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Tuesday, July 22, 2014

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NEWS OF THE DAY

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PLP NEWS ALERTS EMAIL No. 169-2014

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NEWS HEADLINES Top Stories ................................................................................................................................................... 5

Allocations for PSDP not adequate: top official tells Senate body ............................................................... 5

Government mulling winding up Besos ........................................................................................................ 6

Dobbins meets army chief, Nisar, Sartaj ....................................................................................................... 7

Prime Minister to discuss key issues with Saudi leadership ......................................................................... 8

Israel pummels Gaza as world pushes for truce ........................................................................................... 9

Turkey declares three days mourning ........................................................................................................ 10

UN rights council calls meeting ................................................................................................................... 10

UNSC condemns MH17 downing, demands crash site access .................................................................... 11

Russia under fire as Obama calls crash site chaos 'insult' .......................................................................... 11

Stocks indices fall, bonds gain ..................................................................................................................... 12

Nandipur Power & Metro Bus projects: opposition members express concerns ...................................... 13

Balochistan accuses Sindh of stealing its share of water ............................................................................ 14

Asad assigned 'look-after' charge of FBR top slot ....................................................................................... 16

Government decides to release Indian fishing boats ................................................................................. 16

Hajj Policy 2014: Supreme Court suspends LHC verdict ............................................................................. 17

Foreign exchange rigging: Britain opens criminal probe ............................................................................ 18

THE RUPEE: all-round gains......................................................................................................................... 19

PSM gets third instalment of Rs 2.85 billion ............................................................................................... 20

Non-Muslims: National Assembly body opposes ban on alcohol consumption......................................... 21

Business and Economy: Pakistan ............................................................................................................. 23

Fiscal Year 2014 current account balance posts $2.9 billion deficit ........................................................... 23

Allocations for PSDP not adequate: top official tells Senate body ............................................................. 24

Government mulling winding up Besos ...................................................................................................... 25

Pakistani delegation visits Modi''s pet project ........................................................................................... 26

Service providers: BISP to make final payments after conclusion of Tracer study ..................................... 27

Punjab government approves 6 welfare schemes worth Rs 5,316.587 million ......................................... 27

MDTF for KP, Fata, Balochistan: ERKF distributes grants among 1,280 crisis-hit SMEs ............................. 28

8th Pakistan SME Forum on August 19 ....................................................................................................... 29

PIAF vows support to government in raising export volume to $50 billion ............................................... 30

Pakistan economy: Moody's assessment green signal to investors: PCJCCI chief ...................................... 31

Unchanged interest rate: Lasbela Chamber chief expresses dismay ......................................................... 32

Karachi operation: HRCP delegation visits KCCI to discuss situation .......................................................... 32


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Controversy over growth figures: situation underscores need for granting greater autonomy to PBS: analysts ....................................................................................................................................................... 33

Traders of South Punjab criticise unchanged policy rate ........................................................................... 34

Bestway Group acquires The Cooperative Pharmacy business .................................................................. 35

Football export rises by 51 percent ............................................................................................................ 36

Activity at Karachi and Qasim ports ............................................................................................................ 37

PPP calls for urgent National Assembly debate on government plan to lay off PIA employees ................ 38

TI Pakistan files case against illegal appointment of MD PIA ..................................................................... 39

KP government allocates development funds for Swabi: Speaker ............................................................. 40

KP government establishes IFA for development of industries .................................................................. 41

FPCCI lauds decision to sell shares of PIA, Fesco ........................................................................................ 42

Company News: Pakistan ......................................................................................................................... 43

Sunrays Textiles Mills Limited ..................................................................................................................... 43

Cotton and Textiles: Pakistan .................................................................................................................. 45

Cotton market: prices fall on slack buying .................................................................................................. 45

Cotton growers likely to achieve 10.5 million bales' target ........................................................................ 46

Agriculture and Allied: Pakistan ............................................................................................................. 47

Balochistan accuses Sindh of stealing its share of water ............................................................................ 47

Climatic condition may affect sugar production ......................................................................................... 48

Daily trading report of PMEX ...................................................................................................................... 49

Punjab government adopts policy of horticulture promotion: Shahbaz .................................................... 49

PSM gets third instalment of Rs 2.85 billion ............................................................................................... 50

Chicken meat, eggs: directives to announce subsidised rates prominently ............................................... 51

Taxation: Pakistan .................................................................................................................................... 52

Asad assigned ''look-after'' charge of FBR top slot ..................................................................................... 52

Bid to smuggle 60,000 litres of oil foiled: two held .................................................................................... 52

Vague rules: FBR unable to collect FED on chartered flights ...................................................................... 53

International air travellers/passengers: FBR urged to grant WHT exemption to certain categories ......... 53

USAID projects: EAD, FBR to discuss duty exemption ................................................................................ 54

Fuel and Energy: Pakistan ....................................................................................................................... 56

Lesco, Discos directed to redress complaints ............................................................................................. 56

POL prices may remain unchanged............................................................................................................. 56

Markets ...................................................................................................................................................... 58

RECORDER REPORT: KSE-100 morning update ........................................................................................... 58

BR Research: All ....................................................................................................................................... 59


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BoP stability masks concerns ...................................................................................................................... 59

BRICS bank: more than a posture? ............................................................................................................. 60

Askari Bank turns it around ......................................................................................................................... 61

Siemens Pakistan - finally some recovery ................................................................................................... 63

Crime Records ........................................................................................................................................... 65

Khairpur: Over 2000 kg of hashish recovered ............................................................................................ 65

5 dacoits held in Pakpattan ......................................................................................................................... 65

Police arrest 20 armed suspects in Peshawar search operation ................................................................ 65

Lakki Marwat: Lakki police bust gang of gamblers ..................................................................................... 65

3 target killers held in Bhakkar ................................................................................................................... 66

Bootlegger held in Chakwal ........................................................................................................................ 66

Mansehra: DFO among 7 employees booked ............................................................................................. 66

Miscellaneous News .................................................................................................................................. 67

Another lender?: Analysts tip-toe around BRICS’s new bank ..................................................................... 67

Widening gap: SBP tries to get it right with current account data ............................................................. 68

Pak-China Agro Chemical Expo comes to Pakistan ..................................................................................... 70

FY14: Car imports dented, plunge 51%....................................................................................................... 71

Power tariff on tube wells likely to rise ...................................................................................................... 72

Central Asia to Chitral: Talks on power import start in Dushanbe today ................................................... 73

Former LSE chief bullish about Pakistan’s future ....................................................................................... 75

Restructuring package: PSM receives Rs2.85b ........................................................................................... 76

OPEN MARKET FOREX RATES ...................................................................................................................... 77

INTER BANK RATES ...................................................................................................................................... 78

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ................................................................................... 79


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Top Stories

Allocations for PSDP not adequate: top official tells Senate body July 22, 2014

A parliamentary panel was told that the budgetary allocation of Rs 525 billion for the Public Sector Development Programme (PSDP) of fiscal year 2014-15 was not enough to cater to the needs of 190 million people. Secretary Planning and Development Commission Hassan Nawaz Tarrar told the Senate Standing Committee on Communication that several resources and responsibilities were transferred to provinces subsequent to the passage of the 18th constitutional amendment and now modest development projects were the responsibility of provinces. The committee which met with Muhammad Dud Khan Achakzai in the chair discussed the budgetary allocations for different projects of National Highway Authority (NHA). Chairman committee Muhammad Dud Khan Achakzai said the Planning Commission was responsible for an madequate budgetary allocation for the PSDP. He said development projects of fiscal year 2005-06 were included in the PSDP of 2013-14; resultantly, the grant/funding of development projects was cut down and the projects were completed in phases due to which their actual cost increased manifold. He directed the PC to submit a province-wise break-up of each development project comprising, inter alia, the project cost, grants/funds issued so far and the reasons behind delays. He also directed the sub-committee to investigate the alleged corruption by the NHA officers and inform the main committee about its findings. Chairman NHA Shahid Ashraf Tarar said NHA had demanded Rs 128 billion for the financial year 2014-15; however, the government said it could provide funding for only 43 development projects. He said several development projects of financial year 2005-06 were still pending, adding the cost of the mega project such as Lowari Tunnel had increased manifolds due to the delays. He said Rs 25 billion would be spent on a road network in Balochistan. The Chief Minister Balochistan and other stakeholders in the presence of the Prime Minister declared Khuzadar-Ratodero road, N-85 and Gawadar as priority projects. He said NHA was earning Rs 206 billion annually on Built Operate and Transfer (BOT) basis, and the authority was carrying out several large projects on BOT basis. The committee members sought an up-to-date report about the on-going development projects.

Copyright Business Recorder, 2014


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Government mulling winding up Besos July 22, 2014

WASIM IQBAL

The government is likely to wind up Benazir Employees Stock Option Scheme (BESOS), which offers a 12 percent share in public sector enterprises (PSEs) to their employees, though a notification to that effect has not been issued by the Cabinet Committee on Privatisation yet, an official of Privatization Commission (PC) told Business Recorder. However, internally, the PC board is not in favour of continuing the scheme, an initiative of Pakistan People's Party government. Sources inside the PC said the PML-N government considers the scheme a burden on the national exchequer as 12 percent government shares valued at around Rs 120 billion have been disbursed free of cost among the employees of 80 PSEs. The employees of Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDCL) have filed a writ petition in Sindh High Court against the likely closure of the scheme. The vice-president of PPL union told this correspondent that the union has succeeded in getting a stay order from the court. Shares of PPL under BESOS will mature in August 2014. The government has already offloaded over 70.05 million shares out of its holdings in PPL through second public offering. The process is under way to offer 7 million additional shares to the general public with a preference to existing employees of PPL through a subsequent subscription process which would be completed by September 2014, sources said. The employees requested the government to offer 7 million shares of PPL on a face value to the employees as they would otherwise not be able to purchase shares on current price from the market. In June 2004, the then government reduced its holding through an initial public offer which further declined subsequent to the launch of BESOS in August 2009 when PPL employees were allotted 12 percent shares from the government's equity. Currently, the company's shareholding is divided between GoP, which owns about 71 percent, PPL Employees Empowerment Trust with approximately 7 percent (shares transferred to employees under BESOS) and private investors hold nearly 22 percent. BESOS was on hold during the past one year as the newly-elected government initiated an in-house study on BESOS to enable it to take an informed final decision on whether to continue or suspend BESOS. The study is not yet final; however sources reveal that the government has indicated a preference for either rolling back BESOS or restructuring it. The government is also reviewing the proposed amendments tabled during the previous government with respect to restructuring BESOS: requiring a minimum of five years of service in a PSE for being eligible to avail this scheme.



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Dobbins meets army chief, Nisar, Sartaj July 22, 2014

ALI HUSSAIN

Pakistan and the United States on Monday agreed to further deepen their bilateral ties and strengthen mutual consultations on Afghanistan post-2014 with a view to advancing the shared objectives of peace and economic development in the region. The understanding was reached during a meeting between Adviser to the Prime Minister on National Security and Foreign Affairs Sartaj Aziz and US Special Representative for Afghanistan and Pakistan James Dobbins, who in his visit held farewell meetings with Pakistan's civil and military leadership. According to Foreign Office spokesperson Tasnim Aslam, the discussions between Adviser to the Prime Minister and the outgoing US Special Representative for Afghanistan and Pakistan covered Pakistan-US bilateral relations and developments in Afghanistan, in which the Adviser took the opportunity to laud Ambassador Dobbins' efforts for the promotion of stable, co-operative and durable relations between Pakistan and the US during his term as SRAP. The meeting was also attended by US Ambassador Richard Olson and Foreign Secretary Aizaz Ahmad Chaudhry. "The two sides reiterated their resolve to further deepen the bilateral relationship and strengthen mutual consultations on Afghanistan post-2014 with a view to advancing the shared objectives of peace, stability and economic development in the region and beyond," she said. The Adviser highlighted the instrumental role of Pakistan-US Strategic Dialogue in fostering closer collaboration between the two countries in diverse fields including trade, economy, energy, counter-terrorism, education and science and technology. Reviewing the process since its revitalisation last year, the two sides expressed satisfaction over the steady enhancement of mutual understanding and fruitful co-operation. The spokesperson further said that the Adviser also highlighted Pakistan's monumental effort to address the threat of terrorism and underscored that the military operation, Zarb-e-Azb, was addressing this menace without any discrimination or distinction. In the regional context, the Adviser reaffirmed Pakistan's commitment to a peaceful, stable and united Afghanistan. He appreciated the efforts of Secretary John Kerry who had contributed to an amicable understanding on election-related issues. The Adviser also underlined Pakistan's support for a peaceful democratic transition, underscoring its vital importance for stability in Afghanistan and the region. Ambassador James Dobbins, who is leaving his office this month, was assigned as US Special Representative for Afghanistan and Pakistan by President Barack Obama in May last year. Dobbins will be succeeded by his deputy, Daniel F. Feldman. Meanwhile, Ambassador Dobbins also called on Interior Minister Chaudhry Nisar Ali Khan and discussed the overall security situation in the region. The Interior Minister told the top US diplomat that a peaceful Afghanistan was in the interest of the entire region and Pakistan will continue to play a constructive role for peace and stability in the region. Ambassador James Dobbins also paid a farewell call on Chief of Army Staff General Raheel


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Sharif at General Headquarters. According to ISPR, matters of mutual interest came under discussion including post-election situation in Afghanistan and co-ordination along Pakistan-Afghanistan border during the meeting. "US Special Representative for Afghanistan and Pakistan Ambassador James Dobbins visited Islamabad to discuss the United States' commitment to Pakistan and the future of the region as a whole," said a US Embassy spokesperson in a statement here. According to the spokesperson, Ambassador Dobbins, during his meetings with Interior Minister, Advisor to the Prime Minister on Foreign Affairs and National Security as well as Chief of Army Staff, discussed a wide range of domestic and international issues. "Ambassador Dobbins appreciated the opportunity to meet with Pakistani leadership," said the spokesperson, adding that the Ambassador reaffirmed the importance of the US-Pakistani relationship to regional stability and agreed to continue to work together in order to build a stronger partnership to advance our common objectives.


Prime Minister to discuss key issues with Saudi leadership July 22, 2014

Prime Minister Muhammad Nawaz Sharif, who arrived here in the early hours of Monday, performed Umrah and prayed for the progress, prosperity and solidarity of Pakistan. He will also be meeting Saudi leadership to discuss the Middle East crisis and bilateral relations between the two countries. The Prime Minister would also visit Madinah Munawarrah, where he would offer special Nawafil. The Prime Minister would be meeting the Saudi leaders and discuss the evolving situation in the Middle East, and ways to further strengthen bilateral ties. The Prime Minister, who during his private visit would be paying from his own pocket all expenses for the Umrah, travelled on a commercial flight to Saudi Arabia. On arrival, he was received at the Royal Terminal by Governor Jeddah Prince Mishaal bin Majid bin Abdulaziz, senior functionaries of the Royal protocol, Governorate, Saudi Foreign Office and other government officials. Charge d' Affaires of Pakistan Embassy Khayyam Akbar, Consul General Aftab Khokhar and officers from Pakistan Consulate were also present at the airport.

Copyright Associated Press of Pakistan, 2014


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Israel pummels Gaza as world pushes for truce July 22, 2014

Israel pummelled Gaza for a 14th day on Monday, hiking the Palestinian death toll to more than 570, as Cairo took centre stage in world efforts to broker a cease-fire. With air strikes and shelling raining down across the besieged coastal enclave, Israel's army said seven of its soldiers had been killed, bringing the Israeli toll to 25 troops and two civilians in the bloodiest Gaza conflict since 2009. With civilians making up the vast majority of Palestinian dead, Washington urged Israel to take "greater steps" to prevent innocent casualties, and UN chief Ban Ki-moon appealed for the violence to "stop now". But Hamas has so far rejected truce calls, insisting Monday on a lifting of Israel's siege of Gaza and the release of prisoners to cease its rocket fire. Monday's attacks across Gaza killed at least 55 people including 16 children, bringing the overall death toll since Israel launched its operation on July 8 to 572 Palestinians, officials said. In the costliest single Israeli bombardment, an air strike hit a residential tower block in central Gaza City, killing 11 people, including five children. Seven children were among nine people slain in a strike on a house in the southern city of Rafah, and four children died in a raid on a Gaza City home in which another nine died. It came after Israeli tank shells struck a hospital in Deir al-Balah, killing four people, including doctors, officials said, indicating at least 70 people were wounded. Israel says its campaign aims to stamp out rocket fire from Gaza, and the ground phase of the operation to destroy tunnels burrowed into Israel by Hamas, the main power in the coastal strip. With growing concern over civilian deaths, UN chief Ban arrived in Cairo for talks on ending the hostilities, followed by US Secretary of State John Kerry, with the two men set to meet to discuss a cease-fire. In Washington, President Barack Obama repeated that Israel had a right to self-defence, but raised "serious concerns about the rising number of Palestinian civilian deaths and the loss of Israeli lives". Since the Israeli operation began on July 8, huge numbers of Gazans have fled their homes, with the UN saying more than 100,000 people have sought shelter in 69 schools run by its Palestinian refugee agency (UNRWA). "This is a watershed moment for UNRWA, now that the number of people seeking refuge with us is more than double the figure we saw in the 2009 Gaza conflict," spokesman Chris Gunness said.

Copyright Agence France-Presse, 2014


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Turkey declares three days mourning July 22, 2014

Turkey on Monday declared three days of national mourning for the Palestinian victims of Israel's military operation in the Gaza Strip, denouncing the assault as a "massacre". "We condemn Israel's massacre of the Palestinian people," Deputy Prime Minister Bulent Arinc told reporters in Ankara in televised comments after a cabinet meeting as the Palestinian death toll topped 500. "In a show of solidarity with the Palestinian people, three days of mourning have been declared starting from tomorrow (Tuesday)." Prime Minister Recep Tayyip Erdogan has sought in the last days to portray himself as the leading global defender of the Palestinian cause, slamming Israel's actions in the Gaza Strip as a "genocide" of the Palestinians. He has also angered Israel and also its ally the United States by bluntly comparing the mentality of some in the Jewish State to Adolf Hitler. "Turkey has maintained a principled stand against Israel's aggression. It has stood by the righteous, not by the powerful," said Arinc. "We are backing the truce talks, but Israel should stop arbitrary practices that can be considered as mass retribution and realise that the national security can only be restored through fair peace." Turkey has diplomatic ties with Israel but relations were downgraded in the wake of the deadly 2010 Israeli commando raid on a Turkish activist ship on its way to the Gaza Strip. At least 556 Palestinians have been killed in the Israeli operation on the Gaza Strip. Twenty-five Israeli soldiers have lost their lives in the fighting. The announcement of such an extended period of national mourning for events outside Turkey's borders is highly unusual. Turkey also declared three days national mourning for the mining disaster in Soma in May this year that killed 301.


