Profit E-paper 7th July,2012

Saturday, 7 July, 2012

ISLAMABAD

NNI

President Asif Ali Zardari on Friday,on the advice of Prime Minister, hasnominated four members of theFederal Government on the Na-tional Economic Council in terms ofArticle 156(1) of the Constitution.

The newly nominated membersof NEC are: Dr. Arbab AlamgirKhan, Federal Minister for Commu-nications (MNA from KhyberPakhtunkhawa); Ch. AhmedMukhtar, Federal Minister forWater and Power (MNA from Pub-jab); Dr. Abdul Hafeez Shaikh, Min-ister for Finance, Revenue,Planning and Development, Eco-nomic Affairs and Statistics (Sena-tor from Sindh); and Mir Changez

Khan Jamali, Federal Minister forScience and Technology (MNA fromBalochistan).

The President has also approvedthe nomination of Mr. HasnainMirza, MPA from Sindh as themember of NEC from Sindh.

Spokesperson to the PresidentSenator Farhatullah Babar said thataccording to Clause 1 of Article 156,the NEC comprises of the PrimeMinister, the Chief Ministers andone member from each province tobe nominated by the Chief Minister.The Prime Minister may also nomi-nate four other members from timeto time.

He said that although it was nei-ther mandatory nor constitutionalrequirement yet the former PrimeMinister had nominated the above

federal ministers, one from eachprovince, on the NEC. However,they ceased to be the member of theNEC on their ceasing to hold officeof the Minister on 19th June 2012,notwithstanding their fresh oathtaken on 22 June 2012. Besides, itis prerogative of the Prime Ministerto make nominations on the NECwhich require approval of the Pres-ident, he said.

Spokesperson further said thatthe nomination of Mr. HasnainMirza, MPA from Sindh as themember of NEC from Sindh wasmade by the Chief Minister Sindhreplacing his Advisor on Planningand Development. The nominationafter its approval from the PrimeMinister’s office has also been ap-proved by the President also.

4,345 PIA flights

delayed in 3 monthsISLAMABAD

INP

The National Assembly was informed onFriday that during the last three months,38 percent of PIA flights were delayed.The Defence Ministry said that in threemonths there were 12,184 PIA flights outof which 4,345 were delayed. PIA has beenon a downward spiral for the last severalmonths and passengers routinely com-plain of flight delays which last for severalhours. Flight delays are not only experi-enced on local but international flights aswell. Apart from frequent delays, passen-gers are also suffering due to cancellationof flights and mismanagement of PIA.BusIness development plAndevIsed: A Business DevelopmentPlan of Pakistan International Airlines(PIA) has been conceived to make thenational flag carrier commercially andeconomically viable and to get the or-ganization out of financial crises. Theplan has already been furnished to Min-istry of Finance for its considerationand examination, Federal Minister forDefence, Syed Naveed Qamar informedthe National Assembly here on Friday.In his written reply, he described the fi-nancial and organizational reconstruct-ing, Human Resource rationalization,fleet renewal plan and cost cuttingmeasures as the salient features of theplan. Appreciating the recently ap-pointed chairman, he said, the newchairman immediately took varioussteps to cut down unnecessary organiza-tional expenses. The key objective of theplan is to stop bleeding through.

What’s up with

SAARC these days?KARACHI

ONLINE

SAARC Chamber of Commerce vicePresident Iftikhar Ali Malik has said thatefforts are being made to increase tradebetween SAARC countries. Taking tomedia during the visit of city, he notedat present trade between SAARC coun-tries is around 6 percent and efforts arebeen made to increase it and achievejump of 10 percent by the end of currentyear. Referring to government of Pak-istan's announcement to give Most FavorNation (MFN) statues to India, he saidthat this move will not only improve po-litical relations but also increase bilat-eral trade and investment between them.He was hopeful that increase in tradewill also help to resolve other disputerbetween the two countries. Malik saidthat future of trade lies with Asia andadded that China and India have alreadyopened their markets for Pakistan aswell as Chinese invests are prepared toinvest in Pakistan in a big way.

