the most significant issues of securities enforcement. the ongoing seminar is providing an opportunity to participants to brainstorm on and learn from the challenges faced by the capital markets around the globe. . it was a rare opportunity for the Pakistani regulator to address such an institute, showcase Pakistan capital market and interact with fellow regulators.
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RE$ERVE$ $LIDE g
Dollar reserves fall to $16.422bn
KARACHI: the week in review saw the country’s dollar reserves contracting by 1.0 percent or $ 180 million up to april 20. according to central bank, the country’s holdings of the greenback shrank to $ 16.422 billion against 16.602 billion of last week that ended on april 13. Of the total reserves, the state Bank held $ 11.916 billion, down by 55 million when compared with $ 11.971 billion of last week. the commercial banks too counted their dollar reserves lower at $ 4.505 billion against $ 4.631 billion of the preceding week, registering a slump of $126 million. the sBP spokesperson attributes such up and downs in the banks’ reserves mostly to routine deposit and withdrawal of cash by the account holders. STAFF REPORT
‘Increasing education budget would solve most issues’ ISLAMABAD: President islamabad Chamber of Commerce and industry (iCCi) Yasir sakhi Butt thursday said that there is a dire need to increase the educational budget because without education, Pakistan could not address the challenges. the iCCi President said that Government should encourage research in higher education institutions that would accelerate economic growth of the country. He said that Pakistan was now on just twelve countries that spend less than 2 percent of GDP on education, although education enjoyed the highest priority on the social sector agenda, which as a whole was poorly funded when compared to defence, general administration and debt servicing. Yassar sakhi Butt referred to a report that shows the budgetary allocation for education sector in various countries as per their GDPs; Cuba 18.7 percent of GDP, Brunei 9.1 percent, iran 4.9 percent, sweden 7.7 percent, Uk 5.3 percent, Us 5.7 percent, Malaysia 8.1 percent, Yemen 9.5 percent, india about 6 percent and Pakistan allocated less than 2 percent of GDP for education sector. ONLINE
Bears throw a party after SC convicts PM g
KSE index plunges by 152 points on political uncertainty KARACHI
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STAFF REPORT
HURsDaY saw the benchmark index at karachi stocks market nose-diving by 151.65 points or 1.07 percent on the back of political uncertainty arising from the supreme Court’s conviction of the Prime Minister in the contempt of court case. the ksE100-share index closed at 14,066.09 points compared to 14,217.74 of the previous session. the ksE 30-share index shed 111.60 points to close at 12,360.72 points as compared with 12,472.32 points.the analysts said even the positive impacts of the newly-promulgated Presidential Ordinance could not restore the investors’ sentiments that shattered soon after the reports of Prime Minister’s conviction were aired by the television channels early in the morning. the market turnover also remains negative and traded 270.527 million shares after opening at 306.800 million shares. the overall market capitalization declined 0.09 percent and traded Rs 3.594 trillion as against Rs 3.634 trillion. Losers outnumbered gainers 98 to 208, while 66 stocks were unchanged.
the kMi 30-share was down by 155.01 points to close at 24,384.01 points from its opening at 24,503.02 points. the ksE all-share index closed with a loss of 109.13 points to 9,868.95 points as against 9,978.08 points. Jahangir siddiqui Company Limited was the volume leader in the share market with 37.990 million shares as it closed at Rs 16.92 after opening at Rs 17.92, declined 1 rupee. iGi investment Bank traded 17.105 million shares as it closed at Rs 3.24 after opening Rs 3.55 loosing 29 paisas. P.t.C.L.a traded 17.078 million shares as it closed at Rs 12.71 from its opening at Rs 13.37, decreasing Rs 66 paisas. Fauji Cement traded 16.166 million shares and closed at Rs 6.28 as against its opening at Rs 6.52, shed by 24 paisas. D.G.k Cement traded 14.752 million shares as it closed at Rs 40.25 as compared to its opening at Rs 42.29, decreasing Rs 2.4 rupee. On the future market, the turnover decreased to 21.099 million against 22.367 million shares of Wednesday. the Unilever Food and Pakistan Gum & Chemical XD and, up Rs 106.63 and Rs 6.13, led highest price gainers while, nestle Pakistan XD and, Unilever Pakistan Limited down Rs 212.78 and Rs 35.61 respectively, led the losers.
