profit.com.pk

Cotton could ‘bale out’ economy Page 02

Wednesday, 09 May, 2012

ISLAMABAD

AMER SIAL

China asked Pakistan on Tuesday

to resolve issues faced by Chinese

companies interested in

investment in energy sector to

undertake numerous power and energy

sector projects for which they will be

bringing investment and machinery to fast

track their completion to overcome energy

shortage crippling the economy. an official

source said the Chinese asked Pakistan to

form a comprehensive power development

plan in order to achieve better energy

output, as they showed interest to invest in

14 mega hydel power projects having

cumulative potential of 10,000 MW. The

two days of Pak-China Joint Energy

Working Group (JEWG) was led by the

Minister for Water and Power naveed

Qamar and Chinese delegation was led by

Wu. The talks reviewed the financial and

other aspects of projects related to energy

cooperation. in a joint statement, Wu said

that ongoing energy crisis in Pakistan could

be resolve my mutual energy cooperation

of both sides. We believe energy

cooperation between Pakistan and China

should continue and future of both is

bright. he said that infrastructure

development is the need of time to mature

the ongoing and forthcoming energy

development projects for easy

transportation of machinery and

equipments on the site. Qamar assured

Chinese official for complete support to

Chinese entrepreneurs, who have been

interested or involved in joint energy

development projects. he said Chinese

authorities gave positive response in

context of financing different mega and

small energy power projects including 969

MW neelum Jehlum hydropower Project

(nJhP) costing $3.6 billion, 1100 MW

Kohala hydropower Project (KhP) costing

$2.2 billion as well as more than 17 other

hydro, renewable and clean energy hydro

power projects. The minister said the

government would soon send a high level

delegation comprising financial and legal

managers to discuss and settled down the

concerns of both partners. he also

maintained that the issue raised by Chinese

authorities regarding issuance of no-

Objection Certificate (nOC) would be

addressed on immediate basis and concrete

decision would be taken to resolve the

issue. he urged for financing for

particularly mega hydropower projects,

which would definitely helpful in near

future to overcome the ongoing energy

crisis in Pakistan. he said the contact of

laying transmission lines under UCh-i,

Guddu and nJhP would be awarded those

companies either Chinese or local, who will

win international competitive bidding.

Pakistan also expressed its interest over

the proposal of infrastructure Fund (iF)

discussed in last JEWG meeting held in

Beijing on aug 2011 and stressed over

formation of banking consortium to finance

the infrastructure development.

Later, signing ceremony for three wind

energy projects was held including signing

of Letter of intent (Loi) on 150 MW wind

energy project between United Energy

Pakistan Limited (UEPL) and China

Development Bank Cooperation (CDBC),

inking Memorandum of Understanding

(MoU) of 350 MW wind energy project

between Three Gorges and Pakistani

authorities and document inked between

Dawood Power Private Limited (DPPL) and

hydro China Engineering Company Limited

(hCECL) for 50 MW power project.

KARACHI

ISMAIL DILAWAR

THE PPP-led democratically-elected Sindh government hasbeen able to utilize 65 percent of

the development funds it allocated duringthe last four annual provincial budgets.Of the “whopping” Rs 413.5 billionearmarked for development during afour-year period, ranging from FY2008-

09 to February FY12, the Sindhgovernment spent only 270.2 billion,letting the remaining huge sum of Rs143.3 billion or 34.65 percent lapse.Further, in what appears to be at thisjuncture a wishful thinking, the Sindhgovernment is foreseeing the energy-scarce Pakistan to become a “powerhouse” of the Asian region within nextfew years, as a host of foreign firms werecommitted to invest around $ 20 billionin the wind and coal related energy

projects in the province. Unveiling hisgovernment’s four-year performancereport here in the Sindh Assembly onTuesday, Sindh Chief Minister Qaim AliShah said his government during 2008-2011 had allocated a development budgetof Rs 413 billion, of which Rs 318 billionwere earmarked under the AnnualDevelopment Program.However, he said during the reviewperiod of the total allocated Rs 413.5billion the concerned authorities releasedRs 325.8 billion of which only Rs 270.2billion were utilized. “The need for fulland proper utilization of these funds,however, remains,” the chief ministersaid while looking at the Officers’ Galleryfilled mostly by the secretaries ofprovincial departments. Further, todevelop the province’s agriculture sector,Shah said, the government had increasedits expenditure by 300 times to Rs 11billion in FY11 against 4.8 billion of FY07-08. Some 30,000 water courses had alsobeen improved besides the plugging ofhundreds of breaches developed in thecanals in the wake of repeated naturalcalamities. About flood relief efforts, hesaid Sindh government had spent Rs 41

