PRO 29-09-2012_Layout 1 9/29/2012 12:49 AM Page 1
Saturday, 29 September, 2012
SBP’s mood: cautionary; dictatorial
Russia set to throw first toy out of its pram Likely to contest EU energy rules at WTO MOSCOW AGENCIES
Central Bank warns exchange firms against hindering inspection KARACHI STAFF REPORT
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HE central bank on Friday warned the exchange firms of ‘A’ & ‘B’ categories of punitive action against them if they were found deliberately obstructing SBP’s inspection teams in performance of their duties. The punitive action may include, inter alia, suspension / revocation of their licences, permanent disqualification of its directors and sponsors to conduct foreign exchange business in any capacity, said an SBP circular issued Friday. It may be pointed out that the State Bank has the right to inspect the activities of exchange companies at any time it finds appropriate to ensure adherence to its rules and regulations. The regulator reiterated that the money exchangers were required to fully cooperate with the SBP inspection teams and provide full disclosure of information required during the course of inspection, includ-
ing but not limited to their activities, accounts, operations, IT systems and records and no Exchange Company or any official of its entire network shall obstruct or hinder the SBP inspection team that is carrying out duties or functions under SBP directives as well as provide false, misleading or inaccurate information to the SBP inspection teams. BANKS BARRED FROM USING HELD TO MATURITY SECURITIES FOR BORROWING: SBP has decided to prohibit all banks from using the securities classified under ‘Held to Maturity’ category for borrowing from SBP in Open Market Operations (OMOs)/ reverse repo facility with effect from 19th October. Given the liquidity position of the market, it has been decided that securities classified under Held to Maturity category cannot be used for borrowing from SBP in OMOs/ reverse repo facility, said a circular issued by the State Bank Friday. It may be recalled that banks were earlier allowed to use the securities classified under the category in question for borrowing under SBP repo facility (OMO)/ discount window.
Russia is likely to contest European Union energy rules at the World Trade Organization in what would be its first trade dispute since it joined the global body, a government source said on Thursday. The rules, known as the Third Energy Package, restrict gas company Gazprom's control over its European pipeline assets and have been an irritant in relations between Russia and the EU, which accounts for half of Russia's trade. The source, who spoke on condition of anonymity, said Russia - which joined the WTO last month - was looking into whether the EU rules were subject to WTO regulations and that the study should be completed in two weeks. "If the WTO rules are applicable to the Third Energy Package, as well as other measures restricting the Russian imports, we will contest them at the WTO," the source said. "In all likelihood it is (subject to WTO rules)." Once a WTO member initiates a trade dispute, the country with which it is in disagreement has 60 days to resolve the complaint. After the 60-day period, the complainant can ask the WTO to set up a dispute panel to adjudicate on the issue. Trade diplomats say they expect Russia will take some time to settle in at the WTO before engaging in disputes, as China did after it joined in 2001, but others are watching to see whether Russia or one of its trading partners throws the first punch.
LCCI finally makes a contribution to actual business activity Launches directory of trade, industry LAHORE APP
The Lahore Chamber of Commerce and Industry has launched its directory of trade and industry that is one of the major contributions that the LCCI has made for enhancing business activities. The data of LCCI 18,000 firms has been classified into six main business categories covering manufacturers, exporters, importers, traders, indenters and service rendering agencies. These categories have been further divided into business sectors and business subsectors. The directory has 24000 entries of its 18000 members. LCCI has produced a comprehensive trade information directory, which by all means should form an essential references compendium for every firm having business interests in Pakistan.
