profit.com.pk

Pressure rises on JP Morgan overrisk, clawbacks Page 2

Wednesday, 16 May, 2012

LAHORE

STAFF REPORT

Pakistan’s economyrequires immediate reformsto overcome the challengesbecause any more delay in

initiating much-needed sector-specific reforms would furtheraggravate the situation. this was the upshot of thepresentation given by the Chiefeconomist UsaiD thomas Morris onthe state of Pakistan’s economy hereat the Lahore Chamber of Commerceand industry on tuesday. the LCCiPresident irfan Qaiser sheikh, seniorVice President kashif Younis Meher,Vice President saeeda nazar, formerPresidents iftikhar ali Malik andMian Muzaffar ali also spoke on theoccasion and threw light on varioussectors of economy where Pakistanand the Us could work jointly. the UsaiD Chief economistindicated that the country’s fiscalposition was fast deteriorating asnumbers suggest the gap waswidening with every passing day. hehighlighted that a major chunk of tax-payers money was being eaten awayin defense expenditures, subsidiesand interest payments. after spending huge sums of moneyon non-development expenditure, the

government had left with no moneyto spend on hard pressing energyshortage and social development. hepointed out that in 2008-09 Pakistanwas paying around Rs99,000 millionon account of subsidies, but thisfigure jumped up to Rs284,827million in 2010-11. he was of the viewthere was dire need to correct theenergy mix of the country as anychange in petroleum products pricesadversely affect the government’sbudgetary estimates. thomas Morris pointed out that in2008-09, the government allocatedRs77,000 million for electricitysubsidies, but it had to spend Rs99,000 millions when oil prices in theinternational market were below $80.On the other hand, in 2010-11 budget,the government earmarked Rs32,000million for electricity subsidy, but ithad to spend Rs284,827 million as oilprices had crossed $100 per barrelbarrier. he said that the GDP growth wouldremain 3 per cent contrary togovernment’s claim of four percent.he said that during the globalrecession Pakistan’s economyremained positive which shows itsstrength. therefore, he said that thegovernment should focus oncurtailing expenditure by cuttingnon-development expenses. he said

that Pakistan should furtherstrengthen its economic relationswith the United states by signing newtrade agreements. talking about agriculture sector, theUsaiD Chief economist said thatagriculture sector in Pakistan isconstrained by insufficientinvestment over many years as itsshare in the GDP in 1960 was 46.2percent and in 2010 it was only 20.8percent. speaking on the occasion, the LCCiPresident said that the LahoreChamber of Commerce and industrywas ready to collaborate with UsaiDin carrying out projects in energysector for the sake of economy and inthe best interest of Pakistan and itsnationals. about the condition applied by UsCongress Committee to link economicand military aid to natO supplyresumption, the LCCi President saidthat it is not justified considering thepresent situation of Pakistan whichhas already suffered losses of wellover $ 65 billion due to its frontlinerole in war against terror. irfan Qaiser sheikh said that the roleof UsaiD in various sectors rangingfrom energy, education, health,humanitarian assistance and etc.,needs to be expanded to more areasand with wider scope.

uSAID AT LCCI

POur SOmESugAr ON mE

Uncle Sam apprehensiveabout his favourite nephew

KARACHI

STAFF REPORT

the state Bank of Pakistan(sBP) has decided toimplement internationalBank account number

(iBan) standard in the country tobringing about account codestandardization and efficiency inprocessing of payments fordomestic as well as cross bordertransactions.to this effect, the central bankWednesday issued iBan guidelinesthat contain details for thenumber’s generation, validationand implementation timelines. according to the guidelines, theiBan, an international standard(isO 13616) for identifying bankaccounts across borders, would beimplemented in two phases. in the first phase, all banks shallgenerate and notify iBan to alltheir customers by December thisyear while the second phase wouldmark the operational usage,including capturing, recognition,processing, validation and transfer,of the number both for domesticand international financialtransactions by June next year. it may be pointed out that iBan ismade up of two components. While

the first component is comprised ofa country code and check digit, the2nd one is called Basic Bankaccount number (BBan). thecheck digit mechanism in an iBancompliant account number wouldvalidate the accuracy of accountnumber at the point of transactionsentry at the remitting institutions,domestic or international. about benefits of the iBan, thestate Bank said a bank accountstandard across Pakistan wouldbring more efficiency in paymentprocessing by enabling thepayments and clearing systems toelectronically validate accountnumbers and to decide the route apayment should take withoutmanual intervention. the elimination of delays in credittransfers originating from iBancompliant countries to Pakistan assame are delayed, sometimes forseveral days due to manualintervention required for sendingcredit transfers to non iBancompliant account numbers. iBan implementation would helpin bringing more efficiency inremittance related transactions as asignificant percentage of thesetransactions are rejected due toinaccurate account numbersinformation.