UN rights council calls meeting July 22, 2014

The UN Human Rights Council said it will hold an extraordinary meeting on Wednesday to discuss Israel's ongoing military offensive in Gaza. Monday's announcement followed the deadliest day of fighting between Israel and Hamas in six years, with more than 150 Palestinians and 13 Israeli soldiers killed on Sunday. The meeting was requested by Egypt on behalf of Arab states, as well as Pakistan on behalf of the Organisation of Islamic Co-operation, and the Palestinians. The UN Security Council held an emergency session on the Gaza conflict on Sunday and appealed for an immediate cease-fire. So far, Palestinian figures show 509 Gazans have been killed and more than 3,150 wounded since the start of the Israeli campaign to stamp out cross-border militant rocket fire on July 8. On the Israeli side, 20 people have died, including two civilians. Israel has repeatedly locked horns with the rights council - a 47-nation body whose


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make-up rotates among members of regional groups within the United Nations - accusing it of bias.


UNSC condemns MH17 downing, demands crash site access July 22, 2014

With the backing of Russia, the UN Security Council on Monday unanimously condemned the downing of a Malaysian passenger jet and demanded crash site access in rebel-held east Ukraine. Australia took the lead in drafting the strongly-worded resolution that was adopted after some changes were made to satisfy Moscow. The measure called for a full, independent international investigation of the Malaysia Airlines plane disaster that left 298 dead and demanded that those responsible be held accountable. "We must have answers. We must have justice," Australian Foreign Minister Julie Bishop told the 15-member Council. It called on all countries in the region to cooperate with the probe, an appeal that implicitly targeted Russia which stands accused of supporting the separatist rebels in east Ukraine. "We welcome Russia's support for today's resolution, but no resolution would have been necessary had Russia used its leverage with the separatists on Thursday, getting them to lay down their arms and leave the site to international experts," said US Ambassador Samantha Power. Power urged Russia to take decisive action to get the investigation off the ground and to push for a settlement in east Ukraine where rebels have taken up arms against Kiev. "If Russia is not part of the solution, it will continue to be part of the problem," she said. Malaysia Airlines flight MH17 is believed to have been blown out of the sky Thursday by a surface-to-air missile, killing all 298 passengers and crew. Among the dead are 193 Dutch citizens and 28 Australian nationals. The resolution demanded that all military activities, including by armed groups, be "immediately ceased in the immediate area surrounding the crash site to allow for security and safety of the international investigation."


Russia under fire as Obama calls crash site chaos 'insult' July 22, 2014

Western powers on Monday ratcheted up the pressure on Russia over the Malaysian airline disaster, with US President Barack Obama insisting that Moscow force insurgents controlling east Ukraine to cooperate with an international probe into the crash. Obama said the chaos at the


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crash site was an "insult" to families of the victims, as a train loaded with some 280 bodies was finally allowed to leave a rebel-held station four days after the Malaysia Airlines jet went down in the east Ukraine plains. As the US levelled accusations against Russia for supplying the weapons allegedly used to shoot down the passenger jet and European leaders readied new sanctions, Moscow hit back and sought to shift the blame to Kiev. On the ground, the animosity between Ukraine's warring sides was underlined by intense shelling which erupted in the rebel stronghold of Donetsk, a city just 60 kilometres (about 40 miles) from the station where the bodies had been held in refrigerated wagons.


Stocks indices fall, bonds gain July 22, 2014

Major global stock markets fell and bond prices rallied on Monday as worries over conflict in the Gaza Strip and Ukraine raised uncertainty for investors and kept them away from riskier assets. US stocks fell on Monday, though major indices ended well off their lows. The safe-haven yen also inched up and gold prices rose above $1,300 an ounce as the market focused on increased turmoil in the Middle East and tensions following last week's downing of a Malaysian jetliner over Ukraine. Israeli jets, tanks and artillery continued to pound Gaza as the death toll from a two-week conflict topped 500. Reports that Ukrainian forces were moving into the eastern city of Donetsk added to concerns that the conflict in one of Europe's biggest countries may escalate. Shocks to the system from Ukraine and Israel's ground invasion of Gaza come at a time when markets have been worried about economic growth on both sides of the Atlantic and digesting second-quarter earnings reports. The United States and the EU last week announced further economic sanctions against Russian interests before the jet was shot down. But Germany and other European Union members have taken a more cautious line on moves against Russia than the United States, mindful of the damage an exchange of sanctions with one of their main energy providers could do to Europe's economy. The Bundesbank said on Monday the German economy probably stagnated in the second quarter. The situations in Gaza and Ukraine "are both quite serious, but at this point unlikely to derail the US economy," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey. The Dow Jones industrial average fell 48.45 points or 0.28 percent, to end unofficially at 17,051.73. The S&P 500 slipped 4.59 points or 0.23 percent, to finish unofficially at 1,973.63. The Nasdaq Composite dropped 7.44 points or 0.17 percent, to close unofficially at 4,424.70. MSCI's All-World Index was down 0.3 percent, while European stocks were down 0.5 percent. The overseas headlines overshadowed some upbeat US earnings. Shares of Halliburton Co rose 0.6 percent to $71.35 after the world's No 2 oilfield services provider reported a 20 percent increase in quarterly profit. So far this reporting period, 68 percent of S&P 500 companies are


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beating Wall Street's profit expectations, according to Thomson Reuters data. That is above the 63 percent average since 1994. In the foreign exchange market, the greenback was a tad lower against the yen at 101.27 yen, while the dollar also slipped against the Swiss franc, last trading at 0.8982 franc. German 10-year yields fell to about 1.14 percent, within reach of a 2012 record of 1.126 percent.

Copyright Reuters, 2014

Nandipur Power & Metro Bus projects: opposition members express concerns July 22, 2014

NAVEED BUTT

The members of opposition parties in the National Assembly's Standing Committee on Planning, Development and Reforms expressed their serious concerns over Nandipur Power Project and Rawalpindi-Islamabad Metro Bus Service Project and submitted a requisition to discuss these projects in detail. Opposition members said that more than Rs 60 billion had been spent on Nandipur Power Project but it was not producing even a single megawatt. They said the government was not running the project due to price of diesel. The Committee met with MNA Abdul Majeed Khan Khanan Khail in the chair at Parliament House on Monday. MNAs Dr Ibdullah, Shaza Fatima Khawaja, Shaheen Shafiq, Shazia Ashfaq Mattu, Ehsan-ur-Rehman Mazari, Dr Nafisa Shah, Sheikh Salahuddin and others attended the meeting. The Committee discussed Pak-China Economic Corridor Support Projects and 48 MW Jagran Hydro Power Project, AJK, in the meeting. Dr Nafisa Shah said there was a need to activate the National Assembly Standing Committee on Finance to discuss such projects before their launch. While briefing about the China-Pakistan Economic Corridor Support Project (CPECSP), the official of Planning Commission said that as many as 37 projects costing US $39.553 billion were identified by joint Co-operation Committee (JCC) including 6x660 MW Coal-Based Power Project (IPP) at Gadani ($5.94 billion); 2x660 MW Coal-Based Power Projects at Port Qasim ($1.98 billion); 2x330 MW Thar Power Coal Plant SECMC (Thar Power Company) ($1 billion); 2x600 MW Thar Power Sino Sindh Resources Coal Plant (China Power International) [part of 10x600MW projects for that were approved in the 2nd JCC] ($1.8 billion); 3.8 MT/A Coal Mining Project Thar Block-II SECMC ($860 million); 6.5 MT/A Coal Mining Project Thar Block-I by SSRPL [part of 10x600MW projects for Thar was approved in the 2nd JCC] ($1.3 billion); 1100 MW Kohala Hydro Power Project ($2.397 billion); 720 MW Karot Hydro Power Project ($1.42 billion); Solar Power Park at Bahawalpur 900 MW (100 MW by Public Sector) ($1.35 billion); 300 MW Solar Power Plant at Quaid-e-Azam Solar Park Bahawalpur ($450 million); 50 MW Solar Power Project at Quaid-e-Azam Solar Park Bahawalpur (USD 75 million); 2 x 660 MW Coal-Based Power Projects at Sahiwal (Government of Punjab; $1.6 billion); 2 x 660 MW Coal-Based Power Projects at Muzaffargarh (Government of Punjab; $1.6 billion); 2 x 660 MW Coal-Based Power Projects at Jhang (Government of Punjab; $1.6 billion),


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etc. While discussing Pak-China Economic Corridor projects, Nafisa Shah said that three to four Coal-Based Power Projects of 1400 MW would be installed 1000 kilometer away from the source of availability of coal. She said the government would have to pay extra cost of transportation. While replying to a question raised by a member, Secretary Planning, Development and Reforms Hassan Nawaz Tarar said that the arrangement was bilateral and a Chinese company could accept the project if it deemed it viable. He said that it would be discussed that either the coal would be transferred by road or by train. For this purpose, a committee of Railway ministry would evaluate it. Replying to another question about the investment of other countries in Pakistan, he said that the government gave preference to the investment of China because the two countries shares common objectives and interests. He said, "Pakistan and Chain have a joint political vision and now both are moving forward with that vision." While briefing about the national census, Chief Statistician in Pakistan Bureau of Statistics Asif Bajwa said a summary of national census was laying with Council of Common Interest (CCI) for approval. He said his department would go ahead if CCI approved it; however, at least ten months were required to start national census. He said foolproof security was required particularly in Balochistan and Khyber Pakhtunkhwa for a national census.


Balochistan accuses Sindh of stealing its share of water July 22, 2014

MUSHTAQ GHUMMAN

Balochistan has accused Sindh of stealing its share of water from Rabi season but Indus Water System Authority (Irsa) galvanised into action only after the crisis deepened, well informed sources told Business Recorder. Irsa had received complaints from Sindh and Balochistan about discrepancies in water discharges and their measurement at designated inter-provincial water distribution sites, sources added. The sources said Chairman Irsa Muhammad Naseem Bazai, who is also Member Balochistan along with his colleagues inspected Tarbela and Mangla water distribution and measurement sites and found no inaccuracy but water released from the reservoirs is not reaching its recipients fairly. The sources said, Irsa Chairman dispatched an independent fact-finding team comprising KPK Member, Raqib Khan and Secretary Irsa, Khalid Idrees Rana visited Garang regulator at provincial border and measured flows from the Kirthar canal at 2,105 cusecs as opposed to Balochistan stipulated share of 2.400 cusecs for that point. The team is to submit its report to the Authority which will recommend a future line of action to deal with the situation.


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An official told Business Recorder that Irsa was told that inflows from Tarbela and Mangla have declined substantially due to which neither Sindh is getting its due share nor is it releasing Balochistan's due share. The official argued that a substantial water released from reservoirs did not reach its destination and this issue was swept under the carpet for two weeks. However, when the crisis deepened Sindh and Balochistan approached the federal government and sought a rectification. In March, at a meeting of Irsa's Technical Committee, Sindh and Balochistan accused each other during the meeting with the latter alleging that Sindh had stolen its water during the Rabbi season. Irsa chairman assured Balochistan province that an inquiry was under way and the charge of water theft would be addressed. He vowed that Balochistan would be provided its entire share in Kharif season. Another official confirmed that Sindh is not releasing due share of water to Balochistan but the quantity of missing water is yet to be calculated. The Balochistan government maintains that the province is getting 300 cusecs less water than its approved share. The province is also being deprived of 1500 cusecs of water at the Pat Feeder canal. The Balochistan government further accused Sindh of releasing 30,000 cusecs unauthorised flows downstream from the Kotri barrage but not giving Balochistan its due share. KPK is also pressing the federal government to amend the Irsa Act 1992 so that the province can get its lost share. Sindh and Punjab have opposed the proposal but Balochistan has extended support to the KPK government, arguing that all provinces facing injudicious distribution of water resources maybe compensated. The Indus River System Authority (Irsa) Act was promulgated in 1992. The object of the Act was to establish a water regulatory authority for regulating and monitoring the distribution of water resources of the Indus River in accordance with the Water Apportionment Accord among the provinces. The provincial governments argue that in accordance with the provisions contained in para-2 of the Apportionment Accord, 1991, 117.35 MAF water from the Indus River is distributed among all the provinces as follows: Punjab's share would be 47.7 per cent water ie l 55.94 MAF, of which 37.01 MAF in Kharif and 18.87 MAF in Rabi. The share of Sindh was fixed at 41.5 per cent ie 48.76 MAF of which 33.94 MAF for Kharif and 14.82 MAF in Rabi. Khyber Pakhtunkhwa's share was fixed at 8.78 MAF of which 3.48 MAF in Kharif and 2.3 MAF in Rabi - the quota of KPK Government canals: 1.80 MAF in Kharif and 1.2 MAF in Rabi. This constitutes 7.50 per cent share for the province in total available water resources. The share of Balochistan was determined at 3.87 MAF of which 2.85 MAF is for Kharif and 1.02 MAF for Rabi. This implies that the share of Balochistan was fixed at 3.3 per cent of the total allocation. The Balochistan government maintains that the province has no separate canal to extract its share from the barrage and all supplies to the province are regulated by Sindh through their own system. Due to control over the regulation of system at barrages as well as in the parent channels in their territory, Sindh often prefers to fulfil its own demand resultantly Balochistan suffers from shortage of irrigation supplies during peak seasons. While in case of rains entire flood supplies are diverted to Balochistan which cause inundation/serious destruction as was experienced during 2010 and 2012. Besides, Irsa authorisations are not implemented in letter and spirit and Balochistan faces short supplies from the Indus every year. "Since Balochistan is aggrieved due to injudicious distribution of power resources, as such any legislation/ amendments in the Irsa Act that may secure the interests and water rights of the


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province would be supported for promulgation by Balochistan. Irsa may also be empowered to implement its decisions by the provinces," said Additional Secretary (technical).


Asad assigned 'look-after' charge of FBR top slot July 22, 2014

Shahid Hussain Asad (IRS/BS-22), Senior Member Inland Revenue Policy Federal Board of Revenue (HQ), Islamabad has been assigned the look-after charge of the post of Chairman, FBR during the leave period of Tariq Bajwa, Secretary, Revenue Division/Chairman, FBR from July 18, 2014 to August 14, 2014. According to an office order issued by the FBR here on Monday, Minister for Finance Ishaq Dar has given approval to the decision to allow Shahid Hussain Asad to look-after charge of the post of Chairman FBR. Asad, a BS-22 officer of Inland Revenue Service is actively working as FBR Senior Member IR Policy. He was key member of the team, which proposed policy measures introduced through Finance Act 2014. Shahid has also worked as FBR Member Inland Revenue Operations, Director General Intelligence and Investigation Inland Revenue FBR and at key positions in the field formations of the Board. As head of the intelligence agency of the FBR, he introduced the concept of 'Red Alerts' preventing fraudulent sales tax refunds to the tune of billions on monthly basis. Similarly, he also started first-ever exercise of documentation of potential persons across the county. Major policy reforms were initiated during his tenure which were appreciated by business and trade circles. He also worked as Additional Secretary Ministry of Production in the past.


Government decides to release Indian fishing boats July 22, 2014

Following the release of 150 Indian fishermen, as a goodwill gesture last May, the government of Pakistan has decided to release 57 fishing boats in custody, said a Foreign Office statement. It stated that a nine-member Indian delegation visited Karachi from 18-20 July to inspect the boats and discussed modalities for the release with officials of the Pakistan Maritime Security Agency (PMSA). Every effort was being made by the PMSA to keep the boats in good condition. However, some


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minor repairs were still required before handing over the boats. In this regard, a follow-up visit of Indian officials would take place in August to oversee the repairs before they are returned in mid-September. Indian fishermen and boats are often apprehended by PMSA when they violate Pakistan territorial waters. Usually the boats are not in seaworthy condition and are not returned. However, following instructions from the prime minister to return these boats, hectic efforts were undertaken by the PMSA to ensure that the boats are returned to their rightful owners. "The government of Pakistan views the issue of prisoners as humanitarian and continues to make efforts for their release as soon as their prison sentence is completed", it said. It also called upon the Indian government to adhere to the Consular Agreement of 2008 and the recommendations of the Judicial Committee on Prisoners to ensure that all those Pakistani prisoners are released who have completed their sentences. On May 26, as a goodwill gesture, Prime Minister Nawaz Sharif had directed that 151 Indian prisoners (01 civil and 150 fisherman) be released. Presently, 296 Indian nationals are detained in Pakistan, which include 47 civil and 249 fishermen.


Hajj Policy 2014: Supreme Court suspends LHC verdict July 22, 2014

KHUDAYAR MOHLA

The Supreme Court on Monday suspended Lahore High Court's verdict against the Hajj Policy 2014 by accepting federation's plea for hearing. On July 15, a single member bench of Lahore High Court ruled that the Hajj Policy 2014 had granted a quota of 15,000 pilgrims to the Private Hajj Tour Operators as per the list of 2013, "which is unlawful." The verdict revealed that there was a massive financial difference between the expenses of Hajj through private tour operators and government of Pakistan, saying the government was charging Rs 272,000 from each pilgrim whereas tour operators were charging even more than Rs 1million from each Haji. A two-member bench of Chief Justice Nasirul Mulk and Justice Dost Muhammad Khan was hearing a federation's appeal. Appearing before the bench on behalf of 11 new tour operators who were denied the Hajj quota, Mohammad Azhar Siddique defended the LHC judgement of July 15. Siddique argued that the federation had only arrayed 11 respondents whereas, they were 18 in number and that three separate writ petitions have already been filed. He alleged that Hajj Policy-2014 was based on mala fides and constituted a bar on new entrants in Hajj business. To which, Justice Nasirul Mulk observed that the federation had the authority to frame a policy; therefore, no malafide could be presumed in on part of the federation.


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Siddique argued that the Ministry of Religious Affairs (MORA) failed to comply with the apex court's directives of August 2013 regarding Hajj policy in true letter and spirit as the policy was uploaded on the ministry website on May 28, 2014. He further said the Hajj Policy had not been finalised by the committee and credentials of existing Hajj Group Organisers (HGOs) had not been verified. The counsel argued that the deduction of Hajj quota (15,000 pilgrims) from government Hajj scheme was an act of exploitation because this quota was meant for poor people who intended to perform Hajj through government Hajj scheme by paying Rs 250,000. He pleaded that new tour operators provided Hajj services at the same rate of Rs 250,000 per pilgrim with better facilities and alleged that the Ministry of Religious Affairs, in connivance with HGOs, was not allowing any space to new entrants. Siddique termed the Hajj Policy 2014 violation of Article 18 of the Constitution, arguing that across the world subsidy was awarded for religious rituals, but Hajj industry had become a lucrative business in the country. He said the Competition Commission of Pakistan (CCP) had categorically recommended that Hajj quota should be allocated on merit with transparency. Siddique also said that Hajj Policy 2014 was not approved by the Cabinet in terms of Rule 16(2) & 17 of the Rules of Business so the policy had no legality. Additional Attorney General Attique Shah apprised the court that during the last Hajj season the quota of was of 179210 pilgrims; however, it was slashed by 20 percent in 2014 because of extension in construction around al-Haramain al-Sharifain. Shah further claimed that a quota of 15000 pilgrims was allocated to private HGOs in 2014 as per the list of 2013, which the LHC declared unlawful. Talking to journalists after hearing of the case Mohammad Azhar Siddique said that on behalf of his client and in the larger interest of the public he will challenge existing Hajj Policy after filing a review petition against July 21, 2014 verdict of the apex court.