Oil brims over Extends gains in Asian trade
SINGAPORE: World oil prices rose in Asian trade Friday, extending gains made in New York, as rising geopolitical tensions in the Middle East stoked concerns over crude supply. Spain's announcement of an austerity budget also helped lift the market as it eased fears over an escalation of the eurozone crisis, analysts said. New York's main contract, light sweet crude for November, was up 43 cents at $92.28 a barrel in the morning and Brent North Sea crude for delivery in November added 14 cents to $112.15. "Tensions between Iran and the West reinforced concerns about potential supply disruptions," Phillip Futures said in a market commentary. "Israeli Prime Minister Benjamin Netanyahu drew his 'red line' for Iran's nuclear programme in a speech at the United Nations... and voiced confidence the United States shares his view," it added. Western powers have been pressuring Iran to halt its nuclear programme but Tehran has insisted its efforts were solely for peaceful purposes. Madrid unveiled it 2013 budget focussed on spending cuts and featuring structural reforms agreed with the European Union, bringing relief to the crisis-weary eurozone as it pointed to a full bailout of the debt-strapped nation. IG Markets Singapore said in a commentary the budget is "widely seen as the first step to approaching the EU for a full bailout as it gets its house in order". AFP
A slight plunge Weekly inflation falls ISLAMABAD APP
Sensitive Price Indicator (SPI) for the week ended on September 27, for the lowest income group up to Rs.8,000, registered decrease of 0.53 per cent as compared to the previous week. The SPI for the week under review in the above mentioned group was recorded at 182.31 points against 183.28
points registered in the previous week, according to provisional figures of Pakistan Bureau of Statistics (FBS). The weekly SPI has been computed with base 2007-2008=100, covering 17 urban centers and 53 essential items for all income groups and combined. The SPI for the combined group decreased by 0.37 per cent as it went down from 189.03 points in the previous week to 188.33 points in the week under re-
view. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 7.46 percent. As compared to the last week, the SPI for the income groups from Rs.800112,000, 12,001-18,000, 1800135,000 and above Rs.35,000 decreased by 0.47 percent, 0.45 percent, 0.39 and 0.26 percent respectively. During the week under review average prices of 16 items registered decrease, while that of 9 items increase with the remaining 28 items' prices unchanged. The items which recorded decrease in their average prices during the week under review included onions, bananas, potatoes, garlic, sugar, kerosene oil, chicken live (farm), vegetable ghee (loose), tomatoes, gram
That’s a fruitful meeting PPL's 61st AGM approves 65% cash dividend, 25% bonus KARACHI APP
The 61st Annual General Meeting (AGM) of Pakistan Petroleum Limited (PPL) was held here on Friday. An announcement said that the AGM approved the financial statements together with the auditor's report for the financial year ended June 30, 2012. It further approved payment of final cash dividend of 65 percent on ordinary share capital and issue of bonus shares in proportion of one ordinary share for every four ordinary shares held by members. This is in addition to an interim cash dividend of 50% already paid to the shareholders, bringing total distribution for the financial year 2011-12 to 115 percent cash dividend and 25 percent bonus shares. On behalf of the PPL Board, the Managing Director and CEO Asim Murtaza Khan apprised members about the company's performance, focusing on significant events of financial year ended June 30, 2012. He stated that the company is focused on fasttrack exploration and development activities to bring new discoveries on stream through extended well testing and early production facilities, arrest production decline in mature fields by deploying latest technology, installing booster compression facilities and enlarge portfolio of producing assets through local and international acquisitions.
pulse (washed), mustard oil, diesel, LPG(11 kg cylender), masoor pulse (washed), mash pulse (washed) and moong pulse (washed). The items which registered increase in their prices in-
cluded petrol, lawn, egg hen (farm), gur, rice basmati (broken), red chillies (loose), beef, wheat flour (bag) and wheat. The items with no change in their average prices during the week under review included rice (irri-6), bread (plain), mutton, milk (fresh), curd, milk (powdered), cooking oil (tin), vegetable ghee (tin), salt powdered (loose), tea (packet), cooked beef, cooked dal, tea (prepared), cigarettes, long cloth, shirting, georgette, sandal (gents), chappal (gents), sandal (ladies), electric charges, gas charges (upto 100m3), firewood, energy savor, washing soap, match box, telephone local call and bath soap.