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Pakistan lost $60b of investment in last 3-years
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Foreign Exchange Reserves Page 3 PTCL’s consolidated earnings reflect true picture Page 8 Pages: 8
profit.com.pk
Thursday, 03 November, 2011
Pak-US water talkS
US vague on financial assistance for dams ISLAMABAD
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NA stresses implementation of petroleum policy MNa demands investigation into uninterrupted gas supply to industrial unit of Hina rabbani khar g Committee demands implementation on gas supply schemes in members constituencies g Committee protests PM’s rejection of recommendations g
ISLAMABAD
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ATiONAl Assembly Standing Committee on Petroleum on Wednesday advised the Petroleum Ministry to make its implementation mechanism more effective instead of opting for a new petroleum policy every two years which also affects new investment in the oil and gas exploration and production.
CoMMittee MeetiNg The meeting of the committee was held under the chairmanship of Sardar Talib hassan Nakai which discussed new Petroleum Policy 2011 and other oil and gas sector issues. Petroleum Minister Dr Asim hussain explained to the committee that the Mashal project for lNG imports was dropped considering the expensive cost to the domestic consumers. The project was for supply of imported lNG to domestic consumers. however, the new lNG policy caters to the demands of the industrial sector which could pay the expensive costs. Briefing the committee on the new Petroleum Policy 2011, Director General Petroleum Concessions Sher Khan said the country was faced with a severe energy shortfall and new incentives were required to expedite exploration activities. he said the policy draft has been sent to provinces for comments and will be present before the Council of Common interests for approval.
New ProPoSed PoliCy Under the new proposed policy, he said the new blocks will be awarded in a transparent manner based upon international competitive bidding procedure. he said the new policy abolishes previous system of zones and offers a price of $6 per mmBTU for new discoveries instead of bracket rates of $4.38 to $5.03 mmBTU offered in 2009 policy. he said shallow discovery will be offered price of $7 mmBTU, deep $8 mmBTU and ultra deep $9 mmBTU. To promote offshore exploration, a bonanza of $1 per mmBTU will be given for first three discoveries. he said the new gas price will be extended to existing leases provided they enhance their production by 20 per cent over and above their approved commitment plan by the government. Terming the new petroleum policy similar to the old ones, Chaudhary Barjees Tahir of PMl-N advised the ministry to remove bottlenecks in the policy by making implementation more effective as no petroleum policy has achieved its targets. he said the government claims Oil and Gas Regulatory Authority (OGRA) is fully independent but
its determination to decrease petrol prices by Rs4 per liter was tampered by the ministry of finance which allowed only a reduction of Rs1.50 per litre.
PettroleUM levy Petroleum minister explained that the parliament has given powers to the government to impose petroleum levy at Rs10 per litre on petroleum products. he said the finance ministry has not passed on the full impact as it might have retained the remaining under petroleum levy. Chairman Talib Nakai complained that the committee unanimously passed a resolution during the last meeting recommending to the Prime Minister to shift OGRA under the administrative control of the petroleum ministry but it was turned down. The committee decided to call on the PM to protest against non-implementation of their recommendation.
wHite elePHaNt? A heated exchange took place between the acting Chairman OGRA Sabir hussain and members who termed the entity a white elephant and most corrupt department. hussain claimed that the body consisted of professionals who were doing their work honestly and allegations of corruption were baseless. Syed haider Ali Shah of ANP said that the Supreme Court of Pakistan has held the degree of the former Chairman OGRA fake, how could he say the allegations of corruption and inefficiency were baseless. Dr Donya Aziz of PMl-Q advised that the bureaucrats should not make tall claims of their honesty and efficiency as they were paid handsomely for their work and integrity by the state. Shahnaz Sheikh of PMlQ brought the attention of the committee that some influential persons were getting uninterrupted gas supplies even though there was gas load shedding. Mentioning foreign minister hina Rabbani Khar by name, she said her unit was getting uninterrupted gas supply. She said the matter was raised with the managing director of Sui Northern Gas Pipelines limited, who said he was helpless as his wings will burn if he took action. Petroleum Minister assured that he would personally look in the matter and give a report to the committee. The committee decided to adjourn its proceedings as the members demanded calling ministry of finance officials to know the mechanism for determining the petroleum levy and cabinet decretary Nargis Sethi to know why OGRA could not be transferred under the administrative control of the petroleum ministry.
Staff RepoRt
hile Pakistan was looking for financial assistance for the Diamer Bhasha dam, Kurram Tangi dam and various other small and medium dams, the United States on Wednesday offered technical assistance for stopping glacier melting in the himalayas bordering india and China. One day water dialogue was held between US and Pakistan on Wednesday. US delegation was lead by the Under Secretary of State for Democracy and Global Affairs Maria Otero, while Pakistan was lead by Secretary Water and Power imtiaz Kazi and Chairman of Water and Power Development Authority Shakil Durrani. An official source said US made no firm commitment on financial assistance for the reservoirs but offered assistance to counter the fast melting glaciers in the himalayas. US was keen to offer assistance for glaciology in the himalayas. it was accepted by the Pakistani side. The details of cooperation will be worked out in coming weeks. US also advised enhancing the scope of Federal Flood Commission to counter floods with better monitoring system. he said the provinces rejected the US demand for setting up a water regulatory body to reduce
water wastage and better water cost recovery as they were of the opinion that the indus River System Authority was managing the function very well. however they showed interest in national water policy and welcomed assistance for stopping water wastage. A statement issued by the Ministry of Water and Power said US reiterated its commitment to support Pakistan in handling water-related problems. US would extend full support to capacity building of Pakistani professionals, improvement of irrigation system, water conservation. it quoted the Under Secretary of State Maria Otero as saying, “Pakistan is our valued partner and we would help it come out of troubles”. Secretary Water and Power imtiaz Kazi said Pakistan wants US support in training, capacity building of officials, introduction and implementation of modern technologies for water conservation. US officials said there is an active consideration for cooperation in the construction of Diamer Bhasha dam and Kurram Tangi dam. it also offered cooperation in the water data collection procedure. The meeting also discussed and reviewed in detail progress and recommendation on establishment of National Water Commission and formation of National Water Policy. The next session of water dialogue will be held in April 2012 in Washington.
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Thursday, 03 November, 2011
debate
Pakistan lost $60b of investment in last 3-years Boi succeeded in diluting the negative impression about investment in Pakistan g 85 per cent local, 15 per cent foreign investment in country g Boi want government to pass mandate of investment from ministries to themselves g $550 investment in doldrums due to unwanted delays g
logue between the stakeholders, Boi have gained identity and visibility among the investors.
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hAiRMAN Board of investment (Boi) Saleem Mandviwala has said that Pakistan has lost $60 billion worth of investment during the last three years due to the ongoing war on terror coupled with deteriorating law and order situation.
deCreaSiNg foreigN direCt iNveStMeNt Talking exclusively to Profit, he said that due to the unfavorable environment for investment, the country was witnessing a decreasing trend in Foreign Direct investment (FDi). Mandviwala explained that foreign investors are not ready to invest in the country due to security concerns and owing to rent seekers that are worsening the situation due to flight of capital. he said that there is an unseen tussle for a conclusive mandate between the Boi and federal ministries as Boi was not welcomed by them when it asked them to resolve and streamline the process and issues of foreign investors. “Actually some ministries do not want Boi to exist as they consider us intruders into their domain. Boi is providing one window opportunity to foreign investors, and pushing ministries to resolve investor’s issues”.
exClUSive BriefiNg Boi is planning to give an exclusive briefing to President Zardari and Prime Minister Gilani in order to convince them to give Boi the mandate to approve investment projects in the country, especially foreign investment. he explained that this step would revolutionise the investment process when foreign investor would be facilitated through one window operation of Boi. Mandviwala laments that unfortunately Boi has become the grievance board of investment as investors come to us to resolve their grievance which is certainly not the role of Boi as it should focus on measures to bring foreign investment in the country.
dilUtiNg Negative iMPreSSioN The Boi Chairman said that Boi have succeeded in diluting the negative impression to some extent about investment in Pakistan among foreign investors. he claimed that the performance and activity of Boi was unprecedented in history. he agreed though, that foreign investment is declining and stressed that Boi, by broadening its role in the last three years have succeeded in bringing record investment from its platform. he said that by starting a dia-
taPPiNg PoteNtial Saleem Mandviwala said that unfortunately past governments did not recognise the real potential of this organisation due to which it could not perform the way it was supposed to. Now the present government has recognized the potential of Boi and has established its office at PM Secretariat. Out of total investment, 85 per cent belongs to local investors while only 15 per cent belongs to foreign investors a figure that needs to go up. he said that in this scenario Boi certainly should not ignore the needs of domestic investors.
