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Indian dichotomy and MFN 3 Female education can change paradigms Page 2 Cement manufacturers urge govt to clear payments Page 8 Pages: 8
profit.com.pk
Saturday, 12 November, 2011
PR could earn Rs500m by land leasing, claim railway officials ISLAMABAD
P
STAFF REPORT
akIStan Railways (PR) officials claimed that the entity can earn up to Rs500 million annually by leasing out railway land, easing the financial crunch of the national entity. Railway officials were briefing the sub-committee of senate standing committee on railways about progress on the issue of illegal occupation of railway land by individuals in Lahore.
the meeting was held under the chairmanship of head of sub-committee senator abdul Ghaffar Qureshi. the two member committee comprised of senators abdul Ghaffar Qureshi and abdul khaliq Pirzada. Director technical Railways from Lahore abdul Saeed khan informed that the enforcement division has got retrieved 13 acres of agriculture land, 4.5 commercial and 4.27 acres residential land from the illegal occupants during last three month. He further said that FIRs are lodged
and police memos are issued against illegal occupants, adding that occupation of railway land by government department has already been taken up with the concerned departments and is being pursued for mutual settlement. PR also recovered Rs2 million on account of penalty from the occupants of land through an operation that was conducted in coordination with the task force. the committee was informed that 98.32 acres land of Pakistan Railways in Lahore was illegally occupied. addressing a case study of land oc-
encroachment on railway land was on the rise and the progress to retrieve the land is very slow. While expressing their dissatisfaction on the progress they directed the railway authorities to submit a detailed report in this regard within a month. Regarding the railway strategy to lease out land, senators were of the opinion that renting out precious railway land, on throw out prices, would not improve the institution until the authorities launch a strategy and operation against the ongoing corruption in the department.
cupation by individuals, Saeed khan said that a person got some railway land on lease for Rs800,000 to set up a ‘Bachat Bazar’, but he constructed 350 cemented shops and sold them to different people for Rs300 million. Overall about 5,000 acres of land owned by Pakistan Railways has been under illegal occupation. as per break up of occupied land, citizens have been occupying 3,000 acres; government 1,000 acres and Pakistan army, rangers and Frontier Corps Balchistan 860 acres of land. Committee members observed that
Dhaka’s ‘miscommunication’ costs Pakistan 50-60m euros
HDF shows concern over drop in Human Development Index of Pakistan g
g
Pakistan ranks 145 in human development index of 187 countries Government needs to coordinate with NGOs: CEO, HDF ISLAMABAD STAFF REPORT
H
OmmEntInG on Bangladesh’s surprising objection to Pakistan’s preferential trade agreement with the Eu, sources in the WtO have revealed that Dhaka had decided to support Islamabad’s case, but it could not communicate the decision to its team in time for the crucial nov 7 WtO meeting.
the Eu member states. Sources in the commerce ministry have also hinted that the possibility of behind-the-scenes connivance between India and Bangladesh cannot be ruled out. they added “out of the 153 members of WtO, 152 nations supported the trade deal, therefore the objection from Bangladesh eluded the collective wisdom of Eu member states, the WtO member countries and all stakeholders by objecting to the unilateral trade concessions.”
LOst EurOs
sPaNNEr IN tHE wOrks
“this puzzling stance of Bangladesh has cost Pakistan at least 50-60 million euros in lost exports of the 75 products included in the list of goods to be traded under the special trade concession,” the sources explained. this objection will delay the matter of Eu trade concessions by at least another three months, they added. Earlier, after almost a year of negotiations with India, new Delhi agreed to drop objections to the Pak-Eu trade deal conditional to Pakistan granting the former mFn status. However, Pakistan said the mFn will still be subject to India seriously addressing non tariff barriers. the dilly dallying tactics of India for the last year or so have cost Pakistan an enormous 250-300 million euros in terms of lost trade with
“What is being termed a ‘goof up’ has cost us tremendously, and on such international forums it is unbecoming of countries to be unscrupulous regarding decisions of prime strategic and economic importance to other countries. We have supported Bangladesh on all forums and have extended support in every possible way, therefore such decisions could create fissures in longstanding political and economic partnership with the South asian country,” said a source in the ministry of commerce. It is expected that as Bangladesh creases out the communication gap, Pakistan will request a special meeting to be convened in order to pass the unilateral trade concessions that require a waiver from the WtO.
LAhore
C
Ali Rizvi
FaCt CHECk the special Pak-Eu trade concession was offered in lieu of unprecedented damage in the wake of floods and Pakistan’s participation in the war against terrorism. It is estimated that the combined damage to Pakistan’s economy from of the floods amounted to around $43 billion. according to rough estimates by Pakistan cotton ginners association, this natural calamity resulted in the destruction of two million bales of cotton, which affected its international price. these catastrophic floods also resulted in a massive loss of food production as 17 million acres of Pakistan’s most fertile crop land was submerged in water. Damage to agriculture was calculated at $2.9 billion, which included 700,000 acres of lost cotton crops, 200,000 acres of sugar cane and 200,000 acres of rice, in addition to the loss of 500,000 tonnes of wheat stocks. In recognition of Pakistan’s sacrifices against extremism and alQaeda, taking into account the economic losses suffered due to terrorism and devastating floods last year, the Eu leadership decided to give Pakistan-specific tariff concessions in the form of autonomous trade preferences under which 75 Pakistani products would benefit from duty free access to the European markets.
uman Development Foundation (HDF) showed concerns over diminution of Pakistan in the human development index of united nations. Pakistan ranked 145 in the human development index of 187 countries has dropped 20 points this year in an index that represents better livings conditions available to the citizens of a country. In the previous human development index, Pakistan was at the 120th number. according to the un report, income distribution has worsened, and environmental degradation threatens future prospects. most people live longer, are more educated and have more access to goods and services than ever before. Chief Executive Officer of Human Development Foundation (HDF) azhar Saleem termed this declining trend of human development index a matter of great concern. Explaining the situation, azhar said that there are a number of non-government organisations working in different fields in Pakistan but the living conditions cannot only be achieved by education, health or economic development alone. He said that a higher position in human development index, the government needs to work in tandem with nGOs. In 2010, Pakistan was ranked 125th in the human development index rankings. according to the 2011 rankings, India ranks 134, Bangladesh 146, China 101 while norway tops the group with australia in 2nd place. Human development index is the comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. He further stated that HDF is based on the principles of the human development theory adopted by the un and applies a holistic approach to development including education, health and economic development.
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Saturday, 12 November, 2011
debate
PAKISTAN’S ECONOMIC DESTINY
FEMALE EDUCATION CAN CHANGE PARADIGMS Shan Saeed
I
t was 1986 and my mother was talking to our late father. Female education can change Pakistan’s economic future going forward she said. these words still echo in my ears after 25 years and it is so true. If we educate a boy, we educate one individual but if we educate a girl, we educate a society whether the girl is a home maker or a working female, she takes care of the children.
STRATEGIC VALUE OF FEMALE EDUCATION I like testing my idea on different waters to get global insight about economic success. I was attending a session of ms Christina Romer-former adviser to President Obama Economic team on 9th march, 2009 at Brooking institute at Washington DC (Professor of Economics at uni. of California, Berkley, uSa) on the invitation of my mIt/Harvard friends. I asked her an informal question as to how Pakistan can move ahead economically, politically and socially; she replied female primary/secondary education is the key to success. Countries that have really progressed economically, socially and politically, invested heavily in female education to make a remarkable turnaround for their nation. HRH Prince karim aga khan has always advocated the importance of female education.