Government

firmly behind

used car wheels KARACHI

STAFF REPORT

Higher engine capacity used cars imported dur-ing last fiscal year defy the government’s claimof deviating from auto industry developmentplan, the officials justifying the relaxation inimport policy had announced doing so to facili-tate import of small segment cheaper cars forconsumers. According to Customs data, theused cars’ import exceeded the 50,000 mark bythe end of this fiscal year with expected break-up of 8,000 cars of 800cc, 18,000 units of1,000cc and 14,000 units of 1,300cc and above.As per industry sources data, since July 2011 toMay 2012 more than 41,500 used cars havebeen imported in the country. Besides this, theyare causing a loss of over Rs 14 billion revenueto the government in terms of relaxations al-lowed pertaining depreciation allowance.

President approvesnominations for NEC

KARACHI

STAFF REPORT

HAvING largely been success-ful in mitigating the effectsof exogenous shocks andcontagion risks of the inter-

national sub-prime crisis, Pakistan is stillfacing challenges of its own. This wasstated by Governor State Bank YaseenAnwar while addressing the annual Char-tered Financial Analyst (CFA) Conventionand Excellence Awards ceremony here.

Terming the current events unfold-ing in the international economic envi-ronment as challenging and unique, theSBP governor said conservative and pru-dent policies should enable the countryto remain resilient from exogenousshocks of the global crisis. Anwar saidthough substantial progress was madeto limit the effects of the financial crisis,the vulnerability still persisted in theshape and size not imagined earlier.“One key lesson policymakers and regu-lators learned from the recent sub-prime crisis is that among many otherfactors, weak corporate governancepractices in leading financial institu-tions played a crucial role in creatingthe asset price bubble and misallocationof financial resources,” he said. As a re-sult, the governor said, policymakers inthe post-crisis period were placing moreemphasis on improving market trans-parency and Corporate Disclosure.

Few would have thought that the ef-fects of the sub-prime crisis would questionthe survival of the Euro currency and

would threaten the entire European regionto fall into a severe recession, he said.Anwar said the World Bank’s country re-view of Pakistan based on OECD Principleson Corporate Governance rated Pakistanabove average on most of the principles.The World Bank in a survey also rated Pak-istan as the leader on the robustness of cor-porate governance standards and practicesin South Asia, he added.AnwAR uRged tHe need foR:Apart from an enabling environment,proper infrastructure, skills and knowl-edge, Anwar said, a responsible and ethi-cal behavior of the participants was apre-requisite for efficient and well func-tioning markets. “Domestically it be-hooves us to upgrade our corporategovernance practices at all institutions tostrengthen our pace of economic recoveryand make the environment more chal-lenging and productive for corporate andprivate institutions,” the governor said.

Like a candle in the windg SBP governor reminds financial analysts that Pakistan is in fact facing challenges

ISLAMABAD

STAFF REPORT

In a major boost to the small hydel power sector,France on Friday signed an agreement with Pak-istan to provide a soft loan of 68 million Euros forthe construction of 48 MW Jaggran II Hydro-power Project in the picturesque Neelum valley inAzad Jammu and Kashmir.

Additional Secretary of Economic Affairs Di-vision (EAD) Iftikhar Ahmed Rao, Ambassador ofFrance Philippe Thiébaud and Country Directorof the Agence Française de Développement (AFD)Nicolas Fornage signed the funding agreement forthe project.

The PC-I of Jaggran-II project is already ap-proved by the Executive Committee of NationalEconomic Council (ECNEC) in November lastyear at a cost of Rs 7.056 billion. The construc-tion on the project is planned to be start this yearand complete within the next four years.

This project relates to the construction of a 48MW hydropower plant located about 90 km fromMuzaffarabad city towards North-East. The proj-ect will be built in the upper extent of JaggranNullah, a right bank tributary of the NeelumRiver. It will be located downstream of the exist-ing 30.4 MW Jaggran I hydropower project,funded earlier with French support, and being op-erated since 2000 by the Hydro-Electric Board(HEB) of AJK government.

