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profitepaper pakistantoday 31st March, 2013
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Refineriesmarginslikely to hikein 3rd quarter current FY ISLAMABAD: The country’s oil
refineries will get additional revenue in
3rd quarter of current finance year due
to hike in crude oil price in
international market. According to the
statistical data, the global crude oil
prices (Arab light) stable around US$
110 per barrel an average of 3% gain
petroleum prices in 3rd quarter of
2013 is likely to bode well for domestic
sector. As per data domestic gross
refinery margins (GRMs) which are
preliminary gauge of sector’s
profitability are like to stand around
US$ 3.5 a barrel in the preceding
quarter. Statistical data further
revealed that during the current
quarter international crude oil prices
on an average increase by 1% to
average at US$ 111 per barrel as
compared to last quarter. On the other
hand product prices on an average
rose in rang of 3-5% rendering into
better product margins in 3rd quarter
of current fiscal year. It is stated that
Petrol (MS) spread to improve by
significant US$4 per barrel to US$ 5
per barrel in 3Q 2013 while margins on
High Speed Diesel (HSD) are also likely
to US$ 2 to US$ 24 per barrel. Furnace
oil margins are expected to remain
stagnant near negative US$27 per
barrel. The other product like kerosene
oil estimated to be up by US$3 to US$
15. Subsequently, refineries gross
refinery margins to show a considerable
improvement in 3Q13 as compared to
2Q13 and in 3rd quarter of current
fiscal year GRMs are likely to remain
around US$ 3.5 against margins in last
quarter. It is estimated that Attock oil
refinery (ATRL) 3Q margin would
remain around US$ 5.5 barrel which
much higher than estimate that
wasUS$3.5 per barrel in 2Q13.on the
other hand NRL’s fuel refinery margins
are likely to operate on breakeven level
which are higher than estimated US$ 1
per barrel in the preceding quarter.
However lube margins which are major
contributor to company’s earnings
continue to go to sluggish period. With
outgoing quarter 3Q13 depicting
improved GRMs we expect sector to
showcase better core-refinery earning
as against 2Q FY13. ONLINE
01
ISLAMABAD
ONLINE
DuE to poor economic conditionstransmission and distributionT&D losses in power sector,circular debt in the lastfive years increased to
Rs 711 billion rupees.According to uSAID report
for the Causes and Impacts ofPower Sector Circular Debt inPakistan in 2008 circular debtwas 161.21 billion rupees thatincreased to 235.65 billion in2009. Similarly, circular debt in2010 increased to Rs 365.66 bil-lion and in 2011 this amountswelled to Rs 537.53 billion. Dur-ing current fiscal year circular debtincreased to Rs 872.41 billion.
Report revealed that poor revenue col-lection from the distribution companies in2012 added Rs 86.90 billion into the circular debtwhile another amount of 72 billion rupees added due topoor recoveries by HESCO, PESCO, SESCO and QESCO.
uSAID report further stated that 197 billion rupees are outstandingby private consumers under electricity bills which is major reason
of current circular debt. Report said that during fiscalyear 2011-12 Peshawar electric supply company
limited (PESCO) have to receive 51 billionrupees from its consumers while Hyder-
abad electric supply company limited(HESCO) has to receive 44 billion
rupees from consumers. Similarly,Quetta electric supply companylimited (QESCO)’s liabilities are48 billion rupees, Lahore electricsupply company limited(QESCO) 23 billion rupees andGujranwala electric supply com-pany limited (GESCO) 5 billionrupees.
Faisalabad electric supplycompany (FESCO) remained
failed to collect 7 billion rupees fromits consumers and Islamabad electric
supply company limited (IESCO) haveliabilities of 2 billion with its consumers.
uSAID report informed that MEPCO consumershave not paid 14 billion in electricity bills and this
amount is major element in circular debt.
buSIneSS
BSunday, 31 March, 2013
Organisations must pay tax returns to ensure their
contribution in social sector development. — Javed Jabbar
In 2008 circular debt was Rs 161.21b which increased to Rs 235.65b in 2009.
In 2010, the circular debtincreased to Rs 365.66b andin 2011 this amount swelled
to Rs 537.53b. During the current fiscal year,
the circular debt has increased to
Rs 872.41b
LAHORE
ONLINE
Expressing concerns over slow economic growth andincreasing fiscal deficit, the Lahore Chamber of Com-merce and Industry has said that the country’s econ-omy is at a high risk and remains vulnerable tointernal and external shocks.
