NEW DELHI

AFP

INDIA and Pakistan, still at log-gerheads on Kashmir and nocloser to a full peace deal, arechannelling their efforts into in-

creasing trade in the hope that businesscan bring them together.

Thirty-one-year-old Karachi foodtrader Kashif Gul Memom is amongthose eager to seize the opportunitiesoffered by easier links between the es-tranged neighbours, which havefought three wars since independencein 1947. “This is a change for the good.It’s an exciting time,” said Memom,one of the generation born after thepainful partition of the subcontinentthat gave birth to India and the Is-lamic republic of Pakistan.

“My generation of business peo-ple is putting the past behind us.We’re looking to the future, India issuch a huge market for us,” Memomtold AFP while at the largest ever Pak-istani trade fair held in India.

The improved relations betweenthe nuclear-armed rivals stem fromPakistan’s decision to grant India“Most Favoured Nation (MFN)” sta-tus by year end, meaning Indian ex-ports will be treated the same as thosefrom other nations.

In further progress, the neighboursopened a second trading gate in April

along their heavily militarised border,boosting the number of trucks able tocross daily to 600 from 150. India nowalso says it is ready to end a ban on in-vestment from Pakistan and the coun-tries are planning to allowmultiple-entry business visas to spur ex-changes — a key demand by companyexecutives. The warming commercialties underline the new relevance of the

private sector in the peace process, withprospects still low for any swift settle-ment of the “core issue” of the nations’competing claims to Kashmir. The di-vided Himalayan territory has been thetrigger of two of their three wars sinceindependence. Indian and Pakistani of-ficials have been looking at the so-called“China option” as a model, with deepen-ing economic engagement seen by ex-

perts as crucial to establishing lastingpeace in the troubled region. Beijing andNew Delhi have been pursuing strongereconomic ties while resolving outstand-ing political issues, such as a festeringborder dispute that erupted into a brief,bloody war in the 1960s.

“There is no other option but eco-nomic partnership between India andPakistan — this leads on to other part-nerships,” Indian Commerce MinisterAnand Sharma said at the April tradefair in Delhi, a follow-on to a similarventure in Lahore earlier in the year.

profit.com.pk

NeIGHBoURLY LoVe-IN ePISoDe 127Thursday, 03 May, 2012

INDEED, the more things change, the more theysometimes remain the same, especially in the financeministry in Islamabad, that too when it decides on

the fate of much talked about PSEs, hemorrhagingapproximately Rs300 billion every year even as theeconomy is choked by stagflation. Finance minister DrSheikh did not take piercing questions on the PSE mattertoo well at our usual pre-budget seminar almost exactlyone year ago, promising visible change before the fiscalran its course. Yet there is no movement. There is noteven a decision on the fate of these sick entities. Whetherprivatisation or strategic restructuring under governmentcontrol, which is it going to be? The picture is no clearerthan one year ago. Yet even before crucial long term decisions are made, theinitial exercise will be the same. Even if privatisation ischosen as the way forward – which is hardly likely – thesemoney losers will first have to be brought back into shape,so much of the initial management decisions will be thesame. That there is still no movement means one of twothings. One, the finance ministry, and therefore also thehighest offices of government, are simply not aware of theneed to return to profitability, at least stem leakages. Nowthat is hardly likely, so reluctance must be deliberate.Two, there is simply no government will to move forwardon the PSE issue. Tough decisions will have to be made.Political appointees will have to be shown the door.Competence will need to be rewarded. Hardly anappetising election year cocktail for those in power. So thePSEs shall remain a debilitating anchor weighing downthe entire economy. Even now, news reports indicatinghigh-level ministerial committees looking into the matterare simply page fillers. True, the more things change themore they remain the same.