billion on account of relief and WatanCards during the disasters of 2010 and2011, the damages of which wereestimated at Rs 464 billion. On the fiscalmanagement and development side, Shahsaid Sindh Revenue Board was expectedto collect sales tax on services worth Rs18.5 billion till March 2012 against Rs 8.3billion transferred by the federalgovernment in 2011. About energy sector,the chief minister said a host of foreigncompanies were willing to invest around$ 20 billion in the wind and coal relatedenergy projects in the province, especiallythe “prestigious” Thar coal project. It saysover two dozens foreign companies fromcountries like China, Turkey, Britain,South Korea and others are working onthe wind and coal and have the capacityto add up to 10,000 megawatts ofelectricity to the national grid by 2020.“They have committed to invest aroundUS$20 billion,” he said. Blasting Sharifbrothers for their short-mindedness thatrendered the Punjab’s rulers unable totap the country’s waste natural resourceslike coal, Shah said the said two resourceshad the potential to add more than 25percent of the total current installed

capacity of the country within next fewyears. “This government has taken verybold steps to convert Pakistan into apower house of Asia,” the chief ministertold the desk-thumping provinciallawmakers. The steps taken, he said,would also in turn be pivotal foreconomic growth and job creation acrossthe country. About Thar Coal powerproject, Shah said, a host of foreign firmswere busy in various mining andgasification works on the Thar coalfieldswhile 30 to 35 others applications werepending for the want of federalgovernment’s clearance for the allotmentof land. M/s Oracle, a firm listed at theBritish stock exchange, would beinvesting over Rs 2.5 billion and wouldstart mining at one of the four blocks atThar coal fields. “We would get 4000 to5000MW of electricity from Thar Coalproject by 2015,” said he. The Sindh chiefminister slammed the past rulers,particularly the Sharif brothers, fordevising flawed energy policies underwhich the country was compelled toimport 6 million tons of coal despite theavailability of 176 billion tons of coalreserves in the country.

Sindh govt scattersto the four winds

4 years later…

g Fails to utilise 35pc budget uplift g eyes foreigninvestment worth $20bn in wind, coal projects

power play

pipeline projeCtsg 30 alternate energy projects in pipeline

to yield 1500Mw by next year ISLAMABAD: More than 30 alternate energyprojects including wind and solar are in pipelinewhich would yield over 1500 MW power for thenational grid by next year. Since coming to power,present coalition government has taken anumerous steps to create an enabling environmentfor investment in Renewable Energy projects andnow private sector investors have shown keennessto invest in this sector. Giving details, an official atAlternate Development Energy Board (AEDB) onTuesday said the wind projects which are inadvanced stages of implementation would produce556 MW. These are 50 MW of Fauji FertilizerConstruction at the cost of $133.56 million, ZorluEnerji Pak of 56 MW at the cost of $143.60, ThreeGorges Construction of 50 MW at the cost of$134.75, Foundation-1 of 50 MW at the cost of$128.69 million, Foundation-2 of 50 MW at thecost of $128.70 million, Lucky Energy of 50 MW atthe cost of $132.53 million, Sapphire Power of 50MW at the cost of $128.87 million, Tenaga of 50MW at the cost of $129.67 million, Generasi Powerof 50 MW at the cost of $132.56 million, MasterEnergy 50 MW at the cost of $133.68 million andGul Ahmed 50 MW at the cost of $132.87 million.He said the projects which are providingelectricity to the grid are six MW Wind (ZorluEnergy), 7 MW Biogas project by ShakarjangSugar Mills, and 27 MW plant at Al-moiz SugarMills in D.I.Khan. The official said AEDB hadsuccessfully completed a Rural ElectrificationProject under which 3000 Solar Home Systemswere provided in 49 villages of districtTharparker, Sindh. He said the new projects frombiomas to energy are also in advance stages andwould produce more than 60 MW energy for thenational grid and help control loadshedding. Hesaid NEPRA has also issued generation license to14 companies to produce more than 200 MWenergy. Moreover, the official while giving detailsabout solar projects, said during the presentgovernment Parliamentarian Sponsored VillageElectrification Programme (PSVEP) waslaunched under which 119 Solar Home Systemshave been provided to 34 villages of Deh TikoBaran District Jamshoro, Sindh and 200 SolarHome Systems in 06 Villages of Karak, DistrictKhuzdar, Balochistan. The systems areoperational and the users are satisfied as 29 newschemes under this programme have beenprepared for implementation, he added.Regarding micro hydro power projects, theofficial said with the assistance of GlobalEnvironment Facility (GEF), a micro hydroproject titles “Productive use of RenewableEnergy” has been launched in Chitral, Gilgit andSkardu where more than 90 units of Micro Hydropower are being installed. APP

