News Alerts - Muhammad Imran Ghazi 19 Jul 2012 Email... · News Alerts Email # 169 Pak Law...

News Alerts

Daily News Thursday, July 19, 2012

News Alerts Email # 169

Pak Law Publication Office # 05, Ground Floor, Arshad Mansion, Near Chowk A.G Office, Nabha Road Lahore.

Ph. 042-37350473 Cell # 0300-8848226 [email protected] 2

July 19, 2012

Table of Contents

Taxation: Pakistan ............................................................................................................................. 4

Isaf containers scam: NAB detains 22 clearing agents, principal appraiser FAZAL SHER & SOHAIL SARFRAZ ............................................................................................................................................ 4

NTN, CNIC condition: controversial SRO rescinded ............................................................................ 6

FBR, SRB sort out key issues: Joint audit of service providers in Sindh agreed .................................... 7

FBR transfers seven Customs officials ................................................................................................ 8

Business & Economy ....................................................................................................................... 9

Labour force to expand 3.5pc in current year .................................................................................... 9

Call for socio-economic uplift of non-Muslims ................................................................................. 10

APTMA sets up sustainable production centre ................................................................................. 11

New markets to be set up in Balochistan to boost Pak, Iran bilateral trade ...................................... 11

Non-availability of standardized nets may hit new fishing season .................................................... 12

Industries & Sectors ...................................................................................................................... 14

Land alloted for 500MWs Wind Power Project in Thatta .................................................................. 14

Shipping activity at Port Qasim ........................................................................................................ 15

LCCI to take part in Istanbul Musiad fair .......................................................................................... 16

Fuel and Energy: Pakistan ............................................................................................................ 18

Arrest warrants in RPP deals: NAB not sharing names with power, water ministry........................... 18

Seminar on materialising renewable energy resources held ............................................................. 19

Power tariff for April, May: KESC allowed Rs 1.14, Re 0.52 per unit hikes ......................................... 20

Pak-Iran bilateral co-operation in oil, gas sectors discussed ............................................................. 20

KESC's AZM Conference concludes .................................................................................................. 21

Government urged to expedite work on IP gas pipeline ................................................................... 21

'Government manages to overcome power outages' ....................................................................... 22

Miscellaneous News ....................................................................................................................... 23

Gas import: Iran to lay Pakistan’s portion of pipeline ....................................................................... 23

View from McLeod Road: Can MCB Bank succeed in India? ............................................................. 24

Global market: Pakistani basmati may slip down the pecking order ................................................. 25

‘Accountants should manage processes instead of budgets’ ............................................................ 27

Corporate results: Hubco profits swell to record high ...................................................................... 28

UBL boosts profit 39%, trims bad loans ............................................................................................ 29

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July 19, 2012

OPEN MARKET FOREX RATES ........................................................................................................... 31

INTER BANK RATES .......................................................................................................................... 32

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ......................................................................... 33

Gold Rates & Silver Rate from major cities of Pakistan ..................................................................... 34






July 19, 2012

Taxation: Pakistan

Isaf containers scam: NAB detains 22 clearing agents, principal appraiser FAZAL SHER & SOHAIL SARFRAZ July 19, 2012

The National Accountability Bureau (NAB) has so far arrested 12 customs clearing agents and a Principal Appraiser of the Customs Department in connection with the Isaf containers scam, which caused an estimated revenue loss of Rs55 billion to the national exchequer. Sources told Business Recorder here on Wednesday that the Bureau was investigating the scam in the light of available documents and customs clearance data held at the Model Customs Collectorates (MCCs). Customs clearing agents were primarily responsible for clearing containers that never reached their destination. The NAB initiated criminal investigation against persons involved in the scam. The official said that Sardar Amin Farooq was accused of misusing the Afghan transit facility along with other clearing agents and officials. A customs official Farooq, who served as principal appraiser between 2001 and 2010, was arrested after NAB initiated an inquiry. The Federal Board of Revenue (FBR) referred complaints about the misuse of the Afghan transit facility on orders of the Supreme Court, he said. He said that clearing agents and others officials were clearing containers carrying goods meant for Afghanistan under the Afghan Transit Trade Agreement but the goods never crossed the border and were disposed off in Pakistan. The official said that so far NAB reviewed the cross-border certificates (CBCs) of 2,000 of 22,000 containers. "The inquiry in the Isaf containers is in the middle stage and all senior officials of customs and FBR who were related to the case are part of the investigation," he said. About the number of officials involved in the scam, sources said that all customs officials concerned who remained posted at relevant customs stations between January 1, 2007 and December 31, 2010 are part of the overall investigation of the scam. The NAB is trying to ascertain the role of customs officials during the clearance of Isaf/Nato consignments. The investigation is underway and documents are being scrutinised from various sources, he added. Dozens of customs officials, who were posted at Model Customs Collectorates, were responsible for the clearance of the transit goods. However, no criminal proceedings had so far been initiated against any senior customs official in the field formations or the Board itself.






July 19, 2012

The FBR has already handed over the complete record of cases to the NAB, including the adjudged amount of duties/taxes and penalty, for further action. FBR submitted records as well as a report to NAB. According to the report, the FBR had already informed NAB that the frequent use of Hired Mechanical Transport (HMT) of private transporters carrying Afghan transit cargo and Isaf/Nato containers were complicit in the disappearances of containers. The investigation also showed that the concept of HMTs was abused as a system of checks was not put in place. National Logistic Cell (NLC) was a mere conduit and authorised private transporters to carry transit cargo on its behalf and the Preventive Collectorate, despite being fully aware of the crime, did nothing to stop the malpractice. Non-desealing of containers in the Pakistan Customs Computerised Clearance System (PaCCSS) should have led to the ringing of alarm bells as well as non-arrival of cargoes at their respective destinations. No attention was paid by the Preventive Collectorate, Karachi, which had the control and custody of PCCSS and hence the crime continued because of this wilful failure. The border Collectorates should have immediately raised alarm regarding non-arrival of these containers but it is astonishing to note that they wilfully opted for inaction in this regard, thus effectively forestalling any detection of the crime on the one hand and enabling its perpetuation on the other, FBR''s report to NAB said. At a time when a lot of investment was being made in automation of systems and procedures as part of FBR Reforms, the transit trade clearances continued to be handled through manual registers and Afghan Transit Trade Invoices. The FBR had further informed the NAB authorities that it is also shocking to note that thousands of containers appear in the PaCCSS as de-sealed but their corresponding proof of arrival and cross-border at the exit stations is missing. This proves that false entries were fed in the system to show arrival of thousands of containers at the border station, which never reached there and were actually pilfered/smuggled en-route. During the course of investigations numerous instances of serious illegalities, irregularities, wilful non-compliance and systemic issues were identified which facilitated the commission and perpetuation of the crime on the one hand and its cover up on the other. Prior to handover of the case to NAB, the FBR Probe Committee undertook a massive exercise of reconciliation of Afghan Transit record of the consignments originating at Karachi with those arriving at border stations of Chaman and Torkham to identify the missing cargo. Afghan Transit Trade Invoice (ATTI) being the prescribed document under the Afghan Transit Trade Agreement of 1965 was identified as the main instrument for reconciliation. The reconciliation was a mammoth exercise in the context that most of the record was being maintained manually (including that of ATTIs) and required digitisation of over 300,000 documents pertaining to customs clearances at Karachi, Torkham and Chaman, and running various tests/analyses to identify the missing/pilfered containers.






