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Organisations must pay tax returns to ensure their contribution in social sector development. — Javed Jabbar
buSIneSS Sunday, 31 March, 2013
Refineries margins likely to hike in 3rd quarter current FY ISLAMABAD: The country’s oil refineries will get additional revenue in 3rd quarter of current finance year due to hike in crude oil price in international market. According to the statistical data, the global crude oil prices (Arab light) stable around US$ 110 per barrel an average of 3% gain petroleum prices in 3rd quarter of 2013 is likely to bode well for domestic sector. As per data domestic gross refinery margins (GRMs) which are preliminary gauge of sector’s profitability are like to stand around US$ 3.5 a barrel in the preceding quarter. Statistical data further revealed that during the current quarter international crude oil prices on an average increase by 1% to average at US$ 111 per barrel as compared to last quarter. On the other hand product prices on an average rose in rang of 3-5% rendering into better product margins in 3rd quarter of current fiscal year. It is stated that Petrol (MS) spread to improve by significant US$4 per barrel to US$ 5 per barrel in 3Q 2013 while margins on High Speed Diesel (HSD) are also likely to US$ 2 to US$ 24 per barrel. Furnace oil margins are expected to remain stagnant near negative US$27 per barrel. The other product like kerosene oil estimated to be up by US$3 to US$ 15. Subsequently, refineries gross refinery margins to show a considerable improvement in 3Q13 as compared to 2Q13 and in 3rd quarter of current fiscal year GRMs are likely to remain around US$ 3.5 against margins in last quarter. It is estimated that Attock oil refinery (ATRL) 3Q margin would remain around US$ 5.5 barrel which much higher than estimate that wasUS$3.5 per barrel in 2Q13.on the other hand NRL’s fuel refinery margins are likely to operate on breakeven level which are higher than estimated US$ 1 per barrel in the preceding quarter. However lube margins which are major contributor to company’s earnings continue to go to sluggish period. With outgoing quarter 3Q13 depicting improved GRMs we expect sector to showcase better core-refinery earning as against 2Q FY13. ONLINE
MULTAN: Women sorting cotton at a local wool factory. INP
Circular debt swells to Rs 711bn in last five years ISLAMABAD
Pakistan, Tajikistan, Afghanistan expected to sign trilateral transit pact
uSAID report further stated that 197 billion rupees are outstanding by private consumers under electricity bills which is major reason of current circular debt. Report said that during fiscal year 2011-12 Peshawar electric supply company uE to poor economic conditions limited (PESCO) have to receive 51 billion transmission and distribution In 2008 circular rupees from its consumers while HyderT&D losses in power sector, abad electric supply company limited circular debt in the last debt was Rs 161.21b (HESCO) has to receive 44 billion five years increased to which increased to rupees from consumers. Similarly, Rs 711 billion rupees. Quetta electric supply company According to uSAID report Rs 235.65b in 2009. limited (QESCO)’s liabilities are for the Causes and Impacts of In 2010, the circular debt 48 billion rupees, Lahore electric Power Sector Circular Debt in supply company limited Pakistan in 2008 circular debt increased to Rs 365.66b and (QESCO) 23 billion rupees and was 161.21 billion rupees that in 2011 this amount swelled Gujranwala electric supply comincreased to 235.65 billion in pany limited (GESCO) 5 billion 2009. Similarly, circular debt in to Rs 537.53b. During rupees. 2010 increased to Rs 365.66 bilthe current fiscal year, Faisalabad electric supply lion and in 2011 this amount company (FESCO) remained swelled to Rs 537.53 billion. Durthe circular debt failed to collect 7 billion rupees from ing current fiscal year circular debt has increased to its consumers and Islamabad electric increased to Rs 872.41 billion. supply company limited (IESCO) have Report revealed that poor revenue colRs 872.41b liabilities of 2 billion with its consumers. lection from the distribution companies in uSAID report informed that MEPCO consumers 2012 added Rs 86.90 billion into the circular debt have not paid 14 billion in electricity bills and this while another amount of 72 billion rupees added due to poor recoveries by HESCO, PESCO, SESCO and QESCO. amount is major element in circular debt.
