E-paper Profit 14th -01-2012

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Samsung Galaxy SII versus the iPhone 4S Page 4-5 The alarm bells of China Page 3 WAPDA to deploy tunnel boring machines Page 7 Pages: 7

profit.com.pk

PAKISTAN

keen on enhancing trade with

SOUTH AFRICA LAHORE YASIR HABIB

overnment is at full stretch to deepen trade ties with South Africa, the rising star in global economy – especially when juxtaposed with other African countries. minister of State for Finance and economic Affairs has been asked to prepare a roadmap to increase trade volume between the two countries. PakistanSouth Africa trade currently stands at more than $450 million.

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SPECIAL FOCUS Sources in diplomatic circles revealed that government had special focus on South Africa while exploring new avenues of business opportunities, which could in return unleash a chain of investment in Pakistan. Sources said that development made headway into the directions issued by President Asif Ali Zardari during his interaction with then SA high commissioner mohammed rida el-Fassi at Aiwan-e-Sadr some months back. the meeting was also attended by 11 ambassadors and high commissioners of African countries. During the meeting, the president underlined need for enhancing trade relations with South Africa and other African countries to realise their real potential keeping in view the vast population of the African continent and the market opportunities avail-

able there.

SUGGESTIONS He also suggested creation of a small caucus representing African embassies in Islamabad and relevant officers of the ministries for suggesting ways and means to move forward on further improving trade and commercial ties. Leadership of various chamber of commerce and industries has also endorsed government’s action plan in South Africa. majority of them said that South Africa and other African countries could greatly benefit from Pakistan’s experience and expertise in the fields of infrastructure development, agriculture,

banking and information technology. they said Pakistan’s education sector, particularly professional institutes, provides excellent opportunities and venues to students belonging to the African countries to learn modern sciences and arts and that there is a need to strengthen and enhance existing exchanges in this area.

LCCI’S TOUR In another major development to solidify relations with South Africa, an 8member delegation of Lahore Chamber of Commerce and Industry (LCCI) made a successful business tour of South Africa in march, 2011 writing a new page in the

Saturday, 14 January, 2012 history of Pakistan's trade and economic relations with South Africa. the delegation came with a handful of business orders and signings of a number of memoranda of Understanding (moU). LCCI delegation, headed by then LCCI executive Committee member Dr Shahid raza, received a warm welcome by their counterparts and officials of Pakistani missions. In South Africa, LCCI delegation was given a detailed briefing by IntegriFin Business on launching business in Johannesburg. Business meetings with South African counterparts were held at the South African Chamber of Commerce and Industry and neren rau gave a presentation on investment opportunities in South Africa. LCCI delegates also had a meeting with South African counterparts at trade Commissioner's office at Johannesburg, while Pakistan's High Commissioner in Pretoria Zaigham Uddin Azam arranged a lunch where upcoming trade events in South Africa were discussed. Greater Boksburg Chamber of Commerce and Industry President Willi riedel gave a brief introduction about the chamber and discussed business opportunities in Boksburg, South Africa. moUs were signed between LCCI, eastern Cape Development Corporation and nelson mandela Bay Business Chamber to enhance trade relations. meetings took place with Cape town Chamber of Commerce vice President Hanns Bohle and Arifa Parker spoke on business opportunities. In UAe, moU was signed between LCCI and Pakistan Business Council Dubai, while orders worth more than rs10 million were received from different companies.

SEMINAR AT QAU meanwhile a seminar 'Pakistan South Africa relations: exploring opportunities for collaboration' unanimously was held at History Department of Quaid-i-Azam University in collaboration with QAU Alumni Association. the speakers agreed that both the nations need to work closely to strengthen economic, political, and social ties for the benefit of the two countries. While addressing the seminar, speakers said that South Africa and Pakistan established full diplomatic relations in 1994 and both countries joined other nations in pursuing a policy of peaceful co-existence and multilateral decision making and conflict resolution. He said both the countries are enjoying cordial bilateral relations that

offer an enormous potential for enhancing mutual annual trade volume more than 500 million. major items of exports from Pakistan to South Africa included cotton yarn, woven fabrics, leather, rice and textiles, they said.

REPORT & RECOMMENDATIONS on relation with South Africa and other African countries, Senate Foreign Affairs Committee documented a report that Pakistan and African countries have had close ties before and during the colonial days. Pakistan always morally supported South Africa and other African countries in their liberation struggles. the report said that a proactive policy would require interaction between the parliaments of Pakistan and South Africa coupled with constituting friendship groups for South Africa in the parliament. “moreover, Pakistan should pursue an aggressive economic diplomacy so as to reap the abundant financial benefits as well as investment opportunities that exist in South Africa, Pakistan Federation of Chambers of Commerce and Industry should penetrate the markets of South Africa and exploit the business opportunities that exist in those countries,” the report disclosed. “We should work together so that globalisation would not become a new colonialism in disguise. In this historic endeavour we must develop a common mechanism of self-help and mutual dependence, be they economic or political,” the report said. Document said that vision had been elaborated in the Declaration on the new Asian African Strategic Partnership signed in Bandung on April 24, 2005. In this document, that rededicates our adherence and commitment once more to the Bandung spirit of 1955, emphasis is put on continent –wide inter-regional cooperation between Asia and Africa. Furthermore, it is stated that cooperation between sub-regional organisations, through sharing experiences could propel growth and sustainable development. It recommended a number of steps to promote Pak-SA relations that include that regular exchange of visits among South Africa and Pakistani exhibitions and seminars on trade promotion should be encouraged. this will facilitate identification of areas where mutual trade and investments are feasible. Similarly, exchange of visits of the top executive functionaries usually has tremendous impact in cementing relations.

Minister to reveal LPG secrets in a close door meeting Senate body seeks complete data from petroleum ministry on LPG g

ISLAMABAD AMER SIAL

rILLeD by the Senate Standing Committee on Petroleum on LPG Policy 2011, perturbed Petroleum minister Dr Asim Hussain offered to bare all in a closed door meeting. the meeting of the committee was held under the chairmanship of Senator Sabir Ali Baloch. the committee had sought comprehensive briefing from the ministry on LPG Policy 2011 and pricing formula. the committee had also invited LPG producers to listen to their concerns on

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the pricing, levy and policy.

NOT SATISFIED the committee was not satisfied with the petroleum ministry’s claims that new LPG policy was required to end cartelisation and promote imports to end energy crisis. Senators kept asking the minister who was stopping implementation on policies. Briefing the committee, the minister said, “LPG imports were necessary as there was no more gas available which could be provided through pipeline. the only available option is LPG for which we are making efforts”. He said state owned Sui Southern Gas Company had bought ProGas terminal for LPG imports and have directed other public sector entities to reenter the LPG and extraction and marketing business but his efforts were being hindered. “I don’t want to name people but if you desire we should have a closed door meeting.”

HINDERING IMPLEMENTATION He said there were 11 local LPG pro-

ducers who had formed a cartel and were hindering implementation on the new policy. Local refineries produce 42 per cent, while 41 per cent is directly produced on the gas fields and 17 per cent by one extraction plant. He said due to cartelisation local production has declined from 1600 tonnes per day to 933 tonnes per day. He alleged that if any investor imported LPG the local producers reduced their prices to retain their hold. “We want all LPG to be bought by the government and then determine a price on its weighted average.”

WHERE’S THE PROOF? Safdar Ali Abbasi of PPP asked the minister to prove his claim by providing accurate data as the documents provided by the ministry did not contain any details. He said the policy was drafted without consulting the stakeholders. He said oGrA should be activated to check artificial price hike. Pervaiz rashid of PmL-n said government was attempting nationalisation of LPG sector that would not be allowed as it had miserably failed to operate railways, airlines

and steel mills. However, the minister said that he never used the word nationalisation and only said that the role of public sector must be encouraged to develop the sector.