BarrierS to eNtry Talking about the barriers and delays Boi is facing, Chairman said that two projects of $550 million were getting delayed due to red tape. in this fast globalising world, he asked how they could expect an investor to freeze his investment when he has other, better alternatives. While briefing regarding future activities for promotion of investment, he said that Boi is organising conferences with Pakistan’s Foreign Missions in order to find out ways and means to attract foreign investment into the country. he said due to such steps Boi will be able to deliver better. he said United Arab emirates (UAe) on the request of Pakistan is organising an investment conference on November 30th at Murree where investors from all over UAe will participate and interact with businessmen to identify better opportunities for investment here in Pakistan.
$200 million for the expansion of Tuwairqi Steel Mills. he hopes that Korea is soon going to be the biggest investor in Pakistan. The Boi Chairman said that Special economic Zones (SeZ) Bill is likely to be approved by parliament till December. he said that SeZs would not only aid in bringing investment to the country but Boi would play a key role in implementing all the projects. he said that as a Nation we have to go for out of the box solutions to enable our country to achieve sustainable growth. The Chairman said that it is not right to ask Boi about the annual investment target when everybody knows that the right of investment stays with the investor, Boi can only facilitate.
$200 MillioN iNveStMeNt he said that Boi has been able to sign a successful deal between South Korea’s largest steelmaker Company POSCO limited and Tuwairqi Steel Mills according to which POSCO would invest ChaIRMan BoaRd of InveStMent (BoI) SaLeeM MandvIwaLa
redefining connectivity the Samsung way LAHORE IMRan adnan
iN an exclusive interview with Samsung Product manager Abu Nasar Siddiq Alvi, we discuss how Samsung has managed to attract a plethora of customers by developing user friendly smart phones. We also discuss the potential of smartphones in the Pakistani market.
Changing the way of communication “Smartphones, tablets and handheld devices have changed the way of communication. Connectivity and social networking have become the need for everybody, as people want to maintain constant connect on the go. Samsung foresees a leadership role and is preparing itself to meet the growing demand of mobile handheld devices.” While speaking to Profit in an exclusive interview on Tuesday, Samsung Product Manager Abu Nasar Siddiq Alvi underscores that the Pakistani market is growing at a very fast pace. Samsung, like other device manufacturers, is trying to cater to the increasing demands of the indigenous market by introducing a new range of products with more innovative features.
Capitalising potential he pointed out that new Wi-Fi hotspots are opening up and telecom operators are looking forward for 3G technology; once connectivity is available the demand for such devices, including smartphones and tablets, would multiply. “Though, right now, operators are not offering high-speed connectivity on mobile devices, even then people are switching to smartphones and tablets. it indicates that people
have demand and purchasing power for such products and Samsung is preparing to capitalise this potential,” Alvi maintained. he underlined that these gadgets were not luxury anymore, but had become a necessity. The demand for tablets and smartphones have witnessed a tremendous increase during the recent year. “Samsung foresees a rapidly growing tablet market. Because people do not want to carry bulky notebooks or small screen mobile phone while enjoying multimedia, social networking and internet browsing. Samsung believes that tablets will now capture the market as it serves the functions of a notebook and a mobile phone,” he said.
Challenge for growth Responding to a query, Alvi said that various blogs and tech-gurus were claiming that Samsung has surpassed its rivals in mobile phone sales, however, the official numbers have depicted that Samsung is currently polled at second place all across world. Speaking about mobile applications, he said that awareness among users was a big challenge in the growth of smart devices. But local applications and social networking are helping people understand what they can do with these modern day gadgets. “People are getting aware about smart phone features and their usability. They are checking weather, updating their social status, reading news and making financial transactions on the go by using tablets and smartphones,” he added.
Galaxy smart-phones highlighting the growth of Galaxy series smartphones, Alvi pointed out that Samsung Galaxy S and Galaxy Sii smartphones had achieved a combined total of 30 million global sales. “Galaxy Sii has set a new record for Samsung, generating more than 10 million sales – quicker than any device in Samsung’s history. The device also recently received five out of the total ten “Mobile Choice Consumer Awards 2011” in the UK as well
SaMSung pRoduCt ManageR aBu naSaR SIddIq aLvI The newest entry-level Android smartphone by Samsung, the Samsung Galaxy Y, is expected to become the preferred choice for youth, due to the latest Gingerbread 2.3 OS. Spec wise the Samsung Galaxy Y is an Android 2.3 Gingerbread handset packing a 3-inch QVGA touch screen, with a 2 megapixel camera, 832Mhz processor, WiFi, Bluetooth 3.0, and sports a 1200mAh battery and of course access to the Android Market. With the new Samsung naming game, along with the Galaxy Y Samsung also launched the Samsung Galaxy W, Samsung Galaxy Y Pro and Samsung Galaxy M Pro. Accordingly, “S” is for Super Smart and for Samsung flagship devices such as the Samsung Galaxy S – “R” is for Royal/Refined and for premium category devices – “W” is for Wonder for high-quality strategic models – “M” stands for Magical for high-performance devices with an economic price point, and “Y” stand for Young, meaning entry level handsets or strategic models for emerging markets, while the “Pro” attachment means the device features a QWeRTY keyboard. as “2011 Gadget Award” for being chosen as the “best smartphone of the year” by T3, confirming it as a runaway favorite smartphone with consumers this year. launched in 2010, Samsung Galaxy S reached almost 20 million sales, making it the highest-selling mobile device in Samsung’s portfolio to date, he concluded.
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EDITORIAL
Food inflation begins T seems the government dose not subscribe to the ‘prevention is better than cure’ doctrine, at least not with regard to energy concerns. Despite repeated warnings, relevant authorities have been unable, rather unwilling, to forestall imminent gas shortage even as fertiliser companies cried hoarse about shortage and subsequent hike in food prices. So as winter sets in, we can expect savage gas cuts to domestic and commercial concerns, compromising agriculture production and stoking food inflation. Coming at the heels of severe electricity shortage that dilapidated industry, production and households, continued power shortage, in this case embodied by unaffordable food, has serious implications for the ruling elite. One, it simply reflects poor planning and poorer governance. Two, it calls the role of market regulators into question. As observed earlier in this space, if the urea price debate centred around official concerns of market manipulation and cartelisation by fertiliser companies, then the regulator should have undertaken serious investigation and subsequent action prior to winter setting in.
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Three, it doesn’t reflect too well on the government’s political acumen, with the landed aristocracy comprising its largest support base now increasingly agitated due to official neglect of the agri-sector. Four, agriculture has not received due attention since the 18th amendment devolved decision-making and revenue collection to the provinces, leaving the entire sector in limbo. Five, and most importantly, despite the centrality of the energy narrative, there is still no concrete action plan to ensure adequate supplies in future. Strangely, islamabad also seems isolated from global social currents. Popular frustration embodied in the so-called Arab Spring was actually triggered by people’s marginalisation, with respective official machineries more interested in running governments than countries. At the heart of Tahrir Square was agflation, the phenomenon of unwarranted increase in food prices. Once popular discontent snowballs into mass mobilisation, governments find even their staunchest aid-dispensing patrons reluctant to continue interaction. For its own sake, as much as the people’s, islamabad would do well to heed people’s concerns.
About E›commerce The idea of a common platform for those interest in shopping from all over the globe, is an idea indeed is extremely appealing. As long as the platform is user friendly and more importantly safe, those interested in the exchange would be satisfied and would continue to get involved in the practice. e-commerce makes the task of attaining information and also sharing it, extremely convenient and accessible. To ensure that the global economy continues to prosper, the “international operation” is definitely going to enhance the international economic situation nowadays. And yes, the fact that we can contribute our share to the international e-commerce by some very attractive products is also positive.
Revisiting free›market fundamentalism The statement that the future of capitalism is being challenged as the financial tsunami that has hit the western world is now on the brink of washing it away, thoroughly justifies the current economic scenario. We have always been the silent victims of the western countries in the name of capitalism. We must redefine our goals and move towards a just social order. i myself am not a pro-communist, but i do support an egalitarian society which has to be based on the principles of equity. The writer has quoted a good example of imran Khan’s rally which truly proved to be a symbol of change and a move towards a just and equitable social order.