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The Committee had submitted several reports, in the Apex Court. Based on various inquiries and confirmations made so far, as many as 28,900 commercial Afghan Transit Trade containers were identified regarding which proof of their crossing the Pakistan-Afghanistan border could not be found. Since proof of their cross border could not be found on the basis of cross-border certificates available in the record of border stations, prima facie conclusion was that they were smuggled and disposed off inside Pakistan. Estimated revenue loss on these containers comes to around Rs55 billion. Copyright Business Recorder, 2012

NTN, CNIC condition: controversial SRO rescinded July 19, 2012

The Federal Board of Revenue on Wednesday withdrew a major policy measure for documentation of economy by rescinding SRO821(I)/2011, giving free hand to importers, exporters and manufacturers for not disclosing the computerised national identity card numbers (CNICs) and National Tax Number (NTNs) of their unregistered buyers. The FBR has issued SRO.880(I)/2012 and SRO.879(I)/2012 to rescind the SRO821(I)/2011 and SRO.191(I)/2011 to take away the documentation measure to increase the number of sales tax registered persons. It was the biggest policy measure and reform initiative to expand the sales tax net through registration of the buyers within the supply chain of importers, exporters and manufacturers. On July 18, 2012, the FBR had withdrawn this documentation measure and the attempts of the tax machinery to bring suppliers into the tax net seems to have been failed following rescinding of the SRO.821(I)/2011 and non-applicability of SRO191. The FBR has also rescinded the chapter of the sales tax special procedure to abolish phase-wise implementation of the SRO191(I)/2011. Sources said that SRO821(I)/ 2011 and SRO.191(I)/2011 were issued to improve documentation on the sales tax side. However, powerful lobbies and influential groups have forced the FBR to rescind these notifications. Following is the text of the notifications issued here on Wednesday: S.R.O.879 (1)12012. In exercise of the powers conferred by sub-section (1) of section 4 and section 40 of the Federal Excise Act. 2005, section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act. 1990, read with sub-section (2) of section 8, clause (ii) of sub-section (2) of section 8B sections 9, 10, 14, 21 and 28, clause (c) of sub-section (1) of section 22. first proviso to sub-section (1) of section 23, section 26, sub-section (6) of section 47A, sections 48, 50A, 52A and 66 thereof, the Federal Board of Revenue is pleased to direct that the following further amendment shall be made in the Sales Tax Rules. 2006, namely:






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In the aforesaid Rules, Chapter XIVA shall be omitted and shall be deemed to have been so omitted with effect from the February 23, 2012. S.R.O. 980 (1)12012: In exercise of the powers conferred by first proviso to sub-section (1) of section 23 of the Sales lax Act, 1990, read with sub-section (3) of section 19 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to rescind its Notification No. S. R.O. 821.(I)/2011, dated the 6th September, 2011, which shall be deemed always to have been so rescinded. Copyright Business Recorder, 2012

FBR, SRB sort out key issues: Joint audit of service providers in Sindh agreed July 19, 2012

The Federal Board of Revenue and Sindh Revenue Board (SRB) mutually sorted out some key issues like input tax adjustment/audit of service providers here on Wednesday and agreed to jointly conduct audit of service providers in Sindh with the help of the experienced tax officials of the FBR. Sources told Business Recorder here on Wednesday that Chairman SRB Shakaib Qureshi met the FBR Chairman Ali Arshad Hakeem at the FBR House to discuss important issues relating to the services providers in Sindh. This is the first meeting of the newly appointed FBR Chairman which resolved a number of key issues pertaining to the services' sector of Sindh. Firstly, the FBR has informed the SRB that the opinion of the Law and Justice Division has been sought on the legal status of the restaurants and hotels. The SRB has asked the FBR to treat the restaurants as service providing units whereas the FBR opined that partially the restaurants should be treated as goods. The FBR has assured the SRB that the legal opinion of the Law and Justice Division would be implemented in its true spirit. If the Law and Justice Division declares the restaurants as services, the FBR will give these units treatment under the prevailing tax laws. Secondly, both the sides agreed to jointly conduct audit of the service providers of Sindh. As the FBR officials have ample experience of audit, they would assist the tax officials of the SRB in conducting the audit of the service providers of Sindh. The FBR will help the SRB in conducting result oriented audit of the service providers. Thirdly, both the tax administrations have reassured to exchange the data for broadening of their tax bases and conducting taxpayer's audit. The FBR has already allowed the SRB to have full access to its data relating to customs and regarding the sales tax matters of service providers. On the issue of input tax adjustment by the buyers of services obtained from the service providers of SRB, the FBR and the SRB have agreed to provide this adjustment so that the






July 19, 2012

taxpayers throughout the country are facilitated and be able to get the input tax adjustments in their returns as well as in the refund claims. The meeting between heads of both the tax administrations ie FBR and SRB has proved to be very productive which will resolve long outstanding issues of input tax adjustments and refund claims. This mutual co-operation of the tax administrations will help in generating more revenue and plunging the leakages through the joint audit. Copyright Business Recorder, 2012

FBR transfers seven Customs officials July 19, 2012

The Federal Board of Revenue (FBR) has transferred and posted seven officials of Pakistan Customs Service (Grade-19 to 20) with immediate effect. According to a notification issued here on Wednesday, Ali Salman Abbasi, Collector (BS-20), MCC, Lahore has been transferred and posted as Director, PCA, Lahore; Jehanzeb Mehmood, Commis-sioner (IRS BS-20) from MCC, Peshawar (U/S 10) to Commissioner (IR), Zone-I, Peshawar; Fazal Yazdani Khan, Director (OPS, BS-19) from PCA, Lahore to Collector (OPS), MCC, Lahore; Muhammad Yaqoob Mako, Additional Director (BS-19) Intelligence & Investigation (Customs), Karachi to Additional Collector, MCC (Preventive), Airport, Karachi; Muhammad Saeed Khan Jadoon, Additional Collector (BS-1 9) from MCC, Peshawar to he will look after the charge of the post of Collector, MCC, Peshawar; Feroze Alam Junejo, Additional Director (BS-19) from DOT (Customs), Karachi to Additional Director, Intelligence & Investigation (Customs), Karachi and Hassan Sardar, Additional Commissioner (IRS BS-19), Additional Collector (U/S 10) MCC (Preventive), Karachi has been transferred and posted as Additional Commissioner, RTO-I, Karachi.-PR Copyright Business Recorder, 2012






July 19, 2012

Business & Economy

Labour force to expand 3.5pc in current year Wednesday, 18 July 2012 16:35

ISLAMABAD: The labour force is expected to grow by 3.5% during the ongoing fiscal year (2012-13) according to the projections of the government that have been made keeping in view the past average population growth and increase in the labour force participation rate.