coMMeNT

The more things change

Loveth thy neighbour and not question why;for, lo and behold, with MFN comes FDI

DUBAI: An official announcement to declare India the MostFavoured Nation, or MFN, by Pakistan is expected by the end of thisyear, a top government official said. The central banks of the twocountries are in close touch to clear the way for the opening of bankbranches in each other’s territory by early next year. “Actually thecabinet of the Government of Pakistan in principal agreed that Indiais a business partner. There are some technicalities and after thoseare resolved then the final shape will be done,” Pakistan’s FederalCommerce Minister Makhdoom Amin Fahim told Khaleej Times atthe Annual Investment Meeting in Dubai. New Delhi gave the MFNstatus to Pakistan in 1996. In recent months, both the countriesdiscussed a lot to increase trade relations. Pakistan drasticallyreduced the number of Indian products barred from the country andIndia decided to lift a ban on foreign direct investment from Pakistan.Fahim mentioned that the negative list is being discussed between thetwo sides through secretaries of commerce and they already havedone two meetings. This month again a meeting is going to be heldand there will be a lot of progress, he added. “I believe the target is bythe end of this year to complete all the requirements,” he said. Whenasked if there is any expectation that the Pakistan will officiallyannounce the MFN status for India by the end of this year, he replied:“Definitely.” Banks play important role for bilateral trade, the reasonwhy the Reserve Bank of India and the State Bank of Pakistan areexploring the possibility of opening branches in each others’countries. “In principle, we have decided that the branches of the twocountries’ banks will be opened at both sides. Central banks of boththe countries will sit together and work out the strategy to go forward,he said, adding: “I think the complete package will be completed bythe end of December this year.” When asked about the opening ofbranches early next year, he said, “yes”. National Bank of Pakistan(NBP), the government-owned bank, confirmed the progress onbranch opening in India. “Yes we are working on it and NBP will bethe first bank to open a branch in India,” Muhammed Imran Butt,senior vice-president and regional chief executive of NBP offshorebanking in Bahrain, told Khaleej Times on the sidelines of AIM. “Itwill benefit traders of both the countries,” he added. Both thecountries are also discussing relaxation in visa rules. ONLINE

Pakistan set to accord MFN statusto India before the year goes by

ISLAMABAD: President Asif Ali Zardari has said that grantingMost Favored Nation trading status to India was a paradigmaticshift in policy driven by the business sectors on both sides of theborder. He said that the decision would reconstruct the region’seconomies and increase its stability. This he said addressing agathering comprising of ambassadors, High Commissioners,diplomats and the members of LCCI Executive Committee, during adinner hosted by Lahore Chamber of Commerce & Industry here atAiwan-e-Sadr today. Governor Punjab Sardar Latif Khan Khosa,Governor Khyber Pakhtunkhwa Barrister Syed Masood Kausar,Governor Gilgit Baltistan‚ Pir Syed Karam Ali Shah, federalministers and parliamentarians were also present. He said thatPakistan has signed Business Investment Treaties with manynations to boost business activities. The President while callingupon the international community for investments in Pakistan saidthat the Government will provide the best possible enablingenvironment for the foreign investment. Pakistan, the Presidentsaid, was committed to promote an investor-friendly environmentand it has much more to offer than bad news only. According toprepared text of his speech, the President said that Pakistan wascommitted to promoting an investor-friendly environment and wasoffering the most liberal investment policy regime in the region. Theincentives, he said, include full repatriation of capital, capital gains,dividends and profits. Recounting challenges and opportunities tothe Pak economy, the President said that poor infrastructure, loadshedding and inadequate gas supply were among the majorchallenges to the economy. He said that another major issue thatconcerned the international community was the lack of access to theinternational markets in the way of Pakistan having trade and notaid. The President while calling upon the business community toassist the Government in formulation of the policies reiterated hiscall for ensuring the continuity of the economic policies. One of thegreatest issues in our economic development, the Presidentemphasized, has been the absence of continuity in economicpolicies. The business community should take ownership of thepolicies and should then defend those policies even as governmentschange, the President said. INP

Zardari touts MFN a landmark, astrade hopes soar towards the sky

NEW DELHI: The government on Wednesday said ithas in-principle decided to allow foreign directinvestment from Pakistan and the move was expected toenhance commercial engagement between the twocountries. When asked whether government has decidedin principle to allow FDI from Pakistan, Commerce andIndustry minister Anand Sharma, in a written reply to theRajya Sabha said “yes”, reported PTI. However, he said,that no foreign direct investment (FDI) targets have beenfixed. “The move is expected to enhance the commercialengagement and bilateral trade between India andPakistan,” Sharma added. He said during discussions,both sides agreed on the desirability of promotingbilateral investments and removing impediments for suchinvestments. “A greater degree of bilateral investmentcould strengthen exports from India to Pakistan. Exportsin sectors such as agriculture produce, chemicals, textiles,auto components could be enhanced through bilateralinvestment,” Sharma said. To another question, Ministerof State for Commerce and Industry Jyotiraditya Scindia,said the issue of permitting FDI from Pakistan wassubsequently examined through inter-ministerialconsultations. “Following consultations, the ministry offinance has been requested to take steps to appropriatelyamend the relevant Foreign Exchange Management Act(FEMA) Regulations,” Scindia said. He said the proposalenvisages allowing investment from the neighbouringcountry through the government approval route, “i.e afterscrutiny by the Foreign Investment Promotion Board(FIPB), wherein relevant considerations, includingsecurity considerations, are taken into account”.Currently, FDI from Pakistan is not permitted. ONLINE

Sharma says India has decided in principle to allow FDI

India, Pakistan give ‘trade diplomacy’ a try

Zardari, LCCI, foreigndiplomats discuss all things fiscal over dinner Page 02

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news02Thursday, 03 May, 2012

LAHOrE

STAFF REPORT

PRESIDENT of Pakistan Asif Ali Zardari has saidthat role of business community is crucial for theprogress & prosperity of the country and theyshould help the government to achieve the eco-

nomic goals. He said that our Government is taking long-term, mid-term and short term measures to bring theeconomy back on rail.