FAIzAn KHwAjA
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Foreign Exchange Reserves
Rizwan Maqsood VeRY now and then we hear about our foreign exchange reserves reaching a record high or low, though with not much interest. During a recent visit to the USA, our finance minister Abdul hafeez Sheikh proclaimed "Pakistan can meet its debt repayments obligations while maintaining foreign exchange reserves of over $16 billion ". A surprising statement considering the shortage of funds at home to provide basic necessities such as electricity and transportation (we all know current status of PiA and Pak Railways). One would ask what is this foreign exchange reserve (or simply forex) actually is and is it of any importance? Well, put simply, it is the ability of a country's state bank to pay for its obligations. monetary Simple isn't it but these obligations are not necessarily debt repayments, rather these include payments against everything and anything that is either purchased by the government or an individual of that country in international market. The "foreign exchange reserve" is the ATM machine they go to to withdraw required amounts. it consists of a pool of major currencies and in Pakistan's case it is primarily US dollars, pound sterling and euros. Major sources of fore are foreign direct/in-direct investment by multi-national organisations (very rare these days), remittances by expatriates around the world (the largest source of foreign exchange income in pakistan), foreign loans (also one of the major contributor to our foreign exchange reserve) and foreign aid (either humanitarian or development aid). Foreign exchange reserves are also dependent upon trade. A country with a trade surplus enjoys more economic independence and eventually more political freedom, able to work and device its policies au-
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The huge increase in our foreign exchange is primarily due to additional loans taken immediately after elections
tonomously and achieve goals and objectives. Whereas in case of trade deficit, the difference is covered up with loans from "friendly nations and financial institutions" such as USA, iMF and World Bank, which feed corrupt leadership to their own agendas and exercise influence from foreign policy to increase in electricity tariffs (prime example is of Pakistan). As of today, our foreign exchange reserves are over Rs17 billion and exceeded the $18 billion mark in August for first time in history. On the contrary, our reserves were around $8 billion back in 2008 due to capital flight after the assassination of Benazir Bhutto and political turmoil that followed under President Musharraf. it seems a remarkable performance by our current government, boasted every now and then by our finance minister, but raw figures not necessarily show the true picture. The huge increase in our foreign exchange is primarily due to additional loans taken by our elected government immediately after elections. The result is gradual increase in prices of electricity and petroleum and a gradual decrease in subsidies, all on the advice of our friends at the iMF. Secondly, the magnanimous increase in foreign exchange is due to huge foreign aid that we received after the devastating floods in Punjab and Sindh last year, total approximation of which is still questionable and damage due to heavy rains this year shows that no preventive measures were taken by our government during the past year. Thirdly, the spike in international cotton prices bid up prices of our textile goods, a good 70 per cent of our exports, enabling us to bridge the trade gap. The same amount of exports is not at all expected this year, reason being torrential rains in lower Punjab and Sindh caused loss of approximately 1.5 million bales of cotton and severe energy crisis, which are forcing not only international but also local investors to move to Dubai, Bangladesh and Sri lanka, with energy security and better incentives. So, instead of making blank statements in US or back home, our finance ministry needs to manage current reserves extremely cautiously instead of fulfilling one obligation with another loan from iMF, provide incentives such as tax breaks and discounts on export oriented industries, make sure availability of electricity and gas to industry and protection of foreign investment from any political or economical turmoil and finally document, evaluate and invest purposefully foreign aid received from international donors. if we continue to avoid such measures, it won’t be long before we hear of yet another delegation of iMF visiting Pakistan to advise on measure to ensure economic stability and development. The writer is a freelance journalist and economic researcher. He can be reached at rizmaqs@gmail.com
average Joe iNveStor
An engineered upsurge?Real fillip is expected Agha Akbar he weekend was bookended by two days of a massive bull-run, tallying up nearly 600 points (278 on Friday and 309 on Monday) at the leading benchmark, the KSe index. The hike took the bourse up within sight of the next psychological barrier of 12,000 points. That was once again against the run of play for most western markets were on a downswing due to the glory that is no longer Greece.
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After that surprise surge, said to have come owing to a buying binge by institutional investors, for the last two successive days the market has closed in the twilight zone, losing 106 points on Tuesday and not by much in the next session. The market insiders however claim that the upsurge was an engineered one, with the big boys combining to give it an artificial boost. Some real fillip, says Mr Ali Malik, CeO of the First National equities, will come with another interest rate cut in the next monetary policy – which he again predicts is in the offing. And the real boon if the capital gains tax goes. Whatever the case, the times stay unpredictable and the Average Joe investor needs to remain on his toes constantly. The announcements season, when the excitement is high and frenzied, has fizzled out. And
the next payouts are not that close by, hence the activity is likely to remain sluggish – the volume Wednesday was less than 64 million shares traded. The fickleness of the market therefore rules out going for highend expensive shares, for when they fall, they fall big – though conversely when they rise, they rise spectacularly. But for the Average Joe, since total elimination is not an option when dealing in stocks, minimising risk is always a priority. So the ‘go area’ that one must prefer would be low-end shares where one could make a decent killing through quick margins. Unfortunately, not many are available at the moment. As i mentioned before, somebody had advised me to buy Fatima Fertiliser when it was trading at under Rs15 apiece. The promise sounded good:
SHaHaB Jafry Business Editor
kUNwar kHUldUNe SHaHid Sub-Editor
BaBUr SagHir Creative Head
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HaMMad raZa Layout Designer
after another rate cut in the next monetary policy announcement
it shall be trading around Rs25 in a month to six weeks. it kept its promise, and has arrived there. But it would have been a speculative move then, but one would have felt well within the comfort zone going for it. One didn’t, and with its books still not balancing and its main sponsor a big fish, at the current tab this would be a very risky option – more so as any further capital gain seems unlikely. While Fatima Fertiliser is no longer an attractive possibility, fertiliser as a sector still retains its charm because of its huge potential for profitability – with each bag produced guaranteed to be sold at prices that have seen a steep hike. And here with engro having one issue or another (the latest was a spat with the excise department),
it is the brace of Faujis that stand out. The more powerful of the two is the parent company, the FFC. And at Rs180 each (it has come down after nearly touching Rs200), this is not yet in the expensive zone, but again the Average Joe has to weigh his options before taking a plunge. Though the Chhota Fauji, the Bin Qasim, too has appreciated a great deal to trade at Rs60 apiece, this still falls in the realm of affordable – another consideration, it is a December closing scrip. Some really cheap options are still available in a sector or two, but the word count is up, so let us leave it for the next week. The writer is Sports and Magazines Editor, Pakistan Today
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email: profit@pakistantoday.com.pk Ph: 042-36298305-10 fax: 042-36298302 website: www.pakistantoday.com.pk
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Materialisation of commitment made for resolving circular debt and that of CGT review may disallow the expected low volume price erosion session
news
Hasnain asghar ali at aziz fidahusein
LCCI asks govt to expedite work on Pak-Iran pipeline LAHORE
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Staff RepoRt
AhORe Chamber of Commerce and industry Wednesday urged the government to expedite work on iran-Pakistan gas pipeline and complete it as early as possible. in a statement issued here, the lCCi President irfan Qaiser Sheikh said that lahore Chamber of Commerce and industry had credible reports that the work on this multimillion dollar project is stalled for unknown reasons but was unable to understand the causes of the delay in this highly beneficial project of national importance when the gas pricing formula had already agreed in 2009 and Tehran and islamabad had
also inked the final agreement to launch the project by spring 2014. The lCCi President said that the iranian government had already completed their part of the project and if Pakistani authorities show some interest, the pipeline would complete much earlier than the stipulated period which is actually the need of the hour. irfan Qaiser Sheikh said that the severe shortage of gas in the country calls for extraordinary measures on war footing and the people sitting at the helm of affairs should gear up their efforts for the early completion of the project. he said that the government should also take the business community in general and the lahore Chamber of Commerce & industry in
particular on board on this project as the shortage in the province of Punjab exacerbates to further severity. Since there is no shortage in the other provinces so that industrialists who are planning to shift their operations to other countries could be asked to shelve their plans. The lCCi President said that there a huge number of industries where the gas is basic raw material and due to its acute shortage there would be no work in these units while the graph of unemployment would go up further. irfan Qaiser Sheikh said that if the federal government takes the private sector on board on this mega project it would not be adding any cost to it but definitely ensure its early completion.