WHY THE HIGH MARGINS? Senator Haroon Akhtar Khan of PmLLm asked why local producers were getting high margins, on which the minister said that the price was determined by them and there was no role of regulator. new policy was being brought to specifically address the issue and impose a levy on their windfall profits but the policy now stands suspended. the minister left the meeting after receiving a message from Prime minister for a meeting. Chairman Sabir Baloch said the minister and secretary had left the meeting and the committee should meet again to discuss the issue. However, Pervez rashid said the committee should listen to the point of view of private sector. Jehangir Bader said the chairman was not aware of the issue and was attempting to favour the minister. He said the ministry should provide complete

details to the committee on the basis of which they drafted the new policy.

WHAT’S STOPPING THE GOVT? Iqbal Z Ahmad of Associated Group challenged the minister’s statement and said that the public sector entities controlled 70 per cent share of locally produced LPG. What was stopping the government from acting against cartelisation? He said their image was being tarnished through statements and if the minister or ministry has any details on their malpractices it should be shared with the committee to ascertain the truth. He said the decision given by Competition Commission of Pakistan against LPG producers was dismissed in five minutes by the high court. He said previous chairman of CCP was prejudice against them and was not ready to listen to their argument. Senator Haroon Akhtar Khan said statements of the minister and stakeholders were entirely contradictory. He proposed that the ministry should present them complete data and details about LPG sector so that they could finalise their recommendations. the committee was adjourned to meet next week.


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Saturday, 14 January, 2012

news

APCNGA AGrees

to recommendations of CNG safety task force ISLAMABAD STAFF REPORT

LL Pakistan CnG Association (APCnGA) and regional transporters association have agreed in principle to recommendations of the task force for inspection of CnG vehicles and putting in place an enforcement mechanism. A statement issued by the petroleum ministry said the meeting was chaired by chairman of the task force. Joint secretary admin of the ministry was attended by the office bearers of APCnGA and the regional transporters association. they agreed in principle to recommendations of the task force for inspection of CnG vehicles and putting in place an

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enforcement mechanism. APCnGA assented to the proposal that rFID scanners would be installed at CnG stations for monitoring faulty cylinders and kits and they will identify 100 sites across Pakistan where the testing process would be started initially. Both the associations agreed that standard CnG equipment, testing procedures and testing fees would be charged so that CnG consumers are facilitated and their precious lives are saved. It was agreed upon that diploma holder and in case of shortage, tevtA trained personnel having at least five years experience would work at CnG stations to ensure safety regime. APCnGA assured that they will cooperate with oGrA, Chief Inspector explosives (CIe) and Hydrocarbon Development

of a committee consisting of oGrA, HDIP and CIe representatives. Cylinders’ placement and number of cylinders in public service vehicles would be decided by mutual consultation with three member team of oGrA, HDIP and CIe.

Institute of Pakistan (HDIP) team for on-spot checking. It was also agreed that rtA and mve shall not issue route permits fitness certificates for non-tested vehicles. It may be recalled that the task force has recommended that only uniform and approved testing equipment would be used for testing at public and private testing centers which would operate under government guidelines. Policy decisions, approvals and certification would be the joint responsibility

KARAcHI

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Fter indications that the political firefight enveloping the country was simmering down, investors

expressed their confidence in local equities to end the week on a bull run. Although the 32m share volume for the day leaves a lot to be desired, action in blue chip stocks was indeed a positive sign. not surprisingly, it was a run up in oGDC

and PPL that resulted in the index adding 105 points to end the week. oGDC, which closed up 1.9 per cent higher, accounted for 48 points in the daily gain. the positive sentiment was witnessed across the broad scope of the index as the fer-

Chairman National Tariff Commission visits Indus Motor Company

KARACHI: Prince Abbas Khan, Chairman national tariff Commission (ntC) visited Indus motor Company (ImC) on Friday. During the visit, he was given a detailed plant tour of manufacturing facilities wherein, he closely examined the plant followed by a presentation by ImC management and reviewed the company’s progress. He commended Indus motors and toyota motor Corporation for bringing the latest automotive technology to Pakistan and contributing towards its progress. PRESS RELEASE

Benazir Income Support Programme introduces system of ‘poverty scorecard’

Bulls return to Kse as index gains 105 pts

STAFF REPORT

CORPORATE CORNER

tiliser, banks, cement and e&P sectors ended in positive territory. While the session’s run up was a positive sign, the market remains highly susceptible to political triggers and long term stability is not guaranteed until the political skeletons that haunt us are buried once and for all, said Ali Hussain, Senior Investment Analyst at HmFS. the KSe 100 index closed at 11014.46 levels with the gain of 105.34 points, while KSe 30 index bagged 115.59 points to close at 10176.24 levels. All Share index closed at 7645.11 levels after gaining 69.97 points. total 147 scrips advanced 47 declined and 131 remain unchanged out of total 325 scrips traded.

ISLAMABAD: Benazir Income Support Programme (BISP) has recently come up with a system ‘poverty scorecard’ for the identification of beneficiary families. It is a scientific instrument and does not allow for any bias in the selection process. the independent experts have appreciated the fact that all data collected from the field is processed by nADrA without any involvement of BISP. Furthermore, two independent organisations randomly and regularly check the quality of survey and data processing while both have reposed confidence in these processes. PRESS RELEASE

Burj Bank, TPL Trakker Ltd sign MOU KARACHI: A memorandum of Understanding (moU) was signed between Burj Bank Limited and tPL trakker Ltd for the provision of vehicle tracking services on Burj Carsaaz Islamic auto finance product. moU was signed by mr Ahmed Khizer Khan President and Ceo, Burj Bank Limited and mr Ali Jameel Ceo, tPL trakker Limited. the occasion was also attended by senior officials of Burj Bank including mr taimur Afzal, Group Head – Consumer Banking, ms Zoya tazeen Jafarey, Group Head – Strategy and Sme, mr Sohail Sikandar, CFo, mr.Ihsan Ullah Ihsan, Chief risk officer, mr Akif Imitaz, Head Consumer Assets, mr Umair masoom, Head marketing Services and mr talha Hameed, Product manager. PRESS RELEASE

SHEEP opens its new store in Dolmen Mall KARACHI: SHeeP recently opened its new store in Dolmen mall. this launch marks the brands' second stand-alone store. the brand also recently launched four latest lines black sheep, a premium line of formal evening wear including cocktail tops as well as eastern wear; luxury prêt, a high end line for day wear; work-wear, for a line made specifically for working women for everyday wear. PRESS RELEASE

KARACHI: Mr Farrukh Ikram, CEO Millac Foods Pvt Ltd and Mr Nael Ahmed, Country Manager, Abu Dawood Trading Company, Pakistan at Millac Foods Pvt Ltd’s agreement signing ceremony with Abu Dawood Trading Company Pakistan for the national distribution of their brands namely, Millac, Comelle and Skimillac. PRESS RELEASE

LAHORE: Khawaja Ejaz Ahmed Sikka, CEO Birghto Paints alongwith, Khawaja Riaz Ahmed Sikka, Khawaja Khurrum Shahzad Sikka and Khawaja Atif Riaz Sikka stand with the new computerised ‘All Colour’ Paint Mixing System introduced by Brighto Paints to further the quality, leadership, technology and innovation. PRESS RELEASE


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saturday, 14 Januar y, 2012

eDITOrIAL

The alarm bells of C

WAPDA travails He Water and Power Development Authority has come down hard on the government for not being able to implement the crucial power sector reforms that are vital for overcoming the power shortfall of the country. As it is, the present government has faced a tough time, addressing the power crisis and adding to the bag of woes are the burgeoning circular debt liabilities that are crippling the power sector entities. What stands out is the fact that despite the government taking steps to increase the power tariff by almost a 100 per cent, they have not been able to narrow the gap between the revenue and cost of PePCo, which is not the only example of gross mismanagement. other such DISCo’s have also severely underperformed, with HeSCo, PeSCo, QeSCo, and mePCo compositely losing a gargantuan amount of rs90 billion per annum in the distribution system.

