Profit - 10 - 11 - 2011

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The rising cost of living and corruption 2 Economics of political rallies Page 3 Civil servants resist cut in perks Page 8 Pages: 8

profit.com.pk

Thursday, 10 November, 2011

EU trade concession package stumbles again at WTO

pakistan to miss wheat sowing target LAHORE

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bangladesh follows india, unexpectedly opposes the facility dhaka’s objection shocking for islamabad g

KARACHI

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GHULAM ABBAS

he much awaited trade concessions package offered by european Union (eU) has stumbled again at World Trade Organisation (WTO), with Bangladesh now opposing the facility for Pakistan.

Shocked by dhaka Pakistan, which was expecting the approval of the “two years unilateral tariff concession” package proposed for Pakistan on almost 75 items to be exported to eU, after the Indian announcement to withdraw its objection over the facility, was shocked when Dhaka opposed the bill in the session of council for trade in goods of WTO held on November 7. In the recently held WTO meeting in Geneva, Bangladesh has opposed the move through a short statement that implied it had some concerns over the trade facility. Bangladesh, which also exports textile items to european countries, stood to oppose the unilateral concession proposed by eU to Pakistani textile makers as an aid measure following the devastative flood in the South Asian country last year. It is worth mentioning here that eU had announced concessions for Pakistan on 75 tariff lines on September 16, 2010, which were subject to the WTO wavier. But the concession package faced repeated objections raised by India in the international organisation. “It was much unexpected” said Mohsin Aziz, Chairman All Pakistan Textile Mills Association while talking to Profit on Wednesday, adding that objections raised by Dhaka were not justified as the country’s exports would not be affected by the limited package offered to Islamabad on humanitarian grounds.

UnrealiStic apprehenSion Bangladesh, which has exported textile items worth $10 billion during the previous financial year – as compared to over $1 billion worth of textile related exports from Pakistan – would not be affected by the expected increase of $2 billion to $3 billion share of Pakistan in the $80 billion eU market. “As Bangladesh has already been given the Least Developed Country (LDC) status on humanitarian basis under which its exports are expected to be over $15 billion during current financial year, Dhaka should not object the limited trade package also offered on humanitarian ground,” Mohsin said. Negating the perception that Bangladesh competes with Pakistan for textiles sales to the european market, the APTMA Chairman said under the special facility, available

under the umbrella of LDC and other positive aspects like lower cost of doing business in Dhaka, Bangladesh had no competition with Pakistan in the european textile markets.

one StUmbling block aFter another he said as the next session of WTO was scheduled for November 30, the government should take the issue seriously and hold talks with the Bangladeshi government before the meeting in order to approve the much delayed facility. eU proposed trade preferences for Pakistani textile makers were opposed at the time when both the Union and Pakistan expected its approval from WTO. Following that, the

Indian objection was considered the only stumbling block in the way of the trade facility. But unexpectedly a Bangladeshi complaint effectively halted progress yet again, seemingly out of the blue. however, sources in the ministry of commerce said Islamabad would discuss the issue with Bangladeshi officials and it was expected that the matter would be resolved before the next session.

Fact check It is pertinent to note that the trade concessions being offered to Pakistan by the EU are only temporary, intended for the duration of two to three years mostly as an abridging mechanism. This is mainly due to the fact that a new GSP plus scheme is expected to come into effect in 2014, where Pakistan would be in a good position to benefit from duty free treatment under GSP plus for a much greater number of products. Most importantly while designing the package EU adopted a win-win approach which is to say that they tried to ensure that there were little if any consequent commercial disadvantages for EU member states or other trading partners of the EU such as India or Bangladesh.

STAFF REPORT

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he country might miss the wheat sowing target this year, as farmers are reluctant to cultivate wheat owing to the highest ever input cost and low wheat support price. Agri Forum Pakistan has asked the government to immediately increase the support price to Rs1,250 per maund and ensure urea availability at control price. Agri Forum Pakistan Chairman, Muhammad Ibrahim Mughal pointed out that the government had fixed the wheat sowing target of 22 million acre, but only 14 per cent of the targeted area (three million acre) could bring under wheat crop. Farmers were least interested in sowing wheat, as production cost had reached to Rs1,025 per maund against the support price of Rs950 per maund. On average, farmers had to bear the loss of Rs2,100 per acre due to low support price, he maintained.In an open letter to the Prime Minister, Syed Yousaf Raza Gillani, he stated that there was a dire need to ensure easy availability fertilisers. he asked the government to import 1.5 million tonnes of urea and bind fertiliser manufacturers to mention retail price on fertiliser bags in order to avoid exploitation and profiteering. Mughal said that farmers were getting urea fertiliser at Rs1,800 per bag, as profiteers were charging unjustified profit of Rs500 per bag.

The subsidy offered to farmers was directly going in to the pockets of federal minister and officials of the National Fertilisers. he further added that if the government could not take any of these steps, it should immediately fix the imported urea price equivalent to locally produced commodity. he estimated that the county might face a wheat production shortfall of 2-3 million tonnes, due to the least interest of farmers. he further stated that the government had fixed the wheat support price of Rs950 per maund some three years ago, but the input costs had been increased by 165 to 225 per cent in the prices of fertilisers, seeds, electricity and pesticides.

Russian grant for Pakistan Steel Mills to be evaluated g

20 russian experts to visit mills for technical survey g mill workers demand proper system KARACHI

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WAQAR HAMZA

he grant of $500m announced by Russia for Pakistan Steel Mills (PSM) would not be of the same monetary value once they have evaluated the exact cost required for rehabilitation. This will take place after a technical survey of the mills in the coming four weeks. Federal Secretary, Ministry of Production, Javaid Awan while talking to Profit said a team comprising 20 experts from Russia is to visit the mills in the coming four weeks to carry out a technical survey, and after that they would gauge the exact cost required for the rehabilitation and expan-

sion of the mills. This in turn could be less than the announced grant. however, PSM workers termed it another gimmick of the current government.

pointleSS grant Awan said this grant is pointless until both governments sign an agreement.

Already, numerous announcements regarding rehabilitation and expansion of the mills have yet to materialise. Talking to Profit, a representative of the PSM Joint Action Committee, Mirza Maqsood, said the prime minister made a similar announcement during his visit to Russia last year. Yet no progress has

been made so far. The current government has dissolved three boards of the mills instead. The federal secretary further said this is a three-year project aimed at increasing production capacity of the mills from 1.1m tonnes to 1.5m tonnes per year. A team of 20 experts from Russia will visit the mills for a technical survey, he added. After the evaluation an agreement would be signed between both countries.

Still a non-entity “This grant will be in the form of a loan, and we may need more than the announced amount once technical evalu-

ation is completed. But at the moment we cannot say anything, so we have to wait till the signing of the agreement in this regard,” Javaid said.

On the other hand, workers at the mills demand a proper working system, adding that the enterprise is being run on an adhoc basis for more than a year.

This despite the fact that the government has restructured new laws for the board of directors, but it is still a nonentity without any powers.

