profit.com.pk Tuesday, 22 May, 2012

g Turkmenistan close to gas deal on trans-Afghan pipelineASHGABAT

ONLINE

Turkmenistan plans this week to sign a long-awaitedagreement to supply natural gas to Pakistan and Indiathrough an ambitious US-backed pipeline that wouldcross Afghanistan, a source in the Central Asian coun-try's government told Reuters on Monday.Turkmenistan, which holds more than 4 percent of theworld's natural gas reserves, plans to sign the sales andpurchase agreement for the TAPI pipeline on Wednes-day, during an international gas conference in theCaspian Sea resort of Avaza."The plan is to sign the TAPI natural gas sales and pur-

chase agreement with Islamabad and Delhi on May 23 inAvaza, by the Caspian, where the gas congress is open-ing," the government source told Reuters, on conditionof anonymity. He gave no details of the content of the agreement. The idea of the TAPI pipeline, anacronym formed from the initials of the four countries through which it would pass, was first raisedin the mid-1990s but construction has yet to begin. In a sign a deal might be imminent, India's cabi-net last week allowed state-run gas-firm GAIL (India) Ltd to sign a gas purchase agreement withTurkmenistan.Turkmen officials have said the proposed 1,735-km (1,085-mile) pipeline could carry 1 trillion cubicmetres of gas over a 30-year period, or 33 billion cubic meters a year. But the route, particularly the735-km (450-mile) leg through the Afghan provinces of Herat and Kandahar, presents significant se-curity challenges and will require billions of dollars in funding. A U.S. official estimated in March that the pipeline could cost between $10 billion and $12 billion toconstruct. Daniel Stein, senior adviser to the U.S. State Department's special envoy for eurasian en-ergy, also said that two major U.S. oil companies were interesting in participating in the project. Hedeclined to name the companies. ex-Soviet Turkmenistan is promoting the TAPI pipeline as a key element in plans to cut reliance onsupplies to Russia and to boost annual gas exports to 180 billion cubic meters by 2030. BP data showTurkmenistan's natural gas reserves equal to those of Saudi Arabia and behind only Russia, Iran andQatar. The country aims to supply gas from its Galkynysh field, better known by its previous name,South Iolotan. Auditor Gaffney, Cline & Associates has ranked the field the world's second largest,with gas reserves of between 13.1 trillion and 21.2 trillion cubic meters.

g 80pc investment promotion agencies failed to respond to investor inquiries: WBISLAMABAD

ONLINE

even as countries compete to attract investments, 80 percentof national investment promotion agencies are failing to re-spond to investor inquiries in the key sectors of agribusinessand tourism.According to the World Bank Group’s Global InvestmentPromotion Best Practices 2012 report, assessing 189economies’ responsiveness to investors finds that invest-ment promotion agencies are less responsive to direct in-vestor inquiries than they were three years ago. In the areasof inquiry-handling and website performance over the pasttwo years, two regions showed improvement—the Middleeast and North Africa, and Latin America and theCaribbean. "In difficult times, governments may be temptedto cut funding for investment promotion. However, this cancost them opportunities to secure investments and jobs,” said Pierre Guislain, Director of the BankGroup's Investment Climate Department. “Skilled investment promotion agencies can giveeconomies a competitive advantage by helping investors choose a suitable location and set up opera-tions that create jobs and promote growth.” The report shows that limited resources need not be anobstacle to effectiveness. For example, Cyprus Investment Promotion Agency, one of the world’s top-performing agencies, has only 10 staff members spread across a range of functions. It also finds in-vestment promotion websites to be a bright spot, with 62 percent of agencies implementing bestpractices. Nicaragua’s investment promotion agency PRONicaragua emerged as the world’s top in-vestment facilitator, becoming the first developing country to do so. PRONicaragua achieved best-practice standards in website performance and response to investor inquiries."We believe that the level of service an Investment Promotion Agency offers influences an investor’sfirst impression of a country’s investment climate, as it demonstrates that Government’s attitude andcommitment towards investors. It is with that vision, through commitment to offering high qualityservice and insuring that each and every investor get the information they need, we try to build astrong sense of comfort about doing business in our country and promote economic development."said Javier Chamorro, CeO of PRONicaragua.The report was produced by the Investment Climate Department of the World Bank Group (which includesIFC, MIGA, and the World Bank) and sponsored by ProInvest, a european Commission partnership pro-gram for the countries of Africa, the Caribbean, and the Pacific, and by the government of Spain.

ISLAMABAD

ONLINE

THe Pakistan State Oil (PSO) has reducedthe fuel supply to the power sector aftergovernment’s failure to clear the liabili-ties of the sector that have been surged

to Rs 205 billion.According to officials of PSO the oil giant’s

total payables to local refineries and internationalfuel suppliers have been reached to Rs177.5 billionwhile receivables from power sector, PakistanRailways (PR) and Pakistan International Airlines(PIA) stands at Rs 204.781 billion.

