01

Business

BWednesday, 27 February, 2013

The government is providing incentives to

companies intending to invest in the oil and

gas sector. – Dr Asim Hussain

ISLAMABAD

STAFF REPORT

THE Eco-n o m i cCoordi-nationC o m -m i t t e e(ECC) of

the Cabinet met here Tuesdayunder the chairmanship of FederalMinister for Finance and Economic Af-fairs, Senator Saleem H Mandviwalla ap-proved an interim business planpresented by PIAC for the next fiveyears and agreed to allow M/o Financeto issue continuing fresh guarantees tothe tune of Rs 49 billion during the year2013 to meet with the critical liquiditycondition of the Corporation.

The ECC also agreed to the requestof the M/o Defence for arrangement/pro-vision of US $ 46 million by M/o Fi-nance with or without GOP guaranteesenabling PIAC to acquire five narrowbody aircrafts to replace its ageing fleet.

The ECC also agreed to the proposalfor extending the loans/guarantees of Rs33.5 billion until June 2013. The ECC

further agreed to the borrowing by PIACof Rs 13.50 billion from NBP againstletter of comfort to be subsequently re-placed by GoP guarantees.

The approved measures/ strategywill provide for fuel efficiency throughfleet modernization; Optimum fleet de-ployment on network; Introduction ofadditional frequencies on high demandhigh yield routes; Revenue enhancementand increase in market share; Separation

of the Core airlines businessactivities from non-

core (SBUs) andRestructuring

of PIA lia-bil i-

ties toreduce finan-cial cost.

The ECC approvedthe margin for oil mar-keting companies anddealers to be increased byRs. 0.10 per liter on high speed diesel.

The ECC directed OGRA to con-

tinue with the implementation of earlierECC decision dated 16th August 2011and reimburse the price difference toPARCO as per existing practice.

M/o Petroleum and Natural Re-sources moved another summary seek-ing approval of the ECC to the formulafor fixation of ex-refinery price of highspeed diesel (HSD). The ECC approvedthe proposed mechanism/formula forcomputation of HSD price due to changeof benchmark price from HSD 0.5 sul-phur to HSD 0.5% Sulphur (Euro-II)which will remain in force till June 30,2014. The ECC banned the marketing ofhigh speed diesel with Sulphur contentmore than 0.5 percent (Euro-II) gradehigh speed diesel in the country.

The ECC agreed to the proposal ofMinistry of Petroleum and Natural

Resources for allocation of first20 MMCFD gas from SSGC

share from new discover-ies to 100 MW Noori-

abad IndustrialEstate power

plant as

requested by the Government of Sind.The ECC further directed that the allo-cation of the said gas from SSGC shouldbe placed at the disposal of M/o Water& Power till the power plant at Noori-abad Industrial Estategets operational.

ECC APPROvES PIA’SBuSINESS PlAN FOR 5 yEARS

ECC also agrEEs to lEtPIa aCquIrE fIvEaIrCraft to rEPlaCEIts agEIng flEEt

Margin for oilmarketing

companies anddealers to beincreased by

Rs 0.10 per liter on high speed diesel

ISLAMABAD

INP

There is a lot of potential in trading withregional countries and blocs like Saarc,Asean, OIC and Central Asian re-publics. Thus, a strategy of engagementwith regional countries to maximizemutual economic and commercial ben-efits is direly needed to offset the im-pact of global recession.

Zafar Bakhtawari, President Islam-abad Chamber of Commerce and Indus-try (ICCI) made these remarks during ameeting with Iqbal Tabish, SecretaryGeneral Saarc Chamber of Commerce& Industry.

Bakhtawari cited the example ofAsean regional bloc which has a popu-lation of approximately 600 millionpeople and significantly contributing inthe world’s GDP. He said that promo-tion of regional trade also offered prom-ising benefits to the industry as it wouldenable it to source raw materials fromthe region that would ultimately reducethe cost of production and create oppor-tunities to improve economy of scalesby having an easy access to neighbour-ing markets.

