profit.com.pk

Pakistan’s textileexports to US facedecline Page 02

Saturday, 28 January, 2012

ISLAMABAD

STAFF REPORT

W HILE assuring that stricttransparency will be main-tained in the upcoming spec-trum auction for thetechnology neutral 3G li-

censes, Pakistan Telecommunication author-ity (PTa) has clarified that winning bidderswill have to pay entire license fee before thelaunch of services. a statement issued by PTasaid that allegations that government wouldnot get the amount of license fee upfront are

factually incorrect. Spectrum auction for 2Gcellular services in 2004 had an arrangementof 50 per cent upfront and the remaining 50per cent in instalments over 10 years. In thecurrent auction process for 3G/4G/LTE serv-ices in 1900/2100 MHz spectrum the entireamount will be have to be paid upfront. Thewinning bidder will need to pay 100 per centupfront license amount to the government ex-chequer before the launch of service.

It said transparency for current auctionremains the foremost priority. PTa will bestriving hard to attract reputed investors inthe situation where the adverse security envi-

ronment and slow economic growth is alreadyan impediment to lure reputed investors. alldetails about auction process are available inthe Information Memorandum (IM) postedon PTa website, having information on thecurrent regulatory practices and well definedand transparent procedures of internationalstandards being followed by the regulator fortelecom license auctions. about reselling ofdefunct Instaphone cellular mobile license in800 MHz spectrum, PTa clarified that theoriginal license issued was for 15 years. Up-coming auction will be for the remaining eightyear period of the defunct license and accord-

ingly the base price is set at $155 million,which is based on the winning bid price of$291 million for GSM spectrum in 2004.

Clarifying concerns on the base price, itsaid many factors were considered includingexpected service revenues, subscriber growth,economic growth, per capita income and pop-ulation of the country. Government has alsodetermined the base price using GdP growth,previous 2G auction price, local political situ-ation and experience of regional countries.Base price serves as the minimum price tostart the bidding process. Final bidding pricewill be determined through a transparent

multiple round open outcry method where thehighest bid will be the final price. determiningthe base price is the best practice around theworld for auction of spectrum in differentcountries like UK, India, Egypt and Taiwanwho all set base price before auction.

Base price of $210 million for 3G/4Gspectrum has been misconceived as final priceof the license and perceived lower than 2G li-censes prices of 2004. at the time of 2G auc-tion the base price was merely $61 million.Technology neutrality of the licenses has alsobeen criticised. It needs to be clarified thatgovernment is auctioning the spectrum of1900 MHz/2100 MHz which can be utilisedfor 3G/4G or any expected future advancedtechnology. It is clarified that already issuedlicenses in Pakistan are technology neutral.

3G license winners to pay full fee upfront

India to be grantedMFN with limitednegative trade list

KARACHI

GHULAM ABBAS

IndIa would be granted MostFavored nation (MFn) statuswith a very limited negative listof trade. The list is being pre-pared in order to safeguard

certain industries and sectors. Con-sumers in Pakistan and India would bethe biggest beneficiaries of the currentmove of trade liberalisation, Tariq Puri,Chief Executive of Trade developmentauthority of Pakistan (TdaP) saidwhile addressing a media briefing afteran interactive session with the visitingIndian regulators to explain traderegime here on Friday.

The event was attended by repre-sentatives of Pakistani business com-munity from all relevant tradeassociations and Federation of Cham-bers of Commerce and Industry(FPCCI) and Karachi Chamber of Com-merce and Industry (KCCI) includingMian abrar, President KCCI; IkhtiarBaig, Chairman Pak denim; Bashir JanMuhammad of Gul ahmed Textiles;Khalil Sattar of K&n, Waheed ahmedof PFVa among others.

Indian regulators; Mr RajivRaizada, additional director, ExportInspection Council and Mr RajeevKumar Sharma, deputy director Tech-nical of Food Safety and Standards au-thority of India (FSSaI), gave anoverview of the Indian import regimeand procedures and explained at lengthfood safety, standards and inspectionrequirements. The meeting in Karachiwas the second session of the interac-tion between Pakistani businessmenand Indian regulators in order to un-derstand and remove non-Tariff Barri-ers at the Indian side. The first meetingwas held in Lahore between membersof Lahore Chambers of Commerce andIndustry and Indian delegation.

