Over 0.7m visitors eyed as KCCI launches 10th My-Karachi moot KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has launched its 10th Annual International My-Karachi, Oasis of Harmony Exhibition 2013 scheduled to be organized from 5-7 July here at Karachi Expo Centre. Siraj Kassam Teli, Chairman Businessmen Group and former President KCCI, told briefing that the KCCI’s My-Karachi Oasis of Harmony Exhibition, since last one decade, was depicting the strong image of Karachi as economic, financial, commercial and industrial hub of Pakistan. He said in My-Karachi – Oasis of Harmony as usual, domestic as well as foreign business communities were participating to synchronize their trades. President KCCI Muhammad Haroon Agar said the vision and prime objective to organize this regular event was to project and promote the true image of Pakistan with all its potentials and strengths in general and Karachi in particular. STAFF REPORT Jewelry exports surge 138% in 8-month of FY13 ISLAMABAD: The exports of gems and jewelry in the country has witnessed sharp increase of 16.99 percent and 138.73 percent respectively during first eight months of current financial year against the same period of last year. The jewelry exports during the period under review were recorded at US$ 1.21 billion while during last year, the exports stood at US$ 506.3 million. The gems exports stood at $2.74 million during July-February 2012-13 against the exports of $2.343 million during July-February (2011-12). According to data of Pakistan Bureau of Statistics (PBS), the jewelry exports of the country on month on month basis decreased by 48.07% and increased by 72.22% during February 2013 when compared February 202 and January 2013 respectively. The jewelry exports, decreased from $147.969 million in February 2012 to $$76.841 million in February 2013. APP 01 ISLAMABAD ONLINE D IRECTOR General Geological Survey of Pakistan (GSP) Dr Imran Ahmed Khan has op- posed the construction of up- stream mega projects like Bhasha dam on Tarbela that is located in zone-4 that is vulnerable to severe earth- quakes. DG GSP made these remarks while briefing the Senate standing committee on Petroleum and Natural resources with Sen- ator Muhammad Yousaf in the chair. The DG said that it is feared that in fu- ture an earthquake with magnitude of 9 may hit the zone-4 where Tarbela dam is located and another big reservoir over the dam will be affected due to it and Tarbela dam would also be on stake. He said that construction of water reservoir like Bhasha Dam in the area may result into another se- vere incident like Attabad Lake case. He said during last few decades eight severe earthquakes erupted in this area therefore major reservoirs should not be constructed in this area. The DG said that Gwadar port is also located in the zone-4 where billion of rupees are being invested. He said that Geological Survey of Pakistan has conveyed the authorities about it and opposed the construction of Sighar houses in Gawadar but no one took notice so far. Standing Committee recommended him to submit that report before the committee. Committee said if Bhasha dam is located in zone-4 is vulnerable to natural calamities then why India is constructing dams and In- ternational donors are providing financial aid for it? The DG GSP failed to satisfy the queries of the legislatures in this regard. DG further added that seismic hazards that de- stroyed the Taxila civi- lizations are present in the Margalla Hills that may cause destruction in capital in fu- ture. Briefing about Rekodiq landmine in Balochistan, Dr Khan apprised the committee that this landmine is worth tril- lions of dollars and most precious gemstones in the world are present in this mine. He said that total reserves in this mine are more than five billion tones. Legislative body directed him to give complete report regarding layer of Rekodiq in the province. At this occasion, DG an- nounced that after next fifteen to twenty days a pilot project of days 8 megawatt lo- cated in Thar coal would be operation and if it will succeed then coal cul- ture would further develop in the country. Standing committee showed con- cerns over the performance of the department and said that monthly expenses of the department are Rs 250 million while no output has been seen. Chairman of the committee Senator Muhammad Yousaf said that this department has been failed to deliver therefore it should be closed. DG geological survey of Pakistan informed the committee that in Arsenic is present in few villages of KPK and Punjab and 83% of population of these areas is vul- nerable to cancer and other severe diseases. BuSIneSS B Wednesday, 27 March, 2013 Resolution of oil and gas issues would bring new investments in the sector. — ICCI President Zafar Bakhtawari Committee members ask GSP DG why India is constructing dams with financial aid from international agencies if reservoirs like Bhasha Dam are located in seismic zones BAGHDAD INP Pakistan Petroleum Limited (PPL) has formally undertaken development and exploration of Gas fields in Diyala and Wasit Provinces of Iraq, after winning the contract last year. The initial contract to this effect has already been approved by the Iraqi Coun- cil of Ministers. The fields are spread over areas of 6,000 sq km. The winning bid was a major success for PPL, and it has become the first-ever Public Sector Company of Pakistan to enter into inter- national exploration and production, said Pakistan ambassador to Iraq Shah M. Jamal, while talking with the visiting media delegation here Tuesday. The contract won by the PPL is basi- cally a service contract on which dollar 5.38 per barrel of oil eventually extri- cated would be paid by the government of Iraq. The PPL has also worked out the price of crude oil and condensate with gas to incorporate it in