01

business

BTuesday, 9 April, 2013

All steps will be taken to improve

Pakistan’s economy. — Prime Minister

Mir Hazar Khan Khoso

Stocks close higher,rupee weakensKARACHI: Pakistan’s stocks closed

higher on Monday in lackluster trade as

investors trimmed their positions in the

banking sector, dealers said. The Karachi

Stock Exchange’s (KSE) benchmark

100-share index ended 0.09 per cent, or

17.03 points, higher at 18,653.06

points. Bank Islami Pakistan Ltd fell 5.41

per cent to 6.30 rupees while Muslim

Commercial Bank was down 1.32 per

cent to 195 rupees. In the currency

market, the rupee ended

weaker at 98.37/98.42

against the dollar,

compared to Friday’s

close of 98.30/98.35.

Overnight rates in the

money market

remained flat at 9.40

per cent. STAFF

REPORT

OGDCL’s exploratoryefforts yielding resultsISLAMABAD: The Oil and Gas

Development Company Limited

(OGDCL) is successfully going ahead

with its goals with spudding 11 new

wells during the first half of the

current financial year to meet the

country’s growing energy needs.

Giving details, the company’s

spokesperson said 11 new wells

include two exploratory wells namely

Raja-1 and Multan North-1, one

appraisal well Chak Naurang South-2

and eight development wells namely

Nashpa-4, Qadirpur-46 & 49, Bahu-5,

6, & 7, Rajian-7 and Bobi-10.

Company’s exploratory efforts to

locate new hydrocarbon reserves

yielded three new oil and gas

discoveries at Naspha-3 (Naspha E.L)

in District Karak, Khyber

Pakhtunkhwa, Zin SML-1 (Zin E.L) in

District Dera Bugti, Balochistan and

at Suleman-1 (Khewari E.L) in

District Khairpur, Sindh. The

company has also awarded contract

for development of Kunar Pasakhi

Deep and Tando Allah Yar Field

Development Project Phase-II, the

official said and added the project

consists of gas gathering system

which will convert 250 mmwcfd of

raw gas into 225 mmscfd of pipeline

quality gas and is expected to be

completed within the next 12

months. APP

KARACHI

STAFF REPORT

THE central bank, which is dueto unveil its monetary policystance for next couple ofmonths coming Friday, is ex-pected to maintain the status

quo, mean keep the discount rate intactat the current 9.5 percent.

The market analysts believe that theState Bank of Pakistan (SBP) hadslashed the policy rate by a cumulative250 basis points (bps) since June 2012.

“We expect the central bank tomaintain its stance of a status quothis time as well, similar to last twoMPS,” said Muniba Saeed of Invest-Cap Research.

The analyst bases her argument acontrolled consumer price index (CPI)inflation that, she said, stood at 6.97%in Nov-12 when the regulator had cutthe discount rate by 150bps to 9.50%in Dec-12.

“The same is now at 6.57% (Mar-13) thus making no case of a policy ratechange,” Muniba insists.

Second argument she cites to sup-port her outlook is the State Bank’s useof the discount rate as a tool to influ-ence the private credit. The private loanoff-take, the analyst said, still was de-pressed. “Therefore not warranting anyincrease in policy rate,” she added.

Though the SBP is expected to keep

the 9.5 percent policy rate intact, thistrend would likely be witnessing a re-versal during the next fiscal year, FY14.

“With inflation ex-pected to increasegoing forward inFY14 on ac-count of re-duction insubsidy onelectricityand resur-gence ofcore infla-tion, we ex-pect thepolicy rate tobe increasedin FY14,” Mu-niba said.

Nevertheless, shesaid in FY13 the CPI wasexpected to settle between 7.5 and 8percent as crop prices, cotton, wheat,sugar and rice, remained intact as wellas international oil prices remainedclose to $100 per barrel.

The central bank, recently beenusing the discount rate to encourage pri-vate sector credit, had been unable to at-tain the desired impact on the same.“According to SBP officials, the centralbank now plans to use other tools toachieve the goal,” claimed the Invest-Cap analyst.

Giving her outlook, the analyst

said though fac-tors like infla-tion and privatecredit were ex-pected to influ-ence the bank’s

monetary policystance, these are

not anticipated tocompletely dictate the

regulator’s doings.“Even if CPI continues to

remain within bounds and private creditsubdued, with Pakistan looking forwardto re-entering the SBA program in orderto finance the prevailing deficit, weforesee the IMF to demand a rate in-crease for such funding therefore lead-ing to further chances of a rateincrease,” the analyst viewed.

