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Consumption of tea in the country has increased manifold with population growth. — Information Minister Qamar Zaman
Lack of quorum on Central Board puts governance in question at SBP
BUSINESS Thursday, 28 February, 2013
Will knock on IMF’s door again, if need be: Mandviwala
KaRaCHI
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Islamabad: Finance Minister Saleem H Mandviwala expressed confidence that Pakistan would not default on its debts but added that the country will go for a new IMF programme if need be. While addressing a news conference in Islamabad on Wednesday, the finance minister also said the Election Commission of Pakistan (ECP) has demanded Rs 5.9 billion for conducting general elections, adding that Rs 2 billion have already been released in this regard. Responding to a question, he said budget preparation is underway. Mandviwala said the current year’s target for remittances was proposed at $14.5 billion but he thought the actual figure would turn out to be on the lower side and a revised target would be submitted next week. He said a dollar bond scheme is being prepared and efforts are being made to streamline the working and performance of the Federal Board of Revenue (FBR). PPi
Efforts underway to achieve sufficiency in tea production, NA told
iSMAil DilAWAR
F lack of quorum on the board of directors is any criteria the State Bank of Pakistan (SBP) would stand tall among the country’s most ill-governed institutions. “State Bank of Pakistan is governed by an independent Board of Directors, which is responsible for the general superintendence and direction of the affairs of the Bank,” read the official documents. However, it has been years that the SBP has seen all of these independent directors, whose number has been increased from seven to eight under March 2012’s amendment in the SBP Act, officiating at the Board in full strength. Wednesday saw the federal government appointing five new non-executive directors for a three-year term which is extendable for another three year period. Those incorporate in the SBP’s central board include Mehmood Mandviwalla, Shahid Ahmed Khan, Nawaz Tiwana, Iskander Khan and Iqbal Hasan. The new appointments would take immediate effect, said a notification issued by the Finance Division which despite taking years again left two seats vacant on the SBP board. According to SBP website, before
Wednesday Mirza Qamar Beg was the only non-executive director on SBP’s central board besides the ex-officio chairman, Governor Yaseen Anwar and Acting Secretary Finance Division Abdul Khaliq. Sahar Z. Babar also has been on the board as a corporate secretary who is responsible for strategic planning, business continuity planning and maintaining oversight on the annual business planning function of the bank. The much-awaited appointments were made in place of Zaffar A. Khan, Mohsin Aziz, Waqar A Malik, Tariq Sehgal, Kamran Y Mirza and Asad Umer. According to official sources, of the above directors only Umer had resigned and that too last
CCP drafts marketing guidelines for telecom companies Islamabad StAff RePORt
Islamabad: Minister for Information and Broadcasting Qamar Zaman Kaira on Wednesday informed the National Assembly (NA) that efforts were underway to make the country self sufficient in tea production like other commodities. In response to various questions during the question hour, the minister said consumption of tea in the country had increased manifold with population growth and the government was also spending huge amounts on tea import similar to curd oil and petroleum products. He said Research and Introduction of Tea in Pakistan project was initiated in 1973-74, aimed at carrying out systemic research and studies on cultivation of tea in the country. The minister said NTRI had established tea nurseries at Shinkiari, Battagram, Swat and AJK. APP
year in May when he joined Pakistan Tehreek-i-Insaaf. “Umer had to resign because no political leader can officiate on SBP’s central board,” said a central banker. Mirza’s tenure had completed two years back in fiscal year 2010-11. “During the year 2010-11 (FY11), Mr. Kamran Y. Mirza completed his tenure as Director Central Board, and nominations against the positions vacated by him and previous two vacant positions are in the process of being decided by the federal government,” says the SBP under the head of its “Governance Structure”. When contacted Federal Finance Minister Salim H. Mandviwala declined
The Competition Commission of Pakistan (CCP) prepared a guidelines report to provide guidance on what may constitute as ‘deceptive marketing’ with respect to Section 10 of the Competition Act, 2010 for those providing telecommunication products and services in Pakistan. This effort by the commission is aimed at avoiding actions that may amount to violating section 10 and other provisions of the act. The draft guidelines have been shared with the Pakistan Telecommunication Authority (PTA), all telecom companies, and placed on the commission’s website for soliciting feedback and suggestions from stakeholders. These guidelines are meant for telecommunication companies to follow in their sales, marketing, advertising, and communication, in all forms and across all mediums-online and on point of sale. Companies have been advised to bear in mind the legal implications that may arise out of certain practices dealing with distribution of false
information, deception, fine print, disclaimer and qualifications, importance of substantiation of claims, essential terms and conditions, omissions, puffery, price disclosure, comparative advertising, promotional contents and, telemarketing. The draft guidelines present the approach taken by the commission in its decisions regarding deceptive marketing practices and the approach that it may take towards certain marketing practices by service telecommunication providers. However, the guidelines are not exhaustive and the approach of the commission shall depend upon the particular facts and circumstances of each case. Because it is not possible to predict future behaviour of the companies involved in the telecommunication sector, the commission will not, in any way, be restricted to look into matters that have not been mentioned in these guidelines. Guidelines have been prepared in light of best international practices. The principles contained in the guidelines will be applied and further developed and refined by the commission from time to time depending on individual cases.