Mirza Maqssod further said this newly announced grant from Russia is going to add on the liabilities PSM already has, and it is possible that Russia might ask for management control of the mills in lieu of this grant.

political interFerence he said the PSM strongly needs a halt to political interference, full empowerment of the BoD, and recovery of the money the mills lost due to corruption.

“The mills are going through massive crisis, and the administration ironically demanded the 27 per cent increase in the salaries of the lower staff; so one can understand how serious they are in their efforts to make the mills come out of the crisis,’ he added.

It is pertinent to mention that, according to the federal secretary of the ministry of production, Russian government has recently announced $500m grant for the expansion and rehabilitation of PSM.

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Thursday, 10 November, 2011

02 debate The rising cost of living and

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DuRDAnA nAjAm

INCe it is not unusual so I would not label it as news, but the matter of fact is that almost 50 per cent of Pakistanis did not buy sacrificial animals this eid. Not because they had lost interest in religion but the hefty cost that has come to accompany the obligation has gone too far out of the reach of an ordinary person. Many did not perform the ritual while most opted for the sharing arrangements wherein seven people share a cow or fourteen share a camel. The cost of meat selling at Rs600 per kg has too become a reference point for the sellers in pricing animals. Similarly high cost of transportation owing to expensive petroleum products and a troubling supply and demand equation have factored in to become reasons for high priced animals in the market. however, keeping in view the religious obligation attached to this sacred ritual, provincial governments would have had devised a strategy to make sacrificial animals available, accessible and affordable to a common folk. The prices of goats and sheep had increased with price of `A’ category goat or sheep surging from Rs20,000 to Rs35,000. The price of `B’ category had increased from Rs15,000 to Rs25,000 and `C’ category to Rs12,000 and above.

A cow had a price tag of Rs80,000, and a category cow comes somewhere around Rs150,000. Since we are not taking into account the “status mania syndrome” therefore, talking about 500,000 cow or goat named “Bodyguard” or “Shela” makes little sense. We, in Pakistan, make commodities intrigue by inflating their prices hyperbolically through things unimaginable for country having nuclear arsenal in its repertoire. Look what have we done with the prices of sugar, urea wheat and God knows what not? Businesses cannot run efficiently when the variable costs keep shifting or for that matter when prices of input become a constant nag. This leaves little room for the company to think about innovation or development, since that too requires stability or for that matter some cooling off period.

that Pakistan has one of the finest urea manufacturing infrastructures in the world with an equally remarkable surplus production capacity – and yet there is shortage! Although the monster identified is the ministry of energy and Mineral resources that has imposed gas curtailment plan on the industry even after promising uninterrupted gas supply round the year; nonetheless the blackmailers in the garb of hoarders could not be ruled out as well. Price differential between provinces is another factor that has made urea an intriguing commodity.

corrUption the price Shooter Corruption eats not only into the fibres of moral lives but takes the best out of the social lives as well.

Being contagious, it transmits itself to others flawlessly, especially to the one, with a weak moral immunity. Though, one has to have a real hard shell to assimilate the indignity packaged in corruption, the easy instalment of perks and privileges stringed to corruption, makes the journey interesting and endurable. Throughout our history we have had enough of these hard shelled people and entities, rendering us a faceless nation in the global arena.

Watching the analysis over the incapacitation of the cricketer trio comprising Salman Butt, Muhammed Asif and Amir, one narration that kept leaping into every analysis was the corrupt leadership of Pakistan that has turned the country into a pit of darkness, with the result that flouting rules becomes a piece of cake for an ordinary folk. Like a stab through the heart, one could not do much, not even curse the anchor or the participant, the reality is so sharp and unmistakable. More than anything, corruption is always a top bottom phenomenon, giving enough reasons to the poor living on the margin, to buy corruption on the pretext of deprivation powerlessness and economic seclusion.

Corruption brings economic seclusion. It widens the gap between people, putting them into the

liabilities; that Pakistan is not a poor country, supporting his argument by all those glorious estimation of the reservoirs – copper, gold, coal, and gas – of Pakistan waiting to be tapped to change the fate of this country. The argument, though had nothing new about it, but given the baggage of corruption lugged on each of us, without our choice, the anticipation of not being poor and only poorly led, has come like a fresh breeze. At this point one is disposed to think and think hard that why do we have to face a serious energy crisis at the cost of our creativity, productivity and development, when we are not, by divine or by the design of our fate, resource deficient. It is a serious concern! The same goes with the food crisis according to the Asian Development Bank Food Price Index for Pakistan has increased 100 per cent in eight years. In 2001 the index was at 100, it reached 216 in 2009. With prices up by 45 percent from the previous two years, food inflation has shot up more than 20 per cent in the last six months.

Again a serious concern given the agri-based society and infrastructure we have and the resources that we possess.

let the poor Foot the bill What happens when light goes out… stagnation.

This is the right word that comes to our mind not because it best describes the situation one faces but because this is what really happens. All our activities stop progressing, stop adding value or just jet get locked into the cobweb of policy failures, policy lapses and policy interventions of somebody just not bothered by the crisis as it inflicts the poor. As a result the level of productivity has hit an all-time low.

We talk, lament and get worried about electricity crisis that Pakistan is going through with the

price hike A country without light, without airplanes, without railroad, without gas and without clean cricketers, is a perfect case of failure and classlessness. Drones and corruption has come to rule Pakistan today – interestingly, both killing the poor and benefiting the rich. It is interesting to note that corruption is costing Pakistan $2 billion annually. The perception cost is another story that has almost put Pakistan on the back burner as far as doing business in Pakistan is concerned.

The very immediate effect of corruption comes in the form of price hike. We have seen this happening during the wheat crises in 2008, sugar crisis 2009 and now urea crisis brewing on the horizon in 2011. One is surprised to learn that in 32 years the price of urea grew Rs750 per bag, but it just took 24 months to add another Rs1060 to it to bring the cost of single urea bag to Rs1800. There is a common agreement to the fact

category of haves and haves not. It transforms the population equation by making top 20 or bottom 20 a staggering divisional stratagem.

rich coUntry oF poor people Imran Khan began his speech on that eventful day of, 30th October 2011, with a very important note; he reminded all of us that it is the locomotive of good intention that takes any cause to its desirable conclusion. With this he went on to stir our conscious on a reality saddled with

consequence of having our industry almost closed or near closure. The results of this marginal blackout has grown so ugly that a major chunk from the formal economy has moved into the informal one to

reduce the cost of production by cutting on fixed costs and by getting away from the minimum wage and legal tax burden. The onus of all this twist falls on the poor – with minimum wages, no social security and more blackmailing. It is all about mismanagement, skewed priorities and indifference. I am told that WAPDA’s feasibilities on new viable and practical projects are gathering dust for a long time. “There is absolutely no dearth of electricity in this county, if there is dearth, it is of political will, and clean intentions. even WAPDA could produce cheap electricity using gas, but unfortunately the romanticism with growth and development could never take the true flight,” said Dr Noor Mohammad, Magistrate WAPDA. “I am at pain to find the big fishes enjoying the crisis at the cost of the poor who are burdened not only with unnecessarily high-priced electricity but the liabilities of line losses, actually incurred by the well-to-do people, are passed on to them as well.” As a result, the crux of the matter is that corruption is bad not because it makes the system stink, but because it makes somebody rich at the expense of others. People lose opportunities, they miss chances and are elbowed out from the big picture of the society. It is said that the administrative cost of PIA, Steel Mill and Pakistan Railways is inexorably high and the punishing factor is the excess employment given to people not made for the job. employment, used as an instrument of obligation, has not only blighted the aforementioned industries but had taken the chance from many, actually deserving the jobs to prove themselves. It’s the worst kind of apartheid. Missing on religious obligations may not count much, given the level of corruption we are living in, but it does show that we have lost the true taste in life.