Jaggran II Hydroelectric Power Project willoperate as a run-of-the-river scheme and will notentail any major environmental or social con-straints. It will be connected to the national grid,and will help alleviate the energy crisis in Pak-istan. Upon its commissioning in 2015, it willprovide a reliable source of renewable energy anda permanent supply of electricity for the 1.2 mil-lion people living in the Muzaffarabad area, withstrong social and economical positive impacts.

Pakistan is seeking foreign investment and

expertise, mainly from Europe for the construc-tion of small hydropower plants for which thereare ample opportunities in the country. The sign-ing of the deal with France will help attack otherEuropean companies to make investment in thesector, experts said.

France, through AFD, specifically supports re-habilitation and construction of medium-sizedhydropower projects. This source of energy, non-polluting and renewable, is also the most eco-nomical way of producing electricity in Pakistan.The country is blessed by a huge, mostly un-tapped hydropower potential, with only 6,500MW of ongoing projects out of a total of 54,000MW total potential.

It is providing funds to address the currentnational energy crisis. To reduce the power de-mand, AFD is co-financing with ADB a multi-tranche programme on energy efficiency indomestic and industrial sectors. To improve thepower supply, AFD is supporting the development

of renewable energies, currently with 22 MW Jab-ban project in Malakand District and Jaggran IIhydropower projects.

Proparco, a subsidiary of AFD for the privatesector development, has also invested 40 millionEuros during the last 3 years in the energy sector,including the New Bong Escape Hydropower Proj-ect; and is looking forward to supporting Inde-pendent Power Producers, energy efficiency,agro-industries and microfinance. AFD has also re-cently approved a soft loan of 11 million Euros, inorder to fund detailed design studies for the Mundahydropower project, located in Mohmand Agency.

As a member of the Group of Friends of Dem-ocratic Pakistan, France pledged 300 millioneuros at the Tokyo ministerial conference in2009. With the funding agreement for Jaggran IIsigned with EAD, France has now a portfolio ofprojects amounting to 213 million Euros for thewater and energy sector in Pakistan, correspon-ding to 73 percent of its pledge.

Bienvenue! g France, Pakistan sign deal for construction of 48 MW Jaggran II

KARACHI: Prime Minister Raja Pervez Ashraf has ap-pointed Kazi Abdul Muktadir as deputy governor StateBank of Pakistan (SBP) for a period of three years startingfrom Friday. This was notified by the Finance Division say-ing Kazi has taken the charge on Friday. Prior to takingover as SBP Deputy Governor Kazi had been serving thecentral bank as its executive director since December 2002.He had been group head of banking supervision since June2010 and was responsible for On-Site Examination, Off-Site Surveillance and Enforcement actions over all banks inPakistan. In this capacity, he gained repute within thebanking community as a high calibre professional known to

handle difficult issues and situations. Born in 1957, Kazi,the SBP’s senior most executive director, served the Na-tional Institute of Banking and Finance (NIBAF) — thetraining arm of the central bank– as its Managing Directorfrom December 2002 to June 2010. He successfully con-verted NIBAF into a premier centre of learning that is rec-ognized in the whole region. Kazi completed his higherstudies from McGill University Canada, London University,Sindh University and Karachi University. Holding MastersDegree, he has to his credit numerous diplomas and certifi-cates in the field of Banking, Islamic Banking, Agri-busi-ness, Management, Planning, Energy etc. STAFF REPORT

Raja appoints Kazi as SBP deputy governor

PRO 06-07-2012_Layout 1 7/7/2012 5:09 AM Page 1

02Saturday, 7 July, 2012

MoneyGram adds four banks

and 650 agent locations

KARACHI: Money-Gram (NYSE:MGI) hasgenerated 30% growthin Pakistan with the ad-ditions of Bank ALHabib (in operationsince 1991), KASB Bank(1994), Bank Islami Pak-istan (2004), and Tameer Bank (2005). The banksbring 650 new locations to the network increasing thetotal locations to 2,500+ throughout Pakistan.

Wateen upgrades

digital cable services

lAHoRe: Wateen Multimedia is now better servingthe needs of its customers after the installation of a newhead-end for improvement of its digital cable services.The head-end was built with state of the art equipmentfrom Appear Tv and is scalable to the current multi-media and digital entertainment and information ofWateen’s existing customer base as well as any futuregrowth in subscribers. As a result of this upgrade, Wa-teen’s customers will receive better quality cable as wellas have access to digital channels with improved pic-ture quality and reception, without interruptions.

