Saturday, 19 January, 2013

KARACHI

IsMAIL DILAWAR

WITH the KarachiStock Exchange(KSE) cutting thetrading session atthe country’s largest

bourse short to half-day, traders and theindustry claim to have incurred a loss of$ 3-4 billion on Friday.

The day saw the financial capital ofthe country shut as paranoid Karachi cit-izens preferred to remain indoors toavoid any untoward situation on the sec-ond day of the three-day mourning an-nounced by the Muttahida QaumiMovement (MQM) on the cold-bloodedmurder of its provincial lawmaker, SyedManzar Imam, on Thursday.

With civic and commercial activitiescompletely static, the day saw the frontregulators at KSE suspending all the mar-kets at 12:30pm. “The brokers of the Ex-

change are hereby informed that due tothe prevailing situation in the city, theExchange has decided to suspend all mar-kets at 12:30pm,” said a KSE notice is-sued on Friday.

The window for trade rectificationand NDM market however remainedavailable up to 1:30pm.

KSE general manager operationsAbbas Mirza, in the notice said the trad-ing of Friday shall be merged with tradingof Monday and shall be settled onWednesday.

The short session said the KSE 100-share index gaining 310.68 points was toclose at 16,601.77 points against Thurs-day’s 16,291.09 points.

The trading volumes surged to 181million from 144 million of the previoussession.

”The investor sentiments turned bull-ish at KSE after long march ended on apositive note amid political consensus onelectoral reforms,” said Ahsan Mehanti,

an analyst and director at Arif Habib Se-curities.

He said strong earnings outlook,higher global commodities and currentaccount surplus of $250 million reportedfor the first 6 months of fiscal year playeda catalyst’s role in the bullish close instocks across the board at a short sessionat KSE amid hopes for positive Pak-IMFtalks on fresh loans.

In the afternoon, All Karachi Tajir It-tehad (AKTI) Chairman Atiq Mir, an-nounced to have attended the funeral ofthe slain MQM leader, Manzar Imam,where he said the traders took the MQMleadership into confidence for openingthe markets in the second half.

“A delegation of AKTI attended thefuneral of the MQM leader. The marketswould immediately be opened,” said thetrade leader.

Mir, however, told Pakistan Todaythat only retail markets and not thewholesale ones would be opened on Fri-

day. “The wholesale markets may not beopened today,” he said.

The AKTI chief said a delegation oftraders participated in Imam’s funeralwhere they took the grieved leaders of theMQM into confidence and decided toopen the markets.

However, despite the AKTI an-nouncement most of the retailers in thecity’s commercial centres kept their shut-ters down with only a few doing business,some with half-closed shutters.

The fuel stations, however, were seenopen in the second half after the traders’body gave them a green signal.

Asked about the estimated losses totraders, Mir said it was around Rs 2 bil-lion a day. “The retailers would also haveincurred losses for the half day closure,”he said. In his estimates for losses, Mirsaid industries were not included.

The AKTI chairman replied in affir-mative when asked if all the retail andwholesales markets would open from Sat-

urday (today) in the city.When contacted, Karachi Chamber of

Commerce and Industry (KCCI) Presi-dent Haroon Agar said the losses tradersand industry faced on the day ranged be-tween Rs 3 and Rs 4 billion.

When asked if the figure was inclu-sive of the losses faced by the retail andwholesale markets, the KCCI chief said,“All together”.

Disappointed with the government’s“hollow” assurances on improvement oflaw and order in the city, the traders inthis volatile city have been calling forthe deployment of army to maintainpeace.

AKTI chief Mir, a long time propo-nent of army’s deployment in Karachi,still believes the city should be givenunder the control of the armed forces. “Ofcourse,” was his response when asked ifhe still deemed the military as a saviourof peace and order in the financial hub ofthe country.

Trade, industry incur losses of Rs 4b as Karachi mourns slain MQM leader

ISLAMABAD

APP

The $ 1.2 billion Iran-Pakistan gaspipeline project, set to be completednext year, may prove a bonanza for thehard-pressed energy sector of Pakistan’seconomy as the initiative will supply 750million cubic feet of gas besides helpingto contribute 4000 MW of electricity tothe national power grid.

