profit.com.pk Wednesday, 23 May, 2012

PETROLEUM PREDICAMENT

BUDGET BRAWL BRIMS

KARACHI

STAFF REPORT

THE federal government wantsthe provincial governments totake a lead on new developmentprojects after the transfer of in-creased revenues to the federat-

ing units in the post-NFC award regime.Assuring the foreign investors of zero newtaxes in the forthcoming federal budget, thevisiting Finance Minister Dr Abdul HafeezShaikh told the members of Overseas In-vestors Chamber of Industry (OICCI) afterthe NFC award there has been a significantreduction in the center’s revenue share.

This, he said, had happened without acorresponding reduction in the federal gov-ernment’s expenditures on account of debtservicing or other necessary expenditure ondefense, security and ongoing projects.

He said his side was now expecting theprovinces to take a lead on new development

projects. Dr. Shaikh was accompanied by Secre-tary Ministry of Finance Abdul Wajid Rana,Chairman Federal Board of Revenue MumtazHaider Rizvi, Member Inland Revenue ShahidHussain Asad and other senior FBR officials.The minister said despite global meltdown andchallenging business environment, country’s 3.7percent GDP growth during fiscal year 2011–2012 was comparable to growth rates across theregion, excluding those in China and India. Fur-ther, Dr. Shaikh said the FBR had also been suc-cessful in generating 17 percent additionalfederal revenues in 2010–2011 that are expectedto scale up further to 25 percent in the currentfiscal. In his briefing to the finance minister,President OICCI Humayun Bashir said some 45percent of OICCI members invested about $1billion in 2011 and were planning to invest over$ 3b over the next two to five years.

Bashir said these numbers could be in-creased considerably if the government ad-dressed key concerns such as security, energyshortage and ensure effective policy imple-

mentation. OICCI members raised importantissues concerning the taxation structure inlight of the upcoming budget, including lossof revenue accruing from the tax exempt sec-tor and evasion in the form of rampant smug-gling of consumer goods, especially under thegarb of Afghan Transit Trade. Other taxationproposals forwarded to the government byOICCI focused on broadening of tax netthrough linkages of FBR databases withbanks and other business centers, doing awaywith minimum tax and fixed tax regimes forcompanies, introducing a uniform tax rate of30 percent for all businesses irrespective oftheir legal status, giving a one-time tax incen-tive for attracting Foreign Direct Investment,simplifying procedures for sales tax refund,allowing adjustments of sales tax on pharma-ceutical inputs and reduction and consolida-tion of different levies such as stamp duty.

Dr. Shaikh appreciated the suggestionswhich, he said, would be given due consider-ation in the run-up to the budget.

Heaven protects children, sailors and auto industry Page 02

A tale of two kitties g Centre expects provinces to take lead in uplift projects after transfer of resources under NFC regimeg No new taxes in next budget, FM tells foreign investors g OICCI draws government towards smuggling of consumer goods under Afghan Transit Trade

ISLAMABAD: The mandarins of the economic ministries spent a busy day onTuesday sorting out strategy to counter the provincial governments hard tactics toseek more funds for their development programmes in all the devolved sectors forthe next fiscal year. An official source said that the provincial governments werelikely to seek enhancement in their allocation for the provincial programmes fromthe centre at the meeting of the National Economic Council on May 24.Usually the Finance Ministry keeps a cushion of Rs 5 billion for the discretion ofthe Prime Minister but we have information that each provincial government isplanning to seek additional Rs 5 to 10 billion for social sectors which primarily fallunder their jurisdiction, the source said. To reign in the provinces, the federal gov-ernment has dropped the proposed plan of Youth Fund, proposed to provide smallloans to technical and vocational educated youth to set up their own businessesfrom the meeting. The plan was dropped as youth affairs falls under provincialgovernments and centre did not wanted to become hostage to political pressures,the source said adding that even some allocation for social sector was still madeunder prime minister and president pressure. The source said the government was convinced to drop the youth fund, as officialestimates projected new employments of 100,000 next fiscal year mainly due tothe financing of the ongoing social sector and infrastructure projects.The Annual Plan Coordination Committee (APCC) had finalized a total nationaldevelopment outlay of Rs 825.2 billion, with federal component of Rs 350 billionand provincial share of Rs 475 billion for the next fiscal year 2012-13. The initial es-timate of foreign exchange component was Rs 90 billion but has been enhanced toRs 100 billion due to the latest projections of the Economic Affairs Division.The source said the federal government was in no position to dole out extra financ-ing to the provinces and it would be strictly opposed at the NEC meeting. Prioritywill be given to complete on-going projects, as 96 percent or Rs 335 billion havebeen allocated for ongoing schemes. Only 4 percent allocation is set for new prior-ity projects mainly in the energy and infrastructure sectors.He said that the number of water sector projects have been increased from 37 proj-ects this fiscal to 45 projects next fiscal and energy sector projects from 55 this fis-cal to 86 next fiscal. These projects are mainly for improving power distributionnetwork. Railways is allocated Rs 1.5 billion next fiscal to get new locomotivesunder an plan of Rs 150 billion for purchasing new locomotives while an allocationof Rs 1.2 billion has been made for a pilot project to introduce mechanized trackmaintenance. The government estimates a GDP target of 4.3 percent which will beachieved through improvement in productivity and competitiveness, reforms inthe markets, promoting cities as regional clusters, improve connectivity, reformingthe civil service, institutions and PSEs, harnessing the potential of youth and em-barking on result based management. AMER SIAL

