MISSED BY A LIGHT YEAR

Thursday, 12 July, 2012

PIBC arethe levellersgRemoval of negativelist, non-trade barriers togive level playing field toPak-India traders

LAHORE

APP

Removal of negative list for trade with Indiaand removal of non-tariff barriers (NTF) byIndia for trade with Pakistan would have farreaching effects on economies of the twocountries and people would be benefit.Chairman,Pak-India Business Council(PIBC) Noor M Kasuri while talking to APPhere Wednesday appreciated the steps an-nounced by the two governments and ex-pressed hope that they would implementthese as per schedule i.e December 2012.he said that removal of NTF and negativelist would provide level playing filed to ex-porters and importers of the two countriesand it would open new vistas of businessrelations between the neighbouring stateshaving several common features.Quoting a senate standing committee brief-ing on last Monday which told that a meet-ing to import power from India would beheld in Lahore soon, Kasuri said that itwould be a very positive step as Pakistan isin dire need of power and India can help thecountry in the regard.

Where’s theformal application? gBangladesh asked tosend formal request tojoin TAPI project

MANILA

OnLinE

Bangladesh has moved closer to joiningTurkmenistan, Afghanistan, Pakistan andIndia (TAPI) gas pipeline project as AsianDevelopment Bank (ADB) has asked the eco-nomic relations division of Bangladesh’s fi-nance ministry to submit a formal request.The TAPI steering committee, at its meetingon May 23, had discussed Bangladesh’s re-quest for inclusion into the pipeline project.The ADB has requested Bangladesh to sub-mit the request by July 15. Bangladesh is fac-ing severe energy shortage which has affectedpower generation, pushing the governmentto take up costly rental power plant projectsas quick solutions. TAPI would be more feasi-ble for Bangladesh if it is ascertained that thegas imported from Turkmenistan is cheaperthan the LNG import from Middle East. InMay, Turkmenistan on signed an agreementfor the sale and purchase of natural gas aspart of the Turkmenistan-Afghanistan-Pak-istan-India (TAPI) pipeline project. Coun-try’s state gas company Turkmengazsigned gas sales and purchase agreementswith Pakistan's Inter State Gas Systemsand Indian state-run utility GAIL.

KARACHI

STAFF REPORT

ThE details of trade accountfor the just-concluded FY12stood quite disappointing asduring the year totally missed

the budgetary targets breaching to $21.3bn deficit or 9.7% of GDP comparedto the target of $ 14.5bn. The tradedeficit widened up by 36%YoY againstFY11 deficit of $15.6bn.

The exports for FY12 went down by4.7%YoY to $23.6bn compared to$24.8bn witnessed last year. Whereas, aconsiderable growth of 11%YoY was wit-nessed in imports which stood at$44.9bn during the year against$40.4bn witnessed a year earlier.

“These high figures for trade deficitare primarily due to the enormous surgein international oil prices (Arab Light) by19%YoY during FY12 resulting in swellingof imports as oil imports contains 34%weightage in the total import bill, hugefertilizer imports amounting $1.1bn (up112%YoY) during Jul-May 2012, the mas-sive decline in the textile export as cottonprices went down by 35%YoY duringFY12 which reduce the export value inUSD term of the country and electricityand gas load shedding also denting theexport of the country,” viewed a report is-sued by the InvestCap Research Wednes-

day. On monthly basis, the report said,the country’s total exports declined by0.83%MoM to $2.1bn during Jun-12while imports of the country surged by2.3%MoM resulting to widen the tradedeficit to USD1.8bn, up by 6.12%MoMduring the same period. Similarly, duringJun-12 trade deficit increased by27.6%YoY as compared to June-11deficitof USD1.4bn. Whereas export has gotdown by 11.6%YoY stood at USD2.1bn

while imports increased by 3%YoY toUSD3.98bn.

Yet another remarkable year forworker's remittances as overseas Pak-istanis sent $13bn to Pakistan duringFY12 compared to the remittances oflast year’s $11.2bn, registering a phe-nomenal growth of 18%YoY.

