01

BUSINESS

BThursday, 4 April, 2013

ISLAMABAD

STAFF REPORT

US Ambassador RichardOlson has highlightedopportunities tostrengthen economicties between theUnited States and Pak-

istan during visits to Sialkot and Lahore. In Sialkot, Ambassador Olson toured

the Sialkot International Airport, the Sil-ver Star Group, and KM Ashraf Indus-tries. He also met with the executiveboard of the Sialkot Chamber of Com-merce and Industry.

“The United States stands with manyentrepreneurs here in Sialkot and acrossPakistan as you develop your businesses,”said Ambassador Olson during his visit toSilver Star in Sialkot. Silver Star producesnearly 70% of the hand-stitched footballssold by the US firm Nike.

“The United States is among thelargest investors in Pakistan, and Pakistanexports more products to the United Statesthan to any other country in the world,” headded. Ambassador Olson underscoredthis point during a visit to KM Ashraf In-dustries, which exports more than $20 mil-lion worth of sports uniforms to the UnitedStates each year.

At the Sialkot International Airport(SIAL), Pakistan’s first privately-fundedinternational airport, Ambassador Olsoncongratulated the management team forrecent upgrades that allow the airport tocarry the load of 10 jumbo planes, bene-fitting hundreds of businesses and morethan a million travellers each year. “Thisis a clear example of how private-sectorfunding can be used to meet the needs ofthe business community. SIAL is a model

for other cities in South Asia,” said theAmbassador.

At a lunch meeting with the executiveboard of the Sialkot Chamber of Com-merce and Industry, Ambassador Olsondiscussed opportunities to furtherstrengthen ties between U.S. and Pakistanibusinesses. He also reminded Chambermembers that businesses can take advan-tage of the US Generalized System ofPreferences (GSP), which allows more

than 3,500 Pakistani goods to enter theUnited States duty free.

In Lahore, Ambassador Olson con-gratulated US companies for their work inPakistan, including corporate social re-sponsibility programs, at the annual dinnerof the American Business Forum.

Throughout his visit, AmbassadorOlson highlighted several examples ofPakistani entrepreneurs who have benefit-ted from US economic assistance.

Olson stresses improving US-Pakistan economic ties

RICHARD OLSON

The United States is

among the largest

investors in Pakistan, and

Pakistan exports more

products to the United

States than to any other

country in the world.

KARACHI

NNI

Karachi Chamber of Commerce & Indus-try’s President Muhammad Haroon Agarhas expressed deep concern over inordinatedelays in the renewal requests of passportsby the businesspersons stating that mem-bers are approaching Karachi Chambercomplaining about unwarranted delays inrenewal requests of their passports fearingthat their businesses would suffer if theycould not proceed abroad to attend theirscheduled business meetings owing to un-availability of renewed passport on time.

Haroon Agar lamented that due to negativetravel advisories by the foreign missions, theforeign buyers are reluctant to visit Pakistanleaving no choice to the business and industrialcommunity to proceed abroad to buyer’s coun-try or any other destination for business meet-

ings and materialize business deals bearing ad-ditional burden of international travellingadding to the cost of doing business.

He stated that the perception of Pakistanhas been negatively distorted abroad as acountry with unrest and precarious law andorder situation which need correction. TheGovernment has also miserably failed to por-

tray the real and true picture of Pakistan in thecountries around the globe with all its strengthand potential and to revive the confidence ofthe international investors and buyers to visitPakistan for investment and to meet their Pak-istani business counterparts and now delay inpassport renewal is adding to hardships facedby the Pakistani Business Community.

Moreover, he stated that the busi-nesspersons also frequently travel for per-forming Holy Umrah and a large number ofbusiness community will proceed for per-formance of Hajj, therefore, renewed pass-ports requests of those have applied mustbe delivered on priority basis.

