01

buSiNeSS

BWednesday, 15 May, 2013

Sometimes when you innovate, you make mistakes.

It is best to admit them quickly, and get on with

improving your other innovations. — Steve Jobs

ISLAMABAD

APP

Abu Dhabi Fund for Development willsupport Pakistan Muslim league-Nawaz(PMl-N) chief Nawaz Sharif in his ef-forts to revive the shattered economy foraddressing myriad challenges con-fronting the country, said a senior offi-cial of the Fund here Tuesday.

“Of course weare looking forpartnership withthe governmentof Pakistan inits efforts to im-

prove the econ-omy,” Al-Adil

Al-Hosani, Di-rector Op-

erationsof Abu

Dhabi

Fund, said at the annual international dayfunction of Sheikh Zayed InternationalAcademy here.

The Fund was set up at the initiativeof late UAE president Sheikh Zayed BinSultan Al-Nahayan in 1971 for creatinga favourable environment for sustainedeconomic development of the develop-ing countries by addressing their needsfor realizing the goal.

Education is the catalyst for bolster-ing growth of the developing nations, in-cluding Pakistan, said Al-Adil. Hespecially flew in here from the UnitedArab Emirates (UAE) to inaugurate twohostels for teachers and students, besidescutting ribbon for a swimming pool of theSheikh Zayed Academy because these fa-cilities were built with assistance from theFund. It is providing quality education upto A-level to students hailing from di-verse cultures from across the globe.

Wafaa Abdul Ghafar, principal of theacademy, built on the instructions of lateUAE president, took Al-Adil around thesprawling institution and explained tohim its contribution in promoting toler-ance and respect for various cultures,which have acquired an added impor-

tance in the global village. Questioned if the Fund would back

would-be prime minister Nawaz Sharif’svow on Monday to divert all his energiesto revive the national economy facingserious challenges, Al-Adil said Pakistanhad already benefited from the AbuDhabi Fund, which had undertakenmany development projects for progressof the brotherly country.

Pakistan and the UAE enjoy verywarm and robust relations as variousprojects across the country are indicativeof Abu Dhabi’s commitment to furthercement their relationship. It has alwaysbeen forthcoming in helping Pakistan intimes of distress like flash flood or dev-astating quake of 2005, he added.

Al-Adil appreciated the academy forimparting quality education in various dis-ciplines and bringing together childrenfrom different countries, which helpedthem understand different cultures thatpromote tolerance. He praised the princi-pal and the staff of academy for an out-standing stage performance of the childrenin showcasing diverse cultures and win-ning kudos from the participants, includ-ing diplomats from different countries.

abu Dhabi Fund to support nawaz’seconomic revival efforts

PML-N’s ‘Asian Tiger’ slogan worksmagic on equity, currency markets

KARACHI

ISMAIL DILAWAR

ANAlySTS foresee signs of eco-nomic revival unfolding in crises-stricken Pakistan with positivesentiments in the equity and cur-rency markets due to a renewed

resolve of the newly-elected Pakistan Mus-lim league-Nawaz leadership to make Pak-istan an “Asian Tiger”.

Continuing its record breaking spree onTuesday, the stocks market rallied to crossthe psychological barrier of 20,574.62points during the second trading session inits reaction to Saturday’s election resultsthat put PMl-N chief Nawaz Sharif in thedriving seat for the next five years.

“This is first indication of economic re-vival in Pakistan,” said an economic ob-server. Reacting positively to a one-partylead in the formation of federal govern-ment, the otherwise risk-averse equity in-vestors at Karachi Stocks Exchange (KSE)made the benchmark KSE 100-share indexgain 230 points or 1.17percent.

Amid increased trading volume, the in-traday high hit the 20,503.85 points beforedipping to the intraday low of 20,244.82.

The turnover ballooned to Rs 299.900million from 280.274 million of Monday.The market capitalization crossed the Rs 5trillion mark to stand at over Rs 5,000 tril-lion against Rs 4.954 trillion of the previoustrading session.

Of total 379 scrips traded, the value of164 appreciated, 196 depreciated and 19 re-mained unchanged. Accumulatively, thetrading value dropped slightly Rs 9.7 bil-lion compared to Rs 9.8 billion the marketwitnessed on last trading of the previousweek. The free-float KSE-30 index alsoclosed bullish at 15,739.29 points, gaining222.18 points.

“Pakistan Stocks closed all time highled by oil and banking stocks after thePMl-N chief pledged to boost Pakistan’srelations with the US and India,” said sen-ior analyst Ahsen Mehanti.