the contract. Now, the project is going through implementa- tion process, he added. Ambassador Jamal further said, the contract paved the way for Pakistani in- vestment of approximately dollar 100 million in development of the gas fields and export of Pakistani skilled and un- skilled manpower to Iraq oil sector. He said there are bright prospects for other Pakistan companies to come to Iraq for finding investment opportunities and to develop more and more economic col- laboration between the two countries. Pakistani businessmen need to ex- plore here the available opportunity to run their business in various fields like health and education in the long-term basis, he added. The Iraqi government has already assured its all-out support to Pakistani entrepreneurs for undertak- ing joint ventures with their Iraqi coun- terparts. PC proposes 14 percent increase in power tariff ISLAMABAD ONLINE The Planning Commission (PC) has proposed 14 percent increase in power tariff. The 14 percent raise in power tariff has been recommended in a report issued by PS against ministry of water and power which was worked out in collaboration with US aid, says TV channel. Report says power sector is facing crisis and is suffering loss of billion of rupees. The entire responsibility of such huge loss rests with ministry of water and power. Report further states power sector is incurring loss to the tune of Rs 100 billion monthly under fuel adjustment surcharge head and the consumers are not being billed under actual tariff. Subsidy allowed on electricity bills be abolished and it be allowed to deserving consumers only. Power tariff be increased by 14 percent. The problems facing the power sector cannot be sorted out unless the tariff is enhanced in phases, report said. 290,000 telephone connections blocked for grey traffic ISLAMABAD: The Pakistan Telecommuni- cation Authority (PTA) has so far blocked around 290,000 telephone connections for being involved in grey traffic. Over 50,000 connections were blocked after October 2012 as part of non-system activities presently being carried out by the authority. An official source Tuesday told APP that the PTA had a technical system to monitor international telephone traf- fic. The system became operational in May 2008 and was expanded in early 2009. He said that the aim of system, installed with the funding of Long Distance International (LDI) operators, was to monitor all international voice traffic being terminated into Pakistan for identification of illegal channels employed by grey operators. He said that the system moni- tored IP and SS7 traffic on submarine cables to identify illegal calls brought in the country by grey operators and to record CDRs of LDI li- censees for revenue assurance. APP PPL undertakes oil and gas exploration work in Iraq ImRan ahmed SaYS conSTRUcTIon of UPSTReam mega PRojecTS RISk deVaSTaTIon bY eaRThQUakeS KARACHI STAFF REPORT The economic observers expect the cen- tral bank to keep the discount rate intact at 9.5 percent for next couple of months despite foreseeing the Consumer Price Index (CPI) inflation for March clocking in at 6.75% YoY rise, 68-month low, com- pared to 7.38% YoY recorded in February. On MoM basis, the CPI to register an increase of 0.77% compared to a decline of 0.3% observed during Feb’13. With the Mar’13 inflation remaining in single- digit, the average inflation of 9MFY13 should further be lower at 8%. The NFNE core inflation has been continuously hov- ering near double-digit since Nov’12, av- eraging 10.2% YoY in 8MFY13. “Excluding food and energy price this rise, in our view, is attributable to ris- ing government borrowing for budgetary purposes, which to date stands at Rs 766 billion (Rs 7,109bn in stock), “said a re- port issued Tuesday by Arif Habib Re- search. Furthermore, it said, potentially higher imported inflation as well as a sub- stantial rise in public sector borrowing re- quirements will result in persistent inflationary pressure in 2HCY13. So far the current level of inflation has not been driven by the food fac- tor single-handedly. Fluctuating energy prices have also resulted in infla- tionary pres- s u r e s domestically. However, in Mar’13 particu- larly, the food inflation (0.94% MoM) is expected to have contributed to the overall headline inflation along with ex- pected increase in clothing and footwear (0.9% MoM). “Although easing inflationary con- cerns have aided in the easing cycle (Dec’12 MPS), we think SBP’s focus will remain shifted towards containing upside risks to inflation from both sup- ply and demand-side fac- tors, going forward, along with depreciat- ing currency (FY13TD 3.8%),” the report said. However, commodity price (in particu- lar that of crude oil) has not yet posed major risk to inflationary pressures in FY13TD, in our view. But, a further rate easing will likely cause a sharp PKR depreciation, thus paving way for imported inflationary impacts, going forward. The report said the SBP was ex- pected to keep the discount rates on hold in the upcoming Apr-13 monetary policy, at 9.5%. While looking ahead, the SBP’s fore- casts for inflation look similar to ours as well as the street consensus. However, beyond FY13, our forecasts for inflation are consid- erably higher (~10% YoY E) and so do SBP’s recent talk-terms, suggesting indications for higher inflation in 1HFY14. Thus, in our opinion a rate easing in the following month’s policy would be more of a surprise, though room does exist. GSP head opposes Bhasha Dam on ‘technical grounds’ So far the current level of inflation has not been driven by the food factor. Fluctuating energy prices have also resulted in inflationary pressures domestically SBP likely to keep policy rate unchanged despite rise in inflation bloc ked 16-17 Business Pages (27-03-2013)_Layout 1 3/27/2013 3:54 AM Page 1