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With the government bent upon borrowing from the SBP to fulfill its budgetary needs and the crowding out of the private sector, the inefficiency of these distribution companies is like the final nail in the coffin, one that could severely compromise the standing of the democratically elected powers that be, if it hasn’t already been compromised. the inefficient utilisation of fuel worth rs11 billion will inevitably add to the import bill and with the rupee steadily declining, this situation definitely does not bode well for the economic managers as it will further stress an already strained current account. While losses in government owned enterprises has now become a norm, there is an urgent need to address the crisis by installing competent people at the helm of these entities without which, all efforts at power sector reforms will inevitably fall short of addressing the real problem at hand.

Basit rizvi He global economic recession as many are aware of, was brought about by two factors. Firstly, there was an unrealistic boom in real estate and secondly, there was rapid growth in credit creation, debt that was created without the means to back it. once the bubble burst, and a vacuum was created, that is where traditional economics failed to rescue the affectees from the rubble. there have been austerity measures, and other similar initiatives, that were high on rhetoric but low in effectiveness, and ultimately what we had was one very foul smelling broth. In the aftermath of the global economic meltdown, all eyes have been on China to be the dark horse, the vigilante that rescues the world from its problems, but China has been rather unwilling to don the superhero costume, to step in to the shoes of a saviour that everyone wants it to be. And there are reasons why China has hesitated to do so. Let us try to understand the following narrative. recent growth in China has relied mostly on the surging real estate prices and coupled with growth has been a rapid rise in credit, with the bulk of the steroids being pumped through ‘shadow banking’ devoid of government guarantees or supervision. However, slowly, like all bubbles this one too is bursting, and there are some strong reasons to smell economic pressures on the Chinese economy. What compels me to resort to this line of thinking is simple, while the Chinese economy was growing house-

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recent growth in China has relied mostly on the surging real estate prices European dilemma

Improving fish farming

this is with regards to the article, “two pronged european predicament” published yesterday. the view expressed in the article is indeed interesting and worth commending. my personal opinion is that the european problem showcases the sheer shortsightedness of the european leaders. every single leader is hankering after individual and self seeking safeguards, and no one is really bothered about the collective good of the entire continent. they might as well go their separate ways and stop dreaming about a united continent, since no one is exactly doing any effort for unity. A case in point: David Cameron; and his recent ‘holier than thou’ speech at Brussels.

this is with regards to the news report, “Fisheries department holds training course” published yesterday. the Punjab Fisheries Department is taking a lucrative step by holding the three-day training course for fish farmers. As the news report read, the course would include new farming techniques, which are in synchrony with the modern day techniques that are used around the globe; and hence our farmers would undoubtedly be aided via the course. I believe that all the fish farmers in our neck of the woods, especially the ones in Punjab, should avail this golden opportunity and attend the course. this would go a long way in helping their techniques and improving fishing techniques in Pakistan.

SAnIyA WASIM

ALI MuRAD

LAHORE

LAHORE

hold consumptions have somewhat lagged behind the overall growth in the economy. When looked at, consumer spending is roughly 35 per cent of the total GDP. one could begin to explain this phenomenon by stating that 1/3rd of the worlds savings originate from Asia, but despite that, this figure is quite low. Secondly, the bulk of Chinese goods are bought by the minions across the world. While the consumer spending of China declined, the country has largely relied on expanding exports to keep the manufacturing growth steady. the million dollar question however is that Chinese investment has soared to nearly half of the GDP. It’s a paradox to say the least, which then forces one to ask the obvious question. Despite consumer demand being relatively weak what fueled all the steroid injections in the Chinese economy. And the answer might just lie in the real estate bubble we talked about, earlier. the figures validate the narrative we are trying to establish here, since 2000, the real estate investment in China has doubled as a percentage of GDP that accounts for nearly half of the overall rise in investment. the rest was fueled by those corporations that were facilitating the growth of the real estate bubble. Skeptics would ask, how we could be so sure that it is indeed a real estate ‘bubble’. one can never say for sure, however in the last few years or so we have seen one too many a bubbles to not be able to distinguish one from the symptoms that it demonstrates. All the signs seem familiar, from the bubbles witnessed by economies across the world. And there are parallels to be drawn from the example of the US as well. After all the real estate and household bubble that gave rise to credit creation came from a shadow banking system in America. While hard data is never too revealing and thus even in America it was rather hard to predict the coming of the apocalypse, but the symptoms are there and one can hope that like many commentators say, the Chinese leadership is smart and strong enough to cope with the storm in the making. If the balloon bursts, the repercussions would be debilitating for the global economy particularly in the wake of the european debt crisis. The writer is a professional banker and financial commentator. He can be reached at rizvi_b@hotmail.com

The economic crystal ball

Muneeb Ibrahim He economic outlook for the world is pretty clear for 2012. It’s definitely clear; even if it isn’t quite so pretty. As I look deep into my crystal ball, vying to prognosticate the year, that is already well and truly on its way; there are quite a few aspects under the forecast gun that are going to be inevitable, some are debatable and others are mere hunches on my part. All the same, only time will tell about the authenticity of this little spherical crystal ball – metaphorical

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yes, but it encompasses more than its fair share of realism. the pictures on the surface simply read; european recession, insipid growth in the United States of America, and a precipitous slowdown in China and a multitude of emerging market economies. I can also see Asian economies being exposed to China – no big surprises there –, Latin America being exposed to lower commodity prices and Central and indeed eastern europe being exposed to the monster we call the eurozone. the volatility of the ever volatile middle east is resulting in gargantuan economic ramifications – all over the globe – and escalating oil prices are becoming a menace for all the stakeholders as well, thanks to our dear friend Iran. While the exact measurements might not be quite palpable in the crystal ball, there is not even the slightest of question marks over the inevitable

eurozone recession. US’s pedestrian growth might be further halted in the months to come; owing mostly to the fiscal drag, deleveraging in various sectors and political gridlocks. UK is double dipping; again with the same problem of insufficient growth. Japan is dealing with a change at the helm of government and in dire need of structural reforms. At the same time, the major chinks in the armour of Chinese economy are becoming all the more conspicuous. Its growth model is not quite the real deal that it was touted as in the past, falling property prices have a menace of their own and the construction boom looks like being decisively stalled. there is no doubt that the Chinese leaders have their work cut out. And they’re definitely not alone; with the US, europe and Japan as well finding themselves in a similar fix. Current-account imbalances be-

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

Predicting the economic ramifications in the current year, and the rationale behind the forecast

tween the US and China – among other emerging economies – and also within the eurozone jurisdiction, continue to remain large. to restore order, lower domestic demand in over-spreading countries with large deficits and lower trade surpluses and real currency appreciation is the need of the hour. to restore growth, nominal and authentic depreciation is needed to ameliorate trade balances among over-spending countries and surplus countries need to bolster the domestic demand. It goes without saying that the policy makers are short of new ideas – at least short of the ones that would border on being effective. experts say that currency devaluation is a zero-sum game,

and also that most of the countries don’t have the magical wand that would allow them to depreciate and improve exports at the same time. Fiscal policy is also restrained and in the political realm the G-20 has paved for the possibility of an ironical – yet actual – G-0. the restoration of growth is no mean task; and while with every difficult task comes the possibility for the leaders to make their mark, it would take a collective effort from the Who’s Who of global politics to ensure that things improve in 2012 – at least that’s what the crystal ball tells me. The writer is a freelance contributor and is currently working for Philip Morris, Pakistan