Provinces demand more fortheir development programmes

ISLAMABAD

AMER SIAL

The harder the government tries to expeditethe Liquefied Natural Gas (LNG) imports themore it faces opposition from its own ranksas at a recently convened meeting of theministerial committee serious difference ofopinion emerged between the members overthe use of Port Qasim for importing LNGwith suggestion of shifting it to the Gwadarport.

An official source said that a meetingconvened on May 21 to discuss sovereignguarantee for LNG imports ended abruptlywhen the Special Advisor to Prime Ministeron Water and Agriculture Kamal MajeedUllah and Petroleum Minister Dr. Asim Hus-sain had a heated argument over which portto be used for LNG imports. The Advisor leftthe meeting in protest. The meeting was heldwithout its convener Minister for IT RajaPervez Ashraf and it was decided that themeeting would be held again on May 25.

Advisor’s point of view was that the PortQasim channel was narrow and under heavyuse, incase of any incident the channel couldbe blocked causing disruption in all kind of

supplies. He suggested using Gwadar Portfor LNG imports. However, the PetroleumMinister termed Port Qasim ideal for im-porting LNG and its supply into the nationalnatural gas transmission network. The Advi-sor struck to his argument terming Gwadarport more viable for LNG imports and re-quired infrastructure could be developed onurgent basis.

The Ministry of Finance, the source said,is reluctant to provide any kind of sovereignguarantee for LNG imports, which the Petro-leum Ministry argues is not possible as allthe seller states want a long term agreementbacked by sovereign guarantee for a govern-ment to government (G2G) basis deal.

Pakistan is faced with a severe gas short-age exceeding 2 billion cubic feet per day(bcfd) as the local production is unable tokeep pace with the requirements of the coun-try. Petroleum Ministry is stressing import-ing LNG to mitigate the crisis. The importedLNG would be received, stored and re-gasi-fied in LNG terminals and delivered throughconnecting pipelines to the existing trans-mission pipeline network as Re-gasifiedLNG (RLNG).

Algeria and Qatar are both interested to

supply LNG to Pakistan provided a deal issigned on a government to government basisfor long term supply contract. A MoU hasbeen signed with Qatar and they have pro-vided a term sheet subject to negotiation.Qatar has also required guarantees by a sat-isfactory credit support and an acceptableperformance guarantee. The RLNG price willbe factored in the Weighted Average Cost ofGas (WACOG).

Provinces have expressed concerns overthe federal government’s plans to importLNG. Provincial government of KhyberPhaktunkhwa has already asked the centreto keep them in loop on natural gas importprojects as the WACOG would be affectingthe consumers.

In May 2011, the government invited ex-pression of interest from private sector com-panies interested in capacity allocation andwilling to develop their own LNG FSRU, ar-ranging their own supply of LNG and havingtheir own buyers of re-gasified LNG (RLNG)which also may include the Sui Companiesunder third parties access regime. Three com-panies were given construction licenses byOGRA for setting up LNG terminals and allo-cated them capacities in the pipeline network.

