01

BUSINESS

BTuesday, 30 April, 2013

IT’S A DONE DEAL(

(

THREE-MEMBER MINISTERIAL COMMITTEE FORMED ON ENERGY

ISLAMABAD

AGENCIES

tHe caretaker govern-ment has agreed inprinciple to a bailoutprogramme proposedby the InternationalMonetary Fund (IMF)

which would force Pakistan to introducemajor restructuring of public sector enter-prises and banking sector safeguards.

The programme is part of an ex-tended Fund Facility (eFF) worth over $5billion to be made part of draft of thebudget for 2013-14 and to be signed bythe next elected government.

An official said that the package in-volved reforms in seven key areas.Among them is restructuring of eightmajor public sector enterprises continu-ously relying on the federal budget to op-erate, so that they may stand on their own

feet in two years for possible divestment.The lending agency wants Pakistan to

make the ‘best use’ of breathing spaceprovided by the $5bn loan to create an en-vironment conducive to fresh private in-vestments and issuance of internationalbonds so that the country’s for-eign exchange reserves arebuilt up to a level sufficientfor six months of importsand a stable exchange ratemay be maintained. TheState Bank has beenasked to take effectivesteps in consultation withthe government to intro-duce safeguards in case offailure of small banks by in-creasing the capital adequacyratio and possibly setting up a commonfund for facing off risks of the small andmedium private commercial banks.

The programme proposes that the in-

surance scheme for bank depositors be ex-panded through an effective mechanismand strengthening of the insurance sector.

The most important requirement of thenew programme will be introduction of

massive reforms on the revenue front formobilising additional resources

equivalent to 2.5 per cent ofthe gross domestic product

(GDP) in three years. At thecurrent size of the GDP,the additional resourcemobilisation works out toRs580-600bn. Of this 1.5per cent will have to be

raised during 2013-14.Also in the list of the condi-

tions are power sector reformsto reduce system losses and intro-

duce market-based electricity rates withminimum subsidies, which would effec-tively make electricity even more inaccessi-ble for the majority of Pakistanis.

LAHORE

ONLINE

The Lahore Chamber of Commerce andIndustry on Monday said that a largemajority of business community paidtheir taxes and it was the responsibilityof the Federal Board of Revenue to in-crease the tax net.

In a statement issued in response tothe remarks by Asad Umar, a financialexpert affiliated with the PakistanTehreek-e-Insaf, that most of the busi-nessmen do not pay taxes, LCCI Presi-dent Farooq Iftikhar said that theremarks are uncalled for and reflectslack of insight.

The LCCI president said that a verylarge number of businessmen pay taxeshonestly while a small fraction eitherpay less tax or no tax and that too is inthe knowledge of tax officials.

“The revenues shortfall is becauseof exemptions and SROs provided tocertain sectors. The FBR must enlargeits tax base and until they do it, they

must set realistic revenue targets. Youcannot further tax the existing tax pay-ers that contribute over sixty per cent tothe total tax revenue despite being 25percent of the GDP,” Farooq Iftikharsaid, adding that services sector hastremendous scope and must be broughtinto the tax net to enhance the much-needed Tax-to-GDP ratio.

He said that all sectors of the econ-omy must be taxed, adding that agricul-ture having 20.1% share in GDP iscontributing only 1.2% to the nationaltaxes. On the other hand, manufacturingsector share in GDP is 25.5% and iscontributing 62.2% to the nationaltaxes. Services sector share is 54.4% inGDP but is paying only one third of itsshare in the national taxes, he said.

He said that the Lahore Chamber ofCommerce and Industry had alreadypinpointed that the revenue target of Rs2,381 billion was unrealistic because ofthe energy crisis which kept industrialproductions low besides global reces-sion which adversely badly impacted on

exports. “It is not fair to make generalized

statements and label the entire businesscommunity as non-tax payers. Obvi-ously black sheep are everywhere butgood governance is the main area politi-cians must focus on,” he said.

IMF bail-out accepted ‘in principle’ by caretaker govt

The lending agency wantsPakistan to make the ‘best use’ ofbreathing space provided by the

$5bn loan to create anenvironment conducive to fresh

private investments and issuanceof international bonds so that the

country’s foreign exchangereserves are built up to a level

sufficient for six months ofimports and a stable exchange

rate may be maintained

It is not fair to make generalizedstatements and label the entirebusiness community as non-tax payers. Obviously black

sheep are everywhere but goodgovernance is the main areapoliticians must focus on.