He was speaking at the Annual Goodwill Dinner inhonor of Foreign Ambassadors in Pakistan. The Prime Min-ister of Pakistan Yousaf Raza Gilani was the guest of honor.The LCCI President Irfan Qaiser Sheikh, Senior Vice Presi-dent Kashif Younis Meher and Vice President Saeeda Nazaralso addressed the most high-level gathering while the LCCIformer presidents Mian Mohammad Ashraf, Mian AnjumNisar, Shahid Hassan Sheikh, Mian Misbahur Rehman,Iftikhar Ali Malik, Sheikh Mohammad Asif, Mian ShafqatAli, Senator Zafar Iqbal Chaudhry, Convener StandingCommittee on Diplomatic, Foreign Missions Mian TariqRehman and former EC member Mohammad Haroonwere prominent amongst the others. As many as 50 am-bassadors & diplomats and Federal ministers graced theprestigious function of the LCCI.

The President of Pakistan while highlightingthe contribution of the Industrialists pointed outthat Pakistan’s entrepreneurs ensured the eco-nomic viability of the state that inherited neg-ligible industrial base at the time ofindependence. He said thatthe accelerated growth hasbeen achieved with the coopera-tion of business community. The gov-ernment is availing the assistance ofprivate sector under public-private ventures. Heappreciated the Lahore Chamber of Commerce &Industry, particularly, the LCCI President IrfanQaiser Sheikh, Senior Vice President Kashif You-nis Meher and Vice President Saeeda Nazar forhaving constant liaison with foreign ambassadorsand giving them update on economic situation.

Speaking on the occasion, the LCCI PresidentIrfan Qaiser Sheikh appreciated the efforts of gov-ernment in war on terror and in maintaining thelaw and order in the country. He said that theeconomy of Pakistan is suffering from the fatigueof the war on terrorism. He said that Pakistan haslost more than thirty four thousand lives while itseconomy has taken a hit of around 70 billion dol-lars. He said that Pakistan should be granted max-imum market access on favorable terms so ourbusinesses can create jobs and opportunities forpeople to be hopeful. While seeking the help ofdiplomats, the LCCI President said that Pakistanwants trade, not aid. Irfan Qaiser Sheikh said that

mutual trade could be enhanced by exchanging trade delega-tions and organizing fairs and exhibitions.

For that matter, visa regime needs to be liberalized for thebona fide businessmen in order for them travel frequently.He said that business community believes in economic andtrade diplomacy. Though granting the MFN status to Indiawas a step in right direction opening trade with India shouldnot be at the expense of industry in Pakistan. We can competewith Indian businesses if we have a level playing field. Ourcost of doing business and production is much higher whencompared with India or with other regional economies forthat matter. He said that industry is facing a growing energycrisis especially in Punjab. Our Indian counterparts have bet-ter and cheaper supply of energy. Businesses in large citiesof Punjab such as Lahore and Faisalabad got gas supplies foronly 180 days last year. We got gas supply for only 35 dayssince December 25, 2011. Whereas there is no gas load man-agement program for the industry in Karachi. Similarly the

electricity load shedding in Lahore and Punjab has goneup to 10 hours a day, there is no load shedding of elec-tricity for industry in Karachi.

The energy crisis is one of the key reasons be-hind low economic growth in Pakistan. We cannot

overcome this energy crisis without depending on in-digenous resources. Our energy mix is heav-

ily dependent on oil and gas, accountingfor almost 80% of primary energy sup-plies. We spent around 12 billion dollarson imports of oil last year. Whereas, ourlocal energy potential is based on water,coal and alternative resources such as

solar and wind. We can also harnessresponsible nuclear technology formeeting our future energy needs.He said that Potentially, we havethe wherewithal to grow ataround 7%. We have rich re-source base, young populationand locational advantages. Weare situated in a high growth re-

gion. Neighboring India andChina have seen economic growth over 7%

and 10% respectively for the last two decades.Similarly, Bangladesh and Sri Lanka too havedone well in expanding their economies.

But it seems that we are unable to grow ac-cording to our potential. This is simply becauseof the persistence of complex, long-standing andmulti-dimensional policy, institutional and in-frastructure bottlenecks. The LCCI Presidentsaid that the Federal Budget 2012-13 is beingprepared. This provides an opportunity to en-hance facilitation for the private sector. I wouldmake a few submissions with regards to the forth-

coming federal budget which can boost the confi-dence of our business community.