Officials told the state oil agency is supplyingfuel worth of more than Rs32 billion monthly tothe power sector, and the sector is paying backmeager amount of about Rs15-16 billion permonth which is not enough to run the business ofthe oil agency. Non availability of payments bypower sector is adding to woes of PSO as stateagency has to pay to international companies.

Officials said that after several requests min-istry of water and power has not paid any majoramount during current fiscal year therefore re-ceivables of power sector has touched Rs 205 bil-lion.

The Hub Power Company Limited (HUBCO)is the leading defaulter of PSO with Rs99 billionoutstanding dues followed by Water and PowerDevelopment Authority (WAPDA) with Rs53.66billion, Kot Addu Power Company (KAPCO) withRs22.68 billion.

The company has to receive Rs3.18 billionfrom Pakistan International Airline (PIA), Rs366million from Oil and Gas Development CompanyLimited (OGDCL), over Rs8 billion from Karachielectric Supply Company (KeSC), Rs463 millionfrom National Logistic Cell (NLC) and Rs1.34 bil-lion from Pakistan Railways.

The company is to receive Rs1.4 billion on ac-count of audited price differential claim of High-Speed Diesel (HSD), over Rs3.4 billion on accountof price differential on Low-Sulphur Fuel Oil andHigh-Sulphur Fuel Oil (LSFO/HSFO), Rs1.36 bil-

lion on account of price differential on importedPMG, Rs8.612 billion price differential underGLMP and Rs1.419 billion on account of financialcharges on PIA.

At present, the PSO owes Rs82.3 billion tolocal refineries. Of the total, PSO owes Rs26.8 bil-lion to the Pak Arab Refinery Limited (Parco),Rs14.5 billion to Pakistan Refinery Limited (PRL),Rs9.277 billion to National Refinery Limited(NRL), Rs28.91 billion to ARL, Rs3.158 billion toBosicor and Rs520 million to others.

Official said that the circular debt has crippledthe national economy, adding that if the govern-ment did not take immediate steps in resolvingthe circular debt issue, the company will go in de-fault and oil supply chain would be disturbed.PSO tO buy 65Pc Of bycO’S OutPut,deal Signed: Byco Oil Pakistan and PakistanState Oil have signed a product Sale and PurchaseAgreement (SPA) that would ensure guaranteedsale of 65 percent of the former’s production ofvarious petroleum products from its new 120,000bpd refinery to the latter.

This sale of petroleum products from Byco toPSO would substitute equivalent volume of im-ports being presently made by PSO particularly ofproducts such as PMG, HSD and HSFO.

The agreement was inked by Naeem Yahya,Managing Director PSO and M. Qaiser Jamal,Country Business Head, Oil Refining, Byco Oil.

A unique feature of this agreement is thatByco will make sales to PSO against a confirmedletter of credit. The agreed payment arrangementswill benefit the refinery to ensure timely collec-tion of its dues which will greatly help in reducingthe element of circular debt.

Byco’s new oil refinery with a crude oil pro-cessing capacity of 120,000 bpd is expected to at-tain mechanical completion by end June 2012.

This would be followed by pre-commissioningand commissioning activities leading to commer-cial operations by 4th quarter 2012. Along withthe existing 35,000 bpd refinery, the commission-ing of the new refinery will make Byco the singlelargest crude oil refiner in the Country.

Turkmen track TAPI World Bank whines

NEW DELHI

ONLINE

Bilateral trade between India and Pakistan has de-clined by about 30 per cent to $1.56 billion duringApril-January, 2011-12. During the same period of 2010-11 fiscal, the bilat-eral trade was $2.22 billion, Minister of State forCommerce and Industry Jyotiraditya Scindia saidin a written reply to the Lok Sabha, reported PTI. He added that as a result of the bilateral discus-sions held over the past year between the twocountries, Pakistan has replaced its 'positive list' --comprising 1,963 items that could be exported byIndia -- with a 'negative list' of 1,209 items. "This implies that except for these 1,209 items, allother items can be exported.Such substantial increase in tradable commoditiesis expected to reduce trade through third coun-

tries," Scindia said. In another reply, the minister said trade betweenIndia and Japan during April-January 2011-12 hassurpassed the figure of total trade in 2010-11. During April-January 2011-12, the two-way com-

merce aggregated at $14.7 billion compared to$13.71 billion in 2010-11. During the 10-month period of last fiscal, India'sexports to Japan stood at $4.97 billion, while im-ports were $9.79 billion. The comprehensive economic partnership agree-ment between India and Japan was implementedon August 1, 2011. In another reply, Scindia said the approval of Di-rector General of Foreign Trade (DGFT) is not re-quired for registration of export contracts. "Fieldoffices of the Directorate are authorised to issuethe registration certificates for export of cottonafter verification of required documents," he said.