Foreign exchange rigging: Britain opens criminal probe July 22, 2014

Britain's fraud agency on Monday said it has launched a criminal probe on Monday into allegations of price rigging in foreign exchange markets. The investigation into "fraudulent conduct" comes after EU, British, and US and other regulators have levied huge fines on some of the world's biggest banks and investment houses for manipulating financial markets worth trillions of dollars. "The director of the Serious Fraud Office has today opened a criminal investigation into allegations of fraudulent conduct in the foreign exchange market," it said in a statement, without giving further details. Reports said the investigation was expected to centre on whether traders personally benefited from manipulating foreign exchange market benchmarks.


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The Serious Fraud Office had previously said that it was looking at "complex" evidence before deciding whether to launch an inquiry. Barclays, HSBC and Royal Bank of Scotland have all confirmed that they are part of the ongoing forex market investigations. Deutsche Bank, Swiss lender UBS and US pair Citi and J.P. Morgan Chase have also revealed that they are co-operating with regulators over the affair. London is a world hub for foreign exchange trading and in June Britain's government, the Bank of England and financial regulators proposed legislation to punish any rigging of the market with criminal sanctions. The legislation was an extension of new laws regulating the interbank Libor rate, which is used to calculate the price of a vast range of loans and other debt instruments worth trillions. Some traders have been found guilty of manipulating the Libor and Britain has already threatened prison for those found guilty of rigging it. Bank of England governor Mark Carney has said the impact of foreign exchange market abuse could be even more significant for the industry than the Libor scandal. Speaking to a panel of British lawmakers in March, he said: "This is extremely serious... as serious as Libor, if not more so, because this goes to the heart of the integrity of markets and we have to establish the integrity of markets." In response to the revelations of malpractice in foreign exchange markets, the BoE announced that it would appoint a new governor to focus on financial markets and banking as part of a major overhaul intended to tighten regulations and regain public confidence.


THE RUPEE: all-round gains July 22, 2014

The rupee made some gains against the dollar on the money market on Monday in the process of trading, dealers said. The rupee managed to recover 11-paisa versus the dollar for buying and selling at Rs 98.82 and Rs 98.84 respectively. INTERBANK MARKET RATES: OPEN MARKET RATES: The rupee followed the same trend against the dollar, picking up 10-paisa for buying and selling at Rs 98.70 and Rs 98.90 respectively, and it also went up in relation to the euro, gaining 25-paisa for buying and selling at Rs 133.00 and Rs 133.25, they said. In the first Asian trade, the euro regained more ground on the dollar in Asia, having rebounded from a five-month trough, but trading was anything but energetic thanks to a holiday in Japan and amid concerns that geopolitical tensions could flare up at any time. The common currency drifted up 0.2 percent to $1.3546, extending Friday's bounce from a five-month low of $1.3491. The dollar was trading against the Indian rupee at Rs 60.21, the greenback was available at 3.1750 versus the Malaysian ringgit and the US currency was at 6.2078 in terms of the Chinese yuan. Interbank buy/sell rates for the taka BDT against the dollar on Monday: 77.55-77.58 (previous 77.58-77.60). Call Money Rates : 05.75-07.25 percent (previous 05.25-07.25 percent).

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Open Bid Rs 98.70 Open Offer Rs.98.90 ======================== Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday. ======================== Bid Rate Rs.98.82 Offer Rate Rs.98.84 ======================== RUPEE IN LAHORE: The Pak rupee was down in relation to the greenback on the local currency market on Monday. According to the currency dealers, the dollar resumed trading at its last week closing of Rs 98.80 and Rs 99.05 as its buying and selling rate, respectively. As a result of fresh buying, the dollar posted a gain of five paisa at Rs 98.85 and Rs 99.10 on buying and selling side, respectively, the dealers said. However, the rupee-dollar parity remained unchanged amid sluggish trading trend. The pound was traded at its last Saturday closing of Rs 168.50 and Rs 168.75 on buying and selling counters, respectively, they added. RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar on the open currency markets of Islamabad and Rawalpindi here on Monday. The dollar opened at Rs 98.50 (buying) and Rs 98.60 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 98.50 (buying) and Rs 98.60 (selling). Pound Sterling opened at Rs 165 (buying) and Rs 165.50 (selling) against same last rate. It closed at the same rate without further change by the end of evening session.


PSM gets third instalment of Rs 2.85 billion July 22, 2014

Ministry of Finance, Government of Pakistan, Islamabad, has released the sum of Rs 2.85 billion to Pakistan Steel Mills (PSM) on Monday. The amount is the third instalment of the first tranche of the approved restructuring package of Rs 18.5 billion from the Government of Pakistan. Furthermore, salary for forty five (45) days ie (Full May and Half June) has been disbursed among the employees of PSM. Moreover, pay slip for the month of May-2014 has been issued to all the employees of Pakistan Steel. It is pertinent to mention here that L/C's for procurement of raw materials will be opened and the remaining amount will be utilised for payment of gratuity, capital repairs and utility bills ie SSGC, KW&SB and K-Electric bills etc. Pakistan Steel management is confident that with the release of the third tranche of the approved package, production of the mill would start improving to achieve the capacity utilisation targets set by Government of Pakistan.-PR


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Non-Muslims: National Assembly body opposes ban on alcohol consumption July 22, 2014

AAMIR SAEED

A parliamentary panel on Monday opposed ban on drinking alcohol by non-Muslims and deferred debate on the amendment bill for the next meeting due to absence of the mover. The Standing Committee of the National Assembly for Law and Justice opposed the proposal to withdraw an exemption that permits the non-Muslims to consume alcohol in the Islamic Republic. The constitutional (amendment) bill 2014 was moved by the JUI-F member Asia Nasir. She also moved another bill "The Protection against Harassment of Women at Workplace (Amendment) Bill 2014," in parliament that is now under discussion of the committee. The mover of these two bills, Asia Nasir, has failed to show up in the committee; therefore a healthy debate on these bills could not take place. During the debate, JUI-F member Maulana Mohammad Khan Sherani said that a ban should be placed on provision of alcohol to the non-Muslims as "the consumption of alcohol is banned in all religions". S A Iqbal Qadri, a MQM MNA and member of the committee, said if the government slaps a ban on the consumption of alcohol by the non-Muslims, this would not send a good message to the religious minorities. "The government should not take any such step in haste. There is need to contemplate on the issue thoroughly before making any final decision," he suggested. Majority of the committee members opposed the proposal, saying the government and parliament should not indulge in these issues. MQM MNA S A Iqbal Qadri said the ban on the consumption and provision of alcohol by the state would be in violation of the Constitution. The Chairman of the NA Committee, Chaudhry Mahmood Bashir Virk, said the government should first make efforts to keep a check on consumption of alcohol by the Muslims that was prohibited in the religion and under the law as well. "We should first make efforts to control alcohol drinking by Muslims," he said. In another parliamentary committee meeting on Appointment of Chairperson and Members of the National Commission for Human Rights, the members contemplated on the nominations forwarded by the Prime Minister's Office in consultation with the Leader of the Opposition. The meeting of the committee was held in-camera in the Parliament House. Committee Chairman Senator Syed Muzaffar Hussain Shah told Business Recorder after the committee meeting that the details dispatched regarding the nominees were incomplete; therefore the matter is deferred for another meeting. "The nominations dispatched to the committee did not include members from FATA and Balochistan. We will discuss the issue after receiving the nominations," he said.


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Business and Economy: Pakistan

Fiscal Year 2014 current account balance posts $2.9 billion deficit July 22, 2014

The current account balance posted a deficit of some $2.9 billion during the last fiscal year (FY14), mainly due to rising imports of goods, services and income sector. Although, the CA deficit is slightly higher than the International Monetary Fund (IMF) projections, it is in line with the annual target of $2.9 billion set by the federal government. The IMF's forecast was $2.3 billion and the State Bank projected around 1 percent of GDP or $2.5 billion for FY14. Economists have urged the government to focus on Foreign Direct Investment (FDI) for a long-term stability. "Major inflows received during the last fiscal year are debt-related and have to pay back in coming years," said Muzzamil Aslam, Managing Director, Emerging Economic Consultancy. Increase in the country's forex reserves appeared to be of a transitory nature temporary as it mounted with support of Eurobond inflow and the IMF loan tranches, he added. "We are expecting that current fiscal year will be easier for current account, however there will be some pressure in FY16 as repayment of IMF's new loan would begin," Muzzamil said. The State Bank of Pakistan on Monday revealed that the country's CA balance has witnessed an increase of 17 percent during the last fiscal year. The current account posted a deficit of $2.925 billion during FY14 as compared to a deficit of $2.496 billion in FY13, depicting a surge of $429 million. The cumulative deficit of trade, services and income reached $23.079 billion end of last fiscal year against CA transfers of $20.294 billion during the last year. Similarly, the capital account showed a surplus of $1.833 billion in FY14, compared to only $264 million surplus in the same period last year. This abnormal development can be traced to the receipt of capital grant of $1.5 billion from a friendly country in two equal tranches during February and March 2014. However, the deficit in Q3-FY14 was about one-third the deficit seen in Q3-FY13, with the improvement coming from a rise in home remittances and receipt of Coalition Support Fund (CSF) and auction of Eurobond during the quarter. Pakistan received some $2 billion against the sale of Eurobond in the international bond market; $1.5 billion received from a friendly country; some $500 million from the auction of 3G licenses; and some $550 billion from the IMF as loan tranche in last quarter of FY14. According to SBP, grants are typically treated as transfer incomes, as no good, service or asset is provided in return from the counterparty. These transfer incomes are recorded in the secondary income account, which is a sub-component of the current account. However, the grant that Pakistan received from a friendly country has been recorded in the capital account; this is because it is a long-term capital grant, which will be used to finance development projects in the


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country. The SBP's statistics showed that higher income and services trade deficit are major contributors in the rising current account deficits. Services sector deficit stood at $2.642 billion with $5.26 billion exports and $7.9 billion imports in FY14 compared to a deficit of $1.564 billion with $6.724 billion exports and $8.288 billion import in FY13. During the period under review, with a trade deficit of $16.516 billion, the country's overall goods imports stood at $41.685 billion and exports at $25.169 billion. Similarly, income deficit also mounted to $3.9 billion in FY14 as its inflows stood at $522 million and outflows $4.44 billion in FY14. Meanwhile, month-on-month basis, CA balance posted a deficit of $89 million along with $72 billion current account transfers and a cumulative $2.112 billion deficit of goods, services and income. In addition, financial account posted a $5.233 billion surplus in FY14 compared to $549 million in FY13.


Allocations for PSDP not adequate: top official tells Senate body July 22, 2014

A parliamentary panel was told that the budgetary allocation of Rs 525 billion for the Public Sector Development Programme (PSDP) of fiscal year 2014-15 was not enough to cater to the needs of 190 million people. Secretary Planning and Development Commission Hassan Nawaz Tarrar told the Senate Standing Committee on Communication that several resources and responsibilities were transferred to provinces subsequent to the passage of the 18th constitutional amendment and now modest development projects were the responsibility of provinces. The committee which met with Muhammad Dud Khan Achakzai in the chair discussed the budgetary allocations for different projects of National Highway Authority (NHA). Chairman committee Muhammad Dud Khan Achakzai said the Planning Commission was responsible for an madequate budgetary allocation for the PSDP. He said development projects of fiscal year 2005-06 were included in the PSDP of 2013-14; resultantly, the grant/funding of development projects was cut down and the projects were completed in phases due to which their actual cost increased manifold. He directed the PC to submit a province-wise break-up of each development project comprising, inter alia, the project cost, grants/funds issued so far and the reasons behind delays. He also directed the sub-committee to investigate the alleged corruption by the NHA officers and inform the main committee about its findings. Chairman NHA Shahid Ashraf Tarar said NHA had demanded Rs 128 billion for the financial year 2014-15; however, the government said it could provide funding for only 43 development projects. He said several development projects of financial year 2005-06 were still pending, adding the cost of the mega project such as Lowari Tunnel had increased manifolds due to the delays. He said Rs 25 billion would be spent on a


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road network in Balochistan. The Chief Minister Balochistan and other stakeholders in the presence of the Prime Minister declared Khuzadar-Ratodero road, N-85 and Gawadar as priority projects. He said NHA was earning Rs 206 billion annually on Built Operate and Transfer (BOT) basis, and the authority was carrying out several large projects on BOT basis. The committee members sought an up-to-date report about the on-going development projects.


Government mulling winding up Besos July 22, 2014

WASIM IQBAL

The government is likely to wind up Benazir Employees Stock Option Scheme (BESOS), which offers a 12 percent share in public sector enterprises (PSEs) to their employees, though a notification to that effect has not been issued by the Cabinet Committee on Privatisation yet, an official of Privatization Commission (PC) told Business Recorder. However, internally, the PC board is not in favour of continuing the scheme, an initiative of Pakistan People''s Party government. Sources inside the PC said the PML-N government considers the scheme a burden on the national exchequer as 12 percent government shares valued at around Rs 120 billion have been disbursed free of cost among the employees of 80 PSEs. The employees of Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDCL) have filed a writ petition in Sindh High Court against the likely closure of the scheme. The vice-president of PPL union told this correspondent that the union has succeeded in getting a stay order from the court. Shares of PPL under BESOS will mature in August 2014. The government has already offloaded over 70.05 million shares out of its holdings in PPL through second public offering. The process is under way to offer 7 million additional shares to the general public with a preference to existing employees of PPL through a subsequent subscription process which would be completed by September 2014, sources said. The employees requested the government to offer 7 million shares of PPL on a face value to the employees as they would otherwise not be able to purchase shares on current price from the market. In June 2004, the then government reduced its holding through an initial public offer which further declined subsequent to the launch of BESOS in August 2009 when PPL employees were allotted 12 percent shares from the government''s equity. Currently, the company''s shareholding is divided between GoP, which owns about 71 percent, PPL Employees Empowerment Trust with approximately 7 percent (shares transferred to employees under BESOS) and private investors hold nearly 22 percent. BESOS was on hold during the past one year as the newly-elected government initiated an in-


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house study on BESOS to enable it to take an informed final decision on whether to continue or suspend BESOS. The study is not yet final; however sources reveal that the government has indicated a preference for either rolling back BESOS or restructuring it. The government is also reviewing the proposed amendments tabled during the previous government with respect to restructuring BESOS: requiring a minimum of five years of service in a PSE for being eligible to avail this scheme.


Pakistani delegation visits Modi''s pet project July 22, 2014

A four-member delegation from Pakistan on Monday visited the Sabarmati Riverfront (SR) project, to replicate it in Lahore on river Ravi. The visit is touted to be at the behest of Prime Minister Nawaz Sharif, after he learnt about the major development initiative undertaken by his Indian counterpart Narendra Modi, when he was the Chief Minister of Gujarat. "We have come here to study the good practices followed in the project, as the conditions here and in Lahore are almost similar," Lahore Commissioner Rashid Mehmood Langrial, who heads the delegation, told reporters after his visit to the riverfront in Paldi area here. "We have been studying riverfront development projects in different parts as we found that conditions here and back in our country are similar, so we came here to study the project. River Ravi is also not a perennial river (like Sabarmati). Developing such a river front here is a good gift given to the city of Ahmedabad by the AMC (Ahmedabad Municipal Corporation)," he told reporters. "We will study the environment impact, water level requirement (as Ravi and Sabarmati are not perennial rivers), structural details and learn from the experience here," he said. AMC officials explained them about the project at length. The delegation members also took a high speed boat ride on the Sabarmati River. "They have come here to study our riverfront development project. They would like to develop the same kind of project back there in Lahore. They will stay here for two days," AMC Deputy Municipal Commissioner M Thenerassan said. The delegation comprises Langrial, Lahore Development Authority (LDA) Director-General Ahad Khan Cheema, LDA''s strategic policy unit chief Moazzam Sipra and Mustafa Kamal Chaudhry, a technical expert/consultant on urban infrastructure projects. Earlier, police detained 10 members of Shiv Sena who had come to protest the visit of the Pakistani delegation to Sabarmati Riverfront.

Copyright Independent News Pakistan, 2014


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Service providers: BISP to make final payments after conclusion of Tracer study July 22, 2014

Benazir Income Support Programme (BISP) is exercising utmost vigilance and care in clearing the last tranche to the service providers as it wants to ensure maximum transparency and proper utilisation of public funds. Shabbir Ahmed, Secretary BISP said this during a meeting with representatives of training providers and institutes, says a press release issued here on Monday. He added that BISP will make the final payments to service providers only after the finalisation of the Tracer study expected to be completed by September 30, 2014. During the meeting, Secretary BISP listened to the grievances of training providers, shared with them the stance of BISP, and assured the payment of the genuine claims. Secretary BISP told the participants that the study is ongoing and the payments claims of service providers will be processed accordingly. Thereafter, due claims would be processed for payments. The current management is also working on processing the payments of those service providers/training institutes in 9 districts of Khyber Pakhtunkhwa where Tracer study has been completed. He further added that BISP will soon hold another meeting with the service providers/training institutes of KPK to share the results of Tracer study. The Waseela-e-Rozgar (WeR) programme of BISP was launched in September 2011 and vocational training started in February 2012. Initially, there was a target of imparting vocational trainings to 70,000 beneficiaries. However, so far 57,817 beneficiaries have been provided trainings under the said programme.-PR


Punjab government approves 6 welfare schemes worth Rs 5,316.587 million July 22, 2014

M RAFIQUE GORAYA

The Punjab Government on Monday approved six infrastructure / welfare schemes of different development sectors with an estimated cost of Rs 5316.587 million. These schemes were approved in the third meeting of Provincial Development Working Party of current Fiscal Year 2014-15 presided over by Punjab Planning and Development Board Chairman Muhammad Irfan Elahi. Secretary P&D Arif Anwar Baloch, Chief Economist P&D, Members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives of the relevant Provincial Departments also attended the meeting. According to P&D spokesman, the


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approved development schemes included: 1. Improvement / rehabilitation of existing Multan Road, Lahore from Thokar Niaz Baig Scheme Morr (Roads Works) length 7.70 kms Package-II (Phase-I) at the cost of Rs 2189.320, 2. Construction of bridge over River Chenab at Bhowana including approaches District Chiniot length=15.37 km at the cost of Rs 2466.659; 3. Widening / improvement and construction of road from Gali Jagir to Tehsil Fateh Jang Chakri Inter-Change M-2, length=23.56 km, District Attock & Rawalpindi at the cost of Rs 334.066, 4. Widening and improvement of road from Tail Wala to Mithra length 24.00 km District Bahawalpur at the cost of Rs 299.571 million, 5. Feasibility for the establishment of "National Safari Park" in Salt Rang (PC-II) at the cost of Rs 15 million, and; 6. Transaction Advisory Services for establishment of Multi-Model Inter-City Bus Terminals in Lahore (PC-II) at the cost of Rs 11.971.