LAHOrE

STAFF REPORT

CHAIRMAN All Pakistan Textile MillsAssociation (APTMA) Mohsin Azizhas said that the textile industry haspotential to meet shortfall in exports,

reaching $1 billion during first nine months ofcurrent fiscal against the corresponding periodprovided that it is facilitated withuninterrupted energy supply and globallycompetitive interest rates. He said the textileexports have suffered a loss of $1 billion duringfirst nine months of current fiscal against thecorresponding period, mainly due to energycrisis and financial constraints. He said thetextile industry exports have fallen short by10% in value terms and in fact 30% in quantityterms meaning thereby that the earning perunit of exported items has been highercompared with previous year. The textileexports would have crossed $12 billion in firstnine months of current fiscal if productionshortfall in quantity terms had not taken place,he added. Therefore, he said, the textileindustry efforts are commendable as the loss tothe exports in terms of value is not as big as inthe terms of quantity. Only in the month of

March, he said, the quantitative exports ofcotton cloth have declined by 43%, followed by33% drop in knitwear, 30% in bed wear, 22% intowel and 35% in readymade garments. Mohsinsaid had there not been energy crisis andfinancial constraints, the textile exports wouldhave been more than $12 billion against $9billion at present. Chairman APTMA said thatalthough there is a loss of $1 billion during firstnine months of current fiscal comparing withthe previous in value terms but the textileindustry can still work for the remaining periodand try to achieve previous years’ benchmark ifpolicy of due weight to textile industry remainsintact, as promised by the President. He saidthe spinning industry is being hit hard due todrop in exports of value added textile chain asall of these are consumers of yarn. The StateBank of Pakistan should facilitate the textileindustry in order to restore its viability, headded. He said there is a strong potential intextile industry to break the previous highestrecord of exports during remaining period ofcurrent fiscal if government ensuresuninterrupted energy supply, both electricityand gas. The industry has already performed interms of per unit price, and it can repeat thehistory subject to redressal of issues, he added.

NEWS DESK

WHEN Research In Motion Ltd. ChiefExecutive Officer Thorsten Heinsunveiled a prototype of the new

BlackBerry 10 phone yesterday, it lacked afeature that has kept legions of users loyal to theplatform: a physical keyboard. At theBlackBerry World expo in Orlando, Florida, heshowed off a sleek touch-screen device thatmore closely resembled an iPhone or Androidsmartphone than the keypad-equippedBlackBerrys of old. While RIM still plans toproduce models with keyboards, thedemonstration was the biggest signal yet thatthe company was shifting to a touch-screenworld. RIM, which is counting on its redesignedBlackBerry 10 lineup to reverse a sales slump,faces a quandary. Smartphone users haveembraced virtual keyboards, evidenced by AppleInc. and Google Inc. accounting for more than80 percent of the market. Even so, taking awayRIM’s physical keypad removes a feature thatdistinguishes it from the competition. “Somewill lament it, but others will embrace it,” saidNigel Hughes, a vice president in charge of sales

at Ashburn, Virginia-based SteelCloud Inc.,which builds BlackBerry- compatible securitysoftware and hardware for customers such asthe Department of Defense. “It’s a recognitionthat the future is without a keyboard.” TheiPhone’s debut in 2007, followed by Androiddevices a year later, showed that users werewilling to embrace phones without a keyboard.While RIM made a foray into the touch-screenmarket in 2008 with the BlackBerry Storm,most of its lineup kept the keypads. The Stormwas criticized for buggy software and wasoutsold by the BlackBerry Curve and Boldmodels, which both feature keyboards.HEAD to HEAD: Scrapping the physicalkeyboard from the initial BlackBerry 10 devicewill put it in closer competition with the iPhoneand Android models, such as the SamsungGalaxy S. That could be tough for RIM, saidStephen Beck, a managing partner at thetechnology consulting firm CG42 LLC inWilton, Connecticut. “If you’re forcing amigration to non-keyboard, you’re going to getpeople asking, ‘What’s the best of breed of thosedevices?’” Beck said. “Given the momentum ofiPhone and Android, that’s going to be a toughargument for RIM to win.”