account validation at remittinginstitution due to iBan’s checkdigit mechanism wouldsignificantly reduce errors relatedto account numbers. the stateBank has asked the banks togenerate and issue iBan to itsaccount holders. the banks should encouragecustomers to use or/and quotetheir iBan number in all financialtransactions during thetransitionary period. the bankshave also been advised to developonline utilities for converting theiraccount numbers to iBan tofacilitate their account holdersbesides quoting iBan number inaccount statements issued to eachaccount holder. Moreover, thebeneficiary customer should notifyordering customer of their iBan. Under the sBP guidelines thefinancial institutions shouldvalidate the iBans at the time ofentry of the transaction in theirsystem both for sending andreceiving customers. the centralbank said the guidelines had beendeveloped in consultation withPakistan Banks’ association (PBa)nominated committee on iBan. allparticipants have been advised bythe sBP to ensure implementationof iBan as per given timelines.

SBP’s double whammy!

KARACHI

NNI

the state Bank of Pakistan is playinga major in role in spreading themarket of islamic Banking inPakistan and we salute their efforts.

the conventional banks are also exploring theavenues in the islamic sector due to thepromotion of parallel banking by the stateBank in 2002. so unlike the concept which wasintroduced in 1970s when the customers wereforcefully being pushed towards islamicBanking, now the concept is effectivelyevolving when the customers have a free choicebecause more industry players are becomingvisible. it was stated by Vice President –Product Development & shariah ComplianceMezan Bank Ltd Fayyaz-ur-Rehman khan at aseminar on “islamic Banking” organized byCOMMeCs institute of Business andemerging sciences (CiBes) recently. theManagement of CiBes along with the faculty,staff and students participated in this seminar.a large number of guests from industry werealso present in this seminar. Fayyaz-ur-Rehman khan started his speech with theconcept and prohibition of interest/markup inislam and its culture as opposed toconventional banking, with the reference ofVerses from holy Quran and ahadees. he alsocleared several misconceptions about islamicBanking in the minds of people focusing on thedifference between the conventional bankingand islamic Banking. he specially targeted

those people who think that both are the same.During the question and answer session hethoroughly the audience by explaining theefficacy and benefits of islamic banking tocitizens as well as the government. it waspredicted that islamic Banking will becomethe future pillar of the country’s economy. healso said that ‘Pakistan being an islamicRepublic with Muslim population of 98 % hasindeed a general notion that the people shouldadhere to islamic principles. so when acustomer knows that he/she can availproducts, services and benefits of banking, inan islamic way, the person will definitely movetowards it’. highlighting the benefits ofislamic Banking for students Fayaaz-ur-Rehman announced Qarzehasna of Rs. 1.00Million per annum to CiBes students,repayable in easy monthly installments. at theend Director CiBes, Mohammad arif Dossalthanked the respected speaker and all theparticipants for their interest in such nationbuilding events conducted by CiBes. he saidthat the main objective of the seminar was tocreate awareness of issues regarding islamicBanking. the audience expressed satisfactionthat they had acquired greater knowledge andthat the discourse had corrected manyconcepts about islamic Banking. theCommecs Management reiterated that suchinformal but directed efforts would becontinued to create “out-of-the-box” learningfor its students enabling them to get theprofessional edge needed to take themsuccessfully towards their careers.

ISLAMABAD

REUTERS

Pakistan on tuesday allowedthe export of 200,000 tonnesof white sugar and directed thestate trading corporation to

buy 200,000 tonnes from local mills fordomestic stocks, the chairman of thePakistan sugar Mills association(PsMa) said. “the export will behandled by the mills themselves,” Javedkayani told Reuters. Pakistan’s sugarproduction in the ongoing season isclose to 4.7 million tonnes, according tothe PsMa. “We had earlier approachedthe government and proposed that theypurchase 400,000 tonnes of sugar fromus,” kayani said. “it would help us with

liquidity and facilitate payments ofbetween 25 and 30 billion rupees ($275million to $330 million) to growers.”kayani added that the Pakistani millerswere looking at tajikistan, iraq andindonesia as possible markets forexport. Officials from Pakistan’scommerce and finance ministries werenot immediately available for comment.in February, Pakistan approved theexport of sugar for the first time innearly three years, spurred by anexpected surplus of more than 1 milliontonnes. Last year, Pakistani millerssought permission from thegovernment to export up to 500,000tonnes of refined sugar because ofexpectations of a bumper crop, whichcould exceed 5 million tonnes.

SWEET!

PakistanaPProves exPort

of 200,000twhite sugar

POW!

