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Fiscal and monetary interdependance Page 3 China Radio International - on air and ears Page 2 Banks’ micro-credit outreach struggling at 7pc Page 8 Pages: 7
profit.com.pk
Saturday, 03 December, 2011
Foreign debt rises by $97m in first quarter FY12 ISLAMABAD JALALUDDIN RUMI
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AkiSTAN foreign loan liabilities have risen by $97 million in the first four months of the current fiscal year as the government has taken $555 million in loan and grant from friendly countries and international Financial institutions (iFi) as compared to $458 million obtained during the corresponding period last fiscal year. Secretary economic Affairs and Statistics Division Abdul Wajid rana briefed members of National Assembly Standing committee on economic Affairs and Statistics
met under chairmanship of malik Azmat khan in the Parliament House. The committee discussed progress on foreign funds and grants for programmes in Health Sector; selections of students under exchange programmes and performance along with expenditure of economic Affairs Division (eAD) during 1st Quarter of Financial Year 2011-2012. Secretary eAD briefed the committee in detailed on the agenda items regarding the progress of foreign funds and grants for programmes in health sector. He told members that $265 million have been received for 15 health projects by Germany, Japan, Uk and iDA under various pro-
grammes $216 million for these projects is yet to be received by donor agencies. Committee directed the ministry for inclusion of khyber Pakthunkhwa headquarter Peshawar for operations of cataract patients in current project funded by Chinese grant. Secretary told that eAD have finalised project related loan with the islamic Development Bank (iDB) under country partnership programme for three years. On the question of distribution of energy Savers programme for energy conservation, secretary told that ministry of water and power have decided to re-bid for procurement after which ADB will be
evaluating it. The bank will provide financial assistance for free distribution of 30 million energy saver bulbs (CFLs) in the country. These energy savers will help reduce peaks hour demand over 1000 mW. Secretary also briefed the committee on selection criteria of Students exchange Program with China and Turkey and also apprised the committee for distribution of provincial quota on the basis of Federal Public Service Commission (FPSC) rules. He told that students aged between 18-25, 36 per cent from Punjab, 20 per cent from Sindh, 14 per cent from kP, 10 per cent from Baluchistan, 05 per cent each from
$243 million loan sought from ADB for power sector Sub-projects to increase transmission capacity in Sindh and Punjab 500 kV circuit with a 600 km transmission line along with a 500kV grid sub-station to be established
ISLAMABAD
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AMER SIAL
O increase transmission capacity and reliable power supply, Pakistan has approached the Asian Development Bank (ADB) for the release of third tranche of $243 million under the ongoing power transmission and distribution enhancement project.
Multi-tranChe finanCing faCility An official source said the funding has been sought under the multi tranche financing facility of the bank. He said the bank has changed its previous strategy of allocating funds and now funds are approved only for ready to implement projects. According to the source, the project was ready for implementation and it was likely to be approved by the bank during the current month. The government has requested ADB to finance construction of a 500 kV circuit with a transmission line of about 600 km along with a new 500 kV Grid Substation at moro in Sindh. The sub-projects will increase transmission capacity and improve efficiency and security of supply in Punjab and Sindh.
5000 MW PoWer shortfall Pakistan’s power system faced with a shortfall of 5,000 mW operates under stress conditions due to increase in demand and overloaded infrastructure. The transmission network, the power system’s backbone, requires renovation and expansion to achieve reliability and high-quality power supply. This needs to be done to cater to the rising demand from industrial, commercial, agricultural, and domestic customers. The government has recently taken some major decisions for implementing the required administrative reforms in the power sector. For the success of administrative reforms major initiatives are also required in the improvement of the transmission and distribution network. New investment will help enhance the efficiency of power transmission system and provide an adequate and reliable power supply to consumers.
eliMinating PoWer systeM bottleneCks The source said the sub-projects finalised for the new tranche will improve power transmission infrastructure through
development of additional 500 kV transmission lines and grid substations facilities, facilitating the process of eliminating power system bottlenecks. it will help increase inter-regional transmission capacity and evacuate power from new power stations to the load centers. it will help in the addition of approximately 600 km 500 kV transmission lines, commissioning of one new 500 kV grid station and expansion of four existing 500 kV grid substations. Subsequently, it will also ensure improved security of supply to customers by moving towards compliance with regulatory security standards governing planning and operation, and improved reliability of the primary transmission system.
iMProVe CaPaCity utilisation of iPPs The sub-projects will help supply the power generated from the independent Power Producers (iPPs) which are expected to be commissioned during 2013-15 period. These investments are consistent with the government’s strategy to achieve more efficient power systems for reliable and highquality power supply. it will also help in greater access and affordable electricity, by bringing additions of generation capacity and energy to load centers in the two densely populated provinces of Sindh and Punjab.
Azad kashmir, Gilgit -Baltistan, islamabad and from minorities went to visit abroad that includes 35 women from all over the country last year. While informing on the budget expenditure; Secretary eAD told that out of total rs421.48 million the ministry consumed rs46.33 million in first quarter of 2011-12. Committee directed the ministry to provide province wise quota list of youth exchange programme beneficiaries. Committee further directed the ministry to provide the last ten years fund utilisation details of ministries of water and power, interior and petroleum and natural resources.
Prime Minister praises performance of CCP ISLAMABAD
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STAFF REPORT
rime minister Syed Yousaf raza Gilani said government’s new growth framework identifies competitive markets as the starting point to increase efficiency and bringing about innovations to promote and sustain economic growth. He said this while addressing 2nd international conference organised by Competition Commission of Pakistan (CCP) in collaboration with Competitiveness Support Fund and USAiD. Prime minister praised CCP for being quite active since its inception in addressing manipulation of the local markets. And like most countries, it has also faced opposition as it has challenged powerful vested interests. “Nevertheless, the commission enjoys continued support and acknowledgment of the government”. He said government recognised the importance of competition law and CCP and it could be judged from the fact that the Competition Ordinance of 2007 was re-promulgated twice to ensure continuity of the commission’s important work. “Because of our efforts and resolve to institute competition as the law of the land, the ordinance was given approval as an act of the parliament in October 2010”. Prime minister said international recognition and evaluation is a valuable barometer for judging performance of an entity. “i am pleased to learn that the commission was chosen and given a fair rating this year by the Global Competition review. This international recognition and feedback, i am sure, would help competition commission in transcending to global standards of excellence.” Prime minister said he was aware that due to the critical matter of funding the commission’s operations remain unresolved. “Let me take this opportunity to assure you that in the same manner the democratic government supported the passage of the law through the Parliament, it will focus attention on providing the commission a secure source of funding to carry on its important work.” Finance minister Abdul Hafeez Shaikh said Pakistan was the most business friendly country of the region offering a number of incentives to the investors. He said the government encouraged foreign investment and there were no trade barriers in the way of foreign investment. He said private sector was the engine of growth of any country’s economy and it was government’s responsibility to ensure appropriate measures along with provision of best possible policies, services and resources to facilitate the private sector for promotion of economic growth and job creation. He also reiterated government’s commitment towards strengthening the CCP by resolving the pending issue of three per cent fee.
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Saturday, 03 December, 2011
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CRI sponsored variety of activities to promote friendship and cultural exchanges Music being used as a medium to transcend geographical boundaries Establishing friendship through radio is the objective of all CRI departments SyeD ALI NAwAz GILANI
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HiNA radio international (Cri), official broadcasting agency of the Peoples’ republic of China (PrC) is celebrating 70th anniversary of its successful transmission. established as Xinhua radio station in YANAN, northwestern China on December 03, 1940, Cri in its long journey has acted as a skylight on New China, besides being witness to the rise of an Asian superpower. After its relocation to Beijing, Cri has the unique honour of announcing dawn of New China on October 1, 1949.