Also, she said, with Pakistan’s in-clusion in the IMF program and foreignexchange reserves thus replenished, thelatter was expected to strengthen PakRupee and discourage further exchangerate based inflation going forward.

KARACHI

PRESS RELEASE

Jahangir Siddiqui & Co. Ltd. (the “Company”) herebyclarifies erroneous reports in the media that have beencirculating regarding its annual general meeting sched-uled at 11.30 am on April 5, 2013, at the Regent PlazaHotel in Karachi. It is most unfortunate that none ofthe media organizations that have been reporting thismatter called the Company for clarification.

At approximately 10.40 am on April 5, 2013, a mobwhose ringleader was Shunaid Qureshi s/o ShafiMuhammad Qureshi entered the hotel and proceededto the area outside the Company’s meeting room wherethe Company’s share registrar was registering share-

holders. Some members of the mob registered with theshare registrar others did not. When asked for his orig-inal NIC and folio number by our share registrar, theringleader, Shunaid Qureshi refused to provide them.Shunaid Qureshi simply stated in Urdu that he is Shu-naid Qureshi and everyone knows him. It was ex-plained to him that this was a requirement of law buthe still did not provide the required details. Uponchecking our shareholder list as at the book closuredate, we found Shunaid Qureshi is not a shareholder ofthe Company. We also did not receive a proxy from anyother shareholder nominating Shunaid Qureshi as theirnominee. Therefore, Shunaid Qureshi was trespassingon the Company’s meeting and his attendance of themeeting was completely unauthorized.

Many members of the mob did not register withtheir original CNIC while some did not register withthe share registrar at all. The mob barged into the meet-ing approximately (30) minutes before the meetingroom was open and damaged a door of the hotel. Themob included a number of people with video cameraswho we do not believe were shareholders of the Com-pany and who did not register their NIC cards and folionumbers to evidence their identity as shareholders.

As a result of the serious disturbances created bythe mob and the damage to the meeting room door andother property of the hotel, the Chief Security Officerof the hotel called the Saddar Town police station. Thepolice arrived at the meeting and they proceeded to ar-rest some of the persons involved in this criminal con-duct including Haji Ghani Usman and his son, AsimGhani, both shareholders of the company. Those ar-rested were taken to the Saddar Police station. The po-lice registered an FIR (First Information Report) againstvarious individuals accompanying Haji Ghani Usman,

Asim Ghani and Shunaid Qureshi.Many of the members of the mob caused severe

disruptions during the meeting including assaultingother shareholders present which resulted in alterca-tions between the mob and other shareholders.

Shunaid Qureshi was caught on video tearing hisown shirt, presumably to garner sympathy. After thearrest of some of the persons responsible by the policethe meeting of the Company resumed. After conclud-ing the remaining items of the agenda the meetingended in accordance with law.

After he was released from police custody, HajiGhani Usman proceeded to speak to the media andgive a completely distorted version of the events. TheCompany has taken serious notice of Haji Ghani’s ac-tions. In addition, the Company has taken serious no-tice of Mr. Shunaid Qureshi’s actions as he was not ashareholder but a trespasser.

The Company is initiating appropriate legal actionagainst these persons.

ISLAMABAD: The Islamabad HighCourt (IHC) on Monday barredFederal Board of Revenue(FBR) Chairman Ali ArshadHakeem from performing hisfunction. A petition was filedin the IHC whereby thepetitioner had taken the pleathat Hakeem’s appointment wasnot made as per rules and regulations.The post of chairman FBR is advertised in the newspaperbut it was not done so in this case and this way norms ofmerit were overlooked. The petitioner further contendedthat a summary comprising three names is required to besent to the Prime Minister in connection with theappointment of chairman FBR but it was not sent and onlythe name of Ali Arshad Hakeem was forwarded. JusticeShaukat Aziz of IHC cancelled the notification onappointment of Ali Arshad Hakim as chairman FBR andbarred him from performing his duties. Meanwhile, threenames are under consideration for the appointment ofchairman Federal Bureau of Revenue (FBR), sources said.According to official sources, Shahid Rahim Sheikh ofCustoms Group, Ansar Javed of Income Tax group andAbdul Samad of Income Tax group are being consideredto replace Hakeem. STAFF REPORT

IHC bars FBR chairmanfrom working

JSL RUBBISHES MEDIA REPORTS

With inflation expected to increase

going forward in FY14on account of reductionin subsidy on electricityand resurgence of coreinflation, we expect the

policy rate to be in-creased in FY14.