MDTF for KP, Fata, Balochistan: ERKF distributes grants among 1,280 crisis-hit SMEs July 22, 2014

The Multi Donor Trust Fund (MDTF) funded project Economic Revitalisation of Khyber Pakhtunkhwa and Fata (ERKF) has distributed grants in 1,280 crisis-hit Small and Medium Enterprises (SMEs) against the target of 850 SMEs while over 400 more will also get the facility soon. The project was aimed at providing support to the SMEs, attracting diaspora investment, and strengthening institutional capacities to foster investment and implement regulatory reforms. The project is a response to the priority interventions identified under the donor supported Post Crisis Needs Assessment (PCNA) Report. The MDTF for KP, Fata and Balochistan was established to support the recommendations made in the PCNA report, and is being administered by the World Bank on behalf of 10 donors. The project is divided in three components including SME development, investment mobilisation and capacity building to foster investment and implement reforms. The component of SME development is being implemented by Small and Medium Enterprise Development Authority (Smeda). Of the total project funds of $20 million under the MDTF, $14 million has been earmarked for SME development component with a share of $9.1 million for KP and $4.9 million for Fata. The business community, particularly SMEs are fully satisfied with the working


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and implementation process of the implementing agency. Talking to this scribe President of Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI), Zahidullah Shinwari has expressed full satisfaction on the role of the Smeda in the project. He said the responsibility of Smeda is merely the receiving of application forms and their processing while after the approval it is the Project Management Unit (PMU) of the provincial government that issue the cheques. He said that up till now the project is moving in right direction, but now some officials of the provincial government are creating problems. Zahidullah Shinwari said that situation in the province is not cordial for business activities. In such conditions the government should take measures for promotion of business activities. He said the business community would soon lodge complaint with Chief Minister Pervez Khattak against such employees of the provincial government.


8th Pakistan SME Forum on August 19 July 22, 2014

The eighth Pakistan SME Forum 2014 organised annually by Shamrock Conferences International will be held on August 19, 2014 at a local hotel. A number of issues now challenging the SME sector in Pakistan will be taken up for discussions for policy interventions. This year's theme is "Bringing SMEs to the forefront of National Priorities". Several key organisations such as the State Bank of Pakistan (SBP), commercial banks, Small & Medium Enterprises Development Authority (SMEDA), Business Support Fund (BSF) of the Ministry of Finance, Chambers of Commerce and Industry, IFC-World Bank and Union of Small and Medium Enterprises (UNISAME) will be participating in the forum which now serves as a bench mark to address issues and pressing needs of the SME sector in Pakistan. Menin Rodrigues, Chairman, Shamrock Conferences International and Convenor of the conference said, "The SME conference is now an annual feature of our conferences program and plays an important role in highlighting the problems faced by the SME sector in Pakistan. There are 3.2 million economic establishments in the country of which more than 90 percent are SMEs. It employs 75 percent of the non-agricultural workforce and contributes 30 percent towards the national GDP. The forum is open to all stakeholders to deliberate on matters that are important to support the life-line of Pakistan's economy." Zulfikar Thaver, President, Union of Small and Medium Enterprises (UNISAME) in a press statement issued on Monday said, "SMEs are the biggest stakeholders in Pakistan's economy and need the best facilities of environment, finance, infrastructure, regular supply of energy and raw material." He urged the government and policy makers to make the environment conducive and accelerate efforts to reduce the cost of doing business. Eminent speakers and representatives of several sub-


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sectors of the SME sector in Pakistan will be dilating on subjects that range from regulatory inconsistency, difficulties in SMEs access to finance, banking services, taxation, transportation of goods, power and energy issues, and security concerns. A special session on women entrepreneurs is also carded in the programme-PR


PIAF vows support to government in raising export volume to $50 billion July 22, 2014

Pakistan Industrial and Traders Associations Front (PIAF) on Monday pledged all-out support to the government to increase the volume of exports to dollar 50 billion. Commenting on the statement of Federal Commerce Minister Khurram Dastgir, Chairman PIAF Malik Tahir Javed said that $50 billion exports for a resourceful country like Pakistan are quite achievable but the government would have to implement good governance and weed out corruption from institutions working for the development of exports. He said the restructuring of Trade Development Authority of Pakistan (TDAP) is a good decision that would go a long way in paving the way for considerable increase in the existing volume of exports. Javed said the government should also seek suggestions from the leading exporters to get desired results in the shortest possible time. He said there are a number of countries that are much smaller than Pakistan but the exports are far bigger than Pakistan and the only reason behind it is an enabling business atmosphere and facilitation to the exporters. He said the government would also have to take all in the commerce related institutions on board for making the policies result-oriented and meaningful. Chairman PIAF said it has been a practice in the country - if one institution facilitated a particular sector the other starts creating undue hurdles; therefore, it is more important that this culture should be eliminated in the larger interests of the economy. He said strengthening of institutions would not only enable them to absorb external shocks but also be in a position to cater to the needs of the business community in a faster manner. He said the Chairman Trade Development Authority of Pakistan (TDAP) should ensure the transparency of disbursement of Export Development Fund (EDF) so that the culture of research could get a real boost.



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Pakistan economy: Moody's assessment green signal to investors: PCJCCI chief July 22, 2014

Pak-China Joint Chamber of Commerce and Industry President Shah Faisal Afridi termed the current assessment of Pakistan's economy by "Moody's" as a green signal to the international investors for investing in Pakistan, which will also strengthen Chinese Investors' confidence in Pakistan. Commenting on Moody's assessment, President PCJCCI said the government has met 10 of 17 structural benchmarks to set the economy on track for achieving further improvements. He observed that upward rating has, in fact, resulted from successful and timely completion of the IMF aided programs, improvements in the external liquidity position and infrastructure advancement that eventually had led the economy to a higher growth trajectory. He was of the view that positive trends of Pakistan's economy as identified by an independent and credible international source like Moody's would help grow foreign investors confidence on present government's policies relating to the trade and industry in the country. He added that Moody had appreciated energy sector reforms and improvement measures to be introduced by the present government of Pakistan along with privatisation of the state-owned enterprises, which shows that no matter how much pessimist you are about Pakistan and its economy or future in general; or no matter how much resentment you brew for the current Pakistani government, one cannot deny authenticity and validity of Moody's. Moody's is the bond credit rating business which is respected all over the globe, and when it says positive or negative, the world believes. Shah Faisal Afridi said Moody's positive and stable outlook means that government of Pakistan is very well capable of supporting its banks as well as paying its loans back, which means that the interlink between banks and government is transparent and stable putting the risk profile at low and investment options highly stable and profitable. He said this is the third bullish assessment of Pakistan's economy by a significant institutional player, after the other two coming from the International Monetary Fund and the State Bank over the past two weeks. He said the G-8 and other developed countries get Moody's research and market prediction to invest and provide loans and project funding at international level. Therefore, the positive opinion given by Moody's on Pakistan's economy is a good omen for foreign investment including the investment coming from China, he added.



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Unchanged interest rate: Lasbela Chamber chief expresses dismay July 22, 2014

Lasbela Chamber of Commerce and Industry's ( LCCI ) President Ismail Suttar has expressed his dismay over not changing discount rate in the monitory policy announced by State Bank of Pakistan (SBP) on Saturday. In a statement issued here on Monday, the LCCI chief said that industry was expecting at least a cut of 100 basis points so that discount rate could be brought to a single digit, but the SBP remained unmoved. He said that at a time when the industry was suffering because of energy crisis, keeping the interest rate unchanged was neither in the interest of the country nor in the interest of its dwindling economy. He said: "it was very unfortunate that they have failed to learn any lesson from the tighter monetary policy stance adopted by the SBP in the yester years." Suttar regretted that the SBP governor despite all requests and SOS calls has avoided lowering the discount rate, leaving the entire business community to continue to suffer. He said that it was pity that when the entire world has been keeping interest rate at the lowest possible level, SBP is maintaining it at the highest level, causing hindrances for the revival of economy. He said despite higher inflation, all the major economies had either curtailed or are in the process of reducing high interest rates to protect their economies. The LCCI president said that the SBP should understand that its continuing tighter monitory policy stance was inflicting a heavy loss as the economy had already paid a very high price because of high interest rate.


Karachi operation: HRCP delegation visits KCCI to discuss situation July 22, 2014

Acting President of Karachi Chamber of Commerce and Industry (KCCI), Muhammad Idrees, while expressing sheer disappointment over the ongoing Karachi operation has stated that although some decline has been witnessed in targeted killings but other severe issues particularly street crimes, kidnapping for ransom and extortionists' activities continue to worsen day by day. Talking to a delegation of Human Rights Commission of Pakistan (HRCP) during their visit to KCCI, Muhammad Idrees added that in such terrible circumstances, the businessmen and industrialists were finding it impossible to continue their businesses and many businessmen have either shutdown or shifted their businesses to safer destinations, which is likely to affect the economic performance of Karachi city. HRCP delegation comprised Secretary General HRCP, I. A. Rehman, Vice Chairperson HRCP


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(Balochistan Chapter), Tahir Hussain, Hina Gillani and Najamuddin while KCCI Managing Committee members Zafar Saeed Baghpatee, Shehzad Mobeen, Ibrahim Kasumbi, Tanveer Barry, and Secretary General KCCI, S. M. H. Rizvi were also present at the meeting. Muhammad Idrees pointed out that business community of Karachi city has been demanding complete shutdown of all prepaid SIMs as criminals are using illegal prepaid SIMs to carry out their activities. Over 70 percent of crimes of all kind take place using mobile phones with prepaid SIMs and the only solution is to shut down all the prepaid SIMs in one go and get them reissued to their postal addresses through courier service as per CNIC already provided which will automatically get rid of all such SIMs issued illegally on fake CNICs. "Businessmen are constantly being threatened via phone calls made from these illegal SIMs to pay extortion money or face the consequences. The situation is worsening every day but no action has been taken to strictly deal with such criminals," he added. When HRCP delegation sought solution to these issues, Acting President KCCI said that deployment of army under the Constitution in aid of Civil Government is the only solution to the security issues being faced by Karachi city. Deployment of Army in Karachi has become inevitable due to expected repercussions of Zarb-e-Azb Operation as has been done in Islamabad, Multan and other cities whereas Karachi is more vulnerable. He said that frequent transfer of police officers was another serious problem which requires attention. Police officers are frequently transferred from one place to another, making it difficult for them to plan things to tackle problems, execute and deliver results. Speaking on the occasion, Secretary General HRCP, I.A. Rehman said that the purpose of their visit was to take KCCI's feedback on Karachi Operation since its commencement in September last year.-PR


Controversy over growth figures: situation underscores need for granting greater autonomy to PBS: analysts July 22, 2014

ZAHEER ABBASI

The simmering controversy over the growth rate of fiscal year 2013-14 underlines the urgent need to grant autonomy to Pakistan Bureau of Statistics (PBS) in order to give credibility to economic data, say analysts. "Pakistan recorded growth in the fiscal year that ended in June that surprised on the high side at 4.1%, above the Asian Development Outlook (ADO) 2014 forecast of 3.4%," noted ADB which reinforced the viewpoint of those who had disputed the growth figure. An official said the ADB uses PBS data while the International Monetary Fund (IMF) maintaining a growth rate of 3.3 percent for 2014-15 clearly does not. Ashfaq Hasan Khan said that in some cases the lending agency uses its own models to make projections especially ADO


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and that may have been the reason for their surprise. He further stated that projecting Pakistan economic growth rate is no big thing. Lending agencies and independent economists have projected 3 to 3.5 percent GDP growth and did not revise their forecasts even after a 5 percent growth rate for the first quarter of 2013-14 was announced by Finance Minister Ishaq Dar. He added the GDP figure announced by the Finance Minister for the last fiscal has serious credibility issues as no one is ready to believe that the country has achieved a 4.1 percent growth. Social Policy and Development Centre (SPDC) led by Dr Hafeez Pasha not only challenged 4.1 per cent growth figure but also welcomed an opportunity to interact with the PBS as offered by the Finance Minister during the press conference at the launch of the Pakistan Economic Survey. The SPDC further proposed that ideally, the PBS should be made an autonomous agency because this would greatly enhance the credibility of the statistics that it produces. The Finance Ministry has neither taken any step to arrange an interaction between PBS and SPDC on methodology used to arrive at GDP estimates nor displayed any seriousness to make PBS autonomous. An official said status quo simply in terms of PBS indicates that the Finance Ministry wants to keep it under control to acquire desired numbers. Dr Hafiz Pasha-led policy center estimated a growth of 3.5 percent, which is close to the IMF and the ADB forecast of 3.3 percent and 3.4 percent, respectively. According to SPDC, PBS has manipulated the data to show the highest GDP growth rate in the last six years in 2013-14.


Traders of South Punjab criticise unchanged policy rate July 22, 2014

MAQBOOL HUSSAIN BUKHARI

The Business Community of South Punjab criticised third time unchanged policy rate at 10 percent by the State Bank of Pakistan (SBP) in monetary policy for the subsequent two months. President of Multan Chamber of Commerce and Industry (MCCI) Khawaja Muhammad Usman while criticising increase in mark-up rates and said industrialists already reluctant to borrowing from banks due to prevailing economic conditions and law and order. Lack of borrowing by private sector from banks indicates the severe problems in industrialisation and investment process. He expressed that high mark-up rates is one of the biggest hurdle in the way of investment in the country. He said it was better if SBP keeps the interest rate in single digit. He said the mark-up rates are very high in Pakistan as compared to other countries in the world and demanded it should be brought in single digit. He called upon the Governor SBP to reduce interest rates and bring down the interest rate to an acceptable level so that industry wheel keeps rolling otherwise closing of units would result in massive unemployment. Khawaja Usman has strongly opposed the maintaining of 10% in discount rate by the State Bank of Pakistan in its Monetary Policy announced by Governor SBP.


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In a statement he said SBP despite spelling out gloomy picture of the economy and declining trend of all major indicators has maintained the interest rate by 10% to keep it to double digit which is contrary to the facts and an act to further push the economy into muddle. He said that the ailing industry is already suffering and battling for its survival the further increase in discount rate would result into closure of a lot more industries thus mounting the non-performing loans to a new high. He said all over the world the interest rates are declining and in some countries it has gone to even zero level while remains very low in the region including India, China, Sri Lanka, Bangladesh and other countries. He pointed out that private sector borrowing remains still very low as banks prefer lending to the government and a hike in the key policy rate would amount to punish the masses, as well as the private sector as they would have to pay more interest on borrowings.


Bestway Group acquires The Cooperative Pharmacy business July 22, 2014

Bestway Group ("Bestway") and The Co-operative Group ("Co-op") have announced that they have acquired Co-op's Pharmacy business for a purchase price of £620 million. The transaction is due to complete in October 2014, following final separation of the pharmacy business from Co-op. The agreement follows a competitive sale process initiated by Co-op and Bestway saw off competition from the likes of Lloyds Pharmacy, Alliance Boots and Carlyle, the US buyout firm. The sale process came about following a decision by Co-op that the Pharmacy business was not part of its future strategy. The net proceeds will be used to reduce Co-op group debt and the transaction will enable Co-op to focus strategically on its core Retail and Consumer Services Divisions. Co-op has agreed to continue to provide certain services to the pharmacy business for up to 18 months, under a transitional services agreement. Bestway will have the right to operate under the Co-operative Pharmacy brand for a transitional period of up to 12 months. Bestway is the UK's 18th largest privately-owned company and seventh largest family-owned business. Bestway includes the UK's second largest independent wholesaler serving 125,000 independent retailers and caterers from 64 warehouses nation-wide and with over 6 million square feet of selling space offering a product range of over 25,000 items. Bestway's retail club business is the largest in the UK with over 4,000 members. Bestway's Cement division is Pakistan's second largest cement manufacturer with an annual capacity of 6 million tonnes. Bestway's banking division is Pakistan's second largest private bank with assets under management of $10.3 billion and a branch network of over 1,400 branches serving over five million customers. Bestway has built up a successful global business over 40 years by investing in and connecting


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with the communities it serves. The philanthropic arm of the group, the Bestway Foundation, annually donates 2.5 percent of its post-tax profits to social projects in the countries in which it operates. With this acquisition, Bestway will have an annual turnover of approximately £3.4 billion and a global workforce of more than 32,600 people, with over 11,900 people in the UK. Zameer Choudrey, Bestway Group Chief Executive, said: "We are delighted to be bringing The Co-operative Pharmacy business into our Group, adding to our growing and diverse business portfolio. In line with our own ethos, there is a strong focus on supporting and interacting with local communities within this sector. The Co-operative Pharmacy itself is a strong, competitive business, operating in a sector where demographic trends show an increasing demand for healthcare services amongst the wider community. We see great potential to grow the business organically and through future acquisitions. We always look to take a long term approach and have a strong track record of successful acquisitions, and successfully growing employee and customer bases. We are confident that we will continue to do so with this business. On behalf of Bestway Group, I look forward to working in partnership with the management and staff at The Co-operative Pharmacy." Richard Pennycook, Interim Group Chief Executive of The Co-operative Group, said: "The successful sale of our Pharmacy business is an important move for The Co-operative Group. The proceeds will enable the group to reduce debt and is part of the focused delivery of our clear strategic plans and priorities. I am pleased we have reached agreement with Bestway, a strong family-run business that reflects the quality of the business and the high level of interest from a number of bidders. Bestway is acquiring an excellent pharmacy business characterised by the quality and professionalism of colleagues and high levels of customer advocacy. Bestway in return is an ideal owner for the business, with a proven track-record of putting the needs of customers first. I expect the Pharmacy business to go from strength to strength under the committed long-term ownership of Bestway and we look forward to working with them through the transition period". Rothschild and UBS acted as financial advisers to The Co-operative Group in this transaction, with Addleshaw Goddard and Allen & Overy acting as principal legal advisors to The Co-operative Group. KPMG acted as financial advisors for Bestway Group on this transaction, with Hogan Lovells for Legal and J.P. Morgan/Nomura for Acquisition Finance.-PR


Football export rises by 51 percent July 22, 2014

The country's football export boosted up by 51 percent to $21.806 million in May 2014, say official figures. Football export went up by $7.349 million in May 2014 from $14.457 million in May 2013, according to Pakistan Bureau of Statistics (PBS). During July-May 2013-14, the country's export of football surged by $45.753 million (35.12 percent) to $176.014 million from $130.261 million in the same period last fiscal year, the statistics suggest. Export of gloves fell by $3.042 million (24 percent) to $9.757 million in May 2014 from $12.799


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million in May 2013, the PBS indicates. Gloves export declined by $16.375 million (15 percent) to $95.510 million in July-May 2013-14 from $111.885 million in the same period last fiscal year, the official statistics depict. Exports of all sports goods mounted by $22.615 million (7.49 percent) to $324.697 million in July-May 2013-14 from $302.082 million in the same period last fiscal year, the PBS says. In May 2014, exports of all sports goods grew by $2.31 million (seven percent) to $35.894 million from $33.584 million in May 2013, according to the PBS.


