Profit-bookingbrings all-timehigh KSe downKARACHI: The apex bourse closed

lower on Thursday with investors cashing

in shares after the market hit an all time

high the previous day. The Karachi Stock

Exchange’s (KSE) benchmark 100-share

index ended 0.14 percent, or 25.20

points, lower at 17,383.32. There was a

higher volume of trading of shares in the

Pakistan Telecommunication Corporation,

with some investors booking profits after

it rallied in the last few sessions. Small

telecom-related shares like Telecard Ltd

and World Call Telecom remained

popular. Telecard Ltd rose 2.85 percent

to 4.69 rupees. Pakistan

Telecommunication Corporation fell 4.48

percent to 19.40 rupees. In the currency

market, the rupee ended weaker at

97.85/97.92 against the dollar,

compared to Wednesday’s close of

97.82/97.87. Overnight rates in the

money market remained flat at nine

percent. STAFF RePORT

MFN status: Pakistan, indiatalks on 21stISLAMABAD: Pakistan-India talks on

improving bilateral trade and giving

Most Favorite Nation (MFN) status to

India would be held on Feb 21 in New

Delhi. In this regard Commerce Minister

Amin Fahim has sent a summary to

Prime Minister Raja Pervez Ashraf for

approval of his four day visit to India.

Earlier the commerce minister had

cancelled his scheduled visit to India

from January 27 to 29, on the invitation

of his Indian counterpart, Anand

Sharma, to participate in the 19th

Partnership Summit being organised by

the Indian government due to tensions

along the Line of Control between the

two countries. Online

SBP to announcemonetary policytoday

ISLAMABAD: Pakistan’s central bank

will announce its monetary policy for

the next two months on February 8

(today). Analysts are expecting that

the State Bank of Pakistan (SBP) may

opt to keep policy rate unchanged in

the upcoming monetary policy. SBP

Governor Yaseen Anwar will announce

the monetary policy statement for

the months of February and March at

a press conference to be held at the

central bank’s premises. SBP had cut

the policy rate by cumulative 2.5

percentage points since August 2012.

Analysts ruled out any sharp pullback

in inflation in the next 4 to 5 months

provided that oil and other

commodity prices stay within a

manageable range. Thus, expected

CPI inflation is expected to stay

around 9 percent for FY13. inP

01

ISLAMABAD

Online

IN order to generate cheaper elec-tricity from alternate resources,Federal Minister for Water andPower Chaudhry Ahmed Mukhtarhas approved the Draft National

Policy for co-generation by utilisingbagasse and biomass.

Presiding over a meeting on fast track de-velopment of bagasse-based power genera-tion projects that was held on Thursday, theminister asked the ministry to submit the draftto the relevant forum for formal approval.

During the meeting it was recom-mended that upfront tariff will be given forfast track power generation projects andpower producers shall have the option tooffer energy to the respective DISCOs orto the CPPA.

The meeting also proposed simplifiedprocedure and reduction in the time line ofproduction. It shall be mandatory for thepower purchaser to buy all the energy offeredby the power producer. All general, financialand fiscal incentives available to renewableenergy projects of RE policy 2006 will be ap-plicable to the bagasse-based projects.

The minister said the government isutilising all resources to end the energy cri-sis and power generation from bagassewould be another step to produce electric-ity from indigenous resources. He appreci-ated the PSMA for taking interest inbagasse based power projects and assuredto provide full cooperation. “It is also thedesire of the President of Pakistan AsifZardari that sugarcane bagasse be utilisedfor cheaper power generation,” he said.Initially 1,000 MW would be completed onfast track basis, he added.

Earlier, the meeting was briefedby AEDB and PSMA that Pakistan isthe 5th largest producer of sugarcane,produces 50 million tonnes of sugarcaneannually, yielding over 10 million tons ofbagasse. Power generation from bagassewould not only reduce the furnace oil im-port but also save Rs 33 billion worthforeign exchange per annum.The country has 87sugar mills with acapacity togeneratea r o u n d3 , 0 0 0MW ofelectric-ity frombagassein win-ters.

BusiNess

BFriday, 8 February, 2013

We expect each bank to develop and continuously improve its risk

management and control framework depending on nature,

location, size, sophistication, complexity of business operations

and approved risk appetite. — SBP Governor Yasin Anwar

CheaP eleCtriCityAhmed Mukhtar approves Draft National Policy

KARACHI

STAFF RePORT

The Board of Directors of Muslim Com-mercial Bank (MCB) Ltd declared finalcash dividend of Rs 3 and 10% bonusshares, in addition to interim cash divi-dends of Rs 10 already paid for the yearended December 31, 2012, a statement ofthe bank said on Thursday.