PSO is on a roll!g Reduces fuel supply to power sector due to govt failure to clear liabilities

What happened to all the neighbourly love?g India-Pakistan trade declines 30pc to $1.56b in FY2012

Murder by numbers Page 02

PRO 22-05-2012_Layout 1 5/22/2012 12:23 AM Page 1

ISLAMABAD

ONLINE

TARIQ Sayeed, founder andformer President SAARCCCI and former Presidentof the Federation of Pak-istan Chambers of Com-

merce and Industry (FPCCI) said thatmultiple sales tax rates should be re-duced to single digit.

Sayeed while apprising Dr. AbdulHafeez Shaikh, Federal Minister for Fi-nance about the aims and objectives ofFPCCI's Proposals for the FederalBudget 2012-13 said that GDP growthshould be increased at least 5%; reliefand facilitation should be provided tothe common man through the taxationsystem; investment should be attractedin the manufacturing sector through aTax Amnesty Scheme and tax netshould be broadened by identifyingnew taxpayers.

Mumtaz Haider Rizvi, ChairmanFBR and other high-ranking officers ofthe Federal Board of Revenue accom-panied the Finance Minister during hisvisit to FPCCI.

Highlighting the salient features ofthe proposals Sayeed urged that multi-ple rates of sales tax be reduced to asingle uniform rate of 9% to curbsmuggling and reducing the size of the

parallel economy. This will eliminate fake and flying

invoicing and other mal-practices andthe Government will generate morerevenue, on one hand and give relief tocommon man on the hand, as indirecttaxes are regressive in nature, headded.

Sheikh Shakil Ahmed Dhingra,Acting President-FPCCI, chaired themeeting. Former Presidents-FPCCI,S.M. Muneer and Iftikhar Ali Malik;and FPCCI Vice Presidents MirzaAbdur Rehman, Mr, Zubair Ali, IqbalDawood Pakwalla were also present asspeakers at the event.

The Secretary Finance, AbdulWajid Rana, Mian Zahid Hussian, Za-karia Usman, Mansha Churra, KhalidTawab, Shaikh Manzar Aalam, andZubair Tufail also spoke on the occa-sion. The meeting was widely attendedby businessmen throughout Pakistan.

Sayeed started his presentation bygiving all participants a review on thestate of Pakistan's economy, which hasbeen performing far behind regionalcountries. He mentioned some key rec-ommendations that the Governmentshould consider in order to achieve theabove objectives.

He suggested that there must be afocus on social development as theranking of the country has slipped

from 146 to 148 in the Human Devel-opment Index (the lowest in SouthAsia).

Tariq Sayeed added that the gov-ernment must devise proactive andlong-term strategies instead of short-term policies in the following areas,namely: Concerted efforts of the Gov-ernment are needed to facilitate eco-nomic diversification, and reduce thedirect role of the public sector.

In this regard, export-led diversifi-cation must be achieved through thestate's role in making the privatesector dominant in the econ-omy. Documentation of theinformal sector will lead toan increase in the tax-net.Implementation of the ruleof law is crucial in all areas.The energy shortfall, whichhas reached 6500MW, mustbe removed on a war footing.

The allocation of the PublicSector Development Pro-gramme (PSDP) should not beutilized for non-developmentpurposes, as has hap-pened in the past.

S m u g g l i n gshould be madeunattractive byreducing therate of duty on

smuggle prone items. The institutionof the Alternative Dispute ResolutionCommittees (ADRC) must be revital-ized for seeking out-of-court settle-ment to tax disputes.

Finally, the working of the Sub-Committees of the Business PersonsCouncil constituted by the FinanceMinister must be made more efficient.

While agreeing with many of theconcerns raised by Tariq Sayeed andother participants, Dr. Shaikh said thatthose who are already paying taxes

would not have to bear anyadditional taxes, and would

get some relief in theBudget for 2012-13.

He said that theupcoming Budgetwould be investment,employment, pro-poorand growth-oriented.He assured the business

community that indus-try-specific issues would

be addressed by FBR inthe forthcoming

Budget.

news02Tuesday, 22 May, 2012

KARACHI

STAFF REPORT

As exports of leather and leather goods have al-ready dropped by 10 percent during the currentfiscal year it is likely to further decline by 10per cent during the next quarter, warned Chair-man Pakistan Tanners Association (PTA) S.Z.Khurshid Ahmed. He said due to increase ininput cost and growing energy shortage andwater drought like situation in Tannery Zone,the main hub of export-oriented tanneries ex-porters are now unable to compete with the in-ternational prices of finished leather aftervalue-addition offered by other regional leathermanufacturing countries. exporters fear a mas-sive decline in orders, he added. Khurshid saidcountry’s biggest leather cluster Sector 7-A ofKorangi Industrial Area was facing extremeshortage of water due to suspension of watersupply from KWSB for the last many years.