To resolve nTBs like custom relatedissues, Puri informed that a “Compre-hensive custom cooperation agree-ment” is also being signed between the

two countries during the forthcomingvisit of Indian Commerce Minister toPakistan which is scheduled for Febru-ary 13, 2012. Indian regulators, he said,have also briefed custom rules and de-tails about VaT, HS codes and othersfor smooth and speedy clearance of im-ported goods at ports. a liaison com-mittee is also being formed to resolvecustom related issues on both sides.

Indian side, he claimed, has alsoshown its commitment to ensure trans-parent system of custom duty and im-prove the flow of goods. The meetinghas also discussed the importance ofmultiple visa regimes and banking fa-cility for exporters and importers inboth countries. He said central banksof India and Pakistan which were work-ing on the issue would open theirbranches in both countries.

Puri informed that besides otherinitiatives, the average custom dutywhich is currently around eight percent would be reduced to five per centto encourage bilateral trade. Indianside has also recalled the existing zerorated duty structure for businessmenunder the umbrella of SaFTa. He alsoexplained the recent progress beingmade towards trade normalisation,like; a comprehensive custom agree-ment is being finalised and which willalso have the mechanism for expedi-tious clearance of cargo; sharing oftrade laws; customs valuation; settingup of joint boarder liaison committee.Moreover, an agreement is being fi-nalised to harmonise standards.

TdaP, he said, would also hire con-sultants to explore trade opportunitiesin the neighbouring country and theirfinds would be discussed with thestakeholders in a series of seminars tobe held thoughout Pakistan. They willstudy the potential of various Pakistaniproducts for Indian market and theywill also examine tariff structure vis-à-vis of other competitors. In reply to aquery he said that all agricultural prod-ucts, as suggested by representatives,would be opened for trade.

g Indian regulators committed to resolve NTBs issueg Consumers to benefit most by trade liberalisationg CCC pact to be signed with India to resolve custom issuesg Custom duty to be reduced from 8 per cent to 5 per cent

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news02Saturday, 28 January, 2012

No major investment in2011: American Business CouncilKARACHI: In view of the security and energy issues inthe country no major new investment was made in 2011other then the capital needed for existing facilities. Thiswas stated by american Business Council of Pakistan(aBC) in a statement after its first CEO Roundtablemeeting of the year held on January 26, 2012. Themeeting was attended by members of aBC, representinga cross section of sectors including healthcare, financialservices, information technology, FMCG, food andbeverage, pharmaceuticals, oil and gas, and others.However, the statement says, the year 2012 bodes betterfor new investment plans for over 60 per cent of thecompanies present today. Only one company has plansfor green-filed investment all the same.Referring to the key challenges highlighted by thecouncil last year, it said the following issues were raised:1. Security situation over all was highlighted as the biggest area of concern,

plus personal security and travel issues. 2. Taxes and inconsistency of government policies especially regarding

pharma and oil and gas. 3. Increases in cost of business, high interest rates, cost of power and utilities

(gas), rise in cost of transport and logistics.4. Billions of dollars are stuck in oil company subsidies.5. Sudden devolution of the health ministry has negatively impacted pharma

companies. STAFF REPORT

Spanish, Italian companiesinterested in Pakistani meatLAHORE: Spanish and Italian companies have showedtheir interest to procure meat and its by-products fromPunjab agriculture and Meat Company’s (PaMCO) newlyset up meat processing plant at Shahpur Kanjran. PaMCOChief Executive Officer (CEO) dr Hamid Jalil, whoheaded a Pakistani delegation to International GreenWeek, Berlin, indicated that Triposona, Spain andBlancasing, Italy had showed their willingness to procuremeat and its by-products from Pakistan. He pointed outthat the newly set up meat processing plant was fullycompliant with international standards, like Global GaP,IFS, BRC, which were mandatory to trade with Europeancountries. He said Pakistani delegation also visitedvarious citrus farms in Valencia, Spain (a famous city ofcitrus grower) and examined seedless citrus that wasconsidered the most suitable for Pakistani soil. He saidPaMCO has made arrangements to import seedless citrusplants and hybrid seeds from Europe for citrus zones inLayyah and Bakkah. It would also acquire technicalexpertise from EU countries, he added. STAFF REPORT