During the month of June-12, theremittances stood at $1.11bn, down by6.3%MoM while up 1%YoY, workers re-

siding in GCC countries contributed thehighest chunk of 60.8% during June-12(60.9% during FY12), remittances fromUSA contributed 18.5% during themonth (17.5% during FY12) while remit-tances form European countries con-tributed 14.1% during the month (14.3%during FY12).

however, comparing the monthlyaverages except for the months of Sept-11 (US$890.42mn) and Nov-11(US$924.92mn), the remittances re-mained above $1bn each month duringremaining 10 months of the year, com-pared to monthly average of $933mnregistered during FY11.

Going forward, the report said, thedeclining trend of international oil andcommodity prices could potentially re-sult in trade numbers delivering somerelief in 1QFY13. Also improvement inPak-US relationship could be a key pos-itive development for re-initiation ofCSF program and other civilian and mil-itary aid foreign flows which will de-crease the pressure on country'sexternal account.

“Given our major dependency forremittances over GCC economies, weexpect this impressive growth in work-ers' remittances will also continue toembark for FY13 as oil based GCCeconomies are expected to remainstrong,” it concluded.

Oops we did it again!gPakistan misses fiscal trade deficit target by a mammoth $7b gOil price hike, more urea imports, low textileexports and power crises widen trade gap to $21.3b in FY12

ISLAMABAD

STAFF REPORT

With the change of premiership, Petro-leum Ministry makes another attempt tobring the Oil and Gas Regulatory Au-thority under its administrative controlas the Prime Minister Raja PervezAshraf will be chairing a meeting in thisregard on Thursday.

An official source said that with thenew Prime Minister taking charge, the Pe-troleum Ministry has again moved a sum-mary to bring OGRA under itsadministrative control which was rejectedby the former Prime Minister Syed YusufRaza Gillani earlier this year. The move is

expected to be strongly opposed by theMinistry of Law and Cabinet Division,under which administrative control of allregulatory agencies falls. The objective ofplacing all the regulatory agencies underthe Cabinet Division is to curtail interfer-ence of their line ministries to empowerthem to operate independently.

The National Assembly StandingCommittee on Petroleum and NaturalResources had unanimously resolvedthat OGRA and Department of Explo-sives, which fall under the administra-tive control of Ministry of Industries,should be given under the control of thePetroleum Ministry to end anomalies inimplementing policies to overcome en-

ergy shortages. The source said themove was aimed at to curtail the inter-ference of OGRA in the implementationof policies formulated by the PetroleumMinistry. OGRA’s decision to demandguarantee worth $ 1 million for LNGimport from three private sector partieshad annoyed the ministry as there wasno such condition in the original policy.The parties were granted permission toimport LNG and market it themselvesto the private sector.

OGRA has opposed the LPG Air mixproject of the Petroleum Ministry on thegrounds that it would lead to massivelyincreasing the natural gas tariff for theconsumers. It is also opposed to grant-

ing permission to import LNG to twoprivate companies for which the sover-eign guarantee would be provided by thegovernment.

Expressing of concerns by OGRAwas termed as interference in the policydomain which is the prerogative of thePetroleum Ministry. The ministry is ofthe opinion that the administrative con-trol of Cabinet Division over OGRAoften leads to inadequate decision, as itcould not possibly evaluate the regula-tory and decision making business of theregulatory agency. This administrativestructure of OGRA has seriously im-paired the efficiency, capacity and ac-countability of the organization.