Introducing China Radio International it was April 1951, when Cri was renamed as radio Peking and served as the official overseas broadcaster of PrC. radio Peking in its formative years added additional languages including russian, French, German, Spanish, Vietnamese, Thai, kiswahili and Arabic to its transmissions to promote relations between new republic and rest of the world. its portfolio had risen to 38 foreign languages by mid 1970s and played a crucial role as a bridge between China and outside world. With changing times, it also changed its nomenclature and renamed to radio Beijing; however, in 1993, it got its present name China radio international (Cri). As its name indicates, Cri is global in its outlook and broadcasts coverage of national and international affairs around the globe however, it is also an international media organisation that uses the most languages in its coverage of both national and international affairs amounting over 1500 hours per day. To better cover news events taking place elsewhere in the world, Cri began to establish overseas correspondent bureaus in 1980. The first two were set up in Tokyo and Belgrade. At present, Cri has 32 overseas bureaus across the world and dispatched over 400 correspondents. representing Cri outside China, these correspondent bureaus are based in major cities with the mission of covering all its surrounding areas. Cri correspondents are always in the forefront of every breaking story to send back updated first-hand reports.
study, work, travel or business. in order to provide them with a better understanding of China, in 1986, Cri began offering domestic services with the launch of the english Channel, easy Fm-produced by its english ServiceeASY. Fm can be heard in major cities throughout China and is a favorite radio station with expatriates and english lovers in China. While dedicating itself to the reporting of both domestic and world events, Cri has also sponsored a variety of activities to promote friendship and cultural exchanges between China and other countries. No doubt that music is a language that can transcend geographical boundaries. Last year, to mark the Sino-Vietnam Friendship Year, Cri hosted a singing contest for both Chinese and Vietnamese singers by collaborating with major Vietnamese media outlets. more than 300 Chinese and Vietnamese singers participated in the contest.
Strengthening Sino-Pakistan diplomatic ties The year 2011 marks the 60th anniversary of SinoPakistan diplomatic ties-Cri organised a reporting trip along Pakistan’s indus river in may. The excursion included 20 reporters from Cri and other major Chinese media groups. This trip was very successful as mentioned by Cri Deputy DirectorGeneral, madam Wang Dong Wei, while meeting with the writer in islamabad. She described the trip a successful journey and said that during exploring the civilisations along the river indus, she found that Pakistan is a beautiful country and its people are very friendly and have showed a lot of love and respect for China. She said that they would be delighted when Pakistani media delegation will visit China and explore Chinese civilisation along the river Yangtze, as this will be a unique opportunity to enhance people-to-people interaction and further strengthen the friendship ties. Cri delegation during their twelve days trip covered some 5,000 kilometers along the river indus and produced hundreds of reports presenting a comprehensive picture of Pakistan. Similarly, at the invitation of Cri, a team of Pakistani journalists from major media groups will soon start their tour of the Yangtze river in China and will inform the people of Pakistan about their experiences.
Building overseas bureaus
Broadening language horizons
Cri also plans to build eight overseas regional bureaus in europe, America, Oceania, Africa, Asia and middle east. These regional bureaus will be the representative organisations of Cri in the respective continents and regions and will be responsible for the management and coordination of its overseas correspondents, and will oversee news gathering, programming, distribution, international communication and promotion of Chinese language and culture. After China’s reforms in the late 1970s, more and more foreigners had come to China for
Cri after decades of growth has developed into one of the world’s major international broadcasters, both in terms of the number of languages and the quantity of programmes transmitted. Today, Cri broadcasts in 61 foreign languages across the world; the highest number of languages among all international electronic media. it aims to introduce China to the rest of the world, and vice versa, report global affairs to the world, and enhance understanding and friendship between Chinese and people of other countries. in recent years, Cri has
followed its strategic goal of establishing a modern international broadcasting system and continuously improving the quality of its overseas broadcasts. Based on its traditional shortwave radio, Cri has vigorously promoted broadcasting programmes through overseas radio stations to reach more audiences. So far, Cri has set up 60 full-frequency Fm or Am radio stations abroad, which broadcast in 41 languages. Their daily accumulated radio broadcasts now totals 1,200 hours and cover more than 60 countries and regions. in this edition of the show, we’ll bring you the final part of the listeners’ knowledge contest marking Cri’s 70th anniversary.
Establishing friendship through radio establishing friendship through radio is common for all 61 language departments in Cri. Letters and gifts displayed in the radio station’s exhibition hall stand as proof, which are rich and colourful tokens of love. A scarlet silk banner frequently catches people’s eyes. “The gifts are from various listeners from Pakistan like other countries of the world, are displayed in Urdu Service First Asian Broadcasting Department Area apart from main reception area of Cri headquarters, which shows the attachment of listeners with Cri and Cri’s honour to their well wishers.” Listeners’ support for China radio international is not just limited to gifts and letters. Over the past seven decades, they’ve voluntarily organised listeners’ clubs. Since 1961, the first listeners’ club, Beijing radio Listeners’ Club, was founded in Japan. Cri’s listeners crossed five continents and have established a total of 3,165 overseas listeners’ clubs. The smallest clubs have dozens of members while big ones boast of thousands. They gather to share their experiences listening to Cri’s radio programmes, exchange knowledge about China and organise cultural exchange activities. in Pakistan, Cri listeners are actively working for the promotion of Cri programmes, since establishment of Urdu service in 1966; this year it was 45th anniversary of Urdu service and was celebrated across Pakistan in befitting manners. Cri also appreciates the listeners’ participation at club level and their reports were also acknowledged properly. Like Urdu service of Cri, present incharge ms Zhao Qiao (mahvesh-her Urdu/Pakistani name), along with Cri Pakistan Bureau Office reports, ms Sun Lingli and ms Wang Qainting (ms musrat-her Pakistani name) are actively working for the promotion of Cri and its objective to successfully enhance Cri-China education and social and cultural interaction programme.
Strengthening relations with listeners To strengthen a bond with listeners, Cri has organised knowledge contests on various themes. many listeners have been awarded prize trips to China. Cri staff and their overseas listeners are like members of a huge, but close family. While conveying the voice of China to different parts of the globe, Cri is also transmitting the message of friendship to people worldwide through the radio waves. With the joint efforts of its entire staff, Cri shows to its listeners that despite the geographical distances and their different ethnical and cultural backgrounds, the world becomes small to people who belong to Cri’s extended family. Cri has promoted its strategic adjustment by incorporating all means of mass communications—radio, television, newspapers, internet and mobile phone. in 1998, Cri began its online broadcasting service by setting up Cri online website. This internet communication platform offers news and information in a large number of languages among major international media. By logging onto the website, people can listen to Cri programmes anytime, anywhere and find all kinds of information about China. Now, the website’s visitors come from over 180 counties and regions. To help its listeners learn the Chinese language and culture, in December 2007, Cri established the first Confucius institute on the Air, offering a long-distance Chinese teaching mechanism via Cri’s multilingual international broadcasting network. Until now, Cri has set up 12 on-air Confucius institutes in different countries, allowing its global listeners to learn Chinese in their mother tongues. in January 2011, Cri launched China international Broadcasting Network or CiBN, in Beijing. it is a significant development for Cri in the field of new media. Based on Cri online and featuring 61 languages, CiBN is a multilingual and multiterminal broadcast organisation that caters to audiences worldwide. The network is a convergence of websites, online broadcasting, network television and a mobile service terminal; all of which are multilingual. With the motto “introduce China to the world, introduce the world to China, report everything in the world,” the network serves as a new platform for Cri’s global audiences to learn more about China and the world. While congratulating Cri on auspicious occasion of its 70th Anniversary, it will not be out of place to mention the vital role played by Urdu service in people to people interaction among Chinese and Pakistani public since 1966. We wish Cri all the best and success in years to come. The writer is President Radio China Listener’s Club and Secretary Pakistan-China Friendship Association-Khyber. He can be reached at syeed.gilani@gmail.com
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Saturday, 03 December, 2011
EDITORIAL
Fiscal and monetary interdependance
Dr Sheikh s finding iNALLY, the finance minister admits that the model of the state running crucial institutions is faulty. Perhaps PiA, railways, PSm, and practically all such giants under government control had to become sick with debt and addicted to bailouts to finally mobilise the finance ministry. That is, assuming, that the ministry has decided to mobilise. And Dr Sheikh was quick to follow the novel by the usual, noting somehow that prudent policies are beginning to translate into encouraging signs of economic recovery. Yet we remain caught in persistent stagflation, half way through the fiscal most crucial indicators are shy of targets, and public institutions seem likely to milk the government for at least the foreseeable future. Since the announcement of the budget, we have pushed the finance ministry to sort out revenue collection ahead of all essential measures if there is to be any chance of meeting ambitious targets. Yet month after month not only did we not notice any proactive posturing
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towards improve collection, we also saw no visible efforts to check blatant leakages. ironically, PSes provide the best example. They remain politicised despite the hemorrhaging black hole they have delivered to the system. even if the finance ministry’s sincerity is to be believed at face value, it cannot duck the responsibility of impressing the urgency upon top decision-makers in islamabad. in this, at least, it has failed, and to no small extent. Dr Sheikh must now follow his finding by at least spelling out, and in considerable detail, what is to be done of these dented institutions that were supposed to be the pride and joy of the national exchequer. Our economic and financial ills call for a serious and drastic reorientation of our fiscal outlook. The sooner Dr Sheikh can initiate appropriate reforms, the sooner we can prepare for a more realistic growth mix. He knows well what is to be done – FBr overhaul, export diversification, privatisation. He also knows how to do it. We just don’t understand why he is unable to do it.