The labour force growth indicates that approximately 2 million new jobs would be demanded during the fiscal year 2012-13.

As prevailing employment elasticity is 0.5, approximately 7% GDP growth would be required to absorb the growing labour force and to maintain the unemployment level of 2011-12, official document revealed.

The federal government has initiated a number of programmes to increase the employment through an effective human resource development, according to the document.

These programs include National Internship Program, President's Rozgar Program; Credit for Self Employment by National Bank of Pakistan (NBP), Enhancement of Residential Facilities by Construction of One Million Housing Units, Doubling of Lady Health Workers to cover Kachi Abadis, Raising of Minimum Wage from Rs. 6,000 to Rs 7,000 and Pension of workers, Establishment of National Vocational Technical Training Commission (NAVTTC),Benazir Income Support Program (BISP) and Restoration of Trade Unions.

The government together with Employers' and Workers' representatives with technical support of ILO is implementing a "Decent Work Country Program (DWCP)" in all provinces.

The main objectives of the programs include to promote decent employment in which international labour standards and workers' fundamental rights go hand in hand with job creation.

The program is also aimed to place employment at the center of economic and social policies at the global, regional and national level, improve the lives of millions of people who are either unemployed or whose remuneration from work is inadequate, and provide them opportunity and their families to escape poverty through the creation of productive employment.

Improve earnings, productivity and living standards of working women and men, especially of the working poor; and ensure that the benefits of economic growth reaches those sectors where poverty is most concentrated, urban informal economy and the rural areas, especially landless labour and small tenant farmers.






July 19, 2012

It is pertinent to mention here that an amount of Rs 2,880 million has been allocated to fund 10 proposed projects of Ministry of Professional and Technical Training for PSDP 2012-13 including Rs 300 million allocated to National Vocational and Technical Training Commission (NAVTTC) to fund 134 development projects including 90 ongoing programs at estimated cost of Rs 3,993 million costs.

Copyright APP (Associated Press of Pakistan), 2012

Call for socio-economic uplift of non-Muslims Wednesday, 18 July 2012 15:40

ISLAMABAD: Minister Incharge for National Harmony Dr. Paul Bhatti here Wednesday called for socio-economic uplift of non-Muslims in Pakistan to protect them and resolve their issues.

Talking to a six member European Union Parliament Mission delegation led by Jean Lambert, chair of South Asia, Dr Paul discussed issues of non-Muslims in Pakistan and stressed for steps to impart them education for their active role in the society.

He said the issues of non-Muslims are related to poverty and illiteracy as mostly they are marginalized class of society especially the Christians community. They are unable to pay schools fees and feed their children properly, he added.

He proposed to set up boarding schools for the non-Muslim children of 4 or 5 classes where they can be educated properly and trained social and living techniques in the society.

As far as the poverty is concerned, most of the non-Muslims live in the slums as they are unable to improve their living standard due to lack of economic resources, Dr. Paul said.

"We are planning to set up small business and vocational schools to provide the opportunities toward economic uplift of the minorities," he said.







July 19, 2012

APTMA sets up sustainable production centre Wednesday, 18 July 2012 11:22

RECORDER REPORT

LAHORE: The All Pakistan Textile Mills Association (APTMA) has established Sustainable Production Centre (SPC) with support of German International Cooperation (GIZ) to guide its members on improving their overall production systems through modifications and incorporating adjustments in existing processes to enhance energy efficiency, said Vice Chairman Seth Muhammad Akbar.

He was addressing a seminar on “waste heat recovery solutions for textile industry” jointly organised by the SPC APTMA and GIZ at a local hotel on Tuesday. As many as 70 textile energy managers and mill owners attended the seminar.

Vice Chairman APTMA said textile being the largest manufacturing sector of Pakistan is badly affecting due to non-availability of electricity and gas, failing to meet production targets and yet not able to afford the associated high energy costs. To cope with the prevailing energy crisis faced by the textile industry, APTMA has initiated sustainable energy management system implementation programme, he added.

He expressed the hope that this futuristic approach of APTMA would strengthen the industry in dealing with energy management ahead.

Seth Akbar said the SPC would provide services on energy efficiency and management, material flow management, environmental management, CSR, renewable energy, policy support and advisory service on energy related matters and capacity development of industry professionals.

Both local and foreign consultants presented various options on waste heat recovery solutions including installation of absorption chillers, gasifiers, and coal water slurry (CWS) etc. The participants enthusiastically raised questions about various options and their payback time.

New markets to be set up in Balochistan to boost Pak, Iran bilateral trade Wednesday, 18 July 2012 13:32

ISLAMABAD: Pakistan Peoples Party leader Bismillah Khan Kakar said that new markets will be established in Balochistan for boosting trade with Iran.






July 19, 2012

Talking to a private news channel, he said Pakistan and Iran have lot of trade opportunities and markets will increase bilateral trade and job opportunities for people of both countries.

He said Pakistan is exporting fruits and vegetables to Iran from Quetta. Similarly, "We are importing fruits and other utilities from Iran especially in case of shortage", he added.

He said Iranian Ambassador has recently arranged a meeting of traders in Quetta and promised that traders will be provided all facilities.

Bismillah Kakar said Iran has supplied 100 MW electricity to Pakistan so for and Iran has agreed to supply 1000 MW electricity. "We have decided that we will buy Iran's electricity and now progress is taking place in this regard," he said.


Non-availability of standardized nets may hit new fishing season Wednesday, 18 July 2012 11:10

RECORDER REPORT

KARACHI: The new fishing season is feared to begin without standardized nets for catching shrimps and fish because of the unavailability of meshes to the fishermen, sources said on Tuesday.

According to an agreement, Pakistan Fisheries Exporters Association (Pakfea) and Pakistan National Fisheries Development Board are jointly responsible for making the officially-approved available in the local market, they said.

They said that the new fishing nets will either have to be imported or made locally.

Officials of Karachi Fish Harbour Authority (KFHA) said that the standard nets were likely to be available soon in the local markets. However, they conceded there are lesser chances of timely provision of meshes to the fishermen.

They said the delay in meshes availability can hit the local market, as demand for nets is rising as every fishermen will have to use the approved net for fishing. They said the KFHA has already dispatched nets samples to the Pakfea for making it available to fishermen as early as possible.

An official letter sent to different fisheries stakeholders states that the fishing nets will be exclusive of general sales tax. It also laid down the modus operandi in this regard.

It says, “The requisite net will be distributed through Maritime Security Agency (MSA). MSA will stop the boat on the points where they set-up picket, if found destructive nets.






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MSA will take it into its custody and provide requisite notified nets to the boat. Cost of net will be recovered from owner of boat and deposited in the account of FDB/Pakfea.”

The authority will have to ensure the import of fishing nets which will be made on bridge financing, the letter said, adding that M/s. Flow (Pvt.) Ltd., and M/s. Fazal Industries have placed their quotations for the meshes. The Sindh government has set 65mm net size for fishing and 45 mm for hunting of shrimps, asking the fishermen to install the new nets to their boats and disband the existing destructive ones.