Major Gainers Company
Open
High
Low
Close
Change
Unilever Food Pak Gum & ChemXD Pak Oilfields Shezan Inter. Pak Suzuki MotorXD
2132.62 122.79 387.69 146.05 79.23
2239.25 128.92 399.99 151.00 83.19
2101.00 118.10 385.05 148.00 78.50
2239.25 128.92 392.26 150.32 83.19
106.63 147 6.13 9,028 4.57 1,291,340 4.27 50,008 3.96 234,709
Major Losers Nestle Pakistan Ltd. UniLever Pak Ltd Wyeth Pak Ltd.XD Millat Tractors Bata (Pak) XD
4304.04 6250.91 740.00 515.18 675.57
Brightest star in the field of Luxury prêt
nBP goes on-line for higher customer care, says nBP Chief
KARACHI: ayesha khurram, who is easily one of the brightest stars in the field of luxury prêt and prêt in Pakistan, recently held a two day exhibition at Ellemint Pret. this multi-brand store located off khyaban-eshamsheer is an extremely popular shopping destination for young women who are eager to get their hands on reasonably priced prêt. ayesha khurram, one of the founding designers at Ellemint Pret, exhibited her showcases 2012 collection in the exhibition. this collection was put together as a compilation of the pop art inspired luxury prêt the designer has become renowned for. “i wanted to send down the ramp some of my most popular and memorable designs in one go almost as the highlights of the best work of my career,” said the softspoken Lahore based designer who stocks at numerous locations in Pakistan and abroad. PRESS RELEASE
nBP signs alliance with Ria Financial Services, expanding its outreach to overseas Pakistanis KARACHI: national Bank of Pakistan, one of the largest Bank in Pakistan, has entered into a Remittance agreement with Ria Financial services, a wholly owned subsidiary of Euro net World-wide, inc. Ria Financial services was founded in 1987 and today is recognized as the third largest money transfer company in the world, with global agent network of 140,000 locations in over 136 countries in five continents. this new partnership will facilitate Pakistani expatriates around the world in sending money to their families and friends in Pakistan by simply visiting any Ria Financial services agent location world-wide. the amount remitted from abroad can be collected from any of the nBP’s 1277 branches across Pakistan. in order to receive cash remittance, it can be instantly collected via nBP Foree Cash, even without having a bank account. nBP Foree transfer offers immediate credit to individual accounts in over 1200 online branches. Established by nBP, the Global Home Remittances Management Group, is a
KARACHI: While addressing the Branch Managers and Operation Manager at the conclusion of the 3-week Effective Branch Management training for 3 rd batch at nBP, Head Office, Mr. Qamar Hussain, PresidentnBP announced that over 1,200 branches all over the country have been made “Online” to improve customer services. Further, the core banking solutions will be implemented in all major branches by the end of this year to take leadership position in technology. He urged upon all Branch Managers who had come from all parts of Pakistan to attend this program to take full benefit of training to better serve the customers and increase their trust & confidence in nBP. He also announced that the management will continue to look after its employees. With the Bank’s improved financial results, its employees will also be benefitted accordingly. nBP Chief stated that training activities are being revamped to develop the human resource of the Bank to successfully meet the emerging challenges facing the Bank. PRESS RELEASE
UBL enters into a nation-wide alliance with Shapes KARACHI: UBL signed a nationwide alliance deal with shapes Health Club on tuesday, april 24, 2012 at the UBL Head office, karachi. this alliance will provide value-added services to the bank’s High net Worth (HnW) customer base and will further augment in promoting the bank’s products to an affluent target market. it will further boost the bank’s image specifically in the HnW segment. through the alliance UBL signature and Platinum card members will be given access to the shapes Health Club nationwide facilities and discounts on membership for all other UBL cardholders. Furthermore it will also allow for UBL Branding and atM placement at shapes sites, nationwide. Present at the ceremony, on behalf of shapes were Mr. Muhammad Omer Farooq, Managing Director, shapes, along with other senior executives. Representing UBL were Mr. najeeb agrawalla, GH-Marketing, Mr. asif Fatah shaikh, Divisional Head-Legal and other senior executives of the bank. PRESS RELEASE
LG announces first-quarter 2012 financial results LAHORE / SEOUL: LG Electronics inc. (LG) today announced that after two consecutive quarters of net losses, the company has turned the corner with a net
4369.00 6399.00 750.00 520.00 690.00
4088.84 6000.00 703.50 503.00 651.00
4091.26 6215.30 708.74 503.39 664.49
18.92 3.90 13.75 6.70 43.25
16.92 3.15 12.62 6.20 40.18
16.92 3.24 12.71 6.28 40.25
-212.78 328 -35.61 501 -31.26 1,058 -11.79 18,066 -11.08 157
Volume Leaders Jah.Sidd. Co. IGI Inv.Bank P.T.C.L.A Fauji Cement D.G.K.Cement
17.92 3.55 13.37 6.52 42.29
-1.00 37,990,244 -0.31 17,105,553 -0.66 17,078,709 -0.24 16,166,093 -2.04 14,752,782
Interbank Rates Us Dollar Uk Pound Japanese Yen Euro