S a rule, monetary policy must be complemented by a prudent fiscal policy. if the interest rate regime and money supply are left to control inflation and monetary expansion, they lose significance over time, as is presently the case in Pakistan. Not only is the fiscal side not taking basic steps to improve revenue generation, it has also failed to cut costs and check unnecessary leakages. The government’s fiscal space continues to be strained by billions lost through inefficient public sector enterprises and an improper subsidy structure. Until the government completes the process of identifying those most in need of subsidies, and then initiating a program of carefully targetted subsidies, its burden will not lessen. it must also ensure rapid turnaround and strategic privatisation of all loss making public sector entities. The burden of sustaining these trends is simply too large for the national exchequer. Similarly, tax reforms must focus on netting groups with the ability to pay, ultimately freeing more fiscal elbow room for the government to maneuver, with multiple spill-over benefits. On the one hand, greater fiscal strength frees the government from borrowing, leaving monetary policy to stimulate private sector investment. Being more efficient, the private sector invariably leads in job creation and ultimate overall growth. On the other hand, the govern-
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There must be harmony in the two policy arms for equitable and sustainable growth
Trade›with›India argument
Rupee depreciation
This is true as a general rule that a specific industrial policy is needed to kick start and maintain growth momentums in productive capacity of the economy. it has been argued by many economists like, Ha-Joon Chang of Cambridge University that all developed countries have had protection/support systems for priority sectors. Pakistan is a unique case. if Pakistan lowers the tariffs below ASeAN levels, then it can hope for some development. What Pakistan needs is a well-articulated industrial policy with some structures of industrial forecasting, even at the provincial and city level. We are trying to bring in the economics of 80s (much of neo-liberal thought in new bottles) under the so-called new growth strategy for Pakistan.
As rupee continue to plunge into obscurity, things are indeed looking bleak. Obviously the fact that exporters are holding back their export means that things would only get worse. Dollar is continuing to appreciate and rupee’s depreciating trend doesn’t look like halting any time soon. We need a lot of investment in our neck of the woods, and for that to happen we need to invite investment. With terrorism prevailing and other problems also engulfing our country, the available options for investors are already minimal. Add the fact that we aren’t even giving any incentives to them and you get a dead end.
zuBAIr FAISAL ABBASI
DILDAr HuSSAIN
LAhORE
Shaukat Tarin
ment subsequently has increased funds to allocate to public sector development, with its own impact on eventual GDP growth. At the end of the day, the main focus should be on achieving equitable and sustainable growth. in order to posture towards a long-term growth trajectory, and keep feeding the ever expanding job market of approximately six million annually, Pakistan needs a growth rate of 8-10 per cent over 15-20 years. For this, the starting point must be a prudent revamping of the fiscal policy as the monetary sector paves the way for increased private sector participation. Unfortunately, in the absence of a realistic fiscal policy, the monetary sector has been left to shoulder the burden on its own, consistently losing in relevance. Now, numbers show currency in circulation has risen over the last 12 to 13 years, a trend contrary to regional economies like india, Bangladesh and korea, all of whom have recorded reductions in currency in circulation. Also, there is disintermediation in the banking sector. Pakistan’s banking-GDP ratio has shrunk from 35 per cent in ’99 to 32 per cent now. in the same time-frame, the same ratio for india and Bangladesh increased from 38-65pc and 25-51pc respectively. Whenever fiscal policy is divorced from monetary policy, crucial economic indicators are skewed. relevant authorities must restore balance between the two policy arms. That is why the monetary board has representation from the federal government, so both policies can move in tandem. The way things currently stand, the fiscal side must urgently reorient crucial revenue generation avenues so it is in a position to effectively complement monetary policy. Already, the exercise of toggling the interest rate regime to first control inflation and then engineer private sector investment has been pretty much wasted due to the government’s compromised fiscal outlook. Again, the aim must be equitable and sustainable long term growth. For that, the private sector must be facilitated. When it expands, and foreign investment is also attracted, unemployment will ease, consumerism will be triggered and an eventual fillip will be provided to the growth curve. The writer is a former finance minister
SARgODhA
Are we an apathetic nation? Occupy Wall
Iqra Shukr ArLier in 2011, the whole world stood amazed as protests shook various countries from North Africa to the middle east. The revolution, that ousted Tunisian ruler Zine al Abeddine Ben Ali from Tunisia after 23 years of authoritarian rule, spread like wild fire. mass protests brought about revolutionary change in egypt and Libya, and caused political unrest in several other countries. The riots in Tunisia are believed to
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have been sparked by the suicide of a young man who could not find a job, and was barred from selling fruit without a permit. 10 months later, an incident redolent of the one in egypt, took place in islamabad and bystanders waited for history to repeat itself. raja khan - a father of two - set himself on fire in front of the parliament, because he was fed up with his financial troubles. However, his self immolation went rather unnoticed because he belonged to a country where poverty, unemployment and social disparity are a norm rather than an exception. He belonged to a country which continues to be a silent bystander as foreign forces kill its people, or rather “suspected militants”, under the façade of fighting terrorism. revolts were not just restricted to the Arab or African world but also made an appearance in the developed world. Americans expressed their frustration in the form of “Occupy” movements all
over USA, starting with “Occupy Wall Street”. The protests were against social and economic disparity, high unemployment, corporate greed, and corruption. All of these issues and many more, are prevalent in the Pakistani society. To make matters worse, Pakistan has had its share of natural disasters. iFrC president Tataderu konoe predicted, in the beginning of 2011, that there might be political unrest in areas devastated by floods the year before. We clearly proved him wrong. Pakistani people have consistently endured food shortages, load shedding, sharp inflation, rising unemployment and wide scale corruption. Yet, other than occasionally chanting slogans and burning flags, there have been no major revolts. Are Pakistanis simply apathetic or have we lost all kinds of hope? The point here is not to suggest all Pakistanis should get out on the streets and start a political upheaval. The point is to try
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
Street movement was against social and economic disparities
to understand why we are so numb that nothing seems to concern us anymore. The only time i saw consciousness and uprising at a national level was when Pervaiz musharraf ousted Chief Justice iftikhar muhammad Chaudhary in 2007. i was studying at the Lahore University of management Sciences at that time and i could feel the vibe of restlessness and anger, along with faith and hope, in the air. i remember putting tapes on our mouth as a remonstration against the crackdown on media, holding a protest demonstration outside the Chief Justice’s house for days, and putting up videos and pictures of hundreds of students marching on the roads of Lahore online. That one decision, to fire the Chief Justice, acted as a catalyst to get millions of people out on the streets. maybe we again need a thrust, just one shove, to push us off the cliff. The media played a colossal role in motivating
the public at that time. even now, the power of media cannot be undermined. A song “Aaloo Anday” recently went viral in Pakistan with tens of thousands of hits within a few days of being released on YouTube. BBC called it “one of the most biting and daring satires the country has seen in years”. This song provokes the need to understand current political discourse in Pakistan, laments the screwed up politics of our country, and at the same time, its wit forces a smile upon your face. Hopefully, it played a small, but significant, role in instigating the people of Pakistan to rise and, at the very least, acknowledge all things wrong with the country. The writer is Johns Hopkins graduate. She is currently working with Bloomberg and can be reached at iqrashukr@gmail.com
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Saturday, 03 December, 2011
Pakistan has good competition laws to promote business environment, competitiveness and protect the consumers’ rights in the country
news
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finance Minister, dr abdul hafeez shaikh
BSF INITIATES AMBITIOUS ENERGY CONSERVATION PROGRAMME LAHOre STAFF REPORT