“Durdana Najam is a freelance financial feature writer, she can be reached at durdananajam456@hotmail. com”

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Thursday, 10 November, 2011

EDITORIAL

Gas losses T is hoped that Sui Southern Gas Company’s (SSGC) impressive performance last year, adequately reflected in shareholder appreciation, will push more proactive measures as another winter of inadequate gas supply sets in.

All eyes will be on the $200 million natural gas efficiency project with the world bank, designed to bring about a phased reduction in unaccounted for gas losses over a five year period by rehabilitating approximately 5,000 kms of ‘aging pipelines’.

In the gas sector, like others where supplydemand dynamics are upset, it is extremely important to cut unnecessary line losses in conjunction with acquiring fresh supply sources and routes to limit downside pressure on industry and households. With the summer crippling industry, manufacturing and individuals alike due to inefficient electricity management, gas shortage over the winter is set to further retard far too many onceproductive growth engines. The SSGC has embarked on the right course with the world

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bank program, along with fast track LNG import through a third-party regime, netting 1.4 billion cubic feet gas by ’12. These are prime examples that with necessary political will present, supply bottlenecks can be overcome in time to protect the economy’s lifeline in the near to medium term.

Such steps are important not just from the economic point of view. They also have a direct bearing on the ruling party’s political fortunes. As noted often in this space, electioneering will gain momentum hereon.

The gas shortage issue has been gathering pace for some time now, actually since electricity was still the prime concern, with imminent gas shortage further upsetting producers and households. Yet the world on the street is that Islamabad has been usually slow in reacting. While it is understood that there will be considerable time lags between announcement of adequate measures and onground results, those at the helm must be seen proactively posturing against unfair shortages instead of lazily reacting to emergencies.

Felicitating fair trade

Pakistan: Failing economy?

Can you give me the source of one million cubic meter of Pakistani granite and marble? Apparently the price is 10 per cent better than what Pakistan gets from China. If supply proves reliable, joint development can also be undertaken (with financial investment) for value added products like finished tiles etc. This move might provide more than its fair share of dividends. It can also provide local employment and multiplying export value (estimate a ten year horizon). Also, would you like to buy tea (wholesale) at a cost of one-sixth the retail price in Pakistan? I would be grateful if a piece regarding the aforementioned queries were to be published.

The answer to the question that has been proposed by the writer is that Pakistan is not a failed state. Just because the current government is not performing well does not mean that Pakistan has failed in any way.

There is generally a down fall in the economy around the world. Greece has been declared a failed economy and state. We should remember that the Argentinian economy crashed a few years back but stabilised itself later on. Similarly, after the fall of Soviet Union, people had to stand in queue for hours for a loaf of bread.

At least, the situation in Pakistan is not that bad.

ALI AHmED

ALI AsgHAR LAHORE

ISLAMABAd

Economics of political rallies

Amjad Riaz LeCTIONeeRING time has arrived once again. The season for big rallies, it seems, has started in real earnest. If there is one clarion call that is heard from nearly every rostrum, it is the call for bringing in real economic change this time and not like the promises that were made by some from time to time and for one reason or the other they could not have been realised. In more than sixty years of our history of economic development, every decade has announced and promised to usher in some revolution or the other.

Revolutions are a rare phenomenon in history. In the last two centuries, very few socio-economic revolutions have happened and not with very predictable results. The greater development in economic terms has occurred through the process of evolution. Despite history being full of wars in one period or the other, it is the marketplace of innovation, scientific discoveries and major inventions that has driven the economic development of mankind. From the times of stone-age when implements could be carved out of hard substances man arrived in the iron age to make use of this remarkable metal. By gradually understanding the forces of nature, man learnt to harness the forces to his advantage. ever since 1947, Pakistan’s economic development has oscillated between extreme goals. In the electioneering process there were very few occasions when the political leadership gave a clear economic manifesto. This is not to say that the political process is totally devoid of sloganeering but there must be some link between the political ma-

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Electioneering must delineate the contours of economic policy each political party wishes to pursue

neuvering and real ground realities. It is accepted that colonial times were not very conducive for democratic and economic thought to develop. But again it was a propitious time to have learnt a few basic truths about the mechanism of the marketplace. Through great development of politicosocio-economic thought in the nineteenth and the twentieth centuries, we came to understand the complex phenomenon of running an economy in turbulent as well as peaceful times.

In Britain, there used to be a massive shift in economic policies every time the government changed from the conservatives to labour and vice versa. here, in our country, there was a remarkable change in economic policies after the elections of 1970. The shift to a little left of center altered the shape of the economy in many ways.

But the policies of the eighties were a mere hotchpotch of make-believe theories of economic features whose contours were not clearly discernible.

A shift to the right of center should have been more clearly defined and adhered to. A great effort was launched in the nineties to remedy the ills and kick-start an ailing economy, but no government lasted long enough to bring any substantial difference in real economic terms.

The need of the times is to clearly outline the economic policies for the future plan of action.

The electioneering process must delineate the contours of economic policy each political party wishes to pursue if elected to govern. The eighties and the nineties were good times to advance economically, when third world economies benefitted from the expansions of the international economy.

Now, in the second decade of the twenty first century, we need to catch up in many areas of economic development. Twenty years ago, there were not many developing countries that showed signs of adhering to good economic policies. But now there are many countries in the world which have made good strides in economic development. The availability of economic statistics of many workable models makes it easier for us to follow sensible policies to achieve more desirable results. We need to have strong faith that in the coming elections. Stakeholders must present and subsequently follow clear policies and economic goals instead of just indulging in sloganeering.

The writer has served as consultant to the United Nations and developing economies on the issues of trade and development and can be reached at amjadriazzz@yahoo.com

average Joe inveStor

Brighter weeks to followResolution of the

Agha Akbar he opening three days of the ongoing week being the eid holidays, this was one long weekend stretching over five days on the go. Despite no trading, yet there are a few good things to report. After the all-pervading gloom of the last week of October, the KSe-100 index added 396 points – almost cancelling out the previous week’s loss of 463, to get within touching distance of the landmark 12,000.

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The overall gain being a handsome 3.4 per cent notwithstanding, the areas of concern must have been low volumes: the average being slightly above 70 million – around 20 million less than the average this last year.

The upward push this last week largely came through buying in the oil and fertiliser sectors. Now this rally is going to sustain, and not just remain limited to these two sectors but include the banking sector too.