Petroleum Ministry digs ingMakes another attempt to bring OGRA under its control

Profit warningssink Wall Street

NEW YORK

AgEnciES

U.S. stocks fell for a fourth day on Tuesdayas more pessimism from U.S. companiescompounded worries the sluggish worldeconomy is taking a toll on U.S. profitgrowth. A sales warning from enginemaker Cummins Inc came on top of ear-lier weak forecasts from chipmakers Ap-plied Materials Inc and Advanced MicroDevices, extending losses in afternoontrading. The news sent the S&P 500 lowerfor a fourth consecutive day, with sharesof industrials falling the most at 1.6 per-cent. Cummins was among the biggest los-ers, declining 8.9 percent to $86.91."It seems like the first signs indicate thatearnings are going to be mediocre, and sothere's not a whole lot to rely on in termsof propping up the market," said BryantEvans, investment adviser and portfoliomanager at Cozad Asset Management inChampaign, Illinois. Recent data showingslower growth in Europe, China and theUnited States has weighed on the stockmarket, while U.S. companies havewarned about overseas weakness and astronger dollar hurting companies thatrely heavily on exports.Alcoa Inc, which kicked off the earningsperiod, fell 4.1 percent to $8.40 a day afterit reported a quarterly loss and lowersales. Bank stocks also declined, with theeuro hitting a two-year against the dollaramid uncertainty about progress in tack-ling the euro zone crisis. The KBW Bankindex fell 0.9 percent.The Dow Jones industrial average wasdown 83.17 points, or 0.65 percent, at12,653.12. The Standard & Poor's 500Index was down 10.99 points, or 0.81 per-cent, at 1,341.47. The Nasdaq CompositeIndex was down 29.44 points, or 1.00 per-cent, at 2,902.33. Cummins cut its full-year sales forecast, citing weaknessoverseas and a stronger dollar. AdvancedMicro Devices tumbled 11.2 percent to$4.99 after the chipmaker slashed its out-look for second-quarter revenue followingdisappointing sales in China and Europe.

ISLAMABAD

STAFF REPORT

A Pakistan IT company, InfoTech, has wonlaurels in Kenya by implementing its mar-ket surveillance software Capizar at theCapital Markets Authority (CMA) Kenyawhich is already deployed successfully inPakistan, Ghana and Bhutan. A statementissued by the company said it has won thebid to deploy an advanced market surveil-lance system, Capizar Capital MarketSuite, in Kenya as part of its mandate tomaintain an orderly, transparent and effi-cient market, and thus protect investor in-terests across Kenya. This win at CMAKenya followed a stringent public procure-ment process that commenced in June2011 with the release of an Expression ofInterest (EOI) collected from around theglobe. This followed a round of Request forProposal (RFP) from the contending par-ties and finally a competitive bidder that

was the best market fit, was identified.Earlier the CMA had embarked on a

program to automate their Depository andSettlement (DSS) Operations in November2004, implement the Automated TradingSystem (ATS) in September 2006, theirWide Area Network (WAN) in December2007 and had successfully installed theBroker Back Office (BBO) in early-2012.Collectively these have helped transformKenya’s capital market to globally acceptedfinancial market standards and competi-tively positioned it as a safe and preferredinvestment destination. Speaking duringthe contract signing ceremony, CMAKenya Stella Kilonzo noted, ‘The Authorityhas stepped up its oversight role to ensurereal time surveillance and any irregulari-ties in trading are identified and curbedearly enough through the successful imple-mentation of an enhanced surveillancesystem called Capizar Market Surveil-lance.’ CEO InfoTech Naseer Akhtar

lauded the role of CMA in maintaining andregulating the capital markets of Kenya.“The implementation of the Capizar Mar-ket Surveillance will ensure that trading re-mains the foremost priority and that it isconducted in a transparent manner”, hesaid. The new market surveillance sys-tem deployed at the CMA envisaged to“go live” by September 2012 and will en-hance the monitoring of trading activi-ties. It will help towards identifyingunusual trading patterns and marketconditions that indicate violations of theCapital Markets Act and Regulations.

Mrs. Kilonzo further observed, ‘TheAuthority reaffirms its commitment tocreate, maintain and regulate a market inwhich securities can be traded in an or-derly, fair and efficient manner. The newsurveillance system will enable us tomonitor trading activities in the marketon real time basis by providing earlywarning signs through the use of alerts.’

InfoTech musters acclaimPakistani IT company to implement marketsurveillance at Capital Markets Authority Kenya

PRO 12-07-2012_Layout 1 7/12/2012 1:36 AM Page 1

02Thursday, 12 July, 2012

Dawlance announces asuccessful fiscal year 2011-2012

KARACHI: Dawlance continues to exercise itscommitment towards innovative and reliable prod-ucts that have rendered the brand a leadershipspace in Pakistan’s home appliances industry.Maintaining highest quality standards in all prod-uct categories has led Dawlance into achievingimpressive sales growth across the entire productportfolio during the last fiscal year 2011-2012.