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iNiSTrY of Finance’s Sme – Business Support Fund (BSF) has initiated a $92 million BSF Smart energy Programme to overcome energy shortage in small and medium industries. BSF has targeted to cut Smes’ energy cost by 30 per cent and has completed preliminary energy audit of some 150 Smes. BSF Chief executive Officer Syed Saquib mohyuddin disclosed that a com-
prehensive PC-1 had been prepared – covering a total outlay of about rs8.035 billion ($92 million), which would be submitted to the Planning Commission of Pakistan in next week. He was addressing a news conference here on Friday. He said the programme was expected to conserve about 100 mW power demand and release of about 80mW power system capacities, valued at about $160 million. The programme had conceived mobilisation of about 30 per cent of resources from local investment banks and financing companies, while
the rest would be generated through international donors. The programme would have two important components, including rs2.175 billion ($25 million) energy endowment Fund and rs2.175 billion ($25 million) energy investment Fund, he maintained. energy endowment Fund will generate resources to cover the cost of free energy support services and operating expenses of the programme. it has estimated that free energy services will be offered to around 500 Smes per annum. Similarly, energy investment Fund aims
at providing capital investment to Smes with part of the investment as grant. The funding for the energy investment fund shall be obtained preferably interest free with 50 per cent non-returnable grant from international donors. He underscored that it had been targeted to provide 50 per cent of retrofit cost as grant to preferably export oriented Smes. The retrofits would be offered with 10 year repayment plan of the remaining 50 per cent loan part of the programme. Highlighting other salient features
MFN granted without due diligence: Sakib Sherani Peace to be ensured if Pak-india trade relations strengthen g trade between Pakistan and india has potential of growth and peace prospects g
ISLAMABAD
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STAFF REPORT
N a special lecture on “The cost of economic non-cooperation in South Asia” organised by Sustainable Development Policy institute (SDPi), the speakers present at the occasion said trade between india and Pakistan has high growth potential and peace prospects because when countries trade with each other, the conflicts are most likely to be resolved. While highlighting the critical issues and comparative advantages, the speakers also said peace would prosper, if trade relations between india and Pakistan are strengthened. Trade will help to increase people to people contact and if there are any disputes, as is likely to happen, they will use dialogue to resolve them. Dr Abid Suleri of SDPi said our traditional trade destinations such as euro zone and America are in crisis and there is a huge need to explore alternate trade avenues. “We believe first trade has to be initiated
which will further lead to normalisation of overall relations and we need to turn challenges into opportunities,” he added. Pradeep S mehta, Secretary General, Consumer Unity and Trust Society (CUTS), international said the goods and equipments are informally traded through either a circuitous route or clandestine channels which increase the cost from 17 to 35 per cent respectively for the importer country. Though official bilateral trade figures are pegged at slightly less than $400m, illegal trade is $1.52bn whereas, informal trade is another $1b, adding that some talk of a range of $2-8b. Official trade figures apart, informal and illegal trade are mere estimates, but indicate the huge potential for formal trade. He said the plight of the consumer and the producer, be it in india or Pakistan is rather unpleasant. india should consider a preferential tariff and reduced non-tariff barriers formula for Pakistan. “While a large share of gains to indian consumers will be through
Pakistani exports in plastic-based articles, minerals and mineral fuels, indian exports in pharmaceutical ingredients and electrical equipment will significantly reduce the burden of Pakistani consumers,” he added. He said if strong economies always dominated bilateral trade, then China and the US would dominate all economies with which they have a trade surplus. He said regional trading blocs may be an instrument for peace and prosperity as proved in other parts of the world. He added trade and commerce have been the most effective ways of establishing peace between rival nations. “it is expected that the resumption of the composite dialogue process between india and Pakistan will give a fillip to bilateral trade, besides facilitating early execution of various gas pipeline projects such as, iran-Pakistan-india (iPi) and the Turkmenistan-
Afghanistan-Pakistan-india (TAPi) projects,” he hoped. Sakib Sherani, former economic advisor, government of Pakistan said the trade with india is a plus point, but Pakistan has given mFN status to india in a rush manner; without any sectoral study and consultations with stakeholders. He said there is huge potential, but opportunity cost for Pakistan is very much high despite sitting in the middle of two fast growing economies of the world such as, india and China. According to him, mFN status is no longer a big issue concerning trust-deficit, but the deepening water issues including, kashmir dispute that india and Pakistan will have to act to genuinely address the trustdeficit and peace prospects.
KSE tumbles as Pak-US ties crumble
of the program, mohyuddin said the programme would have a modern webbased outreach and communication module in addition to printed material that would help Smes in adopting best energy usage practices. He indicated that the programme was economically and financially viable with an estimated rate of return of about 71 per cent in payback period of about 1.4 years. in addition, the programme would encourage investment banks and leasing companies to enter in this untapped market, he underlined.
Philanthropists should play their role: lCCi seminar LAHORE: All segments in general and the philanthropists in particular should act in unison to play their due role for ensuring all facilities from education-to-job-placement to disabled persons for making them an active member of the society. This was the upshot of speeches delivered at a seminar “Look Ability Not Disability” jointly organised by rotary Club Lahore Garrison, Hope rehabilitation Society and Al mustafa Welfare Society at Lahore Chamber of Commerce and industry. LCCi Acting President kashif Younis meher was the Chief Guest while rehabilitation experts Dr khalid Niazi, Dr khalida Tareen, Dr Shazia mqbool, President Al mustafa Welfare Society mian khalid Habib elahi, kh Asif, ms Shaheen Ahmad, and others also addressed the function. STAFF REPORT
seCP seeks comments on thermal energy order draft ISLAMABAD: Securities and exchange Commission of Pakistan (SeCP) has developed and approved draft Thermal energy (Cost Accounting records) Order, 2011, for the company engaged in production, processing and generation of thermal power. Companies engaged in generation of thermal energy are required to maintain such cost accounting records, including all particulars relating to utilisation of material, labour or other inputs of items of cost as would be necessary. STAFF REPORT
tajik bankers visit sbP to study mobile financial services KARACHI: A six-member delegation of National Bank of Tajikistan visited State Bank of Pakistan (SBP) on weeklong study tour starting from 28th November to 2nd December, central bank said. Facilitated by SBP’s Development Finance Group, tour was sponsored by m/s Deutsche Gesellschaft fürinternationale Zusammenarbeit (GiZ), German international Cooperation, under its “regional Program in Support of microfinance in Central Asia” to draw up a roadmap for starting mobile financial services in Tajikistan. STAFF REPORT
bajwa, new Ceo bank al-falah
KArACHI STAFF REPORT
P
ANiC selling was witnessed on the karachi stock market Friday in scrips without exception after what the analysts said the American Senate nodded to a Democrats backed bill proposing the blockade of counterinsurgency aid to Pakistan. “Panic selling witnessed at kSe in scrips across the board after US Senate approved blocking counterinsurgency aid to Pakistan,” said Ahsan mehanti, director at Arif Habib investments. The day witnessed the benchmark 100-share index nose-diving by 185.16 points to close at 11, 372.21 points against 11,557.37 points of Thursday. The intraday high and low was, respectively, recorded at 11,557.37 and 11,247.11 points. Whereas the trading volumes remained closed slightly higher at
36.050 million shares compared to the record low of 27.472 million shares of the previous day. The trading value also set in the green zone and increased to rs1.9 billion against the previous day’s rs1.259 billion. “The index recovered from intraday lows with thin activity,” said mehanti. Of the total 320 traded scrips, 64 advanced, 156 declined and 100 remained unchanged. The market capitalisation closed as low as rs2.961 trillion against
rs3.00 trillion on Thursday. The kSe-30 index also lost 225.05 points to close at 10, 594.82 points compared to 10,819.87 points of the previous session. The intraday high and low for the 30 index was recorded at 10,813.04 and 10,491.69 points. “institutional support continued in oversold scrips despite uncertain Pak-US relations as Pak Army reacts to NATO attacks on Pak border check posts on November 26,” the analyst
Ahsan mehanti said. Fauji Fertiliser Bin SOPT was volume leader of the day by counting its traded shares at 3.282 million with its share price closing lower at rs52.95 after opening at rs54.19. Other best performers included National Bank, Fauji Fertiliser XD, Jahangir Siddiqui Company, Fatima Fertiliser Company, PTCL, Lotte PakPTA, Oil and Gas, NiB Bank Limited and Azgard Nine.