ICCI President also informed himthat ICCI have planned to host a meet-ing of all the Capital Chambers Confer-ence in Islamabad with the aim topromote mutually beneficial relationbetween Pakistan and other countries.

Speaking on the occasion, IqbalTabish, Secretary General, SAARC

Chamber of Commerce & Industry saidthat Government should focus on indus-trial led growth to bring the country outof current economic stagnation and cre-ate new employment opportunities.

He said our immediate neighboursChina and India are two fast growingeconomies and if Pakistan has to com-pete and catch up with them, the bestoption is to go for industrial led growthof economy.

Mr. Tabish said that in the politicaleconomy and global world, Chambersof Commerce have assumed increasedimportance to influence policy makingin favour of entrepreneurs. He saidChambers could play more effectiverole by transforming themselves fromplatforms to strong institutions.

He said that Islamabad Chamber ofCommerce & Industry should organizea Capital Chambers Convention to pro-mote soft image of the country and senda positive message about Pakistan to theoutside world. He said SAARC Cham-ber is doing strong advocacy for re-gional integration so that South Asiacould emerge as a powerful economicbloc to improve the living standard ofits people.

KARACHI

STAFF REPORT

Looking at the 2012 audited accounts oflarge local banks, specially December quar-ter, it is clear that making money would bedifficult for bankers in coming quarters dueto shrinking margin.

With eroding core business, the bigbanks’ earnings posted a nominal growth of6pc in 2012 to reach Rs88.3bn while pre-tax profit was almost flat increasing by just2%. In fact Dec quarter earnings fell 3%

from Sep quarter. Decline in NII was com-pensated by lower provisioning while in-crease in admin cost was managed by risingnon-interest income.

This compares unfavourably with 20%profit growth seen in 2011. Unlike 2011,where Net Interest Income (NII) remainedthe prime earning driver for large banks,declining provisions and better non-interestincome supported the bottom line in 2012.

“We have based our analysis on uncon-solidated earnings of 5 large banks (NBP,HBL, UBL, MCB and ABL) representing

72% of the sector’s market capitalization,over 60% of branch network and contribut-ing 55% of banking deposits. Except forNBP whose profits were down 8%, remain-ing four banks posted improvement in prof-its in 2012 as shown in accompanied table,”said the analysts at Topline Research.

The 250bps fall in policy rate in 2012coupled with maintenance of minimum de-posit rate at 6% on PLS accounts affectedNII of these banks, they said. In 2012, cu-mulative NII declined by 6% or Rs13.3bnto Rs197.5bn as against Rs210.8bn during

the previous year where NII grew by 15%.HBL posted the highest NII growth ofRs1.2bn or 2% to reach Rs56.1bn, whileABL’s NII fell by Rs6.8bn or 27% toRs18.4bn.

On quarterly basis, NII was realized atRs49.5bn as against Rs48.6bn, up 2%. Thisincrease is realized due to exceptional per-formance of NBP during the Decemberquarter, where the bank posted NII growthof 30%.

Although decline in interest rates re-sulted in the shrinking spreads, this fall also

caused reclassification of non-performingloans. Resultantly, declining provisions, es-pecially on advances, remained one of theprime supporters of the profitability growthduring the year. In 2012 total provisioningof large banks stood at Rs18.5bn, as againstRs30.5bn down by Rs12.0bn or 39%.

Rise of Rs17.1bn or 29% in non-inter-est income led by booming bond and stockmarket help compensate for rising inflationdriven admin charges. Admin and relatecosts of these banks grew by Rs13.8bn or13% in 2012 to reach Rs119.5bn.