Activity at Karachi and Qasim ports July 22, 2014

The Karachi Port handled 251,649 tonnes of cargo comprising 194,067 tonnes of import cargo and 57,582 tonnes of export cargo including 2,195 loaded and empty containers during the last 48 hours ending at 0700 hours on Monday. The total import cargo of 194,067 tonnes comprised of 73,488 tonnes of containerised cargo; 15,331 tonnes of general cargo; 55,071 tonnes of bulk cargo: 40,917 tonnes of coal; 7,112 tonnes of DAP; 7,042 tonnes of soyabean meal and 50,177 tonnes of oil/liquid cargo. The total export cargo of 57,582 tonnes comprised of 45,769 tonnes of containerised cargo; 447 tonnes of cement and 11,366 tonnes of oil/liquid cargo. As many as 2,195 containers comprising 1,030 containers import and 1,165 containers export were handled during the last 24 hours on Friday. The breakup of imported containers shows 250 of 20's and 385 40's loaded while 10 of 20's and nil of 40's empty containers, whereas that of exported containers shows 7 of 20's and 52 of 40's loaded containers while 28 of 20's and 513 of 40's empty containers were handled during the business hours. There were nine ships namely Wan Hai-508, Hyundai Colombo, APL Seattle, Teera Bhum, Morning Ibis, Fairchem Kiso, Sea Wave, Selecta and Noble Coral carrying containers, oil tankers, cement, fertilizer and general cargo respectively sailed out to sea during the reported period. There were eight vessels viz. Mataquito, HS Marco Polo, Ever Result, Stolt Glory, Ocean Star, Pacific Vision, Hua Qiang and Noble Coral carrying containers, oil tankers and general cargo respectively currently at the berths. There was one ship namely EL Gurdabia carrying oil tanker sailed out to sea on Monday, while seven ships namely Mataquito, HS Marco Polo, Ever Result, Stolt Glory, Ocean Star and Spar Gemini carrying containers, oil tankers and general cargo are expected to sail on Tuesday. There were two vessels viz. Selay-5 and Star Mistral carrying chemical and coal due to arrive on Monday, while six vessels viz. Santa Rosa, YM Elixir, Café Marin, Posen, Fidias and Agria carrying containers, oil tankers and coal respectively are due to arrive on Tuesday.

PORT QASIM


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A cargo volume of 53,097 tonnes comprising 31,761 tonnes of import cargo and 21,336 tonnes of export cargo inclusive 1,607 loaded and empty containers (TEUs) was handled at Port Qasim during the last 24 hours on Monday. The total import cargo of 31,761 tonnes includes 14,150 tonnes of diesel oil; 5,200 tonnes of urea and 12,411 tonnes of containerised cargo. The total export cargo includes 21,336 tonnes of containerised cargo. There were two ships namely CV Hanjin San Diego and MT Khuran with containers and oil tanker sailed out sea on Monday morning, while another ship namely CV MSC Altamira with containers is expected to sail on the same day afternoon. A total number of five vessels viz. CV Hanjin San Diego, CV MSC Altamira, MV Anna Maria, MV Arundel Castle and MT Khuran currently occupied berths to load/offload containers, urea and diesel oil respectively during the last 24 hours. As many as eight ships namely Cape Marin, Safmarine Ngami, Al-Salam-II, Al-Soor-II, RHL Fiducia, Thorco Amber, Thor Breeze and Atlantic Glory with containers, diesel oil, general cargo, cement and chemical are currently at the outer anchorage of Port Qasim. There were two vessels with containers took berths at Qasim International Containers Terminal respectively on Sunday. There are seven ships namely CV Cape Marin, CV Safmarine Ngami, MT Al-Soor-II, MV RHL Fiducia, MV Thorco Amber, MV Thor Breeze and MV Atlantic Glory with containers, diesel oil, general cargo, cement and chemical due to arrive on Monday.


PPP calls for urgent National Assembly debate on government plan to lay off PIA employees July 22, 2014

The Pakistan People's Party (PPP) has submitted an adjournment motion, a calling attention notice and a resolution in the National Assembly. The PPP on Monday submitted an adjournment motion in which the party requested that the proceedings of the house be adjourned to discuss the urgent and serious matter related to the government's plan to lay off thousands of employees of Pakistan International Airline (PIA) through forced retirement or by exerting pressure." An adjournment motion has been submitted by Syed Naveed Qamar, Ghulam Mustafa Shah, Mohammad Ayaz Soomro, Ijaz Hussain Jakhrani and Ehsan ur Rehman Mazari. A calling attention notice regarding urban air pollution was submitted by Dr Azra Fazal Pechuho, Beelam Hasnain, Imran Zafar Leghari, Mir Shabbir Ali Bijarani and Mrs Shahida Rehmani. The text of the notice is as under: "According to a recent report released by the World Bank titled "Cleaning Pakistan's air", Pakistan's urban air pollution is among the most severe in the world and it is source of significant


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damage to human health and the economy. As this matter is of urgent public importance with serious environmental degradation and grave health implications, therefore it should be raised immediately on the floor of the House." A resolution, suggesting that all legislation on FATA should be undertaken by the legislative assemblies ie the National Assembly and/or the Senate is submitted by Dr Azra Fazal Pechuho, Dr Nafisa Shah, Ms Shazia Atta Marri and Syed Naveed Qamar.


TI Pakistan files case against illegal appointment of MD PIA July 22, 2014

IQBAL MIRZA

Transparency International Pakistan has filed a case against illegal appointment of Managing Director, PIA in the Supreme Court of Pakistan for action against PIA. Chairman, TI-Pakistan Sohail Muzaffar in his application has drawn the attention of the Chief Justice that TI-Pakistan has noted from the newspapers that the government has appointed a new Managing Director of PIA on July 14, 2014. He said it appears that the public office holders by and large are deliberately indulging in contempt of the Supreme Court of Pakistan orders given in judgement dated June 12, 2013 pronounced in Constitution Petition No 30/2013 (filed by MNA Khawaja Muhammad Asif). This appointment has not been processed in accordance with the law by Federal Commission for Selection of the Heads of Public Sector Organisations (FCHPSO), and therefore is not a proper appointment. TI-Pakistan has been advising the Pakistan government time and again about violation being committed by it and processing appointments directly and not through FCHPSO. Following are the relevant documents which are in the knowledge of Federal Government: 1. TI-Pakistan letter dated July 1, 2013 to Federal Minister of Information, titled "Discriminatory Requirements for Selection of Heads/Directors/Commissioners of various Public Sector Organisations not complying with Supreme Court of Pakistan Orders in CP 30 of 2013. 2. In National Assembly's 12th session held on June 6, 2014, following statement of Minister in-charge of the Establishment Division was made: (b) The Supreme Court of Pakistan vide judgement dated 12.06.2013 pronounced in Constitution Petition No 30/2013 filed by Khawaja Muhammad Asif, inter alia, directed the Federal Government for the constitution of Commission to ensure transparency in the appointments of heads of autonomous/semi-autonomous bodies, regulatory authorities, companies and corporations etc, established by or under the control of the Federal Government. Pursuant whereof, Establishment Division vide notification dated 22.07.2013 constituted Federal Commission for Selection of the Heads of Public Sector Organisations (FCHPSO) with the


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approval of the Prime Minister. Appointments against the vacant positions are being made in accordance with the procedure provided therein. Further, in this regard, it is submitted that the administrative Ministries of Companies, Corporations etc initiate a summary for the Prime Minister regarding Head of Organisation through Establishment Division, thereafter, approval of the Prime Minister. It is responsibilities of the Administrative Ministries/Divisions to fill that posts. 3. TI-Pakistan letter to the Prime Minister of Pakistan dated July 10, 2014, "Appointments of Heads in various Organisations, against Supreme Court Orders" in Khawaja Asif CP 30 of 2013 by passing FCHPSO. An indulgence of the court in the matter is prayed for declaring the appointment of Managing Director as illegal, as the Federal Government has directly appointed the Managing Director PIA, which is not processed by Federal Commission for Selection of the Heads of Public Sector Organisations (FCHPSO), by circumventing its own procedure, and also in contempt of the Supreme Court of Pakistan vide judgement dated June 12, 2013 pronounced in Constitution Petition No 30/2013. Indulgence of the Court is also prayed for declaring the appointments of more than 25 heads of autonomous/semi-autonomous bodies, regulatory authorities, companies and corporations etc as illegal, as the Federal Government has directly appointing the heads which were not processed by Federal Commission for Selection of the Heads of Public Sector Organisations (FCHPSO).


KP government allocates development funds for Swabi: Speaker July 21, 2014

The Speaker of the Khyber Pakhtunkhwa Assembly, Asad Qaiser, has said the provincial government has allocated hefty funds for the development of Swabi district, which include the construction of sports' complex, public park, medical college, women university, tehsil sports complex, establishment of PAF College, primary, high & higher secondary schools, upgradation & construction of colleges and construction of highways. He was addressing an Iftar-cum-dinner party arranged by the electorates of PK-35, Swabi. MNA Aqibullah Khan, Special Secretary Syed Waqar Shah, district and local office bearers of PTI were also present on the occasion. The speaker said the KP government has also decided the installation of 120 hand-pumps in big mosques, hujras and funeral prayers mosques. Taking the prevailing energy situation under consideration, he said the government had decided the conversion of tube-wells in the district on solar power. He said the work on direct power transmission from Tarbela to Swabi has been launched and the project would complete soon.



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KP government establishes IFA for development of industries July 21, 2014

The government of Khyber Pakhtunkhwa has established the Industrial Facilitation Authority (IFA) by merging the Small Industries Development Board (SIDB) and the Sarhad Development Authority (SDA) for the promotion of industries in the province. He said the new authority will play a major role in the development of industries in the province. The decision was taken at a meeting chaired by KP Chief Minister Pervez Khattak. In the meeting, the chief minister was agreed with the consensus decision for taking four members from the public sector and five from the private sector for the structuring of Industrial Facilitation Authority (IFA) for legislation, decision-making and administrative affairs of the new authority. Similarly, he said the chairman of the board of directors would be hired from the private sector. He praised the role of industrialists who in fact were waging jihad by creating employment opportunities for poor and unemployed people. He said on the pattern of recently announced mineral policy, the KP government was also working on the formation of a provincial industrial policy. He said that all hurdles in way of industrial development would be removed. He said the decision of the merger of SIDB and SDA and other industrial organizations was taken in the larger national interest to make it more attractive for industrialists, which he said was ample proof of the KP government's sincerity for industrial development in the province. He also directed making clear progress in the establishment of Technical Education and Vocational Training Authority (TEVTA) and representation of local industrialists in this regard. Secretaries of industries, labour, law and planning & development, authorities and representatives of the Khyber Pakhtunkhwa Chamber of Commerce & Industry (KPCCI), Special Assistant to the CM on Industrial Development Abdul Monim, Vice Chairman of Board of Investment & Trade (BoIT) Mohsin Aziz, Principal Secretary to the CM Mohammad Ashfaq Khan and Donors' Coordinator & Chairman of the CM Complaints' Cell Haji Dilroz Khan and others were attended the meeting.



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FPCCI lauds decision to sell shares of PIA, Fesco July 21, 2014

M RAFIQUE GORAYA

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Sunday lauded the decision of the government to sell shares of Pakistan International Airlines (PIA) with management control. "Privatisation is the integral part of the ongoing process of economic reforms, which must be carried out very cautiously," it said. FPCCI Vice-President Naima Ansari said that the sale of shares and transfer of management control of the bleeding state-owned entities (SOEs) would help government raise billions to reduce budget deficit besides saving Rs 500 billion per annum needed to keep these white elephants alive. Speaking to the business community of Islamabad, she stressed on transparency so that the case of steel mills could not be repeated, which kept privatisation process stalled for nine long years. Naima said that defaulters and developers should be kept away from the whole process and authorities should try to avoid charges of nepotism. The human and strategic cost must be carefully weighed, as some enterprises were vital for national security while others were critical for providing employment, she stressed. "The government needs to dispel the impression that international lenders force developing countries to sell national assets at throwaway prices," she added. Naima was of the view that the privatisation would not be of any help if the policy of supporting tax dodgers, assisting looters of public wealth and wastage of precious resources continued. "The country will soon have to carry the begging bowl again if funds rose from the sale of PIA and Fesco are wasted," she warned.



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Company News: Pakistan

Sunrays Textiles Mills Limited July 22, 2014

Sunrays Textiles Mills Limited (KSE: SUTM) was established in 1987 as a public limited company and is listed on Karachi Stock Exchange. Sunrays, owned by Mian Mohammad Ahmed as Chairman, is part of family group of companies, Indus Group of companies that is the leading textile group in Pakistan, operating in the sector of yarn manufacturing and cotton ginning. Indus group has been engaged in the textile industry since 1955. The company operates a spinning unit of 192,000 spindles in Muzaffargarh (40-km from Multan), which started commercial production in 1991. The main activity of the company is manufacturing and sale of yarn. Its product portfolio comprises of cotton yarns, mélange yarn, core spun lycra and slub yarn. In addition to manufacturing and exporting cotton yarn to Europe and other Asian countries, it also exports raw cotton, mainly to Japan. PERFORMANCE FOR 1H FY14 Although challenges continue to hover over the country's textile sector, SUTM's current performance on the whole has been on a downward curve. During the 9M FY14, net sales of Rs 3,555 million expanded by 7.1 percent year on year against net sales of Rs 3,320 million attained in the same period of last year. SUTM's gross profit dwindled by 25.9 percent year on year in 9M FY14 due to the company's cost of sales grew out-of-step with the top line growth, by 14.6 percent year on year. Subsequently, these costs consumed 87 percent of net sales in 9M FY14. The decline in the performance was brought about by the effect of non-responsiveness of yarn prices against the rise in cotton rates. Moreover, gross margins remained under pressure for most part of the year as gas load shedding in Punjab led to higher furnace oil consumption, resulting in higher cost of production thus eroding operational efficiencies. During the period, 9M FY14 there was worsening in yarn demand both of international and domestic market with reduction in rates and sudden appreciation in Pakistani currency against dollar that has not only hampered export competitiveness but also provided additional incentives to importers of imported yarn and fabric that resulted in reduction in sales rate and demand. Profit after tax clocked in at Rs 262 million due to increase in 'other income' and significant decline in 'other expense'. However, pressures have been witnessed with distribution costs and administrative costs rising by 7.7 percent and 16.9 percent year on year, respectively. The current ratio for the company lingered at 2.1 in 9M FY14. In view of at the SAIF's unconsolidated balance sheet, an assessment of current ratio and quick ratio shows that the difference between the two has broadened considerably over the years with the highest disproportion witnessed in 9M FY14. In 9M FY14, the inventory constituted for 44 percent of the company's current assets. This shows that the company possesses huge inventory stock.


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Moreover, there has been considerable increase of 76.6 percent year on year in current liabilities owing to increase in short-term borrowings. With a decline in the company's profits in 9M FY14, the EPS fell to Rs 38.08 from Rs 54.68, a decline of 30.4 percent for the same period in previous financial year. FUTURE OUTLOOK The textile industry of Pakistan is facing challenges to meet its global commitments attributable to obstacles like worsening law-and-order situation, energy crisis and sharp increase in power tariff. As a result, after the grant of GSP+ status by the EU, textile companies are unable to accelerate their production activities efficiently and export to compete in international market. SUTM is maintaining its focus on research and development activities. Numerous modernisation projects are in progress. In addition to increasing spindlage, other projects are focusing on replacement of old machinery with new energy efficient, highly productive and less labour intensive technology. Steps are also being taken to discover new customer base by stressing on market development as well as product development.

=================================================1HFY12 1HFY13 1HFY14 ================================================= Profitability ------------------------------------------------- Gross profit margin 15.0% 18.6% 12.9% Operating profit margin 11.8% 15.0% 9.1% Net profit margin 8.3% 11.4% 7.4% ROE 17.6% 19.3% 11.0% ROA 10.5% 13.7% 7.1% ------------------------------------------------- Liquidity ------------------------------------------------- Current ratio 1.75 2.66 2.10 Quick ratio 0.41 0.60 1.17 ------------------------------------------------- Turnover ------------------------------------------------- Total asset turnover 1.27 1.21 0.96 Fixed asset turnover 3.27 3.68 3.13 ------------------------------------------------- Market ------------------------------------------------- EPS - Rs 37.23 54.68 38.08 =================================================


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Cotton and Textiles: Pakistan

Cotton market: prices fall on slack buying July 22, 2014

Rates fall on the cotton market on Monday as leading buyers kept on the sidelines because they have already bought to meet their urgent needs, dealers said. The official spot rate down by Rs 100 to Rs 6,050, they added. The prices of seed cotton in Sindh and Punjab were same at Rs 3100-3200, they said. In the ready session, over 3000 bales of cotton changed hands between Rs 6150-6300, they said. Cotton analyst, Naseem Usman said that prices fell on slow demand by mills and spinners. The good news is that China may start importing of cotton from Pakistan, some brokers said. Market sources said that both mills and spinners were expecting that prices to come down in days to come as supply position will improve with quality, as well. Report showing that the Zhengzhou Commodity Exchange will raise margin requirements for its cotton futures contract from the August 8 settlement to manage market risks, the exchange said. The minimum trading margin will be lifted to 8 percent from 5 percent, the exchange said in a statement issued late on Friday. The following deals reported: 1200 bales of cotton from Mir Pur Khas sold at Rs 6025-6100, 2000 bales from Sanghar at the same rate, 1000 bales from Shahdad Pur, 1000 bales from Tando Adam at the same rate, 200 bales from Sahiwal, same figure from Haroonabad at Rs 6150 and same number from Burewala at Rs 6175, dealers said.