The analyst said the bullish activity waswitnessed in selected blue-chip stocksacross the board after the PMl-N chief’sstatement for making Pakistan an “AsianTiger” led the post election rally at KSEamid higher trades and consolidation.

“Renewed foreign interest, hopes forearly resolution of circular debt crises inenergy sector, gas supply issues to fertilizerand textile sectors on new political commit-ments played a catalyst role in the record

close,” said Mehanti, who also is a directorat Arif Habib Securities.

This, he said, was despite investors’concerns for security unrest in the countrywith certain political parties protesting al-

leged rigging in the historic polls.Another stocks analyst said the market

Tuesday set another record to welcome thePMl-N’s victory in elections.

The analysts at Topline Research saidthe PMl-N’s manifesto, promising low in-terest rate scenario to provide level playingfields to local industry and low tax rates,was expected to bode well for the local cap-ital markets.

“Expectation of improved energy posi-tion mainly in Punjab would keep textile,cement and other industries’ profitability onthe higher side,” said Topline analyst AbdulAzeem. The experts at the currency marketalso are upbeat that led by twice-PMNawaz Sharif the new government wouldput the weakening Pak rupee back on track.

The rupee at present is trading, on theopen market, against US dollar at Rs99.98 on average. According to MalikBostan, President Exchange CompaniesAssociation of Pakistan (ECAP), thistrend was not worrisome given the coun-try’s fast depleting dollar reserves thathave shrunk to $12 billion.

The rupee-dollar parity on the inter-

bank market stands atRs 98.40. “Theinter-bank rate infact determinesthe value ofrupee on theopen currencymarket,” saidBostan whobelieves thatSharif-led gov-ernment wouldreplicate the2008-like perform-ance to stabilizeeconomy.

“If he is able to materi-alize his economic strategy thereis no doubt that rupee can appreciate tocome in tandem with Indian currencywhich traded at Rs 55 versus the green-back,” he said.

Post Chaghi nuclear blasts in 2008, thecurrency dealer recalled, then PM NawazSharif had kept the rupee-dollar parity intactat Rs 54 while Pakistan was left with onlyRs 400 million foreign exchange reserves.

“The country’s foreign currency ac-count then had seen an inflow of $11 billionunlike today’s $3 billion only,” the moneyexchanger said.

The ECAP chief, however, expressedconcern over the prevailing uncertaintywith political parties blaming each other forpoll rigging and refusing to accept eachother’s mandate. “This uncertainty stillhaunts sentiments at the currency market,”he warned.

“The strong government is expected tobring prosperity in the country,” saidTopline analyst Abdul Azeem.

The State Bank Monday reported a 6.37percent increase in the inflow of worker re-mittances that, during July-April Fy13,stood at $11.569 billion. The State Bank be-lieves that remittances would grow up to arecord $ 14 billion this fiscal year ending onJune 30. Then there are positives like Mon-day’s statement of the Standards & Poor, theglobally acclaimed credit rating agency, thatthe smooth democratic transition in Pakistanmay stabilize credit quality of the country.

The IMF and Washington have alreadyagreed in principle to release around $5 bil-lion and $1.8 billion, respectively, on ac-count of an extended SBA facility andCoalition Support Fund (CSF).

The release of cash, however, wasawaiting an elected govern-

ment in Islamabad as theinternational fi-

nancers had re-fused to strike a

deal with thec a r e t a k e rregime.

M e a n -while, thePakistan Fed-eration ofChambers of

Commerce andI n d u s t r y

(FPCCI), thecountry’s apex

body of the trade andindustry, expressed the

hope the new governmentwould start efforts for revival of the econ-omy soon. “The incoming governmentwould be having good finance managerswho would be able to overcome the burn-ing issues of energy crises, dwindling dollarreserves, high cost of doing business,healthcare facilities and education in all theprovinces of Pakistan,” said PresidentFPCCI Zubair Ahmed Malik. 0

The stocks market rallied to

cross the psychologicalbarrier of 20,574.62

points during the secondtrading session in its

reaction to Saturday’selection results that put

PML-N chief Nawaz Sharifin the driving seat

for the next five years

Malik Bostancurrency dealer

If Nawaz is able tomaterialize his economic

strategy, there is nodoubt that the rupee can

appreciate to come intandem with Indian

currency which traded atRs 55 versus the

greenback

ISLAMABAD

AGENCIES

Bilateral trade between India and Pakistangrew 21% to $2.4 billion last year, as Islam-abad reaped the benefits of trade normalisa-tion more than the gains made by New Delhi,said the Indian High Commission.

