PM asks Fahim to strengthen exports’ institutional framework ISLAMABAD: Makhdoom Amin Faheem, Federal Minister for Commerce called on Prime Minister Raja Pervez Ashraf at the Prime Minister’s House on Monday and held discussions on a host of issues including prevailing political situation in the country and matters pertaining to his ministry. During the meeting, the Prime Minister directed the Federal Minister to focus on strengthening of institutional framework for promotion of exports, says a press release issued by the Prime Minister House. The Prime Minister directed him to institute such policies and programmes which promote regional trade as it has a huge potential, which needs to be tapped. “The promotion of goods and handicrafts produced by those hailing from the less developed areas could be instrumental in their economic empowerment”, observed the Prime Minister. The Ministry of Commerce should facilitate channeling their exports, he added. The Prime Minister directed Amin Faheem to sensitize the public on the achievements of the democratic government. APP Attock Cement to trade CERs at iC tE af ter UNFCCC registration KARACHI: The Attock Cement Pakistan Limited (ACPL) would be trading the Carbon Emission Reductions (CERs) in the International Carbon Trade Exchange (ICTE). The ACPL, one of country’s leading cement manufacturing and exporting firms, would be able to trade thousands of CERs in the ICTE annually. According to company sources, the ACPL has got its Waste Heat Recovery System (WHRS) project registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the qualification of CERs. With this registration the cement giant is expecting from the the WHRS project CERs approximately 35,000 per annum. The company has also shared this material information with its shareholders at the Karachi Stocks Exchange Monday. “These CERs are tradable in the International Carbon Trade Exchange,” Company Secretary Irfan Amanullah told the front regulators at KSE. The listed firms are bound under Clause (xx) of the Listing Regulation No 35 under the Code of Corporate Governance to share any material information with its stakeholders on the country’s equity market that could impact, in a positive or negative way, the price of its shares. STAFF REPORT 01 KARACHI ISMAIL DILAWAR I F investors’ sentiments on the stocks market are any criteria, the econom- ics seems to have had a profound edge over politics in the country of uncertainties like Pakistan. The investors’ bullish mood at Karachi Stocks Exchange on Monday depicted as if the traders were completely unwary of what was happening on the city’s roads that remained deserted throughout the day, thanks to a wheel-jam and shutter-down strike called by the Shia Ulema Council and other stakeholders to mourn the deadly carnage in Quetta Sunday. Even the traditionally most effective political upsets like the fresh split between the ruling collation partners, the PPP and MQM, did not seem to have its impact on the country’s largest sentiments-driven bourse. Rather, the improving economic indicators seemed to be dictated the in- vestors’ sentiments at the country’s largest bourse that, despite the most uncertain law and order situation, gained 68.39 points or increased by 0.38 percent on the day. The benchmark KSE 100-share index closed at 17,865.61 points against 17,797.22 points of Friday, last trading ses- sion of the previous week. The index was also recorded peaking to the intraday high of 17,914.43 points be- fore plunging to the intraday low of 17,750.12 points. Of the total scrips traded, 147 saw their share price increasing, 162 contracting and 22 as unchanged. The free-float KSE-30 index also closed in green zone at 14,624.29 points, gaining 61.51 points compared to 14,562.78 points of the previous session. The shares traded were recorded at the ready-counter at 291.611 million, register- ing an increase of 28.865 million com- pared to Friday’s 262.746 million shares. The value of total traded shares also rose to Rs 7.177 billion from Rs 7.063 billion. The market capital also set in the green zone by inflating to Rs 4.469 trillion com- pared to Rs 4.461 trillion of last week. The second and tier shares remained on the forefront led by the PTCL which counted its traded shares at 29.23 million gaining 0.82 paisas. The Pace (Pak) Limited, NIB Bank, Fauji Cement, Telecard Limited, Jhangir Siddqui Company, Engro Corpo- ration, Maple Leaf, DG Khan Cement and Aisha Steel were other volume leaders of the day. The trading on the future side also grew to 31.3 million shares from the pre- vious 19.71 million. The earning announcement session was cited by the market analysts as a pri- mary sentiments-booster on Monday. “(The) stocks closed bullish amid higher trades in the earning announcement session at KSE on strong earnings out- look,” viewed Ahsan Mehanti, a senior eq- uity analyst. Other leading attributable factor Mehanti saw at work to enhance confidence of the risk-averse investors on Monday was the small but significant sur- plus the country was able to achieve in its current account during the first seven months of current fiscal year. According to data released last week by the central bank, during July-Janu- aryFY13 the country’s current account posted a surplus of $ 62 million compared to a huge deficit of $ 2.792 billion during the corresponding period of FY12. The surplus, according to chief spokesman of State Bank of Pakistan Syed Wasimuddin, was “due to the Coalition Support Fund (CSF) and reduced trade deficit”. While the review period saw the trade gap narrowing down to $ 8.774 bil- lion from last year’s $ 9.418 billion, the country received $ 688 million from its non-Nato allies in the United States in December last year as war reimbursements, popularly known as CSF. Washington’s reported willingness to continue the reimbursement of CSF to Is- lamabad despite opposition from some Congressmen also boosted the investors’ confidence at Karachi bourse. “(The) $62 million current account surplus for July- Jan 2013… speculations ahead of US CSF release” Mehanti said played as a catalyst. The receipts under the head of worker remittances, which amounted to $ 8.207 bil- lion during July-JanuaryFY13 compared to $ 7.436 billion of last year, are also consid- ered to be a persisting stimulus to this effect. Other factors that impacted the investors’ sentiments positively were the expected hike in