PTA goes Leatherfaceover exportsg Leather exports may decline

further, PTA warns

ISLAMABAD

ONLINE

Pakistan-Turkey have decided to openbanks branches in each other countries toboost bilateral trade to a new height of $2 billion by facilitating the businessmen.

The two sides reached the under-standing at 14th session of Pak-TurkeyJoint Ministerial Commission (JMC)meeting of trade ministers on Monday.

The Pakistani Commerce Minister,Makhdoom Amin Faheem and Turkishminister for Development and environ-ment lead the ministerial talk.

Both countries have also decided toextend the cooperation in the field of al-ternate energy, banking, investment, en-ergy, petroleum, railway and agriculture.

Two ministers have also decided toestablish six working groups those wouldbe responsible for the implementationand progress on the bilateral cooperation.

Turkish minister while speaking atthe meeting said that the volume of in-vestment from Pakistan in Turkey is $65million while $ 88 million investmenthas been recorded from Turkey into Pak-istan which is very nominal comparingthe potential. He said that Turkey willsoon open a branch of Turkish nationalbank in Karachi that will help and facili-tate the businessmen of both countries.

He said that Turkey will cooperatewith Pakistan in the areas of energy andelectricity production and both countriesare engaging in this regard.

Makhdoom Amin Faheem said thatboth countries will take measure to boosttrade and investment in each other coun-tries. He said that both brotherly Islamiccountries have historical relations and co-operation in different sectors will help toimprove these relations.

Pakistan and Turkey will sign variousagreements of cooperation in various sec-

tors today (Tuesday) in presence of Turk-ish PM Tayyip erdogan and PM SyedYousaf Raza Gillani.tuRKey tO inVeSt in VaRiOuSSectORS, SayS ZafeR calayan:Turkish economy Minister ZaferCalayan on Monday said that the Turk-ish companies are prone to invest inPakistan.

Zafer Calayan, stated this in a meet-ing with the Chairman Board of Invest-ment (BOI) Saleem H. Mandviwalla, todiscuss the interests of the Turkish com-panies for investment in Pakistan.

Turkey invested an amount of $110billion in last seven years as Foreign Di-rect Investment (FDI) from the period2003-2011, said he.

He said that various Turkish compa-nies are interested for investment inPakistan in the fields of mass trans-portation and solid waste management.

The companies involved in solid

waste management for cities like Lahoreare Albayrak Company and Ozkartallar& Compak Joint Venture, who are re-questing the Pakistani authorities to re-duce the tax duties for environmentalprojects.

The Chairman BOI confirmed theTurkish delegation that the customs tar-rifs would be reduced in the budget of2012-13 and it would continue to be re-duced in the coming years gradually.

Talking about the issue of KarkeyCompany's ownership project, theMOS/Chairman informed the Turkishminister that the company's ships arenot confiscated but are being held till theissue moves towards its settlementthrough the Supreme Court of Pakistan.

The Turkish minister also showedinterest in the Trailor Purchasing Ten-der issued by the Karachi Port Authority,and requested for the kind support ofMOS/Chairman BOI for the realization

of this project by the Turkish companies.Regarding investment opportunities

in the telecommunications sector, theTurkish company Kron Telecommunica-tion Technologies Company undertook ajoint project by the name of "RemoteBroadband Management System Soft-ware Project" with Pakistan Telecommu-nication Limited (PTCL).

The project's value is $1 million. Thecompany wants to establish its corpora-tion in Islamabad. The Turkish ministeralso offered the proposal ofPakistani/Turkish companies to joinhands and do business in the third coun-tries.

Further the Turkish minister as-sured the Pakistani side of their cooper-ation in every field imaginable as the twocountries share common grounds. TheMOS/Chairman endorsed this view andwelcomed more diversified investmentin Pakistan to boost its economy.

Turkish delight!

Murder by numbersg Multiple sales tax rates be reduced to single digit: Tariq Sayeed

g Pakistan, Turkey decide to give trade relations a boost

KARACHI

STAFF REPORT

The country’s auto assembling sector continueson its recovery phase as growth of 6 percentYoY has been witnessed in net sales duringJan-Mar 12 taking the toll to Rs 56 billion.