Meeting export shortfall is no biggie

SHAHAB JAfry

FINANCIAL markets can and do act a littledicey as budget time draws near, especially intimes like the present, with the bourse lockedin furious bull-run even as the real economy

tears at the seams. There’s the expectation of benefitsand patronage for sectors bidding up the market; theprospect of tax relief; the turn from technicals tomarket chatter, following matters related to subsidies,etc. And considering the market’s recent waltz past thepsychological 14,000 mark, a number of interestingtrends are emerging. One, the cement sector has played handsomely in timesof increased demand, both local and cross-border.Rapidly rising prices have not led to supply constraintsor hoarding, or much uproar for that matter, whichmeans the uptrend has some time before it plateaus. Itis well positioned to cater to rising demand on botheastern and western borders.The trade breakthrough with India is a windfallmoment for the sector, even though final checks andbalances need revisiting considering India’s unfair (andundocumented) concerns regarding tonnage etc at thecrossing. And Afghan reconstruction is alreadygathering momentum. A win-win in both cases, whichis why brokers have begun betraying expectations oftax relief in the budget. Take a hint!Two, the banking sector has been an appreciatedcontributor to the uptrend, but it has remained belowpar, with ample upside potential. It’s collective star,and share value, is set to rise as sure, rare signs offoreign interest and investment begin gracing thesector. And with high return on offer in terms of

dividends and bonuses, investment in banking scrips isnot a bad call as the market moves beyond the 14kbarrier and banking profits put the sector back in thelimelight as a potential growth engine. Three, with harvesting season underway, time hascome to play the cyclical boom in fertiliser scrips,especially since they traded well below par all thewhile the market roared from one milestone toanother. Despite its range-bound trading of the lastmonth, at the heels of a lackluster showing at bestover the market’s last four-and-a-half thousandpoints rise, fertiliser is positioned to do well all theway to the budget, at least. Four, oil sector performance too has been below par,especially considering earnings in recent quarters. Thesector takes cue from international price movements inblack gold, where WTI crude has just generated a buysignal at $109/barrel, banking no doubt on improvednumbers from America to generate additional summerdemand. And as oil rises, local companies’ books willno doubt register profits, which must be reflected in theeventual market price. Oil too should do well inwhatever remains of the outgoing fiscal. Once again, it’s that time of the (financial) year whentechnical indicators are ignored in favour of marketinsight banking on well placed information flow (notthat technicals are a good call at the KSE in the best oftimes). For the moment, it seems the chatter is tiltingtowards a highly bid market by the time Dr Sheikhpresents the next budget. Stay long, stay happy.

The writer is Business Editor, Pakistan Today.Comments and querries:jafry.shahab@pakistantoday.com.pk

BlackBerry 10 unveiled as RIM aims to challenge Apple

Zardari, LccI, foreign diplomatsdiscuss all things fiscal over dinner

ISLAMABAD

AMER SIAL

THE government’s apathetic decision topass on the massive increase inpetroleum prices to consumers lastmonth has boomeranged, as the

inflation based upon the consumer price index(CPI) increased by 11.3 percent on year-on-yearbasis in April 2012 as compared to 10.8 percentin the previous month of March.Due to the increase in POL prices the CPI hasincreased to the highest level in 14 months withinflation increasing by 1.8 percent in April 2012.The hike in consumer prices and its expectedincreasing momentum in the coming monthshave put at rest all boastful official claims tocurb inflation. The government’s decision not toshare decline in POL prices with the people willlead to further hike in prices of consumer items.According to the data of the Pakistan Bureau ofStatistics (PBS), core inflation measured bynon-food non-energy CPI (Core NFNE)increased by 10.8 percent in April 2012 as wellas in March 2012(YoY) and by 9.5 percent inApril 2011. Core NFNE inflation on MoM basis

increased by 1.4 percent in April 2012 ascompared to 1.0 percent a month earlier and1.4 percent in April 2011.Core inflation, measured by 20 percentweighted trimmed mean CPI (Core Trimmed)increased by 11.0 percent in April 2012 and by10.5 percent in March 2012 (YoY) whichincreased by 12.0 percent in April 2011. CoreTrimmed inflation has increased by 1.3 percenton MoM basis in April 2012 compared with 0.8percent in March 2012 which increased by 1.0percent in April 2011.SPI inflation on YoY basis increased by 7.5percent in April 2012 compared with 6.1percent a month earlier and 14.2 percent inApril 2011. On MoM basis, it increased by 1.7percent in April 2012 as compared to anincrease by 1.5 percent a month earlier and anincrease of 0.3 percent in April 2011. WPIinflation on YoY basis increased to 3.8 percentin April 2012 compared with 4.5 percent amonth earlier and 24.9 percent in April 2011.WPI inflation on MoM basis increased by 1.8percent in April 2012 as compared to anincrease of 0.7 percent a month earlier and anincrease of 2.5 percent in April 2011.

