Saturday, 19 November, 2011Pages: 8

laSt nail in the Coffin

ISlaMaBaD

JaLaLUDDIN RUMI

WHILe the country is facing a crip-pling power and gas shortfall thatis likely to worsen further in thecoming months of winter, the gov-

ernment is considering to restrict the consump-tion of compressed natural gas (CNG) in privatelyused CNG fitted vehicles for six month to oneyear, minister for Petroleum and Natural re-sources dr Asim Hussain said in a meeting of Na-tional Assembly standing Committee on Financeon Friday. The ministry of Petroleum and Naturalresources has sent a summary to the economicCoordination Committee (eCC) for approval todiscourage consumption of CNG in private carsexcept CNG buses and transport vehicles used bypassengers, the minister said.

Ban on CnG KitSHussain said that the ministry would ask the cabi-net to bar car companies from fitting CNG kits inprivate vehicles at their manufacturing facilities.The ban would be implemented on CNG fitted im-ported cars, CNG kits and cylinders. The govern-ment aimed to impose a ban on CNG usage in allkinds of cars as vehicle owners could afford petroland diesel, though they were expensive, he said.

minister said that Government intends to reducethe difference between prices of CNG and otherfuels as there is a huge price difference betweenpetrol and diesel that spurred people to switch toCNG. He said people need to realise that the coun-try is facing a severe gas shortage and gas shortfallwould further exacerbate in the coming days if peo-ple did not follow the gas load management plan.He said that in this year under the load manage-ment plan gas load shedding will be observed insindh and Punjab while only 90 mmcfd gas will beprovided to Quetta. However, the CNG filling sta-tion operators may react strongly to this move.CNG has a share of around 8 per cent in total gasconsumption. Public transport vehicles startedconverting to CNG a few years ago and today alarge number of small and big buses are runningon this cheaper fuel.

PetroleuM levy and GaS infraStruCture BillNational Assembly standing Committee on Fi-nance also approved gas infrastructure develop-ment cess and petroleum levy bills with govtaiming for rs35 billion under the gas cess; $1b fordedicated Karachi-Lahore LNG pipeline. Theselevies would not be chargeable on domestic sectorconsumers and general public, limiting its scope to

the companies. The senate standing Committee onFinance already approved these two bills for theimposition of gas infrastructure development cessand petroleum levy on compressed natural gas(CNG) and liquefied natural gas (LPG).

GaS CeSS, MiSuSed inStruMentNA Finance committee met under the chairman-ship of Chairperson Fauzia Wahab. The commit-tee members were of the view that historicallycess has been a misused instrument, never serv-ing the purpose it was employed for. The PPPmNA Qamar Zaman Qaira gave the example ofIqra surcharge, terming that the money collectedfrom it have never been used for the bettermentof education system in the country. Finance sec-retary Waqar masood assured the committeemembers that the funds collected from gas infra-structure cess will only be utilised on develop-ment of gas infrastructure in the country. He saidthat only 25 per cent people in this country arebenefiting from gas while other 75 per cent peo-ple are using expensive fuel for daily use. He saidgovernment is trying to minimise the differencebetween different fuels and to make them realis-tic. He said that government is only charging 30per cent price of gas from consumers and assuredthe members that gas price will be determined at55 per cent of the petrol price.

rS35B to Be raiSedPetroleum minister dr Asim Hussain said the gascess will create space for the federal government forinfrastructure development, as it will generate rs35billion per annum. He assured that cess and petro-leum levy would only be imposed on companiesthat are included in the industrial and fertiliser sec-tors. Petroleum minister said the government’shands were tied, as $1 billion were required for de-ploying a dedicated pipeline to transmit LNG fromKarachi port to Lahore. Under the law, sui gas com-panies get 17 per cent return on developing infra-structure, while a markup of 17 per cent will bepayable on the loan procured, which will also im-pact the people, but cess will help counter this bur-den. dr Asim said a few chosen people have held upopening of the LPG sector for competition. dr Asimsaid influential people are hampering import ofLPG, as they have a monopoly over the LPG mar-keting business. He said import of LPG was neces-sary to counter the energy crisis. The committeeapproved the bill. He said that price of Pakistan-Iran gas would be available round $13 to 14 permmbTU while gas from Turkmenistan-Afghanistan-Pakistan-India (TAPI) would be avail-able at $12 to 13 per mmbTU. He said that hisministry has given the proposal to Finance divisionfor the Fertiliser equalisation surcharge in order tomaintain the urea price equal in the whole country.

profit.com.pk

America should turn toReaganomics again Page 3Govt’s budgetary borrowingfrom banks crosses Rs708b Page 8

‘Put your house in order’ PM Gilani, tells petroleum ministry

ISlaMaBaD

Staff RepoRt

PrIme minister syed Yusuf raza Gilanidirected the ministry of Petroleum andits concerned departments to put theirhouse in order as the attitude of

‘business as usual‘ is unacceptable. The Pm whilechairing a meeting at Pm House on Friday askedthe ministry to work on war footings to ensurethat people get to face minimum inconveniencedue to gas shortage in the forthcoming months ofNovember, december and January. The ministerfor Petroleum, dr Asim Hussain, secretaryFinance, Cabinet secretary, secretary Petroleum,Acting Chairman Fbr and other senior officials ofthe relevant ministries were present in themeeting. The Prime minister directed theministry of Petroleum to accelerate the process ofincreasing the supply of gas in the country. All

irritants in the way must be removed as of today,the Prime minister directed. The ministry ofPetroleum and Natural resources briefed themeeting about various gas development projectslike Iran-Pakistan gas pipeline, Turkmenistan-Afghanistan- Pakistan-India gas pipeline andimport of Liquefied natural gas (LNG) toovercome the shortage of gas in the country. ThePrime minister directed to expedite work onthese projects. He said all the concernedauthorities should meet in quick succession, ifneed be, to evolve an operational strategy aimedat speeding up the work to overcome the energydeficiency in the country in the earliest possibletime. The Prime minister also underscored theneed of launching an awareness campaign tosensitise people to the imperative of energyconservation, particularly gas conservationmeasures in the upcoming winter to ensuremaximum benefit and comfort to the people.

Shahbaz seeks cooperation with Korealahore

Staff RepoRt

AmbAssAdor of south Korea in PakistanChoong Joo Choi met Punjab Chief ministermuhammad shahbaz sharif here today anddiscussed matters of mutual interest as well

as cooperation in transport, mining, hydel power andother sectors. member National Assembly Pervaizmalik, Chairman Lahore Transport Company KhawajaAhmad Hasaan and secretary Transport were alsopresent on the occasion. Talking to the KoreanAmbassador, the Chief minister said that Pakistan hascordial relations with south Korea which has maderemarkable progress in various sectors. He said thatthere are vast opportunities of cooperation in differentsectors in Punjab and provincial government hascreated a favourable environment for promotion ofinvestment where all facilities are being provided toinvestors under one roof. shahbaz sharif said that hevisited south Korea during his last tenure andintroduced a well-organised transport system for thefirst time in Pakistan in the form of daewoo busservice. He said that an air-conditioned CNG bus

service has recently been launched in Lahore with thecooperation of Chinese company Foton which hasresulted in availability of affordable, comfortable andefficient transport services to the people. Anagreement has been signed between the leadingcompanies of Istanbul and solid Waste managementfor the disposal of solid waste from provincialmetropolis. In addition to other foreign companies,negotiations are also being held with different Koreancompanies for cooperation in various sectors includingbus rapid Transit system (brT) and mono railproject the chief minister said. He was of the view thatKorea has expertise in transport, hydel power, miningand other sectors and it can also extend cooperation inbrT and mono rail sectors in Punjab. He thankedKorean Ambassador for inviting him to Korea and saidthat it will be an honour for him to visit Korea.south Korean Ambassador in Pakistan Choong JooChoi appreciated the measures taken by the Chiefminister Punjab, muhammad shahbaz sharif for thedevelopment of transport and other sectors and saidthat Korea will increase cooperation in brT, mining,hydel power and other sectors. He also invitedmuhammad shahbaz sharif to visit Korea.

Govt to restrict CNG consumption

A blessing in disguise for commodity market Page 2

We have identified hundred points through whichdebate02Saturday, 19 November, 2011

ISMaIl DIlaWar

ProFIT, talks to mr samir Ahmed, mdPakistan mercantile exchange Limitedto discuss the prospects of the commod-ity market in Pakistan.

international outlooKThe individual and institutional investors tookshelter in the commodity market as fear for there-emergence of a double dip global recession,emanating from the financial centers in Us andeurope, played havoc with sentiments of the risk-averse traders on the volatile equity and currencymarkets. samir Ahmed, managing director ofPakistan mercantile exchange Limited (PmeX),says the country’s first and only de-mutualisedcommodity futures exchange provides investorswith a safer and transparent forum to hedgeagainst the unpredictable market risks. Theglobal financial negatives led by American debtceiling and european debt crises was a sort ofblessing in disguise especially for the commoditymarket in Pakistan which welcomed huge invest-ment from the already volumes-starved capitalmarket and saw the (per ounce) gold pricesclimbing to the historic $1800 mark. The PmeXmanaging director discussed these and other is-sues related to the commodities exchange atlength in an exclusive interview with Profit.

700 Per Cent aPPreCiation in Gold About the recent hike in international gold prices,samir said gold had witnessed a 700 per cent ap-preciation in its prices during the past decade. “Itskyrocketed from $250 to $1800 (10 grams) with2010 and 2011 seeing a respective price hike of29 and 30 per cent,” samir said.

reaSonS for the PriCe hiKe? The md PmeX cites two major factors. Firstly, aweakening Us dollar had tempted the centralbanks the world over to go for extensive buyingof gold during the last couple of years. ThePmeX md recalled that there was a time whenthe central banks used to sell on average 500tonnes of their gold reserves every year. “Thecentral banks are diversifying their reserves inview of the troubled Us economy and the result-ant weakening of the dollar,” he said. samir saideuro being a weak currency could not be an in-ternational safe haven for the risk-averse in-dividual and institutional investorstherefore turn to gold. “People are nowseeing gold as a safe haven after thetraditional safe heavens (like euro anddollar) came under question duringthe recent debt crisis,” he added.