According to latest figures of the Direc-torate General of Commercial Intelligence andStatistics, Ministry of Commerce and IndustryIndia, which were released on Monday, the vol-ume of bilateral trade recorded a net increase of$410 million from April last year to March thisyear. Pakistan’s exports to India grew 28%while Indian exports to Pakistan increased 19%.Bilateral trade has increased to $2.4 billion,which may soar to $6 billion in the next twoyears if both countries decide to treat each otherequally. Currently, most of the trade betweenIndia and Pakistan takes place via Dubai and itsvolume is estimated at over $4 billion.

The figures come hard on the heels of in-terests shown by the political leadership ofboth sides to improve bilateral ties followingsudden heightening of tensions due to killing

of each other’s prisoners. According to an of-ficial statement released by the Indian HighCommission in Islamabad, Pakistan’s exportsto India in the last Indian financial year (April2012-March 2013) grew 28% and reached$513 million. Metalliferous ores and metalscrap, organic chemicals, raw cotton andleather were among the commodities thatcontributed significantly to the increase. TheHigh Commission termed the 28% increasein Pakistan’s exports “impressive” whenviewed in the context of negligible increase(0.3%) in India’s overall imports. India’s ex-ports to Pakistan in the same period increased$300 million, a growth of 19%. Total Indianexports to Pakistan stood at $1.84 billion, put-ting the trade balance in favour of New Delhi.

“The growth in bilateral trade, especiallyin Pakistan’s exports to India, reflects the pos-itive effect of a number of steps taken towardsfully normalised trade relations,” the HighCommission stated. It added three bilateralagreements signed in 2012 in the areas of cus-toms cooperation, mutual recognition of stan-dards and addressing trade grievances wereintended to further improve trade environment.

Trade between India and Pakistansurges 21% to $2.4b

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buSiNeSSWednesday, 15 May, 2013

Dr Maliha Lodhi to speakat 5th Pakistan Oil andGas ForumKARACHI: Former Pakistan Ambassador to the US,

Dr. Maliha Lodhi will be delivering the Keynote

address at the annual 5TH Pakistan Oil & Gas

Forum 2013 being organized by SHAMROCK

Conferences International on May 30, 2013 at the

Marriott Hotel, Islamabad. The theme of the forum

is “Exploring and Sustaining Energy Needs –

Charting Pakistan’s Road to Economic

Development” The forum attracts a cross-section of

professionals and practitioners from the oil & gas

and power & energy sectors of Pakistan, including

key personnel from the Ministry of Petroleum and

Natural Resources and its allied organizations and

departments. This year’s forum will focus on

discussions in an exclusive “Thought-Leadership

CEO’s Forum” on the state of the industry, the oil &

gas policy and to find practical and enabling

solutions to the challenges of energy requirements

in the country. The conference comprises of two

critical sessions and an interactive panel discussion.

The first session will be on ‘Oil & Gas Policy –

Balancing the Investment, Demand and Supply

Equation’ expected to be chaired by the secretary

petroleum and featuring Mr. Farooq Rahmatullah,

Chairman BOD, Pakistan Refinery Limited and three

prominent speakers. The second session

“Diversifying the Energy Mix – A Road Map towards

Sustainable Energy Solutions” will be focusing on

the game-changing opportunities that can make a

difference in our current and future energy needs

of the country. PRESS RELEASE

McDonald’s Pakistanwins another awardDUBAI: McDonald’s Pakistan won the “Press on

Award” for the third year in a row. The prestigious

award was presented to Asif Ghaffar, Assistant

Director Supply Chain & Quality Assurance,

McDonald’s Pakistan in the recent McDonald’s MEDC

Supply Chain meeting held in Dubai. The award

was given to Supply Chain & Quality Assurance

Team for showing an outstanding performance in

the areas of Compliances, Quality improvement,

Food Safety & Hygiene and Suppliers Compliance in

the country. PRESS RELEASE

CORPORATE CORNER

02

B

Most of the important things in the world have been

accomplished by people who have kept on trying when

there seemed to be no hope at all. — Dale Carnegie

Major Gainers

CoMpany open HigH low Close CHange turnoverSanofi-aventis Xd 466.19 489.50 442.89 483.11 16.92 900Shezan Inter. 608.99 633.99 578.55 625.89 16.90 3,600unilever Pak SPOT 15000.01 15015.00 15000.01 15015.00 14.99 4,260Indus Motor co Xd 316.06 331.00 316.00 330.00 13.94 9,200McB Bank ltd. 261.90 274.99 268.00 274.99 13.09 293,500