SBP decides to enforce International Bank Account Number standard ‘SBP plays major role in spreading market of Islamic Banking’

PDF Profit_Layout 1 5/16/2012 2:33 AM Page 1

news02Wednesday, 16 May, 2012

TAMPA

REUTERS

JP MORGan Chase & Co’sshareholders backed theirembattled Chief executiveJamie Dimon at the bank’s

annual shareholders meeting on tues-day, voting against a proposal to splitthe CeO and chairman roles just daysafter the company revealed a massivetrading loss. While shareholders at themeeting, in tampa, Florida, gaveDimon a pass for the most part on theloss, pressure mounted on the bank toreclaim some of the millions of dollarsit paid to the executives who oversawthe wrong-way trades. Dimon, speak-ing so fast he swallowed some of hiswords, opened the meeting with an-other statement that the trading losses— $2 billion and perhaps greater —were “self-inflicted.” “there are manylessons here and many changes inpolicies and procedures that are beingimplemented here,” said Dimon, ad-dressing a few hundred people in aconverted cafeteria at one of the com-pany’s back-office operations. But as ashareholder question-and-answer ses-sion opened, hardly any of the queriesor comments made reference to thelosses. instead, most people seemedmore concerned with the bank’s mort-gage servicing practices and with theproposal to split the roles of chairmanand CeO. that nonbinding proposalreceived 40.1 percent of the votes castin favor. By way of comparison, 44percent of at&t inc shareholders and46 percent of honeywell international

inc shareholders voted to separate theroles at their companies in meetingsheld last month. after two tradingdays of heavy losses, JPMorgan sharesrose 1.9 percent to $36.48 in morningtrade. even so, the stock is down morethan 10 percent since the tradinglosses were disclosed, wiping out$16.2 billion of market capitalization.

“it affects my opinion of the en-tire financial industry,” said Dennishong, principal with altimeter Cap-ital, a hedge fund that manages about$250 million. “it’s really shockingbecause JPMorgan has been knownas the most conservative in terms ofmanaging their business risk. theymay be losing their way,” hong saidat an event in Boston. AFFIRMS ‘CASE FOR ... RE-

FORM’: in Washington, U.s. treas-ury secretary timothy Geithner saidJPMorgan’s losses strengthened thecase for reform. “i think this failure ofrisk management is just a very power-ful case for ... financial reform,” Geith-ner told an event sponsored by thePeterson Foundation.

“the test of reform is not whetheryou can prevent banks from makingmistakes ... the test of reform shouldbe: ‘Do those mistakes put at risk thebroader economy, the financial systemor the taxpayer?’” Protests outside theannual meeting were relatively lim-ited. half a dozen Occupy tampa pro-testers did media interviews andoccasionally chanted, “hey hey ho ho,big banks have got to go.”

nonetheless, retail shareholdersexpressed incredulity at the size of the

losses. “i am amazed that they think$2 billion is a bump in the road,” saida. Reihl, an 85-year-old shareholderwho said she has owned the stock formore than a decade. “this is not thetime to be taking risk.”CLAWBACKS: new York CityComptroller John Liu, who overseesthe city’s $400 million stake in JPMor-gan, on tuesday joined those callingfor a “clawback” of compensation fromexecutives responsible for the tradinglosses, including ina Drew, chief of thehedging unit that racked up the losses.she announced her retirement onMonday. Reuters was unable to reachDrew at her new Jersey home onMonday evening. in its 2011 annual re-port, JPMorgan said its stock-basedcompensation awards were subject toclawback provisions. it said in its proxyfiling that it could conduct a clawbackreview “as a result of a material restate-ment of earnings or by acts or omis-sions of employees.” JPMorgan cancancel unvested awards or require thatthe value of distributed shares be re-paid when “the employee engages inconduct that causes material financialor reputational harm to the firm or itsbusiness activities,” according to theproxy. “We don’t know the facts andculpability, but it appears she (Drew)did have a responsibility here alongwith a number of others,” sheila Bair,former chairman of the Federal De-posit insurance Corp, said in an inter-view with Reuters insider. “Clearly, thewhole purpose of clawbacks is if youmake a bad bet that results in losses,compensation should be clawed back.”

NEW YORK

REUTERS

Q UaRteRLY results helped boost the s&Pconsumer discretionary sector index, withtJX (tJX.n) up 7.4 percent at $42.65 and

Dick’s sporting Goods (Dks.n) up 9.2 percent at$51.59. the s&P retail sector index .RLX rose 1.5percent. U.s. retail sales rose 0.1 percent in april,slightly below expectations. however, details in theCommerce Department’s report indicatingunderlying strength in demand and a rebound inmanufacturing activity in new York state calmedconcerns that the economy was stalling. “earningshave been pretty good and supporting the marketto a certain degree,” said John Manley, chief equitystrategist at Wells Fargo Funds Management innew York. “People are still worried about things,but earnings surprises are more positive than not,and that is encouraging them to stay in stocks - ifnot move into stocks.” Data showing an index ofhome builders’ sentiment at a five-year high in Mayhelped lift the sector’s shares. the PhLX housingindex .hGX rose 1.8 percent. amazon (aMZn.O)shares also lifted retailers and gave a boost to thenasdaq after Credit suisse upgraded the stock to“outperform” and raised its price target to $270from $190. the stock jumped 2.6 percent to