He criticized the backlog of 700,000passports requests, as reported in the pressand media, which is expected to enhance toone million appears as gross negligence atthe part of concerned department. Since theDirectorate General of the Immigration &Passports department operates under theambit of Interior Ministry maintaining al-located funds, the delays is inviting tenderand acquisition of ink and lamination paperis questionable. The backlog created in thelast month should have been cleared in thismonth but no emergency measures weretaken to control the crises situation.

KCCI dismayed over inordinate delays in renewal of passportsDue to negative traveladvisories by foreignmissions, the foreign

buyers are reluctant to visit Pakistan leaving no choice to the businesscommunity to proceed

abroad for business meetings, bearing

additional burden ofinternational travelling

Electric fans exportspost 44.07% increasein eight monthsISLAMABAD: Exports of electric fansfrom the country during the first eightmonths of current financial year increased by44.07 percent as compared to the exports ofcorresponding period of last year. From July-February 2012-13, 1,067 thousand numbersof electric fans worth US$ 23.50 million ex-ported as compared to 730 thousand num-bers valuing US$ 16.31 million during thesame period of last year, said the data ofPakistan Bureau of Statistics. Meanwhile, the other electrical machineryexport from the country grew by 33.26 per-cent as country earned US$ 42.23 million byexporting other electrical machinery whichstood at US$ 31.6 million in same period oflast year. On the other hand cement exportsfrom the country during period under reviewregistered increase of 24.08 percent as com-pared to same period of last financial year.From the period July-February 2012-13about 5,590,775 metric tons of cementworth US$ 376.85 million exported ascompared to 5,589,372 metric tons valu-ing US$ 303.71 million of correspondingperiod of last year. On month on monthbasis, the export of cement witnessed anincrease of 18.98 percent and reached at505,857 metric ton in month of February2013 from 486,165 metric tons duringsame months of last year.

ISLAMABAD

APP

Production of tractors witnessed increaseof 104.94 percent during the first sevenmonths of the current year against thesame period of last year.

As many as 30,528 tractors weremanufactured during the seven monthsfrom July to January (2012-13) againstthe production of 14,896 in July-January(2011-12), according to the data of Pak-istan Bureau of Statistics.

On year-on-year basis, the produc-tion of tractors witnessed increase of127.76 percent in January 2013 as com-pared to the production of January 2012.

Tractor production in January 2013stood at 3,323 units against the produc-tion of 1,459 units in January 2012,the PBS data revealed. Meanwhile,production of busses during thefirst seven months of the currentyear increased 13.24 percent from272 units last year to 308 units incurrent year.

However bus production wit-nessed decrease of 66.67 percent in

January 2013 when compared to the pro-duction of January 2012, according tothe data. Just 18 buses were manufac-tured in January 1013 against the pro-duction of 54 buses in January 2012.

Production of jeeps and cars de-creased by 23.45 percent in sevenmonths and 66.67 percent in January2013 whereas pro-duction of lightcommercial vehi-cles decreased by26.85 in July-Janu-ary (2012-13)and by 41.18

percent in January 2013. Production ofmotor cycles during July-January (2011-12) decreased from 966,656 to 937,411units in July-January (2012-13), showingdecrease of 3.03 percent. On year-on-year basis, the production of motorcyclesdecreased by 4.09 percent in January2013 against the same month of last year.

The motorcycle production in Janu-ary 2013 stood at 138,085 units againstthe production of 143,980 units in Janu-ary 2012. The country’s overall LargeScale Manufacturing (LSM) has regis-tered positive growth of 2.73 percent

during the first seven months ofthis year over the correspon-

ding period of the last finan-cial year. On year-on-yearbasis, the LSM grew by4.62 percent during themonth of January 2013when compared to the samemonth of last year. The

Quantum Index Numbers(QIN) of LSM stood at

111.69 points during July-Janu-ary (2012-13) against 108.72 points dur-ing July-January (2011-12).