CCP included in GCR’s ‘Rating Enforcement’ ISLAMABAD Staff Report
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he Competition Commission of Pakistan (CCP) Chairperson Rahat Kaunain hassan said that more than 170 cases of CCP were pending in various courts of law, which do act as an impediment in transmitting the real fruit of actions taken by CCP to the masses. The CCP Chairperson while addressing a 12th quarterly meeting of Competition Consultative Group (CCG) said that CCP is pursuing expeditious disposal as the outcome of these pending cases would be crucial in giving a direction both to CCP as well as to the business community. She wel-
comed the appointment of Competition Appellate Tribunal’s Chairman by the government saying that the tribunal is a step forward in resolving the pending cases. The CCP Chairperson while addressing a 12th quarterly meeting of Competition Consultative Group (CCG) said that resolution of the funding issue is crucial to make CCP a sustainable institution and there has been some progress in that regard. The CCP Chairperson while enumerating the factors leading to making CCP a robust law enforcement agency said that dedication and hard work of the tenacious team members of CCP have led the institution to become the first regulatory authority from South Asia
– ahead of its counterparts in China, india and Singapore – to be included in the Global Competition Review’s Annual “Rating enforcement.” ”Global Competition Review (GCR) is the world’s leading antitrust and competition law journal that is chiefly consulted by lawyers, competition authorities, economists and academics to keep abreast of the latest developments in competition law. it is told that CCP has ‘reduced costs by 20 per cent since 2009, and is reaching a 40 per cent reduction this year’. The assessment commends this efficiency and observes that it ‘shows the authority is managing to up the pace of enforcement while reducing costs.
he said that the reports about suspension of work on Pakistan-iran gas pipeline had sent a very wrong signal to the private sector that needs to be corrected by restarting work on this project so that they could be able to do their businesses with peace of mind. According to the project proposal, the pipeline will begin from iran's Assalouyeh energy Zone in the south and stretch over 1,100 km through iran. in Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project. The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be raised to 55 billion cubic meters. it is expected to cost $7.4 billion.
low gas pressure damaging industrial output KARACHI Staff RepoRt
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RADeRS and industrialists in Bin Qasim industrial zones Wednesday expressed their grave concern over persistent low gas pressure in the industrial zones. The industrialists expressed their concern in a statement issued jointly by Mian Muhammed Ahmed, Patron-in-Chief, President Usman Ahmed, Vice President Abdul Rasheed Jan Mohammed, chairman law committee Shakil Ashfaq and the managing committee of Bin Qasim Association of Trade and industry (BQATi). Usman Ahmed, President BQATi, briefed that the Bin Qasim industrial zone was getting gas pressure as low as 1-2 psi.
Index recovers on account of OGDC to post minor losses Karachi Staff report
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RiPle digit decline during early trade following regional and international trend was well countered singly through low volume strength in OGDC, thereby allowing the index to re-enter positive zone from deep red, while accumulation in various frontline stocks on dips along with high volumes in penny stocks and group specific midtier stocks made substantial contribution to the turnover. extended holding period for MTS borrowers due to eid holidays along with volatile and uncertain political and economic environment did restrict even the resident participants from making fresh bets, mainly on strength, thus leading to prolonged stagnation. After initial trading hours, approval by the cabinet of giving MFN status to india invited vibrations in the beneficiaries, mainly the cement stocks, despite the fact that approval from the
CCP first South asian regulatory body included in gCr’s ‘rating enforcement’ ISLAMABAD: The Competition Commission of Pakistan (CCP) Chairperson Rahat Kaunain hassan said that more than 170 cases of CCP were pending in various courts of law, which do act as an impediment in transmitting the real fruit of actions taken by CCP to the masses. The CCP Chairperson while addressing a 12th quarterly meeting of Competition Consultative Group (CCG) said that CCP is pursuing expeditious disposal as the outcome of these pending cases would be crucial in giving a direction both to CCP as well as to the business community. She welcomed the appointment of Competition Appellate Tribunal’s Chairman by the government saying that the tribunal is a step forward in resolving the pending cases. The CCP Chairperson while addressing a 12th quarterly meeting of Competition Consultative Group (CCG) said that resolution of the funding issue is crucial to make CCP a sustainable institution and there has been some progress in that regard. Staff RepoRt
adamjee’s ‘invest for life’ to provide business opportunities LAHORE: Small and medium sized investors will greatly benefit from synergy of the biggest financial group’s companies as they will have a range of products offering good return on their investments, this was stated by Mr Mohsin Ali Shah, head of investment Services MCB, in a press release issued here today. he said that Adamjee life’s “invest for life” in collaboration with MCB investment services, a division of MCB Bank ltd. is a unique product to provide investment opportunity to customers who expect insurance businesses to bring innovative, secure and high return saving options at a time when extreme financial uncertainty is prevalent in the country, he said. Staff RepoRt
Piaf urges suo moto action from SC on kalabagh LAHORE: Pakistan industrial and Traders Association Front (PiAF) has urged the Chief Justice of Pakistan, Justice iftikhar Mohammad Chaudhry to initiate suo moto proceedings and direct work on Kalabagh Dam if the politicians fail to create consensus on this mega project of national importance. in an issued press statement, Chairman PiAF, Sohail lashari said that, the Pakistan industrial and Traders Association Front (PiAF) along with other subject specialists and experts would belie before the judiciary all the wrong perceptions about Kalabagh Dam. he said that it would be proved that the construction of Kalabagh Dam is of utmost importance to get rid of electricity shortage, closure of industry and unemployment. The Kalabagh Dam could generate cheap electricity but the federal government shelved the project with one stroke of the pen and utilized all energies to generate costly electricity through furnace oil. he also said that electricity prices in Bangladesh and india are 9.5 and 9 cents respectively while in Pakistan electricity prices are 14 cent per unit. Staff RepoRt
agri expo to address farmers’ concerns LAHORE: A two day international agriculture conference and expo arranged by the Farmers Associates Pakistan (FAP) aimed at highlighting the agriculture, livestock, agro-based industries and food sector potential, progress and problems. FAP President, Dr Tariq Bucha speaking at the concluding session highlighted the deliberations made at the two day conference discussing various problems and their solutions to ensure a smooth progress in the agriculture sector. Dr Bucha said that soon they would be going to different districts to arrange growers’ meetings in order to listen to the problems of the farmers, search for their resolutions and raising these hardships at the relevant platforms for their early solution. Staff RepoRt
inflation increases to 11 per cent in october parliament might be a tough ask. The KSe 100 index closed at 11746.09 levels with the loss of 16.63 points, while KSe 30 index lost 77.72 points to close at 11056.10 levels. All Share index closed at 8135.62 levels after losing 10.26 points. Total 105 scrips advanced 115 declined and 93 remain unchanged out of total 313 scrips traded. Declining volumes with increasing values that has become a trend mainly due to massive decline in number of
participants (thanks to conservative method of CGT), prolonged stagnation will therefore continue to pose a threat mainly on high priced stocks struggling to find sustainable multiples and facing liquidity crunch due to circular debt. Government’s check on rate increase along with high and expensive debt will find the price erosion cyclone hard to resist, however stocks away from the mentioned threats will continue to offer consistent dividend yields along with
reporting growth which can be looked for accumulation on dips. Syndicated activity in various speculative or high price stocks, mainly those under threat can be looked for offloading/short selling on low volume strength, while materialisation of commitment made for resolving circular debt and that of CGT review may disallow the expected low volume price erosion session, said hasnain Asghar Ali at Aziz Fidahusein.
ISLAMABAD: The Consumer Price index (CPi) based inflation has increased to 11 per cent in the month of October 2011 showing an upward trend from the corresponding period last year. Secretary Statistics Division, Asif Bajwa while addressing a monthly briefing on Wednesday said that Sensitive Price index (SPi) based inflation has increased by 6.5 per cent and Whole Sale Price index (WPi) based inflation has surged by 15.4 per cent during October 2011 against October 2010. Meanwhile, the CPi based inflation has increased by 1.4 per cent in October as compared to the month of September. in October the SPi and WPi increased by 1.4 per cent and 0.8 per cent over September, last month. JaLaLuddIn RuMI
Profit for e-paper_Layout 1 11/4/2011 10:17 AM Page 5
Thursday, 03 October, 2011
Papandreou's announcement of a referendum took the whole of Europe by surprise
news
french President Nicolas Sarkozy
05
France, Germany demand Greek decision on euro pARIS
G
ReuteRS
eRMANY and France told Greece on Wednesday it should make up its mind by mid-December whether it wants to stay in the euro zone when Greeks vote on a 130-billion-euro ($178 billion) bailout. French President Nicolas Sarkozy and Germany's Angela Merkel summoned George Papandreou for crisis talks in Cannes, before a G20 summit of major world economies, to push for rapid implementation of measures to tackle the euro zone debt crisis, which Athens has thrown into doubt. Sarkozy said Papandreou's announcement of a referendum "took the whole of europe by surprise" and his prime minister, Francois Fillon, told parliament: "europe cannot be kept waiting for weeks for the outcome of the referendum. "The Greeks must say quickly and without ambiguity whether they choose to keep their place in the euro zone or not." Opinion polls suggest most Greeks think the deal thrashed out by euro zone leaders last week is a bad one, but much will depend on how Papandreou frames the debate, either on the bailout -- and the painful cuts it demands -- or membership of the euro, which remains popular. Greece's european partners will press for the latter. German Chancellor Merkel struck the same tone of exasperation and
impatience as Fillon in comments before flying to Cannes for hastily arranged meetings of european Union policymakers (1630 GMT) and with Papandreou (1930 GMT). "We agreed a plan for Greece last week. We want to put this plan into practice, but for this we need clarity and the meeting tonight should help with precisely this," she told a news conference with Turkish Prime Minister Tayyip erdogan. Germany's finance ministry hinted that european partners and the international Monetary Fund may withhold the next 8 billion euro aid installment to Athens, due this month, until after the referendum. "The tranche has not yet been paid. That is the situation today. how things proceed is yet to be seen. But according to everything we hear from Greece, there is no urgent need for the payout until mid-December, more or less," finance ministry spokesman Martin Kotthaus said. eU leaders endorsed the disbursement of the money last week, but the iMF board has yet to set a date for a decision. An iMF source said the way forward would depend on the outcome of Wednesday's eU talks with Papandreou, which iMF Managing Director Christine lagarde will join. French officials said Papandreou would be pressed to put the bailout deal to parliament first in hopes of reassuring financial markets which panicked when he called the plebiscite.