Ministerial committee adds fuel to the fireg Difference of opinion on LNG slows down progress

Someone wants to taste champagneon a beer budget

KARACHI

STAFF REPORT

The analysts expect the upcoming FY13 budget to be a non-event for theoil downstream sector (OMCs and refineries), with the government reveal-ing the customary Petroleum Levy and dividend targets from state-ownedPSO. “Though, the major theme of the budget would be the resolution ofenergy crisis, ensuing eradication of circular debt that has marred thecash-flow position of the downstream sector, particularly PSO,” said Nau-man Khan of Topline Research. However, he said, we attach low probabil-ity of government following through its plan on account of politicalconsideration. Despite recent 16% (Rs1.25-1.68/KWhrs) increase in elec-tricity tariff by the gov’t there still exist a 20-25% gap between cost of gen-eration and tariff that would force the gov’t to overshoot its subsidy targetand circular debt to remain a factor in coming year. The government islikely to announce its PL target of Rs120-140bn in FY13, in line with lastyear target but higher than estimated collection of Rs70bn in FY12. Givenpolitical consideration to keep the domestic oil prices in check, we attach adownside risk to these estimates. Similarly, the gov’t would also reveal itsdividend estimates from its state-owned OMCs, PSO. We estimate cashdividend of Rs12 per share from the company in FY13. On the taxationfront, we also expect no big surprises with 7.5% deemed duty on HSD andconcessionary 0.5% of turnover tax for downstream oil sector to continuein the coming year. The gov’t would reaffirm its commitment for the over-come the energy crisis by showing its intent to restructure energy chainand targeted subsidy through tariff rationalization. However, we believethe political compulsion ahead of the general election would keep the gov’tto follow through its plan of energy sector reform. Hence, despite 16% in-crease in the electricity tariff, gov’t is likely to overshoot its subsidy targetand actual subsidy to stand in a tune of Rs200bn.

CHEERS!

PRO 23-05-2012_Layout 1 5/23/2012 12:33 AM Page 1

news02Wednesday, 23 May, 2012

LOW IN FACT

NOT ANY MORE!

ISLAMABAD

ONLINE

THE government has pro-posed to abolish the protec-tion of Auto Industry toprovide fair competition toexisting players which will

go a long way to bring down the pricesof locally made vehicles. However, AutoIndustry has expressed its deep reser-vations over government proposedfive year (2012-17) Auto IndustryDevelopment Plan-II, said anofficial of Auto industry.

According to an of-ficial of the Ministryof Industries, theg o v e r n m e n twants graduallyreduce the pro-tection of AutoIndustry by re-ducing the tar-iff of CompleteBuild Unites(CBU) to ensureavailability of im-ported substitutesfor consumers at afford-able prices and by rationalizing tariffsof Complete Knock Down (CKD) toprovide fair competition to existingplayers through new investments andmore options for consumers.

“The government proposed techno-logical up – gradation of the vendor in-dustry to rationalize the prices oflocally made vehicles by introducingfair competition for existing assem-blers,” said the official, who spoke on

the condition of anonymity.The government also proposed re-

duction in the tariff of upto 1000cc carsfrom current 55 per cent to 40 per centfor next five years, for 1001 to 1500ccfrom 60 per to 50 per cent, an increaseof 5 per cent has been proposed 1501to2000cc cars from current 75 per cent.The tariffo f

CKD fornon-localized is currently 32.5 per centwhile it was proposed 20 per cent fornext five years, for CKD localized it isproposed 35 per cent against its currenttariff of 50 per cent. LCV’s tariff is cur-rently 60 per cent while it is proposed50 per cent for next financial year2012-13.CKD and component localizedtariff is currently 50 per cent while it isproposed 35 per cent for next fiveyears. According to the official, the gov-

ernment has also proposed reducingTariff slabs for CBU import of cars fromexisting 5 to 4, in line with HS CodingSystem of World Customs Organiza-tion. Rationalizing CKD & CBU tariffsin line with the trends followed by suc-cessful economies of the Region.

Official further told that the govern-ment also proposed withdrawal

of Regulatory Duty of 50 percent on cars exceeding

1800cc, being an imped-iment to growth in

this segment and re-visiting the existingschemes for importof used vehicles soas to circumventmisuse there of,besides encourag-ing import of newvehicles over the oldand used ones.

“Lowering CKD rateand simultaneously keeping

CBU rate higher is not only in linewith the trend followed by successfulRegional economies, but would also at-tract new investments, technologytransfer and providing even playingfield to existing assemblers and vendorsin view of MFN status to India,” addedthe official.

The official further explain that ahigher rate for CBU import would en-courage local assembly/ manufacturingover imports, there by attracting in-vestments and simultaneously safe-guarding foreign exchange reserves,besides creating more creating moreemployment opportunities.