BENEFITS OF FEMALE EDUCATION: n n n n n n n
n
Economic productivity Social development Intergenerational education Social equity Sustainability of development efforts Lowers infant mortality rate Improve economic health and purchasing power of the productive labor force Intrinsic value: Economic & Social efficiencies
GDP GROWTH RATE IN PERCENTAGE TERM S.NO 1 2 3 4 5
COUNTRIES malaysia Indonesia Singapore South korea South korea
2005 5.2 5.6 6.4 4.1 22,600
2006 5.8 5.5 8.7 4.8 24,500
need PhD’s. In fact, we need to focus on primary and secondary education which would make a huge impact on the national economy. IRR is best in primary and secondary education level up to 17 per cent and drops at university level to 11 per cent. Even in uSa, after junior college IRR in uS has been less than average interest rate (individual discounted cash flows may be positive because of state subsidy). PhD’s are important for university level faculty for improvement in their skill set and capability enhancement. HEC’s myopic vision and non-productive approach is doing more harm than good. they forced the students (sponsored by GoP) who are pursuing PhD to sign a bond to serve Pakistan upon return. this is non-productive approach. the productive and strategic approach (idea of my good friend Izhar ul Haq, PhD from Cambridge university) should be to ask the students who are pursuing their PhD’s abroad to train 2/3 PhD’s in Pakistan upon their return, carry out research work and then they can go wherever they want if they find a job outside Pakistan. that is their fundamental right. the Singaporean universities are following the same pattern. I am sure this approach is not authoritative but harmonious for all stakeholders involved in the process to ponder upon. I have traveled extensively in the aPaC [Singapore/malaysia/Indonesia] region and north america, having studied the economies, I would like to share few analyses, and how these countries have performed by investing in female education. these countries have remained ahead of the game in economic progression and growth.
ECONOMIC IMPACT
SOURCES
Our policy makers have their priorites all wrong in the last 20 years. Pakistan doesn’t
Sonia Raj, Research student at Dow Institute of Health Sciences, World Bank, ImF,
2007 6.5 6.3 8.8 5.1 25,000
2008 4.7 6.0 1.5 2.2 27,600
2009 4.3 4.6 1.7 2.4 28,100
THREE VARIABLES WITH DEEP MACRO ECONOMIC IMPACT 2010 7.2 6.1 14.5 6.1 32,000
IFC, Economist magazine, Business week university of Chicago, Library, uSa, Prof Gary Becker—nobel Laureate at university of Chicago, Booth School of Business, uSa research in human capital.
EMPIRICALLY PROVEN the above variables clearly illustrate how investment in female education can help the economies to succeed in moving ahead in this era of economic acceleration and prosperity as the markets turn uncertain towards depression. there is a very strong correlation between female literacy and GDP growth rate which is empirically proven. GDP growth rate and economic prosperity is tied to female education as well as emancipation. Educated females contribute 83 per cent to the overall GDP growth rate. this is very conspicuous and proves my point of educating females at grass root level. In Pakistan, we can make economic progress by investing at the grass root level of female education i.e. primary and secondary. We have to educate our females on war footing in order to get out of this economic malaise and financial repression. We can take assistance of some of the leading female role models of our country including marina khan, Shahnaz Sheikh, naveed Shahzed, Salima Hashmi, moneeza Hashmi and Dr. anita Ghulam ali who are well respected in the country to carry out this mission to turnaround the economy for the betterment of the people in the long run. I would like to utilise my networking including inviting american actress/model katheryn Swann, Brand Strategist Libby Gill and French/ Lebanese fashion designer Rola Ezzedine to help us in this cause to progress economically and so-
PER CAPITA INCOME IN DOLLAR TERMS S.NO COUNTRIES 2005 1 malaysia 12,000 2 Indonesia 3,600 3 Singapore 28,600 4 South korea 22,600
2006 12,900 3,900 31,400 24,500
2007 14,500 3,600 41,900 25,000
2008 15,200 3,900 46,500 27,600
2009 16,800 4,000 47,900 28,100
2010 17,700 4,200 49,100 32,000
RATIO OF FEMALE EDUCATION IN PERCENTAGE TERMS S.NO 1, 2, 3, 4,
COUNTRIES malaysia Indonesia Singapore South korea
2005 95.8 97.4 97.6 98.1
2006 96.5 96.3 98.6 98.9
2007 97.5 97.8 98.9 99.4
2008 97.8 99.4 99.9 99.7
2009 98.7 98 99.8 99.8
2010 98.9 98.5 99.5 99.8
cially. the government needs to galvanise its efforts and hard work to remain focused to improve the living standard of the masses by educating the people of this country. I strongly believe that female education is the only hope that can bolster our efforts to achieve economic and social prosperity in the country. Education investment dividends can come in handy in the next 510 years. Based, on what my mother said, the motivation to write this article was mainly due to her, aftab Saeed and my father, Saeed Hafeez. Happy investing in female education to bring about change in the living standards of our society. Shan Saeed is a financial economist and commodity expert with 12 years of financial market experience. He has graduated from Booth School of Business, University of Chicago, USA and IBA Karachi. Blogs at www.economistshan.blogs pot.com
Repercussions of granting MFN to India Ismat Sabir
a
t last Pakistan has decided to grant India the status of most Favoured nation (mFn). India granted this status to Pakistan in 1996 but Pakistan did not reciprocate. therefore, India is rightly demanding that Pakistan should give it the status of most Favoured nation (mFn). they said the government of Pakistan should not only give India mFn status but also shift from positive list of imports to a negative list. the Indian officials claimed that it would result in a five fold increase in bilateral trade, which would increase from the present $2.7 billion to more than $10 billion between the two countries in next a few years.
STREAMLINING CUSTOMS PROCEDURES India has a 'sensitive list' of about 850 tariff lines for all non Least Developed Countries members of SaFta, including Pakistan. trade under these items is allowed under mFn basis. India claimed that in coming years, tariff rates would come down to the global levels. to improve infrastructure along with streamlining and harmonising customs procedures at land borders, the Indian government is setting up a modern integrated check post at India Pakistan border at attari for trade facilitation, which was expected to be ready by april 2011. Presently goods are
traded from Wagah post only. Pakistan allows import of about 110 items from India through land route while it is exporting only one item, cement, to India through the same route. according to the World trade Organisation (WtO), “mFn status means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners, whether rich or poor, weak or strong”. mFn is one of the instruments in use by the WtO to make member countries’ trade, more competitive and non discriminatory. India and Pakistan are the signatories of the WtO agreement; therefore, Pakistan is bound to grant mFn status to all member countries including India, without any discrimination.
HISTORY In the early days of international trade, most favoured nation status was usually used on a dual party, state-tostate basis. a nation could enter into a most favoured nation treaty with another nation under which the uS granted most favoured nation trading status to Britain. the documents indicated that “generally bilateral, in the late 19th and early 20th century unilateral most favoured nation clauses were imposed on asian nations by the more powerful Western countries. One particular example of mFn status is the treaty of nanking as part of the series of unequal treaties. It
was implemented in the aftermath of the First Opium War between Great Britain and Chinese Qing Dynasty involving the Hong kong islands”. after World War II, tariff and trade agreements were negotiated simultaneously by all interested parties through the General agreement on tariffs and trade (Gatt), which ultimately resulted in the World trade Organisation in 1994. the WtO requires members to grant one another mFn status. a most favoured nation clause is also included in the majority of the numerous bilateral investment treaties concluded between capital exporting and capital importing countries after the Second World War. the mFn also called normal trade relations, guarantee of trading opportunity equal to that accorded to the most-favoured nation. It is a method of establishing equality of trading opportunity among states by making originally bilateral agreements multilateral. as a principle of public international law, it establishes the sovereign equality of states with respect to trading policy. as an instrument of economic policy, it provides a treaty basis for competitive international transactions, according to WtO documents.