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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Saturday, 14 January, 2012

GALAXY S II, launched in 2011, set a new sales record for Samsung, generating a historical 10 million sales

news

04

Samsung Pakistan Managing Director, Mr Hee Chang yee

Samsung Galaxy SII versus the iP ALI RIzvI

SaMSUNG GaLaxy SII – THE BIG BaNG

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t’S ironic that Samsung decided to name their version of this energy packed android phone the Galaxy, since it somehow takes me to the big bang theory. Samsung with the advent of this product have finally breached that fine line of space-time continuum to create something truly spectacular, a galaxy that is outgrowing its own limits, an overdose of smartphone super-machine status. For me personally, not easily fascinated by the smell of capitalism and all its glitter and glamour, this phone did make me love the smell of a crisp and fresh Android morning. my apologies for getting carried away but despite being a boy from a modest background, working miserably day in day out to make a decent living in these recessionary times – certain capitalistic creations do capture my fancy. For instance, I feel adrenalin rushing through my veins when I catch a glimpse of the 512 break horse power Lamborghini Gallardo. In the world of smartphones, this is another such creation that has all the muscle and power to qualify as a muscle machine and that too, without having to compromise on luxury. this bright star by Samsung is one mean machine and despite their prior creations, this one does not want to share the spoils with the Samsung family too. With a spec sheet that will work the adrenalin within the tech geeks and tech rookie’s like me, this product by Samsung is a beast of a droid. the ultra slim body, that will remind you of a super model, to Samsung’s own exynos chipset, to the Super AmoLeD Plus screen, this product will make you re-evaluate your relationship with your girlfriend especially since this device will be in your control, unlike your better half.

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Quad-band GSm and quad-band 3G support 21 mbps HSDPA and 5.76 mbps HSUPA support 4.3” 16m-color Super AmoLeD Plus capacitive touchscreen of WvGA (480 x 800 pixel) resolution Android oS v2.3.3 with touchWiz 4 launcher 1.2 GHz dual-core Cortex-A9 CPU, mali400mP GPU, exynos chipset, 1GB of rAm 8 mP wide-angle lens autofocus camera with LeD flash, face, smile and blink detection 1080p HD video recording at 30fps Dual-band Wi-Fi 802.11 b, g and n support GPS with A-GPS connectivity; Digital compass 16/32GB internal storage, microSD slot Accelerometer, gyroscope and proximity sensor Standard 3.5 mm audio jack Charging mHL microUSB port with USB host and tv-out (1080p) support Stereo Bluetooth v3.0 Fm radio with rDS Great audio quality extremely slim waistline at only 8.5mm and low weight (116g) 2mP secondary video-call camera Full Flash support and GPU-acceleration for the web browser permit 1080p flash video playback nFC support (optional, not without a software update) Document editor File manager comes preinstalled the richest video format support we have seen

to 710 hours of stand by in 2G networks, with 8 hours 40 minutes of calls and 610 hours of standby on 3G my numbers weren’t as perfect as the ones tried and tested in a lab. In real life, as demonstrated through my use it was able to last roughly for around 2 days with moderate to heavy use (45 minutes of browsing, going through photo’s and using the rest of the phone features daily) In continuous video playback I was genuinely surprised to get 7 hours and 35 minutes of continuous SD video playback after which the battery reached 10 per cent. With the features packed in this product, this device does perform rather well and did not give me any problems when it came to multi tasking. the camera performance is better than some of the other phones I have used so this is rather an easy phone to recommend.

fINaL wOrDS ruthlessly powerful, having a unique one of a kind screen, that succeeds where previous dual core droids have failed. this phone very easily provides a satisfying and complete smartphone experience. Samsung somehow manages to make the monster of a smartphone feel comfortable with all the muscle packed inside this machine. As for the price in Pakistan, you will be able to find one online for rs52,000.

IPHONE 4S – a NEw wIfE THaT LOOKS LIKE yOUr Ex Deciding on a new wife that looks exactly like your ex but promises to have some more brains than the previous model, does seem to be promising albeit a risky bet, if the brain upgrades are not offsetting your feelings for your ex by the same proportion. A lot of people have asked me this question, and while it may be too early to judge a book by its cover if the two look exactly the same, let us dwell on the latest offering by Apple and how it compares to the Galaxy SII. As it is with all Apple fans, they just cannot resist the temptation of getting the latest offering by the brand, my boss being one of them. So, I am not in any way asking you to not listen to that inner voice that is compelling you to go for it, but maybe my review of the product will help you guide your decision. As far as the appearance goes, this one does look awfully similar to your ex save but one distinctive feature, it has a PhD degree in pleasing the Apple customer to the fullest. While it continues to be one of the best looking devices I’ve seen, the good looks hardly sheds light on the progress made on the inside of the machine. the 4S now joins the league of extraordinary dual core machines with power graphics, steroid injections to the imaging, 8 mP stills, 1080p recording and voice recognition that promises to show the rest of the voice recognition softwares in other phones a rude hand gesture. But, our aim is to help the reader decide which product he should ultimately go for, so let’s just move to a comparison between the two devices. All in all the iPhone 4S is a completely new phone wrapped inside a familiar look. Let us look at the specs before me move to the comparison.

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For the rookies, I’ll jump to my conclusion. Being the hardworking lad I am, one who cannot afford three expensive mobile phones that I decided to review this week, I talked to my friends three of whom were generous enough to lend me their cellphones for a week to draw some conclusions. As far as the looks are concerned, it took me a while to get my eyes off the beauty to be able to check the rest of the product, the size some may say is slightly big and I’d have to agree with them on that, but despite the size this machine does justify the price tag accompanied with the product.

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THE BaTTEry TIME

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As far as the battery time is concerned, despite the quoted 18 hours and 20 minutes of talk time and up

n n

ioS 5 with iCloud integration Quad-band GSm and quad-band 3G support with 14.4 mbps HSDPA and 5.76 mbps HSUPA Dual-band CDmA and CDmA2000 1xev-Do support 3.5” 16m-color LeD-backlit IPS tFt capacitive touchscreen of 640 x 960 px resolution Scratch-resistant glass front and rear, with fingerprint-resistant coating 1GHz dual-core Arm Cortex A9 CPU, Powervr SGX543mP2 GPU, Apple A5 SoC 512mB of rAm voice recognition, Siri virtual assistant 8 mP autofocus camera with LeD flash and touch focus 1080p video recording at 30fps Wi-Fi 802.11b/g/n, Wi-Fi hotpsot GPS with A-GPS connectivity; digital compass 16/32/64GB storage options Accelerometer, proximity sensor and a threeaxis gyro sensor Active noise cancellation with a dedicated secondary microphone Standard 3.5mm audio jack, stereo Bluetooth v4.0 excellent audio quality

Slim waistline at only 9.3mm Secondary front-facing vGA camera Built-in Picture and video editors rich AppStore new antenna design and improved signal reception in poor signal areas

As far as the design of the two products is concerned, it is all a matter of taste and preferences. Some people like big, heavy rugged devices while others prefer sleek and elegant ones. As for the Samsung, it’s hardly tiny but it is sleek at 8.49mm. As for the size, well if you want a big screen, then Samsung offers a 4.3 inch display. the iPhone is smaller than the Galaxy, but not as thin or sleek. In terms of looks though, I’d hand it down to the iPhone 4S.

higher resolution the old icons seem grainy on such a clear display. the winner though by a small margin, in this case is the iPhone.