$228.72. the Dow Jones industrial average .DJigained 32.88 points, or 0.26 percent, to 12,728.23.the s&P 500 index .sPX added 3.63 points, or 0.27percent, to 1,341.98. the nasdaq Composite .iXiCrose 21.83 points, or 0.75 percent, to 2,924.41.attempts to form a government in Greececollapsed, sending european equities lower on theprospect that those opposed to the terms of aneU/iMF bailout and a German-led push forausterity could sweep to victory in new elections.“the Greeks and Germans seem to be playing anenormous game of chicken. it is unsettling to themarket that those who would rather renegotiate theexisting agreement seem to be gaining strengthafter the election,” said Wells Fargo’s Manley. OnMonday, the s&P 500 index closed at its lowestlevel since February. Concerns about Greece havebeen a primary reason for the s&P 500’s weakness.Groupon inc (GRPn.O) reported its first quarterlyprofit after the closing bell on Monday. its stockclimbed on tuesday, rising 12 percent to $13.14.JPMorgan Chase & Co (JPM.n) rose 3.2 percent to$36.92, mostly unchanged this week after fallingmore than 11 percent last week after disclosing atrading loss of at least $2 billion. Pressure mountedon the bank to reclaim some of the millions ofdollars it paid to the executives who oversaw thewrong-way trades.

ISLAMABAD

NNI

the economic Coordination Committee(eCC) of the Cabinet in its meeting heldhere on tuesday considered the certainsummaries of the Ministry of Petroleum &

natural Resources and decided to allocate Gas atwellhead from OGDCL’s dormant fields. itapproved in principle subject to consent of theGovernment of sindh in whose favour eCC hadapproved the earlier proposal in Jan-2011 toallocate gas. Proposal to refund on General salestax on Gas infrastructure Development Cess wasnot approved as the applicable law does not permitthe same. Fortnightly Price adjustment ofPetroleum Products proposal has been approved.the meeting approved the enhancement of

exploration expenditures limit of Us$ 20 Million toUs$ 40 Million for Mari Gas Company Limitedsubject to appropriate amendment in Gas Priceagreement of Mari Gas Company Ltd. approval foracquisition of MnD exploration & ProductionLimited assets in Pakistan and Yemen throughPurchase of shares was given. eCC approved, withthe direction to PPL to evaluate the assets andconsider bidding on purely commercialconsiderations to the benefit of the company. themeeting approved the revised proposal on overallFinancial Limit to Pursue international explorationOpportunities. it approved to allow PPL to bid forexploration and Production Blocks in iraq up to $100 million. Regarding import of Liquefied naturalGas (LnG) the eCC agreed in principle to allowimport of LnG. a committee has been formed toworkout the modalities in this connection.

Consumer shares lift WallStreet, but Greece drags

KARACCHI

STAFF REPORT

With commencement of the harvestseason and other developmentsincluding load-shedding, heavy rainsand shortage of labour, construction

activities in northern part of the country havesharply declined, resulting in huge fall in both salesand prices of cement. industry sources whiledescribing the situation said that the immediateimpact is evident by the fact that daily dispatcheshave reduced to a mere 60,000 tons from about80,000 tons. sharp fall in demand and resultantover supply has resulted in price decline of Rs. 20 toRs. 25 per bag for different brands. the current trendof decline is also fueled by excessive load sheddingwhich hampers construction activities in Punjabparticularly, which is the major market for cementconsumption and has been witnessing massive loadshedding which has dampened industrial andconstruction activities. ‘the units of the north zonehave been facing losses on coal import as they arenot given freight subsidies by the government,’sources said, adding that opening of Wahga border isa good option as it will help the units of the north togain some benefits through exports. since thegovernment has not yet paid the outstanding claimsof Rs 287.686 million it owes to the cement sector interms of inland freight subsidy it announced to givefrom March to July in the year 2010, the cement