In a statement issued on Saturday the LCCI Pres-
ident Farooq Iftikhar said that the continuous increasein fiscal deficit will pull country’s economy towardsmajor downturn, which is already in precarious con-dition due to various core issues that need to be ad-dressed on urgent basis.He, however, said that the twomain reasons for increase in the deficit is inability tocontrol expenditures and lack of a plan to generatehigher revenue in view of severe energy crisis.
The LCCI President suggested to the government
to lower the interest rates as lowering by a single pointsaves Rs 100 billion for the government as majorchunk of the government borrowing is from domesticmeans. He further added that loss making Public Sec-tor Enterprises (PSEs) are damaging the economy byRs 500 billion per annum but government could saveRS 200 billion by applying good governance practicesin PSEs for the time being. We request the federalgovernment to take prudent decisions without wastingfurther time in the larger interest of the country.
The current account deficit could also be reduced
by at least Rs 300 billion by maintaining and regulat-ing public spending and pursuing a sound fiscal pol-icy. Farooq Iftikhar said that fiscal deficit could alsobe lowered by increasing the government revenue forwhich effective measures were needed to expand thetax base by bringing all sectors under tax net. He saidthat there is no doubt that the situation is compoundedby an uncertain global environment and a difficult do-mestic situation but it is also extremely important thatall economic policies in vogue at the moment be re-viewed afresh in totality.
Circular debt swells to Rs 711bn in last five years
MULTAN: Women
sorting cotton at a local
wool factory. INP
Pakistan, Tajikistan,
Afghanistan expected
to sign trilateral
transit pact
DUSHANBE
INP
Construction of the railway link connectingTajikistan, Afghanistan and Turkmenistan aswell as implementation of the Central AsiaSouth Asia Electricity Transmission and TradeProject (CASA 1000) were the focus of ameeting of Tajik President Emomali Rahmonwith Afghan Foreign Minister Zalmai Rasoulthat took place on Friday. According to theTajik president’s official website, the sides alsodiscussed cooperation between relevant bodiesof the two countries for implementation ofambitious regional projects. They reportedlyexpressed hope that a trilateral trade and transitpact that would be signed between Tajikistan,Afghanistan and Pakistan would pave the wayfor further expansion of trade and economiccooperation between the nations. PresidentRahmon noted that Tajikistan was ready toprovide assistance to Afghanistan with trainingof personnel for its railway and other sectors.The sides also discussed regional security anda number of other issues being of mutualinterest, the source said.
The governmenT shouLd LowerThe InTeresT raTes as LowerIngby a sIngLe poInT saves rs 100bILLIon for The governmenT asmajor Chunk of ITs borrowIngIs from domesTIC means
LCCI chief’s recipe to lower fiscal deficit
LCCI President Farooq Iftikhar
PRO 31-03-2013_Layout 1 3/31/2013 4:36 AM Page 1
buSIneSSSunday, 31 March, 2013
ACCA recognizesprofessionalsISLAMABAD: ACCA Islamabad held its New
Members Ceremony recently to celebrate the
achievement of 91 new ACCA members from the
north region, who have attained the membership
milestone during the last year. The ceremony
commenced with welcome address, delivered by
Arif Masud Mirza, head of ACCA Pakistan who
welcomed the new members to the ACCA
fraternity and motivated them to continue their
training and development through Continuous
Professional Development for successful career
progression. Later, Noor Aftab, head of ACCA
Islamabad congratulated the new members on
their remarkable success and shared with them
the benefits of professional training and
development required by these new members in
order to excel further in their career. The
ceremony was presided over by key note speakers
Saif Rastgar, Director Operations, Rastgar
Engineering, Saeeda Sabah Rashid, Senior
Financial Management Specialist (SARFM), The
World Bank and Malik Mirza, CFO, U microfinance
Bank and ACCA Pakistan Members Network Panel’s
Chairman. ACCA Islamabad also presented awards
to ACCA’s long standing workplace mentors in
Pakistan including Murtaza Ali, Director Fin
Control, Telenor Pakistan, Iftikhar Chaudhry,
Executive Director, Deloitte Pakistan and Khayyam
Mushir, Partner, Ernst & Young Ford Rhodes Sidat
Hyder. Kamran Rizvi, Director, Navitus conducted
an hour long motivational session for the young
professionals titled ‘Balancing ACT’. The ceremony
was attended by ACCA Members, employers and
learning partners. PRESS RELEASE
Unifoam defeatsAdsell Cricket Team
LAHORE: Unifoam defeated Adsell cricket team by
108 runs in the Corporate Champions League
Cricket Tournament. In 20 overs game, Unifoam
scored 231 runs for the loss of 4 wickets and sets a
high score record in the Corporate Champions
League Cricket Tournament. While chasing, Adsell
score only 123 runs for the loss of 8 wickets. Abbas
Ali of Unifoam received man of the match trophy
for his brilliant knock of 81 runs and two wickets.