Earnings per share (EPS) for the yearcame to Rs 22.77 compared to Rs 21.12for December 31, 2011. Return on assetscame to 2.95%, return on equity wasrecorded at 25.07% and book value pershare improved to 95.84. Total assets ofMCB grew by 17% to Rs 765.899 billion.The analysis of the asset mix highlights27% increase in investments to Rs402.069 billion and 5% increase in grossadvances to Rs 262.392 billion.

The quality of asset saw considerableimprovement as the non-performing loans

of the bank reduced by 4% to Rs. 25.562billion reflecting improvement in infec-tion ratio as at December 31, 2012. Thedeposit base of the bank grew by 11%closing at Rs 545.061 billion with an 18%increase in saving deposits, 13% increasein current deposits and 12% decrease infixed deposits. CASA base, as a result hasfurther strengthened to 85% compared to81% last year. Given the Bank's strong fi-nancial footing and market base, MCBBank Limited long term rating has beenupgraded to AAA from AA+ previouslyin a notification by The Pakistan CreditRating Agency on February 4, 2013.

The Bank is already on the highest slotfor its short term rating of A1+ onPACRA's entity rating scale. The Board ofDirectors met under the chairmanship ofMr. Mian Mohammad Mansha, on Febru-ary 7, 2013 to review the performance ofthe Bank and approve the financial state-ments for the year ended December 31,

2012. For the year 2012, the Bank reportedprofit before tax of Rs. 32.054 billion andprofit after tax of Rs. 20.941 billion withan increase of 2% and 8%, respectively.Net markup income of the Bank was re-ported at Rs. 40.856 billion whereas non-markup income came to Rs. 9.153 billion.

Non-markup income registered an in-crease of Rs. 1 billion (13%) owing to 16%increase in fee, commission and brokerageincome and 19% increase in dividend in-come during the year. The administrativeblock of the Bank registered an increase of10% over 2011, which considering the in-flationary pattern followed during the year,falls within the acceptable levels. The man-agement has been successful in imple-menting central authorization levels andposting, ensuring control over expensegrowth. The provision charge of the Bankdecreased significantly by Rs. 3.176 bil-lion, primarily on the back of strengthenedrisk management framework.

KABUL

nni

Afghan traders said on Thursday that they are not able to paythe high demurrage demanded by Pakistan transport companiesfor their containers stuck at the Karachi port.

Demurrage in this case refers to fees that the transporterscan demand for the extra time the containers have been left intheir charge. A letter sent from Pakistani transport companiesto the Afghan traders has asked each Afghan company to payover $185,000 demurrage to Pakistan.

"The [Afghan] government should be responsible to talk toPakistan and stand against this cruelty," Afghan trader AhmadShah said. "This is not acceptable for us. We are not able to pay.The government should take a decision," a trader and memberof the Egg and Meat Association said. The Afghan Commerceand Industries Minister said he will discuss this matter on Sun-day with Pakistani officials on his official visit to the country."I will share this issue in the session of commerce ministerswhich will be held in Pakistan on Sunday," Anwarul-Haq Ahady

said. Ministry officials added that the economic committee hasdecided that all Afghan containers stopped in Karachi port willbe exempt from customs tax. About 3,700 containers have beenstopped at the Karachi port for three months. The Afghan Cham-ber of Commerce and Industry recently claimed that Afghantraders were being fined for each day the containers remainedat the port, amounting to $50 million in three months.