ISLAMABAD

NNI

Athree-memberc o m m i t t e ec o m p r i s i n gfederal minis-ters for petro-leum, water

and power and adviser on finance,has been constituted to review theenergy situation and give its rec-ommendations to improve thepower situation in the country.

This decision was taken byPrime Minister Mir Hazar KhanKhoso while chairing a high levelmeeting to review the energy situ-ation in the country.

The meeting was informedthat the current power generationin the country was 9,200 MWagainst a demand of 13,000MW.The PM was informed that only 55mmcfd gas was being provided tothe thermal power plants against

the promised 150mmcfd gas.The meeting also reviewed the

position of recovery of dues andthe quantum of funds required toproduce optimum generation. Itwas also decided during the meet-ing to setup a mechanism to mon-itor the generation and demand ofelectricity in the country. The PMdirected the Ministry of Water andPower to ensure that uninterruptedelectricity was available in thecountry for the evening of May 10for the next 36 hours to ensure thatthe process of polling and count-ing of votes is completedsmoothly. G wA d A r - r A t o d e r o

roAd: Meanwhile, presidingover another meeting to reviewprogress on the Gwadar-RatoderoRoad, Prime Minister Khoso saidthe government will accelerate thepace of work on the project so thatpeople of Pakistan could reap thebenefits of the Gwader port.

Khoso issued instructions thatwork on Khuzdar-Ratodero sec-tion and Hoshab-Gwadar sectionshould be completed during thenext 12 months while work on N-85 Road and N-30 should be pri-oritised for early completion ofthese linkages with Gwadar.

The PM was informed that thetotal road network of the countrywas spread over 12,131 kilometresof which over 37 percent of theroads comprised those in Balochis-tan. He said that the completion ofthis road is not only important forlinking Gwadar with the rest of thecountry but it would also stimulatedevelopment in the area fromGwadar up till Ratodero.

The meeting was attended byMinister for CommunicationAsadullah Khan Mandokhel‚ Ad-visor to the Prime Minister on Fi-nance Dr Shahid Amjad Chaudhryand Chairman National HighwayAuthority Hamid Ali Khan.

PM orders Ministry ofWater and Power to

ensure thatuninterrupted

electricity is availablein the country for theevening of May 10 forthe next 36 hours to

ensure that theprocess of pollingand counting of

votes is completedsmoothly

Most businessmen pay theirtaxes, claims LCCI president

FAROOQ IFTIKHARLCCI PresIdent

Pakistan spends$4.377b on telecomimports in five years ISLAMABAD: Pakistan has imported

around $4.377 billion mobile phone

handsets and other telecom apparatus

during last five years with telecom imports

of $1.331 billion only in 2007-08, the most

promising year for the sector. Pakistan

Telecommunication Authority (PTA) in its

year 2012 report has revealed that the

country imported mobile phone handsets

with battery of US $ Dollar 1.428 billion

and other telecom apparatus worth $2.949

billion. It said during 2012, total telecom

imports in the country reached $954

million, showing a sharp rise of 24.5

percent over the previous year. This

increase in total telecom imports is due to

a sharp rise in imports of cellular mobile

handsets in the country, which have

reached $465.3 million in 2012 compared

to $218.2 million in 2011, registering a

growth of 113 percent. This fresh rise in

the import of cell phones is due to an

increasing demand for less costly Chinese

mobile handsets while cellular subscribers

have reached 120 million and an

increasing demand for expensive smart

phones in the country. APP

Lucky cement EPSgrew by 49pcKARACHI: Lucky Cement Company

(LUCK) announced results of third quarter

of current fiscal year earning per share

rose to Rs 21.6 as against Rs14.5 in the

same period last year, up 49 per cent.

Despite volumetric variance 1per cent, top

line of the company grew by 16 per cent

to Rs 27.7bn as against Rs 23.9b during

the corresponding period last year due to

sharp increase in cement prices. Revenue

per bag of the company rose by 14per

cent to Rs313 as against Rs 274 during

the same period previous year. Cost per

bag on the other hand inched up by 3 per

cent. This resulted in gross margins

expansion by 6pps to 44 per cent. Other

income was realized at Rs 196mn during

the current year as against Rs3mn during

same period previous year. In 3QFY13 the

company posted profit of Rs2.7bn as

against Rs2.3bn in 2QFY13, up 18 per cent

while is up 61 per cent as against Rs1.7bn

in the same period last year. STAFF REPORT

NBP announces unconsolidated profitKARACHI: The National Bank of Pakistan

(NBP) announced unconsolidated profit

after tax of Rs3.0bn (diluted EPS Rs1.42)

in first quarter of current fiscal year as

against Rs4.8bn (Rs2.24 per share) in

1Q2012. Decline in earnings is mainly

comes from reduced NII (Net Interest

Income) on the back of shrinking banking

spreads. Reduced interest rates along

with hike in cost of deposits are the

factors behind the shrinking spreads.