Pakistan hopes for $1b exports to UAE dubaI Online
Pakistani exporters can easily double their food exports to the United Arab Emirates (UAE) from a present $ 500 million to $ 1 billion because the Gulf country needs all kinds of edibles, ranging from fresh vegetables to meat to frozen food, Pakistan’s Ambassador to the UAE Jamil Ahmed Khan said. Around 30 exhibitors are representing the country at the food exhibition in UAE. Out of these, 23 companies are participating under the banner of the Trade Development Authority of Pakistan (TDAP), which promotes trade and investment for the country. “Last year, our exhibitors got rea-
sonably good orders and that’s why we reached a level of almost $ 500 million exports to the UAE,” Khan said during his visit to Pakistan’s pavilion at the exhibition. “We feel our exporters have much larger potential and that could take them from the current level of $ 500 million to $ 1 billion easily because this country imports food items worth more than 5 billion,” he added. Business Monitor International (BMI) predicted that there will be a 5.3 percent increase in food consumption this year in the UAE. However, total food consumption of the country is expected to increase at a compound annual rate of 6.2 percent to reach a value of 37.5 billion dhirams in 2017, BMI
added. According to estimates, Gulf countries import more than 250,000 tonnes of meat, with 100,000 tonnes of this being imported from Australia alone. So there is a large scope for Pakistan to increase exports to the UAE and other GCC nations, Khan said. “Our exporters can take the advantage of being one of the closest countries,” he added. The ambassador said Pakistan’s foodstuff exports to GCC countries already touched the level of $ 1 billion in 2012. He said there is tough competition in the market, so Pakistani exporters should update their machinery and packaging to make their products competitive. On-time delivery is also very important in addition to other things, he added.
Among foodstuff, poultry products is one of the important import items to the UAE as the country is expected to import around 120,000 tonnes poultry products this year, compared to around 79,000 tonnes in 2008, he said. More importantly, food security is one of the top agendas of GCC leaders and because of that, the demand for food items will continue to rise in the region, Khan added. Another area of interest, he said, is in re-export. The UAE is the region’s top and most important market in terms of re-exports. “Whatever is imported in this country, 65 percent of it is re-exported. I believe there would be potential for our people in this segment,” Khan added.
SBP’s central board should have 10 members: the governor as its chairman, secretary finance division, and eight non-executive directors that include at least one from each province, who shall be eminent professionals from the fields of economics, finance, banking and accountancy
to comment on the years long delay by his predecessors to appoint new directors to the SBP board. “I don’t want to say anything about the past,” the finance minister told Pakistan Today. Mandviwala, however, said the two seats which are still lying vacant would be filled by “next week”. Ideally, SBP’s central board should have 10 members: the governor as its chairman, secretary finance division, and eight non-executive directors that include at least one from each province, who shall be eminent professionals from the fields of economics, finance, banking and accountancy.