Senate bodyconcerned overdecline in PSMperformance

ISLAMABAD

Online

Severely concerned about the declining statusof Pakistan Steel Mill (PSM), the legislativebody of the Senate has recommended runningthe affairs of PSM through public-privatepartnership to make it profitable.The meetingthat was held on Thursday under the chair ofSenator Zafarul Haq, showed concernsregarding the continuous decline in theperformance of PSM and said that people areusing the Mill’s resources for their ownvested interests. Senator Fateh MuhammadHasni said that Balochistan has rich resourcesof iron that can fulfil the requirement of ourindustry but unfortunately they have not beenutilised and raw material is imported fromabroad. This not only increase extra burdenon the national kitty, but also causes anincrease in prices of products.He said afterutilising raw material from within thecountry, the government can save billions ofrupees and support the PSM. He said thegovernment is not facilitating the miningsector of iron as FBR collects twice theamount of tax from this sector.Senator HajiGhulam Ali said PSM is causing billions ofrupees of losses to the national kitty and itsdebt is increasing therefore the governmentshould focus on small industries. Heproposed to bring out the PSM under theumbrella of the government, adding thatprivatisation is the only solution of thepresent status.Senator Ilyas Bilour said thesteel business is flourishing in the countrywhile PSM is declining with each passingday. He also was of the view that fairprivatisation was the only solution.SenatorMushahidullah Khan said the government isnot serious to run institutes efficiently.Duringthe meeting, Pakistan Steel Mill ChiefExecutive Officer Shamshad Qureshi briefedthe legislative body about functions andissues of the company. He said imbalance inthe financial affairs existed from last fifteento twenty years.He said in 2008-9 PSMreceived losses of Rs 25 billion and no reliefwas given after repeated requests. He saidthe government paid Rs 36 billion in the lastfour years and this amount was paid ininstallments therefore desired results werenot achieved. The CEO further said PSM hassigned an MoU with the Russian governmentand it is hoped that after a $500 millioninvestment, the situation would improve.

MCB announces financialresults, assets grew by17%, NPL reduced by 4%

Afghan traders struggling topay Karachi port demurrage

PRO 08-02-2013_Layout 1 2/7/2013 11:27 PM Page 1

BusiNessFriday, 8 February, 2013

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUniLever Pak 10075.00 10578.75 10200.00 10543.75 468.75 840Nestle Pakistan Ltd. 4701.00 4905.00 4800.00 4905.00 204.00 120Bata (Pak) 1445.00 1490.00 1445.00 1490.00 45.00 150Colgate Palmolive 1500.00 1525.00 1525.00 1525.00 25.00 50MithchellsFruit XDXB 349.80 364.00 346.00 360.00 10.20 3,400

Major LosersIndus Dyeing 567.63 542.00 542.00 542.00 -25.63 100Sapphire Textile 225.00 225.00 213.75 213.75 -11.25 700Sitara Chemical 195.44 199.81 190.00 191.26 -4.18 24,800Premier Suger Mills 75.00 76.10 71.25 71.25 -3.75 7,000Murree Brewery 134.90 135.00 129.00 131.20 -3.70 2,700

Volume Leaders

TRG Pakistan Ltd. 8.28 9.15 7.48 7.82 -0.46 55,673,500Telecard Limited 4.56 4.95 4.35 4.69 0.13 26,590,000WorldCall Telecom 3.49 3.69 3.28 3.55 0.06 25,400,500Jah.Sidd. Co. 16.66 17.27 16.78 17.04 0.38 18,703,000Byco Petroleum 14.08 14.83 14.20 14.26 0.18 18,513,000

interbank RatesUSD PKR 97.9478GBP PKR 153.4940JPY PKR 1.0432EURO PKR 132.8368

ForexBUY SELL

US Dollar 99.10 99.80Euro 131.28 133.19Great Britain Pound 154.00 156.20Japanese Yen 1.0492 1.0636Canadian Dollar 97.96 100.01Hong Kong Dollar 12.53 12.79UAE Dirham 26.80 27.14Saudi Riyal 26.30 26.58

havas pushes itsintegration and digitalstrategy into media

KARACHI: Havas announced another step forward

with its integration strategy to underscore its simple

and agile structure. The newly created ‘Havas Media

Group’ will include all of Havas’s media agencies,

consisting of Havas Media (operating in 126

markets), within which its media brand MPG and its

digital brand Media Contacts will be fully incorporated

and rebranded, and Arena Media (operating in 13

markets). The rebrand is supported by a new

simplified structure that places its digital expertise

and content marketing at the core of its operations.

This move brings the media side of the business in

line with the structure of Havas’s creative division,

Havas Creative Group (composed of the Havas

Worldwide global network and Arnold Worldwide

micro-network). Vishnu Mohan, CEO, Havas Media,

Asia Pacific, added: “This rebranding couldn’t have

been initiated at a better time from the Asia Pacific

perspective. Clients in the region are looking for

simplicity in agency structures and an integrated

offering. The objective of our current rebranding is

aligned to that expectation. The simplification of

brands within our group furthers our aspiration of

being the most agile and integrated agency group

with digital at its core.” PReSS ReleASe

Pakistan Japan BusinessForum leads a pharmadelegation to JapanKARACHI: Pakistan Japan Business Forum (PJBF) in