The weekend’s news that the government had decided to swap the massive energy sector circular debt and commodity loans, to be precise Rs313 billion and Rs78 billion respectively, with the five-year Pakistan Investment Bonds and year-long treasury bills, is likely to provide a massive cheer to the oil marketing companies and the banking sector.

As an aside, one must mention,

the immense pre-debt swap buying in the oil sector. Apparently some investors had advance insider information of the impending move and after the late October bear-run that prompted them to buy the oil sector shares on the cheap.

Be that as it may, one really clued in market analyst Mr Ali Malik, CeO of the First National equities, believes that things are definitely going to be a whole lot brighter in the weeks to follow. “In recent times, the market has never really been in a freefall. But the resolution of the crippling circular debt will have a consolidated effect in providing stimulus to the market, which means enhanced values and better volumes on a steady basis”, said he.

With foreign traders’ interest in our stock market taking a plunge during the last year despite its relative profitability, for the bourses the reso-

Shahab JaFry Business Editor

kUnwar khUldUne Shahid Sub-Editor

babUr Saghir Creative Head

ali riZvi News Editor

maheen Syed Sub-Editor

hammad raZa Layout Designer

crippling circular debt will have a consolidated effect in providing stimulus to the market

lution of the said issue that has dogged this government for the best part of the last four years may indeed be what the doctor ordered. As alluded to earlier, this gives the oil marketing companies the strappedup cash and at the same time improves the liquidity position of the banks. With this resolved, both these sectors can only head one way: up.

With fertiliser already slated for phenomenal growth, with prices of scrips constantly maintaining a steady upward curve, the overall impact is likely to be phenomenal.

For the Average Joe Investor, one little tip, but please do your own research and take independent advice before your committing your cash to it. Bank Alfalah, under a

new management and with improved performance, is likely to offer a decent return by January 2012. Currently being traded at Rs11.47, value-wise this is indeed a cheap option – available at slightly more than its base price.

At close on previous Friday, the last trading session at the KSe, with upwards of 3.5 million shares traded it was easily the best by a distance amongst the banks in terms of trade volume. In terms of capital gain on that particular day, it was amongst a clutch of top four banks.

Take your pick, personally though my interest is whetted.

The writer is Sports and Magazines Editor, Pakistan Today

For comments, queries and contributions, write to: mUneeb eJaZ Layout Designer

email: profit@pakistantoday.com.pk ph: 042-36298305-10 Fax: 042-36298302 website: www.pakistantoday.com.pk

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Monday, 07 November, 2011

Pakistan has never opposed Bangladesh and instead let it grow in the EU market

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aptma chairman, mohsin aziz

B’desh should not raise objections on Pak-EU trade deal: Chairman APTMA bangladesh objects entry of eight items of pakistan’s clothing sector to the eU market g chairman aptma hopes for a friendly relationship between bangladesh and pakistan g

LAHORE

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Staff Report

LL Pakistan Textile Mills Association (APTMA) Chairman Mohsin Aziz said objections raised by Bangladesh about Pakistan on GSP plus status in the eU market are unfounded. Pakistan would never be a threat to Bangladesh’s apparel industry in

the european Union market, he said. It may be noted that in a recent meeting held in the european Commission, Bangladesh has objected entry of eight items of the clothing sector of Pakistan to the eU market.

Chairman APTMA termed this move as unfair and said that Pakistan has never opposed Bangladesh and instead let it grow in the eU market. As a result, Bangladesh exports to

the eU have reached to $16 billion today in clothing sector from merely $2 billion a few years back, he said. Pakistan, on the contrary, has peaked to a mere $1.5 billion in clothing sector in a market of $80 billion in total, he added.

Chairman APTMA said Bangladesh has already developed strong inroads to the eU due to its Least Developed Country (LDC) status and is

therefore, enjoying a favourable environment and market access. he said entry of clothing sector products of Pakistan to the eU would not yield any significant new investment in the country as this status, if allowed, would be for initial period of just two years and thus, it would only activate the idle and unutilised capacities until 2014. Therefore, there is no threat to

Bangladesh market, he added.

Mohsin said that the Bangladesh clothing sector has already grown; having a huge share of $16 billion in the eU market, and it is growing constantly with a comparatively low cost of doing business against Pakistan. In fact, Pakistan qualifies for market access to the eU on humanity grounds similar to Bangladesh after being severely hit by natural calamities including flood, earthquake along with terrorism etc.

Therefore, he said that, Pakistan needs special favour and a brotherly country like Bangladesh should not oppose it.

Chairman, APTMA has urged the federal government and the ministry of commerce to take up the issue on ministerial as well as foreign level in the larger interest of the country’s exports. he said that this issue is more important than the MFN status to India and demands immediate attention of the government policymakers. he also expressed the hope that Pakistan government would take Bangladesh government into confidence and would ensure a brotherly relationship based on complimenting each other rather than competing each other.

pSma urges govt to speed up sugar buying LAHORE STAFF REPORT

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he Pakistan Sugar Mills Association (PSMA) has urged the government to speed up the process of sugar buying through the Trading Corporation of Pakistan (TCP) in order to start sugarcane crushing season on time. Working under the ministry of commerce, Trading Cooperation floated a tender last week for buying 0.2 million ton sugar. The crushing season of the sugarcane would be started the moment TCP approves the tender, PSMA Chairman Javed Kayani said in an issued statement. Mr Kayani said that it would enhance the liquidity of sugar mills which would enable millers to make prompt payments to sugarcane growers during the next crushing season. he said that the sugarcane production is expected to be around 54 million tonnes and production of sugar is forecasted to be around five million tonnes. he said that it would be a record production of sugar in the history of the country. During the last six weeks, sugar prices have fallen from Rs10 to Rs12 per kg which proves that the sugar stocks are more than demand.

GREEcE: Greek debt crisis has taken a toll on unemployment as this homeless man seeks refuge on a street. reuters

Shipping activity at port Qasim

SME union calls for remedial steps F to save country from economic setback KARACHI PPI

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he Union of Small and Medium enterprises (UNISAMe), has invited the attention of Prime Minister, Syed Yousuf Raza Gilani to economic challenges faced by the country and take immediate steps to save the nation from the worsening situation.

President UNISAMe, Zulfikar Thaver said it is crucial that the prime minister urgently directs the finance, commerce and ministries to accept the

fact that the country is facing economic challenges and take immediate steps to overcome this serious situation. he invited the attention of the Prime Minister to the fact that the situation demands the need for expert advice on the economic aspects to revitalise the finance, commerce and industry of the country. he pointed out that the expenses of all the ministries should be curtailed immediately and austerity measures should be put in place. he said the rupee is depreciating, inflation and cost of production is increasing, energy supply is low,

law and order is poor, corruption is high, flood relief work and rehabilitation is very poor, unemployment, common man is unable to survive and businesses are closing down due to losses. he urged the government to take measures such as rewarding exporters with higher rate of exchange to boost exports and importers with a lower rate of exchange to reduce the cost of raw material and packing materials.