China ready to helppakistan in power seCtor

PRO 09-05-2012_Layout 1 5/9/2012 3:16 AM Page 1

news02Wednesday, 09 May, 2012

KARACHI

STAFF REPORT

THE decision of shutting down one completeindustry in Pakistan that involves hugeinvestments, employments and is serving

the nation with cheaper and environment friendlyway of transport is being done without finalizingthe alternative means, sources in auto sector saidtoday. Recently there is a lot of debate going onalternate fuel systems and its availability to generalpublic in a package that is affordable to them.Recent intentions of government are clear topromote LPG and discourage the consumption ofCNG. The decision is not viable as it seems it hasbeen taken in haste and without considering thepros and cons, the sources revealed. In order todevelop any industry, proper planning, analysisand infrastructure is required that is not done inthis case. Lots of discussions are being done but sofar, without any conclusion and clarity. Thedecision does not answer queries like when, howand at what comparative rates LPG is available.There is no infrastructure available and nodistribution network is planned so there is a hugequestion mark on portability of LPG to endconsumers. Stability in pricing of LPG is yet

another concern that is so far responded by vaguestatements. There should be at least 30-40% pricedifference between LPG and Petrol in order tomake LPG a feasible option in comparison topetrol and therefore it demands sustainablepricing for LPG which is difficult because of lessavailability and high imports of LPG in Pakistan.In case of a low difference of about 10-15%, LPGwill ultimately be expensive for end consumersbecause of its low mileage per unit and lessefficiency. A car that runs 14 km in 1 liter of petrolwill cover 11 km in 1 liter of LPG whereas it covers21 km in 1 kg of CNG as per a study from sectorexperts said. Considering from the end consumer’spoint of view, it will be an additional burden to thealready affected citizens of the country as LPG isan entirely different kit so all the vehicles that arecurrently converted on CNG will have to bereconverted on LPG so the end consumer will haveto bear the cost of new kit and installation. Allthese factors demand a steady smooth transitionwith proper planning, analysis, infra structureaddressing the concerns of all stake holders andwith the intent that the decision has to support thegeneral public and should put them at ease. Forsure such decisions cannot be taken over night ifso, will always lead to devastating situations.

ISLAMABAD

APP

PAKISTAN Jute MillsAssociation (PJMA) hasrequested the government

to increase tariff on import ofjute yarn and jute twines in orderto protect the domestic industry.“The PJMA requested NationalTariff Commission (NTC) toenhance present customs duty of10 per cent to 25 per cent onimport of jute yarn and jutetwines to protect the domesticindustry”, said a statementissued here by the NTC onTuesday. The association madeits demands on the grounds thatyarns and twines are made from

both jute and sisal plants and areof same nature and use forsimilar purposes. The product,yarn and twines of jute areimported at 10 per cent CD whileyarn and twines of sisal areimported at 25 per cent CD. Theapplicant therefore requestedthat the product, yarn andtwines of jute may be imposed25 per cent CD instead ofpresent 10 per cent to bringuniformity in both products andprotect the domestic juteindustry against cheaper importsof yarn and twines. On request ofPJMA, the NTC therefore invitesviews comments and otherinformation, relevant andhelpful in this study from all

interested parties havingbusiness of jute yarns and jutetwines, added the statement. Thestatement further said that suchviews and comments may besent within 15 days ofpublication of this public noticein newspapers, to the Secretary,NTC Islamabad. Further, allparties having an interest in thebusiness relating to or associatedwith the imports, manufacturingand marketing of jute yarn andtwine are hereby advised to getthemselves registered with NTClatest by May 24, 2012 forparticipation in the publichearing by providing names ofthe participants with theircontact numbers.

requiem for a dream

LAHORE

STAFF REPORT

THE meeting between Engineering DevelopmentBoard (EDB), Pakistan AutomotiveManufacturers’ Association (PAMA) andPakistan Association of Auto Parts and

Accessories Manufacturers (PAAPAM) to discuss autoindustry development program (AIDP-II) for 2012-2013to 2016-2017, has been adjourned without any conclusionas the local manufacturers and EDB are firm on theirrespective viewpoint. According to sources, the representative of local autoindustry have strongly opposed the notion by EDB thatthe new AIDP will bring in more investment andtechnology to the country. They said that the EDB’sproposal will wipe out the local auto parts manufacturersand the OEMs will prefer to import their models fromJapan and other countries after a drastic cut in import ofCBUs as manufacturing a vehicle and paying the dutieson it will be more costly. According to the sources, therepresentative of auto industry registered a strong protestagainst the EDB’s recommendations saying that these willaffect the employment of over 1.5 million workers in autoand allied industries besides inflicting a massive damageto foreign reserves and national economy. They said thatthe industry has already been facing the menace ofsmuggling, under invoicing and misdeclaration and thisnew proposal will also only result in junk being dumpedinto the country and not the technology and Pakistan willfollow into the footsteps of New Zealand where the localauto manufacturing industry has been vanishedcompletely. They said that this is being done just tofacilitate entry of one bike maker which does not even fit