Major LosersBata (Pak) Xd 1905.01 1900.00 1850.00 1860.01 -45.00 400Wyeth Pak ltd 1534.60 1535.00 1500.00 1500.33 -34.27 600Indus dyeing 499.00 480.00 475.00 475.00 -24.00 800exide (PaK) 472.75 475.00 451.00 453.75 -19.00 4,300MithchellsFruit 401.82 397.50 381.73 383.34 -18.48 3,900

Volume Leaders

B.O.Punjab Xr 10.31 11.31 10.70 11.31 1.00 24,190,500Bankislami Pakistan 6.21 6.98 6.25 6.79 0.58 19,846,000P.T.c.l.a 18.86 19.83 18.65 19.75 0.89 19,353,000Fauji cement 10.58 10.68 10.35 10.40 -0.18 17,602,500Jah.Sidd. co. 11.93 12.59 11.95 12.28 0.35 15,321,000

interbank RatesuSd PKr 98.4520GBP PKr 150.6414JPy PKr 0.9695eurO PKr 128.0565

ForexBuy sell

uK Pound Sterling 153.25 154.25euro 129 129.85uS dollar 99.7 99.95australian dollar 98.8 99.5canadian dollar 97.9 98.25Japanese yen 0.972 0.992Saudi riyal 26.4 26.65uae dirham 27.15 27.35china yuan 16 16.05

ISLAMABAD

AGENCIES

THE government has prepared a $12.5 bil-lion funding programme for Diamer BhashaDam with resources coming from internaland external sources including the AsianDevelopment Bank, the United States and

Islamic Development Bank, seemingly dealing ablow to India’s attempts to block foreign financingfor what it calls a controversial project.

According to reports, the Indian lobby in Wash-ington has been actively campaigning against Di-amer Bhasha Dam, asking the US and other lendersto link their assistance for the project with a no-ob-jection certificate from New Delhi, which claims thatthe dam is located in the disputed territory of Gilgit-Baltistan. Unfurling the financing plan, officials saidthe government had finalised an arrangement withthe ADB that will result in a loan of $4 billion forDiamer Bhasha Dam. The ADB has also given theassurance that it will provide more if the need arises.

The other major donor will be the US Agency forInternational Development (USAID) that has pledged$2 billion over eight years – $250 million per year.“This financing is part of US strategy to cooperatewith Pakistan to overcome the energy crisis,” an of-ficial of the Ministry of Water and Power said. Japanand EU countries have also consented to giving $1.5billion for the dam under the supplier credit pro-gramme. In the programme, they will provide equip-

ment and machinery for constructing the dam againstfinancing of $1.5 billion. Repayment of these loanswould start after 10 years, the ministry official said.

Islamic Development Bank (IDB) and otherMiddle Eastern lenders will lend $1.5 billion.

Besides tapping these foreign sources of financ-ing, the Pakistan government will generate $1.5 bil-lion by securitising assets of existing dams likeTarbela, Mangla and Ghazi Barotha.

The United States and other lenders have backedthis financing plan, underlining the need for securi-tising assets of different dams in an effort to securefunds from the international community. The govern-ment is also banking on the recovery of huge unpaidbills by the Water and Power Development Authority(Wapda) from power consumers as the collectedamount will go for building the dam. In this pro-gramme, Wapda is expected to generate $1 billion.

The central government will also release $1 bil-lion from the Public Sector Development Programme(PSDP) to implement the project. “The governmenthas already provided Rs15 billion from the PSDP and12 contracts of different nature have been awarded forcompleting the dam,” the water and power ministryofficial said, adding more money would also be pro-vided. German firm lemhyer put the cost of the damat $8.5 billion in 2008 compared to estimates of $6.5billion in 2005. The cost has gone further up and esti-mates suggest that it now stands at $14 billion follow-ing years of delay as according to the planconstruction should have started in 2009.