PrOCESSOr When it comes to fast web browsing without delays, the Samsung Galaxy S2 has all the armour to provide you with one of the best browsing experience. Since 3G technology is not yet available in Pakistan, web browsing is also exceptionally fast on the traditional WiFi networks. With this product you won’t have to face any problems loading or playing heavy games. the iPhone is also very fast, much faster than its predecessor, the iPhone 4, however in this case it does yield to the superiority of Galaxy S2’s CPU in terms of performance.

DISPLay the Samsung has for a long time enjoyed having one of the best displays in the industry until the advent of the iPhone 4S. the Samsung Super AmoLeD Plus touchscreen offers 800 X 400 resolution, while the iPhone 4S offers 960 X 640. this however does not in any way imply that the Samsung screen is outdated or not good anymore. the Samsung offers beautiful colours that don’t fade when you look at the screen from an angle. Comparing with the iPhone though, the latter’s screen is even brighter mainly due to the higher resolution even though it fades slightly under direct sunlight. the only drawback with iPhone is that with the

CaMEra As far as the camera performance is concerned, the iPhone 4S’s 8mP camera also comes with a CmoS illuminated sensor which is 73 percent more effective and 30 per cent faster than before. It also shoots 1080p HD videos. the secondary camera of the Samsung at 2mp compared to the vGA iPhone camera is better than the latters, though that doesn’t play a big role here. It would be fair to call it a draw as far as the camera performance is concerned.


PDF Profit_Layout 1 1/14/2012 12:52 AM Page 5

Saturday, 14 January, 2012

news

05

Phone 4S – battle for supremacy Social media management strategy A

PLaTfOrM the gingerbread accompanied with the Samsung is one of the most popular software currently being used, however an update in the form of the Ice Cream Sandwich has arrived and Samsung has promised to offer this new update from the first quarter of 2012 in it’s phone. Since I haven’t used it, I am not in a position to comment. However, comparing the Gingerbread with the iPhone ioS software, the iPhone easily takes the win.

THE vErDICT Both the phones have their own niche and have areas where they outperform the other. At the end though, it will depend on the user. If you are an Apple enthusiast with the cash to spare then obviously the iPhone 4S is a great device to go by, however if you’re cash strapped and want to have a great smartphone experience, the Samsung Galaxy SII is the best choice on the shelf. Price: You will be able to find one for around rs68 to 70k online. The writer is News Editor, Profit. For comments and queries: ali.rizvi7957@gmail.com

nAqASH Butt

Distribution of Facebook users in Pakistan

customer posted a selfmade music video on You tube complaining about how United Airlines mishandled his guitar. there are over 5 million views of this video on You tube! A single bad experience magnified over social media can prove devastating. An international research reveals that 15 per cent of people share bad experiences that they had with organisations, via social media. Social media exponentially increases the reach of someone’s bad experience. Just imagine, the average Facebook user has 130 friends. moreover, about 75 per cent of people across UK and US who heard about bad experience via social media stopped doing business with or avoided doing business with the offending company. Social media is significantly influencing online users’ business behavior. this is another platform which, if managed well, can play a critical role in enhancing your organisation’s image which can translate into an increase in revenues. the time is not far when we will witness social media modeling buying patterns and business decisions of Pakistani consumers. there were only 133,900 internet users in Pakistan back in 2000 which were 0.1 per cent of total population. over the last decade the number has phenomenally grown to 18.5 million which is now 10.4 per cent of the current population. After the privatisation of PtCL the number of internet users grew quickly. Government and PtCL are planning to spread broadband networks in all corners of the country and even to the distant villages and towns. With such a rate of growth it is anticipated that the number of internet users in Pakistan are going to increase substantially in the next five years. With the incremental and steady growth of internet users, more people are inclined towards social networking, especially the young population of Pakistan. Facebook is no stranger to the People of Pakistan. Currently there are 5.8 million facebook users in Pakistan which makes it 26th in the ranking of all facebook users by Country. two million users from Pakistan joined Facebook in just the last 8 months which took the overall number to 5 million. Facebook has seen positive growth in Pakistan over last three years. twitter is said to have around 2 million users from Pakistan, while Google plus still being in beta, is nearing 10,000 users from Pakistan. All these facts and numbers tell us that Social media management must be an integral part of corporate strategies of organisations in Pakistan. Social media management goes beyond having just a fan page of your organisation in a social media site. Communicating with your fans regularly, keeping them engaged and focusing on growing the number of fans is all the more important now than ever before. Someone somewhere in the organisational hierarchy must be concerned about what people are saying in online communities about the organisation, its products, offerings, quality of service, pricing etc. this is like online impression management of your organisation. If your target consumer base is the young population of Pakistan then it is imperative for your organisation to have an effective social media management strategy in place because 51 per cent of 5 million Facebook users from Pakistan belong to 18-24 years of age group. So, How SHouLD oRgAnISAtIonS MAnAge SoCIAL MeDIA?: First step is social communities and blogs monitoring. Listening to your customers by tracking the online communities pages of your organisation or products etc., on a

25%

9% 6% 6%

51%

2% 1% 1%

daily basis and study important trends. Keeping a close eye on online growth of competitors and leading brands in different social communities is the next step. these powerful competitive insights will help you refine your social media strategy and keep you active in online communities. then you should identify the key influencers- your top fans! What excites them about your product or your organisation? What they like most about your page? Interacting closely with your fans will help you secure a huge success and popularity in social media. there are many types of softwares available in the market that can help you analyze and compare your social media activities and activities of

18-24

51%

25-34

25%

16-17

9%

35-44

6%

13-15

6%

45-54

2%

55-64

1%

65-0

1%

your competitors. Active social media monitoring and continuous strive to keep growing your online fans is ultimately going to benefit you and your business. Naqash Butt is Senior Manager Operations, Outsourcing Service line at AbacusConsulting


PDF Profit_Layout 1 1/14/2012 12:53 AM Page 6

Saturday, 14 January, 2012

06 Markets top 10 sectors

43% 04% 15% 09% 07%

Chemicals

01% 02% 05% 14% 01%

Non Life Insurance

Construction & Materials electricity Banks

Fixed Line Telecommunication

Oil & Gas

Financial services

Personal Goods

support services

top 5 perForMers sector wise SyMBOL

OPEN

HIGH

LOw CUrrENT

425.90 108.70 23.00 6.80 86.00

405.00 107.00 22.50 6.70 85.00

CHaNGE

vOLUME

Oil and Gas Attock Petroleum Attock refinery Burshane LPG Byco Petroleum Mari Gas Co.

STOCK MARKET HIGHLIGHTS Index 11014.46 2899.77 2374.06

Kse-100 Lse-25 Ise-10

Change +105.34 +37.5 21.91

Volume 28,073,863 593,405 11,892

Agritech Limited Arif Habib Co sD Clariant Pakistan Dawood Hercules Descon Chemical

Open 2405.00 379.43 364.50 412.08 139.73

High 2525.00 398.40 380.99 425.90 144.99

Low 2519.00 360.46 363.20 405.00 138.30

Close 2502.67 398.40 376.76 419.52 141.65

Change 97.67 18.97 12.26 7.44 1.92

Turnover 7 232 18,674 75,119 3,000

Major Losers Nestle PakistanXD Ismail Industr Pak Tobacco Co. Premier suger Mills Packages Limited

2861.60 74.83 52.41 42.81 79.98

2900.00 71.09 53.99 44.94 80.00

2840.00 71.09 50.01 40.68 78.00

2805.03 74.83 52.41 44.72 78.50

-56.57 0.00 0.00 1.91 -1.48

30 100 8 528 450

Volume Leaders Jah.sidd. Co. Fauji Fert Fatima Fert.Co. Fauji Fertilizer National Bank

4.07 43.29 22.96 160.71 41.81

4.45 43.98 23.15 164.28 42.65

4.10 43.30 22.80 160.50 41.80

4.27 43.58 22.87 162.57 42.29

0.20 0.29 -0.09 1.86 0.48

3,156,826 2,284,785 2,199,591 2,013,297 1,808,357

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

Per Tola (PKr) 55,573.00 51,608.00 1,010.00 1025.00

Per 10 Gm (PKr) 47,696.00 44,245.00 867.00 880.00

Per Ounce Us$ 1,642.00 – 35.05 –

Crescent steel Dost steels Ltd. Huffaz seamless Pipe Int. Ind.Ltd. Inter.steel Ltd.

