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Wednesday, 29 August, 2012
What happened to the Korangi pipeline project? KARACHI
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STAFF REPORT:
he industry representatives have demanded of the Karachi Water and Sewerage Board (KWSB) to execute the Rs38.4 million water pipeline project for Korangi’s Tannery Zone. In a joint statement issued Tuesday, Patron In-Chief Korangi Association of Trade and Industry (KATI), S M Muneer, President All Karachi Industrial Alliance Mian Zahid hussain, Chairman Pakistan Tanners Association (SZ) M Khurshid Ahmed and Vice Chairman, Fawad Javed while appreciating Governor Sindh Dr Ishratul ebad Khan’s special allocation of funds for the exclusive project of water pipeline to the tannery zone for supply of five million gallons per day, asked the KWSB Managing Director to order the contractor to execute the work without further delay as the project which was approved by the Governor Sindh on urgent basis is being delayed inordi-
‘Pakistani exporters utilize only 10% items under US GSP list’ KARACHI APP
Pakistani exporters were using only ten percent items from the list of 3,400 products which are allowed duty free in US market under Generalized System of Preference (GSP). This was stated by Deputy Assistant U.S. Trade Representative for South and Central Asia, Mara Burr while addressing Pakistan businessmen from USA via video link from Washington at a roundtable hosted by US Consulate in Karachi on “expanding and Diversifying Pakistan’s exports to the United States” at a local hotel on Tuesday. She said that lack of awareness about GSP among Pakistani exporters was the major reason for meager utilization of duty free trade access facility. She underlined the need for introduction of transparent laws and simple legal arbitration procedures to attract US investment into Pakistan. Ms Burr noted that Pakistan’s exports to USA can be expanded by supporting Pakistani women entrepreneurs and small and medium enterprises (SMes).
LCCI tells a horror story LAHORE APP
Lahore Chamber of Commerce and Industry Tuesday feared that dollar surge could reignite high inflation and halt growth by hitting all the important sectors of economy. The LCCI President Irfan Qaiser Sheikh said here that recent surge in the prices of greenback would not only jackup the input cost but also erode profit margins, therefore, State Bank of Pakistan needs to ascertain the factors weakening the value of rupee and check the possibilities of undue speculations and malpractice in the operation of foreign exchange markets in Pakistan to stabilize rupee and restore the confidence of the business community. he said though the weaker rupee benefitted the exporters by giving them more rupees per dollar, but this benefit was neutralized by the costly imported inputs of manufacturing sector including textiles thus eroding the financial advantage of a weaker rupee.
Industrialists call upon KWSB for execution of Rs38.4m water pipeline project nately by the KWSB staff and the contractor. They said that a delegation led by S M Muneer along with PTA Chief Khurshid Ahmed met with Governor Sindh a couple of months ago for release of funds and the Governor has very kindly released the funds required for the project and the KWSB has already received the full amount for the project for over two months.
They however said that KWSB is yet to start the laying of pipeline whereas the export oriented leather industry is suffering badly due to drought like situation in Tannery Zone. They said that water supply has remained suspended for the last few years and now the sub soil water too is not available in the area. Munir said that the second largest foreign exchange earning export industry is suffering badly due to the non-supply of water by KWSB despite the fact that waters is the lifeline of tanning and leather industry. Over billion dollar leather industry is dying due to the want of water and even the wells supplying sub soil water are drying up fast, PTA Chairman Khurshid warned. he said that Governor Sindh had instructed the KWSB MD to lay out a separate pipeline for 5 MGD water to the Tannery Zone so that the dying industry might survive from total collapse. he further asked the Commissioner Karachi to order ZMC east to immediately remove solid waste being piled up in the area due to suspension of municipal work in Tannery Zone since the abolition of city government.