Iran is stated to have completed 900km of work on its side while Pakistanlaunched its part of work last month,thus setting the stage for an ambitiousundertaking which will greatly over-come Pakistan’s severe energy short-ages.

In the prevailing energy crunch, thePPP-led coalition decided to go aheadwith the project despite stiff oppositionfrom some quarters.

However, the Pakistani governmentdespite the pressure has signed theagreement with Iran to meet its energyshortages.

President Asif Ali Zardari and Iran-ian President Mahmoud Ahmadinejadsigned the Inter-Governmental Frame-work Declaration (IGFD) of the IP proj-ect in Tehran on May 24, 2009. After

signing ceremony of the SovereignGuarantee Agreement (SGA), Pakistan’sthen Minister for Petroleum and NaturalResources Naveed Qamar signed GasSales and Purchase Agreement (GSPA)with Iran on June 5, 2009 throughwhich Pakistan would import one mil-lion cubic feet gas per day.

The government had also appointedthe engineering and project manage-ment teams in April 2012, to conductroute surveys on IP, who later submitted

a final detailed report on the project. Pakistan is experiencing a prolonged

power crisis, low gas pressure and sus-pension of Compressor Natural Gas(CNG), adding to the problems of themasses.

Advisor on Petroleum and NaturalResources to the Prime Minister DrAsim Hussain said the governmentwanted to complete the project as soonas possible in order to overcome thelooming power and gas crises.

He termed the project beneficial forboth countries and said, “We are de-pendent on this project as there is noother substitute at present to meet thegrowing energy demand.”

He said the government of Pakistanhad started work on the project in De-cember 2012, while Iran had alreadyconstructed more than 900 km of thegas pipeline on their side.

Asim stated that after completion ofthe project, it would start supplying 750million cubic feet gas per day.

He said the implementation of theproject showed that Pakistan had a flex-ible foreign policy.

In a press conference on the side-lines of the summit of the Group ofEight Developing Countries (D8) in Is-lamabad on November 22, Iranian Pres-ident Mahmoud Ahmadinejad vowed tocomplete the multi-billion dollar projectwithin the stipulated time.

He said the portion of pipeline onIranian side was about to be completedwhile Iran was also extending financialassistance to Pakistan to complete theproject.

Another purpose of signing this pactwas to strengthen the bilateral relationsbetween the two countries.

IP gas project to help overcome gas, power crises

Meezan Bank recognised for the ‘BestDeal of the Year 2012’KARACHI: Meezan Bank,the country’sfirst and largest Islamic Bank, has beenawarded ‘Pakistan Deal of the Year ‘ and‘Musharakah Deal of the Year’ honour for2012 by Islamic Finance News of RED-money Group, Malaysia. A Meezan Bankstatement issued on Friday said that theIslamic Finance News (IFN) Awards hon-our the best in the Islamic financial in-dustry and is one of the most prestigiousand recognised awards in the global Is-lamic financial markets. It said that the‘Sui Southern Gas Company (SSGC) PKR2.0 billion Certificates of Leasing(Sukuk)’ advised and arranged by MeezanBank was highlighted as the ‘PakistanDeal of the Year’. Meezan Bank developeda unique and tax efficient financing struc-ture for SSGC based on Ijarah, the state-ment added. It said that the ‘MusharakahDeal of the Year’ for the Liberty Mills,PKR 500 million Running Musharakah,was awarded to Meezan Bank for its firstever transaction of Running Musharakahin the textile sector. APP

WASHINGTON

AgeNcIes

International Monetary Fund chiefChristine Lagarde warned on Thurs-day that more efforts were needed toget the global economy back on track.

“We stopped the collapse, weshould avoid the relapse, and it’s notthe time to relax,” Lagarde said at anews conference at the multilateral in-stitution’s Washington headquarters.

“There’s still a lot of work to bedone,” said Lagarde.

The IMF managing director (MD)pointed to signs of economic improve-ment but also noted deterioration onthe jobs front which she called criticalfrom not only from an economic pointof view but also from a social point ofview. “We need growth for jobs andjobs for growth,” she said.