NTBS A MAJOR HINDRANCE India said if trade between the two countries expands it would reduce freight cost, quick deliveries and short inventories. However, much depends on smooth political relations between the two countries.
the share of India in Pakistan’s total exports remained about 1 to 2 per cent, whereas in total imports, it has been 1.24 to 2.66 per cent. this decision would also legalise the ongoing illegal trade of Indian goods to Pakistan via Dubai or any other third country. a SBP report indicated that allowing import of items from India, i.e. expanding the current list of positive items, will give Pakistan an average saving of $400 to $900 million. Out of the 100 countries with which Pakistan trades, India is Pakistan’s ninth largest trading partner. this indicated that Pakistan’s trade with India is more than its trade with France, Italy, thailand, Iran, Canada, malaysia and Japan in 2007-08. In September, during a meeting between the two commerce ministers, India and Pakistan, agreed to more than double bilateral trade within three years, from the present level of $2.7 billion per annum to about $6 billion. new Delhi had pointed out that trade could be enhanced in petroleum, energy and commodities. main items of exports to India are vegetables and fruits, textile yarn and fabrics, leather and leather manufacturing, petroleum crude, plants for perfume, pharmaceuticals, rice, sugar refined etc. In 2008-09 Pakistan exported goods worth $320 million that reduced to $268 million in 2009-10. the trade between the two countries was $1.4 billion in 2009-10. Of which Indian exports to Pakistan were $1.2 billion and exports to India were only $268 million. In 2010-11,
India Pakistan trade was $2.6 billion but in real terms it is actually one way trade. It also indicated that India has not liberalised trade for Pakistani products. tariff rates of India are significantly high, especially for goods of particular interest to Pakistan, such as textiles, leather and onyx. there are many factors hindering trade between the two countries like poor railway and road linkages, making trade more costly and difficult. Besides, inadequate sea shipments facilities, issuing limited number of visas, cumbersome payments, customs procedures and bureaucratic attitude are also restricting trade.
INDIAN INTRANSIGENCE
It has been said that the trade liberalisation process is linked with the removal of non-tariff barriers (ntBs) by the Indian government. the commerce ministry said the mFn is not a new issue as Pakistan and India had signed the General agreement on tariffs and trade (Gatt) under which all member states had enjoyed mFn status. From 1947 to 1965 both the countries had signed four agreements. Pakistan has already assigned mFn status to over 100 countries. Welcoming the decision Indian trade Secretary said it would not only be good for commerce but it would increases confidence on the economic front that both Pakistan and India are committed to moving the social and trade agenda. India wants Pakistan to grant it mFn status without linking it to non-tariff barriers.
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Saturday, 12 November, 2011
Indian dichotomy and MFN
EDITORIAL
Urea again
W
E must keep addressing the urea issue so long as the government’s handling of it leaves a little something to be desired, especially since the commodity’s shortfall has a direct bearing on food prices. and now that gas shortage has already bid up prices, translating quickly into ag-flation, it behooves the government to ensure farmers’ complaints of miss-pricing the subsidy and hoarding are addressed urgently. already, despite the subsidy, the price per bag has increased a good 53 per cent. and to make matters worse, there’s yet no mechanism to check hoarding typical of the sector, pushing up prices unrealistically and burdening the end consumer. Since much of the periphery already survives on mere subsistence, thanks to the long high-inflation trend, lack of proper official attention might just push marginalised groups into revolt, by no means a novelty in the present international environment. the official position is surprising since handling some of these issues is not very difficult. Once handling gas-shortage was mistimed, relevant authorities should have moved quickly to ensure compliance with proper price structures to keep an already uncomfortable situation from turning volatile. Should the situation turn still worse, there will be no prizes for guessing where inefficiency is rooted.
Animal sacrifice the dip in the practice of animal sacrifice this Eid was pretty obvious, and it was clearly because of the inflated prices of the animals. It is a shame that we haven’t even spared our religious customs from becoming means of unethical profit making. I, for one, could not afford even one of the modestly priced goats and had to make do with sharing the sacrifice to prevent a burning hole in my pocket. although, we are used to escalating prices, but it is my humble request to the government that they should help an average man perform his religious duties; at the very least.
AnSAr KhAn iSlAmAbAd
Dr Ashfaque H Khan
T
HE Government of Pakistan has agreed in principle to accord the most Favoured nation (mFn) status to India. this decision has created debate in Pakistan – some are favouring while others are expressing concerns. Before I share my views on the subject, it is pertinent to dispel some misunderstanding about the mFn status. What is mFn status? the mFn status is a clause in international trade treaty under
Are regressive Non Tariff Barriers in return for MFN promoting fair trade? which the signatories promise to extend each other any favourable terms offered in agreement with third parties. For example, if country a negotiated a tariff cut with Country B, and subsequently B negotiated an even more favourable cut with Country C, then the tariff rate applying in the second case will also be extended to country a. Furthermore, if commodity a is imported and x-per cent duty is charged then the same per cent of duty must be charged irrespective of the origin of imports of commodity a. in other words, mFn status simply means prohibiting discriminatory treatment among trading partners with respect to tariffs, border charges, as well as other taxes. as a signatory to the WtO, Pakistan is obliged to extend mFn status to all WtO member states including India. In other words, Pakistan cannot discriminate India in international trade. India has already provided mFn status to Pakistan in 1996. While India granted Pakistan the mFn status in 1996, one wonders why Pakistan did not reciprocate the favour. the primary reason is that Pakistan believes in a fair trade regime. With India according us the mFn al-
most 15 years ago, trade volumes from Pakistan to India have not improved. the balance of trade remained in favour of the former, while exports from Pakistan were negligible owing to a plethora of non tariff and Paratariff Barriers. therefore, Pakistan’s point of contention has been the fact that there exists an unnerving dichotomy in Indian policy that on the one hand presses for trade liberalisation and on the other suppresses a fair trade regime through ntB’s. In 2010, owing to the devastative floods that struck Pakistan, the European union (Eu) decided to extend special trade concessions that may enable Pakistan to earn extra foreign exchange for a limited period of two years. In particular, the Eu decided to offer unilateral trade concession on 75 items to Pakistan allowing duty free access to the European markets. However, these trade concessions by the Eu required a waiver from the WtO before it could be implemented. What was most striking that India was the only country who objected to the Eu offer to Pakistan in the WtO, other than Bangladesh. Interestingly, India at no stage claimed that it would be at a disadvantageous position by this trade deal. the uncompromising stance of our neighbour has resulted in the trade deal being delayed to date as the WtO works by consensus and Eu required all WtO members to consent to its proposal. India linked the grant of the mFn status to removing objections from the Pakistan – Eu trade deal. Such intransigence compels one to wonder whether Pakistan is seeking trade liberalisation with Europe or India. Is Pakistan giving Europe the mFn status? Is this about seeking fair trade with the Eurozone? to deal with the Indian opposition to WtO, the Government of Pakistan has agreed in principle to accord the mFn status to India. India will soon be granted the mFn – its cherished goal, in return for supporting Eu trade concessions to Pakistan. Ironically, they have yet to address Pakistan’s concern about the non-tariff barriers (ntBs) which have restricted trade between the two countries thus far. It has been the principle stand of Pakistan that to strengthen SaaRC as a regional organisation, India and Pakistan should pursue a fair trade regime. If Pakistan and India expand their trade relations it would encourage other member countries of the SaaRC to enhance their trade within the region. Such a regime between India and Pakistan can only be instituted if the
former removes all the ntBs and allow level playing field to Pakistani exporters. many countries in the world including Pakistan have expressed extreme reservations about India’s continued use of ntBs to trade. Pakistani businessmen feel that there are some ntBs which are Pakistan specific. What the government of Pakistan needs to explain to its people is how can trade between India and Pakistan flourish in the presence of ntBs? It is indeed intriguing that Pakistan moved in haste without protecting its own interests and those of the SaaRC region. In the recent meeting of WtO Committee for trade in Goods, although India did not object to the trade package but surprisingly Bangladesh who now raised objection to the said deal which has delayed the concessions once again. the Eu concession issue is not likely to be resolved soon even if Bangladesh raises no objection at the WtO. there are other countries, namely Brazil and Peru who could oppose Eu concessions to Pakistan. their argument is that like Pakistan they also suffered heavily on account of massive flooding and if the Eu wants to assist Pakistan then they should be extended the same treatment. Who knows, some other countries might raise their concern in the next meeting of the WtO. Pakistan has decided in principle to accord mFn status to India in return to a temporary (two year) deal. It has compromised on its principle stand that trade between the two countries must be enhanced in a fair trade regime environment. By according mFn status to India, are we promoting trade between India and Pakistan or between Pakistan and European union? For meaningful progress that will result in mutual trade and economic gains, India must finally move beyond the dichotomy that has defined its posture towards Pakistan for far too long. It can no longer make trade advances while incorporating regressive non tariff Barriers at the same time, defeating the very purpose of the exercise. as the recent episode regarding the mFn status and Pakistan’s Eu concessions shows, there is an inherent insincerity in the Indian establishment with regard to Pakistan. If it expects Pakistan to open its trade borders to new Delhi, India must first prove its commitment to progressive change that both capitals have been trumpeting. The writer is a prominent economist and principal, NUST business school. He can be reached at ahkhan@nbs.edu.pkbank.