LCCI for strengthening Pak-Sweden tiesLAHORE: Convener of LCCI Standing Committee forPak-European Union Business Promotion and Chairmanauto Parts Manufacturers and Exporters associationTahir Javed Malik has urged the government to make allout efforts to further strengthen Pak-Sweden relations asSwedish influence in European Union could helpPakistan to pave way to enter EU market. Whilewelcoming Prime Minister Syed Yousaf Raza Gillani’svisit to the Sweden and address to the Swedishbusinessmen, Tahir Javed Malik said that the visit was agood omen for economy and would give a boost Swedishinvestment to the Pakistan in the time to come. TahirJaved Malik said major bottleneck in promotion of tradeand economic activities between the two countries is thelack of information about business opportunities.Government needs to undertake activities like exchangeof business delegations, organising country exhibitions,participation in fairs and exhibitions, seminars andworkshops, etc to ensure a continuous liaison. He saidPakistan has abundant natural resources and skilledcheap manpower but lacks technology. Swedishtechnology could help Pakistan to overcome energy crisis.He said Swedish economy is one of the most developedeconomies of the world. It has highly advanced industriessuch as machinery, chemicals, watches, textiles andprecision instruments. STAFF REPORT

PPMA demands probe in PIC deathsISLAMABAD: association of pharmaceutical companies,Pakistan Pharmaceutical Manufacturers association(PPMa) on Friday demanded setting up of an inquirycommittee to probe more than hundred tragic deathsresulting from the reaction of some medicines in the PunjabInstitute of Cardiology (PIC). In a statement issued byPPMa, the association offered full support to investigate thematter, so that such incidents could be avoided in the futureby identifying those responsible. The association also askedfederal and provincial governments to set up the drugRegulatory authority at the earliest to avoid occurrence ofsuch incidents in the future. Chairman PPMa Muhammadasad demanded that inquiry committee should includedoctors, pharmacy and pharmaceutical experts. Committeeshould consider all aspects including patient’s history, pastprescriptions, lab reports and other diseases of the deceasedpatients. He requested avoiding politicising the issue asseveral patients, using the medicines were in extreme stressdue to media reports. He said according to information, adrug testing laboratory in Lahore has cleared all medicineswhich were being used in PIC. STAFF REPORT

US FINANCIAL CRISIS

Pakistan’s textile exports face declineKARACHI

STAFF REPORT

P aKISTan’S textile and ap-parel exports to the UnitedStates are expected to facea decline of 18 per cent in2011, owing mainly to the

financial crisis in the US market andincrease in price of raw materials.according to a study conducted byPakistan Readymade GarmentsManufacturers and Exporters asso-ciation (PRGMEa) recently, USa,one the largest market for textileproducts from Pakistan is currentlytraversing turbulent times due to thefinancial crisis, but retail figures in-dicate steady sales for 2011.

Textile and apparel exports toUS are expected to increase by threeper cent in terms of value but thequantities are expected to go downby 18 per cent in 2011; signifyinggrowth primarily due to price infla-tion in raw materials cost.

apparel exports to US are 49per cent of its total textile exports,as compared to India’s 58 per cent,Bangladesh 97 per cent, China 73per cent and Vietnam 93 per cent.While the products are well diversi-fied, Pakistan’s exports to US seemto be overly reliant on cotton as theprincipal raw material. according toa study almost 94 per cent of textileexports are cotton based, in con-trast to India’s 80 per cent,

Bangladesh 79 per cent, China’s 48per cent and Vietnam 57 per cent.Products made from non-cottonbased raw materials such as woolcomprise only two per cent of Pak-istan’s exports to US, man madefiber based four per cent and silkand vegetable fiber based productscomprise only 0.1 per cent.

during 2010, Pakistan’s apparelexports to US increased by 14 percent in value and nine per cent interms of quantities. While non-ap-parel exports increased by nine percent in value and five per cent inquantity in 2010 over the previousyear. In comparison, India’s apparelexports to US increased by nine percent in value and one per cent inquantity. India’s non apparel ex-ports made substantial gains in-creasing by 29 per cent in value and25 per cent in quantity. Bangladeshiapparel exports remained strong,growing by 15 per cent in value and16 per cent in terms of quantity.Bangladesh also managed to gain asizeable share in non-apparels.While China and Vietnam postedsolid growth in both categories.