Heaven protects children,

sailors and auto industryg Govt to abolish protection of auto industry to bring down vehicle prices

ISLAMABAD

ONLINE

Pakistan is the major victim of the drug Production inAfghanistan; approximately fifty per cent of the drugtraded from Afghanistan has been consumed here.

Director General Ministry of Narcotics Control Mr.Shahid stated this on Tuesday while addressing an ad-vocacy event on drug prevention, gender justice andprotection project here at a local hotel.

The DG said that the responsibility of the provinceshas been increased to an extended level to prevent themenace of drug from their relative areas after the 18thconstitutional amendment. He expressed grief that roleof the federal as well as provincial governments is verylimited to cope with the existing challenges. He addedthat the cooperation of the provinces and federal gov-ernment should be raised to a certain mark to cure andaware the drug addicts about consequences of its use.

He opined that there is lot of need to handle the en-forcement side as well. He highlighted that sixty per centof the drug addicts in Pakistan lie between the ages of

15 to 30 years. He said that private educational institu-tions are more vulnerable than the government educa-tional institutions to attract the students towards drugaddiction. He added that extra curricular activities, roleof family as well as community is most important to pre-vent the students from this menace.

Moreover, he said that enhanced role of federal andprovincial governments, effectiveness of law enforce-ment agencies, improved role of family, community andeducational institutions, and coordinated efforts ofNGOs could help a lot to meet the today’s challenges.

He expressed that addiction rate was observed highwhere tuition rate was high, where both parents wereworking and where parents don’t have enough time fortheir children. He also lauded the serious attitude ofPakistani government in fighting against drugs and nar-cotics and said that Pakistan has second position in thiswake. He stated that only five per cent of the drug isbeing confiscated by the enforcement agencies acrossthe world however, 95 per cent reaches to end users ordrug consumers. He highlighted that Afghanistan is theonly source of heroin supply to Pakistan.

High on tradeg ‘Pakistan major victim of Afghan drug trade’

ANOTHER PLUNGE

KARACHI

ISMAIL DILAWAR

The Pakistani rupee depreciated to a record low Tuesdayon the back of what the currency dealers viewed multipleattributive factors. Though stable against regional cur-rencies, the day saw Pak rupee devaluing by 50 and 20paisas, respectively, in the inter-bank and open markets.According to dealers, the rupee was trading at Rs 91.70and Rs 90.50 on the inter-bank and open market onTuesday against Rs 91.60 and Rs 90.30 of Monday.

“This hike is not unusual and always happens be-fore new fiscal budgets and the Hajj,” said Malik Bostan,chairman Exchange Companies Association of Pakistan(ECAP). Last year, in these days dollar had appreciatedto Rs 93 before sliding back to Rs 89, he recalled.

Reasons for rupee depreciation, the money ex-changer said, were ranging from the making of pre-bud-get financial closures by the public and private sectorcompanies to hectic buying of the greenback by the Hajjpilgrims in the open market. Bostan attributed freshbuying spree by the pilgrims to the government’s with-drawal of the $ 1000 traveler cheques it used to provideto Hajis in the past. “Now as Pilgrims are buying dollars

by their own before three to four months of the Hajj thusshooting demand for the greenback up,” he elaborated.Bostan warned the general public against purchasingand holding the dollars saying buying should be need-based only. The currency experts believe that interestpayments on the country’s external loans, which the cen-tral bank has counted at over $ 62 billion, were also pres-suring the value of local currency. They said amid poorforeign inflows the repayment of foreign liabilities wouldbe a major drain on the country’s depleting foreign ex-change reserves. According to State Bank, up to May 11(2012) country’s dollar reserves stood at $ 16.103 billion.The continued contraction in foreign exchange reserveswas not a good omen for the rupee, warned the experts.“The debt repayments would certainly be a major drainon the dollar reserves if foreign inflows continue to re-main poor,” said a currency expert. Even the stock mar-ket is not an exception when it comes to rupee-dollarparity as Tuesday saw the equity investors seemed con-cerned over the rupee losing face against the Americancurrency. According to Ashen Mehanti, a senior stockanalyst and director at Arif Habib Securities, the in-vestors moved cautiously due to their “concerns for fallin rupee dollar parity and rising current account deficit”.

Budget, Haj pull down rupee

LAHORE

ONLINE

The Lahore Chamber of Commerce andIndustry (LCCI) Tuesday expressedgrave concern over sharp decline in for-eign investment that fell sharply by$926.6 million, or 66.5 percent, to$466.5 million during July-March2011/12 against $1.393 billion in thecorresponding period last year.