Giving quality education a chance
U
Maheen Syed
nFORtunatELy, even in the 21st century where excessive media exposure and massive level of globalisation have entirely metamorphosed the concept of change and development for many of us; the government of our country remains indifferent with only a tiny bit of its budget being allocated for the education sector. the figures and literacy rate of Pakistan, however, show the brighter side of the picture. this is mainly because the definition of a ‘liter-
ate person’ in Pakistan does not really describe a literate person. Ironic, isn’t it? according to the definition of literacy that has been drafted by the united nations Educational, Scientific and Cultural Organisation (unESCO); literacy is the ability to identify, understand, interpret, create, communicate, compute and use printed and written materials associated with varying contexts. It involves a continuum of learning in enabling individuals to achieve their goals, to develop their knowledge and potential, and to participate fully in their community and wider society. Surprisingly, someone who can read and write a simple letter, in any language happens to be a literate person in Pakistan! this definition is in stark contrast to many developed as well as developing countries where the definition is more qualitative. So technically, what explains a ‘simple’ letter? Does this refer to a written element of an alphabet that represents a single phoneme or ….? the definition also fails
to specify the language of the letter and the newspaper. So that means if I am able to read a newspaper in Hebrew and also write a simple letter in the same language; this would earn me the title of a literate person, irrespective of the fact that I am a part of a South asian country whose national language is urdu? So are we blinded by ignorance or what? talking in the same context, if we skim through the pages of the past or even consider the current efforts being made by the government for the improvement of the educator sector, we analyse the lack of political commitment, low quality education, lack of stress on primary education, improper checks and balance, etc. I got a chance to teach at a local government school in Punjab and was baffled to see the number of mistakes in the text books provided by the government under the education promotion schemes. It was indeed appalling because the students would not believe me over the book. ‘a book
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Change should be understood as a concept that has to take place through existing social institutions
is always true and authentic,’ they said. Be it the ‘Benazir Income Support’ programme or the ‘Parha Likha Punjab’ programme; each has proved yet another futile effort that has failed to do any good; the major reason being lack of stress on quality education. this makes us come to the conclusion that even if a higher per cent of the budget is allocated for this sector, there would still not be enough of good news because of the many loop holes and grey areas associated with the allocation. the proper solution lies in the standard and quality of education that need to be focused upon. Efforts should be made to replace the out-dated curriculum with international standards of quality education, which has little relevance to the present day. In this way, standardisation in the ed-
ucation system can also be ensured, when both the private and public schools will be following the same system of education and text books. Similarly, proper quality training should be given to the teachers. Finally, economic and social change should be understood as a concept that has to take place through the existing social system and the networks of social institutions. the need to realise the role of education, in this respect, as an agent or instrument of social change and economic development has to be widely recognised. mainly because youth is the backbone of any country and it is expected to play a constructive role towards change and a better tomorrow. Let the change, and revolution, be through quality education! The writer is sub editor, Profit
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Globalisation offers marvellous potential profits to all nations of the world
news
LCCI president Irfan Qaiser sheikh
Swiss ambassador upbeat about Pak investment climate Pakistan’s decision to grant mFN status to India an added attraction for swiss Investors g switzerland currently sixth largest investor in Pakistan g
LAhore
L
STAFF REPORT
aHORE Chamber of Commerce and Industry, on Friday, invited the Swiss investors to avail marvellous opportunities available in livestock, dairy and agriculture sectors. In a meeting with Swiss ambassador to Pakistan, Christoph Bubb with LCCI president Irfan Qaiser Sheikh, senior vice president kashif younis meher and vice president Saeeda nazar also sought Switzerland’s help over GSP plus status to Pakistan. LCCI president Irfan Qaiser Sheikh informed the visiting ambassador that Pakistan’s decision to grant mFn status to India is an added attraction for the Swiss Investors to put their money in agriculture, Livestock, dairy and a number of other sectors. “Prices of agricultural land in India are three times higher than that of Pakistan and any investment
made in Pakistan would definitely find its way to India”. LCCI president also stressed the need for exchange of business delegations between the two countries so the business community could have first hand knowledge about the huge potential that exists. “Globalisation offers marvellous potential profits to all nations of the world and both Pakistan and Switzerland have a great deal of opportunities in this context to expand their trade and economic relations therefore sector-specific measures are needed to realise untapped areas of business.” Both the sides also agreed to expedite the process of sharing of trade related information so that businessmen could be able to do business with each other. the ambassador was of the view that Swiss business community was quite impressed and they are ready to make further investments despite the fact that Switzerland was the sixth largest investor in Pakistan.
He said the government would have to focus on electricity shortage, security situation in the country and rule of law to restore the confidence of foreign investors. He said there are quite a few sectors wherein there is huge potential for Swiss businessmen particularly transfer of technology for textile sector has a lot of scope. He said that several Swiss companies were already operating in Pakistan and doing a successful business, which is enough to prove that Swiss investment has a bright future in this country. the ambassador expressed the hope that Swiss investment would see a boost in coming months due to liberal investment policies. Speaking on the occasion, LCCI office-bearers said major bottleneck in promotion of trade and economic activities between the two countries is lack of information about business opportunities available. We need to undertake frequent activities like exchange of business delegations, organising
country exhibitions, participation in fairs & exhibitions, seminars and workshops etc to ensure a continuous liaison. Interaction between the chambers can be highly beneficial. they said the country has abundant natural resources and skilled cheap manpower but lacks technology. It is a key market of 180 million people. It is a gateway to Central asian Republics, South asia and Gulf countries. Population of SaFta alone stands at 1.4 billion people. the market of these countries, including afghanistan, can be effectively and conveniently serviced from Pakistan. they said that Swiss economy is one of the most developed economies of the world. It has highly advanced industries such as machinery, chemicals, watches, textiles and precision instruments. they also informed the ambassador that the present government has adopted a liberal investment policy and there is no restriction on sending back the principal, dividends, profits and royalties. Hence, the Swiss businessmen should come forward and seize upon the unprecedented investment opportunities in Pakistan. Honorary Consul in Lahore Suleman n. khan was also present in the meeting.
MFN to India hailed
Swiss Ambassador visits APTMA LAHORE: Swiss ambassador His Excellency, Christoph Bubb visited, all Pakistan textile mills association (aPtma) and discussed issues related to bilateral trade and investment prospects in textile industry of Pakistan. Chairman aPtma, Punjab ahsan Bashir welcomed the Swiss ambassador and briefed him of the potential of textile industry of Pakistan. Vice Chairman aPtma, Punjab Shahid Faraz and member Central Executive Committee, ali ahsan, were also present on the occasion. Secretary aPtma, Punjab anis-ul-Haq made a detailed presentation on aPtma as a premier textile industry association to the Swiss envoy. STAFF REPORT
LAhore STAFF REPORT
t
HE decision to grant mFn status to India is a welcome step; but before signing any formal agreement both the Pakistani and Indian governments would have to ensure proper infrastructure at Wagah Border with private sector participation. In a statement issued here Friday, former LCCI Vice President and Convener Standing Committee on Pakistan-India, aftab ahmad Vohra has said that there was a dire need to establish
a container yard, expand loading and unloading space, create fullfledged online banking facility, and establish Quarantine department and other labs. aftab ahmad Vohra also alleged that the nLC team at Wagah is charging huge amounts under the head of service charges. therefore, the government should constitute a board or trust comprising of members from both the public and private sectors to monitor the day-to-day working at Wagah border. He said the government must focus on solving the problems being faced by business
community, especially by importers at Wagha Border. national Logistic Cell (nLC) is handling all cargo arrangements at Wagha Border terminal and has drastically increased loading and unloading charges, scanning charges, inward and outward local truck gate pass charges, demurrage charges, storage charges and wharfage charges, without prior consultation with stake holders. In addition to this, the coordination between the departments including customs, nLC and banks engaged at Wagha Border terminal needs a lot of improvement.