PTCL brings free double

balance for Vfone customers

IslAmABAd: In an unbeatable new offer, Pak-istan Telecommunication Company Limited(PTCL) has launched an attractive double balancepackage for its vfone customers, giving absolutelyfree additional balance equal to the loaded amount.PTCL's vfone customers can avail this double bal-ance offer if their vfone account has not beenrecharged after January 1, 2012.

First Habib Income Fund, Stock Fund,

Cash Fund declare final dividends

KARACHI: The Board of Directors of Habib AssetManagement Limited, the management company ofFIRST HABIB INCOME FUND, FIRST HABIBSTOCK FUND and FIRST HABIB CASH FUND hasdeclared Final Dividend for the year ended June 30,2012 for the Unit holders of its respective Funds in itsheld on July 05,2012.fIRst HABIB InCome fund (fHIf): TheBoard, in its meeting held on July 5, 20112 announcedCash Dividend of Rs. 1.00 per Unit for the Unit hold-ers having ‘C’ class of Units and on Bonus Units forevery 100 Units on ex-bonus price of Rs. 100.0009per Unit for other unit holders. The fund has alreadydistributed Rs.9.00 per unit as interim dividend, thus

total distribution for the year ended June 30, 2012shall be Rs. 10.00 per unit.fIRst HABIB stoCK fund (fHsf): TheBoard also announced a Cash Dividend of Rs. 3.75 perUnit for the Unit holders having ‘C’ class of Units and3.7486 Bonus Units for every 100 Units on ex-bonusprice of Rs. 100.0375 per Unit for other unit holders.fIRst HABIB CAsH fund (fHCf): The Boardhas announced a Cash Dividend of Rs. 1.05 per Unitfor the Unit holders having ‘C’ class of Units and1.0498 Bonus Units for every 100 Units on ex-bonusprice of Rs. 100.0193 per Unit for other unit holders.The fund has already distributed Rs. 9.75 as interimdividend, thus total distribution for the year endedJune 30, 2012 shall be Rs.10.80 per unit.

Bonanza designer Eid lawn series

KARACHI: This year Bo-nanza has come up withsomething new and excit-ing by doing its first everEid collection designerlawn series. The philosophyis festivity and celebrationand what better way to cel-ebrate Eid this year butthrough the help of Bo-nanza! Bonanza has alwaysbeen a house hold name foryears, and even with having

such an establish clientele Bonanza has always beenabout re-inventing themselves.

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVER

UniLever Pak 7245.00 7300.00 7103.00 7290.00 45.00 183Nestle Pakistan Ltd. 4072.42 4168.00 4060.00 4116.71 44.29 13Colgate Palmolive 1018.00 1045.00 1040.00 1041.33 23.33 136Sanofi-Aventis Pak 185.34 194.60 193.98 194.52 9.18 897Island Textile 204.95 211.95 211.95 211.95 7.00 120

Major Losers

Mithchells Fruit 270.00 265.00 262.00 262.03 -7.97 101Siemens Pakistan 680.00 710.00 672.00 672.03 -7.97 198Clover Pakistan 86.18 87.45 81.89 82.07 -4.11 1,316Indus Motor Com 272.06 279.00 270.00 270.48 -1.58 2,554Pak Synthetics 16.97 16.41 16.01 16.05 -0.92 9,401

Volume Leaders

D.G.K.Cement 41.72 43.34 41.74 42.72 1.00 17,835,069Engro Foods Ltd. 64.85 68.09 64.66 67.93 3.08 6,271,045Jah.Sidd. Co. 13.10 13.79 13.10 13.51 0.41 5,947,479Bank Al-Falah 17.69 18.09 17.55 17.88 0.19 5,076,227Fatima Fertilizer Co 25.26 25.65 25.06 25.45 0.19 4,588,736

Interbank RatesUS Dollar 94.0247UK Pound 146.1050Japanese Yen 1.1765Euro 116.3743

Dollar EastBUY SELL

US Dollar 94.00 95.20Euro 114.58 116.40Great Britain Pound 144.43 146.68Japanese Yen 1.1666 1.1847Canadian Dollar 91.14 93.07Hong Kong Dollar 11.93 12.16UAE Dirham 25.42 25.79Saudi Riyal 24.93 25.26Australian Dollar 94.75 97.68

Business

KARACHI

STAFF REPORT

tHE bulls kept dominating Karachistocks market on last working day ofthe week Friday with benchmark,KSE 100-share index gained 139.27

points. The day saw the index closing up by0.98 percent at 14, 310.18 points against 14,170.91 points of Thursday.