Big banks’ profit up by 6pc in 2012, interest income down 6pc

Businessmen urged tofocus on regional trade

Promotion of regional tradealso offers promising benefits

to the industry as it wouldenable it to source raw

materials from the region thatwould ultimately reduce the

cost of production and createopportunities to improve

economy of scales by having an easy access to

neighbouring markets

Pakistan repays 10th IMF instalmentof $391.8 milion

KARACHI: The central bank Tuesday“successfully” paid the 10th instalmentunder the IMF’s Stand-By Arrangement(SBA) facility amounting to SDR 258.4mil-lion equivalent to $391.8 million, said theSBP chief spokesman Syed Wasimuddin.The spokesman said with the repayment ofcurrent instalment, Pakistan to-date has re-paid to IMF SDR 2.110 billion which isequivalent to $ 3.232 billion since July lastyear. Wasimuddin said next instalmentunder the SBA facility would be due at theend of May this year, amounting to SDR258.4million. “After the current repayment,remaining amount due under IMF/SBAuntil Sep-2015 is SDR 3.239 billion,” theSBP spokesman said. Pakistan had ob-tained $7.8 billion from the IMF in 2008.Since the repayments started earlier thisyear, rupee has been under consistentpressure losing considerable value againstthe dollar in the inter-bank and open cur-rency markets. STAFF REPORT

PSO declareddefaulter byworld marketISLAMABAD: Pakistan State Oil hasbeen declared defaulter by the world mar-ket due to delay in payments under theLC head. World market imposes heavyfines on Pakistan State Oil, threaten tosuspend oil supplies. PSO needs Rs 30billion for making the payments in twodays. It must be remembered that PSOowes Rs 145 billion to various organisa-tions and Rs 128 million to local refiner-ies. Supply of petroleum products toPakistan can be suspended for one month,in case payments are not made in twodays. Energy crisis in Pakistan canworsen as a consequence of the suspen-sion of oil product’s supply. INP

PSM not to be allowedto be privatised: BOD KARACHI: Board of Directors (BoD) ofPakistan Steel Mills (PSM) has decidedthat the mill will not be allowed to be pri-vatised. The decision was taken in themeeting of the BoD held here under itschairman Fazal Qureshi Tuesday. Meet-ing was attended by federal secretary GulMuhammad Rind, chairman CBAShamshad Qureshi, CEO PSM, Muham-mad Javed and others. It was unanimously decided in the meet-ing that national industry PSM would notbe allowed to be privatized and no suchproposal was under consideration at pres-ent. This entity would soon be able tostand on its feet with the cooperation ofthe government, they declared. It wastold in the meeting that supply of rawmaterial has been started in PSM. It wasalso decided in the meeting that perks andprivileges in respect of officers and sub-ordinate staff will continue. Earlier aheadof the meeting a delegation led by chair-man CBA Shamshad Qureshi met federalsecretary for production Gul MuhammadRind in PID House and apprised him oftheir reservations and unrest prevailingamong the employees. Federal secretaryassured the delegation that PSM wouldfurther progress and bring improvementin the national economy. ONLINE

Pakistan set to becomeIRENA memberISLAMABAD: President Asif AliZardari Tuesday signed the Instrument ofRatification for Pakistan to become amember of the International RenewableEnergy Agency (IRENA). Spokespersonto the President Senator FarhatullahBabar said that the International Renew-able Energy Agency (IRENA) that wasfounded on 26th Jan 2009 in Bonn, Ger-many, aims to promote widespread andincreased adoption and the sustainableuse of all forms of renewable energy. To-date 149 countries have signed the statuteof IRENA while 76 have ratified it. INP

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BusinessWednesday, 27 February, 2013

ISLAMABAD: Khyber Pakhtunkhwa Inspector

General Muhammad Akbar Khan Hoti cuts the

ribbon to inaugurate the 9th International

Safety and Security Exhibition, Safe Secure-

2013 at Pak-China Friendship Centre. Dr

Rizwan Naseer, Director General Rescue 1122,

Major (r) Zia-Ul-Hassan Butt, Member

Executive Committee, All Pakistan Security

Agencies Association, Former Director General

Cyber Crime FIA Ammar Jafferi and Managing

Director, Pegasus Consultancy Aamer

Khanzada are also seen in the picture. PR

Soneri Bank announcesresults for 2012KARACHI: Soneri Bank Limited has announced its

results for the year ended 31 December 2012

posting highest profit after tax in last six years. The

Chairman of the Bank, Mr. Alauddin J Feerasta,

presided over the Board that met in Lahore on 23

February 2013. The Board noted with satisfaction

that bank has outperformed the market in both

advances and deposit growth and achieved strong

growth in all areas of the Bank’s operations. Deposits

grew by 21.15% over 2011 and advances (gross)