Compared to 1Q2012, interest income

declined by 4 per cent to Rs 23.9bn while

interest expense rose by 4 per cent to Rs

15.1, rendering into 14 per cent decline

in NII to Rs 8.8bn. Further provisioning of

Rs 1.2bn versus reversal of Rs 0.6bn in

1Q2012 and 15 per cent increase in non-

markup expense to Rs 8.9bn also

impacted the profits. However, 42 per

cent up tick in non-markup income to

Rs5.6bn provided some support. In

sequential basis, interest income declined

by 4 per cent while interest expense

increased by 25 per cent. Resultantly, NII

declined by 31 per cent from Rs12.8bn in

4Q2012. In addition, 30 per cent decline

in non-markup income also dented the

bottom line. STAFF REPORT

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BUSINESSTuesday, 30 April, 2013

02

B

KARACHI: Zong launched a brand new postpaid

service named BizXcess. Picture shows Zong

Chief Financial Officer Feng Tuxian and senior

management at the launch ceremony. PR

Dalda launches ‘Vote Aap Ka’ campaign

LAHORE: Dalda has launched its new and unique

campaign “Vote Aap Ka” all across Pakistan.

Through this campaign, Dalda aims at paying a

tribute to motherhood by reviving the love for our

mothers in our hearts. We have become so

engrossed in our daily lives that we at times forget

to shower our mother with unconditional love. With

this campaign Dalda gave everyone in Pakistan a

chance to realize the importance of mothers and

give them the love and affection they deserve. For

this purpose, people of Karachi, Lahore and

Islamabad were invited to join us in an activity

called the Mamta March on Sunday, April 28 from

8-9pm at Port Grand in Karachi, Fortress Stadium

in Lahore and Centaurus Mall in Islamabad. PR

Fasihul Karim elected to represent South, Central and North East Asian Networks

KARACHI: Fasihul Karim

Siddiqi, Secretary Global

Compact Network Pakistan

and Member Managing

Committee /Board of

Directors Employers

Federation of Pakistan has

been unanimously elected to

represent the South, Central

and North East Asian

Networks as member of the seven member UNGC

Local Networks Advisory Group formed to coordinate

over 100 LNs globally as a part of the newly

established multi centric governance mechanism. Mr

Siddiqi was elected at the XI Annual Local Network

Forum (ALNF) held in Geneva this week and will

represent the UNGC Networks of Pakistan ,India, Sri

Lanka, Bangladesh, China, Japan, Korea, Nepal ,&

Maldives in the LNAG. PR

TEVTA chairperson urges availability ofskilled manpower

LAHORE: Chairperson Technical Education and

Vocational Training Authority (TEVTA) Rashida Malik

has said that availability of skilled manpower is not

only a key to success for industrial development in

Pakistan but also for individual socio-economic

prosperity and poverty alleviation in the society.

Close and effective liaison with the industry can

help TEVTA for training the youth in demand driven

and employable trades. She was addressing on the

occasion of inauguration ceremony of new building

of Architecture Department at Govt. College of

Technology, Railway Road here yesterday. JICA of

Japan has provided Rs. 850 million grant-in-aid for

the construction of this building and provision of

machinery and equipment to run the courses. The

ceremony was attended by First Secretary Embassy

of Japan Mr. Kuroda, JICA Chief in Islamabad Mr.

Kawasaki, TEVTA Officers, Principal, teachers and

students of said College. Chairperson TEVTA said

that curricula of DAE Mechanical and Architecture

Technologies, with the collaboration of JICA, have

been revised and implemented in all TEVTA

Institutes offering these technologies. PR

Xpress Money launches instant Inter-Bank Fund Transfer remittance serviceKARACHI: Xpress Money, the most dependable