18.13 1.12 8.49 31.02 10.00

2.41 52.95 1.70 13.50 9.00

14.85 27.85 151.00 36.49 1.65

14.85 26.96 150.50 35.25 1.55

15.50 27.59 151.00 35.59 1.55

0.00 0.69 0.46 0.02 0.00

100 1,345,560 1,600 99,141 16

18.90 1.18 9.49 31.60 10.40

18.00 1.10 8.20 31.16 10.05

18.86 1.16 9.49 31.60 10.30

0.73 0.04 1.00 0.58 0.30

25.75 3.80 40.10 8.21 79.98

5.30 170.64 0.61 6.58 66.91

Atlas Battery Ltd. Atlas engineering Bal.Wheels Dewan Motors exide (PAK)

163.00 58.00 26.12 1.91 162.25

vOLUME

Adam sugar Baba Farid Bawany sugar Colony sugar Mills Dewan sugar

18.55 39.00 13.01 1.30 1.70

18.75 39.00 13.90 1.60 1.70

2.70 52.45 2.00 13.85 9.05

2.50 51.55 1.80 13.31 9.02

2.50 52.00 1.83 13.51 9.04

0.09 -0.95 0.13 0.01 0.04

26.96 4.39 40.44 9.09 80.00

25.65 3.66 38.10 7.61 78.00

5.10 179.17 0.70 6.69 66.91

5.10 172.00 0.70 6.13 66.91

164.50 58.00 26.62 1.95 166.00

163.00 58.00 26.62 1.90 164.00

521 743 5,174 1,742 800

18.30 39.00 13.01 1.44 1.70

-0.25 0.00 0.00 0.14 0.00

3,107 78 103 1,027 5,000

8.20 3.00 3.61 15.94 8.09

7.20 3.00 3.79 14.94 8.85

7.20 2.70 3.55 14.94 8.01

8.20 3.00 3.62 15.94 8.50

0.00 0.00 0.01 0.00 0.41

10 2 126,132 10 20,193

(Colony) Thal Ali Asghar Textile Amtex Limited Artistic Denim Mills Azam Textile

1.22 0.45 1.28 22.50 1.34

1.50 0.85 1.35 23.50 2.34

1.50 0.60 1.25 22.50 1.17

1.50 0.77 1.33 22.93 1.99

0.28 0.32 0.05 0.43 0.65

618 1,205 29,431 3,282 5,051

AHCL-JAN ATrL-JAN DGKC-JAN eNGrO-JAN FFBL-JAN

27.06 107.24 19.50 94.90 43.47

27.99 109.09 20.20 97.00 44.15

27.10 108.02 19.70 94.85 43.60

27.68 108.33 20.00 95.77 43.77

0.62 1.09 0.50 0.87 0.30

83,500 106,500 124,000 487,000 505,000

73.62 66.08 29.00 16.00 32.50

0.00 0.00 0.00 0.57 -0.30

200 250 110 11,620 500

Pharma and Bio Tech 26.17 4.01 39.64 8.21 78.50

0.42 0.21 -0.46 0.00 -1.48

5,210 9,871 3,852 12 450

5.10 172.52 0.72 6.58 66.91

163.14 58.00 26.12 1.91 165.58

109.00 111.18 145.05 145.58

Ferozsons (Lab) Ltd. GlaxosmithKline Pak. Highnoon (Lab) IBL HealthCare Otsuka Pak

73.62 66.08 29.00 15.43 32.80

75.00 66.90 29.50 16.38 32.50

74.50 65.60 29.01 14.76 32.50

Fixed Line Telecommunication -0.20 1.88 0.11 0.00 0.00

1,000 296 700 4 6

0.14 0.00 0.00 0.00 3.33

490 11,360 8 13,000 562

0.69 -4.44

1,170 203

Beverages 110.49 111.43 150.02 150.00

Diamond Ind. Hussain Industries Pak elektron Ltd. singer Pakistan Tariq Glass Ind.

P.T.C.L.A Pak Datacom Ltd Telecard Limited Wateen Telecom Ltd WorldCall Telecom

10.18 33.75 0.77 1.70 1.01

10.26 35.00 0.81 1.89 1.09

10.10 34.00 0.76 1.71 1.00

10.25 34.94 0.81 1.72 1.03

0.07 1.19 0.04 0.02 0.02

1,042,499 530 231,895 10,246 417,075

0.35 33.50 0.61 1.76 1.80

0.39 34.20 0.70 1.83 1.80

0.26 33.50 0.58 1.71 1.30

0.34 33.98 0.67 1.76 1.80

-0.01 0.48 0.06 0.00 0.00

9,404 769,204 71,106 127,729 126

54.60 10.06 5.51 11.19 28.85

56.48 10.28 5.70 11.39 29.24

54.01 10.00 5.51 11.22 28.82

55.41 10.20 5.60 11.35 28.91

0.81 0.14 0.09 0.16 0.06

27,325 92,185 276,428 288,386 9,930

Electricity Genertech Hub Power Co. Japan Power K.e.s.C. Kohinoor Power

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 18.16 37.05 13.50 1.27 1.70

Future Contracts

Industrial Engineering Ados Pakistan AL-Ghazi TractorsXD Dewan Auto engg Ghandhara Ind. Hinopak Motor

CHaNGE

Personal Goods 3,689 8,139 230,473 2,586 1,505

General Industrials Cherat Packaging eCOPACK Ltd Ghani Glass Ltd MACPAC Films Packages Limited

LOw CUrrENT

Household Goods

Construction and Materials Al-Abbas Cement Attock Cement Bal.Glass Berger Paints Cherat Cement

HIGH

Adamjee Ins Atlas Insurance Century Insurance Cres.star Insurance Habib Insurance

46.62 36.25 6.99 2.00 10.00

47.80 36.25 6.99 3.00 10.35

46.52 35.75 6.99 2.00 10.30

47.00 36.12 6.99 2.00 10.30

0.38 -0.13 0.00 0.00 0.30

3,846 974 800 215 2,533

13.50 1.40 65.53

14.50 1.40 65.53

0.00 0.00 0.00

2 1 157

0.38 14.36 14.41 0.65 0.95

0.00 0.00 0.11 0.00 0.30

409 10 2,799 1 6,17

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 Investmen Arif Habib Ltd. Dawood Cap.Man XB Dawood equities

0.38 14.36 14.30 0.65 0.65

0.38 15.20 15.00 0.60 0.98

0.30 15.20 14.02 0.60 0.65

Equity Investment Instruments Allied rental Mod Atlas Fund of Fund B.F.Modaraba B.r.r.Guardian Cres. stand.Mod

22.45 5.50 3.80 2.40 0.54

22.00 5.30 4.00 2.48 0.74

22.00 5.30 3.99 2.26 0.47

22.00 5.30 4.00 2.48 0.52

-0.45 -0.20 0.20 0.08 -0.02

500 500 17,310 1,500 11,647

12.50 6.00 11.76 70.10 1.20 64.75 110.00 23.00 50.01 13.39 498.12 1.85 15.80 18.40 14.00 1.45 23.26 1.23 8.40 2.50

