Profit E-paper 14th July, 2012
2
Saturday, 14 July, 2012 ISLAMABAD Online T HE Federal Board of Rev- enue (FBR) has officially admitted its failure to achieve annual collection target of Rs.1952 billion set for financial year 2011-12 as it has col- lected Rs.32 billion less amount then its target. FBR spokesman Riffat Shaheen said that the tax authority has collected rs.1,920 billion during fiscal year 2011- 12 against its set target of rs.1,952 billion which shows Rs.32 billion shortfall. She said Federal Board of Revenue could not announce collection date offi- cially so far due to books adjustments which in routine takes 10 to 15 days but it would be released in next two to three days. “Credit should be given to tax au- thorities for crossing the sociological fig- ure of Rs.1900 billion revenue collection,” she said, adding that tax collection target did not revise even a single time throughout the financial year 2011-12 whereas it was revised 3 times as compare to last fis- cal year. Riffat Shaheen said despite depres- sive economic situa- tion in the country tax authority col- lected Rs.1920 bil- lion what she termed a great achievement for Federal Board of Revenue. In order to get billion of ru- pees from de- faulter taxpayers with the sole aim to achieve annual tax col- lection target of Rs.1952 bil- lion the FBR also announced amnesty schemes in May 2012 which did not help at large the tax author- ities to get its over- ambitious target of revenue set for fis- cal year 2011-12. According to an official tax col- lection target of rs.1,952 billion was of course much difficult, tough and steep decline in rev- enues is being witnessed, how- ever, FBR has left no stone un- turned to reach its nearest. Independent economists have said that the government missed annual rev- enue collection target set for the 2011-12 due to challenges ranging from mili- tancy to energy. According to them FBR tax collection target of Rs1952 billion was a non-starter even with the collec- tion of Rs1588 billion in 2010-11. “Tax authorities were insisting throughout the year for achieving its tar- get despite the fact that economy was growing with only 3 per cent then how it was possible for FBR to get its set tar- get,” they added. It may be recalled that during cur- rent fiscal year 2010-11, nation had wit- nessed a baffling situation when on June 30, 2011, the then Chairman FBR Salman Siddique claimed that the collec- tion surpassed the target and collected Rs1, 590 billion, but the irony of fate was that it was proven incorrect. Simple tax procedures will improve tax collection: iCCi ISLAMABAD Online Islamabad Chamber of Commerce and Industry (ICCI) has urged the newly appointed Chairman Federal Board of Revenue, Ali Arshad Hakeem to take measures for simplifying the complex and complicated taxation procedures, which will help in improving the tax revenue for the country. Yassar Sakhi Butt, President ICCI made these remarks during a meeting at Chamber House. He said that the complicated tax procedures were creating troubles for the businessmen and FBR should facilitate taxpayers for making these procedures more simple and easy. He said that businessmen were facing many challenges due to multiple factors like energy outage, rising inflation and deteriorating law and order situation. Therefore, they should be facilitated to expand businesses as revenue collection lies in the promotion and growth of business activities. ICCI President was of the view that the solution to slow economic growth lies in the revival of progressive taxation policies and improved tax collection system. He urged the Government to broaden the tax net by bringing all the sectors into the tax net which were currently not being taxed and rendering a permanent revenue shortfall in the National Exchanger. He said that country’s tax-to-GDP ratio had since long been declining and ultimately it registered around 10 percent of the GDP during last fiscal year. ICCI President added that developed countries have tax-to- GDP ratio from 30 to 40 percent, most of the developing economies from 15 to 25 percent like in India; this ratio stands at 15 percent and Bangladesh at 14.5 percent. He urged the Chairman FBR to increase the tax-to-GDP ratio by overhauling the tax system and making the system justifiable and equitable. Yassar Sakhi Butt said indirect taxes currently account for more than 60 percent of the total revenues while direct taxes to GDP ratio was merely 2 percent which has been badly affecting consumer spending that is a key driver of economic growth. He said that proactive measures