In a statement issued here, theLCCI president Irfan Qaiser Sheikhsaid that rising risk perception aboutinvesting into Pakistan is hitting hard

the entire economy and needs to betackled through a comprehensive pol-icy approach by involving Chambers ofCommerce in the country.

The LCCI President said that severeenergy shortfall, bad law and order sit-uation, institutional fragility and thepolitical instability were the major fac-tors keeping the foreign investors away.

Irfan Qaiser Sheikh said that a spe-cial committee comprising members ofthe Parliament, Presidents of Cham-bers of Commerce and Industry andrepresentatives of Association shouldbe formed to identify the solutions to

attract foreign investment that is a pre-requisite to economic growth.

The LCCI President said that theproposed committee should also betasked to look into the existing policyframework and if there is a need to re-design new policies it should immedi-ately initiate work on them.

Irfan Qaiser Sheikh said that all thedeveloped countries accord special im-portance to economic issues and thechallenges. But in Pakistan the situa-tion is the other way round and theeconomy is on the bottom of govern-ment to-do list.

LAHORE

ONLINE

Chairman All Pakistan Textile Mills Associ-ation (APTMA) Mohsin Aziz has said thatthe textile exports have surged by 10% inApril 2012 against the month of March 2012simply with one direction of President AsifAli Zardari for sustainable energy supply tothe industry. According to him, the Ministerfor Petroleum Dr Asim Hussain and Minis-ter for Water and Power Naveed Qamar en-sured sustainable energy supply to theindustry on the direction of President AsifZardari two months back, which helped in-dustry to increase production mainly meantfor exports.

The textile exports have registered anincrease of $100 million in April 2012against March 2012 Month on Month basis,surging to $1.14 billion in April against ap-proximately $1 billion in March 2012.

According to him, five days a week gassupply has improved the textile industry ex-ports immediately, which must by food forthought for the economic managers of thecountry. He said the textile industry caneasily meet previous year target if five daysa week gas supply continues and sincere ef-forts are made to increase it to six days a

week supply. However, he said, the exports in quan-

titative terms are still on decline as of July-April 2012 against corresponding periodincluding fabric by 15 percent, knitwear by26 percent, bed wear by 20 percent andreadymade garments by 27 percent. , Fur-ther, he said, there is 10 percent shortfall invalue terms during the same period. He saidthe export shortfall has crossed $1.1 billionin July-April 2012 against the correspon-ding period.

It may be added that all these subsec-tors of textile value chain are consumers ofyarn, meaning thereby decline in exports isdirectly impacting the spinning industry, hesaid, urging that the textile industry shouldbe supplied with gas and electricity supplyon priority basis to overcome the shortagesin the production of exportable surplus.

The APTMA Chairman has expressed thehope that the government would continuewith uninterrupted supply of energy, bothelectricity and gas to the export-oriented,labour and capital intensive textile industryto achieve $1.2 billion per month ahead. It isthough not possible to achieve previous yearrecord exports of $14 billion but still it wouldbe closer to the last year exports if energysupply continues, he added.

NO BRAINER

Textile troubles tamedg Textile exports surge with sustainable energy supply to

industry: APTMA

ISLAMABAD

ONLINE

The Pakistan Economy Watch (PEW) on Tues-day expressed scepticism about deal betweenNational Accountability Bureau (NAB) andKarachi Stock Exchange (KSE) to bring rougebrokers to book. This is a showy misrepresen-tation intended to conceal unpleasant realityand gain popularity, it said.

The stock market crashes from 2000 to2008 were engineered in which top govern-ment functionaries and influential brokerswere directly involved, said Abdullah Tariq,SVP, PEW in a statement issued here today.

He said that why NAB and KSE are deter-mined to do something about the 2008 crashafter four long years. Masses deserve to knowthe outcome of investigations of all the fivestock market crashes that took place in May2000 and March 2005, he said.

Was any influential culprit identified, heldresponsible, any criminal cases registered, orproperty of any broker confiscated to properlycompensate victims, he questioned.

Abdullah Tariq said that the people andcompanies lost some Rs 200 billion in 2008crash that benefited some influential politi-cians and brokers.

The PEW official said Musharraf firedChairman SECP during EID holidays to savebrokers from the clutches of law. Since thenSECP has become a toothless watchdog safe-guarding the interest of broker mafia.

Former chairman SECP Dr Tariq Hassanblamed former PM Shaukat Aziz, former Min-ister of State for Finance Omar Ayub Khan andformer Prime Minister’s Adviser Dr SalmanShah for involvement in the scams.