Fish, meat exports rise by 3.43%, 41.49% ISLAMABAD: Fish and fish preparations exports from the country during the last seven months of the current financial year (FY) recorded a growth of 3.43 percent as compared to the same period of last year. During the period from July-January, 2012-13, the country earned $ 180.20 million by exporting about 81,324 metric tonnes of fish and fish products which were recorded at 15,277 metric tonnes worth $ 174.23 million in the same period of last year. On a month-on-month basis, about 10,202 metric tonnes of fish worth $ 23.34 million were exported during the month of January, 2013 as against 13,487 metric tonnes valuing $ 30.52 million in the month of December, 2012. On the other hand the export of fish and its products witnessed a 9.33 percent increase on a year-onyear basis and was recorded at 10,350 metric tonnes worth $ 21.34 million during the month of January 2012. Meanwhile, the exports of meat and meat preparations increased by 41.49 percent during the first seven months of the current financial year as about 40,403 metric tonnes of meat and its products worth $ 135.83 million were exported. The meat and meat products exports were recorded at 31,197 metric tonnes costing $ 96.006 million from the period July-January, 2011-12. As compared to the month of January, 2012 the meat and meat preparations exports posted a growth of 31.88 percent during the month of January, 2013 and $ 15.84 million against $12.01 million of same month last financial year. APP
EU lifts ban on Pakistani fish exports: commerce secy Islamabad: The European Union has lifted a ban on Pakistan’s fish exports around seven years after it was imposed, Commerce Secretary Munir Qureshi said on Wednesday. Qureshi said two fish companies from Pakistan were allowed exports to European countries. He said exports would start from March 12. A ban was imposed on the country’s fish exports to EU in April 2007 because of poor hygienic conditions. With the ban, Pakistan had been losing at least $50 million worth market share per year. Online
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Pakistan has never faced bankruptcy in the past nor would it in future. — Finance Minister Saleem H Mandviwala
Pakistan exports to Malaysia grow by 6.15% Islamabad,
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AKISTAN’S exports to Malaysia have risen by 6.15 percent according to trade figures available for the period January-October 2012. Statistics from January till October, 2012, depict Pakistan has exported goods worth $232.81 million to Malaysia, registering a growth of 6.15 percent or $13.48 million over the $219.33 million exports in the corresponding period last year. During both years, rice stood as the highest contributor and a major export to Malaysia, contributing to 25 percent ($54.08 million) of the total exports in 2011 and 29 per cent ($66.51 million) of the total exports in 2012, a press release issued by the Pakistan High Commission in Kuala Lumpur said. From January to October 2012, the export of bedlinen increased by 13.96 per cent ($0.62 million), electrical appliances by 76.15 percent ($1.42 million), rice by 22.97 percent ($12.42 million), potatoes by
164.14 per cent ($3.15 million), maize by 58.88 percent ($14.36 million) and fish by 21.94 percent ($2.19 million). However, the exports of onion decreased by 94.93 percent ($15.68 million), cotton yarn by 28.73 per cent ($5.03 million), parts and accessories by 27.95 percent ($0.35 million) and woven fabrics by 6.47 percent ($0.27 million) in the same period. Pakistan exports a number of goods to Malaysia, including fish, potatoes, onion, rice, maize, cotton yarn, woven fabrics and synthetic staple fibre, bedlinen, electrical apparatus for line telephony and parts and accessories. Pakistan also imports palm oil, electrical and electronic equipment, machinery, chemicals, rubber, wood, synthetic filament yarn, insecticides, automatic data processing machines and parts and accessories from Malaysia. However, the overall imports from Malaysia to Pakistan have decreased from $2.12 billion to $1.6 billion by 24.58 percent. Palm oil was the major import from Malaysia in both years, standing at $1.65 billion in 2011 and $1.12 billion in 2012.
Samsung unveils B2B and e-Learning solutions laHORE: Samsung Electronics Co. Ltd., a global leader in digital media and convergence technologies, unveiled numerous innovative products at the Samsung Middle East and North Africa (MENA) Forum 2013 at the Grand Hyatt Hotel in Dubai recently. Samsung has transformed the B2B market for the new era of elearning or smart-education. There is much interest and investment in the e-learning sector from governments around the world, seeking to deliver Smart-Education to the masses. Samsung is inspiring further investment in this sector by introducing digital Smart-Education solutions and experiences to schools throughout the MENA region. This revolutionary e-learning solution equips classrooms with easy-touse, immersive technologies, such as Note PCs, e-boards and mobile connectivity devices, whereby more than 6,000 online textbooks are available via an open-market digital content platform. PReSS ReleASe
02
BUSINESS B Thursday, 28 February, 2013
Major Gainers
Govt suffering Rs 1b loss daily on electricity Islamabad inP
Failure to introduce reforms in the power sector has caused the national exchequer to suffer a daily loss of one billion rupees owing to power theft and line losses, while the circular debt is constantly on the increase. According to reports, the government had allocated Rs 170 billion in the budget for power sector to provide relief to the poor and middle classes. However the Finance Ministry has made payment of Rs 225 billion in the first seven months of the year, which is Rs 55 billion more than the allocations for the whole year. The government had assured the IMF, World Bank, Asian Development Bank and other institutions to bring reforms in the power sector by improving the distribution system, reducing line losses and preventing theft of electricity. However sources said the government has so far failed to take the required steps and it is feared that the subsidy in power sector would reach Rs 365 billion by the end of the year.