90.8135 147.0089 1.1225 119.9919
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
CORPORATE CORNER dedicated center to serve expatriate remittances flowing into Pakistan. PRESS RELEASE
Turnover
profit of kRW 243 billion (UsD 214.9 million), a direct result of the company’s efforts to innovate in all key business units and focus on high performing products. Unaudited consolidated financial results, based on iFRs (international Financial Reporting standards) for the quarter ending March 31, 2012, showed consolidated revenues of kRW 12.2 trillion (UsD 10.8 billion) with an operating profit of kRW 448 billion (UsD 396.1 million). this compares favorably to the consolidated operating profit of kRW 280 billion for all of 2011. LG Home Entertainment Company posted significantly improved operating profit in the quarter, compared with the same period a year ago. sales, while strong at kRW 5.3 trillion (UsD 4.7 billion), declined by 6.8 percent compared with the first-quarter of 2011, largely due to the a sluggish European economy. Due in large part to the popularity of new products such as CinEMa sCREEn 3D smart tV in the korean market and improvements in supply chain management, operating profit nearly doubled to 217 billion (UsD 191.9 million) from the same period the previous year. LG will leverage upcoming big ticket sporting events and the global roll-out of LG’s redesigned 2012 tV models to stimulate higher demand for its Home Entertainment products. PRESS RELEASE
LUCK reports almost double profit in 9MFY12 KARACHI: the Board of Directors’ of Lucky Cement Limited (LUCk) has announced 9MFY12 financial performance of the company today. in line with our expectations the company has reported almost double profit (1.89 times) in 9MFY12 as the company has registered an enormous 89% YoY growth in its Profit after tax (Pat) to PkR4.69bn translating into an EPs of PkR14.49 as against the Pat of PkR2.48bn (EPs of PkR7.65) in the corresponding period last year. in our view, the massive upsurge in the bottom line was primarily backed by the gigantic rise in the top line of the company which has reached at PkR23.95bn in 9MFY12 as against the sales of PkR18.53bn in same period last year. the stupendous boost in monetary sales was mainly driven by higher retention prices which were up by 25% YoY to PkR425/bag as against PkR339/bag in the same period last year, whereas, volumetric sales was seen higher by 2% to 4.37m tons as against the sales of 4.28m tons. the gross profit of the company has registered a gigantic rise of 50% YoY to PkR9.06bn in 9MFY12 over PkR6.03bn in 9MFY11. Operating costs were seen higher by 4% YoY to PkR2.84bn as against operating costs of PkR2.73bn in 9MFY11 owing to higher administrative expenses which has increased by 70% YoY to PkR364 in 9MFY12. Conversely, financial charges witnessed a decline of 29% YoY to PkR294m in 9MFY12 as against PkR412m in same period last year. the substantial decline in financial charges was because of lower long term debts. Resultantly, the company has reported a substantial 105% jump in PBt to PkR5.64bn in 9MFY12 as against the PBt of PkR2.69bn in 9MFY11. PRESS RELEASE
Buy
Sell
91.20 120.00 146.82 1.1196 91.97 11.60 24.76 24.26 93.71
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oIB to branch out g
oIB may sell India and Pakistan branches MUSCAT ONLINE
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Man international Bank (OiB), which has announced a merger plan with HsBC Oman, proposes to either sell or close down its overseas branches in india and Pakistan. the bank will seek permission from its shareholders for the same at an extraordinary general meeting (EGM) scheduled for May 9. OiB has five overseas branches — three in Pakistan and two in india. the extraordinary general meeting will also consider a board proposal to issue 1.02 billion ordinary shares in the bank to HsBC Bank Middle East Limited in consideration of HsBC Oman being merged by incorporation into the bank. the total issued and fully paid capital of the bank will consist of two billion shares of 100 baisas each with 51 per cent of the total shares held by HsBC Bank Middle East Limited. Under the terms of the merger, HsBC will inject an additional capital of up to $97.4 million in cash from its internal resources into HsBC Oman and the business of HsBC Oman will then be merged with OiB, HsBC said in a press statement, after announcing the merger plan. the company is also seeking an approval from shareholders for increasing the authorised capital of the bank from RO100 million to RO750 million (divided into 7.5 billion shares of 100 baisas each), subject to completion of the merger. Other agendas of the EGM include a plan to enter into the services agreement with HsBC Bank Middle East Limited and to enter into the branding agreement with HsBC Holdings plc — both to become effective on completion of the merger. the HsBC Group will provide certain support services to HsBC Bank Oman under a services agreement with an initial term of ten years, according to the press release. the board is also seeking shareholders’ approval for changing of the name of the bank to HsBC Bank Oman saOG, subject to completion of the merger.