sector is finding it difficult to sustain in this time ofsever inflation. in order to encourage exports, thegovernment had decided to allow inland freightsubsidy to the cement sector for the period fromMarch 2010 to June 2010, but no payment has yetbeen made and to date there are outstanding claimsof Rs. 287.686 million. there are some benefits thatare natural to the companies situated in the southZone as they have easy and good accessibility to rawmaterial being close to sea ports in karachi. thecement units of the north zone are mostly in loss asthey are denied inland freight subsidies by thegovernment. another issue is the declining trend ofexports to afghanistan which is no more a lucrativemarket. total cement exported to afghanistanamounts to 3.3 million tons in the 9 months of thecurrent fiscal against 3.2 million tons in the sameperiod last fiscal, while exports to india stood at 0.48million tons this fiscal against 0.3 million tons in thesame period last fiscal. Clinker exports in the 9months of last fiscal were 0.19 million tons.historically, cement exports to afghanistanincreased since 2001-02 from 0.1 million tons to 4.7million tons in the year 2010-11, but exports to indiaremained stagnant for last 4 to 5 years at around 0.6million tons. this shows that only afghanistan is theimmediately available option for the sector. totalcapacity utilisation of the cement industry is ondecline at 71.25% this year against last year’s 76.20percent. the highest capacity utilisation the industryhad was 93.62% in the year 1992-93.

ECC mulls gas, petroleum solutions

ISLAMABAD

NNI

eMinent internationalexperts and high levelPakistani officials and

business representatives areexpected to take part in ‘nationalConsultation on Green economy’jointly organized by the FederalMinistry of Climate Change, theUnited nations DevelopmentProgramme and other Unorganizations, the sustainableDevelopment Policy institute(sDPi ) and Lead Pakistan on 18-19 May at islamabad. in theConsultation the delegates willdiscuss the serious economic,environmental and social crisesfacing the world and Pakistanahead of a major global meetingon sustainable development in theBrazilian city of Rio de Janeironext month. the main objective ofthe conference is to review thepreparations for the Unitednations Conference onsustainable Development hosted

by Brazil in Rio on 20-22 June,likely to be attended by more than130 heads of state and governmentand thousands of delegatesrepresenting the Un, privatebusiness, non-governmentalorganizations and the media, saida press release issued by sDPihere on tuesday. the nationalConsultation will be inauguratedby Federal Climate ChangeMinister, Rana Farooq saeed.During the two-day event,renowned experts and officials likeDr tariq Banuri, former head ofsustainable Development Divisionin the Un hQ in new York, Dradil najam, Vice Chancellor of theLahore University of Managementsciences (LUMs), sheng Fulai andstefanos Fotiou, senior officials ofthe Un environment Programme,Dr hussein abaza, former UneP’sofficial on environment andeconomics for twenty years, Malikamin aslam, former Minister ofstate for environment, Farrukhiqbal khan, Counselor atPakistan’s Un Mission, shakeel

Durrani, Chairman WaPDa, arifalaud Din, head of Renewableenergy Development Board(aeDB), Managing Directorenergy Conservation Centre(eneRCOn) of the Ministry ofWater and Power, Dr khalidMohtadullah and arshad abbasiwill make presentations. highranking Un officials andrepresentatives of the privatesector will also contribute to thediscussions. the consultation willreview various aspects of Greeneconomy and identify the keyelements of a possible Greeneconomy framework for Pakistan.it will also makerecommendations on the outcomeof the June 2012 Conference forconsideration by the Pakistandelegation.Prime Minister syedYousuf Raza Gilani is expected tolead Pakistani delegation at theRio Conference which wouldinclude the Federal Minster forClimate Change, Rana Farooqsaeed and Foreign Minister hinaRabbani khar and senior officialsof several federal ministries.theobjective of the June 2012Conference is to secure renewedpolitical commitment forsustainable development, assessthe progress to date and theremaining gaps in implementationof the outcomes of the majorsummits on sustainabledevelopment and address new andemerging challenges.

Cement disintegrates Exploring greener pasturesuNDP, CLImATE CHANgE mINISTrY COLLABOrATEENErgY CrISIS, CLImATE CHANgE AND OTHEr ISSuES

g Seminar on ‘National Consultation on greenEconomy’ on 18th

g Cement prices tumble, sales decline in the country

WrITINg ON THE WALL

COmmITTEE CONSIDErATIONS

Pressure rises on JP morganover risk, clawbacks

g ECC decides to allocate gas at wellhead from OgDCL’s dormant fieldsg Fortnightly price adjustment of petroleum products approved