For the year 2011, it is expectedthat Pakistan’s apparel exports to theUS will increase by six per cent invalue while non-apparel exports areexpected to increase by one per cent.In terms of quantity, apparel exportswill decline by 15 per cent, while non-apparel exports quantities are ex-

pected to decline by 19 per cent.as evident from the above

analysis, Pakistan’s textile and gar-ment exports to US are clearly notgrowing at the desired pace, at leastin the major categories. Our re-gional competitors are steadily in-creasing their share in the USimport market. although, growth inman-made fiber products is com-mendable; but since the quantum isvery small, it will have no visible ef-fect on overall exports.

While, Vietnam and Bangladeshare gaining major shares in apparel

sector, India is steadily gaining inhome textile sector. In order tostem this negative tide, Pakistan’stextile and garment exporters needto further diversify their exports tomore value-added products, prefer-ably in non-cotton products.

Pakistan also needs to step-up itstrade diplomacy in order to do awaywith unfair tariff regime. a FreeTrade agreement (FTa) with USawould be highly beneficial. Cur-rently, USa raises the same tariff rev-enue from Pakistan’s textile exportsas from France’s $37 billion exports.

KARAcHi: An employee adjusting spools of thread at a textile factory. online

OGDCL rejectscorruption allegations

ISLAMABAD

PRESS RELEASE

A PROPOS to the newsitem titled “another Rs72 billion oil scam in the

making” published in a sectionof Press on 26th January,2012. at the outset it may beclarified that the quantum ofcontract for consultancy serv-ices for the three fields is Rs255 million and not of Rs 72billion. It may be mentionedthat the story is totally base-less, concocted and is in noway near to the truth. OGdCtherefore rejects the allega-tions leveled in the said newsitems and confirms that theabove news is based on imagi-nary figures/assumptions andlack of information. OGdCLhas reasons to believe that thestory is motivated and onlyserves the vested interests ofthose who intend to create im-pediments in the developmentof important projects under-taken by OGdC. This is beingdone only for personal gains.The fact is that OGdC has beentrying to develop KunnarPasakhi deep and Tando allahYar (KPd-daY) fields sincethe year 2005 but unfortu-nately there has been noprogress and the tenderingprocess had to be repeatedlyannulled. KPd-TaY, whenfully developed will produce284 mmscfd gas and 4800bbls of oil besides 387 MetricTons of LPG. Had these proj-ects been timely developed,the gravity of acute energycrises prevalent in the countrywould have been largely miti-

gated. after having been unsuc-

cessful at different occasions toaward the development con-tracts on turn-key basis, OGdCdecided to set-up the projectsby itself. OGdC therefore initi-ated necessary measures forself execution with the objec-tive of completing the projectswithout further delay and in acost effective manner. accord-ingly the Company, throughpress tendering process startedthe process for prequalificationof engineering & design con-sultants. Fifteen companiesapplied but only viz: EnarPetrotech (Pvt) Ltd., (EnaR)ILF Pakistan (Pvt) Ltd., (ILF),Zishan Engineering (Pvt) Ltd.,(Zishan), Combined Engineer-ing & Integrated Solutions(Pvt) Ltd., and Gas Liquids En-gineering were prequalifiedstrictly on the basis of eligibil-ity requirements as per laiddown pre-qualification criteria.The process was completelytransparent and none of thepre-qualified consultants in-cluding EnaR objected to it.Later, the bids on two envelopsbasis for the award of contractsfor design & Engineering Con-sultancy for KPd-TaY, nashpa& Mela were then invited fromthe pre-qualified bidders only.In response the tender forKPd-TaY only one bidder i.e.M/s EnaR submitted their bidwhich was found non compli-ant to the Terms of Reference(TOR) during the preliminaryexamination. as only one bidwas received and that too tech-nically non-responsive, hencethe requirement was re-ten-