Bourse closes with 50 point gain, technical error witnessed KArAchI STAFF REPORT
D
uE to technical error the market closed 15 minutes earlier from its official closing, therefore, today’s trading has been merged in the coming monday’s session. according to the notice issued by the Deputy General manager Operations karachi Stock Exchange it was informed that due to technical fault the kSE building terminal got disconnected that resulted in the suspension of the Friday’s trading session earlier than closing time. ‘Consequently, it has been decided that trading of Friday november 11, 2011 and monday november 14, 2011 will be merged and settlement for both days will take place on Wednesday novem-
Govt must ensure uninterrupted power supply to compete with Indian market: ICCI ISLAMABAD: Pakistan is confronted with an acute energy crisis which is taking a heavy toll on economy. Granting most Favored nation (mFn) status to India could create difficulties for Pakistan’s trembling economy. President, Chamber of Commerce and Industry (ICCI) Islamabad, yassar Sakhi Butt said in a statement that there is a dire need to provide business friendly environment to our local industries by ensuring uninterrupted supply of electricity and gas. Otherwise, our domestic industry can not compete with Indian cost effective products. He said that before giving mFn status to India, the government should have make sure that at least our industry is running in full swing so that we are in a position to take the benefit of a big Indian market. It is however, surprising that no chamber and association have highlighted this issue. President ICCI said that pharmaceutical industry would definitely suffer which is one of the fastest growing industries in Pakistan and has shown growth of 17 per cent in the last 5 years despite the deplorable economic conditions. He said government should also take notice of the fact that Pakistan could not take any advantage of the mFn status given to it by India some 15 years back. STAFF REPORT
sECP extends facilitation to the corporate sector ISLAMABAD: the Securities and Exchange Commission of Pakistan (SECP) extends facilitation to the corporate sector in collection of annual returns and accounts for filing of annual statutory returns and accounts. Last date of filing Form 29 for most of the companies is 14th november 2011. Companies are also required to file annual returns on Forms a/ B within 45 days, in case of listed companies and 30 days in case of other companies, of holding of annual General meetings (aGms). annual audited accounts are also required to be filed within 30 days of holding of aGms. CROs shall also remain open on the coming Saturday during 8:30 am to 5:30 pm and till late hours, i.e., 8:00 pm; on the 14th, 29th and 30th november 2011, respectively. Special facilitation desks have been established at the CROs with designated staff to facilitate companies in submission of annual returns and accounts. STAFF REPORT
aPCNGa demands revision in 3 day load shedding plan for CNG ISLAMABAD: all Pakistan Compress natural Gas association (aPCnGa) while rejecting government’s three day gas load shedding plan, proposed a new gas load management formula; suggesting that it will enable every one to get CnG and benefit the general public and government. aPCnGa central executive committee meeting has demanded to revise the load shedding plan for CnG in order to resist the immense pressure from consumers, public and transporters. “People go harsh on refusal of CnG on CnG stations, which is harmful for our business” the Central Chairman, Ghiyas abdullah Paracha said to the media after the meeting. this way the hardships of public will be increased and our business will be ruined, he said. STAFF REPORT
PIaF asks withdrawal of electricity tariff increase LAHORE: Sudden increase of Rs3.40 per unit in electricity tariff ostensibly in the name of fuel adjustment not only has its repercussions in industry, but is against the masses as well. It could be perceived as the last straw on camel’s back, so to speak. Bulk increase would also give a bad name to the government and therefore, the government should withdraw it immediately. these views were expressed by the Chairman, Pakistan Industrial and traders associations Front (PIaF), Sohail Lashari, Chairman, auto Parts manufacturers and Exporters association, tahir Javed malik and Chairman, Lahore township Industries association (LtIa), Haroon Shafiq Chaudhry in a press statement. STAFF REPORT
all model Customs Collectorates to remain open on saturday ber 16, 2011,’ the notice stated. market men informed this scribe that by dint of this error they could not make clearance to their stocks. the market usually closes at 4:30 pm on Fridays, but by dint of a technical error occurring in the It department the clearing of the day has been moved to coming monday.
Prior to close, the kSE 100 index closed at 12019.32 levels with the gain of 50.27 points, while kSE 30 index gained 73.08 points to close at 11373.46 levels. all Share index closed at 8312.17 levels after gaining 30.90 points. total 154 scrips advanced 77 declined and 2 remain unchanged out of total 260 scrips traded.
total volume stood at 35,040,710 along with the value of 2,781,764,718. the highest point of the index was 12111.98 during the trading session and the lowest was 11969.05, with the closing percentage of positive 0.42 percent. top symbols included mCB, nishat mills, national Bank, DGk cement, and arif Habib.
ISLAMABAD: the Federal Board of Revenue (FBR) directed all the model Customs Collectorates to remain open on Saturday and consider it as a normal working day in order to facilitate the trade and industry in getting their cargo cleared for imports and exports. the FBR requested State Bank of Pakistan (SBP) and national Bank of Pakistan (nBP) to provide banking facility by the designated branches in order to ensure the payment of duty and taxes. FBR has also advised the port authorities and port operators to synchronise their working, accordingly. STAFF REPORT
Layout Profit 7 pages_Layout 1 11/12/2011 10:11 PM Page 5
Saturday, 12 November, 2011
The most important element to overcome this crisis is a very trusted and able new Italian government that can really fulfill the structural changes that are needed
news
ECB Policymaker Ewald Nowotny
05
Italy pushes through austerity roMe
I
REUTERS
taLy'S Senate approved a new budget law on Friday, clearing the way for approval of the package in the lower house on Saturday and the formation of an emergency government to replace that of Prime minister Silvio Berlusconi. Obama spoke with German Chancellor angela merkel and French President nicolas Sarkozy late on thursday and also called Italian President Giorgio napolitano, who in turn was due to speak to Sarkozy in a round of telephone diplomacy. a German government official said there had been an "exchange of opinions" between merkel and Obama, while treasury Secretary timothy Geithner demanded fast action from Europe. "the crisis in Europe remains the central challenge to global growth. It is crucial that Europe move quickly to put in place a strong plan to restore financial stability," Geithner said in a statement following a meeting with finance ministers from the asia Pacific Economic Cooperation countries. after months of dither and delay, Rome appears to have got the message as bond markets pushed it to the brink of needing a bailout that the euro zone cannot afford to give. If the votes pass smoothly, napolitano will accept Berlusconi's resignation over the weekend and ask veteran former European commissioner mario monti to form a government. Fellow technocrat and ex-European Central Bank policymaker Lucas Papademos will head a new unity government in Greece. Berlusconi, who lost his majority in a vote on tuesday, has promised to resign after the financial stability law is passed by both houses of parliament. He had insisted on early elections but
then softened his stance. markets were calmed by the prospect that there would be an interim government, rather than a three-month vacuum before elections are held. "the most important element to overcome this crisis is a very trusted and able new Italian government that can really fulfill the structural changes that are needed," ECB policymaker Ewald nowotny told Reuters in Beijing. the euro firmed but investors doubted whether it would climb far, given that even a technocrat Italian government might struggle to make progress on long-promised, never-delivered fiscal reforms. Italian 10-year borrowing costs fell sharply to 6.7 percent, having hit an unsustainable 7.5 percent earlier in the week. "We can have maybe two or three days of calm -- in inverted commas -- but nothing has really changed underneath," one bond trader said. Spain, the euro zone's fourth largest economy, which holds elections in nine days' time, stopped growing in the third quarter, raising doubts about its ability to meet deficit reduction targets.
