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Auction of 3G spectrum must be transparent, says Gilani
MoI proposes 239 tariff lines for negative trade list with India LAHORE IMRAN ADNAN
ISLAMABAD NNI
Prime Minister Syed Yusuf Raza Gilani presided over a meeting of Auction Supervisory Committee (ASC) regarding auction of 3G spectrum and directed the proposed auction must ensure transparency; professionalism and due validation and should be completed within the permissible time. Gilani said introduction of the new technology in the telecom sector should enhance outreach of the connectivity facilities at an affordable price to the consumers. In the meeting, the progress regarding the auction of the 3G spectrum was discussed in detail and it was emphasised that the due bidding should take precedence over all other considerations which are in the interest of all the stakeholders. In the meeting, the process conducted up till now was appreciated for the professionalism and Pakistan Telecommunication Authority (PTA) was asked to hire services of the internationally reputed consultant to assist in the transaction process. The meeting was attended by Dr Abdul Hafeez Sheikh, advisor to the Prime Minister on Finance, Mr Rehman Malik, Minister for Interior, Dr Asim Hussain, Advisor to Prime Minister on Petroleum and Natural Resources, Syed Naveed Qamar, Minister for Water and Power, Secretary IT, Secretary Finance, Deputy Chairman Planning Commission, and representatives of telecom, PTA and FAB.
Saturday, 25 February, 2012
Ministry of Industry (MoI) has proposed 239 tariff lines to be included in the negative list for trade with India, Profit has learnt. An official document made available to Profit shows the ministry has proposed 12 items from the ceramics sector; four from chemicals, six from cutlery, 11 from domestic appliance, five from jewellery, six from aluminium, nine from paper and paper board, two from plastics, 98 from iron and steel, seven from surgical, 21 from sport goods, 36 from auto sector, 13 from electrical, six from glass, one from footwear and two from machinery, equipment and spare parts, which will be included in the negative list. MoI has recommended 72 tariff lines should be excluded as they have been represented in the SAFTA sensitive list as five are banned in Import Policy Order (IPO) and few of them are not manufactured locally which is why it is not meaningful to include them again. The ministry is of the view that it is fully cognisant of the multiple benefit implicit in liberalisation, however, in order for such measures to succeed from the point of view of promoting the growth of Pakistan’s economy per second increasing over dwindling employment rate, complimentary measures in terms of assure supply of energy and markup at par with regional neighbours is a sine qua non. The industry needs a level playing field, consistency and complementarities in all policies to gain multiplier gains from trade openings. The negative 636 items prepared by Ministry of Com-
merce (MoC) has been examined and observations/suggestions are proposed on the basis of parameters. MoC list also contains 77 tariff lines and 16 agriculture tariff lines, which were not considered by MoI and they remained the same. MoI has adopted criteria for negative list which included industry response (input), Pakistan Global Imports, and Indian Global Exports for making the tariff lines. The tariff lines that are included in SAFTA Sensitive List will only be recommended for the negative list for the very sensitive emerging sectors. The items having five per cent tariff have generally not been included as the industry has requested to allow the raw material to be imported from India to cut down on inputs costs. Similarly, Ministry of Production (MoP) raises its concerns with ceramics, steel and iron for attention of items in the negative list and to phase out in the next five years. MoP supports the retention of auto sector in negative list as proposed by commerce ministry. An official of MoI said the tariff lines that were already in positive list but requested by industry to be place in the negative list have not been analysed as per the principle decision of MoC that the positive list will not be altered and tariff lines will not be shifted from it to the negative list under preparation. It was reiterated by MoC in the meetings that positive list will not be altered, he added. The food/agriculture items are included in the negative list with exception of edible oils. Both the countries import edible oils. Therefore, edible oil from India is limited and should be removed, he said.