July 19, 2012

Industries & Sectors

Land alloted for 500MWs Wind Power Project in Thatta Wednesday, 18 July 2012 20:55

KARACHI: Sindh Chief Minister Syed Qaim Ali Shah has alloted land to NBT Power Pakistan (Pvt) limited for 500 MWs Wind Power Project in district Thatta.

Addressing the provisional land allotment ceremony to NBT Wind Power Pakistan limited, the Sindh CM said it will appear as the biggest Wind Power Project of Asia and Sindh will become biggest Power House of Pakistan, said a statement issued here on Wednesday.

Welcoming the guests from NBT, Norway-based company and their partner Malakoff, a Malaysian company, he said that Sindh Government will extend all support to the investors under new Land Allotment Policy.

Syed Qaim Ali Shah said government of Sindh guarantee for provision of security in the area in coordination with the management of companies.

Addressing the occasion, Chairman Sindh Board of Investment (BOI), Muhammad Zubair Motiwala explained the features of the project.

He said that NBT has committed for the completion of the project in shortest possible time. Looking at the volume of the project and the profile of the company, we expect that physical civil work on ground will start in 12 months, he added.

He said only area under footprints will be leased to the investors while rest of the land will remain in possession of the government and can be used for any other purpose.

He told the audience that under old policy for 500 MWs, 12500 acres of land were required and under new policy we here only provisionally allotting 908 acres of land in strips, which is as per the best international practices.

He said at present land has been allotted to 30 local as well as international investors will install capacity of more than 1800MWs and we hope to grant at least 800 MWs by the June 2013 with United Energy-150 MWs China Three Gorges-150 MWs, FFC-50 MWs, Zorlu Energy 56.4 MWs and Fauji Foundation 100 MWs and NBT-500 MWs.

Addressing the occasion, Secretary Investment Ms. Naheed Shah Durrani told the audience that NBT has very recently emerged as major player in the renewable energy sector and have already commissioned 200 MWs in Beijing, China and have signed a framework agreement of 1000 MWs (20 farms) with Datang China.






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She added that Malakoff, the leading IPPs on Multiple fuel technology with generation capacity of 5020 MWs in Malaysia alone and thousands of MWs in Saudi Arabia, Bahrain and Algeria, is the major implementation partner in 500 MWs Wind Power Project with NTB.

She said that looking at the experience and background in the energy sector Government of Sindh has also under taken discussion with Malakoff to consider installation of 1000 MWs Thar Coal Field Power Plant in Sindh preferably in Thar area.

The Sindh CM also invited guests Malakoff to participate in the Thar Coal Mining Power Generation Project in the next ICB.

The ceremony was attended by Minister Information Sharjeel Enam Memon, the Chief Secretary Sindh, the Secretary Information, Senior Member BOR, Member Land Utilization and others.


Shipping activity at Port Qasim Wednesday, 18 July 2012 15:49

KARACHI: Shipping activity remained activity at the Port where three ships carrying containers were berthed at Qasim International Container Terminal on Tuesday.

Meanwhile another ship with furnace oil also arrived at outer anchorage of Port Qasim during the Same day.

Berth occupancy was managed at the Port at 36% on Tuesday where five ships namely C.V Nedlloyd Mercator, C.V CMA CGM Mozart, C.V Hanjin Malla. C,V MSC Jade and M,T FPMC Fortune were occupied at PQA berths to load/offload containers and diesel oil during last 24 hours.

A cargo volume of 75,793 tonnes, comprises 37,376 tonnes imports and 38,057 tonnes exports, inclusive containerized cargo carried in 3,483 containers (1,480 imports and 2,003 exports (TEUs) were handled at the Port during last 24 hours.

Container vessel 'Nedlloyd Mercator' sailed out to sea on Wednesday morning.

While three more ships C.V CMA CGM Mozart, C.V Hanjin Malta and C.V MSC Jade are expected to sail on same day afternoon.

Two ships M.V Aeolos and M.T AL-Khalidia scheduled to load/offload cement and furnace oil are expected to take berths at Multipurpose Terminal and FOTCO Terminal respectively on Wednesday.






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Two ships C.V CMA CGM strauss and M.T AL-Salam-II are due to arrive at Port Qasim on same day. While two more ships C.V Hansa Liberty and C.V Saigon Express are due to arrive on Thursday.


LCCI to take part in Istanbul Musiad fair Wednesday, 18 July 2012 11:22

RECORDER REPORT

LAHORE: The Lahore Chamber of Commerce and Industry will participate in 14th MUSIAD International Fair and 16th International Business Forum Congress being held in Istanbul on October 11-14, 2012 under the patronage of Recep Tayyip Erdogan, Prime Minister of Turkey.

The understanding was reached during a 3-member MUSIAD delegation meeting with LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar. The Turkish delegation comprising MUSIAD Chairman of Foreign Relations Commission Sevket Can Tulumen, Coordinator Foreign Relations Abdulkadir SICAKYUZ and Commercial Counsellor in Turkish Embassy Cezmi BESOGUL spent well over an hour at the LCCI and threw light on the Fair-Congress event and its importance for all the Muslim countries.

Sevket Can Tulumen said that this year slogan for the 14th MUSIAD International Fair is “Uniting Your Business with the World” and the Fair-Congress would be international meeting point of all the sectors where 5,000 overseas entrepreneurs and distinguished businessmen from 84 countries along with Ministers, heads of Chambers of Commerce and Presidents of leading businessmen Associations will be participating.

He informed the LCCI office-bearers that the International Business Forum Congress, being organised with the aim of developing intra-OIC economic relations, will focus on the main theme of “The Era of Economic and Political Progress in OIC Countries” and will include themed parallel sessions as well as country and project presentations.

Speaking on the occasion, the LCCI President Irfan Qaiser Sheikh said that during the meetings held in Turkey last months, the LCCI and MUSIAD mutually agreed to take two-way trade to $2 billion in coming 4-5 years from existing around $1 billion mark.

“During our interaction with the business community of Turkey, various sectors like telecommunications, information technology, financial services, petrochemicals, livestock, dairy, consumer goods, food processing, pharmaceuticals, minerals, and particularly energy sectors were highlighted for Turkish investors which promise great opportunities.”

The LCCI President said that it is high time that both Pakistan and Turkey should make concerted efforts to exploit the untapped potential of OIC member states. The realization of






July 19, 2012

the long standing ambition of establishing an OIC Common Market was one of the factors that motivated the LCCI to hold OIC Ambassadors conference.

Kashif Younus Meher said that Pakistan steel sector has a huge scope for Turkish steel technology as the installed capacity of steel sector in Pakistan is around 10 billion tons out of which 60 percent is in and around Lahore while 20 percent is in Karachi and as much is in Islamabad.

He said that collaboration between the two sides can create a win-win situation for both Pakistan and Turkey.