‘No truth in IP gas project probe’

ISLAMABAD: Recent newspaper re-ports claiming the launching of an in-quiry into the Iran-Pakistan pipelineproject are unfounded, mala fide, and de-void of any truth.The Iran-Pakistan gas pipeline is an inter-nationally-important venture that willeradicate gas shortages in Pakistan by upto 40 percent and bolster economic coop-eration in the region. President Asif AliZardari and Iran’s President MahmoudAhmedinejad conducted the groundbreak-ing of this peace pipeline on March 11.This international project has materializeddespite opposition from certain countriesin order to secure the energy future ofPakistan. The project involved extensivenegotiations and has been progressedthrough a highly transparent and competi-tive process in compliance with all appli-cable procurement rules and laws.No contract for the laying of the 781-kilo-meter-long pipeline within Pakistan hasbeen awarded. Therefore, the claim thatthe contract has been awarded to an Iran-ian company, Tadbeer, is verifiablywrong. The scurrilous allegation that this$500-million project involved “$450 mil-lion in kickbacks” is categorically rejectedas entirely illogical and completely false.Furthermore, the transfer of ISGS manag-ing director Hassan Nawab was done priorto Dr. Asim Hussain assuming his positionat the Ministry of Petroleum and NaturalResources.The fabricated news reports which ap-peared in a section of the national press onApril 3 are blatant attempts to damage therespect and reputation of Dr. Hussain andto sabotage a landmark and historic en-ergy sector project that will join Iran andPakistan in a long-term and mutually-ben-eficial partnership. The Iran-Pakistanpipeline project must be supported by thenation. PRESS RELEASE

Tractor production witnessover 100 percent increase

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BUSINESSThursday, 4 April, 2013

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUniLever PakSPOT 13323.45 15000.01 15000.00 15000.00 1676.55 13,720Nestle Pakistan Ltd. 5773.95 6062.64 6045.00 6062.64 288.69 420Unilever Food 4300.00 4500.00 4400.00 4500.00 200.00 140Rafhan Maize XD 3610.00 3790.00 3550.00 3790.00 180.00 40Colgate Palmolive 1869.00 1962.45 1940.00 1962.45 93.45 1,000

Major LosersSunrays Textile 259.99 260.00 250.00 250.00 -9.99 9,000Pak Services 205.84 210.00 200.00 200.00 -5.84 1,000Indus Dyeing 405.50 405.00 400.00 400.00 -5.50 400Tandlianwala Sugar 83.00 78.85 78.85 78.85 -4.15 500Pak Gum & Chem. XD 146.28 144.99 140.00 143.08 -3.20 4,600

Volume Leaders

Maple Leaf Cement 19.68 20.56 19.62 20.32 0.64 20,935,500Lafarge Pakistan 7.00 7.33 7.05 7.13 0.13 20,004,000Fauji Cement 8.77 8.95 8.75 8.81 0.04 19,108,500Engro Corporation 135.29 137.34 130.50 136.23 0.94 10,501,400P.I.A.C.(A) 6.97 7.23 6.92 7.01 0.04 10,275,000

Interbank RatesUSD PKR 98.3317GBP PKR 148.5496JPY PKR 1.0509EURO PKR 126.1693

ForexBUY SELL

US Dollar 98.85 99.10 Euro 125.34 125.36 Great Britain Pound 147.46 147.42 Japanese Yen 1.0429 1.0519 Canadian Dollar 95.72 97.25 Hong Kong Dollar 12.42 12.63 UAE Dirham 26.60 26.80 Saudi Riyal 26.10 26.30