KESC ups the ante on marble industry bills Marble exports decline by 63pc g KESC causes $5 million loss to marble industry g
KARACHI GHULAM ABBAS
The marble industry in Karachi, which has faced huge losses due to the deteriorated law and order situation last year, has been issued millions of rupees worth average bills by Karachi Electric Supply Company (KESC), despite closure of the industry for over three months. The industry which is already bearing four to six hours of unscheduled power outages, has now forced to pay huge
amount KESC bills KESC despite closure of the whole industry for a couple of months amidst sectarian clashed that broke out in the industrial area last year. “Though the industries in Qasba colony area, which remained a flash point during the violence erupted in the city last year making the whole industrial units dysfunctional, KESC has issued average bills to the industrial units worth around Rs200 million which are yet to be adjusted,” Sanaullah Khan, Chairman All Pakistan Marble Mining, Processing and Export Industry told Profit on Friday. Despite a repeated request made by the industrial sector for adjustment of the unjustified bills, KESC was yet to rectify the data causing huge losses to the crisis stricken marble industry.
“As we were told to submit the bills prior to adjust within the due dates, we have faced extra expenditure of worth millions,” he said. The industry which has already made huge losses during the last eight months is being forced to face further losses by KESC through inflated bills and hours long load shedding, he alleged. Besides that, supply of power to the affected area was also frequently disrupted due to poor infrastructure of the company and lack of maintenance. Due to the power crisis during the last couple of months, the industry has been pushed further towards at least $5 million losses as its total exports by December 2011 have been recorded $17.2 million against the $22 million registered during
the corresponding months of 2010. The prolonged power outages and deteriorated law and order situation in the city have badly affected the export of marble which has declined by 63 per cent during the last seven months of the current financial year. The country has exported marble worth $19 million against the target of $30 million during July to January (2011-2012). The export of highly valued marble, under the present situation, was unlikely to meet even the reduced target of $60 million during the current financial year. According to exporters, the country could hardly export marble worth $35 million to $40 million during the year ended June 2012 against the target which has already been reduced to $60 million
from $100 million, owing to the acute electricity crisis and poor law and order situation in Karachi. The other exporters of the product like China, India, etc, have got an edge over Pakistani exporters owing to these inevitable circumstances of frequent electric load-shedding and high cost of production. The sector was now losing valued export orders from the potential foreign customers, which is causing loss of precious foreign exchange. He also stressed that instead of making short term decision for meeting shortfall of electricity and energy conservation, the authorities concerned should focus on permanent solutions to get the country rid of continued power crisis for smooth running of industrial units for the growth of industries.
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news Textile industry stakeholders agree on no TCP intervention LAHORE: A meeting of the textile industry ministry was held on December 28 with the stakeholders of the cotton trade industry, including Karachi Cotton Association (KCA) and cotton exporters to agree on a no Trading Corporation of Pakistan (TCP) intervention in the free market mechanism. TCP, therefore, is not likely to intervene as the ministry was convinced by the participants. It may be noted that the proposal of PCGA for lifting of their remaining cotton stocks through TCP amidst falling prices was pending with the textile ministry. The participants of the meeting argued that as of 15th December 2011, as many as 11 million bales of cotton had arrived, which would further increase by 31st December 2011 to around 12.2 million bales. They pointed out crop lifting data suggests that 95 per cent of the cotton crop, estimated to be 12.58 million bales, would be out of the hands of the cotton farmers. Therefore, the intervention would not yield any benefit and if so, would benefit only cotton hoarders. APTMA Chairman Mohsin Aziz cotton prices surged abnormally to $2.2 per kg last year, but APTMA did not ask for government intervention for a single day and instead fought for continuity of free market mechanism. Right now, he added, fall in cotton prices is a global phenomenon and APTMA has nothing to do with tumbling cotton prices, therefore, PCGA’s propaganda of manipulating the market by APTMA was baseless. It is not the manipulation, but the speculation of a few ginners that had created fuss recently, he said. He added, TCP’s intervention, if inevitable in any case should be broad-based and APTMA should also be allowed to bid for TCP’s tender against 4.5 million stocks with industry at present. There should be an equal opportunity for every stakeholder to avail the opportunity at the cost of exchequer and no discrimination should be made by the government, he underscored. He said the textile industry was passing through severe energy crisis and it would prefer to sell its stocks to TCP rather converting it into yarn on heavy losses. STAFF REPORT