SECP initiatesinquiry againstillegal investmentschemes

ISLAMABAD

ONLINE

The Securities and Exchange Commission ofPakistan (SECP) has initiated an inquiry intothe affairs of registered companies that wereaccused for defrauding the general public byoffering them investment opportunities inillegal schemes. The SECP has taken theaction on various complaints received againstthese companies for illegal deposit taking inthe name of Modarabas. The articles ofassociation of these corporate entities were notallowed them to deal in the modarba products.These registered companies are M/s SpadixGroup of Companies (Pvt) Ltd, M/s Pak TeaCompany (Pvt) Ltd and M/s SpadixPharmaceuticals (Pvt) Ltd of Spadix Group.The SECP has recently received a letter fromthe State Bank of Pakistan (SBP), wherein itwas reported that associated companies of M/sSpadix Group were involved in illegal depositfrom general public in the name of Modarbat.The names which NBP mentioned are SpadixPharmaceutical Company, GoodmanPharmaceutical Company, Sanitory Works(Fayyazi Gujranwala Industries (Pvt) Ltd),Cable Works (Fayyazi Gujranwala Industries(Pvt) Ltd), AL-Hassan Autos (Pvt) Ltd andMarble Export.

ISLAMABAD

APP

Pakistan Railways is planning to buy diesel locomotivesfrom South Korea for what a five-member delegationof the ministry is already in Seoul to negotiate the deal.

The delegation is headed by General ManagerOperation, Muhammad Junaid Qureshi and comprisesChief Mechanical Engineer (Locomotives) Mubeenud Din, Deputy Chief Mechanical Engineer (Diesel)Rahat Mirza, Manager Works Zulifqar Sheikh andDeputy Chief Planning of Pakistan Railways KarachiMuhammad Yusuf, an official said.

He said that during their stay in South Korea, therailway official would visit locomotive manufacturingplants, inspect the proposed engines and hold neces-sary meetings to finalize the purchase.

The official said that South Korea had upgradedtheir railways network from diesel to electrifying sys-tem to control the environment threats. He said that theKoreans have a sufficient stock of locomotives andhave shown their interests to sale the diesel locomotivesto Pakistan since these diesel locomotives are uselessfor them after running of locomotives on electricity.

The official said that on experimental basis South

Korea may hand over five locomotives to PakistanRailways free of cost that would follow the finaliza-tion of the deal.

He said these locomotives were manufactured byGeneral Electric Company and available on cheaprates comparatively to the new ones available withUnited State of America and China made locomotives.

The official was of the view that after the success-ful deal, Pakistan Railways would be in a position tomake operational all Korean locomotives after makingnecessary modification at Pakistan Railways Factoryat Risalpur. The railways, isfacing serious problemsdue to shortage of loco-motives and there areonly 70 to 80 fullyfunctional locomo-tives against thedemand ofaround 400,he added.

3 CANDIDATES BEING CONSIDEREDFOR FBR CHAIRMAN

Railways plans to buylocomotives from Korea

Analysts foresee statusquo in SBP’s monetarystance on Friday MUNIBA SAEED

INVESTCAP RESEARC

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businessTuesday, 9 April, 2013

Etihad awarded CSRAward in Pakistan

KARACHI: For the second year running, Etihad

Airways, the national airline of the United Arab

Emirates, has won the Global Corporate Social

Responsibility Leadership Premium Awardat the

2013 CSR Business Excellence Awards, organised

by the National Forum for Environment and Health

in Pakistan. The award recognises Etihad Airways’