Government should impose heavy duties on import of luxury goods and on imports of those goods which are manufactured in the country but yet

imported for the elite.

Government should declare amnesty to expatriates by providing a preferential rate of exchange and tax them at a reasonable rate to provide an incentive to bring back their wealth back into the country. every effort must be made to fill the energy gap and the government should import electricity or settle the circular debt to overcome power outages.

Floods have caused a tremendous loss to farmers and the government should take steps to ensure fast rehabilitation to enable them to get back to work, he emphasised.

KARACHI APP

OUR ships carrying containers at QICT, furnace oil at FOTCO, palm oil at LCT and sun flower at FAP have arrived at Port Qasim, said a report issued by Port Qasim Authority. Berth occupancy was maintained at 55 per cent with a total of five ships namely, M.V. Maersk Kolkatta, M.V.Brindisi, M.T. Quetta, M.T. Bunga Angelica and M.V. Kiran Africa which are currently occupying berths to load/off load goods.

Containers of palm oil, furnace oil and sun flower seed were also handled at the port. Cargo handling operations were carried out smoothly at the Port where a cargo volume of 122,378 tonnes, comprising 97,062 tonnes import and 25,316 tonnes was handled. M.V. Maersk Kolkatta and M.V. MSC Brindisi sailed off to other destinations. M.T Asphlt Merchant carrying chemical, M.V Safina2 carrying rice, M.T olympic serenity with furnace oil and M.V Nelemaersk carrying containers are presently at the outer anchorage of the port.

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Thursday, 10 November, 2011

There has been no proper understanding of the problems being faced in Italy

news

Swedish Finance minister anders borg

Italian borrowing costs at breaking point ROmE

I

REUTERS

TALIAN borrowing costs reached breaking point on Wednesday after Prime Minister Silvio Berlusconi's promise to resign failed to raise optimism about the country's ability to deliver on long-promised economic reforms.

Italian 10-year bond yields shot above the 7 per cent level that is widely deemed unsustainable, reflecting investors' concerns that they may not get their money back, prompting German Chancellor Angela Merkel to issue a call to arms.

Merkel said europe's plight was now so "unpleasant" that deep structural reforms were needed quickly; warning the rest of the world would not wait. She called for changes in eU treaties after French President Nicolas Sarkozy advocated a twospeed europe in which euro zone countries accelerate and deepen integration while an expanding group outside the currency bloc stayed more loosely connected -- a signal that some members may have to quit the euro if the entire structure is not to crumble. Portugal and Ireland were forced to seek eU-IMF bailouts when their borrowing costs reached similar levels and clearing house LCh. Clearnet sounded another alarm by increasing the margin it demands on debt from the euro zone's third largest economy, effectively raising the cost of holding Italian bonds. The european Central Bank, the only effective bulwark against market attacks, wasted no time intervening to buy Italian bonds in

large amounts. "The eCB is buying aggressively," one trader said.

Italy has replaced Greece at the center of the euro zone debt crisis and is on the cusp of requiring a bailout that europe cannot afford to give. Unlike Greece, an Italian default would threaten the entire euro project. having lost his majority in a key parliamentary vote, Berlusconi confirmed he would resign after implementing urgent economic reforms demanded by the european Union, and said Italy must then hold an election in which he would not stand. he opposed any form of transitional or unity government -which the opposition and many in the markets favour -- and said polls were not likely until February, leaving a three-month policy vacuum in which markets could create havoc.

"It is a step in the right direction," Swedish Finance Minister Anders Borg said when asked about Berlusconi's plan to resign. "There has been no proper understanding of the problems being faced in Italy." even with the exit of a man who came to symbolize scandal and empty promises, it will not be easy for Italy to convince markets it can cut its huge debt, liberalize the labor market, attack tax evasion and boost productivity. "There is no guarantee (Berlusconi's) successor will be able to do a better job. Just keep your eyes on the Italian yield for now," Christian Jimenez, fund manager and president of Diamant Bleu Gestion, said. While Italian bonds blew out, worries that the debt crisis could be infiltrating the core of the euro zone were reflected in the spread of 10-year French govern-

ment bonds over their German equivalent blowing out to a euro era high around 140 basis points.

FRUSTRATION

Policymakers outside the euro area kept up pressure for more decisive action to stop the crisis spreading. Christine Lagarde, head of the International Monetary Fund, told a financial forum in Beijing that europe's debt crisis risked plunging the global economy into a Japan-style "lost decade. "Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand ... we could run the risk of what some commentators are already calling the lost decade."

Berlusconi has reluctantly conceded that the IMF can oversee Italian reform efforts. euro zone finance ministers agreed on Monday on a roadmap for leveraging the 17-nation currency bloc's 440-billion-euro ($600 billion) rescue fund to shield larger economies like Italy and Spain from a possible Greek default.

But there are doubts about the efficacy of those complex plans, and with Italy's debt totaling around 1.9 trillion euros even a larger bailout fund could struggle to cope.

Lagarde said she was hopeful the technical details on boosting the european Financial Stability Fund (eFSF) to around 1 trillion euros would be ready by December.

Many outside europe are calling on the eCB to take a more active role as other major central banks do in acting as lender of last resort. German opposition to that remains im-

placable, seeing it as a threat to the central bank's independence.

German central bank chief Jens Weidmann, a key member of the eCB, rejected a separate proposal to use national gold and currency reserves or IMF special drawing rights to boost the bailout fund, welcoming opposition from Merkel to the same.

But with the eCB just about the only buyer of Italian bonds, according to traders, it will have to act more aggressively to contain the latest wave of crisis, despite internal opposition to its bond-buying program. It could call on limitless power if it began printing money as the Federal Reserve and Bank of england have. But for it, and Berlin, that is a step too far.

05

CORPORATE CORNER etihad airways operates its first flight to maldives Lahore: etihad Airways, the national airline of the United Arab emirates, marked its inaugural flight to the Republic of the Maldives by touching down in Malé to a colourful welcome in the capital. eY flight 278 was honoured with a traditional water cannon salute and the 146 passengers were greeted by local Bodu beru (big drum) dancers and singers performing on the tarmac. “This is a very exciting day for etihad Airways and we are thrilled to add another new destination, particularly one that is so important to the leisure traveller. We look forward to developing strong ties between UAe and Maldives and take our responsibility to bring more people to this part of the world very seriously,” etihad Airways’ Chief executive Officer, Mr James hogan, said. The airline will operate a daily return service from its home base in Abu Dhabi to Malé International Airport. PRESS RELEASE

GREEK STANDOFF

With the markets' fire turned firmly on Italy, Greece's struggle to find a new prime minister became something of a sideshow, but one which demonstrated the difficulty in taking decisive action anywhere within the euro zone. Greek political leaders scrambled to agree on a new premier to lead the country back from the brink of bankruptcy, after a plan to name a former eCB official appeared to fall apart.

The aim is to establish a "100day" government to push a 130 billion euro bailout plan, including a "voluntary" 50 per cent writedown on Greece's debt to private sector bondholders, through parliament by February. The socialist and conservative parties had wanted former eCB vice-president Lucas Papademos to lead a government of national unity but he appears to have made demands about his level of influence which they could not swallow.