Pak can produce 60,000 MW of electricity through coal, says Latif Khosa
P
LAHORE
STAFF REPORT
akistan can produce 60,000 MW of electricity through coal in order to meet the demand for the next 100 years. these comments were given by Governor Punjab Latif khosa during a meeting with the delegation of save Water save Pakistan Forum headed by Engr Bashir a Malik, Former Chief technical advisor of UnO and World Bank at the Governor House, Lahore. Governor appreciated the efforts of Engr Bashir a Malik as Chairman of the Forum to resolve water and
energy crisis in Pakistan and the way out. He also assured the delegation that the government will take all possible measures to combat water and energy crisis. Earlier, Engr Bashir a Malik presented his proposal to solve water and energy crisis in Pakistan. He informed 70 per cent electricity is produced in all countries of the world from hydropower which is the cheapest source of generation and 30 per cent from other sources. Whereas, in Pakistan it is the other way round, less than 30 per cent is produced from hydropower and more than 70 per cent from other resources. He also apprised the governor that if the 5-
Dam Plan of the government is not implemented by 2016, including kalabagh dam, then Pakistani people will have to face severe food, water and energy shortage by 2025, when the population will be increased to more than 2200 millions. Even if Pakistan is able to build 200 small dams, they would still not be equal to the production of one large kalabagh dam, he added. Bashir Malik reiterated save Water save Pakistan Forum would continue to highlight the importance of resolving water and energy crisis among the public and government authorities. Other members of the delegation including agricultural scientist Dr
LCCI appreciates formation of Pak-Qatar Joint Investment Company
Muhammad sadiq, Former Chairman iRsa, Engr shafqat Masood, Former Managing Director, Pakistan atomic Energy Commission Foundation Engr Mansoor ahmed, President tECH society Engr abdul Majeed khan and President tECH Club Zubair sheikh also talked on the topics of alternate energy resources, impact of water and energy shortage on agriculture and political compromises by Pakistani leadership for building water reservoirs and dams. Engr Bashir a Malik presented his recently published book titled, “save Water save Pakistan” to sardar Latif khosa, at the end of his presentation.
KP govt rejects allegation regarding BOK privitisation PESHAWAR STAFF REPORT
Setting aside allegations regarding privatisation of Bank Of Khyber (BOK), Khyber Pukhtoonkhwa government made it clear that the lone financial institution is on improvement; therefore, there is no plan for its privatisation. “BOK in accordance with the previous plan is going to sale out around 19 per cent of its share,” remarked Information Minister Mian Iftikhar Hussain and Finance Minister Engineer Humayoon Khan during a joint press conference here on Friday. Provincial Finance Secretary Sahibzada Saeed and BOK Managing Director Bilal Mustafa both talked about the satisfactory performance of the bank. Couple of days back, BOK invited bids for its share and in reaction, its employees and leaders of opposition parties went on a protest, alleging
that Khyber Pukhtoonkhwa government is going for its privatisation. However, the provincial ministers have rejected such allegations, saying how is it possible for the present gov-
tivation of BOK. In this respect, the government acquired a loan of Rs3 billion from State Bank of Pakistan, which enabled BOK in becoming a stable financial institution. Now
BOK invited bids for its share and in reaction, its employees and leaders of opposition parties went on a protest, alleging that Khyber Pukhtoonkhwa government is going for privatisation of the bank ernment to take such a decision? Advocating in favour of his point of view, Finance Minister Engineer Humayoon Khan recalled that after coming into power the present government had initiated steps for reac-
when the bank has become safe and stable, therefore, its management has decided to sell out its share. He said change of management is part of such bids, but it doesn’t mean that government is going to replace its
MD or go for shifting of BOK’s headquarters from Peshawar to Karachi. Similarly, Humayoon Khan also recalled that during the previous Musharaf-MMA government, BOK was not allowed by SBP to open its branches. But now the bank has opened a number of branches in various cities and towns of the country. Even now BOK is planning to open its branches in Kabul and Jalalabad. In response to a question, the provincial information ministers said now Khyber Pukhtoonkhwa government owns 70 per cent of BOK shares. Whereas, the government has made a mind for further investment of Rs2 billion, which could help in its further promotion. On such grounds, they said the government is going to sell its 19 per cent share. They called upon BOK employees and leaders from opposition parties to be patient as the reports on privatisation of BOK are all false.