Abdullah Tariq said that record number ofcrashes took place during Shaukat Aziz era andfinance minister and prime minister while anyaction against the perpetrators was avoidedwhich left criminals more fearless and marketshighly vulnerable. He asked the Chief Justiceto take note of the situation as the institutionsmeant for safeguarding the rights of massesand investors and the departments entrustedfor eradication of corruption have become use-less entities wasting public money.

Foreign investment decline gives LCCI sleepless nights

P(H)EW!NAB, KSE deal to bring rouge brokers to book termed eyewash: PEW

PRO 23-05-2012_Layout 1 5/23/2012 12:33 AM Page 2

news

Wednesday, 23 May, 2012

03

Wateen distributes prizes for winners ofPITB Ideas Hunt competitionLAHORE: Wateen Telecom, Pakistan’s leading con-verged communication services provider, distributedlaptops to the winners of the Ideas Hunt Competitionfor e-Governance held by the Punjab InformationTechnology Board (PITB). Wateen Telecom gave away latest Laptops to the win-ners of the competition where Anwar Khan (Head ofConsumer Sales Wateen Telecom), represented thecompany and distributed prizes and certificatesamongst the winners. Speaking on the occasion AnwarKhan said, “The ideas generated through this exhibi-tion are a further proof of how internet accessibility canbe a harbinger of social change, a philosophy that Wa-teen wholeheartedly believes in.” The Ideas Hunt Com-petition was a part of the e-Governance exhibition forthe IT industry commentators, academia, governmentdepartments and public at large, held at the Arfa Tech-nology Park from April 28 - 29, 2012. The objective ofthe event was to create awareness amongst the publicand other stakeholders about the IT based good gover-nance projects of the Government of Punjab.

PM visits PTCL pavilion

ISLAMABAD: Country’s largest provider of quality tele-com services, Pakistan Telecommunications CompanyLimited (PTCL), celebrated its 1 Million Broadband Cus-tomers mark on the commemoration of World Telecom-munications and Information Society day at thePak-China Friendship Centre in Islamabad. Prime Minis-ter Syed Yousaf Raza Gilani inaugurated the One MillionBroadband customers’ celebrations at the Pak-ChinaFriendship Centre. The Prime Minister visited the Pavilionof PTCL and experienced firsthand the products and serv-ices offered by PTCL. PTCL SEVP commercial, NaveedSaeed briefed the PM about the latest offerings and fea-tures of PTCL’s exciting product line. Prime Minister SyedYousaf Raza Gilani took deep interest in the product andservices on display and expressed his pleasure at the tech-nological innovations which PTCL is undertaking.

KARACHI:The Thai Airways held travel mart

at a Mall in Clifton. Picture shows Consul

General of Thailand Mr. Wichai Sirisujin, along

with Consul General of Indonesia Mr.Rossalis

Rusman Adenan, Mr. Polapat NeelaBhamorn,

General Manager Thai Airways and Mr. Arif

Suleman, honorary trade advisor of Thai Gov-

ernment inaugurating the mart.

Get 1000 free minutes and SMS withWarid Sim Jagao

KARACHI: With a promise to keep coming up withconsumer-friendly offers and promotions, Warid intro-duces a refreshing SIM Jagao Offer with more valuethan ever before. All those customers who have notused their Warid SIM since 1st April, 2012, can startusing it now to receive 1,000 FREE on-net minutes and1,000 SMS without any additional charges.Not only this, subscribers will also get 100% bonus onevery recharge till the validity of this promotion. Forevery recharge between Rs. 50 - 500, customers will getFREE bonus minutes worth the amount of therecharge. So the greater the recharge amount, the big-ger the bonus! These bonus minutes will only be eligi-ble for free calls to all Warid numbers with free SMS toall local networks. With the best quality network andCustomer Services, users can enjoy amazing call ratesas low as Rs.3.99/hour for all calls to FnF. No othernetwork is offering such rewards, which makes this aunique opportunity indeed.

Calza campaign launched

KARACHI: Service Sales Corporation (SSC), Pak-istan’s leading footwear retailer has launched its newcampaign for Calza, its brand for men’s slippers, san-dals, and shoes. The campaign, “Meri Dharti MeraCalza” focuses on a rural man, who in pursuit of hisdreams goes to the big city and finds success. The storyrevolves around the man’s achievements and his jour-ney back home to the land where his heart belongs. TheTVC has a sweet, melodious jingle that is very humma-ble and a treat to listen to. Moammar Rana’s presencelends the TVC an exciting and larger than life feel.