Market turns from technicals to chatter Boomeranged! INFLATeD INSIGHT

g Massive increase in PoL prices increases inflation g cPI increases to 14-month high g SPI inflation on YoY basisincreases by 7.5 percent in April 2012

DINNeR RecIPeS APTMA’S AMBITIoUS AIMS

FRUIT RIVALRY

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news

Thursday, 03 May, 2012

03

Live on the edge with Warid’s mobile internet – Superior service quality nationwide

KARACHI: Inkeeping withbrand’s commit-ment to provideits customerswith reliable in-ternet service,Warid Telecom isproud to reveal anew dimensionwith its improvedEdge service.This servicemarks the tele-com company’sstep forward inmobile internet.This improvedversion of theEdge service of-

fers greater reliability, speed, and a one stop solutionfor all your data needs across the country. Warid’sEdge services will empower consumers with a fasterand more consistent online experience which allowsrapid browsing as well as faster downloading no mat-ter where you are. Warid is set to take the campaignon-ground with innovative activation that will allowthe consumer to experience the superior quality ofmobile internet service first hand. PRESS RELEASE

SLIc allocates a record amount ofRs 23.454 billion as bonus to policy-holdersKARACHI: “State Life Insurance Corporation ofPakistan has allocated a record amount ofRs.23.454 billion as Bonus on with-profit policiesof the valued policyholders as per the actuarialevaluation of 2011”. This was stated by Mr. Muzaf-far Ahmed, Head of the Corporate Communica-tion Department, while talking to the seniormedia persons at Principal Office, Karachi. Healso informedtoday in an important meeting ofthe Board of Directors chaired by Mr. Shahid AzizSiddiqui, Chairman, State Life; a total amount ofRs.23.454 billion as bonus to policyholders hasbeen approved, showing an increase of 26.13%against the last year i.e. 2010. He also informedthat State Life annually allocates 97.5% from itsactuarial surplus income as Bonus to policyhold-ers which is added to with-profit policies of the

valued policyholders and the remaining 2.5% isinvested in Government of Pakistan’s long termeconomic plans. He also stated that comparativelyduring the year 2010, State Life had allocated anamount of Rs.18.595 billion as Bonus to policiesof the valued policyholders. Mr. Muzaffar Ahmedinformed that State Life is providing optimum re-turns as Bonuses which are increasing from yearto year. Head of Corporate Communications fur-ther informed that the Life Fund of State Lifestood at Rs.269 billion. PRESS RELEASE

Hardee’s to open outlet in centaurus Mall

ISLAMABAD: A lease agreement was signed be-tween PakGulf Construction Pvt Limited and MDSFoods Pvt Limited for the opening of Hardee’s outletat the Centaurus Mall. The signing ceremony tookplace at The Centaurus’ sales and marketing suite,here in Islamabad. During the ceremony, the CEOof PGCL, Mr. Sardar Tanvir Ilyas Khan said, “Wefeel extremely proud that The Centaurus Mall is aplace of preference for discerning brand operatorsboth local and international. We shall soon be open-ing the doors of this world class retail and familyleisure center, which is destined to become the mostvisited destination for all.” Mr. Sohail Yousaf, CEOof MDS Foods Pvt Ltd said. “After successful open-ing of Hardees in Islamabad, we now envisage fur-ther diversifying in the market to serve our avidcustomers and we are excited about opening the 2ndoutlet in the most awaited shopping arena, The Cen-taurus Mall.” The event was attended by represen-tative of Al-Tamimi Group Saudi Arabia, and seniorstaff members from The Centaurus. PRESS RELEASE

SAP provides mobility, real-timeanalytics through HANATMKARACHI: SAP Pakistan introduces analyticalERP solutions for businesses in Pakistan which aregeared to provide operational efficiency and excel-lent ROIs through higher productivity and better

management of routine functions. These techno-logical offerings such as SAP HANA are aimed atproviding mobility to companies through resource-ful database management and revolutionizing de-cision-making by dramatically increasing the speedof existing processes and accessing large amountsof data in shorter periods of time. In today’s highlycompetitive business climate, immediate access toand analysis of all operational data ultimately de-termines the success of an organization. Compa-nies demand insight into business operations asthey happen in order to be able to react quickly tochanging market conditions. To have a firm grip onthe market pulse, SAP Pakistan provides the bestpossible solutions for companies belonging to anysector. Speaking on the occasion, Darren Rush-worth, Executive Managing Director, SAP Pakistanand the Emerging Markets said, “SAP Pakistan re-mains committed to the development of the busi-ness sector of this country and in order to providethem with better functionality and operationsmanagement, we are introducing pioneering ERPsolutions which will increase their efficiency andthus benefit their productivity.” He stressed on theimportance of better technological infrastructurefor companies and said, “Organizations need to beprovided with better technical framework anddatabase management and SAP Pakistan providesthem with just the right solutions for all their busi-ness-related problems.” PRESS RELEASE