should be introduced to plug the leakages and loopholes in the prevailing tax system rather than adopting the policy of increasing the tax base through broadening the ratio of indirect taxes. KARACHI STAFF RePORT A meeting of the Securities and Ex- change Commission of Pakistan (SECP) headed by the chairman, commissioner and other senior officials of the SECP was held with the Board of Directors, management and senior members of the Karachi Stock Exchange. The meeting discussed important capital market development matters and measures for enhancing activity at the Ex- change by supporting retail participation. The apex and front line regulators re- viewed various international best prac- tices for the overall growth of the market and deliberated upon areas of investor protection, expansion of market outreach, new product development in equity, debt and derivative segments, activation of leverage products for improved liquidity, effective risk management and market monitoring and surveillance etc. While highlighting recent reforms in the market including revamping of Cap- ital Gains Tax regime, introduction of revised Code of Corporate Governance and demutualization of stock exchanges, the SECP chairman emphasized upon the Exchange to take expeditious steps to put in effect already agreed scheme of arrangements for enhancing brokers’ ca- pacity to execute business. Under the said scheme each active broker would be allowed an amount of Rs 50 million to be utilized against bank guarantee from the Clearing House Pro- tection Fund as margins/collateral against their trades. It was, however, emphasized that in line with international best practices risk management needs to be consolidated and shifted to NCCPL with a settlement guarantee fund so as to support NCCPL to function as a central counter party. A committee of the stock exchanges and NCCPL was constituted to finalize neces- sary modalities for the same and submit its recommendations to the SECP. Fur- ther to support liquidity in the market, generate healthy activity in leverage prod- ucts like Margin Trading and Securities Lending and Borrowing, it was agreed that these products would be reviewed in detail to identify and address issues hin- dering the participation of investors. Also, to revive investors’ confidence and affec- tively address claims of investors pertain- ing to 2008 market situation, further enhancement of contribution from IPF for each default and expulsion was rec- ommended by the SECP for consideration of the Exchange’s Board of Directors. Other areas that were mutually agreed by the regulators include: Taking appropriate measures to promote intra- day/day trading, following principles adopted internationally, that will assist in enhancing trading activity. ISLAMABAD APP Renowned Malaysian currency expert Sheikh Umar Ibrahim Vadillo has urged for introducing Islamic dirham and dinar in the economic system to get rid of usury (Riba). Addressing the students and researchers here in his lec- ture titled “Towards Just Monetary System: Introducing dirham and dinar currency” organized by Islamic Research Institute (IRI) in collaboration with International Institute of Islamic Economics and Shariah Academy, Sheikh Vadillo also urged the government of Pakistan to implement the system of dirham and dinar in the country. He said that the Muslim countries should adopt the sys- tem of gold and silver currency which would automatically devalue the US dollar. “It cannot be devalued by government decree, and unlike paper currency, it is an asset which does not depend upon anybody’s promise to pay”, he said adding that with use of gold and silver currency there would be zero inflation. Vadillo said all forms of paper assets including cur- rency, bonds, shares, and even bank deposits are promises to repay money borrowed. Their value is dependent upon the investor’s belief that the promise will be fulfilled. “Gold is not like this. A piece of gold is independent of the financial system, and its worth can not be denied any time”, he added. Vadillo further said Dr. Mahatir Moham- mad of Malaysia is also in favor of dinar and dirham system and he asked the Muslim countries not to sell their precious oil to the world for US dollars but sell it for gold. Dr Masoom Yasinzai Rector International Islamic Uni- versity said on the occasion that Islam is complete way of living and the Muslim Ummah can introduce new economic system that can be followed by the whole world as people across the world are fed up of the current prevailing so called economic systems. “The world tried socialism that