July 19, 2012

Fuel and Energy: Pakistan

Arrest warrants in RPP deals: NAB not sharing names with power, water ministry July 19, 2012

MUSHTAQ GHUMMAN

National Accountability Bureau (NAB), has, reportedly finalised warrants for arrest of officials involved in ''non transparent'' Rental Power Plant (RPP) deals however it is not ready to share the names with the relevant Ministry of Water and Power, well informed sources told Business Recorder. Recently, NAB arrested Rana Muhammad Amjad, General Manager, Wapda Private Power Organisation (WPPO) who, according to NAB, was involved in this scam but NAB did not clarify what role he played in RPP contracts. "NAB claims that it has finalised arrest warrants for those implicated in RPP scam but their names are not being shared with us," said an official of Water and Power Ministry on condition of anonymity. On March 30, 2012, Supreme Court of Pakistan ruled that RPP contracts were non-transparent and ordered that these be rescinded. An official who is familiar with the latest developments in NAB revealed that efforts are being made to exonerate Prime Minister Raja Pervez Ashraf from RPP scam and make other officials who acted on his instructions as scapegoats. Raja Pervez Ashraf at the time also Chairman Private Power Infrastructure Board (PPIB) approved these RPPs. According to the official, a former PPIB Managing Director, Fayyaz Elahi, a Canadian national, then Director (of the project), now Acting Managing Director and other tariff related officials played a key role in the clearance of some RPPs. The apex court had also directed NAB chairman Admiral Fasih Bokhari (retired) to proceed with corruption references against those who were at the helm of affairs when the contracts were signed between 2006 and 2008 to overcome a widening energy shortfall through RPPs as a stopgap arrangement. The Supreme Court verdict held that all RPP contracts - solicited and unsolicited signed off or operational, right from 220MW Bhikki Sheikhupura and 136MW Sharaqpur up to Piranghaib and Naudero-I and II - were entered into in contravention of PPRA rules. Besides suffering from other irregularities, the contracts also violated the principle of transparency and fair and open competition. The NAB has finalised a list of the accused in RPPs case but is refusing to release their names, said a source in the Ministry of Water and Power. Liaquat Jatoi and Raja Pervez Ashraf have been questioned. During their tenures down






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payment to different RPPs was raised from seven to 14 percent after the bidding process had been completed. The Supreme Court judgement says: "the functionaries of Pepco, Gencos, Pakistan Power Infrastructure Board (PPIB) and National Electric Power Regulatory Authority (Nepra), along with sponsors (successful bidders) who derived financial benefits from the RPP contracts, are prima facie involved in corruption and corrupt practices. Therefore, they are also liable for both civil and criminal action".

Copyright Business Recorder, 2012

Seminar on materialising renewable energy resources held July 19, 2012

Central Chairman of Institute of Electrical and Electronics Engineers of Pakistan (IEEEP), Tahir Basharat Cheema has said that unfortunately investment in power sector is not a profitable business in Pakistan. He was addressing the seminar on materialising the renewable energy resources in Pakistan organized by IEEEP in collaboration with Zorlu Enerji Pakistan here on Wednesday. Cheema said that main problem of our power sector is lack of sustainability. "It is not profitable for discos as well as not affordable for the consumers," he said. He also said first of all we have to make it affordable, next step should be profitability and then sustainability will be achieved. He said that there is no control or umbrella on the power sector adding that Nepra has rotten the power sector. Cheema said that it is the time that we should focus on local resources to produce electricity such as coal and hydro power as well as renewable sources such as solar and wind. He said that production of electricity from furnace oil and imported gas is very expensive. "We don't need briefcase companies for the investment in this sector instead of that genuine investors should be needed to invest in power sector," he added. Cheema stressed on the need of increasing the industry academia linkages. Speaking on the occasion, Chairman of the Lahore Centre of the IEEEP Engineer Muhammad Dawood proposed that in order to discourage electricity pilferage lead role in this regard must be assigned to the provinces. If the provinces fail to check electricity theft, deduction may be made from the funds transferred to provinces from the Federal government depending on the gravity of the electricity theft in the provinces. Dawood said that we need the investment of more than seventy billion dollars in power sector in ten years to over come the energy crisis. Copyright Business Recorder, 2012






July 19, 2012

Power tariff for April, May: KESC allowed Rs 1.14, Re 0.52 per unit hikes July 19, 2012

MUSHTAQ GHUMMAN

National Electric Power Regulatory Authority (Nepra) on Wednesday allowed an increase of Rs1.14 and Rs0.52 per unit in tariff of Karachi Electric Supply Company (KESC) for April and May this year. A hearing, headed by National Electric Power Regulatory Authority''s (Nepra) Acting Chairman Ghiasuddin Ahmad, focused on two petitions filed by KESC under monthly Fuel Price Adjustment (FPA) formula. During the hearing, KESC officials said that an additional fuel cost of Rs1.44 billion was incurred for the production of 1.3 billion units of electricity in April this year and Rs776 million in May 2012 for generating 1.5 billion units. This showed fuel cost variation of external generation resources in April was Rs214.78 million in April and Rs521.3 million May. Nepra approved the price hike under fuel adjustment charges. Consumers using 50 or less than 50 units of electricity per month would be exempted from the price hike. The details of charges collection will be announced separately. Pursuant to the subscribed mechanism for monthly adjustment of fuel charges variation, notified in the official gazette, KESC is bound to provide variation in fuel price and units generated during that period. Copyright Business Recorder, 2012

Pak-Iran bilateral co-operation in oil, gas sectors discussed July 19, 2012

A meeting of Pakistan - Iran Joint Committee on Oil, Gas and Energy was held on July 17 & 18, at Islamabad to discuss bilateral co-operation in oil and gas sectors. The Iranian team was headed by Dr Ahmad Khalidi, Deputy Minister for Internal Affairs to Minister for Petroleum, and Pakistani team was headed by Abid Saeed, Additional Secretary, Ministry of Petroleum and Natural Resources. The two sides discussed issues of mutual interest particularly the energy sector. The Iranian side expressed its intention to invest in the E & P sector including investment in the upstream and midstream. The Iranian side also invited Pakistani companies to invest in E & P sector in Iran. Furthermore, the two sides decided to form a Joint Working Group covering experts from Technical, Legal, Financial and Commercial sectors to work out the details with respect






July 19, 2012

to the implementation of the Iran-Pakistan Gas Pipeline project.-PR Copyright Business Recorder, 2012

KESC's AZM Conference concludes July 19, 2012

Karachi Electric Supply Company (KESC) has concluded an AZM Conference involving over 8,500 employees of various tiers who pledged firm belief and optimism in the mindset change of management and transformation of the utility into a customer-centric entity. In a series of 34 significantly involving sessions from June 5 to July 17 each participated by more than 200 employees, the KESC fraternity unanimously declared 2012 as 'Year of Turnaround' that marked thorough soul searching and identification of challenges and real value solutions. During the sessions, the top leadership team expressed confidence to develop deeper insights and urged the participants to identify specific steps required to ensure that KESC generated maximum value of this significant undertaking. The leadership team expressed satisfaction over the launch of value creation process and emphasised the need to fulfill all legitimate aspirations of the employees. In this first-ever change management initiative in the history of KESC, employees from the rank and file of the utility came face to face with top management and spoke candidly on how to acclimatise with the 360 degree transformation of the company into a successful and fast-moving public service utility. While promising to doing away with the baggage of past, the workforce completely subscribed to the AZM Roll Out of moving forward with full dedication, efficiency and competence against all odds. Realising that it was an uphill task to steer clear of the enormous challenges faced by KESC, the AZM conference saw a remarkable dynamism and enthusiasm of the employees in terms of discipline, excitement and determination to take the organisation to the higher platform of excellence.-PR Copyright Business Recorder, 2012