LAHORE: Lahore Chamber of Commerce and Industry (LCCI) on Friday appreciated the decision to form Pak-Qatar Joint Investment Company to cooperate in the fields of hydro power and offshore as well as onshore oil/gas exploration and production. In a statement issued here, LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar hoped that the formation of Joint Investment Company on energy projects would help strengthen bilateral ties by translating existing political and cultural relations into commercial and economic interaction. LCCI officebearers said cooperation between the two countries would go a long way in solving the acute energy shortage being faced by the country for the last many years. They also hoped Qatar would extend maximum support to Pakistan in winning Free Trade Agreement with Gulf Cooperation Council (GCC). They said the decision to activate Joint Business Council (JBC) would also help promote interaction between business communities of the two countries. Meanwhile, LCCI office-bearers called for measure of economic stability in the country to give positive message to the international community that was now ready to make investment in a number of sectors of Pakistan. They said LCCI was ready to extend support to the government in achieving the economic targets, provided it is taken on board for economic policies formulation as it is the private sector only that could help implement policies in letter and spirit. STAFF REPORT
PSO chief unveils company’s future plans KARACHI: Naeem Yahya Mir, CEO Pakistan State Oil (PSO), unveiled his vision to a regional player in the next four years and one of the fortune 500 companies in next six years. Having recently taken over the reins at Pakistan State Oil (PSO), the nation’s leading oil marketing company, the new MD and CEO, Naeem Yahya Mir unveiled his vision for the state owned company in a meeting with the senior management. PSO CEO vowed to resolve all financial and operational challenges and take the company to new heights in the coming years. He apprised the senior cadre of his plans to make PSO the best company in Pakistan within the next two years. Yahya Mir’s future plan entail exploring new markets, increasing POL sales using innovative ways, enhancement of retail network, expansion of the lubricant product range, improved product movement mechanism over the coming years. As per his dream vision for the state owned OMC, enhanced focus shall be on operational streamlining, cost reductions, minimising product losses, focus on cash sales, improved quality and quantity testing and . He also exhibited keen interest in joint ventures.Mir emphasised on teamwork to accomplish the outlined vision. He presented his ideas to improve the employee appraisal system which will now focus on team results rather than individual performance. He also stressed upon the need for technical skill development and on-job training for the company’s human capital. NNI
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news
SAP develops mechanism to monitor sale LAHORE STAFF REPORT
EED Association of Pakistan (SAP) has developed a mechanism to monitor uncertified, fake and misbranded seed selling in the market. Under the newly developed mechanism, SAP has constituted a core group of professionals from all the provinces to study the preliminary work done by the technical committee of SAP. To safeguard the interests of farming community and dedicated seed companies doing legitimate seed business, it was also decided that the core group will formulate
S
a strategy and give its recommendations within the next couple of weeks to approach the regulatory authorities to address the issue. The decision was taken at the Central Executive Committee meeting of SAP held here on Friday under the chairmanship of Shahzad Ali Malik. The participants noted with great concern that the presence of a well organised “seed mafia” which has been in operation for the last few years, if remained unchecked for quite some time, will continue to damage the seed sector and directly affect the entire agriculture sector in the most adverse manner.