WAPDA Chairman visitsDarawat Dam Project

LAHORE: In addition to constructing a number ofmega projects in water and hydropower sectors,the Pakistan Water and Power Development Author-ity (WAPDA) is also building small and medium-sized dams for optimum utilization of water andland resources available in the country. These smalland medium-sized dams are being constructed onthe directions of the President of Islamic Republic of

Pakistan in the four provinces and the Federally Ad-ministered Tribal Areas (FATA) for socio-economicuplift of the people residing in the far flung areas.

Groundbreaking ceremony of

Al-Shifa Pharma

RAWALPINDI: A great day for the pharmaceuticaldepartment of Al-Shifa Trust Eye HospitalRawalpindi, as inauguration of Pharmaceuticalfactory was held on 11th July 2012, the chief guestwas Lt. General (Retd.) Hamid Javaid. In thisproject international standards of Civil work will beobserved as building contains Earth Quake ProofZone and umbrella at the top with foundation of18” thick raft, hence a perfect building for theperfect working.

JS Investments announces total

payout in open end funds

KARACHI: JS Investments Limited (JSIL) hasannounced a total payout of Rs. 722.940 millionin selected open-end funds managed by thecompany for Financial Year 2012, which wasapproved by the Board of Directors of JSIL, at ameeting held in Karachi.The final distribution ofRs. 2.50 was announced for JS Cash Fund, themoney market fund offered by JS Investments,taking the total distribution for FY12 to Rs.10.50 per unit, with an annualized return of11.62%. For JS Income Fund a dividend of Rs.2.25 per unit was announced, taking the totaldistribution for FY12 to Rs. 10.25 per unit, withan annualized return of 13.07%. A distributionof Rs. 20.25 per unit was announced for JSFund of Funds, the only open-end fund of fundsin Pakistan, with an annualized return of 20%while a distribution of Rs. 12.60 per unit wasannounced for Unit Trust of Pakistan (the firstprivate sector Mutual Fund in Pakistan), takingthe annualized return to 16.6%.

SECP registered 3,923

companies last fiscal

ISLAMABAD: The registration of companies by theSecurities and Exchange Commission of Pakistan

(SECP) went up by 15 percent with registration of3,923 companies during the financial year 2011-12 ascompared to 3,400 companies registered during thesame period financial year 2010-11. Out of these3,923 companies, 3,571 were private, 237 single-member, 38 public unlisted, 31 foreign companies and41 non-profit associations, 4 trade organizations andone company limited by guarantee under Section 43of the 1984 Companies Ordinance. STAFF REPORT

‘NHA plays key role in socio-economic uplift’

ISLAMABAD: Chairman NHA Syed Muhammad AliGardezi has said, national highways play key rolein socio-economic uplift besides forging inter-provincial harmony. Timely and quality construc-tion of projects is main objective of theAuthority. He was expressing views on his in-spection tour to various highway projects in Pun-jab & Sindh Provinces.

NASair starts flights from

Peshawar to Riyadh

A new airline NASAir based in Saudi Arabia hasannounced to start its flights on July I. fromPeshawar to Riyadh. NAS airway will operate 8flights in a week: 4 flights from Riyadh toPeshawar and 4 from Peshawar to Riyadh. NASairChief Executive Officer Francois Bouteiller madethis announcement on Wednesday.

ZONG’s ‘Perfect Package’

KARACHI: ZONG, the fastest growing network ofPakistan and an eminent introducer of innovativeproducts and services, has once again taken thelead by introducing unique youth bundle for thefirst time in Pakistan – With ZONG’s Perfect Pack-age – Calls, SMS, Mobile internet and MMS allare available in one bundle at a very low price.Perfect Package is a special offer for ZONG userswhich is a one stop solution. Through this PerfectPackage subscribers will be able to make free onnet calls except from 7pm to 10pm, 500 freeSMS, 100 free MMS and 1 hour free GPRS.