collapsed, the world is now trying capitalism that is also about to collapse”, Dr. Masoom added. SECP, KSE meet to boost capital market Japan hosting Pakistan investment seminars in 3 cities ISLAMABAD Online Ambassador of Japan to Pakistan, Mr. Hiroshi Oe on Friday said Japan considers Pakistan as a major development partner and the two countries will continue to support each other as true friends. Japan will continue to provide financial and technical assistance to Pakistan as we believe that this country has a great potential for the future. There are spectacular development and investment opportunities in various fields as few countries are gifted with such natural and human resources, the Ambassador said. Ambassador Hiroshi Oe said this while talking to Chairman FPCCI Standing Committee on Diplomatic Affairs Chairman Sheikh Humayun Sayeed who called on him. Chairman Media FPCCI Malik Sohail, Chairman Coordination Atif Akram Sheikh and First Secretary Takashi Shimokyoda were also present on the occasion. “Pakistan is facing difficult challenges which will be over soon,” he said adding that he will continue to strive to deepen mutual understanding through economic, educational, cultural and political exchanges. Hiroshi Oe said that increasing population and negative perception is a problem that should be tackled on urgent basis. Sixty Japanese companies are operating in Pakistan, 1400 in Thailand and around 400 in India, he added. He informed Japan Government is hosting investment seminars for Pakistan by end August, in Tokyo, Osaka and Nagoya. A delegation of Japanese Chamber of Commerce will start exploring opportunities in Karachi, Lahore and Islamabad from 16th July. The delegation will also meet President Zardari besides meeting different senior officials in a meeting at the Ministry of Commerce, they envoy said. In October, another trade mission is coming to Pakistan comprising representatives of main Japanese companies who will visit Karachi, Islamabad, Sialkot and Lahore. At the occasion, Sheikh Humayun Sayeed said that Japan is an important friend whose role in development of different sectors is laudable. Introduction of Islamic dirham, dinar urged to get rid of usury FBR admits missing collection target by Rs 32b PRO 12-07-2012_Layout 1 7/14/2012 4:43 AM Page 1
-
Upload
profit-epaper -
Category
Documents
-
view
218 -
download
1
description
Profit E-paper 14th July, 2012
Transcript of Profit E-paper 14th July, 2012
Saturday, 14 July, 2012
ISLAMABAD
Online
THE Federal Board of Rev-enue (FBR) has officiallyadmitted its failure toachieve annual collectiontarget of Rs.1952 billion set
for financial year 2011-12 as it has col-lected Rs.32 billion less amount then itstarget.
FBR spokesman Riffat Shaheen saidthat the tax authority has collectedrs.1,920 billion during fiscal year 2011-12 against its set target of rs.1,952 billionwhich shows Rs.32 billion shortfall.
She said Federal Board of Revenuecould not announce collection date offi-cially so far due to books adjustmentswhich in routine takes 10 to 15 days butit would be released in next two to threedays. “Credit should be given to tax au-thorities for crossing the sociological fig-
ure of Rs.1900 billion revenuecollection,” she said, addingthat tax collection target didnot revise even a single timethroughout the financialyear 2011-12 whereas itwas revised 3 times ascompare to last fis-cal year.
Riffat Shaheensaid despite depres-sive economic situa-tion in the countrytax authority col-lected Rs.1920 bil-lion what shetermed a greatachievement forFederal Board ofRevenue.
In order toget billion of ru-pees from de-
faulter taxpayers with the soleaim to achieve annual tax col-
lection target of Rs.1952 bil-lion the FBR also announcedamnesty schemes in May
2012 which did not helpat large the tax author-
ities to get its over-ambitious target ofrevenue set for fis-cal year 2011-12.
According toan official tax col-lection target ofrs.1,952 billionwas of coursemuch difficult,tough and steepdecline in rev-enues is beingwitnessed, how-ever, FBR has leftno stone un-
turned to reach its nearest.Independent economists have said
that the government missed annual rev-enue collection target set for the 2011-12due to challenges ranging from mili-tancy to energy. According to them FBRtax collection target of Rs1952 billionwas a non-starter even with the collec-tion of Rs1588 billion in 2010-11.
“Tax authorities were insistingthroughout the year for achieving its tar-get despite the fact that economy wasgrowing with only 3 per cent then how itwas possible for FBR to get its set tar-get,” they added.