ongoing commitment to incorporating ethical

values and respecting individuals, communities

and the environment. Accepting the award on

behalf of the airline, Etihad Airways’ Area General

Manager for Pakistan, Bangladesh, Nepal, Sri

Lanka and the Maldives, Amer Khan, said: “We

arehonoured to receive this award, as recognition

of our efforts and active participation in causes

that assist people and communities across Etihad

Airways’ global network. PRESS RELEASE

NBP launches remittanceservices arrangement

KARACHI: Home remittances are playing a pivotal

role in strengthening the economy of Pakistan. UAE

is the second largest source of Home remittances

to Pakistan after Kingdom of Saudi Arabia, and

National Bank of Pakistan has established a number

of Home Remittance arrangements in UAE within

short span of three (3) years under the guidance

and dynamic leadership of Khalid Bin Shaheen,

SEVP/Group Chief, NBP and Chairman NBP

Exchange Co.NBP has made arrangements with all

leading Money Service Businesses in UAE, which

include UAE Exchange Center, Al Ansari Exchange,

Al Falah Exchange, Al Ghurair Exchange, Orient

Exchange, Universal Exchange, Habib Exchange, Al

Rostamani Exchange, Xpress Money, Western Union

and National Exchange Company. To increase NBP’s

correspondent base in UAE, Mr. Khalid Bin Shaheen

has recently signed another key Home Remittance

arrangement with one of the leading Exchange

Houses i.eM/s. Sharaf Exchange Dubai, UAE.”NBP is

one of the largest players in the remittance market

of Pakistan and the remittance arrangement with

Sharaf Exchange is another milestone,” said Khalid

Bin Shaheen. PRESS RELEASE

Lals Patisserie launchessavoury menu

KARACHI: Patrons frequenting Lals Patisserie on

Khayaban-e-Shahbaz will experience new

scrumptious flavors as the much sought-after cafe

unveils a new savoury menu on Sunday, April 7th.

This is the first of many anticipated extensions to

the popular confectionary. To mark the launch of

this new endeavor, Lals Patisserie held an exclusive

and intimate four-course dinner with celebrities,

socialites and media personalities. Lals Patisserie’s

appetizing range of savouries consists of a selection

of fresh salads, delicious sandwiches, mouth-

watering appetizers and hearty entrees. Some of

the house specialties include Mediterranean salads

such as Fattoush and Rocket with pear along with

flavorsome gourmet crostinis and fries platter. Lals

is also the first to introduce a one-of-a-kind Banh

Mi Vietnamese sandwich and puttanesca along with

old favourites such as pasta bolognese, lasagna

and classic burgers. PRESS RELEASE

Wateen and Nutshellsuccessfully conclude S Asia Leadership Summit

LAHORE: Wateen Telecom successfully concluded

its participation in the Nutshell Forum on

Collaborating for Change, that was held in Karachi

on the 2nd and 3rd of April 2013. Wateen Telecom

was a gold sponsor for the event this year. The

forum was a cross-border initiative to bring together

the best corporate minds from across the sub-

continent and breed a spirit of sharing and

cooperation among them. The conference included

keynote speeches by a number of prominent

corporate executives from India and Pakistan

including Wateen Telecom’s Chief Transformation

Officer Asad Rezzvi. This Conference was directed by

Dr. Upali Mahanama – Srilanka, Conference Director,

and Author of Marketing Skills in Management. More

than 500 delegates attended the forum from

different countries in the South Asian region and

Wateen Telecom Chief Transformation Officer Asad

Rezzvi represented Wateen as a panelist and a

speaker at the event. PRESS RELEASE

Najia Malik launches hernew collectionKARACHI: Najia Malik, a

young Karachi based

designer, is making some

head turn with her dazzling

designs and unique sense of

embellishment. Najia Malik

designs are considered

inspirational that are

measured works of art. The

young designer has recently

launched her new collection

that serves modern genre

with eye popping designs.

The collection is well

embellished with clean cuts.

The outfits designed are

made in keeping in mind

the comfort need of the females. The collection has

used a variety of colors that suited for both day and

evening wear. “I m really pumped up about my new

collection, as a lot effort and time was spend in

creating these outfits from concept to reality,” said

Najia Malik, about her new collection. “The designs

are different and serve best for the upcoming

summer season”. PRESS RELEASE

CORPORATE CORNER

02

B

1,500 Megawatts added in the national

grid. — Caretaker Federal Minister for

Water and Power Dr Musadik Malik

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUnilever Food SPOT 4427.00 4648.00 4648.00 4648.00 221.00 20Colgate Palmolive 2000.00 2100.00 2050.00 2050.00 50.00 150UniLever PakSPOT 15000.00 15100.00 15000.01 15066.45 66.45 1,420Wyeth Pak Ltd XD 982.80 1031.94 1000.00 1031.94 49.14 1,850Bata (Pak) XD 1528.74 1605.17 1575.00 1575.00 46.26 2,350

Major LosersFazal Textile 230.03 225.00 218.55 220.00 -10.03 900Atlas Honda Ltd 181.50 180.05 176.00 176.00 -5.50 3,200Shezan Inter. 456.70 456.70 452.00 452.00 -4.70 200National FoodsXD 366.78 368.00 363.00 363.25 -3.53 2,800Shell Pakistan Ltd. 143.01 145.50 140.00 140.33 -2.68 255,800