Samsung gets most IDEA awards

LAHORE: Samsung Electronics Co., Ltd, a globaltechnology leader has received seven awards atIDEA (International Design Excellence Awards)2012. Organized by Industrial Designers Society ofAmerica, IDEA is the world’s most prestigious de-sign contest. Also the most popular brand for con-sumers, Samsung Electronics received the largestnumber of awards among participating companies.In the enterprise category, Samsung Electronicswas presented with seven awards – four goldawards, two silver awards, and one bronze award.The company’s digital X-Ray equipment (XEGO-GU60, XGEO-GC80) and digital X-Ray user inter-face received the gold award, indicating a brightfuture for Samsung Electronics’ newly developingMedical Equipment business.

PTCL awards top regions

ISLAMABAD: In recognition of their outstandingachievements during 2011-2012, PakistanTelecommunication Company Limited (PTCL)awarded Gujranwala and Azad Jammu Kashmir(AJK) as top performing regions during thecompany’s recent ‘Way Forward Conference2012: Accelerating Customer Experience’ held inMuzzaffarabad, AJK. The awards were presentedby PTCL President & CEO, Walid Irshaid, during adistinguished ceremony attended by topmanagement officials from all over Pakistan.

‘Summer Splash’ at Bahria Town

RAWALPINDI: Residents of the twin cities areno longer short of fun with ‘The Arena’ BahriaTown kicking the Summer Fun by the awesomescreening of 3D Animated Cartoon Movies for asvocations special for kids and families. The Arenaorganized a special 3-Day orientation event forthe cine-goers of Summer Splash where healthyfun-packed outdoor entertainment activities andgames like Amusing Jugglers, Tall Man, House ofClown, Jumping Castle, Delicious Cotton Candy,Play Area, Drawing Corner, Competitions, Prizes,and face painting were the key highlights.

Business

CORPORATE CORNER

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVER

Colgate Palmolive 1102.35 1150.00 1080.00 1150.00 47.65 603Rafhan Maize Prod. 3067.00 3144.00 3100.00 3100.00 33.00 30UniLever Pak 7373.41 7400.00 7390.00 7398.69 25.28 78Sapphire Textile 140.00 147.00 147.00 147.00 7.00 175Thal Limited 102.66 107.79 105.00 107.79 5.13 171,104

Major Losers

Nestle Pakistan Ltd. 4067.15 4138.89 3915.00 4012.50 -54.65 63Island Textile 227.28 237.70 216.00 216.01 -11.27 443Shezan Inter. 196.10 200.00 189.05 189.62 -6.48 203Blessed Tex. 77.44 77.44 75.00 75.00 -2.44 1,000Pak Oilfields 385.35 387.84 383.00 383.34 -2.01 308,388

Volume Leaders

D.G.K.Cement 43.60 43.85 42.80 42.94 -0.66 8,827,976Jah.Sidd. Co. 14.11 14.63 14.01 14.32 0.21 7,545,713Engro Foods Ltd. 73.31 73.95 71.94 73.41 0.10 6,799,319JS Growth Fund 7.54 8.11 7.51 8.09 0.55 5,193,798Azgard Nine 6.44 6.79 6.45 6.56 0.12 4,885,722

Interbank RatesUS Dollar 94.2385UK Pound 146.6350Japanese Yen 1.1887Euro 115.7437

Dollar EastBUY SELL

US Dollar 94.30 95.00Euro 114.92 116.15Great Britain Pound 145.89 147.41Japanese Yen 1.1747 1.1868Canadian Dollar 91.68 93.14Hong Kong Dollar 11.98 12.17UAE Dirham 25.58 25.82Saudi Riyal 25.08 25.29Australian Dollar 95.74 98.19

KARACHI

STAFF REPORT

ThE bulls kept dominating Karachistocks market on Wednesday withbenchmark, KSE 100-share indexgained 6.12 points. The day sawthe index closing up by 0.04 per-

cent at 14, 380.46 points against 14, 374.34points of Tuesday.