dered. In response to this ten-der two companies viz EnaRand Zishan submitted bids forall the three projects i.e. Mela,nashpa & KPd-TaY develop-ment Projects. Zishan submit-ted the bids of Rs42.5 million,Rs45 million and Rs168 mil-lion for Mela, nashpa andKPd-TaY respectively asagainst Rs75.73 million, Rs93million and Rs278 million re-spectively filed by EnaR.Being technically responsiveand financially lowest evalu-ated bidder contracts weretherefore awarded to Zishan.

The above facts establishthat cumulatively the bids ofZishan were about 57% of theamount quoted by the loosingbidder, EnaR. This differencein no way could have been ig-nored by the Management. Byawarding the contract to thelowest bidder the company en-sured savings of Rs192 million.

It may also be clarified thatmaking presentation before thegrievance committee on frivo-lous grounds and mere accusa-tions do not bar OGdCL forproceeding ahead for the imple-mentation of vital projects ofnational importance. Rule48(4) of the PPRa Rules 2004clearly state that mere filing ofa complaint cannot be made thebasis for halting the procure-ment process. The allegation re-garding the hiring of services ofsome ex-management officialsof EnaR by M/s Zishan is alsomisleading as these profession-als are independent consultantsand such there is no bar onthem to extend their services toM/s Zishan.

PIA Lahoresales show17pc increaseLAHORE: PakistanInternational airlines (PIa)Lahore region sales havewitnessed a growth of 17 percent in comparison to previousyear’s sales figures. This wasdisclosed in the marketingconference held, here on Friday,to appreciate the performanceof top twenty sales agents. Inthe conference, PIa salesstrategy for the next year wasalso presented on which salesagents assured their full supportto take the national flag carrierto greater heights and achievebenefits for stakeholders. It washighlighted in the conferencethat PIa has reduced refundcharges on international routesfrom Rs13,000 to Rs8,000. PIahas also simultaneously revisedand decreased COB (Change ofBooking) charges on itsinternational flights fromRs8,000 to Rs4,000. no showcharges for passengers travelingto International destinationshave been reduced fromRs13,000 to Rs6,000. Similarlyall sales for USa, Canada, UKand Europe have been givenincentives for furtherimprovement in sales andgrowth in revenue. Travelagents applauded PIa’s effortsand cooperation and thedecrease in refund, no show andCOB charges. The meeting waschaired by advisor/consultantHaider Jalal and attended byMaj (R) Khurram MushtaqGeneral Manager PassengerSales Tahir niaz, GM RevenueManagement naveed, dGMPakistan dM Lahoreasadullah Ghauri, ManagerPassenger Sales Corporate MShafiq and other marketingofficials. STAFF REPORT

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news

Saturday, 28 January, 2012

03

CORPORATE CORNER

Airblue launches newdestination – Istanbul

LAHORE: Pakistan’s fastest growing privateairline, airblue, is proud to announce an additionto its global airline network with the launch ofnew flights from Islamabad to Istanbul, Turkey.airblue will operate 3 new flights a week –Tuesday, Thursday, and Sunday – from Islamabadto Istanbul, and Istanbul to Manchester throughSabiha Gokcen airport in Istanbul. Mr. Raheelahmed, airblue GM Commercial, says, “With thelaunch of flights to Istanbul, airblue has achievedyet another milestone in its journey as a pioneerin air travel. This new service is a step towardsincreased links between Pakistan, Turkey, andEurope. We are extremely grateful for theexceptional support and co-operation receivedfrom the Turkish Civil aviation and ISG SabihaGokcen authorities”. airblue, a private airline withhead offices in Islamabad, Pakistan, started itsoperations in 2004 and is Pakistan's secondlargest and fastest growing airline. airblue,recognized for its quality and innovative services,operates an all airbus a320 family aircraft fleetwith an average age of less than 3 years andprovides scheduled air service to 9 domestic andInternational destinations; Istanbul will beairblue’s 10th destination. PRESS RELEASE