PTcL brings an unbeatable new‘Pakistan Plus Package’ISLAMABAD: In an unbeatable new offer, Pak-istan Telecommunication Company Limited(PTCL) has upgraded its “Pakistan Plus Pack-age”, now giving more free minutes, exceptionalvoice quality and free conference calling facilityto its valued customers. PTCL customers cannow avail never-ending on-net 1,100 nationwidefree minutes along with conference call facility atminimal charges of Rs.249 per month. With thenew Pakistan Plus Package, PTCL landline cus-tomers can also enjoy the liberty of nationwideunlimited free calls from PTCL to PTCL andVfone on Sundays. “PTCL continues to providethe most affordable telecommunication packagesand special offers to its customers,” said PTCLSenior Executive Vice President Commercial,Naveed Saeed. “With this revision , we havemade 24/7 connectivity possible with unmatchedvoice quality and, that too, at the lowest rates inthe industry for all our valued customers.” “Ouraim is to exceed the expectations of our cus-tomers by providing them unlimited on-net di-aling facility at the lowest rate,” said PTCLExecutive Vice President Wire-line Business,Aasif Inam. PRESS RELEASE

CORPORATE CORNER

Major Gainers

Company Open High Low Close Change Turnover

Unilever Food 2459.99 2582.94 2550.00 2582.94 122.95 120UniLever Pak Ltd 6326.29 6500.00 6331.00 6400.00 73.71 314Nestle Pakistan Ltd. 4155.30 4249.00 4143.00 4196.99 41.69 39Indus Dyeing 398.98 418.92 415.00 418.69 19.71 210Wyeth Pak Limited 749.23 769.99 765.00 768.31 19.08 55

Major Losers

Bata (Pak) XD 664.49 664.49 632.00 632.91 -31.58 75Siemens Pakistan 709.05 709.00 700.00 700.00 -9.05 345Millat Tractors 509.64 510.00 500.00 500.99 -8.65 27,128Sanofi-AventisXD 160.00 154.50 152.50 152.79 -7.21 450Pak Gum & ChemXD 142.12 148.69 139.00 139.20 -2.92 2,648

Volume Leaders

K.E.S.C. 3.70 4.54 3.85 4.47 0.77 20,648,059P.T.C.L.A 12.55 13.55 12.39 13.52 0.97 18,619,551Lafarge Pakistan 4.83 5.36 4.80 5.27 0.44 13,640,165Jah.Sidd. Co. 14.93 15.93 14.61 15.93 1.00 13,491,762Fatima Fert.CoXD 23.25 24.41 23.06 24.40 1.15 12,275,250

Interbank RatesUS Dollar 90.9574UK Pound 147.2782Japanese Yen 1.1323Euro 119.5544

Dollar EastBuy Sell

US Dollar 91.20 91.80Euro 119.14 120.25Great Britain Pound 146.69 148.03Japanese Yen 1.1259 1.1361Canadian Dollar 91.33 92.67Hong Kong Dollar 11.58 11.75UAE Dirham 24.72 24.92Saudi Riyal 24.22 24.41Australian Dollar 92.95 95.26

LAHOrE

STAFF REPORT

FEDERAL Board ofRevenue (FBR) DGIntelligence andInvestigation (Inland

Revenue) has unearthed amassive Income Tax fraud ofRs41 millions in which incometax official, in connivance withPunjab Provincial Co-operativeBank (PPCB) and NationalSaving Centre (NSC)employees, issued fake refundsto bogus taxpayers. FBRofficials disclosed that in thistax scam, income tax refundshad been issued in the namesof bogus taxpayers on the basisof excess tax deductions onelectricity bills, which had beendeclared fake by the MultanElectric Power Company(MEPCO) authorities atRajanpur. They pointed outthat income tax refundvouchers which are non-negotiable instruments and are“Payee’s A/c Only” chequeshave been fraudulently

encashed through singleperson’s accounts of personsother than beneficiaries of saidbogus income tax refunds.They revealed that 391 incometax refund vouchers ofRs7,178,200 have beenencashed through twenty two(22) bank accounts, includingpersonal accounts of employeesof PPCB at Punjab ProvincialCo-operative Bank at variousbranches of district Rajanpur.While 784 income tax refundvouchers of Rs15,050,865 havebeen encashed through bankaccounts maintained in thename of persons other thanbeneficiaries of those refunds,at National Saving Centre,Rajanpur. In total, 2161persons to whom refunds ofRs41,311,850 have been issueddo not exist on Stock Registerof Income Tax Office,Rajanpur. Detailedinvestigation conducted by theDirectorate of Intelligence andInvestigation (InlandRevenue), Lahore, has unveiledthat fake and forged records of