Trade deficitshrinks 6.75% in9 months

ISLAMABAD

APP

In a positive development, the country’strade deficit decreased by 6.75 percentduring the first ten months of thecurrent fiscal year as exports increasedby 4.23 percent and imports decreasedby 1.02 percent. The overall exportsfrom the country increased from$19.329 billion in July-April (2011-12)to US$20.147 billion during July-April(2012-13), according to the data ofPakistan Bureau of Statistics (PBS). Onthe other hand, the imports into thecountry decreased from $37.042 billionlast year to $36.665 billion during thecurrent fiscal year, showing negativegrowth of 1.02 percent, the datarevealed. According to the data, thetrade deficit during the first ninemonths of current fiscal year stood at$16.518 billion against the deficit of$17.713 billion, decrease of 6.75percent. Meanwhile, on month onmonth basis, the exports during themonth of April, 2013 witnessednominal decrease of 0.19 percent whencompared to March 2013. The exportsduring April 2013 were recorded at$2.130 billion against the exports of$2.134 billion during March 2013. Onthe other hand, the imports into thecountry increased by 6.02 percent inApril 2013 to $3.909 billion againstthe imports of $3.687 billion duringMarch 2013.

Govt preparesfinancing plan forDiamer Bhasha Dam

Interloop establishes Rs 30m endowment for NOP

LAHORE: Interloop Limited and Lahore University of Management Sciences (LUMS) signed an agreement on

May 13, 2013, whereby Interloop has established an endowment to support up to four students in the LUMS

National Outreach Programme (NOP). The established endowment, worth Rs. 30 Million, has been set up to

continuously support NOP students at LUMS and will be implemented starting this year. Interloop Limited was

represented at the signing ceremony by Musadaq Zulqarnain (CEO), Navid Fazil (COO) and Muhammad

Maqsood, (Director Finance) were present. From LUMS, Pro Chancellor Syed Babar Ali, Rector Abdul Razzak

Dawood, Vice Chancellor Dr Adil Najam and Board Members Shahid Hussain and Faisal Farid attended. A

video of the LUMS NOP Programme was also shown at the ceremony. The LUMS Pro-Chancellor, Rector and

Vice Chancellor thanked Interloop for their generosity and highlighted how the NOP programme has deep

direct impacts on hundreds of bright students from all across the country. They gave examples of the

achievements of various NOP students and pointed out that the programme not only benefits students in

economic need but also makes the Univeristy as a whole more representative of the country as a whole and

therefore benefits all of LUMS. Musadaq Zulqarnain said that it was the responsibility of the business sectors

in Pakistan to help in such projects and that education was the best investment for the country. PRESS RELEASE

APCNGA reposes trustin Nawaz, says he willresolve CNG issues

ISLAMABAD

NNI

The All Pakistan CNG Association (APCNGA) on Tues-day reposed full confidence in the leadership of PakistanMuslim league-Nawaz chief Nawaz Sharif saying that hiscapabilities will steer out country from the current mess.

Country was in need of serious and talented lead-ership since long that can resolve energy crisiswhich to trigger economic revival, said GhiyasAbdullah Paracha, Chairman Supreme CouncilAPCNGA. In a statement, he said that massesand business community hope that NawazSharif will resolve energy crisis sooner thanexpected by taking all stakeholders on board tobe remembered as golden era in the history of Pakistan.

Ghiyas Paracha said that fifty million CNG con-

sumers and three million motorists in Punjab have set-tled score with the corrupt cabal in the recent electionsthat inflicted untold miseries upon them for personalbenefits. Masses will never forget those who inflictedpain on them through artificial gas crisis and individualswho made them wait for hours to get economical fuel,he added. Paracha said that business community acrossthe stretch of country has wholeheartedly welcomedlandslide victory of Nawaz Sharif while stock exchangehas welcomed him in very unprecedented way which

has raised hopes among masses.He said that APCNGA repeatedly

forwarded implementable recom-mendations to top officials of the

former government but it fellon deaf years of corrupt ad-visors and politicians uncon-

cerned with the plight of masses.The political fate of former coalition

was sealed by a band of politicians who tooktheir rule as an opportunity to make maximum out

of it on the cost of country, economy and masses. Dis-credited former rulers are now part of the history whowill never win confidence of masses and business com-munity, said Paracha.

Senator calls for greater PCSIR role in Thar coal project ISLAMABAD: The role of Pakistan Council of Scientific and Industrial Research (PCSIR) should be

enhanced to materialize Thar Coal Project for ending energy crisis in the country. This was stated by

Senator Karim Khawaja while talking to APP on Tuesday. “There is huge quantity of deposits of coal in

Thar Sindh and exploiting such deposits would resolve energy crisis by generating electricity at cheap

rate in the country”, Khawaja said. He said that Fuel Research Centre working under PCSIR can

provide the better services including technical assistance to stakeholders of Thar Coal Project and in

addition, focus on Research and Development On Underground Gasification of Coal (UGC). Besides,

empowering the PCSIR by resolving all issues including funding for its operations and research would

help ending energy crisis, Senator Karim Khawaja said. APP

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