WEEKS OF UNCERTAINTY
Win or lose, his gamble guaran-
tees weeks of uncertainty just as the 17-nation european currency area is desperate for a period of calm to implement the remedies agreed to corral its sovereign debt crisis. Some in Papandreou's party called for him to quit, accusing him of endangering euro membership with his shock decision to call a popular vote, a move that pummeled the euro and stocks. The Socialist prime minister battled late into the night to win cabinet support, giving him at least a stay of execution before a confidence vote in parliament on Friday. "The referendum will be a clear mandate and a clear message inside and outside Greece on our european course and participation in the euro," Papandreou told a cabinet meeting that lasted seven hours. european Commission chief Jose Manuel Barroso urged Greeks to unite in support of the bailout plan, warning that the alternative would be too ghastly to predict. "Without the agreement of Greece to the eU/iMF program, the conditions for Greek citizens would become much more painful, in particular for the most vulnerable. The consequences would be impossible to foresee," he said. if Papandreou wins the confidence vote, the euro zone faces a period of policy vacuum in which markets can create havoc. if he loses, Greece faces a disorderly default which would hammer europe's banks and threaten the much larger economies of italy and Spain, which the bloc may not have the means to
bail out. As a result, the Greek premier's move has aroused anger and surprise in equal measure around the world. "That's enough now: Greeks out!" Kronen Zeitung, Austria's biggest-selling paper, said on its front page. The chairman of euro zone finance ministers, Jean-Claude Juncker, said Greece could go bankrupt if voters rejected the bailout package and Japanese Finance Minister Jun Azumi said: "everyone is bewildered." Juncker, european Council President herman Van Rompuy, european Commission President Jose Manuel Barroso, iMF chief Christine lagarde and an eCB official will also attend Wednesday's talks in the southern French resort town.
ECB IN SPOTLIGHT
Doubt about europe's ability to contain the debt crisis has once more sent markets into a spin and put italy firmly in the firing line. The risk premium on italian bonds over safe-haven German Bunds hit a euro-lifetime high on Tuesday, despite european Central Bank buying of its bonds. ireland's finance minister said the eCB would be forced to pledge "a wall of money" to buy bonds, something many of its policymakers are deeply uncomfortable about. Until the Greek situation is clearer, last week's package of measures is likely to be in limbo, leaving the eCB as the only bulwark against market attacks. The head of Germany's banking association, Michael Kemmer, said
agreement on a 50 percent writedown of Greek debt by its private creditors would have to wait. "i can't imagine a debt exchange taking place before the referendum," he said. Greek Conservative opposition leader Antonis Samaras said Papandreou had acted as a one-man roadblock. "how can banks accept a haircut on their debt if they don't know if Greece accepts it in the first place?" he told lawmakers in a speech. "Papandreou has put the country in the center of a global storm ... a government in such a state of panic is dangerous and must leave as soon as possible." Meanwhile, another premier under fire, italy's Silvio Berlusconi scrambled to come up with measures to placate markets, seeing senior aides and ministers ahead of an expected meeting of the cabinet later.
TIMING, RESULT IN DOUBT
Greek government spokesman ilias Mosialos said the referendum would take place "as soon as possible, right after the basics of the bailout deal are formulated." Greek officials had suggested it would probably be held in mid-January but the interior minister said it could happen as early as December. The Greek press, including dailies traditionally friendly to the government, almost unanimously condemned Papandreou. Center-left newspaper eleftherotypia described the prime minister on its front page as "The lord of Chaos." ethnos, another pro-government paper, called the referendum "suicidal."
CORPORATE CORNER Bok raast islamic Banking starts operations in Sarai Naurang
the company’s efforts.
two days workshop organised by wafaqi Mohtasib office (UNdP)
Community Clinic and fund medical and clinical expenses for the year. Under this program, almost 200 SOS Village children and over 35 resident mothers and domestic staff will have access to free medical check-ups, medicines, dental examination, free screening of new admissions including lab tests, ultrasound, x-rays and vaccinations. pReSS ReLeaSe
Make-a-wish volunteer gets diana award LAkkI MARwAt: Mr Bilal Mustafa, Managing Director Bank of Khyber (BOK) while speaking at the formal inauguration of BOK Raast islamic Banking branch at Sarai Naurang Distt. said that BOK is committed to cater the Banking requirements of islamic Banking as well as conventional in a befitting manner. The inaugural ceremony was attended by BOK’s executive Director, Mir Javed hashmat, BOK islamic Bank Group’s Acting head, Mr Shabbeer Ahmad Sheikh, head islamic Business Development, Mr Sohail Khan along with other notables of the business community.pReSS ReLeaSe
UePl donates rs23 million for flood relief LAHORE: United energy Pakistan limited (UePl), which recently acquired BP Pakistan’s upstream business, has made available about Rs23 million for flood relief in lower Sindh. This contribution is part of UePl’s commitment to the people among which it operates. Approximately Rs21.5 million has been contributed by UePl for flood hit concession areas in Badin, Tando Muhammad Khan, Matiari, Tando Allahyar and Sanghar districts. The remaining Rs1.5 million has been raised through an employee Donation drive with staff contributing generously to supplement
ISLAMABAD: A two-day workshop on ‘Mediation as an Alternative Dispute Resolution Mechanism’ was organised by Wafaqi Mohtasib Office / SPGRM project of UNDP in collaboration with Karachi Centre of Dispute Resolution (KCDR) at Marriott hotel, islamabad. A number of activities were organised during the workshop which helped the participants in enhancing their skills for mediation during the process of complaints resolving. pReSS ReLeaSe
duPont Pakistan provides Medical Support to SoS Children’s village
kARAcHI: DuPont Pakistan Operations (Pvt) ltd under the DuPont Community Fund Program [DCF] will contribute to SOS Children’s Village
kARAcHI: Make-A-Wish Pakistan organised award presentation ceremony of first ever Diana award to their dedicated volunteer, Aymen Saleem. The award was presented to her at a graceful ceremony by British Deputy high Commissioner, Francis Campbell. The ceremony was attended by Nisar Khoro - Speaker Sindh Assembly, Jam Madad Ali – Minister for Science and Technology, Mohammad Ali Shah - Minister for Sports, Dr. Mirza ikhtiar Baig - Advisor to Prime Minister on Textile, S. M. Muneer, Former Test Cricketer, Saleem Yousuf. pReSS ReLeaSe
Nutshell conference speakers highlight need for good governance LAHORE: leading Pakistani entrepreneurs, corporate heads, consultants and other speakers
and panellists at the 3rd lahore Management and hRD Summit organised by the Nutshell Forum, highlighted the need for good governance and strong leadership in the country at all levels, in order to harness the huge potential Pakistan possesses in several areas, including its human resource. pReSS ReLeaSe
Cash Prize for MCB Security guards
kARAcHI: in view of display of dauntless courage and high sense of responsibility by Security Guards, Khan Muhammad and Abdul Qudus, foiling a theft attempt, a cash prize of Rs50,000 each was awarded by Mr Kamran Rasool, Advisor to the President MCB.pReSS ReLeaSe
LahoRe: Caption: Ceo Indus Motor Company, Mr parvez ghias receiving a memento from edB Chairman, Mr aitizaz niazi for being a lead sponsor of auto parts Show held recently in Lahore. PRESS RELEASE
Profit for e-paper_Layout 1 11/4/2011 10:17 AM Page 6
Thursday, 03 November, 2011
06 Markets
top 10 sectors
41% 08% 07% 07% 06%
Chemicals
02% 03% 20% 05% 01%
Food Producers
Construction & Materials Electricity Banks
Fixed Line Telecommunication
Oil & Gas
Real Estate Investment
Personal Goods
Equity Investment Instruments
STOCK MARKET HIGHLIGHTS Index 11746.09 3161.81 2550.54
KSE-100 LSE-25 ISE-10
Change -16.63 -0.5 -7.44
Volume 45,315,448 1,379,156 7,200
Market Value 2,930,559,694 47,180,437 640,780
Major Gainers Company Attock Petroleum Service Industries National Ref.XD Millat Tractors Ltd. ICI Pakistan
Open 414.95 200.10 315.34 384.47 131.69
High 430.00 205.00 324.78 389.45 137.00
Low 409.60 203.49 312.00 381.25 131.00
Close 422.58 204.99 319.91 387.40 133.57
Change 7.63 4.89 4.57 2.93 1.88
Turnover 195,498 851 121,608 10,065 75,460
900.00 676.10 185.50 354.50 5794.00
900.00 669.69 180.00 350.50 5680.00
900.00 672.34 180.92 351.25 5733.00
-34.82 -27.65 -8.33 -4.86 -4.80
64 39 3,830,632 623,624 9
Major Losers Siemens Pak Wyeth Pak Limited Fauji Fertilizer Pak OilfieldsXD UniLever Pak Ltd.