13.07 6.01 11.82 70.48 1.24 64.87 110.07 23.33 52.41 12.40 524.33 2.01 15.95 18.65 13.83 1.09 22.17 1.30 8.64 2.50

0.27 -0.99 -0.18 0.00 0.04 0.12 0.00 0.75 0.00 0.00 0.00 0.02 0.20 0.10 0.00 0.00 0.00 0.00 0.24 0.00

1,213 997 8,456 22 572,613 1,626 28 1,500 8 1 1 23,331 10,522 143,197 2 1 86 12,256 97,682 159

Miscellaneous Century Paper Johnson & Philips P.N.s.C. Pak.Int.Con. sD TrG Pakistan Ltd. Murree Brewery shezan Inter. Grays of Cambridge Pak Tobacco Co. Media Times Ltd Dreamworld P.I.A.C.(A) sui North Gas sui south Gas American Life east West Life Assur AKD Capital Ltd. Pace (Pak) Ltd. Netsol Technologies Pak Telephone

12.80 7.00 12.00 70.48 1.20 64.75 110.07 22.58 52.41 12.40 524.33 1.99 15.75 18.55 13.83 1.09 22.17 1.30 8.40 2.50

13.50 7.95 12.89 70.50 1.28 65.50 110.00 23.50 53.99 13.39 524.33 2.10 15.97 18.75 14.00 1.45 23.27 1.44 8.68 3.37

Mutual Funds Buy 91.00 115.25 138.52 1.1744 88.48 11.53 24.68 24.18 93.05

International Oil Price WTI Crude Oil

$98.89

75,119 632,917 500 62,155 4,075

Industrial metals and Mining

Murree Brewery Co. shezan Int’l

90.2759 138.5194 1.1772 115.8240

Us Dollar euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAe Dirham saudi riyal Australian Dollar

7.44 1.01 0.10 0.10 0.66

Automobile and Parts

Interbank Rates Us Dollar UK Pound Japanese Yen euro

15.50 26.90 150.54 35.57 1.55

OPEN

Food Producers 419.52 107.79 22.60 6.80 85.75

Chemicals

Market Value 1,687,421,830 20,356,168 1,182,923

Major Gainers Company rafhan Product Indus Dyeing Millat Tractors Ltd. Attock Petroleum sanofi-Aventis

412.08 106.78 22.50 6.70 85.09

SyMBOL

sell 91.50 117.46 140.83 1.1904 91.21 11.82 24.99 24.46 96.11

Brent Crude Oil

$111.26

fund

Offer

repurchase

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 Crosby Phoenix Fund Dawood Islamic Fund Faysal Income & Growth Fund Faysal Islamic savings Growth Fund Faysal Money Market Fund Faysal savings Growth Fund First Habib Cash Fund First Habib Income Fund First Habib stock Fund HBL Income Fund HBL Islamic Money Market Fund HBL Islamic stock Fund

501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800 102.5100 0.0000 103.9600 101.4000 101.1400 101.4400 100.8800 100.8900 101.4400 98.8551 100.2278 105.1082

501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473

Nav 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500 102.5100 0.0000 102.9300 101.4000 101.1400 101.4400 100.8800 100.8900 99.4500 98.8551 100.2278 103.0473

fund

Offer

repurchase

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 Lakson Income Fund MCB Cash Management Optimizer Fund MCB Dynamic Cash Fund MCB Dynamic stock Fund NAMCO Income Fund National Investment Unit Trust PICIC Income Fund UBL Capital Protected Fund II UBL Islamic savings Fund UBL savings Income Fund

100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000 106.3763 102.2115 100.5994 103.2259 83.2931 108.2753 26.55 101.3261 106.7800 100.4576 101.9855

100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000 103.2779 100.7009 100.5994 101.6775 83.2931 108.2753 25.74 101.3261 101.4400 100.4576 100.9757

Nav 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087 103.2779 100.7009 100.5994 101.6775 85.4288 108.2753 25.74 101.3261 106.7800 100.4576 100.9757


PDF Profit_Layout 1 1/14/2012 12:53 AM Page 7

Friday, 13 January, 2012

Pakistan has benefited from initiatives such as the deregulation of international gateways and mobile number portability, which helped grow teledensity

news

07 WAPDA to deploy tunnel boring machines t

warid Telecom CEO, Muneer farooqui

Energy Task force evolves consensus against gas demand curtailment

LAHORE

P

STAFF REPORT

AKIStAn Water and Power Development Authority (WAPDA) is deploying two state-of-the-art tunnel boring machines (tBms) at a cost of rs8 billion on the strategically important 969 mW-neelum Jhelum Hydropower Project. this will reduce construction period of the project by about 18 months, resulting in an estimated benefit of rs.60 billion. the two Germanmanufactured tBms, being imported by the contractor, are expected to reach Pakistan by the end of this month. WAPDA Chairman Shakil Durrani stated this while briefing Azad Jammu & Kashmir (AJK) Prime minister Chaudhry Abdul majeed, and Planning Commission Deputy Chairman Dr nadeem-ul-Haq during their visit to various components of neelum Jhelum Hydropower

Ground breaking of rs 24.9 billion M-9 project next month ISLAMABAD

t

30 per cent. Some 18.5-kilometer long tunnels and adits have so far been excavated; while the crucial diversion tunnel to divert the river neelum has also been completed in october last year in record time of two years. He said construction work on all the three sites is in full swing. He added that work on powerhouse is heading as per schedule, while work on transformer hall is ahead of schedule. He also explained reasons behind cost escalation of the project. neelum Jhelum Consultants Project manager Christiaan Groskoff, briefing the visitors said that redesigning of the project in the wake of devastating earthquake of 2005, delay in acquisition of land and unstable supply of electricity have been the major challenges for the project. muzaffarabad Commissioner Zafar Khan assured the project authorities that the crucial piece of land measuring 16 kanals and 6 marlas will be handed over to WAPDA within a week.

Gross Refinery Margins down by 7pc in January KARAcHI

STAFF REPORT

He ground breaking of rs24.9 billion worth motorway, m-9, between Karachi and Hyderabad would be performed in the end of February and the government plans to complete the six lane highway within one year. Finance minister Dr Abdul Hafeez Shaikh chaired a meeting to review progress on the initiation of m-9. the meeting was informed that this project covers the conversion of existing 4-lane highway into 6-lane through addition of 1-lane at both sides of the road. the project also includes the improvement of existing 2lanes of the rood. Finance minister stressed that transparency must be ensured in the execution of the project and construction period should be reduced from 30 months to 12 months. Advisor IPDF, Deputy Chairman Planning Commission, Special Secretary Finance, Secretary Communications, Chairman nHA and other senior officials attended the meeting.