ABU dHABI: Mobilink's director Marketing (Jazz), Moied Javeed presenting the Jazz cup to Misbah-ul-Haq, captain of the Pakistan cricket Team. Press reLeAse

LAHORE: Mian Amir inaugurates dolce sweets along with the cEO, dolce sweets, Mian Aslam. Press reLeAse

US stocks slump as Italy bond yields soar government bonds and index-linked securities. General Motors Co. (GM) slumped 8.4 per cent after abandoning its target for european results. Adobe Systems Inc. (ADBe) sank 12 per cent on plans to cut jobs as it lessens its focus on older products.

The S&P 500 sank 2.5 per cent to 1,243.88 as of 10:10 a.m. New York time, after rising 1.8 per cent over the previous two days. The Dow Jones Industrial Average lost 272.50 points, or 2.2 per cent, to 11,897.68.

The Stoxx europe 600 Index decreased 2 per cent, erasing an earlier advance, as the 10year Italian note yield topped 7 per cent for the first time in the euro era.

“It’s just like a scary movie as it never ends,” Keith Wirtz, who oversees $16.7 billion as chief investment officer at Fifth Third Asset Management in Cincinnati, said in a telephone interview. “The overarching problem is that most of the economies in europe can’t sustain the size of their governments.

We’re going to have this headache for a long time to come. That’s what’s causing angst.”

The so-called deposit factor for Italian bonds due in seven-to-10 years will be raised to 11.65 per cent, the French unit of LCh Clearnet said in a document dated yesterday.

That compares with a charge of 6.65 per cent announced on Oct. 7.

U

S stocks slumped, following a twoday advance in the Standard & Poor’s 500 Index, as a surge in Italian bond yields to euro-era records bolstered concern that europe’s sovereign debt crisis

PROTECT AGAINST LOSSES

is worsening. Bank of America Corp. (BAC) and Morgan Stanley tumbled at least 3.1 per cent, following losses in european lenders, after LCh Clearnet SA raised the extra charge it levies on clients for trading Italian

Clearing houses guarantee that investors’ trades are completed by standing in the middle of two counterparties, and raise margin requirements to protect themselves against losses should one side of the trade

fail.

Stocks rose yesterday as Prime Minister Silvio Berlusconi’s offer to resign boosted optimism Italy would appoint a new leader who can tame the debt crisis. Greek Prime Minister George Papandreou’s talks on forming an interim government dragged into a third day as a near-agreement with the biggest opposition party stalled on european demands for written commitments.

“The Greek flu is hitting Italy,” James McDonald, chief investment strategist at Northern Trust Corp. in Chicago, which manages $643 billion, said in a telephone interview. “The pressures on the political system have led to Berlusconi’s resignation, and now the market says -- this is fine and dandy, but who’s going to be the new leadership?

Until they know that and the new leadership’s willingness to implement reforms, they are going to require higher compensation through higher yields on Italian bonds.

The risk is that this feeds on itself.”

BANKS TUMBLE

American banks tumbled as a gauge of european lenders sank 4.2 per cent. The KBW Bank Index sank 3.5 per cent as all 24 stocks retreated. Bank of America lost 3.1 per cent to $6.33.Morgan Stanley (MS) retreated 6.4 per cent to $16.22.

General Motors slumped 8.4 per cent to $22.93. The automaker, which hasn’t turned an annual profit in europe in more than a decade, fell after rescinding its target for break- even results in the region. europe operations lost $292 million before interest and

taxes in the quarter.

GM said it no longer expects to break even on an eBIT basis before restructuring costs in europe, citing “deteriorating economic conditions.” Adobe slumped 12 per cent to $26.88. The reduction of 750 jobs, mostly in North America and europe, will cost $87 million to $94 million before taxes, the company said. After the costs, net income will be 30 cents to 38 cents a share, compared with a previous forecast of 41 cents to 50 cents.

THWART RECOVERY

Concern that europe’s debt crisis may thwart a global economic recovery sent the Morgan Stanley Cyclical Index down 3.3 per cent. The Dow Jones Transportation Average of 20 stocks slumped 2.7 per cent. Fedex Corp. (FDX), operator of the world’s biggest cargo airline, slipped 3.2 per cent to $80.35.

Apple Inc. (AAPL), the biggest technology company, lost 2.1 per cent to $397.68. energy and raw material producers dropped as the dollar rose, reducing the appeal of commodities. Alcoa Inc. (AA), the largest U.S. aluminum producer, slid 3.7 per cent to $10.39.Chevron Corp. (CVX) fell 3.1 per cent to $105.52.

The S&P 500 may halt its biggest gain in 20 years, according to two indicators studied by technical analysts at UBS AG. October’s 11 per cent rally, which was the biggest monthly advance since 1991, failed to leave the S&P 500 above its 200- day average, limiting the potential for a rally, the Zurich- based analysts wrote in a report yesterday. BLOOMBERG

Profit for e-paper_Layout 1 11/10/2011 1:04 AM Page 6

Thursday, 10 November, 2011

06 Markets

top 10 sectors

52% 09% 10% 05% 07%

Chemicals

01% 02% 02% 10% 01%

Food Producers

Construction & Materials Electricity Banks

Fixed Line Telecommunication

Oil & Gas

Financial Services

Personal Goods

General Industrials

STOCK MARKET HIGHLIGHTS Index 11957.30 3190.08 2642.25

KSE-100 LSE-25 ISE-10

Change +149.84 +40.59 +51.49

Volume 47,314,598 1,849,389 23,100

Market Value 3,423,852,841 66,889,284 1,198,175

Major Gainers Company Bata (Pak) Ltd. Siemens Pak Wyeth Pak Limited P.S.O. National Ref.XD

Open 775.00 900.00 679.40 249.16 322.00

High 813.75 924.75 713.37 261.50 334.50

Low 775.00 860.00 690.00 252.00 320.61

Close 812.31 924.75 701.73 260.94 331.31

Change Turnover 37.31 276 24.75 150 22.33 127 11.78 2,357,503 9.31 178,048

3200.00 440.00 5749.99 209.99 2700.00

3100.10 421.00 5507.00 200.00 2599.99

3152.15 424.74 5603.60 202.05 2604.86

-47.85 -8.82 -7.74 -2.95 -2.81

Major Losers

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

411 135,810 12 612 106

Agritech Ltd. Arif Habib CoXDXB SD Biafo IndustriesXD Clariant Pakistan Dawood Hercules

15.00 30.83 68.59 140.69 38.96

Engro Corp Jah.Sidd. Co. Fatima Fert.Co. Bank Al-Falah D.G.K.Cement

130.18 5.83 6.18 23.97 11.02 21.55

136.40 5.82 24.47 11.50 21.94

132.25 6.08 23.62 11.07 21.60

135.84 0.25 24.17 11.47 21.81

5.66 4,657,687 4,307,582 0.20 4,166,506 0.45 3,677,519 0.26 3,028,266

Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)