top 5 perForMers sector wise SyMBol
oPeN
HigH
low CUrreNt
CHaNge
volUMe
404.69 120.40 6.98 93.80 334.90
396.00 116.10 6.75 89.30 308.94
396.87 117.57 6.77 92.03 310.82
-6.98 -1.21 -0.12 1.02 -14.37
61,485 833,559 399,510 91,674 314,938
15.00 31.05 71.99 143.49 40.80
14.00 29.29 65.17 137.50 37.06
15.00 29.30 70.64 139.79 37.39
0.00 -1.53 2.05 -0.90 -1.57
1,500 2,485,646 855 4,017 244,529
Oil and Gas Attock PetroleumXD Attock Ref.XD Byco Petroleum Mari Gas Co.XB National Ref.XD
403.85 118.78 6.89 91.01 325.19
Agritech Ltd. Arif Habib CoXDXB SD Biafo IndustriesXD Clariant Pakistan Dawood Hercules
15.00 30.83 68.59 140.69 38.96
Fatima Fert.Co. Wateen Telecom Ltd Engro Corporation Fauji Fert Bin Qasim Fauji Fertilizer
25.29 1.96 124.14 60.49 189.25
25.60 2.43 125.44 60.55 185.50
24.41 1.97 120.80 59.11 180.00
25.01 2.08 123.99 59.96 180.92
-0.28 0.12 -0.15 -0.53 -8.33
8,591,710 8,132,967 4,751,408 4,639,421 3,830,632
Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)
Per Tola (PKR) 55,804.00 51,608.00 1133.00 1025.00
Per 10 Gm (PKR) 47,894.00 44,245.00 973.00 880.00
Per Ounce US$ 1728.00 – 35.05 –
Interbank Rates US Dollar UK Pound Japanese Yen Euro
24.70 1.50 9.00 35.00 11.52
23.25 1.41 8.60 34.00 11.00
23.59 1.45 9.00 34.50 11.00
-0.31 0.00 0.07 -0.48 -0.56
40,885 8,285 3,035 25,300 63,850
Al-Abbas Cement Attock CementXD Berger Paints Bestway Cement Cherat Cement
2.00 51.11 11.79 8.11 7.66
2.00 51.99 12.00 9.11 8.19
1.90 50.81 11.60 8.11 7.50
1.92 51.02 11.91 8.11 8.01
-0.08 -0.09 0.12 0.00 0.35
26,799 108,952 4,762 100 197,042
29.62 2.49 41.17 7.72 22.00
Buy 86.10 117.88 136.79 1.0915 83.96 10.86 23.30 22.77
Sell 86.80 120.04 139.20 1.1134 87.79 11.19 23.64 23.14
Brent Crude Oil
$109.94
6.93 184.30 28.50 7.00 108.00
30.40 3.25 42.00 7.95 22.00
28.14 2.21 39.12 7.01 20.95
28.14 3.08 39.60 7.65 22.00
-1.48 0.59 -1.57 -0.07 0.00
14,022 614,084 16,802 993 70
58.00 169.52 117.00 2.63 168.53
7.90 184.30 28.50 6.90 108.00
6.93 184.30 28.25 6.25 102.60
6.93 184.30 28.26 6.70 108.00
0.00 0.00 -0.24 -0.30 0.00
10 90 5,055 5,004 2
58.00 170.00 118.00 2.79 169.99
58.00 168.50 117.00 2.43 168.53
58.00 168.94 117.94 2.51 168.53
0.00 -0.58 0.94 -0.12 0.00
2,000 240 302 39,802 31
Beverages Murree Brewery Co. Shezan Int’l
8.00 1.75 23.52 28.10 11.58
8.00 1.75 23.90 28.50 11.70
110.49 111.43 150.02 150.00
(Colony) Thal AL-Qadir Textile Amtex Limited Annoor Textile Artistic Denim XD
1.70 11.25 1.67 13.00 18.50
1.11 11.25 1.70 14.00 18.50
AHCL-NOV AHCL-OCT ANL-OCT ATRL-NOV ATRL-OCT
31.00 30.82 4.01 120.42 119.16
31.00 30.82 4.25 121.50 120.30
Abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. Highnoon (Lab) IBL HealthCare XD
102.49 80.00 68.92 28.09 10.92
103.00 80.00 68.26 28.09 11.92
109.00 111.18 145.05 145.58
P.T.C.L.A Pak Datacom LtdXD Telecard Limited Wateen Telecom Ltd WorldCall Telecom
10.89 35.03 0.95 .68 1.13
10.98 34.01 1.00 1.70 1.19
0.69 -4.44
1,170 203
P.T.C.L.A Pak Datacom Ltd. Telecard Limited Wateen Telecom Ltd WorldCall Telecom
11.47 31.65 1.09 1.51 1.32
8.00 1.74 22.54 27.88 11.50
0.00 -0.01 -0.98 -0.22 -0.08
53 23,501 91,748 70,820 2,995
1.11 11.25 1.45 14.00 18.25
1.11 11.25 1.60 14.00 18.49
-0.59 0.00 -0.07 1.00 -0.01
1,000 500 132,822 1,000 1,049
29.45 29.28 3.90 117.90 116.50
29.51 29.32 3.95 119.21 117.71
-1.49 -1.50 -0.06 -1.21 -1.45
376,500 516,500 24,500 201,000 200,000
101.00 78.10 67.01 27.65 10.99
102.10 80.00 68.06 28.09 11.92
-0.39 0.00 -0.86 0.00 1.00
1,283 45 1,557 100 25,154
10.71 34.01 0.90 1.65 1.06
-0.18 -1.02 -0.05 -0.03 -0.07
470,873 500 68,502 152,954 235,458
10.65 34.01 0.90 1.52 1.00
11.77 32.66 1.09 1.68 1.35
11.42 31.65 1.01 1.47 1.15
11.64 32.66 1.03 1.50 1.28
0.17 1.01 -0.06 -0.01 -0.04
4,752,418 1,430 194,249 449,333 649,632
0.50 36.38 0.75 1.70 41.36
0.50 36.50 0.77 1.70 41.80
0.36 36.10 0.70 1.56 41.25
0.50 36.10 0.71 1.60 41.53
0.00 -0.28 -0.04 -0.10 0.17
1 1,022,035 38,682 752,756 220,355
63.16 11.15 5.94 11.15 29.95
64.00 11.29 6.08 11.35 30.20
62.50 10.75 5.79 10.70 29.55
62.69 10.89 5.83 10.89 29.91
-0.47 -0.26 -0.11 -0.26 -0.04
32,694 944,906 319,287 1,929,563 175,090
Electricity Genertech Hub Power Co.XD Japan Power K.E.S.C. XR Kot Addu PowerXD
Banks Allied Bank Ltd Askari Bank B.O.Punjab Bank Al-Falah Bank AL-Habib
SyMBol
oPeN
HigH
low CUrreNt
CHaNge
volUMe
Non Life Insurance 7.00 1.70 22.50 27.50 11.50
Fixed Line Telecommunication
Automobile and Parts Agriautos Indus.XD Atlas Battery Ltd. Atlas Honda Ltd. Dewan Motors Exide (PAK)
Abdullah Shah Colony Sugar Mills Engro Foods Ltd. Habib Sugar Mills Habib-ADM Ltd.XD
Pharma and Bio Tech
General Industrials Cherat PackagingXD ECOPACK Ltd Ghani Glass LtdXD MACPAC Films Merit Pack
volUMe
Future Contracts
Construction and Materials
Ados Pakistan AL-Ghazi Tractors Bolan CastingXD Ghandhara Ind. Hinopak Motor
International Oil Price WTI Crude Oil
$92.36
23.90 1.45 8.93 34.98 11.56
CHaNge
Personal Goods
Industrial Engineering
86.0200 137.6836 1.1020 118.3979
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
Crescent Steel Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.
low CUrreNt
Household Goods
Industrial metals and Mining Volume Leaders
HigH
Food Producers
Chemicals
934.82 699.99 189.25 356.11 5737.80
oPeN
SyMBol
Adamjee Ins XD Ask.Gen.Insurance Atlas Insurance Central Ins Co. Century Insurance
49.64 8.50 34.49 48.67 7.16
49.50 8.50 35.00 50.00 7.50
48.60 8.10 33.86 48.00 7.06
49.40 8.47 33.99 49.79 7.50
-0.24 -0.03 -0.50 1.12 0.34
6,785 1,651 1,110 3,909 1,500
13.50 1.40 65.53
14.50 1.40 65.53
0.00 0.00 0.00
2 1 157
0.30 14.89 17.71 0.86 7.25
-0.02 -1.00 -0.25 -0.02 -0.01
9,463 13,487 19,659 9,495 2,100
Life Insurance American Life East West Life Assur EFU Life Assur
14.50 1.40 65.53
14.50 2.34 68.80
Financial Services AMZ Ventures A Arif Habib InvesXD Arif Habib Ltd. Dawood Equities Invest & Fin.Sec.