KARACH: Atif Bajwa has replaced Sirajuddin Aziz as the chief executive officer and president of Bank Al-Falah Limited, Profit has learnt. “Atif Bajwa has joined Bank Alfalah as CeO and President,” said a source in banking industry. Website of the bank also authenticated the report as it shows Bajwa joining the bank’s seven-member Board of Directors chaired by Sheikh Hamdan Bin mubarak Al Nahayan. Other board members include Abdulla Nasser Hawalileel Almansoori, Abdull khalil Al mutawa, khalid mana Saeed Al Otaiba, ikram Ul-majeed Sehgal and Nadeem iqbal Sheikh. STAFF REPORT
lse announces ashura holidays LAHORE: Lahore Stock exchange (LSe) will remain closed on monday and Tuesday for Ashura muharram-ul-Haram. LSe management issued a notification to all its members on Friday. STAFF REPORT
Profit for e-paper_Layout 1 12/3/2011 12:51 AM Page 5
Saturday, 03 December, 2011
Countries in Central Asia and the South Caucasus should reduce red tape, increase agricultural productivity, and invest in education, infrastructure and technology
news
un secretary-general, ban ki-moon
05
Sanctions bite in Syria as oil giant Shell pulls out SANA said Syria had suspended a free trade zone pact with Turkey in retaliation for Ankara's actions. Turkey, formerly a staunch ally of Assad, has also suspended financial credit dealings with Syria and frozen Syrian government assets, joining the Arab and Western campaign to isolate Assad. in Paris, French interior minister Claude Gueant said on Friday he had taken steps to protect members of Syria's National Council in Franceafter recent threats. "Given the troubles in Syria, we have seen a certain number of threats on Syrian opponents," he told a press conference. "measures to protect them have been taken." After a meeting with SNC chairman Burhan Ghalioun earlier this month, French Foreign minister Alain Juppe said Paris considered the group to be the legitimate partner with which it wanted to work.
BeIruT
r
REUTERS
OYAL Dutch Shell said on Friday it would cease operations in Syria to heed new european Union sanctions against Damascus, deepening the international isolation of President Bashar al-Assad imposed over his violent crackdown on popular unrest. in the latest bloodshed, Syrian army defectors killed eight Air Force intelligence personnel in an attack on their base in the north of the country, according to an opposition group. The incident suggested that armed deserters are turning increasingly from defending civilian protesters against violent repression by Assad's security forces to an offensive of ambushes and roadside bombs, raising the specter of civil war. Western and Arab countries have been intensifying punitive sanctions to press Assad to carry out pledges to halt bloodshed by withdrawing forces from restive cities, starts transition talks with the opposition and admit Arab League observers. royal Dutch Shell said it would shutting down in Syria to heed a batch of eU sanctions slapped on Syria's economically vital oil and financial sectors the day before. A Shell spokesman said: "Our main priority is the safety of our employees ... We hope the situation improves quickly for all Syrians." The eU on Friday extended sanctions to three Syrian oil concerns, including the state-owned General Petroleum Corporation (GPC) and Syria Trading Oil (Sytrol), to crank up the financial pressure on the Assad government. The three oil concerns were among 11 entities and 12 Syrian leadership figures added to an eU blacklist now aimed in part at bringing the Syrian ventures of oil giants to a halt. royal Dutch Shell was the first to bow out. U.N. High Commissioner for Human rights Navi Pillay called for international action to protect Syria's civilian population from "continual ruthless repression
that, if not stopped now, can drive the country into a full-fledged civil war". more than 4,000 people have been killed, including 307 children, in the military crackdown on unrest since march and more than 14,000 people are believed to be held in detention, she told an emergency session of the U.N. Human rights Council. "in light of the manifest failure of the Syrian authorities to protect their citizens, the international community needs to take urgent and effective measures to protect the Syrian people," Pillay said in Geneva. "All acts of murder, torture and other forms of violence must be immediately stopped." She voiced disquiet at reports of increased armed attacks by the opposition forces, including the so-called Free Syrian Army, against the Syrian military and security apparatus. The British-based Syrian Observatory for Human rights and other activists said at least 20 civilians were killed by Syrian security forces across the country on Thursday, mainly in the provinces of Hama and Homs - epicen-
ter of the anti-Assad revolt. The Observatory said the attack on Air Force intelligence took place in idlib province, between the towns of Jisr al-Shughour and the mediterranean port of Latakia. "A clash ensued for three hours which led to the death of at least eight members of the Air Force intelligence," it said. The Syrian state news agency SANA said security forces "on Thursday killed 5 armed men and arrested 35 others during a clash with armed terrorist members in the Hama countryside". it said dozens of kalashnikov assault rifles, shotguns, grenades and explosives were seized.
OPPOSITION ORGANISING The anti-Assad Syrian Free Army has formed a military council of nine defecting officers. They issued a declaration pledging to "bring down the regime and protect citizens from the repression ... and prevent chaos as soon as the regime falls". The main civilian opposition
group, the Syrian National Council, held a first meeting with Free Army leaders in istanbul this week. A Council spokeswoman said the Council only supports a peaceful uprising and the Free Army is not its armed wing. Syrian armed forces defectors began organizing three months ago and now number around 10,000, say opposition sources. They cite increased operations in the last ten days by defectors and insurgents in the central regions Hama and Homs, idlib on the border with Turkey, and the southern province of Deraa where armored convoys have been attacked. U.S. Vice-President Joe Biden, on a visit to Ankara, praised Turkey for being "a real leader" on the Syrian crisis. "We also welcome the government's giving space in Turkey to the political opposition," he told Hurriyet newspaper. "The United States' position on Syria is clear. The Syrian regime must end its brutality against its own people and President Assad must step down so a peaceful transition that respects the will of the people can take place," Biden said.
RUSSIAN EXCEPTION The expanded eU sanctions list encompasses media companies and firms the eU says supply sensitive equipment to a research centre that supports Assad's suppression of dissent. The United States and the Arab League have also imposed an array of economic sanctions and banned travel by some Syrian ViPs. But russia has opposed further sanctions and defended its right to sell arms to Syria. The interfax news agency on Thursday reported the delivery of russian anti-ship cruise missiles to Syria, a few days after a United Nations commission of inquiry called for an arms embargo on Damascus. russia traditionally uses what influence it still has in the middle east as a lever in diplomatic maneuvering with europe and the United States. Syria is also one of its major arms clients. russia and China, which both have oil concessions in Syria, teamed up in October to veto a Western-backed Security Council resolution condemning Assad's government for the bloodshed.
CORPORATE CORNER hrithik roshan agrees on becoming rado global ambassador
bill and Melinda gates foundation announce grants
KARACHI: Cameras are ready to roll on a new rado global ambassadorship featuring, Hrithik roshan. The Bollywood actor mirrors the Swiss brand’s mastery of breaking new ground and its uncompromising commitment to excellence. Commenting on the association, Hrithik roshan says, “i am proud to represent rado, a brand that is futuristic and has pioneered the art of exploring innovative designs, materials and technology. With rado, i am hoping to find out more about the true essence of time.” PRESS RELEASE
LAHORE: The Bill and melinda Gates Foundation today announced new grants as part of its ongoing support to Pakistan’s polio eradication programme and to assist the Sindh government’s response to this year’s floods. The grants will fund initiatives aiming to provide assistance to polio survivors as well as address the urgent needs of families affected by floods in parts of Sindh province. The foundation will continue to work with the government of Pakistan and other partners, including WHO, UNiCeF and rotary international. PRESS RELEASE
intel celebrates 40 years of digital revolution
tetra laval gets recognised as one of the world’s most innovative companies LAHORE: Tetra Laval, Tetra Pak’s parent company, has been named as one of the world’s 100 most innovative companies in Thomson reuters’ list of Top 100 global innovators. The recently launched programme honours companies and institutions that lead the world in innovation, driving inventions for economic growth, influencing future technologies and shaping the future. Tetra Laval is recognised alongside world changing innovators that include microsoft, Apple inc, Procter and Gamble and Sony Corporation. PRESS RELEASE
devices. PRESS RELEASE
giga investment brings sharjah auto Park project in uae
KARACHI: To strengthen the Pakistan-UAe friendship, Giga investment is delighted to bring Sharjah Auto Park project in UAe. This project will provide promising opportunities to Pakistanis in the areas related to automobile industry. Celebrating the 40th anniversary of UAe, Giga investment announced Sharjah Auto Park as a gift to the Pakistani Business Community which will be the first of its kind in the World. PRESS RELEASE
inaugurated the store. managing Director Bata Pakistan, mr muhammad imran malik, along with other Bata officials and guests also marked the occasion. The store offers a complete variety of shoe brands and accessories along with valuable giveaways and gift-hampers on purchase of rs1,000 or above. PRESS RELEASE
KARAChI: Mr Matt Cronje, CEO Emaar Pakistan (2L) at Emaar Pakistan’s cubicle at UAE Expo 2011. PRESS RELEASE
bata launches another flagship store
KARACHI: 40 years ago, intel Corporation introduced the world’s first commercially available microprocessor – the intel® 4004 – triggering the start of the digital revolution. microprocessors are the “brains” inside computers, servers, phones, cars, cameras, refrigerators, radios, TVs and many other everyday
LAHORE: Bata Pakistan has launched a new Flagship store at mehmood Ali kasuri road, near Hussain chowk, gulberg-iii, Lahore. Group managing Director, mr Fernando Garcia,
ISLAMABAD: Artists perform short play during the seminar to celebrate World AIDS Day 2011 organised by national AIDS control programme ministry of inter provincial coordination, at a local hotel. PRESS RELEASE
Profit for e-paper_Layout 1 12/3/2011 12:52 AM Page 6
Saturday, 03 December, 2011
06 Markets top 10 sectors
24% 09% 35% 10% 08%
Chemicals
01% 07% 02% 03% 01%
General Industrials
Construction & Materials Electricity Banks
Fixed Line Telecommunication
Oil & Gas
Financial Services
Personal Goods
Equity Investment Instruments
STOCK MARKET HIGHLIGHTS Index 11372.21 2907.27 2567.66
KSE-100 LSE-25 ISE-10
Change -185.16 -52.89 -44.6
Volume 30,621,858 1,361,747 13,950
Market Value 1,880,042,043 41,980,363 784,930
top 5 perForMers sector wise
Major Gainers Company Colgate Palmolive UniLever Pak Ltd. Bata (Pak) Ltd. Siemens Pak AL-Ghazi Tractors
Open 580.00 5474.80 760.26 725.86 158.38
High 608.90 5698.00 797.00 750.00 166.29
Low 575.00 5255.00 733.00 701.00 160.10
Close 603.29 5495.80 778.74 743.33 165.28
Change 23.29 21.00 18.48 17.47 6.90
Turnover 114 33 379 303 11,090
2689.72 416.24 263.14 164.26 245.50
2695.00 419.45 262.51 164.11 246.99
2556.00 401.15 252.40 156.50 236.85
2577.17 406.82 253.80 158.73 240.06
-112.55 -9.42 -9.34 -5.53 -5.44
161 30,904 181,320 2,385,654 280,160
Volume Leaders Fauji Fert National Bank Fauji FertilizerXD Jah.Sidd. Co. Fatima Fert.Co.