Government urged to expedite work on IP gas pipeline July 19, 2012

Pakistan Industrial and Traders Associations Front (PIAF) has urged the government to expedite work on Pak-Iran gas pipeline to save the industry from a total closure and for revival of economic activities in the country. The PIAF Chairman Sohail Lashari in a statement on Wednesday said that repeated warnings






July 19, 2012

of the Sui Northern Gas Pipeline Company Limited (SNGPL) Managing Director about an acute shortage of gas in future is enough to make the point that the industry would in deep troubles in coming times therefore it is the duty of the government to take remedial measures. He was of the view that the shortage of electricity and gas had already play havoc with the trade and industry while the numbers of the jobless are adding up with every passing day. He attributed the recent decline in exports and cut Foreign Direct Investment to the energy shortages and suggested to the government to avail alternate resources of energy generation. As per agreement, Pakistan is bound to buy gas from Iran by December 31, 2014 while it would have to pay penalty if it fails to do so therefore it would be wiser on the part of the government to expedite work on this mega project of national importance. He said that the business community was unable to understand that when the Iran has done its part of duty by spreading line up to Pakistan's border what has stopped the government to initiate work on the pipeline, he added. He said that if work on this project is initiated, it would not only give boost to the government image in the eyes of masses but would also ensure jobs to a large number of people as the pipeline would be passing through many remote areas where the unemployment graph is even higher when it is compared to the urban areas. He said that there are a number of hidden forces that are always active against the progress and prosperity and the government should foil their nefarious designs by starting work on Pak-Iran Gas Pipeline. Lashari also urged the gas authorities to take stringent measure to overcome the gas pilferage as it would be doing a lot of help in ensuring regular supply of gas to the industry. Copyright Business Recorder, 2012

'Government manages to overcome power outages' July 19, 2012

Federal Minister for Communications, Dr Arbab Alamgir Khan Khalil has said that the present democratic government has managed to overcome power outages to a great extent and, similarly, other issues and problems inherited from the previous governments will also be resolved. He said that they are trying not only to provide uninterrupted power supply, but also to keep the prices of items of daily use to the minimum; however, we need the support of our people in this regard. He expressed these views while talking to various social and political dignitaries, party workers, and notable elders from his constituency. Arbab Alamgir Khan Khalil said that despite scorching heat, he is on a countrywide tour of various areas to monitor progress over ongoing NHA projects to ensure their timely completion in accordance with international standards.

Copyright Business Recorder, 2012






July 19, 2012

Miscellaneous News

Gas import: Iran to lay Pakistan’s portion of pipeline By Zafar Bhutta

Published: July 19, 2012

The 1,150 kilometre long pipeline is projected to cost $1.2 to $1.5 billion. PHOTO: FILE

ISLAMABAD: Avoiding pressure from the United States, Pakistan and Iran have committed to press ahead with the gas pipeline project and constituted a joint working committee to finalise a deal for laying Pakistan’s portion of the pipeline by Tehran.

Iran has also offered to set up an oil refinery in Pakistan. Earlier, it had discussed a plan to lay an oil pipeline to Gwadar where a refinery would be set up to process crude oil.

Until one and a half years ago, two Pakistani refineries had been importing Iranian crude oil on three-month credit, but supply stopped afterwards as banks showed reluctance to open letters of credit following imposition of US sanctions on Tehran.

According to sources, these developments came during two days of talks in Islamabad, which concluded on Wednesday.

Sources told The Express Tribune that Iranian authorities reiterated their resolve to provide technical and financial help for constructing the gas pipeline.

“A joint working group has been formed to consider different options for Iran to lay the pipeline,” a source said, adding Tehran had already committed to provide $250 million and was willing to arrange more financing through Chinese commercial banks.

“The working group will also discuss the option of financing offered by Iran,” the source said. German-based firm ILF has completed detailed engineering design of the pipeline and according to an interim feasibility report, the project will cost $1.2 billion to $1.5 billion.

“If local companies participate in the project, the cost will come down and if foreign firms undertake the venture the cost will go up. There is also an option under which local and Iranian companies will join hands to complete the project,” the source said.

“Though Iran is an option to strike deal on government-to-government basis, we are also discussing the construction of the pipeline with China and Russia,” he said.

Meanwhile, the Pakistan-Iran joint committee on oil, gas and energy held a meeting on July 17 and 18 in Islamabad to discuss bilateral cooperation in oil and gas sectors.



http://tribune.com.pk/author/2141/zafar-bhutta/




July 19, 2012

The Iranian team was headed by Dr Ahmad Khalidi, Deputy Minister of Internal Affairs, Ministry of Petroleum while Pakistani team was led by Abid Saeed, Additional Secretary Ministry of Petroleum and Natural Resources.

The Iranian side expressed its intention to invest in hydrocarbon exploration and production including upstream and midstream sectors. It also invited Pakistani companies to invest in oil and gas exploration and production in Iran.

Published in The Express Tribune, July 19th

, 2012.

View from McLeod Road: Can MCB Bank succeed in India? By Farooq Tirmizi


MCB Bank is one of the largest private sector banks in Pakistan with over 1,130 branches and 4.5 million customers. PHOTO: FILE

KARACHI:

It is an interview that created quite a stir: Mian Muhammad Mansha, Pakistan’s richest man, was quoted by India’s Economic Times as saying that his MCB Bank would be venturing into India. Mansha sounded optimistic about the financial crossing of the Wagah, but will MCB Bank be able to make money? A closer examination of the numbers by The Express Tribune reveals that the Indian banking market is not as attractive as it seems from the outside.

At an initial glance, the Indian banking market is phenomenally attractive. Deposits at all commercial banks were an astonishing Indian Rs52 trillion ($938 billion) in 2011, according to the Reserve Bank of India (RBI), and growing at 18.4%, faster than the approximately 15% growth rate in Pakistani bank deposits. Despite the recent slowdown, the Indian middle class remains one of the largest in the world and likely to continue growing at a much faster pace than Pakistan.

But while those numbers are important for a bank to look at, the real numbers to pay attention to are a little different, and do not often grab the headlines. Statistics such as net interest margin (the difference between what banks pay to their depositors and what they collect from their borrowers), return on assets and return on equity are far more relevant to the decision to invest.

On those fronts, the Indian market may not be as lucrative as it appears at first glance, at least not for new entrants into the market, especially foreign banks. For starters, the average net interest margin earned by banks in India was 2.92% in 2011, much lower than the Pakistani



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http://tribune.com.pk/story/409228/mansha-to-march-into-indian-banking-sector/

http://tribune.com.pk/story/409228/mansha-to-march-into-indian-banking-sector/




July 19, 2012

average of over 7.5% during that same period, and lower even than the 7.8% earned by MCB Bank itself during the year, according to the bank’s financial statements.