CounterinG the inflation effeCtsecondly, samir said, was the in-flation factor. “Gold maintains itsprices over time, making itself abig beneficiary of the ongo-ing financial crisisthat couldworsen fur-t h e r . ”

“As an exchange we are bringing internationalcommodity prices (be it gold, crude oil or silver)on real time basis (live) that enables the tradersat PmeX to benefit from international prices,”samir said. samir said PmeX was the only li-censed and regulated institution in the countrywhere transparency of the dealing is guaranteed.“You can keep your gold in your account with usand guarantee it in the open market.” The man-aging director also sees the PmeX as a great plat-form for those willing to invest in fuel where theprice volatility remains greater. “The investorscould book their demands months ahead (onPmeX) where we are giving a good platform tohedge their price risk,” he said.

introduCinG aGriCultural CoMModitieSWhereas the exchange has secured the securitiesand exchange Commission of Pakistan’s (seCP)nod for the hedging of risk management in cottoncontracts, other agri produces like wheat andmaize are also in line. The PmeX, according tosamir, was also planning to do some industrialmetals like steel, copper and zinc in 2012. “re-search is underway to determine specification ofthe commodities.” About demutualisation of thecommodity exchange, samir said demutualisa-tion was the rare distinction of PmeX and wasvery helpful in avoiding the conflict of interest onthe market. “From day one this exchange is de-mutualised and is, therefore, free of conflict of in-terest. The exchange is run for the benefit of allstakeholders,” he said.

2008 MarKet CraShAsked if the equity market-like price manipulationwas possible on the PmeX, samir replied in thenegative, “Almost every commodity like gold, silver,crude oil is internationally traded, so there is noquestion of price manipulation or to say influencingthe market,” the md said. Feeling pride in having atremendous increase in trade volumes at thePmeX, samir said investors were now switching tothe commodity market where the average turnoverhad recently hit the rs118 billion mark against thers52 billion total portfolio of the local shares mar-kets. “Normally, commodity markets are muchlarger than equity markets.” When we asked for hisexpert opinion regarding the local stock marketswhere trade volumes were depleting, samir saidalong with other negatives the closure of Karachistock exchange for four months during the 2008

crash had inflicted an irreparable damageupon the investors’ confidence at the

country’s largest bourse. “The set-ting of a floor was a silly move.

You should allow the market toflourish on its own in an or-derly way,” viewed samir.

deClininG voluMeS The PmeX chief said thelocal bourses direly needed

new enlistments for seeing in-creased volumes. “The size of

the market is not growing interms of new enlistments. You

need new companies to comefor enlistment that

would increasethe vol-

umes ,”

he said. The liquidity crunch on the stock marketand other macroeconomic issues were other fac-tors that samir said were keeping the investors atbay at Kse. regarding the Capital Gains Tax(CGT) controversy at Kse, the PmeX md saidmore important was the question of “how to col-lect the levy”. “It’s all about the comfort of the in-vestor.” Underlining salient features of theexchange, samir said the PmeX was owned 100per cent by institutions with National bank ofPakistan (NbP) holding 9.0 million (47.4 percent)shares, Karachi stock exchange (Kse) 3.64 mil-lion (47.4 percent), Lahore stock exchange (Lse)2.27 million (19.2 percent), Islamabad stock ex-change (Ise) 2.27 million (11.9 percent), PKIC0.91 million (4.8 percent) and ZTbL 0.91 million(4.8 percent) shares totaling 19 million shares.

StaBility and tranSParenC yHe said the PmeX ensures two things. First, theprices of listed commodities remain in check thusstable. second, a transparent futures-based trad-ing mechanism provides the risk-averse investorswith an effective risk management, also calledlodging, tool that guards the investors againstprice volatility and the losses it incurs. “Thedownfall of prices does not adversely affect theinvestors at the commodity exchange. The pricelock in futures trading enables the investor tomove on with manufacturing works advanta-geously. similarly, the farmers may grow (theircrops) as per demand,” he said. He said cotton

had been very volatile with its prices being vari-able across the country. “The market ensures thatthe prices remain discounted.” Unlike the vol-umes-starved stock market, the commodity mar-ket presented an impressive year on year growthof 671 per cent during the previous fiscal year, ac-cording to PmeX’s July 6th statement. In termsof volume this growth amounted to rs490.515billion in FY11 against rs63.610 billion of FY10.

future of the CoMModity MarKetAnd these trading volumes would certainly goup further, as samir said; the exchange wastending to switch, in terms of enlistment, fromraw commodities to refined ones. He said theexchange would be working on the prospect ofginned cotton, refined sugar and milled rice inwhich the millers and not the farmers would bethe sellers of agri produces. “The millers andfarmers would have a direct correlation, wewould be working on it as soon as we mitigatesome infrastructure issues,” the md said.“Commodities are now recognised world overas an equal asset class along with equity, bondand currency markets and Pakistani investorscould also invest in PmeX in a transparentway,” samir said. The PmeX current productportfolio includes international commoditieslike gold, crude oil, silver, palm olein and do-mestic commodities like IrrI-6 rice FuturesContract, sugar, financial futures and KIborfutures contracts.

US-European debt crisis: a blessingin disguise for commodity marketg Commodity market emerges as a reliable safe haven for investors g Commodities now being recognised world over as equal asset class g Gold prices escalated by about700 per cent in past decade g PMeX is switching from raw to refined commodities g Price lock in futures trading at PMeX enables investors to manufacture advantageously

MD Pakistan Mercantile

Exchange Limited

Samir Ahmed

THe financial bazooka has created havoc forthe Us economy. Confidence is lacking inthe Us economy which is the main driver.There is a very nice article written by myfriend Lynn Forester de rothschild in

Huffington Post titled restoring capitalism on November10, 2011, sharing important insight. she stated: Presidentobama has broken trust with the American people. Notonly has he left the Americans more bitterly divided thanever imaginable, but since the beginning of his presi-dency, 1.3 million more Americans are unemployed,

913,000 private sector jobshave been destroyed, 13 mil-lion people have been addedto food stamp dependencyand over six million havelost their homes. While UsAeconomy needs 90,000 newjobs each month just to keepup with the national birth

rate, it has reached that threshold only nine times sinceFebruary 2009.

All that is bad enough, but at the same time Us gov-ernment has increased the debt burden from $5.8 trillionin 2008 [40.3 per cent of GdP] to over $9 trillion in 2011[67 per cent of GdP]. And, Us annual federal governmentbudget deficit has grown from $458 billion in 2008 to$1.7 trillion in 2011. only 19 per cent of Americans "al-ways" or "mostly" trust the government to do what isright, down from 75 per cent in 1958. millions are fed upand are opting to "starve the beast". That is not crazy.

mr President, if you can follow milton Friedman'seconomic insights [Nobel Laureate of 1976 from Univer-sity of Chicago, UsA], you will surely see through this cri-sis with ease. You have taught at University of ChicagoLaw school and you have great regard for the school.

The only way President barack obama and his eco-nomic team can solve the Us economic woes is to adopt“common-sense” reaganomics, the policy. reaganomicswould fix any economy that’s in the doldrums. It’s not amagic sauce, it’s common sense. How can obama doit?...Follow these five simple steps adopted during rea-gan era in 1980's. step 1: The Us has got to get rid of allfederal taxes in the extreme and replace them with a low-rate flat tax on business net sales, and on personal unad-

justed gross income. step 2: The Us will have to havespending restraints. Government spending causes unem-ployment, it does not cure unemployment. Governmentspending has never raised the GdP. It’s the tax cut thatenhances the GdP growth. empirically proven.

step 3: Us needs sound money. Fed Chairman benbernanke is running the least sound monetary policy I’veever heard of. markets don’t like uncertainty and chaoticmoves. The Us has increased it money supply by 138.6per cent from sept-2008 from $851 billion to dec-2010by $2.03 trillion. Price inflation can be decreased throughmonetary deflation. This was advocated by Late NobelLaureate milton Friedman in his book money mischief-episode in monetary history. I openly admit that I followmilton Friedman – the greatest Nobel Laureate in eco-nomics of modern epoch along with Prof Gary becker atUni. of Chicago, booth school. step 4: The Us need reg-ulations, but they don’t need those regulations to go be-yond the purpose at hand and create collateral damage.The regulatory policies are really way off here.

step 5: Lastly, the Us needs free trade. Foreignersproduce some things better than Americans do and Usproduce some things better than foreigners. It would befoolish in the extreme if America didn’t sell them thosethings Us produce better than they do in exchange forthose things they produce better than Us do.

I think that the UsA can win its top rating back, butonly when economic policies are completely turnedaround. However, President barack obama’s adminis-tration’s only economic plan seemed to be to expand gov-ernment ownership of the means of production.

Washington has nationalised the health care industrypretty extensively and is doing it with home building as well.obama tried it with the auto industry as well. so obamaadministration has moved very, very deliberately and pur-posefully toward extending government ownership of themeans of production. That to me, if you read the tea leaves,is what they are doing. It is not what they are saying theyare doing, but that is what they actually are doing. Peopledon’t work to pay taxes, people work to get what they canafter taxes. It’s that very private incentive that motivatesthem to work. If you pay people not to work and tax themif they do work, don’t be surprised if you find a lot of peoplenot working.” Current economic woes started to form underPresident George W bush, but have been made worse byobama’s policies. There’s a wedge driven between wagespaid and wages received and that wedge is the tax/govern-ment spending wedge. That wedge has grown dramaticallyin the last 4 ½ years…under W and a republican adminis-tration and…under obama. bipartisan ignorance has ledAmerica to this very disastrously desolate state.