Seychelles govt and Etihad Airwaysteam up in new strategic partnershipLAHORE: Etihad airways, the national airline ofthe United arab Emirates, and the Government ofSeychelles have signed a Memorandum ofUnderstanding wherein Etihad will invest toacquire a 40 per cent stake in air Seychelles Ltdas part of a strategic partnership alliance initiativebetween air Seychelles and Etihad airways. Thedeal was announced today by Joel Morgan,

Seychelles Minister of Home affairs,Environment, Transport and Energy and JamesHogan, President and Chief Executive Officer ofEtihad airways. Etihad airways’ investment ofUSd 20 million will be matched by an equalcapital injection from the Government ofSeychelles. In addition, Etihad airways will alsoprovide a shareholder’s loan of USd 25 million tomeet working capital requirements and supportnetwork development. PRESS RELEASE

Kashf Foundation releases progressreport on “Kashf Flood Relief Fund”LAHORE: Kashf flood relief strategy was basedon three phases; food distribution amongst floodaffectees, construction of destroyed homes andaccess to sustainable income sources. Financialeducation, along with microfinance for smallbusinesses will also be provided to enhanceincome generation for flood victims in order toensure sustainable livelihoods. Kashf Foundation,a microfinance institution that provides financialservices to entrepreneurs from low incomehouseholds released its progress report on the“Kashf Flood Relief Fund”. a ceremony wasorganised by Kashf Foundation to distributehouse keys among flood affected women. ChiefOperating Officer Kashf Foundation Mr. Kamranazim was the chief guest. PRESS RELEASE

Children to Design a ‘Dream Car’ through Art ContestKARACHI: 6th Toyota dream Car art Contest isbeing organized by Indus Motor Company acrossPakistan with more than 130 schoolsparticipating, which will be conducted betweenJanuary and February 2012. TOYOTa dream Carart Contest is designed to promote art and tocreate opportunities for children to express theirdreams and use their creative imaginationthrough art by drawing a “Future dream Car”. The5th TOYOTa dream Car art Contest that was heldlast year drew more than 120,000 entries fromover 50 countries around the world. Out of these30 were selected as the best artworks in theirspecific categories. Fatima noor from Rawalpindimade it to the top 30 and won a trip to Japan.This year again, top 15 entries will be selected aswinners at the national dream Car Contest. 5from each age category, representing children

under 10 years, 10 to 12 years and 13 to 15 years.These 15 artworks of the national Contest winnerswill be sent to Toyota Motor Corporation (TMC),Japan for inclusion in the World art Contest thatwill take place in april 2012 in Japan. PRESS RELEASE

Ufone re-launches itsmost successful handsets LAHORE: Ufone re-launched two of its mostsuccessful handsets, G-1000 and G-3610, at anextremely reasonable price. The need to re-launchthese handsets comes with the expansion ofcoverage in rural and remote areas and the demandof low priced and viable handsets from customers.G-1000 comes equipped with a torch light and anFM loud speaker, with a 400 maH battery. It alsohas an impressive 1.18” display and a mini USBinterface charging. Ufone is offering two variants ofthis handset which will be network locked for Ufonenetwork only. The customers can get this handsetat a price of Rs 799/- with a Ufone SIM cardpreloaded with balance of Rs 50/- or the handsetcan be acquired without a SIM at a price of Rs.749/-. G-1000 was previously priced at Rs.999/-. G-3610 is a remarkable handset with 800 mahbattery, FM radio, Flash torch, T-Flast card slot,MP3 Player, 1.8” screen and a Camera. The handsetis reasonably priced at Rs.1699/- and comeswithout a SIM card or any bundled offer. Thishandset is also network locked for Ufone networkonly. G-3610 was previously priced at Rs.1999/-.These handsets are available at all Ufone ServiceCentres, Franchises and Ushops. PRESS RELEASE

HBFCL and ABAD meet to explorecooperation in housing sector LAHORE: House Building Finance CompanyLimited – HBFCL (Formerly known as the HouseBuilding Finance Corporation Limited), recentlyarranged a luncheon meeting with members ofassociation of Builders and developers (aBad) ata local hotel. The aim of the meeting was todiscuss the increasing housing shortage and tojointly address the challenges being faced by thepublic and the builders and developers in thecountry. Hosted by Managing director and CEO ofHBFCL, Mr azhar Jaffri, the luncheon wasattended by Mr. Mohsin Sheikhani- ChairmanaBad, Mr. M. arif Siddik- Vice Chairman aBad,Mr. M. Saleem Kassim Patel- Chairman (SR), Mr.