Per Tola (PKR) 56,826.00 51,608.00 1133.00 1025.00

Per 10 Gm (PKR) 48,771.00 44,245.00 973.00 880.00

Per Ounce US$ 1756.00 – 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 86.00 117.40 136.56 1.0891 83.45 10.85 23.28 22.80

Sell 86.70 119.67 139.09 1.1120 87.36 11.19 23.64 23.14

Brent Crude Oil

$110.50

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

$94.78

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

Nestle PakistanSPOT 3200.00 Attock Petroleum 433.56 UniLever Pak Ltd. 5611.34 Service Industries 205.00 Rafhan Product 2607.67

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

13.90 32.00 34.50 7.00 32.00 16.00 70.00 1.65 70.00 109.00 62.08 133.00 29.10 16.50 1.89 10.68 1.00 2.00 1.11 17.95 20.00

14.02 32.07 35.60 7.00 32.14 16.00 70.00 1.75 70.15 112.81 62.59 140.00 29.28 16.50 2.20 10.80 1.06 2.12 1.14 18.07 20.33

-0.11 0.00 0.55 -1.00 -0.54 -0.03 0.71 0.05 -0.85 0.00 -2.73 0.00 -0.57 0.01 0.20 0.05 0.06 0.11 -0.02 0.14 -0.07

7,408 135 15,179 693 1,104 6,201 1,504 70,965 7,612 5 400 2 31,895 1,500 90,999 551,671 8,455 977,923 311,371 1,466 40,702

Miscellaneous Century Paper Pak Paper Prod.XD Security Paper Johnson & Philips Pakistan Cables P.N.S.C.XD Pak.Int.Con. SD TRG Pakistan Ltd. Murree BreweryXDXB Shezan Inter.XD Pak Tobacco Co. Philip Morris Pak. Shifa Int.Hosp.XD Hum Network XD P.I.A.C.(A) P.T.C.L.A Telecard Limited Wateen Telecom Ltd WorldCall Telecom Sui North GasXDXB Sui South GasXDXB

14.13 32.07 35.05 8.00 32.68 16.03 69.29 1.70 71.00 112.81 65.32 140.00 29.85 16.49 2.00 10.75 1.00 2.01 1.16 17.93 20.40

14.35 33.00 36.20 7.00 33.88 16.06 70.99 1.78 73.20 112.81 65.50 140.00 29.51 16.50 2.24 10.95 1.09 2.20 1.24 18.29 20.50

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 11/10/2011 1:04 AM Page 7

Thursday, 10 November, 2011

“Of course I can accept criticism. Who should we criticize first?”

closing bell

BOONdOckS

aries

taurus

gemini

Finances are much on your mind today, which could be good or bad for you. See if you can make the best of your situation, as your mental state is perfect for handling money and writing up budgets.

Try not to focus too much on the spiritual today -there is a time and a place for everything. If it feels right to go shopping or clean house, now is a good time to handle physical possessions.

Do you really, deeply understand what's going on? It may be a hard nut to crack, but you should be able to get it by the end of the day. It could take all of your mental energy, though!

cancer

leo

virgo

Socializing is perfect right now, as your energy is more grounded and you feel more secure and confident. Step up and introduce yourself to someone new and see where things go.

Your selfconception might not match up with reality all that well today, so see if you can get your people to give you serious feedback while you handle the stress that comes along with it.

Your energy is still running strong, and you may find yourself getting along really well with someone you'd never expect to. It could be a romantic thing or something more platonic, but enjoy it!

libra

scorpio

sagittarius

Life is more comfortable for you right now, thanks to an influx of healthy physical energy that spreads out from your core to encompass those around you. It's a good day for relaxation.

Things get really crazy -- the word 'havoc' comes to mind -- but you can make it through. In fact, you might prove so adept at handling the chaos that you find yourself in a new position really soon!

Someone needs reassurance that you are on their side, so do what you can to oblige them in any way you can today. It might take all you've got, but the payoff will be worth it when it comes.

capricorn

aQuarius

pisces

It's entirely likely that you are the only one thinking about safety today -- so make sure you speak up if you spot something that seems off to you! It could be a blocked fire exit or something bigger.

Things are weird and getting weirder -- but you don't mind it this way!

Your energy may be a bit off for the time being, but the good news is that you are well prepared to handle things.

Try to reach out and share your feelings with someone -preferably someone important to you, but potentially anyone. You might start a new and vital dialogue, so be ready for anything at all.

cROSSWORd

GARFIELd

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.

poet pound ream renew roan spoon stole summer talent theory tier tinder tore tradition tram upend volunteer weapon woman

Today’s soluTions

AdMIRABLE cAREER

cHESS White to play and mate in three moves 8

DOWN

7 6 5 4 3

A

B

C

D

E

F

G

H

chess solution

1

1.Qxg7+ kxg7 2.Rg4+ kh8 3.Bf6# *

2

sudoku solution

1. Irish policeman (5) 2. 2 Actually (2,5,2,4) 3. 3 Switch (8) 4. 4 Light source (6) 5. 5 computer operating system (4) 6. 6 death personified (3,4,6) 7. 7 Back away (7) 8. 12 Rubbish — it rusted (anag) (8) 9. 13 Eat heartily — help with some task — contribute money (5,2) 10. 15 Swallow greedily (6) 11. 18 Irish poet and playwright, d. 1909 (5) 12. 19 At a great distance (4)

abbreviate altitude apparent cancer cedes cherish cream empty gloss health linger lonely mail manage mate mete morose mother mumble

crossword solution

1. 1 Instrument for measuring radioactivity (6,7) 2. 8 Ribbed fabric (3) 3. 9 Large land mass — exercising self-restraint (9) 4. 10 Good-natured (8) 5. 11 Scottish hillside (4) 6. 13 Thick soup (6) 7. 14 Temple (anag) (6) 8. 16 Bunch of hair, feathers, grass etc (4) 9. 17 Intrepid (8) 10. 20 Rime (4,5) 11. 21 Play on words (3) 12. 22 Protected area for plants and animals (6,7)

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Profit for e-paper_Layout 1 11/10/2011 1:04 AM Page 8

Thursday, 10 November, 2011

withholding of the summary goes against the austerity drive of the government and against the spirit of the cabinet’s decision

news

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official sources

pm gilani to take Final deciSion

Civil servants resist cut in perks g g g

priveleges of civil servants cost the government rs4.7 billion recommendations part of austerity plan monetisation can reduce expenses by rs3 billion IsLAmABAD AMER SIAL

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IGheR ranked government officers have successfully thwarted the attempt of the government to implement the transport monetisation package, that would have taken away the top mandarins privilege of chauffeur driven cars, by compensating them with cash grant of Rs40,000 to Rs70,000 per month depending upon their grades.

An official source said that the summary was with the Prime Minister Syed Yusuf Raza Gilani for the last four months and he still has to make up his mind about approving it or rejecting it. If the decision is not made by the PM then the national exchequer may incur a

loss of Rs1.6 billion on the allocation for new cars, as the pressure for approving new cars is on the rise. “Withholding of the summary goes against the austerity drive of the government and against the spirit of the cabinet’s decision,” he said. Faced with a severe financial crisis, the government has decided to reduce its expenditures and take austerity measures. The recommendations were a part of the austerity plan drafted by the finance ministry and approved by the federal cabinet but were to be implemented by each of the respective ministry.