The eurozone, the center of thepublic debt crisis dragging downglobal growth, and where the IMF to-gether with the European Union (EU)has rescued Greece, Ireland and Por-

tugal, has to do more to address itschallenges, she said.

Financial firewalls erected by theEU and the European Central Bank,such as the European Stability Mech-anism rescue fund and ECB bond pur-chases, “have not proven operational.”

“Progress needs to be made on thebanking union,” she added.

Lagarde suggested that further

monetary easing in Europe may be ap-propriate to sustain demand.

As for the United States, the IMFchief called on bitterly divided politi-cians to reach a compromise on thenation’s borrowing limit and deficit-reduction plans.

“All sides should pool together inthe national interest” to avoid another“avoidable political mistake,” she said.

‘Agriculture sector trade with India not in favour of country’

ISLAMABAD: Harvest Tradings CEOAhmad Jawad and business experts havesaid that trade with India in agri productswithout subsidy would not be beneficialfor Pakistan in any aspect.Jawad said on Friday that Pakistan agri-culture sector would face real difficultiesin opening of trade while India will de-prive Pakistan of water by 2020.He said the Pakistan industry was affectedafter opening of free trade with China andthe same situation may be faced at thestart of trade with India.Harvest Tradings CEO said Indian PMManmohan Singh already had announcedthat there could be no “business as usual”with Pakistan after a clash last week, butwe believe in free trade and frequent inter-actions that is the future of the two coun-tries, with a volume of $2.5 billion andwhich is expected to reach $8 billion in thenext two years.Jawad said Pakistani agriculturists are notagainst trade with India but they expect tobe protected against the highly subsidisedagricultural products of India On average,each agriculture hectare gets a subsidy of$300 per year in India. “This works out tobe around Rs 11,900 per acre of subsidy.Pakistan can only benefit and target thehuge retail market in India if subsidies areprovided to the farmers and also substitu-tion of imports with cheaper imports fromIndia. The potential import items includetea, spices, auto parts, consumer and lightengineering goods, tyres and transportequipment, entertainment, healthcare, in-formation technology, and pharmaceuti-cals. The resultant potential savings wouldbe up to $1 billion for Pakistan and benefitthe local consumer, who will have access tomore choices and cheaper products, Jawadadded. He said Pakistan must urge India toremove barriers and provide a level playingfield to Pakistani exporters. INP

More global recovery work needed, warns Lagarde

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02Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVER

Indus Dyeing 619.50 638.99 638.99 638.99 19.49 100

National Foods 271.03 283.90 278.00 283.90 12.87 7,100

Pak Oilfields 427.26 438.00 432.00 437.80 10.54 247,500

Wyeth Pak Limited 910.00 920.00 920.00 920.00 10.00 50

Clariant Pak 269.00 279.00 274.00 279.00 10.00 2,600

Major Losers

Rafhan Maize Prod. 3798.46 3700.00 3700.00 3700.00 -98.46 20Bata (Pak) 1260.00 1250.00 1230.00 1230.00 -30.00 200Sanofi-Aventis Pak 330.00 320.00 320.00 320.00 -10.00 100Khyber Tobacco 111.91 106.32 106.32 106.32 -5.59 500Blessed Tex. 110.11 104.61 104.61 104.61 -5.50 500

Volume LeadersFauji Cement 6.89 7.43 7.12 7.39 0.50 42,191,000Maple Leaf Cement 14.67 15.67 15.01 15.67 1.00 15,465,500Byco Petroleum 13.27 14.19 13.81 13.90 0.63 13,517,000Jah.Sidd. Co. 14.74 15.74 15.20 15.70 0.96 13,373,500TRG Pakistan Ltd. 6.66 7.19 6.77 7.10 0.44 13,013,500

Interbank RatesUS Dollar 97.5UK Pound 155.78Japanese Yen 1.08Euro 130.46

Forex RatesBUY SELL

US Dollar 98.40 99.10 Euro 129.91 131.87 Great Britain Pound 155.01 157.30 Japanese Yen 1.0821 1.0974 Canadian Dollar 97.77 99.86 Hong Kong Dollar 12.43 12.72 UAE Dirham 26.65 27.00 Saudi Riyal 26.10 26.44Australian Dollar 102.00 105.00