Project including underground powerhouse, weir site, diversion tunnel, de-sander and main tunnels, etc. Federal Secretary Planning Asif Bajwa, AJK Chief Secretary muhammad Shahzad Arbab, Planning Commission member energy Shahid Sattar, WAPDA member (Water) Syed raghib Abbas Shah, member (Power) muhammad Qasim Khan and senior officers concerned were also present during the visit. Speaking on the occasion, WAPDA Chairman said neelum Jhelum Hydropower Project, scheduled to be completed in 2016, will provide about 5.15 billion units of electricity annually to the national grid. He further said annual benefits of the project have been estimated at rs45 billion, adding that the project will pay back its cost in about seven years. earlier, neelum Jhelum Hydropower Project Chief executive officer Lt Gen (retd) muhammad Zubair, during the briefing, said that overall progress on the project stands at

t

STAFF REPORT

HoUGH Arab light crude oil prices remained firm during the month of January (2012) against the previous month (December 2011), the middle distillate prices, except naptha, declined in the range of 45 per cent, rendering into decline in the middle distillate crack spreads. the said price trend is estimated to reduce domestic gross refinery margins (Grms) by seven per cent in January to $1.6 per barrel as against $1.7 per barrel last month, said a topline research. “With reduce spreads and regulatory risk that heightens after the escalation oil prices we hold ‘market-weight’ stance on the Pakistan refinery sector,” viewed nauman Khan, an analyst at the topline Securities. the product-wise negative spread on naphtha, he said, was expected to be reduced to (-ve) $5.5 per

barrel as against $7 per barrel last month; while spread on HSFo could widened to (-ve) $11 as against $8 per barrel last month. In the superior product category, HSD and Kero spreads are estimated to decline to $10 per barrel previously from $16 per barrel while mS spreads are expected to dip into negative as against positive $1 per barrel last month. the company-wise Grms suggest that AtrL on account of higher weight-age of superior products (mS and HSD) in its product mix continue to lead the pack with company’s estimated Grms standing to the tune of $2.3 per barrel, down nine per cent from $2.6 per barrel last month. Amongst other listed companies, nrL’s Grms is likely to decline by five per cent to $0.6 per barrel while PrL and BYCo Grms are estimated to stand around $0.9 and $1.0 per barrel, down 17 per cent and 11 per cent respectively. With firm oil prices and their implications on domestic political and economic scenario, we believe

the inherent regulatory risk associated with the reduction in deemed duty on HSD comes into lime light. Under the prevalent scheme 7.5 per cent custom duty is charged on imports of HSD, which in turn is providing a profitability cushion from domestic refineries. In recent price revision, deemed duty is currently hovering around $9.5 per barrel in absolute terms while current levels of international HSD prices could push the same above $10 per barrel in the upcoming February price revision. this in turn could bring to life the deemed duty saga which we witnessed in the early part of the year. Being the jugular vein of refinery sector profitability the reduction in the deemed duty from current levels could adversely affect refinery sector’s profitability. As per our estimates 2.5 per cent decline in the deemed duty would reduce AtrL and nrL’s (companies under our coverage) annual earning by rs6 and rs11 per share, respectively.

LAHORE STAFF REPORT

He very first meeting of Special task Force on energy has evolved a consensus against curtailment of gas demand to any consumer while focusing on supply side management solutions for January 18 meeting of the federal Cabinet. Chairman Special task Force on energy Gohar ejaz met Friday industry captains including Fawwad mukhtar, Shahid Abdullah, Amir Fayyaz, Ahsan Bashir, Shahzad Khan, Seth Akbar and Anjum nisar besides representatives from Karachi and other parts of country through video conference at APtmA Punjab office. Gohar said industry stakeholders have faced gas curtailment for 172 days on an average during 2011 and it is likely to be curtailed throughout the year ahead in case no short and long term solutions are chalked out as a way forward. He said supply side issue has not been addressed during last four years. He said fresh discoveries have not been encouraged, as Pakistan was offering $2.5 to $4 on exploring new discoveries against $14 internationally. Also, he said, no serious effort has been made to revive dormant gas fields and price rationalisation well in time. According to him, the task force has deliberated upon creating supplies both domestically and through imports, putting in place infrastructure to connect remote areas with Karachi port and brining dormant fields into operation. He said the industry has come forward to play a role in managing gas shortage on the premise that Pakistan would suffer ultimately. He said 10 million workers are on the brink of unemployment, trade deficit is on the rise, current account deficit is high and industrial bankruptcies are hitting through the roof. therefore, the industry captains have got together to suggest solutions to the government. He said government has already towed APtmA proposals by passing laws on gas theft and infrastructure development surcharge. He said Article 158 of the Constitution has put Punjab in problem but other provinces would also face similar situation in case no sensible approach is adopted on gas utilisation.

SBP pumps over rs218 billion into banking system KARAcHI STAFF REPORT

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entrAL bank on Friday injected rs218.100 billion into the currency market where much of the liquidity is being gulped by the cash-strapped government to cater its massive and ever-increasing budgetary borrowings. During first half of the current fiscal year, July-Dec FY12, the resource constrained federal and provincial governments borrowed over rs818.91 billion from central and commercial banks against rs285.951 billion they had raised during the corresponding period last year. of the total borrowed amount, government borrowed a huge sum of rs668.137 billion from the scheduled banks, while rs150.773 billion were taken from State Bank. this massive government borrowing spree renders the money market without liquidity, a problem that is taken care of by the regulators in central bank through money injections.Friday saw the State Bank conducting its reverse repo operation in the market treasury Bills and Pakistan Investment Bonds to pump over rs218 billion into the system at an annual rate of return of 11.58 per cent.

CM reiterates IT importance LAHORE

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STAFF REPORT

UnJAB Chief minister muhammad Shahbaz Sharif has said promotion of information technology is vital for rapid development, therefore, all out resources would be provided for the development of this sector in the province. He disclosed that 125,000 laptops would be distributed among talented students this year while 300,000 to 500,000 laptops next year. Chief minister announced that an information technology university would be set up on a floor of Lahore technology Park Ferozpur road. He was addressing a bloggers seminar organised in collaboration with Punjab Information technology Board, Google and P@sha, here today.

Chairman Punjab Information technology Board Dr Umar Saif, Country Consultant Google Pakistan Badar Khushnood, President Pakistan Software Houses Association Jahan Ara, people associated with information technology sector and a large number of Bloggers attended the seminar. Addressing the seminar, muhammad Shahbaz Sharif said Pakistani nation is second to none in abilities and Pakistanis have made a name in every sector. He said expatriate Pakistanis have proved their mettle in information technology, health and other sectors. He said that time has come that we should build our capacity in every sector and utilise all our energies to make Pakistan a great country by learning a lesson from our previous mistakes. He said at present India has a major share in business of

information technology whereas Pakistan’s share in this sector is negligible. He said we have to adopt information technology to ensure progress in all sectors. He said Punjab government is pursuing a comprehensive programme for promotion of information technology. He said It labs have been set up in more than four thousand schools and a research center has also been established in murree. He said thousands of students are benefiting from the It labs. He said Punjab government is jointly working with microsoft Company for promotion of information technology. He said planning has also been made for setting up Knowledge City on Lahore ring road. He said there is no dearth of talent in Pakistan. He urged upon the youths to come forward and bring Pakistan at par with modern world by

equipping themselves with latest knowledge. Chief minister said corruption is rampant in the country and national resources are being plundered ruthlessly. He said those who looted national resources are enjoying power with the medals of corruption. He urged that collective efforts should be made for purging the society of corruption. He said 18 crore people have right over resources of Pakistan and not a handful of elite. Sharif said we are taking steps to include the deprived segments of society into national mainstream. He said we would have to develop indigenous resources to achieve the goal of self sufficiency. He reiterated that loans worth billions of dollars were obtained during last 64 years but destiny of the country could not be changed. He said we would have to

renounce the charity of Aaghiyar and develop our own resources. He added that quality education is not the right of elite only but it is right of every Pakistani. He told that Daanish Schools have been set up in far-flung and backward areas for this purpose where free educational facilities have been provided to the children from the lower echelons of the fiscal scale. He disclosed that one thousand centers of excellence are also being set up with billion of rupees throughout the province. Chairman Punjab Information technology Board Dr Umar Saif threw light on the steps taken with regards to promotion of It in the province. Chief minister gave detailed answers to the questions of the students. Later, he also distributed shields among It professionals and bloggers.


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