bogus taxpayers were preparedby the income tax officials atRajanpur to claim bogusrefunds. Later on, refunds wereissued in the names of thosebogus taxpayers. Managers andstaff members of PPCBprepared fake “Bills ofCollection (BCs)” of differentpersons and after gettingincome tax vouchers clearedfrom National Bank ofPakistan, Rajanpur credited thesame into accounts of personsother than beneficiaries of saidfake refunds, includingaccounts maintained by bankmanagers, staff of bank andfriends / relatives of bank staff.Similarly, managers and staff ofNational Savings Centre,Rajanpur prepared /entertained fake endorsementsgiven on the back of refundvouchers / cheques pertainingto accounts, which either didnot exist or did not pertain tothe payees’, got those refundvouchers cleared from NBP,Rajanpur and credited toirrelevant accounts.

Income tax alwayshad its pros and cons

LAHOrE

STAFF REPORT

TECH Society Club, an elected forumof technocrats and professionals,has demanded of the quarters con-

cerned to fully explore newly inventedsuper efficient permanent magnet, which,according to inventor, can save over fiftypercent of electricity. The demand wasraised during a meeting held at main of-fice of Tech Club the other day. MalikAsad ur Rehman briefed General Secre-tary Tech Society Engr. Mushtaq AhmedBhatti, Mr. M. Jameel Gishkori, Member,Management Committee and SecretaryTECH Society Col. (Retd) Tanvir Ahmedabout salient features of newly inventedsuper efficient permanent magnet. Heclaimed that the invention of the supermagnet, if scientifically explored, can ridthe entire world of high cost of energy. Hemaintained that use of super magnetcould help in reducing negative impacts ofenergy crisis in the country. He added thatnew magnet provided more than 100per-cent additional mechanical output forcethan that of the contemporary electromag-net. Engr. Mushtaq Ahmed Bhatti saidthis magnet, if technically explored, couldhelp a lot in reducing demand of electric-ity. He said department concerned shouldcome forward and lend support for thesuccess of this new invention.

g Rs41m income tax refunds fraud unearthed

LONDON

REUTERS

OIL eased to around $119 a barrel on Wednesday asweak economic data in Europe and the UnitedStates hit the outlook for demand, and a rise inweekly US crude inventories underlined ample

supplies. The euro zone’s manufacturing sector slipped furtherinto decline last month, a survey showed on Wednesday. U.S.private employers added fewer jobs than expected in April andnew orders for U.S. factory goods in March fell. Brent crude forJune slipped 60 cents to $119.06 a barrel by 1451 GMT, aftersettling 19 cents higher on Tuesday. U.S. crude for June wasdown 76 cents at $105.40. “It does feel a bit like we are in anegative death spiral,” said Bjarne Schieldrop, chief commoditystrategist at SEB in Oslo. “Austerity measures over an extendedperiod are showing up in disappointing economic activity.”Adding to the bearish tone, U.S. crude inventories rose by 2.84million barrels last week, a report from the Energy InformationAdministration said, more than analysts’ average forecast of a2.5 million-barrel rise. The EIA report at 1430 GMT alsoshowed declines in stocks of gasoline and diesel, both of whichwere larger than analysts expected, and that crude stocks roseat the key oil hub of Cushing. <EIA/S> “The report doesn’tseem to be supportive of a further rally,” said Gene McGillian,analyst at Tradition Energy. “The draws in product stocks areminimal, crude was up nearly three million barrels, there’s arecord amount of crude at Cushing and U.S. oil stocks are at atwenty-year high.” The EIA, which requires oil companies toprovide information on stock levels, reported a larger drop incrude supplies than industry group the American PetroleumInstitute, which collects information on a voluntary basis. OnTuesday, the API reported crude stocks rose by 2 millionbarrels. Oil remains well below its 2012 high of more than $128a barrel reached in March. Lingering worries about the outlookfor China, the second-largest oil consumer behind the UnitedStates, also helped to pressure prices. “China is a concern, withnew loans falling sharply last month. The question is whetherthe government’s easing measures have come in time for a softlanding,” said Gordon Kwan, head of energy research at MiraeAsset Management in Hong Kong. Chinese bank lending isestimated to have dropped 30 percent in April from a monthearlier as demand for credit declined, the official ChinaSecurities Journal reported on Wednesday. Concern aboutdisruption to supply from Iran has eased in recent weeks asmore conciliatory words are coming from Jerusalem andTehran, which has also helped to bring prices down from theirhigh. Iran said it was seeking an end to Western sanctions overits arms program during talks with world powers and criticizedFrance for helping Israel, the only country in the Middle Eastwidely believed to have atomic weapons.

A magnet can saveover fifty percentof electricity… noseriously it can

oil slips to $119 oneconomy worries,US supplies

WHAT’S THe ScAM?

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