Business

Happilac celebrates achievement

KARACHI: Happilac cel-ebrated its 35 years mile-stone achievement onDecember 28 on the occa-sion of their Annual Deal-ers Convention. The eventwas attended by 800 peo-ple from all across thecountry. The attendees

were leading dealers, distributors, corporate clients and media del-egates. The guests were warmly welcomed by the management ofHappilac. Kh. Shahid Razzak Sikka (CEO), Kh. Khalid RazzakSikka (Director), Kh. Sajid Razzak Sikka (Director), Kh. Ammad(Director-Paints), Kh. Fahad (Director-Cons Chemical), Kh. Ali(Director-Road Marking), Kh. Ahmed (Director) greeted the atten-dees and thanked them all for being a part of this prestigious occa-sion. The event started with recitation of Holy Quran and latermanagement & sales force shared their thoughts, experiences andvision regarding the brand and thanked all who played the key rolein the successful achievement of 35 years milestone. PR

Samsung brings ‘Khushiyon Bhara

Aghaz’ for newly-wed couples

LAHORE: Samsung Electronics has launched a special campaignfrom January 15 till February 14 to add excitement and createvalue for customers during the wedding season in Pakistan. Thisoffer named “Khushiyon Bhara Aghaz” presents a wide range ofproducts based on cutting-edge technologies for newly-wed cou-ples. These products are tailored to double-up the joys of thosememorable moments in their lives. All newly-wed couples can nowpurchase the latest home appliances and electronics, to enrichtheir lifestyle with Samsung’s LED TV, Plasma TV, AutomaticWashing Machine, No-Frost Refrigerators and Vacuum Cleaner.The Managing Director of Samsung EC Pakistan Pvt. Ltd. – JohnPark said; “Samsung has once again created this delightful offerfor its customers. This time we decided to share the joy with all theexcited couples who are planning a shopping spree for their wed-ding. Samsung aims to ensure that their new journey in life be-comes a pleasant, convenient and comfortable experience, as theyenjoy the innovative, luxurious appliances and digital entertain-ment products from a global technology leader.” PR

9th Study Malaysia Exhibition 2013 today

KARACHI: The 9th Study Malaysia Exhi-bition will start in Karachi from today (Sat-urday) from 11am to 8pm, organised byNorth Pole International (Pvt.) Ltd., andcontinue till Sunday at PC Hotel. The Con-sul General of Malaysia in Karachi AbuBakar Mamat will be the chief guest andinaugurate the exhibition at 11am. Thisexpo is sponsored by 10 best MalaysianUniversities and would provide a showcase

to Malaysian education system with top Malaysian universitiesrepresentatives available to guide career savvy students andtheir parents on study options available in Malaysia. PR

CORPORATE CORNER

Saturday, 19 January, 2013

Dr Brohi appointed

president of NBP

KARACHI: The federal government hasappointed Dr Asif A. Brohi, asPresident/CEO of National Bank of Pak-istan. A Master in Business Administra-tion from Northrop, California andDoctorate in Public Administration, DrBrohi joined NBP in 1984 as an AssistantVice President. Dr Brohi was previouslyserving as Chief Operating Officer andHead of Commercial & Retail BankingGroup of NBP, and has rich experience inall spheres of banking spanning over al-most three decades. He has in the pastheaded the NBP’s Operations Group,Strategic Planning Group, InformationTechnology Group, Culture Change Pro-gramme Group and Training. He was alsoRegional Chief Executive, Karachi. Beforejoining NBP, he has taught in various uni-versities in the United States of America.Dr Brohi has also been serving on theBoard of Directors of NBP Leasing Lim-ited, the Hub Power Company, Fauji OilTerminal & Distribution Co. Ltd, FirstCredit & Investment Bank Limited (FCIB),NBP Fullerton Asset Management Com-pany Limited, NBP Modarba ManagementCo. Ltd, National Asset Insurance Com-pany Limited and Close Joint Stock Sub-sidiary, Almaty Kazakhstan. sTAFF RePORT

ISLAMABAD

APP

Exports of sports good from thecountry witnessed a slight in-crease of 0.17 percent during thefirst five months of the current fis-cal year compared to the same pe-riod of last year.