=========================================================================== The KCA Official Spot Rate for Local Dealings in Pak Rupees --------------------------------------------------------------------------- FOR BASE GRADE 3 STAPLE LENGTH 1-1/32" ---------------------------------------------------------------------------MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL =========================================================================== Rate Ex-Gin Upcountry Spot Rate Spot Rate DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 19.07.2014 =========================================================================== 37.324 Kgs 6,050 155 6,205 6,305 -100 --------------------------------------------------------------------------- Equivalent --------------------------------------------------------------------------- 40 Kgs 6,484 155 6,639 6,746 -107 ===========================================================================


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Cotton growers likely to achieve 10.5 million bales' target July 22, 2014

Growers in Punjab have brought 5.61 million acres of land under cotton sowing this year out of which it is expected to achieve the target of 10.5 million bales. This was stated by Punjab Agriculture Minister Dr Farrukh Javed while chairing the meeting of the Cotton Crop Management Croup which was also attended by the Secretary Agriculture Punjab Ali Tahir, Cotton Commissioner Dr Khalid Abdullah, Director General Agriculture (Extension & AR) Dr Anjum Ali and other high-ups. According to the information reached here, it was also attended by the progressive growers and officials from Chief Engineers Canals of Multan, Bahawalpur, Dera Ghazi Khan and Faisalabad zones. The meeting observed that overall situation of the cotton crop is satisfactory but growers should carry out daily monitoring of the crop and twice a week pest scouting, the committee advised the cotton growers. The meeting also advised if farmers found attack of pest above economic threshold then spray of pesticide should be carried out in consultation with local agricultural department's experts. Director General Agriculture (extension) Dr Anjum Ali speaking on this occasion said farmer training programmes are arranged at village level to disseminate latest technology about BT and non-BT cotton. He said till now 346 teams have trained 965,639 growers from 10,127 villages. The department also distributed 1.8 million copies of literature about latest production technologies. The meeting was also informed that the department had collected 3,615 samples of pesticides to check substandard and fake pesticides in the province during the month of 2014. The department registered cases against 85 persons while confiscated 31,303 kilograms of substandard pesticides worth Rs 5.8 million. Similarly, the department also launched a movement against adulteration in fertilizer and collected 1,553 samples out of which 72 were found substandard and fertilizer worth 2.48 million were confiscated. Speaking on this occasion Secretary Agriculture Punjab Ali Tahir said the government is making effective planning for production increase of important crops such as cotton, wheat and paddy. He said the department has been given clear targets for increasing per acre yield so as to ensure prosperity of the growers and strengthening of the national economy.



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Agriculture and Allied: Pakistan

Balochistan accuses Sindh of stealing its share of water July 22, 2014

MUSHTAQ GHUMMAN

Balochistan has accused Sindh of stealing its share of water from Rabi season but Indus Water System Authority (Irsa) galvanised into action only after the crisis deepened, well informed sources told Business Recorder. Irsa had received complaints from Sindh and Balochistan about discrepancies in water discharges and their measurement at designated inter-provincial water distribution sites, sources added. The sources said Chairman Irsa Muhammad Naseem Bazai, who is also Member Balochistan along with his colleagues inspected Tarbela and Mangla water distribution and measurement sites and found no inaccuracy but water released from the reservoirs is not reaching its recipients fairly. The sources said, Irsa Chairman dispatched an independent fact-finding team comprising KPK Member, Raqib Khan and Secretary Irsa, Khalid Idrees Rana visited Garang regulator at provincial border and measured flows from the Kirthar canal at 2,105 cusecs as opposed to Balochistan stipulated share of 2.400 cusecs for that point. The team is to submit its report to the Authority which will recommend a future line of action to deal with the situation. An official told Business Recorder that Irsa was told that inflows from Tarbela and Mangla have declined substantially due to which neither Sindh is getting its due share nor is it releasing Balochistan''s due share. The official argued that a substantial water released from reservoirs did not reach its destination and this issue was swept under the carpet for two weeks. However, when the crisis deepened Sindh and Balochistan approached the federal government and sought a rectification. In March, at a meeting of Irsa''s Technical Committee, Sindh and Balochistan accused each other during the meeting with the latter alleging that Sindh had stolen its water during the Rabbi season. Irsa chairman assured Balochistan province that an inquiry was under way and the charge of water theft would be addressed. He vowed that Balochistan would be provided its entire share in Kharif season. Another official confirmed that Sindh is not releasing due share of water to Balochistan but the quantity of missing water is yet to be calculated. The Balochistan government maintains that the province is getting 300 cusecs less water than its approved share. The province is also being deprived of 1500 cusecs of water at the Pat Feeder canal. The Balochistan government further accused Sindh of releasing 30,000 cusecs unauthorised flows downstream from the Kotri barrage but not giving Balochistan its due share.


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KPK is also pressing the federal government to amend the Irsa Act 1992 so that the province can get its lost share. Sindh and Punjab have opposed the proposal but Balochistan has extended support to the KPK government, arguing that all provinces facing injudicious distribution of water resources maybe compensated. The Indus River System Authority (Irsa) Act was promulgated in 1992. The object of the Act was to establish a water regulatory authority for regulating and monitoring the distribution of water resources of the Indus River in accordance with the Water Apportionment Accord among the provinces. The provincial governments argue that in accordance with the provisions contained in para-2 of the Apportionment Accord, 1991, 117.35 MAF water from the Indus River is distributed among all the provinces as follows: Punjab''s share would be 47.7 per cent water ie l 55.94 MAF, of which 37.01 MAF in Kharif and 18.87 MAF in Rabi. The share of Sindh was fixed at 41.5 per cent ie 48.76 MAF of which 33.94 MAF for Kharif and 14.82 MAF in Rabi. Khyber Pakhtunkhwa''s share was fixed at 8.78 MAF of which 3.48 MAF in Kharif and 2.3 MAF in Rabi - the quota of KPK Government canals: 1.80 MAF in Kharif and 1.2 MAF in Rabi. This constitutes 7.50 per cent share for the province in total available water resources. The share of Balochistan was determined at 3.87 MAF of which 2.85 MAF is for Kharif and 1.02 MAF for Rabi. This implies that the share of Balochistan was fixed at 3.3 per cent of the total allocation. The Balochistan government maintains that the province has no separate canal to extract its share from the barrage and all supplies to the province are regulated by Sindh through their own system. Due to control over the regulation of system at barrages as well as in the parent channels in their territory, Sindh often prefers to fulfil its own demand resultantly Balochistan suffers from shortage of irrigation supplies during peak seasons. While in case of rains entire flood supplies are diverted to Balochistan which cause inundation/serious destruction as was experienced during 2010 and 2012. Besides, Irsa authorisations are not implemented in letter and spirit and Balochistan faces short supplies from the Indus every year. "Since Balochistan is aggrieved due to injudicious distribution of power resources, as such any legislation/ amendments in the Irsa Act that may secure the interests and water rights of the province would be supported for promulgation by Balochistan. Irsa may also be empowered to implement its decisions by the provinces," said Additional Secretary (technical).


Climatic condition may affect sugar production July 22, 2014

Sugar production might face a crisis next year due to adverse weather conditions. An official of Sugar Growers Association said: "The Meteorological department has predicted hot and humid weather in the coming months due to which extreme drought conditions are expected in the country's south, particularly in Sindh. Whole country could face 30 to 60 percent less monsoon this year and this will affect the next year's sugar production." Besides, the farmers are dissatisfied as their payments were being delayed, he added. He said: "Around Rs 500 million are outstanding against sugar millers and, as such, farmers are


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compelled to stop next season's sugarcane farming. "Agriculture industry in Pakistan is likely to face unprecedented crisis due to hike in the prices of fertilizer and farmyard manure and unavailability of basic and natural resources to villagers and farmers," they complained, adding that millers did not pay the growers' amount in lump sum. Meanwhile, sources in Pakistan Sugar Mill Association (PSMA) said that climatic conditions played an important role in sugar's production as the buffer production of 5.33 million tons, this year, was due to the favourable climatic conditions and high prices received by the growers, last year. "As a consequence of increased support price of sugarcane, we have surplus of over one million tons and without disposing it of it would not be impossible to make remaining payments of sugar growers," he added.


Daily trading report of PMEX July 22, 2014

On Monday at Pakistan Mercantile Exchange (PMEX) value traded was recorded at PKR 2.315 billion. Number of lots traded was 13,310 and PMEX Commodity Index closed at 3,080. Major business was contributed by crude oil amounting to PKR 1.7 billion, followed by gold (PKR 527 million) and silver at PKR 80 million, up 44 percent.


Punjab government adopts policy of horticulture promotion: Shahbaz July 22, 2014

Punjab Chief Minister Shahbaz Sharif has said that the Punjab government has adopted the policy of promotion of horticulture in the province, including Lahore, and beauty and attraction of newly-executed infrastructure projects has been enhanced through horticulture. He expressed these views while presiding over a meeting here on Monday, which reviewed measures for the promotion of horticulture in the province, Greater Iqbal Park project and setting up of Butterfly House in Jallo Park and provision of more recreational facilities in the province. Provincial Minister for Housing Tanvir Aslam Malik, Members Provincial Assembly Mohsin Latif, Ramzan Siddique Bhatti, Vice Chairman PHA Iftikhar Ahmad, Vice Chairman LDA Kh Ahmad Hassaan, Secretary Housing, Commissioner Lahore Division, Director General PHA and concerned officers were present. The CM said measures are being taken for the upgradation of parks in the province and maximum recreational facilities are being provided in the parks for the benefit of citizens. He


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also said the project of Greater Iqbal Park and the setting up of Butterfly House in Jallo Park are a part of this programme. "Greater Iqbal Park project will highlight culture and historical heritage of Lahore city while the historical buildings of Lahore will be restored to their original condition under this project. Moreover, landscaping will also be carried out to enhance the beauty of the city besides international standard recreational facilities will be provided to the visitors," he added. He said setting up of Butterfly House in Jallo Park will be a beautiful addition and will result in promotion of recreational and tourist facilities. He further said infrastructure projects executed in Punjab have been made attractive through horticulture and this process will be continued in future as well. "Azadi Chowk Flyover and other newly-completed infrastructure projects will also be beautified through horticulture. Highways can be made beautiful through plants, fruit trees and colourful flowers. An effective strategy has been adopted for the promotion of horticulture in the province as it helps control environmental pollution besides increase beauty of development projects," he added. PHA Vice Chairman Iftikhar Ahmad informed the meeting that the first Butterfly House of its kind in Pakistan is being set up at Jallo Park where butterflies from all over the world will be kept and the temperature of the Butterfly House will also be maintained at the international standard for taking proper care of the butterflies.


PSM gets third instalment of Rs 2.85 billion July 22, 2014

Ministry of Finance, Government of Pakistan, Islamabad, has released the sum of Rs 2.85 billion to Pakistan Steel Mills (PSM) on Monday. The amount is the third instalment of the first tranche of the approved restructuring package of Rs 18.5 billion from the Government of Pakistan. Furthermore, salary for forty five (45) days ie (Full May and Half June) has been disbursed among the employees of PSM. Moreover, pay slip for the month of May-2014 has been issued to all the employees of Pakistan Steel. It is pertinent to mention here that L/C''s for procurement of raw materials will be opened and the remaining amount will be utilised for payment of gratuity, capital repairs and utility bills ie SSGC, KW&SB and K-Electric bills etc. Pakistan Steel management is confident that with the release of the third tranche of the approved package, production of the mill would start improving to achieve the capacity utilisation targets set by Government of Pakistan.-PR



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Chicken meat, eggs: directives to announce subsidised rates prominently July 22, 2014

Chief Minister's Special Assistant on Livestock Chaudhry Muhammad Arshad Jutt has directed the high-ups of the livestock department to display banners and also make announcement on loudspeakers in all Ramazan bazaars about availability of chicken meat and eggs on subsidised rates. He said to facilitate the masses, department is providing eggs with a Rs 12 per dozen subsidy and chicken meat with a subsidy of Rs 20 per kilograms in these bazaars. He advised that it is the duty of the veterinary officers of the concerned area to ensure availability of fresh chicken meat and all officers should work with passion of patriotism. Jutt made these observations during his visit to different Ramazan bazaars here and in Muzaffargarh and Okara districts. He inspected the quality of chicken meat, beef and mutton and also inspected the weighing scales. Special Assistant to the Chief Minister said that all district livestock officers and deputy district livestock officers were visiting Ramazan bazaars to perform their duty of monitoring and ensuring subsidy and quality of livestock products. He said that he is receiving reports from all districts about availability of chicken meat and eggs and their sale on daily basis. Chaudhry Muhammad Arshad Jutt expressed his satisfaction over availability of chicken meat and eggs in all Ramazan bazaars.



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Taxation: Pakistan

Asad assigned ''look-after'' charge of FBR top slot July 22, 2014

Shahid Hussain Asad (IRS/BS-22), Senior Member Inland Revenue Policy Federal Board of Revenue (HQ), Islamabad has been assigned the look-after charge of the post of Chairman, FBR during the leave period of Tariq Bajwa, Secretary, Revenue Division/Chairman, FBR from July 18, 2014 to August 14, 2014. According to an office order issued by the FBR here on Monday, Minister for Finance Ishaq Dar has given approval to the decision to allow Shahid Hussain Asad to look-after charge of the post of Chairman FBR. Asad, a BS-22 officer of Inland Revenue Service is actively working as FBR Senior Member IR Policy. He was key member of the team, which proposed policy measures introduced through Finance Act 2014. Shahid has also worked as FBR Member Inland Revenue Operations, Director General Intelligence and Investigation Inland Revenue FBR and at key positions in the field formations of the Board. As head of the intelligence agency of the FBR, he introduced the concept of ''Red Alerts'' preventing fraudulent sales tax refunds to the tune of billions on monthly basis. Similarly, he also started first-ever exercise of documentation of potential persons across the county. Major policy reforms were initiated during his tenure which were appreciated by business and trade circles. He also worked as Additional Secretary Ministry of Production in the past.


Bid to smuggle 60,000 litres of oil foiled: two held July 22, 2014

Directorate of Customs Intelligence and Investigation on Monday claimed to have foiled an attempt to smuggle 60,000 litres of oil near Toll Plaza Hyderabad. According to official sources, the smuggled oil was on its way to Interior Sindh via Hyderabad and was intercepted at Toll Plaza. The market value of smuggled oil and tanker used for transportation of oil is estimated to over Rs 10 million. Sources said that department had taken two persons into custody during said operation and added that legal proceeding under the Custom Act, 1969 were underway.



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Vague rules: FBR unable to collect FED on chartered flights July 22, 2014

The Federal Board of Revenue (FBR) is reportedly unable to collect proper Federal Excise Duty (FED) on chartered flights, due to ambiguity in prescribed rules; it is learnt here on Monday. According to sources, field formation despite having directives to collect FED on chartered flights by the FBR remained unable to make it possible, due to ambiguity in Table-II of the First Schedule to the Federal Excise Act, 2005. In Table-II of the First Schedule, the FBR has imposed 16 percent FED and Rs 25 on the services provided or rendered in respect of travel by air of passenger within the territorial jurisdiction of Pakistan while services rendered for international journey to or from Pakistan has cash slabs for different classes with standard rate of 16 percent FED. Sources said that cash slabs were causing to create problems for field formation to collect proper FED on chartered flights. Keeping this problem in view, the board has now made it clear that FED on chartered flights shall be charged at 16 percent of the total charges. They further said that all concerned tax offices had also been directed to co-ordinate with the Civil Aviation Authority (CAA) to ensure that FED on chartered flights was properly charged and paid.


International air travellers/passengers: FBR urged to grant WHT exemption to certain categories July 22, 2014

The Board of Airline Representatives in Pakistan (BARIP), Karachi has urged the Federal Board of Revenue (FBR) to exempt certain categories of international passengers/travellers from payment of four percent withholding tax that include infants, transit passengers, diplomats, airline staff/supernumerary crew and Hajjis from July 1, 2014-15. In a latest communication to the FBR here on Monday, BARIP has raised the issues pertaining to withholding tax and Federal Excise Duty (FED) on air tickets. According to the BARIP, an emergency meeting of the BARIP was called to discuss the application of the newly levied withholding tax and enhanced Federal Excise Duty (FED) through Finance Act 2014. The issues were extensively discussed and the airline delegates unanimously forwarded five major recommendations to the FBR. Firstly, the rules as applied in case of Federal Excise Duty should be followed where reporting is of 45 days, this is because the sales report for the 1st to 15th of the month is received on the 30th of the month and 16th to 30th period is reported on the 15th of


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the following month after completion of the same. The filing of the report can be submitted and the comprehensive statement provided, but individual filing or providing the challan is not possible. Secondly, the rate of 4 percent withholding tax to be applied to the net fare and not gross fare, as the gross fare includes many other taxes and surcharges and will amount to double taxation if the withholding tax is applied on gross fare. Thirdly, tax to be applied only on tickets issued in Pakistan from July 1, 2014 for travel on or after July 1, 2014 ie it will not apply on tickets issued prior to July 1, 2014 for travel on or after July 1, 2014. Fourthly, exemption be given to infants, transit passengers (within 24 hours), diplomats, airline staff/supernumerary crew and Hajjis. Fifthly, the Advance Tax to be collected and deposited by Uplifting Carrier with FBR and not by issuing Carrier. This will assist FBR/LTU to audit and reconcile the relevant data. The FBR should review its tax policy in the light of the issues raised by the BARIP and incorporate the said amendments in the tax laws, BARIP letter added. Through an income tax circular, the FBR has said that the section 236L has been introduced through Finance Act, 2014 which provide for collection of advance tax on air tickets of classes other than economy for journeys originating from Pakistan. Every airline issuing tickets for journey originating from Pakistan shall be the prescribed withholding agent for this section. Advance tax shall be collected in the manner air ticket charges are collected or charged. The prescribed person/withholding agent under this section shall be required to file withholding statements under section 165. The advance tax collected under this section shall be adjustable against the tax liability of the passenger at the time of filing of return. The mode, manner and time of collection under this section shall be separately prescribed in the rules, FBR added. It is worth mentioning that the FBR has already issued instruction to the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to ensure that the amount of the FED is properly charged, collected and paid by the airlines from July 1, 2014. Effective July 1, 2014, the rates of FED on domestic and international travel by air have been revised as follows: Travel by air within Pakistan: Long routes (over 500 kms), Rs 2,500; short routes (up to 500 kms, excluding socio-economic routes) revised rate of Rs 2500 per passenger and in case of socio-economic routes (along Balochistan coastal belt), revised rate of the FED is Rs 500 per passenger. Travel by air of passengers embarking on international journeys from Pakistan: Economy and economy plus, (previous rate Rs 3840), revised rate of the FED is now Rs 5,000 per passenger and club, business & first class (previous rate Rs 6840), and the revised rate of the FED Rs 10,000 per passenger.


USAID projects: EAD, FBR to discuss duty exemption July 22, 2014

The Economic Affairs Division and the Federal Board of Revenue (FBR) will discuss the issue of streamlining sales tax and customs duty exemption on imports and purchases made for


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USAID projects. Sources told Business Recorder here on Monday that the Economic Affairs Division has asked the FBR to convene a meeting on July 23 (Wednesday) to discuss the tax exemptions and reimbursement process with the USAID. The meeting is expected to be held at the Economic Affairs Division and attended by senior FBR officials and representatives of the USAID in Pakistan.