collaboration with their counter parts in Japan have

arranged for a delegation from Pakistan to visit Japan

and interact with the Pharmaceutical Companies in

Japan for possible business collaboration. The 13

member delegation is led by the Senior Vice Chairman

of the Forum, Satoshi Nakagawa who is also the

Country General Manager of Marubeni Corporation in

Pakistan, Director PJBF, Feroz Shah and the Executive

Officer PJBF, Shaheena Anjum are also accompanying

the delegation for coordination and networking

support. Other individuals in the group are from Hilton,

Neutro, Global, TG, Pharmevo,Vision, Drug, Glitz and

Wilshire Lab who are to explore the opportunities

available with the Japanese Pharmaceutical Companies

for business in Pakistan as also the possibilities for

Joint Ventures with them. During their stay in Tokyo,

they will be exploring for prospective business

partners, attend a seminar on SME's arranged by the

Bank of Tokyo Mitsubishi UFJ, Karachi and also attend

a dinner in their honour by the Pakistan Ambassador

to Tokyo, Farukh Amil PReSS ReleASe

habib ahmed appointedhonorary consul of russiaLAHORE: In a graceful event in the Embassy of

Russian Federation, held to install Mr Habib Ahmed,

as honorary consul, the Russian Ambassador, Mr

Andry Budnik said that Habib Ahmed has played a

vital role in promoting relations between the two

countries and contributing in strengthening of

economy of Pakistan. Earlier on reaching the

Embassy, Habib Ahmed was warmly welcomed by

the Ambassador Mr Budnik, Trade Commissioner Mr

Yuri Kozlov and other senior diplomats of the

embassy. PReSS ReleASe

NaFa–Summit Bank atMCard launched KARACHI: NBP Fullerton Asset Management

Limited (NAFA), a subsidiary of National Bank of

Pakistan, joins hands with Summit Bank Limited to

introduce a co-branded ATM Card for NAFA

investors. The NAFA-Summit Bank ATM Card

launching ceremony took place in Karachi on 6th

February 2013 where Mr. Husain Lawai, President &

CEO of Summit Bank Limited and Dr. Amjad

Waheed, CEO of NAFA, signed the co-branded ATM

Card agreement. This ATM card will enable NAFA

investors to withdraw cash against instant

redemption of their investment in NAFA Funds,

round the clock at over 6,000 1Link/MNET ATMs

across the country. NAFA is managing 12 open-end

mutual funds with a total asset base of over Rs. 50

billion. NAFA is rated ‘AM2’, which denotes very

high investment management standards by PACRA

and is amongst the four top rated asset

management companies in Pakistan. Sharing his

vision for Pakistan’s mutual fund industry, Dr.

Amjad Waheed said, “This initiative is part of

NAFA’s continuous effort to offer innovative

investment solutions that add value and

convenience to the experience of mutual fund

investors in Pakistan.” PReSS ReleASe

easy Breezy Chiccompletes anothersuccessful eventKARACHI: The famous fashion exhibition Easy

Breezy Chic completed another successful event,

this time in the city of lights, Karachi. The

exhibition highlighted designers like Monica

Piracha, Kausar Humayun, Alina and Fareena, and

Khanz. The exhibition also featured brands like

Aisha Alam, Studio 9, Madiha Ibrar and Adil

Sartaj’s Object store. The easy breezy chic event

made a successful run earlier last year. The event

kicked off from Lahore at the SukhChayn health

and wellness club and rocked the town. Many

established brands took part in the event along

with newcomers who are trying to make a mark

for themselves in this very competitive industry.

The event provided at great platform to designer

to showcase their talent to the people. “The

turnout was just amazing and the people enjoyed

themselves to the fullest”, said Irene Johnson, the

event organizer. “The collection displayed in the

exhibition were just fabulous and outstanding to

say the least”, she further added when asked

about the outfits that were displayed. The

colourful event was well covered by channels and

print media. The people who came to visit the

exhibition were much delighted as they were

treated to some the best collection and

scintillating outfits by the designers. The

exhibition was held on the 2nd of February 2013

at Price Jewellers near The Mall. The fun filled

event started at 1p.m and ended at 6p.m. The

hall was full for the most part of the day with

people coming in large numbers at the end part of

the event. PReSS ReleASe

NBP aggressively marketinghome remittance businessin Saudi arabia

KARACHI: Saudi Arabia is the leading remitting

country for Pakistan in terms of Home Remittances.