Shan Saeed is a graduate from Booth School ofBusiness, University of Chicago, and IBA Karachi with

12 years of financial market. He Blogs atwww.economistshan.blogspot.com

EVeN if the senate standingcommittee on finance hasn’texactly figured out whichparticular economic system itwants for the country, it is no

longer in the dark about what it doesn’t want.so “anti-consumer” laissez faire will no longerdo, and preferably regulated marketmechanism should be revived for effectiveprice control. There is a ring of truth inrejecting the free market economy mantra.suddenly, elected representative around theworld are facing stiff public resistance to whatis perhaps rightly dubbed exploitativecapitalism, its fissures progressively ominoussince the giant collapse of ’08.

There is also considerable truth in thecommittee chairman’s landmark finding thatthe current model allows a privileged few tohold many hostage, influencing market forcesand fluctuating prices at whim. but hissuggestion of reviving the magistracy systemto check profiteering seems betrayingopposition politicking more than genuineconcern for the system. For, considering ourown example, it is not the system that is so

much to blame as those toggling it.Corruption, top to bottom, compromises moreresources and funds than market inefficienciesor even spill over of natural calamities. simplyresorting to another form of checks andbalances will not do, especially if there isn’t amore important system in place, one thatchecks and punishes corruption andwrongdoing. Plus, it’s just too obvious to askthe able chairman why such measures werenot incorporated during his own watch asfinance minister. There will be no satisfactoryanswer, and that’s where it’ll end.

It bears noting that while the last decade orso has seen the rich-poor gap widen in even themost advanced economies, ours no longer hasthe cushion where government patronage andsubsidies can keep masses quiet much longer.With the poor on the brink of no longeraffording subsistence, the winds of changesweeping our part of the world will alter a lotmore than just the market’s supply-demandmechanism. Those at the helm should take thisvery seriously. Yes, prices must be controlled.but it’s far more important to checkinefficiencies that skew the entire system.

A viable system

People workto get what theycan after taxes

America should turn

to Reaganomics again

Shan Saeed

Biogas, an answer toPakistan�s energy crisis

bio-gas, no doubt, is an answer to the energycrises if implemented in right earnest. It issad to say that many such projects of use ofbio gas from animal faeces for domestic en-ergy need and running of tube wells fromsolar energy have been tried successfully inthe country side in say sixties/seventiesunder foreign aid/grant, but could not con-tinue persistently due to wrong policies andrampant corruption in the governmentagencies. Government does everything forthe elite class of society, whereas, the poorare neglected. moreover, whatever is done inthis respect does not initiate at grass rootlevel which is why the efforts remain futile.

M. aSlaM ChauDhry

LahoRe

Road to Islamic banking

The article no doubt proposes an en-lightening suggestion; now the worldneeds Islamic economic system andnot just banking system. but by re-sorting to the proposal that has beengiven by the writer in the article,would render PTI away from its popu-lar impression. PTI's sole objective is'indiscriminate justice and a holy waragainst corruption' rather than to holdthe emblem of Islam. I am sorry, butaren’t we expecting a little too muchfrom PTI? Another question that Iwould to raise here is that why is Is-lamic banking still resorting to KIborsystem, which is the corner stone ofconventional banking?

ahMeD ShakIl

LahoRe

E D I T O R I A L

The case of exploding railways

We Pakistanis are a funny lit-tle nation. While the entireworld blows their trivialproblems out of propor-tion, we have been accus-

tomed to burying the most gargantuanproblems into the depths of obscurity. Whilethe royal family of Louis the XIV was accusedof not being privy to the misery of themasses, with one of their queens renderingthe infamous statement, ‘well if they don’thave bread, they can eat cake instead’, thePakistani figures that have infested the cor-

ridors of power are often heard making sim-ilar statements. “If you don’t have railways,use buses instead,” or something similar wasechoed by Pakistan’s railway minister HajiGhulam Ahmed bilour, who ironically is atransporter by profession. Now if any self in-terested businessmen are reading this, theywill understand that capitalism is all aboutmaximising profits. It really doesn’t need arocket scientist to decipher the link betweenthe shut down of railways and profit max-imisation of the private transporters, our ho-nourable minister being one of them.

It needs a death to shake our worthy gov-ernment from its deep slumber. Therefore, wepay salaries when someone dies, we repair hos-pitals when someone dies, we make alternativeVIP routes when a kid is born in a rickshaw –at least someone isn’t dying in this case – wemake laws when someone dies, we break lawswhen someone dies and if the death doesn’tcause enough chorus, then we simply don’tmake an effort to change.

It is almost like this big black blob of alien

lethargy has engulfed policy makers and peoplealike. I never really fell for those zombiemovies. They were too gory for my liking, and Inever really believed it was possible for thou-sands of people to walk around like robots ut-tering the occasional ‘YAP’. The gods it seemedwere listening, for they have proved me wrongyet again. All those zombie movies apparentlyhad taken their inspiration from the Pakistanis.We are the walking dead. We just cannotbother. While many self-proclaimed ‘models’will want to execute me for treading the ‘blas-phemous’ path of daring to call them ugly, whatelse would you call a dead, empty and hollownation that cannot join in the cause of its fellowcitizens or protest against the decimation of na-tional institutions, railways being one of them.

We all love to speak and be heard no mat-ter how unpleasant we sound. It is our favouritepast-time. so, what exactly is wrong with Pak-istan railways? Is it an inherent problem withpublic institutions that they simply cannot sus-tain efficiency. I wasn’t born back then, but Ihave read a lot about PIA in the 1960’s. PIA

made emirates what emi-rates is today. Public insti-tutions are not inherentlyrotten, it takes sustainedlevels of mismanagementand corruption to bringthem to the levels they areat today. so, Pakistanrailways has 520 locomo-tives, a handsome num-ber, more than what it needs really. However,the problem is not the number of locomotivesbut rather how many of them are really opera-tional. Any guesses?

only 87. Yes, out of 520 locomotivesonly 87 are operational, but that’s not wherethe story ends. Intriguingly, Pakistan rail-ways does not have money to purchase fuelfor the 87 locomotives that are operational.Talk about rotten luck.

The writer is News editor, ProfitWhat do the powers to be propose when

things get out of hand? Privatisation. This seemsto be the new ‘in’ thing, after those rubber strap

swatch watches that ourworthy rulers, adorned ontheir precious wrists.

once upon a time, wedid try to privatise PTCL.right now, we’re desper-ately trying to get etisalatto pay $800 million itowes to the governmentfor PTCL. Then we have

the KesC, another success case, or so we makeit out to be. Just yesterday, KesC’s outstandingpayments to ssGC stood at rs32 billion. Pri-vatisation, isn’t a utopian world with fairies andglitter. It sometimes has the ability to emanatethe putrid smell of the wasteland that hasevolved in terms of our state owned institu-tions. The answer, to all our dilemma’s is sim-ply honesty, and the will to inculcate efficiencyby making the right decisions. The question is,are we up for the challenge?

The writer is News Editor, Profit. He canbe reached at ali.rizvi7957@gmail.com

Ali Rizvi

S a t u r d a y, 1 9 N o v e m b e r, 2 0 1 1

Public institutionscannot perform theway they do withoutsustainedmismanagement andinefficiency

Saturday,19 November,2011

04news

Petroleum Minister, dr asim hussain

Gas cess will create spacefor the federal government forinfrastructure development, as it willgenerate Rs35 billion per annum

karachi

Staff report

LoW volume spur duringclosing hours in oil sectorheavy weights did allow the

index to recover from deep red zonewherein oGdC contributed 44points, while substantial contribu-tion by mid tier stocks allowed thevolume to match the previous ses-sions, wherein bAFL and Fatimafertiliser led the volume by makinga combined contribution of almost50 per cent to over all turnover.

The Kse 100 index closed at11970.53 levels with the gain of 57.11points, while Kse 30 index lost 39.81points to close at 11239.51 levels. Allshare index closed at 8276.41 levelsafter gaining 38.87 points. Total 150scrips advanced 132 declined and 17

remain unchanged out of total 299scrips traded.

Gloomy economic and financialsituation along with uncertain polit-ical environment coupled with var-ious internal matters will continueto restrict the activity at the localbourse, said Hasnain Asghar Ali atAziz Fidahusein, adding that low

volume strength in high priced andexpensive stocks will therefore con-tinue to invite renewed selling.

“However despite various ru-mours regarding new taxes on fer-tiliser sector, stocks away from thewrath of gas curtailment will con-tinue to invite equity specific funds,dips can therefore be looked for both

accumulations,” he added. “Clarityon political front and unveiling of thestrategy to address economic and fi-nancial matters that are likely to de-teriorate further in upcomingmonths will continue to stay essen-tial for reduction in degree of nerv-ousness’ prevailing amongst the localstakeholders,” he said.