PDF Profit_Layout 1 5/16/2012 2:33 AM Page 2

news

Wednesday, 16 May, 2012

03

Qatar Airways, Flexjet announce alliance

KARACHI: new Premium service Offered innorth america By airline’s Corporate Jet DivisionQatar executive Convenient Premium Connec-tions to Over 5,000 airports across north amer-ica Via Qatar airways’ Gateways Of houston, newYork, Washington and Montreal Qatar executivetailors seamless Premium travel Via Flexjet Con-nect Programme, Operated By U.s. air Carrier Jetsolutions 14 May 2012. Geneva, sWitZeRLanD– Qatar airways today announced a strategic al-liance with fractional jet programme providerFlexjet to offer customers access to over 5,000destinations beyond the Doha-based airline’s fournorth american gateways. Flexjet is aircraft man-ufacturer Bombardier’s fractional ownership busi-ness, providing access to more than 80 modernexecutive aircraft. aircraft available as part of theFlexjet Connect programme, are operated by U.s.air carrier Jet solutions. the new agreement, ef-fective today, May 14, enables customers travel-ling on Qatar airways’ scheduled flights to andfrom new York, Washington, houston and Mon-treal, to book a private premium jet service in asingle transaction to cover over 5,000 airportsacross the region. the exclusive partnership, man-aged by the airline’s private jet division Qatar ex-ecutive as part of Qatar airways’ premium productportfolio, will ensure passengers have seamlessand hassle-free onward connections in america,Canada, as well as parts of Mexico and the tropicalislands of the Bahamas and turks & Caicos.speaking at a press conference at eBaCe, eu-rope’s premier business aviation show, in Genevatoday, Qatar airways Chief executive Officerakbar al Baker said that the new service was yetanother enhanced product offering by Qatar’s na-tional carrier. “We are extremely pleased to belaunching this new programme and are confidentthat it is an attractive product offering for individ-uals and large multi-national companies alike,”said al Baker. “today’s customers want flexibility,extensive reach, confidentiality and convenience

all from a single source. “this new alliance givescustomers from Qatar and the rest of the airline’sinternational network the ability to book theirtravel on Qatar airways’ commercial service andon-demand private jets to their onward destina-tion within north america with a single phonecall. Vice versa we look forward to providing thetravelling public from north america a premiumdoor-to-door service when heading to the Middleeast and beyond.” Flexjet President Fred Reidsaid: “With a growing focus on the internationalbusiness market, we have seen an increase in de-mand for travel to the Middle east and the sur-rounding regions. today’s alliance with Qatarairways – an award-winning airline that sharesFlexjet’s passion for high levels of customer serv-ice – is an ideal way for us to provide a global avi-ation solution to our owners. it’s a win-winsituation for all.” While Qatar airways’ customerscan obtain guaranteed access to a wide range oftop-of-the-range Bombardier business jet aircraft,operated by U.s. air carrier Jet solutions, and ac-cess to over 5,000 airports in north america withas little as 24-hours advance notice, Flexjet frac-tional owners gain premium travel benefits be-yond their north american service area, includingaccess to Qatar executive’s ultra-modern fleet ofBombardier private jets. PRESS RELEASE

P&g Pakistan announces gift tomoms of Olympians on mother’s Day KARACHI: Procter & Gamble, a WorldwideOlympic Partner and the Company behindbrands like Pampers®, ariel®, safeguard ®,head and shoulders ® and Pantene®, todaylaunched the next phase of its “thank You Maa”campaign. P&G Pakistan has announced a spe-cial gift to moms of all Olympians who will repre-sent Pakistan at the London 2012 Olympic Gamesin appreciation of their efforts in raisingOlympians and making Pakistanis proud. “Ourgoal through this campaign is to thank everymother in Pakistan and around the world,” saidFaisal sabzwari, Country Manager P&G Pakistan.“through this campaign we want to recognizeevery mother for the unconditional love, supportand sacrifice she offers. We hope everyone willjoin us this Mother’s Day in saying a huge ‘thankyou Maa’ to all mothers across the country.”“Mothers play a very important role in helpingtheir children achieve their dreams and ambi-tions” said syeda tehseen akhtar, mother of so-hail abbas, Pakistan’s hockey star and worldrecord holder of the highest number of penaltygoals. “i have watched sohail work very hard forthis moment since he was a child. to be able tosupport him as he aspires for the gold in the

Olympic Games means so much to my family andme. “i am thrilled to be a part of the P&G Proudsponsor of Moms campaign which is paying trib-ute to all the Pakistani moms out there who aredoing the very same thing for their children dayin and day out.” P&G’s gift to moms exemplifieshow the Company is bringing its “thank You,Maa” campaign to life, honoring moms for allthey do to help their kids achieve their dreams.this announcement follows the recent launch ofthe “Best Job” film which serves as the inspirationbehind the entire campaign. there have beenmore than 5 million views of the film globally,helping to raise awareness of the Company’s goalto thank every mom in the world through itsOlympic Games program. “We believe that be-hind every athlete is an even more amazing mom– who has been supporting her child every stepof the way,” said Marc Prichard, Global Market-ing and Brand Building Officer. “Because P&G isin the business of helping moms and families, weare proud to support moms of Olympians duringthe Olympic Games.” PRESS RELEASE