Whereas, Unifoam’s Umer Tehzeeb scored 73,
Imtiaz Intezar 27 and Sajjad Ali scored 19 valuable
runs. PRESS RELEASE
CORPORATE CORNER
02
B
Fiscal deficit can be lowered by increasing the government
revenue. — LCCI President Farooq Iftikhar
KARACHI
NNI
FORMER federal information ministerJaved Jabbar has said that corporate or-ganizations have started contribution insocial development which is a good omenbut they need to do more in this regard.
This he said while addressing at the 5th in-ternational summit on CSR 2013 organized byNational Forum for Environment (NFEH) withthe support of united Nations Environment Pro-gram, Karachi Chamber of Commerce & Insti-tute of Cost and Management Accountants ofPakistan, at a local hotel.
Javed Jabbar said that corporate sector giveslot of jobs and also spending on education,health and training of people. CSR should belinked to corporate fiscal responsibility and or-ganizations should file their tax returns, he said.
FPCCI and other big organizations shouldmake a statement that how much money corpo-rate sector is contributing in social develop-ment. A low amount of money is being spent onsocial science research, which should be raised,he stressed. Jabbar said that Zulfikarabad proj-ect has been launched without conducting basicenvironment assessment. We pointed out author-ities but they did not respond positively, headded. “FBR has declared that 300 textile millsare not paying tax returns in due manner. Organ-izations must pay tax returns so as to ensuretheir contribution in social sector development,Javed Jabbar concluded.
Muhammad Haroon Agar, President KCCI,said several organizations are providing foodand other social services to people in Karachi.He said that Pakistan bureaucracy do not wantour economy to grow. He said CSR can be sim-ply defined as achieving commercial success inways that honour ethical values and respect peo-ple, communities, and the natural environment.
It is satisfying to note that over the years, inPakistan, the corporate sector has focused on re-sponsible business practices highlighting sus-tainability, social and environmental issues. Thecompanies have started believing in the welfareof not only its employees but its activities thathave been directed towards safety, environment,education and social welfare and other issues,directly or indirectly having impact on the com-munities and environment.
Ateequr Rehman, KCCI executive commit-tee member, said most of the hospitals let heartand other serious patients to die due to havingno money for costly medical tests and treatment,which is matter of great concern, therefore, cor-porate sector, including hospitals, should adoptsympathetic attitude and providefree treatment to such patientsand save their live as partof their corporate socialresponsibility (CSR).
Dr. A Bari saidthat Indus Hospi-tal is an innova-tive healthcareorganization inthe countrywhich pro-vides treat-ment to thoseserious pa-tients who donot have moneyand do not letthem to die.“Other hospitalsshould also need tofeel their social respon-sibility and save humanlives,” he said.
Dr Kaiser Waheed said that 80percent of companies have started CSR service.He said that local corporations are paying moreattention on CSR, however, there is need to raiseawareness about social responsibility.
Aman-ul-Haq, Manager CSR, Engro Corpo-ration, said that agriculture is the mainstay ofPakistan and Ghotki is one of largest economiccontributing districts. This district has also cre-ated lot of jobs. He stressed that need to supportfarming community rural areas for raising milkproduction.
He said that the farming community hasstarted producing more milk after companiesstarted purchasing milk from them at lucrativerates. This has helped them to raise their earn-ings and generate livelihood with respect. Hesaid that we have trained 20,000 women inSindh for being self-relaint in economy. He alsostressed the need to train farmers for raisingagriculture and dairy productions. There is alsoneed to conduct research on seeds for achieving
more crop production.Earlier, in his address, NFEH Chairman
Naeem Qureshi welcomed the distinguishedguests for participating in the program andurged the need to boost social responsibility inthe organizations.
He appreciated the corporate or-ganizations’ role in the social
development and hoped thatthey would do more as
part of CSR. Two panel dis-
cussions were alsoheld on CSR im-portance in whichcross questionswere raisedabout the prob-lems being facedin this regard.The experts inpenal discussions
stressed the needto raise the CSR
contribution in so-cial development.