recorded a growth of 17.14% over 2011. The bank’s

after tax profit increased to Rs 1,104 million, up from

Rs 784 million, primarily due to a solid growth in Net

Interest Income of 23.82%, (up from Rs 3,912

million to Rs 4,844 million) and effective monitoring

of non-performing loan portfolio. The Bank’s EPS

went up to Rs 1.10 from Re 0.78 as a result. As of 31

December 2012, the Bank is in compliance with

Minimum Capital Requirement of the State Bank of

Pakistan. Analyzing the reasons for successful

performance in 2012, Bank sources explain that the

increase in core revenue was registered mainly on

account of growth and restructuring in its main areas

of activity; advances, deposits and trade, which

allowed the bank to enhance its earnings from both

investments and foreign exchange. Furthermore, the

Bank continued to follow a prudent policy for making

provisions for the infected loan portfolio in line with

regulatory requirements and is confident that actions

taken in 2012 would further help in controlling future

infections and securing upcoming recoveries. PR

Intel accelerates mobile computing pushKARACHI: Intel Corporation today announced a

range of new products, ecosystem and enabling

efforts that will further accelerate the company’s

presence in mobile and help usher in a range of

new devices and richer experiences with Intel

Inside®. The announcements include a new dual-

core Atom™ SoC (“Clover Trail+”) platform for

smartphones and Android* tablets, and the

company’s first global, multimode-multiband LTE

solution. Other disclosures included “Bay Trail”

momentum, a new multi-platform enabling

program, and continued smartphone momentum in

emerging markets with the Intel® Atom™ Z2420

processor-based platform. “Today’s announcements

build on Intel’s growing device portfolio across a

range of mobile market segments,” said Naveed

Siraj, Country Manager for Intel Pakistan. “In less

than a year’s time we have worked closely with

customers to bring 10 Intel-based smartphones to

market in more than 20 countries, and have also

delivered an industry-leading low-power tablet

solution running Windows 8.” New, Efficient Atom™

SoC Platform Intel’s new Atom™ processor platform

and smartphone reference design delivers industry-

leading performance with low-power and long

battery life that rivals today’s most popular Android

phones. The product brings Intel’s classic product

strengths, including high performance that lets you

enjoy smooth Web browsing, vibrant, glitch-free,

full HD movies, and an Android applications

experience that launches fast and runs great. The

imaging system also enables panorama capture, a

15 frame-per-second burst mode for 8 megapixel

photos, real-time facial detection and recognition,

and mobile HDR image capture with de-ghosting for

clearer pictures in flight.

Long-Term Evolution (4G LTE)

Intel’s strategy is to deliver a leading low-power,

global modem solution that works across multiple

bands, modes, regions and devices. The Intel XMM

7160 is one of the world’s smallest and lowest-

power multimode-multiband LTE solutions

supporting multiple devices including smartphones,

tablets and Ultrabooks™. The 7160 global modem

supports 15 LTE bands simultaneously, more than

any other in-market solution. The 7160 is a well-

timed competitive solution for new emerging LTE

networks.

Intel® Atom™ Platform Z2420

As Intel expands its geographic presence, the

company sees tremendous opportunity in delivering

rich Intel-based mobile experiences to consumers

across emerging markets. As part of its strategy to

take advantage of the growing market for value

smartphones in emerging markets, Intel

highlighted continuing momentum with the Intel

Atom Processor Z2420 platform.

Tablets with Intel Inside®

Building on the device momentum and industry-

leading power-efficiency of the award-winning Atom

processor Z2760, Intel’s first quad-core Atom SoC

(“Bay Trail”), will be the most powerful Atom

processor to-date — doubling the computing

performance of Intel’s current- generation tablet

offering and providing the ecosystem with a strong

technology foundation and feature set from which

to innovate.