global money transfer brand, has partnered with

KASB Bank to offer instant Inter-Bank Fund

Transfer (IBFT) remittance service across 17

banks in Pakistan with a combined nationwide

network of over 6000 locations. With this

pioneering initiative, Xpress Money through KASB

Bank, will be the first to provide the IBFT service

instantly to customers, which until now took at

least 24 hours to get credited. By virtue of being

the leader in the remittance industry in Pakistan,

Xpress Money is constantly ideating on

innovative money transfer services; with

consumer convenience and satisfaction, being

their sole objective. This strategic tie-up with

KASB Bank will empower Xpress Money’s

customers to credit money instantly into the

accounts of their loved ones back home within

seconds of the transaction. The remitter simply

needs to visit any of Xpress Money’s 170,000

agent locations across the globe and provide the

beneficiary’s Account Title and Account Number,

upon which the agent will be able to pull up all

related details of the account holder and the

transfer will be done immediately. Back home in

Pakistan, the beneficiary’s account will reflect an

immediate credit once the transaction is through,

and they can then enjoy a hassle free withdrawal

anytime from an ATM. PR

Pearl Continental Peshawar organizes classical musical evening

PESHAWAR: A classy musical evening was

organized by the Pearl Continental Peshawar at its

elegant Kushaal Hall. Despite heavy rains, large

number of music lovers, elites and families of the

city attended the event. The new General Manager

of the hotel Aamir Kazi thanked the audience and

shared with them the forthcoming attractions that

the hotel has in the offing. He also put forth his

vision about the purpose and different objectives of

such events in Peshawar. Performer of the evening

was Ms. Tina, an established vocalist from

Islamabad. The audience enjoyed the old and new

songs that she sang. Corporate General Manager

Media & Communications Mr. Tahir Khan asked if

there were any young singers to come to the stage

and perform, amongst the audience, a student of

high school joined the group and sang a few hits of

Shafqat Amanat Ali and Rahat Fateh Ali, the

audience genuinely enjoyed his high class

performance and appreciated the hotel for

introducing young talents to the public. PR

USAID team visits USAID-funded FCC women’shostel construction site

LAHORE: A delegation from USAID Islamabad

visited Forman Christian College (A Chartered

University) this morning to monitor progress on the

new women’s hostel being constructed on the FCC

campus with US$6 million support from USAID. The

10-member USAID delegation was led by Ms

Patrice Lopez, Contracting & Agreement Officer, and

included Mr Muhammad Ali Bilal, Acquisition

Specialist, and Mr Zaki M. Saad, Deputy Director

Office of Infrastructure & Engineering. The FCC

Rector Dr James Tebbe, and the Project Manager

Mr Tajammul John, took the delegation on a tour of

the site. The hostel is a 6-storey building with

accommodation for 374 female students. PR

Silk Bank announces first quarter resultsKARACHI: The Board of Directors of Silkbank

Limited, in their meeting held on April 27, 2013,

announced the quarterly results of the Bank for the

quarter-ended March 31, 2013, showing growth in

deposits and revenues. The Bank significantly

improved the deposit mix, through increase in low-

cost current and saving accounts. The Bank had

made strategic investments in new business lines,

credit card and Islamic banking business, last year

which was received positively by the market. The

investments related to the promotion and expansion

of new businesses including launch of new Islamic

Banking branches in the first quarter, and the

impact of the discount rate cuts last year, resulted

in the Bank posting a loss of Rs 219 million for the

quarter. However, with the revenue pipeline from

new businesses and the existing product portfolio,

the Bank is well positioned to increase revenues and

declare profits for the full year 2013. PR

CORPORATE CORNER

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERrafhan Maize 4200.00 4400.00 4001.00 4375.00 175.00 220Bata (Pak) Xd 2083.72 2187.90 2040.00 2162.18 78.46 2,050Wyeth Pak Ltd 1483.96 1558.15 1549.00 1558.15 74.19 3,300shezan Inter. 456.75 479.58 456.00 479.58 22.83 2,200national Foods 355.00 372.75 345.00 372.75 17.75 38,900

Major LosersUnilever Food Xd 5090.00 5050.00 4850.00 4900.00 -190.00 200Colgate Palmolive 1950.00 1852.50 1852.50 1852.50 -97.50 100Island textile 900.00 900.00 855.00 855.50 -44.50 1,400sanofi-Aventis Xd 440.67 422.10 422.10 422.10 -18.57 100Philip Morris Pak. 295.84 293.00 281.05 281.06 -14.78 16,200

Volume Leaders

trG Pakistan Ltd. 11.30 12.00 11.20 11.82 0.52 28,122,000Lotte Chemical 7.54 7.68 7.55 7.59 0.05 11,008,500Wateen telecom Ltd 4.81 5.23 4.75 5.16 0.35 10,366,000B.O.Punjab sPOt 8.85 9.45 8.83 9.27 0.42 8,965,000Maple Leaf Cement 18.95 18.95 18.30 18.34 -0.61 6,479,000

Interbank RatesUsd PKr 98.4244GBP PKr 152.0361JPY PKr 0.9979eUrO PKr 128.2076

ForexBUY SELL

Us dollar 99.90 100.15 euro 129.43 129.70 Great Britain Pound 152.95 153.19 Japanese Yen 1.0020 1.0124 Canadian dollar 96.92 98.62 Hong Kong dollar 12.58 12.82 UAe dirham 26.95 27.20 saudi riyal 26.45 26.70