According to InvestCap Research, thegrowth in the topline earnings was well sup-ported by 7 percent YoY growth in sales volumeaccompanied by 10 percent YoY increase in carprices by the assemblers. The gross profits ofthe company increased by 1.71pps YoY to 4.8percent as assemblers passed on major incre-mental costs on consumers under self imposedpolicy. During the period, change in sale mixwas also witnessed with the introduction ofnew model of Toyota Hilux by Indus Motorsand rising sales of Suzuki Swift by Pak SuzukiMotors. Other income of the sector increasedby massive 29 percent to Rs 727 million duringJan-Mar 12. Improved sales orders from con-

sumers during the period have resulted in bet-ter cash position and return on deposits frombanks of auto assembler.

As far as the bottom line is concerned, thesector posted the hefty growth of 143 percentYoY in PAT during Jan-Mar 12. Higher otherincome coupled with fall in effective tax ratesto 40 percent, from 53 percent earlier, resultedin improvement in net margins by 1.18ppsYoYto 2.10 percent. Indus Motor's Corolla re-mained the market leader holding the marketshare of 31 percent in total car sales duringJan-Mar 12 with volumetric sales growth of 6percentYoY to 12.8k units.

Whereas, Pak Suzuki's Mehran stood 2ndwith the market share of 21 percent posting thevolumetric sales growth of 14 percentYoY to8.7k units during same period. Also during theperiod, Indus Motor announced to discontinueits Coure production while Pak Suzuki is goingto stop the production of its Alto due to incom-pliant of eURO standard.

On the road to redemptiong Pakistan improving road

infrastructure for trade boosting: Arbab

ISLAMABAD

ONLINE

Federal Minister for Communications Dr. Arbab AlamgirKhan Khalil has said important highways connecting Iran arebeing upgraded to boost the trade with Turkey and all othereCO countries. He said this while talking to his Turkish coun-terpart Bin Ali Yaldram , here on Monday. He said that a largenumber of Turkish firms are participating in the developmentprocess in Pakistan and he hopes that more such Turkishcompanies will come to Pakistan and invest here which willfurther strengthen our brotherly relations. Federal SecretaryCommunications Anwar Ahmad Khan, Chairman NHA SyedMuhammad Ali Gardezi, and other high officials of Communi-cations Ministry and delegation of Turkey was also present onthe occasion. The Federal Minister said that broad range ofbilateral matters and numerous memorandums of under-standings would be signed during Turkish Prime Minister toIslamabad. He said that Turkey has the largest transportationsystem in the world and Pakistan desires to introduce thesame in Pakistan. The the two countries should benefit fromeach other’s experiences. He said that by cooperating in thecommunications sector, Pakistan and Turkey can upgradetheir communications system to a great extent.

Auto assemblerspress the acceleratorg Steer 6pc sales growth in 1Q2012

Reincarnation of IndustrialRevolution demandedg Govt should come up with

Industrial Revival Plan in budget2012-13: Yassar Sakhi Butt

ISLAMABAD

ONLINE

Government should come out with suitable eco-nomic package for local industries in upcomingbudget of 2012-13 because decline in the industrialsector growth has been one of the major reasons ofthe lowest GDP growth rate of Pakistan in the regionduring the last four years. There has been a lot of lipservices at the highest levels about industrial devel-opment of Pakistan but it was accorded least prior-ity, thus, micro and macro level strategies areneeded to be re-developed for comprehensive indus-trial revival to achieve sustainable industrial growth,Yassar Sakhi Butt, President Islamabad Chamber ofCommerce & Industry has said, addressing a groupof industrialists at Chamber House. The PresidentICCI was expressing concern over negative growthof manufacturing sector which fell from 2.9 percentto 2.4 percent and said that the country is in direneed of a result and growth oriented Industrial de-velopment strategies to get out of the economic cri-sis. He said that over the last four years thecontribution to GDP made by the manufacturingsector has been stagnant due to increase in gas andelectricity tariffs and load shedding which have putexisting industries under great pressure. YassarSakhi Butt said that Government should announce asuitable incentive package for the industry in theforthcoming budget to stabilize the faltering econ-omy. He said that governments of Malaysia andBangladesh in their industrial development plan,have given various incentives to industrial units.