It may be recalled that during cur-rent fiscal year 2010-11, nation had wit-nessed a baffling situation when on June30, 2011, the then Chairman FBRSalman Siddique claimed that the collec-tion surpassed the target and collectedRs1, 590 billion, but the irony of fate wasthat it was proven incorrect.
Simple taxprocedures willimprove taxcollection: iCCi
ISLAMABAD
Online
Islamabad Chamber of Commerce andIndustry (ICCI) has urged the newlyappointed Chairman Federal Board ofRevenue, Ali Arshad Hakeem to takemeasures for simplifying the complexand complicated taxation procedures,which will help in improving the taxrevenue for the country. Yassar SakhiButt, President ICCI made theseremarks during a meeting at ChamberHouse. He said that the complicatedtax procedures were creating troublesfor the businessmen and FBR shouldfacilitate taxpayers for making theseprocedures more simple and easy. Hesaid that businessmen were facingmany challenges due to multiplefactors like energy outage, risinginflation and deteriorating law andorder situation. Therefore, they shouldbe facilitated to expand businesses asrevenue collection lies in the promotionand growth of business activities. ICCIPresident was of the view that thesolution to slow economic growth liesin the revival of progressive taxationpolicies and improved tax collectionsystem. He urged the Government tobroaden the tax net by bringing all thesectors into the tax net which werecurrently not being taxed andrendering a permanent revenueshortfall in the National Exchanger. Hesaid that country’s tax-to-GDP ratiohad since long been declining andultimately it registered around 10percent of the GDP during last fiscalyear. ICCI President added thatdeveloped countries have tax-to- GDPratio from 30 to 40 percent, most of thedeveloping economies from 15 to 25percent like in India; this ratio standsat 15 percent and Bangladesh at 14.5percent. He urged the Chairman FBRto increase the tax-to-GDP ratio byoverhauling the tax system and makingthe system justifiable and equitable.Yassar Sakhi Butt said indirect taxescurrently account for more than 60percent of the total revenues whiledirect taxes to GDP ratio was merely 2percent which has been badly affectingconsumer spending that is a key driverof economic growth. He said thatproactive measures should beintroduced to plug the leakages andloopholes in the prevailing tax systemrather than adopting the policy ofincreasing the tax base throughbroadening the ratio of indirect taxes.
KARACHI
STAFF RePORT
A meeting of the Securities and Ex-change Commission of Pakistan (SECP)headed by the chairman, commissionerand other senior officials of the SECPwas held with the Board of Directors,management and senior members of theKarachi Stock Exchange.
The meeting discussed importantcapital market development matters andmeasures for enhancing activity at the Ex-change by supporting retail participation.The apex and front line regulators re-viewed various international best prac-tices for the overall growth of the marketand deliberated upon areas of investorprotection, expansion of market outreach,new product development in equity, debtand derivative segments, activation ofleverage products for improved liquidity,effective risk management and marketmonitoring and surveillance etc.
While highlighting recent reforms in
the market including revamping of Cap-ital Gains Tax regime, introduction ofrevised Code of Corporate Governanceand demutualization of stock exchanges,the SECP chairman emphasized uponthe Exchange to take expeditious stepsto put in effect already agreed scheme ofarrangements for enhancing brokers’ ca-pacity to execute business.
Under the said scheme each activebroker would be allowed an amount ofRs 50 million to be utilized against bankguarantee from the Clearing House Pro-tection Fund as margins/collateralagainst their trades.
It was, however, emphasized that inline with international best practices riskmanagement needs to be consolidatedand shifted to NCCPL with a settlementguarantee fund so as to support NCCPLto function as a central counter party. Acommittee of the stock exchanges andNCCPL was constituted to finalize neces-sary modalities for the same and submitits recommendations to the SECP. Fur-
ther to support liquidity in the market,generate healthy activity in leverage prod-ucts like Margin Trading and SecuritiesLending and Borrowing, it was agreedthat these products would be reviewed indetail to identify and address issues hin-dering the participation of investors. Also,to revive investors’ confidence and affec-tively address claims of investors pertain-ing to 2008 market situation, further
enhancement of contribution from IPFfor each default and expulsion was rec-ommended by the SECP for considerationof the Exchange’s Board of Directors.