RELUCTANT ECB With European leaders dithering over how to tackle the deepening crisis, pressure has mounted on the European Central Bank to act more forcefully by becoming a full lender of last resort, as the Federal Reserve and Bank of England are. three senior ECB policymakers on thursday rebuffed arm-twisting from investors and world leaders to intervene massively on bond markets to shield Italy and Spain from financial contagion. Germany Economy minister Philipp Roesler said on Friday the ECB did not have "unlimited firepower," adding that if it opened its floodgates fully, they could never be closed again.
Germany strongly opposes the ECB taking on a broader crisis-fighting role, arguing this would compromise the independence of the bank. the euro zone's plan for a more powerful rescue fund may also be running into trouble. klaus Regling, the head of the 440 billion euro European Financial Stability Facility, was reported by the Financial times as saying the recent market turmoil had made it more difficult to scale it up to 1 trillion euros, as proposed by euro zone leaders who promise a definitive plan by December. Luring investors by offering insurance on losses, the centerpiece of a plan agreed in Brussels on October 26, would now probably use up more of the fund's resources, Regling said. "the political turmoil that we saw in the last 10 days probably reduces the potential for leverage. It was always ambitious to have that number, but I'm not ruling it out," the Ft quoted him as saying.
NOWOTNY EXPRESSES CONCERN "It is very important that these plans -- actually these decisions -- now really get operational, and I'm a bit concerned that this takes a long time, perhaps too long," he said.
PAPADEMOS IN POWER In athens, Greece's prime ministerdesignate was set to name a new crisis cabinet to calm the political turmoil that has threatened to bankrupt athens and force it out of the euro zone. Greece's two main parties agreed on thursday to make Papademos head of a new unity government, ending a chaotic search for a leader to save the country from
Italy's parliament is rushing through austerity measures demanded by the European union to avert a euro zone meltdown, after President Barack Obama ratcheted up pressure for more dramatic action from the currency bloc default. He must now fulfill the terms of a 130 billion euro bailout plan agreed with European partners in October. the former ECB vice president faces huge challenges after a chaotic power struggle between Greece's two main political forces. Sources in the ruling Socialists and opposition new Democracy said Evangelos Venizelos was likely to remain finance minister when the new cabinet is sworn in at a ceremony scheduled for 1400 Gmt. automo-
tive giant Daimler spoke out against keeping Greece in the euro zone at all costs and said the euro would survive even if it w e r e forced out. "I wouldn't consider one link splitting off from the rest as a 'break-up' of the euro zone," Chief Executive Dieter Zetsche told Reuters in an interview.
CORPORATE CORNER PtCL trains senior managers in new management concepts
mediterranean for trade and export. Benghazi is home to numerous industries, including oil refining, food processing, cement production and fishing, which would benefit from the new flights to and from Doha and Qatar airways’ connecting points across the middle East, africa and asia Pacific. PRESS RElEASE
Digger by Borjan holds strength competition ISLAMABAD: Pakistan telecommunications Company Limited (PtCL) has successfully trained 30 senior managers through its ongoing dynamic management Development Program. “I congratulate our senior managers on this achievement,” said PtCL Chief technical Officer, muhammad nasrullah while addressing participants at the certificate awards ceremony held at the program’s conclusion. PRESS RElEASE
Qatar airways launches flights to Libyan city of Benghazi
300 uBL branches to remain open on saturdays nationwide
ISLAMABAD: Borjan organised a fun filled competition, “are you the Digger strongman?” at national university of modern Languages (numL) in Islamabad. the competition was held to discover and promote the hidden talent of society and also engage the young generation in healthy activities. advertising manager, Digger shoes, mr Shahid Riaz was the chief guest at the thrilling event. PRESS RElEASE
the karachi chapter of DIL showcases, “karachi: Haar Na mano” BENGHAZI: Qatar airways has launched scheduled flights to the Libyan port city of Benghazi in north africa. Operating four-times-a-week from Doha, Libya’s second largest city is a leading economic centre, ideally located on the
underprivileged children, especially girls. nida Butt, renowned for being one of the most dynamic and original choreographers working in theatre in Pakistan, and Hamza Jafri, seasoned music composer, have put together an original play with a completely original sound track. the coproducer for this production is Waqas Bukhari. “It is the first time we are doing a play in urdu,” said nida Butt, the driving force behind made for Stage Productions. “and it is also the first time we are doing a story which is so relevant to us, our city and our times.” PRESS RElEASE
KARACHI: the karachi chapter of DIL, Developments in Literacy, held a special showing of the acclaimed original musical, “karachi: Haar na mano” at the karachi arts Council. DIL karachi is part of DIL international, an nGO which is dedicated to educating and empowering
KARACHI: For greater customer convenience and facilitation, 300 uBL branches will remain open between 9:00am to 1:30pm on Saturdays, nationwide. to further facilitate the valuable customers, 472 uBL atms will also offer cash withdrawal, intrabank funds transfer, Inter Bank Funds transfer (IBFt) between partner banks, utility Bills Payments Service (uBPS), balance inquiry, mini statement and PIn change facilities. also, over 5000 other banks’ 1 Link and m net atms will also be facilitating all type of uBL cards (debit, credit and wiz prepaid). PRESS RElEASE
tCP awards tender for import of 440,000 mt urea KARACHI: trading Corporation of Pakistan (tCP), in response to its international Gallop tender notice, awarded import contracts for a total of 440,000 metric tonnes (mts) of urea @ uS$ 540.75 per metric tonne (Pmt) C&F, on the lowest bid basis, to four (4) different responsive bidders. In all, 13
responsive bidders participated in the tender and quoted prices ranged from uS$ 540.75 to uS$578Pmt (C&F). m/s Dreymoor Fertilizers Overseas PtE Ltd. offered the lowest price of uS$540.75Pmt C&F initially for 50,000mt. as the offer conformed to all technical specifications and evaluation criteria given in the tender document, the bidder was awarded contract for import of 100,000mt urea. three more bidders viz. m/s keytrade aG Switzerland, m/s transmonia, Switzerland and m/s Incitec Pvt Ltd., australia who had quoted higher rates agreed to match the lowest price of uS$540.75Pmt C&F for supply of 100,000mt, 150,000mt, and 90,000mt, respectively. Hence, the contracts for the agreed quantities were awarded to them, as well. PRESS RElEASE
President aBF supports mFN status to India LAHORE: President american Business Forum (aBF), Salim Ghauri has supported the government’s decision to extend most Favoured nation (mFn) status to India, saying Pakistan is strong enough to compete with India economically. also, he said, only an economically strong Pakistan would be in a position to resolve political disputes in the region. Salim said it is time for Pakistan to go out of way in developing trade relations for economic survival in fast changing global economy. Regarding kashmir dispute with India, President aBF said this issue would remain unsettled for another 60 years if no improvement on bilateral Indo-Pak trade relations takes place. He also said that the federal government’s decision to extend mFn status to India is a step in right direction, and it would not only benefit Pakistan and India but the whole region as well in future. PRESS RElEASE
Layout Profit 7 pages_Layout 1 11/12/2011 10:11 PM Page 6
Saturday, 12 November, 2011
06 Markets top 10 sectors
59% 09% 09% 04% 07%
Chemicals
01% 04% 01% 04% 02%
Industrial Transportation
Construction & Materials Electricity Banks