Thai curry in The Trade cauldron BANGKOK APP
Pakistan and Thailand have urged the need to enhance bilateral cooperation in diverse fields, particularly in the areas of trade, investment and tourism for mutual benefit. This was highlighted during a seminar on “Six Decades of Thailand-Pakistan Friendship: Towards Building a Strong economic Partnership,” organized in close collaboration by the Thailand’s Ministry of Foreign Affairs and Pakistan’s embassy in Bangkok. The Seminar was part of the events celebrating the 60th anniversary of Pakistan-Thailand diplomatic relations. On this occasion, a special stamp marking the 50th anniversary of the State Visit of Their Majesties’ King Bhumibol Adulyadej and Queen Sirikit to Pakistan was also issued. Thailand’s Vice Foreign Minister Jullapong Nonsrichai delivered the opening statement, during which he highlighted the importance Thailand attaches to further deepening its relations with Pakistan as part of the “Look West” policy. he expressed the hope that bilateral relations will continue to expand in diverse fields in the years to come. Pakistan’s Ambassador to Thailand Sohail Mahmood delivered a comprehensive statement on the “Future of Thailand-Pakistan Relations.” he inter alia underscored that both sides must build a
Spanish recession set to deepen
substantive partnership, underpinned by a robust economic relationship, both on the bilateral and regional planes. The central focus of the Seminar was on trade, investment and tourism cooperation. Detailed presentations were made on Pakistan’s trade and FDI policies, experiences of doing business in Pakistan, and potential for tourism to Buddhist heritage sites in Pakistan dating back to the Gandhara period, including Taxila. A senior Buddhist monk, Venerable Dr. Anil Sakya, highlighted the religious significance of this shared heritage for the Thai people. Over 150 participants including senior Thai Government figures, members of the business community in both countries, and the media attended the Seminar. Thailand’s Trade Representative (TTR) Pichate Satrichaval (having a Ministerial rank) remained present throughout the seminar. As part of the proceedings, Thailand’s ICT Minister Anudith Nakornthap presided over the ceremony to formally launch the special stamp on the 50th anniversary of the Royal State to Pakistan (in 1962).
MADRID AGENCIES
The Spanish economy is falling deeper into recession and depositors are pulling their money out of the banks, figures published on Tuesday showed, as the government moves closer to seeking a european rescue package. The recession grew stronger in the second quarter of the year and is expected to get worse as austerity measures introduced in response to the euro zone debt crisis cut into demand for goods and services. A rush by consumers and firms to withdraw their money from Spanish banks intensified in July, with private sector deposits falling almost 5 percent, to 1.509 trillion euros at end-July from 1.583 trillion a month earlier. Analysts believe it is inevitable that Spain will soon have to call for
‘New gas policy to encourage investments, boost industrial progress’ ISLAMABAD APP
Gas is ultimate need of industry and the government should restrict utilization of Compressed Natural Gas (CNG) in public transport and use reservoirs to revive industrial sector through providing fuel to power houses. “No country can progress without revival of industry and gas resources should be focused for running industry”, said Samina Fazil, founding member of Women Chamber of Commerce and Industry while talking to APP here on Tuesday. She said one single industry would give job opportunities to hundreds of people and move the country towards the path of progress and socioeconomic prosperity so it should be prime responsibility of the government to take steps in this regard. A number of industrialists and business community of twin cities of Rawalpindi and Islamabad appreciated the government for announcing new incentive based petroleum policy to attract investors in this sector. They expressed the hope that this policy would help produce more oil and gas reservoirs for the country and help resolve the current energy crisis being faced by the country.
Uncle Sam upbeat about our exports Senior US trade officials visit Karachi to promote Pakistani exports
Pakistan, Thailand for enhanced trade, investment, tourism cooperation
AUSTERITY BITES
Gaseous pleasures
KARACHI STAFF REPORT
The U.S. Consulate General, Michael Dodman, hosted an export workshop and discussion with the U.S. Department of Commerce, Office of the U.S. Trade Representative, Senior Pakistani officials and local business leaders. The U.S. representatives are promoting greater U.S.-Pakistan trade relations by explaining how customs regulations and the Generalized System of Preferences can expand trade between our countries. The goal of the program is to expand and diversify Pakistani exports to the U.S. under existing programs. In his opening remarks, CG Dodman noted that “First and most important, U.S. markets are open. The United States is by far Pakistan’s single biggest export market, taking 16% of Pakistan’s total exports. Annually, Pakistan exports over $3 billion to the U.S. and enjoys a large trade surplus with the US.
a european rescue package to help bring its debt costs down as austerity measures designed to slash the public deficit push the economy deeper into recession. Against this background, Prime Minister Mariano Rajoy will meet european Council President herman Van Rompuy in Madrid later on Tuesday, a week before the european Central Bank discusses new measures to help debt costs in european nations hardest-hit by the crisis. The eCB meeting on Sept. 6 also coincides with a visit by German Chancellor Angela Merkel to the Spanish capital and a key longer-term bond auction. “With much more fiscal austerity in the pipeline and unemployment at astronomic highs, the risks are clearly tilted towards a more protracted recession,” said Martin van Vliet, an economist at ING. he expected Spain to formally request additional external financing in mid-September or October. Spain has already negotiated up to 100 billion euros in aid for its ailing banks. BLOATED DEFICIT: Spain’s economy fell back into recession in the first quarter of the year, when output fell 0.3 percent, and government estimates show GDP will probably fall this year and next.