54.19 41.85 164.26 5.61 23.00
54.11 42.00 164.11 5.62 23.08
51.75 39.78 156.50 5.37 22.21
52.95 40.37 158.73 5.44 22.80
-1.24 -1.48 -5.53 -0.17 -0.20
3,282,674 2,469,819 2,385,654 2,341,688 2,047,286
Bullion Market Gold 24K Gold 22K Silver (Tezabi) Silver (Thobi)
Per Tola (PKR) 58,440.00 51,608.00 1,110.00 1025.00
Per 10 Gm (PKR) 50,156.00 44,245.00 952.00 880.00
Per Ounce US$ 1,754.00 – 35.05 –
high
loW Current
Change
VoluMe
409.80 119.90 22.06 7.00 92.00
402.00 115.40 21.15 6.87 90.05
407.34 119.18 22.06 6.95 90.91
5.13 3.19 0.00 0.06 0.55
94,034 1,798,600 289 278,943 26,862
29.00 69.39 153.64 37.50 1.50
28.15 66.50 152.50 35.85 1.50
28.87 69.39 153.00 36.45 1.50
0.82 0.00 -0.64 0.56 0.01
1,689,569 10 1,804 101,880 2,982
Oil and Gas Attock Petroleum Attock Refinery Burshane LPG Byco Petroleum Mari Gas Co.
402.21 115.99 22.06 6.89 90.36
Arif Habib Co SD Biafo Ind. Clariant Pakistan Dawood Hercules Descon Chemical
28.05 69.39 153.64 35.89 1.49
20.00 1.40 8.61 30.05 10.24
20.79 1.46 8.79 31.00 10.10
20.00 1.35 8.63 29.60 10.00
20.00 1.35 8.66 30.05 10.00
0.00 -0.05 0.05 0.00 -0.24
1.80 52.69 14.27 7.61 19.94
25.82 3.60 40.34 7.70 20.50
Ados Pakistan AL-Ghazi Tractors Ghandhara Ind. Hinopak Motor K.S.B.Pumps
88.9804 139.4945 1.1422 119.9455
5.25 161.88 7.49 78.54 26.95
1.97 53.00 14.30 7.98 20.53
1.83 51.02 13.27 7.70 19.90
1.83 53.00 14.13 7.87 20.44
0.03 0.31 -0.14 0.26 0.50
3,101 64,581 2,536 903 1,419,943
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
International Oil Price WTI Crude Oil
$100.93
Sell 89.30 121.06 140.47 1.1413 89.48 11.51 24.33 23.81 93.21
Brent Crude Oil
$108.99
Atlas Battery Ltd. Bal.Wheels Dewan Motors Exide (PAK) General Tyre
170.00 23.60 2.20 177.10 16.00
27.10 4.10 40.50 8.59 20.50
25.15 3.26 40.01 7.70 19.48
25.90 3.90 40.50 8.43 20.50
0.08 0.30 0.16 0.73 0.00
8,219 151,477 2,251 3,414 125
Dewan Sugar Engro Foods Ltd. Habib Sugar Mills Habib-ADM Ltd. Ismail Industr
2.25 23.95 27.23 13.30 65.00
2.49 24.25 27.48 13.69 64.99
5.99 161.99 7.95 79.95 26.95
4.60 158.50 6.66 74.62 25.61
172.89 23.70 2.20 178.50 16.83
169.00 23.70 2.05 173.00 15.71
110.49 111.43 150.02 150.00
AL-Abid Silk Mills Diamond Ind. Hussain Industries Pak Elektron Ltd. Tariq GlassXD
23.34 8.20 3.90 4.20 8.65
23.60 9.03 3.90 4.40 8.89
(Colony) Thal Ali Asghar Textile Amtex Limited Artistic Denim Mills Azam Textile
1.40 0.56 1.29 20.10 1.35
1.40 0.55 1.33 21.07 1.39
28.90 3.50 121.61 20.25 126.68
AHCL-DEC ANL-DEC ATRL-DEC DGKC-DEC ENGRO-DEC
28.60 3.47 119.49 20.25 123.99
5.25 158.63 6.66 74.65 26.95
171.50 23.70 2.20 177.10 16.80
109.00 111.18 145.05 145.58
Abbott Laboratories Ferozsons (Lab) Ltd. GlaxoSmithKline Pak. Highnoon (Lab) IBL HealthCare XD
100.37 76.20 67.51 28.20 12.74
101.60 76.90 68.00 29.25 12.50
0.00 -3.25 -0.83 -3.89 0.00
30 730 2,005 809 45
1.50 0.10 0.00 0.00 0.80
2,700 500 213 38 1,313
0.69 -4.44
1,170 203
P.T.C.L.A Pak Datacom LtdXD Telecard Limited Wateen Telecom Ltd WorldCall Telecom
10.80 34.50 0.96 1.85 1.11
2.25 23.98 27.40 13.19 64.97
0.00 0.03 0.17 -0.11 -0.03
3,000 19,195 179,447 1,775 1,504
23.34 8.20 3.80 4.20 8.65
23.34 8.20 3.90 4.25 8.65
0.00 0.00 0.00 0.05 0.00
2 2 6 8,650 10
1.40 0.55 1.26 20.15 1.16
1.40 0.55 1.30 20.98 1.35
0.00 -0.01 0.01 0.88 0.00
511 500 1,802 13,064 52
28.00 3.36 116.55 19.76 121.00
28.21 3.46 117.30 20.09 122.70
-0.69 -0.04 -4.31 -0.16 -3.98
220,500 629,500 165,000 55,000 454,500
100.00 76.31 68.00 29.25 12.30
-0.37 0.11 0.49 1.05 -0.44
2,094 1,113 10,200 7,001 14,060
100.00 75.99 67.99 28.00 12.00
10.95 34.50 1.00 2.00 1.17
10.70 34.00 0.89 1.82 1.05
10.74 34.50 0.90 1.88 1.06
-0.06 0.00 -0.06 0.03 -0.05
873,286 50 179,056 2,098,153 74,429
0.28 36.50 0.61 1.63 41.70
0.37 36.55 0.67 1.68 41.90
0.37 36.02 0.60 1.62 41.26
0.37 36.08 0.64 1.65 41.30
0.09 -0.42 0.03 0.02 -0.40
9,500 851,435 98,815 25,551 54,238
60.24 10.31 5.57 11.87 29.53
59.20 10.45 5.75 11.98 29.90
59.00 10.20 5.46 11.66 29.46
59.00 10.28 5.55 11.80 29.50
-1.24 -0.03 -0.02 -0.07 -0.03
6,927 25,619 422,339 805,934 182,086
Electricity Genertech Hub Power Co. Japan Power K.E.S.C. Kot Addu 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 2.20 23.63 27.25 13.15 62.01
Fixed Line Telecommunication
Beverages Murree Brewery Co. Shezan Int’l
VoluMe
Pharma and Bio Tech
Automobile and Parts Buy 88.80 119.07 138.26 1.1267 86.76 11.21 24.02 23.54 90.14
Change
Future Contracts
General Industrials Cherat Packaging ECOPACK Ltd Ghani Glass Ltd MACPAC Films Merit Pack
loW Current
Personal Goods 1 6,507 1,100 414 9,012
Construction and Materials Al-Abbas Cement Attock Cement Berger Paints Cherat Cement D.G.K.Cement
high
Household Goods
Industrial metals and Mining Crescent Steel Dost Steels Ltd. Huffaz Seamless Pipe Int. Ind.Ltd. Inter.Steel Ltd.