into the criteria of New Entrant and it will undo theachievements of last 20 years in engineering sector whichis the only sector surviving despite adverse Govt policieslike used cars imports, etc. As per the EDB plan, for thetwo-wheeler sector, 50 per cent import duty is proposedon CBUs in 2012-2013 from the present 65 per cent.While duty on non-localized CKD is proposed to beslashed to 5 per cent from 15 per cent, and the duty onlocalized CKDs is proposed at 25 per cent in 2012-2013from 47.5 per cent. Similarly, after making reduction inthe subsequent fiscal years, the duty on parts would bebrought to five per cent by 2017-2018. On the other hand,the two wheeler industry had suggested the governmentto bring down the import duty on CKD kits to 10 per centfrom 15 per cent and CBU rate to 55 per cent from 65 percent. For cars, duty on non-localized CKD kits is currently32.5 per cent which the EDB proposed to slash at 20 percent, while on localized parts the import duty will bereduced to 35 per cent from 50 per cent next year, whichwill be further brought down to 20 per cent by 2016-2017.The rate of duty on 1000cc CBU is suggested at 40 percent from 50-55 per cent followed by 50 per cent on1,000-1,500cc from 60 per cent in 2012-13, while CBUduty on cars from 1,500cc to 2,000cc is proposed at 60per cent from 75 per cent. The EDB road-map alsoincludes withdrawal of regulatory duty of 50 per cent oncars exceeding 1,800cc being an impediment to growth inthis segment, but the biggest gainers will be the importersof Pajero, Land Cruisers, BMWs and Mercedes vehicles.The automakers said that the policy will only benefit theluxury cars importers and the claim that consumers willget cheaper cars is baseless as cars above 2000cc areattractive for common man which proves that the policyand expected results are poles apart.

pjMa demands tariff increase onjute yarn, twine import

KARACHI

STAFF REPORT

KARACHI Chamber of Commerce &Industry’s President Mian AbrarAhmad along with President ofCzech-Middle Asian Chamber of

Commerce (CSOK) Jiri Nestaval accompaniedby the Czech business delegation called onSpeaker Provincial Assembly of Sindh NisarAhmed Khuhro today to apprise about the jointefforts of KCCI and Czech Middle AsianChamber of Commerce to enhance bilateraltrade between Pakistan and Czech Republic.President KCCI Mian Abrar Ahmad stated thatthe Karachi Chamber is committed to promoteindustry in Karachi and elsewhere and he wassteadfast to draw the attention of foreigninvestors to invest in Pakistan and clear thewrongly depicted perception of Pakistan abroad.He informed that during his recent visit toPrague he motivated the Czech investor to visitPakistan and explore the untapped potential ofjoint ventures in coal, alternate energy,engineering and agricultural value-addedsectors. Subsequently, the Czech Business

Delegation was on visit to Pakistan to explorethe business prospects. He stated that KCCI hasproposed Trade Development Authority ofPakistan to establish a showcase of products“Made in Pakistan” along with warehousingfacilities in Prague. He lamented that successivegovernments never paid attention to take thebenefits of Pakistan’s geostrategic position asgateway to China, Iran, India, Central AsianRepublic Republics and Middle East, whileexploring the economic and commercialopportunities in the region. He emphasized thatPakistan should do trade with the regionalcountries and with trading blocks for the swiftrevival of the economy. He said that Pakistan wasone of the fastest growing economies of the world,however, its pace was slowed due to energy crises.He lamented that Pakistan lacks energy securityplan and he urged the government to devise astrategy on war-footing to produce 40 per centelectricity from nuclear, remaining 40 per centfrom coal and rest from other energy resources.He informed that he was leading a high powerKCCI delegation to USA for the advocacy toenhance Pak-USA bilateral trade to bringeconomic excellence in Pakistan and to havemarket access and technology transfer. He was ofthe view that USA should cooperate with Pakistanat par with India to produce energy from nuclearand allow civil nuclear technology. PresidentCzech Middle Asian Chamber of Commerce JiriNestaval stated that Czech investors were willingto enter into joint ventures with local investors inthe potential areas. He said that KCCI & CzechChamber had signed MoU and deliberations werein progress to form Karachi-Prague JointChamber of Commerce & Industry. He referredthat Czech Pakistani Commerce BridgeConference in Prague launched the commercialexchanges between two countries.