Fixed Line Telecommunication
Oil & Gas
Financial Services
Personal Goods
Equity Investment Instruments
STOCK MARKET HIGHLIGHTS Index 12019.3 3171.09 2690.5
KSE-100 LSE-25 ISE-10
Change + 50.27 -4.87 +34.5
Volume 35,040,710 943,455 50,261
Market Value 2,781,764,718 35,963,687 1,585,776
Major Gainers Company Bata (Pak) Ltd. Colgate Palmolive Siemens Pak Attock Petroleum Sanofi-Aventis
Open 812.31 561.00 924.75 415.68 145.27
High 852.92 588.00 949.00 423.89 149.99
Low 795.00 588.00 878.55 416.60 149.99
Close 852.92 588.00 949.00 421.00 149.99
Change 40.61 27.00 24.25 5.32 4.72
Turnover 19 1 100 11,994 1
3185.00 5599.00 133.00 63.15 65.60
3080.00 5589.98 133.00 62.00 59.47
3080.00 5599.00 133.00 62.00 59.47
-81.93 -25.93 -7.00 -3.23 -3.12
88 21 7 2,510 10,004
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
Agritech Ltd. Arif Habib CoXDXB SD Biafo IndustriesXD Clariant Pakistan Dawood Hercules
15.00 30.83 68.59 140.69 38.96
Volume Leaders MCB Bank Ltd Nishat Mills XD National Bank D.G.K.Cement Arif Habib
160.41 45.56 44.89 21.38 31.10
167.50 46.65 45.99 21.58 31.65
160.00 44.40 44.90 21.25 31.12
164.50 45.56 45.75 21.42 31.31
4.09 0.00 0.86 0.04 0.21
3,130,808 1,863,755 1,848,206 1,395,850 1,187,889
Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)
Per Tola (PKR) 57,322.00 51,608.00 1,102.00 1025.00
Per 10 Gm (PKR) 49,196.00 44,245.00 945.00 880.00
Per Ounce US$ 1,764.00 – 35.05 –
Interbank Rates US Dollar UK Pound Japanese Yen Euro
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
Al-Abbas Cement Attock CementXD Berger Paints Bestway Cement Cherat Cement
2.00 51.11 11.79 8.11 7.66
29.62 2.49 41.17 7.72 22.00
Buy 86.40 116.87 136.35 1.1028 84.03 10.85 23.33 22.85
Sell 87.00 118.78 138.47 1.1225 87.83 11.18 23.62 23.12
Brent Crude Oil
$113.71
6.93 184.30 28.50 7.00 108.00
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
58.00 169.52 117.00 2.63 168.53
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
Abdullah Shah Colony Sugar Mills Engro Foods Ltd. Habib Sugar Mills Habib-ADM Ltd.XD
8.00 1.75 23.52 28.10 11.58
8.00 1.75 23.90 28.50 11.70
7.90 184.30 28.50 6.90 108.00
6.93 184.30 28.25 6.25 102.60
58.00 170.00 118.00 2.79 169.99
0.00 0.00 -0.24 -0.30 0.00
10 90 5,055 5,004 2
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
109.00 111.18 145.05 145.58
0.69 -4.44
1,170 203
58.00 168.50 117.00 2.43 168.53
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
6.93 184.30 28.26 6.70 108.00
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
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
Beverages Murree Brewery Co. Shezan Int’l
vOLumE
Pharma and Bio Tech
Automobile and Parts Agriautos Indus.XD Atlas Battery Ltd. Atlas Honda Ltd. Dewan Motors Exide (PAK)
CHaNGE
Future Contracts
General Industrials Cherat PackagingXD ECOPACK Ltd Ghani Glass LtdXD MACPAC Films Merit Pack
LOw CurrENt
Personal Goods 40,885 8,285 3,035 25,300 63,850
Construction and Materials
Ados Pakistan AL-Ghazi Tractors Bolan CastingXD Ghandhara Ind. Hinopak Motor
International Oil Price WTI Crude Oil
$98.19
24.70 1.50 9.00 35.00 11.52
Industrial Engineering
86.6114 137.7988 1.1192 118.1207
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal
23.90 1.45 8.93 34.98 11.56
HIGH
Household Goods
Industrial metals and Mining Crescent Steel Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.
OPEN
Food Producers
Chemicals
Nestle PakistanSPOT 3161.93 UniLever Pak Ltd. 5624.93 Philip Morris Pak. 140.00 Agriautos Indus.XD 65.23 Pak Tobacco Co. 62.59
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 AL-Noor ModarXD 3.98 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
13.80 32.98 35.25 1.55 9.25 31.70 11.00 7.00 30.50 15.60 70.00 1.68 72.49 8.60 59.47 133.00 29.50 16.50 2.01 17.77 20.15 27.20 1.70 11.50
13.80 32.98 35.25 1.60 9.25 31.70 11.00 7.00 30.50 16.00 71.00 1.70 72.49 8.60 59.47 133.00 29.50 16.50 2.15 18.00 20.50 27.20 1.78 11.50
-0.06 0.91 -0.35 0.02 0.10 0.20 0.00 0.00 -0.50 0.00 1.06 0.00 0.19 -0.12 -3.12 -7.00 0.22 0.00 -0.07 0.34 0.31 1.14 0.04 -0.04
2,700 110 447 14,144 1,600 150 500 11 20 275 102 27,597 1 100 10,004 7 2,000 1,000 192 54,104 28,169 319 27,116 30,876
Miscellaneous Century Paper Pak Paper Prod. Security Paper Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd. Johnson & Philips Pakistan Cables P.N.S.C.XD Pak.Int.Con. SD TRG Pakistan Ltd. Murree BreweryXDXB Tariq GlassXD Pak Tobacco Co. Philip Morris Pak. Shifa Int.Hospitals Hum Network XD P.I.A.C.(A) Sui North GasXDXB Sui South GasXDXB AKD Capital Ltd.XD Pace (Pak) Ltd. Netsol Technologies
13.86 32.07 35.60 1.58 9.15 31.50 11.00 7.00 31.00 16.00 69.94 1.70 72.30 8.72 62.59 140.00 29.28 16.50 2.22 17.66 20.19 26.06 1.74 11.54
13.85 32.99 36.00 1.63 9.50 31.70 11.00 7.00 30.50 16.00 71.97 1.72 72.49 8.61 65.60 133.00 29.50 16.50 2.30 18.05 20.80 27.35 1.85 11.79
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
Layout Profit 7 pages_Layout 1 11/12/2011 10:11 PM Page 7
Saturday, 12 November, 2011
PNsC is not planning to get the loan of $40m from ECO because of the recent decline in the international shipping industry, and buying a vessel at this time would be a bad decision
news
07
Official sources
Cement manufacturers urge government to clear payments g
Government fails to give rs269.293 million claimed subsidy g Local consumption of cement remains stagnant KArAchI
a
STAFF REPORT
LL Pakistan Cement manufacturers association (aPCma) has strongly urged the government to clear payments of long-awaited inland freight subsidy claims and facilitate the industry in exporting cement as local consumption is stagnant and the industry is working under capacity leaving 12.796 million tonnes of installed production capacity unutilised. ADDRESSING CONCERNS: In a letter written to ministry of Finance, Chairman aPCma, aizaz mansoor Sheikh, recalled that cement makers had approached the government in 2009 to allow 50 per cent inland freight subsidy for export of cement by sea to boost cement exports as high inland freight cost of the units, located in the north, makes it impossible for them to compete in the international market for export of cement by sea. Chairman aPCma added that after a lapse of six months, Economic Coordination Committee (ECC) and trade Development authority Pakistan (tDaP) allowed inland freight subsidy at the rate of 35 per cent for cement exports by sea only for the period from march 26, 2010 to June 30, 2010. He said that cement industry after fulfilling all conditions, started filing claims for inland freight subsidy to tDaP and as of date, cement makers have filed claims to the tune of Rs269.293 million. unfortunately, he said, neither any cement maker has received claimed amount from the State Bank of Pakistan nor any intimation has been received from tDaP regarding approval of the said claims. It was also learnt that ministry of Finance has not released any funds yet for the claims, he added. UNUtILISED pRODUCtION CApACIty: aizaz further mentioned that cement production capacity in Pakistan is 44.217 million tonnes per annum, 80 per cent of this capacity is situated in the north and 20 per cent in the South of the country. During the year 2010-
2011, domestic demand for cement was a mere 22.002 million tonnes and exports were 9.419 million tonnes, thus leaving substantial production capacity unutilised, he added. He said that the reason behind allowing inland freight subsidy was to maximise cement exports via sea and facilitate the cement units located in the north zone in particular. keeping in view the inland freight subsidy facility, the cement makers had accepted export orders on the assumption that the freight claims would be honoured, he added. Chairman aPCma requested the Finance Secretary to intervene in the matter and issue instructions to ensure immediate clearance of long-awaited inland freight subsidy claims by the cement manufacturers. Delay in clearing legitimate claims of the cement industry is leading to colossal losses, he added. ExpORtS Of CEMENt: He pointed out that Pakistani cement is being exported to afghanistan and Central asian States at very competitive rates. However, he said, there is ample scope to increase exports through sea. Cement manufacturers could get export orders by sea, provided the issue of high inland freight cost from upcountry is addressed. He also requested the authorities that in order to encourage exports by sea, inland freight subsidy should also be extended to the current financial year as this will not only help to bring in precious foreign exchange but also assist the cement industry to overcome its present financial crisis. aPCma spokesman feared that the loss-making mills situated in the northern part of the country would not survive for long if they are not facilitated in increasing their exports. NON-RELEASE Of RS7 BILLION fUND fROM MOf: according to sources, despite the public announcement of various kinds of subsidies on the export of different items, the government has failed to pay billions of rupees to exporters due to non-release of funds from ministry of Finance (moF). though a large number of exporters have applied for the announced subsidies, aimed to promote the