oPen
syMbol
Food Producers
Industrial Engineering
Interbank Rates US Dollar UK Pound Japanese Yen Euro
oPen
Chemicals
Major Losers Nestle PakistanXD Attock Petroleum National Refinery Fauji FertilizerXD P.S.O.
syMbol
Adamjee Ins Ask.Gen.Insurance Atlas Insurance Cres.Star Insurance EFU General Ins
43.20 8.00 36.50 2.00 35.80
43.78 8.50 36.75 2.20 36.00
42.12 8.00 35.99 2.00 34.46
42.76 8.42 36.51 2.00 35.96
-0.44 0.42 0.01 0.00 0.16
13,373 1,218 1,993 1,065 747
13.50 1.40 65.53
14.50 1.40 65.53
0.00 0.00 0.00
2 1 157
0.32 16.30 15.17 1.00 0.80
0.02 0.00 -0.02 -0.25 -0.01
12,419 101 36,007 5,008 90,802
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
0.30 16.30 15.19 1.25 0.81
0.33 16.79 15.59 1.00 0.96
0.27 16.30 15.00 0.80 0.70
Equity Investment Instruments 1st.Fid.Leasing Mod Allied Rental Mod Atlas Fund of Fund B.R.R.Guardian Cres. Stand.Mod
1.63 21.64 5.78 2.24 0.42
1.60 21.64 5.90 2.32 0.44
1.60 20.90 5.78 1.92 0.37
1.60 21.64 5.85 2.24 0.44
-0.03 0.00 0.07 0.00 0.02
6,000 125 250,001 101 503
12.21 31.88 7.00 13.51 66.00 1.36 62.75 3.70 11.11 8.01 23.50 58.00 28.10 15.26 7.96 1.92 10.20 0.80 1.74 1.01 17.00 18.70 16.75 67.05 24.87
13.00 31.91 7.00 14.51 66.59 1.41 63.95 4.05 11.11 8.30 24.00 58.00 28.10 15.75 7.96 2.00 10.53 0.82 1.75 1.05 17.20 18.90 16.75 69.58 26.16
-0.01 1.16 0.00 0.03 -2.12 -0.01 -0.18 -0.05 -0.93 -0.20 0.00 -1.69 -1.30 -0.25 0.00 -0.01 0.09 0.00 -0.12 0.04 -0.04 -0.32 -1.00 -0.12 0.00
1,003 1,800 210 507 657 56,145 4,141 70,727 501 5,011 1,500 5,002 1,597 6,002 1 22,689 2,038,918 3,015 277,500 316,016 42,654 5,756 500 540 489
Miscellaneous Century Paper Pak Paper Prod. Johnson & Philips P.N.S.C. Pak.Int.Con. SD TRG Pakistan Ltd. Murree Brewery Pak Elektron Ltd. Singer Pakistan Tariq Glass Ind. Grays of Cambridge Pak Tobacco Co. Shifa Int.Hospitals Hum Network Ltd. Media Times Ltd P.I.A.C.(A) P.T.C.L.A Telecard Limited Wateen Telecom Ltd WorldCall Telecom Sui North Gas Sui South Gas American Life EFU Life Assur AKD Capital Ltd.
13.01 30.75 7.00 14.48 68.71 1.42 64.13 4.10 12.04 8.50 24.00 59.69 29.40 16.00 7.96 2.01 10.44 0.82 1.87 1.01 17.24 19.22 17.75 69.70 26.16
13.00 31.94 8.00 14.51 69.20 1.45 64.78 4.60 12.04 9.40 24.00 58.01 30.50 16.00 8.90 2.07 10.58 0.87 2.00 1.17 17.48 19.00 16.75 70.00 26.16
Mutual Funds 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
501.2900 114.7196 103.6501 100.6900 519.3500 519.0900 516.9700 453.1500 82.9800
501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
naV 501.2900 111.8516 102.6136 100.6900 514.2100 513.9500 516.9700 444.2600 81.3500
fund
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
100.2768 87.0103 97.6745 101.8987 112.3545 121.5000 104.1200 0.0000
100.2768 85.3042 95.2922 100.8898 109.6141 111.5200 96.5000 0.0000
naV 100.2768 85.3042 95.2922 100.8898 109.6141 117.3900 101.5800 100.1087
Profit for e-paper_Layout 1 12/3/2011 12:52 AM Page 7
Saturday, 03 December, 2011
We want to connect Pakistan with rest of the world
news
07
Wateen Ceo, naeem Zamindar
banks’ Micro-credit
Outreach struggling at 7pc KArACHI
S
STAFF REPORT
PreAD of micro-credits by banks in Pakistan is lagging behind at a meager seven per cent when juxtaposed with the targeted size of the market, it emerged on Friday. Of the targeted 30 million borrowers, microfinance facility had so far reached only two million creditors that constitute seven per cent of the total while the remaining 93 per cent still lack small credits. This was stated by Governor State Bank of Pakistan (SBP) Yaseen Anwar while delivering his inaugural speech at the 5th Pakistan microfinance Country Forum held at a local hotel. “Currently, micro-credit is reaching to only two million borrowers whereas the size of the target market is estimated to be 25 to 30 million,” the SBP governor said. He said Pakistan had one of the lowest financial penetration levels in the world with 56 per cent adult population totally excluded and another 32 per cent informally served. “i would like to reaffirm the need for microfinance development for fostering a pro-poor and sustainable development in Pakistan,” he said. Anwar said the microfinance sector needed to discontinue dependence on external catalysts and focus on improving its financial and operating performance by setting targets for borrowers, savers, portfolio quality, and self-sufficiency. “Considerable work still needs to be undertaken to ensure that all microfinance banks and institutions are acting responsibly. it is also important for the industry to continue to innovate, create new partnerships with the growing branchless banking networks, and to evolve and provide financial access to the un-banked,” he said. On its part, the governor said, central bank had laid down a detailed strategy to promote sustainable growth of the microfinance sector in its new microfinance Strategic Framework 2011-15, which would foster a pro-poor and sustainable development in the country. He said the strategy’s effectiveness and success hinges on growth dynamism fundamentally coming from microfinance operators themselves. “State Bank will continue to work with all stakeholders to support this nascent industry, which is expected to be a key driver in expanding financial services to all over Pakistan.” “Though early successes in microfinance industry were laudable, they had yet to create a major dent in the widespread financial exclusion,” he said. Governor State Bank said regulator would issue regulatory guidelines to mFBs for the up-scaling of loans and develop a reporting structure to assess the geographic distribution of microfinance growth. Anwar
said the success of microfinance in Pakistan had widely been acknowledged by the international community. “Our microfinance regulatory framework has been ranked globally at the top in 2010 and 2011 by the independent economic intelligence Unit, an arm of Uk’s ‘The economist’ magazine.” evolution or trajectory of microfinance had so far remained positive despite many challenges, he said adding presently nine mFBs were operating in Pakistan. SBP Governor said recent development in mobile phone banking was highly encouraging. expansion in the retail network of microfinance had been brought about overwhelmingly from agents and mobile phone channels and within a span of just two years there were now almost 18,000 branchless banking outlets
Currently, micro-credit is reaching to only two million borrowers whereas the size of the target market is estimated to be 25 to 30 million yaseen anwar SBP Governor surpassing the 10,000 conventional bank branches. He said combined daily transaction volume of the two prominent branchless banking models ‘easypaisa’ and ‘Omni’ now averaged over 175,000, with an average size of rs3,700. As per an independent World Bank - CGAP study, the small size of the transaction indicated enhanced access to finance by the poor and marginalised people, an important milestone for financial inclusion, he added. Anwar lauded the role of UkAid and Asian Development Bank in development of microfinance
in Pakistan saying under programmes sponsored by these donors, a number of market interventions were managed by State Bank. He said institutional Strengthening Fund (iSF), a Uk £10million grant facility launched in December 2008, had so far approved rs522 million for 11 microfinance providers including top and middle tier mFBs and mFis. Under arrangements, iSF would support 15 projects for investment in Hr, iT, product development, risk management systems, business plans and branchless banking development. Under iSF, Pakistan microfinance Network (PmN) was also provided funding support to conduct research and develop industry’s infrastructure such as the testing of pilot microfinance Credit information Bureau (mCiB) in Lahore. “iSF will consider how to further support important systemic areas such as upgrading CiB to the national level,” he added. Governor said microfinance Credit Guarantee Facility (mCGF) had thus far mobilised commercial funding of rs3225.0 million for four microfinance providers for onward lending to around 200,000 new micro borrowers. mCGF, he said, would aim at raising commercial debt from non-bank sources, diversifying sources of commercial capital for microfinance providers, adding facility would be instrumental in mainstreaming microfinance providers and resolve some of its funding constraints on a permanent basis. Similarly, Financial innovation Challenge Fund (FiCF), a Uk £10million innovation grant facility, was launched by SBP in may 2011 to provide grants to foster innovation and test new markets, lower cost of delivery, enable systems and procedures to be more efficient and provide new ways of meeting the larger demand for financial services. He said banks, public sector institutions, microfinance institutions, government agencies, pension funds, and academic institutions were invited to apply for the promotion of financial inclusive G2P payments through bank accounts at branchless banking outlets and also provide other financial services to the G2P payments beneficiaries. “A number of applications have been received from these institutions, which are now being evaluated for the first round of G2P payments challenge,” he added. He disclosed that SBP had started a pilot Financial Literacy Program (FLP) with the private sector as an implementing partner. The program is the first ever initiative to promote financial literacy among the general public at the national level, he said adding the dissemination would be made through TV channels, regional radio, print media and mobile network operators.