Fully understanding the business dynamics, NBP is

aggressively conducting business development

activities in the Kingdom. In this regard, Mr. Khalid

Bin Shaheen SEVP/Group Chief-NBP and Chairman

NBP Exchange Company Limited recently held a

series of meetings with senior banking counterparts

at Saudi Arabia to promote home remittances

through formal channels. NBP has made remittance

arrangements with all leading banks in the

Kingdom to provide fast, convenient, reliable and

absolutely free of charge remittance services to

expat Pakistanis while creating awareness in the

community about the availability of theses efficient

services through various marketing campaigns

while simultaneously discouraging the use of illegal

Hawala/Hundi channels. The Pakistani community

living in Saudi Arabia is also very responsive to the

efforts and has overwhelmingly adopted the formal

remittance channels in support of the national

cause. PReSS ReleASe

Dell selected by KP govt for freelaptops to studentsLAHORE: Dell has been selected to provide the provincial government of Khyber-

Pakhtunkhwa (KPK) 25,000 Inspiron3420 computers which will be distributed to

students in the province. The initiative is the largest of its kind ever in the province

and is designed to help enable students and people of KPK to become productive

and contributing members of society and to give back to the province. The first

round of distribution will be conducted on Feb 10 at Peshawar University. Speaking

about the initiative, Project Director KPK, Adeel Khan, said “This project is agreat

leap in terms of equipping our youth to meet the challenges of the modern world

and to keep Pakistan a competitor in the global knowledge economy. Dell’s

involvement goes a long way in guaranteeing the success of this initiative.” Shahzad

Aslam Khan, Country Manager Dell Pakistan & Afghanistan, said “We look forward to

working with KPK as they increase technology access and the learning potential for

students. Mobile computing devices have become essential to daily life — at work, at

home and increasingly, in academic institutions. Students are leveraging devices of

all kinds to access information, collaborate with their peers and teachers, and

produce dynamic content inside and outside of the classroom. At Dell, we believe

these devices can help support teaching and learning – and have the potential to

personalize the learning experience for each student. Dell is delighted to work with

KPK in this important program and is committed to providing these devices by

meeting aggressive time lines and ensuring highest product quality.” PReSS ReleASe

MD NeSPaK posting not contrary toPeC rules: Prof JameelLAHORE: Pakistan Engineering Council (PEC), which is the right forum for

regulating consulting services in Pakistan, has not invoked any law against the

appointment of present Managing Director of NESPAK, this was stated by Prof.

Jameel Ahmad Khan, former Chairman PEC, former Vice-Chancellor of NED

University of Engineering and Technology, Karachi and a former Director of NESPAK

Board, in a press release issued here on Wednesday. He said that he had been the

Chairman of PEC and certainly knew that there was a provision under Clause 3 of

the Conduct and Practice of Consulting Engineers Bye-laws of PEC (1986) that an

engineering consulting firm should be owned by professional engineers. However,

the equity of the multi-disciplinary consultancy firm NESPAK is wholly owned by

the State and as such it is exempted from the application of this law. PReSS ReleASe

CORPORATE CORNER

LAHORE: Hassan Frid, Adam Nelson and

Hussain Farid at the launch of Nelson

Chocolate Bar on Thursday. STAFF PHOTO

02

B

Britain will not accept an EU budget deal

unless further cuts are made in negotiations

in Brussels —David Cameron

LAHORE: Russian Ambassador Andry Budmik,

Trade Commissioner Yury Kozlov, Habib Ahmed,

Dr Shahid Hassan and Mr Mujeeb at Russian

Embassy on the appointment ceremony of Habib

Ahmed as honorary consul of Russian Federation

in Lahore. PR

eurozone interestrates kept onhold at 0.75%

LONDON

AGenCieS

THE European Central Bank (ECB) has lefteurozone interest rates unchanged at 0.75%, ashad been widely expected. Many analysts donot expect the ECB to alter rates from theircurrent record low until next year at the earliest.

ECB president Mario Draghi told a news conference thatbusiness confidence was returning, but the situation "remainsfragile". The last time the ECB made a change to its maininterest rate was in July, when it was cut from 1%. Recentsurveys have suggested that the pace of decline in theeurozone's manufacturing and service sectors has slowed. MrDraghi said that there were signs that business and financialconfidence in the eurozone was returning, although there"continues to be downside risks". The increasing amount ofloans that European banks are repaying to the ECB was a signof that confidence, he said. "It means they (banks) are lessuncertain than they were a year ago."

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