country’s exports under ‘new trade Initiatives’ of tDaP, the authority has not paid a penny to the applicants for the last one year, sources told Profit. as the authority is yet to receive around Rs7 billion under export development fund from moF, it was not only unable to pay the subsidies under different heads to the exporters but also many projects like establishing warehouses and retail outlets abroad were also not being completed for lack of money, they added. Exporters from various sectors especially from pharmaceutical and cement industry have claimed millions of rupees worth subsidy from tDaP but the authority was yet to clear the declared dues to the respective sectors. NON-pAyMENt Of SUBSIDy: Despite the announcement of around 35 per cent of inland cost from the government, the payment of over Rs350 million was yet to be made as subsidy to the cement exporters for the last one year for unavailability of funds, they said. the authority had earlier announced 50 per cent subsidy to leather apparel exporters for on the floor expert advisory/ consultancy services, in February last year, while 25 per cent share in the cost of design studies in tanneries, announced in november 2009. through another category of subsidy, tDaP had also announced the 25 per cent freight subsidy on the export of live seafood, and markup subsidy for Cool Chain Projects, in October 2009. tDaP had also announced the 50 per cent sharing of cost on each Halal Certification and uL certification last year beside the 6 per cent support on the export of processed food in 2009. Besides, the authority has also announced inland freight subsidy a range of developmental products including Cement, Light Engineering, Leather garments, Furniture, Soda ash, Hydrogen Peroxide, Caustic Soda, Sanitary Wares including tiles, finished marble/cut to size marble blocks/ granite/onyx products. the authority had also announced one per cent adhoc Relief in June 2010.
Pak-uaE JmC ON OCt 15 at aBu DHaBI ISLAMABAD
F
JAlAlUddiN RUmi
InanCE minister Dr abdul Hafeez Shaikh would lead Pakistan’s delegation at abu-Dhabi in Pakistanunited arab Emirates (uaE) 10th round of Joint ministerial Conference (JmC) starting from tuesday next week. Delegates of both countries would review cooperation in areas of bilateral trade, banking and finance, investment, agriculture and livestock, energy and water, petroleum and natural resources, health, education, telecommunication and It, civil
aviation, sports and media. Both countries would also review the status of the $270 million grant announced by uaE in the tokyo donor Conference. Pakistan will also raise the issue of financing of Diamer-Bhasha hydropower project and kurram tangi Dam project with the counterparts of uaE. Pakistan would also discuss ratification of International Renewable Energy agency (IREna) agreement in the two-day JmC talks. In telecommunication and It sectors, transfer of 147 properties in the name of Etisalat and exemption of Pakistan International Communications from taxes worth 10 per cent on annual profits would
also be discussed. Both countries would discuss cooperation in the matters relating to visas, transfer of offenders, cooperation in the field of metrological and seismic, humanitarian and charitable assistance would also be reviewed in the 10th JmC meeting.uaE is at the top with $ 62.7 million in Julyaugust, the first quarter of current financial year while last year it invested $284.2 million in various sectors of Pakistan. uaE has also become the largest single source of foreign remittances through banking channels. uaE’s sustained official and private sector interest and growing FDI inflows, make it the 4th biggest
investor in Pakistan in several sectors; including telecom, airlines, banking, financial services, construction and real state. trade between the two countries is increasing and uaE has emerged as second largest destination of Pakistani exports. there is a significant increase since the beginning of 2006 and approximately a rise of eight per cent on average in exports in value terms on average is seen. Statistics show that from 2000-2001 to 2004-2005 bilateral trade grew at an annual average of $200-300 million. Exports experienced a constant growth during the last eight years and they rose from $626
kinnow export begins KArAchI
P
GHUlAm AbbAS
akIStan, which has fixed almost 0.3 million tonnes export of kinnow this year, has started exports as first consignment of 56 tonnes has been shipped to Dubai on Friday. the country is also ready to export almost 30,000 tonnes of kinnow to India if the non-tariff Barriers (ntBs) are removed in the neighbouring country under the claimed liberalised trade between the two South asian states. according to Waheed ahmed, Co Chairman, all Pakistan Fruit and Vegetable Exporters Importers and merchant association (PFVa) told Profit that two containers with almost 56 tonnes of kinnow were exported as the first consignment of export this year. this season’s targeted export is 0.3 million tonnes. though Iran, Indonesia, Russia, and middle Eastern countries are the main markets for Pakistani fruits, India could also become a huge market after the mFn grant to Delhi. Islamabad will also export almost 90000 tonnes of small sized kinnow to Russia where the fruit has a huge demand as the Russians have a fondness for the same brand of kinnow. Indonesia was also likely to be another important market for Pakistani kinnow as due to a healthier valuation of Pakistani kinnow. Even so, only 200 to 250 containers have been exported to the far-eastern country during last few years. But with the reduced value the export of fruit was expected to be around 56,000 tonnes with 2,000 fruit during the current season. For the enhanced export, Pakistani exporters are already negotiating with Indonesian buyers, Waheed claimed.
million to over $2 billion (20002001 to 2007-08). Pakistan’s main export products to uaE are rice, textiles, petroleum products, gold and jewellery, fruits and vegetables, meat and meat products, fish and fish products. united arab Emirates and Pakistan have signed five agreements in last JmC meeting in 2009 that includes establishment of a joint uaE-Pakistan Business Council, protocol on cooperation in media, cooperation in terrorism and organized crime, and cooperation in the field of culture. uaE has agreed to provide a $265 million soft loan for building mega dams in Pakistan. uaE is also organizing 7th Expo at karachi Expo Centre from 30th november to 2nd December the first ever uaE Expo in Pakistan. an agreement for the display centre in Sharjah will also be signed during uaE Expo in presence of commerce ministers of both countries. Investment and trade between the two countries are rapidly increasing since to boost official and private investment in Pakistan, including financing mega projects. these mega projects are estimated to cost $36 billion— a part of the financing for which Pakistan expects to come from uaE. uaE is now one of Pakistan’s biggest trading partners in the world. the two sides would also review the state of bilateral economic relations and agreed to further intensify their ties as there was a great potential to further enhance their trade relations. uaE wants to invest in agriculture especially in corporate farming from which it could secure its food needs and for this uaE is willing to invest in the building of mega dams in Pakistan.