The Noodle House opensat Dolmen Mall Clifton

KARACHI: The noodle house is a flagship

restaurant of Jumeirah Restaurant’s LLC – Dubai,

UAE. Launched in 2002, the brand has gone

from strength to strength with restaurants in

Dubai, Abu Dhabi, Muscat, Doha, Kuwait,

Bahrain, Riyadh, Morocco, Limassol, Rabat and

Pakistan. The noodle house will soon be

operational in Russia, Lebanon, Great Britain,

Kenya and Turkey. First outlet in Pakistan was

launched in Oct. 2011 in Gulberg, Lahore. In

2012 it entered Karachi’s market at Pearl

Continental Hotel and now in Dolmen Mall

Clifton, Karachi. The noodle house is expanding

globally with agreements already signed with

franchise partners across the Middle East,

Europe, and Asia. Exclusive rights to open

nationwide chain of the noodle house in Pakistan

are acquired by Zahdan Retail, a company of

Zahdan Group (Pvt) Ltd. Murtaza Hashwani,

CEO of Zahdan Group, said ‘Launch of the noodle

house in Lahore and Karachi has received great

response from consumers and this has elevated

our spirits towards a massive expansion plan in

all major cities of Pakistan. The noodle house

Dolmen Mall Clifton, Karachi is the third outlet

and soon to be followed by another one in

Islamabad in third quarter of 2013’. PR

KESC sends list of

defaulters to NABKARACHI: Karachi Electric Supply Company has

sent the list of its defaulters to National

Accountability Bureau (NAB). NAB has recently

been tasked by the government to initiate a

crackdown against electricity defaulters across the

country. KESC has advised all its defaulters to

immediately pay their dues and arrears in order to

avoid legal complexities and adverse action under

law. All defaulters have been instructed to clear

their dues latest by April 30, 2013. KESC has

warned all defaulters one more time that non-

payment of power bills and electricity theft are

legal offences that could lead to three years

imprisonment and/or fine of Rs. 500,000 under

Electricity Act. PR

Bank Alfalah holds 21st AGMKARACHI: The 21st Annual General Meeting

(AGM) of Bank Alfalah Limited was held here on

Friday, March 29, 2013. The meeting was chaired

by Abdulla Khalil Al Mutawa and attended by other

Board members including Khalid Mana Saeed Al

Otaiba, Ikram Ul Majeed Sehgal, Nadeem Iqbal

Sheikh, and Atif Bajwa, CEO Bank Alfalah as well

as the Bank’s shareholders. The shareholders

were informed that Bank Alfalah earned a profit

before taxation of Rs. 6,783 million for the year

ended December 31, 2012, as compared to Rs.

5,434 million in 2011, registering a significant

improvement of 24.8 percent. The Bank’s deposits

grew from last year by 14 percent to Rs. 457.119

Billion. Total gross advances increased from Rs.

211.397 Billion to Rs. 248.346 Billion reflecting a

year on year growth of 18 per cent. Net

investments increased by 13.8 percent during the

period under review. The overall Balance sheet

growth has been 14.6 percent in 2012. The

current Capital Adequacy Ratio is 12.67% for the

year 2012.The Bank’s Islamic Banking Group has

made strides right from inception and in 2012,

generated a profit before tax of Rs. 1,517 million

for the year. PR

Al Baraka Bank organises beach cleanupactivity at Sea ViewKARACHI: Al Baraka Bank (Pakistan) Limited,