HEC Scholar secures ‘First-Position’ at IAESchool of Business AdministrationLYON: Mr. Khurram Shahzad who pursues MS/PhDunder HEC scholarship program “Overseas Scholar-ships for MS/MPhil leading to PhD in Selected Fields(Phase – II)” has pitched the brilliant record by gradu-ating as a ‘Top of the Class’ from internationally ac-claimed IAE School of Business Administration LyonFrance, in the Master of Business Administration Pro-gram – session 2010-11. In this reputable internationalMaster Program, exceptional students from all over theworld are carefully selected and are rigorously pre-pared for competitive international environment.

NUST Conducts an International Workshopon ‘Occupational Safety and Health Training’RAWALPINDI: National University of Sciences andTechnology conducted an international workshop onOccupational Safety and Health Training for Owners,Constructors, Consultants and Administrators on May22 in SCEE Auditorium. Member Implementation &Monitoring, Planning Commission of Pakistan Lt Gen(R) Shahid Niaz HI(M) was the chief guest. The two-dayworkshop (May 22-23) aimed at introducing the audi-ence with safety culture, hazards, safety practices, safetytraining, safety management and OSHA standards.

CORPORATE CORNER

Major Gainers

Company Open High Low Close Change Turnover

Mithchells Fruit 214.76 225.49 214.76 225.49 10.73 986Wyeth Pak Limited 770.00 780.00 755.00 780.00 10.00 101Shezan Inter. 184.07 193.27 185.88 193.27 9.20 24,550Pak.Int.Cont SD 157.50 165.37 161.00 162.62 5.12 8,495Pak Services 150.84 158.38 150.84 155.26 4.42 180

Major Losers

Rafhan MaizeXD 2900.00 2880.00 2780.00 2827.18 -72.82 11Nestle Pakistan Ltd. 3990.00 4024.99 3950.00 3978.29 -11.71 13AL-Ghazi Tractor 205.06 208.50 195.00 196.26 -8.80 4,474Clariant Pak 163.07 163.07 156.05 157.62 -5.45 19,042Bata (Pak) Limited 644.22 670.00 620.00 640.00 -4.22 65

Volume Leaders

JS Bank Ltd 5.20 5.89 5.10 5.80 0.60 10,720,366Jah.Sidd. Co. 16.57 16.89 16.21 16.34 -0.23 8,070,482D.G.K.Cement 40.49 40.66 39.70 40.28 -0.21 7,217,367Bankislami Pakistan 10.83 10.74 9.83 10.11 -0.72 6,841,754Engro Foods Ltd. 64.75 66.20 64.75 65.63 0.88 3,403,222

Interbank RatesUS Dollar 91.2947UK Pound 144.4282Japanese Yen 1.1510Euro 116.5742

Dollar EastBuy Sell

US Dollar 91.80 92.40Euro 116.50 117.78Great Britain Pound 144.43 145.97Japanese Yen 1.1466 1.1588Canadian Dollar 89.31 90.77Hong Kong Dollar 11.68 11.85UAE Dirham 24.90 25.14Saudi Riyal 24.42 24.62Australian Dollar 89.51 91.93

KARACHI

STAFF REPORT

ON Tuesday the bulls keptdominating Karachistocks market with thebenchmark, KSE 100-share index skyrocket

266.34 points. Ahsan Mehanti, Directorat Arif Habib Investments Limited, saidthat the Pakistan stocks closed bullishamid higher trades as investors cheerPak-US progress on resumption ofNATO supplies. The day saw the indexclosing up by 1.92 percent at 14,142.08points against 13,875.74 points of Mon-day. The trading volumes at the ready-counter were recorded higher at 179.108million shares against 81.448 millionshares of the previous day. The tradingvalue was up to Rs 5.259 billion comparedto Rs 2.121 billion of the previous session.The intraday high and low, respectively,stood at 14,157.81 and 13,875.74 points.

He added that the Institutional sup-port in oversold market as global stocksand commodities recover after weak ses-sions. The market capitalization grewmodestly and increased to Rs 3.611 tril-lion from Rs 3.544 trillion a day earlier.Of the total 372 traded scrips, 226gained, 76 lost and 70 finished as un-

changed. The free-float KSE-30 indexalso gained 260.79 points to close at12,267.03 points against the previous12,006.24 points. The KSE all-shareindex closed with a gained of 185.51points to 9,935.82 points as against9,750.31 points. Mehanti stated that thespeculations over favorable federalbudget announcements for corporatesector and expectations for release of USmilitary aid to Pakistan played a catalystrole in bullish sentiments despite con-cerns for fall in rupee dollar parity andrising current account deficit.