Muhammad Hanif Memon, Convener HBFCL, andMr. noman Tabani, Co- Convener HBFCL.

Rs165m allocated for 22 model villagesLAHORE: dG Provincial disaster Managementauthority Punjab Khalid Sher dil addressing theworkshop highlighted the objectives of the eventand informed that PdMa distributed reliefgoods among the flood effectees in year 2010involving an amount of more than Rs700millions, while Rs165 million have so far beenallocated for construction of 22 Model Villagesand work is still in progress in this respect.Under the instructions of Chief Minister PunjabMuhammad Shahbaz Sharif, Watan Cardsinvolving an amount of Rs27.6 million weredistributed among flood effectees. He disclosedthat relief goods of a huge amount was also sentfor the effectees of earthquake in brothercountry Turkey and relief goods of Rs650million were distributed among the floodeffectees of Sindh. He informed that Provincialdisaster Management authority have funds ofRs20 Crores out of which an amount can beprovided to any district accordingly in case ofsome emergency and disaster occur and fundsare demanded by the dCO of such district. Heexpressed these views while presiding the firstsession of two-day workshop held in a localhotel. Chairman ndMa, Flood ReliefCommissioner Punjab, UndP, WFP, UnICEFand representatives of various nGOs alsoattended the workshop. PRESS RELEASE

NHA employees made to sign oathISLAMABAD: Chairman national Highwayauthority Syed Muhammad ali Gardezi hasdirected that all officer of nHa in field posting willbe required to sign an oath (Kasam-nama) whereby they will declare that they will not involve inmalpractices and would not get any commission,directly or indirectly from the contractors. In thesame manner the contractors will produce an oathsaying that they will not give any commission,directly or indirectly, to nHa employee. Thisdocument is being made pre-requisite for alltender notices and policy decision regarding it hasbeen taken. Syed Muhammad ali Gardezi told thiswhile addressing the GM Coordination Conferenceheld in nHa. The Conference was attended by allMembers, General Manger and directors ofnational Highway authority. PRESS RELEASE

Bulls regainmomentum at bourse,index rises 76 points

KARACHI

STAFF REPORT

THE result season shopping spreewas live and kicking at the localbourse as the KSE-100 index

gained 76 points for the day to finish at11,960 points. Volumes maintained theirstrength in the week’s last trading sessionwith 75.6m shares traded. after areporting a full year earnings loss ofRs0.27/share today, market volume leaderLOTPTa’s stock took a sharp 9 per centplunge as the challenging times facing thecompany became more evident. FFCremained the star performer jumping 4.8per cent mainly in the second half overmarket rumours that the company willannounce stock dividend with 2011 resultcoming Monday. EnGRO soon followedand gained 1.6per cent, while FFBL inchedlower by 1.1 per cent despite announcingbetter than expected 2011 result. amongE&P companies OGdC edged up 2.7 percent amid healthy volumes, while PSO alsoremained sought after with a decent rise of1.4 per cent over expectations of earlyresolution of the circular debt. In contrast,the sky was the limit for FFC, as itestablished the upper circuit withinvestors anticipating strong earningsand a bonus share issue when its resultsare announced on January 30, 2012.Cement stocks retained their momentumfrom yesterday as analysts release rosyresult expectations for sector equities.Overall, the week ended on a positivenote with the necessary corrections alongthe way and we expect a similar patternin the upcoming week as the corporateresults season gains traction, said aliHussain at HMFS.