COMPANY MithchellsFruit Sunrays Textile Ismail Industr Engro Corporation Packages Ltd.
OPEN 313.50 195.00 154.34 111.59 191.71
HIGH 327.00 204.70 161.00 117.16 199.00
LOW 303.10 204.70 161.00 111.25 188.00
CLOSE 326.90 204.70 161.00 116.90 196.79
CHANGE 13.40 9.70 6.66 5.31 5.08
TURNOVER 1,300 500 500 13,237,300 116,000
5001.00 10800.00 183.00 533.50 325.00
5000.00 10800.00 174.05 527.10 312.00
5000.00 10800.00 174.05 528.55 322.00
-131.82 -50.00 -9.15 -6.84 -5.34
40 120 1,000 8,100 3,200
5.94 8.00 5.32 18.92 117.16
5.39 6.92 4.95 17.99 111.25
5.83 7.40 5.32 18.28 116.90
0.48 -0.02 1.00 -0.06 5.31
28,266,000 25,428,500 15,366,000 14,232,000 13,237,300
Major Losers Nestle Pakistan Ltd. UniLever Pak Sapphire Fiber XD Millat Tractors XDXB National Foods
5131.82 10850.00 183.20 535.39 327.34
Volume Leaders Lafarge Pakistan Telecard Limited P.I.A.C.(A) Maple Leaf Cement Engro Corporation
5.35 7.42 4.32 18.34 111.59
Interbank Rates USD GBP JPY EURO
PKR 98.1552 PKR 148.3322 PKR 1.0704 PKR 128.3576
Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
99.10 129.22 149.63 1.0726 95.51 12.53 26.90 26.35
SELL 99.35 129.43 149.84 1.0836 97.20 12.79 27.15 26.55
CORPORATE CORNER
KaRaCHI: service sales Corporation, Pakistan’s leading footwear retailer, in partnership with the british Council conducted teacher training workshops under its platform “servis Fun and learn”. The objective was to train English language teachers from both public and private schools on how to use interactive learning approaches in classrooms. The workshops were led by experienced british Council Pakistan trainers. more than 60 teachers from each city (lahore, Karachi and Islamabad) attended this work shop. an online competition was also announced, which will run till the 15th of march. PR
PTCL organises seminar on ‘Prevention and Awareness of Hepatitis’ Islamabad: Pakistan Telecommunications Company Limited (PTCL) organized a seminar on ‘Prevention and Awareness of Hepatitis’ at a local school in Karachi as part of the company’s Corporate Social Responsibility (CSR) initiatives. PTCL is organizing a nation-wide drive to create awareness about Hepatitis and its preventive measures. Dr Tariq Saeed of PTCL Medical Services while giving information to students said, “Hepatitis is growing at an ever alarming rate now, with women and children at an increasing risk.” “More than 12 million Pakistanis are infected with hepatitis due to frequent use of therapeutic injections, re-use of syringes, inappropriate sterilization practices and poor hospital waste management,” Dr Tariq said. “At the community and individual level, certain behavioral practices increase the risk of these infections substantially and it is the responsibility of every single one of us to confront this disease,” Dr Tariq added. Syed Mazhar Hussain, PTCL Senior Executive Vice President (SEVP) HR commented, “PTCL believes in empowering the youth of the country and the current drive is a continuation of this vision. The company believes in conducting its business in a manner where it is positively contributing towards the growth and development of the society.” nni
Khushhalibank opens six new branches in Punjab Islamabad: Khushhalibank Limited, the first licensed microfinance bank in Pakistan expanded its
network by opening six new branches in the Punjab region during the month of February 2013. These branches were opened in Minchanabad, Chiniot, Muzaffargarh, Fort Abbas, Alipur and Sadiqabad. Speaking on the occasion, Ghalib Nishtar, President Khushhalibank, said that “The idea of Microfinance is fast catching up across low income market segments. Motivated by success stories in their close neighbourhoods more and more people are attracted towards improving livelihood opportunities through access to microfinance institutions. nni
have only created magic since then. “Their signature is a combination of detail, luxury and tailoring. They strongly believe when it comes to fashion, its not just about smart clothing but it’s all about grooming your personality as a whole. Their work constantly evolves within an aesthetic which is sophisticated both in the Eastern and Western sense. Ayesha Somaya lawn prints 2013 are a beautiful amalgamation of fine fabric, pretty color combinations and intricate embroideries, the combination of coordinating borders, embroidery appliqués, jewelled necklines and contrasting inner linings are the value additions to the lawn joras which gives them a custom made designer look. The Ayesha Somaya lawn was launched with an event featuring a FLASH MOB performance by ZARMEENA&BREAKHNA DANCE GROUP. The event which was largely attended by media, showbiz and fashion celebrities also saw Ayesha Somaya’s brand ambassador drama actress Momal Sheikh walk the ramp at the end of the flash mob performance. PR