PRO 22-05-2012_Layout 1 5/22/2012 12:23 AM Page 2

news

Tuesday, 22 May, 2012

03

Trade relations to further boostbetween Pakistan and UAEKaRacHi: Tariq Puri, the chief executive of Trade De-velopment Authority of Pakistan (TDAP), assured fullsupport to UAe for promoting bilateral trade between thetwo countries. He was talking to essa Abdulla Al BashaAl-Noaimi, UAe Ambassador to Pakistan, who called onhim Monday in his office. The ambassador briefed Puriabout the UAe bid for World exposition 2020 where UAeis pitching Dubai as the host city. Chief executive TDAPemphasized upon the Ambassador that in order to bid forDubai, UAe government has to conduct extensive roadshows worldwide to seek the maximum votes of membersof the Bureau of International exhibition (BIS). He ap-preciated the infrastructure which UAe has built over theyears and Dubai is fully geared to host such an importantevent. The Ambassador informed that if UAe wins the bidthen it will be first city in the entire Middle east and SouthAsia which will have this honor. Both also discussed thepositive outcome of Annual Investment Meeting held inDubai this month and UAe Ambassador thanked TDAPfor putting up such an impressive pavilion. Mr. Puri high-lighted the strong brotherly relations which two countriesenjoy in all areas. He hoped that Pakistan and UAe’s eco-nomic relationship will further deepen by participating insuch events in future. PRESS RELEASE

Pakistan International ContainerTerminal (PICT) joins hands with KSBLiSlaMabad: The Karachi School for Business & Lead-ership (KSBL) is proud to announce its partnership withPakistan International Container Terminal Ltd. (PICT),who has very generously contributed to the developmentof one of KSBL’s state-of-the-art Lecture Rooms. We arevery grateful for PICT’s contribution and are confidentthat with their assistance, KSBL will truly revolutionizehigher education in Pakistan. A partnership ceremonywas conducted by PICT at their office premises in whichCapt. Haleem Siqqidui invited the Board of Directors ofthe Karachi education Initiative (KeI), the sponsoring en-tity of KSBL, and demonstrated his and PICT’s commit-ment to Mr. Hussain Dawood, Chairman KeI and Mr.Arif Habib, Chair FR KeI, for furthering economic growthand development in Pakistan through higher education.Capt. Siddiqui also stated that PICT personally supportseducation as a vital tool for the nation’s prosperity andhas committed his contribution towards KSBL’s scholar-ship programme. KSBL has invested significantly in IT in-frastructure and facilities at the campus, and as a resultthe lecture rooms will be equipped with state-of-the-artvideoconferencing facilities enabling students to engagein real-time learning and interactions with renowned pro-fessors and business leaders from around the world dur-ing lectures and web conferences raising the bar foreducation in Pakistan and the region. PRESS RELEASE

Khushhalibank launches onlineservices in its 100th branch at PattokiPattOKi: Khushhalibank Pakistan’s leading microfi-nance bank, has launched online services in its100thbranch at Pattoki, offering multiple liability andasset products and services. The initiative of online/real-time banking has been taken to further Khushhalibank’svision of “One Bank – One Client”, which makes the cus-tomer of one branch, a client of the entire bank, enablinghim to avail its services irrespective of location. Khush-halibank is the largest microfinance Institution in thecountry with over four hundred thousand active clientsand nearly three million micro-loans extended to promotebusiness and empower small entrepreneurs across thecountry. PRESS RELEASE

101 reasons to believe in PakistanKaRacHi: I am pleased to present to you our 101 Rea-sons to Believe in a Better Pakistan book, a publicationthat Coca-Cola has brought out as a part of its larger cam-paign to spread positivity in our society. As we are allaware, Pakistan is going through a disturbing identity cri-sis. We seem to be increasingly getting lost in a culture ofnegativity and despondency, making it very difficult forpeople to be optimistic about life and their country. Insuch a situation, Coca-Cola believes there is a pressingneed to shift the focus towards all the good things aboutPakistan that very much exist, but which are perhaps notgetting enough attention. PRESS RELEASE

Turkish minister meets BOI chairman

iSlaMabad: H.e Mr. Zafer Calayan, Minister of econ-omy, Republic of Turkey called on MOS/Chairman Boardof Investment Mr. Saleem H. Mandviwalla, to discuss theinterests of the Turkish companies for investment in Pak-istan. Turkey has an amount of $110 billion of FDI fromthe period 2003-2011. Various Turkish companies are in-terested for investment in Pakistan in the fields of masstransportation and solid waste management. The com-panies involved in solid waste management for cities likeLahore are Albayrak Company and Ozkartallar &Compak

Joint Venture, who are requesting the Pakistani authori-ties to reduce the tax duties for environmental projects.The MOS/Chairman BOI, confirmed the Turkish delega-tion that the customs tarrifs would be reduced in thebudget of 2012-13 and it would continue to be reduced inthe coming years gradually. Talking about the issue ofKarkey company’s powership project, the MOS/Chair-man informed the Turkish minister that the company’sships are not confiscated but are being held till the issuemoves towards its settlement through the Supreme Courtof Pakistan. The Turkish minister also showed interest inthe Trailor Purchasing Tender issued by the Karachi PortAuthority, and requested for the kind support ofMOS/Chairman BOI for the realization of this project bythe Turkish companies. PRESS RELEASE