The data came a day after Spain said its economy performed worse than expected in both of the last two years. economists said the outlook could test Spain’s ability to slash its deficit this year to 6.3 percent from 8.9 percent in 2011. “The economy is much weaker than previously thought and this could make it more challenging for the government to achieve the ambitious fiscal targets,” said Tullia Bucco, an economist at UniCredit. Tuesday’s data showed exports provided a degree of support for the economy, growing by 3.3 percent year-on-year in the second quarter. That compared with a fall of 3.9 percent in national demand, after a revised fall of 3.2 percent in the first quarter. The government is hoping that exports will put the economy on the road to recovery. But a slowdown in the wider euro zone, where most of Spain’s goods are shipped, could put that theory at risk. More encouragingly, the Treasury managed to sell 3.6 billion euros ($4.5 billion) of short-term debt, and paid far less to investors than a month ago. The yield on the 3-month bill was 0.946 percent, down from 2.434 percent a month ago, and was 2.026 percent on the 6-month bill, down from from 3.691 percent in July.
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Business 02 Bulls prolong parade KARACHI
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STAFF REPORT
he bulls kept dominating Karachi stocks market on Wednesday with benchmark, KSe 100-share index gained 62.82 points. The day saw the index closing up at 15, 234.48 points against 15, 171.66 points of first working day of the week. Pakistan Stocks closed higher with rising volumes after Apex Court grants three weeks to resolve the NRO implementation issue. Investor interest witnessed in blue chips stocks in oil and banking sector on strong earnings outlook amid hopes for signing of Bilateral Investment Treaty with US. This was said by Ahsan Mehanti, Director at Arif habib Investments Limited. On Tuesday, the trading volumes at the ready-counter were recorded higher at 312.490 million shares against 269.258 million shares of the previous day. The trading value increased to Rs 7.224 trillion compared to Rs 5.930 trillion of the previous session. The intraday high and low, respectively, stood at 15, 304.40 and 15, 171.66 points. Trading took place in 338 companies where loser out numbered gainers 169 to 146 while values of 23 stocks remain intact. he added that the rise in well head gas prices for e&P sector in Petroleum Policy 2012 played a catalyst role in bullish sentiments in the earning announcement
Major Gainers COMPaNy Bata (Pak) Limited Exide (PAK) Mithchells Fruit Atlas Battery Ltd. Abbott Lab.SPOT
Index up 63 points as Apex Court grants 3 weeks over NRO implementation session at KSe amid concerns for uncertainty in global commodities and security issues in the city. The free-float KSe-30 index adds 92.96 points to close at 13, 090.15 points against the previous 12, 997.19 points. The KMI 30-share was up by 71.55 points to close at 26, 864.08 points from its opening at 26, 792.32 points. The KSe all-share index closed with gain of 45.26 points to 10, 740.58 points as against 10, 695.32 points. P.T.C.L.A was the top traded company of the day with 23.144 million shares gains Rs 1 rupe to Rs 17.29 from Rs 16.29. Telecard Limited was on the second position with 22.913 million shares shed Rs 0.43 to Rs 2.67. It was followed by Fauji Cement, Lafarge Pakistan, WorldCall Telecom, NIB Bank Limited, TRG Pakistan Limited and D.G.K Cement with turn over of 19.719 million, 19.294 million, 19.074 million, 16.603 million, 11.295 million, and 9.781 million shares respectively. Bata Pakistan Limited was the biggest price gainer of the day increased by Rs 45.70 to stop Rs 959.75 followed by exide Pakistan up Rs 13.36 to end at Rs 280.62. Major loser included UniLever PakistanXD down by Rs 348.50 to lock at Rs 8501.50 and Colgate Palmolive off Rs 70.10 to close at Rs 1353.23 respectively.