It is true that foreign banks in India earn a higher net interest margin, which was about 3.86% in 2011, according to the RBI’s statistics. Yet they also face a higher intermediation cost, which is the ratio of operating expenses to total earning assets of the bank. For foreign banks in India, that ratio came to 2.71% in 2011, compared to the Indian average of just 1.86%, although the average for foreign banks in India is actually lower than the 2.98% average for MCB Bank during that same year.

Nonetheless, Mian Muhammad Mansha, chairman of the Nishat Group – a diversified conglomerate that has interests in cement, textiles, and energy as well being the majority shareholder of MCB Bank – may want to look at just one more statistic before he makes the decision to take the plunge in the Indian market.

As the fourth largest bank in the country by assets, MCB has a commanding presence in Pakistan and an ability to leverage its balance sheet to deliver strong shareholder returns. While average return on equity for Pakistani banks was about 15%, MCB Bank earned a 26.2% return on equity. By contrast, foreign banks in India earn an average return on equity of about 10.3%, lower than the Indian average of about 15% in 2011.

Foreign banks – even global financial powerhouses – have found India a difficult market to crack. Barclays recently sold off its retail branch network in the country to Standard Chartered Bank and even some established global brand names in the banking business have been struggling in India. MCB Bank will have to be careful to ensure that its luck is different from these institutions.

It is entirely possible, however, that the application to open branches in India (MCB wants to open three) is just a bid to increase its ability to finance what it expects will be rapidly growing trade between India and Pakistan. MCB Bank has a sizeable trade finance business, but mid-sized banks such as Bank AL Habib, Habib Metro Bank, and others have been rapidly growing their market share. A foothold in India may help MCB protect its share in the pie.


, 2012.

Global market: Pakistani basmati may slip down the pecking order By Imran Rana


The province produced 2.6 million tons of basmati rice in 2009-10, which dropped to 1.88 million tons in fiscal 2012. PHOTO: FILE



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July 19, 2012

FAISALABAD: The entry of India, the world’s largest grower of rice, and lack of research has threatened Pakistan’s basmati rice export.

Rice exports crossed $2 billion but remained below the target of $3 billion in fiscal 2012, said Taufiq Ahmad Khan former Vice Chairman Rice Exporters Association of Pakistan while talking to The Express Tribune.

India has shipped four million tons to overseas markets since lifting its export ban in September 2011 and is looking to ship another two million tons.

Pakistani rice is losing its grip in the global market due to decreasing production, said Khan adding that lack of research, high cost of inputs and a non-friendly environment created by the government is hurting the industry.

In 2008-09, Punjab produced 2.6 million tons of basmati. In 2009-10, it came down to 2.47 million tons.

The following year, it was 2.36 million tons which dropped to 1.88 million tons last year. Its share in export dropped from 1.2 million tons to just over 900,000 tons during the same period.

He said exporters are being deprived of their profit. With the loss of commercial attraction, farmers are increasingly abandoning the crop, said Khan.

In 2008-09, the variety was sowed on 3.82 million acres in Punjab. In 2009-10, area dropped to 3.49 million acres, where the variety can be sowed. Next year, it came down to 3.29 million acres, and last year it was reduced to 2.77 million acres.

The decreasing international prices have also pushed away farmers from basmati rice. The local price of the product is comparatively higher than the international market and now with India’s inclusion in the market has made it really tough to compete, Khan said.

He said that ban on rice exports to Iran due to international sanctions also contributed the country missing its target. Pakistan fetched $240 million alone from its largest export destination UAE in fiscal 2011.

India is providing subsidies to farmers and controls the prices while Pakistani growers have no support and have deal with the high input costs, he added. India farmers get subsidies in fertilisers, pesticides, electricity, fuel and seeds.

Basmati variety of rice can only be produced in certain geographical areas of Pakistan and India. Pakistani basmati rice is known as white gold in the international market. The government has failed to provide seeds and research to up the game, said Haider Ali, an expert while talking to The Express Tribune.

After adopting latest technology and variety of seeds, China is producing seven to eight tons per acre yield while Pakistan is producing a mere three tons per acre.






July 19, 2012

“Every year the cultivation land is shrinking. If this continues, Pakistan will be unable to export rice,” he added.


, 2012.

‘Accountants should manage processes instead of budgets’ By Our Correspondent


FAILURE RATE: 90% of companies fail to sustain cost reduction programmes due to inefficient processes and change management. PHOTO: FILE

KARACHI: Cost and management accountants should manage processes, instead of managing budgets, to optimise organisational performance, Getz Pharma Supply Chain Director Hanif Ajari said on Wednesday.

Taking part in the first video conference organised jointly by the Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of India (ICAI) on “Management Accounting: Trends in the Subcontinent” at the Karachi Branch Council of the ICMAP, Ajari said that members of the ICMAP and the ICAI should be recognised across the region and allowed to practise in both Pakistan and India.

“If artists can move across the border freely, why can’t management accountants?” he said.

Citing a McKinsey and Company study, Ajari said that 90% of companies failed to sustain cost reduction programmes because of inefficient processes and change management.

Traditionally, management accountants may have been cost advisers, but their role has undergone a transformation in recent years, as they are now involved in process improvements, redesigning performance matrix, process automation and outsourcing, Ajari said.

Global supply chains with longer lead times, increase in the costs of logistics, and unprecedented volatility in commodity prices are some of the major challenges that a management accountant faces today, Ajari added.

Addressing the ceremony, American Business Council of Pakistan President Saad Amanullah Khan said that Pakistan was ranked 22nd among the top 30 economies of the world based on purchasing power parity, yet it was the only economy where agriculture accounted for more than 20% of its gross domestic product (GDP).

“This split highlights the fact that our industry and services sectors are significantly underdeveloped. In an overwhelming majority of these economies, the industry and services



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July 19, 2012

sectors account for over 90% of the GDP. To make sure that our industry and services sectors account for 90% of GDP, it must grow by 2.5 times its current rate,” Khan said.

He said that the market capitalisation in Pakistan as a percentage of GDP was only 22%. This is in contrast with Malaysia and Singapore where market capitalisation in terms of a percentage of GDP was 173% and 166%, respectively, he added.

“Instead of an increase in the number of listed companies, what we’re witnessing in Pakistan is a wave of de-corporatisation,” he said, while referring to the companies listed on the Karachi Stock Exchange, which were 637 in 2011, down from 762 in 2000.


, 2012.

Corporate results: Hubco profits swell to record high By Our Correspondent


The company’s second plant tariff settlement does the trick. PHOTO: FILE

KARACHI:

Power shortage is a blessing only for a few and one of those groups is power producers. Hub Power Company (Hubco), the country’s largest independent power producer, saw its profits electrify 51% to an all-time high of Rs8.19 billion in fiscal 2012, a year marred by power outages.