as part of its Corporate Social Responsibility

organized a Beach cleanup activity at Sea View,

Clifton, attended by over 400 concerned citizens

including men, women and children. A drive

towards a better and cleaner environment, the

event titled ‘The Big Clean Up’ Al Baraka Bank

(Pakistan) Limited in an effort to raise

awareness for a cleaner and healthier

environment and to promote an attitude of

responsibility among its employees, youth,

friends and families. The drive started from the

Floating Ship on Sunday in the early morning to

pick up trash and cleaned the way towards

McDonalds, Sea View, while spreading

awareness about the importance of keeping the

beach clean. Commenting on the event Shafqaat

Ahmed, Chief Executive Officer of Al Baraka

Bank (Pakistan) Limited said “Ethical principles,

the prime fundamental of Islamic banking, is not

only preached but are also practiced at Al

Baraka. Being a member of a banking group

founded on Islamic principles and values, we at

Al Baraka Bank (Pakistan) Limited embrace and

apply Islamic ethical principles to our day-to-day

banking operations and services. The Big Clean

Up is our initiative to promote the Islamic value

of cleanliness and hygiene” PR

Ufone launches SummerInternship ProgramISLAMABAD: Following the success of its

Summer Internship Program (SIP) 2012, Ufone

the most popular telecom company of Pakistan, is

now re-launching the program for 2013. SIP 2013

will commence in April at national level with

campus drives being held across the country

during which students will have to take a test and

give an interview for final selection. The campus

drives will be held in all major universities in cities

including Islamabad, Sawabi, Lahore and Karachi.

Individuals have to be students of Bachelor’s

program (6th or 7th semester) or students of

Master’s program; possessing a minimum CGPA of

2.5 or above and currently not employed in any

company with no more than 3-6 months of work

experience. The Summer Internship Program

provides a unique and rare opportunity to the

talented youth of Pakistan to work in a

professional and dynamic setting. The program

builds on the success from industry best

practices, while adding a little bit of the Ufone

flair to the mix. Interns selected through this

program will get exposure to real-time projects

for a period of 6-8 weeks.PR

KARACHI: Imtiaz Haider, commissioner of

SECP Security Marketing Division, addresses

the Khabeer Islamic Bank launch ceremony on

Wednesday. STAFF PhOTO

CORPORATE CORNER

02

B

LAHORE: Technical Education and Vocational Training Authority (TEVTA) Chairperson Rashida

Malik receives key of the project including building and equipment, sponsored by JICA, for

strengthening of DAE Mechanical and Architecture Department in GCT Railway Road, from

Project Manager Tobishima Corporation Japan Yasuo Kume. PR

ISLAMABAD

STAFF REPORT

IN haste to issue an Re-quest for Proposal forthe Procurement Tax La-bels and SupervisionSystem to tackle illicittrade of tobacco in Pak-

istan, the Federal Board of Revenue(FBR) has resorted to sheer violationof the PPRA Rules 2004., throughits tendering process advertised onMarch 13, 2013.

Expressing their concerns in apress conference, the tobacco man-ufacturers said that the system willfail to increase revenues for the gov-ernment on the one hand and burden

the legitimate, taxpaying tobacco in-dustry and its customers on theother.

They were of the opinion that,FBR’s plan to introduce Procure-ment Tax Labels and SupervisionSystem in its current shape will notresult in achieving the objective ofcurbing the illicit trade in Tobaccoproducts, as the system specified inthe RFP has already failed to curb il-licit trade or increase revenues innumber of countries, includingMalaysia, Turkey, Brazil, and wasrejected in many states of the USA.

Meanwhile, experts and interna-tional stakeholders have alreadypointed out that the particular tenderprocess initiated by FBR and the

specified solution and requirementsare solely focused on the use ofpaper-based stamps and this showsthat only one very specific solutioncould meet the tender requirementsas currently stipulated. This bearsthe high risk for the Federal Boardof Revenue (“FBR”) that there is notenough competition for the most ef-fective solution possible – in termsof both functionality and cost.

International security solutionproviders are also of the opinion thatthese stamps are generally very ex-pensive, require a high capital in-vestment, can easily be lost, stolenor counterfeited and require a com-plex process of manufacturing, dis-tribution, storage and application.

Tobacco manufacturers are of theopinion that this system cannot pro-vide for tracking and tracing in thesense of the WHO FCTC protocol toeliminate illicit trade in tobacco prod-ucts, which was also confirmed by in-dependent WHO reports.

They suggested the FBR to optfor more modern and cost effectivesolutions available today based onstate of the art technologies includ-ing tracking & tracing capabilitiesthat would be much more effectivein addressing illicit trade issues.They also indicated that the currentRFP seems to be designed to benefitone particular supplier and if theprocess goes ahead, legal clangswon’t be far away.

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