Enabling the Mobile Devices with Intel Inside®

Intel today announced an expansion of its

ecosystem enabling efforts to deliver new device

and market innovation across a range of Windows

and Android-based mobile devices. The new

program will focus on accelerating time to market

for leading-edge mobile devices based on Intel®

architecture with top OEMs and ODMs.

60 Second Film Festival launchedKARACHI: 60 Second Film Festival, an initiative

launched collectively by Morango Films & Duck, was

launched back in August 2012 with a call for

submissions, and wrapped up on the 31st of

January 2013 with the announcement of the

results. From submission of films, to public voting,

and consequently the judges’ decisions, it has been

an exciting process for the festival team. The

festival was launched for showcasing 60-second

short-films based on socio-economic development,

entertainment and public service messages. The

aim was to create a platform for upcoming artists

and film directors from Pakistan, encouraging their

talent and creating positive learning experiences.

‘Its like a dream come true. Our biggest

achievement is that people from remote areas of

Pakistan also contributed in this festival and got

recognized for their work’ remarked Abrar ul

Hassan, Director 60 Second Film Festival. PR

Abacus celebrates 25 yearsof transforming businessLAHORE: AbacusConsulting, leading consulting,

technology and outsourcing firm, commemorated

its 25 years of successful business at a glittering

event here at the Royal Palm Golf & Country Club,

Lahore, on February 23. For over a quarter of a

century, Abacus has been offering cutting-edge

business solutions which have enabled client

organizations transform their aspiring visions into

realities. The exclusive event was organized to

celebrate 25 years of collaboration and synergy

between Abacus, its prestigious clientele and

strategic partners, setting benchmarks of

excellence in the industry. On the occasion, Mr.

Asad Ali Khan, Founder and President of Abacus

welcomed the guests and said, “For more than 25

years, Abacus has been at work to transform

businesses into successful enterprises. We offer our

clients a unique portfolio of Consulting, Technology

and Outsourcing services with end-to-end

integrated solutions, duly supported by a solid

corporate governance structure and guided by a

stringent value system. It is indeed a matter of

great personal pride and privilege that the small

firm that began its journey in 1987 is today

reckoned to be the thought leader and

transformation partner of choice by leading

business entities in three continents across the

globe. Of course, I would give credit for all this to

the hardworking, honest and dedicated people of

Abacus.” Mr. Paul Batchelor, Board Member of

Abacus, who had flown in from London for the

occasion also addressed the audience and

expressed his pleasure and pride in being part of

the organization’s governance structure. Mr. John

Furth, President and CEO of the global Association

of Management Consulting Firms (AMCF) based in

New York, delivered a video address lauding Abacus

as “a clean, courageous and competent company

that has flourish through difficult times and a less

than perfect environment to achieve milestone

after milestone and reach a richly deserved Silver

Jubilee”. Mr. Aamer Chaudhry, Partner and Global

Leader of Abacus, gave away special awards in

various categories. The End Note Speech was

given by Mr. Abbas Ali Khan, Partner and Global

Leader, who thanked the audience for attending

and being part of Abacus’ celebrations. PR

KARACHI: Asim Pervaiz Siddiqi, Chairman &

Chief Executive Siddiqi Group of Companies,

receives the 3rd Global CEO Excellence Award

from Nisar Khuhro. PR

CORPORATE CORNER

02

B

Pakistan should focus on industrial growth to

bring the country out of current economic

stagnation. – SAARC CCI Secretary Iqbal Tabish

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERunilever Pak 10550.00 10850.00 10410.00 10850.00 300.00 360nestle Pakistan ltd. 4900.00 5145.00 4800.00 5131.82 231.82 760Colgate Palmolive 1520.00 1596.00 1445.00 1596.00 76.00 850Indus Dyeing sD 433.00 454.65 454.65 454.65 21.65 100Mithchellsfruit 301.01 313.50 313.50 313.50 12.49 100

Major Losersshezan Inter. 434.00 444.25 412.30 412.30 -21.70 700sanofi-aventis Pak 355.00 337.26 337.26 337.26 -17.74 100Clariant Pak 266.39 260.50 253.08 257.23 -9.16 47,700Blessed tex. 123.00 116.86 116.85 116.85 -6.15 2,500Millat tractors XDXB 540.62 539.00 535.00 535.39 -5.23 7,000