Bulls led by OGDC return to KSE

Piaf lauds rs4.5b recoveryfrom rental power plantLAHORE: Pakistan Industrial and Traders AssociationFront (PIAF) has paid rich tributes to supreme Court ofPakistan for ordering to recover rs4.5 billion from arental power company and said the decision would go along way in helping to remove menace of corruption thatis hollowing foundations of the country. In a newsstatement PIAF Chairman sohail Lashari, senior ViceChairman Nadar Kamal osman and Vice ChairmanJunaid Iqbal sheikh and said that business communityhas always urged government to construct Kalabaghdam for generating cheap and sufficient electricity in thecountry but present regime shelved the project anddepend on costly thermal energy. Staff RepoRt

Banks asked to reportinvestment portfolio to CiBKARACH: Central bank has asked all member financialinstitutions to report details of selected portfolio of theirinvestments to its Credit Information bureau (CIb)against specific product codes enumerated by theregulator. “This refers to bsd letter No bsd/sU-61/101/7494/2004 dated december 9, 2004, forwardingtherewith specimen for credit information reports anddata collection formats for submission of credit data toCredit Information bureau, state bank of Pakistan,” saidCPd Circular Letter No 3. Staff RepoRt

Sundar estate to start ownpower generation from 2012LAHORE: Punjab Industrial estate and development &management Company (PIedmC) will start generating itsown coal-based electricity at sunder Industrial estatefrom 31st october, 2012. PIedmC Chairman s mTanveer, while speaking to a select group of journalists,said a separate powerhouse with capacity of 50 megawattswould be established within nine months after awardingcontract. Powerhouse at sundar Industrial estate willstart trial production from 31st August, 2012 in line withvision of Punjab Chief minister mian shahbaz sharif tomake the province an industrial hub. Staff RepoRt

Conference and exhibition on logistics andSupply Chain Management to be organisedLAHORE: Pakistan International Freight ForwardersAssociation, Air Cargo Agents Association of Pakistanand Publicity Channel are jointly organisingInternational Conference and exhibition on Logisticsand supply Chain management on November 22, 2011 ata local hotel. Conference director, mehmood Tareen, ina statement said Logistics and supply Chainmanagement companies, Ports and shipping, Airlines,road and rail transports, Import and exportCompanies, Freight Forwarders, Terminal operators andexperts of various relevant businesses are participatingin this conference. Staff RepoRt

Custom houses to remain open todayISLAMABAD: Federal board of revenue (Fbr) hasannounced that all model Customs Collectorates shallremain open today in order to facilitate the trade andindustry in getting their cargo cleared for imports andexports. Fbr directed all chief collectors to coordinatewith management of sbP and NbP to provide bankingfacility by designated branches to ensure payment ofduty and taxes. Port authorities and port operatorshave been advised to synchronise their workingaccordingly. Staff RepoRt

Silkbank buys 11.24pc shares of GClKARACHI: silkbank has acquired 11.24 per cent stakes ofGharibwal Cement Limited (GCL), the bank’s shareholdersat Karachi stock exchange (Kse) were informed.According to a notice issued by silkbank, the bank hasentered into a debt-equity swap transaction with thesponsors of GCL whereby, the bank has acquired some 45million shares of the cement company. Staff RepoRt

100,000 mt imported urea arrives KARACHI: ship mV “HYderAbAd” carrying 50,000mT imported Urea and mV “PoLLUX” carrying 25,000mT imported Urea arrived yesterday at Gwadar Port.Another vessel mV “Great mary” from UAe carrying25,000 mT Urea will arrive by 22nd November, 2011.According to a statement issued by Trading Corporationof Pakistan (TCP), two more vessels, mV “medILIsboN” from bahrain and mV “dubai Ambassador”from Qatar, carrying 45,000 mT each, are expected toarrive within next few days. Staff RepoRt

lahore

Staff RepoRt

WATer and Powerdevelopment Au-thority (WAPdA)is implementing anumber of projects

in water and hydropower sectors.These projects, on completion, will notonly help increase water storage ca-pacity but also decrease electricitydeficit in the country.

This was stated by WAPdA mem-ber (Water) syed raghib Abbas shah,while addressing a delegation of Pak-istan Air Force (PAF) War College,Karachi. delegation, headed by PAFWar College Commandant Air Vicemarshal Azher Hasan, visited WAPdAHouse. WAPdA secretary ImtiazTajwar and senior officers concernedwere also present on the occasion.

member (Water) said initiation ofdiamer-basha dam, the largest proj-ect in the history of Pakistan, is amajor breakthrough in water resourcedevelopment in the country. This ro-ject alone will store 8.1 million acrefeet (mAF) of water to supplement ir-rigation supplies besides generating4500 megawatt (mW) of low-costhydel electricity. some other mega

projects, currently in various stages oftheir implementation, include 7,100mW bunji, 1,410 mW Tarbela 4th ex-tension, 4,500 mW dasu and 740mW munda Hydropower Project, headded. member (Water) further saida programme of constructing smalland medium-sized dams in all fourprovinces is underway for socio-eco-nomic uplift of backward areas. ear-lier, WAPdA Hydro Planning Generalmanager Hasnain Afzal and PePCo

Chief engineer Farasat Zaman briefeddelegation about water and powersector respectively.

delegation was informed that an-other 20 million acres of virgin land canbe cultivated, subject to availability ofwater. delegation was briefed that fivehydropower projects with cumulativegeneration capacity of about 400 mWwill start contributing to national gridby 2012. delegation was apprised ofnew initiatives of WAPdA related to

canal lining, treatment of saline water,application of high efficiency irrigationsystem, inland water transportation etc.

delegation was also informedabout current situation of power sectorincluding reasons for electricity load-shedding, measures being taken to mit-igate power shortages as andreceivables and payables of PePCo.Later, WAPdA member (Water) andCommandant PAF War College gavesouvenirs as memento to visitors.

WAPDA to initiatehydropower projects

lahore

Staff RepoRt

L AHore Chamber ofCommerce and Industrytermed sro 1012 as

unrealistic, unjustified andurged Federal board of revenue(Fbr) to immediately withdrawthe said sro that is bound tocreate more troubles forcommercial importers.

In an issued statement LCCIPresident Irfan Qaiser sheikhsaid federal board of revenuemust avoid issuing any sroswithout due consultation ofchambers of commerce in thecountry for being mainstakeholders. LCCI Presidentsaid sudden imposition ofhigher rate of 5 per cent incometax and sales tax on commercialimporters has blocked clearance

of raw materials; thus hittingcommercial importers hard.

Irfan Qaiser sheikh saidsro 1012 will havedevastating effects as withincrease in tax oncommercial imports, cost ofmanufacturing and endproduct would ultimatelybecome dearer. He saidthese and many otherproposed increase in tax willstrangle crisis-hitbusinessmen in the country.

Irfan Qaiser sheikh saidLahore chamber ofcommerce and industry feelsthat federal board of revenueis fast attaining status of amoney making machinewhich is unjust andunethical. “If Fbr wasinterested collectingrevenues, it must bring more

sectors into the tax netinstead of creating troublesfor the registered personswho were already doingbusinesses in the presence ofmultiple internal andexternal challenges.”

LCCI president said it isvery difficult to understand whypeople at helm of affairs atfederal board of revenue do notconsult chambers of commerceand industry in the countrybefore issuing sros orformulating business relatedpolicies. He urged federalfinance minister dr AbdulHafeez sheikh to help withdrawsro 1012 that is going to spoilthe very spirit of business. Inprevailing economic conditionsbusiness community will haveno other option but to stop theirbusinesses he concluded.

SRO1012 UNREALISTIC: LCCI uS to helpPakistan improveaquaculture sector

ISlaMaBaD

Staff Report

AmerICAN soybean Association(AsA) and Fisheries developmentboard (Fdb) of Pakistan have

signed an agreement for a three-yearprogramme aimed at improving thecapacity, productivity, quality andprofitability of the Pakistani fishingindustry. The public-private venture isbeing funded by a $2 million grant fromUs department of Agriculture. Theprogramme will begin with six select trialsites and will expand over three years,eventually reaching an estimated 4,000farmers. It will implement feed trials, withthe goal of building capacity in theaquaculture sector and increasing theproductivity of fish farmers.

05

Saturday,19 November,2011

news

CORPORATE CORNERhabib Bank ltd to launchmobile financial services

SINGAPORE: HbL, inked a technology supportagreement with sybase 365, a subsidiary of sybase,Inc and AbacusConsulting, for the deployment ofbranchless banking services. senior management ofHbL, mr Faiq sadiq, Head of Payment services, mrmudassir Khan, Chief Information officer, mr TarikHusain, business development director,Commerce, sybase 365 and mr Abbas Ali Khan,senior Partner, AbacusConsulting along with otherofficials of sybase 365 were present on the occasion.sybase 365 and AbacusConsulting will implementbranchless banking services for HbL and facilitatethis large scale deployment for capitalising on greatmarket potential including the rural and nonbanking population. pReSS ReLeaSe

adamjee life investmentgrowth funds see an upward trendKArACHI: Adamjee Life Investment growth fundssaw an upward trend during october. Per unitNAVs (as of oct 31st 2011) are as follows: Unit

Price, discription, bid offer, Investment secureFund, 104.7081 110.2827. Investment multiplierFund, 103.7081 109.1664. pReSS ReLeaSe

uS diplomats appreciateChen group and Chenone

LAHORE: Chenab group and Chenone are one ofthe leading brands of Pakistan which are also wellrecognised internationally for their textileproducts. Us Ambassador, mr Cameron munterand Us Consulate General, Lahore, Nina m Fitevisited Chenab mills and Chenone head office inFaisalabad. The Chairman, mian muhammad Latifand Ceo, mian muhammad Kashif Ishfaq, greetedthem and showed them different departments ofmills. They highly appreciated the ambiance of themill and work done by the group. pReSS ReLeaSe

aurat foundationholds a consolation meetingLAHORE: eminent economist, dr Qais Aslam,addressed a provincial consultation meeting onwomen and issues of food security in Pakistanorganised by legislative group of Aurat foundationat a local hotel. emphasising on the importance ofthe agriculture sector, he said that agrarian period

farm managers and female farm workers aredisadvantaged by being less informed and lesseducated. They are not even acknowledged for theefforts that they put in. pReSS ReLeaSe

Mr akbar takes chargeas co-chairman MSSSt

PESHAWAR: Inspector General of Police,Khyber Pukhtunkhwa, mr Akbar Khan Hoti,visited malik saad shaheed sports Trust (msssT)office after taking charge of co-chairman ofmsssT. He appreciated the efforts made bymsssT, in promotion of sports education andhealth care sector in the province and also for thepromotion of sports activities by paying richtribute to shaheed Police officers. pReSS ReLeaSe