However, on a year-on-yearbasis, the exports of sports goodincreased by 10.93 percent duringNovember 2012 as compared tothe same month of last year, Pak-istan Bureau of Statistics (PBS) re-ported.

Exports of sports good wererecorded at $124.277 million dur-ing July-November (2012-13)against the exports of $124.070during July-November (2011-12),according to PBS data.

Among the products that con-tributed towards positive growthincluded gloves, exports of whichincreased by 29.47 percent.

The exports of gloves in-creased from $40.394 million dur-

ing the first five months of last fis-cal year to $52.297 million duringthe current year, the data re-vealed.

However, the exports of foot-balls decreased from $56.305 mil-lion last year to $52.804 millionduring the current year, showing anegative growth of 6.22 percent.

Exports of all other sportsgoods decreased by 29.94 percentgoing down from $27.371 millionlast year to $19.176 million thisyear.

On year-on-year basis, theoverall exports of sports goods inNovember 2012 increased by 10.93percent by going up from $19.739million during November 2011 to$21.897 million during the monthunder review. However, as com-pared to the exports of $26.388million during October 2012, thesports good exports in November2012 decreased by 17.02 percent,the PBS data revealed.

As compared to November2011 and October 2012, the ex-

ports of footballs increased by21.56 percent but decreased by8.36 percent respectively.

The exports of footballs in No-vember stood at $9.438 millionagainst the exports of $7.764 inNovember 2011 and $10.299 mil-lion in October 2012.

The exports of gloves in No-vember 2012 increased 19.99 per-cent when compared to theexports of November 2011 but de-creased by 29.85 percent whencompared to the exports of Octo-ber 2012. The exports of gloves inNovember 2012 were recorded at$9.042 million against the exportsof $7.716 million in November2011 and $12.890 million in Octo-ber 2012.

Meanwhile, exports of allother sports good in November2012 decreased by 19.77 percent ascompared to November 2011 butincreased by 6.81 percent whencompared to October 2012.

The exports of other sportsgood during November 2012 stood

at $3.417 million against the ex-ports of $4.259 million in Novem-ber 2011 and $3.199 million inOctober 2012, the data revealed.

In a positive development, thecountry’s trade deficit decreasedby 14 percent during the first halfof the current fiscal year as ex-ports expanded by 7.58 percentand imports witnessed negativegrowth of 3.33 percent.

The overall exports from thecountry increased from $11.202billion in July-December 2011-12to US$12.051 billion during July-December (2012-13).

On the other hand, the im-ports decreased from $22.678 bil-lion last year to $21.922 billionduring the current fiscal year,showing negative growth of 3.33percent, the data revealed.

According to the data, thetrade deficit during the fist sixmonths of current fiscal year stoodat $9.871 billion against the deficitof $11.476 billion, showing nega-tive growth of 13.99 percent.

Export of sports goods increased11% in Nov, 0.17% in 5 months

Weekly InflatIon goes doWn ISLAMABAD

APP

The Sensitive Price Indicator (SPI) for the weekending on January 17 for the lowest income groupup to Rs 8,000 registered a decrease of 0.33 per-cent compared to the previous week.

The SPI for the week under review for theabove mentioned group was recorded at 185.84points against 186.45 points registered in the pre-vious week, according to provisional figures ofPakistan Bureau of Statistics (PBS). The weeklySPI has been computed with base year as 2007-2008, covering 17 urban centres and 53 essentialitems for all income groups and combined.

The SPI for the combined group decreased by0.41 percent as it went down from 191.79 points in

the previous week to 191.01 points in the weekunder review. As compared to the correspondingweek of last year, the SPI for the combined groupin the week under review witnessed increase of7.31 percent. As compared to the last week, theSPI for the income groups from Rs 8001-12,000,12,001-18,000, 18001-35,000 and above Rs35,000 decreased by 0.36 percent, 0.40 percent,0.43 and 0.43 percent respectively.