Omnicom media group moves tonew office KARACHI: Omnicom Media Group (OMG),which started operating in Pakistan in 2010, hasnow moved to Razi towers (5th Floor), MainClifton Commercial area above Gul ahmed ideasshowroom. the new, modern office houses OMDand PhD and has the right ambiance for a dy-namic, expansion oriented Media Group likeOMD. OMG has been named as the most creativemedia agency in the world for the past five yearsby the Gunn Report, and recognized as the mostawarded agency by prestigious advertising pub-lications like adage, Campaign and ad Week in2008, 2009 and 2011. PRESS RELEASE

CORPORATE CORNER

Major Gainers

Company open high Low Close Change turnover

nestle Pakistan Ltd. 3954.68 4149.00 3758.00 4088.00 133.32 8,030rafhan MaizexD 2900.00 3000.00 2895.00 3000.00 100.00 146Colgate Palmolive 925.00 950.00 930.00 950.00 25.00 301indus Dyeing 390.17 409.50 370.67 401.09 10.92 345sanofi-aventisxD 189.86 199.35 190.00 198.15 8.29 3,470

Major Losers

unilever foodsPot 3316.85 3200.00 3152.00 3196.00 -120.85 30wyeth Pak Limited 803.15 770.00 770.00 770.00 -33.15 100Pak.int.Cont sD 174.85 175.00 166.11 166.11 -8.74 17,373Mithchells fruit 204.35 202.00 195.00 196.00 -8.35 1,816island textile 199.43 199.99 189.46 192.41 -7.02 257

Volume Leaders

P.t.C.L.a 16.36 17.10 16.40 16.98 0.62 23,319,512engro foods Ltd. 66.30 67.25 62.99 63.67 -2.63 21,386,483D.g.k.Cement 44.95 45.81 42.80 43.15 -1.80 14,663,992Jah.sidd. Co. 16.19 16.93 16.31 16.59 0.40 9,871,280Bankislami Pakistan 6.97 7.97 7.00 7.97 1.00 6,278,251

Interbank RatesUs Dollar 90.8626Uk Pound 146.0162Japanese Yen 1.1369euro 116.6858

Dollar EastBuy sell

us Dollar 91.50 92.10euro 116.26 117.16great Britain Pound 145.96 147.05Japanese Yen 1.1333 1.1417Canadian Dollar 90.53 91.72hong kong Dollar 11.64 11.80uae Dirham 24.86 25.02saudi riyal 24.38 24.50australian Dollar 90.51 92.65

KARACHI

STAFF REPORT

On tuesday, the bulls keptdominating karachi stocksmarket with the benchmark,kse 100-share index sky-

rocket 84.90 points. ahsan Mehanti, Di-rector at arif habib investments Limited,said that the Pakistan stocks closedhigher amid trading in narrow range asprogress towards reopening of natOsupplies triggers institutional supportand investors speculate on favorable fed-eral budget announcements for corporatesector. the day saw the index closing upby 0.60 percent at 14,313.67 pointsagainst 14,228.77 points of first workingday of the week. the trading volumes atthe ready-counter were recorded higherat 152.800 million shares against 101.423million shares of the previous day. thetrading value was up to Rs 6.303 billioncompared to Rs 3.796 billion of the lastday session. the intraday high and low,respectively, stood at 14,373.12 and14,228.77 points. he added that the in-vestor interest in blue-chip stocks in over-sold fertiliser, cement, telecom sectorswitnessed despite uncertain global stocksand commodities on euro zone debtcrises. the market capitalisation grewmodestly and increased to Rs 3.655 tril-

lion from Rs 3.635 trillion a day earlier.Of the total 371 traded scrips, 170 gained,134 lost and 67 finished as unchanged.the free-float kse-30 index also gained90.79 points to close at 12,501.20 pointsagainst the previous 12,410.41 points. thekse all-share index closed with a gainedof 56.20 points to 10,041.67 points asagainst 9,985.47 points. Mehanti statedthat strong earnings outlook for oil sec-tor, expected double digit rise in PsDP al-locations in federal budget and hopes forearly resolution of circular debt issuesplayed a catalyst role in bullish senti-ments at kse. P.t.C.L.a was the day’svolume leader counting its traded sharesat 23.319 million with the opening andclosing rates standing at Rs 16.36 and Rs16.98, followed by engro Food Limited,D.G.k. Cement, Jahangir siddiqui Com-pany and Bank islami Pakistan withturnover of 21.386 million, 14.663 mil-lion, 9.871 million and 6.278 millionshares respectively. On the future mar-ket, the turnover recovered by over onemillion shares to 13.996 million against12.647 million shares of Monday. thenestle Pakistan Limited and RafhanMaize XD, up Rs 133.32 and Rs 100.00,led highest price gainers while, UnileverFood sPOt and Wyeth Pakistan Lim-ited, down Rs 33.40 and Rs 21.81 respec-tively, led the losers.