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DUSHANBE INP
Construction of the railway link connecting Tajikistan, Afghanistan and Turkmenistan as well as implementation of the Central Asia South Asia Electricity Transmission and Trade Project (CASA 1000) were the focus of a meeting of Tajik President Emomali Rahmon with Afghan Foreign Minister Zalmai Rasoul that took place on Friday. According to the Tajik president’s official website, the sides also discussed cooperation between relevant bodies of the two countries for implementation of ambitious regional projects. They reportedly expressed hope that a trilateral trade and transit pact that would be signed between Tajikistan, Afghanistan and Pakistan would pave the way for further expansion of trade and economic cooperation between the nations. President Rahmon noted that Tajikistan was ready to provide assistance to Afghanistan with training of personnel for its railway and other sectors. The sides also discussed regional security and a number of other issues being of mutual interest, the source said.
LCCI chief’s recipe to lower fiscal deficit The governmenT shouLd Lower The InTeresT raTes as LowerIng by a sIngLe poInT saves rs 100 bILLIon for The governmenT as major Chunk of ITs borrowIng Is from domesTIC means LAHORE ONLINE
Expressing concerns over slow economic growth and increasing fiscal deficit, the Lahore Chamber of Commerce and Industry has said that the country’s economy is at a high risk and remains vulnerable to internal and external shocks. In a statement issued on Saturday the LCCI Pres-
ident Farooq Iftikhar said that the continuous increase in fiscal deficit will pull country’s economy towards major downturn, which is already in precarious condition due to various core issues that need to be addressed on urgent basis.He, however, said that the two main reasons for increase in the deficit is inability to control expenditures and lack of a plan to generate higher revenue in view of severe energy crisis. The LCCI President suggested to the government
to lower the interest rates as lowering by a single point saves Rs 100 billion for the government as major chunk of the government borrowing is from domestic means. He further added that loss making Public Sector Enterprises (PSEs) are damaging the economy by Rs 500 billion per annum but government could save RS 200 billion by applying good governance practices in PSEs for the time being. We request the federal government to take prudent decisions without wasting further time in the larger interest of the country. The current account deficit could also be reduced
LCCI President Farooq Iftikhar
by at least Rs 300 billion by maintaining and regulating public spending and pursuing a sound fiscal policy. Farooq Iftikhar said that fiscal deficit could also be lowered by increasing the government revenue for which effective measures were needed to expand the tax base by bringing all sectors under tax net. He said that there is no doubt that the situation is compounded by an uncertain global environment and a difficult domestic situation but it is also extremely important that all economic policies in vogue at the moment be reviewed afresh in totality.
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Fiscal deficit can be lowered by increasing the government revenue. — LCCI President Farooq Iftikhar
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Experts asks organisations to contribute to socioeconomic development KARACHI
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ORMER federal information minister Javed Jabbar has said that corporate organizations have started contribution in social development which is a good omen but they need to do more in this regard. This he said while addressing at the 5th international summit on CSR 2013 organized by National Forum for Environment (NFEH) with the support of united Nations Environment Program, Karachi Chamber of Commerce & Institute of Cost and Management Accountants of Pakistan, at a local hotel. Javed Jabbar said that corporate sector gives lot of jobs and also spending on education, health and training of people. CSR should be linked to corporate fiscal responsibility and organizations should file their tax returns, he said. FPCCI and other big organizations should make a statement that how much money corporate sector is contributing in social development. A low amount of money is being spent on social science research, which should be raised, he stressed. Jabbar said that Zulfikarabad project has been launched without conducting basic environment assessment. We pointed out authorities but they did not respond positively, he added. “FBR has declared that 300 textile mills are not paying tax returns in due manner. Organizations must pay tax returns so as to ensure their contribution in social sector development, Javed Jabbar concluded. Muhammad Haroon Agar, President KCCI, said several organizations are providing food and other social services to people in Karachi. He said that Pakistan bureaucracy do not want our economy to grow. He said CSR can be simply defined as achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment. It is satisfying to note that over the years, in Pakistan, the corporate sector has focused on responsible business practices highlighting sustainability, social and environmental issues. The companies have started believing in the welfare of not only its employees but its activities that have been directed towards safety, environment, education and social welfare and other issues, directly or indirectly having impact on the communities and environment.