KSE players awaitingCGT enforcement

KARACHI

JAVED MAHMOOD

FEdERaL governmentmust immediately im-plement the decisionannounced by financeminister dr Hafeez

Sheikh relating to the non-disclo-sure of source of income by June2014 by stock market investors andtraders who were paying capitalgain tax. Finance minister madethis announcement on Saturdaywhen he visited Karachi Stock Ex-change and held parleys with stockmarket stakeholders to discuss im-portant issues. after the meeting fi-nance minister told media that byJune 2014, tax authorities wouldnot have to run after stock marketinvestors to find out their source ofincome. He also said governmenthas accepted recommendations ofSECP relating to capital gain tax.

However, the decision an-nounced by dr Hafeez Sheikh hadyet not been enforced in letter andspirit by government, which causedconfusion among stock marketstakeholders, Saad Bin naseer,CEO Pearl Capital Management,told Profit on Friday.

He said market had reacted verypositively and strongly to the an-nouncement made by the financeminister for two consecutive days;

but delay in implementation of theannouncement were creating doubtsin the minds of the stakeholders.

Saad pointed out that stock mar-ket players did not demand aboli-tion of capital gain tax, butsuggested that they must not be ha-rassed by the tax authorities. “Stockmarket brokers, investors andtraders were willing and paying CGTand other taxes, but they want pro-tection and a fair environment,” hesaid. after finance minister’s an-nouncement, Karachi Stock Ex-change 100-index gained more than500 points in two consecutive trad-ing sessions. But the bullish senti-ment weakened and now themarketing is fluctuating both waysas investors await implementationof the decision announced by fi-nance minister in Karachi, he said.

Saad said Capital Gains Tax(CGT) has badly undermined thetrading sentiment and volume atthe stock market since July 2010.Thousands of traders have disap-peared from the stock market amidan all-time low volume, while bro-kerage houses have carried outright-sizing. What is worth notingis that government had enforcedCGT from July 2010 mainly toplease International MonetaryFund, but this taxation measurehas not only eroded trading atstock market but also deprived

government of billions of rupeesworth of revenue as daily turnoverof shares plummeted to 20 to 40million shares against 400 to 450million shares trading in good daysat the market.

Seeing this dual loss to econ-omy and capital market, financeminister ultimately made a com-mitment with stock market playersthat their source of income will notbe demanded by tax authorities.Saad naseer said expansion in tax-net is important to enhance taxrevenue, bring into tax-net thosewho were rich and not paying tax,but tax managers should createproper awareness to pre-emptspeculations and damage to invest-ment climate and encourage in-vestment at stock market.

He pointed out that anothermajor issue for a majority of thebrokers is that out of 40 to 50 mil-lion shares daily turnover, about 75per cent of trading volume is in thehands of the top 10 brokers, whilethe remaining brokers are fightingto get a share from 25 per cent ofthe volume. at present 200 broker-age houses are members of KarachiStock Exchange out of which lessthan 100 are active, he said, addingfor the financial survival of eachand every active broker, a mini-mum of 150 million shares of dailytrading is essential, he said.

USAID holds dairysector workshop

LAHORE

STAFF REPORT

UnITEd States agency forInternational development(USaId) held a stakeholders

workshop under its entrepreneursproject in order to review data andfindings collated on dairy sector inPakistan through an extensive valuechain analysis exercise, conducted insouthern Punjab and Sindh provinces.The workshop was organised incollaboration with local partners, EngroFoundation and Hashoo Foundation.The key findings materialising from theanalysis exercise were validated by adiverse group, constituting of inputsuppliers, producers, processors,female livestock extension workers(FLEWs), milkmen, officials fromextension departments andrepresentatives of other donor agenciesworking in the sector. The group alsorevisited and started a discoursearound the roles of various key actors,together with identifying challengesand opportunities in the dairy sector.The working sessions culminated inoutlining effective measures andstrategies to redress the issues andconstraints and design innovativeapproaches to bolster the developmentprocess of dairy value chain.Entrepreneurs dairy Value ChainProject in collaboration with EngroFoundation and Hashoo Foundationaims to support 21,000 dairy farmers(70 per cent of whom shall be women)in Sindh and Punjab with the goal ofincreasing their incomes by 50 per centthrough active participation in valuechain development.

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