OPEN 914.05 267.26 360.00 278.63 193.70
HIGH 959.75 280.62 373.00 290.00 203.38
LOW 959.75 271.00 360.00 280.00 195.00
CLOSE 959.75 280.62 373.00 288.50 203.38
CHaNGE 45.70 13.36 13.00 9.87 9.68
TURNOvER 200 9,400 500 60,800 76,500
8850.00 1376.00 4002.00 425.00 199.80
8501.00 1352.17 4002.00 390.00 186.97
8501.50 1353.23 4002.00 390.00 188.67
-348.50 -70.10 -68.00 -20.00 -8.13
300 650 160 600 3,000
17.29 2.88 7.17 6.06 3.40
16.29 2.25 6.87 5.65 3.03
17.29 2.67 6.89 5.75 3.16
1.00 0.43 -0.17 -0.21 0.11
23,144,000 22,913,500 19,719,000 19,294,000 19,074,000
Major Losers UniLever PakXD Colgate Palmolive Nestle Pakistan Ltd. Indus Dyeing Service Industries
Exchange the old Rs 500 notes! KARACHI STAFF REPORT
The State Bank of Pakistan (SBP) has reminded the general public to exchange old design and bigger size banknote of Rs 500 from the field offices of SBP Banking Services Corporation (SBP BSC) and over 10,000 branches of banks throughout the country till the close of banking hours on October 01. The SBP and SBP BSC would neither exchange nor be liable to pay any value of such banknote to any person or a bank after the above mentioned deadline, the central bank said. It may be recalled that Rs 500 old design and bigger size banknote had already been demonetized by the Federal Government and, hence, cannot be used as a legal tender. however, it can be exchanged from the field offices of SBP BSC and branches of banks till October 01, 2012.
8850.00 1423.33 4070.00 410.00 196.80
Volume Leaders P.T.C.L.A Telecard Limited Fauji Cement Lafarge Pakistan WorldCall Telecom
16.29 2.24 7.06 5.96 3.05
Interbank Rates US Dollar UK Pound Japanese Yen euro
94.8130 149.7192 1.2064 119.0188
Dollar East US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
BUy
SELL
94.40 117.73 148.36 1.1902 94.74 11.98 25.58 25.03 96.94
95.20 118.89 149.79 1.2015 96.16 12.16 25.80 25.25 99.33
CORPORATE CORNER Color Studio Professionals launch a state-of-the-art kiosk
Rehman, Mona Kasuri, Seema Aziz, Monis Rahman, Rashid Rana, Tehmina Durrani, Farrokh Captain and many others. however, the list is eclectic and contains people from all walks of life and different professions; the main consideration is the impact that a person has created either within their field or within their society, community or country. PRESS RELEASE
Over three million LG Front Load Washing Machines sold in Korea since 2002
NIT’s IFC to be Inaugurated on 30th
SEOuL/LAHORE: LG electronics (LG) announced that it has sold more than three million units of its front load washing machines in Korea in the ten years since 2002, underscoring the company’s reputation for manufacturing quality products. The incredible sales accumulated in the Korean market over the ten year period translate to LG having sold one front load washing machine every two minutes – or an astounding 820 units per day. “It has been a decade since LG sold its first front load washing machine on the Korean market,” said Moon-bum Shin, executive Vice President and CeO of LG electronics home Appliance Company. “We believe its successful sales record in Korea can largely be attributed to LG’s innovative breakthroughs, such as our 6Motion Direct Drive technology powered by the Direct Drive. LG is always working on finding the best possible solutions to satisfy consumers.” PRESS RELEASE
EFU Life’s half yearly profits for 2012 surge by 48%
BISP’s transparency attracts continuous international support
LAHORE: Color Studio Professionals recently launched a state-of-the-art kiosk at Naheed Supermarket, one of the largest and most prestigious departmental stores in the city. The spacious kiosk placed right at the front of the makeup section of Naheed has a built-in makeup counter and nail art section. The first such kiosk of its kind, this setup also has a spacious and well lit display section of cosmetics. “This is truly stunning,” said Malika Lone, a woman shopping at the kiosk at its launch date. “I don’t think I have seen anything like this in Pakistan. I also love the black and chrome finish, and the colorful product displays.” Makeup experts and nail artists will be available at the kiosk during working hours to allow women to actually experience the makeup before purchasing it. “I think this is so cool,” said hameeda haroon, who was waiting in line at the nail counter for her turn. “If I am shopping and I need to get my nails done, I no longer have to go to a salon. I can just come up here and have them doll me up. What could be better than this?” PRESS RELEASE
Pakistan Power 100 awards ceremony to be held in London LAHORE: Carter-Anderson, the publishers and editors of the Global Power 100, are proud to announce the launch of the Pakistan Power 100, a unique ranking of the most influential and successful Pakistanis globally. The launch of the Pakistan Power 100 will take place at a gala event in London on the 29 September 2012, where nominees and people listed in the Power 100 will be in attendance. Among the nominees for the Power 100 will be professionals and business persons such as Abdul Sattar edhi, Imran Khan, Syed Babar Ali, Mian Mohd Mansha, Sherry