0.32 15.89 17.96 0.88 7.26
0.35 15.50 18.34 1.09 7.26
0.22 14.89 17.20 0.86 7.25
Equity Investment Instruments 1st.Fid.Leasing Mod 1.70 3.98 AL-Noor ModarXD Allied RentalModXDXB 19.90 Atlas Fund of Fund 6.00 B.F.ModarabaXD 5.56
1.50 4.00 19.90 6.10 5.56
1.50 3.60 19.88 5.90 5.00
1.50 4.00 19.90 5.90 5.56
-0.20 0.02 0.00 -0.10 0.00
15,000 25,100 3,700 414,000 7
14.00 32.07 36.02 34.00 16.10 69.00 1.61 71.99 4.13 8.50 29.75 16.48 1.92 17.65 19.90 1.25 69.10 61.00 26.00 1.67 10.68 2.60
14.20 32.07 36.02 34.40 16.10 69.00 1.72 72.31 4.39 8.54 29.85 16.48 2.00 18.17 20.77 1.25 69.10 61.00 26.73 1.81 11.05 2.60
-0.30 0.00 0.00 -0.10 -0.40 0.20 0.06 0.10 -0.01 -0.10 -0.72 -0.02 0.00 0.37 0.38 -0.15 -0.40 0.00 0.00 0.08 -0.06 0.00
12,700 1 452 500 3,000 603 672,980 356 14,841 9,125 76,099 1,000 135,521 46,126 57,695 1,000 500 53 400 2,810,071 306,858 31
Miscellaneous Century Paper Pak Paper Prod.XD Security Paper Pakistan Cables P.N.S.C.XD Pak.Int.Con. SD TRG Pakistan Ltd. Murree BreweryXDXB Pak Elektron Ltd. Tariq GlassXD Shifa Int.Hosp.XD Hum Network XD P.I.A.C.(A) Sui North GasXDXB Sui South GasXDXB East West Life Assur EFU Life Assur New Jub. Life AKD Capital Ltd.XD Pace (Pak) Ltd. Netsol Technologies Pak Telephone
14.50 32.07 36.02 34.50 16.50 68.80 1.66 72.21 4.40 8.64 30.57 16.50 2.00 17.80 20.39 1.40 69.50 61.00 26.73 1.73 11.11 2.60
14.25 32.99 37.10 35.00 16.21 70.30 1.84 72.98 4.44 8.73 30.75 16.48 2.15 18.20 20.85 1.25 69.10 63.00 26.73 1.94 11.27 2.80
Mutual Funds fund Alfalah GHP Cash Fund Askari Islamic Asset Allocation Fund Askari Islamic Income Fund Askari Sovereign Cash Fund Atlas Income Fund Atlas Islamic Income Fund Atlas Money Market Fund Atlas Stock Market Fund Crosby Dragon Fund
offer 501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800
repurchase 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
Nav 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
fund HBL Money Market Fund HBL Multi Asset Fund HBL Stock Fund IGI Income Fund IGI Stock Fund JS Principal Secure Fund I JS Principal Secure Fund II KASB Cash Fund Lakson Equity Fund
offer 100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000 106.3763
repurchase 100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000 103.2779
Nav 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087 103.2779
Profit for e-paper_Layout 1 11/4/2011 10:17 AM Page 7
Thursday, 03 November, 2011
“You need strong medicine to relieve your stress. I’m prescribing a puppy.”
taurus
gemini
Your desires are stronger than ever right now, and you should find that you can get closer to achieving them without breaking a sweat. Others may look on with envy, but that's par for the course.
You are doing your best to stand up for tradition -- but even you know when you're beat. Something new and untested is coming your way, and you're not so sure you'll like it. Things will be better soon, though!
Your idealistic nature needs a workout, so get out there and make a difference! Your great mental energy guarantees that you are able to show at least one person how things ought to be.
cancer
leo
virgo
Different people have different ideas about what ought to come next, and you're not sure you agree with them. The good news is that you only need to smile and hear them out -- nothing is settled until at least tomorrow.
It's a good day to lash out at those who are trying to bring you down -- though outsiders are sure to see this as a simple clash of egos. Your energy is just right for a big dust-up!
Try to take care of business a little differently today -- things are looking up for you, and that could mean that it's time for a change. You need to take advantage of this period of uncertainty.
libra
scorpio
sagittarius
Your love life is peaking now, whether you know it or not. It could be that a secret admirer is just about to make themselves known to you, or that your current sweetie lays out all their cards.
You can usually count on a measure of tranquility around the house, but right now, things are tough. You might need to sneak away for some quiet time before heading back into the fray.
Talk to that stranger, no matter how intimidated you may feel. The odds are they feel the same way, and things could start to really get going once you break the ice. Use that great energy!
capricorn
aQuarius
pisces
Finances are still on your mind, so now is the best time for you to step up and take care of the future. You may need to invest, consider your retirement or just work to stop some excess spending.
Change is coming -and you are leading the way! Speak up early, so others can see what you want and how you think it can be gotten. Life is getting better and better, so make the most of it now!
Your dreaming life is even more important than usual today, so make sure that you're paying close attention and recording the details you can remember. They should be important clues today!
gaRfIeLd
CMYK
BaLdo
woRd SeaRCh
BRIdge
how to pLay fill in all the squares in the grid so that each row, column and each of the squares contains all the digits. the object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once.
ghastly gondola habit harvest heinous hopeful however hymn illness learned liable mope onerous policy preach retract romance scandal solicit sore thresh your
Today’s soluTions
ReadIng the Lead
CheSS White to play: play and mate in four moves 8
DOWN
7 6 5 4 3
A
B
C
D
E
F
G
H
CMYK
chess solution
1
1.qe7+ kh6 2.qxh7+ kxh7 3.Re7+ kh6 4.Rh8# 1-0
2
sudoku solution
1 fault (4) 2 kick the bucket (5,2) 3 drily amusing (5) 4 transparent bluish quartz (8) 5 tightly curled fur used in clothing (7,4) 6 humour used in a serious context to relieve tension (5,6) 10 velvety cord used in clothing, carpets etc — hellenic (anag) (8) 12 new orleans (3,4) 15 Mother (found in ancient egypt?) (5) 17 Supporter of the British political party that preceded the Liberals (4)
ashtray betray bolster boudoir bravado budget callous contain convert correct cuticle diploma droplet dutiful easel fare fatigue fighter fissure forlorn frigate gallant
crossword solution
5 Like the words "deed" or "rotor" (11) 7 expand (4) 8 final whistle (4,4) 9 Small flat sweet cake (7) 11 Illegally put to death (5) 13 Single (5) 14 XvI (7) 16 Care of the hands (8) 17 Low dam across a stream (4) 18 powerful cross-bred dog (4,7)
dILBeRt
Sudoku
ACROSS
07
BoondoCkS
aries
CRoSSwoRd
closing bell
Profit for e-paper_Layout 1 11/4/2011 10:18 AM Page 8
Thursday, 03 November, 2011
as india is eyeing other important markets of the region where Pakistan enjoys geographical benefits, we can also face huge losses in terms of exports to these countries
news
08
reaP former vice Chairman, taufiq ahmed
Rice exporters fear liberalised trade with India india eyes other important regional markets g Pakistan to lose markets in iran, Central asia if imports allowed g reaP to postpone MfN issue g rice sector to soon evaluate impact of indian imports g
KARACHI
T
ghuLaM aBBaS
he rice exporters of Pakistan who are already facing cut throat competition in the international market with cheap non-Basmati rice of india are upset about the liberalisation of trade with the neighboring country as free imports from Delhi will result into great losses for both rice growers and exporters. if Delhi who at this point is willing to open its transit route via Pakistan, decides to look beyond the Pakistani markets; the rice sector of Pakistan will lose its markets in iran, Afghanistan and other Central Asian states. Talking to Profit, Taufiq Ahmed Khan, former Vice Chairman of Rice exporters Association of Pakistan (ReAP) said that the rice exporters were too much confused over the move of Ministry of Commerce who through a 15 days notice demanded recommendation over the negative list of trade being prepared for trade talks with india. As the sector needs almost a year to evaluate the impacts of imports from india which comparatively has three times high stock and quality of rice; the exporters have demanded to postpone the enlisting process as they were fearful about the imports from india after granting it the ‘Most Favored Nation’ status. “As india is eyeing other important markets of the region where Pakistan enjoys geographical benefits, we can also face huge losses in terms of exports to these countries,” he said adding that the country’s exports have already
become stagnant in the last one month due to the arrival of cheap indian rice in the international market. Besides that, india also has a bumper crop this year with almost 20 kinds of exportable rice against the only two to three kinds of rice being exported from Pakistan. Sensing the immediate and negative impacts of the proposed imports from india, the exporters have shown their serious concerns over the opening of rice imports. Talking about the ministry’s notice, he said that the exporters were not able to evaluate the impacts of the imports from india and give their inputs within 15 days. “We have demanded to postpone the process as the issue is very serious and sensitive”. According to sources, the competition in the international market was intensified when the import of non-basmati rice from india was started again after lifting a ban. indian government, which had banned private companies from shipping nonbasmati rice in April 2008 amid a global food crisis, lifted that restriction on Sept 8. exports from the world’s second-largest producer were a total of 4 million tonnes in the year. From April 1, indian shipments will account for 11 per cent of global trade this calendar year; overtaking U.S and Pakistan to become the third-largest shipper. Though it was estimated that shipments from Pakistan may exceed 4 million tonnes with the production of 6.5 million tones and an increase of 38 per cent during 20112012, the damages made to rice crop after the heavy monsoon rains in Sindh were also likely to affect the country’s exports.