Pakistan Stocks closed higher amid cautiousactivity by investors before Supreme Court reactionon NRO judgment implementation due this week.Profit taking witnessed in the corporate earning an-nouncements session at KSE as global markets un-certainty persists, said by Ahsan Mehanti, Directorat Arif habib Investments Limited.

On Wednesday, the trading volumes at theready-counter were recorded lower at 80.603million shares against 82.530 million shares ofthe previous day. The trading value too de-creased to Rs 2.372 billion compared to Rs3.782 billion of the previous session. The intra-day high and low, respectively, stood at 14,405.33 and 14, 333.37 points.

he added that the institutional supportwitnessed in blue chip stocks on improvementin Pak-US relations and speculations ahead ofSECP chairman visit to KSE. The market capi-talization grew modestly and increased to Rs3.663 trillion from Rs 3.660 trillion a day ear-lier. Of the total 375 traded scrips, 132 gained,121 lost and 122 finished as unchanged.

The free-float KSE-30 index lost 12.50

points to close at 12, 486.84 points against theprevious 12, 499.34 points. D.G.K Cement wasthe day’s volume leader counting its tradedshares at 8.827 million with the opening andclosing rates standing at Rs 43.60 and Rs42.94, followed by Jahangir Siddiqui CompanyLimited, Engro Foods Limited, Jahangir Sid-diqui Growth Fund and Azgard Nine withturnover of 7.545 million, 6.799 million, 5.193million and 4.885 million shares respectively.

On the future market, the turnover decreasedby over two million shares to 5.782 million against7.315 million shares of Tuesday. The Colgate Pal-molive and Rafhan Maize Prod, up Rs 47.65 andRs 33.00, led highest price gainers while, NestlePakistan Limited and Island Textile, down Rs54.65 and Rs 11.27 respectively, led the losers.

At daggers drawn, againg KSE ends flat for the second successive day as uncertainties reign supreme

MUZZAFFARABAD: President & CEO PTCL, Walid Irshaid,

delivering inaugural keynote address at the company’s

annual ‘Way Forward Conference 2012: Accelerating

Customer Experience (ACE),’ held at the picturesque

Pearl Continental Muzzaffarabad, Azad Jammu Kashmir

on July 6-7, 2012

GUJRANWALA: Professor Dr Iqbal Tahir, Rector, GIFT

University Gujranwala presenting a souvenir to Professon

Dr Campbell Fraser (Griffith University, Australia)

PESHAWAR

STAFF REPORT

People took keen interest on the sec-ond day of the Women Business De-velopment Centre “Summer TradeFair-II” as visitors flocked the venue,said enthusiastic notes by women en-trepreneurs, whose put their innova-tive artwork on display at three-daybusiness expo.

“We anticipated a good responsefrom city residents as the fair is practi-cally exhibiting every possible product,”said a young emerging entrepreneurFaiza Atif, branding with Smart Collec-tion Accessories. She said that the fair

also provides a platform for meaningfulinteraction with corporates, consumersand small-scale industries.”

The Women Business Develop-ment Centre, in collaboration withTourism Cooperation KhyberPakhtunkhwa organises a three-dayexhibition, aimed at develop marketlinkages and promotion of skilledwork of women entrepreneurs hailingfrom different backgrounds and areas.The women hailing from D.I.Khan,Chitral, Swat, Mardan, Charssada, Pe-shawar, Islamabad, haripur, Multan,Bahawalpur, and other parts of thecountry, were exhibited their handi-craft at more than.

PSO ready to importfurnace oil

ISLAMABAD

OnLinE

The government has decided to import furnace oil tomaintain the level of generation of electricity and supply ofCNG in coming winter season. According to Pakistan SateOil officials, preparations have been started for the importof 0.65 million tonnes of high Sulphur furnace oil. PSO hasasked for tenders to import furnace oil. Experts say a gasshortage of 1.5 billion cubic feet is expected this winterseason and the situation can consequently affect CNGsupply and the production of electricity.

Summer Trade Fair

PRO 12-07-2012_Layout 1 7/12/2012 1:37 AM Page 2