ISLAMABAD: International donors and world community has posed resounding confidence in Benazir Income Support Programme (BISP)’s transparent and technology based systems. BISP has made inclusion of Pakistan possible in the list of 44 countries which are running social sector programmes successfully. Five countries of the world especially India has shown its willingness to replicate BISP like programme in the country as well. This was said by Federal Minister and Chairperson BISP Madame Farzana Raja during her talk in an interview with a leading TV Channel on Sunday. Madame Farzana Raja said that the dream of making Pakistan a welfare state has been fulfilled by virtue of BISP. The Programme has empowered millions of women by giving them identity and socio-economic strength in a society dominated by men. In addition to this, 3 million children of the beneficiary families will be provided free quality education in accordance with the MDGs. In this regard, the World Bank has already signed contract to provide $150 Million and soon DFID will also be providing $100 Million for this initiative of BISP, she added. PRESS RELEASE
Pak-Qatar Family Takaful declares surplus for BancaTakaful participants LAHORE: Pak-Qatar Family Takaful (PQFTL) has declared a Surplus of 53.83 percent of Takaful Donation for its BancaTakaful customers for the financial year ending 2011. This was announced by Mr. Muhammad Owais Ansari, Board Member PQFTL and Chief Actuary FWU AG. This is the 3rd year in a row where PQFTL has announced a distribution of surplus on its BancaTakaful products. The percentage distributed for 2010 was 48% and so 2011 saw a significant jump in terms of the percentage surplus going back to the participant. Surplus, an inherent benefit of Takaful, is calculated on the amount available in the Waqf Fund after paying off all claims and meeting all expenses for the year. The Company will share the surplus amount with Individual Takaful participants on the basis of their contributions to the Waqf Fund. PRESS RELEASE
The Dark Knight Rises in Bahria Town ISLAMABAD: The Dark Knight Rises was premiered at Arena Bahria Town, in a one of a kind “Black Carpet” experience with the captivating ambiance of Gotham city. This eid bonanza was organized by Farooq Butt from Nucleus events. Arena is most definitely a treat for all the people living in Bahria Town & Twin Cities. Socialites, celebrities and business tycoons enjoy the first 3D Gold Class Cinema experience brought to life by the visionary management of Bahria Town. The cinema’s exterior and interior is beyond international standards and gives cinema goers a complete movie experience. The “Black Carpet” Premier featured life size cut outs of characters from the movie along with tremendous lighting effect and sound. The guests were welcomed at the Black Carpet &proceeded to the glamorous backdrop of Batman where they were interviewed by Natasha (Naughty Natty) Pakistans top model. PRESS RELEASE
KARACHI: NIT has established a new, state of the art Investors’ Facilitation Centre (IFC) at Karachi. The centre will cater matters relating to investments in NIT and day to day inquiries / issues of NIT’s unit holders regarding NIT Funds from a centralized and easy to access place (Lakson Square Sadar, (opposite Karachi Press Club) located in the heart of the city. All 22 NIT’s nationwide branches are ONLINe with IFC to help NIT customers in all kind of inquiries and profit redemptions. The centre has also a toll free telephone no. 0800-00648 to bring NIT services on a telephone call distance for perspective investors / unit holders. PRESS RELEASE
KARACHI: eFU Life Assurance Ltd, the largest private sector life insurance company in Pakistan announced its financial results for the half year ended 30 June 2012. The Company registered a strong increase in its profitability, with a profit after tax of Rs. 445 million for the half year 2012 (2011: Rs 300 million). The earnings per share has increased to Rs. 5.24 per share (2011: Rs. 3.53). The increased profitability allowed the Company to declare an interim cash dividend of 15%, i.e. Rs.1.5 per share for the half year as approved in the meeting of the Board of Directors held on 27 August 2012. PRESS RELEASE
ISLAMABAD: President Asif Ali Zardari and Federal Minister & Chairperson Benazir Income Support Programme (BISP), Madame Farzana Raja handing over Waseela-e-Haq Cheque to a BISP beneficiary during 30th to 36th Waseela-e-Haq Draws Ceremony held here at President House. Federal Minister for Finance Abdul Hafeez Sheikh also present on the occasion.
Wednesday, 29 August, 2012