Zong revamps its websiteISLAMABAD: To facilitate its customer, Zong,has successfully revamped its website. New user-friendly features have been added to the websitewhich include, value added services activationfacility, online chat to provide online support andpoll for customer feedback. The latest online Value

Added services system will allow the customers tosubscribe to all sms based value added servicesdirectly through the website. pReSS ReLeaSe

former Govt advisor, Sakib Sherani

KaRaChI: executive Director finance and It,Yacoob Suttar and General Manager Lubricantsand Retail Business, S Zulfiqar a Jaffri unveiledthe model of Deo 6000. Chairman pakistanpetroleum Dealer association and CNG Dealers’association, abdul Sami Khan was also present onthe occasion. PRESS RELEASE

The good news is that some seriousminded politicians are placing goodgovernance and institutional reform at theheart of agendas they are constructing

ISLaMaBaD: Dr Ruqayya Saeed hashmi, provincialMinister is awarding certificate to Mr Shahid hussain,Lecturer, Mass Communication aIoU on completionof 16th Master trainers–faculty professionalDevelopment programme, Chairman heC, Dr Javaid RLaghari is also present. PRESS RELEASE

The Wall Street disconnectNeW york

ReUteRS

IT was a telling moment at theheight of the occupy Wallstreet protests. John Paulson,the hedge-fund trader who fa-mously made billions betting

on the collapse of the housing market,was threatened by the demonstratorswith a march on his Upper east sidehome in New York last month. Paulsonresponded by putting out a press releasethat described his $28 billion, 120-per-son fund as an exemplar of the Americandream: "Instead of vilifying our mostsuccessful businesses, we should be sup-porting them and encouraging them toremain in New York City."

other captains of finance like to por-tray themselves as humble entrepreneurs.one owner of a multi-billion-dollar hedgefund grumbled in the midst of the finan-cial crisis that he has to worry not onlyabout making trading decisions but alsoabout "all the hassles that come with run-ning a small business."

With U.s. cities moving this week tocrack down on occupy Wall street en-campments - including the one in NewYork's Zuccotti Park - the staying powerof the movement is in question. Whateverits future, it's clear that so far, the occu-piers haven't changed many minds onWall street over blame for the country'shard times. The cognitive disconnect be-tween the protesters and the captains offinance is alive and well.

david mooney, chief executive officerof Alliant Credit Union in Chicago, one ofthe nation's larger credit unions, used towork at one of Wall street's top banks,JPmorgan Chase. There's a vast culturalgap between Wall street and his newworld, he says: old friends from thestreet, he says, now jokingly refer to himas a "socialist." A credit union is sup-posed to be run in the interests of allmembers, he says, while commercialbankers tend to see consumers as cus-tomers who can be "exploited" by layer-ing on more fees.

says mooney: "I don't say this lightly,but the consumer is simply an incomestream and exploiting that is the purposeof the banking organization."

In conversations with nearly twodozen current and former bankers, fi-nance professionals and money man-agers across the United states, theprevailing sentiment is that the anger atWall street's elite is misguided and mis-directed. blame the politicians and pol-icymakers in Washington, many of themsay, for encouraging people to buyhomes they couldn't afford and doingnothing to stop or discourage U.s. con-sumers from piling on more than $10trillion in household debt.

"I think everyone gets what the angeris about... but you just can't say, 'Well Iwant all debts forgiven.' That is not hap-pening," says one West Coast trader, wholike most still working in the financialservices industry, declined to be identi-fied by name in this article.

The disconnect, says Jason Ader, aformer top Wall street casino analystturned hedge fund manager, is in part asimple product of Wall street's isolationfrom the hardship out there. Ader says hespends a lot of his time in Las Vegas, oneof America's hardest-hit housing mar-kets, and thus wasn't too surprised bythis fall's anti-Wall street outburst.

but the 43-year-old Ader, whomanages $200 million in his hedgefund, says it's a different story formany of the wealthy who work in fi-nance in New York City and don'tspend a lot of time in states with highunemployment and high foreclosurerates. Living in manhattan or theHamptons or hedge fund havens likeGreenwich, Connecticut, can lead to abit of myopia, he says. "At first I hadfriends who were scratching theirheads at the protests," says Ader.

BLAME GAME

To put it bluntly, many on Wall streetstill see the events leading up to the fi-nancial crisis as a case of banks having le-

gitimately sold something - whether it bemortgages or securities backed by thoseloans - that someone wanted to buy.

Thomas Atteberry, a partner and port-folio manager with Los Angeles-basedFirst Pacific Advisors, a $16 billion moneymanagement firm, says his success "wasn'ta gift" and he had to work hard to getwhere he is. Atteberry says he understandsthe frustration many feel about income in-equality. but he said the problem isn'twith those who are successful, but ratherour "tax codes and regulations."

While some members of the finan-cial elite say they are willing to payhigher taxes, they note the picture forWall street firms is not as sunny assome on main street might paint it.Wall street banks already are beginningto shed jobs, and consulting firm John-son Associates Inc. is predictingbonuses for those who remain willshrink by 20 per cent to 30 per cent.

Complaints over new financial regu-lations burdening Wall street firms area major reason blamed for the layoffs.sit down with a hedge fund manager ora top trader and it won't take long be-fore he or she grabs some spreadsheetthat shows all the new rules and regula-tions coming out of the dodd-Frank fi-nancial reform bill.

many of America's well-to-do, notjust Wall streeters, say they don't feelparticularly advantaged. A recent surveyby marketing firm HNW Inc. found thathalf of the nation's richest 1 per cent"don't see themselves as being part ofthat elite group." Also, 44 per cent ofthose surveyed told HNW's pollsters theyalready pay too much in taxes.

maybe it is just the ethos of Wallstreet, where success is defined solely bywho makes the most money, that makes ithard for financiers to feel they've wrongedanyone. but in a time of 9 per cent unem-ployment and 15 per cent of U.s. citizensreceiving food stamps, some Wall streetalums say the financial elite are doingthemselves no favors by giving the appear-ance of shrugging off the current mood.

"I think Wall street hasn't taken in

how much anger there is out there andthey haven't taken partial responsibilityfor the financial crisis," says brookingsInstitution fellow douglas elliott, whowas an investment banker for twodecades before joining the liberal-ori-ented public policy group. "I think bothsides - Wall street and main street - mis-understand each other."

some who get paid to advise the richon how to deal with the media and thepublic are telling clients to pay attention.

robert dilenschneider, founderand principal of The dilenschneiderGroup corporate consulting group, re-cently sent a report to his clientstelling them that many of the protest-ers taking part in the occupy move-ment are not a bunch of unemployedcrazies and hippies.

"The Ceos in big board rooms inParis, in Zurich and New York don'tnormally think about people who aredemonstrating in parks," says dilen-schneider, whose firm advises some ofthe biggest companies in the world."In the banking and financial area, weare telling our clients you have to ex-plain more completely what makes upyour business and why your profits arewhat they are."

MOM AND POP HEDGE FUNDS

some of the disconnect is simply amatter of lifestyle and the fact that thesuper wealthy really do live differentlyfrom everyone else. Hedge fund man-agers and bankers fly around on privatejets, live in palatial penthouse apartmentsoverlooking Central Park and have sec-ond homes in the country.

In New York City, the average pay forthose working in finance is $361,183,more than five times the average salary of$66,106 for all workers in the city, ac-cording to the New York state depart-ment of Labor.

This disparity in income and atti-tudes was evident in the response ofhedge fund managers like Paulson whoportrayed themselves as humble busi-

nessmen. says Wall street historianCharles Geisst, "Hedge funds may besmall businesses in terms of labor inten-sity, but in terms of capital intensity theyare just the opposite." A spokesman forPaulson said he had nothing more to addon the subject.

LESSONS LEARNED

There are exceptions, of course.some are saying it may be time for thegovernment which has bailed out thebanking system to help millions ofstruggling homeowners. one of thoseis former top Pacific Investment man-agement Co executive Paul mcCulley,best known for his analysis on centralbanks and monetary policy when heworked at the world's biggest bondfund. mcCulley, who retired a year agofrom Newport beach, California-based PImCo to become a consultantwith a public policy firm, enjoys thewealth he accumulated in his old role.He lives in a house by the water wherehe docks his two boats. but he saysWall street went too far.