According to the initial plan of the ministry of finance the monetisation package was to be offered to 1391 senior officers (grade 20 and above) at the start of new fiscal year. They were to be given assistance of Rs40,000 to Rs70,000

along with their monthly salary from 1st August. They would have to forego their vehicle, driver, maintenance and petrol allowances that would enable a saving of over Rs100 million per annum. The government would also be saving the Rs1.6 billion worth of allocation that it made for purchasing new vehicles during the next fiscal year.

The finance ministry has recommended the cabinet division that officers opting for the monetisation package will not be entitled to use any of the project vehicles. At present, other than the official vehicle, senior officers illegally use a large number of their departments’ vehicles and in some cases they start projects just to get perks like allowances and vehicles for their personal use.

The package was to be initially offered by the

eid-Ul-aZha

Trend in animal sacrifice declining due to inflated prices g

inflation has changed sacrificial habits of masses LAHORE

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IMRAN AdNAN

he trend of sacrificing animals on eid-ul-Azha has been declining constantly due to swelling prices of sacrificial animals. Conservative estimates suggest that the country had witnessed a steep decline of around 20 per cent in sacrificing animals this year. hide and skin dealers in provincial capital estimate that the Muslims in the country had hardly sacrificed some 4.8 to 5.2 million animals during three days of eid-ul-Azha, while previous years hides and skin collection figures were hovering around six million animals.

Though, dealers point out, price of animals during eid-ul-Azha always remain high in comparison to normal days due to high demand, but this year animal prices showed extraordinary increase.

They estimated that on average sacrificial animal prices were almost doubled when compared to the previous year; mainly because of inflation, high transportation cost, recent floods and smuggling of animals to Afghanistan.

Speaking to Profit, Lahore Chamber of Commerce and Industry (LCCI) former Senior Vice President Sheikh

Muhammad Arshad, who is a noted hide and skin dealer in Lahore Chamra Mandi near Misri Shah, said that initial hide and skin collection numbers suggested that some five million animals have been slaughtered during the three days; the numbers were equally divided between small and big animals.

Sheikh Arshad, former senior vice president of Lahore Chamber of Commerce and Industry, and leading trader of hides and skins in Lahore Chamra Mandi – the largest market of Pakistan that deals in animal hides and skin – said that around 5 million animals were slaughtered this year with a ratio of 50 per cent each divided between large and small animals. he disclosed that the price of hides and skins had registered an increase of over 25 per cent this year as cow and calf hide was being traded at Rs3,500 to Rs4,500 per piece, which was available at Rs2,800 to Rs3,000 per piece in 2010.

A similar trend was being seen in the prices of sheep and goats skins as these were being changing hands at Rs700 to Rs750 per piece that was available at Rs400 to Rs450 last year, he added.

Responding to a query, Arshad said that inflation had changed the sacrificial habits of masses as hide and skin

collection numbers had shown that traders received more hides of cows, camels and calves, while some threefour decades ago hide dealers only received 10 per cent of the hides of big animals. he underlined that smuggling of live animals to neighbouring countres was the major reason in additional price hike.

Another dealer at Lahore Chamra Mandi said that Muslims always prefer to choose healthy animal for sacrifice on eid-ul-Adha. Three days of eid-ul-Azha are considered as the price season for hide and skin dealers, tanners and leather merchants. he estimated that around Rs170 billion trading activity, including sale and purchase of sacrificial animals and their hides, was being conducted during the three days of eid-ul-Azha in different parts of the country. he said as the sacrificing trend was declining the prices of hides and skins were increasing rapidly, which was a great concern of leather product manufacturers. he further stated that the shortage of raw material (hides and skins) was pushing the prices of leather products in local and international markets that would ultimately hurt the leather goods exports from Pakistan.

federal government and there was no binding on the provincial governments to follow suit but they could also offer a monetisation package on similar grounds to control their expenditures, the source said; further adding that since it has fizzled out at the federal level so it could be implemented at the provincial level.

The perks of officers in Grade 20 and above cost the government Rs4.7 billion and if the administrative expense were included it reached Rs6 billion annually. The monetisation would reduce the current expense on perks to Rs3 billion. Currently civil servants are receiving perks in addition to their cash pay including transportation, housing, plots, land, membership to clubs and membership of boards.

Foreign investment on pakistan equity market down by 79pc KARACHI ISMAIL dILAWAR

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he foreign investment on crises-hit Pakistan’s stocks market has marked an enormous decline of 79 per cent or $125.851 million during the first five months of current financial year, FY2011-12. A number of negatives, led by the on-and-off diplomatic face-off between USA and Pakistan, made the investors from some 21 foreign destinations withdraw $284.506 million during JulyNovember. Whereas, according to State Bank data, net cumulative inflow of foreign portfolio investment stood at $ 158.655 million during the review period. The postMay 2 strain in Pak-US mutual ties reflected adversely on level of American investment in terrorism-hit Pakistan’s equity market from where the American investors, perhaps succumbing to Washington’s strain ties with Islamabad, withdrew $118.364 million. On the other hand, the inflows accounted for a meager $75.338 million. This shows a decrease of 57 per cent. United Kingdom comes second in terms of investment withdrawals that amounted to $ 74.012 million against $ 21.239 million inflows shrinking the cumulative investment flow to $ 52.773 million. Luxemburg and Switzerland are two other countries where the investors’ confidence has been shattered the most, resulting in big respective outflows of $32.389 million and $23.005 million from Pakistan. Inflows from these countries wads recorded at $11.393 million and

$11.753 million during the said period.

Other international destinations, from where the inflow of portfolio investment into Pakistan set in negative include Australia, Canada, hong Kong, Ireland, Korea, Malaysia, Singapore and South Africa. The amount of withdrawals from these countries accumulated, respectively, to $ 4.871 million, $0.158 million, $8.605 million, $5.169 million, $12000, $ 11000, $0.509 million and $24000. While $1.521 million came from the investors in Australia, $ 82000 from Canada, $4.244 million from hong Kong, $ 0.845 million from Ireland, $ 27000 from Singapore.

The inflows from Malaysia, South Africa and Korea remained zero. The countries and regions from where Pakistan equities attracted more investment include Mauritius, Japan, Bahamas, China, Germany, Kuwait, Netherlands and Sweden. The investors from these destinations invested $22.67 million, $2.213 million, $1.968 million, $0.910 million, $1.231milliion, $ 5000, $ 23,000 and $ 0.624 million. Withdrawals by the investors from these countries stood at $7.1 million, $1.810 million, $0.123 million, $15,000 and $0.590 million and zero from Kuwait, Netherlands and Sweden. With overall foreign investment declining in Pakistan, the analysts believe that if the authorities failed to improve the deteriorating law and order situation plus the recession-hit global economy did not embark on the recovery path Islamabad would find itself in hot waters in terms of foreign financing in the not distant future.