KSE surging towards 13,800 point mark KARACHI JAVED MAHMOOD
I
N 2011, Pakistan’s equities endured an uninspiring 2011 as the benchmark KSE-100 index contracted by 5.6 per cent while the average volumes plunged to their lowest in 13 years. Multiplicity of issues dented investor confidence throughout the year. JS Research report, titled “2012 enroute to recovery”, has pointed out this positive outlook on Friday. Foreigners were leading bears selling equities worth $126 million. However, 2012 started on an encouraging note largely owing to changes promised in the CGT regime by the govt. We expect this positive momentum to withstand in 2012. ”We are anticipating a level of 13,800 by the year-end based on
target prices of JS universe companies, expected earnings growth and local bourse’s discount to the region reducing to 40 per cent,” said the report. Furthermore, given the possibility of general elections this year, the question arises whether the market will sustain its uptrend or not. Looking back in history, the KSE-100 index during the last four election years has posted an average gain of 40 per cent. Apart from 2008 when the market declined by 58 per cent owing to severe economic downturn, the local bourse has provided a robust return ranging from 31 per cent to 112 per cent. We flag MCB, UBL, POL, PPL PSO, HUBC, ENGRO, FFC, LUCK and DGKC as potential out performers. Even after three years into the IMF programme, Pakistan’s macro team is still implementing the re-
‘SMEs showcasing products in int’l fairs will enhance exports’
LAHORE STAFF REPORT
P
AKISTAN’S exports can be enhanced manifold by enabling local SMEs to showcase their products in the international trade fairs. It was stated by Yousaf Naseem Khokhar, Chief Executive Officer Small and Medium Enterprises Development Authority (SMEDA) while addressing a presentation ceremony on the world’s largest trade fair of printing and publishing business, Drupa, as a guest of honour. Syed Babar Ali, the renowned businessman was chief guest on this occasion. LCCI President Irfan Qaiser Sheikh, German Embassy Economic Consul Samy Saadi and Laison Office Messe Dissever In-charge Jamil A Naz also addressed the ceremony. SMEDA CEO said SMEs had 25 per cent in total manufactured exports of the country. He was optimistic the share could substantially be increased by introducing SME produced items in the world market. He said SMEs should be facilitated both by private and public sector, facilitating organisations to participate in the international trade fairs. Khokhar appreciated local liaison office of Messe Düsseldorf for attracting SMEDA towards international trade fairs to be held in Germany. Syed Babar Ali, while speaking on the occasion said Drupa to be held in Germany in next May can be the best source of knowing the latest development in the world’s print media, publishing and converting industry. He said he had visited Drupa seven to eight times in the past that helped him develop his packaging business in Pakistan at par with international competitors.
forms with a lag of 12 to 18 months. This has resulted into an incomplete IMF program, higher deficit and infrastructural bottlenecks. Although the government, thus far, has been unable to control the fiscal deficit however it has remained successful in containing the subsidies. Push from the electricity and tax reforms are much awaited, which will eventually provide a liquidity buffer to the private sector. Additionally, debt repayments (mainly IMF) look like a daunting task especially in the absence of FDIs and flows from the US government. Liquidity led woes have already restrained the SBP to provide further relief in the policy rate despite lower growth, investment and slower inflation. Moving forward, macro lifeline is heavily de-
pendent on the 3G/4G telecom auctions, reimbursement from USA under the coalition support and Kerry-Lugar arrangement, and lower global oil prices in our view. To conclude, despite mounting challenges, we believe the country is no where near the 2008 crisis; however, there are challenges, which remain to be resolved. The topsy-turvy political journey of the ruling party (PPP) was confronted with awkward issues domestically and internationally. Issues’ pertaining to opposition’s resistance in implementing the non-populist economic reforms (e.g. pass through of subsidies and energy shortfalls) to tense relations with US because of counter- terrorism and geo-political issues proved an ordeal for the government.
Major Gainers Company UniLever Pak Ltd. Nestle PakistanXD Attock PetroleumXD Millat Tractors Ltd. Island Textile
Open 5555.00 3315.00 432.20 475.60 204.31
High 5695.00 3365.00 453.81 497.00 214.52
Low 5520.00 3315.00 431.01 478.20 200.00
Close 5647.44 3359.39 453.22 495.51 214.02
Change 92.44 44.39 21.02 19.91 9.71