Jahangir Siddiqui Company was theday’s volume leader counting its tradedshares at 19.698 million with the open-ing and closing rates standing at Rs 16.34and Rs 16.91, followed by P.T.C.L.A,D.G.K. Cement, Lafarge Pakistan andFauji Cement with turnover of 17.252million, 14.288 million, 10.356 millionand 7.757 million shares respectively.

On the future market, the turnoverrecovered by over one million shares to20.879 million against 19.752 millionshares of Monday. The Unilever PakistanXD and Unilever Food XD, up Rs 100.00and Rs 90.00, led highest price gainerswhile, Bata Pakistan Limited and Shah-taj Sugar Mills, down Rs 19.03 and Rs3.66 respectively, led the losers.

Bulls stampede likethere’s no tomorrow

RED RAG: NATO SUPPLY RESUMPTIONBanks vie to prevent further wind twisting g Islamic, Asian banks agree to fund for wind power projects

RAWALPINDI

ONLINE

The Islamic Development Bank and the Asian DevelopmentBank has agreed to a $133 million financing plan to develop twowind projects in Pakistan as the nation seeks new renewablesources to overcome power shortages. Pakistan’s Fauji Founda-tion, set up as a charitable trust for former servicemen, and thenation’s Tapal Group are backing the projects totaling 100megawatts, according to a statement by the Islamic Develop-ment Bank. Pakistani Prime Minister Yousuf Raza Gilani saidMarch 6 the nation has “enormous potential” for wind farms,solar power, geothermal and biofuel energy. Pakistan needs todiversify power sources away from oil and gas to overcomeblackouts that beset the country restricting its growth and trig-gering protests in some cities this month. The gap betweenpower demand and supply surged to a record 7,500 megawattson May 10, the media reported. Pakistan received private sectoroffers to build 1,500 megawatts of renewable power, accordingto the country’s Alternative Energy Development Board.

UBL Funds announces interim payout KARACHI

STAFF REPORT

UBL Fund Managers announced an interim payout for the pe-riod that ended on May 20 (2012) from its open-end investmentschemes. The company announced a payout of Rs 1.65 per unitsof par value Rs 100 from its money market scheme, UBL Liquid-ity Plus Fund (ULPF) which gave an year to date return of11.43% p.a. From UBL Government Securities Fund (UGSF), theCompany announced a payout of RS. 1.55 per unit of par valueRS. 100. This scheme has given a year to date return of 12.34%p.a. While from UBL Savings Income Fund (USIF), UBL Fundsannounced a payout of RS. 1.85 per unit of par value of RS. 100.This scheme has given a year to date return of 12.24% p.a.Where as on UCPF-II, a UBL Capital Protected Fund, a payoutof Rs.6.20 per unit of par value of Rs.100 has been announcedand has so far given a year to date return of 6.30%.

PSO eyes theceiling g To maximise product uplifting from local sources,refineries

ISLAMABAD

ONLINE

As part of the new vision, PakistanState Oil (PSO) has embarked on amission to strengthen the petro-leum products’ supply line by max-imizing fuel uplifting from localrefineries and local fuel oilblenders.In the pursuit of this objective,

the company has recently enteredinto sale purchase agreement andrenegotiated its contract with tworefineries namely BYCO Petroleumand PARCO and one local fuel oilblender i.e Bakri Trading Com-pany.Officials of PSO told Online thisinitiative will benefit the nationaleconomy by reducing the nation’sdependence on imported oil prod-ucts, reduce foreign exchange ex-penditure, encourage foreigninvestment in the domestic energysector and maximize local refiner-ies’ through-put. In the recent agreements signed bythe company, the payment modali-ties will involve PSO opening Let-ters of Credit (LC’s) for itssuppliers. However, this arrange-ment can only be sustained if backto back LC’s from the power enti-ties are ensured to PSO so that thepayment cycle in the energy sectoris streamlined and accumulation offurther debt is minimized.Official further said that PSO hasasked power sector to open Letterof Credit for state agency this waychain of payments would improveand circular debt will stop fromfurther accumulation.PSO takes pride in playing aproactive part in the energy supplyvalue chain and await the remain-ing stakeholders to come forwardto ensure success of this endeavorin the best interest of the nation.

g KSE 100-share index skyrockets 266 points

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