"our society was ripe for a convul-sion about social justice, and occupyWall street was the catalyst for that,"says mcCulley. "New York can be veryinsular. It is not the real world and nei-ther is Newport beach." Now that he'sno longer working for PImCo, mcCul-ley is a bit more free to speak his mind.And he says the only way to jumpstartthe U.s. economy is for the federal gov-ernment to get behind a serious pro-gram to encourage consumer debtforgiveness and principal reductionson mortgages by banks. mcCulleynoted that mortgage firms Fannie maeand Freddie mac have been proppedup by about $169 billion in federal aidsince they were rescued by the govern-ment in 2008, yet there's a "a moralovertone" to the argument against re-ducing mortgage debt burdens for in-dividual borrowers. "Wall streetcapitalism has given us a foul stench inour society," says mcCulley.

top 5 perForMers sector wiseSyMBol oPen hiGh loW Current ChanGe voluMe SyMBol oPen hiGh loW Current ChanGe voluMe

Food ProducersAbdullah Shah 8.00 8.00 7.00 8.00 0.00 53Colony Sugar Mills 1.75 1.75 1.70 1.74 -0.01 23,501Engro Foods Ltd. 23.52 23.90 22.50 22.54 -0.98 91,748Habib Sugar Mills 28.10 28.50 27.50 27.88 -0.22 70,820Habib-ADM Ltd.XD 11.58 11.70 11.50 11.50 -0.08 2,995

Household Goods(Colony) Thal 1.70 1.11 1.11 1.11 -0.59 1,000AL-Qadir Textile 11.25 11.25 11.25 11.25 0.00 500Amtex Limited 1.67 1.70 1.45 1.60 -0.07 132,822Annoor Textile 13.00 14.00 14.00 14.00 1.00 1,000Artistic Denim XD 18.50 18.50 18.25 18.49 -0.01 1,049

Personal GoodsAHCL-NOV 31.00 31.00 29.45 29.51 -1.49 376,500AHCL-OCT 30.82 30.82 29.28 29.32 -1.50 516,500ANL-OCT 4.01 4.25 3.90 3.95 -0.06 24,500ATRL-NOV 120.42 121.50 117.90 119.21 -1.21 201,000ATRL-OCT 119.16 120.30 116.50 117.71 -1.45 200,000

Future ContractsAbbott Laboratories 102.49 103.00 101.00 102.10 -0.39 1,283Ferozsons (Lab) Ltd. 80.00 80.00 78.10 80.00 0.00 45GlaxoSmithKline Pak. 68.92 68.26 67.01 68.06 -0.86 1,557Highnoon (Lab) 28.09 28.09 27.65 28.09 0.00 100IBL HealthCare XD 10.92 11.92 10.99 11.92 1.00 25,154

Pharma and Bio TechP.T.C.L.A 10.89 10.98 10.65 10.71 -0.18 470,873Pak Datacom LtdXD 35.03 34.01 34.01 34.01 -1.02 500Telecard Limited 0.95 1.00 0.90 0.90 -0.05 68,502Wateen Telecom Ltd .68 1.70 1.52 1.65 -0.03 152,954WorldCall Telecom 1.13 1.19 1.00 1.06 -0.07 235,458

Fixed Line TelecommunicationP.T.C.L.A 11.47 11.77 11.42 11.64 0.17 4,752,418Pak Datacom Ltd. 31.65 32.66 31.65 32.66 1.01 1,430Telecard Limited 1.09 1.09 1.01 1.03 -0.06 194,249Wateen Telecom Ltd 1.51 1.68 1.47 1.50 -0.01 449,333WorldCall Telecom 1.32 1.35 1.15 1.28 -0.04 649,632

ElectricityGenertech 0.50 0.50 0.36 0.50 0.00 1Hub Power Co.XD 36.38 36.50 36.10 36.10 -0.28 1,022,035Japan Power 0.75 0.77 0.70 0.71 -0.04 38,682K.E.S.C. XR 1.70 1.70 1.56 1.60 -0.10 752,756Kot Addu PowerXD 41.36 41.80 41.25 41.53 0.17 220,355

BanksAllied Bank Ltd 63.16 64.00 62.50 62.69 -0.47 32,694Askari Bank 11.15 11.29 10.75 10.89 -0.26 944,906B.O.Punjab 5.94 6.08 5.79 5.83 -0.11 319,287Bank Al-Falah 11.15 11.35 10.70 10.89 -0.26 1,929,563Bank AL-Habib 29.95 30.20 29.55 29.91 -0.04 175,090

Non Life InsuranceAdamjee Ins XD 49.64 49.50 48.60 49.40 -0.24 6,785Ask.Gen.Insurance 8.50 8.50 8.10 8.47 -0.03 1,651Atlas Insurance 34.49 35.00 33.86 33.99 -0.50 1,110Central Ins Co. 48.67 50.00 48.00 49.79 1.12 3,909Century Insurance 7.16 7.50 7.06 7.50 0.34 1,500

Life InsuranceAmerican Life 14.50 14.50 13.50 14.50 0.00 2East West Life Assur 1.40 2.34 1.40 1.40 0.00 1EFU Life Assur 65.53 68.80 65.53 65.53 0.00 157

Financial ServicesAMZ Ventures A 0.32 0.35 0.22 0.30 -0.02 9,463Arif Habib InvesXD 15.89 15.50 14.89 14.89 -1.00 13,487Arif Habib Ltd. 17.96 18.34 17.20 17.71 -0.25 19,659Dawood Equities 0.88 1.09 0.86 0.86 -0.02 9,495Invest & Fin.Sec. 7.26 7.26 7.25 7.25 -0.01 2,100

Equity Investment Instruments1st.Fid.Leasing Mod 1.70 1.50 1.50 1.50 -0.20 15,000AL-Noor ModarXD 3.98 4.00 3.60 4.00 0.02 25,100Allied RentalModXDXB 19.90 19.90 19.88 19.90 0.00 3,700Atlas Fund of Fund 6.00 6.10 5.90 5.90 -0.10 414,000B.F.ModarabaXD 5.56 5.56 5.00 5.56 0.00 7

MiscellaneousCentury Paper 13.50 13.90 13.42 13.50 0.00 226Pak Paper Prod. 31.79 32.00 32.00 32.00 0.21 2,500Security Paper 35.52 35.99 35.20 35.20 -0.32 1,047Johnson & Philips 7.00 7.00 6.01 7.00 0.00 209Pakistan Cables 31.00 32.10 30.00 31.00 0.00 263P.N.S.C.XD 15.85 16.00 15.85 15.98 0.13 1,603Pak.Int.Con. SD 70.66 71.80 70.00 70.50 -0.16 562TRG Pakistan Ltd. 1.56 1.63 1.52 1.60 0.04 151,424Murree BreweryXDXB 70.60 70.99 70.02 70.60 0.00 144Shezan Inter.XD 115.96 118.50 115.96 115.96 0.00 2Pak Tobacco Co. 62.39 64.00 62.39 62.39 0.00 100Philip Morris Pak. 140.00 140.00 133.00 140.00 0.00 2Shifa Int.Hospitals 28.10 29.50 29.45 29.50 1.40 6,693Hum Network XD 15.50 15.99 14.50 15.50 0.00 399Media Times LtdXR 7.96 8.96 7.96 7.96 0.00 162P.I.A.C.(A) 1.96 2.14 1.90 2.00 0.04 3,304P.T.C.L.A 10.87 10.95 10.75 10.80 -0.07 286,584Telecard Limited 0.93 1.00 0.91 0.96 0.03 63,010Wateen Telecom Ltd 1.89 1.90 1.83 1.85 -0.04 36,169WorldCall Telecom 1.10 1.14 1.05 1.11 0.01 62,318Sui North GasXDXB 17.65 17.80 17.50 17.69 0.04 21,001Sui South GasXDXB 19.99 20.50 19.85 20.16 0.17 43,567EFU Life Assur 68.13 69.94 68.25 68.36 0.23 720Pace (Pak) Ltd. 1.68 1.80 1.60 1.68 0.00 106,404Netsol Technologies 10.72 11.00 10.60 10.73 0.01 383,612Pak Telephone 2.60 3.60 2.60 3.00 0.40 604

SyMBol oPen hiGh loW Current ChanGe voluMe

Oil and GasAttock PetroleumXD 403.85 404.69 396.00 396.87 -6.98 61,485Attock Ref.XD 118.78 120.40 116.10 117.57 -1.21 833,559Byco Petroleum 6.89 6.98 6.75 6.77 -0.12 399,510Mari Gas Co.XB 91.01 93.80 89.30 92.03 1.02 91,674National Ref.XD 325.19 334.90 308.94 310.82 -14.37 314,938

ChemicalsAgritech Ltd. 15.00 15.00 14.00 15.00 0.00 1,500Arif Habib CoXDXB SD 30.83 31.05 29.29 29.30 -1.53 2,485,646Biafo IndustriesXD 68.59 71.99 65.17 70.64 2.05 855Clariant Pakistan 140.69 143.49 137.50 139.79 -0.90 4,017Dawood Hercules 38.96 40.80 37.06 37.39 -1.57 244,529

Industrial metals and MiningCrescent Steel 23.90 24.70 23.25 23.59 -0.31 40,885Dost Steels Ltd. 1.45 1.50 1.41 1.45 0.00 8,285Huffaz Seamless Pipe 8.93 9.00 8.60 9.00 0.07 3,035Int. Ind.Ltd. 34.98 35.00 34.00 34.50 -0.48 25,300Inter.Steel Ltd. 11.56 11.52 11.00 11.00 -0.56 63,850

Construction and MaterialsAl-Abbas Cement 2.00 2.00 1.90 1.92 -0.08 26,799Attock CementXD 51.11 51.99 50.81 51.02 -0.09 108,952Berger Paints 11.79 12.00 11.60 11.91 0.12 4,762Bestway Cement 8.11 9.11 8.11 8.11 0.00 100Cherat Cement 7.66 8.19 7.50 8.01 0.35 197,042

General IndustrialsCherat PackagingXD 29.62 30.40 28.14 28.14 -1.48 14,022ECOPACK Ltd 2.49 3.25 2.21 3.08 0.59 614,084Ghani Glass LtdXD 41.17 42.00 39.12 39.60 -1.57 16,802MACPAC Films 7.72 7.95 7.01 7.65 -0.07 993Merit Pack 22.00 22.00 20.95 22.00 0.00 70

Industrial EngineeringAdos Pakistan 6.93 7.90 6.93 6.93 0.00 10AL-Ghazi Tractors 184.30 184.30 184.30 184.30 0.00 90Bolan CastingXD 28.50 28.50 28.25 28.26 -0.24 5,055Ghandhara Ind. 7.00 6.90 6.25 6.70 -0.30 5,004Hinopak Motor 108.00 108.00 102.60 108.00 0.00 2

Automobile and PartsAgriautos Indus.XD 58.00 58.00 58.00 58.00 0.00 2,000Atlas Battery Ltd. 169.52 170.00 168.50 168.94 -0.58 240Atlas Honda Ltd. 117.00 118.00 117.00 117.94 0.94 302Dewan Motors 2.63 2.79 2.43 2.51 -0.12 39,802Exide (PAK) 168.53 169.99 168.53 168.53 0.00 31