Pakistan stocks closed bullish as investorsspeculated ahead of SECP chairman visit toKSE to discuss pending issues, said by AhsanMehanti, Director at Arif Habib InvestmentsLimited. On Friday, the trading volumes at theready-counter were recorded higher at 94.336million shares against 38.844 million shares ofthe previous day. The trading value increasedto Rs 3.756 billion compared to Rs 1.703 bil-lion of the previous session. The intraday highand low, respectively, stood at 14, 323.17 and14, 169.42 points.

He added that the institutional interestwitnessed in stocks across the board ahead ofcorporate earning announcements due next

week amid hopes for recovery in global stocksand commodities. The market capitalizationgrew modestly and increased to Rs 3.644 tril-lion from Rs 3.608 trillion a day earlier. Of thetotal 330 traded scrips, 159 gained, 73 lost and98 finished as unchanged. The free-float KSE-30 index also gained 141.56 points to close at12, 452.00 points against the previous 12,310.44 points. D.G.K Cement was the day’svolume leader counting its traded shares at17.835 million with the opening and closingrates standing at Rs 41.72 and Rs 41.72, fol-lowed by Engro Foods Limited, Jahangir Sid-diqui Company Limited, Bank Al-Falah andFatima Fertilizer Company with turnover of6.271 million, 5.947 million, 5.076 million and4.588 million shares respectively.

On the future market, the turnover in-creased by over three million shares to 9.379million against 5.206 million shares of Thurs-day. The UniLever Pakistan and Nestle Pak-istan Limited, up Rs 45.00 and Rs 44.29, ledhighest price gainers while, Siemens Pakistanand Mithchells Fruit, down Rs 7.97 and Rs7.97 respectively, led the losers.

HONG KONG

AGENCIES

Asian markets fell Friday as apparently coordi-nated action by Europe and China to stimulate theglobal economy failed to reassure wary investorsahead of US jobs data due later in the day.

The Nikkei 225 index on the Tokyo stock ex-change was down 0.36 percent at 9,047.46 points,Hong Kong fell 0.33 percent to 19,743.92 and Syd-ney was 0.49 percent lower at 4,148.8. Shanghai wasdown 0.55 percent at 2,189.249 points and Seoulwas off 0.75 percent at 1,861.42. The European Cen-tral Bank Thursday trimmed eurozone borrowingcosts by a quarter of a percentage point to 0.75 per-cent, in a widely anticipated move, and Denmarkfollowed suit, cutting its key rate by 0.25 percent.Shortly beforehand, the Bank of England an-nounced it was keeping its main interest rate at arecord low 0.50 percent and said it would increaseits quantitative easing stimulus policy by 50 billion($78 billion) to boost Britain's recession-hit econ-omy. The Bank of China also trimmed rates for thesecond time in a month, a surprise move that ana-lysts said may indicate the world's second-biggesteconomy is slowing more quickly than expected.

Markets were disappointed that the widely ex-pected ECB move was not accompanied by addi-tional stimulus measures to tackle the eurozone

crisis. China's central bank did not immediatelyprovide a reason for its surprise rate cut, but ana-lysts said the move could signal that second quarterdata due to be released next week could be worsethan expected. Cautious investors were also await-ing the June US labour report for signs about thestate of the world's largest economy, and whetherit would prompt the US Federal Reserve to step inwith fresh easing measures.

"Investors are in a wait-and-see mood now,with important US jobs data due later Friday," In-vestrust CEO Hiroyuki Fukunaga told Dow JonesNewswires. On Wall Street, traders shrugged offthe rate moves in Europe and China to focus on USdata showing weakness in consumer spending.