Volume Leaders

telecard limited 7.96 8.83 6.96 7.42 -0.54 67,359,000azgard nine 8.59 8.95 8.01 8.29 -0.30 19,258,000P.t.C.l.a 23.64 24.00 22.75 23.38 -0.26 17,856,000Jah.sidd. Co. 18.74 18.79 17.74 17.85 -0.89 16,334,000Engro Corporation 113.83 116.98 109.40 111.59 -2.24 15,981,100

interbank RatesusD PKr 98.1622gBP PKr 148.8335JPY PKr 1.0666Euro PKr 128.3470

ForexBUY SELL

us Dollar 99.10 99.35 Euro 128.89 129.09 great Britain Pound 149.40 149.60 Japanese Yen 1.0658 1.0768 Canadian Dollar 95.39 97.07 Hong Kong Dollar 12.56 12.79 uaE Dirham 26.90 27.15 saudi riyal 26.30 26.55

ISLAMABAD

ONLINE

FEDERAL Minister forWater and Power ChaudhryAhmed Mukhtar has di-rected to expedite comple-tion of 1000 MW windpower generation projectsso that cheaper electricitycould be added in the na-

tional grid at the earliest.Federal Minister Ahmed Mukhtar gave these

directions while presiding over 26th Board meet-ing of Alternative Energy Development Board(AEDB) here on Tuesday.

The Minister stated that electricity generationfrom indigenous resources is priority of the gov-ernment and various steps have been taken to at-tract investment in this sector. Upfront tariff hasalready been given to the wind power projects andsame is being announced for solar projects.

The board taken up various points of agendaand approved grid code for wind power projects.As per new grid code the share of wind power gen-eration has been increased from 5 % to 20 % in thenational grid energy mix. The meeting was in-formed that one more wind project of 50 MW hasbeen completed and on test run to be inauguratednext month. Three projects of 150 MW are underconstruction while 12 projects of 1100 mw would

achieve financial close by 2013-14. The meetingalso approved merger of three wind power projectsof 30 MW.

The meeting also appreciated all the officialsof the AEDB who performed their role in the com-pletion of wind power projects. The meeting alsoappreciated the performance of AEDB for expe-diting the wind and solar power projects.

Dr Asim welcomesEu interest in oil,gas explorationISLAMABAD: Advisor to the Prime Minis-ter on Petroleum and Natural Resources Dr.Asim Hussain has said that Pakistan has al-ways welcomed the cooperation extended byEU in various sectors of the economy. Hewas talking to Ambassador Patricia Flor EUSpecial Representative for Central Asia whocalled on Dr. Asim Hussain today in Islam-abad. The meeting was also attended by Mr.Abid Saeed Secretary Petroleum and SyedTauqir Hussain Joint Secretary (I&JV) Min-istry of Petroleum and Natural Resources. Dr.Asim Hussain apprised the EU Ambassadorabout the ongoing projects of the oil & gassector in Pakistan and informed that the Gov-ernment is providing incentives to the Com-panies intending to invest in Oil and Gassector of Pakistan. The Advisor stated thatPakistan needs to balance its energy mix, forwhich various projects and policy initiativeshave been taken including policies on ShaleGas, LPG, LNG, Tight Gas, Flared Gas andMarginal Gases. He welcomed the interest ofEU in helping out Pakistan in the Oil and GasExploration. The EU Ambassador was alsorequested for possible collaboration in thefield of Petroleum education, particularly atthe Institute of Science and Technology re-cently established by OGDCL under the di-rection of Advisor / Minister Petroleum.Ambassador Patricia Flor apprised that EU isalready providing assistance to Pakistan invarious sectors of economic and social devel-opment. She thanked the Advisor / Ministerfor meeting him and assured that the EUwould extend all possible help in the energysector and transfer of technology. ONLINE

Mukhtar directs speedycompletion of wind power generation projects

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