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Fuel and Energy: Pakistan

Lesco, Discos directed to redress complaints July 22, 2014

The government has directed all the distribution companies to redress complaints regarding local tripping of electricity promptly and more efficiently so that people may not suffer. In the light of these directions. According to an official spokesman Secretary Ministry of Water and Power, Nargis Sethi gives target of 14 to 20 days to solve problem of breakdown of Bata Harbanpura 132KV line, which normally required more than two months and 15 days. Thus 40% work has been completed in five days. He said Lahore Electric Supply Company (LESCO) installed new powerful transformer of 250MVA power at Band Road Grid Station, Lahore in 9 days instead of 3 weeks; whereas to complete this work of replacing 160MVA transformer with 250MW required 30 days normally. Now with the up-gradation of the aforesaid transformer supply of electricity will be improved in the area of Sbza Zar, Shadman Gulsha-e-Ravi, Qurtaba Town, Rewaz Garden and adjacent area of Saidpur Grid station. Nargis Sethi along with Chief Executive Officer (CEO) Lahore Electric Supply Company (LESCO) and other officials inspected the under construction 132KVA line and directed to complete it as soon as possible. Completion of this line will decrease load on New Koat Lakhpat Circuit and load shedding will be decreased significantly. In this circuit load shedding was due to overloading in the areas of Defence Grid and Ghazi Grid. This circuit consists of Fateh Ghardh, Batapur, Manwan Ghazi, Askri 9, Askri 10, Mughal Pura, Ram Garh, Ghadhi Shah, Railway Colony, Shimla Pahari and areas of Davi Road. The spokesman of Ministry of Water and Power further told Lahore Electric Supply Company (LESCO) would procure new transformers to overcome shortfall of transformers. In this regard Lahore Electric Supply Company (LESCO) has ordered procurement of 2,854 new transformers of 10KVA, 100KVA and 200KVA.


POL prices may remain unchanged July 22, 2014

ABDUL RASHEED AZAD

The government may not change the petroleum products prices in the coming month, which as per international trends are expected to increase in the range of Rs 1.4 per litre to Rs 4.5 per litre, it is learnt. According to sources, Oil and Gas Regulatory Authority (Ogra) is likely to suggest an increase of Rs 1.4 per litre in petrol price, Rs 1.56 in High Speed Diesel (HSD) and Rs 4.5 per


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litre in High Octane Blending Component (HOBC) price, while Light Diesel Oil (LDO) and kerosene oil is likely to reduce by Rs 1.28 per litre and Rs 1.35 per litre respectively. "The government will keep petrol and HSD price unchanged as these products are being used by the masses and transporters and would review the prices of the other products," an official of the Petroleum Ministry said. The official said, "On the basis of our current oil shipments, I can say that a little increase is expected in petrol price, while prices of all other petroleum products will downslide. Keeping in view the government's decision of May 31, I can confirm to you that the government will maintain the petrol price at current level during next month as last month it slashed Petroleum Levy (PL) and did not increase the POL prices so this time the expected reduction in oil prices will be adjusted in PL". The government during current month on July 1 has also rejected a summary forwarded by Oil and Gas Regulatory Authority's (OGRA) seeking increase in the prices of petroleum products for the month of July and decided to maintain the rates by providing a subsidy of Rs 510 million. Last month, the regulatory body worked out an increase of Rs 0.84 per litre in the price of petrol, Rs 3.63 per litre in the price of High Octane Blending Component (HOBC), Rs 0.30 per litre in kerosene, Rs 0.27 per litre in high speed diesel and Rs 0.22 per litre in light diesel. It may be mentioned here that the government also provided a subsidy of Rs 1.78 billion to keep petroleum prices unchanged for the month of June, however, kerosene oil price was reduced from Rs 98.07 to Rs 97.40 per litre with a decrease of Rs 0.67 per litre. At present different petroleum products are being sold on following rates: Petrol at Rs 107.97 per litre, high speed diesel at Rs 109.34 per litre, light diesel oil at Rs 94.13 per litre, HOBC at Rs 134.63 per litre and kerosene oil at Rs 97.40 per litre. On account of Petroleum Levy (PL), the government was collecting Rs 10 per litre on petrol, which on June 1, 2014 reduced to Rs 8.79 per litre, Rs 14 on HOBC which now came down to Rs 11.41 per litre, Rs 6 on kerosene and Rs 8 on HSD per litre which now reached Rs 6.29 per litre. Moreover, the government is also collecting General Sales Tax (GST) at 17 percent on the sale of petrol and petroleum products, which is one of the top revenue sources for the federal government.



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Markets

RECORDER REPORT: KSE-100 morning update Monday, 21 July 2014 10:02

Posted by Shoaib-ur-Rehman Siddiqui

KARACHI: On Monday morning KSE-100 Index was at 30404.30 with a positive change of 179.41 and volume of 44,490,500 shares.

High and Low were 30405.28 and 30224.89 respectively. Total volume traded in the market was 50,830,550 shares with 191 total traded companies out of which 112 were up, 66 were down and 13 were unchanged.

Construction and Materials (Cement) was the top traded sector with total traded volume of 27,669,000 shares. It was followed by Commercial Banks with a total traded volume of 7,667,700 shares.



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BR Research: All

BoP stability masks concerns July 22, 2014

BR Research

Welcome to the shores of stability. With full-year balance-of-payment (BoP) numbers finally released yesterday, Pakistan has now officially docked safely into the yard. Thanks to a series of external transactions - Eurobond sales; secondary offerings of UBL and PPL; program disbursements from the World Bank and ADB; monies from the KSA; and partial inflows from the telecom auction - the boost in capital account helped offset the weaknesses in the current account and helped overall BoP find stability in the year ending June 2014. The current account deficit stood at 1.18 percent of the GDP, at $2.9 billion, as against 1.06 percent in FY13. Exports grew by a marginal 1.5 percent in FY14 compared to a growth of 0.3 percent in the year before. However, the imports growth outpaced the rise in exports - increasing by 3.8 percent in FY14, from a modest fall of 0.5 percent in the year before. Meanwhile, export of services slipped to $5.2 billion from $6.7 billion as CSF inflows fell from $1.8 billion in FY13 to $1.05 billion in FY14. And these are the areas where the risks exactly lie. For one, CSF inflows are expected to remain elusive following the US withdrawal from the region. Second, the growth in exports isn just going to take off, unless the much-needed reforms are rolled out soon in the energy sector, and there are improvements in law and order and the security situation. Media already reports that had it not been for GSP+, textile exports would have tapered off, taking the total exports down along with it. On the flipside, imports might see an uptick if global oil prices strengthen on account of the crises in the Middle East, though so far prices have been contained. Countering these risks are the ever-increasing remittances that stood at about 83 percent of net balance on trade and services, from 70 percent in FY12 and about 30-40 percent before FY08. Encouragingly, despite the risks to remittances stemming from any regional or global slowdown, remittance inflows are still seen on the upside as there are many more informal channels to be blocked that will pave the way for official remittance inflows. Still, relying solely on remittances is akin to putting all your eggs in one basket, and exposing the current account to the risks of black swan events. The government seems to be relying on continued support from the IMF programme disbursements for the current fiscal year. But even more than that is its reliance on external loans - including the Sukuk transaction - and foreign direct investment. According to the memo information of IMFs third review, FDI is projected at 1.7 of the GDP in FY15, which roughly translates into $4 billion. Given the recent performance in FDI, this seems to be a tall projection. Looking ahead, concerns loom over future repayments of external loans, as the ratio of external


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debt servicing to forex earnings (exports and remittances) has been on a rise. Highlighting these risks in its recent released third quarterly report, the central bank said Pakistan needs to reduce its current account deficit to ensure that future debt servicing does not drawdown the countrys forex reserves. The SBP added that the servicing capacity of Pakistan has been deteriorating in the past few years and that the pressure may increase as repayments of the re-scheduled Paris Club debt come online from FY17. So, while the ship has docked safely for now, the captain must ensure that structural weaknesses are resolved before it sets sail again. Whether the captain will be able to strengthen the ship depends on whether he will be able to save it from falling into someone elses hands.

BRICS bank: more than a posture? July 22, 2014

BR Research

The establishment of the New Development Bank (NDB) and the Contingent Reserve Agreement (CRA) was anticipated since the announcement of intent during the BRICS annual meeting last March. Back then, too, policymakers and commentators on global affairs were aware of the reasons leading to the decision. However, with the agreement now signed, the BRICS have conveyed that they mean business. According to the Fortaleza Declaration of the sixth BRICS summit, the bank is to have an initial authorised capital of $100 billion, with an initial subscribed capital of $50 billion to be shared equally by the founding members. The first chair of the Board of Governors is to be from Russia, the first chair of the Board of Directors from Brazil, and the first President from India. While the NDB will be located in Shanghai, an African regional centre will be established with South Africa as the headquarters. The Bank is being set in recognition of financing constraints faced by BRICS as well as other developing economies o address infrastructure gaps and sustainable development needs. Further, the commitment of $100 billion to the CRA is meant to help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. Based on the idea behind the IMF, the CRA will act as a framework for liquidity injections through currency swaps in response to actual or potential short-term balance-of-payment pressures. These two agreements are receiving mixed responses globally, with apprehension from the developed world (particularly US) becoming more visible by the day. Objections have been raised about the practicality of an institute to be governed by a diverse set of nations.


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Some of the highlighted issues include, for example, currency of denomination for transactions, legal system to be followed, the process for procurement decisions, and doubts over BRICSs commitment to human rights (particularly given the recent Russian skirmishes in Ukraine and Chinas human rights record). On the other hand, the declaration highlights that despite diversity, the nations are committed towards a productive association. Some analysts, including the Nobel laureate and ex-Chief Economist of the World Bank, Joseph Stiglitz, had already welcomed the decision when announced last year, recognising the need for infrastructure development for a rising population represented in the BRICS geography. More importantly, the BRICS have expressed a stern reminder to the global comity of nations on inequalities in systems of international governance, as practiced in multilateral agencies, mainly the World Bank and the IMF. While structural reforms that allow greater democracy in both these global financial institutions have long been in the offing, the establishment of the NDB and CRA serve as strong signals to the developed world to adopt a more pluralistic stance on global affairs.

Askari Bank turns it around July 22, 2014

BR Research

Clichéd as it may sound, when theres a will theres a way. And that is precisely what Askari Bank Limited (AKBL) has achieved ever since Fauji Foundation took over the Rawalpindi-based banks reins last year. From the depth of losses running in billions, AKBL has started yielding the fruits, sooner than most had expected, and the 1H CY14 financials are a testament to that. Yes, the game changer remained the reversal in provisioning expense--but the betterment in performance was not restricted to just that. The bank had shown signs of attaining cleaner books last quarter with a much-improved infection ratio around 16 percent, compared to as high as 20 percent in CY13. The bank, in a rigorous drive to get rid of the bad loans, made heavy bookings earlier and is now reaping gains. What is also surprisingly refreshing; it is the impressive top line growth and an even more impressive net mark-up income. Detailed accounts are not available yet to comment, but 1Q CY14 had shown signs of better asset-liability management, with an unusually high ADR in todays banking environment. The deposit growth had slowed, but that was also a reflection on the banks drive to rationalise deposit-base and mobilise core deposits. The gross spread ratio has improved drastically despite the adverse impact of minimum rate on monthly deposits. The CASA ratio was on its way up, and is likely to have further improved, as the numbers suggest. Non-core income continues to provide a good hand to the bottom line, with the growth increasing every passing quarter. The banks strategy is pretty evident from its initial steps. AKBL is looking towards a rationalised


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deposit-base, improved ADR, good coverage of NPLs--bettered bottom line would just be the outcome.

============================================================ Askari Bank Limited (Unconsolidated P&L) ============================================================ Rs (mn) 1HCY14 1HCY13 chg ============================================================ Markup Earned 15,899 13,618 17% Markup Expenses 10,379 9,767 6% Net Markup Income 5,520 3,851 43% Provisioning/(Reversal) (135) 7,147 Net Markup Income after provisions 5,654 (3,296) Non Mark-up/Interest Income 2,849 1,701 67% Operating Revenues 8,503 (1,595) Non Mark-up/Interest Expenses 5,484 4,740 16% Profit Before Taxation 3,019 (6,335) Taxation 879 (2,228) Profit After Taxation 2,140 (4,107) (Loss)/earnings per share 1.70 (3.26) ============================================================


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Siemens Pakistan - finally some recovery July 22, 2014

BR Research

A look at the firms financial performance for the nine months ending June 30, 2013 might not show that Siemens Pakistan Engineering Company Limited has been in difficult time in recent years; revenues and profits have been steep decline since 2009. Net turnover and annual orders have halved since 2009, while the firm has moved from annual profit of over a billion rupees in 2009 to a loss of almost a million for the year ended September 30, 2013. Many reasons have been contributing to the companys dwindling performance over the years. The most recent one, which severely impacted the firms profitability in 2013, was the termination of contract worth of Rs1.992 billion by the Civil Aviation Authority (CAA) relating to power supply and telecommunication network at New Benazir Bhutto International Airport, Islamabad, due to delays on the project. Another important factor in curtailing profits in recent time has been Siemens employee separation costs due to the restructuring, rightsizing, portfolio adjustment activities. Besides these, the firm has also been facing delays in projects in its various business segments. Siemens Pakistan has four core business activities: Industry sector, Energy sector, Infrastructure and Cities sector and Healthcare sector, of which energy sector has been the forerunner of whatever growth the company has witnessed in the past 4-5 years. Even today, when the firm has registered growth in profits in its quarterly profits, it continues to be plagued with lower order intake and turnover. During the nine month period, Siemens Pakistans margins have improved considerably precisely due to a reduction in marketing, selling and finance cost as well as the withdrawal of the termination letter by CAA. Though the company has gotten the contract for the work at New Benazir Bhutto International Airport, Islamabad again, it is still a long way from where it was in 2008-2009 in terms of revenues as well as earnings.

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Siemens Pakistan Engineering Co Ltd. ======================================================================= Rs (mn) 9M-2014 9M-2013 YoY 3M-2014 3M-2013 YoY ======================================================================= Net turnover 7,384 9,777 -24% 2,484 3,799 -35% Gross profit 888 1,093 -19% 440 376 17% Marketing & selling 259 544 -52% 130 161 -19% General administrative 143 119 20% 45 36 24% Operating profit 537 490 10% 311 180 73% Net finance cost 195 176 11% 62 82 -24% Profit after tax 180 164 10% 132 34 291% EPS (Rs/share) 21.81 19.84 10% 16.07 4.10 292% GP ratio 12.0% 11.2% 17.7% 9.9% NP ratio 2.4% 1.7% 5.3% 0.9% =======================================================================


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Crime Records

Khairpur: Over 2000 kg of hashish recovered KHAIRPUR: The police seized huge quantity of high quality hashish and arrested two smugglers today. According to details, the police stopped a suspected Karachi bound container coming from Punjab at Babarlu Bypass in Khairpur.

Over 2000 kg of hashish hidden in cartons was recovered and two accused involved in the massive smuggling bid were arrested.

5 dacoits held in Pakpattan PAKPATTAN: Police on Sunday arrested five alleged dacoits here. On a tip-off, the police raided at Chowk Ali Bin Sultan at Chak 16-SP and arrested Muhammad Yar, Allah Ditta, Nawab Ali, Mahmood Ahmad and Waheed.

The police also recovered three pistols, two guns, 10 bullets and five cartridges from them. The police have registered a case.

Police arrest 20 armed suspects in Peshawar search operation PESHAWAR: Police has launched a search operation in Daudzai area of Peshawar and arrested 20 suspects with weapons.Peshawar Police conducted raids in various parts of Daudzai locality and arrested 20 suspects involved in heinous crimes with arms and thousands of bullets, sources said. Policemen from various police stations of Peshawar took part in the search operation. Federal Defence Minister, Khawaja Asif, has said that the terrorists are on the run due to operation Zarb-e-Azb.

Lakki Marwat: Lakki police bust gang of gamblers LAKKI MARWAT: Police have busted a gang of gamblers and arrested its seven members in the outskirts of Lakki city on Sunday.

Acting on a tip off, a police party jointly led by SHO Lakki Zafrullah Khan and ASI Javed Khan raided a gambling den near Dabak on Lakki Darra Tang road,” said a police official. He said the cops found a group of people engaged in the practice of playing a bet on cards. “Seven gamblers, including Nasrullah, Gul Faraz, Munawar, Gul Rehman, Shaukat, Hashim Khan and Inayatullah were arrested while their three accomplices identified as Fareed, Gul Janan and Hanif escaped,” official added.

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He said that police seized stake money and gambling equipment from the culprits and registered a case against them under relevant section of law in Lakki Marwat police station.

3 target killers held in Bhakkar BHAKKAR: DPO Shakir Hussain Dawar has said that the police have arrested three target killers here. Addressing a press conference here on Sunday, the DPO said that the arrested killers were professional murderers.

They were identified as Iftikhar Hussain of Gadola Road, Shakeel Ahmed of DI Khan and Adeel Haider of Darya Khan, he added. He said that the accused were involved in billiard club firing incident of Darya Khan on Ramazan 28 last year and other incidents. The DPO said that during the preliminary investigation, the accused had confessed to kill Ghulam Muhammad, Ghulam Muhammad, Maulana Khabib Ahmed Farooqi, Muhammad Ejaz Ahmed, Naseeruddin and Rana Tasawar.

Bootlegger held in Chakwal CHAKWAL: Sadar police on Sunday arrested a bootlegger and recovered liquor from him. The police raided and arrested Qamar Masih with liquor. The police have registered a case.

Mansehra: DFO among 7 employees booked MANSEHRA: The Anti-Corruption Establishment in Kohistan district has booked seven employees of the Forest Department for allegedly having sold 500,000 square feet timber in the market and showing in official record that the said timber had been washed away in flash floods in 2010. “We have arrested two forest officials and raids are being carried out for the arrest of five others,” Mohammad Tanveer, the head of ACE Kohistan, told journalists on Sunday. Tanveer said the case was investigated on the order of director general ACE, Khyber Pakhtunkhwa, and seven officials including district forest officer were booked in the case.

“A meagre amount of timber from forest depots was swept away in Indus River but all stock of 500,000 square feet of timber was shown as damaged in the official record and timber was sold in open market causing a financial loss of Rs120 million to national exchequer,” said Tanveer.

He said the officials had also issued fake damage reports to timber smugglers who gathered the timber from different points from River Indus, causing huge loss to the exchequer. The official said District Forest Officer Tariq Khan, Range Officer Abid Mumtaz, foresters Mohammad Anwar, Mohammad Asghar and forest guards Yasheer, Mohammad Umar and Umar Khan had been booked under section 420, 477, 419 and 468. He added that Mohammad Anwar and Umar Khan had been arrested from various places in Kohistan.

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Miscellaneous News

Another lender?: Analysts tip-toe around BRICS’s new bank By Shahbaz Rana

Published: July 21, 2014

ISLAMABAD:

For long, Pakistan has remained dependent on west-dominated global financial institutions. But, as a strategic shift in the global economy gets under way – from the developed to the largest and fastest growing economies – the country can benefit from the New Development Bank (NDB) recently formed by the growing economies.

Known as BRICS, founding members of the NBD – Brazil, Russia, India, China and South Africa – have for the time being restricted membership to themselves. However, in principle, they have agreed to expand membership to other countries.

The bank will be headquartered in Shanghai, China with its first president from India. The newly born financial institution is widely perceived an alternate to global financial hegemony of the US and Europe.

The new financial institution will help break the monopoly of the World Bank (WB) and International Monetary Fund (IMF), which will benefit countries like Pakistan, according to an official of a multinational financial institution.