Bulls rescue index frombear intimacy

Everything’s evaluatedLAHORE: a spokesperson of the Food Department has said thatfurther to invitation the prequalification applications for the Pun-jab Multi Grain storage PPP Project issued on March 5, a total of12 parties submitted their prequalification applications by april19, 2012 deadline. he said that the Project evaluation Committeeheaded by secretary Food Punjab, has evaluated all the applica-tions received and prequalified seven parties namely Matco Rice(Pvt) Ltd., khawaja Bashir Group Consortium, Pak-turk Consor-tium, sadiq Feeds (Pvt) Ltd., Fauji akbar Portia & China harbourengineering Company Consortium, Chawalwallas Consortiumand Multi-Grain Consortium. these parties will now be invited toparticipate in the bidding phase of the Punjab Multi-Grain storagePPP Project, details of which will be communicated to the prequal-ify bidders by the Food department over the coming days, headded. he further said that parties which submitted prequalifica-tion applications, but were found not to meet the prequalificationrequirements, and hence were not prequalified include anC Con-sortium, Guarantee engineers, kinetics engineering, agrow Con-sortium and Mn Construction Company. STAFF REPORT

PASDEC not losing their marblesISLAMABAD: Pakistan stone Development Company (Pas-DeC) will establish another marble quarry up-gradation projectin Fata to develop the marble and granite sector of Pakistan. inthis connection an agreement was signed between PasDeC andBadal Mining Company at PasDeC head Office islamabad ontuesday. CeO, PasDeC, Mr. ihsanullah khan and senator Mr.hadyatullah khan of Badal Mining Company have signed theagreement. the quarry up-gradation project will establish atnawagai in Bajaur agency of Fata. at the time of agreement Mr.shahid-ur-Rehman, director Board of Director PasDeC and Mr.Farooq azam, Manager Project PasDeC, were also present. Re-cently a MoU had been signed between PasDeC and Badal Min-ing Company in this regard. CeO, PasDeC, Mr. ihsanullah khanexpressed hope that the project will be a mile stone for develop-ment of Fata marble sector. it will also generate employmentoppportunities for locals. NNI

A BEAr-AND-BuLL STOrYFOOD DEPT DIArIES

STONE AgE CONTINuES

g KSE overcomes bear hug to post 88-point gain

NEW YORK

REUTERS

the company foundedin a harvard dormroom by Mark

Zuckerberg raised the pricetarget range to between $34and $38 per share in responseto strong demand, from $28to $35, the company said in afiling with the U.s. securitiesand exchange Commission ontuesday.that would value Facebook atroughly $93 billion to $104billion, rivaling the marketcapitalization of internetpowerhouses likeamazon.com inc andexceeding that of hewlett-Packard Co and Dell inccombined.at the mid-point of $36,Facebook would raise $12.1billion, eclipsing Google inc’sdebut in 2004.Wall street had expected thecompany to increase the pricerange, with investors keen toget a slice of a strongconsumer brand. the iPOroadshow began last week andhas drawn crowds of investorsfrom coast to coast.Facebook plans to close thebooks on its iPO later ontuesday, two days ahead ofschedule, and in a signal thatthe landmark initial share saleis drumming up strongdemand, a source familiarwith the deal told Reuters onMonday.the social network is

scheduled to price its shareson thursday and begintrading on Friday.the iPO is already “welloversubscribed,” which is whythe company is closing itsbooks earlier than anticipated,the source said.What neXt?Facebook plans to sell 337.4million shares, or 12.3 percentof the company. the capital-raising target far outstripsother big internet iPOs.Google raised just shy of $2billion in 2004, while last yearGroupon inc tapped investorsfor $700 million and Zyngainc raked in $1 billion.the higher price range marksan increase of 21 percent onthe lower end.the iPO comes amid concernsfrom some investors thatFacebook hasn’t yet figuredout a way to make moneyfrom an increasing number ofusers who access the socialnetwork on mobile devicessuch as smartphones.Company executives met withprospective investors inChicago on Monday and areslated to travel to kansas Cityand Denver, before returningto Menlo Park, California,where Facebook isheadquartered.a host of Wall street banksare underwriting Facebook’soffering, with Morgan stanley,JPMorgan and Goldmansachs serving as leads.Facebook will trade on underthe symbol FB.

Facebook hikes IPO rangeto raise $12.1 billiong Facebook Inc has increased the price rangein Silicon Valley’s biggest-ever initial publicoffering to raise more than $12 billion,giving the No.1 social network a valuationpotentially exceeding $100 billion

KARACHI: PSO Chairman Sohail Wajahat Siddiquireceiving a memento during an award ceremonyorganised at the Institution of Engineer’sPakistan (IEP). Dr Farooq Sattar was chief gueston the occasion. PRESS RELEASE

PDF Profit_Layout 1 5/16/2012 2:33 AM Page 3