The Dow Jones Industrial Average endeddown 0.36 percent, or 47.15 points, at 12,896.67 onThursday. The S&P 500-stock index lost 0.47 per-cent, or 6.44 points, to 1,367.58, while the tech-richNasdaq added a bare 0.04 points to 2,976.12.

Concern was spurred by the ICSC Junesales report showing same-store sales for big re-tailers excluding Walmart were only up 0.2 per-cent from a year ago -- a third straight monthof weak growth. On currency markets the eurolost more ground in Asian trade Friday. Thecommon currency was changing hands at$1.2377 in Tokyo morning trade, down from$1.2391 in New York late Thursday.

Bulls arrange arave party, SECPchairman is invited

Tobacco price fixedat Rs 121 per kg

ISLAMABAD

STAFF REPORT

In an attempt to pacify the protesting growers the governmenthas fixed the minimum price of Rs 121 per kg for the tobaccocrop for the current year but there are still concerns whether itwill pacify the farmers who are demanding fixing it at Rs 200per kg. A notification of the Pakistan Tobacco Board (PTB)said it has revised not only the prices of tobacco but also thegrade as well. The decision was made after a meeting of thecost of production committee. The Agriculture Prices Instituteof the Ministry of National Food Security had estimated costof production of tobacco at Rs183 per kg for the current year.It was based upon the cost of agriculture inputs. However, theMinistry of Commerce and PTB opposed the estimate, eventhough API estimates are accepted as benchmark for fixingsupport price of other major crops. PTB had a meeting withtwo leading cigarette manufacturers and other stakeholdersincluding Tobacco Dealers Association and all the members ofthe Board, including the tobacco growers.

Belarus to invest inautomobile sector

ISLAMABAD

APP

A Belarus delegation headed bySergey Romanov of OJSC MAZMinsk Automobile Plant, called onMinister of State and ChairmanBoard of Investment Saleem H.Mandviwalla to explore invest-ment opportunities in the field ofassembly and manufacturing ofheavy vehicles in Pakistan.

26b euro spendingcut for Italy

ROME

AGENCIES

The Italian government agreedovernight Thursday on a series ofmeasures to slash public spending by26 billion euros ($32 billion) overthree years, including major payrollcuts. "The economies in this measurewill be 4.5 billion (euros) in 2012,10.5 billion in 2013 and 11 billion in2014," said Prime Minister MarioMonti. Much of the savings will befound in the health and public ad-ministration budgets, said Monti.

Smaller iPad to

trounce rivalsWASHINGTON

AGENCIES

Apple, which is expected to launch amini version of its market-leadingiPad tablet, could quickly over-power its rivals in the segment withthe addition of the new product, an-alysts say. The launch expected laterthis year however would probablyprompt Apple co-founder SteveJobs to roll over in his grave, giventhat the late technology pioneerridiculed the small-screen tabletsoffered by his competitors.

Spanish yields jumpLONDON

AGENCIES

New steps by three major centralbanks to boost global growth failed toimpress investors on Friday, sendingSpanish borrowing costs back nearunsustainable levels and hitting Eu-ropean stocks. The euro was nursingheavy losses at $1.2382 <EUR=, neara five-week low of $1.2364, whileBrent crude oil was down over a dol-lar a barrel at $99.46.

Asian stocks fall despiteEurope, China rate cuts

CORPORATE CORNER

KARACHI: Ever conscious of providing quality products to its

customers, Pakistan State Oil (PSO) has incorporated new

Mobile Quality Testing Units into its present fleet. Equipped

with state-of-the-art petroleum testing equipment, the

inauguration of these vans was carried out by PSO MD &

CEO-Mr Naeem Y Mir at PSO House on Friday.

KARACHI: President NBP Mr. Qamar Hussain is receiving

DOTY (Deals of the Year) Award from Mr. Shahjahan

Sallahuddin, Country Head, The Banker, UK.

g Bulls turn on the heat at KSE with a 139-point blast asSECP chairman seems all set to resolve their issues

PRO 06-07-2012_Layout 1 7/7/2012 5:09 AM Page 2