Ateequr Rehman, KCCI executive commit- more crop production. Earlier, in his address, NFEH Chairman tee member, said most of the hospitals let heart and other serious patients to die due to having Naeem Qureshi welcomed the distinguished no money for costly medical tests and treatment, guests for participating in the program and which is matter of great concern, therefore, cor- urged the need to boost social responsibility in porate sector, including hospitals, should adopt the organizations. He appreciated the corporate orsympathetic attitude and provide ganizations’ role in the social free treatment to such patients development and hoped that and save their live as part they would do more as of their corporate social part of CSR. responsibility (CSR). The companies have Two panel disDr. A Bari said started believing in the cussions were also that Indus Hospiheld on CSR imtal is an innovawelfare of not only the portance in which tive healthcare employees but their cross questions organization in were raised the country activities that have been about the probwhich prodirected towards safety, lems being faced vides treatin this regard. ment to those environment, education The experts in serious paand social welfare and penal discussions tients who do stressed the need not have money other issues, directly or to raise the CSR and do not let indirectly having impact contribution in sothem to die. cial development. “Other hospitals on the communities and Forty five compashould also need to environment nies were awarded for feel their social responplaying best role in CSR. The sibility and save human names of the companies are: lives,” he said. English Biscuit Manufacturers; Engro Dr Kaiser Waheed said that 80 percent of companies have started CSR service. Power Gen Qadir Pur; GeII Sapphire Electric He said that local corporations are paying more Project; Pak Arab Refinery; Mariam Ali Moattention on CSR, however, there is need to raise hammad Tabba Foundation; Change In Education; Tourism Promotion Services Pakistan; awareness about social responsibility. Aman-ul-Haq, Manager CSR, Engro Corpo- Procter & Gamble Pakistan; Rafhan Maize ration, said that agriculture is the mainstay of Products; Total Parco Pakistan; Adamjee InsurPakistan and Ghotki is one of largest economic ance Company; Fauji Fertilizer Bin Qasim; contributing districts. This district has also cre- Fauji Fertilizer Company; Human Development ated lot of jobs. He stressed that need to support Foundation; Etihad Airways; Yunus Textile farming community rural areas for raising milk Mill; Karachi Electric Supply Company; Pepsi Cola International; Pak Datacom; Greenwich production. He said that the farming community has university; Total Oil Pakistan; M. Muhammad started producing more milk after companies Shafi & Co; CRLF Crown Group; National started purchasing milk from them at lucrative Bank of Pakistan; Pakistan Petroleum; Engro rates. This has helped them to raise their earn- Foundation; Lotte Pakistan PPTA; Pakistan Toings and generate livelihood with respect. He bacco Company; Fatima Fertilzer Company; said that we have trained 20,000 women in EFu Life Assurance; Oil & Gas Development Sindh for being self-relaint in economy. He also Company; Sui Southern Gas Company; Tameer stressed the need to train farmers for raising Microfinance Bank; Js Bank; Shan Foods; Dr agriculture and dairy productions. There is also Essa Laboratory; Habib Bank; Pharmevo; and need to conduct research on seeds for achieving Abbott Laboratories Pakistan.