edB’s deadlock with auto part manufacturerskCCi’s ChUMsMeetinG adjoUrned

g investors willing to enterinto joint ventures withpakistani investors

CoUnterinG Catastrophes FUel Fantasies

Cotton could ‘baleout’ economy

ISLAMABAD

APP

DESPITE of floods and severe rains inPunjab and Sindh, the production ofcotton remained as high as 13.3million bales (170kg each), five per

cent more than the last assessment of 12.59million bales by Cotton Crop AssessmentCommittee (CCAC). Cotton Commissioner DrKhalid Abdullah attributed the high productionmainly to extraordinary high cotton pricesduring 2010-11, that became a source ofinspiration for high input usage and bettermanagement of the crop. Dr Abdullah told APPthat Almightly Allah blessed Pakistan withextraordinary cotton crop in 2011-12. “Despite offloods and severe rains in Punjab and Sindh, theproduction remained as high as 13.3 millionbales (170kg each), 5 per cent more than the lastassessment of 12.59 million bales by CottonCrop Assessment Committee (CCAC)”, heremarked. He added that the high production ismainly attributed to extraordinary high cottonprices during 2010-11, that became a source ofinspiration for high input usage, and bettermanagement of the crop. Dr Abdullah said thatthe nature favored with low Cotton Leaf CurlVirus (CLCV) disease and mealy bug incidence.“Although floods took a toll of about 2-2.5million bales but the country managed to sustaina reasonably good cotton production”, heremarked. He said that the deteriorated qualitydue to non-stop rains during boll opening stageof the cotton and high production affected themarket badly. “Farmers expecting last year’shigh prices have to face entirely differentsituation”, he remarked. The last year’sproduction, he said remained a source forprojecting next year’s crop volume and someexaggerated figures are being quoted bydifferent economic analytical forums withoutevaluating the picture holistically. Dr Khalidinformed that a report published in April 2012,by Global Agriculture Information Network(GAIN), under Foreign Agriculture Services andUnited Agriculture Department of Agricultureprojected Pakistan’s cotton production for theyear 2012-13 as 10 per cent increase in area and

production. The author forecasted the Pakistan’scotton cultivation on 3.3 million ha andproduction as 11 million bales (480 lbs per bale)equivalent to 14.1 million bales (170 kg). Thereport also stated that GOP has approved 11biotech and 3 non-biotech cotton varieties forgeneral cultivation in the country. The report, hesaid apparently is not based on any authenticsource or data. Such premature projections maydamage the cotton market, shake investor’sconfidence create bias estimates of global cottonstocks. The Ministry of Textile Industry can notendorse such reports. He added that looking atthe ground realities, the Government of Punjabhas approved 8 and not 11 new biotech and 6(not 3) non biotech varieties. The biotechvarieties approved are with Mon 531 gene forcommercial cultivation in the provincesubjected to the commercializationauthentication from the National Bio-safetyCommittee. “The authentication is stillawaited”, he remarked. Dr.Abdullah added thatearly sowing in Punjab, being the main cottonbelt, has achieved 21 per cent less than last year,whereas, in Sindh sowing is 2 per cent laggingbehind the area sown in the same period in2011-12. The Indus River System Authority hasalready declared the water shortage by 21 percent till the end of June 2012. n The availability of certified seed of approved

cotton varieties is not as much as last year. n The prevalence of CLCV is uncertain and

if weather becomes favorable to CLCV, thedisease can outbreak and cause damage.

n Fertilizer availability will remain satisfactory;however pesticides availability could becomean issue as APTAC meeting has not beenconvened for more than 2 years due to shiftingthe subject in different ministries after thedevolution of ministry of Food Agriculture.

n After evaluating all factors, and not beingpessimistic, achieving the last years’target seems a difficult task.

n After the defunct Federal Committee onAgriculture (FCA) of the devolved Ministryof Food and Agriculture, the targets of anycrop commodity are not officially fixed,rather provinces use their last year’sachievements as target of the next year.

g despite calamities cotton production remained as high as 13.3m bales

g Cheaper fuel to remain a dream for poor in pakistan

Czech mate

PRO 09-05-2012_Layout 1 5/9/2012 3:16 AM Page 2

news

Wednesday, 09 May, 2012

03

Bahria Country Club

LAHORE: Bahria Town launched its brand new familyentertainment destination, ‘Bahria Country Club’ lo-cated in Sector C, Bahria Town Lahore. Governor Pun-jab Latif Khosa, Barrister Chaudhary Aitzaz Ahsan,Chairman Bahria Town, Mr. Malik Riaz Hussain, CEOBahria Town, Mr. Ahmad Ali Riaz Malik and VCEBahria Town Salman Ahmed Khan were the chief guestsat this event. Governor Punjab Mr. Latif Khosa did rib-bon cutting of the destination while the cake cutting wasdone by Mr. Aitzaz Ahsan. Also present at the eventwere many other dignitaries, socialites and celebritieswho enjoyed the event thoroughly. All guests expressedthat ‘Bahria Country Club’ by far exceeds the interna-tional standards, the ambience, luxurious interior de-tailing, the open door BBQ with views of the 18 holemini golf course, lakes and the fountains & indoor finedining with the excellent food quality make it the bestentertainment option in Lahore. PRESS RELEASE

nMC participants visit tCp

KARACHI: Seventeen (17) participants of 11th SeniorManagement Course of National Management CollegeLahore visited Trading Corporation of Pakistan (TCP) atKarachi on Tuesday, the 8th May, 2012. Chairman TCP,Mr. Tahir Raza Naqvi, welcomed the participants andbriefed them about the role and on-going business activ-ities of TCP. All the Directors of TCP were present. A de-tailed presentation was also made by Mr. Agha Wasif