Volume Leaders

Bankislami Pakistan 6.66 6.95 6.05 6.39 -0.27 12,538,000Jah.Sidd. Co.XD 13.30 13.78 13.03 13.17 -0.13 9,328,000P.T.C.L.A 21.23 21.60 21.20 21.27 0.04 6,201,500P.I.A.C.(A) 6.72 6.80 6.36 6.43 -0.29 5,906,500Maple Leaf Cement 18.67 19.29 18.75 19.05 0.38 5,569,500

interbank RatesUSD PKR 98.4356GBP PKR 150.7640JPY PKR 0.9982EURO PKR 128.0549

ForexBUY SELL

Australian Dollar 102.3 102.6UK Pound Sterling 148.75 150.25Euro 125.8 126.5US Dollar 98.9 99.15Canadian Dollar 96.5 96.75Saudi Riyal 26.1 26.35UAE Dirham 26.75 27Japanese Yen 1.0084 1.0189China Yuan 13.5 14

LAHORE: The Lahore School of Economics won the boys’ trophy at the annual sports gala of the

Lahore School. PR

Industry turnaroundto cut FCCL debt toRs11.4bn by end-2013

KARACHI

STAFF REPORT

FAUJI Cement Company Limited (FCCL),country’s 4th largest cement, would be amajor beneficiary of the operating and fi-nancial leverage as its new line became op-erational while the local cement industry

dynamics have started improving.The FCCL with higher market share, improved

production efficiency and strong cash flows has thepotential to considerably reduce its debt obligationsand post better than average earnings growth, saidthe market analysts.

The (FFCL) stock is currently trading at FY13and FY14 PE of 5.2x and 4.0x versus sector PE of5.5x and 5.5x, respectively.

After 2.3mn tons (7200tpd) expansion, theFCCL has become the country’s 4th largest cementmanufacturer with 8.0% market share compared toan average 6.6% in FY12.

Further, the European-made $335mn new linehas brought efficiencies as FCCL’s EBITDA mar-gins has improved by 14pps in 1HFY13 versus av-erage rise of 9pps of the industry. “Resultantly,FCCL’s sales are likely to grow by 41% and 6% inFY13 and FY14 respectively with EBITDA marginimproving from 34% in FY12 to 38% in FY13 and

onwards,” said Topline analyst Asad I. Siddiqui.The analyst said that due to improved efficiency

and higher financial leverage, the FCCL would bethe major winner of turnaround in cement sectorstemming from better margin scenario and sharp fallin interest rates.

The company generated EBITDA of Rs2.8bn in1HFY13 against Rs934mn in 1HFY12, which willhelp in early repayment of loan. “We expect debt todecline to Rs11.4bn by end of FY13 from Rs13.5bnat end FY12,” Asad said.

Moreover, he said, 425bps decline in KIBORsince July 2011 will also positively affect its profits.We expect financial charges to decline by 15% inFY13 and 36% in FY14.

In 1HFY13, the FCCL posted earnings ofRs938mn (EPS Rs0.7), against loss of Rs102mn.However, it reported taxation of Rs398mn (incl. de-ferred tax) while actual outflow was only Rs37mn.

“This suggests that FCCL’s actual earning is un-derstated and this will continue in the presence ofdeferred tax liability,” said Asad.

This non-cash tax expense along with high de-preciation (Rs1.1bn a year) due to its expansion willgenerate enough cash for early debt retirement. Con-sidering better cash position, FCCL may surprise in-vestors by dividend of Rs0.5 in FY13 after a gap of7-years, he concluded.

Mobile phone usersmake over 192.9bnminutes voice callsper year

ISLAMABAD

APP

The mobile phone subscribers in thecountry have made more than 192.9billion minutes per year voice calls tolandline and other cellular networkswhich is expected to go up further duringon-going year. Touching of over 16 billionminutes (voice calls) per month mark lastyear is due to unlimited and inexpensivevoice bundles being offered by mobilephone operators, showing an increase of40 percent, Pakistan TelecommunicationAuthority (PTA)’s report revealed. It saidthis voice traffic translates into an averageof 528 million minutes per day or 22million minutes per hour or 366,666 voiceminutes per minute. In other words - onaverage - there are around or over 366,666mobile phone users on phone doing voicecalling every time. Every mobile phoneuser on average make 141 minutes ofvoice calls every month which can betranslated to an average of 5 minutes ofoutgoing voice calls per subscriber perday. The report said the substantialincrease in cellular outgoing traffic ismainly attributed to low-cost voicebundles which allows virtually unlimitedvoice calling on local networks.Furthermore, the decreasing call rates -during year 2011-12 - is said to be anotherreason for such increase in cellularoutgoing traffic of Pakistan.

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