pakistani mango exporters urged to explore japan markets TOKYO: Stressing the need for jacking up exports of fruits, Ambassador of Pakistan to Japan, Farukh Amil, said that Pakistani mangoes with their irresistible taste would certainly attract the Japanese market. Speaking to a delegation of Sindh Mango Growers from Pakistan and the Japanese importers here, he hoped that Pakistani mangoes would be marketed in Japan, meeting all the Japanese standards, this year. He said Pakistan produces very high quality world-class fruits and vegetables, which are excellent in taste. He said despite a huge agriculture market in Japan, Pakistani products are largely absent which calls for unhindered efforts on the part of Pakistani exporters to find ways and means to increase and sustain exports in the world markets. The Ambassador reiterated the three Ps i.e. preservation, packaging and presentation for marketing the products in Japan or elsewhere in the world. He urged the delegation to meet the Japanese standards of packaging. He assured the Pakistani businessmen and Japanese importers of the Embassy’s full assistance in marketing the mangoes and other fruits and vegetables to Japan. Earlier, Mahmood Nawaz Shah on behalf of the visiting delegation gave a briefing about the quality and export potential of Pakistani mangoes to the world market in general and Japan in particular. He informed that Pakistani mangoes were being successfully exported to the Middle East and Europe. He hoped that the Pakistani mangoes would find a good market in Japan. Earlier the delegation, guided by Dr Talat Imtiaz, held meetings at the Ministry of Agriculture, Forestry and Fishery and Narita Airport Quarantine Authorities. The delegation also visited fresh fruit vegetables farms and the famous Tokyo Metropolitan Ohta Fresh Market. The delegation is scheduled to visit a host of other agricultural farms and orchards in different parts of Kansai region. INP
CORPORATE CORNER Pakistan-Japan Business Forum hosts farewell for vice chairman
ACCA recognizes professionals
an hour long motivational session for the young professionals titled ‘Balancing ACT’. The ceremony was attended by ACCA Members, employers and learning partners. PRESS RELEASE
Unifoam defeats Adsell Cricket Team
KARACHI: “Though you spoke standing in the midst of Karachi Bloom last night, it was sad for the many in attendance who came in touch with you to hear that you are to depart after four years of stay in Pakistan,” this was said by Pakistan Japan Business Forum (PJBF) Secretary General Kalim Farooqui in honour of PJBF Senior Vice Chairman Nakagwa-San. “You would be missed as your understanding and cooperation to PJBF as it’s Senior Vice Chairman was commendable,” he added. “Bidding farewell sounds sad and gloomy and it is for this reason PJBF mentions “PHIR MILENGAY” meaning, we will meet again,” he said, adding that ss most of the attendees at the party have business with Japan, as you and your Company do with Pakistan, I am sure there will be occasions where our paths will cross again.” “I am leaving tonight for an overseas trip which will also take me to Japan where I will be calling on my friends at Marubeni with whom my relations stretch over three decades,” he added. “As I write this message to you, two of my staff members are in Myanmar meeting Asayama-san in Napitaw who as he mentions was stationed with you once in Bangladesh,” he maintained. “Also, your predecessor, Yamamoto-san, also the Senior Vice Chairman at PJBF during his tenure in Pakistan informs me that he is retiring this month as the Managing Director of Marubeni Protechs, a subsidiary of Marubeni Corporation,” he said. PRESS RELEASE
ISLAMABAD: ACCA Islamabad held its New Members Ceremony recently to celebrate the achievement of 91 new ACCA members from the north region, who have attained the membership milestone during the last year. The ceremony commenced with welcome address, delivered by Arif Masud Mirza, head of ACCA Pakistan who welcomed the new members to the ACCA fraternity and motivated them to continue their training and development through Continuous Professional Development for successful career progression. Later, Noor Aftab, head of ACCA Islamabad congratulated the new members on their remarkable success and shared with them the benefits of professional training and development required by these new members in order to excel further in their career. The ceremony was presided over by key note speakers Saif Rastgar, Director Operations, Rastgar Engineering, Saeeda Sabah Rashid, Senior Financial Management Specialist (SARFM), The World Bank and Malik Mirza, CFO, U microfinance Bank and ACCA Pakistan Members Network Panel’s Chairman. ACCA Islamabad also presented awards to ACCA’s long standing workplace mentors in Pakistan including Murtaza Ali, Director Fin Control, Telenor Pakistan, Iftikhar Chaudhry, Executive Director, Deloitte Pakistan and Khayyam Mushir, Partner, Ernst & Young Ford Rhodes Sidat Hyder. Kamran Rizvi, Director, Navitus conducted
LAHORE: Unifoam defeated Adsell cricket team by 108 runs in the Corporate Champions League Cricket Tournament. In 20 overs game, Unifoam scored 231 runs for the loss of 4 wickets and sets a high score record in the Corporate Champions League Cricket Tournament. While chasing, Adsell score only 123 runs for the loss of 8 wickets. Abbas Ali of Unifoam received man of the match trophy for his brilliant knock of 81 runs and two wickets. Whereas, Unifoam’s Umer Tehzeeb scored 73, Imtiaz Intezar 27 and Sajjad Ali scored 19 valuable runs. PRESS RELEASE