Other areas that were mutuallyagreed by the regulators include: Takingappropriate measures to promote intra-day/day trading, following principlesadopted internationally, that will assistin enhancing trading activity.
ISLAMABAD
APP
Renowned Malaysian currency expert Sheikh UmarIbrahim Vadillo has urged for introducing Islamic dirhamand dinar in the economic system to get rid of usury (Riba).
Addressing the students and researchers here in his lec-ture titled “Towards Just Monetary System: Introducingdirham and dinar currency” organized by Islamic ResearchInstitute (IRI) in collaboration with International Instituteof Islamic Economics and Shariah Academy, Sheikh Vadilloalso urged the government of Pakistan to implement thesystem of dirham and dinar in the country.
He said that the Muslim countries should adopt the sys-tem of gold and silver currency which would automaticallydevalue the US dollar. “It cannot be devalued by governmentdecree, and unlike paper currency, it is an asset which doesnot depend upon anybody’s promise to pay”, he said addingthat with use of gold and silver currency there would be zeroinflation. Vadillo said all forms of paper assets including cur-rency, bonds, shares, and even bank deposits are promisesto repay money borrowed. Their value is dependent upon theinvestor’s belief that the promise will be fulfilled.
“Gold is not like this. A piece of gold is independent ofthe financial system, and its worth can not be denied anytime”, he added. Vadillo further said Dr. Mahatir Moham-mad of Malaysia is also in favor of dinar and dirham system
and he asked the Muslim countries not to sell their preciousoil to the world for US dollars but sell it for gold.
Dr Masoom Yasinzai Rector International Islamic Uni-versity said on the occasion that Islam is complete way ofliving and the Muslim Ummah can introduce new economicsystem that can be followed by the whole world as peopleacross the world are fed up of the current prevailing socalled economic systems.
“The world tried socialism that collapsed, the world isnow trying capitalism that is also about to collapse”, Dr.Masoom added.
SECP, KSE meet to boost capital market
Japan hostingPakistan investmentseminars in 3 cities
ISLAMABAD
Online
Ambassador of Japan to Pakistan, Mr.Hiroshi Oe on Friday said Japanconsiders Pakistan as a majordevelopment partner and the twocountries will continue to support eachother as true friends. Japan will continueto provide financial and technicalassistance to Pakistan as we believe thatthis country has a great potential for thefuture. There are spectaculardevelopment and investmentopportunities in various fields as fewcountries are gifted with such natural andhuman resources, the Ambassador said.Ambassador Hiroshi Oe said this whiletalking to Chairman FPCCI StandingCommittee on Diplomatic AffairsChairman Sheikh Humayun Sayeed whocalled on him. Chairman Media FPCCIMalik Sohail, Chairman Coordination AtifAkram Sheikh and First Secretary TakashiShimokyoda were also present on theoccasion. “Pakistan is facing difficultchallenges which will be over soon,” hesaid adding that he will continue to striveto deepen mutual understanding througheconomic, educational, cultural andpolitical exchanges. Hiroshi Oe said thatincreasing population and negativeperception is a problem that should betackled on urgent basis. Sixty Japanesecompanies are operating in Pakistan,1400 in Thailand and around 400 inIndia, he added. He informed JapanGovernment is hosting investment seminarsfor Pakistan by end August, in Tokyo, Osakaand Nagoya. A delegation of JapaneseChamber of Commerce will start exploringopportunities in Karachi, Lahore andIslamabad from 16th July. The delegationwill also meet President Zardari besidesmeeting different senior officials in ameeting at the Ministry of Commerce, theyenvoy said. In October, another trademission is coming to Pakistan comprising
representatives of mainJapanese companieswho will visit Karachi,Islamabad, Sialkotand Lahore. At the
occasion, SheikhHumayun Sayeed said
that Japan is animportant friend
whose role indevelopment ofdifferent sectorsis laudable.