ADB delegation meets NHA chairman

laHORe: A delegation of Asian Development Bank(ADB) headed by its Country Director Mr. Leigh Wernercalled on Chairman NHA Syed M.Ali Gardezi at NHAHeadquarter, here on Monday. Senior Officers of NHAwere also present on this occasion. On their arrival SyedM.Ali Gardezi welcomed the visiting guests. In the meet-ing, national highways projects underway with the assis-tance of the ADB were reviewed in detail. These projectsinclude Faisalabad-Gojra Section (Rs. 14 billion) of M-4,68 km Sukkur-Jacobabad Section (Rs. 7 billion) and 150km Qila Saifullah-Zhob Section (Rs. 8-billion). It is re-called that the representatives of NHA and ADB jointlyhold a quarterly review of these projects to monitor theirprogress. The ADB staff visited these projects from May15 to 20, 2012 and met Chairman (NHA) to discuss theirfindings. ADB Country Director Mr Leiph Werner ex-pressed satisfaction over pace of work on all the threeprojects and appreciated efforts of NHA. In the meetingboth the sides also agreed to undertake new projects in2012-13, which include Gojra-Shorkot Section of M-4,Jharikas-Sarai Salik section of Hassanabadal- Havelianexpressway and Zhob-Mughalkot, and Qila Saifullah Lo-ralai-Waigam Rud projects in Balochistan. The meetingalso reviewed the preparatory work of these schemes. Itwas also agreed that depending on budget allocations atleast two of the above projects one section from Hassan-abadal-Havelian expressway and other from M-4, shouldbe started. PRESS RELEASE

CORPORATE CORNER

Major Gainers

Company Open High Low Close Change Turnover

Mithchells Fruit 214.76 225.49 214.76 225.49 10.73 986Wyeth Pak Limited 770.00 780.00 755.00 780.00 10.00 101Shezan Inter. 184.07 193.27 185.88 193.27 9.20 24,550Pak.Int.Cont SD 157.50 165.37 161.00 162.62 5.12 8,495Pak Services 150.84 158.38 150.84 155.26 4.42 180

Major Losers

Rafhan MaizeXD 2900.00 2880.00 2780.00 2827.18 -72.82 11Nestle Pakistan Ltd. 3990.00 4024.99 3950.00 3978.29 -11.71 13AL-Ghazi Tractor 205.06 208.50 195.00 196.26 -8.80 4,474Clariant Pak 163.07 163.07 156.05 157.62 -5.45 19,042Bata (Pak) Limited 644.22 670.00 620.00 640.00 -4.22 65

Volume Leaders

JS Bank Ltd 5.20 5.89 5.10 5.80 0.60 10,720,366Jah.Sidd. Co. 16.57 16.89 16.21 16.34 -0.23 8,070,482D.G.K.Cement 40.49 40.66 39.70 40.28 -0.21 7,217,367Bankislami Pakistan 10.83 10.74 9.83 10.11 -0.72 6,841,754Engro Foods Ltd. 64.75 66.20 64.75 65.63 0.88 3,403,222

Interbank RatesUS Dollar 91.2947UK Pound 144.4282Japanese Yen 1.1510euro 116.5742

Dollar EastBuy Sell

US Dollar 91.80 92.40Euro 116.50 117.78Great Britain Pound 144.43 145.97Japanese Yen 1.1466 1.1588Canadian Dollar 89.31 90.77Hong Kong Dollar 11.68 11.85UAE Dirham 24.90 25.14Saudi Riyal 24.42 24.62Australian Dollar 89.51 91.93

KARACHI

STAFF REPORTER

tHe bulls kept dominatingKarachi stocks market onfirst working day of theweek Monday with bench-

mark, KSe 100-share index gained17.96 points. The day saw the indexclosing up by 0.13 percent at13,875.74 points against 13,857.78points of Friday.

The Pakistan Stocks closed higheramid thin trades as investors re-mained cautious ahead of federalbudget announcements due nextmonth. Viewed by Ahsan Mehanti, Di-rector at Arif Habib Investments Lim-ited.

On Monday, the trading volumesat the ready-counter were recordedlower at 81.448 million shares against175.707 million shares of the previousday. The trading value too decreasedto Rs 2.121 billion compared to Rs5.160 billion of the previous session.The intraday high and low, respec-tively, stood at 13,943.36 and13,857.78 points.

He added that the fall in globalcommodities and stocks affected thesentiments despite foreign interest inbanking and oil sector stocks. Themarket capitalization increased to Rs3.544 trillion from Rs 3.539 trillion a

day earlier. Of the total 361 tradedscrips, 139 gained, 143 lost and 79 fin-ished as unchanged. The free-floatKSe-30 index also gained 25.44points to close at 12,006.24 pointsagainst the previous 11,980.80 points.