KARACHI

STAFF REPORT

eNGRO food’s consolidated rev-enues surged by 36% to Rs. 31,301million while net profit was Rs.1,786 million as compared to a netloss of Rs. 649 million during the

same period last year. The Board of Directors of engro Corporation

Limited on Monday announced the financial resultsfor the first quarter ended, March 31, 2013. Theysaid that the return to profitability is mainly attrib-utable to the fertilizer business, where the transferof Mari gas to the new urea plant helped the com-pany post healthy results. The company announcedan ePS of Rs. 3.49 for the quarter ended March 31,2013 as opposed to an LPS (loss per share) of Rs.1.27 during the same period last year.

engro’s fertilizers business continued to expe-rience 86% gas curtailment on the SNGPL net-work. However, the company’s production duringthe quarter was 296 KT as compared to 255 KTduring the same period last year mainly due to in-cremental efficiencies by diverting Mari gas to theenven plant. Higher production along with loweravailability of competitive imported urea increasedeFert’s urea sales to 298 KT in 1Q 2013 from 77KT in 1Q 2012 and improved its market share to23% in 1Q 2013 from 8% in 2012. Resultantly,engro Fertilizers posted a net profit of Rs. 646 mil-lion during the period ended March 31, 2013 vs. aloss of Rs. 1,420 million during the same period

last year.Despite stable revenues, engro Foods’ prof-

itability was higher than 1Q 2012 by 34% due tolower costs of sales. The business closed the quar-ter with a profit of Rs. 653 million vs. a profit ofRs. 486 million in the corresponding period of2012. The Company’s investments in the HalalFoods business in Canada, Al Safa, achieved salesrevenue of Canadian Dollars 2.2 million during 1Q2013 as compared to Canadian Dollars 2.5 millionin the same period of last year.

engro’s Rice business’s revenues increased toRs. 1,218 million in 1Q 2013 from Rs. 161 millionin 1Q 2012 and loss after tax reduced to Rs. 319million in 1Q 2013 versus loss of Rs. 390 millionin 1Q 2012.

engro Polymers showed a robust performancein 1Q 2013 with the company producing its highestever monthly VCM and PVC volumes in themonth of March. engro Polymers revenue grew by17% in 1Q 2013 as compared to the same periodlast year. Growth was mainly attributable to higherPVC and Caustic prices versus last year. engroPolymer posted a profit after tax of Rs. 263 millionin 1Q 2013 as compared to a profit after tax of Rs.414 million in the same period last year. Profit ex-cluding the extraordinary item increased by aboutRs. 100Mn as compared to the same period lastyear.

engro Vopak registered a profit after tax of Rs.271 million as compared to Rs. 340 million in 1Q2012. Lower tariffs on paraxylene and acetic acidled to a dip in profitability.

Engro Food earns Rs 1,786m profit in 1Q

MCB earns profit in firstquarter of 2013

KARACHI

STAFF REPORT

The Muslim Commercial Bank (MCB) an-nounced unconsolidated profit of Rs5.8bn(ePS Rs5.7) up 35 per cent in first quarter ofcurrent fiscal year after tax as against Rs4.3bn(ePS Rs4.22) in 4Q2012 and 4 per cent asagainst Rs 5.6b (ePS Rs5.5) in 1Q2012.The result is also accompanies by Rs 3.5per share cash dividend. Although decliningbanking spreads has impacted Net InterestIncome (NII) of MCB, reversal of provi-sioning and controlled administrative costswere the profitability drivers in 1Q2013.As compared to 1Q2012, interest incomedeclined by 5 per cent to Rs 16.7bn whileinterest expense rose by 2 per cent to Rs 7.0in 1Q2013. Resultantly, NII declined by 9per cent to Rs 9.7bn. Further 3 per cent de-cline in non-markup income to Rs 2.4bnalso depressed profitability.However, Rs 840m reversal of provisionsas against provision charge of Rs 75mn in1Q2012 and 6 per cent decline in non-markup expense to Rs 4.2b helped MCB topost 4percent YoY increase in profitability. On sequential basis, though NII improvedby marginal 1per cent but reversal ofRs840mn as against Rs 424mn provisioncharged in 4Q2012 resulted in 15 percentimprovement in NII (After provisions). Fur-ther 6per cent increase in non-markup in-come and 12 per cent decline innon-markup expense resulted in 35 per centincrease in the profitability.

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