Introduction of Islamic dirham,dinar urged to get rid of usury
FBR admits missingcollection target by Rs 32b
PRO 12-07-2012_Layout 1 7/14/2012 4:43 AM Page 1
02Saturday, 14 July, 2012
72 mw Khan Khwar project to open today
LAHORE: The 72 mega watt (MW) – Khan KhwarHigh-head Hydropower Project will formally be in-augurated on July 14. The project will provide306 million units of low-cost electricity per annumto the National Grid. Annual benefits of the proj-ect have been estimated at more than Rs. 2.75billion. The project has been constructed on KhanKhwar (Nullah), a right bank tributary of RiverIndus near Besham town in District Shangla ofKhyber Pakhtunkhwa province – some 265 kilo-meters from Islamabad and 350 kilometers fromPeshawar on Karakuram Highway. Main compo-nent of the project includes a 46-meter high and112-meter long dam, about 5-kilometer long tun-nel, power house and a switchyard. The project isconnected with the National Grid through132/220 Kilo Volt (KV). PReSS ReleASe
Honda achieves milestone of200,000 units’ production
LAHORE: Associates at Honda Atlas Cars (Pakistan)Limited had a reason to celebrate as the Japaneseautomaker added another chapter to its achieve-ment books by rolling out its 200,000th unit. Behindthe success are loyal customers backed by workforcethat has worked tirelessly at Honda’s production fa-cility to achieve this milestone. The celebration eventwas attended by Hiroshi Kobayashi, President ofAsian Honda Motor and Chief Operating Officer ofHonda Asia & Oceania region. PReSS ReleASe
ufone sweeps industry with its ‘5 star sms offer’ISLAMABAD: Ufone has always been the marketleader in the SMS segment and offers the lowestpriced SMS bundles to its valued customers.
These packages offer unique discounts and havebeen designed to meet the specific needs of thecustomers. Keeping the ongoing trend alive,Ufone has now introduced 5 Star SMS Offer. NowUfone valued customers can enjoy 500 SMS free toany network, at any time. To avail free SMS allusers have to do is to send 5 SMS on any givenday and receive 500 SMS absolutely free for therest of the day. There is no opt-in or subscriptioncharges applicable for this promotion. PReSS ReleASe
Test rig developed at nusT
RAWALPINDI: NUST School of Mechanical andManufacturing Engineering (SMME) and M/s Syn-ertech Rawalpindi have jointly designed, devel-oped and manufactured a Test Rig for a publicsector organisation to test a D.C electrical systemfor a large sized vehicle power. The Rig has abilityto evaluate performance of high density powersystems under varying environmental and opera-tional conditions. PReSS ReleASe
Abacus celebrates 100 successfulErp implementationsLAHORE: AbacusConsulting, a premier consult-ing, technology and outsourcing firm, celebratedthe successful implementations of one hundredSAP Business One ERP solution across Pakistan.To commemorate the milestone, a grand cere-mony was held on 12th of July, 2012 at the RoyalPalm Gold and Country Club, Lahore. AbacusCon-sulting has been providing SAP Business One tosmall and medium size enterprises throughoutthe country, enabling them to integrate criticaldata and obtain easy access to the required infor-
mation for the purpose of improving the decisionmaking process. PReSS ReleASe