BeveragesMurree Brewery Co. 110.49 111.43 109.00 111.18 0.69 1,170Shezan Int’l 150.02 150.00 145.05 145.58 -4.44 203

Mutual Funds

fund offer repurchase navAlfalah GHP Cash Fund 501.2900 501.2900 501.2900 Askari Islamic Asset Allocation Fund 114.7196 111.8516 111.8516Askari Islamic Income Fund 103.6501 102.6136 102.6136 Askari Sovereign Cash Fund 100.6900 100.6900 100.6900 Atlas Income Fund 519.3500 514.2100 514.2100 Atlas Islamic Income Fund 519.0900 513.9500 513.9500Atlas Money Market Fund 516.9700 516.9700 516.9700 Atlas Stock Market Fund 453.1500 444.2600 444.2600 Crosby Dragon Fund 82.9800 81.3500 81.3500

fund offer repurchase navHBL Money Market Fund 100.2768 100.2768 100.2768 HBL Multi Asset Fund 87.0103 85.3042 85.3042 HBL Stock Fund 97.6745 95.2922 95.2922 IGI Income Fund 101.8987 100.8898 100.8898IGI Stock Fund 112.3545 109.6141 109.6141 JS Principal Secure Fund I 121.5000 111.5200 117.3900 JS Principal Secure Fund II 104.1200 96.5000 101.5800 KASB Cash Fund 0.0000 0.0000 100.1087Lakson Equity Fund 106.3763 103.2779 103.2779

Markets

Saturday, 19 November, 2011

06top 10 sectors

24% 01%Construction & Materials

Chemicals General Industrial

07%Electricity

02%03%

Fixed Line Telecommunication

01%Equity Investment Instruments

Financial Services

09%Banks35%Oil & Gas10%Personal Goods08%

International Oil PriceWTICrude Oil

$99.05

BrentCrude Oil

$112.39

STOCK MARKET HIGHLIGHTS

Index Change Volume Market ValueKSE-100 11937.81 +24.393 4,138,780 1,346,540,124LSE-25 3118.72 -1.45 1,303,320 28,200,451ISE-10 2684.88 19.96 52,950 1,607,508

Major Gainers

Company Open High Low Close Change TurnoverBhanero Tex.XD 228.58 239.00 220.00 238.53 9.95 2,051Indus Motor Co. 204.00 210.00 204.00 209.59 5.59 6,381Sapphire Tex.XD 103.50 108.65 108.00 108.65 5.15 3,208Thal Ltd 82.00 85.70 81.05 85.22 3.22 261,765P.S.O. 252.58 256.02 250.59 255.26 2.68 369,531

Major Losers

UniLever Pak Ltd. 5527.60 5600.00 5252.00 5479.96 -47.64 5Wyeth Pak Limited 700.00 690.00 670.00 680.00 -20.00 117Nestle PakistanXD 3002.67 3030.00 2855.00 2986.39 -16.28 10Service Industries 199.01 200.00 195.00 195.14 -3.87 1,126Fauji FertilizerXD 176.28 175.50 172.00 172.75 -3.53 1,413,159

Volume Leaders

Bank Al-Falah 11.79 12.19 11.65 12.07 0.28 11,184,726Fatima Fert.Co. 23.16 23.30 22.35 23.05 -0.11 7,301,127Lotte PakPTA 10.54 10.90 10.53 10.78 0.24 1,617,640Byco Petroleum 6.93 7.28 7.00 7.20 0.27 1,601,616Fauji FertilizerXD 176.28 175.50 172.00 172.75 -3.53 1,413,159

Bullion MarketPer Tola (PKR) Per 10 Gm (PKR) Per Ounce US$

Gold 24K 56,378.00 48,387.00 1,736.00Gold 22K 51,608.00 44,245.00 –Silver (Tezabi) 1,053.00 904.00 35.05Silver (Thobi) 1025.00 880.00 –

Interbank RatesUS Dollar 87.1242UK Pound 137.1160Japanese Yen 1.1310Euro 117.2082

Buy SellUS Dollar 86.70 87.40Euro 117.43 118.67Great Britain Pound 136.97 138.31Japanese Yen 1.1261 1.1338Canadian Dollar 84.32 86.49Hong Kong Dollar 11.00 11.25UAE Dirham 23.60 23.76Saudi Riyal 23.11 23.25Australian Dollar 86.71 89.21

07

Saturday, 19 November,2011

closing bell

A B C D E F G H

8

7

6

5

4

3

2

1

White to play: play and mate in 4 moves

NoN CoNSoLatIoN

CheSS

BooNDoCKS

DILBeRt

GaRfIeLD

BaLDo

sudoku solution

crossword solution

chess solution

Today’s soluTions

1.Bxf6 Nb3+

3.Qxh6+ Kg8

2.axb3 Bxh6+

4.Qg7# *

You are more

accident-prone than

usual today, so either take

greater care than usual to

buffer yourself from harsh

reality or just accept that

you're going to get scraped up

(Maybe emotionally).

AriESYour fun energy

is making life

sweeter for almost

everyone around you, and

you might find it hard to keep

from smiling yourself! Keep up

whatever it is that's working

for you and share the love!

tAuruSYou and your

people (family,

mostly) need to deal with each

other in a new, more intimate

fashion. It's easier than ever

for you all to misunderstand

each other, so do your best to

chill for the time being.

gEMini

Your ability to

get your point

across -- even when you're

not sure what it is yourself

when you start -- is peaking

right now, so you've got to

speak up to make the most of

it. Share your thoughts!

cAncEr

Details are

everything today,

so make sure that you're on

top of them. It shouldn't be

all that hard for you, as your

energy is just right for

tackling issues of importance.

Show the world how it's done!

Your financial

situation is pushing

you into new and strange

territory today. It might be a

good time to rethink your big

plans, or maybe you just

need to deal with life as it

really is for now.

LEo

Details are

everything today, and

though you often prefer the

big picture, you can still get

ahead by focusing on one

small piece at a time. Make

sure you can take some time

off soon, though!

AQuAriuS

Your latest

achievement is

making life much more

interesting for you -- and

possibly more lucrative! You

should certainly expect more

attention, and you may want

to keep building on this.

virgo

You need to

spend some

time and energy with a friend

or loved one today -- your

ability to patch up relationships

is near-perfect right now. Make

sure that everyone is getting a

little of what they need.

PiScEScAPricorn

Pay close attention

to detail today --

it's in your nature to be

perceptive, but you also need

to be meticulous in order to

clear out everything that

needs to go. Life starts to get

more engaging soon.

LibrAYou're great with

secrets -- almost everyone

knows that. Still, on a

day like today, you'd just as

soon not feel the pressure of

keeping them held so tightly.

Try to find one person to

trust and share with.

ScorPioYou need to deal

with something

bigger than just your

own needs today -- some

authority figure demands

it. See if you can get your

colleagues or friends to

pitch in and help you out.

SAgittAriuS

BRIDGe

CRoSSWoRD

Fill in all the squares in the grid so that each row,

column and each of the squares contains all the digits.

the object is to insert the numbers in the boxes to

satisfy only one condition: each row, column and 3x3

box must contain the digits 1 through 9 exactly once.

hoW to pLaY

WoRD SeaRCh

ACROSS

1. Clan emblem6. Streetcar10. Be worthy of14. Small terrestrial lizard15. Dry riverbed16. X X X X17. Multiplicative inverse19. ancient units of liquidmeasure20. homestead21. an uncle22. "___ on Down the Road"23. Swelling under the skin25. the general activity ofselling26. Catholic church service30. Mudguard32. an abusive word or phrase35. the shaved crown of ahead39. high regard40. Caught41. hopelessness43. Curative44. Layers46. Satisfy47. foundation50. a type of tree53. flows54. female chicken55. overhaul60. Modify61. Nonsectarian63. assistant64. Unusual65. a type of dance66. one who accomplishes67. Sketched68. Slumber

DOWN

1. Sailors2. Curved molding3. Diplomacy4. Send forth5. official tree of Canada6. pair7. flower part8. Unyielding9. 5280 feet10. practices11. Lengthways12. anxious13. S S S S18. Crimson 24. eastern newt25. Ringworm cassia26. a fitting reward (archaic)27. Church alcove28. Seats oneself29. Daughter of a step-parent31. an amount of medicine33. Warms34. arab chieftain36. Murres37. Lease38. Border42. a vehicle that races 43.possessed45. Incumbency47. Slang for money48. Sound49. Malicious51. Metric unit of area52. Leases54. Group of cattle56. ampule57. Skin disease58. a magician59. Raindrop sound62. Kitten's cry