The robust earning growth primarily comes from a one-time impact of Narowal project commissioning, said Topline Securities analyst Nauman Khan. The company’s Narowal power plant started commercial operations in April 2011 but its tariff – the price it will receive for generating electricity – was decided just a month ago. Narowal is one of the two new power projects Hubco has undertaken as part of its investment strategy. The plant is a 214MW-fuel fired project setup in district Narowal, Punjab.

The profit is in line with market estimate as analyst expected the bottom-line at Rs8.15 billion.

The other factor that played a role in earnings growth was the rupee falling 9% against the dollar to a record low during the year, added Khan. Hubco’s tariff payments are made in dollars, hence the depreciating rupee is an added advantage.

The company made Rs175 billion by selling electricity during the financial year 2012, a massive improvement of 42% from the preceding year’s Rs123 billion.







July 19, 2012

The only concern was finance costs that doubled to Rs7.1 billion due to interest on loan acquired to finance equity portion of Narowal project, interest charged by Pakistan State Oil on late fuel payments and increased short-term borrowings due to the circular debt.

The power producer announced a final dividend of Rs3.0 per share, taking the annual payout to R6 per share. Higher payout despite augmented levels of circular debt reaffirms company’s ability to maintain high distribution, said Khan.

For the final three months of the financial year, the company posted a profit of Rs3.23, representing an exorbitant growth of 183% on a yearly basis.

The financial year also saw the change in ownership of the company.

The two major foreign shareholders Xenel Industries of Saudi Arabia and National Power International Holdings BV decided to sell its entire stake with Dawood Group the major buyer.

The board room of the country’s largest independent power producer is likely to see a major change of directors in the election expected in September.


, 2012.

UBL boosts profit 39%, trims bad loans By Our Correspondent


United Bank Limited has reported net profit increase of 39% to Rs9.3 billion during January to June 2012.

KARACHI:

United Bank Limited has reported net profit increase of 39% to Rs9.3 billion during January to June 2012.

The board of directors in a meeting held in Paris on Wednesday also declared a dividend of Rs2 per share, taking total half-year payout to Rs3 per share, according to unconsolidated results sent to the Karachi Stock Exchange on Wednesday.

The exorbitant improvement in earnings is largely attributable to 78% YoY decline in provisioning charge and increase in non-interest income, said BMA Capital analyst Nurali Barkatali.

Amid shrinking banking sector spreads, net interest income of the bank witnessed a decline of 1%.







July 19, 2012

On the other hand, non-interest income jumped 26% to Rs25.6 billion on the back of better dividend income from treasury and trading, says analyst.

Moreover, controlled lending along with improved paying capacity of borrowers after decline in interest rates led overall provisioning to decline from Rs4.9 billion to Rs1.3 billion.

Alone in the second quarter, the company reported unconsolidated net profit of Rs4.4 billion, a decline of 8% from the preceding quarter’s Rs4.87 billion. UBL was the top performing private bank among the big four in the first quarter of 2012.

Effective tax rate stood at 33% during January to June 2012 against rate of 36% recorded in the same period last year.

Despite earnings being in line with market estimate, the bank’s stock price declined 1.1% to close at Rs87.90 during trade at the Karachi Stock Exchange.


, 2012.






July 19, 2012

OPEN MARKET FOREX RATES Updated at: 19/7/2012 6:38 AM (PST)

Currency Buying Selling Australian Dollar 96.1 97.1 Bahrain Dinar 236.1 238.1 Canadian Dollar 92.6 93.8 China Yuan 13.1 13.6 Danish Krone 16.9 17.6 Euro 115.6 117 Hong Kong Dollar 11.1 11.8 Indian Rupee 1.7 1.8 Japanese Yen 1.176 1.190 Kuwaiti Dinar 319 321 Malaysian Ringgit 28.1 28.6 NewZealand $ 73.5 74.5 Norwegians Krone 16.5 17.5 Omani Riyal 231 233 Qatari Riyal 25.6 25.7 Saudi Riyal 25.65 26.05 Singapore Dollar 74.4 75.4 Swedish Korona 13.1 13.6 Swiss Franc 97.1 98.6 Thai Bhat 2.6 2.7 U.A.E Dirham 25.6 26 UK Pound Sterling 147.5 148.6 US Dollar 94.7 95.15



http://www.forex.com.pk/inter_bank_rates.asp

http://www.forex.com.pk/inter_bank_rates.asp




July 19, 2012

INTER BANK RATES Updated at: 19/7/2012 6:38 AM (PST)

Currency Bank Buying TT Clean

Bank Selling TT & OD

Australian Dollar 97 97.21

Canadian Dollar 93.03 93.23

Danish Krone 15.55 15.58

Euro 115.72 115.96

Hong Kong Dollar 12.14 12.17

Japanese Yen 1.1919 1.1944

Saudi Riyal 25.12 25.17

Singapore Dollar 74.77 74.93

Swedish Korona 13.54 13.57

Swiss Franc 96.36 96.57

U.A.E Dirham 25.65 25.7

UK Pound Sterling 147.43 147.74

US Dollar 94.2 94.4






July 19, 2012

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Thu, Jul 19 2012, 01:45 GMT

Metal Symbol PKR for 10 Gm

PKR for 1 Tola

PKR for 1 Ounce

Gold 24K XAU 47,856 55,760 148,851

Palladium XPD 17,561 20,462 54,622

Platinum XPT 42,782 49,848 133,070

Silver XAG 828 965 2,575

Gold Rates in other Major Currencies

Currency Symbol 10 Gm 1 Tola 1 Ounce

Australian Dollar

AUD 489 570 1,521

Canadian Dollar CAD 512 597 1,593

Euro EUR 413 481 1,284

Japanese Yen JPY 39,897 46,487 124,097

U.A.E Dirham AED 1,862 2,170 5,792

UK Pound Sterling

GBP 324 377 1,008

US Dollar USD 507 591 1,577



http://www.forex.pk/bullion-rates-gold-24k-xau-pkr.php

http://www.forex.pk/bullion-rates-palladium-xpd-pkr.php

http://www.forex.pk/bullion-rates-platinum-xpt-pkr.php

http://www.forex.pk/bullion-rates-silver-xag-pkr.php

http://www.forex.pk/bullion.php?base=AUD&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=CAD&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=EUR&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=JPY&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=AED&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=GBP&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=USD&curr=XAU&type=ounce




July 19, 2012

Gold Rates & Silver Rate from major cities of Pakistan

A year by year reference of the daily Silver Price in Pakistan and history of Gold Rates in Pakistan

20120718 Jul 18, 2012

Following table shows gold rates per Tola in Pakistan in Pakistani Rupess (PKR) in 24 carat per 10 Grams, 22 carat per 10 grams and sliver rates per 10 grams in pakistan. Select date from january 2012 for Gold rates history in Pakistani cities

City 24k per 10 Grams 24 carat per Tola 22k Per 10 Grams Silver 10 Grams Karachi Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Lahore Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Multan Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Faisalabad Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Rawalpindi Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Hyderabad Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Gujranwala Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Peshawar Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Quetta Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Islamabad Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42 Sargodha Rs. 48,514.00 Rs. 56,600.00 Rs. 44,471.00 Rs. 801.42

Source: Karachi Saraf.



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