Abbas, Director Finance, elaborating the role which TCPhas played in the national economy through foreign trad-ing as well as domestic market intervention, particularlyin over-coming the shortages/improving supply side ofessential commodities, providing relief to common manand safeguarding the interest of growers of certain agri-culture commodities. The visiting officers were informedthat TCP is the trading arm of the government and actsonly on specific directions/decisions of the ECC of theCabinet/Government. Being a public sector organization,TCP is fully PPRA Rules complaint and has been endeav-oring to maintain complete transparency in all its pro-curements. It is one of the profit earning public sectororganizations. The participants took keen interest in thefunctioning of the organization and asked different ques-tions from the Chairman TCP, during Questions & An-swers Session, about the future plans and the steps beingtaken by the Management to bring further improvementsin performance of the Corporation. PRESS RELEASE

teradata reports revenueKARACHI: Teradata Corporation (NYSE: TDC), todayreported revenue of USD 613 million for the quarter endedMarch 31, 2012, an increase of 21 percent from USD 506million in the first quarter of 2011. The first-quarter rev-enue comparison was negatively impacted by 1 point ofcurrency translation. Gross margin of 55.1 percent was upfrom 54.3 percent reported in the first quarter of 2011. Ona non-GAAP basis, excluding the special items and stock-based compensation expense, gross margin was 55.9 per-cent, an improvement from 55.7 percent in the firstquarter of 2011. The increase in non-GAAP gross marginwas driven by leverage from increased product revenueand a favourable deal mix. Stock-based compensation ex-pense and a number of special items (primarily acquisi-tion-related) had a net impact of USD 12 million onTeradata’s first quarter 2012 net income as reported underU.S. Generally Accepted Accounting Principles (GAAP).Teradata reported GAAP net income of USD 91 million, orUSD 0.53 per diluted share, which compared to GAAP netincome of USD 65 million, or USD 0.38 diluted share, inthe first quarter of 2011. Excluding stock compensation ex-pense and special items, non-GAAP net income in the firstquarter of 2012 was USD 103 million, or USD 0.60 per di-luted share, versus USD 82 million, or USD 0.48 per di-luted share in first quarter of 2011. PRESS RELEASE

silkbank announces rs 172m profit before tax KARACHI: The Board of Directors of Silkbank an-nounced a profit before tax of Rs. 172 million in the firstquarter of 2012 which translates to an increase of 9.7 percent over the previous corresponding period. This is de-spite an increase in administrative cost by 13.8 per centover the previous corresponding period. Total depositsincreased by Rs. 10 billion in Q1 2012 which reflects agrowth of 17.17 per cent over the same period last year.Gross Advances also reflected a 3.19 per cent growth over

the corresponding period of last year, increasing by Rs.1.7 billion. As a conscious strategy, the bank is changingthe advances mix by moving into higher margin Con-sumer and SME markets which continues to improve itsbalance sheet spread. A noteworthy reduction in the non-performing loans was achieved by Silkbank in Q1 2012which resulted in a provision reversal including recoveryof written off loans of Rs. 508 million. This led to a reduc-tion in non-performing loans by 6.9 per cent. The Boardof Silkbank appreciated the ongoing contribution ofShaukat Tarin, as Advisor to the Chairman of the Board.Tarin continues to be a principal shareholder of Silkbankalong with Nomura Investments, Bank Muscat and Inter-national Finance Corporation (IFC). PRESS RELEASE

ptCl exhibits at the Multan crafts festivalISLAMABAD: Pakistan Telecommunication CompanyLimited (PTCL ) organized a special customer outreachexhibit at the recently held “South Punjab Craft Festival”in Multan under the aegis of Multan Chamber of Com-merce & Industry (MCCI) and Trade Development Au-thority of Pakistan. Held at the MCCI premises, thecolorful exhibition was organized to portray the rich cul-ture of South Punjab and promote the local industries.Vice Chancellor Bahauddin Zakariya University, Prof. Dr.Khawaja Alqama; President MCCI, Mian Anees A.Shaikh; and VP MCCI, Khawaja Muhammad Hussainwere guests of honor on the occasion. PTCL RegionalGeneral Manager, Shakeel Ahmed, briefed the guestsabout PTCL’s innovative products and services duringtheir visit of the PTCL stall. “PTCL products and servicesare equally popular in all segments of the society,” saidVC Bahauddin Zakariya University, Prof Dr. KhawajaAlqama. “PTCL has transformed the concept of a globalvillage into a reality, and no other company can match itsquality and service standards.” PRESS RELEASE