cathay pacific crowned skytrax‘world’s Best Business class’KARACHI: Through listening to customers and in-corporating their feedback in product design,Cathay Pacific Airways was voted Thursday“World’s Best Business Class” in the annual Sky-trax World Airline Awards™ programme, in whichmore than 18 million airline passengers fromacross the world picked their choices. PReSS ReleASe
Major Gainers
compAny opEn HIgH Low cLosE cHAngE TurnovErRafhan Maize Prod. 3200.00 3359.89 3224.00 3327.73 127.73 172Colgate Palmolive 1202.88 1239.99 1200.00 1239.95 37.07 246Nestle Pakistan Ltd. 4104.00 4149.00 4050.01 4135.00 31.00 27Sanofi-Aventis Pak 184.50 193.70 185.00 193.22 8.72 1,931ICI Pakistan 131.07 137.62 137.62 137.62 6.55 6,689
Major LosersUniLever Pak 7213.50 7200.00 7110.00 7110.00 -103.50 23Siemens Pakistan 680.40 680.00 665.00 666.57 -13.83 1,183Akzo Nobel Pak. 131.07 124.52 124.52 124.52 -6.55 563Millat Tractors 491.97 494.00 475.00 486.91 -5.06 15,576Engro Foods Ltd. 69.86 70.34 66.37 66.50 -3.36 6,398,960
Volume LeadersD.G.K.Cement 43.06 44.30 43.07 43.49 0.43 24,177,207Fauji Fert Bin 40.60 40.80 38.61 38.72 -1.88 10,554,509Fatima Fertilizer Co 25.09 25.34 24.85 25.00 -0.09 7,423,303Engro Foods Ltd. 69.86 70.34 66.37 66.50 -3.36 6,398,960NIB Bank Limited 2.19 2.35 2.15 2.32 0.13 6,104,879
Interbank RatesUS Dollar 94.3568UK Pound 145.7530Japanese Yen 1.1906Euro 115.1342
Dollar EastBuy sELL
US Dollar 94.90 95.60 Euro 114.80 116.11
Great Britain Pound 145.93 147.55 Japanese Yen 1.1858 1.1989 Canadian Dollar 92.42 93.95 Hong Kong Dollar 12.06 12.26 UAE Dirham 25.75 26.01 Saudi Riyal 25.25 25.47Australian Dollar 95.57 98.08
Business
CORPORATE CORNER
KARACHi: Qatar Airways Chief executive Officer Akbar Al Bakerreceives the coveted award of World’s Best Airline for the secondconsecutive year at the annual Skytrax World Airline Awards heldat the Farnborough Air Show.
KARACHi: ZOnG Director Corporate and Sales Ali Kamran, BitishDeputy High Commissioner Karachi Frances Campbell, JS BankManager Corporate and Commutations Syed naveed Rahman in agroup photo in Unilever Pakistan lux Style Awards 2012 at expoCentre Karachi.
RAWAlPinDi: Ali Akbar, Country Director Hashoo Foundation, presenting a commemorative shield to Sudarat T. Attanawin, wife of theThai Ambassador to Pakistan, on occasion of the Thai Cooking Demonstration arranged by the Hashoo Foundation in collaborationwith The Royal Thai embassy in islamabad, at the Pearl Continental Hotel, Rawalpindi, on July 12.
ISLAMABAD
Online
EUROPE’S worsening financial andbanking crisis and a sluggish re-covery in the United States areweighing on developing Asia’sgrowth prospects, according to
figures released by the Asian Development Out-look Supplement.
“Economic growth in developing Asia mod-erated during the first half of 2012 as slowergrowth in the US and euro area reduced de-mand for the region’s exports,” the report says.“Worries over the economic strength of impor-tant developing economies have also emergedrecently.” ADB’s latest figures predict develop-ing Asia will expand by 6.6 per cent in 2012 and7.1 per cent in 2013, lower than the 6.9 per centand 7.3 per cent forecast in ADB’s Asian Devel-opment Outlook.
In addition to the impact of Europe’smalaise, the region’s development in the firsthalf of the year has been hampered by slowergrowth in the two largest economies—the Peo-ple’s Republic of China (PRC) and India—as
well as the effect of the unwinding of policystimulus in some countries.