ALwAyS

ASPirE

bELLS

boArD

cEDE

cLAuSE

cLoSES

coronAtion

cruMbLE

DoPE

EMAiL

grEAt

guiDES

hELM

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intErESt

LEASE

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LiLy

MiLES

MonEy

nAgS

nEighbor

PELt

rAiSE

rAMbLE

rELic

rELiES

rEwArD

right

riLL

SALvAtion

SEriES

ShAkE

ShArE

SLED

SPort

StrEEt

StroLL

tArS

unDEr

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writE

wrongC

MY

K

CMYK

SUDoKU

Saturday,19 November,2011

Change in management is not easy butwe also know that Pakistan is an exampleof resourceful people. the only areawhere it lacks is in processes that definesfully articulated formulation of plan

news

08

karaChI

ISMaIL DILaWaR

CAsH-sTrAPPedgovernment’s budgetaryborrowings from bankingsystem continue to swell

and accumulated to rs708.145billion during first four months ofcurrent financial year.The amount depicts an exorbitantincrease of 177 per cent whencompared with rs255.311 billionthe funds-starved central andprovincial governments hadborrowed from banks duringcorresponding months last year. Inmonetary terms this mammothincrease in government’s budgetaryborrowings account for rs452.834billion. Central bank, however, hasbeen successful in significantlydecreasing volume of its budgetaryloans from state bank that,analysts believe, is inflationary innature. Central bank reported thatduring July-Nov 4 (FY21) theresource-constrained governmentborrowed rs95.750 from sbPbillion, 46 per cent less than rs179billion it had taken during the sameperiod in FY11. some quarters,however, perceives that dip is partof government’s new covertstrategy to borrow indirectlyfrom state bank. This meansthat the embattled government,amid dim chances of financingfrom its foreign lenders and

donors, first

injected billions into bankingsystem and then borrowed thesame from commercial banks.Friday also saw central bank pumpinga huge sum of rs342.750 billion intobanking system at 11.52 per centannual rate of return to avoid anotherwise imminent liquidity crunch.on the other hand, scheduled banksremained major financers ofgovernment’s ever-widening fiscaldeficit, which sbP counted at rs1.194trillion during FY11 against rs929.061billion of FY10. Leaving little space forthe growth-oriented private sector,government is borrowing extensivelyfrom commercial banks and secured,during period under review, overrs612.39 billion. Compared tors76.514 billion, of correspondingperiod last year, this amount shows ahuge growth of 700 per cent orrs535.881 billion. banks’ credit toprivate sector is constantly depletingand shrank to negative rs31.531billion against last year’s positivers671 billion. banks’ credit to non-government sector came down tonegative rs262.960 billion againstnegative rs19.774 billion in FY11.on the back of their excessivelending to non-productive publicsector, banks’ net domestic assets(NdAs)

marked an increase of rs64.32billion and accumulated tors168.40 billion compared tors104.16 billion in correspondingperiod of FY11.According to sbP figures, of totalbudgetary support sbP extendedrs31.393 billion to federal andrs50.075 billion to provincialgovernments. While scheduledbanks’ lending to centre andprovinces stood at rs611.232 billionand 13.227 billion, respectively.monetary expansion is also on lowerside due to reduced foreign assts ofbanking system that contracted tonegative rs106.377 billioncompared to last year’s positivers57.118 billion. According to sbP,broad money, also called m2,shrank to 0.936 per cent orrs62.102 billion (in monetaryterms) against 2.79 per cent orrs161.278 billion of correspondingperiod in FY11. Circulation of moneyalso slid to rs183.139 billion fromrs195.015 billion previously.economists warn that since much ofthe bank finances are being eaten upby public sector for non-productivepurpose of running of government,the country was likely to miss its 4.2per cent GdP growth target for thecurrent year. They suggest that

banks’ advances must go toprivate borrowers who, throughgenerating economic activity,create jobs that would lead toeconomic growth in the

poverty-hit country.

lahore

Staff RepoRt

ALL Pakistan Textile mills Asso-ciation (APTmA) Chairmanmohsin Aziz has expressed deepconcerns over falling economic

indicators, likely to dampen growth of tex-tile industry further if no timely action istaken by authorities concerned.

He said a sharp decline of 61 per centin foreign private investment during fourmonths of current fiscal year, lowest-ever

growth rate and increase in Non Perform-ing Loans (NPLs) to rs629 billion has af-fected industry at large.

APTmA chairman said both unbear-able interest rate regime and short supplyof gas to textile industry are prime reasonsbehind negative economic indicators. eco-nomic state of affairs is full of negative sig-nals and whole economy is likely to betrapped into NPLs in case policymakersfail to take timely actions.

He expressed fear that NPLs are likelyto catch up further due to deteriorating

state of textile industry which is being de-nied by gas supply on sNGPL network. Gassupply to industry is in doldrums onsNGPL network, as supply has been re-duced to four days a week against five daysa week previously, he said. Gas curtailmentfor three days during a week has impaired40 per cent capacity of industry he added.

He asked if there was any policymakeron earth who could suggest textile industrya recipe to perform with short energy sup-ply and such exorbitantly interest rate butstill survive and keep on making payments

to banks in these circumstances.APTmA Chairman pointed out that tex-

tile industry performs in a highly competitiveenvironment world over and absence of alevel playing field is detrimental to growth oftextile industry in Pakistan. He said interestrate is not in double digits anywhere in theregion, a phenomenon exclusively rare toPakistan. mohsin said textile industry hasoutperformed all industrial sectors last yearby achieving record exports of $14 billionand although there was curtailment for twodays and could have achieved over $15 bil-

lion if that was even corrected. He said unin-terrupted gas supply becomes more urgentfor textile industry which has a share of 9 percent in GdP and employs a workforce of 15million directly and indirectly in the country.He said President Asif Ali Zardari, Primeminister Yusuf raza Gilani as well as federalPetroleum minister dr Asim Hussain shouldimmediately intervene to not only ensureminimum five days a week gas supply butalso bring down interest rate to single digitfor sustainable growth of textile industry inlarger interest of national economy.

g Sharp decline of 61 per cent in foreign private investment during current fiscal year g textile tops all industrial sectors with record exports of $14b

Government’s budgetaryborrowing from bankscrosses Rs708 billion

aPtMa concerned over falling economic indicators

karaChI

Staff RepoRt

AdVIsor on Petroleum and Nat-ural resources has said govern-ment is studying a proposal toslap an equalisation tax on fer-

tiliser plants running on gas in order toanalyse the per bag rise in the prices ofurea. Fertiliser company margins haveshot up exorbitantly since urea bag priceshave increased by more than 50 per centthis year thus, benefiting efficient playerssuch as, Fauji Fertiliser Company (FFC)and new players like, FATImA.

some of the plants that resorted to in-crease urea prices include, engro Fertiliserwhose new plant got interrupted gas sup-plies from Qadirpur and did not receivedesignated 100mmcfd gas from Qadirpurthroughout the year and hence, resulted ina shortfall in urea supplies.

engro got enraged and reportedly in-creased the price of urea to rs2,000 per50kg bag, but was maneuvered back bygovernment to keep the prices at an oldrate of rs1,580 per 50kg bag.

The rolling back of prices to nearlyrs1580 per 50kg is still high from localstandards since these prices were aroundrs1,200 per 50kg only a few months agoor at least at the start of the year. Thequestion of putting equalisation tax maybe for those plants that are not efficient

users of gas supply. It is being reportedthat an efficient fertiliser plant produces42 tonnes of urea by utilising one millioncubic feet of gas per day whereas, there arefew that are inefficient users and produce38 tonnes with the same gas supply.

It has also been said that this arrange-ment would only be probable if plant au-dits are carried out (which may take sometime). The matter is likely to be brought upby the advisor into Cabinet Committee ofeconomic affairs called eCC.

reportedly, 4 fertiliser plants, on thenetwork of sui Northern Gas Pipelines Lim-ited, need 240 mmcfd, but they are cur-rently getting 162 mmcfd thus, causingproblems for engro fertiliser and someother plants such as Agritect and dawoodHercules. Faisal shaji at ssC Trade saidthey consider CY11 ePs of preferred scriptssuch as, FFC and Fatima, and also like,Fauji bin Qasim (yielding 5x) given intactmargins on dAP fertilisers despite tight po-sition of margins globally while FFbL isplaced at a favourable position due to unin-terrupted supply of raw material P2o5. ‘Wesignal cautious approach on engro Corpsince company is still not in a favourableposition as far as reception of gas suppliesis concerned. Pak Arab Fertilisers (notlisted) situated at multan is reportedly re-ceiving prices. Arif Habib Corp (AHCL) hasbeneficial ownership in Pak Arab andhence, at a favourable situation,’ he added.

g Govt borrows rs96 billion from SBP, rs612 billion from scheduled banksg loans from commercial banks skyrocket by 700 per centg Banks credit to private sector down to negative rs31 billion

Govt working towards equalisationof tax on fertiliser plantsg fertiliser company margins shoot up g fauji fertiliser Company andfatiMa, benefiting g engro increased urea price to rs2,000 per bag

ISlaMaBaD

Staff RepoRt

PAKIsTAN has improved five pointsin global productivity ranking ac-cording to International Productiv-

ity Congress (IPC) 2011 that ended with anote to carry mission of productivity en-hancement at various economic areas.

dr Ishrat Hussain, former Governorstate bank of Pakistan, said change inmanagement is not easy but we also knowthat Pakistan is an example of resourcefulpeople. The only area where it lacks is inprocesses that defines fully articulated for-mulation of plan, he added. He stressed onbuilding processes that have a tendency todisseminate information. shaista sohail,Joint secretary, ministry of Industries saidcurrently people are going through a timeof uncertainty and low confidence. It is thetask of government to use every tool at itsdisposal to build confidence andstrengthen economy against global threats.

ministry understands that reform forindustrial development through policy and

planning is the need of time. And this iswhere NPo becomes more important sinceit has been mandated to address and fillgaps of industrial zone.

each resource speaker emphasisedthe important role NPo is playing in Pak-istani economy via series of capacity de-velopment programmes. ryuichiroYamazaki secretary General (APo) –Japan and John Heap President WCPscongratulated NPo for organising aunique event under guidance of Ceo-NPo Khawaja muhammad Yousuf. Ceo-NPo Khawaja muhammad Yousuf at hisclosing remarks said, “I feel that NPo ismoving in right direction and by lookingat the interest of various dignitaries, whoare part of the session, one gets a reflec-tion of expectations from NPo.” on thisoccasion WCPs awards were given to fivehonourable individuals on their valuablecontribution to industrial productivity en-hancement projects. Five people whowere awarded included saqib moin-ud-din, dr Fakir muhammad, NaumanWazir and Khawaja mohammad Yousuf.

Pakistan improves five points inglobal productivity ranking

former Governor SBP dr ishrat hussain