Jahangir Siddiqui Bank Limitedwas the day’s volume leader countingits traded shares at 10.720 millionwith the opening and closing ratesstanding at Rs 5.20 and Rs 5.80, fol-lowed by Jahangir Siddiqui CompanyLimited, D.G.K Cement, BankislamiPakistan and engro Foods Limitedwith turnover of 8.070 million, 7.217million, 6.841 million and 3.403 mil-lion shares respectively.

According to analyst the tradingremained in narrow range as investorsawaited announcements on militaryaid to Pakistan during President visitfor Chicago conference amid hopes forimprovement in Pak-US relations onresumption of NATO supplies.

On the future market, theturnover recovered remarkably byover 5 million shares to 19.752 millionagainst 14.502 million shares of lastworking day of the week Friday. TheMithchells Fruit and Wyeth PakistanLimited, up Rs 10.73 and Rs 10.00,led highest price gainers while,Rafhan Maize XD and Dreamworld,down Rs 72.82 and Rs 21.15 respec-tively, led the losers.

Budget apprehensionhalts early bull surge

INDEX UP 18 PTSTCP awards tender forimport of 0.1 m tonne urea

ISLAMABAD

ONLINE

The Trading Corporation of Pakistan (TCP) has awarded tenderfor import of 0.1 million ton urea in a bid to avert any shortageand ensure smooth availability of urea to the farmers in the cur-rent Kharif. In response to its international Tender Noticefloated on April 18 last month, the TCP awarded import contractfor a quantity of 100,000 metric ton urea at US$522.86 permetric ton (PMT) C&F, to the lowest bidder M/s. Gavilon Fertil-izer LLC, USA on Monday. According to the official handout, inall 14 bids received in the tender. All were found responsive interms of prescribed evaluation criteria. The prices quoted in thetender ranged from US$522.86 per metric ton to US$549.00per metric ton (C&F). M/s. Gavilon Fertilizer LLC offered thelowest price of US$522.86 for 100,000 metric ton. As the offerconformed to all technical specifications and was the lowest, thecontract was awarded, to the lowest bidder for a total quantity of100,000 metric ton.

Sipping another cup of teaCOIMBATORE

ONLINE

Opening the Wagah-Attari border will provide an ideal route fortea export to Pakistan besides saving a considerable amount oftime, United Planters Association of South India (UPASI) hassaid. Shipments could easily take more than two weeks whileland route could transport teas in a week, Press Trust of Indiaquoted UPASI as saying. A decision on opening the Wagha-Attari border may be made atthe policy level and another policy that could bring positivechanges to India-Pakistan trade is to have a functional SAARCPreferential Trade Agreement (SAPTA), the association said.South India's tea exports to Pakistan reached 23 million kg lastyear and the figure is expected to rise to 50 million kg in a fewyears time, UPASI added.

PIA moves toavoid secondarysecurity checks

KARACHI

STAFF REPORT

THe Pakistan International Airline(PIA) is formulating, what the PIAspokesman said Monday, a compre-

hensive strategy for the restoration of euro-pean Aviation Safety Agency 145 (eASA145) approval for the airline’s engineeringand flights to the United States without enroute secondary security checks at Man-chester.According to a PIA spokesman, the decisionwas taken by Managing Director PIA, AirChief Marshal Rao Qamar Suleman (R)after his return from Colonge, Germany onMay 15 where he held the highest levelmeeting with the eASA officials. Sulemanwas invited by the eASA Board to discusspossible ways for the restoration of PIA’seASA 145 approval, the spokesman said.During the meting the eASA authoritiesagreed with the steps suggested by the PIA.The visiting PIA team presented a roadmapon restoration of eASA 145 approval forPIA engineering.The managing director PIA also met withtop officials of Transportation Security Ad-ministration (TSA) along with HomelandSecurity officials and discussed the variousoptions available to both sides to create aframework that would allow the PIA to flyto the USA without en route secondary se-curity checks.The managing director PIA was welcomedby the TSA officials. During the meeting se-curity concerns were discussed. MD PIA as-sured that all issues shall be addressed byPIA on an urgent basis. TSA team was satis-fied by steps suggested by PIA.Both meetings were successful as MD PIAwas able to convince eASA and TSA toallow PIA time to resolve the issues raisedby both the agencies. The matter is mostcritical for the airline as a possible sanc-tion by either of the Agency can result insuspension of the PIA flights to eU andthe USA.The managing director is putting together acomprehensive strategy to tackle the matteron emergency basis. PIA spokesman con-cluded.

IN FLIGHT

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