singapore forced resignation of nib Ceo for ‘mismanagement’ incurring for last couple of years,” said an insider. Although unable to elaborate, the source claimed that ISMAIL DILAWAR former president had also developed some tussle with eCeNT resignation of the founding president the bank’s Singaporean management. Some facts and and chief executive of NiB Bank, khawaja iqbal figures, made available to Profit, put enough weight Hassan, was forced and not voluntary, Profit behind the sources’ claims on khawaja’s has learnt. it was 23rd of last month when the mismanagement. ever since the bank had acquired bank informed its dividends-starved controlling shares in the Pakistan shareholders at the country’s stock industrial Credit and investment Sources close to the exchanges in karachi, Lahore and Corporation (PiCiC) and PiCiC bank claimed the islamabad of the departure of khawaja Commercial Bank in June 2007, its from his long-held dual post. khawaja, banker was shown the profits remained a rare possibility. who holds about 0.40 per cent or According to NiB’s Annual report door by the bank’s 16.083 million shares, in the bank for 2010, the bank’s losses before would, however, continue to serve as taxation were increasing and had Singaporean parent one of the bank’s seven-member skyrocketed to rs12.622 billion in company, owing to his Board of Directors that include Teo 2010 from rs710 million in 2007. Cheng San, roland as director and report shows that the bank incurred ‘mismanagement’ and the chairman, Syed Aamir Zahidi, Tejpal losses after taxation of rs710 million resultant Singh Hora, Asif Jooma, muhammad in 2007 and rs10.998 billion in Abdullah Yusuf and Najmus Saquib 2008 while 2009 was an exception in losses Hameed as directors. which the bank managed to earn a incurred Board was quick to designate a sitting profit before taxation of rs644 by the director, Aamir Zahidi, as acting million. “The bank’s share price that president and Ce of the bank. NiB’s ranged above rs30 has now come bank website, however, still shows down to rs1.2,” said a small khawaja serving the bank in the of the bank. khawaja iqbal shareholder capacity of president and CeO. He said the bank’s persistent losses khawaja is said to have, apparently, Founding president NIB had hit the small shareholders hard resigned voluntarily but sources close that were holding 16 to 20 per cent to the bank claimed the banker was shares of the bank. “We are broke after shown the door by the bank’s Singaporean 74 per cent such a huge decline in the bank’s shares. “even PiCiC’s shareholding parent company, m/s Temasek Holdings, share was priced at rs70 but it buried after merger with owing to his “mismanagement” and the resultant losses NiB Bank,” the shareholder complained. The investor said incurred by the bank over past two to three years. the bank, which happens to be one of the 11 primary “mismanagement can be the appropriate term to use dealers of State Bank of Pakistan for current financial year, here actually he (khawaja) has been forced to resign for had also failed to announce any dividends for its his failure to curb huge losses the bank has been shareholders at the country’s bourses for years.
KArACHI
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inflation at 23-month low in november KArACHI STAFF REPORT
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AkiSTAN’S consumer price index (CPi) inflation surprisingly fell to 10.19 per cent down during last month (November 2011) compared to the previous month’s CPi of 10.97 per cent. “This has happened after 23-months as last time such a low number was seen in December 2009,” observed analysts at Topline Securities. On mom basis, they said, inflation number after a gap of 5-month came below one per cent to stand around 0.3 per cent, while 5mFY12 CPi average stood at 11.1 per cent, down 300 basis points (bps) as compared to 14.1 per cent in the corresponding period last year. “The decline is primarily attributed to high base effect of last year along with effects of eid and Sindh floods,” said Nauman khan. Analysts said in FY12 inflation average would range between 11.5 and 12 per cent below the government target of 12 per cent. State Bank of Pakistan, in its monetary policy decision, announced on Wednesday, for the months of December and January, said inflation in Pakistan would remain in double digits during current fiscal year. Citing massive budgetary borrowings by the cash-strapped government as a major reason, central bank said inflation was unlikely to reduce to single digits even in the financial year 2013.
wheat support price
Country’s wheat uncompetitive in international market KArACHI
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ghULAM ABBAS
HiLe export of wheat has already been halted, despite huge stocks in the country, due to stiff competition outside the country, fresh increase in wheat support price will further make agricultural products uncompetitive in the international market. interestingly, despite cheaper wheat available outside the country, people would be consuming costlier products despite a surplus of 4-5 million tonnes of wheat in the country. Fresh increase in support price was also likely to lead to an increase in prices of essential commodities and inflation, sources told Profit. it is worth mentioning here that government has recently increased wheat support price for new crop by 10.5 per cent to cover increased cost of production. This was the third augmentation in wheat price since current government took over in march 2008. Although provincial governments have reservations over the decision made in a meeting presided over by Prime minister Yousaf raza Gilani, government had decided to fix wheat support price for next year at rs1, 050 per 40 kg for (procurement) by Pakistan Agricultural Storage and Supplies Corporation. Previously, the price was rs950 per 40kg. even though the fresh move would support growers in covering increased cost of production under shortage and costly availability of fertiliser, government should rather have pondered over other ways to reduce cost of production like reduction in
input prices, particularly that of urea. Doing so wheat could be produced and exported at competitive prices. According to official sources of Wheat Traders Association of Pakistan (WTAP) the export cost for Pakistani Wheat was over $305 per mT FOB karachi. Fresh jump in support price will further increase this cost making the country’s product more uncompetitive in the global market where indian and black sea prices, consisting of russian/Ukraine origin, were available at around $240 to $260 per mT. The drastically reduced price of the product in international market has made Pakistani export not only difficult but nearly impossible in world’s markets. The country’s export of wheat has halted after the export of around two million tonnes after the removal of three years’ ban over its exports due to an increased competition in international market. However, despite the expected huge stock by next crop, and zero export, domestic price of the commodity was likely to increase after the increase in support price, sources claimed. Besides, there would also be storage issue for the stock as the country has limited storage facilities. Sources in the wheat export association suggested that a ‘Comprehensive Food Board’ should be made to resolve food related issues as existing organisations could not to formulate and apply a balanced food strategy. The country still has room to export almost over 1 million tonnes before the next crop. The country’s wheat was aimed to be sold in the markets of Africa, middle east Bangladesh and others.