Forty five compa-nies were awarded for
playing best role in CSR. Thenames of the companies are:
English Biscuit Manufacturers; EngroPower Gen Qadir Pur; GeII Sapphire ElectricProject; Pak Arab Refinery; Mariam Ali Mo-hammad Tabba Foundation; Change In Educa-tion; Tourism Promotion Services Pakistan;Procter & Gamble Pakistan; Rafhan MaizeProducts; Total Parco Pakistan; Adamjee Insur-ance Company; Fauji Fertilizer Bin Qasim;Fauji Fertilizer Company; Human DevelopmentFoundation; Etihad Airways; Yunus TextileMill; Karachi Electric Supply Company; PepsiCola International; Pak Datacom; Greenwichuniversity; Total Oil Pakistan; M. MuhammadShafi & Co; CRLF Crown Group; NationalBank of Pakistan; Pakistan Petroleum; EngroFoundation; Lotte Pakistan PPTA; Pakistan To-bacco Company; Fatima Fertilzer Company;EFu Life Assurance; Oil & Gas DevelopmentCompany; Sui Southern Gas Company; TameerMicrofinance Bank; Js Bank; Shan Foods; DrEssa Laboratory; Habib Bank; Pharmevo; andAbbott Laboratories Pakistan.
Experts asks organisationsto contribute to socio-economic development
The companies havestarted believing in thewelfare of not only the
employees but theiractivities that have beendirected towards safety,environment, education
and social welfare andother issues, directly or
indirectly having impacton the communities and
environment
Pakistan-Japan Business Forum hostsfarewell for vice chairman
KARACHI: “Though you spoke standing in the midst of Karachi Bloom last night, it was sad for the many
in attendance who came in touch with you to hear that you are to depart after four years of stay in
Pakistan,” this was said by Pakistan Japan Business Forum (PJBF) Secretary General Kalim Farooqui in
honour of PJBF Senior Vice Chairman Nakagwa-San. “You would be missed as your understanding and
cooperation to PJBF as it’s Senior Vice Chairman was commendable,” he added. “Bidding farewell sounds
sad and gloomy and it is for this reason PJBF mentions “PHIR MILENGAY” meaning, we will meet again,” he
said, adding that ss most of the attendees at the party have business with Japan, as you and your
Company do with Pakistan, I am sure there will be occasions where our paths will cross again.” “I am
leaving tonight for an overseas trip which will also take me to Japan where I will be calling on my friends at
Marubeni with whom my relations stretch over three decades,” he added. “As I write this message to you,
two of my staff members are in Myanmar meeting Asayama-san in Napitaw who as he mentions was
stationed with you once in Bangladesh,” he maintained. “Also, your predecessor, Yamamoto-san, also the
Senior Vice Chairman at PJBF during his tenure in Pakistan informs me that he is retiring this month as the
Managing Director of Marubeni Protechs, a subsidiary of Marubeni Corporation,” he said. PRESS RELEASE
pakistani mangoexporters urgedto explore japanmarketsTOKYO: Stressing the need for jacking up exports of fruits,Ambassador of Pakistan to Japan, Farukh Amil, said thatPakistani mangoes with their irresistible taste would certainlyattract the Japanese market. Speaking to a delegation of SindhMango Growers from Pakistan and the Japanese importershere, he hoped that Pakistani mangoes would be marketed inJapan, meeting all the Japanese standards, this year. He saidPakistan produces very high quality world-class fruits andvegetables, which are excellent in taste. He said despite a hugeagriculture market in Japan, Pakistani products are largelyabsent which calls for unhindered efforts on the part ofPakistani exporters to find ways and means to increase andsustain exports in the world markets. The Ambassadorreiterated the three Ps i.e. preservation, packaging andpresentation for marketing the products in Japan or elsewherein the world. He urged the delegation to meet the Japanesestandards of packaging. He assured the Pakistani businessmenand Japanese importers of the Embassy’s full assistance inmarketing the mangoes and other fruits and vegetables toJapan. Earlier, Mahmood Nawaz Shah on behalf of the visitingdelegation gave a briefing about the quality and exportpotential of Pakistani mangoes to the world market in generaland Japan in particular. He informed that Pakistani mangoeswere being successfully exported to the Middle East andEurope. He hoped that the Pakistani mangoes would find agood market in Japan. Earlier the delegation, guided by DrTalat Imtiaz, held meetings at the Ministry of Agriculture,Forestry and Fishery and Narita Airport Quarantine Authorities.The delegation also visited fresh fruit vegetables farms and thefamous Tokyo Metropolitan Ohta Fresh Market. The delegationis scheduled to visit a host of other agricultural farms andorchards in different parts of Kansai region. INP
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