The PRC has seen a fall in net exports, in-dustrial production, and in fixed asset invest-ment, although government spending onhealth, education and big infrastructure proj-ects should give the economy something of aboost. As the PRC moves to a more sustainablegrowth model, growth may slow down morethan expected. ADB is predicting that gross do-mestic product in the PRC will increase by 8.2%in 2012 and 8.5% in 2013. In April, an 8.5% ex-pansion was forecast for 2012, rising to 8.7%next year. India’s outlook, meanwhile, isclouded by a combination of high inflation andpoor demand, both externally and internally.Inflation is expected to persist, primarily due toaccelerating food prices.
India’s economy is now expected to grow by6.5% in 2012, down from the previous forecastof 7.0%. In 2013, growth should go up to 7.3%,less than the previously expected 7.5%.Whilethe weaker global environment is expected toaffect growth in Southeast Asia, domestic de-mand and reconstruction activities should keepgrowth robust.
EurozonE crIsIsdampening developingAsia’s growth prospects
KSE sheds 69 points
after Moody’s ratingKARACHI
STAFF RePORT
Friday saw the Karachi share marketshedding 69 points because of, what themarket observers viewed, the investors’concern for a possible downgrading of theforeign and local currency bond ratings bythe international credit rating agency,Moody’s. Share trading at the KarachiStock Exchange (KSE) witnessed anacross-the-board panic selling during thesecond half on the back of majorcorporate earning announcements thatare due next week. “Stocks closed loweramid concerns for downgrade of foreignand local currency bond ratings to Caa1from B3 by Moody’s on macroeconomicconcerns,” said Ahsan Mehanti, a seniorstocks analyst and director at Arif HabibSecurities. On last trading day of theweek, the benchmark 100-share index slidby 69.45 points or 0.48 percent to close at14,332.29 points against Thursday’s14,401.74. The intraday high and lowstood, respectively, at 14,482.37 and14,313.87 points. “Panic selling witnessedin the second session in stocks across theboard ahead of major corporate earningannouncements at KSE due next week,”Mehanti said. The trading turnovermarked a slight improvement and stoodat 111.919 million shares compared to109.104 million of the previous tradingsession. In value terms, however, theshare trading set in red zone by dipping toRs 4.425 billion from Rs 4.629 billion aday earlier. “Institutional supportwitnessed in blue chip stocks onimprovement in Pak-US relation despiteconcerns for SC action for NROimplementation case against the PM,” theanalyst added. The market capitalizationalso ended up in negative zone andshrank to Rs 3.654 trillion as against Rs3.671 trillion on Thursday. The free-floatKSE-30 index also closed lower at12,402.31 points against the previous12,492.03 points, losing 89.72 points. D.GKhan appeared as a volume leader andcounted its traded shares at 24.177 millioneach priced at Rs 43.06 in the openingand Rs 43.49 in closing.
KARACHI
STAFF RePORT
Takaful, the Islamic alternative of insurance is a schemebased on the principles of mutual assistance in compliancewith the provisions of Islamic shariah, and which providesfor mutual financial aid and assistance to the participants incase of occurrence of certain contingencies and whereby theparticipants mutually agree to contribute to the commonfund for that purpose.
The existing Takaful rules were issued in year 2005. Dur-ing the course of business activity and implementation ofthese Rules, a number of practical issues were highlighted bythe stakeholders. To address these concerns, the Securitiesand Exchange Commission of Pakistan (SECP) constituted a
committee in 2007 with a mandate to review the existingTakaful rules and recommend the possible enhancements.
The committee laid a special focus on the areas includingthe coherence with accounting provisions of the SEC (Insur-ance) Rules 2002, guidelines for allowing conventional insur-ance companies to do Takaful business through specialized“window” operations, prescribing of percentages in respect ofvarious modes of the Shariah complaint investments for thepurpose of determining solvency, among others.
The Committee after detailed deliberations finalized andsubmitted its recommendations based on which the newTakaful Rules have been drafted. The SECP reviewed thedraft rules and after seeking expert opinion of Shariah schol-ars and legal experts, the draft new Takaful Rules have beenapproved by the SEC Policy Board.
SECP launchesnew Takaful rules
PRO 12-07-2012_Layout 1 7/14/2012 4:43 AM Page 2