Turnover 513 156 278,405 136,400 157
59.00 127.75 178.01 32.15 14.96
56.50 121.65 175.00 30.61 14.88
56.50 122.56 177.00 30.64 14.93
-2.97 -2.61 -2.00 -1.58 -0.95
4,752 959,960 8,115 1,658 1,150
10.87 27.22 7.80 9.15 14.35
10.20 26.00 7.10 8.29 13.82
10.50 27.16 7.21 8.78 14.27
Major Losers Dadex EternitXD Habib Bank Ltd Exide (PAK) Rupali Polyester Bestway Cement
59.47 125.17 179.00 32.22 15.88
Volume Leaders Jah.Sidd. Co. D.G.K.Cement Azgard Nine B.O.Punjab Bank Al-Falah
10.37 25.93 7.45 8.28 13.84
0.13 1.23 -0.24 0.50 0.43
24,801,229 18,431,743 13,951,749 11,191,888 7,947,766
Interbank Rates US Dollar UK Pound Japanese Yen Euro
US Dollar
90.8434 143.5779 1.1269 121.6756
Buy
Sell
90.50
91.00
Euro
120.95
122.30
Great Britain Pound
142.75
144.24
Japanese Yen
1.1139
1.1250
Canadian Dollar
89.91
91.48
Hong Kong Dollar
11.47
11.74
UAE Dirham
24.60
24.82
Saudi Riyal
24.10
24.29
Australian Dollar
96.15
98.71
CORPORATE CORNER Schneider Electric launches two switchgear products
KARACHI: Schneider Electric, the global specialist in energy management, has launched two new world-class switchgear products, Blokset and Prisma iPM for the first time in Pakistan. Developed at their state-of-the-art plant located at Karachi, Schneider Electric becomes the first company in the country to manufacture the IEC 61439 compliant LV Switchgear. The launching of the two new ‘energy-saving’ products is a significant breakthrough after the successful transfer of technology by Schneider Electric to Pakistan to meet the challenges being faced here such as devastating fire accidents inside buildings, commercial markets and industrial locations. Mr Mazhar Valjee, Managing Director, Schneider Electric Pakistan (Pvt) Ltd, stated, “Schneider Electric envisions immense potential in the Pakistan market to grow and evolve in areas of energy and energy conservation.”
Nida Azwer introduces Pretwear Collection 2012 KARACHI: Nida Azwer will be bringing forth her Spring Summer Pretwear Collection 2012 at an exhibition at her design studio in Karachi on Tuesday, 28th February 2012. This will be a preview to this season's trends by the design house which includes A-line shirts, angrakhas, kurtas, peshwas and straight kurtas. This collection also includes signature and limited edition Nida Azwer pieces based in fine quality Indian fabric handpicked by the designer
herself from across India. PRESS RELEASE
Wi-tribe sponsors deaf cricket tournament
KARACHI: In an effort to continue building community blocks, Wi-tribe Pakistan shares its latest CSR initiative that is comprised of a partnership with the Islamabad Deaf Cricket Association (IDCA). The IDCA will be participating in the 1st National Deaf Cricket Tournament, with 32 Deaf Cricket teams representing different cities throughout Pakistan. Wi-tribe is honored to be supporting the team members’ uniforms, travel, accommodation and sports kits for two major gaming events, among others. PRESS RELEASE
Wateen rallies for freedom of expression LAHORE: Wateen Telecom is proud to present ‘Wateen Scouts’, a revolutionary new youth movement which went live this week on Wateen’s Facebook page. Wateen Scouts is a platform for the youth of Pakistan to step forward and present their innovative ideas for making a tangible difference to the country’s social scenario. Through Wateen Scouts, the company aims to empower the youth of Pakistan in enabling the change they wish to see in the country. The campaign, launched through digital and social media platforms, carries a message of change from renowned motivational speaker Nadeem Chawhan, who is spearheading the campaign. Mr Chawhan is a senior facilitator and consultant with Navitus, a leading management consulting and training firm with a
rich history of adding value to the corporate sector in Pakistan and abroad. PRESS RELEASE
Mazars organises conference on women empowerment LAHORE: Mazars in Pakistan organised a “Women Empowerment Conference” at the Serena Hotel in Islamabad. The conference included female public representatives, CEOs, NGO activists, media celebrities and entrepreneurs who highlighted their experiences cherishing womanhood and the daily professional challenges they encounter. Ms Muriel de Saint Sauveur, International Marketing and Communication Director at Mazars, who has worked extensively to identify the needs and suggest ways to empower today’s women, shared her thoughts at the event. PRESS RELEASE
ISLAMABAD: MOL Pakistan delegation consisting of Managing Director Mr Erno Liptak and Political Advisor Ali Murtaza Abbas calling upon the Federal Minister for Petroleum and Natural Resources Dr Asim Hussain. PRESS RELEASE
LAHORE:Mr Fan Yunjun, CEO, ZONG (2nd from left) along with management team inaugurating the multimedia contact centre in Lahore. PRESS RELEASE