English Channel gets on air laHORE: NbP Exchange Company limited, a fully owned subsidiary of National bank of Pakistan, opened its 14th branch at Cavalry Ground to facilitate its customers especially of the home remittances in line with the national objective. Khalid bin shaheen sEVP/Group Chief NbP and Chairman NbP Exchange Company limited is seen inaugurating the branch along with executives of NbP and NbP Exchange Co. PR
Flitz launches Ayesha Somaya Lawn 2013
KaRaCHI: Flitz was launched in 2007 and has been operating under the supervision of gifted and dynamic professionals since. Flitz, continuously strive for excellence through research, innovation and contemporary design along with precise quality control. Having financial and technical resources at command and with the aid of incomparable capabilities of experts, the group has acquired the experience and expertise in the field of designer Lawn, prêt wear, and footwear. Flitz after having successfully launched “Nadia Hussain’s Signature Lawn Collection 2011 and 2012”, this year launched “Ayesha-Somaya designer Lawn Collection 2013”. Ayesha Sohail and Somaya Adnan the extremely versatile duo got together in the year 2009 and
Mr. Nadeem Ansari, Mr. Haider Waheed (TV Host), Barrister Shahida Jameel, Ms. Saima Baig, Mr. Ather Usama and Mr. Hussain Ather have graced the show with their presence. The host of this program is Mr. Faisal Qureshi, whereas Producer is Muhammad Shakeel Ahmed while the Executive Producer is Mrs. Rukhsana Lotia. This program, possessing 50 minutes duration, will be telecast live four days a week, at 09.05 p.m.The other significant addition is “Unwind with Sohail Hashmi” and is scheduled to be put on air every Friday & Saturday night at 11.05 p.m. Mr. Sohail Hashmi is the host of this entertainment program while Mr. Shamoon Abbasi, Ms. Sabahat Bukhari, Ms. Sania Saeed and Mr. Azfer Ali are amongst the guests who have participated so far in it. PR
KaRaCHI: After a successful launch of PTV Sports Channel, Pakistan Television reached crossed another milestone by virtue of the launch of PTV World (English Channel). It is indeed the sole and entire efforts of the Managing Director, Mr. Yousuf Baig Mirza and his visionary team. The English Channel was, recently, inaugurated by the President of Pakistan Mr. Asif Ali Zardari at a colourful ceremony. As a matter of fact, Karachi Centre is also contributing to this channel with a variety of programs for the various viewers from different walks of life. This programs package includes diversified program from Politics, Economic, Cultural and Entertainment fields. The talk show titled “Perspective” is a program in which guests, from all over the country as well as abroad, are invited to share their views. So far the distinguished personalities like Danielle Gehrmann (Australia), Fajcsak (Hungry), Mr. Naeem Bukhari, Dr. Z. S. U., Mr. N.N. A., Mrs. Arssalna Javed, Mrs. Maheen, Ms. Nida Saleem, Ms. Samra Muslim, Mr. Yousuf Khan, Syed Javed Iabal, Mr. Tahir A. Khan,
NESPAK gets $ 500m Bakhshabad Dam Project laHORE: NESPAK, a State organization of Consulting Engineers, has achieved a breakthrough by securing a dam project in Afghanistan. According to a press release issued here on Wednesday, NESPAK is the first Pakistani firm, which will design the dam on the Farah River in Bakhshabad. The contract agreement of the project was signed by the representatives of the Ministry of Water and Energy, Government of Afghanistan and NESPAK the other day. The US$ 500 million Bakhshabad (Farah Rud) Dam Project consists of a dam, a powerhouse, appurtenant structures, a barrage 60 Km downstream of the dam, left and right main irrigation canals and irrigation command area. NESPAK will provide services for detailed design, tender drawings and preparation of bidding documents. PR