But for a country like Pakistan, heavily dependent on the west, there will understandable be pros and cons of joining a new bloc, according to analysts. They said Pakistan should become a member of the NDB at the earliest but will have to weigh in foreign policy implications before joining the club.

It opens the door for Pakistan to get funding other institutions decline to give. However, experts say that “it is too early” to expect that the NDB will replace the WB or the IMF. They say it will take at least 10 to 15 years before the NDB is counted as a near rival to the established global lenders.

The NDB will be one more window for getting finances for infrastructure projects but it will also not offer free lunch, said Dr Abid Hasan, a former operation WB advisor. The NDB might have less stringent conditions but it will ensure that its money is safely returned, he added.

Dr Hasan said there is a possibility that the NDB will raise funds by floating bonds like the WB and the Asian Development Bank. Bond investors will also seek solid guarantees and eventually the NDB will have to adopt policies which give comfort to investors, he added.


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Pakistan’s ambitions to join the new club may face resistance from archrival India but it can successfully counter the Indian factor with the help of China and Brazil, said analysts. They said China is the dominant force among the five members and is considered close to Islamabad. Brazil may also neutralise political ambitions of India, the former being an important supplier of defence equipment to Pakistan.

The response of the US and European investors to the NDB will be another important factor for the new financial institution becoming a rival to the Bretton Woods System, comprising the WB and the IMF.

The Bretton Woods System are predominately Western institutions and over the years have been used for political purposes by the US and Europe.

The loans these institutions offer to developing economies like Pakistan are always linked to painful structural re-adjustments that create social and political troubles in the recipient countries.

Initially, the NDB will finance infrastructure and sustainable development projects, with $50 billion in capital. The BRICs have also announced a $1000billion Contingent Reserve Arrangement (CRA), to tide over members in financial difficulties. The CRA is going to be a substitute of the IMF, according to analysts. But it will take time till the NDB and CRA become global.

Each BRICS country will contribute $10 billion to the bank’s capital stock. China will provide 40% of a $100-billion Contingency Reserve Arrangement. While the NDB will have contributions from all five member countries, the dominant player in the organisation will be China.

China’s underline aim is that it wants Yuan become a global exchange currency —an objective that remained unfulfilled due to strong US influence.

Published in The Express Tribune, July 21st, 2014.

Widening gap: SBP tries to get it right with current account data By Kazim Alam


KARACHI:

In sharp contrast with the earlier projection of the State Bank of Pakistan (SBP), the country’s current account deficit increased to more than $2.92 billion in 2013-14, according to data released by the central bank on Monday.


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The current account deficit for 2013-14 has widened by $429 million since the end of the preceding fiscal year when it stood at $2.49 billion.

The central bank had released ‘provisional’ current account deficit for 2013-14 on Friday, but withdrew it within a couple of hours. According to the provisional set of data, the current account deficit was $3.34 billion for the last fiscal year.

Latest data shows that SBP underestimated the expected current account deficit in its Jan-Mar report released two weeks ago as it expected the full-year current account deficit to “settle between $2-2.5 billion”.

The current account deficit remained $89 million during June alone. On a year-on-year basis, it decreased by $74 million, as it stood at only $163 million in June 2013. Interestingly, provisional figures released last week showed June’s current account deficit to be as large as $510 million.

Shown as a percentage of the gross domestic product (GDP), the current account deficit for 2013-14 widened to 1.18% as opposed to 1.06% recorded in the last fiscal year. Notably, the current account deficit figure is largely in line with the estimate given by the International Monetary Fund (IMF). According to third review of the Extended Fund Facility released on July 7, the IMF envisaged Pakistan’s current account deficit to be around 1.2% of the GDP.

Had it not been for substantial inflows in terms of foreign direct and portfolio investments, Pakistan’s current account deficit would have been significantly higher. Improvement in home remittances and receipt of Coalition Support Fund money helped restrict the current account deficit in the third quarter of 2013-14 to about one-third the deficit recorded during the same quarter of the preceding fiscal year.

Exports/Imports

Pakistan exported goods worth $25.16 billion in 2013-14 as opposed to exports totalling $24.8 billion in the preceding fiscal year, reflecting year-on-year increase of only 1.48%. In the April-June quarter, exports of goods amounted to $6.35 billion, which is higher than the value of goods exported in each of the other three quarters. Total imports of goods in June were $3.57 billion, which is equal to the value of goods imported in the preceding month. As per the provisional data released last week, however, June imports showed a spike of 9.24% month-on-month. For the last fiscal year, goods’ imports increased to $41.6 billion, up 3.8% from $40.1 billion in 2012-13.

Remittances

Workers’ remittances in 2013-14 increased to $15.83 billion, registering an increase of 13.72% over the preceding fiscal year when they equalled $13.92 billion. They remained almost $1.5 billion in June, up 8.7% from the preceding month when they totalled $1.38 billion. SBP set the target of $15.1 billion for workers’ remittances in 2013-14. The growth was expected primarily due to a rise in the number of Pakistanis working abroad with tighter compliance of anti-money laundering laws.


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Foreign direct investment (FDI) in Pakistan in 2013-14 clocked up at $1.63 billion, up 12% from FDI of $1.45 billion received in the preceding year. Foreign portfolio investment in Pakistan amounted to $2.74 billion in 2013-14, showing an increase of almost 22 times over 2012-13.

Published in The Express Tribune, July 22nd, 2014.

Pak-China Agro Chemical Expo comes to Pakistan By Our Correspondent


LAHORE: The CAC Pakistan Summit and the Pak-China Agro Chemical Expo will be held from August 5-6, 2014 at the Lahore Expo Centre, according to a Lahore Chamber of Commerce and Industry (LCCI) statement.

LCCI President Sohail Lashari addressed the press conference on Monday, along with former vice president Sheikh Muhammad Arshad and Javed Saleem Qureshi. Lashari said that it was a matter of pride that the China Council for the Promotion of International Trade Chem, which is a well-known Chinese organisation, have partnered with LCCI in connection with holding the CAC Pakistan event.

He said that there are about 120 stalls booked by major companies of Pakistan and China related to agriculture and its sub sectors.

The LCCI president said that this would add another chapter of success in the history of international exhibitions in Pakistan that around 23 Chinese companies are participating in this exhibition.

He informed participants that leading groups and companies of Pakistan associated with different sectors of agriculture have confirmed their participation. He further said that these companies will manifest their range of products on almost 60 stalls to visiting importers, distributors and farmers from Pakistan and neighbouring countries.

“Pakistan is an agrarian economy but we lag far behind in terms of obtaining the desired level of knowledge and ways to combat with potential threats to our food and cash crops existing in the form of pests, unnecessary herbs and scarcity of water” he said.

“CAC Pakistan promises to display and convince the use of modern technologies developed over the period of time through research and development in the field of agriculture.”

The LCCI president further said that the CAC Pakistan will provide a joint forum to government officials and industry professionals to highlight the benefits of using pesticides, fertilizers, processed seeds, affordable agriculture equipment and machinery.


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“There lies an immense potential of agro-chemicals in Pakistan,” added Lashari. “Agro-chemicals have contributed significantly in raising agricultural yield and there is still a lot of room to bring improvement in this sector.

Lashari said that they are very glad to coordinate with CAC, which sets up world’s largest agro-chemical trading platform in China every year with most updated policies, products, technologies and market dynamics.

He said that CAC has broadened its network by exhibiting in Europe, Brazil and other locations in the world. It is going to be the first time that CAC is holding such an event and summit in South Asia.

“We would like to welcome them to Pakistan and make all possible efforts to make it a successful show,” he remarked. “I wish that CAC Pakistan may take place every year in Pakistan and our agriculture sector could grow by leaps and bounds.”


FY14: Car imports dented, plunge 51% By Farhan Zaheer


KARACHI: Car imports in Pakistan plunged massively by 51% in fiscal year (FY) 2013-14 compared to the previous year, data revealed.

This was the second consecutive year when the country saw a decline in the import of cars. Pakistan imported just 22,220 units in FY14 compared to 45,378 units in FY13.

Imports hit their peak in FY12, when they touched a massive 55,000 units, but have continued to plummet since then.

However, the local car industry must be feeling unlucky as it completely failed to take any advantage of the declining car imports – its direct rival.

Local car sales, after a promising start with high initial sales, managed to see an uptick of just 1% in the outgoing FY14 as its total volumetric sales stood at 136,888 units compared to 135,507 units in FY13.

“The government’s policies regarding imports have contributed to the massive decline in car imports this year,” said the All Pakistan Motor Dealers Association (APMDA) Chairman H M Shahzad.

“The government should look in to the reason why despite a huge decline in imported, local sales failed to gather any momentum in the last 12 months. I believe it is clear that the local car industry is not providing what customers want, which is reliable and affordable cars.”


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The biggest dent for the imports was caused by the decision of the previous government to reduce the age limit of used cars imports from five to three years in December 2012.

Moreover, car importers are feeling dejected as this government has slapped new taxes on the registration and transfer of used vehicles, which will further reduce the sale and purchase of used imported cars.

“Customers are waiting for the local car companies to launch new car models, especially in the case of the new Toyota Corolla, which dented local car sales,” JS Global Capital Analyst Atif Zafar told The Express Tribune.

“Another reason why the sales of local and imported cars are stagnant or on a decline is that the purchasing power of customers has not improved in the last few years.” Local car companies have also failed in launching smaller, more affordable cars in the last two years owing to which the imported used car, especially smaller ones, have increased in market share.

Out of the three carmakers, two introduced new models in the outgoing year. Atlas Honda Motors introduced Honda City Aspire and Honda CR-Z while Pak Suzuki introduced Suzuki Wagon R.

Analysts say that after Pak Suzuki has launched Wagon R in April 2014 and Indus Motors have launched Toyota Corolla in July 2014, local car sales will see better results in the ongoing fiscal year.


Power tariff on tube wells likely to rise By Zafar Bhutta


ISLAMABAD:

The federal government, in a bid to reduce subsidy on farmers, is expected to increase electricity price by Rs2 per unit for tube wells used for watering crops.

“We are negotiating with farmers on an increase in power tariff on agriculture tube wells after three months,” Abid Sher Ali, State Minister for Water and Power, said while talking to The Express Tribune.

The National Electric Power Regulatory Authority (Nepra) set average tariff at Rs16 per unit for the consumers, but for farmers it could be fixed at Rs12.30 per unit, he said.

In September 2013, the government announced a single electricity slab for the agriculture sector at Rs10.30 per unit, which would last until the end of June this year. In the meantime, the government would bear a subsidy of Rs23 billion on power charges.


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Before that, the farmers had fiercely resisted an exorbitantly high tariff, arguing the previous government set the price without taking them into confidence. The Pakistan Kisan Ittehad launched a protest drive and the farmers stopped paying electricity bills. They have not cleared their bills for nine months.

As the tariff agreement has now ended, the government and Kisan Ittehad are now engaged in talks to forge a new deal. The government has also decided to waive mark-up on installments of power bills, which are outstanding because of the tariff dispute, officials say.

The growers are pressing the government to continue to charge the existing tariff of Rs10.30 per unit, but the latter is eager to increase the price on the ground that it could not afford the subsidy any more.

In protest against the move, the Pakistan Kisan Ittehad has planned to stop paying electricity bills until the time the subsidy is revived. It has also threatened to launch a “court arrest” movement if the demand is turned down.


Central Asia to Chitral: Talks on power import start in Dushanbe today By Zafar Bhutta


ISLAMABAD:

Pakistan and Tajikistan are set to hold talks in Dushanbe to discuss the possibility of laying power transmission lines from Central Asia to Chitral for supply of 1,000 megawatts of electricity.

Commissions, constituted by the two countries, would meet on Tuesday (today) in Dushanbe for the second Central Asia-South Asia (Casa) 1,000 power project, sources say. Water and Power Minister Khawaja Asif left for Dushanbe on Monday.

Pakistan is already working on the first Casa-1,000 power import project with Tajikistan.

Of the commissions, Pakistan had formed one, headed by Khawaja Asif, while another was constituted by Tajikistan, officials said. They agreed to establish the bodies during a visit of Prime Minister Nawaz Sharif to Dushanbe in June in order to cooperate in the energy sector.

Officials familiar with the developments said the government would have to conduct studies to determine the possibility of laying transmission lines from Central Asia to northern areas.

Tajikistan has a huge hydropower potential and seeks to help ease energy problems in Pakistan.


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“We have the capacity to export an additional 1,000MW of electricity to Pakistan through the Chitral route that will help our brotherly country overcome the power crisis,” a Tajik embassy official said.

“We also want to expand energy cooperation by laying a pipeline for export of gas to meet energy needs of the South Asian state.”

According to diplomatic sources, Tajikistan also contains huge reserves of oil and gas and could export gas by laying a pipeline, on the model of Turkmenistan, Afghanistan, Pakistan and India (TAPI) pipeline.

Under the second power supply project called Casa-2, transmission lines will pass through a small border area of Afghanistan and reach Chitral, which is 15 km from the Tajik border.

“The project, named “Rogun-Khorog-Vakhan-Chitral” and developed in the early 1990s, had encouraged interest from some countries and international financial institutions, which were keen to become part of it,” a diplomatic source said.

Tajikistan, Pakistan and other participating countries have signed a financing deal with the World Bank and other multilateral donors will also be approached for funding the power project.

The project is estimated to cost around $240.5 million covering transmission lines to the border between Afghanistan and Pakistan.

The two sides will also discuss the progress on first Casa-1,000 power project for which the World Bank has approved financing. This will ensure a steady source of revenue for the Kyrgyz Republic and Tajikistan, the weakest economies in Central Asia, and requires no new investment in power generation because it uses surplus water that would otherwise be wasted.

Tajik embassy officials said the project would not only ease electricity shortages in Pakistan, but would also replace fuel-based electricity generation in Afghanistan and Pakistan.

It will establish Afghanistan as a viable transit country and offer transmission capacity for other countries during off-peak season. It will also create a viable governance mechanism to build confidence among neighbours.



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Former LSE chief bullish about Pakistan’s future By APP


LAHORE: Foreign investment in long-term projects, joint ventures and better internal tax-collection mechanism are crucial in Pakistan maintaining a positive credit rating, said former Lahore Stock Exchange (LSE) chairman Asim Zaffar.

Zaffar viewed that a positive rating was not a one-day process as it entailed a complicated procedure, adding that Pakistan’s economic indicators did not just improve overnight.

However, now the overall business and economic indicators were showing positive signs following an increase in the country’s foreign reserves; successful sale of the Euro Bonds and coming up to the World Bank and International Monetary Fund’s expectations.

“The result is apparent as the world renowned credit rating agency, Moody’s International, has termed Pakistan’s credit rating as positive,” he said. To another question, he said that since the economy had started moving in the right direction, the government must focus on improving internal revenues. This money should be spent on problems such as education, health, infrastructure, energy and other sectors that would prove to be very helpful in resolving the overall economic challenges of the country.

The former LSE chief observed that the population’s tendency for tax evasion is due to the lack of facilities being provided by the government. Enhanced services and facilities are required to encourage the people to pay their due taxes.

To another question, Zaffar said that China was a tested friend of Pakistan and has made huge investments in a number of energy, infrastructure, water and other projects in Pakistan. “These long-term investments by Chinese companies would help further stabilise our economy,” he said.

Zaffar further said that since formation of the current government, the country’s stock exchanges had been experiencing bullish trends, which would further scale up due to the positive credit rating.

The former LSE chairman added that the previous government had failed to exploit market potential and failed to pay attention to market strategy. “Today, the shares of foreign investors are much higher in our markets,” he said. “This has both positive and negative impacts.



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Restructuring package: PSM receives Rs2.85b By Our Correspondent


KARACHI:

The Ministry of Finance has released a sum of Rs2.85 billion to the Pakistan Steel Mills (PSM).

The amount is the third installment of the first tranche of the approved restructuring package of Rs18.5 billion from the government.

Furthermore, the salary for 45 days, starting May, has been given to the PSM employees. Moreover, pay slip for May has been issued to all the employees of Pakistan Steel Mill. It is pertinent to mention here that LCs for procurement of raw materials will be opened and the remaining amount will be utilised for payment of gratuity, capital repairs and utility bills (Sui Southern Gas Company, Karachi Water and Sewerage Board and K-Electric bills).

The mill management is confident that with the release of the third tranche of the approved package, production of the mill would start improving to achieve the capacity utilisation targets set by government.



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OPEN MARKET FOREX RATES Updated at: 22/7/2014 7:25 AM (PST)

Currency Buying Selling Australian Dollar 92.5 92.75 Bahrain Dinar 261.85 262.1 Canadian Dollar 91.6 91.85 China Yuan 15.75 15.9 Danish Krone 17.75 17.9 Euro 133.5 133.75 Hong Kong Dollar 12.6 12.75 Indian Rupee 1.6 1.65 Japanese Yen 0.98 0.99 Kuwaiti Dinar 349.75 350 Malaysian Ringgit 30.75 31 NewZealand $ 85.75 86 Norwegians Krone 15.85 16 Omani Riyal 256.35 256.6 Qatari Riyal 26.9 27.15 Saudi Riyal 26.15 26.4 Singapore Dollar 79 79.25 Swedish Korona 14.5 14.65 Swiss Franc 110 110.25 Thai Bhat 3.05 3.10 U.A.E Dirham 26.75 27 UK Pound Sterling 168.5 168.75 US Dollar 98.85 99.1


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INTER BANK RATES Updated at: 22/7/2014 7:25 AM (PST)

Currency Bank Buying TT Clean

Bank Selling TT & OD

Australian Dollar 92.38 92.57

Canadian Dollar 91.64 91.82

Danish Krone 17.86 17.89

Euro 133.15 133.42

Hong Kong Dollar 12.69 12.72

Japanese Yen 0.9715 0.9735

Saudi Riyal 26.24 26.29

Singapore Dollar 79.27 79.43

Swedish Korona 14.39 14.42

Swiss Franc 109.56 109.79

U.A.E Dirham 26.79 26.84

UK Pound Sterling 168.23 168.58

US Dollar 98.4 98.6


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Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Tue, Jul 22 2014, 02:45 GMT

Metal Symbol PKR for 10 Gm

PKR for 1 Tola

PKR for 1 Ounce

Gold 24K XAU 41,704 48,592 129,718

Palladium XPD 27,760 32,345 86,346

Platinum XPT 47,269 55,076 147,026

Silver XAG 665 775 2,069

Gold Rates in other Major Currencies

Currency Symbol 10 Gm 1 Tola 1 Ounce

Australian Dollar AUD 450 524 1,399

Canadian Dollar CAD 453 528 1,410

Euro EUR 312 363 970

Japanese Yen JPY 42,821 49,894 133,192

U.A.E Dirham AED 1,550 1,806 4,821

UK Pound Sterling GBP 247 288 768

US Dollar USD 422 492 1,312

* These rates are taken from International Market so there may be some fluctuation from Local

Market.

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

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

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

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

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

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

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

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

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

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

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

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