KESC’s power tariff easing concerns for circular debt in the energy sector, hopes for the OGDC gas sales agreement with fer- tilizer companies and improved outlook for LDI segment revenue for telecom stocks, the analyst said who also is a director at Arif Habib Se- curities. This Mehanti said was “se- curity con- cerns in the city and rising politi- cal un- certainty after key (the) coali- tion partner (MQM) exits gov- ernment”. BUSINESS B Tuesday, 19 February, 2013 Gwadar agreement will give new impetus to Sino-Pak relations. —President Asif Zardari Bulls rally on PositivE economic indictors The index was recorded peaking to the intraday high of 17,914.43 points before plunging to the intraday low of 17,750.12 points. Of the total scrips traded, 147 saw their share price increasing, 162 contracting and 22 as unchanged KARACHI STAFF REPORT The industry sources are foreseeing the average gas sale price to be set at $ 4.1 per mmbtu as the Ministry of Pe- troleum is said to have submitted its recommendations on the fertilizer sector’s gas requirement. This price would be inclusive of the average sale price of $ 3.75/mmbtu along with $ 0.35/mmbtu that would be added as the average tolling charge by the gas utility company like the SNGP. Quoting the industry sources, the analysts at Arif Habib Research Monday said the Ministry of Petroleum had recommended that Engro Fertilizer, Pak-Arab Fer- tilizer, Dawood Herculus Fertilizer and Agritech Limited would need 205mmcfd gas during the interim period. The source-wise breakup shows that of this total 130mmcfd would be provided from Kunar Pasaki Deep (KPD), 22mmcfd from Mari, 25mmcfd from Makori and 28mmcfd from other gas fields. “The minimum time period expected would be around eight months,” they said. About the impact of this development on Engro, the analyst said the current scenario placed Engro in be- tween the devil and the deep blue sea, where Engro had been showing reluctance in finalizing the mentioned Gas Sale Agreement (GSA) due to agreement with the government for keeping the final feedstock price intact at $0.7/mmbtu. “By accepting the aforesaid GSA, the Engro’s urea production would be increased and, as- suming 80 percent capacity utilization at current urea prices, it would be enough to pull EFERT’s bottom line out of the red zone, as we estimate an EPS of PKR 0.67 (at $ 4.1/mmbtu rate),” they said. Further salvation, the market observers said, might come for EFERT if it paid only tolling charge (at $ 0.35/mmbtu) and received gas at subsidies rates ($ 0.7/mmbtu) as per initial agreement. This scenario yields an earning per share of Rs 5.18 for EFERT (for ENGRO: Rs 10.86), the analysts said. PETROLEUM MINISTRY recommends gas sale price at $4.1 per mmbtu ISLAMABAD APP COMSATS Institute of Information Tech- nology (CIIT) will organize 2nd Pak- China Business Forum in March, to promote Uni- versity -Industry collab- orations in business and economic sectors for the mutual benefit of both the countries. CIIT introduced an acade- mia driven model of Business Cooperation by estab- lishing Pak-China Business Forum to promote academia-industry collaboration in business and eco- nomic sector for mutual benefit of both the countries. The seminar will comprise project exhibition, seminars, workshops and industrial academic expo. Major Chinese and Pakistani companies, small and medium enterprises, entrepreneurs, universities, and re- search & development organizations will attend the forum activities. According to an official, the forum will provide an opportunity for commercialization of products and processes of the partici- pating organizations. CIIT started its journey in 1998, and established its first campus at Islam- abad in April 1998. In Au- gust 2000, in recognition of CIIT’s achievements, the gov- ernment granted it the status of a Degree Awarding Institute (DAI) through promul- gation of its charter. UAE’s Ajman Free Zone’s road-show in Pakistan on 26th KARACHI: The Ajman Free Zone Authority (AFZA) is organizing a seminar to enhance business relations, promote trade and strengthen ties with Pakistan’s business community. The road show is aimed at Pakistani businessmen, entrepreneurs and investors that would like to spread their operations internationally, especially in the Middle Eastern region whereby the UAE serves as a springboard and a centre point to enter the regional markets. The road show will be held on 26th February here at a local hotel in which potential Pakistani investors will be briefed about diverse investment options at AFZA through which emerging and established Pakistani industrialists and entrepreneurs targeting emerging markets can set up operations in the Ajman Free Zone. A three-member high profile delegation from AFZA will arrive from UAE for the INVESTORS MEET on 26th February. During their visit, AFZA officials aim at meeting investors from various industries, trade and service sector and showcase multiple facilities and business investment opportunities available for the Pakistan business community. The convenient set-up solutions, diverse range of licensing options along with a tax free operation are some of the core subjects to be discussed with the prospective investors. Mahmood Al Hashemi, Director General of AFZA, in his statement said that “We have been able to attract significant investments from all over the world and are committed at facilitating services to these entities through cost-efficient, flexible and innovative platforms”. So far, AFZA has attracted over 7,000 companies with a significant chunk of SME investments in the portfolio. Ali Fahmi, Head of Customer Services Department said: “Pakistan is an important market for Ajman Free Zone and the investment from the country has been growing over the last few years. Ajman serves as an opportunistic destination for Pakistani business due to close proximity to Pakistan, a strong connectivity with ample of flights between the countries and robust infrastructure. We are confident of offering investors from Pakistan all assistance required in setting up and ensuring thriving operations as their success reflects our”. Situated at the foot of the Arabian Gulf, the Ajman Free Zone is widely regarded as the ideal depot for the supply of goods and services for both domestic and regional markets around UAE. STAFF REPORT 2nd Pak-China business forum in March PRO 19-02-2013_Layout 1 2/19/2013 12:09 AM Page 1