Banks bid huge sums for MtBs amid heavy SBP injections KARACHI
O
ISMaIL dILawaR
NGOiNG frequency in the injection of billions of liquidity into the banking system could well be interpreted as a severe rupee shortfall in the money market, however, the mammoth bids by the banks for buying riskfree government securities leaves one with no option but to smell a rate. State Bank of Pakistan (SBP) is pumping billion of rupees on a weekly basis into the local banking system to avoid, the central bankers confirm, an imminent liquidity crunch the scheduled banks were nearing to because of excessive budgetary borrowings by the cash-strapped government. According to SBP figures, during the last four-month period, from 17th July to 28th October, the central bank had conducted at least 25 consecutive reverse repo operations and had injected a huge sum of over Rs3.204 trillion to cater to the banks’ liquidity needs. Officials at the State Bank have confirmed to Profit that the injections by the regulators were due to unavailability of liquidity with the banks. But, the fact that the same cash-strapped banks come up with extensive bids when it comes to buying the risk-free and heavily-weighted government securities in the SBP auctions. Wednesday saw the banks making bids having a face value of Rs460.172 billion in response to the regulator’s tender for auctioning the Market Treasury Bills (MTBs) of 3, 6 and 12-month maturity periods. The offered amount is more than double
the central bank had targeted to increase in the Nov 2nd auction. SBP target for Wednesday’s sale of the MTBs was Rs215.359 billion, including additionally required Rs359 million, for which the primary dealers, mostly the banks, bid Rs460.172 billion. This shows an astronomical increase of 114 per cent or Rs245.172 billion when compared with the central bank’s target. Of the total bids, the so-called liquidity-starved banks offered Rs16.404 billion, Rs165.104 billion and Rs278.664 billion to buy the 3, 6 and 12-month maturities. SBP, however, accepted bids having a face value of Rs293.877 billion at weighted average yield of 11.7806, 11.7903 and 11.8470 per cent for the government papers of three respective maturities. The cut-off yield was set at 11.7825, 11.8070 and 11.8769 per cent for the three maturity periods. The scheduled banks have long been under fire for their – what the State Bank dubbed it in one of its monetary policy decisions – risk-averse behaviour towards the growth-oriented private sector in terms of financing. Given their perceived tilt towards government-centric public sector, the profit-conscious banks are expected to pocket handsome amounts through heavily investing in the MTBs and Pakistan investment Bonds that, according to SBP’s auction calendars, would be auctioned to the tune of Rs1.070 billion during Oct-December FY12. This trend puts enough substances behind the reports that the funds-starved government had created a sort of cyclical borrowing network through which it was raising the same liquidity from commercial banks that the State Bank was injecting into the money market.
Urea PriCe Hike
action against fertiliser companies on the cards g
Case being sent to CCP and concerned government institutions LAHORE
A
nnI
CTiON is being taken against fertiliser manufacturing companies for unilateral increase in urea prices. The case is being sent to the Competition commission of Pakistan and other concerned government institutions. This was decided at a high level meeting held in lahore with senior central leader Pakistan Muslim league and senior Federal minister Chaudhry Pervaiz elahi in the chair. Also present in the meeting were advisor to Prime Minister Mohammad Basharat Raja and the chairman, managing director and general man-
ager of the National Fertiliser Corporation. The impact of urea price escalation was evaluated in detail and it was concluded that the unilateral price increase by fertiliser manufacturers did not tally with ground realities and that it was a well planned move to unduly profit from the situation. The meeting also concluded that fertiliser manufacturers were acting like a cartel which was detrimental to the interests of the country’s farmers. The meeting also showed displeasure at the conflicting prices of similar products being produced by the fertiliser companies. The excuses being made by the manufacturers were rejected in the meeting and it was resolved that the government would protect the farmers’ interests at all costs.
PTCL’s consolidated earnings reflect true picture KARACHI
P
Staff RepoRt
AKiSTAN Telecommunication Co limited (PTCl), the largest telecom operator, has underperformed the broader KSe100 index by 33 per cent during 2011YTD, on concerns of its ailing fixed line business segment. “however, we believe, that fixed line is only one-half of the PTCl coin and investors have overlooked the growth story in PTMl (Ufone), PTCl’s 100 per cent owned cellular firm,” said Mohammed Millwala of Topline Securities. Therefore, the analyst said, to capture the complete essence of Ufone’s story, the investors are advised to look at the company’s consolidated earnings rather than stand-alone which is usually
announced at the Karachi bourse after the PTCl board meeting. The disparity is obvious in the company’s recently announced 1QFY12 result in which company posted ePS of merely Rs0.28 on stand-alone basis versus consolidated ePS of Rs0.44. interestingly the market reacted negatively by hearing the unconsolidated ePS numbers of Rs0.28. in addition, our investment case is also driven from growth prospects of its broadband business (subscribers witnessed CAGR of 85 per cent in last 3-years) that has a potential to cushion the decline of fixed line. Overall, we expect company to post a double-digit increase in consolidated profitability of 20 per cent to reach ePS of Rs1.98 in FY12e. We have reinitiated our research coverage on PTCl with ‘Buy’ recommendation, as
the stock is also available at attractive dividend yield of 16 per cent. investors must only look at consolidated statistics as Ufone is becoming a large part of PTCl. Due to the changing dynamics of telecommunication industry (fixed line to wireless technology), Ufone has become the spearhead of PTCl’s earnings growth. As per our estimates, the segment contributed approximately 47 per cent to company’s topline while, approximately 50 per cent of PTCl’ 1QFY12 consolidated ePS (Rs0.44) is attributed to Ufone. During FY12, we believe the pendulum would further swing towards Ufone, with Ufone’s estimated revenue to surpass that of its parent company and segment contribution to consolidated bottomline is estimated to stand around 68 per cent. Our conviction in
Ufone potential stems from its stable growth in subscriber base coupled with turnaround in ARPUs (Average revenue per users). in addition to Ufone, broadband would also be the potential saviour for PTCl, going forward. Broadband segment has witnessed tremendous growth over the years, with subscribers growing by 3-year CAGR of 85 per cent. Though this growth could be attributed to a low base effect; nonetheless low broadband density of only 0.8 per cent compared to country’s total teledensity of 69 per cent leaves ample room for further growth. in 1QFY12 PTCl’s DSl, customer base increased by 9 per cent with a steady market share of 95 per cent. Therefore, with available growth room, we believe broadband would also shoulder the declining fixed line business. We estimate broadband to contribute approximately 8 per cent to the
topline of the company in FY12. The segment growth prospects also stems from being the major beneficiary of company’s CAPeX programme. in the last 3-years, PTCl’s capital expenditure stood at Rs24bn with major expansionary projects like expansion of optical fibre network in Balochistan to acquiring VDSl2 bonding technology for high speed data transfer and many more all coming under the broadband segment. For the past 2-years PTCl has announced cash dividend of Rs1.75 per share accompanying 9month result as against the traditional approach of announcing the result with that of full year result. We believe the deviation is on account of government’s efforts to limit its fiscal deficit. Furthermore, in line with this history we expect the company would announce a cash dividend of Rs1.75 per share in 3QFY12.