emirates hosts workshop for travel agentLAHORE: Emirates Airline hosted a special workshopfor travel agents. The ‘Travel Agents’ Product UpdateWorkshop’ was held at a centrally located venue, TheBanquet, near the PACC, and served to provide very use-ful updates to travel agents from all over the city. Theworkshop was cleverly designed with participants di-vided into nine groups with fifteen individuals in eachgroup. These teams attended a range of souk-style pre-sentations made by the following participating depart-ments: Corporate Team, Contact Centre, Skywards,Sales Support & Pricing, Airport Services, Finance,Ticket Office and Emirates Holidays. The objective ofthis interaction was to bring together Emirates and thelocal travel industry so that employees could meet face-to-face all those who are in communication with themall day via email and telephone. This would help employ-ees streamline everyday business activities, share bestpractices and simply explain Emirates’ ways of workingin a conducive and relaxed environment. PRESS RELEASE

BRIEF CORNER

Major Gainers

Company Open High Low Close Change Turnover

UniLever Pak Ltd 7042.00 7394.10 7025.00 7394.10 352.10 140Unilever Food 2712.08 2847.68 2847.68 2847.68 135.60 15Rafhan MaizeSPOT 2650.00 2782.00 2698.00 2764.38 114.38 72Colgate Palmolive 820.00 861.00 820.00 861.00 41.00 303Wyeth Pak Limited 778.34 800.00 785.00 800.00 21.66 269

Major Losers

Nestle Pakistan Ltd. 4331.69 4450.00 4199.00 4218.88 -112.81 3,564Island Textile 234.56 222.84 222.84 222.84 -11.72 356Indus Motor Company 305.00 297.05 296.00 296.51 -8.49 2,801Sapphire Textile 120.27 114.60 114.55 114.55 -5.72 43,000Pak Oilfields 394.75 399.00 389.11 391.15 -3.60 566,035

Volume Leaders

P.T.C.L.A 15.34 16.25 15.50 16.12 0.78 34,556,963D.G.K.Cement 44.38 46.59 44.70 46.59 2.21 19,601,267Telecard Limited 2.20 2.50 2.15 2.19 -0.01 15,079,443Jah.Sidd. Co. 16.02 16.69 15.85 16.28 0.26 14,182,549Engro Corporation 104.47 109.27 104.85 108.07 3.60 11,111,247

Interbank RatesUS Dollar 90.7940UK Pound 146.6233Japanese Yen 1.1373Euro 118.1957

Dollar EastBuy Sell

US Dollar 91.10 91.80Euro 118.43 119.44Great Britain Pound 146.84 148.06Japanese Yen 1.1304 1.1397Canadian Dollar 90.99 92.25Hong Kong Dollar 11.58 11.75UAE Dirham 24.74 24.92Saudi Riyal 24.24 24.41Australian Dollar 92.25 94.48

KARACHI

STAFF REPORT

THE day saw the bench-mark 100-share indexplunged by 104.01 pointsto 14,513.96 points against

14,617.97 points of Monday. AhsanMehanti, Director at Arif Habib In-vestments Limited., said that thePakistan stocks closed bearish on in-vestor concerns after allegations byUS Secretary of State on presence ofterrorist leadership in the country.Total numbers of Shares of 384companies were traded on Tuesday,and at the end of the day total 160stocks closed higher, total 160 aredeclined while 64 remained flat. Theoverall value of shares traded duringthe day was Rs 2.262 million. Thetrading volumes at the ready-counter were recorded lower at2.262 million shares against 2.544million shares of the previous day.The trading value increasing to Rs9.628 billion compared to Rs 9.074billion of the previous session. Theintraday high and low, respectively,stood at 14,685.03 and 14, 489.51points. Market capitalization de-clined to 3.705 trillion from 3.730trillion. “Limited foreign interest,

fall in global stocks and commodi-ties on Euro zone debt crises, out-standing circular debt issues inPakistan energy sector played cata-lyst role in bearish sentiments amidconsolidation in stocks across theboard at KSE.” viewed Mehanti. KSEAll share-index ended the day at10,176.50 points, down 69.42 pointsor 0.68 percent, KSE 30-indexstopped the day at 12,673.35 points,decreasing 89.44 points or 0.70 per-cent while the KMI 30-indexslumped by 201.76 points or 0.80percent to end the day at 25, 019.55.P.T.C.L.A was volume leader of theday, 31.290 million shares and downby Rs 0.07 paisas to close at Rs 16.05followed by D.G.K Cement, EngroCorporation, Jahangir SiddiquiCompany, Fauji Fertilizer, LottePakistan PTA and National Bank ofPakistan with turnover of 26.870million, 13.700 million and 13.687million, 7.727 million, 7.456 millionand 6.785 million shares respec-tively. The Unilever Food andRafhan Maize SPOT, up Rs 142.38and Rs 137.62, led highest pricegainers while, Nestle Pakistan Lim-ited and Unilever Pakistan SPOT,down Rs 96.57 and Rs 52.85 respec-tively, led the losers.