During the week under review average pricesof 7 items registered decrease, while that of 23items saw an increase with the remaining 23items’ prices unchanged. The items which regis-tered decrease in their prices during the weekunder review included tomatoes, egg hen (farm),potatoes, chicken live (farm), onions, red chillies(powder) and mash pulse (washed).

The items which recorded increase in their av-erage prices included bananas, georgette, shirting,moong pulse (washed), salt powdered (loose),wheat, gram pulse (washed), energy saver, masoorpulse (washed), rice (irri-6), vegetable ghee(loose), bread (plain), LPG, rice (basmati broken),firewood, lawn, cooking oil (tin), sugar, garlic, gur,long cloth, mutton, wheat and flour (bag).

The items with no change in their averageprices during the week under review includedbeef, milk (fresh), curd, milk (powdered), mus-tard oil, vegetable ghee (tin), tea (packet), cookedbeef, cooked pulse, tea (prepared), cigarettes,sandal (gents), chappal (gents), sandal (ladies),electric charges, gas charges, kerosene oil, wash-ing soap, match box, petrol, diesel, telephonelocal call and bath soap.

ISLAMABAD

APP

The business community on Friday observed thatdue to the recent long march and sit-in at BlueArea of the federal capital, the business commu-nity has suffered a daily loss of about Rs 7 billionalong with a long term negative impact on thebusiness of the capital.

In a bid to recover the losses incurred due tothe recent long march to the businessmen of thefederal capital, the business community de-manded the government to provide tax conces-sion to all commercial outlets situated along themost affected area for one year.

“Due to the sit in of Dr Tahirul Qadri and hissupporters, the routine life of Islamabad re-mained disturbed for about a week due to whichbusiness community suffered billions of rupeeslosses,” said the Media coordinator of Federationof Pakistan Chamber of Commerce and Industry(FPCCI) Sohail Malik.

He claimed that a daily transaction of aboutRs 7 billion in the Blue Area was badly affecteddue to the long march and it will also have longterm impact on the business of the capital.

With the end of long march, the normal lifecan not revive immediately and it will take a weekor more to resume the hustle and bustle in thecommercial markets of the capital, he added.

He said the participants of the long marchwere allowed to gather at a place which is the hubof business activities of the city that created nui-sance for the businessmen.

He said there are a number of money chang-ers, hotels, restaurants, multinational businessoffices, branded outlets and stock exchange out-lets in the area which remained shut for 4-5 days.

Ever since the TMQ’s sit-in started, almost allthe 50 plazas of the Blue Area remained closed.

Islamabad Chamber of Commerce & Indus-try (ICCI) President Zafar Bakhtawari said al-though the markets in the capital other than Blue

Area remained partially functional, the residentsof the capital did not come out to visit the mar-kets due to the uncertain situation.

The business community had raised theirconcerns ahead of the long march and raisedtheir voice to stop this march as it would disturbthe normal life of the capital.

“Business community had nothing to do withthe ongoing political situation, but still this com-munity suffered the most,” he added.

Meanwhile, in a statement the ICCI wel-comed Dr Tahirul Qadri for ending the LongMarch after reaching an agreement with the gov-ernment negotiating team which, the statementsaid, would help improve the image of democracyin Pakistan as well as maintaining political sta-bility in the country.

Bakhtawari also appreciated the peaceful at-titude of participants of the march, who he saidexhibited a new example of patience and commit-ment in the history of our country.

He said the business community of Islam-abad had many reservations about the longmarch but it is appreciable that not a single inci-dent of damage to public and private propertywas reported in the last four days.

Bakhtawari also hailed the government dele-gation which was led by Chaudhry Shujat Hus-sain for having a positive negotiation with Qadri,ending the sit-in in an amiable atmosphere andreconciliatory spirit. He was of the view that po-litical stability is a pre-requisite for economicgrowth and development of the country in theprevailing global scenario.

The ICCI chief urged leaders of all political par-ties to help strengthen the democratic system inthe national interest by burying their political dif-ferences and said political stability was a key factorworldwide for economic development and forrestoring confidence of foreign and local investors.He also stressed the government to proactively dealwith the ongoing crises to avert industrial closuresand resultant economic downturn.

Business community demandstax concession for one year

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