alien Bears

Bears takeHillary’s cueg kse 100 index down 104 pointsISLAMABAD

APP

THE Senate was informed Tues-day that Textile industry wasworst affected during last four

years with 40,000 power looms con-verted to scrap and 10,000 closed par-tially collectively leaving more than100,000 poor laborers unemployed.Minister for Textile Makhdoom Sha-habuddin informed the House thatpower outage, rising power tariff, non-availability of raw material, heavylosses in business and increase in costhad been the key reasons behind thiscrisis. The House could take up justtwo questions during the questionhour as most of the questions per-tained to opposition who were notpresent in the House while four ques-tion related to Ministry of Industriesand Production were deferred due tonon-availability of the Minister for In-dustries and Production and the StateMinister. Amidst assurances to copewith the challenge of power shortage,the minister admitted that this sectorwas the worst affected sector and10,000 power looms were closed par-tially due to financial losses, excessiveincrease in rates of electricity, fuelprice adjustment charges and sales taxetc. He stated, although he had not theexact figure, yet it is estimated that

30,000 poor laborers like weavers,winders, munshi and masters wererendered unemployed while the totalnumber of unemployed related topower loom and sizing sector couldtouch the 100,000 mark. But, thequestioner, a coalition partner SenatorTahir Hussain Mashhadi doubted thefigure and claimed it could have manyhundred of thousands laborers wholost their jobs owing to closure of in-dustry due to power crisis and increas-ing power tariff. He said if only theinstalled capacity could be fully uti-lized and the issue of circular debtcould have addressed, the situationhad been definitely improved. Theminister replied that a law is being en-visaged where it will be made manda-tory that every industrial unit wouldprovide the exact information. “Stepsare being taken and we hope the situ-ation will improve within next two tothree months.” He said the TextileMinistry was nobody to address theissue of power shortage. We are facil-itating the industry and the govern-ment is also concerned about thissituation. When Senator Ilyas Biloursaid, the industry is at the verge of col-lapse and the figure of unemployedcould have been much more, the min-ister said, there is a possibility that theanswer was prepared by a non-profes-sional young man.

teXtile troUBles

A scrappy affairg 40,000 power looms converted to scrap,100,000 poor left unemployed

naC estimates 3.6 percentGdp growth for this fiscal

ISLAMABAD

AMER SIAL

THE government faced another embarrass-ment when the reconvened meeting of theNational Accounts Committee (NAC) es-

timated the gross domestic product (GDP) of 3.6percent for the current fiscal year under the oldbase, as against the finance team’s touted figureof 4 percent. The finance team had forced recon-vening of the NAC even though it had estimate aGDP growth of 3.2 percent for the current fiscalyear on the basis of the new base year of 2005-06instead of old base year of 1999-2000. The fi-nance team claimed that the change in base yearresulted in decline in growth rate which FinanceMinister was claiming around 4 percent for thecurrent fiscal year. However, the officials of Pak-istan Bureau of Statistics were claiming from dayone that the change in base year did not create amajor change and the GDP figure would slightlyimprove under the old system. They were provedcorrect on Tuesday when NAC estimate GDPgrowth of 3.6 percent. Agriculture registered agrowth of 3.1 percent, manufacturing sector 3.4percent and services sector around four percent.

pew has a murky crystal ballISLAMABAD

NNI

THE Pakistan Economy Watch (PEW) onTuesday said upcoming budget by the em-battled government will be sheer disap-

pointment for majority and good news forinfluential. Government will compromise itsstance on subsidies and rely on slogans to offer abudget that will suit their political ambitions, itsaid. Questions are being raised about the legalityof the fifth serial budget which will be presented bya Cabinet working under a convicted Prime Min-ister, said Dr. Murtaza Mughal, President PEW. Hesaid that no key change will take place in thebudget to give a breathing space to reeling masseswhich will make environment more fragile. Thefavourite sectors will not be included in the tax netwhile poor will face enhanced indirect taxation, hesaid. Mughal said that budget is being finalisedwhile keeping political considerations above theeconomic conditions. President, Prime Ministerand majority of ministers lack interest in econom-ics and they continue to rely on imported financeminister who always prefer to employ ad hocmeasures, said Dr. Murtaza Mughal. He said thatour economic managers lack foresight, profes-sionalism, responsibility and political will totake decisions which can result in reforms.

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